Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2016 | May. 05, 2016 | |
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 | 42,045,184 | |
Document Fiscal Year Focus | 2,016 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2016 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and noninterest-bearing due from banks | $ 77,778,562 | $ 75,078,807 |
Interest-bearing due from banks | 304,031,806 | 219,202,464 |
Federal funds sold and other | 767,305 | 26,670,062 |
Cash and cash equivalents | 382,577,673 | 320,951,333 |
Securities available-for-sale, at fair value | 1,017,329,867 | 935,064,745 |
Securities held-to-maturity (fair value of $31,521,474 and $31,585,303 at March 31, 2016 and December 31, 2015, respectively) | 31,089,333 | 31,376,840 |
Consumer mortgage loans held-for-sale | 35,437,491 | 47,930,253 |
Commercial mortgage loans held-for-sale | 10,504,481 | 0 |
Loans | 6,827,929,582 | 6,543,235,381 |
Less allowance for loan losses | (62,239,279) | (65,432,354) |
Loans, net | 6,765,690,303 | 6,477,803,027 |
Premises and equipment, net | 78,771,705 | 77,923,607 |
Equity method investment | 203,007,435 | 88,880,014 |
Accrued interest receivable | 25,168,584 | 21,574,096 |
Goodwill | 431,840,600 | 432,232,255 |
Core deposits and other intangible assets | 9,667,282 | 10,540,497 |
Other real estate owned | 4,687,379 | 5,083,218 |
Other assets | 265,615,499 | 265,183,799 |
Total assets | 9,261,387,632 | 8,714,543,684 |
Deposits: | ||
Noninterest-bearing | 2,026,550,350 | 1,889,865,113 |
Interest-bearing | 1,427,213,569 | 1,389,548,175 |
Savings and money market accounts | 2,958,363,723 | 3,001,950,725 |
Time | 668,084,583 | 690,049,795 |
Total deposits | 7,080,212,225 | 6,971,413,808 |
Securities sold under agreements to repurchase | 62,801,494 | 79,084,298 |
Federal Home Loan Bank advances | 616,289,980 | 300,305,226 |
Subordinated debt and other borrowings | 209,751,241 | 141,605,504 |
Accrued interest payable | 2,540,401 | 2,593,209 |
Other liabilities | 61,012,450 | 63,930,339 |
Total liabilities | 8,032,607,791 | 7,558,932,384 |
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; 41,994,955 shares and 40,906,064 shares issued and outstanding at March 31, 2016 and December 31, 2015, respectively | 41,994,955 | 40,906,064 |
Additional paid-in capital | 884,015,506 | 839,617,050 |
Retained earnings | 300,746,837 | 278,573,408 |
Accumulated other comprehensive income, net of taxes | 2,022,543 | (3,485,222) |
Total stockholders' equity | 1,228,779,841 | 1,155,611,300 |
Total liabilities and stockholders' equity | $ 9,261,387,632 | $ 8,714,543,684 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Securities held-to-maturity, fair value | $ 31,521,474 | $ 31,585,303 |
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) | 41,994,955 | 40,906,064 |
Common stock, shares outstanding (in shares) | 41,994,955 | 40,906,064 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Interest income: | ||
Loans, including fees | $ 74,404,204 | $ 49,466,706 |
Securities: | ||
Taxable | 4,466,834 | 3,444,599 |
Tax-exempt | 1,493,757 | 1,483,307 |
Federal funds sold and other | 609,587 | 283,978 |
Total interest income | 80,974,382 | 54,678,590 |
Interest expense: | ||
Deposits | 4,915,563 | 2,430,742 |
Securities sold under agreements to repurchase | 48,050 | 30,917 |
Federal Home Loan Bank advances and other borrowings | 2,108,092 | 948,552 |
Total interest expense | 7,071,705 | 3,410,211 |
Net interest income | 73,902,677 | 51,268,379 |
Provision for loan losses | 3,893,570 | 315,091 |
Net interest income after provision for loan losses | 70,009,107 | 50,953,288 |
Noninterest income: | ||
Service charges on deposit accounts | 3,442,684 | 2,912,549 |
Investment services | 2,345,600 | 2,259,440 |
Insurance sales commissions | 1,705,859 | 1,512,618 |
Gain on mortgage loans sold, net | 3,567,551 | 1,941,254 |
Gain on sale of investment securities, net | 0 | 6,003 |
Trust fees | 1,580,612 | 1,311,985 |
Income from equity method investment | 5,147,524 | 3,201,302 |
Other noninterest income | 8,065,880 | 5,348,151 |
Total noninterest income | 25,855,710 | 18,493,302 |
Noninterest expense: | ||
Salaries and employee benefits | 32,516,856 | 23,530,860 |
Equipment and occupancy | 8,130,464 | 6,046,223 |
Other real estate expense | 112,272 | 395,288 |
Marketing and other business development | 1,263,361 | 959,750 |
Postage and supplies | 957,087 | 649,251 |
Amortization of intangibles | 873,215 | 227,414 |
Merger related expenses | 1,829,472 | 0 |
Other noninterest expense | 8,380,969 | 5,022,236 |
Total noninterest expense | 54,063,696 | 36,831,022 |
Income before income taxes | 41,801,121 | 32,615,568 |
Income tax expense | 13,835,857 | 10,772,857 |
Net income | $ 27,965,264 | $ 21,842,711 |
Per share information: | ||
Basic net income per common share (in dollars per share) | $ 0.70 | $ 0.62 |
Diluted net income per common share (in dollars per share) | $ 0.68 | $ 0.62 |
Weighted average shares outstanding: | ||
Basic (in shares) | 40,082,805 | 35,041,203 |
Diluted (in shares) | 40,847,027 | 35,380,529 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (unaudited) [Abstract] | ||
Net income | $ 27,965,264 | $ 21,842,711 |
Other comprehensive income (loss), net of tax: | ||
Changes in fair value on available-for-sale securities, net of tax | 6,431,468 | 1,936,058 |
Change in fair value of cash flow hedges, net of tax | (923,703) | (552,828) |
Net gain on sale of investment securities reclassified out of comprehensive income into net income, net of tax | 0 | 3,648 |
Total other comprehensive income (loss), net of tax | 5,507,765 | 1,386,878 |
Total comprehensive income | $ 33,473,029 | $ 23,229,589 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Common Stock [Member]Bankers Healthcare Group, LLC [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Bankers Healthcare Group, LLC [Member] | Retained Earnings [Member] | Retained Earnings [Member]Bankers Healthcare Group, LLC [Member] | Accumulated Other Comp. Income (Loss), Net [Member] | Accumulated Other Comp. Income (Loss), Net [Member]Bankers Healthcare Group, LLC [Member] | Total | Bankers Healthcare Group, LLC [Member] |
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 | $ 65,270 | 2,924,061 | 0 | 0 | 2,989,331 | |||||
Exercise of employee common stock options and related tax benefits (in shares) | 65,270 | |||||||||
Common dividends paid | $ 0 | 0 | (4,304,125) | 0 | (4,304,125) | |||||
Issuance of restricted common shares, net of forfeitures | $ 121,877 | (121,877) | 0 | 0 | 0 | |||||
Issuance of restricted common shares, net of forfeitures (in shares) | 121,877 | |||||||||
Restricted shares withheld for taxes and related tax benefit | $ (54,963) | (2,056,229) | 0 | 0 | (2,111,192) | |||||
Restricted shares withheld for taxes and related tax benefit (in shares) | (54,963) | |||||||||
Compensation expense for restricted shares | $ 0 | 1,653,662 | 0 | 0 | 1,653,662 | |||||
Net income | 0 | 0 | 21,842,711 | 0 | 21,842,711 | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | 1,386,878 | 1,386,878 | |||||
Ending Balances at Mar. 31, 2015 | $ 35,864,667 | 563,831,066 | 218,909,667 | 5,545,246 | 824,150,646 | |||||
Balances (in shares) at Mar. 31, 2015 | 35,864,667 | |||||||||
Balances at Dec. 31, 2015 | $ 40,906,064 | 839,617,050 | 278,573,408 | (3,485,222) | 1,155,611,300 | |||||
Balances (in shares) at Dec. 31, 2015 | 40,906,064 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of employee common stock options and related tax benefits | $ 152,949 | 3,699,161 | 0 | 0 | 3,852,110 | |||||
Exercise of employee common stock options and related tax benefits (in shares) | 152,949 | |||||||||
Common dividends paid | $ 0 | 0 | (5,791,835) | 0 | (5,791,835) | |||||
Issuance of restricted common shares, net of forfeitures | $ 127,462 | (127,462) | 0 | 0 | 0 | |||||
Issuance of restricted common shares, net of forfeitures (in shares) | 127,462 | |||||||||
Common stock issued in conjunction with acquisition | $ 860,470 | $ 38,939,530 | $ 0 | $ 0 | $ 39,800,000 | |||||
Common stock issued in conjunction with acquisition (in shares) | 860,470 | |||||||||
Restricted shares withheld for taxes and related tax benefit | $ (51,990) | (741,561) | 0 | 0 | (793,551) | |||||
Restricted shares withheld for taxes and related tax benefit (in shares) | (51,990) | |||||||||
Compensation expense for restricted shares | $ 0 | 2,628,788 | 0 | 0 | 2,628,788 | |||||
Net income | 0 | 0 | 27,965,264 | 0 | 27,965,264 | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | 5,507,765 | 5,507,765 | |||||
Ending Balances at Mar. 31, 2016 | $ 41,994,955 | $ 884,015,506 | $ 300,746,837 | $ 2,022,543 | $ 1,228,779,841 | |||||
Balances (in shares) at Mar. 31, 2016 | 41,994,955 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Mar. 31, 2015 | |
Operating activities: | ||
Net income | $ 27,965,264 | $ 21,842,711 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization/accretion of premium/discount on securities | 1,303,239 | 1,152,427 |
Depreciation and amortization | (428,254) | 2,165,601 |
Provision for loan losses | 3,893,570 | 315,091 |
Gain on mortgage loans sold, net | (3,567,551) | (1,941,254) |
Gain on sale of investment securities | 0 | (6,003) |
Stock-based compensation expense | 2,628,788 | 1,653,662 |
Deferred tax (expense) benefit | 921,718 | 1,046,983 |
(Gains) losses on dispositions of other real estate and other investments | (32,400) | (389,731) |
Gains (losses) from equity method investment | (5,147,524) | (3,201,302) |
Excess tax benefit from stock compensation | (159,168) | (1,348,751) |
Change in other loans held for sale | (10,504,481) | 0 |
Mortgage loans held for sale: | ||
Loans originated | (147,888,687) | (98,711,742) |
Loans sold | 163,949,000 | 95,782,000 |
Increase in other assets | (6,736,913) | (7,631,523) |
Decrease in other liabilities | (2,169,127) | (5,480,950) |
Net cash provided by operating activities | 24,027,474 | 5,247,219 |
Activities in securities available-for-sale: | ||
Purchases | (102,041,878) | (64,826,118) |
Sales | 0 | 216,300 |
Maturities, prepayments and calls | 28,996,005 | 29,890,467 |
Activities in securities held-to-maturity: | ||
Purchases | 0 | (1,035,995) |
Maturities, prepayments and calls | 148,426 | 235,000 |
Increase in loans, net | (289,043,266) | (65,558,107) |
Purchases of software, premises and equipment | (2,849,721) | (1,222,077) |
Increase in equity-method investment | (74,100,000) | (75,000,000) |
Dividends received from equity-method investment | 4,920,103 | 0 |
(Increase) decrease in other investments | (1,918,978) | (122,500) |
Net cash used in investing activities | (435,889,309) | (177,423,030) |
Financing activities: | ||
Net increase in deposits | 109,015,688 | 6,704,511 |
Net decrease in securities sold under agreements to repurchase | (16,282,804) | (25,941,606) |
Advances from Federal Home Loan Bank: | ||
Issuances | 631,000,000 | 455,370,280 |
Payments/maturities | (315,015,246) | (195,385,928) |
Increase (decrease) in other borrowings, net | 67,344,645 | 39,375,000 |
Exercise of common stock options and stock appreciation rights, net of repurchase of restricted shares | 3,058,559 | 878,138 |
Excess tax benefit from stock compensation | 159,168 | 1,348,751 |
Common stock dividends paid | (5,791,835) | (4,304,125) |
Net cash provided by financing activities | 473,488,175 | 278,045,021 |
Net increase in cash and cash equivalents | 61,626,340 | 105,869,210 |
Cash and cash equivalents, beginning of period | 320,951,333 | 187,907,510 |
Cash and cash equivalents, end of period | $ 382,577,673 | $ 293,776,720 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2016 | |
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 For the three months ended March 31, 2016 March 31, 2015 Cash Transactions: Interest paid $ 7,341,784 $ 3,426,798 Income taxes paid, net 10,556,737 8,217,500 Noncash Transactions: Loans charged-off to the allowance for loan losses 9,226,906 2,649,708 Loans foreclosed upon and transferred to other real estate owned - - Loans foreclosed upon and transferred to other assets 1,384,511 1,738,757 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2016 and 2015: Three months ended March 31, 2016 2015 Basic net income per share calculation: Numerator $ 27,965,264 $ 21,842,711 Denominator 40,082,805 35,041,203 Basic net income per share $ 0.70 $ 0.62 Diluted net income per share calculation: Numerator $ 27,965,264 $ 21,842,711 Denominator 40,082,805 35,041,203 Dilutive shares contingently issuable 764,222 339,326 Average diluted common shares outstanding 40,847,027 35,380,529 Diluted net income per share $ 0.68 $ 0.62 Mortgage Servicing Rights — In conjunction with the acquisition of Magna, Pinnacle Bank acquired a residential mortgage servicing portfolio which was recorded at fair value upon acquisition. The residential mortgage servicing portfolio was recorded at $6.4 million as of December 31, 2015, net of related amortization. During the first quarter of 2016, Pinnacle Bank sold the mortgage servicing rights associated with the $830 million Fannie Mae portfolio for $6.8 million, net of associated costs to sell. The purchase agreement related to the sale of these rights includes certain clawback provisions which require Pinnacle Bank to reimburse the acquirer in the event certain conditions are met. Approximately $241,000 was recorded as income in the first quarter of 2016, with the remainder established as a reserve for any potential repurchase obligations. Proposed merger with Avenue Financial Holdings, Inc. (Avenue) — On January 28, 2016, Pinnacle Financial entered into an Agreement and Plan of Merger (the Merger Agreement) by and between Pinnacle Financial and Avenue, a publicly traded bank holding company, pursuant to which Avenue will merge with and into Pinnacle Financial, with Pinnacle Financial continuing as the surviving corporation (the Avenue Merger). The separate existence of Avenue will cease to exist upon the effectiveness of the Avenue Merger. In connection with the execution of the Merger Agreement, Pinnacle Bank and Avenue Bank, Avenue's wholly owned bank subsidiary, also entered into an Agreement and Plan of Merger pursuant to which Avenue Bank will merge with and into Pinnacle Bank simultaneously with the consummation of the Avenue Merger. Pursuant to the terms of the Merger Agreement, upon consummation of the Avenue Merger each holder of Avenue common stock issued and outstanding, subject to certain exceptions, will be eligible to receive 0.36 shares of Pinnacle Financial's common stock and an amount in cash equal to $2.00 for each share of Avenue common stock owned by them at the effective time of the Avenue Merger. As of the date of the Merger Agreement, Avenue had 10,322,055 shares of common stock issued and outstanding (including shares of restricted stock) and 257,639 outstanding stock options, all of which are, or will be, fully vested and exercisable prior to the closing of the Avenue Merger. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Cash will be paid in lieu of any fractional shares of Pinnacle Financial common stock that would otherwise be issued in the Avenue Merger based on the average closing price of Pinnacle Financial's common stock for the ten (10) trading days ending on the business day immediately preceding the closing date of the Avenue Merger. Additionally, any outstanding options to purchase shares of common stock of Avenue that are not vested will be accelerated prior to, but conditioned on the occurrence of, the closing of the Avenue Merger and all options that are not exercised prior to the closing shall be cancelled and the holders of any such options shall receive an amount in cash equal to the product of (x) the excess, if any, of $20.00 over the exercise price of each such option and (y) the number of shares of Avenue common stock subject to each such option. Pinnacle Financial has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the SEC) with respect to the issuance of its common stock in connection with the Avenue Merger. The proposed Avenue Merger is subject to the satisfaction of customary closing conditions, including obtaining approvals from applicable federal and state banking regulators and Avenue's shareholders. Additionally, the Merger Agreement contains certain termination rights that may require Avenue to pay Pinnacle Financial a termination fee of $8,000,000 under certain specified circumstanes, including if Avenue terminates the Merger Agreement to enter into a definitive agreement for a transaction that its board of directors has determined is superior to the Avenue Merger. In addition, upon consummation of the Avenue Merger, Pinnacle Financial will assume Avenue's obligations under its outstanding $20.0 million subordinated notes issued in December 2014 that mature in December 2024. These notes bear interest at a rate of 6.75% per annum until January 1, 2020 and may not be repaid prior to such date. Beginning on January 1, 2020, if not redeemed on such date, these notes will bear interest at a floating rate equal to the three-month LIBOR determined on the determination date of the applicable interest period plus 4.95%. Recently Adopted Accounting Pronouncements — Simplifying the Presentation of Debt Issuance Costs |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2. Acquisitions Investment - Bankers Healthcare Group, LLC. On February 1, 2015, Pinnacle Bank acquired a 30% interest in Bankers Healthcare Group (BHG) for $75 million in cash. On March 1, 2016, Pinnacle Bank and Pinnacle Financial increased their investment in BHG by 19% for a total investment in BHG of 49%. The additional 19% interest was acquired pursuant to a Membership Interest Purchase Agreement dated The 860,470 shares of Pinnacle Financial common stock issued at the closing of the investment were issued in a private placement exempt from registration under Section 4(2) of the Securities Act of 1933, as amended (the Securities Act), and Rule 506 of Regulation D promulgated under the Securities Act. Subsequent to the issuance of the 860,470 shares, Pinnacle Financial filed with the SEC, a registration statement on Form S-3 covering the resale of such shares as a secondary offering to be made on a continuous basis pursuant to Rule 415 of the Securities Act. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At the closing of the investment, Pinnacle Financial, Pinnacle Bank and the other members of BHG entered into an Amended and Restated Limited Liability Company Agreement of BHG that provides for, among other things, the following terms: (i) the inability of any member of BHG to transfer its ownership interest in BHG without the consent of the other members of BHG for five years, other than transfers to family members, trusts or affiliates of the transferring member, in connection with the acquisition of Pinnacle Financial or Pinnacle Bank or as a result of a change in applicable law that forces Pinnacle Financial and/or Pinnacle Bank to divest their ownership interests in BHG; (ii) the inability of the board of management of BHG (of which Pinnacle Financial and Pinnacle Bank shall have the right to designate two of the five members (the Pinnacle Managers) to approve a sale of BHG without the consent of one of the Pinnacle Managers for four years; (iii) co-sale rights for Pinnacle Financial and Pinnacle Bank in the event the other members of BHG decide to sell all or a portion of their ownership interests after the above-described five-year limitation; and (iv) a right of first refusal for BHG and the other members of BHG in the event that Pinnacle Financial and/or Pinnacle Bank decide to sell all or a portion of their ownership interests after the above-described five-year limitation, except in connection with a transfer of their ownership interests to an affiliate or in connection with the acquisition of Pinnacle Financial or Pinnacle Bank. Pinnacle Bank accounts for this investment pursuant to the equity method for unconsolidated subsidiaries and will recognize its interest in BHG's profits and losses in noninterest income with corresponding adjustments to the BHG investment account. Additionally, Pinnacle Bank will not recognize any goodwill or other intangible asset associated with the transaction, however, it will recognize amortization expense associated with certain amounts related to BHG's customer list and data processing capabilities, which are components of the equity method investment. Acquisition - CapitalMark Bank & Trust. On July 31, 2015, Pinnacle Financial consummated its merger with CapitalMark Bank & Trust (CapitalMark). Pursuant to the terms of the Agreement and Plan of Merger dated as of April 7, 2015 by and among Pinnacle Financial, Pinnacle Bank, and CapitalMark (the CapitalMark Merger Agreement), CapitalMark merged with and into Pinnacle Bank, with Pinnacle Bank continuing as the surviving corporation (the CapitalMark Merger). The following summarizes consideration paid and a preliminary allocation of purchase price to net assets acquired (dollars in thousands): Number of Shares Amount Equity consideration: Common stock issued 3,306,184 $ 175,525 Fair value of stock options assumed 30,430 Total equity consideration $ 205,955 Non-equity consideration - Cash 19,675 Total consideration paid $ 225,630 Allocation of total consideration paid: Fair value of net assets assumed including estimated identifiable intangible assets $ 67,432 Goodwill 158,198 $ 225,630 On September 1, 2015, Pinnacle Financial consummated its previously announced acquisition of Magna Bank ("Magna"). Pursuant to the terms of the Agreement and Plan of Merger dated as of April 28, 2015 by and among Pinnacle Financial, Pinnacle Bank and Magna (the Magna Merger Agreement), Magna merged with and into Pinnacle Bank, with Pinnacle Bank continuing as the surviving corporation (the Magna Merger). PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following summarizes consideration paid and a premilinary allocation of purchase price to net assets acquired (dollars in thousands): Number of Shares Amount Equity consideration: Common stock issued 1,371,717 $ 63,538 Total equity consideration $ 63,538 Non-equity consideration Cash paid to redeem common stock $ 19,453 Cash paid to exchange outstanding stock options 847 Total consideration paid $ 83,838 Allocation of total consideration paid: Fair value of net assets assumed including estimated identifiable intangible assets $ 52,371 Goodwill 31,467 $ 83,838 The acquired assets and liabilities, as well as the preliminary adjustments to record the assets and liabilities at their estimated fair values, are presented in the following tables (in thousands): CapitalMark As of July 31, 2015 CapitalMark Historical Cost Basis Preliminary Fair Value Adjustments As Recorded by Pinnacle Financial Assets Cash and cash equivalents $ 28,021 $ - $ 28,021 Investment securities (1) 150,799 (399 ) 150,400 Loans (2) 880,115 (22,600 ) (6) 857,515 Mortgage loans held for sale 1,791 - 1,791 Other real estate owned 1,728 - 1,728 Core deposit intangible (3) - 6,193 6,193 Other assets (6)(7) 37,252 6,566 43,818 Total Assets $ 1,099,706 $ (10,240 ) $ 1,089,466 Liabilities Interest-bearing deposits (4) $ 758,492 $ 891 $ 759,383 Non-interest bearing deposits 193,798 - 193,798 Borrowings (5) 32,874 228 33,102 Other liabilities 35,751 - 35,751 Total Liabilities $ 1,020,915 $ 1,119 $ 1,022,034 Net Assets Acquired $ 78,791 $ (11,359 ) $ 67,432 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Explanation of certain fair value adjustments: (1) The amount represents the adjustment of the book value of CapitalMark's investment securities to their estimated fair value on the date of acquisition. (2) The amount represents the adjustment of the net book value of CapitalMark's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (3) The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base created in the acquisition. (4) The adjustment is necessary because the weighted average interest rate of CapitalMark's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (5) The adjustment is necessary because the weighted average interest rate of CapitalMark's FHLB advances exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (6) During 2016, an additional adjustment of $400,000 to goodwill was made to reduce the value of an acquired investment to zero after determining the investment was worthless. Further a reduction in the loan fair value adjustment was recorded upon the receipt of the final loan mark valuation in the amount of $206,000. (7) The amount represents the deferred tax asset recognized on the fair value adjustment of CapitalMark's acquired assets and assumed liabilities as well as the fair value adjustment on premises and equipment. Magna As of September 1, 2015 Magna Historical Cost Basis Preliminary Fair Value Adjustments As Recorded by Pinnacle Financial Assets Cash and cash equivalents $ 17,832 $ - $ 17,832 Investment securities (1) 60,018 (280 ) 59,738 Loans (2) 453,108 (10,760 ) (8) 442,348 Mortgage loans held for sale 18,886 - 18,886 Other real estate owned (3) 1,471 139 1,610 Core deposit intangible (4) - 3,170 3,170 Other assets (5) 32,974 4,216 37,190 Total Assets $ 584,289 $ (3,515 ) $ 580,774 Liabilities Interest-bearing deposits (6) $ 402,535 $ 1,268 $ 403,803 Non-interest bearing deposits 48,851 - 48,851 Borrowings (7) 46,900 506 47,406 Other liabilities 28,343 - 28,343 Total Liabilities $ 526,629 $ 1,774 $ 528,403 Net Assets Acquired $ 57,660 $ (5,289 ) $ 52,371 Explanation of certain fair value adjustments: (1) The amount represents the adjustment of the book value of Magna's investment securities to their estimated fair value on the date of acquisition. (2) The amount represents the adjustment of the net book value of Magna's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (3) The amount represents the adjustment to the book value of Magna's OREO to fair value on the date of acquisition. (4) The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base created in the acquisition. (5) The amount represents the deferred tax asset recognized on the fair value adjustment of Magna's acquired assets and assumed liabilities as well as the fair value adjustment for the mortgage servicing right and property and equipment. (6) The adjustment is necessary because the weighted average interest rate of Magna's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (7) The adjustment is necessary because the weighted average interest rate of Magna's FHLB advances exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (8) A reduction in the loan fair value adjustment was recorded upon receipt of the final loan mark valuation in the amount of $426,000. |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | Note 3. Equity method investment Upon its initial investment in BHG, Pinnacle Bank accounted for this investment pursuant to the equity method for unconsolidated subsidiaries and recognized its interest in BHG's profits and losses in noninterest income with corresponding adjustments to the BHG investment account. Because BHG has been determined to be a voting interest entity of which Pinnacle Financial and Pinnacle Bank control less than a majority of the board seats following the closing of the additional investment in March 2016, this investment does not require consolidation and will continue to be accounted for pursuant to the equity method of accounting. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The equity method of accounting requires 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 netted within income from equity method investments. At March 31, 2016, Pinnacle Financial has recorded estimated embedded goodwill of $139.1 million and $16.0 million, net of related amortization, for technology, trade name and customer relationship intangibles compared to $50.6 million and $5.1 million, respectively, as of December 31, 2015. Pinnacle has not yet completed the purchase accounting for the subsequent investment in BHG and the estimates of equity embedded goodwill and intangible assets are considered preliminary as of March 31, 2016. During the first quarter of 2016, Pinnacle Financial recorded earnings of $5.5 million, net of approximately $370,000 in intangible amortization expense compared to recorded earnings of $3.6 million, net of approximately $400,000 in intangible amortization expense for the three months ended March 31, 2015. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profit from intercompany transactions are eliminated as a part of consolidation. As part of ongoing business transacted with BHG, Pinnacle Bank purchased loans from BHG totaling $2.2 million during the year ended December 31, 2015. No loans were purchased for the period ended March 31, 2016. A summary of BHG's financial position as of March 31, 2016 and December 31, 2015 and results of operations for the three months ended March 31, 2016 and 2015, were as follows (in thousands): Banker's Healthcare Group ($ in thousands) As of March 31, 2016 December 31, 2015 Assets $ 208,244 220,578 Liabilities 141,445 137,147 Membership interests 66,799 83,431 Total liabilities and membership $ 208,244 220,578 For the three months ended March 31, 2016 March 31, 2015 Revenues $ 31,288 27,045 Net income, pre-tax $ 12,154 14,384 |
Securities
Securities | 3 Months Ended |
Mar. 31, 2016 | |
Securities [Abstract] | |
Securities | PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2016 and December 31, 2015 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2016 Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 130,459 75 1,067 129,467 Mortgage-backed agency securities 657,409 9,693 1,393 665,709 State and municipal securities 157,422 8,358 35 165,745 Asset-backed securities 48,225 - 1,212 47,013 Corporate notes and other 8,733 683 20 9,396 $ 1,002,248 $ 18,809 $ 3,727 $ 1,017,330 Securities held-to-maturity: State and municipal securities $ 31,089 $ 435 $ 3 $ 31,521 $ 31,089 $ 435 $ 3 $ 31,521 December 31, 2015: Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 131,499 3 3,309 128,193 Mortgage-backed agency securities 581,998 5,948 5,030 582,916 State and municipal securities 158,072 7,094 124 165,042 Asset-backed securities 49,598 8 805 48,801 Corporate notes and other 9,541 589 17 10,113 $ 930,708 $ 13,642 9,285 $ 935,065 Securities held-to-maturity: State and municipal securities $ 31,377 $ 257 $ 48 $ 31,586 $ 31,377 $ 257 $ 48 $ 31,586 At March 31, 2016, approximately $828.5 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. At March 31, 2016 repurchase agreements comprised of secured borrowings totaled $62.8 million and were secured by $ 62.8 million of pledged U.S. government agency securities , municipal securities, asset backed securities, and corporate debentures. The fair value of securities pledged to secure repurchase agreements may decline. As the fair value of securities pledged to secure repurchase agreements may decline, the company regularly evaluates its need to pledge additional securities to remain adequately secured. The amortized cost and fair value of debt securities as of March 31, 2016 by contractual maturity are shown below. Actual maturities may differ from contractual maturities 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 March 31, 2016: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 5,392 $ 5,418 $ 1,212 $ 1,214 Due in one year to five years 33,915 36,365 8,629 8,704 Due in five years to ten years 191,294 196,034 12,745 13,014 Due after ten years 66,013 66,791 8,503 8,589 Mortgage-backed securities 657,409 665,709 - - Asset-backed securities 48,225 47,013 - - $ 1,002,248 $ 1,017,330 $ 31,089 $ 31,521 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At March 31, 2016 and December 31, 2015, 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 March 31, 2016 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 16,755 712 41,188 355 57,943 1,067 Mortgage-backed securities 122,091 549 69,670 844 191,761 1,393 State and municipal securities 899 12 4,404 26 5,303 38 Asset-backed securities 32,802 917 14,210 295 47,012 1,212 Corporate notes 1,232 20 - - 1,232 20 Total temporarily-impaired securities $ 173,779 $ 2,210 $ 129,472 $ 1,520 $ 303,251 $ 3,730 At December 31, 2015 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 61,903 1,702 65,538 1,607 127,441 3,309 Mortgage-backed securities 338,230 2,789 103,003 2,241 441,233 5,030 State and municipal securities 6,509 38 6,135 134 12,644 172 Asset-backed securities 41,466 798 3,539 7 45,005 805 Corporate notes 2,554 17 - - 2,554 17 Total temporarily-impaired securities $ 450,662 $ 5,344 $ 178,215 $ 3,989 $ 628,877 $ 9,333 The applicable dates for determining when securities are in an unrealized loss position are March 31, 2016 and December 31, 2015. 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 March 31, 2016 and December 31, 2015, but is in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the tables above, at March 31, 2016, Pinnacle Financial had approximately $3.7 million in unrealized losses on $303.3 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 March 31, 2016, 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 March 31, 2016. 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. 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. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 5. 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, and 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 March 31, 2016, approximately 74.55% 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. Included in the coverage are independent loan reviews of 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. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total March 31, 2016 Accruing loans Pass $ 2,285,128 $ 1,013,661 $ 746,663 $ 2,314,663 $ 242,170 $ 6,602,285 Special Mention 15,494 2,789 2,537 39,791 106 60,717 Substandard (1) 34,518 12,250 7,686 57,939 61 112,454 2,335,140 1,028,700 756,886 2,412,393 242,337 6,775,456 Impaired loans Nonaccrual loans (2) Substandard-nonaccrual 5,356 10,178 7,193 15,959 3,742 42,428 Doubtful-nonaccrual 2 2 - 92 - 96 Total nonaccrual loans 5,358 10,180 7,193 16,051 3,742 42,524 Troubled debt restructurings (3) Pass 222 404 - 292 27 945 Special Mention - 247 - - - 247 Substandard - 2,838 - 5,920 - 8,758 Total troubled debt restructurings 222 3,489 - 6,212 27 9,950 Total impaired loans 5,580 13,669 7,193 22,263 3,769 52,474 Total loans $ 2,340,720 $ 1,042,369 $ 764,079 $ 2,434,656 $ 246,106 $ 6,827,930 December 31, 2015 Accruing loans Pass $ 2,217,639 $ 1,020,239 $ 732,662 $ 2,143,006 $ 239,874 $ 6,353,420 Special Mention 18,162 1,894 1,133 26,037 118 47,344 Substandard (1) 33,638 11,346 6,295 53,671 74 105,024 Total 2,269,439 1,033,479 740,090 2,222,714 240,066 6,505,788 Impaired loans Nonaccrual loans (2) Substandard-nonaccrual 5,819 9,344 7,607 1,591 4,902 29,263 Doubtful-nonaccrual 2 2 - 92 - 96 Total nonaccrual loans 5,821 9,346 7,607 1,683 4,902 29,359 Troubled debt restructurings (3) Pass 223 409 - 553 28 1,213 Special Mention - 422 - - - 422 Substandard - 2,861 - 3,592 - 6,453 Total troubled debt restructurings 223 3,692 - 4,145 28 8,088 Total impaired loans 6,044 13,038 7,607 5,828 4,930 37,447 Total loans $ 2,275,483 $ 1,046,517 $ 747,697 $ 2,228,542 $ 244,996 $ 6,543,235 (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 $112.5 million at March 31, 2016, compared to $105.0 million at December 31, 2015. (2) Included in nonaccrual loans at March 31, 2016 and December 31, 2015 are $10.8 million and $12.1 million, respectively, in purchase credit impaired loans acquired with deteriorated credit quality. (3) Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table details the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at March 31, 2016 and December 31, 2015 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 March 31, 2016 For the three months ended March 31, 2016 Recorded investment Unpaid principal balance (1) Related allowance (2) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 3,826 $ 4,491 $ - $ 3,854 $ - Consumer real estate – mortgage 4,431 4,916 - 4,462 - Construction and land development 7,122 7,526 - 7,320 31 Commercial and industrial 14,747 17,252 - 15,451 - Consumer and other 385 409 - 386 - Total $ 30,511 $ 34,594 $ - $ 31,473 $ 31 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,532 $ 1,536 $ 197 $ 1,548 $ - Consumer real estate – mortgage 5,749 5,665 529 5,815 - Construction and land development 71 68 256 74 - Commercial and industrial 1,304 1,294 1,056 1,128 - Consumer and other 3,357 3,878 236 3,702 - Total $ 12,013 $ 12,441 $ 2,274 $ 12,267 $ - Total nonaccrual loans $ 42,524 $ 47,035 $ 2,274 $ 43,740 $ 31 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At December 31, 2015 For the year ended December 31, 2015 Recorded investment Unpaid principal balance (1) Related allowance (2) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 4,411 $ 5,659 $ - $ 2,253 $ - Consumer real estate – mortgage 5,596 6,242 - 3,067 - Construction and land development 7,531 7,883 - 4,317 308 Commercial and industrial 1,420 3,151 - 1,527 - Consumer and other - - - - - Total $ 18,958 $ 22,935 $ - $ 11,164 $ 308 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,410 $ 1,661 $ 20 $ 1,466 $ - Consumer real estate – mortgage 3,750 4,098 616 3,815 - Construction and land development 76 125 12 87 - Commercial and industrial 263 281 19 168 - Consumer and other 4,902 5,341 3,002 4,913 - Total $ 10,401 $ 11,506 $ 3,669 $ 10,449 $ - Total nonaccrual loans $ 29,359 $ 34,441 $ 3,669 $ 21,613 $ 308 (1) Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. (2) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality The following table provides a rollforward of purchase credit impaired loans from December 31, 2015 through March 31, 2016 (in thousands): Gross Contractual Receivable Accretable Yield Nonaccretable Yield Carrying Value December 31, 2015 $ 16,274 $ - $ (4,143 ) $ 12,131 Year-to-date settlements (1,484 ) - 154 (1,330 ) Additional fundings 54 - - 54 March 31, 2016 $ 14,855 $ - $ (3,989 ) $ 10,855 These loans have been deemed to be collateral dependent and as such, no accretable yield has been recorded for these loans. At the date of acquisition, the Day 1 Fair Value represents the carrying value. The carrying value is adjusted for additional draws, pursuant to contractual arrangements, offset by loan paydowns. Year-to-date settlements include both loans that were charged-off as well as loans that were paid off, typically as a result of refinancings at other institutions. 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 both March 31, 2016 and December 31, 2015, there were $10.0 million and $8.1 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. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The Three months ended March 31, 2016 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 2,333 1,536 Consumer and other - - - 1 $ 2,333 $ 1,536 2015 Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 434 337 Consumer and other - - - 1 $ 434 $ 337 During the three months ended March 31, 2016 and 2015, 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 by loan classification and segment at March 31, 2016 and December 31, 2015, allocated between accruing and nonaccrual status (in thousands): March 31, 2016 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 $ 4,509 $ - $ 4,509 $ 4,545 $ 1,090,617 $ 1,099,671 All other 296 - 296 813 1,239,940 1,241,049 Consumer real estate – mortgage 2,432 16 2,448 10,180 1,029,741 1,042,369 Construction and land development 2,220 770 2,990 7,193 753,896 764,079 Commercial and industrial 2,347 3,225 5,572 16,051 2,413,033 2,434,656 Consumer and other 5,704 544 6,248 3,742 236,116 246,106 $ 17,508 $ 4,555 $ 22,063 $ 42,524 $ 6,763,343 $ 6,827,930 December 31, 2015 Commercial real estate: Owner-occupied $ - $ - $ - $ 5,103 $ 1,078,394 $ 1,083,497 All other - - - 718 1,191,268 1,191,986 Consumer real estate – mortgage 6,380 1,396 7,776 9,346 1,029,395 1,046,517 Construction and land development 309 - 309 7,607 739,781 747,697 Commercial and industrial 4,798 - 4,798 1,683 2,222,061 2,228,542 Consumer and other 6,721 373 7,094 4,902 233,000 244,996 $ 18,208 $ 1,769 $ 19,977 $ 29,359 $ 6,493,899 $ 6,543,235 (1) Approximately $26.3 million and $19.0 million of nonaccrual loans as of March 31, 2016 and December 31, 2015, respectively, were performing pursuant to their contractual terms at those dates. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Commercial real estate –mortgage $ 13,306 $ 15,452 $ 197 $ 20 $ 48 $ 41 $ 13,551 $ 15,513 Consumer real estate – mortgage 5,880 6,109 529 616 760 495 7,169 7,220 Construction and land development 3,686 2,891 256 12 - - 3,942 2,903 Commercial and industrial 21,735 22,669 1,056 19 1,353 955 24,144 23,643 Consumer and other 11,616 12,609 236 3,002 6 5 11,858 15,616 Unallocated - - - - - - 1,575 537 $ 56,223 $ 59,730 $ 2,274 $ 3,669 $ 2,167 $ 1,496 $ 62,239 $ 65,432 (1) Troubled debt restructurings of $10.0 million and $8.1 million as of both March 31, 2016 and December 31, 2015, 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, 2014 to December 31, 2015 to March 31, 2016 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, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Charged-off loans (384 ) (365 ) (190 ) (2,207 ) (18,002 ) - (21,148 ) Recovery of previously charged-off loans 85 874 1,479 1,730 5,865 - 10,033 Provision for loan losses (6,390 ) 1,287 (4,110 ) (5,047 ) 26,183 (2,735 ) 9,188 Balance at December 31, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 537 $ 65,432 Collectively evaluated for impairment $ 15,452 $ 6,109 $ 2,891 $ 22,669 $ 12,609 $ 59,730 Individually evaluated for impairment 61 1,111 12 974 3,007 5,165 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 65,432 Loans: Collectively evaluated for impairment $ 2,269,439 $ 1,033,479 $ 740,090 $ 2,222,714 $ 240,066 $ 6,505,788 Individually evaluated for impairment 2,420 8,986 3,689 5,288 4,930 25,313 Loans acquired with deteriorated credit quality 3,624 4,052 3,918 540 - 12,134 Balance at December 31, 2015 $ 2,275,483 $ 1,046,517 $ 747,697 $ 2,228,542 $ 244,996 $ 6,543,235 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 537 $ 65,432 Charged-off loans - (199 ) - (1,624 ) (7,404 ) - (9,227 ) Recovery of previously charged-off loans 58 85 25 1,433 540 - 2,141 Provision for loan losses (2,020 ) 63 1,014 692 3,106 1,038 3,893 Balance at March 31, 2016 $ 13,551 $ 7,169 $ 3,942 $ 24,144 $ 11,858 $ 1,575 $ 62,239 Collectively evaluated for impairment $ 13,306 $ 5,880 $ 3,686 $ 21,735 $ 11,616 $ 56,223 Individually evaluated for impairment 245 1,289 256 2,409 242 4,441 Loans acquired with deteriorated credit quality - - - - - - Balance at March 31, 2016 $ 13,551 $ 7,169 $ 3,942 $ 24,144 $ 11,858 $ 62,239 Loans: Collectively evaluated for impairment $ 2,335,140 $ 1,028,700 $ 756,886 $ 2,412,393 $ 242,337 $ 6,775,456 Individually evaluated for impairment 3,025 10,353 3,642 21,215 3,384 41,619 Loans acquired with deteriorated credit quality 2,555 3,316 3,551 1,048 385 10,855 Balance at March 31, 2016 $ 2,340,720 $ 1,042,369 $ 764,079 $ 2,434,656 $ 246,106 $ 6,827,930 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 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. The allowance for loan losses for purchased loans is calculated similarly to the method utilized for legacy Pinnacle Bank loans. Pinnacle Financial's accounting policy is to compare the computed allowance for loan losses for purchased loans to any remaining fair value adjustment. If the computed allowance is greater than the remaining fair value adjustment, the excess is added to the allowance for loan losses by a charge to the provision for loan losses. 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, 2016 with the comparative exposures for December 31, 2015 (in thousands): at March 31, 2016 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2015 Lessors of nonresidential buildings $ 874,814 $ 232,748 $ 1,107,562 $ 1,078,211 Lessors of residential buildings 398,569 173,805 572,374 500,266 At March 31, 2016, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $10.5 million to current directors, executive officers, and their related entities, of which $7.4 million had been drawn upon. At December 31, 2015, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $14.5 million to directors, executive officers, and their related entities, of which approximately $11.4 million had been drawn upon. None of these loans to directors, executive officers, and their related entities were impaired at March 31, 2016 or December 31, 2015. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Residential Lending At March 31, 2016, Pinnacle Financial had approximately $35.4 million of mortgage loans held-for-sale compared to approximately $47.9 million at December 31, 2015. Total loan volumes sold during the three months ended March 31, 2016 were approximately $163.9 million compared to approximately $95.8 million for the three months ended ended March 31, 2015. During the three months ended March 31, 2016, Pinnacle Financial recognized $3.6 million in gains on the sale of these loans, net of commissions paid, compared to $1.9 million during the three months ended March 31, 2015. 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 | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6. Income Taxes ASC 740, Income Taxes A reconciliation of the beginning and ending unrecognized tax benefit related to uncertain tax positions related to State income tax filings is as follows (in thousands): Three months ended March 31, 2016 2015 Beginning of period $ 196 $ 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 March 31, $ 196 $ 391 Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The total amount of interest and penalties recorded in the income statement for the three months ended March 31, 2015 was $9,600. No interest and penalties were recorded for the three months ended March 31, 2016. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Pinnacle Financial's effective tax rate for the three months ended March 31, 2016 was 33.1% compared to 33.0% for the three months ended March 31, 2015. The difference between the effective tax rate and the Federal and State income tax statutory rate of 39.23% is primarily attributable to our investments in bank qualified municipal securities, investments in low-rate housing loans that qualify for Tennessee state excise tax credits and bank-owned life insurance, offset in part by meals and entertainment, a portion of which is non-deductible. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Note 7. 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 March 31, 2016, these commitments amounted to $2.5 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 March 31, 2016, these commitments amounted to $100.9 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 each of March 31, 2016 and December 31, 2015, Pinnacle Financial had accrued $1.4 million 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 March 31, 2016 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 | 3 Months Ended |
Mar. 31, 2016 | |
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |
Stock Options, Stock Appreciation Rights and Restricted Shares | Note 8. Stock Options, Stock Appreciation Rights and Restricted Shares As described more fully in the Annual Report on Form 10-K, as of March 31, 2016, Pinnacle Financial has one equity incentive plan under which it is able to grant awards, the 2014 Equity Incentive Plan (the "2014 Plan") and has assumed the stock option plan (the CapitalMark Option Plan) of CapitalMark in connection with the CapitalMark Merger. In addition, awards previously granted remain outstanding under equity plans previously adopted by Pinnacle Financial's Board of Directors or assumed in connection with acquisitions of Mid-America Bancshares, Inc. and Cavalry Bancorp, Inc. No new awards may be granted under these other plans or the CapitalMark Option Plan. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Total shares available for issuance under the 2014 Plan were approximately 918,080 shares as of March 31, 2016, inclusive of shares returned to plan reserves during the three months ended March 31, 2016. The 2014 Plan also permits Pinnacle Financial to reissue awards currently outstanding that are subsequently forfeited, settled in cash or expired unexercised and returned to the 2014 Plan. Common Stock Options and Stock Appreciation Rights As of March 31, 2016, there were 1,096,171 stock options and 2,481 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 three months ended March 31, 2016 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, 2015 1,251,601 $ 21.23 2.54 $ 37,714 (1) Granted - Exercised (152,949 ) Stock appreciation rights exercised - Forfeited - Outstanding at March 31, 2016 1,098,652 $ 21.02 2.58 $ 30,433 (2) Options exercisable at March 31, 2016 1,098,652 $ 21.02 2.58 $ 30,433 (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 $51.36 per common share at December 31, 2015 for the 1,251,601 options and stock appreciation rights that were in-the-money at December 31, 2015. (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 $49.06 per common share at March 31, 2016 for the 1,098,652 options and stock appreciation rights that were in-the-money at March 31, 2016. Compensation costs related to unvested stock options granted under Pinnacle Financial's equity incentive plan had been fully recognized and all outstanding option awards are fully vested. 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 March 31, 2016 under this plan. A summary of activity for unvested restricted share awards for the three months ended March 31, 2016 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2015 866,314 $ 31.39 Shares awarded 91,033 Conversion of restricted share units to restricted share awards 43,694 Restrictions lapsed and shares released to associates/directors (189,843 ) Shares forfeited (1) (7,265 ) Unvested at March 31, 2016 803,933 $ 33.15 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 months ended March 31, 2016, Pinnacle Financial recognized approximately $1.9 million in compensation costs attributable to restricted share awards, compared to $1.4 million for the three months ended March 31, 2015. Restricted Share Units Pinnacle Financial grants restricted share units to the senior executive officers and other members of the Leadership Team annually. The senior executive officers' restricted share unit award typically includes a range of shares that may be earned from the target level of performance to the maximum level of performance. The Leadership Team awards are granted at the target level of performance. Restricted share units awarded prior to 2015 will convert to a number of restricted share awards based on the achievement of certain performance metrics for each of the fiscal years to which the award relates, with the restrictions on the restricted shares issued in settlement of the restricted share units lapsing if Pinnacle Bank achieves certain soundness levels in subsequent years. Beginning in 2015, the awards will be settled in shares of freely tradeable common stock of Pinnacle Financial if the one year performance metrics and subsequent one-year service period requirements are met and subsequent soundness targets are achieved. The performance metrics for each of the performance periods is established concurrently with the award of the restricted share unit grants by the Human Resources Compensation Committee. The awards may be issued with a post-vest holding period, as shown below. 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 prescribed year. These restricted share units are being expensed based on the requisite service period of the underlying tranche 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. The expense is 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. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table details the restricted share unit awards outstanding at March 31, 2016: Units Awarded Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Holding period per tranche (in years) Shares settled into RSAs as of period end (2) 2016 (1) 73,474-110,223 26,683 2016 2 3 N/A 2017 2 2 N/A 2018 2 1 N/A 2015 (2) 58,200-101,850 28,378 2015 2 3 N/A 2016 2 2 N/A 2017 2 1 N/A 2014 (3) 58,404-102,209 29,087 2014 5 21,856 2014 4 21,856 2015 4 21,847 2015 3 21,847 2016 3 2016 2 (1) The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. (2) Restricted stock unit awards granted in 2016 and 2015 will be earned and settled in shares of Pinnacle Financial common stock. (3) Forfeiture restrictions on one half of the units previously settled with the issuance of restricted shares will lapse commensurate with the filing of Pinnacle Financial's Form 10-K for the year ended December 31, 2017 while the restrictions on the other one half of the shares will lapse with the filing of Pinnacle Financial's Form 10-K for the year ended December 31, 2018, in each case if Pinnacle Bank achieves the soundness targets applicable to such shares as of fiscal year end dates. Stock compensation expense related to restricted stock units totaled $771,000 and $298,000 for the three months ended March 31, 2016 and 2015, respectively. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 9. 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 three months ended March 31, 2016, Pinnacle Bank paid $6.4 million in dividends to Pinnacle Financial. As of March 31, 2016, Pinnacle Bank could pay approximately $146.9 million of additional dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. Pinnacle Financial increased its quarterly dividend to $0.14 beginning in the first quarter of 2016. 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. Pinnacle Financial and Pinnacle Bank are subject to various regulatory capital requirements administered by federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory, and possibly additional discretionary actions, by regulators that, if undertaken, could have a direct material effect on the financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, Pinnacle Financial and Pinnacle Bank must meet specific guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance sheet items as calculated under regulatory accounting practices. The minimum capital level requirements applicable to bank holding companies and banks 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 capital level requirements 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 required ratios once the capital conservation buffer is fully phased in: PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) (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%. As of January 1, 2016, compliance with the capital conservation buffer is determined by increasing the capital ratio minimum by 0.625% for the capital ratio with the least spread between regulatory minimum and calculated ratios. The buffer will increase each year until fully implemented in January 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. 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% Under current capital level requirements, 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. Common equity Tier 1 capital generally consists 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 current capital level requirements allow 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 March 31, 2016, 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): PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At March 31, 2016 Total capital to risk weighted assets: Pinnacle Financial $ 918,456 11.1 % $ 664,333 8.0 % $ 830,416 10.0 % Pinnacle Bank $ 882,941 10.7 % $ 663,466 8.0 % $ 829,333 10.0 % Tier I capital to risk weighted assets: Pinnacle Financial $ 726,580 8.7 % $ 498,250 6.0 % $ 664,333 8.0 % Pinnacle Bank $ 691,065 8.3 % $ 497,600 6.0 % $ 663,466 8.0 % Common equity Tier I capital to risk weighted assets Pinnacle Financial $ 646,458 7.8 % $ 373,687 4.5 % $ 539,771 6.5 % Pinnacle Bank $ 690,942 8.3 % $ 373,200 4.5 % $ 539,066 6.5 % Tier I capital to average assets (*): Pinnacle Financial $ 726,580 8.8 % $ 330,435 4.0 % $ 413,043 NA Pinnacle Bank $ 691,065 8.4 % $ 330,244 4.0 % $ 412,805 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 10. 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 March 31, 2016 and December 31, 2015 is included in the following table (in thousands): March 31, 2016 December 31, 2015 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 470,055 $ 28,356 $ 396,112 $ 16,130 Pay variable / receive fixed swaps 470,055 (28,716 ) 396,112 (16,329 ) Total $ 940,110 $ (360 ) $ 792,224 $ (199 ) PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Hedge derivatives Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. March 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term (1) Asset/ (Liabilities) Unrealized Loss in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain in Accumulated Other Comprehensive Income Interest Rate Swap $ 33,000 3 month LIBOR 2.265 % April 2016- April 2020 $ (1,595 ) $ (969 ) $ (784 ) $ (476 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016- April 2022 (2,766 ) (1,681 ) (1,478 ) (898 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016- Oct. 2020 (1,837 ) (1,116 ) (908 ) (552 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017- Oct. 2021 (2,067 ) (1,256 ) (1,112 ) (676 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018- July 2022 (2,159 ) (1,312 ) (1,170 ) (711 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018- Oct. 2022 (2,134 ) (1,297 ) (1,158 ) (704 ) $ 200,000 $ (12,558 ) $ (7,631 ) $ (6,610 ) $ (4,017 ) (1) No cash will be exchanged prior to the beginning of the term. Pinnacle Financial has seven 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. March 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term (2) Asset/ (Liabilities) Unrealized Gain in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain in Accumulated Other Comprehensive Income Interest Rate Swap $ 27,500 2.090 % 1 month LIBOR July 2014 - July 2021 $ 1,321 $ 803 $ 663 $ 403 Interest Rate Swap 25,000 2.270 % 1 month LIBOR July 2014 - July 2022 1,826 1,110 968 588 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 2,393 1,454 1,320 802 Interest Rate Swap 30,000 2.500 % 1 month LIBOR July 2014 - July 2024 2,421 1,471 1,333 810 Interest Rate Swap 15,000 1.048 % 1 month LIBOR August 2015 - August 2018 114 69 (46 ) (28 ) Interest Rate Swap 15,000 1.281 % 1 month LIBOR August 2015 - August 2019 222 135 (34 ) (21 ) Interest Rate Swap 15,000 1.470 % 1 month LIBOR August 2015 - August 2020 329 200 (14 ) (9 ) $ 155,000 $ 8,626 $ 5,242 $ 4,190 $ 2,545 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 11. 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, and 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 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Other investments – Included in other investments are certain investments recorded at fair value primarily in certain nonpublic private equity funds. The valuation of nonpublic private equity investments requires management judgment due to the absence of observable quoted market prices, inherent lack of liquidity and the long-term nature of such assets. These investments are valued initially based upon transaction price. The carrying values of other investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy as these funds are not widely traded and the underlying investments of such funds are often privately-held and/or start-up companies for which market values are not readily available. Other assets Collateral dependent nonaccrual loans Other real estate owned – Liabilities Other liabilities – PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following tables present financial instruments measured at fair value on a recurring basis as of March 31, 2016 and December 31, 2015, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): March 31, 2016 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. treasury securities $ - $ - $ - $ - U.S. government agency securities 129,467 - 129,467 - Mortgage-backed securities 665,709 - 665,709 - State and municipal securities 165,745 - 165,745 - Agency-backed securities 47,013 - 47,013 - Corporate notes and other 9,396 - 9,396 - Total investment securities available-for-sale $ 1,017,330 $ - $ 1,017,330 $ - Other investments 10,128 - - 10,128 Other assets 27,072 - 27,072 - Total assets at fair value $ 1,054,530 $ - $ 1,044,402 $ 10,128 Other liabilities $ 29,205 $ - $ 29,205 $ - Total liabilities at fair value $ 29,205 $ - $ 29,205 $ - December 31, 2015 Investment securities available-for-sale: U.S. treasury securities $ - $ - $ - $ - U.S. government agency securities 128,193 - 128,193 - Mortgage-backed securities 582,916 - 582,916 - State and municipal securities 165,042 - 165,042 - Agency-backed securities 48,801 - 48,801 - Corporate notes and other 10,113 - 10,113 - Total investment securities available-for-sale 935,065 - 935,065 - Other investments 9,764 - - 9,764 Other assets 15,147 - 15,147 - Total assets at fair value $ 959,976 $ - $ 950,212 $ 9,764 Other liabilities $ 16,568 $ - $ 16,568 $ - Total liabilities at fair value $ 16,568 $ - $ 16,568 $ - The following table presents assets measured at fair value on a nonrecurring basis as of March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 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 $ 4,687 $ - $ - $ 4,687 $ (32 ) Collateral dependent nonaccrual loans, net (1) 30,511 - - 30,511 (1,877 ) Total $ 35,198 $ - $ - $ 35,198 $ (1,909 ) December 31, 2015 Other real estate owned $ 5,083 $ - $ - $ 5,083 $ (41 ) Collateral dependent nonaccrual loans, net (1) 18,598 - - 18,598 (2,637 ) Total $ 23,681 $ - $ - $ 23,681 $ (2,678 ) (1) Amount is net of a valuation allowance of $2.3 million at March 31, 2016 and $3.7 million at December 31, 2015 as required by ASC 310-10, "Receivables." PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 three months ended March 31, 2016, there were no transfers between Levels 1, 2 or 3. The table below includes a rollforward of the balance sheet amounts for the three months ended March 31, 2016 (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 three months ended March 31, 2016 2015 Other assets Other liabilities Other assets Other liabilities Fair value, January 1 $ 9,764 $ - $ 8,004 $ - Total realized gains (losses) included in income 177 - 95 - Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period end - - - - Purchases 325 - 121 - Issuances - - - - Settlements (138 ) - (470 ) - Transfers out of Level 3 - - - - Fair value, March 31 10,128 - 7,750 - The amount of gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held at the reporting date $ 177 $ - $ 95 $ - 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 March 31, 2016 and December 31, 2015. 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 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 estimated using discounted cash flow models or based on the fair value of the underlying collateral. For other loans, fair values are estimated using discounted cash flow models, using current market interest rates offered for loans with similar terms to borrowers of similar credit quality. The values derived from the discounted cash flow approach for each of the above portfolios are then further discounted to incorporate credit risk to determine the exit price. 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 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at March 31, 2016 and December 31, 2015. 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 (dollars in thousands). March 31, 2016 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 $ 31,089 $ 31,521 $ - $ 31,521 $ - Loans, net 6,765,690 6,678,330 - - 6,678,330 Mortgage loans held-for-sale 35,437 36,188 - 36,188 - Loans held-for-sale 10,504 10,722 - 10,722 - Financial liabilities: Deposits and securities sold under agreements to repurchase 7,143,014 6,770,220 - - 6,770,220 Federal Home Loan Bank advances 616,290 616,636 - - 616,636 Subordinated debt and other borrowings 210,708 189,239 - - 189,239 Off-balance sheet instruments: Commitments to extend credit (2) 2,529,273 886 - - 886 Standby letters of credit (3) 100,940 451 - - 451 December 31, 2015 Financial assets: Securities held-to-maturity $ 31,377 $ 31,586 $ - $ 31,586 $ - Loans, net 6,477,803 6,379,153 - - 6,379,153 Mortgage loans held for sale 47,930 48,365 - 48,365 - Financial liabilities: Deposits and securities sold under agreements to repurchase 7,050,498 6,562,509 - - 6,562,509 Federal Home Loan Bank advances 300,305 299,214 - - 299,214 Subordinated debt and other borrowings 142,476 131,494 - - 131,494 Off-balance sheet instruments: Commitments to extend credit (2) 2,218,784 1,017 - - 1,017 Standby letters of credit (3) 93,534 354 - - 354 (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 March 31, 2016 and December 31, 2015, Pinnacle Financial included in other liabilities $0.9 million and $1.0 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At March 31, 2016 and December 31, 2015, the fair value of Pinnacle Financial's standby letters of credit was $451,000 and $354,000, 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. |
Other borrowings
Other borrowings | 3 Months Ended |
Mar. 31, 2016 | |
Other borrowings [Abstract] | |
Other borrowings | PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Note 12. Other borrowings On March 10, 2016, Pinnacle Bank completed the issuance of an additional $70.0 million aggregate principal amount of its 4.875% Fixed-to-Floating Rate Subordinated Notes due 2025 (the Notes) in a private placement transaction to accredited institutional investors. The Notes were priced at 99.023% of the principal amount per note, for an effective interest rate of 5.125%. 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 on March 10, 2016 yielded net proceeds of approximately $68.3 million after deducting the placement agents' fees and estimated expenses payable by Pinnacle Bank. The subordinated debt evidenced by the Notes is recorded net of associated financing fees in accordance with ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs On March 29, 2016, Pinnacle Financial entered into a revolving credit facility with a bank for borrowings of up to $75 million under a loan agreement Pinnacle Financial entered into with the bank (the Loan Agreement). Borrowings under the revolving credit facility are anticipated to be used to fund the cash portion of the purchase price and the transaction costs associated with acquisitions made by Pinnacle Financial from time to time, including the proposed acquisition of Avenue, and for general corporate purposes including to fund capital contributions to Pinnacle Bank. Pinnacle Financial's borrowings under the Loan Agreement bear interest at a rate equal to 2.25% plus the greater of (i) zero percent (0%) or (ii) the one-month LIBOR rate quoted by the lender. The Loan Agreement also requires Pinnacle Financial to pay a quarterly fee beginning June 30, 2016 equal to 0.35% per annum on the average daily unused amount of available borroweings. As of March 31, 2016, there were no borrowings under the Loan Agreement. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2016 | |
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 For the three months ended March 31, 2016 March 31, 2015 Cash Transactions: Interest paid $ 7,341,784 $ 3,426,798 Income taxes paid, net 10,556,737 8,217,500 Noncash Transactions: Loans charged-off to the allowance for loan losses 9,226,906 2,649,708 Loans foreclosed upon and transferred to other real estate owned - - Loans foreclosed upon and transferred to other assets 1,384,511 1,738,757 |
Income per Common Share | PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2016 and 2015: Three months ended March 31, 2016 2015 Basic net income per share calculation: Numerator $ 27,965,264 $ 21,842,711 Denominator 40,082,805 35,041,203 Basic net income per share $ 0.70 $ 0.62 Diluted net income per share calculation: Numerator $ 27,965,264 $ 21,842,711 Denominator 40,082,805 35,041,203 Dilutive shares contingently issuable 764,222 339,326 Average diluted common shares outstanding 40,847,027 35,380,529 Diluted net income per share $ 0.68 $ 0.62 |
Mortgage Servicing Rights | Mortgage Servicing Rights — In conjunction with the acquisition of Magna, Pinnacle Bank acquired a residential mortgage servicing portfolio which was recorded at fair value upon acquisition. The residential mortgage servicing portfolio was recorded at $6.4 million as of December 31, 2015, net of related amortization. During the first quarter of 2016, Pinnacle Bank sold the mortgage servicing rights associated with the $830 million Fannie Mae portfolio for $6.8 million, net of associated costs to sell. The purchase agreement related to the sale of these rights includes certain clawback provisions which require Pinnacle Bank to reimburse the acquirer in the event certain conditions are met. Approximately $241,000 was recorded as income in the first quarter of 2016, with the remainder established as a reserve for any potential repurchase obligations. |
Proposed merger with Avenue Financial Holdings, Inc. (Avenue) | Proposed merger with Avenue Financial Holdings, Inc. (Avenue) — On January 28, 2016, Pinnacle Financial entered into an Agreement and Plan of Merger (the Merger Agreement) by and between Pinnacle Financial and Avenue, a publicly traded bank holding company, pursuant to which Avenue will merge with and into Pinnacle Financial, with Pinnacle Financial continuing as the surviving corporation (the Avenue Merger). The separate existence of Avenue will cease to exist upon the effectiveness of the Avenue Merger. In connection with the execution of the Merger Agreement, Pinnacle Bank and Avenue Bank, Avenue's wholly owned bank subsidiary, also entered into an Agreement and Plan of Merger pursuant to which Avenue Bank will merge with and into Pinnacle Bank simultaneously with the consummation of the Avenue Merger. Pursuant to the terms of the Merger Agreement, upon consummation of the Avenue Merger each holder of Avenue common stock issued and outstanding, subject to certain exceptions, will be eligible to receive 0.36 shares of Pinnacle Financial's common stock and an amount in cash equal to $2.00 for each share of Avenue common stock owned by them at the effective time of the Avenue Merger. As of the date of the Merger Agreement, Avenue had 10,322,055 shares of common stock issued and outstanding (including shares of restricted stock) and 257,639 outstanding stock options, all of which are, or will be, fully vested and exercisable prior to the closing of the Avenue Merger. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Cash will be paid in lieu of any fractional shares of Pinnacle Financial common stock that would otherwise be issued in the Avenue Merger based on the average closing price of Pinnacle Financial's common stock for the ten (10) trading days ending on the business day immediately preceding the closing date of the Avenue Merger. Additionally, any outstanding options to purchase shares of common stock of Avenue that are not vested will be accelerated prior to, but conditioned on the occurrence of, the closing of the Avenue Merger and all options that are not exercised prior to the closing shall be cancelled and the holders of any such options shall receive an amount in cash equal to the product of (x) the excess, if any, of $20.00 over the exercise price of each such option and (y) the number of shares of Avenue common stock subject to each such option. Pinnacle Financial has filed a registration statement on Form S-4 with the Securities and Exchange Commission (the SEC) with respect to the issuance of its common stock in connection with the Avenue Merger. The proposed Avenue Merger is subject to the satisfaction of customary closing conditions, including obtaining approvals from applicable federal and state banking regulators and Avenue's shareholders. Additionally, the Merger Agreement contains certain termination rights that may require Avenue to pay Pinnacle Financial a termination fee of $8,000,000 under certain specified circumstances, including if Avenue terminates the Merger Agreement to enter into a definitive agreement for a transaction that its board of directors has determined is superior to the Avenue Merger. In addition, upon consummation of the Avenue Merger, Pinnacle Financial will assume Avenue's obligations under its outstanding $20.0 million subordinated notes issued in December 2014 that mature in December 2024. These notes bear interest at a rate of 6.75% per annum until January 1, 2020 and may not be repaid prior to such date. Beginning on January 1, 2020, if not redeemed on such date, these notes will bear interest at a floating rate equal to the three-month LIBOR determined on the determination date of the applicable interest period plus 4.95%. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — Simplifying the Presentation of Debt Issuance Costs |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Cash Flow Information For the three months ended March 31, 2016 March 31, 2015 Cash Transactions: Interest paid $ 7,341,784 $ 3,426,798 Income taxes paid, net 10,556,737 8,217,500 Noncash Transactions: Loans charged-off to the allowance for loan losses 9,226,906 2,649,708 Loans foreclosed upon and transferred to other real estate owned - - Loans foreclosed upon and transferred to other assets 1,384,511 1,738,757 |
Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2016 and 2015: Three months ended March 31, 2016 2015 Basic net income per share calculation: Numerator $ 27,965,264 $ 21,842,711 Denominator 40,082,805 35,041,203 Basic net income per share $ 0.70 $ 0.62 Diluted net income per share calculation: Numerator $ 27,965,264 $ 21,842,711 Denominator 40,082,805 35,041,203 Dilutive shares contingently issuable 764,222 339,326 Average diluted common shares outstanding 40,847,027 35,380,529 Diluted net income per share $ 0.68 $ 0.62 |
Acquisitions (Tables)
Acquisitions (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
CapitalMark Bank & Trust [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | Acquisition - CapitalMark Bank & Trust. On July 31, 2015, Pinnacle Financial consummated its merger with CapitalMark Bank & Trust (CapitalMark). Pursuant to the terms of the Agreement and Plan of Merger dated as of April 7, 2015 by and among Pinnacle Financial, Pinnacle Bank, and CapitalMark (the CapitalMark Merger Agreement), CapitalMark merged with and into Pinnacle Bank, with Pinnacle Bank continuing as the surviving corporation (the CapitalMark Merger). The following summarizes consideration paid and a preliminary allocation of purchase price to net assets acquired (dollars in thousands): Number of Shares Amount Equity consideration: Common stock issued 3,306,184 $ 175,525 Fair value of stock options assumed 30,430 Total equity consideration $ 205,955 Non-equity consideration - Cash 19,675 Total consideration paid $ 225,630 Allocation of total consideration paid: Fair value of net assets assumed including estimated identifiable intangible assets $ 67,432 Goodwill 158,198 $ 225,630 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | As of July 31, 2015 CapitalMark Historical Cost Basis Preliminary Fair Value Adjustments As Recorded by Pinnacle Financial Assets Cash and cash equivalents $ 28,021 $ - $ 28,021 Investment securities (1) 150,799 (399 ) 150,400 Loans (2) 880,115 (22,600 ) (6) 857,515 Mortgage loans held for sale 1,791 - 1,791 Other real estate owned 1,728 - 1,728 Core deposit intangible (3) - 6,193 6,193 Other assets (6)(7) 37,252 6,566 43,818 Total Assets $ 1,099,706 $ (10,240 ) $ 1,089,466 Liabilities Interest-bearing deposits (4) $ 758,492 $ 891 $ 759,383 Non-interest bearing deposits 193,798 - 193,798 Borrowings (5) 32,874 228 33,102 Other liabilities 35,751 - 35,751 Total Liabilities $ 1,020,915 $ 1,119 $ 1,022,034 Net Assets Acquired $ 78,791 $ (11,359 ) $ 67,432 Explanation of certain fair value adjustments: (1) The amount represents the adjustment of the book value of CapitalMark's investment securities to their estimated fair value on the date of acquisition. (2) The amount represents the adjustment of the net book value of CapitalMark's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (3) The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base created in the acquisition. (4) The adjustment is necessary because the weighted average interest rate of CapitalMark's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (5) The adjustment is necessary because the weighted average interest rate of CapitalMark's FHLB advances exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (6) During 2016, an additional adjustment of $400,000 to goodwill was made to reduce the value of an acquired investment to zero after determining the investment was worthless. Further a reduction in the loan fair value adjustment was recorded upon the receipt of the final loan mark valuation in the amount of $206,000. (7) The amount represents the deferred tax asset recognized on the fair value adjustment of CapitalMark's acquired assets and assumed liabilities as well as the fair value adjustment on premises and equipment. |
Magna Bank [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | Acquisition of Magna Bank. On September 1, 2015, Pinnacle Financial consummated its previously announced acquisition of Magna Bank ("Magna"). Pursuant to the terms of the Agreement and Plan of Merger dated as of April 28, 2015 by and among Pinnacle Financial, Pinnacle Bank and Magna (the Magna Merger Agreement), Magna merged with and into Pinnacle Bank, with Pinnacle Bank continuing as the surviving corporation (the Magna Merger). The following summarizes consideration paid and a premilinary allocation of purchase price to net assets acquired (dollars in thousands): Number of Shares Amount Equity consideration: Common stock issued 1,371,717 $ 63,538 Total equity consideration $ 63,538 Non-equity consideration Cash paid to redeem common stock $ 19,453 Cash paid to exchange outstanding stock options 847 Total consideration paid $ 83,838 Allocation of total consideration paid: Fair value of net assets assumed including estimated identifiable intangible assets $ 52,371 Goodwill 31,467 $ 83,838 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | As of September 1, 2015 Magna Historical Cost Basis Preliminary Fair Value Adjustments As Recorded by Pinnacle Financial Assets Cash and cash equivalents $ 17,832 $ - $ 17,832 Investment securities (1) 60,018 (280 ) 59,738 Loans (2) 453,108 (10,760 ) (8) 442,348 Mortgage loans held for sale 18,886 - 18,886 Other real estate owned (3) 1,471 139 1,610 Core deposit intangible (4) - 3,170 3,170 Other assets (5) 32,974 4,216 37,190 Total Assets $ 584,289 $ (3,515 ) $ 580,774 Liabilities Interest-bearing deposits (6) $ 402,535 $ 1,268 $ 403,803 Non-interest bearing deposits 48,851 - 48,851 Borrowings (7) 46,900 506 47,406 Other liabilities 28,343 - 28,343 Total Liabilities $ 526,629 $ 1,774 $ 528,403 Net Assets Acquired $ 57,660 $ (5,289 ) $ 52,371 Explanation of certain fair value adjustments: (1) The amount represents the adjustment of the book value of Magna's investment securities to their estimated fair value on the date of acquisition. (2) The amount represents the adjustment of the net book value of Magna's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. (3) The amount represents the adjustment to the book value of Magna's OREO to fair value on the date of acquisition. (4) The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base created in the acquisition. (5) The amount represents the deferred tax asset recognized on the fair value adjustment of Magna's acquired assets and assumed liabilities as well as the fair value adjustment for the mortgage servicing right and property and equipment. (6) The adjustment is necessary because the weighted average interest rate of Magna's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (7) The adjustment is necessary because the weighted average interest rate of Magna's FHLB advances exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. (8) A reduction in the loan fair value adjustment was recorded upon receipt of the final loan mark valuation in the amount of $426,000. |
Equity Method Investment (Table
Equity Method Investment (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Equity Method Investment [Abstract] | |
Equity Method Investments | A summary of BHG's financial position as of March 31, 2016 and December 31, 2015 and results of operations for the three months ended March 31, 2016 and 2015, were as follows (in thousands): Banker's Healthcare Group ($ in thousands) As of March 31, 2016 December 31, 2015 Assets $ 208,244 220,578 Liabilities 141,445 137,147 Membership interests 66,799 83,431 Total liabilities and membership $ 208,244 220,578 For the three months ended March 31, 2016 March 31, 2015 Revenues $ 31,288 27,045 Net income, pre-tax $ 12,154 14,384 |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2016 Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 130,459 75 1,067 129,467 Mortgage-backed agency securities 657,409 9,693 1,393 665,709 State and municipal securities 157,422 8,358 35 165,745 Asset-backed securities 48,225 - 1,212 47,013 Corporate notes and other 8,733 683 20 9,396 $ 1,002,248 $ 18,809 $ 3,727 $ 1,017,330 Securities held-to-maturity: State and municipal securities $ 31,089 $ 435 $ 3 $ 31,521 $ 31,089 $ 435 $ 3 $ 31,521 December 31, 2015: Securities available-for-sale: U.S. Treasury securities $ - $ - $ - $ - U.S. government agency securities 131,499 3 3,309 128,193 Mortgage-backed agency securities 581,998 5,948 5,030 582,916 State and municipal securities 158,072 7,094 124 165,042 Asset-backed securities 49,598 8 805 48,801 Corporate notes and other 9,541 589 17 10,113 $ 930,708 $ 13,642 9,285 $ 935,065 Securities held-to-maturity: State and municipal securities $ 31,377 $ 257 $ 48 $ 31,586 $ 31,377 $ 257 $ 48 $ 31,586 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of March 31, 2016 by contractual maturity are shown below. Actual maturities may differ from contractual maturities 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 March 31, 2016: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 5,392 $ 5,418 $ 1,212 $ 1,214 Due in one year to five years 33,915 36,365 8,629 8,704 Due in five years to ten years 191,294 196,034 12,745 13,014 Due after ten years 66,013 66,791 8,503 8,589 Mortgage-backed securities 657,409 665,709 - - Asset-backed securities 48,225 47,013 - - $ 1,002,248 $ 1,017,330 $ 31,089 $ 31,521 |
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At March 31, 2016 and December 31, 2015, 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 March 31, 2016 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 16,755 712 41,188 355 57,943 1,067 Mortgage-backed securities 122,091 549 69,670 844 191,761 1,393 State and municipal securities 899 12 4,404 26 5,303 38 Asset-backed securities 32,802 917 14,210 295 47,012 1,212 Corporate notes 1,232 20 - - 1,232 20 Total temporarily-impaired securities $ 173,779 $ 2,210 $ 129,472 $ 1,520 $ 303,251 $ 3,730 At December 31, 2015 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 61,903 1,702 65,538 1,607 127,441 3,309 Mortgage-backed securities 338,230 2,789 103,003 2,241 441,233 5,030 State and municipal securities 6,509 38 6,135 134 12,644 172 Asset-backed securities 41,466 798 3,539 7 45,005 805 Corporate notes 2,554 17 - - 2,554 17 Total temporarily-impaired securities $ 450,662 $ 5,344 $ 178,215 $ 3,989 $ 628,877 $ 9,333 |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class | PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total March 31, 2016 Accruing loans Pass $ 2,285,128 $ 1,013,661 $ 746,663 $ 2,314,663 $ 242,170 $ 6,602,285 Special Mention 15,494 2,789 2,537 39,791 106 60,717 Substandard (1) 34,518 12,250 7,686 57,939 61 112,454 2,335,140 1,028,700 756,886 2,412,393 242,337 6,775,456 Impaired loans Nonaccrual loans (2) Substandard-nonaccrual 5,356 10,178 7,193 15,959 3,742 42,428 Doubtful-nonaccrual 2 2 - 92 - 96 Total nonaccrual loans 5,358 10,180 7,193 16,051 3,742 42,524 Troubled debt restructurings (3) Pass 222 404 - 292 27 945 Special Mention - 247 - - - 247 Substandard - 2,838 - 5,920 - 8,758 Total troubled debt restructurings 222 3,489 - 6,212 27 9,950 Total impaired loans 5,580 13,669 7,193 22,263 3,769 52,474 Total loans $ 2,340,720 $ 1,042,369 $ 764,079 $ 2,434,656 $ 246,106 $ 6,827,930 December 31, 2015 Accruing loans Pass $ 2,217,639 $ 1,020,239 $ 732,662 $ 2,143,006 $ 239,874 $ 6,353,420 Special Mention 18,162 1,894 1,133 26,037 118 47,344 Substandard (1) 33,638 11,346 6,295 53,671 74 105,024 Total 2,269,439 1,033,479 740,090 2,222,714 240,066 6,505,788 Impaired loans Nonaccrual loans (2) Substandard-nonaccrual 5,819 9,344 7,607 1,591 4,902 29,263 Doubtful-nonaccrual 2 2 - 92 - 96 Total nonaccrual loans 5,821 9,346 7,607 1,683 4,902 29,359 Troubled debt restructurings (3) Pass 223 409 - 553 28 1,213 Special Mention - 422 - - - 422 Substandard - 2,861 - 3,592 - 6,453 Total troubled debt restructurings 223 3,692 - 4,145 28 8,088 Total impaired loans 6,044 13,038 7,607 5,828 4,930 37,447 Total loans $ 2,275,483 $ 1,046,517 $ 747,697 $ 2,228,542 $ 244,996 $ 6,543,235 (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 $112.5 million at March 31, 2016, compared to $105.0 million at December 31, 2015. (2) Included in nonaccrual loans at March 31, 2016 and December 31, 2015 are $10.8 million and $12.1 million, respectively, in purchase credit impaired loans acquired with deteriorated credit quality. (3) Troubled debt restructurings are presented as an impaired loan; 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 March 31, 2016 and December 31, 2015 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 March 31, 2016 For the three months ended March 31, 2016 Recorded investment Unpaid principal balance (1) Related allowance (2) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 3,826 $ 4,491 $ - $ 3,854 $ - Consumer real estate – mortgage 4,431 4,916 - 4,462 - Construction and land development 7,122 7,526 - 7,320 31 Commercial and industrial 14,747 17,252 - 15,451 - Consumer and other 385 409 - 386 - Total $ 30,511 $ 34,594 $ - $ 31,473 $ 31 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,532 $ 1,536 $ 197 $ 1,548 $ - Consumer real estate – mortgage 5,749 5,665 529 5,815 - Construction and land development 71 68 256 74 - Commercial and industrial 1,304 1,294 1,056 1,128 - Consumer and other 3,357 3,878 236 3,702 - Total $ 12,013 $ 12,441 $ 2,274 $ 12,267 $ - Total nonaccrual loans $ 42,524 $ 47,035 $ 2,274 $ 43,740 $ 31 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) At December 31, 2015 For the year ended December 31, 2015 Recorded investment Unpaid principal balance (1) Related allowance (2) Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 4,411 $ 5,659 $ - $ 2,253 $ - Consumer real estate – mortgage 5,596 6,242 - 3,067 - Construction and land development 7,531 7,883 - 4,317 308 Commercial and industrial 1,420 3,151 - 1,527 - Consumer and other - - - - - Total $ 18,958 $ 22,935 $ - $ 11,164 $ 308 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,410 $ 1,661 $ 20 $ 1,466 $ - Consumer real estate – mortgage 3,750 4,098 616 3,815 - Construction and land development 76 125 12 87 - Commercial and industrial 263 281 19 168 - Consumer and other 4,902 5,341 3,002 4,913 - Total $ 10,401 $ 11,506 $ 3,669 $ 10,449 $ - Total nonaccrual loans $ 29,359 $ 34,441 $ 3,669 $ 21,613 $ 308 (1) Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. (2) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality The following table provides a rollforward of purchase credit impaired loans from December 31, 2015 through March 31, 2016 (in thousands): Gross Contractual Receivable Accretable Yield Nonaccretable Yield Carrying Value December 31, 2015 $ 16,274 $ - $ (4,143 ) $ 12,131 Year-to-date settlements (1,484 ) - 154 (1,330 ) Additional fundings 54 - - 54 March 31, 2016 $ 14,855 $ - $ (3,989 ) $ 10,855 |
Amount of Troubled Debt Restructuring Categorized by Loan Classification | The Three months ended March 31, 2016 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 2,333 1,536 Consumer and other - - - 1 $ 2,333 $ 1,536 2015 Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 434 337 Consumer and other - - - 1 $ 434 $ 337 |
Past Due Balances by Loan Classification | The table below presents past due balances by loan classification and segment at March 31, 2016 and December 31, 2015, allocated between accruing and nonaccrual status (in thousands): March 31, 2016 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 $ 4,509 $ - $ 4,509 $ 4,545 $ 1,090,617 $ 1,099,671 All other 296 - 296 813 1,239,940 1,241,049 Consumer real estate – mortgage 2,432 16 2,448 10,180 1,029,741 1,042,369 Construction and land development 2,220 770 2,990 7,193 753,896 764,079 Commercial and industrial 2,347 3,225 5,572 16,051 2,413,033 2,434,656 Consumer and other 5,704 544 6,248 3,742 236,116 246,106 $ 17,508 $ 4,555 $ 22,063 $ 42,524 $ 6,763,343 $ 6,827,930 December 31, 2015 Commercial real estate: Owner-occupied $ - $ - $ - $ 5,103 $ 1,078,394 $ 1,083,497 All other - - - 718 1,191,268 1,191,986 Consumer real estate – mortgage 6,380 1,396 7,776 9,346 1,029,395 1,046,517 Construction and land development 309 - 309 7,607 739,781 747,697 Commercial and industrial 4,798 - 4,798 1,683 2,222,061 2,228,542 Consumer and other 6,721 373 7,094 4,902 233,000 244,996 $ 18,208 $ 1,769 $ 19,977 $ 29,359 $ 6,493,899 $ 6,543,235 (1) Approximately $26.3 million and $19.0 million of nonaccrual loans as of March 31, 2016 and December 31, 2015, respectively, were performing pursuant to their contractual terms at those dates. |
Details of Changes in the Allowance for Loan Losses | PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 March 31, 2016 December 31, 2015 Commercial real estate –mortgage $ 13,306 $ 15,452 $ 197 $ 20 $ 48 $ 41 $ 13,551 $ 15,513 Consumer real estate – mortgage 5,880 6,109 529 616 760 495 7,169 7,220 Construction and land development 3,686 2,891 256 12 - - 3,942 2,903 Commercial and industrial 21,735 22,669 1,056 19 1,353 955 24,144 23,643 Consumer and other 11,616 12,609 236 3,002 6 5 11,858 15,616 Unallocated - - - - - - 1,575 537 $ 56,223 $ 59,730 $ 2,274 $ 3,669 $ 2,167 $ 1,496 $ 62,239 $ 65,432 (1) Troubled debt restructurings of $10.0 million and $8.1 million as of both March 31, 2016 and December 31, 2015, 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, 2014 to December 31, 2015 to March 31, 2016 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, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Charged-off loans (384 ) (365 ) (190 ) (2,207 ) (18,002 ) - (21,148 ) Recovery of previously charged-off loans 85 874 1,479 1,730 5,865 - 10,033 Provision for loan losses (6,390 ) 1,287 (4,110 ) (5,047 ) 26,183 (2,735 ) 9,188 Balance at December 31, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 537 $ 65,432 Collectively evaluated for impairment $ 15,452 $ 6,109 $ 2,891 $ 22,669 $ 12,609 $ 59,730 Individually evaluated for impairment 61 1,111 12 974 3,007 5,165 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 65,432 Loans: Collectively evaluated for impairment $ 2,269,439 $ 1,033,479 $ 740,090 $ 2,222,714 $ 240,066 $ 6,505,788 Individually evaluated for impairment 2,420 8,986 3,689 5,288 4,930 25,313 Loans acquired with deteriorated credit quality 3,624 4,052 3,918 540 - 12,134 Balance at December 31, 2015 $ 2,275,483 $ 1,046,517 $ 747,697 $ 2,228,542 $ 244,996 $ 6,543,235 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) 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, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 537 $ 65,432 Charged-off loans - (199 ) - (1,624 ) (7,404 ) - (9,227 ) Recovery of previously charged-off loans 58 85 25 1,433 540 - 2,141 Provision for loan losses (2,020 ) 63 1,014 692 3,106 1,038 3,893 Balance at March 31, 2016 $ 13,551 $ 7,169 $ 3,942 $ 24,144 $ 11,858 $ 1,575 $ 62,239 Collectively evaluated for impairment $ 13,306 $ 5,880 $ 3,686 $ 21,735 $ 11,616 $ 56,223 Individually evaluated for impairment 245 1,289 256 2,409 242 4,441 Loans acquired with deteriorated credit quality - - - - - - Balance at March 31, 2016 $ 13,551 $ 7,169 $ 3,942 $ 24,144 $ 11,858 $ 62,239 Loans: Collectively evaluated for impairment $ 2,335,140 $ 1,028,700 $ 756,886 $ 2,412,393 $ 242,337 $ 6,775,456 Individually evaluated for impairment 3,025 10,353 3,642 21,215 3,384 41,619 Loans acquired with deteriorated credit quality 2,555 3,316 3,551 1,048 385 10,855 Balance at March 31, 2016 $ 2,340,720 $ 1,042,369 $ 764,079 $ 2,434,656 $ 246,106 $ 6,827,930 |
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, 2016 with the comparative exposures for December 31, 2015 (in thousands): at March 31, 2016 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2015 Lessors of nonresidential buildings $ 874,814 $ 232,748 $ 1,107,562 $ 1,078,211 Lessors of residential buildings 398,569 173,805 572,374 500,266 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Income Taxes [Abstract] | |
Rollforward of uncertain tax positions | A reconciliation of the beginning and ending unrecognized tax benefit related to uncertain tax positions related to State income tax filings is as follows (in thousands): Three months ended March 31, 2016 2015 Beginning of period $ 196 $ 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 March 31, $ 196 $ 391 |
Stock Options, Stock Apprecia27
Stock Options, Stock Appreciation Rights and Restricted Shares (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |
Summary of Stock Option and Stock Appreciation Rights Activity | As of March 31, 2016, there were 1,096,171 stock options and 2,481 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 three months ended March 31, 2016 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, 2015 1,251,601 $ 21.23 2.54 $ 37,714 (1) Granted - Exercised (152,949 ) Stock appreciation rights exercised - Forfeited - Outstanding at March 31, 2016 1,098,652 $ 21.02 2.58 $ 30,433 (2) Options exercisable at March 31, 2016 1,098,652 $ 21.02 2.58 $ 30,433 (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 $51.36 per common share at December 31, 2015 for the 1,251,601 options and stock appreciation rights that were in-the-money at December 31, 2015. (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 $49.06 per common share at March 31, 2016 for the 1,098,652 options and stock appreciation rights that were in-the-money at March 31, 2016. |
Summary of Activity for Unvested Restricted Share Awards | A summary of activity for unvested restricted share awards for the three months ended March 31, 2016 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2015 866,314 $ 31.39 Shares awarded 91,033 Conversion of restricted share units to restricted share awards 43,694 Restrictions lapsed and shares released to associates/directors (189,843 ) Shares forfeited (1) (7,265 ) Unvested at March 31, 2016 803,933 $ 33.15 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Restricted Stock Unit Awards Outstanding | The following table details the restricted share unit awards outstanding at March 31, 2016: Units Awarded Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Holding period per tranche (in years) Shares settled into RSAs as of period end (2) 2016 (1) 73,474-110,223 26,683 2016 2 3 N/A 2017 2 2 N/A 2018 2 1 N/A 2015 (2) 58,200-101,850 28,378 2015 2 3 N/A 2016 2 2 N/A 2017 2 1 N/A 2014 (3) 58,404-102,209 29,087 2014 5 21,856 2014 4 21,856 2015 4 21,847 2015 3 21,847 2016 3 2016 2 (1) The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. (2) Restricted stock unit awards granted in 2016 and 2015 will be earned and settled in shares of Pinnacle Financial common stock. (3) Forfeiture restrictions on one half of the units previously settled with the issuance of restricted shares will lapse commensurate with the filing of Pinnacle Financial's Form 10-K for the year ended December 31, 2017 while the restrictions on the other one half of the shares will lapse with the filing of Pinnacle Financial's Form 10-K for the year ended December 31, 2018, in each case if Pinnacle Bank achieves the soundness targets applicable to such shares as of fiscal year end dates. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Regulatory Matters [Abstract] | |
Summary of Regulatory Capital Requirement | Management believes, as of March 31, 2016, 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): PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio At March 31, 2016 Total capital to risk weighted assets: Pinnacle Financial $ 918,456 11.1 % $ 664,333 8.0 % $ 830,416 10.0 % Pinnacle Bank $ 882,941 10.7 % $ 663,466 8.0 % $ 829,333 10.0 % Tier I capital to risk weighted assets: Pinnacle Financial $ 726,580 8.7 % $ 498,250 6.0 % $ 664,333 8.0 % Pinnacle Bank $ 691,065 8.3 % $ 497,600 6.0 % $ 663,466 8.0 % Common equity Tier I capital to risk weighted assets Pinnacle Financial $ 646,458 7.8 % $ 373,687 4.5 % $ 539,771 6.5 % Pinnacle Bank $ 690,942 8.3 % $ 373,200 4.5 % $ 539,066 6.5 % Tier I capital to average assets (*): Pinnacle Financial $ 726,580 8.8 % $ 330,435 4.0 % $ 413,043 NA Pinnacle Bank $ 691,065 8.4 % $ 330,244 4.0 % $ 412,805 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
Derivative Instruments [Abstract] | |
Summary of Interest Rate Swaps | A summary of Pinnacle Financial's interest rate swaps related to customers as of March 31, 2016 and December 31, 2015 is included in the following table (in thousands): March 31, 2016 December 31, 2015 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 470,055 $ 28,356 $ 396,112 $ 16,130 Pay variable / receive fixed swaps 470,055 (28,716 ) 396,112 (16,329 ) Total $ 940,110 $ (360 ) $ 792,224 $ (199 ) |
Schedule of Derivative Instruments | Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. March 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term (1) Asset/ (Liabilities) Unrealized Loss in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain in Accumulated Other Comprehensive Income Interest Rate Swap $ 33,000 3 month LIBOR 2.265 % April 2016- April 2020 $ (1,595 ) $ (969 ) $ (784 ) $ (476 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016- April 2022 (2,766 ) (1,681 ) (1,478 ) (898 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016- Oct. 2020 (1,837 ) (1,116 ) (908 ) (552 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017- Oct. 2021 (2,067 ) (1,256 ) (1,112 ) (676 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018- July 2022 (2,159 ) (1,312 ) (1,170 ) (711 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018- Oct. 2022 (2,134 ) (1,297 ) (1,158 ) (704 ) $ 200,000 $ (12,558 ) $ (7,631 ) $ (6,610 ) $ (4,017 ) (1) No cash will be exchanged prior to the beginning of the term. Pinnacle Financial has seven 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. March 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term (2) Asset/ (Liabilities) Unrealized Gain in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain in Accumulated Other Comprehensive Income Interest Rate Swap $ 27,500 2.090 % 1 month LIBOR July 2014 - July 2021 $ 1,321 $ 803 $ 663 $ 403 Interest Rate Swap 25,000 2.270 % 1 month LIBOR July 2014 - July 2022 1,826 1,110 968 588 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 2,393 1,454 1,320 802 Interest Rate Swap 30,000 2.500 % 1 month LIBOR July 2014 - July 2024 2,421 1,471 1,333 810 Interest Rate Swap 15,000 1.048 % 1 month LIBOR August 2015 - August 2018 114 69 (46 ) (28 ) Interest Rate Swap 15,000 1.281 % 1 month LIBOR August 2015 - August 2019 222 135 (34 ) (21 ) Interest Rate Swap 15,000 1.470 % 1 month LIBOR August 2015 - August 2020 329 200 (14 ) (9 ) $ 155,000 $ 8,626 $ 5,242 $ 4,190 $ 2,545 PINNACLE FINANCIAL PARTNERS, INC. AND SUBSIDIARIES NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (Unaudited) |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2016 | |
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 March 31, 2016 and December 31, 2015, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): March 31, 2016 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. treasury securities $ - $ - $ - $ - U.S. government agency securities 129,467 - 129,467 - Mortgage-backed securities 665,709 - 665,709 - State and municipal securities 165,745 - 165,745 - Agency-backed securities 47,013 - 47,013 - Corporate notes and other 9,396 - 9,396 - Total investment securities available-for-sale $ 1,017,330 $ - $ 1,017,330 $ - Other investments 10,128 - - 10,128 Other assets 27,072 - 27,072 - Total assets at fair value $ 1,054,530 $ - $ 1,044,402 $ 10,128 Other liabilities $ 29,205 $ - $ 29,205 $ - Total liabilities at fair value $ 29,205 $ - $ 29,205 $ - December 31, 2015 Investment securities available-for-sale: U.S. treasury securities $ - $ - $ - $ - U.S. government agency securities 128,193 - 128,193 - Mortgage-backed securities 582,916 - 582,916 - State and municipal securities 165,042 - 165,042 - Agency-backed securities 48,801 - 48,801 - Corporate notes and other 10,113 - 10,113 - Total investment securities available-for-sale 935,065 - 935,065 - Other investments 9,764 - - 9,764 Other assets 15,147 - 15,147 - Total assets at fair value $ 959,976 $ - $ 950,212 $ 9,764 Other liabilities $ 16,568 $ - $ 16,568 $ - Total liabilities at fair value $ 16,568 $ - $ 16,568 $ - |
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 March 31, 2016 and December 31, 2015 (in thousands): March 31, 2016 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 $ 4,687 $ - $ - $ 4,687 $ (32 ) Collateral dependent nonaccrual loans, net (1) 30,511 - - 30,511 (1,877 ) Total $ 35,198 $ - $ - $ 35,198 $ (1,909 ) December 31, 2015 Other real estate owned $ 5,083 $ - $ - $ 5,083 $ (41 ) Collateral dependent nonaccrual loans, net (1) 18,598 - - 18,598 (2,637 ) Total $ 23,681 $ - $ - $ 23,681 $ (2,678 ) (1) Amount is net of a valuation allowance of $2.3 million at March 31, 2016 and $3.7 million at December 31, 2015 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 three months ended March 31, 2016 (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 three months ended March 31, 2016 2015 Other assets Other liabilities Other assets Other liabilities Fair value, January 1 $ 9,764 $ - $ 8,004 $ - Total realized gains (losses) included in income 177 - 95 - Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period end - - - - Purchases 325 - 121 - Issuances - - - - Settlements (138 ) - (470 ) - Transfers out of Level 3 - - - - Fair value, March 31 10,128 - 7,750 - The amount of gains for the period included in earnings attributable to the change in unrealized gains relating to assets still held at the reporting date $ 177 $ - $ 95 $ - |
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 March 31, 2016 and December 31, 2015. 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 (dollars in thousands). March 31, 2016 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 $ 31,089 $ 31,521 $ - $ 31,521 $ - Loans, net 6,765,690 6,678,330 - - 6,678,330 Mortgage loans held-for-sale 35,437 36,188 - 36,188 - Loans held-for-sale 10,504 10,722 - 10,722 - Financial liabilities: Deposits and securities sold under agreements to repurchase 7,143,014 6,770,220 - - 6,770,220 Federal Home Loan Bank advances 616,290 616,636 - - 616,636 Subordinated debt and other borrowings 210,708 189,239 - - 189,239 Off-balance sheet instruments: Commitments to extend credit (2) 2,529,273 886 - - 886 Standby letters of credit (3) 100,940 451 - - 451 December 31, 2015 Financial assets: Securities held-to-maturity $ 31,377 $ 31,586 $ - $ 31,586 $ - Loans, net 6,477,803 6,379,153 - - 6,379,153 Mortgage loans held for sale 47,930 48,365 - 48,365 - Financial liabilities: Deposits and securities sold under agreements to repurchase 7,050,498 6,562,509 - - 6,562,509 Federal Home Loan Bank advances 300,305 299,214 - - 299,214 Subordinated debt and other borrowings 142,476 131,494 - - 131,494 Off-balance sheet instruments: Commitments to extend credit (2) 2,218,784 1,017 - - 1,017 Standby letters of credit (3) 93,534 354 - - 354 (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 March 31, 2016 and December 31, 2015, Pinnacle Financial included in other liabilities $0.9 million and $1.0 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At March 31, 2016 and December 31, 2015, the fair value of Pinnacle Financial's standby letters of credit was $451,000 and $354,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Summary of Significant Accoun31
Summary of Significant Accounting Policies (Details) - USD ($) | Jan. 28, 2016 | Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 |
Cash Transactions [Abstract] | ||||
Interest paid | $ 7,341,784 | $ 3,426,798 | ||
Income taxes paid, net | 10,556,737 | 8,217,500 | ||
Noncash Transactions: | ||||
Loans charged-off to the allowance for loan losses | 9,226,906 | 2,649,708 | $ 21,148,000 | |
Loans foreclosed upon and transferred to other real estate owned | 0 | 0 | ||
Loans foreclosed upon and transferred to other assets | 1,384,511 | 1,738,757 | ||
Basic net income per share calculation [Abstract] | ||||
Numerator - Net income | $ 27,965,264 | $ 21,842,711 | ||
Denominator - Average common shares outstanding (in shares) | 40,082,805 | 35,041,203 | ||
Basic net income per share (in dollars per share) | $ 0.70 | $ 0.62 | ||
Diluted earnings per share calculation [Abstract] | ||||
Numerator - Net income | $ 27,965,264 | $ 21,842,711 | ||
Denominator - Average common shares outstanding (in shares) | 40,082,805 | 35,041,203 | ||
Dilutive shares contingently issuable (in shares) | 764,222 | 339,326 | ||
Average diluted common shares outstanding (in shares) | 40,847,027 | 35,380,529 | ||
Diluted net income per common share (in dollars per share) | $ 0.68 | $ 0.62 | ||
Income Per Common Share [Abstract] | ||||
Shares excluded in weighted-average shares outstanding (in shares) | 552,327 | |||
Mortgage Servicing Rights [Abstract] | ||||
Servicing Asset at Amortized Cost | 6,400,000 | |||
Mortage servicing rights associated with Fannie Mae portfolio | $ 830,000,000 | |||
Sale of mortgage servicing rights | 6,800,000 | |||
Income recorded with remainder established as reserve for potential repurchase obligations | $ 240,000 | |||
Recently Adopted Accounting Pronouncements [Abstract] | ||||
Amount of deferred financing cost reclassified from other assets to subordinated debtAmount of deferred financing cost reclassified from other assets to subordinated debt | $ 870,000 | |||
Subordinated Notes [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt maturity date | Jul. 30, 2025 | |||
Debt instrument, interest rate, stated percentage | 4.875% | |||
Subordinated Notes [Member] | Three-Months LIBOR [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, basis spread on variable rate | 3.128% | |||
Avenue Financial Holdings, Inc. (Avenue) [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, termination fees | $ 8,000,000 | |||
Avenue Financial Holdings, Inc. (Avenue) [Member] | Common Stock [Member] | ||||
Business Acquisition [Line Items] | ||||
Fractional shares of common stock (in shares) | 0.36 | |||
Business acquisition share price in cash (in dollars per share) | $ 2 | |||
Business acquisition, common shares issued and outstanding (in shares) | 10,322,055 | |||
Business acquisition, outstanding stock options fully vested and exercisable (in shares) | 257,639 | |||
Business combination, period for average closing price | 10 days | |||
Business acquisition, exercise price of stock options (in dollars per share) | $ 20 | |||
Avenue Financial Holdings, Inc. (Avenue) [Member] | Subordinated Notes [Member] | ||||
Business Acquisition [Line Items] | ||||
Business acquisition, assumed debt | $ 20,000,000 | |||
Debt maturity date | Dec. 24, 2014 | |||
Debt instrument, interest rate, stated percentage | 6.75% | |||
Avenue Financial Holdings, Inc. (Avenue) [Member] | Subordinated Notes [Member] | Three-Months LIBOR [Member] | ||||
Business Acquisition [Line Items] | ||||
Debt instrument, basis spread on variable rate | 4.95% |
Acquisitions, (Mid America, Cav
Acquisitions, (Mid America, Cavalry, Beach & Gentry, BHG) (Details) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016USD ($) | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)Bank | Dec. 31, 2014USD ($) | Dec. 31, 2013USD ($) | Feb. 01, 2015USD ($) | |
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Amortization of acquired intangible assets | $ 873,215 | $ 227,414 | ||||
Mid-America Bancshares, Inc [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Number of bank owned by holding company | Bank | 2 | |||||
Period of amortization for remaining adjustment | 2 years | |||||
Mid-America Bancshares, Inc [Member] | Core Deposits [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired finite-lived intangible asset | $ 9,400,000 | |||||
Amortization period of intangible assets | 10 years | |||||
Amortization of acquired intangible assets | $ 198,000 | $ 206,000 | ||||
Mid-America Bancshares, Inc [Member] | Core Deposits [Member] | Minimum [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 691,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | 0 | |||||
Mid-America Bancshares, Inc [Member] | Core Deposits [Member] | Maximum [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Finite-Lived Intangible Assets, Amortization Expense, Next Twelve Months | 789,000 | |||||
Finite-Lived Intangible Assets, Amortization Expense, Year Two | $ 691,000 | |||||
Cavalry Bancorp, Inc [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Number of bank owned by holding company | Bank | 1 | |||||
Cavalry Bancorp, Inc [Member] | Core Deposits [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired finite-lived intangible asset | $ 13,200,000 | |||||
Amortization period of intangible assets | 7 years | |||||
Amortization of acquired intangible assets | $ 0 | 0 | $ 273,000 | |||
Beach & Gentry Insurance LLC [Member] | Customer Lists [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Acquired finite-lived intangible asset | $ 1,270,000 | |||||
Amortization period of intangible assets | 20 years | |||||
Amortization of acquired intangible assets | $ 85,000 | $ 91,000 | $ 97,000 | |||
Bankers Healthcare Group, LLC [Member] | ||||||
Acquired Finite-Lived Intangible Assets [Line Items] | ||||||
Debt Instrument, Term | 5 years | 5 years | ||||
Debt instrument, interest rate, stated percentage | 2.95% | |||||
Face amount | $ 40,000,000 | |||||
Noncontrolling Interest, Ownership Percentage by Parent | 19.00% | 30.00% | ||||
Purchase Price of Acquired Entity | $ 75,000,000 |
Acquisitions, CapitalMark & Mag
Acquisitions, CapitalMark & Magna (Details) - USD ($) | Sep. 01, 2015 | Jul. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | |||||
Period for merger dates | 1 year | ||||
Allocation of total consideration paid [Abstract] | |||||
Goodwill | $ 431,840,600 | $ 432,232,255 | |||
CapitalMark Bank & Trust [Member] | |||||
Business Acquisition [Line Items] | |||||
Fractional shares of common stock (in shares) | 0.50 | ||||
Stock consideration percentage | 90.00% | ||||
Cash consideration percentage | 10.00% | ||||
Average closing price for common stock (in dollars per share) | $ 26.78 | ||||
Valuation in shares (in shares) | 3,300,000 | ||||
Valuation in dollars | $ 19,700,000 | ||||
Period for average closing price | 10 days | ||||
Equity consideration [Abstract] | |||||
Total equity consideration, Amount | $ 205,955,000 | ||||
Fair value of stock options assumed | 30,430,000 | ||||
Non-equity consideration [Abstract] | |||||
Cash | 19,675,000 | ||||
Total consideration paid | 225,630,000 | ||||
Allocation of total consideration paid [Abstract] | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 67,432,000 | ||||
Goodwill | 158,198,000 | ||||
Assets [Abstract] | |||||
Cash and cash equivalents | 28,021,000 | ||||
Investment securities | [1] | 150,400,000 | |||
Loans, net of allowance for loan losses | [2] | 857,515,000 | |||
Mortgage loans held for sale | [2] | 1,791,000 | |||
Other real estate owned | 1,728,000 | ||||
Core deposit intangible | [3] | 6,193,000 | |||
Other assets | 43,818,000 | ||||
Total Assets | 1,089,466,000 | ||||
Liabilities [Abstract] | |||||
Interest-bearing deposits | [4] | 759,383,000 | |||
Non-interest bearing deposits | 193,798,000 | ||||
Borrowings | [5] | 33,102,000 | |||
Other liabilities | 35,751,000 | ||||
Total Liabilities | 1,022,034,000 | ||||
Fair value of net assets assumed including estimated identifiable intangible assets | 67,432,000 | ||||
CapitalMark Bank & Trust [Member] | As Acquired [Member] | |||||
Allocation of total consideration paid [Abstract] | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 78,791,000 | ||||
Assets [Abstract] | |||||
Cash and cash equivalents | 28,021,000 | ||||
Investment securities | [1] | 150,799,000 | |||
Loans, net of allowance for loan losses | [2] | 880,115,000 | |||
Mortgage loans held for sale | [2] | 1,791,000 | |||
Other real estate owned | 1,728,000 | ||||
Core deposit intangible | [3] | 0 | |||
Other assets | 37,252,000 | ||||
Total Assets | 1,099,706,000 | ||||
Liabilities [Abstract] | |||||
Interest-bearing deposits | [4] | 758,492,000 | |||
Non-interest bearing deposits | 193,798,000 | ||||
Borrowings | [5] | 32,874,000 | |||
Other liabilities | 35,751,000 | ||||
Total Liabilities | 1,020,915,000 | ||||
Fair value of net assets assumed including estimated identifiable intangible assets | 78,791,000 | ||||
CapitalMark Bank & Trust [Member] | Preliminary Fair Value Adjustments [Member] | |||||
Allocation of total consideration paid [Abstract] | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | (11,359,000) | ||||
Assets [Abstract] | |||||
Cash and cash equivalents | 0 | ||||
Investment securities | [1] | (399,000) | |||
Loans, net of allowance for loan losses | [2] | (22,600,000) | |||
Mortgage loans held for sale | [2] | 0 | |||
Other real estate owned | 0 | ||||
Core deposit intangible | [3] | 6,193,000 | |||
Other assets | 6,566,000 | ||||
Total Assets | (10,240,000) | ||||
Liabilities [Abstract] | |||||
Interest-bearing deposits | [4] | 891,000 | |||
Non-interest bearing deposits | 0 | ||||
Borrowings | [5] | 228,000 | |||
Other liabilities | 0 | ||||
Total Liabilities | 1,119,000 | ||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (11,359,000) | ||||
CapitalMark Bank & Trust [Member] | Common Stock [Member] | |||||
Equity consideration [Abstract] | |||||
Total equity consideration, Number of Shares (in shares) | 3,306,184 | ||||
Total equity consideration, Amount | $ 175,525,000 | ||||
Magna Bank [Member] | |||||
Business Acquisition [Line Items] | |||||
Fractional shares of common stock (in shares) | 0.3369 | ||||
Stock consideration percentage | 75.00% | ||||
Cash consideration percentage | 25.00% | ||||
Business acquisition share price in cash (in dollars per share) | $ 14.32 | ||||
Unexercised stock options exchanged for cash (in shares) | 139,417 | ||||
Unexercised stock options exchange price less than exercise price (in dollars per share) | $ 14.32 | ||||
Valuation in shares (in shares) | 1,400,000 | ||||
Valuation in dollars | $ 19,500,000 | ||||
Period for average closing price | 10 days | ||||
Equity consideration [Abstract] | |||||
Total equity consideration, Amount | $ 63,538,000 | ||||
Non-equity consideration [Abstract] | |||||
Cash | 19,453,000 | ||||
Cash paid to exchange outstanding stock options | 847,000 | ||||
Total consideration paid | 83,838,000 | ||||
Allocation of total consideration paid [Abstract] | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 52,371,000 | ||||
Goodwill | 31,467,000 | ||||
Assets [Abstract] | |||||
Cash and cash equivalents | 17,832,000 | ||||
Investment securities | [6] | 59,738,000 | |||
Loans, net of allowance for loan losses | [7] | 442,348,000 | |||
Mortgage loans held for sale | [7] | 18,886,000 | |||
Other real estate owned | [8] | 1,610,000 | |||
Core deposit intangible | [3] | 3,170,000 | |||
Other assets | [9] | 37,190,000 | |||
Total Assets | 580,774,000 | ||||
Liabilities [Abstract] | |||||
Interest-bearing deposits | [10] | 403,803,000 | |||
Non-interest bearing deposits | 48,851,000 | ||||
Borrowings | [11] | 47,406,000 | |||
Other liabilities | 28,343,000 | ||||
Total Liabilities | 528,403,000 | ||||
Fair value of net assets assumed including estimated identifiable intangible assets | 52,371,000 | ||||
Magna Bank [Member] | As Acquired [Member] | |||||
Allocation of total consideration paid [Abstract] | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 57,660,000 | ||||
Assets [Abstract] | |||||
Cash and cash equivalents | 17,832,000 | ||||
Investment securities | [6] | 60,018,000 | |||
Loans, net of allowance for loan losses | [7] | 453,108,000 | |||
Mortgage loans held for sale | [7] | 18,886,000 | |||
Other real estate owned | [8] | 1,471,000 | |||
Core deposit intangible | [3] | 0 | |||
Other assets | [9] | 32,974,000 | |||
Total Assets | 584,289,000 | ||||
Liabilities [Abstract] | |||||
Interest-bearing deposits | [10] | 402,535,000 | |||
Non-interest bearing deposits | 48,851,000 | ||||
Borrowings | [11] | 46,900,000 | |||
Other liabilities | 28,343,000 | ||||
Total Liabilities | 526,629,000 | ||||
Fair value of net assets assumed including estimated identifiable intangible assets | 57,660,000 | ||||
Magna Bank [Member] | Preliminary Fair Value Adjustments [Member] | |||||
Allocation of total consideration paid [Abstract] | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | (5,289,000) | ||||
Assets [Abstract] | |||||
Cash and cash equivalents | 0 | ||||
Investment securities | [6] | (280,000) | |||
Loans, net of allowance for loan losses | [7] | (10,760,000) | |||
Mortgage loans held for sale | [7] | 0 | |||
Other real estate owned | [8] | 139,000 | |||
Core deposit intangible | [3] | 3,170,000 | |||
Other assets | [9] | 4,216,000 | |||
Total Assets | (3,515,000) | ||||
Liabilities [Abstract] | |||||
Interest-bearing deposits | [10] | 1,268,000 | |||
Non-interest bearing deposits | 0 | ||||
Borrowings | [11] | 506,000 | |||
Other liabilities | 0 | ||||
Total Liabilities | 1,774,000 | ||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (5,289,000) | ||||
Magna Bank [Member] | Common Stock [Member] | |||||
Equity consideration [Abstract] | |||||
Total equity consideration, Number of Shares (in shares) | 1,371,717 | ||||
Total equity consideration, Amount | $ 63,538,000 | ||||
[1] | The amount represents the adjustment of the book value of CapitalMark's investment securities to their estimated fair value on the date of acquisition. | ||||
[2] | The amount represents the adjustment of the net book value of CapitalMark's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. | ||||
[3] | The amount represents the fair value of the core deposit intangible asset created in the acquisition. | ||||
[4] | The adjustment is necessary because the weighted average interest rate of CapitalMark's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. | ||||
[5] | The adjustment is necessary because the weighted average interest rate of CapitalMark's FHLB advances exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. | ||||
[6] | The amount represents the adjustment of the book value of Magna's investment securities to their estimated fair value on the date of acquisition. | ||||
[7] | The amount represents the adjustment of the net book value of Magna's loans to their estimated fair value based on current interest rates and expected cash flows, which includes estimates of expected credit losses inherent in the portfolio. | ||||
[8] | The amount represents the adjustment to the book value of Magna's OREO to fair value on the date of acquisition. | ||||
[9] | The amount represents the deferred tax asset recognized on the fair value adjustment of Magna's acquired assets and assumed liabilities as well as the fair value adjustment for property, equipment and other assets. | ||||
[10] | The adjustment is necessary because the weighted average interest rate of Magna's deposits exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. | ||||
[11] | The adjustment is necessary because the weighted average interest rate of Magna's FHLB advances exceeded the cost of similar funding at the time of acquisition. The fair value adjustment will be amortized to reduce future interest expense over the life of the portfolio. |
Equity Method Investment (Detai
Equity Method Investment (Details) - Bankers Healthcare Group, LLC [Member] - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Feb. 01, 2015 | |
Summarized financial information [Abstract] | ||||
Assets | $ 208,244 | $ 220,578 | ||
Liabilities | 141,445 | 137,147 | ||
Membership interests | 66,799 | 83,431 | ||
Total liabilities and membership | 208,244 | $ 220,578 | ||
Summarized financial information, Income statement [Abstract] | ||||
Revenues | 31,288 | $ 27,045 | ||
Net income, pre tax | $ 12,154 | $ 14,384 | ||
Face amount | $ 40,000,000 | |||
Loan maturity term | 5 years | 5 years | ||
Debt instrument, interest rate | 2.95% | |||
Ownership percentage equity method investment | 19.00% | 30.00% |
Securities (Details)
Securities (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | |
Securities available-for-sale [Abstract] | ||
Amortized Cost | $ 1,002,248,000 | $ 930,708,000 |
Gross Unrealized Gains | 18,809,000 | 13,642,000 |
Gross Unrealized Losses | 3,727,000 | 9,285,000 |
Fair Value | 1,017,329,867 | 935,064,745 |
Available-for-sale Securities | 1,017,329,867 | 935,064,745 |
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | 828,450,000 | |
Available-for-sale Securities, Sold at a gain | 0 | |
Securities held-to-maturity [Abstract] | ||
Amortized Cost | 31,089,000 | 31,377,000 |
Gross Unrealized Gains | 435,000 | 257,000 |
Gross Unrealized Losses | 3,000 | 48,000 |
Fair Value | 31,521,474 | 31,585,303 |
Available-for-sale, Amortized Cost [Abstract] | ||
Due in one year or less | 5,392,000 | |
Due in one year to five years | 33,915,000 | |
Due in five years to ten years | 191,294,000 | |
Due after ten years | 66,013,000 | |
Mortgage-backed securities | 657,409,000 | |
Asset-backed securities | 48,225,000 | |
Amortized Cost | 1,002,248,000 | |
Available-for-sale, Fair Value [Abstract] | ||
Due in one year or less | 5,418,000 | |
Due in one year to five years | 36,365,000 | |
Due in five years to ten years | 196,034,000 | |
Due after ten years | 66,791,000 | |
Mortgage-backed securities | 665,709,000 | |
Asset-backed securities | 47,013,000 | |
Held-to-maturity, Amortized Cost [Abstract] | ||
Due in one year or less | 1,212,000 | |
Due in one year to five years | 8,629,000 | |
Due in five years to ten years | 12,745,000 | |
Due after ten years | 8,503,000 | |
Mortgage-backed securities | 0 | |
Asset-backed securities | 0 | |
Amortized Cost | 31,089,333 | 31,376,840 |
Held-to-maturity, Fair Value [Abstract] | ||
Due in one year or less | 1,214,000 | |
Due in one year to five years | 8,704,000 | |
Due in five years to ten years | 13,014,000 | |
Due after ten years | 8,589,000 | |
Mortgage-backed securities | 0 | |
Asset-backed securities | 0 | |
Fair Value | 31,521,474 | 31,585,303 |
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 |
Available-for-sale Securities | 0 | 0 |
U.S. Government Agency Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 130,459,000 | 131,499,000 |
Gross Unrealized Gains | 75,000 | 3,000 |
Gross Unrealized Losses | 1,067,000 | 3,309,000 |
Fair Value | 129,467,000 | 128,193,000 |
Available-for-sale Securities | 129,467,000 | 128,193,000 |
Mortgage-backed Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 657,409,000 | 581,998,000 |
Gross Unrealized Gains | 9,693,000 | 5,948,000 |
Gross Unrealized Losses | 1,393,000 | 5,030,000 |
Fair Value | 665,709,000 | 582,916,000 |
Available-for-sale Securities | 665,709,000 | 582,916,000 |
State and Municipal Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 157,422,000 | 158,072,000 |
Gross Unrealized Gains | 8,358,000 | 7,094,000 |
Gross Unrealized Losses | 35,000 | 124,000 |
Fair Value | 165,745,000 | 165,042,000 |
Available-for-sale Securities | 165,745,000 | 165,042,000 |
Asset-backed Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 48,225,000 | 49,598,000 |
Gross Unrealized Gains | 0 | 8,000 |
Gross Unrealized Losses | 1,212,000 | 805,000 |
Fair Value | 47,013,000 | 48,801,000 |
Available-for-sale Securities | 47,013,000 | 48,801,000 |
Corporate Notes and Other [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 8,733,000 | 9,541,000 |
Gross Unrealized Gains | 683,000 | 589,000 |
Gross Unrealized Losses | 20,000 | 17,000 |
Fair Value | 9,396,000 | 10,113,000 |
Available-for-sale Securities | 9,396,000 | 10,113,000 |
State and Municipal Securities [Member] | ||
Securities held-to-maturity [Abstract] | ||
Amortized Cost | 31,089,000 | 31,377,000 |
Gross Unrealized Gains | 435,000 | 257,000 |
Gross Unrealized Losses | 3,000 | 48,000 |
Fair Value | 31,521,474 | 31,585,303 |
Held-to-maturity, Fair Value [Abstract] | ||
Fair Value | $ 31,521,474 | $ 31,585,303 |
Securities, Available-for-sale
Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | $ 173,779 | $ 450,662 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 2,210 | 5,344 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 129,472 | 178,215 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 1,520 | 3,989 |
Total Investments with an Unrealized Loss, Fair Value | 303,251 | 628,877 |
Total Investments with an Unrealized Loss, Unrealized Losses | 3,730 | 9,333 |
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 | 16,755 | 61,903 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 712 | 1,702 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 41,188 | 65,538 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 355 | 1,607 |
Total Investments with an Unrealized Loss, Fair Value | 57,943 | 127,441 |
Total Investments with an Unrealized Loss, Unrealized Losses | 1,067 | 3,309 |
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 | 122,091 | 338,230 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 549 | 2,789 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 69,670 | 103,003 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 844 | 2,241 |
Total Investments with an Unrealized Loss, Fair Value | 191,761 | 441,233 |
Total Investments with an Unrealized Loss, Unrealized Losses | 1,393 | 5,030 |
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 | 899 | 6,509 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 12 | 38 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 4,404 | 6,135 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 26 | 134 |
Total Investments with an Unrealized Loss, Fair Value | 5,303 | 12,644 |
Total Investments with an Unrealized Loss, Unrealized Losses | 38 | 172 |
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 | 32,802 | 41,466 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 917 | 798 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 14,210 | 3,539 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 295 | 7 |
Total Investments with an Unrealized Loss, Fair Value | 47,012 | 45,005 |
Total Investments with an Unrealized Loss, Unrealized Losses | 1,212 | 805 |
Corporate Notes [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 1,232 | 2,554 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 20 | 17 |
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 | 1,232 | 2,554 |
Total Investments with an Unrealized Loss, Unrealized Losses | $ 20 | $ 17 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||||
Loans and Allowance for Loan Losses [Abstract] | ||||||
Percentage of loan portfolio as commercial loan | 74.55% | |||||
Risk rated loans | $ 500,000 | |||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 6,827,929,582 | $ 6,543,235,381 | ||||
Potential problem loans not included in nonperforming assets | 112,500,000 | 105,000,000 | ||||
Average balance of impaired loans | 43,740,000 | 21,613,000 | ||||
Estimated increase in interest income if nonaccrual loans had been on accrual status | 280,000 | $ 333,000 | ||||
Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,340,720,000 | 2,275,483,000 | ||||
Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 1,042,369,000 | 1,046,517,000 | ||||
Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 764,079,000 | 747,697,000 | ||||
Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,434,656,000 | 2,228,542,000 | ||||
Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 246,106,000 | 244,996,000 | ||||
Accruing Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 6,775,456,000 | 6,505,788,000 | [1] | |||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,335,140,000 | 2,269,439,000 | [1] | |||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 1,028,700,000 | 1,033,479,000 | [1] | |||
Accruing Loans [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 756,886,000 | 740,090,000 | [1] | |||
Accruing Loans [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,412,393,000 | 2,222,714,000 | [1] | |||
Accruing Loans [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 242,337,000 | 240,066,000 | [1] | |||
Accruing Loans [Member] | Pass [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 6,602,285,000 | 6,353,420,000 | ||||
Accruing Loans [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,285,128,000 | 2,217,639,000 | ||||
Accruing Loans [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 1,013,661,000 | 1,020,239,000 | ||||
Accruing Loans [Member] | Pass [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 746,663,000 | 732,662,000 | ||||
Accruing Loans [Member] | Pass [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,314,663,000 | 2,143,006,000 | ||||
Accruing Loans [Member] | Pass [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 242,170,000 | 239,874,000 | ||||
Accruing Loans [Member] | Special Mention [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 60,717,000 | 47,344,000 | ||||
Accruing Loans [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 15,494,000 | 18,162,000 | ||||
Accruing Loans [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,789,000 | 1,894,000 | ||||
Accruing Loans [Member] | Special Mention [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,537,000 | 1,133,000 | ||||
Accruing Loans [Member] | Special Mention [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 39,791,000 | 26,037,000 | ||||
Accruing Loans [Member] | Special Mention [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 106,000 | 118,000 | ||||
Accruing Loans [Member] | Substandard [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 112,454,000 | [1] | 105,024,000 | |||
Accruing Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 34,518,000 | [1] | 33,638,000 | |||
Accruing Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 12,250,000 | [1] | 11,346,000 | |||
Accruing Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 7,686,000 | [1] | 6,295,000 | |||
Accruing Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 57,939,000 | [1] | 53,671,000 | |||
Accruing Loans [Member] | Substandard [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 61,000 | [1] | 74,000 | |||
Nonaccrual Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 42,524,000 | [2] | 29,359,000 | |||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 5,358,000 | [2] | 5,821,000 | |||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 10,180,000 | [2] | 9,346,000 | |||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 7,193,000 | [2] | 7,607,000 | |||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 16,051,000 | [2] | 1,683,000 | |||
Nonaccrual Loans [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 3,742,000 | [2] | 4,902,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 42,428,000 | [2] | 29,263,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 5,356,000 | [2] | 5,819,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 10,178,000 | [2] | 9,344,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 7,193,000 | [2] | 7,607,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 15,959,000 | [2] | 1,591,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 3,742,000 | [2] | 4,902,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 96,000 | [2] | 96,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,000 | [2] | 2,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 2,000 | [2] | 2,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 0 | [2] | 0 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 92,000 | [2] | 92,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 0 | [2] | 0 | |||
Troubled Debt Restructurings [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 9,950,000 | 8,088,000 | |||
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 222,000 | 223,000 | |||
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 3,489,000 | 3,692,000 | |||
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 6,212,000 | 4,145,000 | |||
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 27,000 | 28,000 | |||
Troubled Debt Restructurings [Member] | Pass [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 945,000 | 1,213,000 | |||
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 222,000 | 223,000 | |||
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 404,000 | 409,000 | |||
Troubled Debt Restructurings [Member] | Pass [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 292,000 | 553,000 | |||
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 27,000 | 28,000 | |||
Troubled Debt Restructurings [Member] | Special Mention [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 247,000 | 422,000 | |||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 247,000 | 422,000 | |||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Substandard [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 8,758,000 | 6,453,000 | |||
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 2,838,000 | 2,861,000 | |||
Troubled Debt Restructurings [Member] | Substandard [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 5,920,000 | 3,592,000 | |||
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 0 | 0 | |||
Impaired Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 52,474,000 | 37,447,000 | |||
Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 5,580,000 | 6,044,000 | |||
Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 13,669,000 | 13,038,000 | |||
Impaired Loans [Member] | Construction and Land Development [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 7,193,000 | 7,607,000 | |||
Impaired Loans [Member] | Commercial and Industrial [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 22,263,000 | 5,828,000 | |||
Impaired Loans [Member] | Consumer and Other [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | [3] | 3,769,000 | $ 4,930,000 | |||
Acquired Loans [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Loans | 1,284,000,000 | |||||
Fair value adjustment | (28,830,000) | |||||
Net total acquired loans | 1,255,050,000 | |||||
Acquired Loans [Member] | CapitalMark Bank & Trust [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Net total acquired loans | 816,500,000 | |||||
Acquired Loans [Member] | Magna Bank [Member] | ||||||
Financing Receivable, Recorded Investment [Line Items] | ||||||
Net total acquired loans | $ 439,500,000 | |||||
[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 $112.5 million at March 31, 2016, compared to $105.0 million at December 31, 2015. | |||||
[2] | Included in nonaccrual loans at March 31, 2016 and December 31, 2015 are $10.8 million and $12.1 million, respectively, in loans acquired with deteriorated credit quality. | |||||
[3] | Troubled debt restructurings are presented as impaired loans; however, they continue to accrue interest at contractual rates |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses, Rollforward of Purchase Credit Impaired Loans (Details) $ in Thousands | 6 Months Ended |
Mar. 31, 2016USD ($) | |
Business Combination, Acquired Receivables [Abstract] | |
Gross Contractual Receivable | $ 15,651 |
Settlements | (1,199) |
Additional fundings | 54 |
Gross Contractual Receivable | 14,506 |
Accretable Yield | 0 |
Settlements | 0 |
Additional fundings | 0 |
Accretable Yield | 0 |
Nonaccretable Yield | (3,805) |
Settlements | 154 |
Additional fundings | 0 |
Nonaccretable Yield | (3,651) |
Carrying Value | 11,846 |
Settlements | (1,045) |
Additional fundings | 54 |
Carrying Value | $ 10,855 |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses, Impaired Financing Receivable (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2015 | |||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | $ 42,524,000 | $ 29,359,000 | ||
Unpaid principal balance | 47,035,000 | [1] | 34,441,000 | |
Related allowance | [2] | 2,274,000 | 3,669,000 | |
Average recorded investment | 43,740,000 | 21,613,000 | ||
Interest income recognized | 31,350 | 308,000 | ||
Interest income from cash payments received | 31,000 | 308,000 | ||
Collateral Dependent Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 30,511,000 | 18,958,000 | ||
Unpaid principal balance | 34,594,000 | [1] | 22,935,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 31,473,000 | 11,164,000 | ||
Interest income recognized | 31,350 | 308,000 | ||
Collateral Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 3,826,000 | 4,411,000 | ||
Unpaid principal balance | 4,491,000 | [1] | 5,659,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 3,854,000 | 2,253,000 | ||
Interest income recognized | 0 | 0 | ||
Collateral Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 4,431,000 | 5,596,000 | ||
Unpaid principal balance | 4,916,000 | [1] | 6,242,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 4,462,000 | 3,067,000 | ||
Interest income recognized | 0 | 0 | ||
Collateral Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 7,122,000 | 7,531,000 | ||
Unpaid principal balance | 7,526,000 | [1] | 7,883,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 7,320,000 | 4,317,000 | ||
Interest income recognized | 31,350 | 308,000 | ||
Collateral Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 14,747,000 | 1,420,000 | ||
Unpaid principal balance | 17,252,000 | [1] | 3,151,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 15,451,000 | 1,527,000 | ||
Interest income recognized | 0 | 0 | ||
Collateral Dependent Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 385,000 | 0 | ||
Unpaid principal balance | 409,000 | [1] | 0 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 386,000 | 0 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 12,013,000 | 10,401,000 | ||
Unpaid principal balance | 12,441,000 | [1] | 11,506,000 | |
Related allowance | [2] | 2,274,000 | 3,669,000 | |
Average recorded investment | 12,267,000 | 10,449,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,532,000 | 1,410,000 | ||
Unpaid principal balance | 1,536,000 | [1] | 1,661,000 | |
Related allowance | [2] | 197,000 | 20,000 | |
Average recorded investment | 1,548,000 | 1,466,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 5,749,000 | 3,750,000 | ||
Unpaid principal balance | 5,665,000 | [1] | 4,098,000 | |
Related allowance | [2] | 529,000 | 616,000 | |
Average recorded investment | 5,815,000 | 3,815,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 71,000 | 76,000 | ||
Unpaid principal balance | 68,000 | [1] | 125,000 | |
Related allowance | [2] | 256,000 | 12,000 | |
Average recorded investment | 74,000 | 87,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,304,000 | 263,000 | ||
Unpaid principal balance | 1,294,000 | [1] | 281,000 | |
Related allowance | [2] | 1,056,000 | 19,000 | |
Average recorded investment | 1,128,000 | 168,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 3,357,000 | 4,902,000 | ||
Unpaid principal balance | 3,878,000 | [1] | 5,341,000 | |
Related allowance | [2] | 236,000 | 3,002,000 | |
Average recorded investment | 3,702,000 | 4,913,000 | ||
Interest income recognized | $ 0 | $ 0 | ||
[1] | Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. | |||
[2] | 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 40
Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) | 3 Months Ended | ||
Mar. 31, 2016USD ($)Contract | Mar. 31, 2015USD ($)Contract | Dec. 31, 2015USD ($) | |
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 1 | 1 | |
Pre Modification Outstanding Recorded Investment | $ 2,333 | $ 434,000 | |
Post Modification Outstanding Recorded Investment, net of related allowance | 1,536 | $ 337,000 | |
Troubled debt restructurings performing as of restructure date | $ 9,900,000 | $ 8,100,000 | |
Percentage of credit exposure to risk based capital | 25.00% | ||
Commercial Real Estate - Mortgage [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | |
Consumer Real Estate - Mortgage [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | |
Construction and Land Development [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | |
Commercial and Industrial [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 1 | 1 | |
Pre Modification Outstanding Recorded Investment | $ 2,333 | $ 434,000 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 1,536 | $ 337,000 | |
Consumer and Other [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | 0 | $ 0 | |
Lessors of Nonresidential Buildings [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 874,814,000 | ||
Financing receivables unfunded commitment | 232,748,000 | ||
Financing receivables exposure | 1,107,562,000 | 1,078,211,000 | |
Lessors of Residential Buildings [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 398,569,000 | ||
Financing receivables unfunded commitment | 173,805,000 | ||
Financing receivables exposure | $ 572,374,000 | $ 500,266,000 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses, Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | $ 22,063 | $ 19,977 | |
Nonaccrual | [1] | 42,524 | 29,359 |
Current and accruing | 6,763,343 | 6,493,899 | |
Total Loans | 6,827,930 | 6,543,235 | |
Currently performing impaired loans | 26,300 | 19,000 | |
30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 17,508 | 18,208 | |
90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 4,555 | 1,769 | |
Commercial Real Estate Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 4,509 | 0 | |
Nonaccrual | [1] | 4,545 | 5,103 |
Current and accruing | 1,090,617 | 1,078,394 | |
Total Loans | 1,099,671 | 1,083,497 | |
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 | 4,509 | 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 | 296 | 0 | |
Nonaccrual | [1] | 813 | 718 |
Current and accruing | 1,239,940 | 1,191,268 | |
Total Loans | 1,241,049 | 1,191,986 | |
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 | 296 | 0 | |
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 | 2,448 | 7,776 | |
Nonaccrual | [1] | 10,180 | 9,346 |
Current and accruing | 1,029,741 | 1,029,395 | |
Total Loans | 1,042,369 | 1,046,517 | |
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 | 2,432 | 6,380 | |
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 | 16 | 1,396 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 2,990 | 309 | |
Nonaccrual | [1] | 7,193 | 7,607 |
Current and accruing | 753,896 | 739,781 | |
Total Loans | 764,079 | 747,697 | |
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 | 2,220 | 309 | |
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 | 770 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 5,572 | 4,798 | |
Nonaccrual | [1] | 16,051 | 1,683 |
Current and accruing | 2,413,033 | 2,222,061 | |
Total Loans | 2,434,656 | 2,228,542 | |
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 | 2,347 | 4,798 | |
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 | 3,225 | 0 | |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 6,248 | 7,094 | |
Nonaccrual | [1] | 3,742 | 4,902 |
Current and accruing | 236,116 | 233,000 | |
Total Loans | 246,106 | 244,996 | |
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 | 5,704 | 6,721 | |
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 | $ 544 | $ 373 | |
[1] | Approximately $26.3 million and $19.0 million of nonaccrual loans as of March 31, 2016 and December 31, 2015, respectively, were performing pursuant to their contractual terms at those dates. |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses, Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Mar. 31, 2016 | Dec. 31, 2015 | ||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | $ 62,239,279 | $ 65,432,354 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | $ (65,432,354) | |||||||
Charged-off loans | (9,226,906) | $ (2,649,708) | $ (21,148,000) | |||||
Recovery of previously charged-off loans | 2,141,000 | 10,033,000 | ||||||
Provision for loan losses | 3,893,570 | 315,091 | 9,188,000 | |||||
Ending Balance | (62,239,279) | (65,432,354) | ||||||
Collectively evaluated for impairment | 56,223,000 | 59,730,000 | ||||||
Individually evaluated for impairment | 4,441,000 | 5,165,000 | ||||||
Loans acquired with deteriorated credit quality | (62,239,279) | (65,432,354) | (62,239,279) | (65,432,354) | ||||
Collectively evaluated for impairment | 6,775,456,000 | 6,505,788,000 | ||||||
Individually evaluated for impairment | 41,619,000 | 25,313,000 | ||||||
Ending Balance | 6,827,929,582 | 6,543,235,381 | ||||||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | 10,500,000 | 14,500,000 | ||||||
Amount drawn from loans and other extensions of credit granted | 7,400,000 | 11,400,000 | ||||||
Loans sold gross, mortgage | 163,949,000 | 95,782,000 | ||||||
Mortgage loans held-for-sale | 35,437,491 | 47,930,253 | ||||||
Gain on mortgage loans sold, net | 3,567,551 | 1,941,254 | ||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | ||||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 0 | |||||||
Ending Balance | 0 | 0 | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 10,855,000 | 12,134,000 | ||||||
Commercial Real Estate - Mortgage [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 13,551,000 | 15,513,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 15,513,000 | 22,202,000 | 22,202,000 | |||||
Charged-off loans | 0 | (384,000) | ||||||
Recovery of previously charged-off loans | 58,000 | 85,000 | ||||||
Provision for loan losses | (2,020,000) | (6,390,000) | ||||||
Ending Balance | 13,551,000 | 15,513,000 | ||||||
Collectively evaluated for impairment | 13,306,000 | 15,452,000 | ||||||
Individually evaluated for impairment | 245,000 | 61,000 | ||||||
Loans acquired with deteriorated credit quality | 15,513,000 | 22,202,000 | 15,513,000 | 13,551,000 | 15,513,000 | |||
Collectively evaluated for impairment | 2,335,140,000 | 2,269,439,000 | ||||||
Individually evaluated for impairment | 3,025,000 | 2,420,000 | ||||||
Ending Balance | 2,340,720,000 | 2,275,483,000 | ||||||
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 | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 2,555,000 | 3,624,000 | ||||||
Consumer Real Estate - Mortgage [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 7,169,000 | 7,220,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 7,220,000 | 5,424,000 | 5,424,000 | |||||
Charged-off loans | (199,000) | (365,000) | ||||||
Recovery of previously charged-off loans | 85,000 | 874,000 | ||||||
Provision for loan losses | 63,000 | 1,287,000 | ||||||
Ending Balance | 7,169,000 | 7,220,000 | ||||||
Collectively evaluated for impairment | 5,880,000 | 6,109,000 | ||||||
Individually evaluated for impairment | 1,289,000 | 1,111,000 | ||||||
Loans acquired with deteriorated credit quality | 7,220,000 | 5,424,000 | 5,424,000 | 7,169,000 | 7,220,000 | |||
Collectively evaluated for impairment | 1,028,700,000 | 1,033,479,000 | ||||||
Individually evaluated for impairment | 10,353,000 | 8,986,000 | ||||||
Ending Balance | 1,042,369,000 | 1,046,517,000 | ||||||
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 | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 3,316,000 | 4,052,000 | ||||||
Construction and Land Development [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 3,942,000 | 2,903,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 2,903,000 | 5,724,000 | 5,724,000 | |||||
Charged-off loans | 0 | (190,000) | ||||||
Recovery of previously charged-off loans | 25,000 | 1,479,000 | ||||||
Provision for loan losses | 1,014,000 | (4,110,000) | ||||||
Ending Balance | 3,942,000 | 2,903,000 | ||||||
Collectively evaluated for impairment | 3,686,000 | 2,891,000 | ||||||
Individually evaluated for impairment | 256,000 | 12,000 | ||||||
Loans acquired with deteriorated credit quality | 2,903,000 | 5,724,000 | 5,724,000 | 3,942,000 | 2,903,000 | |||
Collectively evaluated for impairment | 756,886,000 | 740,090,000 | ||||||
Individually evaluated for impairment | 3,642,000 | 3,689,000 | ||||||
Ending Balance | 764,079,000 | 747,697,000 | ||||||
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 | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 3,551,000 | 3,918,000 | ||||||
Commercial and Industrial [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 24,144,000 | 23,643,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 23,643,000 | 29,167,000 | 29,167,000 | |||||
Charged-off loans | (1,624,000) | (2,207,000) | ||||||
Recovery of previously charged-off loans | 1,433,000 | 1,730,000 | ||||||
Provision for loan losses | 692,000 | (5,047,000) | ||||||
Ending Balance | 24,144,000 | 23,643,000 | ||||||
Collectively evaluated for impairment | 21,735,000 | 22,669,000 | ||||||
Individually evaluated for impairment | 2,409,000 | 974,000 | ||||||
Loans acquired with deteriorated credit quality | 23,643,000 | 29,167,000 | 23,643,000 | 24,144,000 | 23,643,000 | |||
Collectively evaluated for impairment | 2,412,393,000 | 2,222,714,000 | ||||||
Individually evaluated for impairment | 21,215,000 | 5,288,000 | ||||||
Ending Balance | 2,434,656,000 | 2,228,542,000 | ||||||
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 | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 1,048,000 | 540,000 | ||||||
Consumer and Other [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 11,858,000 | 15,616,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 15,616,000 | 1,570,000 | 1,570,000 | |||||
Charged-off loans | (7,404,000) | (18,002,000) | ||||||
Recovery of previously charged-off loans | 540,000 | 5,865,000 | ||||||
Provision for loan losses | 3,106,000 | 26,183,000 | ||||||
Ending Balance | 11,858,000 | 15,616,000 | ||||||
Collectively evaluated for impairment | 11,616,000 | 12,609,000 | ||||||
Individually evaluated for impairment | 242,000 | 3,007,000 | ||||||
Loans acquired with deteriorated credit quality | 15,616,000 | 1,570,000 | 15,616,000 | 11,858,000 | 15,616,000 | |||
Collectively evaluated for impairment | 242,337,000 | 240,066,000 | ||||||
Individually evaluated for impairment | 3,384,000 | 4,930,000 | ||||||
Ending Balance | 246,106,000 | 244,996,000 | ||||||
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 | ||||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | 0 | ||||
Loans acquired with deteriorated credit quality | 385,000 | 0 | ||||||
Unallocated [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 1,575,000 | 537,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Beginning Balance | 537,000 | 3,272,000 | 3,272,000 | |||||
Charged-off loans | 0 | 0 | ||||||
Recovery of previously charged-off loans | 0 | 0 | ||||||
Provision for loan losses | 1,038,000 | (2,735,000) | ||||||
Ending Balance | 1,575,000 | 537,000 | ||||||
Loans acquired with deteriorated credit quality | 537,000 | $ 3,272,000 | 3,272,000 | 1,575,000 | 537,000 | |||
Accruing Loans [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 56,223,000 | 59,730,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 6,775,456,000 | 6,505,788,000 | [1] | |||||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 13,306,000 | 15,452,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 2,335,140,000 | 2,269,439,000 | [1] | |||||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 5,880,000 | 6,109,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 1,028,700,000 | 1,033,479,000 | [1] | |||||
Accruing Loans [Member] | Construction and Land Development [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 3,686,000 | 2,891,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 756,886,000 | 740,090,000 | [1] | |||||
Accruing Loans [Member] | Commercial and Industrial [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 21,735,000 | 22,669,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 2,412,393,000 | 2,222,714,000 | [1] | |||||
Accruing Loans [Member] | Consumer and Other [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 11,616,000 | 12,609,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 242,337,000 | 240,066,000 | [1] | |||||
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 | 2,274,000 | 3,669,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 42,524,000 | [2] | 29,359,000 | |||||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 197,000 | 20,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 5,358,000 | [2] | 5,821,000 | |||||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 529,000 | 616,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 10,180,000 | [2] | 9,346,000 | |||||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 256,000 | 12,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 7,193,000 | [2] | 7,607,000 | |||||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 1,056,000 | 19,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 16,051,000 | [2] | 1,683,000 | |||||
Nonaccrual Loans [Member] | Consumer and Other [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | 236,000 | 3,002,000 | ||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 3,742,000 | [2] | 4,902,000 | |||||
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 | [3] | 2,167,000 | 1,496,000 | |||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | [4] | 9,950,000 | 8,088,000 | |||||
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 | [3] | 48,000 | 41,000 | |||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | [4] | 222,000 | 223,000 | |||||
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 | [3] | 760,000 | 495,000 | |||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | [4] | 3,489,000 | 3,692,000 | |||||
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 | [3] | 0 | 0 | |||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | [4] | 0 | 0 | |||||
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | [3] | 1,353,000 | 955,000 | |||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | [4] | 6,212,000 | 4,145,000 | |||||
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | [3] | 6,000 | 5,000 | |||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | [4] | 27,000 | $ 28,000 | |||||
Troubled Debt Restructurings [Member] | Unallocated [Member] | ||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | ||||||||
Total Allowance for Loan Losses | [3] | 0 | $ 0 | |||||
Acquired Loans [Member] | ||||||||
Changes in allowance for loan losses [Roll Forward] | ||||||||
Ending Balance | 1,284,000,000 | |||||||
Net total acquired loans | $ 1,255,050,000 | |||||||
Fair value adjustment | $ (28,830,000) | |||||||
[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 $112.5 million at March 31, 2016, compared to $105.0 million at December 31, 2015. | |||||||
[2] | Included in nonaccrual loans at March 31, 2016 and December 31, 2015 are $10.8 million and $12.1 million, respectively, in loans acquired with deteriorated credit quality. | |||||||
[3] | Troubled debt restructurings of $10.0 million and $8.1 million as of both March 31, 2016 and December 31, 2015, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. | |||||||
[4] | Troubled debt restructurings are presented as impaired loans; however, they continue to accrue interest at contractual rates |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2014 | |
Reconciliation of Unrecognized Tax Benefits, Excluding Amounts Pertaining to Examined Tax Returns [Roll Forward] | ||||
Beginning of period | $ 196,000 | $ 391,000 | $ 196,000 | $ 391,000 |
Increases due to tax positions taken during the current year | 0 | 0 | ||
Increases due to tax positions taken during a prior year | 0 | 0 | ||
Decreases due to the lapse of the statute of limitations during the current year | 0 | 0 | ||
Decreases due to settlements with the taxing authorities during the current year | 0 | 0 | ||
Balance at September 30, | $ 196,000 | $ 391,000 | ||
Effective income tax rate | 33.10% | 33.00% | ||
Income tax examination interest and penalties | $ 0 | $ 9,600 | ||
Federal and State income tax statutory rate | 39.23% |
Commitments and Contingent Li44
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2016 | Dec. 31, 2015 | |
Loss Contingencies [Line Items] | ||
Inherent risks associated with off balance sheet commitments | $ 1.4 | $ 1.4 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 100.9 | |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 2,500 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Expiry period of standby letter of credit, maximum | 2 years |
Stock Options, Stock Apprecia45
Stock Options, Stock Appreciation Rights and Restricted Shares (Details) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2015USD ($) | Dec. 31, 2015USD ($)$ / sharesshares | Mar. 31, 2016USD ($)Plan$ / sharesshares | Dec. 31, 2015$ / 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 | $ | $ 2,628,788 | $ 1,653,662 | ||||||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Number [Roll Forward] | ||||||||
Outstanding, Ending Balance (in shares) | 2,481 | 2,481 | ||||||
Exercised (in shares) | 0 | |||||||
Outstanding, Ending Balance (in shares) | 2,481 | |||||||
Stock Option [Member] | ||||||||
Number [Roll Forward] | ||||||||
Outstanding, Ending Balance (in shares) | 1,096,171 | 1,096,171 | ||||||
Outstanding, Ending Balance (in shares) | 1,096,171 | |||||||
Restricted Share [Member] | ||||||||
Number [Roll Forward] | ||||||||
Unvested, beginning of period (in shares) | 866,314 | |||||||
Shares awarded (in shares) | 91,033 | |||||||
Conversion of restricted share units to restricted share awards (in shares) | 43,694 | |||||||
Restrictions lapsed and shares released to associates/directors (in shares) | (189,843) | |||||||
Shares forfeited (in shares) | [1] | (7,265) | ||||||
Unvested, end of period (in shares) | 803,933 | 866,314 | ||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 31.39 | |||||||
Unvested, end of period (in dollars per share) | $ / shares | $ 33.15 | $ 31.39 | ||||||
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) | 91,033 | |||||||
Shares forfeited by participants (in shares) | [1] | 7,265 | ||||||
Shares Unvested (in shares) | 866,314 | 866,314 | 803,933 | 866,314 | ||||
Stock-based compensation expense | $ | $ 1,900,000 | 1,400,000 | ||||||
Restricted share units, awarded (in shares) | 91,033 | |||||||
Common Stock Options and Stock Appreciation Rights [Member] | ||||||||
Number [Roll Forward] | ||||||||
Outstanding, Ending Balance (in shares) | 1,098,652 | 1,251,601 | 1,098,652 | 1,251,601 | ||||
Granted (in shares) | 0 | |||||||
CapitalMark Options issued upon acquisition | 0 | |||||||
Exercised (in shares) | (152,949) | |||||||
Forfeited (in shares) | 0 | |||||||
Outstanding, Ending Balance (in shares) | 1,098,652 | 1,251,601 | ||||||
Outstanding and expected to vest (in shares) | 1,098,652 | |||||||
Weighted average exercise price [Abstract] | ||||||||
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 21.23 | |||||||
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 21.02 | $ 21.23 | ||||||
Options exercisable (in dollars per share) | $ / shares | $ 21.02 | |||||||
Weighted average contractual remaining term [Abstract] | ||||||||
Outstanding, beginning of period | 2 years 6 months 29 days | 2 years 6 months 14 days | ||||||
Outstanding, end of period | 2 years 6 months 29 days | 2 years 6 months 14 days | ||||||
Outstanding and expected to vest | 2 years 6 months 29 days | |||||||
Aggregate intrinsic value [Abstract] | ||||||||
Outstanding, beginning of period | $ | [2] | $ 37,714,000 | ||||||
Outstanding, end of period | $ | $ 30,433,000 | [3] | $ 37,714,000 | [2] | ||||
Outstanding and expected to vest | $ | [3] | $ 30,433,000 | ||||||
Quoted closing price of common stock (in dollars per share) | $ / shares | $ 49.06 | $ 51.36 | ||||||
Number of awards used in aggregate intrinsic value (in shares) | 1,098,652 | 1,251,601 | ||||||
Time Based Awards [Member] | Associates [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [4] | 74,429 | ||||||
Shares forfeited (in shares) | [4],[5] | 0 | ||||||
Unvested, end of period (in shares) | [4] | 74,429 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Group | [4],[6] | Associates | ||||||
Vesting Period in years | [4] | 5 years | ||||||
Shares awarded (in shares) | [4] | 74,429 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [4] | 0 | ||||||
Shares forfeited by participants (in shares) | [4],[5] | 0 | ||||||
Shares Unvested (in shares) | [4] | 74,429 | 74,429 | |||||
Restricted share units, awarded (in shares) | [4] | 74,429 | ||||||
Performance Based Awards [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [7] | 43,694 | ||||||
Shares forfeited (in shares) | [5],[7] | 0 | ||||||
Unvested, end of period (in shares) | [7] | 43,694 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Group | [6],[7] | Leadership team | ||||||
Vesting Period in years | [7] | 0 years | ||||||
Shares awarded (in shares) | [7] | 43,694 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [7] | 0 | ||||||
Shares forfeited by participants (in shares) | [5],[7] | 0 | ||||||
Shares Unvested (in shares) | [7] | 43,694 | 43,694 | |||||
Restricted share units, awarded (in shares) | [7] | 43,694 | ||||||
Outside Director Awards [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [8] | 16,604 | ||||||
Shares forfeited (in shares) | [5],[8] | 0 | ||||||
Unvested, end of period (in shares) | [8] | 16,604 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Group | [6],[8] | Outside directors | ||||||
Vesting Period in years | [8] | 1 year | ||||||
Shares awarded (in shares) | [8] | 16,604 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [8] | 0 | ||||||
Shares forfeited by participants (in shares) | [5],[8] | 0 | ||||||
Shares Unvested (in shares) | [8] | 16,604 | 16,604 | |||||
Restricted share units, awarded (in shares) | [8] | 16,604 | ||||||
2016 Restricted Share Units [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 73,474 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 73,474 | ||||||
Restricted share units, awarded (in shares) | [9] | 73,474 | ||||||
2016 Restricted Share Units [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 110,223 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 110,223 | ||||||
Restricted share units, awarded (in shares) | [9] | 110,223 | ||||||
2016 Restricted Share Units [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 26,683 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 26,683 | ||||||
Restricted share units, awarded (in shares) | [9] | 26,683 | ||||||
2015 Restricted Share Units [Member] | ||||||||
Aggregate intrinsic value [Abstract] | ||||||||
Stock compensation expense | $ | $ 771,000 | $ 298,000 | ||||||
2015 Restricted Share Units [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9],[10] | 58,200 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9],[10] | 58,200 | ||||||
Restricted share units, awarded (in shares) | [9],[10] | 58,200 | ||||||
2015 Restricted Share Units [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9],[10] | 101,850 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9],[10] | 101,850 | ||||||
Restricted share units, awarded (in shares) | [9],[10] | 101,850 | ||||||
2015 Restricted Share Units [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [10] | 28,378 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [10] | 28,378 | ||||||
Restricted share units, awarded (in shares) | [10] | 28,378 | ||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9],[11] | 58,404 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9],[11] | 58,404 | ||||||
Restricted share units, awarded (in shares) | [9],[11] | 58,404 | ||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9],[11] | 102,209 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9],[11] | 102,209 | ||||||
Restricted share units, awarded (in shares) | [9],[11] | 102,209 | ||||||
2014 Restricted Share Unit [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [11] | 29,087 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [11] | 29,087 | ||||||
Restricted share units, awarded (in shares) | [11] | 29,087 | ||||||
Tranche 2014 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,856 | ||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [11] | 5 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,856 | ||||||
Restricted share units, awarded (in shares) | [10],[11] | 21,856 | ||||||
Service period per tranche (in years) | [11] | 5 years | ||||||
Tranche 2014 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,856 | ||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [11] | 4 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,856 | ||||||
Restricted share units, awarded (in shares) | [10],[11] | 21,856 | ||||||
Service period per tranche (in years) | [11] | 4 years | ||||||
Tranche 2015 [Member] | 2015 Restricted Share Units [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [10] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Holding period per tranche (in years) | [10] | 3 years | ||||||
Tranche 2015 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,847 | ||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [11] | 4 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,847 | ||||||
Restricted share units, awarded (in shares) | [10],[11] | 21,847 | ||||||
Service period per tranche (in years) | [11] | 4 years | ||||||
Tranche 2015 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,847 | ||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [11] | 3 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [10],[11] | 21,847 | ||||||
Restricted share units, awarded (in shares) | [10],[11] | 21,847 | ||||||
Service period per tranche (in years) | [11] | 3 years | ||||||
Tranche 2016 [Member] | 2016 Restricted Share Units [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [9] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [9] | 2 years | ||||||
Holding period per tranche (in years) | [9] | 3 years | ||||||
Tranche 2016 [Member] | 2015 Restricted Share Units [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [10] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Holding period per tranche (in years) | [10] | 2 years | ||||||
Tranche 2016 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [11] | 3 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [11] | 3 years | ||||||
Tranche 2016 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [11] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [11] | 2 years | ||||||
Tranche 2017 [Member] | 2016 Restricted Share Units [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [9] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [9] | 2 years | ||||||
Holding period per tranche (in years) | [9] | 2 years | ||||||
Tranche 2017 [Member] | 2015 Restricted Share Units [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [10] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Holding period per tranche (in years) | [10] | 1 year | ||||||
Tranche 2018 [Member] | 2016 Restricted Share Units [Member] | ||||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Vesting period | [9] | 2 years | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [9] | 2 years | ||||||
Holding period per tranche (in years) | [9] | 1 year | ||||||
2014 Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuances (in shares) | 918,080 | |||||||
[1] | Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. | |||||||
[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 $51.36 per common share at December 31, 2015 for the 1,251,601 options and stock appreciation rights that were in-the-money at December 31, 2015. | |||||||
[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 $49.06 per common share at March 31, 2016 for the approximately 1,098,652 options and stock appreciation rights that were in-the-money at March 31, 2016. | |||||||
[4] | The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. | |||||||
[5] | These shares represent forfeitures resulting from recipients whose employment terminated during the year-to-date period ended March 31, 2016. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by the Company at the time of termination. | |||||||
[6] | 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. | |||||||
[7] | Reflects conversion of restricted share units issued in prior years to restricted share awards. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain soundness targets over each year of the subsequent vesting period. Half of the awards include a four year vesting period with the remainder include a three year vesting period. | |||||||
[8] | 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. | |||||||
[9] | The named executive officers are awarded a range of awards that may be earned based on attainment of goals at a target level of performance to the maximum level of performance. | |||||||
[10] | Restricted stock unit awards granted in 2016 and 2015 will be earned and settled in shares of Pinnacle Financial common stock. | |||||||
[11] | Forfeiture restrictions on one half of the units previously settled with the issuance of restricted shares will lapse commensurate with the filing of Pinnacle Financial's Form 10-K for the year ended December 31, 2017 while the restrictions on the other one half of the shares will lapse with the filing of Pinnacle Financial's Form 10-K for the year ended December 31, 2018, in each case if Pinnacle Bank achieves the soundness targets applicable to such shares as of fiscal year end dates. |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | ||
Mar. 31, 2016 | Dec. 31, 2014 | ||
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 | $ 0.14 | $ 0.08 | |
Pinnacle Financial [Member] | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | |||
Cash dividends paid to Pinnacle Financial by Pinnacle Bank | $ 6,400 | ||
Amount available for dividend distribution without prior approval from TDFI | $ 146,900 | ||
Compliance with regulatory capital requirements [Abstract] | |||
Common Equity Tier I capital to risk weighted assets: | 4.50% | ||
Actual Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 918,456 | ||
Tier I capital to risk weighted assets: | 726,580 | ||
Common Equity Tier I Capital to risk weighted assets: | 646,458 | ||
Tier I capital to average assets: | [1] | $ 726,580 | |
Actual Ratio [Abstract] | |||
Total capital to risk weighted assets: | 11.10% | ||
Tier I capital to risk weighted assets: | 8.70% | ||
Common Equity Tier I Capital to Risk Weighted Assets | 7.80% | ||
Tier I capital to average assets: | [1] | 8.80% | |
Regulatory Minimum Capital Requirement Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 664,333 | ||
Tier I capital to risk weighted assets: | 498,250 | ||
Common Equity Tier I Risk Based Capital to risk weighted assets: | 373,687 | ||
Tier I capital to average assets: | [1] | $ 330,435 | |
Regulatory Minimum Capital Requirement Ratio [Abstract] | |||
Total capital to risk weighted assets: | 8.00% | ||
Tier I capital to risk weighted assets: | 6.00% | ||
Tier I capital to average assets: | [1] | 4.00% | |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 830,416 | ||
Tier I capital to risk weighted assets: | 664,333 | ||
Common Equity Tier I capital to risk weighted assets: | 539,771 | ||
Tier I capital to average assets: | 413,043 | ||
Common Equity Tier I capital to risk weighted assets: | $ 539,771 | ||
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | |||
Total capital to risk weighted assets: | 10.00% | ||
Tier I capital to risk weighted assets: | 8.00% | ||
Common Equity Tier I capital to risk weighted assets: | 6.50% | ||
Pinnacle Bank [Member] | |||
Compliance with regulatory capital requirements [Abstract] | |||
Common Equity Tier I capital to risk weighted assets: | 4.50% | ||
Actual Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 882,941 | ||
Tier I capital to risk weighted assets: | 691,065 | ||
Common Equity Tier I Capital to risk weighted assets: | 690,942 | ||
Tier I capital to average assets: | [1] | $ 691,065 | |
Actual Ratio [Abstract] | |||
Total capital to risk weighted assets: | 10.70% | ||
Tier I capital to risk weighted assets: | 8.30% | ||
Common Equity Tier I Capital to Risk Weighted Assets | 8.30% | ||
Tier I capital to average assets: | [1] | 8.40% | |
Regulatory Minimum Capital Requirement Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 663,466 | ||
Tier I capital to risk weighted assets: | 497,600 | ||
Common Equity Tier I Risk Based Capital to risk weighted assets: | 373,200 | ||
Tier I capital to average assets: | [1] | $ 330,244 | |
Regulatory Minimum Capital Requirement Ratio [Abstract] | |||
Total capital to risk weighted assets: | 8.00% | ||
Tier I capital to risk weighted assets: | 6.00% | ||
Tier I capital to average assets: | [1] | 4.00% | |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | |||
Total capital to risk weighted assets: | $ 829,333 | ||
Tier I capital to risk weighted assets: | 663,466 | ||
Common Equity Tier I capital to risk weighted assets: | 539,066 | ||
Tier I capital to average assets: | [1] | 412,805 | |
Common Equity Tier I capital to risk weighted assets: | $ 539,066 | ||
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | |||
Total capital to risk weighted assets: | 10.00% | ||
Tier I capital to risk weighted assets: | 8.00% | ||
Common Equity Tier I capital to risk weighted assets: | 6.50% | ||
Tier I capital to average assets: | [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 | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2016 | Dec. 31, 2015 | ||
Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | $ 940,110 | $ 792,224 | |
Estimated fair value of interest rate swap | $ (360) | $ (199) | |
Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Jul. 1, 2014 | Jul. 1, 2014 | |
Higher maturity range date term | 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 | $ 470,055 | $ 396,112 | |
Estimated fair value of interest rate swap | 28,356 | 16,130 | |
Pay Variable / Receive Fixed Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | 470,055 | 396,112 | |
Estimated fair value of interest rate swap | $ (28,716) | $ (16,329) | |
Interest Rate Swap April 2016 April 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | [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% | |
Higher maturity range date term | [1] | Apr. 1, 2020 | Apr. 1, 2020 |
Interest rate derivative assets, at fair value | $ (1,595) | $ (784) | |
Unrealized gain in accumulated other comprehensive income | $ (969) | $ (476) | |
Interest Rate Swap April 2016 April 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | [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% | |
Higher maturity range date term | [1] | Apr. 1, 2022 | Apr. 1, 2022 |
Interest rate derivative assets, at fair value | $ (2,766) | $ (1,478) | |
Unrealized gain in accumulated other comprehensive income | $ (1,681) | $ (898) | |
Interest Rate Swap October 2016 October 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | [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% | |
Higher maturity range date term | [1] | Oct. 1, 2020 | Oct. 1, 2020 |
Interest rate derivative assets, at fair value | $ (1,837) | $ (908) | |
Unrealized gain in accumulated other comprehensive income | (1,116) | (552) | |
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 | $ 1,321 | $ 663 | |
Unrealized gain in accumulated other comprehensive income | $ 803 | $ 403 | |
Interest Rate Swap July 2014 July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Jul. 1, 2014 | Jul. 1, 2014 | |
Forecasted notional amount | $ 25,000 | $ 25,000 | |
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 2.27% | 2.27% | |
Higher maturity range date term | Jul. 1, 2022 | Jul. 1, 2022 | |
Interest rate derivative assets, at fair value | $ 1,826 | $ 968 | |
Unrealized gain in accumulated other comprehensive income | $ 1,110 | 588 | |
Interest Rate Swap July 2014 July 2023 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | 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% | |
Higher maturity range date term | Jul. 1, 2023 | Jul. 1, 2023 | |
Interest rate derivative assets, at fair value | $ 2,393 | $ 1,320 | |
Unrealized gain in accumulated other comprehensive income | 1,454 | 802 | |
Interest Rate Swap July 2014 July 2024 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 30,000 | $ 30,000 | |
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 2.50% | 2.50% | |
Higher maturity range date term | Jul. 1, 2024 | Jul. 1, 2024 | |
Interest rate derivative assets, at fair value | $ 2,421 | $ 1,333 | |
Unrealized gain in accumulated other comprehensive income | $ 1,471 | $ 810 | |
Interest Rate Swap October 2017 October 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | [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% | |
Higher maturity range date term | [1] | Oct. 1, 2021 | Oct. 1, 2021 |
Interest rate derivative assets, at fair value | $ (2,067) | $ (1,112) | |
Unrealized gain in accumulated other comprehensive income | $ (1,256) | $ (676) | |
Interest Rate Swap April 2018 July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | [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% | |
Higher maturity range date term | [1] | Jul. 1, 2022 | Jul. 1, 2022 |
Interest rate derivative assets, at fair value | $ (2,159) | $ (1,170) | |
Unrealized gain in accumulated other comprehensive income | $ (1,312) | $ (711) | |
Interest Rate Swap July 2018 October 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | [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% | |
Higher maturity range date term | [1] | Oct. 1, 2022 | Oct. 1, 2022 |
Interest rate derivative assets, at fair value | $ (2,134) | $ (1,158) | |
Unrealized gain in accumulated other comprehensive income | $ (1,297) | $ (704) | |
Interest Rate Swap August 2015 - August 2018 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Aug. 1, 2015 | Aug. 1, 2015 | |
Forecasted notional amount | $ 15,000 | $ 15,000 | |
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 1.048% | 1.048% | |
Higher maturity range date term | Aug. 1, 2018 | Aug. 1, 2018 | |
Interest rate derivative assets, at fair value | $ 114 | $ (46) | |
Unrealized gain in accumulated other comprehensive income | $ 69 | $ (28) | |
Interest Rate Swap August 2015 - August 2019 [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Aug. 1, 2015 | ||
Forecasted notional amount | $ 15,000 | ||
Variable interest rate | 1 month LIBOR | ||
Fixed interest rate | 1.281% | ||
Higher maturity range date term | Aug. 1, 2019 | ||
Interest rate derivative assets, at fair value | $ (34) | ||
Unrealized gain in accumulated other comprehensive income | $ (21) | ||
Interest Rate Swap August 2015 - August 2019 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Aug. 1, 2015 | ||
Forecasted notional amount | $ 15,000 | ||
Variable interest rate | 1 month LIBOR | ||
Fixed interest rate | 1.281% | ||
Higher maturity range date term | Aug. 1, 2019 | ||
Interest rate derivative assets, at fair value | $ 222 | ||
Unrealized gain in accumulated other comprehensive income | $ 135 | ||
Interest Rate Swap August 2015 - August 2020 [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Aug. 1, 2015 | ||
Forecasted notional amount | $ 15,000 | ||
Variable interest rate | 1 month LIBOR | ||
Fixed interest rate | 1.47% | ||
Higher maturity range date term | Aug. 1, 2020 | ||
Interest rate derivative assets, at fair value | $ (14) | ||
Unrealized gain in accumulated other comprehensive income | $ (9) | ||
Interest Rate Swap August 2015 - August 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Aug. 1, 2015 | ||
Forecasted notional amount | $ 15,000 | ||
Variable interest rate | 1 month LIBOR | ||
Fixed interest rate | 1.47% | ||
Higher maturity range date term | Aug. 1, 2020 | ||
Interest rate derivative assets, at fair value | $ 329 | ||
Unrealized gain in accumulated other comprehensive income | $ 200 | ||
[1] | No cash will be exchanged prior to the term. |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2016 | Mar. 31, 2015 | Dec. 31, 2015 | ||
Investment securities available for sale [Abstract] | ||||
U.S. Treasury Securities | $ 0 | |||
U.S. government agency securities | 129,467 | $ 128,193 | ||
Mortgage-backed securities | 665,709 | 582,916 | ||
State and municipal securities | 165,745 | 165,042 | ||
Agency- backed securities | 47,013 | 48,801 | ||
Corporate notes and other | 9,396 | 10,113 | ||
Total investment securities available-for-sale | 1,017,330 | 935,065 | ||
Other investments | 10,128 | 9,764 | ||
Other assets | 27,072 | 15,147 | ||
Total assets at fair value | 1,054,530 | 959,976 | ||
Liabilities at fair value [Abstract] | ||||
Other liabilities | 29,205 | 16,568 | ||
Total liabilities at fair value | 29,205 | 16,568 | ||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | ||||
Other real estate owned | 4,687 | 5,083 | ||
Nonperforming loans, net | [1] | 30,511 | 18,598 | |
Total | 35,198 | 23,681 | ||
Gain (losses) on Other real estate owned | (32) | (41) | ||
Gain (losses) on Impaired loans, net | [1] | (1,877) | (2,637) | |
Total gains (losses) | (1,909) | (2,678) | ||
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 | 4,687 | 5,083 | ||
Nonperforming loans, net | [1] | 30,511 | 18,598 | |
Total | 35,198 | 23,681 | ||
Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | ||||
Investment securities available for sale [Abstract] | ||||
U.S. Treasury Securities | 0 | |||
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. Treasury Securities | 0 | |||
U.S. government agency securities | 129,467 | 128,193 | ||
Mortgage-backed securities | 665,709 | 582,916 | ||
State and municipal securities | 165,745 | 165,042 | ||
Agency- backed securities | 47,013 | 48,801 | ||
Corporate notes and other | 9,396 | 10,113 | ||
Total investment securities available-for-sale | 1,017,330 | 935,065 | ||
Other investments | 0 | 0 | ||
Other assets | 27,072 | 15,147 | ||
Total assets at fair value | 1,044,402 | 950,212 | ||
Liabilities at fair value [Abstract] | ||||
Other liabilities | 29,205 | 16,568 | ||
Total liabilities at fair value | 29,205 | 16,568 | ||
Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | ||||
Investment securities available for sale [Abstract] | ||||
U.S. Treasury Securities | 0 | |||
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 | 10,128 | 9,764 | ||
Other assets | 0 | 0 | ||
Total assets at fair value | 10,128 | 9,764 | ||
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 | 9,764 | 8,004 | 8,004 | |
Total net realized (losses) gains included in income | 177 | 95 | ||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at March 31 | 0 | 0 | ||
Purchases | 325 | 121 | ||
Issuances | 0 | 0 | ||
Settlements | (138) | (470) | ||
Transfers out of Level 3 | 0 | 0 | ||
Fair value, March 31 | 10,128 | 7,750 | $ 9,764 | |
Total net realized (losses) gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 | $ 177 | $ 95 | ||
[1] | Amount is net of a valuation allowance of $2.3 million at March 31, 2016 and $3.7 million at December 31, 2015, respectively, as required by ASC 310-10, "Receivables." |
Fair Value of Financial Instr49
Fair Value of Financial Instruments, 2 (Details) - USD ($) | Mar. 31, 2016 | Dec. 31, 2015 | |
Carrying Amount / Notional Amount [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | $ 31,089,000 | $ 31,377,000 | |
Loans, net | 6,765,690,000 | 6,477,803,000 | |
Mortgage loans held-for-sale | 35,437,000 | 47,930,000 | |
Loans Held-for-sale, Fair Value Disclosure | 10,504,000 | ||
Mortgage servicing rights fair value disclosure | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 7,143,014,000 | 7,050,498,000 | |
Federal Home Loan Bank advances | 616,290,000 | 300,305,000 | |
Subordinated debt and other borrowings | 209,751,000 | 142,476,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 2,529,273,000 | 2,218,784,000 |
Standby letters of credit | [2] | 100,940,000 | 93,534,000 |
Securities held-to-maturity | 31,521,474 | 31,585,303 | |
Valuation allowance of impaired loans | 2,300,000 | 3,700,000 | |
Commitments to Extend Credit [Member] | |||
Off-balance sheet instruments [Abstract] | |||
Off-balance sheet commitments | 1,300,000 | 1,300,000 | |
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 | ||
Mortgage servicing rights 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 | 31,521,000 | 31,586,000 | |
Loans, net | 0 | 0 | |
Mortgage loans held-for-sale | 36,188,000 | 48,365,000 | |
Loans Held-for-sale, Fair Value Disclosure | 10,722,000 | ||
Mortgage servicing rights 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 | 6,678,330,000 | 6,379,153,000 | |
Mortgage loans held-for-sale | 0 | 0 | |
Loans Held-for-sale, Fair Value Disclosure | 0 | ||
Mortgage servicing rights fair value disclosure | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 6,770,220,000 | 6,562,509,000 | |
Federal Home Loan Bank advances | 616,636,000 | 299,214,000 | |
Subordinated debt and other borrowings | 189,239,000 | 131,494,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 886,000 | 1,017,000 |
Standby letters of credit | [2] | 451,000 | 354,000 |
Estimate of Fair Value Measurement [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | [3] | 31,521,000 | 31,586,000 |
Loans, net | [3] | 6,678,330,000 | 6,379,153,000 |
Mortgage loans held-for-sale | [3] | 36,188,000 | 48,365,000 |
Loans Held-for-sale, Fair Value Disclosure | [3] | 10,722,000 | |
Mortgage servicing rights fair value disclosure | [3] | 0 | |
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | [3] | 6,770,220,000 | 6,562,509,000 |
Federal Home Loan Bank advances | [3] | 616,636,000 | 299,214,000 |
Subordinated debt and other borrowings | [3] | 189,239,000 | 131,494,000 |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1],[3] | 886,000 | 1,017,000 |
Standby letters of credit | [2],[3] | $ 451,000 | $ 354,000 |
[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 March 31, 2016 and December 31, 2014, Pinnacle Financial included in other $0.9 million and $1.0 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. | ||
[2] | At March 31, 2016 and December 31, 2015, the fair value of Pinnacle Financial's standby letters of credit was $451,000 and $354,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. | ||
[3] | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |
Other borrowings (Details)
Other borrowings (Details) - USD ($) $ in Millions | Mar. 29, 2016 | Mar. 10, 2016 | Jul. 30, 2015 | Mar. 31, 2016 | Dec. 31, 2015 |
Loan Agreement [Member] | One Month LIBOR [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 2.25% | ||||
The Notes [Member] | |||||
Debt Instrument [Line Items] | |||||
Additional face amount | $ 70 | ||||
Purchase price percentage | 99.023% | ||||
Interest rate effective percentage | 5.125% | ||||
Face amount | $ 130 | $ 128.3 | $ 60 | ||
Maturity date | Jul. 30, 2025 | ||||
Percentage of redemption price | 100.00% | ||||
Interest rate on note | 4.875% | ||||
Net proceed from issuance note | $ 68.3 | ||||
The Notes [Member] | Three-Months LIBOR [Member] | |||||
Debt Instrument [Line Items] | |||||
Basis spread on variable rate | 3.128% | ||||
Pinnacle Bank [Member] | Minimum [Member] | |||||
Debt Instrument [Line Items] | |||||
Loan agreement bore interest rate | 0.00% | ||||
Pinnacle Bank [Member] | Revolving Credit Facility [Member] | Loan Agreement [Member] | |||||
Debt Instrument [Line Items] | |||||
Maximum borrowing capacity | $ 75 | ||||
Fee percentage | 0.35% | ||||
Outstanding borrowings | $ 0 |