Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2015 | Aug. 05, 2015 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PINNACLE FINANCIAL PARTNERS INC | |
Entity Central Index Key | 1,115,055 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 39,351,636 | |
Document Fiscal Year Focus | 2,015 | |
Document Fiscal Period Focus | Q2 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2015 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Cash and noninterest-bearing due from banks | $ 66,487,191 | $ 48,741,692 |
Interest-bearing due from banks | 201,761,829 | 134,176,054 |
Federal funds sold and other | 4,698,433 | 4,989,764 |
Cash and cash equivalents | 272,947,453 | 187,907,510 |
Securities available-for-sale, at fair value | 806,221,152 | 732,054,785 |
Securities held-to-maturity (fair value of $33,830,072 and $38,788,870 at June 30, 2015 and December 31, 2014, respectively) | 33,914,863 | 38,675,527 |
Mortgage loans held-for-sale | 31,542,696 | 14,038,914 |
Loans | 4,830,353,621 | 4,590,026,505 |
Less allowance for loan losses | (65,572,050) | (67,358,639) |
Loans, net | 4,764,781,571 | 4,522,667,866 |
Premises and equipment, net | 73,633,237 | 71,576,016 |
Equity method investment | 82,892,986 | 0 |
Accrued interest receivable | 17,125,955 | 16,988,407 |
Goodwill | 243,290,816 | 243,529,010 |
Core deposits and other intangible assets | 2,438,245 | 2,893,072 |
Other real estate owned | 6,792,503 | 11,186,414 |
Other assets | 180,962,299 | 176,730,276 |
Total assets | 6,516,543,776 | 6,018,247,797 |
Deposits: | ||
Noninterest-bearing | 1,473,086,196 | 1,321,053,083 |
Interest-bearing | 1,071,433,689 | 1,005,450,690 |
Savings and money market accounts | 2,031,801,876 | 2,024,957,383 |
Time | 417,289,165 | 431,143,756 |
Total deposits | 4,993,610,926 | 4,782,604,912 |
Securities sold under agreements to repurchase | 61,548,547 | 93,994,730 |
Federal Home Loan Bank advances | 445,345,050 | 195,476,384 |
Subordinated debt and other borrowings | 133,908,292 | 96,158,292 |
Accrued interest payable | 637,036 | 631,682 |
Other liabilities | 40,103,864 | 46,688,416 |
Total liabilities | 5,675,153,715 | 5,215,554,416 |
Stockholders' equity: | ||
Preferred stock, no par value, 10,000,000 shares authorized; no shares issued and outstanding | 0 | 0 |
Common stock, par value $1.00; 90,000,000 shares authorized; 35,977,987 and 35,732,483 issued and outstanding at June 30, 2015 and December 31, 2014, respectively | 35,977,987 | 35,732,483 |
Additional paid-in capital | 567,945,383 | 561,431,449 |
Retained earnings | 237,243,866 | 201,371,081 |
Accumulated other comprehensive income, net of taxes | 222,825 | 4,158,368 |
Total stockholders' equity | 841,390,061 | 802,693,381 |
Total liabilities and stockholders' equity | $ 6,516,543,776 | $ 6,018,247,797 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 |
ASSETS | ||
Securities held-to-maturity, fair value | $ 33,830,072 | $ 38,788,870 |
Stockholders' equity: | ||
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 10,000,000 | 10,000,000 |
Preferred stock, shares issued (in shares) | 0 | 0 |
Preferred stock, shares outstanding (in shares) | 0 | 0 |
Common stock, par value (in dollars per share) | $ 1 | $ 1 |
Common stock, shares authorized (in shares) | 90,000,000 | 90,000,000 |
Common stock, shares issued (in shares) | 35,977,987 | 35,732,483 |
Common stock, shares outstanding (in shares) | 35,977,987 | 35,732,483 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
Interest income: | ||||
Loans, including fees | $ 50,325,643 | $ 45,089,706 | $ 99,792,349 | $ 88,785,364 |
Securities: | ||||
Taxable | 3,460,243 | 3,628,264 | 6,904,842 | 7,348,543 |
Tax-exempt | 1,400,479 | 1,563,612 | 2,883,786 | 3,161,409 |
Federal funds sold and other | 316,286 | 282,822 | 600,264 | 559,880 |
Total interest income | 55,502,651 | 50,564,404 | 110,181,241 | 99,855,196 |
Interest expense: | ||||
Deposits | 2,592,476 | 2,481,762 | 5,023,218 | 5,077,002 |
Securities sold under agreements to repurchase | 29,371 | 31,329 | 60,288 | 61,844 |
Federal Home Loan Bank advances and other borrowings | 1,050,119 | 824,912 | 1,998,671 | 1,582,134 |
Total interest expense | 3,671,966 | 3,338,003 | 7,082,177 | 6,720,980 |
Net interest income | 51,830,685 | 47,226,401 | 103,099,064 | 93,134,216 |
Provision for loan losses | 1,186,116 | 254,348 | 1,501,207 | 741,986 |
Net interest income after provision for loan losses | 50,644,569 | 46,972,053 | 101,597,857 | 92,392,230 |
Noninterest income: | ||||
Service charges on deposit accounts | 3,075,655 | 2,965,644 | 5,988,204 | 5,756,612 |
Investment services | 2,399,054 | 2,164,410 | 4,658,494 | 4,292,244 |
Insurance sales commissions | 1,105,783 | 1,144,871 | 2,618,401 | 2,529,792 |
Gain on mortgage loans sold, net | 1,652,111 | 1,668,604 | 3,593,365 | 2,903,475 |
Investment gains on sales, net | 556,014 | 0 | 562,017 | 0 |
Trust fees | 1,230,415 | 1,071,848 | 2,542,400 | 2,217,599 |
Income from equity method investment | 4,266,154 | 0 | 7,467,456 | 0 |
Other noninterest income | 5,733,592 | 3,582,067 | 11,081,743 | 7,630,084 |
Total noninterest income | 20,018,778 | 12,597,444 | 38,512,080 | 25,329,806 |
Noninterest expense: | ||||
Salaries and employee benefits | 23,774,558 | 21,772,469 | 47,305,418 | 43,522,429 |
Equipment and occupancy | 5,877,971 | 5,822,662 | 11,924,194 | 11,531,692 |
Other real estate (benefit) expense, net | (114,567) | 226,006 | 280,721 | 877,158 |
Marketing and other business development | 1,186,165 | 1,064,990 | 2,145,915 | 1,973,891 |
Postage and supplies | 731,219 | 544,194 | 1,380,470 | 1,104,808 |
Amortization of intangibles | 227,413 | 237,676 | 454,827 | 475,351 |
Merger related expenses | 59,053 | 0 | 59,053 | 0 |
Other noninterest expense | 5,005,513 | 4,233,931 | 10,027,749 | 8,062,459 |
Total noninterest expense | 36,747,325 | 33,901,928 | 73,578,347 | 67,547,788 |
Income before income taxes | 33,916,022 | 25,667,569 | 66,531,590 | 50,174,248 |
Income tax expense | 11,252,191 | 8,497,589 | 22,025,048 | 16,637,146 |
Net income | $ 22,663,831 | $ 17,169,980 | $ 44,506,542 | $ 33,537,102 |
Per share information: | ||||
Basic net income per common share (in dollars per share) | $ 0.65 | $ 0.49 | $ 1.27 | $ 0.97 |
Diluted net income per common share (in dollars per share) | $ 0.64 | $ 0.49 | $ 1.25 | $ 0.96 |
Weighted average shares outstanding: | ||||
Basic (in shares) | 35,128,856 | 34,697,888 | 35,085,271 | 34,650,377 |
Diluted (in shares) | 35,554,683 | 35,081,702 | 35,477,098 | 35,024,859 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||||
Net income | $ 22,663,831 | $ 17,169,980 | $ 44,506,542 | $ 33,537,102 |
Other comprehensive income (loss), net of tax: | ||||
Changes in fair value on available-for-sale securities, net of tax | (4,952,934) | 5,104,719 | (3,009,581) | 10,050,631 |
Change in fair value of cash flow hedges, net of tax | (31,598) | (1,535,212) | (584,425) | (2,829,518) |
Net gain on sale of investment securities reclassified out of comprehensive income into net income, net of tax | (337,890) | 0 | (341,537) | 0 |
Total Other Comprehensive Income (Loss), Net of Tax, Portion Attributable to Parent | (5,322,422) | 3,569,507 | (3,935,543) | 7,221,113 |
Total comprehensive income | $ 17,341,409 | $ 20,739,487 | $ 40,570,999 | $ 40,758,215 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Additional Paid-in Capital [Member] | Retained Earnings [Member] | Accumulated Other Comp. Income (Loss), Net [Member] | Total |
Balances at Dec. 31, 2013 | $ 35,221,941 | $ 550,212,135 | $ 142,298,199 | $ (4,024,614) | $ 723,707,661 |
Balances (in shares) at Dec. 31, 2013 | 35,221,941 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of employee common stock options and related tax benefits | $ 175,442 | 3,851,187 | 0 | 0 | 4,026,629 |
Exercise of employee common stock options and related tax benefits (in shares) | 175,442 | ||||
Common dividends paid | $ 0 | 0 | (5,679,659) | 0 | (5,679,659) |
Issuance of restricted common shares, net of forfeitures | $ 259,197 | (259,197) | 0 | 0 | 0 |
Issuance of restricted common shares, net of forfeitures (in shares) | 259,197 | ||||
Restricted shares withheld for taxes and related tax benefit | $ (55,085) | (957,259) | 0 | 0 | (1,012,344) |
Restricted shares withheld for taxes and related tax benefit (in shares) | (55,085) | ||||
Compensation expense for restricted shares | $ 0 | 2,581,483 | 0 | 0 | 2,581,483 |
Net income | 0 | 0 | 33,537,102 | 0 | 33,537,102 |
Other comprehensive income (loss) | 0 | 0 | 0 | 7,221,113 | 7,221,113 |
Ending Balances at Jun. 30, 2014 | $ 35,601,495 | 555,428,349 | 170,155,642 | 3,196,499 | 764,381,985 |
Balances (in shares) at Jun. 30, 2014 | 35,601,495 | ||||
Balances at Dec. 31, 2014 | $ 35,732,483 | 561,431,449 | 201,371,081 | 4,158,368 | 802,693,381 |
Balances (in shares) at Dec. 31, 2014 | 35,732,483 | ||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||
Exercise of employee common stock options and related tax benefits | $ 152,544 | 4,144,437 | 0 | 0 | 4,296,981 |
Exercise of employee common stock options and related tax benefits (in shares) | 152,544 | ||||
Common dividends paid | $ 0 | 0 | (8,633,757) | 0 | (8,633,757) |
Issuance of restricted common shares, net of forfeitures | $ 150,259 | (150,259) | 0 | 0 | 0 |
Issuance of restricted common shares, net of forfeitures (in shares) | 150,259 | ||||
Restricted shares withheld for taxes and related tax benefit | $ (57,299) | (841,791) | 0 | 0 | (899,090) |
Restricted shares withheld for taxes and related tax benefit (in shares) | (57,299) | ||||
Compensation expense for restricted shares | $ 0 | 3,361,547 | 0 | 0 | 3,361,547 |
Net income | 0 | 0 | 44,506,542 | 0 | 44,506,542 |
Other comprehensive income (loss) | 0 | 0 | 0 | (3,935,543) | (3,935,543) |
Ending Balances at Jun. 30, 2015 | $ 35,977,987 | $ 567,945,383 | $ 237,243,866 | $ 222,825 | $ 841,390,061 |
Balances (in shares) at Jun. 30, 2015 | 35,977,987 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Jun. 30, 2014 | |
Operating activities: | ||
Net income | $ 44,506,542 | $ 33,537,102 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization/accretion of premium/discount on securities | 2,436,636 | 2,154,065 |
Depreciation and amortization | 4,318,556 | 4,598,989 |
Provision for loan losses | 1,501,207 | 741,986 |
Gain on mortgage loans sold, net | (3,593,365) | (2,903,475) |
Investment gains on sales, net | (562,017) | 0 |
Stock-based compensation expense | 3,361,547 | 2,581,483 |
Deferred tax (expense) benefit | 613,022 | (136,855) |
(Gains) losses on dispositions of other real estate and other investments | 241,254 | 141,913 |
Gains (losses) from equity method investment | (7,467,456) | 0 |
Excess tax benefit from stock compensation | (1,398,876) | (1,166,463) |
Mortgage loans held for sale: | ||
Loans originated | (222,301,417) | (153,548,739) |
Loans sold | 208,391,000 | 144,711,000 |
Increase (decrease) in other assets | 5,668,214 | (1,504,523) |
Decrease in other liabilities | (6,601,764) | (4,207,922) |
Net cash provided by operating activities | 29,113,083 | 24,998,561 |
Activities in securities available-for-sale: | ||
Purchases | (180,352,200) | (96,556,556) |
Sales | 33,290,733 | 1,273,528 |
Maturities, prepayments and calls | 65,886,600 | 59,975,601 |
Activities in securities held-to-maturity: | ||
Purchases | (1,550,995) | 0 |
Maturities, prepayments and calls | 5,935,000 | 864,028 |
Increase in loans, net | (247,698,663) | (171,994,156) |
Purchases of software, premises and equipment | (6,455,257) | (3,265,513) |
Proceeds from sales of software, premises and equipment | 654,069 | 0 |
Purchase of equity method investment | (75,425,530) | 0 |
Increase in other investments | (720,972) | (178,118) |
Net cash used in investing activities | (406,437,215) | (209,881,186) |
Financing activities: | ||
Net increase in deposits | 211,006,014 | 118,040,619 |
Net decrease in securities sold under agreements to repurchase | (32,446,182) | (8,192,656) |
Advances from Federal Home Loan Bank: | ||
Issuances | 1,740,000,000 | 410,000,000 |
Payments and maturities | (1,490,108,767) | (330,047,151) |
Increase (decrease) in other borrowings | 37,750,000 | (1,250,000) |
Exercise of common stock options and stock appreciation rights, net of repurchase of restricted shares | 3,397,891 | 3,014,285 |
Excess tax benefit from stock compensation | 1,398,876 | 1,166,463 |
Common stock dividends paid | (8,633,757) | (5,679,659) |
Net cash provided by financing activities | 462,364,075 | 187,051,901 |
Net increase in cash and cash equivalents | 85,039,943 | 2,169,276 |
Cash and cash equivalents, beginning of period | 187,907,510 | 208,938,737 |
Cash and cash equivalents, end of period | $ 272,947,453 | $ 211,108,013 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business Basis of Presentation These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III and PNFP Statutory Trust IV are affiliates of Pinnacle Financial and are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. Use of Estimates Cash Flow Information 2015 2014 For the six months ended June 30, 2015 2014 Cash Transactions: Interest paid $ 7,099,390 $ 6,886,261 Income taxes paid, net 17,847,500 14,100,000 Noncash Transactions: Loans charged-off to the allowance for loan losses 6,098,606 3,268,626 Loans foreclosed upon and transferred to other real estate owned 252,896 1,672,459 Loans foreclosed upon and transferred to other repossessed assets 3,478,159 347,800 Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three and six months ended June 30, Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Basic net income per share calculation: Numerator $ 22,663,831 $ 17,169,980 $ 44,506,542 $ 33,537,102 Denominator 35,128,856 34,697,888 35,085,271 34,650,377 Basic net income per share $ 0.65 $ 0.49 $ 1.27 $ 0.97 Diluted net income per share calculation: Numerator $ 22,663,831 $ 17,169,980 $ 44,506,542 $ 33,537,102 Denominator 35,128,856 34,697,888 35,085,271 34,650,377 Dilutive shares contingently issuable 425,827 383,814 391,827 374,482 Average diluted common shares outstanding 35,554,683 35,081,702 35,477,098 35,024,859 Diluted net income per share $ 0.64 $ 0.49 $ 1.25 $ 0.96 Subsequent Events — ASC 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. Pinnacle Financial evaluated all events or transactions that occurred after June 30, 2015 through the date of the issued financial statements. Subordinated Debt Issuance On July 30, 2015, Pinnacle Bank issued $60.0 million in aggregate principal amount of Fixed–to-Floating Rate Subordinated Notes due 2025 (the "Notes") in a private placement transaction to accredited institutional investors. The maturity date of the notes is July 30, 2025, although Pinnacle Bank may redeem some or all of the Notes beginning on the interest payment date of July 30, 2020 and on any interest payment date thereafter at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date of redemption, subject to the prior approval of the Federal Deposit Insurance Corporation (the "FDIC"). From the date of the issuance through July 29, 2020, the Notes will bear interest at the rate of 4.875% per year and will be payable semi-annually in arrears on January 30 and July 30 of each year, beginning on January 30, 2016. From July 30, 2020, the Notes will bear interest at a rate per annum equal to the three-month LIBOR rate plus 3.128%, payable quarterly in arrears on each January 30, April 30, July 30, and October 30, beginning on July 30, 2020, through the maturity date or the early redemption date of the Notes. The sale of the Notes yielded net proceeds of approximately $59.1 million after deducting the placement agents' fees and estimated expenses payable by Pinnacle Bank. Pinnacle Bank used the net proceeds from the offering, together with available cash, to pay the cash portion of the merger consideration payable to the shareholders of CapitalMark and intends to use the remaining net proceeds, together with available cash, to pay the cash portion of the merger consideration payable to Magna shareholders in connection with the mergers, to pay the amounts necessary to redeem the preferred shares that each of CapitalMark and Magna have issued to the United States Department of the Treasury in connection with their participation in the Treasury's Small Business Lending Fund and for general corporate purposes. CapitalMark Bank & Trust On April 7, 2015, Pinnacle Financial and Pinnacle Bank entered into a definitive agreement with CapitalMark to acquire CapitalMark via merger. On July 31, 2015, CapitalMark merged with Pinnacle Bank. Under the terms of the merger agreement, CapitalMark shareholders could either convert each of their outstanding shares of common stock into 0.50 shares of Pinnacle Financial's common stock plus cash in lieu of any fractional shares, or into a cash payment equal to the product of 0.50 multiplied by the average trading price for Pinnacle Financial's common stock on the Nasdaq Global Select Market for a 10-day period prior to the closing of the transaction or into a mix of Pinnacle Financial common stock and cash. Pursuant to the merger agreement, notwithstanding the elections, 90% of the outstanding shares of CapitalMark common stock were required to be converted into Pinnacle Financial common stock and 10% of those shares were required to be converted into cash. Additionally, CapitalMark's outstanding stock options converted into approximately 858,000 Pinnacle options and were fully vested upon consummation of the merger pursuant to CapitalMark's stock option plan. As of July 31, 2015, the transaction was valued at $195.2 million and was comprised of stock consideration of approximately 3.3 million shares of Pinnacle Financial's common stock and $19.7 million in cash. Additionally, Pinnacle Bank redeemed the $18.2 million in preferred stock issued by CapitalMark in connection with its participation in the U.S. Treasury's Small Business Lending Fund program on July 31, 2015. CapitalMark shareholders own approximately 9.7% of Pinnacle Financial's outstanding shares of common stock on a diluted basis. Magna Bank On April 29, 2015, Pinnacle Financial and Pinnacle Bank entered into a definitive agreement with Magna to acquire Magna via merger. The proposed merger of Magna with and into Pinnacle Bank has been approved by Magna's shareholders and is expected to close during the third quarter of 2015. Under the terms of the merger agreement, Magna shareholders will have the right to elect to convert their outstanding shares of common stock into 0.3369 shares of Pinnacle's common stock plus cash in lieu of any fractional shares, or into a cash payment equal to $14.32 per Magna share, or into a combination of 0.3369 shares of Pinnacle's common stock and $14.32 in cash at a ratio of 75% stock and 25% cash. Because the maximum amount of stock and cash that Pinnacle will pay in the merger is capped at 75% and 25%, respectively, of Magna's outstanding shares, those Magna shareholders that elect either all stock or all cash may automatically have their elections adjusted so that, in the aggregate, 75% of all Magna shares outstanding will be converted into shares of Pinnacle's common stock and 25% will be converted into cash. Magna's 328,350 stock options will be fully vested upon consummation of the merger pursuant to Magna's stock option plan. At closing, Magna's outstanding unexercised stock options will be settled in cash for the difference between the option's exercise price and $14.32. At closing, Magna shareholders will own approximately 3.3% of Pinnacle Financial's outstanding common stock, assuming all of Magna's options are cashed out. The transaction is currently valued at $83.4 million based on Pinnacle's closing price on April 28, 2015, related to the issuance of approximately 1.325 million shares of Pinnacle Financial's common stock and $20.7 million in cash, in each case assuming none of the options are exercised prior to closing. Additionally, Pinnacle Bank plans to redeem at closing the $18.35 million in Series C preferred stock issued by Magna in connection with its participation in the U.S. Treasury's Small Business Lending Fund program. |
Equity Method Investment
Equity Method Investment | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | Note. 2 Equity method investment On February 1, 2015, Pinnacle Bank acquired a 30% interest in Bankers Healthcare Group, LLC (BHG) for $75 million. Pinnacle Bank accounts for this investment pursuant to the equity method for unconsolidated subsidiaries and recognizes its interest in BHG's profits and losses in noninterest income with corresponding adjustments to the BHG investment account. Currently, the equity method of accounting requires that this investment is reported as a net investment on the financial statements, but that embedded goodwill and intangibles should be identified, tested for impairment and amortized over their useful life within the equity method investment line of the balance sheet. Amortization expense associated with BHG's customer list and data processing capabilities is recorded in income from equity method investments. Pinnacle has not yet completed the purchase accounting for this equity method investment, on the acquisition date, Pinnacle Bank estimated its investment included embedded goodwill of $40.8 million and $14.4 million of technology, trade name and customer relationship intangibles. However, the FASB has issued an exposure draft, "Proposed Accounting Standards Update 2015-280 - Investments - Equity Method and Joint Ventures (Topic 323)", that may result in equity method investments moving from the currently prescribed method of accounting to an impairment based model. Pinnacle Bank recorded earnings of $7.7 million, net of approximately $1.0 million in intangible amortization expense for the first six months of 2015. Earnings from BHG are included in Pinnacle Bank and Pinnacle Financial's consolidated tax return. A summary of BHG's financial position and results of operations as of and for the six months ended June 30, 2015 were as follows (in thousands): June 30, 2015 Assets $ 206,006 Liabilities 140,123 Member's equity 84,802 Total liabilities and equity $ 65,883 For the six months ended June 30, 2015 Revenues $ 61,480 Net income, pre-tax $ 36,762 In connection with the BHG acquisition, Pinnacle Bank borrowed $40 million pursuant to a loan agreement which requires Pinnacle Financial and Pinnacle Bank to maintain certain financial covenants including minimum capital ratios, liquidity requirements and other non-financial covenants. The loan has a 5-year maturity and bears interest at approximately 2.95% per annum currently. The balance of the loans was $39.0 million at June 30, 2015. While Pinnacle Bank's investment in BHG is expected to have a modest impact on Pinnacle Financial's balance sheet volumes throughout the remainder of 2015, this investment primarily serves to increase and diversify Pinnacle Financial's fee income. Additionally, Pinnacle Financial intends to seek to leverage BHG's marketing platform to distribute it's financial services through BHG's national distribution channel. |
Securities
Securities | 6 Months Ended |
Jun. 30, 2015 | |
Securities [Abstract] | |
Securities | Note 3. Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2015 and December 31, 2014 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015: Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 125,010 17 3,753 121,274 Mortgage-backed agency securities 462,472 8,463 3,503 467,432 State and municipal securities 125,112 6,535 320 131,327 Asset-backed securities 75,333 81 152 75,262 Corporate notes and other 10,035 892 1 10,926 $ 797,962 $ 15,988 $ 7,729 $ 806,221 Securities held-to-maturity: State and municipal securities $ 33,915 $ 139 $ 224 $ 33,830 $ 33,915 $ 139 $ 224 $ 33,830 December 31, 2014: Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 117,098 12 3,654 113,456 Mortgage-backed agency securities 447,757 10,322 2,240 455,839 State and municipal securities 130,545 8,213 180 138,578 Asset-backed securities 13,089 14 85 13,018 Corporate notes and other 10,196 969 2 11,163 $ 718,685 $ 19,530 6,161 $ 732,054 Securities held-to-maturity: State and municipal securities $ 38,676 $ 205 $ 92 $ 38,789 $ 38,676 $ 205 $ 92 $ 38,789 At June 30, 2015, approximately $669.7 million of securities within Pinnacle Financial's investment portfolio were either pledged to secure public funds and other deposits or securities sold under agreements to repurchase. The amortized cost and fair value of debt securities as of June 30, 2015 by contractual maturity are shown below. Actual maturities may differ from contractual maturities in the case of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands): Available-for-sale Held-to-maturity June 30, 2015: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,697 $ 9,734 $ 1,710 $ 1,712 Due in one year to five years 34,300 35,689 10,374 10,408 Due in five years to ten years 149,167 151,803 12,514 12,469 Due after ten years 66,993 66,301 9,317 9,241 Mortgage-backed securities 462,472 467,432 - - Asset-backed securities 75,333 75,262 - - $ 797,962 $ 806,221 $ 33,915 $ 33,830 Investments with an Unrealized Loss of less than 12 months Investments with an Unrealized Loss of 12 months or longer Total Investments with an Unrealized Loss Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses At June 30, 2015: U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 47,012 1,227 65,369 2,526 112,381 3,753 Mortgage-backed securities 143,785 1,114 104,901 2,389 248,506 3,503 State and municipal securities 22,639 263 5,076 281 27,715 544 Asset-backed securities 35,271 141 8,361 11 43,632 152 Corporate notes 250 1 151 - 401 1 Total temporarily-impaired securities $ 248,957 $ 2,746 $ 183,858 $ 5,207 $ 432,635 $ 7,953 At December 31, 2014: U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 3,593 10 103,658 3,644 107,251 3,654 Mortgage-backed securities 91,410 405 102,892 1,835 194,302 2,240 State and municipal securities 3,561 15 16,502 257 20,063 272 Asset-backed securities - - 9,289 85 9,289 85 Corporate notes 950 1 154 1 1,104 2 Total temporarily-impaired securities $ 99,514 $ 431 $ 232,495 $ 5,822 $ 332,009 $ 6,253 The applicable dates for determining when securities are in an unrealized loss position are June 30, 2015 and December 31, 2014. As such, it is possible that a security had a market value that exceeded its amortized cost on other days during the past twelve-month periods ended June 30, 2015 and December 31, 2014, but is in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the tables on the previous page, at June 30, 2015, Pinnacle Financial had approximately $8.0 million in unrealized losses on $432.8 million of securities. The unrealized losses associated with these investment securities are driven by changes in interest rates, and the unrealized loss is recorded as a component of equity. These securities will continue to be monitored as a part of our ongoing impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond issuers. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments. If a shortfall in future cash flows is identified, a credit loss will be deemed to have occurred and will be recognized as a charge to earnings and a new cost basis for the security will be established. Because Pinnacle Financial currently does not intend to sell those securities that have an unrealized loss at June 30, 2015, and it is not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial does not consider these securities to be other-than-temporarily impaired at June 30, Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade or tax-exempt status, the underlying credit support is terminated or collection otherwise becomes uncertain based on factors known to management, Pinnacle Financial will consider selling the security, but will review each security on a case-by-case basis as these factors become known. Consistent with investment policy, available-for-sale securities of $33.3 million were sold and a gain of $562,000 realized during the six months ended June 30, 2015. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Additionally, there is a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and/or recovery changes. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 4. Loans and Allowance for Loan Losses For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses five loan categories: commercial real estate mortgage, consumer real estate mortgage, construction and land development, commercial and industrial, consumer and other. · Commercial real-estate mortgage loans · Consumer real-estate mortgage loans · Construction and land development loans · Commercial and industrial loans · Consumer and other loans Commercial loans receive risk ratings assigned by a financial advisor and approved by a senior credit officer subject to validation by Pinnacle Financial's independent loan review department. Risk ratings are categorized as pass, special mention, substandard, substandard-nonaccrual or doubtful-nonaccrual. Pinnacle Financial believes that its categories follow those used by Pinnacle Bank's primary regulators. At June 30, 2015, approximately 74% of our loan portfolio was analyzed as a commercial loan type with a specifically assigned risk rating in the allowance for loan loss assessment. Consumer loans and small business loans are generally not assigned an individual risk rating but are evaluated as either accrual or nonaccrual based on the performance of the individual loans. However, certain consumer real-estate mortgage loans and certain consumer and other loans receive a specific risk rating due to the loan proceeds being used for commercial purposes even though the collateral may be of a consumer loan nature. Risk ratings are subject to continual review by a financial advisor and a senior credit officer. At least annually, our credit procedures require that every risk rated loan of $500,000 or more be subject to a formal credit risk review process by the assigned financial advisor. Each loan's risk rating is also subject to review by our independent loan review department, which reviews a substantial portion of our risk rated portfolio annually. Loans subjected to our independent loan review department's annual review includes loans in targeted higher-risk portfolio segments such as certain commercial and industrial loans, land loans and/or loan types in certain geographies. The following table presents our loan balances by primary loan classification and the amount within each risk rating category. Pass rated loans include all credits other than those included in special mention, substandard, substandard-nonaccrual and doubtful-nonaccrual which are defined as follows:  Special mention loans have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in Pinnacle Financial's credit position at some future date.  Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize collection of the debt. Substandard loans are characterized by the distinct possibility that Pinnacle Financial will sustain some loss if the deficiencies are not corrected.  Substandard-nonaccrual loans are substandard loans that have been placed on nonaccrual status.  Doubtful-nonaccrual loans have all the characteristics of substandard-nonaccrual loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. The following table outlines the amount of each loan classification categorized into each risk rating category as of June 30, 2015 and December 31, 2014 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total June 30, 2015 Accruing loans Pass $ 1,627,250 $ 720,144 $ 362,804 $ 1,717,492 $ 223,178 $ 4,650,868 Special Mention 16,027 2,209 2,086 42,976 - 63,298 Substandard (1) 22,906 9,923 3,232 53,875 - 89,936 1,666,183 732,276 368,122 1,814,343 223,178 4,804,102 Impaired loans Nonaccrual loans Substandard-nonaccrual 5,546 4,513 3,454 1,064 2,973 17,550 Doubtful-nonaccrual - - - - - - Total nonaccrual loans 5,546 4,513 3,454 1,064 2,973 17,550 Troubled debt restructurings (2) Pass - 415 428 587 229 1,659 Special Mention - 442 - - - 442 Substandard - 2,995 - 3,606 - 6,601 Total troubled debt restructurings - 3,852 428 4,193 229 8,702 Total impaired loans 5,546 8,365 3,882 5,257 3,202 26,252 Total loans $ 1,671,729 $ 740,641 $ 372,004 $ 1,819,600 $ 226,380 $ 4,830,354 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total December 31, 2014 Accruing loans Pass $ 1,510,718 $ 697,607 $ 295,645 $ 1,704,910 $ 216,155 $ 4,425,035 Special Mention 7,353 2,536 15,215 31,733 - 56,837 Substandard (1) 21,707 12,631 5,997 42,704 - 83,039 Total 1,539,778 712,774 316,857 1,779,347 216,155 4,564,911 Impaired loans Nonaccrual loans Substandard-nonaccrual 4,313 4,458 5,173 1,609 1,152 16,705 Doubtful-nonaccrual - - - - - - Total nonaccrual loans 4,313 4,458 5,173 1,609 1,152 16,705 Troubled debt restructurings (2) Pass - 62 436 575 75 1,148 Special Mention - 811 - - 201 1,012 Substandard - 3,053 - 3,198 - 6,251 Total troubled debt restructurings - 3,926 436 3,773 276 8,411 Total impaired loans 4,313 8,384 5,609 5,382 1,428 25,116 Total loans $ 1,544,091 $ 721,158 $ 322,466 $ 1,784,729 $ 217,583 $ 4,590,027 (1) Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $89.9 million at June 30, 2015, compared to $83.0 million at December 31, 2014. (2) Troubled debt restructurings are presented as impaired loans; however, they continue to accrue interest at contractual rates. At June 30, 2015 and December 31, 2014, all loans classified as nonaccrual were deemed to be impaired. The principal balances of these nonaccrual loans amounted to $17.6 million and $16.7 million at June 30, 2015 and December 31, 2014, respectively, and are included in the tables above. For the six months ended June 30, 2015, the average balance of nonaccrual loans was $17.3 million compared to $17.5 million for the year ended December 31, 2014. At the date such loans were placed on nonaccrual status, Pinnacle Financial reversed all previously accrued interest income against current year earnings. Pinnacle Financial's policy is that once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. Pinnacle Financial recognized approximately $183,000 in interest income from cash payments received on nonaccrual loans during the six months ended June 30, 2015 and $256,000 interest income from cash payments received on nonaccrual loans during the year ended December 31, 2014. Had these remaining nonaccrual loans been on accruing status, interest income would have been higher by $398,000 for the six months ended June 30, 2015 and by $416,000 for the six months ended June 30, 2014. A nonaccrual loan may be returned to accruing status once the loan has been brought current as to the principal and interest and collection is reasonably assured or the loan has been "well secured" through other techniques. The following table details the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at June 30, 2015 and December 31, 2014 by loan classification and the amount of interest income recognized on a cash basis throughout the fiscal year-to-date period then ended, respectively, on these loans that remain on the balance sheets (in thousands): At June 30, 2015 For the six months ended June 30, 2015 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 3,753 $ 3,807 $ - $ 3,148 $ 53 Consumer real estate – mortgage 606 671 - 617 - Construction and land development 3,160 3,160 - 3,277 130 Commercial and industrial 909 1,176 - 932 - Consumer and other - - - - - Total $ 8,428 $ 8,814 $ - $ 7,974 $ 183 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,793 $ 2,047 $ 70 $ 1,824 $ - Consumer real estate – mortgage 3,907 4,223 545 4,037 - Construction and land development 294 390 46 299 - Commercial and industrial 155 168 24 204 - Consumer and other 2,973 3,092 462 3,003 - Total $ 9,122 $ 9,920 $ 1,147 $ 9,367 $ - Total nonaccrual loans $ 17,550 $ 18,734 $ 1,147 $ 17,341 $ 183 At December 31, 2014 For the year ended December 31, 2014 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,422 $ 2,641 $ - $ 2,624 $ - Consumer real estate – mortgage 1,472 1,901 - 1,552 - Construction and land development 4,810 4,810 - 5,016 256 Commercial and industrial 1,325 1,804 - 1,561 - Consumer and other - - - - - Total $ 10,029 $ 11,156 $ - $ 10,753 $ 256 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,891 $ 2,107 $ 108 $ 1,958 $ - Consumer real estate – mortgage 2,986 3,205 654 3,080 - Construction and land development 363 406 79 384 - Commercial and industrial 284 294 62 316 - Consumer and other 1,152 1,184 252 972 - Total $ 6,676 $ 7,196 $ 1,155 $ 6,710 $ - Total nonaccrual loans $ 16,705 $ 18,352 $ 1,155 $ 17,463 $ 256 (1) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. Impaired loans also include loans that Pinnacle Bank has elected to formally restructure due to the weakening credit status of a borrower. The restructuring may facilitate a repayment plan that seeks to minimize the potential losses that Pinnacle Bank may otherwise incur. If on nonaccrual status as of the date of restructuring, the loans are included in nonaccrual loans. Loans that have been restructured that were performing as of the restructure date and continue to perform in accordance with the restructured terms are reported separately as troubled debt restructurings. At June 30, 2015 and December 31, 2014, there were $8.7 million and $8.4 million, respectively, of troubled debt restructurings that were performing as of their restructure date and which were accruing interest. These troubled debt restructurings are considered impaired loans pursuant to U.S. GAAP. Troubled commercial loans are restructured by specialists within our Special Assets Group, and all restructurings are approved by committees and credit officers separate and apart from the normal loan approval process. These specialists are charged with reducing Pinnacle Financial's overall risk and exposure to loss in the event of a restructuring by obtaining some or all of the following: improved documentation, additional guaranties, increase in curtailments, reduction in collateral release terms, additional collateral or other similar strategies. The Three months ended June 30, Six months ended June 30, 2015 Number of contracts Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Number of contracts Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Commercial real estate – mortgage - $ - $ - - $ - $ - Consumer real estate – mortgage - - - - - - Construction and land development - - - - - - Commercial and industrial - - - 1 434 337 Consumer and other - - - - - - - $ - $ - 1 $ 434 $ 337 2014 Commercial real estate – mortgage - $ - $ - - $ - $ - Consumer real estate – mortgage - - - - - - Construction and land development - - - - - - Commercial and industrial 1 75 59 7 2,955 2,009 Consumer and other - - - - - - 1 $ 75 $ 59 7 $ 2,955 $ 2,009 During the three and six months ended June 30, 2015 and 2014, Pinnacle Financial did not have any troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. The table below presents past due balances at June 30, 2015 and December 31, 2014, by loan classification and segment allocated between accruing and nonaccrual status (in thousands): June 30, 2015 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total Loans Commercial real estate: Owner-occupied $ 239 $ - $ 239 $ 3,546 $ 803,216 $ 807,001 All other - - - 2,000 862,728 864,728 Consumer real estate – mortgage 3,312 167 3,479 4,513 732,649 740,641 Construction and land development 53 - 53 3,454 368,497 372,004 Commercial and industrial 1,365 127 1,492 1,064 1,817,044 1,819,600 Consumer and other 12,666 189 12,855 2,973 210,552 226,380 $ 17,635 $ 483 $ 18,118 $ 17,550 $ 4,794,686 $ 4,830,354 December 31, 2014 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total Loans Commercial real estate: Owner-occupied $ - $ - $ - $ 4,313 $ 760,207 $ 764,520 All other 2,232 - 2,232 - 777,339 779,571 Consumer real estate – mortgage 2,391 146 2,537 4,458 714,163 721,158 Construction and land development 421 - 421 5,173 316,872 322,466 Commercial and industrial 3,431 5 3,436 1,609 1,779,684 1,784,729 Consumer and other 9,532 172 9,704 1,152 206,727 217,583 $ 18,007 $ 323 $ 18,330 $ 16,705 $ 4,554,992 $ 4,590,027 (1) Approximately $11.6 million and $10.2 million of nonaccrual loans as of June 30, 2015 and December 31, 2014, respectively, were performing pursuant to their contractual terms at those dates. The following table shows the allowance allocation by loan classification and accrual status at Impaired Loans Accruing Loans Nonaccrual Loans Troubled Debt Restructurings (1) Total Allowance for Loan Losses June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Commercial real estate –mortgage $ 18,274 $ 22,094 $ 70 $ 108 $ - $ - $ 18,344 $ 22,202 Consumer real estate – mortgage 7,866 3,963 545 654 488 807 8,899 5,424 Construction and land development 4,199 5,555 46 79 24 90 4,269 5,724 Commercial and industrial 28,014 28,329 24 62 972 776 29,010 29,167 Consumer and other 3,441 1,261 462 252 40 57 3,943 1,570 Unallocated - - - - - - 1,107 3,272 $ 61,794 $ 61,202 $ 1,147 $ 1,155 $ 1,524 $ 1,730 $ 65,572 $ 67,359 (1) Troubled debt restructurings of $8.7 million and $8.4 million as of June 30, 2015 and December 31, 2014, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. The following table details the changes in the allowance for loan losses from December 31, 2013 to December 31, 2014 to June 30, 2015 by loan classification and the allocation of the allowance for loan losses (in thousands): Commercial real estate – mortgage Consumer real estate – mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Allowance for Loan Losses: Balance at December 31, 2013 $ 21,372 $ 8,355 $ 7,235 $ 25,134 $ 1,632 $ 4,242 $ 67,970 Charged-off loans (875 ) (1,621 ) (301 ) (3,095 ) (1,811 ) - (7,703 ) Recovery of previously charged-off loans 538 671 277 1,484 487 - 3,457 Provision for loan losses 1,167 (1,981 ) (1,487 ) 5,644 1,262 (970 ) 3,635 Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Collectively evaluated for impairment $ 22,094 $ 3,963 $ 5,555 $ 28,329 $ 1,261 $ 61,202 Individually evaluated for impairment 108 1,461 169 838 309 2,885 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 3,272 $ 67,359 Loans: Collectively evaluated for impairment $ 1,539,778 $ 712,774 $ 316,857 $ 1,779,347 $ 216,155 $ 4,564,911 Individually evaluated for impairment 4,313 8,384 5,609 5,382 1,428 25,116 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 1,544,091 $ 721,158 $ 322,466 $ 1,784,729 $ 217,583 $ 4,590,027 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Allowance for Loan Losses: Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Charged-off loans (350 ) (229 ) (126 ) (969 ) (4,425 ) - (6,099 ) Recovery of previously charged-off loans 11 185 938 1,256 420 - 2,810 Provision for loan losses (3,519 ) 3,519 (2,267 ) (444 ) 6,378 (2,165 ) 1,502 Balance at June 30, 2015 $ 18,344 $ 8,899 $ 4,269 $ 29,010 $ 3,943 $ 1,107 $ 65,572 Collectively evaluated for impairment $ 18,274 $ 7,866 $ 4,199 $ 28,014 $ 3,431 $ 61,794 Individually evaluated for impairment 70 1,033 70 996 502 2,671 Loans acquired with deteriorated credit quality - - - - - - Balance at June 30, 2015 $ 18,344 $ 8,899 $ 4,269 $ 29,010 $ 3,943 1,107 $ 65,572 Loans: Collectively evaluated for impairment $ 1,666,183 $ 732,276 $ 368,122 $ 1,814,343 $ 223,178 $ 4,804,101 Individually evaluated for impairment 5,546 8,365 3,882 5,257 3,202 26,253 Loans acquired with deteriorated credit quality - - - - - - Balance at June 30, 2015 $ 1,671,729 $ 740,641 $ 372,004 $ 1,819,600 $ 226,380 $ 4,830,354 The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter using a migration analysis compiled using loss data over the previous 24 quarters. The migration analysis utilized in calculating the allowance for loan losses as of June 30, 2015 included our historical loss experience from the second quarter of 2009 through the first quarter of 2015. More recent quarters in the period are more heavily weighted than the earliest quarters. The level of the allowance is based upon evaluation of the loan portfolio, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industry. Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at June 30, 2015 with the comparative exposures for December 31, 2014 (in thousands): At June 30, 2015: Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2014 Lessors of nonresidential buildings $ 581,625 $ 141,487 $ 723,112 $ 572,620 Lessors of residential buildings 261,250 66,955 328,205 335,399 At June 30, 2015, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $6.6 million to current directors, executive officers, and their related entities, of which $4.0 million had been drawn upon. At December 31, 2014, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $6.4 million to directors, executive officers, and their related entities, of which approximately $2.9 million had been drawn upon. These loans and extensions of credit were made in the ordinary course of business on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable loans to persons not related to Pinnacle Bank and did not involve more than the normal risk of collectability or present other unfavorable features. None of these loans to directors, executive officers, and their related entities were impaired at June 30, 2015 or December 31, 2014. Residential Lending At June 30, 2015, Pinnacle Financial had approximately $31.5 million of mortgage loans held-for-sale compared to approximately $14.0 million at December 31, 2014. Total loan volumes sold during the six months ended June 30, 2015 were approximately $208.4 million compared to approximately $144.7 million for the six months ended June 30, 2014. During the six months ended June 30, 2015, Pinnacle Financial recognized $3.6 million in gains on the sale of these loans, net of commissions paid, compared to $2.9 million during the six months ended June 30, 2014. These mortgage loans held-for-sale are originated internally and are primarily to borrowers in Pinnacle Bank's geographic markets. These sales are typically on a mandatory basis to investors that follow conventional government sponsored entities (GSE) and the Department of Housing and Urban Development/U.S. Department of Veterans Affairs (HUD/VA) guidelines. Each purchaser has specific guidelines and criteria for sellers of loans, and the risk of credit loss with regard to the principal amount of the loans sold is generally transferred to the purchasers upon sale. While the loans are sold without recourse, the purchase agreements require Pinnacle Bank to make certain representations and warranties regarding the existence and sufficiency of file documentation and the absence of fraud by borrowers or other third parties such as appraisers in connection with obtaining the loan. If it is determined that the loans sold were in breach of these representations or warranties, Pinnacle Bank has obligations to either repurchase the loan for the unpaid principal balance and related investor fees or make the purchaser whole for the economic benefits of the loan. To date, repurchase activity pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Income Taxes | Note 5. Income Taxes Income Taxes Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Balance at January 1 $ 391 $ - $ 391 $ - Increases due to tax positions taken during the current year - - - - Increases due to tax positions taken during a prior year - - - - Decreases due to the lapse of the statute of limitations during the current year - - - - Decreases due to settlements with the taxing authorities during the current year - - - - Balance at June 30 $ 391 $ - $ 391 $ - |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 6 Months Ended |
Jun. 30, 2015 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Note 6. Commitments and Contingent Liabilities In the normal course of business, Pinnacle Financial has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, and thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. At June 30, 2015, these commitments amounted to $1.6 billion. Standby letters of credit are generally issued on behalf of an applicant (our customer) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from Pinnacle Financial under certain prescribed circumstances. Subsequently, Pinnacle Financial would then seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. At June 30, 2015, these commitments amounted to $70.8 million. Pinnacle Financial follows the same credit policies and underwriting practices when making these commitments as it does for on-balance sheet instruments. Each customer's creditworthiness is evaluated on a case-by-case basis, and the amount of collateral obtained, if any, is based on management's credit evaluation of the customer. Collateral held varies but may include cash, real estate and improvements, marketable securities, accounts receivable, inventory, equipment and personal property. The contractual amounts of these commitments are not reflected in the consolidated financial statements and only amounts drawn upon would be reflected in the future. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should our customers default on their resulting obligation to us, Pinnacle Financial's maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those commitments. At June 30, 2015, and December 31, 2014, Pinnacle Financial had accrued $1.1 million and $1.4 million, respectively, for the inherent risks associated with these off-balance sheet commitments. Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of these claims outstanding at June 30, 2015 will not have a material adverse impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows. |
Stock Options, Stock Appreciati
Stock Options, Stock Appreciation Rights and Restricted Shares | 6 Months Ended |
Jun. 30, 2015 | |
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |
Stock Options, Stock Appreciation Rights and Restricted Shares | Note 7. Stock Options, Stock Appreciation Rights and Restricted Shares As described more fully in the Annual Report on Form 10-K, as of June 30, 2015, Pinnacle Financial has one equity incentive plan pursuant to which awards may be granted in the future, the 2014 Equity Incentive Plan (the "2014 Plan"). Total shares available for issuance under the 2014 Plan were approximately 1.1 million shares as of June 30, 2015, inclusive of shares returned to plan reserves during the six months ended June 30, 2015. The 2014 Plan also permits Pinnacle Financial to reissue awards currently outstanding that are subsequently forfeited, settled in cash or that expire unexercised and are returned to the 2014 Plan. Common Stock Options and Stock Appreciation Rights As of June 30, 2015, there were approximately 542,670 stock options and 2,690 stock appreciation rights outstanding to purchase common shares. A summary of the stock option and stock appreciation rights activity within the equity incentive plans during the six months ended June 30, 2015 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows: Number Weighted- Average Exercise Price Weighted- Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (000's) Outstanding at December 31, 2014 698,488 $ 26.89 1.90 $ 9,071 (1) Granted - Exercised (152,102 ) Stock appreciation rights exercised (3) (1,021 ) Forfeited (5 ) Outstanding and exercisable at June 30, 2015 545,360 $ 27.00 1.61 $ 14,918 (2) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $39.54 per common share at December 31, 2014 for the 698,488 options and stock appreciation rights that were in-the-money at December 31, 2014. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $54.37 per common share at June 30, 2015 for the 545,360 options and stock appreciation rights that were in-the-money at June 30, 2015. (3) 1,021 SARS were converted into 442 common shares upon exercise. Compensation costs related to all stock options granted under Pinnacle Financial's equity incentive plans had been fully recognized and all outstanding option awards are fully vested. Following the merger with CapitalMark on July 31, 2015, Pinnacle Financial assumed CapitalMark's Amended and Restated Stock Option Plan and CapitalMark's outstanding stock options converted into approximately 858,000 Pinnacle Financial options and were fully vested upon consummation of the merger pursuant to CapitalMark's stock option plan. Restricted Share Awards Additionally, the 2014 Plan provides for the granting of restricted share awards and other performance or market-based awards. There were no market-based awards outstanding as of June 30, 2015 under this plan. A summary of activity for unvested restricted share awards for the six months ended June 30, 2015 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2014 849,198 $ 24.26 Shares awarded 119,668 36.56 Conversion of restricted share units to restricted share awards 43,711 34.50 Restrictions lapsed and shares released to associates/directors (209,547 ) 23.37 Shares forfeited (1) (13,120 ) 28.89 Unvested at 789,910 $ 27.46 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following table outlines restricted stock grants that were made, grouped by similar vesting criteria, during the six months ended June 30, 2015: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Forfeited by participants (5) Shares Unvested Time Based Awards (2) 2015 Associates 5 108,966 2 2,859 106,105 Performance Based Awards (3) 2015 Leadership team 5 43,711 - - 43,711 Outside Director Awards (4) 2015 Outside directors 1 10,702 - - 10,702 (1) Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares to pay the applicable income taxes associated with the award. For time-based restricted share awards, dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. For performance-based awards, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. (2) The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. (3) The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period. (4) Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on the one year anniversary date of the award based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (5) These shares represent forfeitures resulting from recipients for when employment terminated during the year-to-date period ended June 30, 2015. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. Compensation expense associated with the time-based restricted share awards is recognized over the time period that the restrictions associated with the awards lapse on a straight-line basis based on the total grant date fair value. Compensation expense associated with performance-based restricted share awards is recognized over the time period that the restrictions associated with the awards are anticipated to lapse based on a schedule consistent with the nature of the award. For the three and six months ended June 30, 2015, Pinnacle Financial recognized approximately $1.6 million and $3.1 million, respectively, in compensation costs attributable to restricted share awards, compared to $1.2 million and $2.4 million for the three and six months ended June 30, 2014. Effective as of the closing of the CapitalMark merger, the Human Resources and Compensation Committee of the board of directors of Pinnacle Financial (HRCC) awarded approximately 52,000 restricted share awards to CapitalMark associates. Approximately 40,000 are time-based awards and vest in pro rata increments over the next 5 years. The remaining awards were granted to CapitalMark's officers that are expected to remain with Pinnacle Bank and were added to the Bank's senior leadership and a portion will vest each year over a three year period if performance criteria are satisfied. 2015 Restricted Share Units Pinnacle Financial granted restricted share units to the senior executive officers and other members of the Leadership Team in the first quarter of 2015. The senior executive officers' restricted share unit award included a range from 58,200 units at the target compensation level to 101,850 units at the maximum compensation level. These restricted share units will convert to a number of restricted share awards based on the achievement of certain performance metrics. The Leadership Team restricted share unit award of 28,378 units was granted at a target level of performance. For both senior executive officers and the Leadership Team, approximately one-third of these awards are eligible for conversion to restricted share awards based on the achievement of certain predetermined performance goals for each of the fiscal years ended December 31, 2015, 2016 and 2017, respectively. The performance metrics for each of the impacted fiscal years were established concurrently with the issuance of the restricted share unit grants in January 2015 by the HRCC. The awards include a one-year performance period and an additional one-year service period following the performance period for a combined two-year service period per traunche. At the end of each respective two-year service period, the restricted share units are then subject to a post-vest holding period to extend the term of each traunche of the award to five years from the date of grant. During the post-vest holding period, the shares will not be released to the recipient and cannot be transferred, subject to limited exceptions, but will continue to accrue dividends until the awards are released, which is expected to be commensurate with the filing of Pinnacle Financial's Annual Report on Form 10-K for the year ended December 31, 2019 provided Pinnacle Bank achieves a certain soundness threshold as of December 31, 2019. These restricted share units are being expensed based on the requisite service period of the underlying traunche of the award. Each period, the number of shares that is expected to lapse to the recipient is reevaluated and the associated compensation expense is adjusted accordingly. For the three and six months ended June 30, 2015, Pinnacle Financial recognized expense associated with the first traunche of this award totaling $142,000 and $246,000 respectively. The expense is being accrued using an anticipated performance level for the senior executive officers between the target and maximum performance levels and at the target performance level for the Leadership Team. 2014 Restricted Share Units |
Regulatory Matters
Regulatory Matters | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 8. Regulatory Matters Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to Pinnacle Financial in a calendar year in excess of the total of Pinnacle Bank's retained net income for that year plus the retained net income for the preceding two years. During the six months ended June 30, 2015, Pinnacle Bank paid $7.5 million in dividends to Pinnacle Financial. As of June 30, 2015, Pinnacle Bank could pay approximately $155.9 million of additional dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. Pinnacle Financial initiated payment of a quarterly dividend of $0.08 per share of common stock in the fourth quarter of 2013 and increased this quarterly dividend to $0.12 beginning in the first quarter of 2015. Thus far, Pinnacle Financial has declared seven subsequent dividend payments. The amount and timing of all future dividend payments, if any, is subject to Board discretion and will depend on Pinnacle Financial's earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to us. In July 2013, the Federal Reserve Board and the FDIC approved final rules that substantially amend the regulatory risk-based capital rules applicable to Pinnacle Bank and Pinnacle Financial. The final rules implement the regulatory capital reforms of the Basel Committee on Banking Supervision reflected in "Basel III: A Global Regulatory Framework for More Resilient Banks and Banking Systems" (Basel III) and changes required by the Dodd-Frank Act. Under these rules, the leverage and risk-based capital ratios of bank holding companies may not be lower than the leverage and risk-based capital ratios for insured depository institutions. The final rules also include new minimum risk-based capital and leverage ratios. Moreover, these rules refine the definition of what constitutes "capital" for purposes of calculating those ratios, including the definitions of Tier 1 capital and Tier 2 capital. The new minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a new common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6% (increased from 4%); (iii) a total risk-based capital ratio of 8% (unchanged from current rules); (iv) a Tier 1 leverage ratio of 4% for all institutions. The rules also establish a "capital conservation buffer" of 2.5% (to be phased in over three years) above the new regulatory minimum risk-based capital ratios, and result in the following minimum ratios once the capital conservation buffer is fully phased in: (i) a common equity Tier 1 risk-based capital ratio of 7%, (ii) a Tier 1 risk-based capital ratio of 8.5%, and (iii) a total risk-based capital ratio of 10.5%. To be considered well capitalized under applicable banking regulations following January 1, 2015, Pinnacle Financial and Pinnacle Bank must maintain the following minimum capital ratios and not be subject to a written agreement, order or directive to maintain a higher capital level: (i) a common equity Tier 1 capital ratio of 6.5% (ii) a Tier 1 risk based capital ratio of 8% (iii) a Total risk based capital ratio of 10%, and (iv) in the case of Pinnacle Bank, a Tier 1 leverage ratio of 5% The capital conservation buffer requirement is to be phased in beginning in January 2016 at 0.625% of risk-weighted assets and will increase each year until fully implemented on January 1, 2019. An institution will be subject to limitations on paying dividends, engaging in share repurchases and paying discretionary bonuses if capital levels fall below minimum levels plus the buffer amounts. These limitations establish a maximum percentage of eligible retained income that could be utilized for such actions. Under these new rules, Tier 1 capital generally consists of common stock (plus related surplus) and retained earnings, limited amounts of minority interest in the form of additional Tier 1 capital instruments, and non-cumulative preferred stock and related surplus, subject to certain eligibility standards, less goodwill and other specified intangible assets and other regulatory deductions. Cumulative preferred stock and trust preferred securities issued after May 19, 2010, will no longer qualify as Tier 1 capital, but such securities issued prior to May 19, 2010, including in the case of bank holding companies with less than $15.0 billion in total assets, trust preferred securities issued prior to that date, will continue to count as Tier 1 capital subject to certain limitations. As a result, Pinnacle Financial's Trust Preferred Securities continue to qualify as Tier 1 capital. The definition of Tier 2 capital is generally unchanged for most banking organizations, subject to certain new eligibility criteria. The Notes issued by Pinnacle Bank on July 30, 2015 will not qualify as Tier 1 capital but will qualify initially as Tier 2 capital. Common equity Tier 1 capital generally consist of common stock (plus related surplus) and retained earnings plus limited amounts of minority interest in the form of common stock, less goodwill and other specified intangible assets and other regulatory deductions. The final rules allowed banks and their holding companies with less than $250 billion in assets a one-time opportunity to opt-out of a requirement to include unrealized gains and losses in accumulated other comprehensive income in their capital calculation. Pinnacle Financial has opted-out of this requirement. Management believes, as of June 30, 2015, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier I and Tier I leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At June 30,2015 Total capital to risk weighted assets: Pinnacle Financial $ 697,271 12.0 % $ 466,388 8.0 % $ 582,985 10.0 % Pinnacle Bank $ 652,503 11.2 % $ 465,239 8.0 % $ 581,549 10.0 % Tier I capital to risk weighted assets: Pinnacle Financial $ 630,595 10.8 % $ 349,791 6.0 % $ 466,388 8.0 % Pinnacle Bank $ 585,827 10.1 % $ 348,929 6.0 % $ 465,239 8.0 % Tier I capital to average assets (*): Pinnacle Financial $ 630,595 10.5 % $ 240,577 4.0 % NA NA Pinnacle Bank $ 585,827 9.8 % $ 239,840 4.0 % $ 299,800 5.0 % Common equity Tier I capital to risk weighted assets Pinnacle Financial $ 550,495 9.4 % $ 262,343 4.5 % $ 378,940 6.5 % Pinnacle Bank $ 585,727 10.1 % $ 261,697 4.5 % $ 378,007 6.5 % (*) Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments
Derivative Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 9. Derivative Instruments Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Non-hedge derivatives Pinnacle Financial enters into interest rate swaps (swaps) to facilitate customer transactions and meet their financing needs. Upon entering into these instruments to meet customer needs, Pinnacle Financial enters into offsetting positions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. Interest rate swap contracts involve the risk of dealing with counterparties and their ability to meet contractual terms. When the fair value of a derivative instrument contract is positive, this generally indicates that the counter party or customer owes Pinnacle Financial, and results in credit risk to Pinnacle Financial. When the fair value of a derivative instrument contract is negative, Pinnacle Financial owes the customer or counterparty and therefore, has no credit risk. A summary of Pinnacle Financial's interest rate swaps related to customers as of June 30, 2015 and December 31, 2014 is included in the following table (in thousands): June 30, 2015 December 31, 2014 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 317,367 $ 12,420 $ 251,321 $ 13,030 Pay variable / receive fixed swaps 317,367 (12,975 ) 251,321 (13,435 ) Total $ 634,734 $ (555 ) $ 502,642 $ (405 ) Hedge derivatives Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. June 30, 2015 December 31, 2014 Forecasted Notional Amount Receive Rate Pay Rate Term (1) Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Interest Rate Swap $ 33,000 3 month LIBOR 2.265 % April 2016- April 2020 $ (432 ) $ (263 ) $ (96 ) $ (58 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016- April 2022 (735 ) (447 ) (531 ) (323 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016- Oct. 2020 (451 ) (274 ) (210 ) (128 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017- Oct. 2021 (518 ) (315 ) (517 ) (314 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018- July 2022 (486 ) (295 ) (590 ) (359 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018- Oct. 2022 (450 ) (273 ) (602 ) (366 ) $ 200,000 $ (3,072 ) $ (1,867 ) $ (2,546 ) $ (1,548 ) (1) No cash will be exchanged prior to the beginning of the term. Pinnacle Financial has four interest rate swap agreements designated as cash flow hedges intended to protect against the variability of cash flows on selected LIBOR based loans. The swaps hedge the interest rate risk, wherein Pinnacle Financial receives a fixed rate of interest from a counterparty and pays a variable rate, based on one month LIBOR. The terms of the respective swaps range from seven to ten years and started on July 1, 2014. The swaps were entered into with a counterparty that met Pinnacle Financial's credit standards and the agreements contain collateral provisions protecting the at-risk party. Pinnacle Financial believes that the credit risk inherent in the contract is not significant. June 30, 2015 December 31, 2014 Forecasted Notional Amount Receive Rate Pay Rate Term (2) Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Interest Rate Swap $ 27,500 2.090 % 1 month LIBOR July 2014 - July 2021 $ 778 $ 473 $ 941 $ 572 Interest Rate Swap 27,500 2.270 % 1 month LIBOR July 2014 - July 2022 434 264 409 249 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 597 363 651 396 Interest Rate Swap 27,500 2.500 % 1 month LIBOR July 2014 - July 2024 714 434 956 581 $ 110,000 $ 2,523 $ 1,534 $ 2,957 $ 1,798 (1) No cash will be exchanged prior to the beginning of the term. The cash flow hedges were determined to be fully effective during the period presented. And therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 10. Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures Valuation Hierarchy FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:  Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, quoted market prices for identical or similar assets or liabilities in markets that are not active, inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.  Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Assets Securities available-for-sale identical Other investments – O th Other assets Nonaccrual loans Other real estate owned – Liabilities Other liabilities – The following tables present financial instruments measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): June 30, 2015 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Investment securities available-for-sale: U.S. government agency securities $ 121,274 $ - $ 121,274 $ - Mortgage-backed securities 467,432 - 467,432 - State and municipal securities 131,327 - 131,327 - Agency-backed securities 26,189 - 26,189 - Corporate notes and other 59,999 - 59,999 - Total investment securities available-for-sale $ 806,221 $ - $ 806,221 $ - Other investments 8,162 - - 8,162 Other assets 15,848 - 15,848 - Total assets at fair value $ 830,231 $ - $ 822,069 $ 8,162 Other liabilities $ 16,011 $ - $ 16,011 $ - Total liabilities at fair value $ 16,011 $ - $ 16,011 $ - December 31, 2014 Investment securities available-for-sale: U.S. government agency securities $ 113,456 $ - $ 113,456 $ - Mortgage-backed securities 455,839 - 455,839 - State and municipal securities 138,578 - 138,578 - Agency-backed securities 13,018 - 13,018 - Corporate notes and other 11,164 - 11,164 - Total investment securities available-for-sale 732,055 - 732,055 - Other investments 8,004 - - 8,004 Other assets 15,987 - 15,987 - Total assets at fair value $ 756,046 $ - $ 748,042 $ 8,004 Other liabilities $ 15,981 $ - $ 15,981 $ - Total liabilities at fair value $ 15,981 $ - $ 15,981 $ - The following table presents assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Total losses for the year-to-date period then ended Other real estate owned $ 6,793 $ - $ - $ 6,793 $ (505 ) Nonaccrual loans, net (1) 16,404 - - 16,404 (139 ) Total $ 23,197 $ - $ - $ 23,197 $ (644 ) December 31, 2014 Other real estate owned $ 11,186 $ - $ - $ 11,186 $ (509 ) Nonaccrual loans, net (1) 15,551 - - 15,551 (1,032 ) Total $ 26,737 $ - $ - $ 26,737 $ (1,541 ) (1) Amount is net of a valuation allowance of $1.1 million at June 30, 2015 and $1.2 million at December 31, 2014 as required by ASC 310-10, "Receivables." In the case of the investment securities portfolio, Pinnacle Financial monitors the portfolio to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the six months ended June 30, 2015 and 2014, there were no transfers between Levels 1, 2 or 3. The table below includes a rollforward of the balance sheet amounts for the six months ended June 30, 2015 and 2014 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands): For the six months ended June 30, 2015 2014 Other assets Other liabilities Other assets Other liabilities Fair value, January 1 $ 8,004 $ - $ 6,701 $ - Total realized gains (losses) included in income 173 - 92 - Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30 - - - - Purchases 548 - 393 - Issuances - - - - Settlements (563 ) - - - Transfers out of Level 3 - - - - Fair value, June 30 $ 8,162 $ - $ 7,186 $ - The amount of losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the reporting date $ 173 $ - $ 92 $ - The following methods and assumptions were used by Pinnacle Financial in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of June 30, 2015 and December 31, 2014. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Securities held-to-maturity Loans, net For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are Mortgage loans held-for-sale - Deposits, securities sold under agreements to repurchase, Federal Home Loan Bank (FHLB) advances, subordinated debt and other borrowings Off-balance sheet instruments The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at June 30, 2015 and December 31, 2014. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands). (dollars in thousands) June 30, 2015 Carrying/ Notional Amount Estimated Fair Value (1) Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Financial assets: Securities held-to-maturity $ 33,915 $ 33,830 $ - $ 33,830 $ - Loans, net 4,764,782 4,643,457 - - 4,643,457 Mortgage loans held-for-sale 31,543 32,000 - 32,000 - Financial liabilities: Deposits and securities sold under agreements to repurchase 5,055,159 4,748,089 - - 4,748,089 Federal Home Loan Bank advances 445,345 444,327 - - 444,327 Subordinated debt and other borrowings 133,908 117,496 - - 117,496 Off-balance sheet instruments: Commitments to extend credit (2) 1,603,313 791 - - 791 Standby letters of credit (3) 70,825 313 - - 313 December 31, 2014 Financial assets: Securities held-to-maturity $ 38,676 $ 38,789 $ - $ 38,789 $ - Loans, net 4,522,668 4,406,581 - - 4,406,581 Mortgage loans held for sale 14,039 14,322 - 14,322 - Financial liabilities: Deposits and securities sold under agreements to repurchase 4,876,600 4,603,915 - - 4,603,915 Federal Home Loan Bank advances 195,476 195,450 - - 195,450 Subordinated debt and other borrowings 96,158 77,433 - - 77,433 Off-balance sheet instruments: Commitments to extend credit (2) 1,390,593 1,078 - - 1,078 Standby letters of credit (3) 65,955 293 - - 293 (1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. (2) At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at June 30, 2015 and December 31, 2014, Pinnacle Financial included in other liabilities $0.8 million and $1.1, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At June 30, 2015 and December 31, 2014, the fair value of Pinnacle Financial's standby letters of credit was $313,000 and $293,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Summary of Significant Accoun18
Summary of Significant Accounting Policies (Policies) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III and PNFP Statutory Trust IV are affiliates of Pinnacle Financial and are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. |
Use of Estimates | Use of Estimates |
Cash Flow Information | Cash Flow Information 2015 2014 For the six months ended June 30, 2015 2014 Cash Transactions: Interest paid $ 7,099,390 $ 6,886,261 Income taxes paid, net 17,847,500 14,100,000 Noncash Transactions: Loans charged-off to the allowance for loan losses 6,098,606 3,268,626 Loans foreclosed upon and transferred to other real estate owned 252,896 1,672,459 Loans foreclosed upon and transferred to other repossessed assets 3,478,159 347,800 |
Income per Common Share Policy | Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three and six months ended June 30, Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Basic net income per share calculation: Numerator $ 22,663,831 $ 17,169,980 $ 44,506,542 $ 33,537,102 Denominator 35,128,856 34,697,888 35,085,271 34,650,377 Basic net income per share $ 0.65 $ 0.49 $ 1.27 $ 0.97 Diluted net income per share calculation: Numerator $ 22,663,831 $ 17,169,980 $ 44,506,542 $ 33,537,102 Denominator 35,128,856 34,697,888 35,085,271 34,650,377 Dilutive shares contingently issuable 425,827 383,814 391,827 374,482 Average diluted common shares outstanding 35,554,683 35,081,702 35,477,098 35,024,859 Diluted net income per share |
Subsequent Events | Subsequent Events — ASC 855, Subsequent Events, establishes general standards of accounting for and disclosure of events that occur after the balance sheet date but before financial statements are issued. Pinnacle Financial evaluated all events or transactions that occurred after June 30, 2015 through the date of the issued financial statements. Subordinated Debt Issuance On July 30, 2015, Pinnacle Bank issued $60.0 million in aggregate principal amount of Fixed–to-Floating Rate Subordinated Notes due 2025 (the "Notes") in a private placement transaction to accredited institutional investors. The maturity date of the notes is July 30, 2025, although Pinnacle Bank may redeem some or all of the Notes beginning on the interest payment date of July 30, 2020 and on any interest payment date thereafter at a redemption price equal to 100% of the principal amount of the Notes to be redeemed plus accrued and unpaid interest to the date of redemption, subject to the prior approval of the Federal Deposit Insurance Corporation (the "FDIC"). From the date of the issuance through July 29, 2020, the Notes will bear interest at the rate of 4.875% per year and will be payable semi-annually in arrears on January 30 and July 30 of each year, beginning on January 30, 2016. From July 30, 2020, the Notes will bear interest at a rate per annum equal to the three-month LIBOR rate plus 3.128%, payable quarterly in arrears on each January 30, April 30, July 30, and October 30, beginning on July 30, 2020, through the maturity date or the early redemption date of the Notes. The sale of the Notes yielded net proceeds of approximately $59.1 million after deducting the placement agents' fees and estimated expenses payable by Pinnacle Bank. Pinnacle Bank used the net proceeds from the offering, together with available cash, to pay the cash portion of the merger consideration payable to the shareholders of CapitalMark and intends to use the remaining net proceeds, together with available cash, to pay the cash portion of the merger consideration payable to Magna shareholders in connection with the mergers, to pay the amounts necessary to redeem the preferred shares that each of CapitalMark and Magna have issued to the United States Department of the Treasury in connection with their participation in the Treasury's Small Business Lending Fund and for general corporate purposes. CapitalMark Bank & Trust On April 7, 2015, Pinnacle Financial and Pinnacle Bank entered into a definitive agreement with CapitalMark to acquire CapitalMark via merger. On July 31, 2015, CapitalMark merged with Pinnacle Bank. Under the terms of the merger agreement, CapitalMark shareholders could either convert each of their outstanding shares of common stock into 0.50 shares of Pinnacle Financial's common stock plus cash in lieu of any fractional shares, or into a cash payment equal to the product of 0.50 multiplied by the average trading price for Pinnacle Financial's common stock on the Nasdaq Global Select Market for a 10-day period prior to the closing of the transaction or into a mix of Pinnacle Financial common stock and cash. Pursuant to the merger agreement, notwithstanding the elections, 90% of the outstanding shares of CapitalMark common stock were required to be converted into Pinnacle Financial common stock and 10% of those shares were required to be converted into cash. Additionally, CapitalMark's outstanding stock options converted into approximately 858,000 Pinnacle options and were fully vested upon consummation of the merger pursuant to CapitalMark's stock option plan. As of July 31, 2015, the transaction was valued at $195.2 million and was comprised of stock consideration of approximately 3.3 million shares of Pinnacle Financial's common stock and $19.7 million in cash. Additionally, Pinnacle Bank redeemed the $18.2 million in preferred stock issued by CapitalMark in connection with its participation in the U.S. Treasury's Small Business Lending Fund program on July 31, 2015. CapitalMark shareholders own approximately 9.7% of Pinnacle Financial's outstanding shares of common stock on a diluted basis. Magna Bank On April 29, 2015, Pinnacle Financial and Pinnacle Bank entered into a definitive agreement with Magna to acquire Magna via merger. The proposed merger of Magna with and into Pinnacle Bank has been approved by Magna's shareholders and is expected to close during the third quarter of 2015. Under the terms of the merger agreement, Magna shareholders will have the right to elect to convert their outstanding shares of common stock into 0.3369 shares of Pinnacle's common stock plus cash in lieu of any fractional shares, or into a cash payment equal to $14.32 per Magna share, or into a combination of 0.3369 shares of Pinnacle's common stock and $14.32 in cash at a ratio of 75% stock and 25% cash. Because the maximum amount of stock and cash that Pinnacle will pay in the merger is capped at 75% and 25%, respectively, of Magna's outstanding shares, those Magna shareholders that elect either all stock or all cash may automatically have their elections adjusted so that, in the aggregate, 75% of all Magna shares outstanding will be converted into shares of Pinnacle's common stock and 25% will be converted into cash. Magna's 328,350 stock options will be fully vested upon consummation of the merger pursuant to Magna's stock option plan. At closing, Magna's outstanding unexercised stock options will be settled in cash for the difference between the option's exercise price and $14.32. At closing, Magna shareholders will own approximately 3.3% of Pinnacle Financial's outstanding common stock, assuming all of Magna's options are cashed out. The transaction is currently valued at $83.4 million based on Pinnacle's closing price on April 28, 2015, related to the issuance of approximately 1.325 million shares of Pinnacle Financial's common stock and $20.7 million in cash, in each case assuming none of the options are exercised prior to closing. Additionally, Pinnacle Bank plans to redeem at closing the $18.35 million in Series C preferred stock issued by Magna in connection with its participation in the U.S. Treasury's Small Business Lending Fund program. |
Summary of Significant Accoun19
Summary of Significant Accounting Policies (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Summary of Significant Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Cash Flow Information 2015 2014 For the three months ended March 31, 2015 2014 Cash Transactions: Interest paid $ 3,426,798 $ 3,447,425 Income taxes paid, net 8,217,500 6,100,000 Noncash Transactions: Loans charged-off to the allowance for loan losses 2,649,708 1,503,511 Loans foreclosed upon and transferred to other real estate owned - 1,645,100 Loans foreclosed upon and transferred to other repossessed assets 1,738,757 347,800 |
Basic and Diluted Earnings Per Share Calculations | Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three and six months ended June 30, Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Basic net income per share calculation: Numerator $ 22,663,831 $ 17,169,980 $ 44,506,542 $ 33,537,102 Denominator 35,128,856 34,697,888 35,085,271 34,650,377 Basic net income per share $ 0.65 $ 0.49 $ 1.27 $ 0.97 Diluted net income per share calculation: Numerator $ 22,663,831 $ 17,169,980 $ 44,506,542 $ 33,537,102 Denominator 35,128,856 34,697,888 35,085,271 34,650,377 Dilutive shares contingently issuable 425,827 383,814 391,827 374,482 Average diluted common shares outstanding 35,554,683 35,081,702 35,477,098 35,024,859 Diluted net income per share $ 0.64 $ 0.49 $ 1.25 $ 0.96 |
Equity Method Investment (Table
Equity Method Investment (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Equity Method Investment [Abstract] | |
Equity Method Investments | A summary of BHG's financial position and results of operations as of and for the six months ended June 30, 2015 were as follows (in thousands): June 30, 2015 Assets $ 207,669 Liabilities 122,867 Member's equity 84,802 Total liabilities and equity $ 207,669 For the six months ended June 30, 2015 Revenues $ 61,480 Net income, pre-tax $ 36,762 |
Securities (Tables)
Securities (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | The amortized cost and fair value of securities available-for-sale and held-to-maturity at June 30, 2015 and December 31, 2014 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value June 30, 2015: Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 125,010 17 3,753 121,274 Mortgage-backed agency securities 462,472 8,463 3,503 467,432 State and municipal securities 125,112 6,535 320 131,327 Asset-backed securities 75,333 81 152 75,262 Corporate notes and other 10,035 892 1 10,926 $ 797,962 $ 15,988 $ 7,729 $ 806,221 Securities held-to-maturity: State and municipal securities $ 33,915 $ 139 $ 224 $ 33,830 $ 33,915 $ 139 $ 224 $ 33,830 December 31, 2014: Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 117,098 12 3,654 113,456 Mortgage-backed agency securities 447,757 10,322 2,240 455,839 State and municipal securities 130,545 8,213 180 138,578 Asset-backed securities 13,089 14 85 13,018 Corporate notes and other 10,196 969 2 11,163 $ 718,685 $ 19,530 6,161 $ 732,054 Securities held-to-maturity: State and municipal securities $ 38,676 $ 205 $ 92 $ 38,789 $ 38,676 $ 205 $ 92 $ 38,789 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of June 30, 2015 by contractual maturity are shown below. Actual maturities may differ from contractual maturities in the case of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands): Available-for-sale Held-to-maturity June 30, 2015: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 9,697 $ 9,734 $ 1,710 $ 1,712 Due in one year to five years 34,300 35,689 10,374 10,408 Due in five years to ten years 149,167 151,803 12,514 12,469 Due after ten years 66,993 66,301 9,317 9,241 Mortgage-backed securities 462,472 467,432 - - Asset-backed securities 75,333 75,262 - - $ 797,962 $ 806,221 $ 33,915 $ 33,830 |
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | At June 30, 2015 and December 31, 2014, the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands): Investments with an Unrealized Loss of less than 12 months Investments with an Unrealized Loss of 12 months or longer Total Investments with an Unrealized Loss Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses At June 30, 2015: U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 47,012 1,227 65,369 2,526 112,381 3,753 Mortgage-backed securities 143,785 1,114 104,901 2,389 248,506 3,503 State and municipal securities 22,639 263 5,076 281 27,715 544 Asset-backed securities 35,271 141 8,361 11 43,632 152 Corporate notes 250 1 151 - 401 1 Total temporarily-impaired securities $ 248,957 $ 2,746 $ 183,858 $ 5,207 $ 432,635 $ 7,953 At December 31, 2014: U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 3,593 10 103,658 3,644 107,251 3,654 Mortgage-backed securities 91,410 405 102,892 1,835 194,302 2,240 State and municipal securities 3,561 15 16,502 257 20,063 272 Asset-backed securities - - 9,289 85 9,289 85 Corporate notes 950 1 154 1 1,104 2 Total temporarily-impaired securities $ 99,514 $ 431 $ 232,495 $ 5,822 $ 332,009 $ 6,253 |
Loans and Allowance for Loan 22
Loans and Allowance for Loan Losses (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class | The following table outlines the amount of each loan classification categorized into each risk rating category as of June 30, 2015 and December 31, 2014 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total June 30, 2015 Accruing loans Pass $ 1,627,250 $ 720,144 $ 362,804 $ 1,717,492 $ 223,178 $ 4,650,868 Special Mention 16,027 2,209 2,086 42,976 - 63,298 Substandard (1) 22,906 9,923 3,232 53,875 - 89,936 1,666,183 732,276 368,122 1,814,343 223,178 4,804,102 Impaired loans Nonaccrual loans Substandard-nonaccrual 5,546 4,513 3,454 1,064 2,973 17,550 Doubtful-nonaccrual - - - - - - Total nonaccrual loans 5,546 4,513 3,454 1,064 2,973 17,550 Troubled debt restructurings (2) Pass - 415 428 587 229 1,659 Special Mention - 442 - - - 442 Substandard - 2,995 - 3,606 - 6,601 Total troubled debt restructurings - 3,852 428 4,193 229 8,702 Total impaired loans 5,546 8,365 3,882 5,257 3,202 26,252 Total loans $ 1,671,729 $ 740,641 $ 372,004 $ 1,819,600 $ 226,380 $ 4,830,354 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total December 31, 2014 Accruing loans Pass $ 1,510,718 $ 697,607 $ 295,645 $ 1,704,910 $ 216,155 $ 4,425,035 Special Mention 7,353 2,536 15,215 31,733 - 56,837 Substandard (1) 21,707 12,631 5,997 42,704 - 83,039 Total 1,539,778 712,774 316,857 1,779,347 216,155 4,564,911 Impaired loans Nonaccrual loans Substandard-nonaccrual 4,313 4,458 5,173 1,609 1,152 16,705 Doubtful-nonaccrual - - - - - - Total nonaccrual loans 4,313 4,458 5,173 1,609 1,152 16,705 Troubled debt restructurings (2) Pass - 62 436 575 75 1,148 Special Mention - 811 - - 201 1,012 Substandard - 3,053 - 3,198 - 6,251 Total troubled debt restructurings - 3,926 436 3,773 276 8,411 Total impaired loans 4,313 8,384 5,609 5,382 1,428 25,116 Total loans $ 1,544,091 $ 721,158 $ 322,466 $ 1,784,729 $ 217,583 $ 4,590,027 (1) Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $89.9 million at June 30, 2015, compared to $83.0 million at December 31, 2014. (2) Troubled debt restructurings are presented as impaired loans; however, they continue to accrue interest at contractual rates. |
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans | The following table details the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at June 30, 2015 and December 31, 2014 by loan classification and the amount of interest income recognized on a cash basis throughout the fiscal year-to-date period then ended, respectively, on these loans that remain on the balance sheets (in thousands): At June 30, 2015 For the six months ended June 30, 2015 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 3,753 $ 3,807 $ - $ 3,148 $ 53 Consumer real estate – mortgage 606 671 - 617 - Construction and land development 3,160 3,160 - 3,277 130 Commercial and industrial 909 1,176 - 932 - Consumer and other - - - - - Total $ 8,428 $ 8,814 $ - $ 7,974 $ 183 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,793 $ 2,047 $ 70 $ 1,824 $ - Consumer real estate – mortgage 3,907 4,223 545 4,037 - Construction and land development 294 390 46 299 - Commercial and industrial 155 168 24 204 - Consumer and other 2,973 3,092 462 3,003 - Total $ 9,122 $ 9,920 $ 1,147 $ 9,367 $ - Total nonaccrual loans $ 17,550 $ 18,734 $ 1,147 $ 17,341 $ 183 At December 31, 2014 For the year ended December 31, 2014 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,422 $ 2,641 $ - $ 2,624 $ - Consumer real estate – mortgage 1,472 1,901 - 1,552 - Construction and land development 4,810 4,810 - 5,016 256 Commercial and industrial 1,325 1,804 - 1,561 - Consumer and other - - - - - Total $ 10,029 $ 11,156 $ - $ 10,753 $ 256 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,891 $ 2,107 $ 108 $ 1,958 $ - Consumer real estate – mortgage 2,986 3,205 654 3,080 - Construction and land development 363 406 79 384 - Commercial and industrial 284 294 62 316 - Consumer and other 1,152 1,184 252 972 - Total $ 6,676 $ 7,196 $ 1,155 $ 6,710 $ - Total nonaccrual loans $ 16,705 $ 18,352 $ 1,155 $ 17,463 $ 256 (1) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
Amount of Troubled Debt Restructuring Categorized by Loan Classification | The Three months ended June 30, Six months ended June 30, 2015 Number of contracts Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Number of contracts Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Commercial real estate – mortgage - $ - $ - - $ - $ - Consumer real estate – mortgage - - - - - - Construction and land development - - - - - - Commercial and industrial - - - 1 434 337 Consumer and other - - - - - - - $ - $ - 1 $ 434 $ 337 2014 Commercial real estate – mortgage - $ - $ - - $ - $ - Consumer real estate – mortgage - - - - - - Construction and land development - - - - - - Commercial and industrial 1 75 59 7 2,955 2,009 Consumer and other - - - - - - 1 $ 75 $ 59 7 $ 2,955 $ 2,009 |
Past Due Balances by Loan Classification | The table below presents past due balances at June 30, 2015 and December 31, 2014, by loan classification and segment allocated between accruing and nonaccrual status (in thousands): June 30, 2015 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total Loans Commercial real estate: Owner-occupied $ 239 $ - $ 239 $ 3,546 $ 803,216 $ 807,001 All other - - - 2,000 862,728 864,728 Consumer real estate – mortgage 3,312 167 3,479 4,513 732,649 740,641 Construction and land development 53 - 53 3,454 368,497 372,004 Commercial and industrial 1,365 127 1,492 1,064 1,817,044 1,819,600 Consumer and other 12,666 189 12,855 2,973 210,552 226,380 $ 17,635 $ 483 $ 18,118 $ 17,550 $ 4,794,686 $ 4,830,354 December 31, 2014 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total Loans Commercial real estate: Owner-occupied $ - $ - $ - $ 4,313 $ 760,207 $ 764,520 All other 2,232 - 2,232 - 777,339 779,571 Consumer real estate – mortgage 2,391 146 2,537 4,458 714,163 721,158 Construction and land development 421 - 421 5,173 316,872 322,466 Commercial and industrial 3,431 5 3,436 1,609 1,779,684 1,784,729 Consumer and other 9,532 172 9,704 1,152 206,727 217,583 $ 18,007 $ 323 $ 18,330 $ 16,705 $ 4,554,992 $ 4,590,027 (1) Approximately $11.6 million and $10.2 million of nonaccrual loans as of June 30, 2015 and December 31, 2014, respectively, were performing pursuant to their contractual terms at those dates. The following table shows the allowance allocation by loan classification and accrual status at Impaired Loans Accruing Loans Nonaccrual Loans Troubled Debt Restructurings (1) Total Allowance for Loan Losses June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 June 30, 2015 December 31, 2014 Commercial real estate –mortgage $ 18,274 $ 22,094 $ 70 $ 108 $ - $ - $ 18,344 $ 22,202 Consumer real estate – mortgage 7,866 3,963 545 654 488 807 8,899 5,424 Construction and land development 4,199 5,555 46 79 24 90 4,269 5,724 Commercial and industrial 28,014 28,329 24 62 972 776 29,010 29,167 Consumer and other 3,441 1,261 462 252 40 57 3,943 1,570 Unallocated - - - - - - 1,107 3,272 $ 61,794 $ 61,202 $ 1,147 $ 1,155 $ 1,524 $ 1,730 $ 65,572 $ 67,359 (1) Troubled debt restructurings of $8.7 million and $8.4 million as of June 30, 2015 and December 31, 2014, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. |
Details of Changes in the Allowance for Loan Losses | The following table details the changes in the allowance for loan losses from December 31, 2013 to December 31, 2014 to June 30, 2015 by loan classification and the allocation of the allowance for loan losses (in thousands): Commercial real estate – mortgage Consumer real estate – mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Allowance for Loan Losses: Balance at December 31, 2013 $ 21,372 $ 8,355 $ 7,235 $ 25,134 $ 1,632 $ 4,242 $ 67,970 Charged-off loans (875 ) (1,621 ) (301 ) (3,095 ) (1,811 ) - (7,703 ) Recovery of previously charged-off loans 538 671 277 1,484 487 - 3,457 Provision for loan losses 1,167 (1,981 ) (1,487 ) 5,644 1,262 (970 ) 3,635 Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Collectively evaluated for impairment $ 22,094 $ 3,963 $ 5,555 $ 28,329 $ 1,261 $ 61,202 Individually evaluated for impairment 108 1,461 169 838 309 2,885 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 3,272 $ 67,359 Loans: Collectively evaluated for impairment $ 1,539,778 $ 712,774 $ 316,857 $ 1,779,347 $ 216,155 $ 4,564,911 Individually evaluated for impairment 4,313 8,384 5,609 5,382 1,428 25,116 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 1,544,091 $ 721,158 $ 322,466 $ 1,784,729 $ 217,583 $ 4,590,027 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Allowance for Loan Losses: Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Charged-off loans (350 ) (229 ) (126 ) (969 ) (4,425 ) - (6,099 ) Recovery of previously charged-off loans 11 185 938 1,256 420 - 2,810 Provision for loan losses (3,519 ) 3,519 (2,267 ) (444 ) 6,378 (2,165 ) 1,502 Balance at June 30, 2015 $ 18,344 $ 8,899 $ 4,269 $ 29,010 $ 3,943 $ 1,107 $ 65,572 Collectively evaluated for impairment $ 18,274 $ 7,866 $ 4,199 $ 28,014 $ 3,431 $ 61,794 Individually evaluated for impairment 70 1,033 70 996 502 2,671 Loans acquired with deteriorated credit quality - - - - - - Balance at June 30, 2015 $ 18,344 $ 8,899 $ 4,269 $ 29,010 $ 3,943 1,107 $ 65,572 Loans: Collectively evaluated for impairment $ 1,666,183 $ 732,276 $ 368,122 $ 1,814,343 $ 223,178 $ 4,804,101 Individually evaluated for impairment 5,546 8,365 3,882 5,257 3,202 26,253 Loans acquired with deteriorated credit quality - - - - - - Balance at June 30, 2015 $ 1,671,729 $ 740,641 $ 372,004 $ 1,819,600 $ 226,380 $ 4,830,354 |
Summary of Loan Portfolio Credit Risk Exposure | Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industry. Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at March 31, 2015 with the comparative exposures for December 31, 2014 (in thousands): At March 31, 2015: Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2014 Lessors of nonresidential buildings $ 518,962 $ 69,708 $ 588,670 $ 572,620 Lessors of residential buildings 297,283 52,613 349,896 335,399 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Income Taxes [Abstract] | |
Rollforward of uncertain tax positions | Three months ended June 30, Six months ended June 30, 2015 2014 2015 2014 Balance at January 1 $ 391 $ - $ 391 $ - Increases due to tax positions taken during the current year - - - - Increases due to tax positions taken during a prior year - - - - Decreases due to the lapse of the statute of limitations during the current year - - - - Decreases due to settlements with the taxing authorities during the current year - - - - Balance at June 30 $ 391 $ - $ 391 $ - |
Stock Options, Stock Apprecia24
Stock Options, Stock Appreciation Rights and Restricted Shares (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |
Summary of Stock Option and Stock Appreciation Rights Activity | As of June 30, 2015, there were approximately 542,670 stock options and 2,690 stock appreciation rights outstanding to purchase common shares. A summary of the stock option and stock appreciation rights activity within the equity incentive plans during the six months ended June 30, 2015 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows: Number Weighted- Average Exercise Price Weighted- Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (000's) Outstanding at December 31, 2014 698,488 $ 26.89 1.90 $ 9,071 (1) Granted - Exercised (152,102 ) Stock appreciation rights exercised (3) (1,021 ) Forfeited (5 ) Outstanding and exercisable at June 30, 2015 545,360 $ 27.00 1.61 $ 14,918 (2) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $39.54 per common share at December 31, 2014 for the 698,488 options and stock appreciation rights that were in-the-money at December 31, 2014. (2) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $54.37 per common share at June 30, 2015 for the 545,360 options and stock appreciation rights that were in-the-money at June 30, 2015. (3) 1,021 SARS were converted into 442 common shares upon exercise. |
Summary of Activity for Unvested Restricted Share Awards | A summary of activity for unvested restricted share awards for the six months ended June 30, 2015 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2014 849,198 $ 24.26 Shares awarded 119,668 36.56 Conversion of restricted share units to restricted share awards 43,711 34.50 Restrictions lapsed and shares released to associates/directors (209,547 ) 23.37 Shares forfeited (1) (13,120 ) 28.89 Unvested at 789,910 $ 27.46 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following table outlines restricted stock grants that were made, grouped by similar vesting criteria, during the six months ended June 30, 2015: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Forfeited by participants (5) Shares Unvested Time Based Awards (2) 2015 Associates 5 108,966 2 2,859 106,105 Performance Based Awards (3) 2015 Leadership team 5 43,711 - - 43,711 Outside Director Awards (4) 2015 Outside directors 1 10,702 - - 10,702 (1) Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares to pay the applicable income taxes associated with the award. For time-based restricted share awards, dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. For performance-based awards, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. (2) The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. (3) The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period. (4) Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on the one year anniversary date of the award based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (5) These shares represent forfeitures resulting from recipients for when employment terminated during the year-to-date period ended June 30, 2015. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Regulatory Matters [Abstract] | |
Summary of Regulatory Capital Requirement | Management believes, as of June 30, 2015, that Pinnacle Financial and Pinnacle Bank met all capital adequacy requirements to which they are subject. To be categorized as well-capitalized under applicable banking regulations, Pinnacle Financial and Pinnacle Bank must maintain minimum total risk-based, Tier I risk-based, common equity Tier I and Tier I leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At June 30,2015 Total capital to risk weighted assets: Pinnacle Financial $ 697,271 12.0 % $ 466,388 8.0 % $ 582,985 10.0 % Pinnacle Bank $ 652,503 11.2 % $ 465,239 8.0 % $ 581,549 10.0 % Tier I capital to risk weighted assets: Pinnacle Financial $ 630,595 10.8 % $ 349,791 6.0 % $ 466,388 8.0 % Pinnacle Bank $ 585,827 10.1 % $ 348,929 6.0 % $ 465,239 8.0 % Tier I capital to average assets (*): Pinnacle Financial $ 630,595 10.5 % $ 240,577 4.0 % NA NA Pinnacle Bank $ 585,827 9.8 % $ 239,840 4.0 % $ 299,800 5.0 % Common equity Tier I capital to risk weighted assets Pinnacle Financial $ 550,495 9.4 % $ 262,343 4.5 % $ 378,940 6.5 % Pinnacle Bank $ 585,727 10.1 % $ 261,697 4.5 % $ 378,007 6.5 % (*) Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Derivative Instruments [Abstract] | |
Summary of Interest Rate Swaps | A summary of Pinnacle Financial's interest rate swaps related to customers as of March 31, 2015 and December 31, 2014 is included in the following table (in thousands): March 31, 2015 December 31, 2014 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 266,762 $ 15,340 $ 251,321 $ 13,030 Pay variable / receive fixed swaps 266,762 (15,812 ) 251,321 (13,435 ) Total $ 533,524 $ (472 ) $ 502,642 $ (405 ) |
Schedule of Derivative Instruments | Hedge derivatives Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. March 31, 2015 December 31, 2014 Forecasted Notional Amount Receive Rate Pay Rate Term (1) Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Interest Rate Swap 33,000 3 month LIBOR 2.265 % April 2016- April 2020 (621 ) (377 ) (96 ) (58 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016- April 2022 (1,269 ) (771 ) (531 ) (323 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016- Oct. 2020 (742 ) (451 ) (210 ) (128 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017- Oct. 2021 (980 ) (596 ) (517 ) (314 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018- July 2022 (1,049 ) (637 ) (590 ) (359 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018- Oct. 2022 (1,048 ) (637 ) (602 ) (366 ) $ 200,000 (5,709 ) (3,469 ) (2,546 ) (1,548 ) (1) No cash will be exchanged prior to the beginning of the term. Pinnacle Financial has four interest rate swap agreements designated as cash flow hedges intended to protect against the variability of cash flows on selected LIBOR based loans. The swaps hedge the interest rate risk, wherein Pinnacle Financial receives a fixed rate of interest from a counterparty and pays a variable rate, based on one month LIBOR. The terms of the respective swaps range from seven to ten years and started on July 1, 2014. The swaps were entered into with a counterparty that met Pinnacle Financial's credit standards and the agreements contains collateral provisions protecting the at-risk party. Pinnacle Financial believes that the credit risk inherent in the contract is not significant. March 31, 2015 December 31, 2014 Forecasted Notional Amount Recieve Rate Pay Rate Term (2) Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Interest Rate Swap $ 27,500 2.090 % 1 month LIBOR July 2014 - July 2021 1,593 968 941 572 Interest Rate Swap 27,500 2.270 % 1 month LIBOR July 2014 - July 2022 832 506 409 249 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 1,180 717 651 396 Interest Rate Swap 27,500 2.500 % 1 month LIBOR July 2014 - July 2024 1,607 977 956 581 $ 110,000 5,212 3,168 2,957 1,798 (1) No cash will be exchanged prior to the beginning of the term. The cash flow hedges were determined to be fully effective during the period presented. And therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps. Pinnacle Financial does not expect any amounts to be reclassified from accumulated other comprehensive (loss) income related to these swaps over the next twelve months. |
Fair Value of Financial Instr27
Fair Value of Financial Instruments (Tables) | 6 Months Ended |
Jun. 30, 2015 | |
Fair Value of Financial Instruments [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial instruments measured at fair value on a recurring basis as of June 30, 2015 and December 31, 2014, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): June 30, 2015 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Investment securities available-for-sale: U.S. government agency securities $ 121,274 $ - $ 121,274 $ - Mortgage-backed securities 467,432 - 467,432 - State and municipal securities 131,327 - 131,327 - Agency-backed securities 26,189 - 26,189 - Corporate notes and other 59,999 - 59,999 - Total investment securities available-for-sale $ 806,221 $ - $ 806,221 $ - Other investments 8,162 - - 8,162 Other assets 15,848 - 15,848 - Total assets at fair value $ 830,231 $ - $ 822,069 $ 8,162 Other liabilities $ 16,011 $ - $ 16,011 $ - Total liabilities at fair value $ 16,011 $ - $ 16,011 $ - December 31, 2014 Investment securities available-for-sale: U.S. government agency securities $ 113,456 $ - $ 113,456 $ - Mortgage-backed securities 455,839 - 455,839 - State and municipal securities 138,578 - 138,578 - Agency-backed securities 13,018 - 13,018 - Corporate notes and other 11,164 - 11,164 - Total investment securities available-for-sale 732,055 - 732,055 - Other investments 8,004 - - 8,004 Other assets 15,987 - 15,987 - Total assets at fair value $ 756,046 $ - $ 748,042 $ 8,004 Other liabilities $ 15,981 $ - $ 15,981 $ - Total liabilities at fair value $ 15,981 $ - $ 15,981 $ - |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis as of June 30, 2015 and December 31, 2014 (in thousands): June 30, 2015 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Total losses for the year-to-date period then ended Other real estate owned $ 6,793 $ - $ - $ 6,793 $ (505 ) Nonaccrual loans, net (1) 16,404 - - 16,404 (139 ) Total $ 23,197 $ - $ - $ 23,197 $ (644 ) December 31, 2014 Other real estate owned $ 11,186 $ - $ - $ 11,186 $ (509 ) Nonaccrual loans, net (1) 15,551 - - 15,551 (1,032 ) Total $ 26,737 $ - $ - $ 26,737 $ (1,541 ) (1) Amount is net of a valuation allowance of $1.1 million at June 30, 2015 and $1.2 million at December 31, 2014 as required by ASC 310-10, "Receivables." |
Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation | The table below includes a rollforward of the balance sheet amounts for the six months ended June 30, 2015 and 2014 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy for assets and liabilities measured at fair value on a recurring basis. When a determination is made to classify a financial instrument within Level 3 of the valuation hierarchy, the determination is based upon the significance of the unobservable factors to the overall fair value measurement. However, since Level 3 financial instruments typically include, in addition to the unobservable or Level 3 components, observable components (that is, components that are actively quoted and can be validated to external sources), the gains and losses in the table below include changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands): For the six months ended June 30, 2015 2014 Other assets Other liabilities Other assets Other liabilities Fair value, January 1 $ 8,004 $ - $ 6,701 $ - Total realized gains (losses) included in income 173 - 92 - Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at June 30 - - - - Purchases 548 - 393 - Issuances - - - - Settlements (563 ) - - - Transfers out of Level 3 - - - - Fair value, June 30 $ 8,162 $ - $ 7,186 $ - The amount of losses for the period included in earnings attributable to the change in unrealized losses relating to assets still held at the reporting date $ 173 $ - $ 92 $ - |
Carrying Amounts, Estimated Fair Value and Placement in the Fair Value hierarchy of Financial Instruments | The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at June 30, 2015 and December 31, 2014. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands). (dollars in thousands) June 30, 2015 Carrying/ Notional Amount Estimated Fair Value (1) Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Financial assets: Securities held-to-maturity $ 33,915 $ 33,830 $ - $ 33,830 $ - Loans, net 4,764,782 4,643,457 - - 4,643,457 Mortgage loans held-for-sale 31,543 32,000 - 32,000 - Financial liabilities: Deposits and securities sold under agreements to repurchase 5,055,159 4,748,089 - - 4,748,089 Federal Home Loan Bank advances 445,345 444,327 - - 444,327 Subordinated debt and other borrowings 133,908 117,496 - - 117,496 Off-balance sheet instruments: Commitments to extend credit (2) 1,603,313 791 - - 791 Standby letters of credit (3) 70,825 313 - - 313 December 31, 2014 Financial assets: Securities held-to-maturity $ 38,676 $ 38,789 $ - $ 38,789 $ - Loans, net 4,522,668 4,406,581 - - 4,406,581 Mortgage loans held for sale 14,039 14,322 - 14,322 - Financial liabilities: Deposits and securities sold under agreements to repurchase 4,876,600 4,603,915 - - 4,603,915 Federal Home Loan Bank advances 195,476 195,450 - - 195,450 Subordinated debt and other borrowings 96,158 77,433 - - 77,433 Off-balance sheet instruments: Commitments to extend credit (2) 1,390,593 1,078 - - 1,078 Standby letters of credit (3) 65,955 293 - - 293 (1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. (2) At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at June 30, 2015 and December 31, 2014, Pinnacle Financial included in other liabilities $0.8 million and $1.1, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At June 30, 2015 and December 31, 2014, the fair value of Pinnacle Financial's standby letters of credit was $313,000 and $293,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Summary of Significant Accoun28
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Jul. 31, 2015 | Apr. 28, 2015 | |
Cash Transactions [Abstract] | |||||||
Interest paid | $ 7,099,390 | $ 6,886,261 | |||||
Income taxes paid, net | 17,847,500 | 14,100,000 | |||||
Noncash Transactions: | |||||||
Loans charged-off to the allowance for loan losses | 6,098,606 | 3,268,626 | $ 7,703,000 | ||||
Loans foreclosed upon and transferred to other real estate owned | 252,896 | 1,672,459 | |||||
Loans Foreclosed Upon And Transferred To Other Repossessed Assets | 3,478,159 | 347,800 | |||||
Available-for-sale securities transferred to held-to-maturity portfolio | 0 | 0 | |||||
Basic earnings per share calculation [Abstract] | |||||||
Numerator - Net income available to common stockholders | $ 22,663,831 | $ 17,169,980 | $ 44,506,542 | $ 33,537,102 | |||
Denominator - Average common shares outstanding (in shares) | 35,128,856 | 34,697,888 | 35,085,271 | 34,650,377 | |||
Basic net income per share available to common stockholders (in dollars per share) | $ 0.65 | $ 0.49 | $ 1.27 | $ 0.97 | |||
Diluted earnings per share calculation [Abstract] | |||||||
Numerator - Net income available to common stockholders | $ 22,663,831 | $ 17,169,980 | $ 44,506,542 | $ 33,537,102 | |||
Denominator - Average common shares outstanding (in shares) | 35,128,856 | 34,697,888 | 35,085,271 | 34,650,377 | |||
Dilutive shares contingently issuable (in shares) | 425,827 | 383,814 | 391,827 | 374,482 | |||
Average diluted common shares outstanding (in shares) | 35,554,683 | 35,081,702 | 35,477,098 | 35,024,859 | |||
Diluted net income per share available to common stockholders (in dollars per share) | $ 0.64 | $ 0.49 | $ 1.25 | $ 0.96 | |||
CapitalMark Bank & Trust [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fractional Shares of Common Stock | 50.00% | ||||||
Cash Consideration Percentage | 10.00% | ||||||
Stock Consideration Percentage | 90.00% | ||||||
Options Related to Acquisition | 858,000 | ||||||
Ownership Percentage Following Acquisition | 9.70% | ||||||
Current Valuation of Acquisition | $ 195,200,000 | ||||||
Valuation in Shares | 3,300,000 | ||||||
Valuation in Dollars | $ 19,700,000 | ||||||
Repayment of Small Business Lending Fund | $ 18,200,000 | ||||||
Magna Bank [Member] | |||||||
Business Acquisition [Line Items] | |||||||
Fractional Shares of Common Stock | 33.69% | ||||||
Cash Consideration Percentage | 25.00% | ||||||
Stock Consideration Percentage | 75.00% | ||||||
Options Related to Acquisition | 328,350 | ||||||
Ownership Percentage Following Acquisition | 3.30% | ||||||
Current Valuation of Acquisition | $ 83,400,000 | ||||||
Valuation in Shares | 1,325,000 | ||||||
Valuation in Dollars | $ 20,700,000 | ||||||
Repayment of Small Business Lending Fund | $ 18,350,000 |
Equity Method Investment (Detai
Equity Method Investment (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 61 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Feb. 28, 2020 | Feb. 01, 2015 | Dec. 31, 2014 | |
Schedule of Equity Method Investments [Line Items] | |||||||
Embedded Goodwill | $ 243,290,816 | $ 243,290,816 | $ 243,529,010 | ||||
Technology, Trade Name and Customer Relationship Intangibles | 2,438,245 | 2,438,245 | $ 2,893,072 | ||||
Amortization of Intangible Assets | 227,413 | $ 237,676 | 454,827 | $ 475,351 | |||
Equity Method Investment, Summarized Financial Information, Assets [Abstract] | |||||||
Equity Method Investment, Summarized Financial Information, Assets, Total | 207,669,000 | 207,669,000 | |||||
Equity Method Investment, Summarized Financial Information, Liabilities [Abstract] | |||||||
Equity Method Investment, Summarized Financial Information, Liabilities, Total | 122,867,000 | 122,867,000 | |||||
Equity Method Investment Summarized Financial Information, Equity [Abstract] | |||||||
Equity Method Investment Summarized Financial Information, Equity, Total | 84,802,000 | 84,802,000 | |||||
Equity Method Investment, Summarized Financial Information, Liabilities and Equity, Total | 207,669,000 | 207,669,000 | |||||
Equity Method Investment, Summarized Financial Information, Income Statement [Abstract] | |||||||
Equity Method Investment, Summarized Financial Information, Revenue | 61,480,000 | ||||||
Equity Method Investment, Summarized Financial Information, Income (Loss) from Continuing Operations before Extraordinary Items | 36,762,000 | ||||||
Bankers Healthcare Group, LLC [Member] | |||||||
Schedule of Equity Method Investments [Line Items] | |||||||
Equity Method Investment, Ownership Percentage | 30.00% | ||||||
Purchase Price of Acquired Entity | $ 75,000,000 | ||||||
Embedded Goodwill | 40,800,000 | 40,800,000 | |||||
Technology, Trade Name and Customer Relationship Intangibles | 14,400,000 | 14,400,000 | |||||
Income (Loss) from Equity Method Investment | 7,700,000 | ||||||
Amortization of Intangible Assets | 1 | ||||||
Debt Instrument, Term | 5 years | ||||||
Debt Instrument, Interest Rate, Stated Percentage | 2.95% | ||||||
Face amount | $ 39,000,000 | $ 39,000,000 | $ 40,000,000 |
Securities (Details)
Securities (Details) - USD ($) | 6 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | |
Securities available-for-sale [Abstract] | ||
Amortized Cost | $ 797,962,000 | $ 718,685,000 |
Gross Unrealized Gains | 15,988,000 | 19,530,000 |
Gross Unrealized Losses | 7,729,000 | 6,160,000 |
Fair Value | 806,221,152 | 732,054,785 |
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | 669,700,000 | |
Available-for-sale Securities, Sold at a gain | 33,300,000 | |
Securities held-to-maturity [Abstract] | ||
Amortized Cost | 33,915,000 | 38,676,000 |
Gross Unrealized Gains | 139,000 | 205,000 |
Gross Unrealized Losses | 224,000 | 92,000 |
Fair Value | 33,830,072 | 38,788,870 |
Available-for-sale, Amortized Cost [Abstract] | ||
Due in one year or less | 9,697,000 | |
Due in one year to five years | 34,300,000 | |
Due in five years to ten years | 149,167,000 | |
Due after ten years | 66,993,000 | |
Mortgage-backed securities | 462,472,000 | |
Asset-backed securities | 75,333,000 | |
Amortized Cost | 797,962,000 | |
Available-for-sale, Fair Value [Abstract] | ||
Due in one year or less | 9,734,000 | |
Due in one year to five years | 35,689,000 | |
Due in five years to ten years | 151,803,000 | |
Due after ten years | 66,301,000 | |
Mortgage-backed securities | 467,432,000 | |
Asset-backed securities | 75,262,000 | |
Fair Value | 806,221,152 | |
Held-to-maturity, Amortized Cost [Abstract] | ||
Due in one year or less | 1,710,000 | |
Due in one year to five years | 10,374,000 | |
Due in five years to ten years | 12,514,000 | |
Due after ten years | 9,317,000 | |
Mortgage-backed securities | 0 | |
Asset-backed securities | 0 | |
Amortized Cost | 33,914,863 | 38,675,527 |
Held-to-maturity, Fair Value [Abstract] | ||
Due in one year or less | 1,712,000 | |
Due in one year to five years | 10,408,000 | |
Due in five years to ten years | 12,469,000 | |
Due after ten years | 9,241,000 | |
Mortgage-backed securities | 0 | |
Asset-backed securities | 0 | |
Fair Value | 33,830,072 | 38,788,870 |
US Treasury Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 0 | 0 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 0 | 0 |
U.S. Government Agency Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 125,010,000 | 117,098,000 |
Gross Unrealized Gains | 17,000 | 12,000 |
Gross Unrealized Losses | 3,753,000 | 3,654,000 |
Fair Value | 121,274,000 | 113,456,000 |
Mortgage-backed Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 462,472,000 | 447,757,000 |
Gross Unrealized Gains | 8,463,000 | 10,322,000 |
Gross Unrealized Losses | 3,503,000 | 2,240,000 |
Fair Value | 467,432,000 | 455,839,000 |
State and Municipal Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 125,112,000 | 130,545,000 |
Gross Unrealized Gains | 6,535,000 | 8,213,000 |
Gross Unrealized Losses | 320,000 | 180,000 |
Fair Value | 131,327,000 | 138,578,000 |
Asset-backed Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 75,333,000 | 13,089,000 |
Gross Unrealized Gains | 81,000 | 14,000 |
Gross Unrealized Losses | 152,000 | 85,000 |
Fair Value | 75,262,000 | 13,018,000 |
Corporate Notes and Other [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 10,035,000 | 10,196,000 |
Gross Unrealized Gains | 892,000 | 969,000 |
Gross Unrealized Losses | 1,000 | 1,000 |
Fair Value | 10,926,000 | 11,164,000 |
State and Municipal Securities [Member] | ||
Securities held-to-maturity [Abstract] | ||
Amortized Cost | 33,915,000 | 38,676,000 |
Gross Unrealized Gains | 139,000 | 205,000 |
Gross Unrealized Losses | 224,000 | 92,000 |
Fair Value | 33,830,072 | 38,788,870 |
Held-to-maturity, Fair Value [Abstract] | ||
Fair Value | $ 33,830,072 | $ 38,788,870 |
Securities, Available-for-sale
Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | $ 248,957 | $ 99,514 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 2,746 | 431 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 183,858 | 232,495 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 5,207 | 5,822 |
Total Investments with an Unrealized Loss, Fair Value | 432,815 | 332,009 |
Total Investments with an Unrealized Loss, Unrealized Losses | 7,953 | 6,253 |
US Treasury Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 0 | 0 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 0 | 0 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 0 | 0 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 0 | 0 |
Total Investments with an Unrealized Loss, Fair Value | 0 | 0 |
Total Investments with an Unrealized Loss, Unrealized Losses | 0 | 0 |
U.S. Government Agency Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 47,012 | 3,593 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 1,227 | 10 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 65,369 | 103,658 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 2,526 | 3,644 |
Total Investments with an Unrealized Loss, Fair Value | 112,381 | 107,251 |
Total Investments with an Unrealized Loss, Unrealized Losses | 3,753 | 3,654 |
Mortgage-backed Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 143,785 | 91,410 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 1,114 | 405 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 104,901 | 102,892 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 2,389 | 1,835 |
Total Investments with an Unrealized Loss, Fair Value | 248,686 | 194,302 |
Total Investments with an Unrealized Loss, Unrealized Losses | 3,503 | 2,240 |
State and Municipal Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 22,639 | 3,561 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 263 | 15 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 5,076 | 16,502 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 281 | 257 |
Total Investments with an Unrealized Loss, Fair Value | 27,715 | 20,063 |
Total Investments with an Unrealized Loss, Unrealized Losses | 544 | 272 |
Asset-backed Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 35,271 | 0 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 141 | 0 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 8,361 | 9,289 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 11 | 85 |
Total Investments with an Unrealized Loss, Fair Value | 43,632 | 9,289 |
Total Investments with an Unrealized Loss, Unrealized Losses | 152 | 85 |
Corporate Notes [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 250 | 950 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 1 | 1 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 151 | 154 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 0 | 1 |
Total Investments with an Unrealized Loss, Fair Value | 401 | 1,104 |
Total Investments with an Unrealized Loss, Unrealized Losses | $ 1 | $ 2 |
Loans and Allowance for Loan 32
Loans and Allowance for Loan Losses (Details) - USD ($) | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Loans and Allowance for Loan Losses [Abstract] | ||||
Percentage of loan portfolio as commercial loan (in hundredths) | 74.00% | |||
Risk rated loans | $ 500,000 | |||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,830,353,621 | $ 4,590,026,505 | ||
Potential problem loans not included in nonperforming assets | 89,900,000 | 83,000,000 | ||
Average balance of impaired loans | 17,341,000 | 17,463,000 | ||
Estimated increase in interest income if nonaccrual loans had been on accrual status | 398,000 | $ 416,000 | ||
Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,671,729,000 | 1,544,091,000 | ||
Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 740,641,000 | 721,158,000 | ||
Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 372,004,000 | 322,466,000 | ||
Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,819,600,000 | 1,784,729,000 | ||
Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 226,380,000 | 217,583,000 | ||
Accruing Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,804,102,000 | 4,564,911,000 | ||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,666,183,000 | 1,539,778,000 | ||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 732,276,000 | 712,774,000 | ||
Accruing Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 368,122,000 | 316,857,000 | ||
Accruing Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,814,343,000 | 1,779,347,000 | ||
Accruing Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 223,178,000 | 216,155,000 | ||
Accruing Loans [Member] | Pass [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,650,868,000 | 4,425,035,000 | ||
Accruing Loans [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,627,250,000 | 1,510,718,000 | ||
Accruing Loans [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 720,144,000 | 697,607,000 | ||
Accruing Loans [Member] | Pass [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 362,804,000 | 295,645,000 | ||
Accruing Loans [Member] | Pass [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,717,492,000 | 1,704,910,000 | ||
Accruing Loans [Member] | Pass [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 223,178,000 | 216,155,000 | ||
Accruing Loans [Member] | Special Mention [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 63,298,000 | 56,837,000 | ||
Accruing Loans [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 16,027,000 | 7,353,000 | ||
Accruing Loans [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,209,000 | 2,536,000 | ||
Accruing Loans [Member] | Special Mention [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,086,000 | 15,215,000 | ||
Accruing Loans [Member] | Special Mention [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 42,976,000 | 31,733,000 | ||
Accruing Loans [Member] | Special Mention [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Accruing Loans [Member] | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [1] | 89,936,000 | 83,039,000 | |
Accruing Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [1] | 22,906,000 | 21,707,000 | |
Accruing Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [1] | 9,923,000 | 12,631,000 | |
Accruing Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [1] | 3,232,000 | 5,997,000 | |
Accruing Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [1] | 53,875,000 | 42,704,000 | |
Accruing Loans [Member] | Substandard [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [1] | 0 | 0 | |
Nonaccrual Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 17,550,000 | 16,705,000 | ||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,546,000 | 4,313,000 | ||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,513,000 | 4,458,000 | ||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 3,454,000 | 5,173,000 | ||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,064,000 | 1,609,000 | ||
Nonaccrual Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,973,000 | 1,152,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 17,550,000 | 16,705,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,546,000 | 4,313,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 4,513,000 | 4,458,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 3,454,000 | 5,173,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 1,064,000 | 1,609,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 2,973,000 | 1,152,000 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 0 | 0 | ||
Troubled Debt Restructurings [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 8,702,000 | 8,411,000 | |
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 3,852,000 | 3,926,000 | |
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 428,000 | 436,000 | |
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 4,193,000 | 3,773,000 | |
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 229,000 | 276,000 | |
Troubled Debt Restructurings [Member] | Pass [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 1,659,000 | 1,148,000 | |
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 415,000 | 62,000 | |
Troubled Debt Restructurings [Member] | Pass [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 428,000 | 436,000 | |
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 587,000 | 575,000 | |
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 229,000 | 75,000 | |
Troubled Debt Restructurings [Member] | Special Mention [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 442,000 | 1,012,000 | |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 442,000 | 811,000 | |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 201,000 | |
Troubled Debt Restructurings [Member] | Substandard [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 6,601,000 | 6,251,000 | |
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 2,995,000 | 3,053,000 | |
Troubled Debt Restructurings [Member] | Substandard [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 3,606,000 | 3,198,000 | |
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | [2] | 0 | 0 | |
Impaired Loans [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 26,252,000 | 25,116,000 | ||
Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,546,000 | 4,313,000 | ||
Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 8,365,000 | 8,384,000 | ||
Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 3,882,000 | 5,609,000 | ||
Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | 5,257,000 | 5,382,000 | ||
Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Recorded Investment [Line Items] | ||||
Loans | $ 3,202,000 | $ 1,428,000 | ||
[1] | Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $89.9 million at June 30, 2015, compared to $83.0 million at December 31, 2014. | |||
[2] | Troubled debt restructurings are presented as impaired loans; however, they continue to accrue interest at contractual rates |
Loans and Allowance for Loan 33
Loans and Allowance for Loan Losses, Impaired Financing Receivable (Details) - USD ($) | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | $ 17,550,000 | $ 16,705,000 | |
Unpaid principal balance | 18,734,000 | 18,352,000 | |
Related allowance | [1] | 1,147,000 | 1,155,000 |
Average recorded investment | 17,341,000 | 17,463,000 | |
Interest income recognized | 183,000 | 256,000 | |
Interest income from cash payments received | 183,000 | 256,000 | |
Collateral Dependent Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 8,428,000 | 10,029,000 | |
Unpaid principal balance | 8,814,000 | 11,156,000 | |
Related allowance | [1] | 0 | 0 |
Average recorded investment | 7,974,000 | 10,753,000 | |
Interest income recognized | 183,000 | 256,000 | |
Collateral Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 3,753,000 | 2,422,000 | |
Unpaid principal balance | 3,807,000 | 2,641,000 | |
Related allowance | [1] | 0 | 0 |
Average recorded investment | 3,148,000 | 2,624,000 | |
Interest income recognized | 53,000 | 0 | |
Collateral Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 606,000 | 1,472,000 | |
Unpaid principal balance | 671,000 | 1,901,000 | |
Related allowance | [1] | 0 | 0 |
Average recorded investment | 617,000 | 1,552,000 | |
Interest income recognized | 0 | 0 | |
Collateral Dependent Impaired Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 3,160,000 | 4,810,000 | |
Unpaid principal balance | 3,160,000 | 4,810,000 | |
Related allowance | [1] | 0 | 0 |
Average recorded investment | 3,277,000 | 5,016,000 | |
Interest income recognized | 130,000 | 256,000 | |
Collateral Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 909,000 | 1,325,000 | |
Unpaid principal balance | 1,176,000 | 1,804,000 | |
Related allowance | [1] | 0 | 0 |
Average recorded investment | 932,000 | 1,561,000 | |
Interest income recognized | 0 | 0 | |
Collateral Dependent Impaired Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 0 | 0 | |
Unpaid principal balance | 0 | 0 | |
Related allowance | [1] | 0 | 0 |
Average recorded investment | 0 | 0 | |
Interest income recognized | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 9,122,000 | 6,676,000 | |
Unpaid principal balance | 9,920,000 | 7,196,000 | |
Related allowance | [1] | 1,147,000 | 1,155,000 |
Average recorded investment | 9,367,000 | 6,710,000 | |
Interest income recognized | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 1,793,000 | 1,891,000 | |
Unpaid principal balance | 2,047,000 | 2,107,000 | |
Related allowance | [1] | 70,000 | 108,000 |
Average recorded investment | 1,824,000 | 1,958,000 | |
Interest income recognized | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 3,907,000 | 2,986,000 | |
Unpaid principal balance | 4,223,000 | 3,205,000 | |
Related allowance | [1] | 545,000 | 654,000 |
Average recorded investment | 4,037,000 | 3,080,000 | |
Interest income recognized | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Construction and Land Development [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 294,000 | 363,000 | |
Unpaid principal balance | 390,000 | 406,000 | |
Related allowance | [1] | 46,000 | 79,000 |
Average recorded investment | 299,000 | 384,000 | |
Interest income recognized | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 155,000 | 284,000 | |
Unpaid principal balance | 168,000 | 294,000 | |
Related allowance | [1] | 24,000 | 62,000 |
Average recorded investment | 204,000 | 316,000 | |
Interest income recognized | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Consumer and Other [Member] | |||
Financing Receivable, Impaired [Line Items] | |||
Recorded investment | 2,973,000 | 1,152,000 | |
Unpaid principal balance | 3,092,000 | 1,184,000 | |
Related allowance | [1] | 462,000 | 252,000 |
Average recorded investment | 3,003,000 | 972,000 | |
Interest income recognized | $ 0 | $ 0 | |
[1] | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
Loans and Allowance for Loan 34
Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2015USD ($)Contract | Jun. 30, 2014USD ($)Contract | Jun. 30, 2015USD ($)Contract | Jun. 30, 2014USD ($)Contract | Dec. 31, 2014USD ($) | |
Troubled debt restructuring categorized by loan classification [Abstract] | |||||
Number of contracts | Contract | 0 | 1 | 1 | 7 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 75,000 | $ 434,000 | $ 2,955,000 | |
Post Modification Outstanding Recorded Investment, net of related allowance | 0 | $ 59,000 | 337,000 | $ 2,009,000 | |
Troubled debt restructurings performing as of restructure date | $ 8,700,000 | $ 8,700,000 | $ 8,400,000 | ||
Percentage of credit exposure to risk based capital (in hundredths) | 25.00% | 25.00% | |||
Commercial Real Estate - Mortgage [Member] | |||||
Troubled debt restructuring categorized by loan classification [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Consumer Real Estate - Mortgage [Member] | |||||
Troubled debt restructuring categorized by loan classification [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Construction and Land Development [Member] | |||||
Troubled debt restructuring categorized by loan classification [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | $ 0 | $ 0 | |
Commercial and Industrial [Member] | |||||
Troubled debt restructuring categorized by loan classification [Abstract] | |||||
Number of contracts | Contract | 0 | 1 | 1 | 7 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 75,000 | $ 434,000 | $ 2,955,000 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 59,000 | $ 337,000 | $ 2,009,000 | |
Consumer and Other [Member] | |||||
Troubled debt restructuring categorized by loan classification [Abstract] | |||||
Number of contracts | Contract | 0 | 0 | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | 0 | $ 0 | 0 | $ 0 | |
Lessors of Nonresidential Buildings [Member] | |||||
Loan portfolio credit risk exposure [Abstract] | |||||
Financing receivables principal balance | 581,625,000 | 581,625,000 | |||
Financing receivables unfunded commitment | 141,487,000 | 141,487,000 | |||
Financing receivables exposure | 723,112,000 | 723,112,000 | 572,620,000 | ||
Lessors of Residential Buildings [Member] | |||||
Loan portfolio credit risk exposure [Abstract] | |||||
Financing receivables principal balance | 261,250,000 | 261,250,000 | |||
Financing receivables unfunded commitment | 66,955,000 | 66,955,000 | |||
Financing receivables exposure | $ 328,205,000 | $ 328,205,000 | $ 335,399,000 |
Loans and Allowance for Loan 35
Loans and Allowance for Loan Losses, Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Jun. 30, 2015 | Dec. 31, 2014 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | $ 18,118 | $ 18,330 | |
Nonaccrual | [1] | 17,550 | 16,705 |
Current and accruing | 4,794,686 | 4,554,992 | |
Total Loans | 4,830,354 | 4,590,027 | |
Currently performing impaired loans | 11,600 | 10,200 | |
30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 17,635 | 18,007 | |
90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 483 | 323 | |
Commercial Real Estate Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 239 | 0 | |
Nonaccrual | [1] | 3,546 | 4,313 |
Current and accruing | 803,216 | 760,207 | |
Total Loans | 807,001 | 764,520 | |
Commercial Real Estate Owner Occupied [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 239 | 0 | |
Commercial Real Estate Owner Occupied [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Commercial Real Estate All Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 2,232 | |
Nonaccrual | [1] | 2,000 | 0 |
Current and accruing | 862,728 | 777,339 | |
Total Loans | 864,728 | 779,571 | |
Commercial Real Estate All Other [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 2,232 | |
Commercial Real Estate All Other [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Consumer Real Estate - Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 3,479 | 2,537 | |
Nonaccrual | [1] | 4,513 | 4,458 |
Current and accruing | 732,649 | 714,163 | |
Total Loans | 740,641 | 721,158 | |
Consumer Real Estate - Mortgage [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 3,312 | 2,391 | |
Consumer Real Estate - Mortgage [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 167 | 146 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 53 | 421 | |
Nonaccrual | [1] | 3,454 | 5,173 |
Current and accruing | 368,497 | 316,872 | |
Total Loans | 372,004 | 322,466 | |
Construction and Land Development [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 53 | 421 | |
Construction and Land Development [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,492 | 3,436 | |
Nonaccrual | [1] | 1,064 | 1,609 |
Current and accruing | 1,817,044 | 1,779,684 | |
Total Loans | 1,819,600 | 1,784,729 | |
Commercial and Industrial [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,365 | 3,431 | |
Commercial and Industrial [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 127 | 5 | |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 12,855 | 9,704 | |
Nonaccrual | [1] | 2,973 | 1,152 |
Current and accruing | 210,552 | 206,727 | |
Total Loans | 226,380 | 217,583 | |
Consumer and Other [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 12,666 | 9,532 | |
Consumer and Other [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | $ 189 | $ 172 | |
[1] | Approximately $11.6 million and $10.2 million of nonaccrual loans as of June 30, 2015 and December 31, 2014, respectively, were performing pursuant to their contractual terms at those dates. |
Loans and Allowance for Loan 36
Loans and Allowance for Loan Losses, Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2014 | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | $ 65,572,050 | $ 67,358,639 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | $ (67,358,639) | ||||||
Charged-off loans | (6,098,606) | $ (3,268,626) | $ (7,703,000) | ||||
Recovery of previously charged-off loans | 2,810,000 | 3,457,000 | |||||
Provision for loan losses | 1,502,000 | 3,635,000 | |||||
Ending Balance | (65,572,050) | (65,572,050) | (67,358,639) | ||||
Financing Receivable, Individually Evaluated for Impairment | 26,252,000 | 25,116,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 2,671,000 | 2,885,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 4,804,102,000 | 4,564,911,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 61,794,000 | 61,202,000 | |||||
Financing Receivable, Allowance for Credit Losses | (65,572,050) | (65,572,050) | (67,358,639) | (67,358,639) | |||
Loans and Leases Receivable, Net of Deferred Income | 4,830,353,621 | 4,590,026,505 | |||||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | 6,600,000 | 6,400,000 | |||||
Amount drawn from loans and other extensions of credit granted | 4,000,000 | 2,900,000 | |||||
Loans Sold, Gross, Mortgage | 208,391,000 | 144,711,000 | |||||
Mortgage loans held-for-sale | 31,542,696 | 14,038,914 | |||||
Gain on mortgage loans sold, net | 1,652,111 | $ 1,668,604 | 3,593,365 | 2,903,475 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 0 | ||||||
Ending Balance | 0 | 0 | 0 | ||||
Financing Receivable, Net | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | 0 | |||
Commercial Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 18,344,000 | 22,202,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 22,202,000 | 21,372,000 | 21,372,000 | ||||
Charged-off loans | (350,000) | (875,000) | |||||
Recovery of previously charged-off loans | 11,000 | 538,000 | |||||
Provision for loan losses | (3,519,000) | 1,167,000 | |||||
Ending Balance | 18,344,000 | 18,344,000 | 22,202,000 | ||||
Financing Receivable, Individually Evaluated for Impairment | 5,546,000 | 4,313,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 70,000 | 108,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 1,666,183,000 | 1,539,778,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 18,274,000 | 22,094,000 | |||||
Financing Receivable, Allowance for Credit Losses | 18,344,000 | 22,202,000 | 21,372,000 | 21,372,000 | 22,202,000 | ||
Loans and Leases Receivable, Net of Deferred Income | 1,671,729,000 | 1,544,091,000 | |||||
Commercial Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 0 | ||||||
Ending Balance | 0 | 0 | 0 | ||||
Financing Receivable, Net | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | 0 | |||
Consumer Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 8,899,000 | 5,424,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 5,424,000 | 8,355,000 | 8,355,000 | ||||
Charged-off loans | (229,000) | (1,621,000) | |||||
Recovery of previously charged-off loans | 185,000 | 671,000 | |||||
Provision for loan losses | 3,519,000 | (1,981,000) | |||||
Ending Balance | 8,899,000 | 8,899,000 | 5,424,000 | ||||
Financing Receivable, Individually Evaluated for Impairment | 8,365,000 | 8,384,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,033,000 | 1,461,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 732,276,000 | 712,774,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 7,866,000 | 3,963,000 | |||||
Financing Receivable, Allowance for Credit Losses | 8,899,000 | 5,424,000 | 8,355,000 | 8,355,000 | 5,424,000 | ||
Loans and Leases Receivable, Net of Deferred Income | 740,641,000 | 721,158,000 | |||||
Consumer Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 0 | ||||||
Ending Balance | 0 | 0 | 0 | ||||
Financing Receivable, Net | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | 0 | |||
Construction and Land Development [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 4,269,000 | 5,724,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 5,724,000 | 7,235,000 | 7,235,000 | ||||
Charged-off loans | (126,000) | (301,000) | |||||
Recovery of previously charged-off loans | 938,000 | 277,000 | |||||
Provision for loan losses | (2,267,000) | (1,487,000) | |||||
Ending Balance | 4,269,000 | 4,269,000 | 5,724,000 | ||||
Financing Receivable, Individually Evaluated for Impairment | 3,882,000 | 5,609,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 70,000 | 169,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 368,122,000 | 316,857,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 4,199,000 | 5,555,000 | |||||
Financing Receivable, Allowance for Credit Losses | 4,269,000 | 5,724,000 | 7,235,000 | 7,235,000 | 5,724,000 | ||
Loans and Leases Receivable, Net of Deferred Income | 372,004,000 | 322,466,000 | |||||
Construction and Land Development [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 0 | ||||||
Ending Balance | 0 | 0 | 0 | ||||
Financing Receivable, Net | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | 0 | |||
Commercial and Industrial [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 29,010,000 | 29,167,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 29,167,000 | 25,134,000 | 25,134,000 | ||||
Charged-off loans | (969,000) | (3,095,000) | |||||
Recovery of previously charged-off loans | 1,256,000 | 1,484,000 | |||||
Provision for loan losses | (444,000) | 5,644,000 | |||||
Ending Balance | 29,010,000 | 29,010,000 | 29,167,000 | ||||
Financing Receivable, Individually Evaluated for Impairment | 5,257,000 | 5,382,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 996,000 | 838,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 1,814,343,000 | 1,779,347,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 28,014,000 | 28,329,000 | |||||
Financing Receivable, Allowance for Credit Losses | 29,010,000 | 29,167,000 | 25,134,000 | 25,134,000 | 29,167,000 | ||
Loans and Leases Receivable, Net of Deferred Income | 1,819,600,000 | 1,784,729,000 | |||||
Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 0 | ||||||
Ending Balance | 0 | 0 | 0 | ||||
Financing Receivable, Net | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | 0 | |||
Consumer and Other [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 3,943,000 | 1,570,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 1,570,000 | 1,632,000 | 1,632,000 | ||||
Charged-off loans | (4,425,000) | (1,811,000) | |||||
Recovery of previously charged-off loans | 420,000 | 487,000 | |||||
Provision for loan losses | 6,378,000 | 1,262,000 | |||||
Ending Balance | 3,943,000 | 3,943,000 | 1,570,000 | ||||
Financing Receivable, Individually Evaluated for Impairment | 3,202,000 | 1,428,000 | |||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 502,000 | 309,000 | |||||
Financing Receivable, Collectively Evaluated for Impairment | 223,178,000 | 216,155,000 | |||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,441,000 | 1,261,000 | |||||
Financing Receivable, Allowance for Credit Losses | 3,943,000 | 1,570,000 | 1,632,000 | 1,632,000 | 1,570,000 | ||
Loans and Leases Receivable, Net of Deferred Income | 226,380,000 | 217,583,000 | |||||
Consumer and Other [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 0 | ||||||
Ending Balance | 0 | 0 | 0 | ||||
Financing Receivable, Net | 0 | 0 | |||||
Financing Receivable, Allowance for Credit Losses | 0 | 0 | 0 | 0 | |||
Unallocated [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 1,107,000 | 3,272,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Beginning Balance | 3,272,000 | 4,242,000 | 4,242,000 | ||||
Charged-off loans | 0 | 0 | |||||
Recovery of previously charged-off loans | 0 | 0 | |||||
Provision for loan losses | (2,165,000) | (970,000) | |||||
Ending Balance | 1,107,000 | 1,107,000 | 3,272,000 | ||||
Financing Receivable, Allowance for Credit Losses | 1,107,000 | $ 3,272,000 | $ 4,242,000 | $ 4,242,000 | 3,272,000 | ||
Accruing Loans [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 61,794,000 | 61,202,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 4,804,102,000 | 4,564,911,000 | |||||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 18,274,000 | 22,094,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 1,666,183,000 | 1,539,778,000 | |||||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 7,866,000 | 3,963,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 732,276,000 | 712,774,000 | |||||
Accruing Loans [Member] | Construction and Land Development [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 4,199,000 | 5,555,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 368,122,000 | 316,857,000 | |||||
Accruing Loans [Member] | Commercial and Industrial [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 28,014,000 | 28,329,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 1,814,343,000 | 1,779,347,000 | |||||
Accruing Loans [Member] | Consumer and Other [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 3,441,000 | 1,261,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 223,178,000 | 216,155,000 | |||||
Accruing Loans [Member] | Unallocated [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 0 | 0 | |||||
Nonaccrual Loans [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 1,147,000 | 1,155,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 17,550,000 | 16,705,000 | |||||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 70,000 | 108,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 5,546,000 | 4,313,000 | |||||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 545,000 | 654,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 4,513,000 | 4,458,000 | |||||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 46,000 | 79,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 3,454,000 | 5,173,000 | |||||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 24,000 | 62,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 1,064,000 | 1,609,000 | |||||
Nonaccrual Loans [Member] | Consumer and Other [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 462,000 | 252,000 | |||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | 2,973,000 | 1,152,000 | |||||
Nonaccrual Loans [Member] | Unallocated [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | 0 | 0 | |||||
Troubled Debt Restructurings [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | 1,524,000 | 1,730,000 | ||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | [2] | 8,702,000 | 8,411,000 | ||||
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | 0 | 0 | ||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | [2] | 0 | 0 | ||||
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | 488,000 | 807,000 | ||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | [2] | 3,852,000 | 3,926,000 | ||||
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | 24,000 | 90,000 | ||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | [2] | 428,000 | 436,000 | ||||
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | 972,000 | 776,000 | ||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | [2] | 4,193,000 | 3,773,000 | ||||
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | 40,000 | 57,000 | ||||
Changes in allowance for loan losses [Roll Forward] | |||||||
Loans and Leases Receivable, Net of Deferred Income | [2] | 229,000 | 276,000 | ||||
Troubled Debt Restructurings [Member] | Unallocated [Member] | |||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||
Total Allowance for Loan Losses | [1] | $ 0 | $ 0 | ||||
[1] | Troubled debt restructurings of $8.7 million and $8.4 million as of June 30, 2015 and December 31, 2014, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. | ||||||
[2] | Troubled debt restructurings are presented as impaired loans; however, they continue to accrue interest at contractual rates |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2015 | Jun. 30, 2014 | Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | Dec. 31, 2013 | |
Income Taxes [Abstract] | ||||||
Unrecognized tax benefits | $ 391,000 | $ 0 | $ 391,000 | $ 0 | $ 391,000 | $ 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 0 | 0 | 0 | 0 | ||
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 0 | 0 | 0 | ||
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 0 | 0 | 0 | ||
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 0 | $ 0 | 0 | $ 0 | ||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 9,600 | $ 9,600 | $ 0 | |||
Effective income tax rate (in hundredths) | 33.20% | 33.10% | 33.10% | 33.20% | ||
Federal income tax statutory rate (in hundredths) | 35.00% | 35.00% | ||||
State income tax rate (in hundredths) | 6.50% | 6.50% |
Commitments and Contingent Li38
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 6 Months Ended | 12 Months Ended |
Jun. 30, 2015 | Dec. 31, 2014 | |
Loss Contingencies [Line Items] | ||
Inherent risks associated with off balance sheet commitments | $ 1.1 | $ 1.4 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 1,600 | |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 70.8 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Expiry period of standby letter of credit, maximum | 2 years |
Stock Options, Stock Apprecia39
Stock Options, Stock Appreciation Rights and Restricted Shares (Details) | 3 Months Ended | 6 Months Ended | 12 Months Ended | ||||||
Jun. 30, 2015USD ($)Plan$ / sharesshares | Jun. 30, 2014USD ($) | Jun. 30, 2015USD ($)$ / sharesshares | Jun. 30, 2014USD ($) | Dec. 31, 2014USD ($)$ / sharesshares | |||||
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |||||||||
Number of equity incentive plan | Plan | 1 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Stock-based compensation expense | $ | $ 3,361,547 | $ 2,581,483 | |||||||
Stock Appreciation Rights (SARs) [Member] | |||||||||
Number [Roll Forward] | |||||||||
Outstanding, Ending Balance (in shares) | 2,690 | 2,690 | |||||||
Exercised (in shares) | [1] | (1,021) | |||||||
Outstanding, Ending Balance (in shares) | 2,690 | 2,690 | |||||||
Stock Option [Member] | |||||||||
Number [Roll Forward] | |||||||||
Outstanding, Ending Balance (in shares) | 542,670 | 542,670 | |||||||
Outstanding, Ending Balance (in shares) | 542,670 | 542,670 | |||||||
Restricted Share [Member] | |||||||||
Number [Roll Forward] | |||||||||
Unvested, beginning of period (in shares) | 849,198 | ||||||||
Shares awarded (in shares) | 119,668 | ||||||||
Conversion of restricted share units to restricted share awards (in shares) | 43,711 | ||||||||
Restrictions lapsed and shares released to associates/directors (in shares) | (209,547) | ||||||||
Shares forfeited (in shares) | [2] | (13,120) | |||||||
Unvested, end of period (in shares) | 789,910 | 789,910 | 849,198 | ||||||
Grant date weighted average cost [Roll Forward] | |||||||||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 24.26 | ||||||||
Shares awarded (in dollars per share) | $ / shares | 36.56 | ||||||||
Conversion of restricted share units to restricted share awards (in dollars per share) | $ / shares | 34.50 | ||||||||
Restrictions lapsed and shares released to associates/directors (in dollars per share) | $ / shares | 23.37 | ||||||||
Shares forfeited (in dollars per share) | $ / shares | [2] | 28.89 | |||||||
Unvested, end of period (in dollars per share) | $ / shares | $ 27.46 | $ 27.46 | $ 24.26 | ||||||
Shares forfeited due to failure to meet performance targets (in shares) | 0 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 119,668 | ||||||||
Shares forfeited by participants (in shares) | [2] | 13,120 | |||||||
Shares Unvested (in shares) | 789,910 | 849,198 | 849,198 | ||||||
Stock-based compensation expense | $ | $ 1.6 | $ 1.2 | $ 3,100,000 | 2,400,000 | |||||
Restricted share units, awarded (in shares) | 119,668 | ||||||||
Common Stock Options and Stock Appreciation Rights [Member] | |||||||||
Number [Roll Forward] | |||||||||
Outstanding, Ending Balance (in shares) | 545,360 | 545,360 | 698,488 | ||||||
Granted (in shares) | 0 | ||||||||
Exercised (in shares) | (152,102) | ||||||||
Forfeited (in shares) | (5) | ||||||||
Outstanding, Ending Balance (in shares) | 545,360 | 545,360 | 698,488 | ||||||
Outstanding and expected to vest (in shares) | 545,360 | ||||||||
Weighted average exercise price [Abstract] | |||||||||
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 26.89 | ||||||||
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 27 | $ 27 | $ 26.89 | ||||||
Options exercisable (in dollars per share) | $ / shares | $ 27 | ||||||||
Weighted average contractual remaining term [Abstract] | |||||||||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 1 year 7 months 10 days | 1 year 10 months 24 days | |||||||
SharebasedCompensationArrangementBySharebasedPaymentAwardOptionsOutstandingWeightedAverageRemainingContractualTerm2 | 1 year 7 months 10 days | 1 year 10 months 24 days | |||||||
Outstanding and expected to vest | 1 year 7 months 10 days | ||||||||
Aggregate intrinsic value [Abstract] | |||||||||
Outstanding, beginning of period | $ | [3] | $ 9,071,000 | |||||||
Outstanding, end of period | $ | $ 14,918,000 | [4] | $ 14,918,000 | [4] | $ 9,071,000 | [3] | |||
Outstanding and expected to vest | $ | [4] | $ 14,918,000 | |||||||
Quoted closing price of common stock (in dollars per share) | $ / shares | $ 54.37 | $ 39.54 | |||||||
Number of awards used in aggregate intrinsic value (in shares) | 545,360 | 698,488 | |||||||
Unrecognized compensation cost related to unvested stock options granted | $ | $ 0 | ||||||||
Time Based Awards [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | [5] | 108,966 | |||||||
Shares forfeited (in shares) | [5],[6] | (2,859) | |||||||
Unvested, end of period (in shares) | [5] | 106,105 | 106,105 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Group | [5],[7] | Associates | |||||||
Vesting Period in years | [5] | 5 years | |||||||
Shares awarded (in shares) | [5] | 108,966 | |||||||
Restrictions lapsed and shares released to participants (in shares) | [5] | 2 | |||||||
Shares forfeited by participants (in shares) | [5],[6] | 2,859 | |||||||
Shares Unvested (in shares) | [5] | 106,105 | 106,105 | ||||||
Restricted share units, awarded (in shares) | [5] | 108,966 | |||||||
Performance Based Awards [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | [8] | 43,711 | |||||||
Shares forfeited (in shares) | [6],[8] | 0 | |||||||
Unvested, end of period (in shares) | [8] | 43,711 | 43,711 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Group | [7],[8] | Leadership team | |||||||
Vesting Period in years | [8] | 5 years | |||||||
Shares awarded (in shares) | [8] | 43,711 | |||||||
Restrictions lapsed and shares released to participants (in shares) | [8] | 0 | |||||||
Shares forfeited by participants (in shares) | [6],[8] | 0 | |||||||
Shares Unvested (in shares) | [8] | 43,711 | 43,711 | ||||||
Restricted share units, awarded (in shares) | [8] | 43,711 | |||||||
Outside Director Awards [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | [9] | 10,702 | |||||||
Shares forfeited (in shares) | [6],[9] | 0 | |||||||
Unvested, end of period (in shares) | [9] | 10,702 | 10,702 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Group | [7],[9] | Outside directors | |||||||
Vesting Period in years | [9] | 1 year | |||||||
Shares awarded (in shares) | [9] | 10,702 | |||||||
Restrictions lapsed and shares released to participants (in shares) | [9] | 0 | |||||||
Shares forfeited by participants (in shares) | [6],[9] | 0 | |||||||
Shares Unvested (in shares) | [9] | 10,702 | 10,702 | ||||||
Restricted share units, awarded (in shares) | [9] | 10,702 | |||||||
2015 Restricted Share Units [Member] | |||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Stock-based compensation expense | $ | $ 142 | 0 | $ 246 | 0 | |||||
2015 Restricted Share Units [Member] | Senior Executive Officers [Member] | Minimum [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 58,200 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 58,200 | ||||||||
Restricted share units, awarded (in shares) | 58,200 | ||||||||
2015 Restricted Share Units [Member] | Senior Executive Officers [Member] | Maximum [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 101,850 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 101,850 | ||||||||
Restricted share units, awarded (in shares) | 101,850 | ||||||||
2015 Restricted Share Units [Member] | Leadership Team [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 28,378 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 28,378 | ||||||||
Restricted share units, awarded (in shares) | 28,378 | ||||||||
2014 Restricted Share Unit [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 43,711 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 43,711 | ||||||||
Stock-based compensation expense | $ | $ 194 | $ 92 | $ 388 | $ 154 | |||||
Restricted share units, awarded (in shares) | 43,711 | ||||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 58,404 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 58,404 | ||||||||
Restricted share units, awarded (in shares) | 58,404 | ||||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 102,209 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 102,209 | ||||||||
Restricted share units, awarded (in shares) | 102,209 | ||||||||
2014 Restricted Share Unit [Member] | Leadership Team [Member] | |||||||||
Number [Roll Forward] | |||||||||
Shares awarded (in shares) | 29,087 | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | |||||||||
Shares awarded (in shares) | 29,087 | ||||||||
Restricted share units, awarded (in shares) | 29,087 | ||||||||
2014 Equity Incentive Plan [Member] | |||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||||||
Shares available for issuances (in shares) | 1,100,000 | ||||||||
[1] | 1,021 SARS were converted into 442 common shares upon exercise. | ||||||||
[2] | Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. | ||||||||
[3] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $39.54 per common share at December 31, 2014 for the approximately 698,488 options and stock appreciation rights that were in-the-money at December 31, 2014. | ||||||||
[4] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $54.37 per common share at June 30, 2015 for the approximately 545,360 options and stock appreciation rights that were in-the-money at June 30, 2015. | ||||||||
[5] | The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. | ||||||||
[6] | These shares represent forfeitures resulting from recipients for whom employment terminated during the year-to-date period ended June 30, 2015. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. | ||||||||
[7] | Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares to pay the applicable income taxes associated with the award. For time-based restricted share awards, dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. For performance-based awards, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. | ||||||||
[8] | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period. | ||||||||
[9] | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on the one year anniversary date of the award based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ / shares in Units, $ in Thousands | 6 Months Ended | ||
Jun. 30, 2015 | Dec. 31, 2013 | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Preceding period of retained earnings used in calculation of dividend payable | 2 years | ||
Dividends Payable, Amount Per Share | $ 0.12 | $ 0.08 | |
Pinnacle Financial [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends paid to Pinnacle Financial by Pinnacle Bank | $ 7,500 | ||
Amount available for dividend distribution without prior approval from TDFI | 155,900 | ||
Actual Amount [Abstract] | |||
Total capital to risk weighted assets: | 697,271 | ||
Tier I capital to risk weighted assets: | 630,595 | ||
Common Equity Tier I Capital to risk weighted assets: | 550,495 | ||
Tier I capital to average assets: | [1] | $ 630,595 | |
Actual Ratio [Abstract] | |||
Total capital to risk weighted assets: (in hundredths) | 12.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 10.80% | ||
Common Equity Tier I Capital to Risk Weighted Assets (in hundredths) | 9.40% | ||
Tier I capital to average assets: (in hundredths) | [1] | 10.50% | |
Regulatory Minimum Capital Requirement Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 466,388 | ||
Tier I capital to risk weighted assets: | 349,791 | ||
Common Equity Tier I Risk Based Capital to risk weighted assets: | 262,343 | ||
Tier I capital to average assets: | [1] | $ 240,577 | |
Regulatory Minimum Capital Requirement Ratio [Abstract] | |||
Total capital to risk weighted assets: (in hundredths) | 8.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 6.00% | ||
Common Equity Tier I capital to risk weighted assets: (in hundredths) | 4.50% | ||
Tier I capital to average assets: (in hundredths) | [1] | 4.00% | |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 582,985 | ||
Tier I capital to risk weighted assets: | 466,388 | ||
Common Equity Tier I capital to risk weighted assets: | $ 378,940 | ||
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | |||
Total capital to risk weighted assets: (in hundredths) | 10.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 8.00% | ||
Common Equity Tier I capital to risk weighted assets: (in hundredths) | 6.50% | ||
Pinnacle Bank [Member] | |||
Actual Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 652,503 | ||
Tier I capital to risk weighted assets: | 585,827 | ||
Common Equity Tier I Capital to risk weighted assets: | 585,727 | ||
Tier I capital to average assets: | [1] | $ 585,827 | |
Actual Ratio [Abstract] | |||
Total capital to risk weighted assets: (in hundredths) | 11.20% | ||
Tier I capital to risk weighted assets: (in hundredths) | 10.10% | ||
Common Equity Tier I Capital to Risk Weighted Assets (in hundredths) | 10.10% | ||
Tier I capital to average assets: (in hundredths) | [1] | 9.80% | |
Regulatory Minimum Capital Requirement Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 465,239 | ||
Tier I capital to risk weighted assets: | 348,929 | ||
Common Equity Tier I Risk Based Capital to risk weighted assets: | 261,697 | ||
Tier I capital to average assets: | [1] | $ 239,840 | |
Regulatory Minimum Capital Requirement Ratio [Abstract] | |||
Total capital to risk weighted assets: (in hundredths) | 8.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 6.00% | ||
Common Equity Tier I capital to risk weighted assets: (in hundredths) | 4.50% | ||
Tier I capital to average assets: (in hundredths) | [1] | 4.00% | |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 581,549 | ||
Tier I capital to risk weighted assets: | 465,239 | ||
Common Equity Tier I capital to risk weighted assets: | 378,007 | ||
Tier I capital to average assets: | [1] | $ 299,800 | |
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | |||
Total capital to risk weighted assets: (in hundredths) | 10.00% | ||
Tier I capital to risk weighted assets: (in hundredths) | 8.00% | ||
Common Equity Tier I capital to risk weighted assets: (in hundredths) | 6.50% | ||
Tier I capital to average assets: (in hundredths) | [1] | 5.00% | |
[1] | Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | |
Jun. 30, 2015 | Dec. 31, 2014 | ||
Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional Amount of Interest rate swap | $ 634,734 | $ 502,642 | |
Estimated Fair Value of Interest rate swap | $ (555) | $ (405) | |
Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | Jul. 1, 2014 | Jul. 1, 2014 | |
Term, Higher Maturity Range Date | Jul. 1, 2021 | Jul. 1, 2021 | |
Pay Fixed / Receive Variable Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional Amount of Interest rate swap | $ 317,367 | $ 251,321 | |
Estimated Fair Value of Interest rate swap | 12,420 | 13,030 | |
Pay Variable / Receive Fixed Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional Amount of Interest rate swap | 317,367 | 251,321 | |
Estimated Fair Value of Interest rate swap | $ (12,975) | $ (13,435) | |
Interest Rate Swap April 2016 April 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | [1] | Apr. 1, 2016 | Apr. 1, 2016 |
Forecasted Notional Amount | $ 33,000 | $ 33,000 | |
Variable Interest Rate | 3 month LIBOR | 3 month LIBOR | |
Fixed Interest Rate | 2.265% | 2.265% | |
Term, Higher Maturity Range Date | [1] | Apr. 1, 2020 | Apr. 1, 2020 |
Interest Rate Derivative Assets, at Fair Value | $ (432) | $ (96) | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ (263) | $ (58) | |
Interest Rate Swap April 2016 April 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | [1] | Apr. 1, 2016 | Apr. 1, 2016 |
Forecasted Notional Amount | $ 33,000 | $ 33,000 | |
Variable Interest Rate | 3 month LIBOR | 3 month LIBOR | |
Fixed Interest Rate | 2.646% | 2.646% | |
Term, Higher Maturity Range Date | [1] | Apr. 1, 2022 | Apr. 1, 2022 |
Interest Rate Derivative Assets, at Fair Value | $ (735) | $ (531) | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ (447) | $ (323) | |
Interest Rate Swap October 2016 October 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | [1] | Oct. 1, 2016 | Oct. 1, 2016 |
Forecasted Notional Amount | $ 33,000 | $ 33,000 | |
Variable Interest Rate | 3 month LIBOR | 3 month LIBOR | |
Fixed Interest Rate | 2.523% | 2.523% | |
Term, Higher Maturity Range Date | [1] | Oct. 1, 2020 | Oct. 1, 2020 |
Interest Rate Derivative Assets, at Fair Value | $ (451) | $ (210) | |
Unrealized Gain in Accumulated Other Comprehensive Income | (274) | (128) | |
Interest Rate Swap July 2014 July 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted Notional Amount | $ 27,500 | $ 27,500 | |
Variable Interest Rate | 1 month LIBOR | 1 month LIBOR | |
Fixed Interest Rate | 2.09% | 2.09% | |
Interest Rate Derivative Assets, at Fair Value | $ 778 | $ 941 | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ 473 | $ 572 | |
Interest Rate Swap July 2014 July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | Jul. 1, 2014 | Jul. 1, 2014 | |
Forecasted Notional Amount | $ 27,500 | $ 27,500 | |
Variable Interest Rate | 1 month LIBOR | 1 month LIBOR | |
Fixed Interest Rate | 2.27% | 2.27% | |
Term, Higher Maturity Range Date | Jul. 1, 2022 | Jul. 1, 2022 | |
Interest Rate Derivative Assets, at Fair Value | $ 434 | $ 409 | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ 264 | 249 | |
Interest Rate Swap July 2014 July 2023 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | Jul. 1, 2014 | ||
Forecasted Notional Amount | $ 27,500 | $ 27,500 | |
Variable Interest Rate | 1 month LIBOR | 1 month LIBOR | |
Fixed Interest Rate | 2.42% | 2.42% | |
Term, Higher Maturity Range Date | Jul. 1, 2023 | Jul. 1, 2023 | |
Interest Rate Derivative Assets, at Fair Value | $ 597 | $ 651 | |
Unrealized Gain in Accumulated Other Comprehensive Income | 363 | 396 | |
Interest Rate Swap July 2014 July 2024 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted Notional Amount | $ 27,500 | $ 27,500 | |
Variable Interest Rate | 1 month LIBOR | 1 month LIBOR | |
Fixed Interest Rate | 2.50% | 2.50% | |
Term, Higher Maturity Range Date | Jul. 1, 2024 | Jul. 1, 2024 | |
Interest Rate Derivative Assets, at Fair Value | $ 714 | $ 956 | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ 434 | $ 581 | |
Interest Rate Swap October 2017 October 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | [1] | Oct. 1, 2017 | Oct. 1, 2017 |
Forecasted Notional Amount | $ 33,000 | $ 33,000 | |
Variable Interest Rate | 3 month LIBOR | 3 month LIBOR | |
Fixed Interest Rate | 2.992% | 2.992% | |
Term, Higher Maturity Range Date | [1] | Oct. 1, 2021 | Oct. 1, 2021 |
Interest Rate Derivative Assets, at Fair Value | $ (518) | $ (517) | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ (315) | $ (314) | |
Interest Rate Swap April 2018 July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | [1] | Apr. 1, 2018 | Apr. 1, 2018 |
Forecasted Notional Amount | $ 34,000 | $ 34,000 | |
Variable Interest Rate | 3 month LIBOR | 3 month LIBOR | |
Fixed Interest Rate | 3.118% | 3.118% | |
Term, Higher Maturity Range Date | [1] | Jul. 1, 2022 | Jul. 1, 2022 |
Interest Rate Derivative Assets, at Fair Value | $ (486) | $ (590) | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ (295) | $ (359) | |
Interest Rate Swap July 2018 October 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Term, Lower Maturity Range Date | [1] | Jul. 1, 2018 | Jul. 1, 2018 |
Forecasted Notional Amount | $ 34,000 | $ 34,000 | |
Variable Interest Rate | 3 month LIBOR | 3 month LIBOR | |
Fixed Interest Rate | 3.158% | 3.158% | |
Term, Higher Maturity Range Date | [1] | Oct. 1, 2022 | Oct. 1, 2022 |
Interest Rate Derivative Assets, at Fair Value | $ (450) | $ (602) | |
Unrealized Gain in Accumulated Other Comprehensive Income | $ (273) | $ (366) | |
[1] | No cash will be exchanged prior to the term. |
Fair Value of Financial Instr42
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended | ||
Jun. 30, 2015 | Jun. 30, 2014 | Dec. 31, 2014 | ||
Investment securities available for sale [Abstract] | ||||
U.S. government agency securities | $ 121,274 | $ 113,456 | ||
Mortgage-backed securities | 467,432 | 455,839 | ||
State and municipal securities | 131,327 | 138,578 | ||
Agency- backed securities | 75,262 | 13,018 | ||
Corporate notes and other | 10,926 | 11,164 | ||
Total investment securities available-for-sale | 806,221 | 732,055 | ||
Other investments | 8,162 | 8,004 | ||
Other assets | 15,848 | 15,987 | ||
Total assets at fair value | 830,231 | 756,046 | ||
Liabilities at fair value [Abstract] | ||||
Other liabilities | 16,011 | 15,981 | ||
Total liabilities at fair value | 16,011 | 15,981 | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ||||
Other real estate owned | 6,793 | 11,186 | ||
Nonperforming loans, net | [1] | 16,403 | 15,551 | |
Total | 23,196 | 26,737 | ||
Gain (losses) on Other real estate owned | (505) | (509) | ||
Gain (losses) on Impaired loans, net | [1] | (139) | (1,032) | |
Total gains (losses) | (644) | (1,541) | ||
Other Liabilities [Member] | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Fair value, January 1 | 0 | $ 0 | 0 | |
Total net realized (losses) gains included in income | 0 | 0 | ||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 | 0 | 0 | ||
Purchases | 0 | 0 | ||
Issuances | 0 | 0 | ||
Settlements | 0 | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, March 31 | 0 | 0 | 0 | |
Total net realized (losses) gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 | 0 | 0 | ||
Quoted Market Prices in an Active Market (Level 1) [Member] | ||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ||||
Other real estate owned | 0 | 0 | ||
Nonperforming loans, net | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Models with Significant Observable Market Parameters (Level 2) [Member] | ||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ||||
Other real estate owned | 0 | 0 | ||
Nonperforming loans, net | [1] | 0 | 0 | |
Total | 0 | 0 | ||
Models with Significant Unobservable Market Parameters (Level 3) [Member] | ||||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ||||
Other real estate owned | 6,793 | 11,186 | ||
Nonperforming loans, net | [1] | 16,403 | 15,551 | |
Total | 23,196 | 26,737 | ||
Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | ||||
Investment securities available for sale [Abstract] | ||||
U.S. government agency securities | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
State and municipal securities | 0 | 0 | ||
Agency- backed securities | 0 | 0 | ||
Corporate notes and other | 0 | 0 | ||
Total investment securities available-for-sale | 0 | 0 | ||
Other investments | 0 | 0 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 0 | 0 | ||
Liabilities at fair value [Abstract] | ||||
Other liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | ||||
Investment securities available for sale [Abstract] | ||||
U.S. government agency securities | 121,274 | 113,456 | ||
Mortgage-backed securities | 467,432 | 455,839 | ||
State and municipal securities | 131,327 | 138,578 | ||
Agency- backed securities | 75,262 | 13,018 | ||
Corporate notes and other | 10,926 | 11,164 | ||
Total investment securities available-for-sale | 806,221 | 732,055 | ||
Other investments | 0 | 0 | ||
Other assets | 15,848 | 15,987 | ||
Total assets at fair value | 822,069 | 748,042 | ||
Liabilities at fair value [Abstract] | ||||
Other liabilities | 16,011 | 15,981 | ||
Total liabilities at fair value | 16,011 | 15,981 | ||
Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | ||||
Investment securities available for sale [Abstract] | ||||
U.S. government agency securities | 0 | 0 | ||
Mortgage-backed securities | 0 | 0 | ||
State and municipal securities | 0 | 0 | ||
Agency- backed securities | 0 | 0 | ||
Corporate notes and other | 0 | 0 | ||
Total investment securities available-for-sale | 0 | 0 | ||
Other investments | 8,162 | 8,004 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 8,162 | 8,004 | ||
Liabilities at fair value [Abstract] | ||||
Other liabilities | 0 | 0 | ||
Total liabilities at fair value | 0 | 0 | ||
Other Assets [Member] | ||||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||||
Fair value, January 1 | 8,004 | 6,701 | 6,701 | |
Total net realized (losses) gains included in income | 173 | 92 | ||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 | 0 | 0 | ||
Purchases | 548 | 393 | ||
Issuances | 0 | 0 | ||
Settlements | (563) | 0 | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, March 31 | 8,162 | 7,186 | $ 8,004 | |
Total net realized (losses) gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 | $ 173 | $ 92 | ||
[1] | Amount is net of a valuation allowance of $1.1 million at June 30, 2015 and December 31, 2014 as required by ASC 310-10, "Receivables." |
Fair Value of Financial Instr43
Fair Value of Financial Instruments, 2 (Details) - USD ($) | Jun. 30, 2015 | Dec. 31, 2014 | |
Carrying Amount / Notional Amount [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | $ 33,915,000 | $ 38,676,000 | |
Loans, net | 4,764,782,000 | 4,522,668,000 | |
Mortgage loans held-for-sale | 31,543,000 | 14,039,000 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 5,055,159,000 | 4,876,600,000 | |
Federal Home Loan Bank advances | 445,345,000 | 195,476,000 | |
Subordinated debt and other borrowings | 133,908,000 | 96,158,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 1,603,313,000 | 1,390,593,000 |
Standby letters of credit | [2] | 70,825,000 | 65,955,000 |
Securities held-to-maturity | 33,830,072 | 38,788,870 | |
Valuation allowance of impaired loans | 1,100,000 | 1,200,000 | |
Commitments to Extend Credit [Member] | |||
Off-balance sheet instruments [Abstract] | |||
Off-balance sheet commitments | 1,100,000 | 1,400,000 | |
Quoted Market Prices in an Active Market (Level 1) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 0 | 0 | |
Loans, net | 0 | 0 | |
Mortgage loans held-for-sale | 0 | 0 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 0 | 0 | |
Federal Home Loan Bank advances | 0 | 0 | |
Subordinated debt and other borrowings | 0 | 0 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 0 | 0 |
Standby letters of credit | [2] | 0 | 0 |
Models with Significant Observable Market Parameters (Level 2) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 33,830,000 | 38,789,000 | |
Loans, net | 0 | 0 | |
Mortgage loans held-for-sale | 32,000,000 | 14,322,000 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 0 | 0 | |
Federal Home Loan Bank advances | 0 | 0 | |
Subordinated debt and other borrowings | 0 | 0 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 0 | 0 |
Standby letters of credit | [2] | 0 | 0 |
Models with Significant Unobservable Market Parameters (Level 3) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 0 | 0 | |
Loans, net | 4,643,457,000 | 4,406,581,000 | |
Mortgage loans held-for-sale | 0 | 0 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 4,748,089,000 | 4,603,915,000 | |
Federal Home Loan Bank advances | 444,327,000 | 195,450,000 | |
Subordinated debt and other borrowings | 117,496,000 | 77,433,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 791,000 | 1,078,000 |
Standby letters of credit | [2] | 313,000 | 293,000 |
Estimate of Fair Value Measurement [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | [3] | 33,830,000 | 38,789,000 |
Loans, net | [3] | 4,643,457,000 | 4,406,581,000 |
Mortgage loans held-for-sale | [3] | 32,000,000 | 14,322,000 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 0 | |
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | [3] | 4,748,089,000 | 4,603,915,000 |
Federal Home Loan Bank advances | [3] | 444,327,000 | 195,450,000 |
Subordinated debt and other borrowings | [3] | 117,496,000 | 77,433,000 |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1],[3] | 791,000 | 1,078,000 |
Standby letters of credit | [2],[3] | $ 313,000 | $ 293,000 |
[1] | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at June 30, 2015 and December 31, 2014, Pinnacle Financial included in other liabilities $0.8 million and $1.1 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. | ||
[2] | At June 30, 2015 and December 31, 2014, the fair value of Pinnacle Financial's standby letters of credit was $313,000 and $293,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. | ||
[3] | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |