Document and Entity Information
Document and Entity Information - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Feb. 24, 2017 | Jun. 30, 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 Public Float | $ 1,948,490,746 | ||
Entity Common Stock, Shares Outstanding | 49,761,376 | ||
Document Fiscal Year Focus | 2,016 | ||
Document Fiscal Period Focus | FY | ||
Document Type | 10-K | ||
Amendment Flag | false | ||
Document Period End Date | Dec. 31, 2016 |
CONSOLIDATED BALANCE SHEETS
CONSOLIDATED BALANCE SHEETS - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Cash and noninterest-bearing due from banks | $ 84,732,291 | $ 75,078,807 |
Interest-bearing due from banks | 97,529,713 | 219,202,464 |
Federal funds sold and other | 1,383,416 | 26,670,062 |
Cash and cash equivalents | 183,645,420 | 320,951,333 |
Securities available-for-sale, at fair value | 1,298,546,056 | 935,064,745 |
Securities held-to-maturity (fair value of $25,233,254 and $31,585,303 at December 31, 2016 and December 31, 2015, respectively) | 25,251,316 | 31,376,840 |
Mortgage loans held-for-sale | 47,710,120 | 47,930,253 |
Commercial loans held-for-sale | 22,587,971 | 0 |
Loans | 8,449,924,736 | 6,543,235,381 |
Less allowance for loan losses | (58,980,475) | (65,432,354) |
Loans, net | 8,390,944,261 | 6,477,803,027 |
Premises and equipment, net | 88,904,145 | 77,923,607 |
Equity method investment | 205,359,844 | 88,880,014 |
Accrued interest receivable | 28,234,826 | 21,574,096 |
Goodwill | 551,593,796 | 432,232,255 |
Core deposits and other intangible assets | 15,104,038 | 10,540,497 |
Other real estate owned | 6,089,804 | 5,083,218 |
Other assets | 330,651,002 | 265,183,799 |
Total assets | 11,194,622,599 | 8,714,543,684 |
Deposits: | ||
Non-interest-bearing | 2,399,191,152 | 1,889,865,113 |
Interest-bearing | 1,808,331,784 | 1,389,548,175 |
Savings and money market accounts | 3,714,930,351 | 3,001,950,725 |
Time | 836,853,761 | 690,049,795 |
Total deposits | 8,759,307,048 | 6,971,413,808 |
Securities sold under agreements to repurchase | 85,706,558 | 79,084,298 |
Federal Home Loan Bank advances | 406,304,187 | 300,305,226 |
Subordinated debt and other borrowings | 350,768,050 | 141,605,504 |
Accrued interest payable | 5,573,377 | 2,593,209 |
Other liabilities | 90,267,267 | 63,930,339 |
Total liabilities | 9,697,926,487 | 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; 46,359,377 and 40,906,064 issued and outstanding at December 31, 2016 and 2015 | 46,359,377 | 40,906,064 |
Additional paid-in capital | 1,083,490,728 | 839,617,050 |
Retained earnings | 381,072,505 | 278,573,408 |
Accumulated other comprehensive loss, net of taxes | (14,226,498) | (3,485,222) |
Total stockholders' equity | 1,496,696,112 | 1,155,611,300 |
Total liabilities and stockholders' equity | $ 11,194,622,599 | $ 8,714,543,684 |
CONSOLIDATED BALANCE SHEETS (Pa
CONSOLIDATED BALANCE SHEETS (Parenthetical) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
ASSETS | ||
Securities held-to-maturity, fair value | $ 25,233,254 | $ 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) | 46,359,377 | 40,906,064 |
Common stock, shares outstanding (in shares) | 46,359,377 | 40,906,064 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Interest income: | |||
Loans, including fees | $ 335,734,531 | $ 232,847,334 | $ 184,648,800 |
Securities: | |||
Taxable | 19,178,997 | 15,060,392 | 14,227,172 |
Tax-exempt | 6,014,037 | 5,783,443 | 6,167,264 |
Federal funds sold and other | 2,681,363 | 1,478,711 | 1,126,726 |
Total interest income | 363,608,928 | 255,169,880 | 206,169,962 |
Interest expense: | |||
Deposits | 23,917,318 | 13,209,425 | 9,953,930 |
Securities sold under agreements to repurchase | 185,305 | 138,347 | 140,623 |
Federal Home Loan Bank advances and other borrowings | 14,512,024 | 5,189,193 | 3,090,860 |
Total interest expense | 38,614,647 | 18,536,965 | 13,185,413 |
Net interest income | 324,994,281 | 236,632,915 | 192,984,549 |
Provision for loan losses | 18,328,058 | 9,188,497 | 3,634,660 |
Net interest income after provision for loan losses | 306,666,223 | 227,444,418 | 189,349,889 |
Noninterest income: | |||
Service charges on deposit accounts | 14,500,679 | 12,745,742 | 11,707,274 |
Investment services | 10,757,348 | 9,971,313 | 9,382,670 |
Insurance sales commissions | 5,309,494 | 4,824,007 | 4,612,583 |
Gains on mortgage loans sold, net | 15,754,473 | 7,668,960 | 5,630,371 |
Investment gains on sales and impairments, net | 395,186 | 552,063 | 29,221 |
Trust fees | 6,328,021 | 5,461,257 | 4,601,036 |
Income from equity method investment | 31,402,923 | 20,591,484 | 0 |
Other noninterest income | 36,554,938 | 24,715,442 | 16,639,323 |
Total noninterest income | 121,003,062 | 86,530,268 | 52,602,478 |
Noninterest expense: | |||
Salaries and employee benefits | 140,818,772 | 105,928,914 | 88,319,567 |
Equipment and occupancy | 35,071,654 | 27,241,477 | 24,087,335 |
Other real estate expense (benefit), net | 395,561 | (305,956) | 664,289 |
Marketing and other business development | 6,536,484 | 4,863,307 | 4,127,949 |
Postage and supplies | 3,929,323 | 3,228,300 | 2,391,838 |
Amortization of intangibles | 4,281,459 | 1,973,953 | 947,678 |
Merger related expense | 11,746,584 | 4,797,018 | 0 |
Other noninterest expense | 33,505,586 | 23,149,743 | 15,761,027 |
Total noninterest expense | 236,285,423 | 170,876,756 | 136,299,683 |
Income before income taxes | 191,383,862 | 143,097,930 | 105,652,684 |
Income tax expense | 64,159,167 | 47,588,528 | 35,181,517 |
Net income | $ 127,224,695 | $ 95,509,402 | $ 70,471,167 |
Per share information: | |||
Basic net income per common share (in dollars per share) | $ 2.96 | $ 2.58 | $ 2.03 |
Diluted net income per common share (in dollars per share) | $ 2.91 | $ 2.52 | $ 2.01 |
Weighted average common shares outstanding: | |||
Basic (in shares) | 43,037,083 | 37,015,468 | 34,723,335 |
Diluted (in shares) | 43,731,992 | 37,973,788 | 35,126,890 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | |||
Net income: | $ 127,224,695 | $ 95,509,402 | $ 70,471,167 |
Other comprehensive income (loss), net of tax: | |||
Change in fair value on available-for-sale securities, net of tax | (9,700,933) | (5,582,965) | 11,900,309 |
Change in fair value of cash flow hedges, net of tax | (800,188) | (1,725,136) | (3,699,569) |
Net gain on sale of investment securities reclassified from other comprehensive income into net income, net of tax | (240,155) | (335,489) | (17,758) |
Total other comprehensive income (loss), net of tax | (10,741,276) | (7,643,590) | 8,182,982 |
Total comprehensive income (loss) | $ 116,483,419 | $ 87,865,812 | $ 78,654,149 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY - USD ($) | Common Stock [Member] | Common Stock [Member]Bankers Healthcare Group, LLC [Member] | Common Stock [Member]Avenue Financial Holdings, Inc. (Avenue) [Member] | Common Stock [Member]CapitalMark Bank & Trust [Member] | Common Stock [Member]Magna Bank [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Bankers Healthcare Group, LLC [Member] | Additional Paid-in Capital [Member]Avenue Financial Holdings, Inc. (Avenue) [Member] | Additional Paid-in Capital [Member]CapitalMark Bank & Trust [Member] | Additional Paid-in Capital [Member]Magna Bank [Member] | Retained Earnings [Member] | Retained Earnings [Member]Bankers Healthcare Group, LLC [Member] | Retained Earnings [Member]Avenue Financial Holdings, Inc. (Avenue) [Member] | Retained Earnings [Member]CapitalMark Bank & Trust [Member] | Retained Earnings [Member]Magna Bank [Member] | Accumulated Other Comprehensive Income (Loss) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Bankers Healthcare Group, LLC [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Avenue Financial Holdings, Inc. (Avenue) [Member] | Accumulated Other Comprehensive Income (Loss) [Member]CapitalMark Bank & Trust [Member] | Accumulated Other Comprehensive Income (Loss) [Member]Magna Bank [Member] | Total | Bankers Healthcare Group, LLC [Member] | Avenue Financial Holdings, Inc. (Avenue) [Member] | CapitalMark Bank & Trust [Member] | Magna Bank [Member] |
Balance at Dec. 31, 2013 | $ 35,221,941 | $ 550,212,135 | $ 142,298,199 | $ (4,024,614) | $ 723,707,661 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2013 | 35,221,941 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 302,403 | 8,444,894 | 0 | 0 | 8,747,297 | ||||||||||||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 302,403 | ||||||||||||||||||||||||
Issuance of restricted common shares, net of forfeitures | $ 277,187 | (277,187) | 0 | 0 | 0 | ||||||||||||||||||||
Issuance of restricted common shares, net of forfeitures (in shares) | 277,187 | ||||||||||||||||||||||||
Common stock issued in conjunction with acquisition | 0 | ||||||||||||||||||||||||
Restricted shares withheld for taxes | $ (69,048) | (2,256,560) | 0 | 0 | (2,325,608) | ||||||||||||||||||||
Restricted shares withheld for taxes (in shares) | (69,048) | ||||||||||||||||||||||||
Compensation expense for restricted shares | $ 0 | 5,308,167 | 0 | 0 | 5,308,167 | ||||||||||||||||||||
Common dividends paid | 0 | 0 | (11,398,285) | 0 | (11,398,285) | ||||||||||||||||||||
Net income | 0 | 0 | 70,471,167 | 0 | 70,471,167 | ||||||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | 8,182,982 | 8,182,982 | ||||||||||||||||||||
Balance at Dec. 31, 2014 | $ 35,732,483 | 561,431,449 | 201,371,081 | 4,158,368 | 802,693,381 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2014 | 35,732,483 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 304,313 | 7,187,629 | 0 | 0 | 7,491,942 | ||||||||||||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 304,313 | ||||||||||||||||||||||||
Issuance of restricted common shares, net of forfeitures | $ 257,218 | (257,218) | 0 | 0 | 0 | ||||||||||||||||||||
Issuance of restricted common shares, net of forfeitures (in shares) | 257,218 | ||||||||||||||||||||||||
Common stock issued in conjunction with acquisition | $ 3,306,184 | $ 1,371,717 | $ 202,648,875 | $ 62,166,214 | $ 0 | $ 0 | $ 0 | $ 0 | 269,492,990 | $ 205,955,059 | $ 63,537,931 | ||||||||||||||
Common stock issued in conjunction with acquisition (in shares) | 3,306,184 | 1,371,717 | |||||||||||||||||||||||
Restricted shares withheld for taxes | $ (65,851) | (901,502) | 0 | 0 | (967,353) | ||||||||||||||||||||
Restricted shares withheld for taxes (in shares) | (65,851) | ||||||||||||||||||||||||
Compensation expense for restricted shares | $ 0 | 7,341,603 | 0 | 0 | 7,341,603 | ||||||||||||||||||||
Common dividends paid | (18,307,075) | (18,307,075) | |||||||||||||||||||||||
Net income | 95,509,402 | 95,509,402 | |||||||||||||||||||||||
Other comprehensive income (loss) | 0 | (7,643,590) | (7,643,590) | ||||||||||||||||||||||
Balance at Dec. 31, 2015 | $ 40,906,064 | 839,617,050 | 278,573,408 | (3,485,222) | 1,155,611,300 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2015 | 40,906,064 | ||||||||||||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||||||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 699,810 | 16,736,365 | 0 | 0 | 17,436,175 | ||||||||||||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 699,810 | ||||||||||||||||||||||||
Issuance of restricted common shares, net of forfeitures | $ 200,098 | (200,098) | 0 | 0 | 0 | ||||||||||||||||||||
Issuance of restricted common shares, net of forfeitures (in shares) | 200,098 | ||||||||||||||||||||||||
Common stock issued in conjunction with acquisition | $ 860,470 | $ 3,760,326 | $ 38,833,566 | $ 178,708,278 | $ 0 | $ 0 | $ 0 | $ 0 | 222,162,640 | $ 39,694,036 | $ 182,468,604 | ||||||||||||||
Common stock issued in conjunction with acquisition (in shares) | 860,470 | 3,760,326 | |||||||||||||||||||||||
Restricted shares withheld for taxes | $ (67,391) | (1,175,282) | 0 | 0 | (1,242,673) | ||||||||||||||||||||
Restricted shares withheld for taxes (in shares) | (67,391) | ||||||||||||||||||||||||
Compensation expense for restricted shares | $ 0 | 10,970,849 | 0 | 0 | 10,970,849 | ||||||||||||||||||||
Common dividends paid | 0 | 0 | (24,725,598) | 0 | (24,725,598) | ||||||||||||||||||||
Net income | 0 | 0 | 127,224,695 | 0 | 127,224,695 | ||||||||||||||||||||
Other comprehensive income (loss) | 0 | 0 | 0 | (10,741,276) | (10,741,276) | ||||||||||||||||||||
Balance at Dec. 31, 2016 | $ 46,359,377 | $ 1,083,490,728 | $ 381,072,505 | $ (14,226,498) | $ 1,496,696,112 | ||||||||||||||||||||
Balance (in shares) at Dec. 31, 2016 | 46,359,377 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Operating activities: | |||
Net income | $ 127,224,695 | $ 95,509,402 | $ 70,471,167 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Net amortization/accretion of premium/discount on securities | 8,630,048 | 5,231,583 | 4,526,497 |
Depreciation and amortization | 16,995,490 | 10,268,576 | 9,282,197 |
Provision for loan losses | 18,328,058 | 9,188,497 | 3,634,660 |
Investment gains on sales and impairments, net | (395,186) | (552,063) | (29,221) |
Gain on mortgage loans sold, net | (15,754,473) | (7,668,960) | (5,630,371) |
Stock-based compensation expense | 10,970,849 | 7,341,603 | 5,308,167 |
Deferred tax expense | 14,390,035 | 5,819,463 | 394,452 |
Losses (gains) on disposition of other real estate and other investments | 140,992 | (433,911) | (74,807) |
Gains from equity method investment | (31,402,923) | (20,591,484) | 0 |
Excess tax benefit from stock compensation | (4,604,007) | (4,116,120) | (1,698,521) |
Gain on other loans sold, net | (885,320) | 0 | 0 |
Other loans held for sale: | |||
Loans originated | (112,669,589) | 0 | 0 |
Loans sold | 90,966,938 | 0 | 0 |
Mortgage loans held for sale: | |||
Loans originated | (784,213,817) | (524,679,767) | (331,135,205) |
Loans sold | 803,498,453 | 519,134,000 | 335,577,000 |
Decrease (increase) in other assets | (17,411,223) | (2,359,490) | 4,014,267 |
Decrease (increase) in other liabilities | 2,829,656 | (7,487,499) | 417,873 |
Net cash provided by operating activities | 126,638,676 | 84,603,830 | 95,058,155 |
Activities in securities available-for-sale: | |||
Purchases | (583,330,035) | (342,192,699) | (149,051,923) |
Sales | 72,829,440 | 189,029,458 | 2,360,478 |
Maturities, prepayments and calls | 280,805,769 | 146,441,236 | 123,949,792 |
Activities in securities held-to-maturity: | |||
Purchases | (560,000) | (1,550,995) | (923,652) |
Sales | 0 | 0 | 0 |
Maturities, prepayments and calls | 6,200,000 | 8,185,000 | 1,229,874 |
Increase in loans, net | (966,207,993) | (668,297,036) | (455,357,214) |
Purchases of premises and equipment and software | (17,058,292) | (10,870,851) | (5,878,562) |
Proceeds from sales of software, premises and equipment | 2,187,381 | 782,482 | 0 |
Proceeds from sale of mortgage servicing rights | 6,747,626 | 0 | 0 |
Acquisitions, net of cash acquired | 17,608,471 | 5,876,592 | 0 |
Increase in equity method investment | (74,100,000) | (75,440,530) | 0 |
Dividends received from equity method investment | 28,982,009 | 7,152,000 | 0 |
Increase in other investments | (27,508,882) | (1,712,685) | (4,208,447) |
Net cash used in investing activities | (1,253,404,506) | (742,598,028) | (487,879,654) |
Financing activities: | |||
Net increase in deposits | 822,306,826 | 783,352,902 | 249,132,187 |
Net increase (decrease) in repurchase agreements | 6,622,260 | (32,784,245) | 23,529,404 |
Advances from Federal Home Loan Bank: | |||
Issuances | 1,934,000,000 | 1,135,000,000 | 790,000,000 |
Payments | (1,934,093,153) | (1,092,781,984) | (685,093,244) |
Proceeds from subordinated debt and other borrowings, net of issuance costs | 243,226,783 | 59,129,504 | 0 |
Repayment of other borrowings | (74,000,302) | (50,290,006) | (2,500,000) |
Principal payments of capital lease obligation | (70,401) | 0 | 0 |
Exercise of common stock options and stock appreciation rights, net of shares surrendered for taxes | 11,589,495 | 3,602,805 | 6,421,689 |
Excess tax benefit from stock compensation | 4,604,007 | 4,116,120 | 1,698,521 |
Common dividends paid | (24,725,598) | (18,307,075) | (11,398,285) |
Net cash provided by financing activities | 989,459,917 | 791,038,021 | 371,790,272 |
Net increase (decrease) in cash and cash equivalents | (137,305,913) | 133,043,823 | (21,031,227) |
Cash and cash equivalents, beginning of year | 320,951,333 | 187,907,510 | 208,938,737 |
Cash and cash equivalents, end of year | $ 183,645,420 | $ 320,951,333 | $ 187,907,510 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business — Subsequent Events disclosure below, on January 22, 2017, Pinnacle Financial and a wholly owned subsidiary of Pinnacle Financial entered into an Agreement and Plan of Merger with BNC Bancorp, a North Carolina corporation. Basis of Presentation — Use of Estimates — Impairment — Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. The Accounting Standards Codification (ASC) 350, Goodwill and Other Should Pinnacle Financial's common stock price decline or other impairment indicators become known, additional impairment testing of goodwill may be required. Should it be determined in a future period that the goodwill has become impaired, then a charge to earnings will be recorded in the period such determination is made. The following table presents activity for goodwill and other intangible assets: Goodwill Core deposit and other intangible assets Total Balance at December 31, 2015 $ 432,232 $ 10,540 $ 442,772 Acquisitions 122,672 8,845 131,517 Amortization - (4,281 ) (4,281 ) Change in purchase price allocation of previous acquisitions (3,125 ) - (3,125 ) Other changes (1) (185 ) - (185 ) Balance at December 31, 2016 $ 551,594 $ 15,104 $ 566,698 (1) Represents options exercised related to acquisitions which occurred prior to the adoption of ASC 718-20 Compensation The following table presents the gross carrying amount and accumulated amortization for the core deposit and other intangible assets, which are subject to amortization: December 31, 2016 December 31, 2015 Gross carrying amount $ 42,365 $ 33,520 Accumulated amortization (27,261 ) (22,980 ) Net book value 15,104 10,540 Cash Equivalents and Cash Flows — For the years ended December 31, 2016 2015 2014 Cash Payments: Interest $ 37,002,870 $ 17,435,292 $ 13,414,134 Income taxes paid 49,503,637 45,715,968 31,350,000 Noncash Transactions: Loans charged-off to the allowance for loan losses 31,112,118 21,148,034 7,702,661 Loans foreclosed upon with repossessions transferred to other real estate 4,453,060 341,342 4,649,852 Loans foreclosed upon with repossessions transferred to other repossessed assets 1,842,318 8,259,368 2,262,573 Common stock issued in connection with acquisitions 222,162,640 269,492,990 - Securities — Interest and dividends on securities, including amortization of premiums and accretion of discounts calculated under the effective interest method, are included in interest income. For certain securities, amortization of premiums and accretion of discounts is computed based on the anticipated life of the security which may be shorter than the stated life of the security. Realized gains and losses from the sale of securities are determined using the specific identification method, and are recorded on the trade date of the sale. Other-than-temporary Impairment — 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, 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. Resultantly, other-than-temporary charges may be incurred as management's intention related to a particular security changes. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of the securities' issuer 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. There is also a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and or recovery changes. Loans held-for-sale — L oa Loans — Loans are reported at their outstanding principal balances, net of the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued based on the principal balance outstanding. Loan origination fees, net of certain loan origination costs, are deferred and recognized as an adjustment to the related loan yield using a method which approximates the interest method. At December 31, 2016 and 2015, net deferred loan fees of $7.6 million and $4.2 million respectively, were included in loans on the accompanying consolidated balance sheets. As part of our routine credit monitoring process, commercial loans receive risk ratings by the assigned financial advisor and are subject to validation by our 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 outlined by Pinnacle Bank's primary federal regulator. At December 31, 2016, approximately 79% of Pinnacle Financial's loan portfolio was assigned a specifically assigned risk rating in the allowance for loan loss assessment. Certain consumer loans and commercial relationships that possess certain qualifying characteristics, including individually smaller balances, are generally not assigned an individual risk rating but are evaluated collectively for credit risk as a homogenous pool of loans and individually as either accrual or nonaccrual based on the performance of the loan. Loans are placed on nonaccrual status when there is a significant deterioration in the financial condition of the borrower, which generally is the case but is not limited to when the principal or interest is more than 90 days past due, unless the loan is both well-secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status is reversed against current interest income. Interest income is subsequently recognized only if certain cash payments are received while the loan is classified as nonaccrual, but interest income recognition is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. A nonaccrual loan is returned to accruing status once the loan has been brought current as to principal and interest and collection is reasonably assured or the loan has been well-secured through other techniques. All loans that are placed on nonaccrual status are further analyzed to determine if they should be classified as impaired loans. A loan is considered to be impaired when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan. This determination is made using a variety of techniques, which include a review of the borrower's financial condition, debt-service coverage ratios, global cash flow analysis, guarantor support, other loan file information, meetings with borrowers, inspection or reappraisal of collateral and/or consultation with legal counsel as well as results of reviews of other similar industry credits (e.g. builder loans, development loans, church loans, etc.). Loans are charged off when management believes that the full collectability of the loan is unlikely. As such, a loan may be partially charged-off after a "confirming event" has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. Purchased Loans At the time of acquisition, management evaluates all purchased loans using a variety of factors such as current classification or risk rating, past due status and history as a component of the fair value determination. For those purchased loans without evidence of credit deterioration, management evaluates each reviewed loan using an internal grading system with a grade assigned to each loan at the date of acquisition. To the extent that any purchased loan is not specifically reviewed, such loan is assumed to have characteristics similar to the characteristics of the specifically reviewed acquired portfolio of purchased loans. The grade for each purchased loan without evidence of credit deterioration is reviewed subsequent to the date of acquisition any time a loan is renewed or extended or at any time information becomes available to Pinnacle Financial that provides material insight regarding the loan's performance, the borrower's capacity to repay or the underlying collateral. In determining the Day 1 Fair Values of purchased loans without evidence of post-origination credit deterioration at the date of acquisition, management includes (i) no carry over of any previously recorded ALL and (ii) an adjustment of the unpaid principal balance to reflect an appropriate market rate of interest and expected loss, given the risk profile and grade assigned to each loan. This adjustment is accreted into earnings as a yield adjustment, using the effective yield method, over the remaining life of each loan. Purchased loans that contain evidence of credit deterioration on the date of purchase are individually evaluated by management to determine the estimated fair value of each loan. This evaluation includes no carryover of any previously recorded ALL. In determining the estimated fair value of purchased loans with evidence of credit deterioration, management considers a number of factors including, among other things, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods, and net present value of cash flows expected to be received. In determining the Day 1 Fair Values of purchased loans with evidence of credit deterioration, management calculates a non-accretable difference (the credit risk component of the purchased loans) and an accretable difference (the yield component of the purchased loans). The non-accretable difference is the difference between the contractually required payments and the cash flows expected to be collected in accordance with management's determination of the Day 1 Fair Values. Subsequent increases in expected cash flows will result in an adjustment to accretable yield, which will have a positive impact on interest income. Subsequent decreases in expected cash flows will generally result in increased provision for loan losses. Subsequent increases in expected cash flows following any previous decrease will result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield. The accretable difference on purchased loans with evidence of credit deterioration is the difference between the expected cash flows and the net present value of expected cash flows. Such difference is accreted into earnings using the effective yield method over the term of the loans. For purchased loans with evidence of credit deterioration for which the expected cash flows cannot be forecasted, these loans are deemed to be collateral dependent, are recorded at their fair value and are placed on nonaccrual. Allowance for Loan Losses (allowance) Pinnacle Financial's allowance for loan losses is composed of the result of two independent analyses pursuant to the provisions of ASC 450-20, Loss Contingencies Receivables In assessing the adequacy of the allowance, Pinnacle Financial also considers the results of Pinnacle Financial's ongoing independent loan review process. Pinnacle Financial undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers, and reviews that may have been conducted by third-party reviewers including regulatory examiners. Pinnacle Financial incorporates relevant loan review results in the allowance. The ASC 450-20 component of the allowance for loan losses begins with a migration analysis based on Pinnacle Financial's internal system of risk rating, if applicable, and historical loss data in its portfolio, by loan type. The migration analysis accumulates losses realized over a rolling four-quarter cycle and is utilized to determine an annualized loss rate for each category for each quarter-end in our look-back period. The look-back period in our migration analysis includes 24 quarters as Pinnacle Financial believes this period is representative of an economic cycle. An average of the loss rates calculated within each category is calculated for each quarter-end in the look-back period. Average loss rates by category are then applied to the end of period loan portfolio. The estimated losses by category are then adjusted by a loss emergence period for each type of loan in our portfolio. A loss emergence period represents the length of time from the initial event which triggered the loss to the recognition of the loss and is validated annually. The loss emergence period was determined for the losses in each category of loans and then applied to the loss rates resulting from the migration analysis. Combined, this provides a quantitative estimate of the results in credit losses inherent in Pinnacle Financial's end of period loan portfolio based on its actual loss experience. The estimated loan loss allocation for all loan segments is then adjusted for management's estimate of probable losses for a number of qualitative factors that have not been considered in the loan migration analysis. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management, but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting factor is applied to the non impaired loan portfolio. This amount represents estimated probable inherent credit losses which exist, but have not yet been identified either in its risk rating or impairment process, as of the balance sheet date, and is based upon quarterly trend assessments in portfolio concentrations, policy exceptions, economic conditions, lending staff performance, independent loan review results, collateral considerations, credit quality, competition and regulatory requirements, enterprise wide risk assessments, and peer group credit quality. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. The allowance for loan losses for purchased loans is calculated similar to that utilized for legacy Pinnacle Bank loans. Pinnacle Financial's accounting policy is to compare the computed allowance for loan losses for purchased loans to the remaining fair value adjustment. If the computed allowance at the loan level 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. The ASC 450-20 portion of the allowance includes a small unallocated component. Pinnacle Financial believes that the unallocated amount is warranted for inherent factors that cannot be practically assigned to individual loan categories, such as the imprecision in the overall loss allocation measurement process, the subjectivity risk of potentially not considering all relevant environmental categories and related measurements and imprecision in its credit risk ratings process. The appropriateness of the unallocated component of the allowance is assessed each quarter end based upon changes in the overall business environment not otherwise captured. The impaired loan allowance is determined pursuant to ASC 310-10-35. Loans are impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collection of all amounts due according to the contractual terms means collecting all interest and principal payments of a loan as scheduled in the loan agreement. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Loan losses are charged off when management believes that the full collectability of the loan is unlikely. A loan may be partially charged-off after a "confirming event" has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. An impairment allowance is recognized if the fair value of the loan is less than the recorded investment in the loan (recorded investment in the loan is the principal balance plus any accrued interest, net of deferred loan fees or costs and unamortized premium or discount). The impairment is recognized through the provision for loan losses and is a component of the allowance for loan losses. Loans that are impaired are recorded at the present value of expected future cash flows discounted at the loan's effective interest rate, or if the loan is collateral dependent, at the fair value of the collateral, less estimated disposal costs. If the loan is collateral dependent, the principal balance of the loan is charged-off in an amount equal to the impairment measurement. The fair value of collateral dependent loans is derived primarily from collateral appraisals performed by independent third-party appraisers. Management believes it follows appropriate accounting and regulatory guidance in determining impairment and accrual status of impaired loans. This analysis is completed for all individual loans greater than $250,000. The resulting allowance percentage by segment adjusted for specific trends identified, if applicable, is then applied to the remaining population of impaired loans. Pursuant to the guidance set forth in ASU No. 2011-02, A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring, Sufficiency of the computed allowance is then tested by comparison to historical trends and industry and peer information. Pinnacle Financial then evaluates the result of the procedures performed, including the results of our testing, and concludes on the appropriateness of the balance of the allowance in its entirety. The audit committee of the board of directors reviews and approves the methodology and resultant allowance prior to the filing of quarterly and annual financial information. While its policies and procedures used to estimate the allowance for loan losses, as well as the resultant provision for loan losses charged to income, are considered adequate by management and are reviewed from time to time by regulators, they are necessarily approximate and imprecise. There are factors beyond its control, such as conditions in the local, national, and international economy, a local real estate market or particular industry conditions which may negatively impact materially asset quality and the adequacy of the allowance for loan losses and thus the resulting provision for loan losses. Transfers of Financial Assets — Premises and Equipment and Leaseholds — Pinnacle Bank is the lessee with respect to several office locations. All such leases are being accounted for as operating leases within the accompanying consolidated financial statements, with the exception of the one capital lease agreement discussed below. Several of these leases include rent escalation clauses. Pinnacle Bank expenses the costs associated with these escalating payments over the life of the expected lease term using the straight-line method. At December 31, 2016, the deferred liability associated with these escalating rentals was approximately $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. Pinnacle Bank has one lease being accounted for as a capital lease within the accompanying consolidated financial statements. Amortization of property under the capital lease is expensed over the life of the expected lease term using the straight-line method and is included in depreciation expense. Other Real Estate Owned — Included in the accompanying consolidated balance sheet at December 31, 2016 is $6.5 million of OREO with related property-specific valuation allowances of $381,000. At December 31, 2015, OREO totaled $6.6 million with related property-specific valuation allowances of $1.5 million. During the years ended December 31, 2016, 2015 and 2014, Pinnacle Financial had expense of $396,000, a benefit of $306,000 and expense of $664,000, respectively, of net foreclosed real estate expense. Of the net foreclosed real estate expenses, $141,000 were realized losses on the disposition and holding losses on valuations of OREO properties during the year ended December 31, 2016 compared to realized gains and holding losses on valuations of OREO properties of $434,000 and $552,000, respectively, during the years ended December 31, 2015 and 2014. Other Assets — Pinnacle Financial is required to maintain certain minimum levels of equity investments with certain regulatory and other entities in which Pinnacle Bank has outstanding borrowings, including the Federal Home Loan Bank of Cincinnati. At December 31, 2016 and 2015, the cost of these investments was $31.4 million and $26.5 million, respectively. Pinnacle Financial determined that cost approximates the fair value of these investments. Additionally, Pinnacle Financial has recorded certain investments in other entities primarily non-public private equity funds, at fair value, of $8.3 million and $7.6 million at December 31, 2016 and 2015, respectively. During 2016 and 2015, Pinnacle Financial recorded net losses of $233,000 and $39,000, respectively, due to changes in the fair value of these investments. As more fully described in footnote 11, Pinnacle Financial has an investment in four Trusts valued at $2,476,000 as of December 31, 2016 and 2015. The Trusts were established to issue preferred securities, the dividends for which are paid with interest payments Pinnacle Financial makes on subordinated debentures it issued to the Trusts. Pinnacle Bank is the owner and beneficiary of various life insurance policies on certain key executives and certain current and former directors, including policies that were acquired in its mergers. Collectively, these policies are reflected in other assets in the accompanying consolidated balance sheets at their respective cash surrender values. At December 31, 2016 and 2015, the aggregate cash surrender value of these policies was approximately $150.6 million and $121.9 million, respectively. Noninterest income related to these policies was $3.5 million, $2.5 million, and $2.4 million, during the years ended December 31, 2016, 2015 and 2014, respectively. Also, as part of our compliance with the Community Reinvestment Act, we had investments in low income housing entities totaling $43.1 million and $17.1 million, net, as of December 31, 2016 and 2015, respectively. Included in our CRA investments are investments of $18.9 million and $3.2 million at December 31, 2016 and 2015, respectively, net of amortization, that qualify for federal low income housing tax credits. The investments are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received. The amortization and benefits are recognized as a component of income tax expense in the consolidated statements of income. The investments are recorded using the cost method. Derivative Instruments — Derivatives and Hedging 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 with large U.S. financial institutions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. Pinnacle Financial also has forward cash flow hedge relationships in the form of interest rate swap agreements to manage our future interest rate exposure. These derivative contracts have been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income. Pinnacle Financial prepares written hedge documentation for all derivatives which are designated as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be highly effective. For designated hedging relationships, Pinnacle Financial performs retrospective and prospective effectiveness testing using quantitative methods and does not assume perfect effectiveness through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in accumulated other comprehensive income (AOCI) and will be reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings. Hedge accounting ceases on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. Securities Sold Under Agreements to Repurchase — Income Taxes — Income Taxes Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. The net deferred tax asset is reflected as a component of other assets on the consolidated balance sheet. A valuation allowance is required for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset may not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. Income tax expense or benefit for the year is allocated among continuing operations and other comprehensive income (loss), as applicable. The amount allocated to continuing operations is the income tax effect of the pretax income or loss from continuing operations that occurred during the year, plus or minus income tax effects of (i) changes in certain circumstances that cause a change in judgment about the realization of deferred tax assets in future years, (ii) changes in income tax laws or rates, and (iii) changes in income tax status, subject to certain exceptions. The amount allocated to other comprehensive income (loss) is related solely to changes in the valuation allowance on items that are normally accounted for in other comprehensive income (loss) such as unrealized gains or losses on available-for-sale securities. In accordance with ASC 740-10 Accounting for Uncertainty in Income Taxes, uncertain tax positions are recognized if it is more likely than not, based on technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date. Pinnacle Financial and its subsidiaries file consolidated U.S. Federal and state of Tennessee income tax returns. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. Pinnacle Financial has a Real Estate Investment Trust subsidiary that files a separate federal tax return, but its income is included in the consolidated group's return as required by the federal tax laws. Pinnacle Financial remains open to audit under the statute of limitations by the IRS and the states in which we do business for the years ended December 31, 2013 through 2016. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. No amounts were accrued for interest and/or penalties at December 31, 2016. The amount accrued for interest and/or penalties related to State uncertain tax positions at December 31, 2015 and 2014 were $96,000 and $140,000, respectively. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. Income Per Common Share — As of December 31, 2016, there were 550,490 stock options outstanding to purchase common shares. For the years ended December 31, 2016, 2015 and 2014, respectively, approximately 694,909, 958,320 and 403,555 of dilutive stock options, dilutive restricted shares, restricted share units and stock appreciation rights were included in the diluted earnings per share calculation under the treasury stock method. For the years ended December 31, 2016, 2015 and 2014, there were no stock options, restricted shares, restricted share units and stock appreciation rights excluded from the calculation because they were deemed to be antidilutive. The following is a summary of the basic and diluted earnings per share calculation for each of the years in the three-year period ended December 31, 2016: December 31, 2016 December 31, 2015 December 31, 2014 Basic earnings per share calculation: Numerator $ 127,224,695 $ 95,509,402 $ 70,471,167 Denominator 43,037,083 37,015,468 34,723,335 Basic net income per common share $ 2.96 $ 2.58 $ 2.03 Diluted earnings per share calculation: Numerator $ 127,224,695 $ 95,509,402 $ 70,471,167 Denominator 43,037,083 37,015,468 34,723,335 Dilutive shares contingently issuable 694,909 958,320 403,555 Weighted average diluted common shares outstanding 43,731,992 37,973,788 35,126,890 Diluted net income per common share $ 2.91 $ 2.52 $ 2.01 Compensation – Stock Compensation Awards Classified as Equity Comprehensive Income (Loss) — Fair Value Measurement — Fair Value Measurements and Disclosures Pinnacle Financial has an established process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market-based or independently-sourced market data, including interest rate yield curves, option volatilities and third party information such as prices of similar assets or liabilities. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while Pinnacle Financial believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. Mortgage Servicing Rights — Recently Adopted Accounting Pronouncements — Simplifying the Presentation of Debt Issuance Costs Newly Issued not yet Effective Accounting Standards — Accounting Standards Update 2016-02 Leases In March 2016, the FASB issued updated guidance to Accounting Standards Update 2016-09 Stock Compe |
Acquisitions
Acquisitions | 12 Months Ended |
Dec. 31, 2016 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2. Acquisitions Acquisition – CapitalMark Bank & Trust. On July 31, 2015, Pinnacle Financial consummated its acquisition of 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). By virtue of the CapitalMark Merger, each holder of an issued and outstanding share of common stock of CapitalMark had the right to elect, for each share of CapitalMark Common Stock held by such holder, to receive either (i) 0.50 shares of Pinnacle Financial's Common Stock, (ii) an amount in cash equal to the value of 0.50 shares of Pinnacle Financial's Common Stock, based on the 10-day average closing price for Pinnacle Financial's common stock prior to July 31, 2015 (which such amount equaled $26.78), or (iii) a combination of stock and cash. Approximately 90% and 10%, respectively, of CapitalMark's outstanding shares of Common Stock as of the effective time of the CapitalMark Merger were converted into shares of Pinnacle Financial Common Stock and cash, respectively. As a result, Pinnacle Financial issued approximately 3.3 million shares of Pinnacle Financial's Common Stock and paid approximately $19.7 million in cash (including payments related to fractional shares) to the CapitalMark shareholders. Fractional shares were converted to cash based on the 10-day average closing price for Pinnacle Financial's Common Stock prior to July 31, 2015. All of CapitalMark's outstanding stock options vested upon consummation of the CapitalMark Merger and were converted into options to purchase shares of Pinnacle Financial's Common Stock at the common stock exchange rates. With this acquisition, Pinnacle Financial expanded its presence in the East Tennessee region by expanding into the Chattanooga MSA. The following summarizes consideration paid and an 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 $ 73,186 Goodwill 152,444 $ 225,630 Goodwill originating from the CapitalMark Merger resulted primarily from anticipated synergies arising from the combination of certain operational areas of the businesses as well as the purchase premium inherent in buying a complete and successful banking operation. Goodwill associated with the CapitalMark Merger is not amortizable for book or tax purposes. Acquisition - Magna Bank. On September 1, 2015, Pinnacle Financial consummated its merger with 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). By virtue of the Magna Merger, each holder of an issued and outstanding share of common stock of Magna (including shares of Magna's common stock issued automatically upon conversion of Magna's Series D preferred stock immediately prior to the effective time of the Magna Merger) had the right to elect, for each share of Magna common stock held by such holder (including shares of Magna's common stock issued automatically upon conversion of Magna's Series D preferred stock immediately prior to the effective time of the Magna Merger), to receive either (i) 0.3369 shares of Pinnacle Financial's Common Stock, (ii) an amount in cash equal to $14.32, or (iii) a combination of stock and cash. In total, Magna common shareholders (including holders of shares of Magna's common stock issued automatically upon conversion of Magna's Series D preferred stock immediately prior to the effective time of the Merger) had approximately 75% of their shares of Magna common stock as of the effective time of the Merger (including shares of Magna's common stock issued automatically upon conversion of Magna's Series D preferred stock immediately prior to the effective time of the Merger) converted into shares of Pinnacle Financial Common Stock and approximately 25% of their shares converted into cash. As a result, Pinnacle Financial issued approximately 1.4 million shares of Pinnacle Financial Common Stock and paid approximately $19.5 million in cash (including payments related to fractional shares) to the Magna shareholders. Additionally, at the time of the Magna Merger there were 139,417 unexercised stock options that were exchanged for cash equal to $14.32 less the respective exercise price. This consideration totaled approximately $847,000, including all applicable payroll taxes. With this acquisition, Pinnacle Financial expanded its presence in the Memphis MSA. The following summarizes consideration paid and a 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 common stockholders $ 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 $ 49,050 Goodwill 34,788 $ 83,838 Goodwill originating from the Magna Merger resulted primarily from anticipated synergies arising from the combination of certain operational areas of the businesses as well as the purchase premium inherent in buying a complete and successful banking operation. Goodwill associated with the Magna Merger is not amortizable for book or tax purposes. Acquisition - Avenue Financial Holdings, Inc. The following summarizes the consideration paid and presents a preliminary allocation of purchase price to net assets acquired (dollars in thousands): Number of Shares Amount Equity consideration: Common stock issued 3,760,326 $ 182,469 Total equity consideration $ 182,469 Non-equity consideration: Cash paid to common stockholders $ 20,910 Cash paid to exchange outstanding stock options 987 Total consideration paid $ 204,366 Allocation of total consideration paid: Fair value of net assets assumed including estimated identifiable intangible assets $ 81,695 Goodwill 122,671 $ 204,366 Pinnacle Financial accounted for the aforementioned completed mergers under the acquisition method in accordance with ASC Topic 805. Accordingly, the purchase price is allocated to the fair value of the assets acquired and liabilities assumed as of the date of merger. Purchase price allocations related to the acquisitions of CapitalMark and Magna have been completed. The following purchase price allocations on the Avenue Merger are preliminary and will be finalized upon the receipt of final valuations on certain assets and liabilities. Upon receipt of final fair value estimates, which must be within one year of the Avenue Merger date, Pinnacle Financial will make any final adjustments to the purchase price allocation and prospectively adjust any goodwill recorded. Information regarding Pinnacle Financial's loan discount and related deferred tax asset, core deposit intangible asset and related deferred tax liability, as well as income taxes payable and the related deferred tax balances recorded in the Avenue Merger, may be adjusted as Pinnacle Financial refines its estimates. Determining the fair value of assets and liabilities, particularly illiquid assets and liabilities, is a complicated process involving significant judgment regarding estimates and assumptions used to calculate estimated fair value. Fair value adjustments based on updated estimates could materially affect the goodwill recorded on the Avenue Merger. Pinnacle Financial may incur losses on the acquired loans that are materially different from losses Pinnacle Financial originally projected. The acquired assets and liabilities, as well as the 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 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, net of allowance for loan losses (2) 880,115 (22,600 ) 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) 43,526 6,046 49,572 Total Assets $ 1,105,980 $ (10,760 ) $ 1,095,220 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 $ 85,065 $ (11,879 ) $ 73,186 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 as of the date of acquisition, 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 acquired. (4) The amount represents the adjustment 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 amount represents the adjustment 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 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 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 (12,429 ) 440,679 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) 31,057 4,922 35,979 Total Assets $ 582,372 $ (4,478 ) $ 577,894 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 (8) 28,043 741 28,784 Total Liabilities $ 526,329 $ 2,515 $ 528,844 Net Assets Acquired $ 56,043 $ (6,993 ) $ 49,050 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 interest rates and expected cash flows as of the date of acquisition, 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 acquired. (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. The value of the deferred tax asset was decreased by $1.9 million as a result of the completion of the 2015 tax return. (6) The amount represents the adjustment 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 amount represents the adjustment 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) The amount represents the adjustment to accrue two potential loss contingencies related to Magna's business operations that existed as of the acquisition date. Avenue As of July 1, 2016 Avenue Historical Cost Basis Preliminary Fair Value Adjustments As Recorded by Pinnacle Financial Assets Cash and cash equivalents $ 39,485 $ - $ 39,485 Investment securities (1) 163,862 (463 ) 163,399 Loans (2) 980,319 (27,789 ) 952,530 Mortgage loans held for sale 3,310 - 3,310 Core deposit intangible (3) - 8,845 8,845 Other assets (4) 47,729 8,774 56,503 Total Assets $ 1,234,705 $ (10,633 ) $ 1,224,072 Liabilities Interest-bearing deposits (5) $ 741,635 $ 1,400 $ 743,035 Non-interest bearing deposits 223,685 - 223,685 Borrowings (6) 142,639 3,240 145,879 Other liabilities 29,719 59 29,778 Total Liabilities $ 1,137,678 $ 4,699 $ 1,142,377 Net Assets Acquired $ 97,027 $ (15,332 ) $ 81,695 Explanation of certain fair value adjustments: (1) The amount represents the adjustment of the book value of Avenue'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 Avenue's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, 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 acquired. (4) The amount represents the deferred tax asset recognized on the fair value adjustment of Avenue's acquired assets and assumed liabilities as well as the fair value adjustment for property and equipment. (5) The amount represents the adjustment necessary because the weighted average interest rate of Avenue'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. (6) The amount represents the adjustment necessary because the weighted average interest rate of Avenue's FHLB advances and subordinated debt issuance 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
Equity method investment | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | Note 3. Equity method investment On February 1, 2015, Pinnacle Bank acquired a 30% interest in Bankers Healthcare Group, LLC (BHG) for $75 million in cash. On March 1, 2016, Pinnacle Bank and Pinnacle Financial increased their investment in BHG by a combined 19%, for a total investment in BHG of 49%. The additional 19% interest was acquired pursuant to a purchase agreement whereby both Pinnacle Financial and Pinnacle Bank acquired 8.55% and an additional 10.45%, respectively, of the outstanding membership interests in BHG in exchange for $74.1 million in cash and 860,470 shares of Pinnacle Financial common stock. 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 (Securities Act), and Rule 506 of Regulation D promulgated under the Securities Act. Subsequent to the placement of the 860,470 shares, Pinnacle Financial filed a registration statement on Form S-3 with the SEC 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. On March 1, 2016, 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: · 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; · the inability of the board of managers of BHG (of which Pinnacle Financial and Pinnacle Bank 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; · 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 · 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 Financial 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. Because BHG has been determined to be a voting interest entity of which Pinnacle Financial and Pinnacle Bank together 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 is accounted for pursuant to the equity method of accounting. Additionally, Pinnacle Financial did not recognize any goodwill or other intangible asset associated with these transactions as of the respective purchase dates, however, it will recognize accretion income and amortization expense associated with the fair value adjustments to the net assets acquired including the fair value of certain of BHG's liabilities which are recorded as a component of income from equity method investment, pursuant to the equity method of accounting. Pinnacle Financial and Pinnacle Bank account for their consolidated interest in BHG's profits and losses in noninterest income with corresponding adjustments to the BHG investment account. At December 31, 2016, Pinnacle Financial has recorded technology, trade name and customer relationship intangibles, net of related amortization, of $16.8 million compared to $6.1 million as of December 31, 2015. Amortization expense of $3.4 million was included in Pinnacle Financial's results for the year ended December 31, 2016 compared to $1.3 million for the prior year. Accretion income of $2.5 million was included in Pinnacle Financial's results for the year ended December 31, 2016, while no accretion income was recorded in 2015. Additionally, at December 31, 2016, Pinnacle Financial had recorded accretable discounts associated with certain liabilities of BHG of $18.1 million compared to $8.0 million as of December 31, 2015. During the year ended December 31, 2016, Pinnacle Financial and Pinnacle Bank received dividends from BHG of $29.0 million in the aggregate, respectively, compared to $7.2 million in the year ended December 31, 2015. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. As part of ongoing business transacted with BHG, Pinnacle Bank purchased loans totaling $2.2 million during the year ended December 31, 2015. No loans were purchased from BHG for the year ended December 31, 2016. A summary of BHG's financial position and results of operations as of and for the years ended December 31, 2016 and 2015, respectively, were as follows (unaudited, in thousands): Banker's Healthcare Group ($ in thousands) December 31, 2016 December 31, 2015 Assets $ 223,246 $ 220,578 Liabilities 139,531 137,147 Equity interests 83,715 83,431 Total liabilities and equity $ 223,246 $ 220,578 For the year ended December 31, 2016 2015 Revenues $ 136,693 $ 144,772 Net income, pre-tax 67,135 77,748 |
Restricted Cash Balances
Restricted Cash Balances | 12 Months Ended |
Dec. 31, 2016 | |
Restricted Cash Balances [Abstract] | |
Restricted Cash Balances | Note 4. Restricted Cash Balances Regulation D of the Federal Reserve Act requires that banks maintain reserve balances with the Federal Reserve Bank based principally on the type and amount of their deposits. At our option, Pinnacle Financial maintains additional balances to compensate for clearing and other services. For the years ended December 31, 2016 and 2015, the average daily balance maintained at the Federal Reserve was approximately $183.1 million and $134.3 million, respectively. |
Securities
Securities | 12 Months Ended |
Dec. 31, 2016 | |
Securities [Abstract] | |
Securities | Note 5. Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2016 and 2015 are summarized as follows (in thousands): December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available-for-sale: U.S Treasury securities $ 250 $ - $ - $ 250 U.S. Government agency securities 22,306 - 537 21,769 Mortgage-backed securities 988,008 4,304 15,686 976,626 State and municipal securities 211,581 4,103 2,964 212,720 Asset-backed securities 79,318 111 849 78,580 Corporate notes 8,608 39 46 8,601 $ 1,310,071 $ 8,557 $ 20,082 $ 1,298,546 Securities held-to-maturity: State and municipal securities 25,251 87 105 25,233 $ 25,251 $ 87 $ 105 $ 25,233 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 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 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 December 31, 2016, approximately $902.9 million of Pinnacle Financial's investment portfolio was pledged to secure public funds and other deposits and securities sold under agreements to repurchase. At December 31, 2016, repurchase agreements comprised of secured borrowings totaled $85.7 million and were secured by $85.7 million of pledged U.S. government agency securities, municipal securities, asset backed securities, and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities for the counterparty to remain adequately secured. Available-for-sale Held-to-maturity Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,533 $ 2,556 $ 594 $ 594 Due in one year to five years 60,311 61,591 10,186 10,182 Due in five years to ten years 122,753 123,769 10,586 10,567 Due after ten years 57,148 55,424 3,885 3,890 Mortgage-backed securities 988,008 976,626 - - Asset-backed securities 79,318 78,580 - - $ 1,310,071 $ 1,298,546 $ 25,251 $ 25,233 At December 31, 2016 and 2015, included in securities were the following investments with unrealized losses. The information below classifies these investments according to the term of the unrealized loss 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 December 31, 2016 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities - - 20,820 537 20,820 537 Mortgage-backed securities 801,213 15,073 43,148 613 844,361 15,686 State and municipal securities 87,277 3,068 312 1 87,589 3,069 Asset-backed securities 14,510 32 34,097 817 48,607 849 Corporate notes 4,810 46 - - 4,810 46 Total temporarily-impaired securities $ 907,810 $ 18,219 $ 98,377 $ 1,968 $ 1,006,187 $ 20,187 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 date for determining when securities are in an unrealized loss position is December 31, 2016 and 2015. As such, it is possible that a security had a market value less than its amortized cost on other days during the twelve-month periods ended December 31, 2016 and 2015, but is not in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the table above, at December 31, 2016 and 2015, Pinnacle Financial had unrealized losses of $20.2 million and $9.3 million on $1.0 billion and $628.9 million, respectively, of available-for-sale and held-to-maturity securities. The unrealized losses associated with these investment securities are primarily driven by changes in interest rates and are not due to the credit quality of the securities. 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. Because Pinnacle Financial currently does not intend to sell these securities 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 December 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. Consistent with the investment policy, available-for-sale securities of $72.8 million were sold and net unrealized gains of $395,000 were reclassified from accumulated other comprehensive income into net income. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of the securities' issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Additionally, there is a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and or recovery changes. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 6. Loans and Allowance for Loan Losses For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses five loan categories: commercial real estate mortgage, consumer real estate mortgage, construction and land development, commercial and industrial, consumer and other. · Commercial real-estate mortgage loans · Consumer real-estate mortgage loans · Construction and land development loans · Commercial and industrial loans · Consumer and other loans Commercial loans receive risk ratings by the assigned financial advisor 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. Pass-rated loans include five distinct ratings categories for loans that represent specific attributes. Pinnacle Financial believes that its categories follow those outlined by Pinnacle Bank's primary regulators. At December 31, 2016, approximately 79% 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 policy requires that every risk rated loan of $500,000 or more be subject to a formal credit risk review process. 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. The following table outlines the amount of each loan classification categorized into each risk rating category as of December 31, 2016 and 2015 (in thousands): December 31, 2016 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total Accruing loans: Pass $ 3,137,239 $ 1,159,003 $ 897,549 $ 2,782,000 $ 264,682 $ 8,240,473 Special Mention 21,449 1,620 2,716 25,641 802 52,228 Substandard (1) 29,674 13,833 5,788 65,215 129 114,639 Total 3,188,362 1,174,456 906,053 2,872,856 265,613 8,407,340 Impaired loans: Nonaccruing loans Substandard-nonaccrual 4,921 8,073 6,613 7,492 475 27,574 Doubtful-nonaccrual - - - 3 - 3 Total nonaccruing loans (3) 4,921 8,073 6,613 7,495 475 27,577 Troubled debt restructurings (2) Pass 213 1,358 7 713 41 2,332 Special Mention - 236 - - - 236 Substandard - 1,794 - 10,646 - 12,440 Total troubled debt restructurings 213 3,388 7 11,359 41 15,008 Total impaired loans 5,134 11,461 6,620 18,854 516 42,585 Total loans $ 3,193,496 $ 1,185,917 $ 912,673 $ 2,891,710 $ 266,129 $ 8,449,925 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: Nonaccruing loans Substandard-nonaccrual 5,819 9,344 7,607 1,591 4,902 29,263 Doubtful-nonaccrual 2 2 - 92 - 96 Total nonaccruing loans (3) 5,821 9,346 7,607 1,683 4,902 29,359 Troubled debt restructurings (2) 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 substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $114.6 million at December 31, 2016, compared to $105.0 million at December 31, 2015. (2) Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. (3) Included in nonaccrual loans at December 31, 2016 and 2015 are $8.8 million and $12.1 million, respectively, in loans acquired with deteriorated credit quality and accounted for as purchase credit impaired. At December 31, 2016 and 2015, all loans classified as nonaccrual were deemed to be impaired. The principal balances of these nonaccrual loans amounted to $27.6 million and $29.4 million at December 31, 2016 and 2015, respectively, and are included in the table above. For the twelve months ended December 31, 2016, the average balance of nonaccrual loans was $35.1 million as compared to $21.6 million for the twelve months ended December 31, 2015. Pinnacle Financial's policy is that the discontinuation of the accrual of interest income will occur when (1) there is a significant deterioration in the financial condition of the borrower and full repayment of principal and interest is not expected or (2) the principal or interest is more than 90 days past due, unless the loan is both well secured and in the process of collection. As such, at the date the above mentioned loans were placed on nonaccrual status, Pinnacle Financial reversed all previously accrued interest income against current year earnings. Had these nonaccruing loans been on accruing status, interest income would have been higher by $2.1 million, $2.3 million and $636,000 for the years ended December 31, 2016, 2015 and 2014, respectively. As discussed in Note 2, during 2016, the Company acquired loans of $952.5 million from Avenue. Of the $952.5 million of net loans acquired in 2016, $951.1 million were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. Our acquired loans were recorded at fair value upon acquisition. These loans are subject to additional allowance or provisioning charges in the event there is evidence of credit deterioration. The remaining acquired loans of $1.4 million were determined to have deteriorated credit quality under ASC Topic 310-30. The table below details these two subsections of the acquired loans by loan classification into each risk rating category as of December 31, 2016 (dollars in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Fair Value Adjustment Net total acquired loans December 31, 2016 Gross contractual accruing loans Pass $ 365,797 $ 119,430 $ 114,849 $ 280,415 11,897 $ (18,893 ) $ 873,495 Special Mention 9,075 - - 570 - (142 ) 9,503 Substandard - 3,382 1,835 - - (132 ) 5,085 Total 374,872 122,812 116,684 280,985 11,897 (19,167 ) 888,083 Gross contractual impaired loans (1) Nonaccrual loans Substandard-nonaccrual - 295 404 388 73 (594 ) 566 Doubtful-nonaccrual - - - - - - - Total nonaccrual loans - 295 404 388 73 (594 ) 566 Total gross contractual acquired impaired loans - 295 404 388 73 (594 ) 566 Total gross contractual acquired loans $ 374,872 $ 123,107 $ 117,088 $ 281,373 $ 11,970 $ (19,761 ) $ 888,649 (1) All of the acquired impaired loans have been deemed to be collateral dependent and as such were placed on nonaccrual. As such, no accretable difference has been recorded on these loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2015 through December 31, 2016 (in thousands): Gross Contractual Receivable Accretable Yield Nonaccretable Yield Carrying Value Acquisition Date $ 19,960 $ - $ (5,703 ) $ 14,257 Settlements (3,803 ) - 1,560 (2,243 ) Additional fundings 117 - - 117 December 31, 2015 16,274 - (4,143 ) 12,131 Acquisitions 1,359 - (812 ) 547 Settlements (6,017 ) - 1,322 (4,695 ) Additional fundings 852 - - 852 December 31, 2016 $ 12,468 $ - $ (3,633 ) $ 8,835 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. The following tables detail the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at December 31, 2016, 2015 and 2014 by loan classification and the amount of interest income recognized on a cash basis throughout the year-to-date period then ended, respectively, on these loans that remain on the balance sheets (in thousands): December 31, 2016 For the year ended December 31, 2016 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Cash basis interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,308 $ 2,312 $ - $ 2,540 $ - Consumer real estate – mortgage 2,880 2,915 - 2,907 - Construction and land development 3,128 3,135 - 3,132 159 Commercial and industrial 6,373 6,407 - 8,841 - Consumer and other - - - - - Total $ 14,689 $ 14,769 $ - $ 17,420 $ 159 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 2,613 $ 3,349 $ 59 $ 2,688 $ - Consumer real estate – mortgage 5,193 5,775 688 5,966 - Construction and land development 3,485 4,154 20 3,476 - Commercial and industrial 1,122 2,714 77 2,884 - Consumer and other 475 851 227 2,624 - Total $ 12,888 $ 16,843 $ 1,071 $ 17,638 $ - Total Nonaccrual Loans $ 27,577 $ 31,612 $ 1,071 $ 35,058 $ 159 December 31, 2015 For the year ended December 31, 2015 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Cash basis 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 December 31, 2014 For the year ended December 31, 2014 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Cash basis interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,422 $ 2,641 $ - $ 2,624 $ - Consumer real estate – mortgage 1,472 1,901 - 1,552 - Construction and land development 4,810 4,810 - 5,016 256 Commercial and industrial 1,325 1,804 - 1,561 - Consumer and other - - - - - Total $ 10,029 $ 11,156 $ - $ 10,753 $ 256 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,891 $ 2,107 $ 108 $ 1,958 $ - Consumer real estate – mortgage 2,986 3,205 654 3,080 - Construction and land development 363 406 79 384 - Commercial and industrial 284 294 62 316 - Consumer and other 1,152 1,184 252 972 - Total $ 6,676 $ 7,196 $ 1,155 $ 6,710 $ - Total Nonaccrual Loans $ 16,705 $ 18,352 $ 1,155 $ 17,463 $ 256 (1) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. Pinnacle Financial's policy is that once a loan is placed on nonaccrual status each subsequent payment is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. Pinnacle Financial recognized approximately $159,000, $308,000 and $256,000 in interest income from cash payments received on nonaccrual loans during the years ended December 31, 2016, 2015, and 2014, respectively. At December 31, 2016 and 2015, there were $15.0 million and $8.1 million, respectively, of troubled debt restructurings that were performing as of their restructure date and which are accruing interest. These troubled debt restructurings are considered impaired loans pursuant to U.S. GAAP. Troubled commercial loans are restructured by specialists within Pinnacle Bank's Special Assets Group, and all restructurings are approved by committees and credit officers separate and apart from the normal loan approval process. These specialists are charged with reducing Pinnacle Financial's overall risk and exposure to loss in the event of a restructuring by obtaining some or all of the following: improved documentation, additional guaranties, increase in curtailments, reduction in collateral release terms, additional collateral or other similar strategies. The following table outlines the amount of each troubled debt restructuring by loan classification made during the years ended December 31, 2016, 2015 and 2014 (in thousands): December 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 6 11,084 11,083 Consumer and other - - - 6 $ 11,084 $ 11,083 December 31, 2015 Commercial real estate – mortgage 1 $ 223 $ 185 Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 434 337 Consumer and other - - - 2 $ 657 $ 522 December 31, 2014 Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage 1 47 38 Construction and land development 1 436 403 Commercial and industrial 10 3,628 2,646 Consumer and other - - - 12 $ 4,111 $ 3,087 During the years ended December 31, 2016, 2015 and 2014, Pinnacle Financial had no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. A default is defined as an occurrence which violates the terms of the receivable's contract. In addition to the loan metrics above, Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. 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 December 31, 2016 with the comparative exposures for December 31, 2015 (in thousands): At December 31, 2016 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2015 Lessors of nonresidential buildings $ 1,294,366 $ 407,487 $ 1,701,853 $ 1,078,211 Lessors of residential buildings 526,259 347,975 874,234 500,266 New housing operative builders 229,035 157,370 386,405 206,538 Hotels and motels 127,296 164,569 291,865 167,317 The table below presents past due balances at December 31, 2016 and 2015, by loan classification and segment allocated between performing and nonperforming status (in thousands): December 31, 2016 30-89 days past due and performing 90 days or more past due and performing Total past due and performing Nonperforming(1) Current and performing Total Loans Commercial real estate: Owner-occupied $ 3,505 $ - $ 3,505 $ 4,254 $ 1,347,134 $ 1,354,893 All other - - - 667 1,837,936 1,838,603 Consumer real estate – mortgage 3,838 53 3,891 8,073 1,173,953 1,185,917 Construction and land development 2,210 - 2,210 6,613 903,850 912,673 Commercial and industrial 4,475 - 4,475 7,495 2,879,740 2,891,710 Consumer and other 7,168 1,081 8,249 475 257,405 266,129 $ 21,196 $ 1,134 $ 22,330 $ 27,577 $ 8,400,018 $ 8,449,925 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 $16.7 million and $19.0 million of nonaccrual loans as of December 31, 2016 and 2015, respectively, are currently performing pursuant to their contractual terms. The following table shows the allowance allocation by loan classification for accruing and nonperforming loans at December 31, 2016 Impaired Loans Accruing Loans Nonaccrual Loans Troubled Debt Restructurings (1) Total Allowance for Loan Losses December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Commercial real estate –mortgage $ 13,595 $ 15,452 $ 59 $ 20 $ 1 $ 41 $ 13,655 $ 15,513 Consumer real estate – mortgage 5,874 6,109 688 616 2 495 6,564 7,220 Construction and land development 3,604 2,891 20 12 - - 3,624 2,903 Commercial and industrial 24,648 22,669 77 19 18 955 24,743 23,643 Consumer and other 9,293 12,609 227 3,002 - 5 9,520 15,616 Unallocated - - - - - - 874 537 $ 57,014 $ 59,730 $ 1,071 $ 3,669 $ 21 $ 1,496 $ 58,980 $ 65,432 (1) Troubled debt restructurings of $15.0 million and $8.1 million as of December 31, 2016 and 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 December 31, 2016 by loan classification and the allocation of allowance for loan losses (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Allowance for Loan Losses: Balance at December 31, 2013 $ 21,372 $ 8,355 $ 7,235 $ 25,134 $ 1,632 $ 4,242 $ 67,970 Charged-off loans (875 ) (1,621 ) (301 ) (3,095 ) (1,811 ) - (7,703 ) Recovery of previously charged-off loans 538 671 277 1,484 487 - 3,457 Provision for loan losses 1,167 (1,981 ) (1,487 ) 5,644 1,262 (970 ) 3,635 Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Collectively evaluated for impairment $ 22,094 $ 3,963 $ 5,555 $ 28,329 $ 1,261 $ 61,202 Individually evaluated for impairment 108 1,461 169 838 309 2,885 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Loans: Collectively evaluated for impairment $ 1,539,778 $ 712,774 $ 316,857 $ 1,779,347 $ 216,155 $ 4,564,911 Individually evaluated for impairment 4,313 8,384 5,609 5,382 1,428 25,116 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 1,544,091 $ 721,158 $ 322,466 $ 1,784,729 $ 217,583 $ 4,590,027 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 $ 537 $ 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 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 (276 ) (788 ) (231 ) (5,801 ) (24,016 ) - (31,112 ) Recovery of previously charged-off loans 208 546 545 2,138 2,895 - 6,332 Provision for loan losses (1,790 ) (414 ) 407 4,763 15,025 337 18,328 Balance at December 31, 2016 $ 13,655 $ 6,564 $ 3,624 $ 24,743 $ 9,520 $ 874 $ 58,980 Collectively evaluated for impairment $ 13,595 $ 5,874 $ 3,604 $ 24,648 $ 9,293 $ 57,014 Individually evaluated for impairment 60 690 20 95 227 1,092 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2016 $ 13,655 $ 6,564 $ 3,624 $ 24,743 $ 9,520 $ 874 $ 58,980 Loans: Collectively evaluated for impairment $ 3,188,362 $ 1,174,456 $ 906,053 $ 2,872,856 $ 265,613 $ 8,407,340 Individually evaluated for impairment 2,750 8,941 3,212 18,331 516 33,750 Loans acquired with deteriorated credit quality 2,384 2,520 3,408 523 - 8,835 Balance at December 31, 2016 $ 3,193,496 $ 1,185,917 $ 912,673 $ 2,891,710 $ 266,129 $ 8,449,925 The adequacy of the allowance for loan losses is assessed at the end of each calendar quarter. The level of the allowance is based upon evaluation of the loan portfolio, historical loss experience, 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. At December 31, 2016, Pinnacle Financial had granted loans and other extensions of credit amounting to approximately $22.6 million to current directors, executive officers, and their related entities, of which $14.8 million had been drawn upon. At December 31, 2015, Pinnacle Financial 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. These loans and extensions of credit were made in the ordinary course of business. None of these loans to directors, executive officers, and their related entities were impaired at December 31, 2016 or 2015. Residential Lending At December 31, 2016, Pinnacle Financial had approximately $47.7 million of mortgage loans held-for-sale compared to approximately $47.9 million at December 31, 2015. Total loan volumes sold during the year ended December 31, 2016 were approximately $803.5 million compared to approximately $519.1 million for the year ended December 31, 2015. During the year ended December 31, 2016, Pinnacle Financial recognized $15.8 million in gains on the sale of these loans, net of commissions paid, compared to $7.7 million and $5.6 million, respectively, during the years ended December 31, 2015 and 2014. These mortgage loans held-for-sale are originated internally and are primarily to borrowers in Pinnacle Bank's geographic markets. These sales are typically on a mandatory basis to investors that follow conventional government sponsored entities (GSE) and the Department of Housing and Urban Development/U.S. Department of Veterans Affairs (HUD/VA) guidelines. Each purchaser has specific guidelines and criteria for sellers of loans, and the risk of credit loss with regard to the principal amount of the loans sold is generally transferred to the purchasers upon sale. While the loans are sold without recourse, the purchase agreements require Pinnacle Bank to make certain representations and warranties regarding the existence and sufficiency of file documentation and the absence of fraud by borrowers or other third parties such as appraisers in connection with obtaining the loan. If it is determined that the loans sold were in breach of these representations or warranties, Pinnacle Bank has obligations to either repurchase the loan for the unpaid principal balance and related investor fees or make the purchaser whole for the economic benefits of the loan. To date, repurchase activity pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank. |
Mortgage Servicing Rights
Mortgage Servicing Rights | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Servicing Rights [Abstract] | |
Mortgage Servicing Rights | Note 7. Mortgage Servicing Rights Mortgage servicing rights (MSRs) are recorded at the lower of cost or market in "Other assets" on Pinnacle Financial's consolidated balance sheets and are amortized over the remaining life of the loans and written off when a mortgage loan prepays prior to maturity. The financial data included herein reflects the impact of the mergers that have been consummated beginning on the respective acquisition dates and are subject to future refinements to Pinnacle Financial's purchase accounting adjustments. Mortgage servicing rights had the following carrying values as of December 31, 2015 (in thousands): 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 6,802 $ (390 ) $ 6,412 The following table provides a detail of changes in the mortgage servicing right from September 1, 2015, the closing date of the Magna Merger, to December 31, 2015: Residential Beginning balance acquired in Magna Merger $ 6,641 Add: Capitalized MSRs 161 Less: Amortization (390 ) Ending balance $ 6,412 Income and expense associated with these MSRs, which includes servicing fees, late charges, guarantee fees and loan payoff interest, is recorded on a cash basis which approximates income as would be recorded on a U.S. GAAP basis. The following table summarizes the net servicing fee revenues for the year ended December 31, 2015 (in thousands): Residential Gross servicing fees $ 1,090 Late charges and other ancillary revenue 160 Gross servicing revenue $ 1,250 Servicing asset amortization $ 386 Guaranty fees and loan pay-off interest 9 Other servicing expenses 51 Gross servicing expenses $ 446 Net servicing fee income $ 804 During the first quarter of 2016, in conjunction with a decision to exit the residential servicing line of business, Pinnacle Bank sold the mortgage servicing rights associated with the $830 million Fannie Mae portion of the residential servicing portfolio for $6.6 million, net of associated costs to sell. Approximately $241,000 was recorded as income during the year ended December 31, 2016 as a result of the sale. |
Premises and Equipment and Leas
Premises and Equipment and Lease Commitments | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment and Lease Commitments [Abstract] | |
Premises and Equipment and Lease Commitments | Note 8. Premises and Equipment and Lease Commitments Premises and equipment at December 31, 2016 and 2015 are summarized as follows (in thousands): Range of Useful Lives 2016 2015 Land Not applicable $ 19,467 $ 19,848 Buildings 15 to 30 years 64,088 60,218 Leasehold improvements 15 to 20 years 28,789 22,485 Furniture and equipment 3 to 15 years 62,982 56,139 175,326 158,690 Accumulated depreciation and amortization (86,422 ) (80,766 ) $ 88,904 $ 77,924 Depreciation and amortization expense was approximately $9.9 million, $8.5 million, and $5.1 million for the years ended December 31, 2016, 2015 and 2014, respectively. Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities. Rent expense related to these leases for 2016, 2015 and 2014 totaled $8.4 million, $5.9 million and $4.9 million, respectively. At December 31, 2016, the approximate future minimum lease payments due under the aforementioned operating leases for their base term are as follows (in thousands): 2017 $ 7,568 2018 7,538 2019 7,479 2020 7,457 2021 7,349 Thereafter 39,008 $ 76,399 During 2016 and as a result of the acquisition of Avenue, Pinnacle Financial has entered into a single capital lease, primarily for office space at an interest rate of 7.22% per year. Rent expense related to this lease for 2016 was approximately $209,000 and is included in total rent expense above. At December 31, 2016, the approximate future minimum lease payments due under the aforementioned capital lease for its base term are as follows (in thousands): 2017 $ 417 2018 426 2019 470 2020 470 2021 470 Thereafter 3,498 Total minimum lease payments $ 5,751 Less: amount representing interest (1,963 ) Present value of net minimum lease payments $ 3,788 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Deposits | Note 9. Deposits At December 31, 2016, the scheduled maturities of time deposits are as follows (in thousands): 2017 $ 617,713 2018 98,689 2019 60,326 2020 31,278 2021 25,041 Thereafter 3,807 $ 836,854 Additionally, at December 31, 2016 and 2015, approximately $257.5 million and $279.5 million, respectively, of time deposits had been issued in denominations of $250,000 or greater. At December 31, 2016 and 2015, Pinnacle Financial had $1.9 million and $1.5 million, respectively, of deposit accounts in overdraft status and thus have been reclassified to loans on the accompanying consolidated balance sheets. |
Federal Home Loan Bank Advances
Federal Home Loan Bank Advances | 12 Months Ended |
Dec. 31, 2016 | |
Federal Home Loan Bank Advances [Abstract] | |
Federal Home Loan Bank Advances | Note 10. Federal Home Loan Bank Advances Pinnacle Bank is a member of the Federal Home Loan Bank of Cincinnati (FHLB) and as a result, is eligible for advances from the FHLB pursuant to the terms of various borrowing agreements, which assist Pinnacle Bank in the funding of its home mortgage and commercial real estate loan portfolios. Pinnacle Bank has pledged certain qualifying residential mortgage loans and, pursuant to a blanket lien, certain qualifying commercial mortgage loans with an aggregate carrying value of approximately $2.5 billion as collateral under the borrowing agreements with the FHLB. At December 31, 2016 and 2015, Pinnacle Financial had received advances from the FHLB totaling $406.2 million and $300.3 million, respectively. Additionally, Pinnacle Financial recognized a discount of $167,000 on FHLB advances in conjunction with its acquisition of Avenue in July 2016. At December 31, 2016, the remaining discount was $92,000. At December 31, 2015, there was no discount recognized from previous acquisitions as the discount had been fully amortized. At December 31, 2016, the scheduled maturities of FHLB advances and interest rates are as follows (in thousands): Scheduled Maturities Weighted average interest rates 2017 $ 392,000 0.79 % 2018 14,003 1.29 % 2019 - - 2020 182 2.25 % 2021 - - Thereafter 28 2.75 % $ 406,213 Weighted average interest rate 0.81 % At December 31, 2016, Pinnacle Bank had accommodations which allow it to borrow from the Federal Reserve Bank of Atlanta's discount window and purchase Federal funds from several of its correspondent banks on an overnight basis at prevailing overnight market rates. These accommodations are subject to various restrictions as to their term and availability, and in most cases, must be repaid within less than a month. At December 31, 2016, there was no b s not carrying any balances w |
Investments in Affiliated Compa
Investments in Affiliated Companies and Subordinated Debt | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Affiliated Companies and Subordinated Debt [Abstract] | |
Investments in Affiliated Companies and Subordinated Debt | Note 11. Investments in Affiliated Companies and Subordinated Debentures Beginning on December 29, 2003, Pinnacle Financial established Trusts that were created for the exclusive purpose of issuing 30-year capital trust preferred securities and used the proceeds to acquire junior subordinated debentures (Subordinated Debentures) issued by Pinnacle Financial. The sole assets of the Trusts are the Subordinated Debentures. The $2,476,000 investment in the Trusts is included in other investments in the accompanying consolidated balance sheets and the $82,476,000 obligation is reflected as subordinated debt. The details of the Trusts established are as follows: Date Established Maturity Common Securities Trust Preferred Securities Floating Interest Rate Interest Rate at December 31, 2016 Trust I December 29, 2003 December 30, 2033 $ 310,000 $ 10,000,000 Libor + 2.80% 3.76 % Trust II September 15, 2005 September 30, 2035 619,000 20,000,000 Libor + 1.40% 2.40 % Trust III September 7, 2006 September 30, 2036 619,000 20,000,000 Libor + 1.65% 2.65 % Trust IV October 31, 2007 September 30, 2037 928,000 30,000,000 Libor + 2.85% 3.81 % Distributions are payable quarterly. The Trust Preferred Securities are subject to mandatory redemption upon repayment of the Subordinated Debentures at their stated maturity date or their earlier redemption in an amount equal to their liquidation amount plus accumulated and unpaid distributions to the date of redemption. Pinnacle Financial guarantees the payment of distributions and payments for redemption or liquidation of the Trust Preferred Securities to the extent of funds held by the Trusts. Pinnacle Financial's obligations under the Subordinated Debentures together with the guarantee and other back-up obligations, in the aggregate, constitute a full and unconditional guarantee by Pinnacle Financial of the obligations of the Trusts under the Trust Preferred Securities. The Subordinated Debentures are unsecured, bear interest at a rate equal to the rates paid by the Trusts on the Trust Preferred Securities and mature on the same dates as those noted above for the Trust Preferred Securities. Interest is payable quarterly. We may defer the payment of interest at any time for a period not exceeding 20 consecutive quarters provided that the deferral period does not extend past the stated maturity. During any such deferral period, distributions on the Trust Preferred Securities will also be deferred and our ability to pay dividends on our common shares will be restricted. The Trust Preferred Securities may be redeemed prior to maturity at our option. The Trust Preferred Securities may also be redeemed at any time in whole (but not in part) in the event of unfavorable changes in laws or regulations that result in (1) the Trust becoming subject to federal income tax on income received on the Subordinated Debentures, (2) interest payable by the parent company on the Subordinated Debentures becoming non-deductible for federal tax purposes, (3) the requirement for the Trust to register under the Investment Company Act of 1940, as amended, or (4) loss of the ability to treat the Trust Preferred Securities as "Tier I capital" under the Federal Reserve capital adequacy guidelines. Under current Federal Reserve capital adequacy guidelines, the Trust Preferred Securities are treated as Tier I capital so long as Pinnacle Financial has less than $15 billion in assets. |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income Taxes | Note 12. Income Taxes Income tax expense (benefit) attributable to continuing operations for each of the years ended December 31 is as follows (in thousands): 2016 2015 2014 Current tax expense : Federal $ 49,769 $ 41,721 $ 34,068 State - 48 719 Total current tax expense 49,769 41,769 34,787 Deferred tax expense (benefit): Federal 12,776 4,963 (1,260 ) State 1,614 857 1,655 Total deferred tax expense 14,390 5,820 395 Total income tax expense $ 64,159 $ 47,589 $ 35,182 Pinnacle Financial's income tax expense (benefit) differs from the amounts computed by applying the Federal income tax statutory rates of 35% to income (loss) before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2016 is as follows (in thousands): 2016 2015 2014 Income tax expense at statutory rate $ 66,984 $ 50,084 $ 36,978 State excise tax expense, net of federal tax effect 1,049 588 1,827 Tax-exempt securities (2,510 ) (2,543 ) (2,675 ) Federal tax credits (282 ) - - Bank owned life insurance (1,242 ) (892 ) (849 ) Insurance premiums (159 ) (306 ) (401 ) Change in uncertain tax positions - - 392 Other items 319 658 (90 ) Income tax expense $ 64,159 $ 47,589 $ 35,182 Pinnacle Financial's effective tax rate for 2016 and 2015 differs from the statutory income tax rates primarily due to a state excise tax expense, investments in bank qualified municipal securities, our real estate investment trust, participation in the Community Investment Tax Credit (CITC) program, and bank owned life insurance, offset in part by the limitation on deductibility of meals and entertainment expense and certain merger-related expenses. The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2016 and 2015 are as follows (in thousands): 2016 2015 Deferred tax assets: Loan loss allowance $ 22,308 $ 24,959 Loans 15,534 11,568 Insurance 869 823 Accrued liability for supplemental retirement agreements 5,587 2,476 Restricted stock and stock options 8,643 4,824 Securities 4,275 - Cash flow hedge 1,520 949 Other real estate owned 149 587 Other deferred tax assets 7,897 2,905 Total deferred tax assets 66,782 49,091 Deferred tax liabilities: Depreciation and amortization 5,823 6,273 Core deposit intangible asset 5,621 3,786 Securities - 2,337 REIT dividends 4,602 1,772 FHLB related liabilities 285 1,385 Mortgage servicing rights - 2,468 Other deferred tax liabilities 679 473 Total deferred tax liabilities 17,010 18,494 Net deferred tax assets $ 49,772 $ 30,597 ASC 740, Income Taxes A reconciliation of the beginning and ending unrecognized tax benefit related to state uncertain tax positions is as follows (in thousands): 2016 2015 2014 Balance at January 1, $ 134 $ 391 $ - Increases due to tax positions taken during the current year 1,140 (257 ) - Increases due to tax positions taken during a prior year - - 391 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 December 31, $ 1,274 $ 134 $ 391 Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. No interest and penalties were recorded for the year ended December 31, 2016. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 12 Months Ended |
Dec. 31, 2016 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Note 13. 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, 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 December 31, 2016, these commitments amounted to $3.374 billion, of which approximately $413.7 million related to home equity lines of credit. Standby letters of credit are generally issued on behalf of an applicant (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 December 31, 2016, these commitments amounted to $131.4 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 would only be reflected if drawn upon. 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 instruments. At December 31, 2016, Pinnacle Financial had accrued $1.1 million for the inherent risks associated with 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 routine claims outstanding at December 31, 2016 will not have a material impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows. On May 9, 2016 a purported class action complaint was filed in the Chancery Court for the State of Tennessee, 20th Judicial District at Nashville, styled Stephen Bushansky, on behalf of himself and all others similarly situated, Plaintiff, versus Avenue Financial Holdings, Inc. Ronald L. Samuels, Kent Cleaver, David G. Anderson, Agenia Clark, James F. Deutsch, Marty Dickens, Patrick G. Emery, Nancy Falls, Joseph C. Galante, David Ingram. Stephen Moore, Ken Robold, Karen Saul and Pinnacle Financial Partners, Inc., Defendants (Case No. 16-489-IV) Bushansky On June 10, 2016, the parties entered into a memorandum of understanding with the plaintiff regarding a settlement of the Bushansky On October 18, 2016, the parties finalized a formal Stipulation of Settlement, which the parties submitted to the Business Court for approval along with a proposed Order Granting Preliminary Approval of Settlement, Approving Form of Notice to Class, and Setting Final Settlement Hearing ("Preliminary Approval Order"), a proposed Notice of Pendency and Proposed Settlement of Class Action ("Notice"), and a proposed Final Order and Judgment. Plaintiff also indicated that it would request from the Business Court an award of $300,000 in attorneys' fees and expenses, and defendants agreed not to object to a request in this amount. On October 25, 2016, the Business Court issued a Preliminary Approval Order preliminarily approving the settlement and certifying a class, and providing for mailing of the Notice to class members. On December 16, 2016, following mailing of the Notice to the class in accordance with the Preliminary Approval Order and a hearing on the proposed settlement, the Business Court entered the Final Order and Judgment approving the proposed settlement, awarding plaintiff $300,000 in attorneys' fees and expenses, and dismissing the action with prejudice. The fact of the settlement and Pinnacle Financial's and Avenue's agreement to make the supplemental disclosures in connection therewith should not be construed as an admission of wrongdoing or liability by any defendant. The defendants have vigorously denied, and continue to vigorously deny, any wrongdoing or liability with respect to the facts and claims asserted, or which could have been asserted, in the Bushansky Bushansky |
Salary Deferral Plans
Salary Deferral Plans | 12 Months Ended |
Dec. 31, 2016 | |
Salary Deferral Plan [Abstract] | |
Salary Deferral Plans | Note 14. Salary Deferral Plans Pinnacle Financial has a 401(k) retirement plan (the 401k Plan) covering all employees who elect to participate, subject to certain eligibility requirements. The Plan allows employees to defer up to 50% of their salary subject to regulatory limitations with Pinnacle Financial matching 100% of the first 4% of employee self-directed contributions during 2016, 2015, and 2014. Pinnacle Financial's expense associated with the matching component of the plan for each of the years in the three-year period ended December 31, 2016 was approximately $4.0 million, $2.7 million and $2.4 million, respectively, and is included in the accompanying consolidated statements of operations in salaries and employee benefits expense. Pinnacle Financial assumed nonqualified noncontributory supplemental retirement agreements (the Cavalry SRAs) for certain directors and executive officers of Cavalry Bancorp, Inc. (Cavalry), which Pinnacle Financial acquired in 2006. During 2007, Pinnacle Financial offered a settlement to all participants in the Cavalry SRAs with eleven participants accepting the settlement. Two individuals remain as participants in the Cavalry SRAs. At December 31, 2016, 2015 and 2014, included in other liabilities is $1.2 million, $1.3 million, and $1.4 million, respectively, which represents the net present value of the future obligation owed the two remaining participants in the Cavalry SRAs using a discount rate of 5% at December 31, 2016, 2015 and 2014. In conjunction with the acquisition of CapitalMark, Pinnacle assumed a liability of $5.0 million associated with existing supplemental executive retirement plans. These plans provide benefits for former CapitalMark executives and will be paid out over the next 23 years. In conjunction with the acquisition of Avenue, Pinnacle assumed a liability of $8.0 million associated with existing supplemental executive retirement plans. These plans provide benefits for former Avenue executives and will be paid out over the next 26 years. The balance of all outstanding supplemental executive retirement plans at December 31, 2016 and 2015 is $14.2 million and $6.3 million, respectively, and is included in other liabilities in the accompanying consolidated balance sheets. |
Stock Options, Stock Appreciati
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units | 12 Months Ended |
Dec. 31, 2016 | |
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units [Abstract] | |
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units | Note 15. Stock Options, Stock Appreciation Rights and Restricted Shares As of December 31, 2016, Pinnacle Financial has one equity incentive plan under which it is able to grant awards, the 2014 Equity Incentive Plan (2014 Plan) and has assumed the stock option plan of CapitalMark (the CapitalMark Option Plan) 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. Total shares available for issuance under the 2014 Plan were approximately 995,000 shares as of December 31, 2016, inclusive of shares returned to plan reserves during the year ended December 31, 2016. The 2014 Plan also permits Pinnacle Financial to issue additional awards to the extent that currently outstanding awards are subsequently forfeited, settled in cash or expired unexercised and returned to the 2014 Plan. Upon the acquisition of CapitalMark, Pinnacle Financial assumed approximately 858,000 of stock options under the CapitalMark Plan. No further shares remain available for issuance under the CapitalMark Option Plan. No options were assumed upon the acquisition of Magna or Avenue as all preexisting Magna and Avenue stock options were converted to cash upon acquisition. Common Stock Options and Stock Appreciation Rights As of December 31, 2016, of the 550,490 stock options outstanding, approximately 199,000 options were granted with the intention to be incentive stock options qualifying under Section 422 of the Internal Revenue Code for favorable tax treatment to the option holder while approximately 352,000 options would be deemed non-qualified stock options and thus not subject to favorable tax treatment to the option holder. Favorable treatment generally refers to the recipient of the award not having to report ordinary income at the date of exercise. All stock options granted under the Pinnacle Financial equity incentive plans vest in equal increments over five years from the date of grant and are exercisable over a period of ten years from the date of grant. All stock options granted under the CapitalMark Plan were fully-vested at the date of the CapitalMark merger. As of December 31, 2016, there were no stock appreciation rights outstanding. A summary of stock option and stock appreciation right activity within the equity incentive plans during each of the years in the three-year period ended December 31, 2016 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters was as follows: Number Weighted- Average Exercise Price Weighted- Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (1) (000's) Outstanding at December 31, 2013 1,002,500 $ 25.77 Granted - - Stock options exercised (301,794 ) 23.21 Stock appreciation rights exercised (2) (1,586 ) 15.60 Forfeited (632 ) 24.95 Outstanding at December 31, 2014 698,488 $ 26.89 Options acquired upon acquisition of CapitalMark 858,148 17.62 Granted - - Stock options exercised (303,754 ) 24.09 Stock appreciation rights exercised (2) (1,276 ) 15.60 Forfeited (5 ) 23.88 Outstanding at December 31, 2015 1,251,601 $ 21.23 Granted - - Stock options exercised (698,673 ) 21.63 Stock appreciation rights exercised (2) (2,435 ) 15.60 Forfeited (3 ) 29.50 Outstanding at December 31, 2016 550,490 $ 20.75 2.61 $26,728 Outstanding and expected to vest at December 31, 2016 550,490 $ 20.75 2.61 $26,728 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial Common Stock of $69.30 per common share at December 31, 2016 for the 550,490 options that were in-the-money at December 31, 2016. (2) The 1,586 stock appreciation rights exercised during 2014 settled in 609 shares of Pinnacle Financial Common Stock. The 1,276 stock appreciation rights exercised during 2015 settled in 559 shares of Pinnacle Financial Common Stock. The 2,435 stock appreciation rights exercised during 2016 settled in 1,137 shares of Pinnacle Financial Common Stock. During each of the years in the three-year period ended December 31, 2016, the aggregate intrinsic value of options and stock appreciation rights exercised under Pinnacle Financial's equity incentive plans was $21.7 million, $7.6 million and $4.0 million, respectively, determined as of the date of option exercise. There have been no options granted by Pinnacle Financial since 2008. All stock option awards granted by Pinnacle Financial were fully vested during 2013. Stock options granted under the CapitalMark Plan were fully vested at the time of acquisition. As such, there was no impact on the results of operations for stock-based compensation related to stock options for the three-year period ended December 31, 2016. Restricted Shares 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 or stock appreciation rights outstanding as of December 31, 2016 under the 2014 Plan. During the three-year period ended December 31, 2016, Pinnacle Financial awarded 177,664, 231,504 and 126,117 shares of restricted stock to certain Pinnacle Financial associates and outside directors. A summary of activity for unvested restricted share awards for the years ended December 31, 2016, 2015, and 2014 follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2013 821,695 $ 19.18 Shares awarded 126,117 33.32 Conversion of restricted share units to restricted share awards 186,943 31.68 Restrictions lapsed and shares released to associates/directors (249,684 ) 18.19 Shares forfeited (35,873 ) 20.70 Unvested at December 31, 2014 849,198 $ 24.26 Shares awarded 231,504 45.71 Conversion of restricted share units to restricted share awards 43,711 34.50 Restrictions lapsed and shares released to associates/directors (240,102 ) 23.00 Shares forfeited (17,997 ) 30.01 Unvested at December 31, 2015 866,314 $ 31.39 Shares awarded 177,664 48.61 Conversion of restricted share units to restricted share awards 43,694 46.37 Restrictions lapsed and shares released to associates/directors (245,873 ) 28.39 Shares forfeited (21,260 ) 39.88 Unvested at December 31, 2016 820,539 $ 36.47 Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following tables outline restricted stock grants that were made by grant year, grouped by similar vesting criteria, during the three year period ended December 31, 2016. The table below reflects the life-to-date activity for these awards: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Withheld for taxes by participants Shares Forfeited by participants (8) Shares Unvested Time Based Awards 2014 Associates (2) 5 113,918 31,110 12,685 11,745 58,378 2015 Associates (2) 5 190,528 25,801 9,369 14,163 141,195 2015 Leadership team (3) 5 16,605 2,530 788 - 13,287 2016 Associates (2) 5 143,273 265 125 3,679 139,204 Performance Based Awards 2014 Leadership team (4) 5 186,943 63,634 9,375 4,386 109,548 2015 Leadership team (4) 5 43,711 - - - 43,711 2015 Leadership team (5) 3 11,302 - - - 11,302 2016 Leadership team (4) 3 43,694 - - - 43,694 2016 Leadership team (6) 3 15,468 - - - 15,468 Outside Director Awards (7) 2014 Outside directors 1 12,199 10,537 1,662 - - 2015 Outside directors 1 13,069 11,298 1,771 - - 2016 Outside directors 1 18,923 889 297 - 17,737 (1) Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares (or have Pinnacle Financial withhold 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 Pinnacle Financial at the time of termination. For performance-based awards, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. (2) The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. (3) These shares were awarded to individuals joining the leadership team upon acquisition of Magna. The forfeiture restrictions on these restricted share awards lapse in equal installments on the anniversary date of the grant. (4) 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 earnings and soundness targets over each year of the subsequent vesting period. Half of the awards inclde a four year vesting period while the remainder include a three year vesting period. (5) These shares were awarded to individuals joining the leadership team upon acquisition of CapitalMark. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings targets over each year of the vesting period and should the recipient thereafter remain employed by Pinnacle Financial for a subsequent vesting period. (6) These shares were awarded to individuals joining the leadership team upon acquisition of Avenue. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings targets over each year of the vesting period and should the recipient thereafter remain employed by Pinnacle Financial for a subsequent vesting period. (7) 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 attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (8) These shares represent forfeitures resulting from recipients whose employment or board membership terminated during the year ended December 31, 2016. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. Compensation expense associated with the 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 graded vesting schedule such that each traunche is amortized separately. 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 cost of the award. 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 awards typically include 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 thereafter lapsing if Pinnacle Bank achieves certain soundness levels in subsequent years. Beginning with grants made 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 for later years 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 and 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 initially 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. The following table details the Restricted Share Unit awards outstanding at December 31, 2016: Units Awarded Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Subsequent holding period per tranche (in years) Shares settled into RSAs as of period end (2) Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs 2016 73,474-110,223 26,683 2016 2 3 N/A 2017 2 2 N/A 2018 2 1 N/A 2015 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 N/A 21,856 2014 4 N/A 21,856 2015 4 N/A 21,847 2015 3 N/A 21,847 2016 3 N/A 2016 2 N/A 1) 2) 3) A summary of stock compensation expense, net of the impact of income taxes, related to restricted share awards and restricted share units for the three-year period ended December 31, 2016, follows (in thousands except per share data): 2016 2015 2014 Restricted stock expense $ 10,971 $ 6,033 $ 4,070 Income tax benefit 4,306 2,368 1,597 Restricted stock expense, net of income tax benefit $ 6,665 $ 3,665 $ 2,473 Impact on per share results from restricted stock expense: Basic $ 0.15 $ 0.10 $ 0.07 Fully diluted $ 0.15 $ 0.10 $ 0.07 |
Derivative Instruments
Derivative Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments [Abstract] | |
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 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 qualify as 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, Pinnacle Financial has no credit risk. A summary of Pinnacle Financial's interest rate swaps to facilitate customer transactions as of December 31, 2016 and December 31, 2015 is included in the following table (in thousands): December 31, 2016 December 31, 2015 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 666,572 $ 16,004 $ 396,112 $ 16,130 Pay variable / receive fixed swaps 666,572 (16,138 ) 396,112 (16,329 ) Total $ 1,333,144 $ (134 ) $ 792,224 $ (199 ) Hedge derivatives Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. December 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 Loss in Accumulated Other Comprehensive Income Interest Rate Swap $ 33,000 3 month LIBOR 2.265 % April 2016 - April 2020 (727 ) (442 ) (784 ) (476 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016 - April 2022 (1,304 ) (792 ) (1,478 ) (898 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016 - Oct. 2020 (1,081 ) (657 ) (908 ) (552 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017 - Oct. 2021 (1,200 ) (729 ) (1,112 ) (676 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018 - July 2022 (1,222 ) (743 ) (1,170 ) (711 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018 - Oct. 2022 (1,198 ) (728 ) (1,158 ) (704 ) $ 200,000 (6,732 ) (4,091 ) (6,610 ) (4,017 ) (1) No cash will be exchanged prior to the beginning of the term. Pinnacle Financial has 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 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. December 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Interest Rate Swap $ 27,500 2.090 % 1 month LIBOR July 2014 - July 2021 395 240 663 403 Interest Rate Swap 25,000 2.270 % 1 month LIBOR July 2014 - July 2022 610 371 968 588 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 874 531 1,320 802 Interest Rate Swap 30,000 2.500 % 1 month LIBOR July 2014 - July 2024 900 547 1,333 810 Interest Rate Swap - 1.048 % 1 month LIBOR August 2015 - August 2018 - - (46 ) (28 ) Interest Rate Swap - 1.281 % 1 month LIBOR August 2015 - August 2019 - - (34 ) (21 ) Interest Rate Swap 15,000 1.470 % 1 month LIBOR August 2015 - August 2020 (75 ) (46 ) (14 ) (9 ) $ 125,000 2,704 1,643 4,190 2,545 The cash flow hedges were determined to be fully effective during the periods presented. And therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps. |
Employment Contracts
Employment Contracts | 12 Months Ended |
Dec. 31, 2016 | |
Employment Contracts [Abstract] | |
Employment Contracts | Note 17. Employment Contracts Pinnacle Financial has entered into, and subsequently amended, employment agreements with four of its senior executives: the President and Chief Executive Officer, the Chairman of the Board, the Chief Administrative Officer and the Chief Financial Officer. These agreements, as amended, automatically renew each year on January 1 for an additional year unless any of the parties to the agreements gives notice of intent not to renew the agreement prior to November 30th of the preceding year, in which case the agreement terminates 30 days later. The agreements specify that in certain defined "Terminating Events," Pinnacle Financial will be obligated to pay each of the four senior executives certain amounts, which vary according to the Terminating Event, which is based on their annual salaries and bonuses. These Terminating Events include disability, cause, without cause and other events. During 2012, Pinnacle Financial entered into, and subsequently amended, a change of control agreement with its Senior Credit Officer providing the employee with certain benefits if his employment is terminated under certain scenarios within twelve months of a change in control. This agreement automatically renews each year on January 1 unless a party to the agreement notifies the other parties of intent not to renew the agreement prior to November 30th of the preceding year, in which case the agreement terminates 30 days later. During 2016, in connection with the Avenue Merger, Pinnacle Financial entered into an employment agreement with its Vice Chairman. This agreement is on similar terms as the other employment agreements, except that it provides for a fixed three-year term and does not automatically renew. |
Related Party Transactions
Related Party Transactions | 12 Months Ended |
Dec. 31, 2016 | |
Related Party Transactions [Abstract] | |
Related Party Transactions | Note 18. Related Party Transactions A local public relations company, of which one of Pinnacle Financial's former directors is a principal, has provided various services for Pinnacle Financial. During the year ended December 31, 2014, Pinnacle Financial incurred approximately $36,000 in expenses relating to services rendered by this public relations company. During 2015, no expenses were incurred relating to services rendered. This director's term ended during the year ended December 31, 2016 and therefore the relationship was no longer considered to be a related party transaction. During the year ended December 31, 2016, $20,000 in expenses were incurred relating to services rendered by this public relations company. Also see Note 6 - "Loans and Allowance for Loan Losses", concerning loans and other extensions of credit to certain directors, officers, and their related entities and individuals and Note 14 – "Salary Deferral Plans" regarding supplemental retirement agreement obligations to two directors who were formerly directors of Cavalry. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 19. 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 Other investments Other assets Collateral dependent nonaccrual loans Other real estate owned Liabilities Other liabilities – The following tables present the financial instruments carried at fair value on a recurring basis as of December 31, 2016 and 2015, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): December 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 $ 250 $ - $ 250 $ - U.S. government agency securities 21,769 - 21,769 - Mortgage-backed securities 976,626 - 976,626 - State and municipal securities 212,720 - 212,720 - Asset- backed securities 78,580 - 78,580 - Corporate notes and other 8,601 - 8,601 - Total investment securities available-for-sale 1,298,546 - 1,298,546 - Alternative investments 10,478 - - 10,478 Other assets 13,340 - 13,340 - Total assets at fair value $ 1,322,364 $ - $ 1,311,886 $ 10,478 Other liabilities $ 15,758 $ - $ 15,758 $ - Total liabilities at fair value $ 15,758 $ - $ 15,758 $ - December 31, 2015 Investment securities available-for-sale: U.S. government agency securities $ 128,193 $ - $ 128,193 $ - Mortgage-backed securities 582,916 - 582,916 - State and municipal securities 165,042 - 165,042 - Asset- backed securities 48,801 - 48,801 - Corporate notes and other 10,113 - 10,113 - Total investment securities available-for-sale 935,065 - 935,065 - Alternative 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 December 31, 2016 and 2015 (in thousands): December 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 period ended Other real estate owned $ 6,090 $ - $ - $ 6,090 $ (135 ) Nonaccrual loans, net (1) 26,506 - - 26,506 (7,173 ) Total $ 32,596 $ - $ - $ 32,596 $ (7,308 ) December 31, 2015 Other real estate owned $ 5,083 $ - $ - $ 5,083 $ (41 ) Nonaccrual loans, net (1) 25,690 - - 25,690 (2,637 ) Total $ 30,773 $ - $ - $ 30,773 $ (2,678 ) (1) Amount is net of a valuation allowance of $1.1 million and $3.7 million at December 31, 2016 and 2015, respectively, as required by ASC 310-10, "Receivables." In the case of the bond portfolio, Pinnacle Financial monitors the valuation technique utilized by various pricing agencies 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 year ended December 31, 2016, there were no The table below includes a rollforward of the balance sheet amounts for the year ended December 31, 2016 for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy measured at fair value on a recurring basis including changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands): For the year ended December 31, 2016 2015 Other assets Other liabilities Other assets Other liabilities Fair value, January 1 $ 9,764 $ - $ 8,004 $ - Total net realized losses included in income 131 - 149 - Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31 - - - - Purchases 1,639 - 2,254 - Issuances - - - - Settlements (1,056 ) - (643 ) - Transfers out of Level 3 - - - - Fair value, December 31 $ 10,478 $ - $ 9,764 $ - Total realized losses included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31 $ 131 $ - $ 149 $ - 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 December 31, 2016 and 2015, respectively. 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. Held-to-maturity securities Loans 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 The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at December 31, 2016 and 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. December 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 $ 25,251 $ 25,233 $ - $ 25,233 $ - Loans, net 8,390,944 8,178,982 - - 8,178,982 Mortgage loans held-for-sale 47,710 47,892 - 47,892 - Commercial loans held-for-sale 22,588 22,674 - 22,674 - Financial liabilities: Deposits and securities sold under agreements to repurchase 8,845,014 8,579,664 - - 8,579,664 Federal Home Loan Bank advances 406,304 406,491 - - 406,491 Subordinated debt and other borrowings 350,768 328,049 - - 328,049 Off-balance sheet instruments: Commitments to extend credit (2) 3,374,269 383 - - 383 Standby letters of credit (3) 131,418 740 - - 740 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 141,606 131,494 - - 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 period, 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 both December 31, 2016 and 2015, respectively, Pinnacle Financial included in other liabilities $383,000 and $1.0 million representing the inherent risks associated with these off-balance sheet commitments. (3) At December 31, 2016 and 2015, the fair value of Pinnacle Financial's standby letters of credit was $740,000 and $354,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, 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 | 12 Months Ended |
Dec. 31, 2016 | |
Other borrowings [Abstract] | |
Other borrowings | Note 20. Other Borrowings On July 30, 2015, Pinnacle Bank issued $60.0 million in aggregate principal amount of Fixed-to-Floating Rate Subordinated Notes due 2025 ("Pinnacle Bank Notes") in a private placement transaction to institutional accredited investors. On March 10, 2016, Pinnacle Bank issued an additional $70.0 million in aggregate principal amount of the Pinnacle Bank Notes. The Pinnacle Bank Notes issued on March 10, 2016 were priced at 99.023% of the principal amount per note, for an effective interest rate of 5.125%. The maturity date of the Pinnacle Bank Notes is July 30, 2025, although Pinnacle Bank may redeem some or all of the Pinnacle Bank 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 Pinnacle Bank Notes to be redeemed plus accrued and unpaid interest to the date of redemption, subject to the prior approval of the FDIC. Pinnacle Bank may redeem the Pinnacle Bank Notes at any time upon the occurrence of certain tax events, capital events or investment company events. From the date of the issuance through July 29, 2020, the Pinnacle Bank 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 Pinnacle Bank 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 Pinnacle Bank Notes. The sale of the Pinnacle Bank Notes on July 30, 2015 yielded net proceeds of $59 million after deducting the placement agents' fees and expenses payable by Pinnacle Bank. Pinnacle Bank used the net proceeds from the July 30, 2015 offering, together with available cash, to pay the cash portion of the merger consideration payable to the shareholders of CapitalMark and Magna in connection with those mergers, to pay the amounts necessary to redeem the preferred shares that each of CapitalMark and Magna had issued to the United States Department of the Treasury in connection with their participation in the Treasury's Small Business Lending Fund and for general corporate purposes. The sale of the Pinnacle Bank Notes on March 10, 2016 yielded net proceeds of approximately $68.4 million after deducting the initial purchasers' discount and expenses payable by Pinnacle Bank. Pinnacle Bank used the net proceeds from the March 1, 2016 offering for general corporate purposes, (including the repayment of short term borrowings of Pinnacle Bank used to pay a portion of the cash portion of the purchase price for the additional equity interests of BHG acquired by Pinnacle Bank on March 1, 2016). On March 29, 2016, Pinnacle Financial entered into a revolving credit agreement with a bank for borrowings of up to $75 million (the Loan Agreement). Borrowings under the revolving credit facility have been used to fund the cash portion of the purchase price of Avenue and to support capital contributions to Pinnacle Bank. Future borrowings may be used 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 borrowings. At December 31, 2016 there were no borrowings under the Loan Agreement, which terminates on March 28, 2017. Upon consummation of the Avenue Merger, Pinnacle Financial assumed Avenue's obligations under its outstanding $20.0 million subordinated notes issued on December 29, 2014 (Avenue Subordinated Notes). The Avenue Subordinated Notes mature on December 29, 2024 and bear interest at a rate of 6.75% per annum until January 1, 2020. Beginning on January 1, 2020, the Avenue Subordinated 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%. Interest on the Avenue Subordinated Notes is payable quarterly in arrears on January 1, April 1, July 1 and October 1 of each year, through December 29, 2024 or the earlier date of redemption of all of the Avenue Subordinated Notes. These Avenue Subordinated Notes were recorded at fair value as of the acquisition date, and included a discount of $2.7 million, which will be accreted over the life of these notes. The Avenue Subordinated Notes will be redeemable by Pinnacle Financial, in whole or in part, on or after January 1, 2020, subject to prior approval of the Federal Reserve, or, in whole but not in part, upon the occurrence of certain specified tax events, capital events or investment company events. The Avenue Subordinated Notes are not subject to redemption at the option of the holders. On November 16, 2016, Pinnacle Financial completed the issuance, through a private placement, of $120.0 million aggregate principal amount of Fixed–to-Floating Rate Subordinated Notes due November 16, 2026 (the "Pinnacle Financial Notes") to certain institutional accredited investors. The Pinnacle Financial Notes bear a fixed interest rate of 5.25 percent per annum until November 16, 2021 subject to prior approval of the Federal Reserve, payable semi-annually in arrears. From November 16, 2021, the Pinnacle Financial Notes will bear a floating rate of interest equal to 3-Month LIBOR + 3.884 percent per annum until their maturity on November 16, 2026, or such earlier redemption date, payable quarterly in arrears. The Pinnacle Financial Notes will be redeemable by the Company, in whole or in part, on or after November 16, 2021, subject to prior approval by the Federal Reserve, or, in whole but not in part, upon the occurrence of certain specified tax events, capital events or investment company events. The Pinnacle Financial Notes are not subject to redemption at the option of the holders. The sale of the Pinnacle Financial Notes yielded net proceeds of approximately $118.3 million, and the Pinnacle Financial Notes qualify initially as Tier 2 capital for regulatory purposes. The Company used approximately $57.0 million of the net proceeds to retire all of the outstanding debt under the Company's $75.0 million revolving credit facility entered into in March 2016. The Company has contributed $50.0 million of the net proceeds to Pinnacle Bank and has retained the remaining net proceeds for general corporate purposes. The foregoing description does not purport to be a complete description of the Pinnacle Financial Notes. The subordinated debt is recorded net of associated financing fees, fair value adjustments, in accordance with ASU No. 2015-03, Simplifying the Presentation of Debt Issuance Costs and totals $268.3 million as of December 31, 2016, compared to $59.1 million at December 31, 2015, net of associated debt issuance costs and fair value adjustments upon acquisition. |
Variable Interest Entities
Variable Interest Entities | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Variable Interest Entities | Note 21. Variable Interest Entities Under ASC 810, Pinnacle Financial is deemed to be the primary beneficiary and required to consolidate a variable interest entity (VIE) if it has a variable interest in the VIE that provides it with a controlling financial interest. For such purposes, the determination of whether a controlling financial interest exists is based on whether a single party has both the power to direct the activities of the VIE that most significantly impact the VIE's economic performance and the obligation to absorb losses of the VIE or the right to receive benefits from the VIE that could potentially be significant to the VIE. ASC 810 requires continual reconsideration of conclusions reached regarding which interest holder is a VIE's primary beneficiary and disclosures surrounding those VIE's which have not been consolidated. The consolidation methodology provided in this footnote as of December 31, 2016 and 2015 has been prepared in accordance with ASC 810. Non-consolidated Variable Interest Entities At December 31, 2016, Pinnacle Financial did not have any consolidated variable interest entities to disclose but did have the following non-consolidated variable interest entities: low income housing partnerships, trust preferred issuances, troubled debt restructuring commercial loans, and managed discretionary trusts. Since 2003, Pinnacle Financial has made equity investments as a limited partner in various partnerships that sponsor affordable housing projects. The purpose of these investments is to achieve a satisfactory return on capital and to support Pinnacle Financial's community reinvestment initiatives. The activities of the limited partnerships include the identification, development, and operation of multi-family housing that is leased to qualifying residential tenants generally within Pinnacle Financial's primary geographic region. These partnerships are considered VIEs because Pinnacle Financial, as the holder of the equity investment at risk, does not have the ability to direct the activities that most significantly affect the success of the entity through voting rights or similar rights. While Pinnacle Financial could absorb losses that are significant to these partnerships as it has a risk of loss for its initial capital contributions and funding commitments to each partnership, it is not considered the primary beneficiary of the partnerships as the general partners whose managerial functions give them the power to direct the activities that most significantly impact the partnerships' economic performance and who are exposed to all losses beyond Pinnacle Financial's initial capital contributions and funding commitments are considered the primary beneficiaries. Pinnacle Financial has previously issued subordinated debt totaling $82.5 million to PNFP Statutory Trust I, II, III, and IV. These trusts are considered VIEs because Pinnacle Financial's capital contributions to these trusts are not considered "at risk" in evaluating whether the holders of the equity investments at risk in the trusts have the power through voting rights or similar rights to direct the activities that most significantly impact the entities' economic performance. These trusts were not consolidated by Pinnacle Financial because the holders of the securities issued by the trusts absorb a majority of expected losses and residual returns. For certain troubled commercial loans, Pinnacle Financial restructures the terms of the borrower's debt in an effort to increase the probability of receipt of amounts contractually due. However, Pinnacle Financial does not assume decision-making power or responsibility over the borrower's operations. Following a debt restructuring, the borrowing entity typically meets the definition of a VIE as the initial determination of whether the entity is a VIE must be reconsidered and economic events have proven that the entity's equity is not sufficient to permit it to finance its activities without additional subordinated financial support or a restructuring of the terms of its financing. As Pinnacle Financial does not have the power to direct the activities that most significantly impact such troubled commercial borrowers' operations, it is not considered the primary beneficiary even in situations where, based on the size of the financing provided, Pinnacle Financial is exposed to potentially significant benefits and losses of the borrowing entity. Pinnacle Financial has no contractual requirements to provide financial support to the borrowing entities beyond certain funding commitments established upon restructuring of the terms of the debt to allow for completion of activities which prepare the collateral related to the debt for sale. Pinnacle Financial serves as manager over certain discretionary trusts, for which it makes investment decisions on behalf of the trusts' beneficiaries in return for a management fee. The trusts meet the definition of a VIE since the holders of the equity investments at risk do not have the power through voting rights or similar rights to direct the activities that most significantly impact the entities' economic performance. However, since the management fees Pinnacle Financial receives are not considered variable interests in the trusts as all of the requirements related to permitted levels of decision maker fees are met, such VIEs are not consolidated by Pinnacle Financial because it cannot be the trusts' primary beneficiary. Pinnacle Financial has no contractual requirements to provide financial support to the trusts. The following table summarizes VIE's that are not consolidated by Pinnacle Financial as of December 31, 2016 and 2015 (in thousands): December 31, 2016 December 31, 2015 Type Maximum Loss Exposure Liability Recognized Maximum Loss Exposure Liability Recognized Classification Low Income Housing Partnerships $ 24,150 $ - $ 13,889 $ - Other Assets Trust Preferred Issuances N/A 82,476 N/A 82,476 Subordinated Debt Commercial Troubled Debt Restructurings 11,572 - 4,368 - Loans Managed Discretionary Trusts N/A N/A N/A N/A N/A |
Regulatory Matters
Regulatory Matters | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 22. Regulatory Matters Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the 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 year ended December 31, 2016, Pinnacle Bank paid $27.7 million in dividends to Pinnacle Financial. As of December 31, 2016, Pinnacle Bank could pay approximately $239.5 million of additional dividends to Pinnacle Financial without prior approval of the Commissioner of the TDFI. Pinnacle Financial initiated payment of a quarterly dividend of $0.08 per share of common stock in the fourth quarter of 2013 and has since increased the dividend to $0.12 beginning in the first quarter of 2015 and to $0.14 beginning in the first quarter of 2016. The amount and timing of all future dividend payments, if any, is subject to the discretion of Pinnacle Financial's board of directors 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 capital guidelines that involve quantitative measures of the assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. Pinnacle Financial's and Pinnacle Bank's capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings, and other factors. Quantitative measures established by regulation to ensure capital adequacy require Pinnacle Financial and its banking subsidiary to maintain minimum amounts and ratios of common equity Tier 1 capital to risk-weighted assets, Tier I capital to risk-weighted assets, total risk-based capital to risk-weighted assets and of Tier 1 capital to average assets. The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for Pinnacle Financial on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Basel III rules, also establish a capital conservation buffer of 2.5% (to be phased in over three years) above the regulatory minimum risk-based capital ratios. The capital conservation buffer is to be phased in beginning in January 2016 at 0.625% and is scheduled to increase each year by a like percentage until fully implemented in January 2019. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes, as of December 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 1 risk-based, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total capital to risk weighted assets: Pinnacle Financial $ 1,211,105 11.9 % $ 816,857 8.0 % $ 1,021,071 10.0 % Pinnacle Bank $ 1,136,782 11.2 % $ 814,254 8.0 % $ 1,017,817 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 882,654 8.6 % $ 612,643 6.0 % $ 816,857 8.0 % Pinnacle Bank $ 949,193 9.3 % $ 610,690 6.0 % $ 814,254 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 802,532 7.9 % $ 459,482 4.5 % $ 663,696 6.5 % Pinnacle Bank $ 949,070 9.3 % $ 458,018 4.5 % $ 661,581 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 882,654 8.6 % $ 412,902 4.0 % N/A N/A Pinnacle Bank $ 949,193 9.2 % $ 412,124 4.0 % $ 515,155 5.0 % At December 31, 2015 Total capital to risk weighted assets: Pinnacle Financial $ 883,085 11.2 % $ 628,500 8.0 % $ 785,624 10.0 % Pinnacle Bank $ 830,863 10.6 % $ 626,486 8.0 % $ 783,107 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 756,316 9.6 % $ 471,375 6.0 % $ 628,500 8.0 % Pinnacle Bank $ 704,095 9.0 % $ 469,864 6.0 % $ 626,486 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 676,316 8.6 % $ 353,531 4.5 % $ 510,656 6.5 % Pinnacle Bank $ 704,095 9.0 % $ 352,398 4.5 % $ 509,020 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 756,316 9.4 % $ 322,920 4.0 % N/A N/A Pinnacle Bank $ 704,095 8.8 % $ 321,991 4.0 % $ 402,489 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Parent Company Only Financial I
Parent Company Only Financial Information | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company Only Financial Information [Abstract] | |
Parent Company Only Financial Information | Note 23. Parent Company Only Financial Information The following information presents the condensed balance sheets, statements of operations, and cash flows of Pinnacle Financial as of December 31, 2016 and 2015 and for each of the years in the three-year period ended December 31, 2016 (in thousands): CONDENSED BALANCE SHEETS 2016 2015 Assets: Cash and cash equivalents $ 36,984 $ 21,740 Investments in bank 1,579,728 1,184,779 Investments in consolidated subsidiaries 5,484 9,934 Investment in unconsolidated subsidiaries: PNFP Statutory Trust I 310 310 PNFP Statutory Trust II 619 619 PNFP Statutory Trust III 619 619 PNFP Statutory Trust IV 928 928 Other investments 61,374 5,453 Current income tax receivable 6,831 10,132 Other assets 29,182 4,260 $ 1,722,059 $ 1,238,774 Liabilities and stockholders' equity: Income taxes payable to subsidiaries - 12 Subordinated debt and other borrowings 223,337 82,476 Other liabilities 2,026 675 Stockholders' equity 1,496,696 1,155,611 $ 1,722,059 $ 1,238,774 CONDENSED STATEMENTS OF OPERATIONS 2016 2015 2014 Revenues: Income from bank subsidiaries $ 27,663 19,038 21,185 Income from nonbank subsidiaries 5,198 210 193 Income from equity method investment 7,663 - - Other income (loss) 21 (132 ) 714 Expenses: Interest expense 1,997 220 468 Personnel expense, including stock compensation 10,971 7,342 5,308 Other expense 3,653 2,889 2,789 Loss before income taxes and equity in undistributed income of subsidiaries 23,924 8,665 13,527 Income tax benefit (3,428 ) (4,119 ) (3,066 ) Loss before equity in undistributed income of subsidiaries 27,352 12,874 16,593 Equity in undistributed income of bank subsidiaries 104,318 81,536 52,414 Equity in undistributed income (loss) of nonbank subsidiaries (4,445 ) 1,189 1,464 Net income $ 127,225 $ 95,509 $ 70,471 CONDENSED STATEMENTS OF CASH FLOWS 2016 2015 2014 Operating activities Net income $ 127,225 $ 95,509 $ 70,471 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization and accretion 543 - - Stock-based compensation expense 10,971 7,342 5,308 Increase in income tax payable, net (12 ) (10,870 ) - Deferred tax expense 1,025 (394 ) 27 Gains from equity method investments, net (8,350 ) - - Excess tax benefit from stock compensation (4,604 ) (4,116 ) (1,699 ) Loss (gain) on other investments 497 132 (710 ) Decrease in other assets 2,636 1,194 1,852 Increase in other liabilities 3,157 3,771 203 Equity in undistributed income of bank subsidiaries (104,318 ) (81,530 ) (52,414 ) Equity in undistributed income of nonbank subsidiaries 4,445 (1,189 ) (1,464 ) Net cash provided by (used in) operating activities 33,215 9,849 21,574 Investing activities Investment in consolidated banking subsidiaries (118,878 ) - - Investment in unconsolidated banking subsidiaries - - - Increase in equity method investment (11,400 ) - - Dividends received from equity method investment 3,255 - - Increase in other investments (710 ) (335 ) (397 ) Net cash provided by (used in) investing activities (127,733 ) (335 ) (397 ) Financing activities Net (decrease) increase in subordinated debt and other borrowings 118,294 (13,682 ) (2,500 ) Exercise of common stock options and stock appreciation rights, net of repurchase of restricted shares 11,589 3,603 6,422 Excess tax benefit from stock compensation 4,604 4,116 1,699 Common dividends paid (24,725 ) (18,307 ) (11,398 ) Net cash used in financing activities 109,762 (24,270 ) (5,777 ) Net increase (decrease) in cash 15,244 (14,756 ) 15,400 Cash and cash equivalents, beginning of year 21,740 36,496 21,096 Cash and cash equivalents, end of year $ 36,984 $ 21,740 $ 36,496 Pinnacle Bank is subject to restrictions on the payment of dividends to Pinnacle Financial under Tennessee banking laws. Pinnacle Bank paid dividends of $27.7 million, $19.0 million and $21.2 million, respectively to Pinnacle Financial in each of the years ended December 31, 2016, 2015 and 2014. |
Quarterly Financial Results (un
Quarterly Financial Results (unaudited) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Results (unaudited) [Abstract] | |
Quarterly Financial Results (unaudited) | Note 24. Quarterly Financial Results (unaudited) A summary of selected consolidated quarterly financial data for each of the years in the three-year period ended December 31, 2016 follows: (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Interest income $ 80,974 $ 83,762 $ 97,380 $ 101,493 Net interest income 73,902 75,044 86,635 89,413 Provision for loan losses 3,894 5,280 6,108 3,046 Net income before taxes 41,800 46,546 48,693 54,345 Net income 27,964 30,787 32,377 36,097 Basic net income per share $ 0.70 $ 0.75 $ 0.71 $ 0.79 Diluted net income per share $ 0.68 $ 0.73 $ 0.71 $ 0.78 2015 Interest income $ 54,679 $ 55,503 $ 67,192 $ 77,797 Net interest income 51,269 51,831 62,059 71,475 Provision for loan losses 315 1,186 2,228 5,459 Net income before taxes 32,617 33,917 36,134 40,432 Net income 21,843 22,665 24,149 26,854 Basic net income per share $ 0.62 $ 0.65 $ 0.64 $ 0.67 Diluted net income per share $ 0.62 $ 0.64 $ 0.62 $ 0.65 2014 Interest income $ 49,291 $ 50,564 $ 52,782 $ 53,533 Net interest income 45,908 47,226 49,537 50,313 Provision for loan losses 488 254 851 2,041 Net income before taxes 24,506 25,668 27,215 28,264 Net income 16,367 17,170 18,197 18,737 Basic net income per share $ 0.47 $ 0.49 $ 0.52 $ 0.54 Diluted net income per share $ 0.47 $ 0.49 $ 0.52 $ 0.53 |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation — |
Use of Estimates | Use of Estimates — |
Impairment | Impairment — Goodwill is evaluated for impairment at least annually and more frequently if events and circumstances indicate that the asset might be impaired. The Accounting Standards Codification (ASC) 350, Goodwill and Other Should Pinnacle Financial's common stock price decline or other impairment indicators become known, additional impairment testing of goodwill may be required. Should it be determined in a future period that the goodwill has become impaired, then a charge to earnings will be recorded in the period such determination is made. The following table presents activity for goodwill and other intangible assets: Goodwill Core deposit and other intangible assets Total Balance at December 31, 2015 $ 432,232 $ 10,540 $ 442,772 Acquisitions 122,672 8,845 131,517 Amortization - (4,281 ) (4,281 ) Change in purchase price allocation of previous acquisitions (3,125 ) - (3,125 ) Other changes (1) (185 ) - (185 ) Balance at December 31, 2016 $ 551,594 $ 15,104 $ 566,698 (1) Represents options exercised related to acquisitions which occurred prior to the adoption of ASC 718-20 Compensation The following table presents the gross carrying amount and accumulated amortization for the core deposit and other intangible assets, which are subject to amortization: December 31, 2016 December 31, 2015 Gross carrying amount $ 42,365 $ 33,520 Accumulated amortization (27,261 ) (22,980 ) Net book value 15,104 10,540 |
Cash Equivalents and Cash Flows | Cash Equivalents and Cash Flows — For the years ended December 31, 2016 2015 2014 Cash Payments: Interest $ 37,002,870 $ 17,435,292 $ 13,414,134 Income taxes paid 49,503,637 45,715,968 31,350,000 Noncash Transactions: Loans charged-off to the allowance for loan losses 31,112,118 21,148,034 7,702,661 Loans foreclosed upon with repossessions transferred to other real estate 4,453,060 341,342 4,649,852 Loans foreclosed upon with repossessions transferred to other repossessed assets 1,842,318 8,259,368 2,262,573 Common stock issued in connection with acquisitions 222,162,640 269,492,990 - |
Securities | Securities — Interest and dividends on securities, including amortization of premiums and accretion of discounts calculated under the effective interest method, are included in interest income. For certain securities, amortization of premiums and accretion of discounts is computed based on the anticipated life of the security which may be shorter than the stated life of the security. Realized gains and losses from the sale of securities are determined using the specific identification method, and are recorded on the trade date of the sale. |
Other-than-temporary Impairment | Other-than-temporary Impairment — 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, 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. Resultantly, other-than-temporary charges may be incurred as management's intention related to a particular security changes. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of the securities' issuer 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. There is also 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. |
Mortgage loans held-for-sale | Loans held-for-sale — L oa |
Loans | Loans — Loans are reported at their outstanding principal balances, net of the allowance for loan losses and any deferred fees or costs on originated loans. Interest income on loans is accrued based on the principal balance outstanding. Loan origination fees, net of certain loan origination costs, are deferred and recognized as an adjustment to the related loan yield using a method which approximates the interest method. At December 31, 2016 and 2015, net deferred loan fees of $7.6 million and $4.2 million respectively, were included in loans on the accompanying consolidated balance sheets. As part of our routine credit monitoring process, commercial loans receive risk ratings by the assigned financial advisor and are subject to validation by our 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 outlined by Pinnacle Bank's primary federal regulator. At December 31, 2016, approximately 79% of Pinnacle Financial's loan portfolio was assigned a specifically assigned risk rating in the allowance for loan loss assessment. Certain consumer loans and commercial relationships that possess certain qualifying characteristics, including individually smaller balances, are generally not assigned an individual risk rating but are evaluated collectively for credit risk as a homogenous pool of loans and individually as either accrual or nonaccrual based on the performance of the loan. Loans are placed on nonaccrual status when there is a significant deterioration in the financial condition of the borrower, which generally is the case but is not limited to when the principal or interest is more than 90 days past due, unless the loan is both well-secured and in the process of collection. All interest accrued but not collected for loans that are placed on nonaccrual status is reversed against current interest income. Interest income is subsequently recognized only if certain cash payments are received while the loan is classified as nonaccrual, but interest income recognition is reviewed on a case-by-case basis to determine if the payment should be applied to interest or principal pursuant to regulatory guidelines. A nonaccrual loan is returned to accruing status once the loan has been brought current as to principal and interest and collection is reasonably assured or the loan has been well-secured through other techniques. All loans that are placed on nonaccrual status are further analyzed to determine if they should be classified as impaired loans. A loan is considered to be impaired when it is probable Pinnacle Financial will be unable to collect all principal and interest payments due in accordance with the contractual terms of the loan. This determination is made using a variety of techniques, which include a review of the borrower's financial condition, debt-service coverage ratios, global cash flow analysis, guarantor support, other loan file information, meetings with borrowers, inspection or reappraisal of collateral and/or consultation with legal counsel as well as results of reviews of other similar industry credits (e.g. builder loans, development loans, church loans, etc.). Loans are charged off when management believes that the full collectability of the loan is unlikely. As such, a loan may be partially charged-off after a "confirming event" has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. |
Purchased Loans | Purchased Loans At the time of acquisition, management evaluates all purchased loans using a variety of factors such as current classification or risk rating, past due status and history as a component of the fair value determination. For those purchased loans without evidence of credit deterioration, management evaluates each reviewed loan using an internal grading system with a grade assigned to each loan at the date of acquisition. To the extent that any purchased loan is not specifically reviewed, such loan is assumed to have characteristics similar to the characteristics of the specifically reviewed acquired portfolio of purchased loans. The grade for each purchased loan without evidence of credit deterioration is reviewed subsequent to the date of acquisition any time a loan is renewed or extended or at any time information becomes available to Pinnacle Financial that provides material insight regarding the loan's performance, the borrower's capacity to repay or the underlying collateral. In determining the Day 1 Fair Values of purchased loans without evidence of post-origination credit deterioration at the date of acquisition, management includes (i) no carry over of any previously recorded ALL and (ii) an adjustment of the unpaid principal balance to reflect an appropriate market rate of interest and expected loss, given the risk profile and grade assigned to each loan. This adjustment is accreted into earnings as a yield adjustment, using the effective yield method, over the remaining life of each loan. Purchased loans that contain evidence of credit deterioration on the date of purchase are individually evaluated by management to determine the estimated fair value of each loan. This evaluation includes no carryover of any previously recorded ALL. In determining the estimated fair value of purchased loans with evidence of credit deterioration, management considers a number of factors including, among other things, the remaining life of the acquired loans, estimated prepayments, estimated loss ratios, estimated value of the underlying collateral, estimated holding periods, and net present value of cash flows expected to be received. In determining the Day 1 Fair Values of purchased loans with evidence of credit deterioration, management calculates a non-accretable difference (the credit risk component of the purchased loans) and an accretable difference (the yield component of the purchased loans). The non-accretable difference is the difference between the contractually required payments and the cash flows expected to be collected in accordance with management's determination of the Day 1 Fair Values. Subsequent increases in expected cash flows will result in an adjustment to accretable yield, which will have a positive impact on interest income. Subsequent decreases in expected cash flows will generally result in increased provision for loan losses. Subsequent increases in expected cash flows following any previous decrease will result in a reversal of the provision for loan losses to the extent of prior charges and then an adjustment to accretable yield. The accretable difference on purchased loans with evidence of credit deterioration is the difference between the expected cash flows and the net present value of expected cash flows. Such difference is accreted into earnings using the effective yield method over the term of the loans. For purchased loans with evidence of credit deterioration for which the expected cash flows cannot be forecasted, these loans are deemed to be collateral dependent, are recorded at their fair value and are placed on nonaccrual. |
Allowance for Loan Losses | Allowance for Loan Losses (allowance) Pinnacle Financial's allowance for loan losses is composed of the result of two independent analyses pursuant to the provisions of ASC 450-20, Loss Contingencies Receivables In assessing the adequacy of the allowance, Pinnacle Financial also considers the results of Pinnacle Financial's ongoing independent loan review process. Pinnacle Financial undertakes this process both to ascertain those loans in the portfolio with elevated credit risk and to assist in its overall evaluation of the risk characteristics of the entire loan portfolio. Its loan review process includes the judgment of management, independent internal loan reviewers, and reviews that may have been conducted by third-party reviewers including regulatory examiners. Pinnacle Financial incorporates relevant loan review results in the allowance. The ASC 450-20 component of the allowance for loan losses begins with a migration analysis based on Pinnacle Financial's internal system of risk rating, if applicable, and historical loss data in its portfolio, by loan type. The migration analysis accumulates losses realized over a rolling four-quarter cycle and is utilized to determine an annualized loss rate for each category for each quarter-end in our look-back period. The look-back period in our migration analysis includes 24 quarters as Pinnacle Financial believes this period is representative of an economic cycle. An average of the loss rates calculated within each category is calculated for each quarter-end in the look-back period. Average loss rates by category are then applied to the end of period loan portfolio. The estimated losses by category are then adjusted by a loss emergence period for each type of loan in our portfolio. A loss emergence period represents the length of time from the initial event which triggered the loss to the recognition of the loss and is validated annually. The loss emergence period was determined for the losses in each category of loans and then applied to the loss rates resulting from the migration analysis. Combined, this provides a quantitative estimate of the results in credit losses inherent in Pinnacle Financial's end of period loan portfolio based on its actual loss experience. The estimated loan loss allocation for all loan segments is then adjusted for management's estimate of probable losses for a number of qualitative factors that have not been considered in the loan migration analysis. The qualitative categories and the measurements used to quantify the risks within each of these categories are subjectively selected by management, but measured by objective measurements period over period. The data for each measurement may be obtained from internal or external sources. The current period measurements are evaluated and assigned a factor commensurate with the current level of risk relative to past measurements over time. The resulting factor is applied to the non impaired loan portfolio. This amount represents estimated probable inherent credit losses which exist, but have not yet been identified either in its risk rating or impairment process, as of the balance sheet date, and is based upon quarterly trend assessments in portfolio concentrations, policy exceptions, economic conditions, lending staff performance, independent loan review results, collateral considerations, credit quality, competition and regulatory requirements, enterprise wide risk assessments, and peer group credit quality. The qualitative allowance allocation, as determined by the processes noted above, is increased or decreased for each loan segment based on the assessment of these various qualitative factors. The allowance for loan losses for purchased loans is calculated similar to that utilized for legacy Pinnacle Bank loans. Pinnacle Financial's accounting policy is to compare the computed allowance for loan losses for purchased loans to the remaining fair value adjustment. If the computed allowance at the loan level 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. The ASC 450-20 portion of the allowance includes a small unallocated component. Pinnacle Financial believes that the unallocated amount is warranted for inherent factors that cannot be practically assigned to individual loan categories, such as the imprecision in the overall loss allocation measurement process, the subjectivity risk of potentially not considering all relevant environmental categories and related measurements and imprecision in its credit risk ratings process. The appropriateness of the unallocated component of the allowance is assessed each quarter end based upon changes in the overall business environment not otherwise captured. The impaired loan allowance is determined pursuant to ASC 310-10-35. Loans are impaired when, based on current information and events, it is probable that we will be unable to collect all amounts due according to the contractual terms of the loan agreement. Collection of all amounts due according to the contractual terms means collecting all interest and principal payments of a loan as scheduled in the loan agreement. This evaluation is inherently subjective as it requires material estimates including the amounts and timing of future cash flows expected to be received on impaired loans that may be susceptible to significant change. Loan losses are charged off when management believes that the full collectability of the loan is unlikely. A loan may be partially charged-off after a "confirming event" has occurred which serves to validate that full repayment pursuant to the terms of the loan is unlikely. An impairment allowance is recognized if the fair value of the loan is less than the recorded investment in the loan (recorded investment in the loan is the principal balance plus any accrued interest, net of deferred loan fees or costs and unamortized premium or discount). The impairment is recognized through the provision for loan losses and is a component of the allowance for loan losses. Loans that are impaired are recorded at the present value of expected future cash flows discounted at the loan's effective interest rate, or if the loan is collateral dependent, at the fair value of the collateral, less estimated disposal costs. If the loan is collateral dependent, the principal balance of the loan is charged-off in an amount equal to the impairment measurement. The fair value of collateral dependent loans is derived primarily from collateral appraisals performed by independent third-party appraisers. Management believes it follows appropriate accounting and regulatory guidance in determining impairment and accrual status of impaired loans. This analysis is completed for all individual loans greater than $250,000. The resulting allowance percentage by segment adjusted for specific trends identified, if applicable, is then applied to the remaining population of impaired loans. Pursuant to the guidance set forth in ASU No. 2011-02, A Creditor's Determination of Whether a Restructuring is a Troubled Debt Restructuring, Sufficiency of the computed allowance is then tested by comparison to historical trends and industry and peer information. Pinnacle Financial then evaluates the result of the procedures performed, including the results of our testing, and concludes on the appropriateness of the balance of the allowance in its entirety. The audit committee of the board of directors reviews and approves the methodology and resultant allowance prior to the filing of quarterly and annual financial information. While its policies and procedures used to estimate the allowance for loan losses, as well as the resultant provision for loan losses charged to income, are considered adequate by management and are reviewed from time to time by regulators, they are necessarily approximate and imprecise. There are factors beyond its control, such as conditions in the local, national, and international economy, a local real estate market or particular industry conditions which may negatively impact materially asset quality and the adequacy of the allowance for loan losses and thus the resulting provision for loan losses. |
Transfers of Financial Assets | Transfers of Financial Assets — |
Premises and Equipment and Leaseholds | Premises and Equipment and Leaseholds — Pinnacle Bank is the lessee with respect to several office locations. All such leases are being accounted for as operating leases within the accompanying consolidated financial statements, with the exception of the one capital lease agreement discussed below. Several of these leases include rent escalation clauses. Pinnacle Bank expenses the costs associated with these escalating payments over the life of the expected lease term using the straight-line method. At December 31, 2016, the deferred liability associated with these escalating rentals was approximately $3.0 million and is included in other liabilities in the accompanying consolidated balance sheets. Pinnacle Bank has one lease being accounted for as a capital lease within the accompanying consolidated financial statements. Amortization of property under the capital lease is expensed over the life of the expected lease term using the straight-line method and is included in depreciation expense. |
Other Real Estate Owned | Other Real Estate Owned — Included in the accompanying consolidated balance sheet at December 31, 2016 is $6.5 million of OREO with related property-specific valuation allowances of $381,000. At December 31, 2015, OREO totaled $6.6 million with related property-specific valuation allowances of $1.5 million. During the years ended December 31, 2016, 2015 and 2014, Pinnacle Financial had expense of $396,000, a benefit of $306,000 and expense of $664,000, respectively, of net foreclosed real estate expense. Of the net foreclosed real estate expenses, $141,000 were realized losses on the disposition and holding losses on valuations of OREO properties during the year ended December 31, 2016 compared to realized gains and holding losses on valuations of OREO properties of $434,000 and $552,000, respectively, during the years ended December 31, 2015 and 2014. |
Other Assets | Other Assets — Pinnacle Financial is required to maintain certain minimum levels of equity investments with certain regulatory and other entities in which Pinnacle Bank has outstanding borrowings, including the Federal Home Loan Bank of Cincinnati. At December 31, 2016 and 2015, the cost of these investments was $31.4 million and $26.5 million, respectively. Pinnacle Financial determined that cost approximates the fair value of these investments. Additionally, Pinnacle Financial has recorded certain investments in other entities primarily non-public private equity funds, at fair value, of $8.3 million and $7.6 million at December 31, 2016 and 2015, respectively. During 2016 and 2015, Pinnacle Financial recorded net losses of $233,000 and $39,000, respectively, due to changes in the fair value of these investments. As more fully described in footnote 11, Pinnacle Financial has an investment in four Trusts valued at $2,476,000 as of December 31, 2016 and 2015. The Trusts were established to issue preferred securities, the dividends for which are paid with interest payments Pinnacle Financial makes on subordinated debentures it issued to the Trusts. Pinnacle Bank is the owner and beneficiary of various life insurance policies on certain key executives and certain current and former directors, including policies that were acquired in its mergers. Collectively, these policies are reflected in other assets in the accompanying consolidated balance sheets at their respective cash surrender values. At December 31, 2016 and 2015, the aggregate cash surrender value of these policies was approximately $150.6 million and $121.9 million, respectively. Noninterest income related to these policies was $3.5 million, $2.5 million, and $2.4 million, during the years ended December 31, 2016, 2015 and 2014, respectively. Also, as part of our compliance with the Community Reinvestment Act, we had investments in low income housing entities totaling $43.1 million and $17.1 million, net, as of December 31, 2016 and 2015, respectively. Included in our CRA investments are investments of $18.9 million and $3.2 million at December 31, 2016 and 2015, respectively, net of amortization, that qualify for federal low income housing tax credits. The investments are accounted for under the proportional amortization method. Under the proportional amortization method, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received. The amortization and benefits are recognized as a component of income tax expense in the consolidated statements of income. The investments are recorded using the cost method. |
Derivative Instruments | Derivative Instruments — Derivatives and Hedging 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 with large U.S. financial institutions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. Pinnacle Financial also has forward cash flow hedge relationships in the form of interest rate swap agreements to manage our future interest rate exposure. These derivative contracts have been designated as a hedge and, as such, changes in the fair value of the derivative instrument are recorded in other comprehensive income. Pinnacle Financial prepares written hedge documentation for all derivatives which are designated as hedges. The written hedge documentation includes identification of, among other items, the risk management objective, hedging instrument, hedged item and methodologies for assessing and measuring hedge effectiveness and ineffectiveness, along with support for management's assertion that the hedge will be highly effective. For designated hedging relationships, Pinnacle Financial performs retrospective and prospective effectiveness testing using quantitative methods and does not assume perfect effectiveness through the matching of critical terms. Assessments of hedge effectiveness and measurements of hedge ineffectiveness are performed at least quarterly. The effective portion of the changes in the fair value of a derivative that is highly effective and that has been designated and qualifies as a cash flow hedge are initially recorded in accumulated other comprehensive income (AOCI) and will be reclassified to earnings in the same period that the hedged item impacts earnings; any ineffective portion is recorded in current period earnings. Hedge accounting ceases on transactions that are no longer deemed effective, or for which the derivative has been terminated or de-designated. |
Securities Sold Under Agreements to Repurchase | Securities Sold Under Agreements to Repurchase — |
Income Taxes | Income Taxes — Income Taxes Deferred tax assets and liabilities are the expected future tax amounts for the temporary differences between carrying amounts and tax bases of assets and liabilities, computed using enacted tax rates. The net deferred tax asset is reflected as a component of other assets on the consolidated balance sheet. A valuation allowance is required for deferred tax assets if, based on available evidence, it is more likely than not that all or some portion of the asset may not be realized due to the inability to generate sufficient taxable income in the period and/or of the character necessary to utilize the benefit of the deferred tax asset. Income tax expense or benefit for the year is allocated among continuing operations and other comprehensive income (loss), as applicable. The amount allocated to continuing operations is the income tax effect of the pretax income or loss from continuing operations that occurred during the year, plus or minus income tax effects of (i) changes in certain circumstances that cause a change in judgment about the realization of deferred tax assets in future years, (ii) changes in income tax laws or rates, and (iii) changes in income tax status, subject to certain exceptions. The amount allocated to other comprehensive income (loss) is related solely to changes in the valuation allowance on items that are normally accounted for in other comprehensive income (loss) such as unrealized gains or losses on available-for-sale securities. In accordance with ASC 740-10 Accounting for Uncertainty in Income Taxes, uncertain tax positions are recognized if it is more likely than not, based on technical merits, that the tax position will be realized or sustained upon examination. The term more likely than not means a likelihood of more than 50 percent; the terms examined and upon examination also include resolution of the related appeals or litigation processes, if any. A tax position that meets the more likely than not recognition threshold is initially and subsequently measured as the largest amount of tax benefit that has a greater than 50 percent likelihood of being realized upon settlement with a taxing authority that has full knowledge of all relevant information. The determination of whether or not a tax position has met the more likely than not recognition threshold considers the facts, circumstances and information available at the reporting date. Pinnacle Financial and its subsidiaries file consolidated U.S. Federal and state of Tennessee income tax returns. Each entity provides for income taxes based on its contribution to income or loss of the consolidated group. Pinnacle Financial has a Real Estate Investment Trust subsidiary that files a separate federal tax return, but its income is included in the consolidated group's return as required by the federal tax laws. Pinnacle Financial remains open to audit under the statute of limitations by the IRS and the states in which we do business for the years ended December 31, 2013 through 2016. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. No amounts were accrued for interest and/or penalties at December 31, 2016. The amount accrued for interest and/or penalties related to State uncertain tax positions at December 31, 2015 and 2014 were $96,000 and $140,000, respectively. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. |
Income Per Common Share | Income Per Common Share — As of December 31, 2016, there were 550,490 stock options outstanding to purchase common shares. For the years ended December 31, 2016, 2015 and 2014, respectively, approximately 694,909, 958,320 and 403,555 of dilutive stock options, dilutive restricted shares, restricted share units and stock appreciation rights were included in the diluted earnings per share calculation under the treasury stock method. For the years ended December 31, 2016, 2015 and 2014, there were no stock options, restricted shares, restricted share units and stock appreciation rights excluded from the calculation because they were deemed to be antidilutive. The following is a summary of the basic and diluted earnings per share calculation for each of the years in the three-year period ended December 31, 2016: December 31, 2016 December 31, 2015 December 31, 2014 Basic earnings per share calculation: Numerator $ 127,224,695 $ 95,509,402 $ 70,471,167 Denominator 43,037,083 37,015,468 34,723,335 Basic net income per common share $ 2.96 $ 2.58 $ 2.03 Diluted earnings per share calculation: Numerator $ 127,224,695 $ 95,509,402 $ 70,471,167 Denominator 43,037,083 37,015,468 34,723,335 Dilutive shares contingently issuable 694,909 958,320 403,555 Weighted average diluted common shares outstanding 43,731,992 37,973,788 35,126,890 Diluted net income per common share $ 2.91 $ 2.52 $ 2.01 |
Stock-Based Compensation | Compensation – Stock Compensation Awards Classified as Equity |
Comprehensive Income (Loss) | Comprehensive Income (Loss) — |
Fair Value Measurement | Fair Value Measurement — Fair Value Measurements and Disclosures Pinnacle Financial has an established process for determining fair values. Fair value is based upon quoted market prices, where available. If listed prices or quotes are not available, fair value is based upon internally developed models or processes that use primarily market-based or independently-sourced market data, including interest rate yield curves, option volatilities and third party information such as prices of similar assets or liabilities. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value. Furthermore, while Pinnacle Financial believes its valuation methods are appropriate and consistent with other market participants, the use of different methodologies or assumptions to determine the fair value of certain financial instruments could result in a different estimate of fair value at the reporting date. |
Mortgage Servicing Rights | Mortgage Servicing Rights — |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — Simplifying the Presentation of Debt Issuance Costs |
Description of New Accounting Pronouncements Not yet Adopted | Newly Issued not yet Effective Accounting Standards — Accounting Standards Update 2016-02 Leases In March 2016, the FASB issued updated guidance to Accounting Standards Update 2016-09 Stock Compensation Improvements to Employee Share-Based Payment Activity In June 2016, the FASB issued Accounting Standards Update 2016-13 Financial Instruments - Credit Losses: Measurement of Credit Losses on Financial Instruments In August 2016, the FASB issued Accounting Standards Update 2016-15 Statement of Cash Flows (Topic 230) In May 2014, the FASB issued Accounting Standards Update 2014-09 Revenue from Contracts with Customers (Topic 606 ) Accounting Standards Update 2015-14 Other than those pronouncements discussed above and those which have been recently adopted, there were no other recently issued accounting pronouncements that are expected to impact Pinnacle Financial. |
Subsequent Events | Subsequent Events — Subsequent Events, BNC Bancorp, a North Carolina corporation (BNC) On January 22, 2017, Pinnacle Financial entered into an Agreement and Plan of Merger (the Merger Agreement), among BNC, and Blue Merger Sub, Inc., a North Carolina corporation and a direct, wholly owned subsidiary of Pinnacle Financial (Merger Sub), pursuant to which, on the terms and subject to the conditions set forth therein, Merger Sub will merge with and into BNC (the Merger), with BNC surviving the Merger (the Surviving Company). As soon as reasonably practicable following the Merger and as a part of a single integrated transaction, Pinnacle Financial will cause the Surviving Company to be merged with and into Pinnacle Financial (the Second Step Merger), with Pinnacle Financial as the surviving entity, on the terms and subject to the conditions set forth in the Merger Agreement. Immediately following the Second Step Merger, Bank of North Carolina, a North Carolina state bank and a wholly owned subsidiary of BNC, will merge with and into Pinnacle Bank, a Tennessee state bank and a wholly owned subsidiary of Pinnacle Financial. The Merger Agreement was unanimously approved and adopted by the board of directors of Pinnacle Financial and the board of directors of BNC. Under the terms and subject to the conditions of the Merger Agreement, at the effective time of the Merger (the Effective Time), outstanding shares of common stock, no par value, of BNC (BNC Common Stock) will be converted into the right to receive 0.5235 shares (the Exchange Ratio) of Pinnacle's common stock, $1.00 per value per share (Pinnacle Financial Common Stock). As of January 13, 2017, BNC had 52,181,073 shares of BNC Common Stock outstanding, 901,726 shares of BNC Common Stock in respect of outstanding restricted stock awards and restricted stock unit awards, in the aggregate, and 66,443 outstanding stock options. The Merger Agreement also includes provisions that address the treatment of the outstanding equity awards of BNC in the Merger. Pursuant to the terms of the Merger Agreement, any outstanding options to purchase shares of BNC Common Stock that are not vested will be accelerated prior to, but conditioned on the occurrence of, the closing of the 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 the average closing prices of Pinnacle Financial's Common Stock for the ten (10) trading days ending on the trading day immediately preceding the closing date of the Merger (adjusted for the Exchange Ratio) over the exercise price of each such option and (y) the number of shares of BNC Common Stock subject to each such option. 2017 Public Offering In January 2017, we completed a public offering of approximately 3.22 million shares of our common stock in a transaction that resulted in net proceeds to us, after deducting underwriting discounts and commissions and estimated other expenses payable by us, of $191.2 million. We have contributed $185.0 million of these net proceeds to our bank subsidiary. |
Summary of Significant Accoun33
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Summary of Significant Accounting Policies [Abstract] | |
Activity for Goodwill and Other Intangible Assets | The following table presents activity for goodwill and other intangible assets: Goodwill Core deposit and other intangible assets Total Balance at December 31, 2015 $ 432,232 $ 10,540 $ 442,772 Acquisitions 122,672 8,845 131,517 Amortization - (4,281 ) (4,281 ) Change in purchase price allocation of previous acquisitions (3,125 ) - (3,125 ) Other changes (1) (185 ) - (185 ) Balance at December 31, 2016 $ 551,594 $ 15,104 $ 566,698 (1) Represents options exercised related to acquisitions which occurred prior to the adoption of ASC 718-20 Compensation |
Gross Carrying Amount and Accumulated Amortization for the Core Deposit and Other Intangible Assets | The following table presents the gross carrying amount and accumulated amortization for the core deposit and other intangible assets, which are subject to amortization: December 31, 2016 December 31, 2015 Gross carrying amount $ 42,365 $ 33,520 Accumulated amortization (27,261 ) (22,980 ) Net book value 15,104 10,540 |
Supplemental Cash Flow Information | Cash Equivalents and Cash Flows — For the years ended December 31, 2016 2015 2014 Cash Payments: Interest $ 37,002,870 $ 17,435,292 $ 13,414,134 Income taxes paid 49,503,637 45,715,968 31,350,000 Noncash Transactions: Loans charged-off to the allowance for loan losses 31,112,118 21,148,034 7,702,661 Loans foreclosed upon with repossessions transferred to other real estate 4,453,060 341,342 4,649,852 Loans foreclosed upon with repossessions transferred to other repossessed assets 1,842,318 8,259,368 2,262,573 Common stock issued in connection with acquisitions 222,162,640 269,492,990 - |
Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted earnings per share calculation for each of the years in the three-year period ended December 31, 2016: December 31, 2016 December 31, 2015 December 31, 2014 Basic earnings per share calculation: Numerator $ 127,224,695 $ 95,509,402 $ 70,471,167 Denominator 43,037,083 37,015,468 34,723,335 Basic net income per common share $ 2.96 $ 2.58 $ 2.03 Diluted earnings per share calculation: Numerator $ 127,224,695 $ 95,509,402 $ 70,471,167 Denominator 43,037,083 37,015,468 34,723,335 Dilutive shares contingently issuable 694,909 958,320 403,555 Weighted average diluted common shares outstanding 43,731,992 37,973,788 35,126,890 Diluted net income per common share $ 2.91 $ 2.52 $ 2.01 |
Acquisitions (Tables)
Acquisitions (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
CapitalMark Bank & Trust [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | With this acquisition, Pinnacle Financial expanded its presence in the East Tennessee region by expanding into the Chattanooga MSA. The following summarizes consideration paid and an 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 $ 73,186 Goodwill 152,444 $ 225,630 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | The acquired assets and liabilities, as well as the 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 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, net of allowance for loan losses (2) 880,115 (22,600 ) 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) 43,526 6,046 49,572 Total Assets $ 1,105,980 $ (10,760 ) $ 1,095,220 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 $ 85,065 $ (11,879 ) $ 73,186 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 as of the date of acquisition, 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 acquired. (4) The amount represents the adjustment 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 amount represents the adjustment 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 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 | With this acquisition, Pinnacle Financial expanded its presence in the Memphis MSA. The following summarizes consideration paid and a 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 common stockholders $ 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 $ 49,050 Goodwill 34,788 $ 83,838 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Magna As of September 1, 2015 Magna Historical Cost Basis 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 (12,429 ) 440,679 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) 31,057 4,922 35,979 Total Assets $ 582,372 $ (4,478 ) $ 577,894 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 (8) 28,043 741 28,784 Total Liabilities $ 526,329 $ 2,515 $ 528,844 Net Assets Acquired $ 56,043 $ (6,993 ) $ 49,050 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 interest rates and expected cash flows as of the date of acquisition, 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 acquired. (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. The value of the deferred tax asset was decreased by $1.9 million as a result of the completion of the 2015 tax return. (6) The amount represents the adjustment 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 amount represents the adjustment 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) The amount represents the adjustment to accrue two potential loss contingencies related to Magna's business operations that existed as of the acquisition date. |
Avenue Financial Holdings, Inc. (Avenue) [Member] | |
Business Acquisition [Line Items] | |
Schedule of Business Acquisitions, by Acquisition | The following summarizes the consideration paid and presents a preliminary allocation of purchase price to net assets acquired (dollars in thousands): Number of Shares Amount Equity consideration: Common stock issued 3,760,326 $ 182,469 Total equity consideration $ 182,469 Non-equity consideration: Cash paid to common stockholders $ 20,910 Cash paid to exchange outstanding stock options 987 Total consideration paid $ 204,366 Allocation of total consideration paid: Fair value of net assets assumed including estimated identifiable intangible assets $ 81,695 Goodwill 122,671 $ 204,366 |
Schedule of Recognized Identified Assets Acquired and Liabilities Assumed | Avenue As of July 1, 2016 Avenue Historical Cost Basis Preliminary Fair Value Adjustments As Recorded by Pinnacle Financial Assets Cash and cash equivalents $ 39,485 $ - $ 39,485 Investment securities (1) 163,862 (463 ) 163,399 Loans (2) 980,319 (27,789 ) 952,530 Mortgage loans held for sale 3,310 - 3,310 Core deposit intangible (3) - 8,845 8,845 Other assets (4) 47,729 8,774 56,503 Total Assets $ 1,234,705 $ (10,633 ) $ 1,224,072 Liabilities Interest-bearing deposits (5) $ 741,635 $ 1,400 $ 743,035 Non-interest bearing deposits 223,685 - 223,685 Borrowings (6) 142,639 3,240 145,879 Other liabilities 29,719 59 29,778 Total Liabilities $ 1,137,678 $ 4,699 $ 1,142,377 Net Assets Acquired $ 97,027 $ (15,332 ) $ 81,695 Explanation of certain fair value adjustments: (1) The amount represents the adjustment of the book value of Avenue'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 Avenue's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, 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 acquired. (4) The amount represents the deferred tax asset recognized on the fair value adjustment of Avenue's acquired assets and assumed liabilities as well as the fair value adjustment for property and equipment. (5) The amount represents the adjustment necessary because the weighted average interest rate of Avenue'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. (6) The amount represents the adjustment necessary because the weighted average interest rate of Avenue's FHLB advances and subordinated debt issuance 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 (Table
Equity method investment (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Equity Method Investment [Abstract] | |
Equity Method Investments | A summary of BHG's financial position and results of operations as of and for the years ended December 31, 2016 and 2015, respectively, were as follows (unaudited, in thousands): Banker's Healthcare Group ($ in thousands) December 31, 2016 December 31, 2015 Assets $ 223,246 $ 220,578 Liabilities 139,531 137,147 Equity interests 83,715 83,431 Total liabilities and equity $ 223,246 $ 220,578 For the year ended December 31, 2016 2015 Revenues $ 136,693 $ 144,772 Net income, pre-tax 67,135 77,748 |
Securities (Tables)
Securities (Tables) | 12 Months Ended |
Dec. 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 December 31, 2016 and 2015 are summarized as follows (in thousands): December 31, 2016 Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value Securities available-for-sale: U.S Treasury securities $ 250 $ - $ - $ 250 U.S. Government agency securities 22,306 - 537 21,769 Mortgage-backed securities 988,008 4,304 15,686 976,626 State and municipal securities 211,581 4,103 2,964 212,720 Asset-backed securities 79,318 111 849 78,580 Corporate notes 8,608 39 46 8,601 $ 1,310,071 $ 8,557 $ 20,082 $ 1,298,546 Securities held-to-maturity: State and municipal securities 25,251 87 105 25,233 $ 25,251 $ 87 $ 105 $ 25,233 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 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 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 December 31, 2016, approximately $902.9 million of Pinnacle Financial's investment portfolio was pledged to secure public funds and other deposits and securities sold under agreements to repurchase. At December 31, 2016, repurchase agreements comprised of secured borrowings totaled $85.7 million and were secured by $85.7 million of pledged U.S. government agency securities, municipal securities, asset backed securities, and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities for the counterparty to remain adequately secured. |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of December 31, 2016 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages 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 Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,533 $ 2,556 $ 594 $ 594 Due in one year to five years 60,311 61,591 10,186 10,182 Due in five years to ten years 122,753 123,769 10,586 10,567 Due after ten years 57,148 55,424 3,885 3,890 Mortgage-backed securities 988,008 976,626 - - Asset-backed securities 79,318 78,580 - - $ 1,310,071 $ 1,298,546 $ 25,251 $ 25,233 |
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | At December 31, 2016 and 2015, included in securities were the following investments with unrealized losses. The information below classifies these investments according to the term of the unrealized loss 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 December 31, 2016 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities - - 20,820 537 20,820 537 Mortgage-backed securities 801,213 15,073 43,148 613 844,361 15,686 State and municipal securities 87,277 3,068 312 1 87,589 3,069 Asset-backed securities 14,510 32 34,097 817 48,607 849 Corporate notes 4,810 46 - - 4,810 46 Total temporarily-impaired securities $ 907,810 $ 18,219 $ 98,377 $ 1,968 $ 1,006,187 $ 20,187 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 37
Loans and Allowance for Loan Losses (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Loans and Allowance for Loan Losses [Abstract] | |
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class | The following table outlines the amount of each loan classification categorized into each risk rating category as of December 31, 2016 and 2015 (in thousands): December 31, 2016 Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total Accruing loans: Pass $ 3,137,239 $ 1,159,003 $ 897,549 $ 2,782,000 $ 264,682 $ 8,240,473 Special Mention 21,449 1,620 2,716 25,641 802 52,228 Substandard (1) 29,674 13,833 5,788 65,215 129 114,639 Total 3,188,362 1,174,456 906,053 2,872,856 265,613 8,407,340 Impaired loans: Nonaccruing loans Substandard-nonaccrual 4,921 8,073 6,613 7,492 475 27,574 Doubtful-nonaccrual - - - 3 - 3 Total nonaccruing loans (3) 4,921 8,073 6,613 7,495 475 27,577 Troubled debt restructurings (2) Pass 213 1,358 7 713 41 2,332 Special Mention - 236 - - - 236 Substandard - 1,794 - 10,646 - 12,440 Total troubled debt restructurings 213 3,388 7 11,359 41 15,008 Total impaired loans 5,134 11,461 6,620 18,854 516 42,585 Total loans $ 3,193,496 $ 1,185,917 $ 912,673 $ 2,891,710 $ 266,129 $ 8,449,925 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: Nonaccruing loans Substandard-nonaccrual 5,819 9,344 7,607 1,591 4,902 29,263 Doubtful-nonaccrual 2 2 - 92 - 96 Total nonaccruing loans (3) 5,821 9,346 7,607 1,683 4,902 29,359 Troubled debt restructurings (2) 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 substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $114.6 million at December 31, 2016, compared to $105.0 million at December 31, 2015. (2) Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. (3) Included in nonaccrual loans at December 31, 2016 and 2015 are $8.8 million and $12.1 million, respectively, in loans acquired with deteriorated credit quality and accounted for as purchase credit impaired. As discussed in Note 2, during 2016, the Company acquired loans of $952.5 million from Avenue. Of the $952.5 million of net loans acquired in 2016, $951.1 million were determined to have no evidence of deteriorated credit quality and are accounted for under ASC Topics 310-10 and 310-20. Our acquired loans were recorded at fair value upon acquisition. These loans are subject to additional allowance or provisioning charges in the event there is evidence of credit deterioration. The remaining acquired loans of $1.4 million were determined to have deteriorated credit quality under ASC Topic 310-30. The table below details these two subsections of the acquired loans by loan classification into each risk rating category as of December 31, 2016 (dollars in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Fair Value Adjustment Net total acquired loans December 31, 2016 Gross contractual accruing loans Pass $ 365,797 $ 119,430 $ 114,849 $ 280,415 11,897 $ (18,893 ) $ 873,495 Special Mention 9,075 - - 570 - (142 ) 9,503 Substandard - 3,382 1,835 - - (132 ) 5,085 Total 374,872 122,812 116,684 280,985 11,897 (19,167 ) 888,083 Gross contractual impaired loans (1) Nonaccrual loans Substandard-nonaccrual - 295 404 388 73 (594 ) 566 Doubtful-nonaccrual - - - - - - - Total nonaccrual loans - 295 404 388 73 (594 ) 566 Total gross contractual acquired impaired loans - 295 404 388 73 (594 ) 566 Total gross contractual acquired loans $ 374,872 $ 123,107 $ 117,088 $ 281,373 $ 11,970 $ (19,761 ) $ 888,649 (1) All of the acquired impaired loans have been deemed to be collateral dependent and as such were placed on nonaccrual. As such, no accretable difference has been recorded on these loans. |
Purchase Credit Impaired Loans | The following table provides a rollforward of purchase credit impaired loans from December 31, 2015 through December 31, 2016 (in thousands): Gross Contractual Receivable Accretable Yield Nonaccretable Yield Carrying Value Acquisition Date $ 19,960 $ - $ (5,703 ) $ 14,257 Settlements (3,803 ) - 1,560 (2,243 ) Additional fundings 117 - - 117 December 31, 2015 16,274 - (4,143 ) 12,131 Acquisitions 1,359 - (812 ) 547 Settlements (6,017 ) - 1,322 (4,695 ) Additional fundings 852 - - 852 December 31, 2016 $ 12,468 $ - $ (3,633 ) $ 8,835 |
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans | 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. The following tables detail the recorded investment, unpaid principal balance and related allowance and average recorded investment of our nonaccrual loans at December 31, 2016, 2015 and 2014 by loan classification and the amount of interest income recognized on a cash basis throughout the year-to-date period then ended, respectively, on these loans that remain on the balance sheets (in thousands): December 31, 2016 For the year ended December 31, 2016 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Cash basis interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,308 $ 2,312 $ - $ 2,540 $ - Consumer real estate – mortgage 2,880 2,915 - 2,907 - Construction and land development 3,128 3,135 - 3,132 159 Commercial and industrial 6,373 6,407 - 8,841 - Consumer and other - - - - - Total $ 14,689 $ 14,769 $ - $ 17,420 $ 159 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 2,613 $ 3,349 $ 59 $ 2,688 $ - Consumer real estate – mortgage 5,193 5,775 688 5,966 - Construction and land development 3,485 4,154 20 3,476 - Commercial and industrial 1,122 2,714 77 2,884 - Consumer and other 475 851 227 2,624 - Total $ 12,888 $ 16,843 $ 1,071 $ 17,638 $ - Total Nonaccrual Loans $ 27,577 $ 31,612 $ 1,071 $ 35,058 $ 159 December 31, 2015 For the year ended December 31, 2015 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Cash basis 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 December 31, 2014 For the year ended December 31, 2014 Recorded investment Unpaid principal balance Related allowance (1) Average recorded investment Cash basis interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,422 $ 2,641 $ - $ 2,624 $ - Consumer real estate – mortgage 1,472 1,901 - 1,552 - Construction and land development 4,810 4,810 - 5,016 256 Commercial and industrial 1,325 1,804 - 1,561 - Consumer and other - - - - - Total $ 10,029 $ 11,156 $ - $ 10,753 $ 256 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,891 $ 2,107 $ 108 $ 1,958 $ - Consumer real estate – mortgage 2,986 3,205 654 3,080 - Construction and land development 363 406 79 384 - Commercial and industrial 284 294 62 316 - Consumer and other 1,152 1,184 252 972 - Total $ 6,676 $ 7,196 $ 1,155 $ 6,710 $ - Total Nonaccrual Loans $ 16,705 $ 18,352 $ 1,155 $ 17,463 $ 256 (1) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
Amount of Troubled Debt Restructuring Categorized by Loan Classification | The following table outlines the amount of each troubled debt restructuring by loan classification made during the years ended December 31, 2016, 2015 and 2014 (in thousands): December 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 6 11,084 11,083 Consumer and other - - - 6 $ 11,084 $ 11,083 December 31, 2015 Commercial real estate – mortgage 1 $ 223 $ 185 Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 434 337 Consumer and other - - - 2 $ 657 $ 522 December 31, 2014 Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage 1 47 38 Construction and land development 1 436 403 Commercial and industrial 10 3,628 2,646 Consumer and other - - - 12 $ 4,111 $ 3,087 During the years ended December 31, 2016, 2015 and 2014, Pinnacle Financial had no troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. A default is defined as an occurrence which violates the terms of the receivable's contract. |
Summary of Loan Portfolio Credit Risk Exposure | In addition to the loan metrics above, Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries. 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 December 31, 2016 with the comparative exposures for December 31, 2015 (in thousands): At December 31, 2016 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2015 Lessors of nonresidential buildings $ 1,294,366 $ 407,487 $ 1,701,853 $ 1,078,211 Lessors of residential buildings 526,259 347,975 874,234 500,266 New housing operative builders 229,035 157,370 386,405 206,538 Hotels and motels 127,296 164,569 291,865 167,317 |
Past Due Balances by Loan Classification | The table below presents past due balances at December 31, 2016 and 2015, by loan classification and segment allocated between performing and nonperforming status (in thousands): December 31, 2016 30-89 days past due and performing 90 days or more past due and performing Total past due and performing Nonperforming(1) Current and performing Total Loans Commercial real estate: Owner-occupied $ 3,505 $ - $ 3,505 $ 4,254 $ 1,347,134 $ 1,354,893 All other - - - 667 1,837,936 1,838,603 Consumer real estate – mortgage 3,838 53 3,891 8,073 1,173,953 1,185,917 Construction and land development 2,210 - 2,210 6,613 903,850 912,673 Commercial and industrial 4,475 - 4,475 7,495 2,879,740 2,891,710 Consumer and other 7,168 1,081 8,249 475 257,405 266,129 $ 21,196 $ 1,134 $ 22,330 $ 27,577 $ 8,400,018 $ 8,449,925 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 $16.7 million and $19.0 million of nonaccrual loans as of December 31, 2016 and 2015, respectively, are currently performing pursuant to their contractual terms. |
Details of Changes in the Allowance for Loan Losses | The following table shows the allowance allocation by loan classification for accruing and nonperforming loans at December 31, 2016 Impaired Loans Accruing Loans Nonaccrual Loans Troubled Debt Restructurings (1) Total Allowance for Loan Losses December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 December 31, 2016 December 31, 2015 Commercial real estate –mortgage $ 13,595 $ 15,452 $ 59 $ 20 $ 1 $ 41 $ 13,655 $ 15,513 Consumer real estate – mortgage 5,874 6,109 688 616 2 495 6,564 7,220 Construction and land development 3,604 2,891 20 12 - - 3,624 2,903 Commercial and industrial 24,648 22,669 77 19 18 955 24,743 23,643 Consumer and other 9,293 12,609 227 3,002 - 5 9,520 15,616 Unallocated - - - - - - 874 537 $ 57,014 $ 59,730 $ 1,071 $ 3,669 $ 21 $ 1,496 $ 58,980 $ 65,432 (1) Troubled debt restructurings of $15.0 million and $8.1 million as of December 31, 2016 and 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 December 31, 2016 by loan classification and the allocation of allowance for loan losses (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Allowance for Loan Losses: Balance at December 31, 2013 $ 21,372 $ 8,355 $ 7,235 $ 25,134 $ 1,632 $ 4,242 $ 67,970 Charged-off loans (875 ) (1,621 ) (301 ) (3,095 ) (1,811 ) - (7,703 ) Recovery of previously charged-off loans 538 671 277 1,484 487 - 3,457 Provision for loan losses 1,167 (1,981 ) (1,487 ) 5,644 1,262 (970 ) 3,635 Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Collectively evaluated for impairment $ 22,094 $ 3,963 $ 5,555 $ 28,329 $ 1,261 $ 61,202 Individually evaluated for impairment 108 1,461 169 838 309 2,885 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 22,202 $ 5,424 $ 5,724 $ 29,167 $ 1,570 $ 3,272 $ 67,359 Loans: Collectively evaluated for impairment $ 1,539,778 $ 712,774 $ 316,857 $ 1,779,347 $ 216,155 $ 4,564,911 Individually evaluated for impairment 4,313 8,384 5,609 5,382 1,428 25,116 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2014 $ 1,544,091 $ 721,158 $ 322,466 $ 1,784,729 $ 217,583 $ 4,590,027 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 $ 537 $ 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 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 (276 ) (788 ) (231 ) (5,801 ) (24,016 ) - (31,112 ) Recovery of previously charged-off loans 208 546 545 2,138 2,895 - 6,332 Provision for loan losses (1,790 ) (414 ) 407 4,763 15,025 337 18,328 Balance at December 31, 2016 $ 13,655 $ 6,564 $ 3,624 $ 24,743 $ 9,520 $ 874 $ 58,980 Collectively evaluated for impairment $ 13,595 $ 5,874 $ 3,604 $ 24,648 $ 9,293 $ 57,014 Individually evaluated for impairment 60 690 20 95 227 1,092 Loans acquired with deteriorated credit quality - - - - - - Balance at December 31, 2016 $ 13,655 $ 6,564 $ 3,624 $ 24,743 $ 9,520 $ 874 $ 58,980 Loans: Collectively evaluated for impairment $ 3,188,362 $ 1,174,456 $ 906,053 $ 2,872,856 $ 265,613 $ 8,407,340 Individually evaluated for impairment 2,750 8,941 3,212 18,331 516 33,750 Loans acquired with deteriorated credit quality 2,384 2,520 3,408 523 - 8,835 Balance at December 31, 2016 $ 3,193,496 $ 1,185,917 $ 912,673 $ 2,891,710 $ 266,129 $ 8,449,925 |
Mortgage Servicing Rights (Tabl
Mortgage Servicing Rights (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Mortgage Servicing Rights [Abstract] | |
Schedule of Mortgage Servicing Rights at Carrying Values | Mortgage servicing rights (MSRs) are recorded at the lower of cost or market in "Other assets" on Pinnacle Financial's consolidated balance sheets and are amortized over the remaining life of the loans and written off when a mortgage loan prepays prior to maturity. The financial data included herein reflects the impact of the mergers that have been consummated beginning on the respective acquisition dates and are subject to future refinements to Pinnacle Financial's purchase accounting adjustments. Mortgage servicing rights had the following carrying values as of December 31, 2015 (in thousands): 2015 Gross Carrying Amount Accumulated Amortization Net Carrying Amount Mortgage servicing rights $ 6,802 $ (390 ) $ 6,412 |
Changes in Mortgage Servicing Right | The following table provides a detail of changes in the mortgage servicing right from September 1, 2015, the closing date of the Magna Merger, to December 31, 2015: Residential Beginning balance acquired in Magna Merger $ 6,641 Add: Capitalized MSRs 161 Less: Amortization (390 ) Ending balance $ 6,412 |
Summary of Net Servicing Fee Revenues | Income and expense associated with these MSRs, which includes servicing fees, late charges, guarantee fees and loan payoff interest, is recorded on a cash basis which approximates income as would be recorded on a U.S. GAAP basis. The following table summarizes the net servicing fee revenues for the year ended December 31, 2015 (in thousands): Residential Gross servicing fees $ 1,090 Late charges and other ancillary revenue 160 Gross servicing revenue $ 1,250 Servicing asset amortization $ 386 Guaranty fees and loan pay-off interest 9 Other servicing expenses 51 Gross servicing expenses $ 446 Net servicing fee income $ 804 During the first quarter of 2016, in conjunction with a decision to exit the residential servicing line of business, Pinnacle Bank sold the mortgage servicing rights associated with the $830 million Fannie Mae portion of the residential servicing portfolio for $6.6 million, net of associated costs to sell. Approximately $241,000 was recorded as income during the year ended December 31, 2016 as a result of the sale. |
Premises and Equipment and Le39
Premises and Equipment and Lease Commitments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Premises and Equipment and Lease Commitments [Abstract] | |
Schedule of Premises and Equipment | Premises and equipment at December 31, 2016 and 2015 are summarized as follows (in thousands): Range of Useful Lives 2016 2015 Land Not applicable $ 19,467 $ 19,848 Buildings 15 to 30 years 64,088 60,218 Leasehold improvements 15 to 20 years 28,789 22,485 Furniture and equipment 3 to 15 years 62,982 56,139 175,326 158,690 Accumulated depreciation and amortization (86,422 ) (80,766 ) $ 88,904 $ 77,924 |
Schedule of Future Minimum Lease Payments Due Under Operating Leases | Pinnacle Financial has entered into various operating leases, primarily for office space and branch facilities. Rent expense related to these leases for 2016, 2015 and 2014 totaled $8.4 million, $5.9 million and $4.9 million, respectively. At December 31, 2016, the approximate future minimum lease payments due under the aforementioned operating leases for their base term are as follows (in thousands): 2017 $ 7,568 2018 7,538 2019 7,479 2020 7,457 2021 7,349 Thereafter 39,008 $ 76,399 |
Schedule of Future Minimum Lease Payments Due Under Capital Leases | During 2016 and as a result of the acquisition of Avenue, Pinnacle Financial has entered into a single capital lease, primarily for office space at an interest rate of 7.22% per year. Rent expense related to this lease for 2016 was approximately $209,000 and is included in total rent expense above. At December 31, 2016, the approximate future minimum lease payments due under the aforementioned capital lease for its base term are as follows (in thousands): 2017 $ 417 2018 426 2019 470 2020 470 2021 470 Thereafter 3,498 Total minimum lease payments $ 5,751 Less: amount representing interest (1,963 ) Present value of net minimum lease payments $ 3,788 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Deposits [Abstract] | |
Scheduled Maturities of Time Deposits | At December 31, 2016, the scheduled maturities of time deposits are as follows (in thousands): 2017 $ 617,713 2018 98,689 2019 60,326 2020 31,278 2021 25,041 Thereafter 3,807 $ 836,854 |
Federal Home Loan Bank Advanc41
Federal Home Loan Bank Advances (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Federal Home Loan Bank Advances [Abstract] | |
Scheduled Maturities of Advances and Interest Rates | At December 31, 2016 and 2015, Pinnacle Financial had received advances from the FHLB totaling $406.2 million and $300.3 million, respectively. Additionally, Pinnacle Financial recognized a discount of $167,000 on FHLB advances in conjunction with its acquisition of Avenue in July 2016. At December 31, 2016, the remaining discount was $92,000. At December 31, 2015, there was no discount recognized from previous acquisitions as the discount had been fully amortized. At December 31, 2016, the scheduled maturities of FHLB advances and interest rates are as follows (in thousands): Scheduled Maturities Weighted average interest rates 2017 $ 392,000 0.79 % 2018 14,003 1.29 % 2019 - - 2020 182 2.25 % 2021 - - Thereafter 28 2.75 % $ 406,213 Weighted average interest rate 0.81 % |
Investments in Affiliated Com42
Investments in Affiliated Companies and Subordinated Debt (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Investments in Affiliated Companies and Subordinated Debt [Abstract] | |
Details of the Trust established | Beginning on December 29, 2003, Pinnacle Financial established Trusts that were created for the exclusive purpose of issuing 30-year capital trust preferred securities and used the proceeds to acquire junior subordinated debentures (Subordinated Debentures) issued by Pinnacle Financial. The sole assets of the Trusts are the Subordinated Debentures. The $2,476,000 investment in the Trusts is included in other investments in the accompanying consolidated balance sheets and the $82,476,000 obligation is reflected as subordinated debt. The details of the Trusts established are as follows: Date Established Maturity Common Securities Trust Preferred Securities Floating Interest Rate Interest Rate at December 31, 2016 Trust I December 29, 2003 December 30, 2033 $ 310,000 $ 10,000,000 Libor + 2.80% 3.76 % Trust II September 15, 2005 September 30, 2035 619,000 20,000,000 Libor + 1.40% 2.40 % Trust III September 7, 2006 September 30, 2036 619,000 20,000,000 Libor + 1.65% 2.65 % Trust IV October 31, 2007 September 30, 2037 928,000 30,000,000 Libor + 2.85% 3.81 % |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Income Taxes [Abstract] | |
Income tax expense (benefit) attributable to continuing operations | Income tax expense (benefit) attributable to continuing operations for each of the years ended December 31 is as follows (in thousands): 2016 2015 2014 Current tax expense : Federal $ 49,769 $ 41,721 $ 34,068 State - 48 719 Total current tax expense 49,769 41,769 34,787 Deferred tax expense (benefit): Federal 12,776 4,963 (1,260 ) State 1,614 857 1,655 Total deferred tax expense 14,390 5,820 395 Total income tax expense $ 64,159 $ 47,589 $ 35,182 |
Income tax rate reconciliation | Pinnacle Financial's income tax expense (benefit) differs from the amounts computed by applying the Federal income tax statutory rates of 35% to income (loss) before income taxes. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2016 is as follows (in thousands): 2016 2015 2014 Income tax expense at statutory rate $ 66,984 $ 50,084 $ 36,978 State excise tax expense, net of federal tax effect 1,049 588 1,827 Tax-exempt securities (2,510 ) (2,543 ) (2,675 ) Federal tax credits (282 ) - - Bank owned life insurance (1,242 ) (892 ) (849 ) Insurance premiums (159 ) (306 ) (401 ) Change in uncertain tax positions - - 392 Other items 319 658 (90 ) Income tax expense $ 64,159 $ 47,589 $ 35,182 |
Components of deferred income taxes included in other assets | The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2016 and 2015 are as follows (in thousands): 2016 2015 Deferred tax assets: Loan loss allowance $ 22,308 $ 24,959 Loans 15,534 11,568 Insurance 869 823 Accrued liability for supplemental retirement agreements 5,587 2,476 Restricted stock and stock options 8,643 4,824 Securities 4,275 - Cash flow hedge 1,520 949 Other real estate owned 149 587 Other deferred tax assets 7,897 2,905 Total deferred tax assets 66,782 49,091 Deferred tax liabilities: Depreciation and amortization 5,823 6,273 Core deposit intangible asset 5,621 3,786 Securities - 2,337 REIT dividends 4,602 1,772 FHLB related liabilities 285 1,385 Mortgage servicing rights - 2,468 Other deferred tax liabilities 679 473 Total deferred tax liabilities 17,010 18,494 Net deferred tax assets $ 49,772 $ 30,597 |
Rollforward of uncertain tax positions | A reconciliation of the beginning and ending unrecognized tax benefit related to state uncertain tax positions is as follows (in thousands): 2016 2015 2014 Balance at January 1, $ 134 $ 391 $ - Increases due to tax positions taken during the current year 1,140 (257 ) - Increases due to tax positions taken during a prior year - - 391 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 December 31, $ 1,274 $ 134 $ 391 |
Stock Options, Stock Apprecia44
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units [Abstract] | |
Summary of Stock Option and Stock Appreciation Rights Activity | Number Weighted- Average Exercise Price Weighted- Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (1) (000's) Outstanding at December 31, 2013 1,002,500 $ 25.77 Granted - - Stock options exercised (301,794 ) 23.21 Stock appreciation rights exercised (2) (1,586 ) 15.60 Forfeited (632 ) 24.95 Outstanding at December 31, 2014 698,488 $ 26.89 Options acquired upon acquisition of CapitalMark 858,148 17.62 Granted - - Stock options exercised (303,754 ) 24.09 Stock appreciation rights exercised (2) (1,276 ) 15.60 Forfeited (5 ) 23.88 Outstanding at December 31, 2015 1,251,601 $ 21.23 Granted - - Stock options exercised (698,673 ) 21.63 Stock appreciation rights exercised (2) (2,435 ) 15.60 Forfeited (3 ) 29.50 Outstanding at December 31, 2016 550,490 $ 20.75 2.61 $26,728 Outstanding and expected to vest at December 31, 2016 550,490 $ 20.75 2.61 $26,728 (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial Common Stock of $69.30 per common share at December 31, 2016 for the 550,490 options that were in-the-money at December 31, 2016. (2) The 1,586 stock appreciation rights exercised during 2014 settled in 609 shares of Pinnacle Financial Common Stock. The 1,276 stock appreciation rights exercised during 2015 settled in 559 shares of Pinnacle Financial Common Stock. The 2,435 stock appreciation rights exercised during 2016 settled in 1,137 shares of Pinnacle Financial Common Stock. |
Summary of Activity for Unvested Restricted Share Awards | Number Grant Date Weighted-Average Cost Unvested at December 31, 2013 821,695 $ 19.18 Shares awarded 126,117 33.32 Conversion of restricted share units to restricted share awards 186,943 31.68 Restrictions lapsed and shares released to associates/directors (249,684 ) 18.19 Shares forfeited (35,873 ) 20.70 Unvested at December 31, 2014 849,198 $ 24.26 Shares awarded 231,504 45.71 Conversion of restricted share units to restricted share awards 43,711 34.50 Restrictions lapsed and shares released to associates/directors (240,102 ) 23.00 Shares forfeited (17,997 ) 30.01 Unvested at December 31, 2015 866,314 $ 31.39 Shares awarded 177,664 48.61 Conversion of restricted share units to restricted share awards 43,694 46.37 Restrictions lapsed and shares released to associates/directors (245,873 ) 28.39 Shares forfeited (21,260 ) 39.88 Unvested at December 31, 2016 820,539 $ 36.47 Pinnacle Financial grants restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following tables outline restricted stock grants that were made by grant year, grouped by similar vesting criteria, during the three year period ended December 31, 2016. The table below reflects the life-to-date activity for these awards: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Withheld for taxes by participants Shares Forfeited by participants (8) Shares Unvested Time Based Awards 2014 Associates (2) 5 113,918 31,110 12,685 11,745 58,378 2015 Associates (2) 5 190,528 25,801 9,369 14,163 141,195 2015 Leadership team (3) 5 16,605 2,530 788 - 13,287 2016 Associates (2) 5 143,273 265 125 3,679 139,204 Performance Based Awards 2014 Leadership team (4) 5 186,943 63,634 9,375 4,386 109,548 2015 Leadership team (4) 5 43,711 - - - 43,711 2015 Leadership team (5) 3 11,302 - - - 11,302 2016 Leadership team (4) 3 43,694 - - - 43,694 2016 Leadership team (6) 3 15,468 - - - 15,468 Outside Director Awards (7) 2014 Outside directors 1 12,199 10,537 1,662 - - 2015 Outside directors 1 13,069 11,298 1,771 - - 2016 Outside directors 1 18,923 889 297 - 17,737 (1) Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares (or have Pinnacle Financial withhold 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 Pinnacle Financial at the time of termination. For performance-based awards, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. (2) The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. (3) These shares were awarded to individuals joining the leadership team upon acquisition of Magna. The forfeiture restrictions on these restricted share awards lapse in equal installments on the anniversary date of the grant. (4) 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 earnings and soundness targets over each year of the subsequent vesting period. Half of the awards inclde a four year vesting period while the remainder include a three year vesting period. (5) These shares were awarded to individuals joining the leadership team upon acquisition of CapitalMark. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings targets over each year of the vesting period and should the recipient thereafter remain employed by Pinnacle Financial for a subsequent vesting period. (6) These shares were awarded to individuals joining the leadership team upon acquisition of Avenue. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings targets over each year of the vesting period and should the recipient thereafter remain employed by Pinnacle Financial for a subsequent vesting period. (7) 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 attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (8) These shares represent forfeitures resulting from recipients whose employment or board membership terminated during the year ended December 31, 2016. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. |
Restricted Share Unit Awards Outstanding | Units Awarded Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Subsequent holding period per tranche (in years) Shares settled into RSAs as of period end (2) Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs 2016 73,474-110,223 26,683 2016 2 3 N/A 2017 2 2 N/A 2018 2 1 N/A 2015 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 N/A 21,856 2014 4 N/A 21,856 2015 4 N/A 21,847 2015 3 N/A 21,847 2016 3 N/A 2016 2 N/A 1) 2) 3) |
Schedule of Share Based Compensation Expense | A summary of stock compensation expense, net of the impact of income taxes, related to restricted share awards and restricted share units for the three-year period ended December 31, 2016, follows (in thousands except per share data): 2016 2015 2014 Restricted stock expense $ 10,971 $ 6,033 $ 4,070 Income tax benefit 4,306 2,368 1,597 Restricted stock expense, net of income tax benefit $ 6,665 $ 3,665 $ 2,473 Impact on per share results from restricted stock expense: Basic $ 0.15 $ 0.10 $ 0.07 Fully diluted $ 0.15 $ 0.10 $ 0.07 |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Derivative Instruments [Abstract] | |
Summary of Interest Rate Swaps | A summary of Pinnacle Financial's interest rate swaps to facilitate customer transactions as of December 31, 2016 and December 31, 2015 is included in the following table (in thousands): December 31, 2016 December 31, 2015 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 666,572 $ 16,004 $ 396,112 $ 16,130 Pay variable / receive fixed swaps 666,572 (16,138 ) 396,112 (16,329 ) Total $ 1,333,144 $ (134 ) $ 792,224 $ (199 ) |
Schedule of Derivative Instruments | Hedge derivatives Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. December 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 Loss in Accumulated Other Comprehensive Income Interest Rate Swap $ 33,000 3 month LIBOR 2.265 % April 2016 - April 2020 (727 ) (442 ) (784 ) (476 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016 - April 2022 (1,304 ) (792 ) (1,478 ) (898 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016 - Oct. 2020 (1,081 ) (657 ) (908 ) (552 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017 - Oct. 2021 (1,200 ) (729 ) (1,112 ) (676 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018 - July 2022 (1,222 ) (743 ) (1,170 ) (711 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018 - Oct. 2022 (1,198 ) (728 ) (1,158 ) (704 ) $ 200,000 (6,732 ) (4,091 ) (6,610 ) (4,017 ) (1) No cash will be exchanged prior to the beginning of the term. Pinnacle Financial has 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 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. December 31, 2016 December 31, 2015 Forecasted Notional Amount Receive Rate Pay Rate Term Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Asset/ (Liabilities) Unrealized Gain (Loss) in Accumulated Other Comprehensive Income Interest Rate Swap $ 27,500 2.090 % 1 month LIBOR July 2014 - July 2021 395 240 663 403 Interest Rate Swap 25,000 2.270 % 1 month LIBOR July 2014 - July 2022 610 371 968 588 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 874 531 1,320 802 Interest Rate Swap 30,000 2.500 % 1 month LIBOR July 2014 - July 2024 900 547 1,333 810 Interest Rate Swap - 1.048 % 1 month LIBOR August 2015 - August 2018 - - (46 ) (28 ) Interest Rate Swap - 1.281 % 1 month LIBOR August 2015 - August 2019 - - (34 ) (21 ) Interest Rate Swap 15,000 1.470 % 1 month LIBOR August 2015 - August 2020 (75 ) (46 ) (14 ) (9 ) $ 125,000 2,704 1,643 4,190 2,545 |
Fair Value of Financial Instr46
Fair Value of Financial Instruments (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Fair Value of Financial Instruments [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the financial instruments carried at fair value on a recurring basis as of December 31, 2016 and 2015, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): December 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 $ 250 $ - $ 250 $ - U.S. government agency securities 21,769 - 21,769 - Mortgage-backed securities 976,626 - 976,626 - State and municipal securities 212,720 - 212,720 - Asset- backed securities 78,580 - 78,580 - Corporate notes and other 8,601 - 8,601 - Total investment securities available-for-sale 1,298,546 - 1,298,546 - Alternative investments 10,478 - - 10,478 Other assets 13,340 - 13,340 - Total assets at fair value $ 1,322,364 $ - $ 1,311,886 $ 10,478 Other liabilities $ 15,758 $ - $ 15,758 $ - Total liabilities at fair value $ 15,758 $ - $ 15,758 $ - December 31, 2015 Investment securities available-for-sale: U.S. government agency securities $ 128,193 $ - $ 128,193 $ - Mortgage-backed securities 582,916 - 582,916 - State and municipal securities 165,042 - 165,042 - Asset- backed securities 48,801 - 48,801 - Corporate notes and other 10,113 - 10,113 - Total investment securities available-for-sale 935,065 - 935,065 - Alternative 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 December 31, 2016 and 2015 (in thousands): December 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 period ended Other real estate owned $ 6,090 $ - $ - $ 6,090 $ (135 ) Nonaccrual loans, net (1) 26,506 - - 26,506 (7,173 ) Total $ 32,596 $ - $ - $ 32,596 $ (7,308 ) December 31, 2015 Other real estate owned $ 5,083 $ - $ - $ 5,083 $ (41 ) Nonaccrual loans, net (1) 25,690 - - 25,690 (2,637 ) Total $ 30,773 $ - $ - $ 30,773 $ (2,678 ) (1) Amount is net of a valuation allowance of $1.1 million and $3.7 million at December 31, 2016 and 2015, respectively, 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 year ended December 31, 2016 for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy measured at fair value on a recurring basis including changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands): For the year ended December 31, 2016 2015 Other assets Other liabilities Other assets Other liabilities Fair value, January 1 $ 9,764 $ - $ 8,004 $ - Total net realized losses included in income 131 - 149 - Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31 - - - - Purchases 1,639 - 2,254 - Issuances - - - - Settlements (1,056 ) - (643 ) - Transfers out of Level 3 - - - - Fair value, December 31 $ 10,478 $ - $ 9,764 $ - Total realized losses included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31 $ 131 $ - $ 149 $ - |
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 December 31, 2016 and 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. December 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 $ 25,251 $ 25,233 $ - $ 25,233 $ - Loans, net 8,390,944 8,178,982 - - 8,178,982 Mortgage loans held-for-sale 47,710 47,892 - 47,892 - Commercial loans held-for-sale 22,588 22,674 - 22,674 - Financial liabilities: Deposits and securities sold under agreements to repurchase 8,845,014 8,579,664 - - 8,579,664 Federal Home Loan Bank advances 406,304 406,491 - - 406,491 Subordinated debt and other borrowings 350,768 328,049 - - 328,049 Off-balance sheet instruments: Commitments to extend credit (2) 3,374,269 383 - - 383 Standby letters of credit (3) 131,418 740 - - 740 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 141,606 131,494 - - 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 period, 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 both December 31, 2016 and 2015, respectively, Pinnacle Financial included in other liabilities $383,000 and $1.0 million representing the inherent risks associated with these off-balance sheet commitments. (3) At December 31, 2016 and 2015, the fair value of Pinnacle Financial's standby letters of credit was $740,000 and $354,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, 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. |
Variable Interest Entities (Tab
Variable Interest Entities (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Variable Interest Entities [Abstract] | |
Summary of Variable Interest Entities | December 31, 2016 December 31, 2015 Type Maximum Loss Exposure Liability Recognized Maximum Loss Exposure Liability Recognized Classification Low Income Housing Partnerships $ 24,150 $ - $ 13,889 $ - Other Assets Trust Preferred Issuances N/A 82,476 N/A 82,476 Subordinated Debt Commercial Troubled Debt Restructurings 11,572 - 4,368 - Loans Managed Discretionary Trusts N/A N/A N/A N/A N/A |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Regulatory Matters [Abstract] | |
Summary of Regulatory Capital Requirement | The final rules implementing the Basel Committee on Banking Supervision's capital guidelines for U.S. banks (Basel III rules) became effective for Pinnacle Financial on January 1, 2015 with full compliance with all of the requirements being phased in over a multi-year schedule, and fully phased in by January 1, 2019. The minimum capital level requirements applicable to bank holding companies and banks subject to the rules are: (i) a common equity Tier 1 capital ratio of 4.5%; (ii) a Tier 1 risk-based capital ratio of 6%; (iii) a total risk-based capital ratio of 8%; and (iv) a Tier 1 leverage ratio of 4% for all institutions. The Basel III rules, also establish a capital conservation buffer of 2.5% (to be phased in over three years) above the regulatory minimum risk-based capital ratios. The capital conservation buffer is to be phased in beginning in January 2016 at 0.625% and is scheduled to increase each year by a like percentage until fully implemented in January 2019. The net unrealized gain or loss on available-for-sale securities is not included in computing regulatory capital. Management believes, as of December 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 1 risk-based, common equity Tier 1 and Tier 1 leverage ratios as set forth in the following table and not be subject to a written agreement, order or directive to maintain a higher capital level. Pinnacle Financial's and Pinnacle Bank's actual capital amounts and ratios are presented in the following table (in thousands): Actual Minimum Capital Requirement Minimum To Be Well-Capitalized Amount Ratio Amount Ratio Amount Ratio December 31, 2016 Total capital to risk weighted assets: Pinnacle Financial $ 1,211,105 11.9 % $ 816,857 8.0 % $ 1,021,071 10.0 % Pinnacle Bank $ 1,136,782 11.2 % $ 814,254 8.0 % $ 1,017,817 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 882,654 8.6 % $ 612,643 6.0 % $ 816,857 8.0 % Pinnacle Bank $ 949,193 9.3 % $ 610,690 6.0 % $ 814,254 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 802,532 7.9 % $ 459,482 4.5 % $ 663,696 6.5 % Pinnacle Bank $ 949,070 9.3 % $ 458,018 4.5 % $ 661,581 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 882,654 8.6 % $ 412,902 4.0 % N/A N/A Pinnacle Bank $ 949,193 9.2 % $ 412,124 4.0 % $ 515,155 5.0 % At December 31, 2015 Total capital to risk weighted assets: Pinnacle Financial $ 883,085 11.2 % $ 628,500 8.0 % $ 785,624 10.0 % Pinnacle Bank $ 830,863 10.6 % $ 626,486 8.0 % $ 783,107 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 756,316 9.6 % $ 471,375 6.0 % $ 628,500 8.0 % Pinnacle Bank $ 704,095 9.0 % $ 469,864 6.0 % $ 626,486 8.0 % Common equity Tier 1 capital: Pinnacle Financial $ 676,316 8.6 % $ 353,531 4.5 % $ 510,656 6.5 % Pinnacle Bank $ 704,095 9.0 % $ 352,398 4.5 % $ 509,020 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 756,316 9.4 % $ 322,920 4.0 % N/A N/A Pinnacle Bank $ 704,095 8.8 % $ 321,991 4.0 % $ 402,489 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Parent Company Only Financial49
Parent Company Only Financial Information (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Parent Company Only Financial Information [Abstract] | |
CONDENSED BALANCE SHEETS | CONDENSED BALANCE SHEETS 2016 2015 Assets: Cash and cash equivalents $ 36,984 $ 21,740 Investments in bank 1,579,728 1,184,779 Investments in consolidated subsidiaries 5,484 9,934 Investment in unconsolidated subsidiaries: PNFP Statutory Trust I 310 310 PNFP Statutory Trust II 619 619 PNFP Statutory Trust III 619 619 PNFP Statutory Trust IV 928 928 Other investments 61,374 5,453 Current income tax receivable 6,831 10,132 Other assets 29,182 4,260 $ 1,722,059 $ 1,238,774 Liabilities and stockholders' equity: Income taxes payable to subsidiaries - 12 Subordinated debt and other borrowings 223,337 82,476 Other liabilities 2,026 675 Stockholders' equity 1,496,696 1,155,611 $ 1,722,059 $ 1,238,774 |
CONDENSED STATEMENTS OF OPERATIONS | CONDENSED STATEMENTS OF OPERATIONS 2016 2015 2014 Revenues: Income from bank subsidiaries $ 27,663 19,038 21,185 Income from nonbank subsidiaries 5,198 210 193 Income from equity method investment 7,663 - - Other income (loss) 21 (132 ) 714 Expenses: Interest expense 1,997 220 468 Personnel expense, including stock compensation 10,971 7,342 5,308 Other expense 3,653 2,889 2,789 Loss before income taxes and equity in undistributed income of subsidiaries 23,924 8,665 13,527 Income tax benefit (3,428 ) (4,119 ) (3,066 ) Loss before equity in undistributed income of subsidiaries 27,352 12,874 16,593 Equity in undistributed income of bank subsidiaries 104,318 81,536 52,414 Equity in undistributed income (loss) of nonbank subsidiaries (4,445 ) 1,189 1,464 Net income $ 127,225 $ 95,509 $ 70,471 |
CONDENSED STATEMENTS OF CASH FLOWS | CONDENSED STATEMENTS OF CASH FLOWS 2016 2015 2014 Operating activities Net income $ 127,225 $ 95,509 $ 70,471 Adjustments to reconcile net income to net cash provided by (used in) operating activities: Amortization and accretion 543 - - Stock-based compensation expense 10,971 7,342 5,308 Increase in income tax payable, net (12 ) (10,870 ) - Deferred tax expense 1,025 (394 ) 27 Gains from equity method investments, net (8,350 ) - - Excess tax benefit from stock compensation (4,604 ) (4,116 ) (1,699 ) Loss (gain) on other investments 497 132 (710 ) Decrease in other assets 2,636 1,194 1,852 Increase in other liabilities 3,157 3,771 203 Equity in undistributed income of bank subsidiaries (104,318 ) (81,530 ) (52,414 ) Equity in undistributed income of nonbank subsidiaries 4,445 (1,189 ) (1,464 ) Net cash provided by (used in) operating activities 33,215 9,849 21,574 Investing activities Investment in consolidated banking subsidiaries (118,878 ) - - Investment in unconsolidated banking subsidiaries - - - Increase in equity method investment (11,400 ) - - Dividends received from equity method investment 3,255 - - Increase in other investments (710 ) (335 ) (397 ) Net cash provided by (used in) investing activities (127,733 ) (335 ) (397 ) Financing activities Net (decrease) increase in subordinated debt and other borrowings 118,294 (13,682 ) (2,500 ) Exercise of common stock options and stock appreciation rights, net of repurchase of restricted shares 11,589 3,603 6,422 Excess tax benefit from stock compensation 4,604 4,116 1,699 Common dividends paid (24,725 ) (18,307 ) (11,398 ) Net cash used in financing activities 109,762 (24,270 ) (5,777 ) Net increase (decrease) in cash 15,244 (14,756 ) 15,400 Cash and cash equivalents, beginning of year 21,740 36,496 21,096 Cash and cash equivalents, end of year $ 36,984 $ 21,740 $ 36,496 |
Quarterly Financial Results (50
Quarterly Financial Results (unaudited) (Tables) | 12 Months Ended |
Dec. 31, 2016 | |
Quarterly Financial Results (unaudited) [Abstract] | |
Summary of Selected Consolidated Quarterly Financial Data | A summary of selected consolidated quarterly financial data for each of the years in the three-year period ended December 31, 2016 follows: (in thousands, except per share data) First Quarter Second Quarter Third Quarter Fourth Quarter 2016 Interest income $ 80,974 $ 83,762 $ 97,380 $ 101,493 Net interest income 73,902 75,044 86,635 89,413 Provision for loan losses 3,894 5,280 6,108 3,046 Net income before taxes 41,800 46,546 48,693 54,345 Net income 27,964 30,787 32,377 36,097 Basic net income per share $ 0.70 $ 0.75 $ 0.71 $ 0.79 Diluted net income per share $ 0.68 $ 0.73 $ 0.71 $ 0.78 2015 Interest income $ 54,679 $ 55,503 $ 67,192 $ 77,797 Net interest income 51,269 51,831 62,059 71,475 Provision for loan losses 315 1,186 2,228 5,459 Net income before taxes 32,617 33,917 36,134 40,432 Net income 21,843 22,665 24,149 26,854 Basic net income per share $ 0.62 $ 0.65 $ 0.64 $ 0.67 Diluted net income per share $ 0.62 $ 0.64 $ 0.62 $ 0.65 2014 Interest income $ 49,291 $ 50,564 $ 52,782 $ 53,533 Net interest income 45,908 47,226 49,537 50,313 Provision for loan losses 488 254 851 2,041 Net income before taxes 24,506 25,668 27,215 28,264 Net income 16,367 17,170 18,197 18,737 Basic net income per share $ 0.47 $ 0.49 $ 0.52 $ 0.54 Diluted net income per share $ 0.47 $ 0.49 $ 0.52 $ 0.53 |
Summary of Significant Accoun51
Summary of Significant Accounting Policies (Details) | 3 Months Ended | 12 Months Ended | ||||||||||||||||||
Dec. 31, 2016USD ($)$ / shares | Sep. 30, 2016USD ($)$ / shares | Jun. 30, 2016USD ($)$ / shares | Mar. 31, 2016USD ($)$ / shares | Dec. 31, 2015USD ($)$ / shares | Sep. 30, 2015USD ($)$ / shares | Jun. 30, 2015USD ($)$ / shares | Mar. 31, 2015USD ($)$ / shares | Dec. 31, 2014USD ($)$ / shares | Sep. 30, 2014USD ($)$ / shares | Jun. 30, 2014USD ($)$ / shares | Mar. 31, 2014USD ($)$ / shares | Dec. 31, 2016USD ($)SegmentQuarter$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($)Trustshares | Mar. 01, 2016 | Dec. 31, 2015USD ($) | Feb. 01, 2015 | ||
Goodwill [Roll Forward] | ||||||||||||||||||||
Balance at December 31, 2015 | $ 432,232,255 | $ 432,232,255 | ||||||||||||||||||
Acquisitions | 122,672,000 | |||||||||||||||||||
Amortization | 0 | |||||||||||||||||||
Change in purchase price allocation of previous acquisitions | (3,125,000) | |||||||||||||||||||
Other changes | [1] | (185,000) | ||||||||||||||||||
Balance at December 31, 2016 | $ 551,593,796 | $ 432,232,255 | 551,593,796 | $ 432,232,255 | ||||||||||||||||
Core deposit and other intangible assets [Roll Forward] | ||||||||||||||||||||
Balance at December 31, 2015 | 10,540,000 | 10,540,000 | ||||||||||||||||||
Acquisitions | 8,845,000 | |||||||||||||||||||
Amortization | (4,281,459) | (1,973,953) | $ (947,678) | |||||||||||||||||
Change in purchase price allocation of previous acquisitions | 0 | |||||||||||||||||||
Other changes | [1] | 0 | ||||||||||||||||||
Balance at December 31, 2016 | 15,104,000 | 10,540,000 | 15,104,000 | 10,540,000 | ||||||||||||||||
Total [Abstract] | ||||||||||||||||||||
Balance at December 31, 2015 | 442,772,000 | 442,772,000 | ||||||||||||||||||
Acquisitions | 131,517,000 | |||||||||||||||||||
Amortization | (4,281,000) | |||||||||||||||||||
Change in purchase price allocation of previous acquisitions | (3,125,000) | |||||||||||||||||||
Other changes | (185,000) | |||||||||||||||||||
Balance at December 31, 2016 | 566,698,000 | 442,772,000 | 566,698,000 | 442,772,000 | ||||||||||||||||
Finite-Lived Intangible Assets, Net [Abstract] | ||||||||||||||||||||
Gross carrying amount | $ 42,365,000 | $ 33,520,000 | ||||||||||||||||||
Accumulated amortization | (27,261,000) | (22,980,000) | ||||||||||||||||||
Net book value | 15,104,000 | 10,540,000 | 10,540,000 | $ 10,540,000 | 10,540,000 | $ 15,104,000 | 10,540,000 | |||||||||||||
Cash Equivalents and Cash Flows [Abstract] | ||||||||||||||||||||
Cash equivalents maturity period | 90 days | |||||||||||||||||||
Cash Payments [Abstract] | ||||||||||||||||||||
Interest | $ 37,002,870 | 17,435,292 | 13,414,134 | |||||||||||||||||
Income taxes paid | 49,503,637 | 45,715,968 | 31,350,000 | |||||||||||||||||
Noncash Transactions [Abstract] | ||||||||||||||||||||
Loans charged-off to the allowance for loan losses | 31,112,118 | 21,148,034 | 7,702,661 | |||||||||||||||||
Loans foreclosed upon with repossessions transferred to other real estate | 4,453,060 | 341,342 | 4,649,852 | |||||||||||||||||
Loans foreclosed upon with repossessions transferred to other repossessed assets | 1,842,318 | 8,259,368 | 2,262,573 | |||||||||||||||||
Common stock issued in connection with acquisitions | $ 222,162,640 | 269,492,990 | 0 | |||||||||||||||||
Loans [Abstract] | ||||||||||||||||||||
Number of loan segments | Segment | 5 | |||||||||||||||||||
Net deferred loan fees | $ 7,600,000 | 4,200,000 | ||||||||||||||||||
Percentage of loan portfolio assigned specific risk rating | 79.00% | |||||||||||||||||||
ASC 450-20, Loss Contingencies [Abstract] | ||||||||||||||||||||
Number of prior quarters used for historical migration analysis | Quarter | 24 | |||||||||||||||||||
Financing Receivable, Impaired [Line Items] | ||||||||||||||||||||
Principal balance of loans subject to individual determination of impairment | $ 250,000 | |||||||||||||||||||
Principal balance of impaired loans | $ 16,705,000 | 16,705,000 | 27,577,000 | 29,359,000 | ||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Deferred liability associated with escalating rentals | 3,000,000 | |||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Computer software related assets, net | 88,904,145 | 77,923,607 | ||||||||||||||||||
Cash surrender value of life insurance | 150,614,120 | 121,918,638 | ||||||||||||||||||
Noninterest income related to cash surrender value of bank owned life insurance policies | $ 3,547,401 | 2,548,157 | 2,426,447 | |||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||
Federal Reserve Bank and Federal Home Loan Bank (FHLB) stock | 31,400,000 | 26,500,000 | ||||||||||||||||||
Investments in other entities at fair value | $ 8,300,000 | 7,600,000 | ||||||||||||||||||
Gain (loss) due to change in fair value of investments | (233,000) | (39,000) | ||||||||||||||||||
Number of trusts investment | Trust | 4 | |||||||||||||||||||
Value of investments with trust companies | $ 205,359,844 | 88,880,014 | ||||||||||||||||||
Investments as per community reinvestment act | 43,100,000 | 17,100,000 | ||||||||||||||||||
investments are included in CRA investments | 18,900,000 | 3,200,000 | ||||||||||||||||||
Other Real Estate Owned [Abstract] | ||||||||||||||||||||
Other real estate owned | 6,500,000 | 6,600,000 | ||||||||||||||||||
Valuation allowance related to other real estate owned | 381,000 | 1,500,000 | ||||||||||||||||||
Foreclosed real estate expense | 396,000 | (306,000) | 664,000 | |||||||||||||||||
Realized losses on foreclosed real estate | $ 141,000 | $ (434,000) | (552,000) | |||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | 140,000 | $ 140,000 | 0 | (96,000) | ||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||
Stock options, stock appreciation rights and warrants included in earning per share calculation (in shares) | shares | 694,909 | 958,320 | 403,555 | |||||||||||||||||
Basic earnings per share calculation [Abstract] | ||||||||||||||||||||
Numerator - Net income (loss) available to common stockholders | $ 36,097,000 | $ 32,377,000 | $ 30,787,000 | $ 27,964,000 | $ 26,854,000 | $ 24,149,000 | $ 22,665,000 | $ 21,843,000 | $ 18,737,000 | $ 18,197,000 | $ 17,170,000 | $ 16,367,000 | $ 127,224,695 | $ 95,509,402 | $ 70,471,167 | |||||
Denominator - Weighted average common shares outstanding (in shares) | shares | 43,037,083 | 37,015,468 | 34,723,335 | |||||||||||||||||
Basic net income per common share (in dollars per share) | $ / shares | $ 0.79 | $ 0.71 | $ 0.75 | $ 0.70 | $ 0.67 | $ 0.64 | $ 0.65 | $ 0.62 | $ 0.54 | $ 0.52 | $ 0.49 | $ 0.47 | $ 2.96 | $ 2.58 | $ 2.03 | |||||
Diluted net income per share calculation [Abstract] | ||||||||||||||||||||
Numerator - Net income (loss) available to common stockholders | $ 36,097,000 | $ 32,377,000 | $ 30,787,000 | $ 27,964,000 | $ 26,854,000 | $ 24,149,000 | $ 22,665,000 | $ 21,843,000 | $ 18,737,000 | $ 18,197,000 | $ 17,170,000 | $ 16,367,000 | $ 127,224,695 | $ 95,509,402 | $ 70,471,167 | |||||
Denominator - Weighted average common shares outstanding (in shares) | shares | 43,037,083 | 37,015,468 | 34,723,335 | |||||||||||||||||
Dilutive shares (in shares) | shares | 694,909 | 958,320 | 403,555 | |||||||||||||||||
Weighted average diluted common shares outstanding (in shares) | shares | 43,731,992 | 37,973,788 | 35,126,890 | |||||||||||||||||
Diluted net income per common share (in dollars per share) | $ / shares | $ 0.78 | $ 0.71 | $ 0.73 | $ 0.68 | $ 0.65 | $ 0.62 | $ 0.64 | $ 0.62 | $ 0.53 | $ 0.52 | $ 0.49 | $ 0.47 | $ 2.91 | $ 2.52 | $ 2.01 | |||||
Mortgage Servicing Rights [Abstract] | ||||||||||||||||||||
Servicing asset at amortized cost | 6,412,000 | |||||||||||||||||||
Mortgage servicing rights associated with Fannie Mae portfolio | $ 830,000,000 | |||||||||||||||||||
Sale of mortgage servicing rights | $ 6,600,000 | $ 6,747,626 | $ 0 | $ 0 | ||||||||||||||||
Income recorded upon sale of servicing portfolio | $ 241,000 | |||||||||||||||||||
Trust [Member] | ||||||||||||||||||||
Variable Interest Entity [Line Items] | ||||||||||||||||||||
Value of investments with trust companies | 2,476,000 | 2,476,000 | ||||||||||||||||||
Premises and Equipment [Member] | Minimum [Member] | ||||||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Premises and equipment, useful life | 3 years | |||||||||||||||||||
Premises and Equipment [Member] | Maximum [Member] | ||||||||||||||||||||
Premises and Equipment and Leaseholds [Abstract] | ||||||||||||||||||||
Premises and equipment, useful life | 30 years | |||||||||||||||||||
Software [Member] | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Computer software related assets, net | $ 5,724,215 | $ 6,616,443 | ||||||||||||||||||
Computer software related assets, amortization | $ 2,326,927 | 1,346,284 | $ 1,084,000 | |||||||||||||||||
Software [Member] | Minimum [Member] | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Computer software related assets, useful life | 3 years | |||||||||||||||||||
Software [Member] | Maximum [Member] | ||||||||||||||||||||
Other Assets [Abstract] | ||||||||||||||||||||
Computer software related assets, useful life | 7 years | |||||||||||||||||||
Bankers Healthcare Group, LLC [Member] | ||||||||||||||||||||
Schedule of Equity Method Investments [Line Items] | ||||||||||||||||||||
Ownership percentage equity method investment | 19.00% | 49.00% | 8.55% | 30.00% | ||||||||||||||||
Core deposit and other intangible assets [Roll Forward] | ||||||||||||||||||||
Amortization | $ (3,400,000) | (1,300,000) | ||||||||||||||||||
Internal Revenue Service (IRS) [Member] | Minimum [Member] | ||||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Tax year open to audit under the statute of limitation | 2,013 | |||||||||||||||||||
Internal Revenue Service (IRS) [Member] | Maximum [Member] | ||||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Tax year open to audit under the statute of limitation | 2,016 | |||||||||||||||||||
State of Tennessee [Member] | Minimum [Member] | ||||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Tax year open to audit under the statute of limitation | 2,013 | |||||||||||||||||||
State of Tennessee [Member] | Maximum [Member] | ||||||||||||||||||||
Income Tax Contingency [Line Items] | ||||||||||||||||||||
Tax year open to audit under the statute of limitation | 2,016 | |||||||||||||||||||
Stock Options [Member] | ||||||||||||||||||||
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items] | ||||||||||||||||||||
Stock options outstanding (in shares) | shares | 550,490 | |||||||||||||||||||
ASU 2015-03 [Member] | ||||||||||||||||||||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | ||||||||||||||||||||
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 | |||||||||||||||||||
[1] | Represents options exercised related to acquisitions which occurred prior to the adoption of ASC 718-20 Compensation. |
Summary of Significant Accoun52
Summary of Significant Accounting Policies, Subsequent Events (Details) | Jan. 22, 2017USD ($)Director$ / sharesshares | Jan. 31, 2017USD ($)shares | Jan. 13, 2017shares | Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares |
Subsequent Event [Line Items] | |||||
Common stock, par value (in dollars per share) | $ / shares | $ 1 | $ 1 | |||
Common stock, shares outstanding (in shares) | shares | 46,359,377 | 40,906,064 | |||
Subordinated notes issued | $ 350,768,050 | $ 141,605,504 | |||
Subsequent Event [Member] | 2017 Public Offering [Member] | |||||
Subsequent Event [Line Items] | |||||
Common stock issued in initial public offering (in shares) | shares | 3,220,000 | ||||
Net proceeds after deducting underwriting discounts and comissions | $ 191,200,000 | ||||
Subsequent Event [Member] | 2017 Public Offering [Member] | Pinnacle Bank [Member] | |||||
Subsequent Event [Line Items] | |||||
Net proceeds after deducting underwriting discounts and comissions | $ 185,000,000 | ||||
Subsequent Event [Member] | BNC Bancorp, a North Carolina Corporation (BNC) [Member] | |||||
Subsequent Event [Line Items] | |||||
Conversion of stock (in shares) | shares | 0.5235 | ||||
Common stock, par value (in dollars per share) | $ / shares | $ 0 | ||||
Common stock, shares outstanding (in shares) | shares | 52,181,073 | ||||
Outsatnding restricted stock awards and restricted stock award units (in shares) | shares | 901,726 | ||||
Outstanding stock option (in shares) | shares | 66,443 | ||||
Number of trading days ending immediately preceding the closing date | 10 days | ||||
Termination fee | $ 66,000,000 | ||||
Total number of members of their respective Board of Directors | Director | 18 | ||||
Number of additional members of the Board of Directors | Director | 3 | ||||
Subordinated notes issued | $ 60,000,000 | ||||
Subordinated notes, maturity date | Oct. 31, 2024 | ||||
Subordinated notes, interest rate | 5.50% | ||||
Aggregate principal amount of subordinated debentures | $ 50,500,000 | ||||
Consummation of merger, exceeds the total assets | $ 15,000,000,000 |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | Jun. 30, 2016 | Sep. 01, 2015 | Jul. 31, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | |
Business Acquisition [Line Items] | ||||||
Period for merger dates | 1 year | |||||
Decrease in deferred tax asset | $ 1,900,000 | |||||
Allocation of total consideration paid [Abstract] | ||||||
Goodwill | $ 551,593,796 | $ 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 | 73,186,000 | |||||
Goodwill | 152,444,000 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 28,021,000 | |||||
Investment securities | [1] | 150,400,000 | ||||
Loans | [2] | 857,515,000 | ||||
Mortgage loans held for sale | 1,791,000 | |||||
Other real estate owned | 1,728,000 | |||||
Core deposit intangible | [3] | 6,193,000 | ||||
Other assets | [4] | 49,572,000 | ||||
Total Assets | 1,095,220,000 | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [5] | 759,383,000 | ||||
Non-interest bearing deposits | 193,798,000 | |||||
Borrowings | [6] | 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 | 73,186,000 | |||||
CapitalMark Bank & Trust [Member] | Historical Cost Basis [Member] | ||||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 85,065,000 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 28,021,000 | |||||
Investment securities | [1] | 150,799,000 | ||||
Loans | [2] | 880,115,000 | ||||
Mortgage loans held for sale | 1,791,000 | |||||
Other real estate owned | 1,728,000 | |||||
Core deposit intangible | [3] | 0 | ||||
Other assets | [4] | 43,526,000 | ||||
Total Assets | 1,105,980,000 | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [5] | 758,492,000 | ||||
Non-interest bearing deposits | 193,798,000 | |||||
Borrowings | [6] | 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 | 85,065,000 | |||||
CapitalMark Bank & Trust [Member] | Fair Value Adjustments [Member] | ||||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | (11,879,000) | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | |||||
Investment securities | [1] | (399,000) | ||||
Loans | [2] | (22,600,000) | ||||
Mortgage loans held for sale | 0 | |||||
Other real estate owned | 0 | |||||
Core deposit intangible | [3] | 6,193,000 | ||||
Other assets | [4] | 6,046,000 | ||||
Total Assets | (10,760,000) | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [5] | 891,000 | ||||
Non-interest bearing deposits | 0 | |||||
Borrowings | [6] | 228,000 | ||||
Other liabilities | 0 | |||||
Total Liabilities | 1,119,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (11,879,000) | |||||
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 | |||||
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 | 49,050,000 | |||||
Goodwill | 34,788,000 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 17,832,000 | |||||
Investment securities | [7] | 59,738,000 | ||||
Loans | [8] | 440,679,000 | ||||
Mortgage loans held for sale | 18,886,000 | |||||
Other real estate owned | [9] | 1,610,000 | ||||
Core deposit intangible | [3] | 3,170,000 | ||||
Other assets | [10] | 35,979,000 | ||||
Total Assets | 577,894,000 | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [11] | 403,803,000 | ||||
Non-interest bearing deposits | 48,851,000 | |||||
Borrowings | [12] | 47,406,000 | ||||
Other liabilities | [13] | 28,784,000 | ||||
Total Liabilities | 528,844,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 49,050,000 | |||||
Magna Bank [Member] | Historical Cost Basis [Member] | ||||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 56,043,000 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 17,832,000 | |||||
Investment securities | [7] | 60,018,000 | ||||
Loans | [8] | 453,108,000 | ||||
Mortgage loans held for sale | 18,886,000 | |||||
Other real estate owned | [9] | 1,471,000 | ||||
Core deposit intangible | [3] | 0 | ||||
Other assets | [10] | 31,057,000 | ||||
Total Assets | 582,372,000 | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [11] | 402,535,000 | ||||
Non-interest bearing deposits | 48,851,000 | |||||
Borrowings | [12] | 46,900,000 | ||||
Other liabilities | [13] | 28,043,000 | ||||
Total Liabilities | 526,329,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 56,043,000 | |||||
Magna Bank [Member] | Fair Value Adjustments [Member] | ||||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | (6,993,000) | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | |||||
Investment securities | [7] | (280,000) | ||||
Loans | [8] | (12,429,000) | ||||
Mortgage loans held for sale | 0 | |||||
Other real estate owned | [9] | 139,000 | ||||
Core deposit intangible | [3] | 3,170,000 | ||||
Other assets | [10] | 4,922,000 | ||||
Total Assets | (4,478,000) | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [11] | 1,268,000 | ||||
Non-interest bearing deposits | 0 | |||||
Borrowings | [12] | 506,000 | ||||
Other liabilities | [13] | 741,000 | ||||
Total Liabilities | 2,515,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (6,993,000) | |||||
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 | |||||
Avenue Financial Holdings, Inc. (Avenue) [Member] | ||||||
Equity consideration [Abstract] | ||||||
Total equity consideration, Amount | $ 182,469,000 | |||||
Non-equity consideration [Abstract] | ||||||
Cash | 20,910,000 | |||||
Cash paid to exchange outstanding stock options | 987,000 | |||||
Total consideration paid | 204,366,000 | |||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 81,695,000 | |||||
Goodwill | 122,671,000 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 39,485,000 | |||||
Investment securities | [14] | 163,399,000 | ||||
Loans | [15] | 952,530,000 | ||||
Mortgage loans held for sale | 3,310,000 | |||||
Core deposit intangible | [3] | 8,845,000 | ||||
Other assets | [16] | 56,503,000 | ||||
Total Assets | 1,224,072,000 | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [17] | 743,035,000 | ||||
Non-interest bearing deposits | 223,685,000 | |||||
Borrowings | [18] | 145,879,000 | ||||
Other liabilities | 29,778,000 | |||||
Total Liabilities | 1,142,377,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 81,695,000 | |||||
Avenue Financial Holdings, Inc. (Avenue) [Member] | Historical Cost Basis [Member] | ||||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | 97,027,000 | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 39,485,000 | |||||
Investment securities | [14] | 163,862,000 | ||||
Loans | [15] | 980,319,000 | ||||
Mortgage loans held for sale | 3,310,000 | |||||
Core deposit intangible | [3] | 0 | ||||
Other assets | [16] | 47,729,000 | ||||
Total Assets | 1,234,705,000 | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [17] | 741,635,000 | ||||
Non-interest bearing deposits | 223,685,000 | |||||
Borrowings | [18] | 142,639,000 | ||||
Other liabilities | 29,719,000 | |||||
Total Liabilities | 1,137,678,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | 97,027,000 | |||||
Avenue Financial Holdings, Inc. (Avenue) [Member] | Fair Value Adjustments [Member] | ||||||
Allocation of total consideration paid [Abstract] | ||||||
Fair value of net assets assumed including estimated identifiable intangible assets | (15,332,000) | |||||
Assets [Abstract] | ||||||
Cash and cash equivalents | 0 | |||||
Investment securities | [14] | (463,000) | ||||
Loans | [15] | (27,789,000) | ||||
Mortgage loans held for sale | 0 | |||||
Core deposit intangible | [3] | 8,845,000 | ||||
Other assets | [16] | 8,774,000 | ||||
Total Assets | (10,633,000) | |||||
Liabilities [Abstract] | ||||||
Interest-bearing deposits | [17] | 1,400,000 | ||||
Non-interest bearing deposits | 0 | |||||
Borrowings | [18] | 3,240,000 | ||||
Other liabilities | 59,000 | |||||
Total Liabilities | 4,699,000 | |||||
Fair value of net assets assumed including estimated identifiable intangible assets | $ (15,332,000) | |||||
Avenue Financial Holdings, Inc. (Avenue) [Member] | Common Stock [Member] | ||||||
Equity consideration [Abstract] | ||||||
Total equity consideration, Number of Shares (in shares) | 3,760,326 | |||||
Total equity consideration, Amount | $ 182,469,000 | |||||
[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 as of the date of acquisition, 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 acquired. | |||||
[4] | 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. | |||||
[5] | The amount represents 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. | |||||
[6] | The amount represents the adjustment 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. | |||||
[7] | The amount represents the adjustment of the book value of Magna's investment securities to their estimated fair value on the date of acquisition. | |||||
[8] | The amount represents the adjustment of the net book value of Magna's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, which includes estimates of expected credit losses inherent in the portfolio. | |||||
[9] | The amount represents the adjustment to the book value of Magna's OREO to fair value on the date of acquisition. | |||||
[10] | 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. The value of the deferred tax asset was decreased by $1.9 million as a result of the completion of the 2015 tax return. | |||||
[11] | The amount represents the adjustment 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. | |||||
[12] | The amount represents the adjustment 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. | |||||
[13] | The amount represents the adjustment to accrue two potential loss contingencies related to Magna's business operations that existed as of the date of acquisition. | |||||
[14] | The amount represents the adjustment of the book value of Avenue's investment securities to their estimated fair value on the date of acquisition. | |||||
[15] | The amount represents the adjustment of the net book value of Avenue's loans to their estimated fair value based on interest rates and expected cash flows as of the date of acquisition, which includes estimates of expected credit losses inherent in the portfolio. | |||||
[16] | The amount represents the deferred tax asset recognized on the fair value adjustment of Avenue's acquired assets and assumed liabilities as well as the fair value adjustment for property and equipment. | |||||
[17] | The amount represents the adjustment necessary because the weighted average interest rate of Avenue'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. | |||||
[18] | The amount represents the adjustment necessary because the weighted average interest rate of Avenue's FHLB advances and subordinated debt issuance 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) | Mar. 01, 2016shares | Feb. 01, 2015USD ($) | Dec. 31, 2016USD ($)Manager | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | Mar. 31, 2016 |
Summarized financial information, Income statement [Abstract] | ||||||
Technology, trade name and customer relationship intangibles | $ 15,104,038 | $ 10,540,497 | ||||
Amortization of intangible assets | 4,281,459 | 1,973,953 | $ 947,678 | |||
Dividend to pinnacle bank | 28,982,009 | 7,152,000 | $ 0 | |||
Bankers Healthcare Group, LLC [Member] | ||||||
Summarized financial information [Abstract] | ||||||
Assets | 223,246,000 | 220,578,000 | ||||
Liabilities | 139,531,000 | 137,147,000 | ||||
Equity interests | 83,715,000 | 83,431,000 | ||||
Total liabilities and equity | 223,246,000 | 220,578,000 | ||||
Summarized financial information, Income statement [Abstract] | ||||||
Revenues | 136,693,000 | 144,772,000 | ||||
Net income, pre tax | 67,135,000 | 77,748,000 | ||||
Face amount | $ 2,200,000 | 0 | ||||
Ownership percentage equity method investment | 8.55% | 30.00% | 49.00% | 19.00% | ||
Purchase price of acquired entity | $ 75,000,000 | $ 74,100,000 | ||||
Common stock issued in the purchase agreement (in shares) | shares | 860,470 | |||||
Number of board of managers designated by bank | Manager | 2 | |||||
Number of board managers | Manager | 5 | |||||
Period of which non consent of manager approves the sale | 4 years | |||||
Period of inability of members to transfer of ownership interest | 5 years | |||||
Technology, trade name and customer relationship intangibles | $ 16,800,000 | 6,100,000 | ||||
Amortization of intangible assets | 3,400,000 | 1,300,000 | ||||
Accretion income | 2,500,000 | 0 | ||||
Accretable discount | 18,100,000 | 8,000,000 | ||||
Dividend to pinnacle bank | 29,000,000 | 7,200,000 | ||||
Loan face amount | $ 2,200,000 | $ 0 | ||||
Bankers Healthcare Group, LLC [Member] | Pinnacle Bank [Member] | ||||||
Summarized financial information, Income statement [Abstract] | ||||||
Additional ownership percentage | 10.45% |
Restricted Cash Balances (Detai
Restricted Cash Balances (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Restricted Cash Balances [Abstract] | ||
Reserve balances with federal reserve bank | $ 183,057,274 | $ 134,334,000 |
Securities (Details)
Securities (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Securities available-for-sale: [Abstract] | |||
Amortized Cost | $ 1,310,071,000 | $ 930,708,000 | |
Gross Unrealized Gains | 8,557,000 | 13,642,000 | |
Gross Unrealized Losses | 20,082,000 | 9,285,000 | |
Fair Value | 1,298,546,056 | 935,064,745 | |
Available-for-sale, Amortized Cost [Abstract] | |||
Due in one year or less | 2,533,000 | ||
Due in one year to five years | 60,311,000 | ||
Due in five years to ten years | 122,753,000 | ||
Due after ten years | 57,148,000 | ||
Mortgage-backed securities | 988,008,000 | ||
Asset-backed securities | 79,318,000 | ||
Amortized Cost | 1,310,071,000 | ||
Available-for-sale, Fair Value [Abstract] | |||
Due in one year or less | 2,556,000 | ||
Due in one year to five years | 61,591,000 | ||
Due in five years to ten years | 123,769,000 | ||
Due after ten years | 55,424,000 | ||
Mortgage-backed securities | 976,626,000 | ||
Asset-backed securities | 78,580,000 | ||
Fair Value | 1,298,546,056 | ||
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | 902,900,000 | ||
Secured borrowing under agreement to repurchase | 85,700,000 | ||
Available for Sale Securities Transferred to Held To Maturity Securities | 0 | ||
Proceeds from sale of available-for-sale securities | 72,829,440 | 189,029,458 | $ 2,360,478 |
Investment gains on sales | 395,186 | 552,063 | $ 29,221 |
Securities held-to-maturity: [Abstract] | |||
Amortized Cost | 25,251,316 | 31,376,840 | |
Gross Unrealized Gains | 87,000 | 257,000 | |
Gross Unrealized Losses | 105,000 | 48,000 | |
Fair Value | 25,233,254 | 31,585,303 | |
Held-to-maturity, Amortized Cost [Abstract] | |||
Due in one year or less | 594,000 | ||
Due in one year to five years | 10,186,000 | ||
Due in five years to ten years | 10,586,000 | ||
Due after ten years | 3,885,000 | ||
Mortgage-backed securities | 0 | ||
Asset-backed securities | 0 | ||
Amortized Cost | 25,251,316 | 31,376,840 | |
Held-to-maturity, Fair Value [Abstract] | |||
Due in one year or less | 594,000 | ||
Due in one year to five years | 10,182,000 | ||
Due in five years to ten years | 10,567,000 | ||
Due after ten years | 3,890,000 | ||
Mortgage-backed securities | 0 | ||
Asset-backed securities | 0 | ||
Fair Value | 25,233,254 | 31,585,303 | |
Securities Pledged as Collateral [Member] | |||
Available-for-sale, Fair Value [Abstract] | |||
Secured borrowing under agreement to repurchase | 85,700,000 | ||
US Treasury Securities [Member] | |||
Securities available-for-sale: [Abstract] | |||
Amortized Cost | 250,000 | 0 | |
Gross Unrealized Gains | 0 | 0 | |
Gross Unrealized Losses | 0 | 0 | |
Fair Value | 250,000 | 0 | |
U.S. Government Agency Securities [Member] | |||
Securities available-for-sale: [Abstract] | |||
Amortized Cost | 22,306,000 | 131,499,000 | |
Gross Unrealized Gains | 0 | 3,000 | |
Gross Unrealized Losses | 537,000 | 3,309,000 | |
Fair Value | 21,769,000 | 128,193,000 | |
Mortgage-backed Agency Securities [Member] | |||
Securities available-for-sale: [Abstract] | |||
Amortized Cost | 988,008,000 | 581,998,000 | |
Gross Unrealized Gains | 4,304,000 | 5,948,000 | |
Gross Unrealized Losses | 15,686,000 | 5,030,000 | |
Fair Value | 976,626,000 | 582,916,000 | |
State and Municipal Securities [Member] | |||
Securities available-for-sale: [Abstract] | |||
Amortized Cost | 211,581,000 | 158,072,000 | |
Gross Unrealized Gains | 4,103,000 | 7,094,000 | |
Gross Unrealized Losses | 2,964,000 | 124,000 | |
Fair Value | 212,720,000 | 165,042,000 | |
Asset-backed Securities [Member] | |||
Securities available-for-sale: [Abstract] | |||
Amortized Cost | 79,318,000 | 49,598,000 | |
Gross Unrealized Gains | 111,000 | 8,000 | |
Gross Unrealized Losses | 849,000 | 805,000 | |
Fair Value | 78,580,000 | 48,801,000 | |
Corporate Notes [Member] | |||
Securities available-for-sale: [Abstract] | |||
Amortized Cost | 8,608,000 | 9,541,000 | |
Gross Unrealized Gains | 39,000 | 589,000 | |
Gross Unrealized Losses | 46,000 | 17,000 | |
Fair Value | 8,601,000 | 10,113,000 | |
State and Municipal Securities [Member] | |||
Securities held-to-maturity: [Abstract] | |||
Amortized Cost | 25,251,316 | 31,376,840 | |
Gross Unrealized Gains | 87,000 | 257,000 | |
Gross Unrealized Losses | 105,000 | 48,000 | |
Fair Value | 25,233,254 | 31,585,303 | |
Held-to-maturity, Amortized Cost [Abstract] | |||
Amortized Cost | 25,251,316 | 31,376,840 | |
Held-to-maturity, Fair Value [Abstract] | |||
Fair Value | $ 25,233,254 | $ 31,585,303 |
Securities, Available-for-sale
Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Dec. 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 | $ 907,810 | $ 450,662 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 18,219 | 5,344 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 98,377 | 178,215 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 1,968 | 3,989 |
Total Investments with an Unrealized Loss, Fair Value | 1,006,187 | 628,877 |
Total Investments with an Unrealized Loss, Unrealized Losses | 20,187 | 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 | 0 | 61,903 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 0 | 1,702 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 20,820 | 65,538 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 537 | 1,607 |
Total Investments with an Unrealized Loss, Fair Value | 20,820 | 127,441 |
Total Investments with an Unrealized Loss, Unrealized Losses | 537 | 3,309 |
Mortgage-backed Agency Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an Unrealized Loss of less than 12 months, Fair Value | 801,213 | 338,230 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 15,073 | 2,789 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 43,148 | 103,003 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 613 | 2,241 |
Total Investments with an Unrealized Loss, Fair Value | 844,361 | 441,233 |
Total Investments with an Unrealized Loss, Unrealized Losses | 15,686 | 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 | 87,277 | 6,509 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 3,068 | 38 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 312 | 6,135 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 1 | 134 |
Total Investments with an Unrealized Loss, Fair Value | 87,589 | 12,644 |
Total Investments with an Unrealized Loss, Unrealized Losses | 3,069 | 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 | 14,510 | 41,466 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 32 | 798 |
Investments with an Unrealized Loss of 12 months or longer, Fair Value | 34,097 | 3,539 |
Investments with an Unrealized Loss of 12 months or longer, Unrealized Losses | 817 | 7 |
Total Investments with an Unrealized Loss, Fair Value | 48,607 | 45,005 |
Total Investments with an Unrealized Loss, Unrealized Losses | 849 | 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 | 4,810 | 2,554 |
Investments with an Unrealized Loss of less than 12 months, Unrealized Losses | 46 | 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 | 4,810 | 2,554 |
Total Investments with an Unrealized Loss, Unrealized Losses | $ 46 | $ 17 |
Loans and Allowance for Loan 58
Loans and Allowance for Loan Losses (Details) - USD ($) | 12 Months Ended | ||||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Jun. 30, 2016 | ||
Loans and Allowance for Loan Losses [Abstract] | |||||
Percentage of loan portfolio as commercial loan | 79.00% | ||||
Risk rated loans | $ 500,000 | ||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,449,924,736 | $ 6,543,235,381 | $ 4,590,027,000 | ||
Potential problem loans not included in nonperforming assets | 114,600,000 | 105,000,000 | |||
Principal balance of nonaccrual loans | [1] | 27,577,000 | 29,359,000 | ||
Average balance of impaired loans | 35,058,000 | 21,613,000 | 17,463,000 | ||
Estimated increase in interest income if nonaccrual loans had been on accrual status | 2,100,000 | 2,300,000 | 636,000 | ||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 8,835,000 | 12,134,000 | 0 | ||
Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,193,496,000 | 2,275,483,000 | 1,544,091,000 | ||
Commercial Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 2,384,000 | 3,624,000 | 0 | ||
Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,185,917,000 | 1,046,517,000 | 721,158,000 | ||
Principal balance of nonaccrual loans | [1] | 8,073,000 | 9,346,000 | ||
Consumer Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 2,520,000 | 4,052,000 | 0 | ||
Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 912,673,000 | 747,697,000 | 322,466,000 | ||
Principal balance of nonaccrual loans | [1] | 6,613,000 | 7,607,000 | ||
Construction and Land Development [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 3,408,000 | 3,918,000 | 0 | ||
Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,891,710,000 | 2,228,542,000 | 1,784,729,000 | ||
Principal balance of nonaccrual loans | [1] | 7,495,000 | 1,683,000 | ||
Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 523,000 | 540,000 | 0 | ||
Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 266,129,000 | 244,996,000 | 217,583,000 | ||
Principal balance of nonaccrual loans | [1] | 475,000 | 4,902,000 | ||
Consumer and Other [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 0 | 0 | $ 0 | ||
Commercial Real Estate Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Principal balance of nonaccrual loans | [1] | 667,000 | 718,000 | ||
Commercial Real Estate Owner Occupied [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Principal balance of nonaccrual loans | [1] | 4,254,000 | 5,103,000 | ||
Accruing Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,407,340,000 | 6,505,788,000 | |||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,188,362,000 | 2,269,439,000 | |||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,174,456,000 | 1,033,479,000 | |||
Accruing Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 906,053,000 | 740,090,000 | |||
Accruing Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,872,856,000 | 2,222,714,000 | |||
Accruing Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 265,613,000 | 240,066,000 | |||
Accruing Loans [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,240,473,000 | 6,353,420,000 | |||
Accruing Loans [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,137,239,000 | 2,217,639,000 | |||
Accruing Loans [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,159,003,000 | 1,020,239,000 | |||
Accruing Loans [Member] | Pass [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 897,549,000 | 732,662,000 | |||
Accruing Loans [Member] | Pass [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,782,000,000 | 2,143,006,000 | |||
Accruing Loans [Member] | Pass [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 264,682,000 | 239,874,000 | |||
Accruing Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 52,228,000 | 47,344,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 21,449,000 | 18,162,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,620,000 | 1,894,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,716,000 | 1,133,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 25,641,000 | 26,037,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 802,000 | 118,000 | |||
Accruing Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 114,639,000 | 105,024,000 | ||
Accruing Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 29,674,000 | 33,638,000 | ||
Accruing Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 13,833,000 | 11,346,000 | ||
Accruing Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 5,788,000 | 6,295,000 | ||
Accruing Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 65,215,000 | 53,671,000 | ||
Accruing Loans [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 129,000 | 74,000 | ||
Nonaccrual Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 27,577,000 | 29,359,000 | ||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 4,921,000 | 5,821,000 | ||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 8,073,000 | 9,346,000 | ||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 6,613,000 | 7,607,000 | ||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 7,495,000 | 1,683,000 | ||
Nonaccrual Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 475,000 | 4,902,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 27,574,000 | 29,263,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 4,921,000 | 5,819,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,073,000 | 9,344,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 6,613,000 | 7,607,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 7,492,000 | 1,591,000 | |||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 475,000 | 4,902,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,000 | 96,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | 2,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | 2,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | 0 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,000 | 92,000 | |||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | 0 | |||
Troubled Debt Restructurings [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 15,008,000 | 8,088,000 | ||
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 213,000 | 223,000 | ||
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 3,388,000 | 3,692,000 | ||
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 7,000 | 0 | ||
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 11,359,000 | 4,145,000 | ||
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 41,000 | 28,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 2,332,000 | 1,213,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 213,000 | 223,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 1,358,000 | 409,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 7,000 | 0 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 713,000 | 553,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 41,000 | 28,000 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 236,000 | 422,000 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 236,000 | 422,000 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 12,440,000 | 6,453,000 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 1,794,000 | 2,861,000 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 10,646,000 | 3,592,000 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [4] | 0 | 0 | ||
Impaired Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 42,585,000 | 37,447,000 | |||
Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 5,134,000 | 6,044,000 | |||
Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 11,461,000 | 13,038,000 | |||
Impaired Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 6,620,000 | 7,607,000 | |||
Impaired Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 18,854,000 | 5,828,000 | |||
Impaired Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 516,000 | $ 4,930,000 | |||
Acquired Accruing Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | (19,167,000) | ||||
Net total acquired loans | 888,083,000 | ||||
Acquired Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 374,872,000 | ||||
Acquired Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 122,812,000 | ||||
Acquired Accruing Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 116,684,000 | ||||
Acquired Accruing Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 280,985,000 | ||||
Acquired Accruing Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 11,897,000 | ||||
Acquired Accruing Loans [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | (18,893,000) | ||||
Net total acquired loans | 873,495,000 | ||||
Acquired Accruing Loans [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 365,797,000 | ||||
Acquired Accruing Loans [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 119,430,000 | ||||
Acquired Accruing Loans [Member] | Pass [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 114,849,000 | ||||
Acquired Accruing Loans [Member] | Pass [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 280,415,000 | ||||
Acquired Accruing Loans [Member] | Pass [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 11,897,000 | ||||
Acquired Accruing Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | (142,000) | ||||
Net total acquired loans | 9,503,000 | ||||
Acquired Accruing Loans [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 9,075,000 | ||||
Acquired Accruing Loans [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | ||||
Acquired Accruing Loans [Member] | Special Mention [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | ||||
Acquired Accruing Loans [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 570,000 | ||||
Acquired Accruing Loans [Member] | Special Mention [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | ||||
Acquired Accruing Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | (132,000) | ||||
Net total acquired loans | 5,085,000 | ||||
Acquired Accruing Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | ||||
Acquired Accruing Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,382,000 | ||||
Acquired Accruing Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,835,000 | ||||
Acquired Accruing Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | ||||
Acquired Accruing Loans [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | ||||
Acquired Nonaccrual Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | [5] | (594,000) | |||
Net total acquired loans | [5] | 566,000 | |||
Acquired Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 295,000 | |||
Acquired Nonaccrual Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 404,000 | |||
Acquired Nonaccrual Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 388,000 | |||
Acquired Nonaccrual Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 73,000 | |||
Acquired Nonaccrual Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | [5] | (594,000) | |||
Net total acquired loans | [5] | 566,000 | |||
Acquired Nonaccrual Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 295,000 | |||
Acquired Nonaccrual Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 404,000 | |||
Acquired Nonaccrual Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 388,000 | |||
Acquired Nonaccrual Loans [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 73,000 | |||
Acquired Nonaccrual Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | [5] | 0 | |||
Net total acquired loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Doubtful [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Doubtful [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Doubtful [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Doubtful [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Nonaccrual Loans [Member] | Doubtful [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Impaired Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | [5] | (594,000) | |||
Net total acquired loans | [5] | 566,000 | |||
Acquired Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 0 | |||
Acquired Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 295,000 | |||
Acquired Impaired Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 404,000 | |||
Acquired Impaired Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 388,000 | |||
Acquired Impaired Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [5] | 73,000 | |||
Acquired Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Fair value adjustment | (19,761,000) | ||||
Net total acquired loans | 888,649,000 | ||||
Acquired Loans [Member] | Avenue Financial Holdings, Inc. (Avenue) [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Net total acquired loans | $ 952,500,000 | ||||
Notes receivable, net | 951,100,000 | ||||
Acquired Loans [Member] | Avenue Financial Holdings, Inc. (Avenue) [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | $ 1,400,000 | ||||
Acquired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 374,872,000 | ||||
Acquired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 123,107,000 | ||||
Acquired Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 117,088,000 | ||||
Acquired Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 281,373,000 | ||||
Acquired Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | $ 11,970,000 | ||||
[1] | Approximately $16.7 million and $19.0 million of nonaccrual loans as of December 31, 2016 and 2015, respectively, are currently performing pursuant to their contractual terms. | ||||
[2] | 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 substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $114.6 million at December 31, 2016 compared to $105.0 million at December 31, 2015. | ||||
[3] | Included in nonaccrual loans at December 31, 2016 and 2015 are $8.8 million and $12.1 million, respectively, in loans acquired with deteriorated credit quality and accounted for as purchase credit impaired. | ||||
[4] | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. | ||||
[5] | All of the acquired impaired loans have been deemed to be collateral dependent and as such were placed on nonaccrual. As such, no accretable difference has been recorded on these loans. |
Loans and Allowance for Loan 59
Loans and Allowance for Loan Losses, Rollforward of Purchase Credit Impaired Loans (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended |
Dec. 31, 2015 | Dec. 31, 2016 | |
Business Combination, Acquired Receivables [Abstract] | ||
Gross Contractual Receivable | $ 19,960 | $ 16,274 |
Acquisitions | 1,359 | |
Settlements | (3,803) | (6,017) |
Additional fundings | 117 | 852 |
Gross Contractual Receivable | 16,274 | 12,468 |
Accretable Yield | 0 | 0 |
Acquired Accretable Yield | 0 | |
Settlements | 0 | 0 |
Additional fundings | 0 | 0 |
Accretable Yield | 0 | 0 |
Nonaccretable Yield | (5,703) | (4,143) |
Acquired Nonaccretable Yield | (812) | |
Settlements | 1,560 | 1,322 |
Additional fundings | 0 | 0 |
Nonaccretable Yield | (4,143) | (3,633) |
Carrying Value | 14,257 | 12,131 |
Acquisitions | 547 | |
Settlements | (2,243) | (4,695) |
Additional fundings | 117 | 852 |
Carrying Value | $ 12,131 | $ 8,835 |
Loans and Allowance for Loan 60
Loans and Allowance for Loan Losses, Impaired Financing Receivable (Details) - USD ($) $ in Thousands | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | $ 27,577 | $ 29,359 | $ 16,705 | |
Unpaid principal balance | 31,612 | 34,441 | 18,352 | |
Related allowance | [1] | 1,071 | 3,669 | 1,155 |
Average recorded investment | 35,058 | 21,613 | 17,463 | |
Interest income recognized | 159 | 308 | 256 | |
Collateral Dependent Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 14,689 | 18,958 | 10,029 | |
Unpaid principal balance | 14,769 | 22,935 | 11,156 | |
Related allowance | [1] | 0 | 0 | 0 |
Average recorded investment | 17,420 | 11,164 | 10,753 | |
Interest income recognized | 159 | 308 | 256 | |
Collateral Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,308 | 4,411 | 2,422 | |
Unpaid principal balance | 2,312 | 5,659 | 2,641 | |
Related allowance | [1] | 0 | 0 | 0 |
Average recorded investment | 2,540 | 2,253 | 2,624 | |
Interest income recognized | 0 | 0 | 0 | |
Collateral Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,880 | 5,596 | 1,472 | |
Unpaid principal balance | 2,915 | 6,242 | 1,901 | |
Related allowance | [1] | 0 | 0 | 0 |
Average recorded investment | 2,907 | 3,067 | 1,552 | |
Interest income recognized | 0 | 0 | 0 | |
Collateral Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 3,128 | 7,531 | 4,810 | |
Unpaid principal balance | 3,135 | 7,883 | 4,810 | |
Related allowance | [1] | 0 | 0 | 0 |
Average recorded investment | 3,132 | 4,317 | 5,016 | |
Interest income recognized | 159 | 308 | 256 | |
Collateral Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 6,373 | 1,420 | 1,325 | |
Unpaid principal balance | 6,407 | 3,151 | 1,804 | |
Related allowance | [1] | 0 | 0 | 0 |
Average recorded investment | 8,841 | 1,527 | 1,561 | |
Interest income recognized | 0 | 0 | 0 | |
Collateral Dependent Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | 0 | |
Unpaid principal balance | 0 | 0 | 0 | |
Related allowance | [1] | 0 | 0 | 0 |
Average recorded investment | 0 | 0 | 0 | |
Interest income recognized | 0 | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 12,888 | 10,401 | 6,676 | |
Unpaid principal balance | 16,843 | 11,506 | 7,196 | |
Related allowance | [1] | 1,071 | 3,669 | 1,155 |
Average recorded investment | 17,638 | 10,449 | 6,710 | |
Interest income recognized | 0 | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,613 | 1,410 | 1,891 | |
Unpaid principal balance | 3,349 | 1,661 | 2,107 | |
Related allowance | [1] | 59 | 20 | 108 |
Average recorded investment | 2,688 | 1,466 | 1,958 | |
Interest income recognized | 0 | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 5,193 | 3,750 | 2,986 | |
Unpaid principal balance | 5,775 | 4,098 | 3,205 | |
Related allowance | [1] | 688 | 616 | 654 |
Average recorded investment | 5,966 | 3,815 | 3,080 | |
Interest income recognized | 0 | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 3,485 | 76 | 363 | |
Unpaid principal balance | 4,154 | 125 | 406 | |
Related allowance | [1] | 20 | 12 | 79 |
Average recorded investment | 3,476 | 87 | 384 | |
Interest income recognized | 0 | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,122 | 263 | 284 | |
Unpaid principal balance | 2,714 | 281 | 294 | |
Related allowance | [1] | 77 | 19 | 62 |
Average recorded investment | 2,884 | 168 | 316 | |
Interest income recognized | 0 | 0 | 0 | |
Cash Flow Dependent Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 475 | 4,902 | 1,152 | |
Unpaid principal balance | 851 | 5,341 | 1,184 | |
Related allowance | [1] | 227 | 3,002 | 252 |
Average recorded investment | 2,624 | 4,913 | 972 | |
Interest income recognized | $ 0 | $ 0 | $ 0 | |
[1] | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
Loans and Allowance for Loan 61
Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Contract | Dec. 31, 2015USD ($)Contract | Dec. 31, 2014USD ($)Contract | |
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 6 | 2 | 12 |
Pre Modification Outstanding Recorded Investment | $ 11,084,000 | $ 657,000 | $ 4,111,000 |
Post Modification Outstanding Recorded Investment net of related allowance | $ 11,083,000 | $ 522,000 | $ 3,087,000 |
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 | 1 | 0 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 223,000 | $ 0 |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 | $ 185,000 | $ 0 |
Consumer Real Estate - Mortgage [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | 1 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 47,000 |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 | $ 0 | $ 38,000 |
Construction and Land Development [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | 1 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 436,000 |
Post Modification Outstanding Recorded Investment net of related allowance | $ 0 | $ 0 | $ 403,000 |
Commercial and Industrial [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 6 | 1 | 10 |
Pre Modification Outstanding Recorded Investment | $ 11,084,000 | $ 434,000 | $ 3,628,000 |
Post Modification Outstanding Recorded Investment net of related allowance | $ 11,083,000 | $ 337,000 | $ 2,646,000 |
Number of Contracts of troubled debt restructurings subsequently defaulted | Contract | 0 | 0 | 0 |
Troubled debt restructurings subsequently defaulted | $ 0 | $ 0 | $ 0 |
Consumer and Other [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | 0 |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 0 |
Post Modification Outstanding Recorded Investment net of related allowance | 0 | 0 | $ 0 |
Lessors of Nonresidential Buildings [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 1,294,366,000 | ||
Financing receivables unfunded commitment | 407,487,000 | ||
Financing receivables exposure | 1,701,853,000 | 1,078,211,000 | |
Lessors of Residential Buildings [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 526,259,000 | ||
Financing receivables unfunded commitment | 347,975,000 | ||
Financing receivables exposure | 874,234,000 | 500,266,000 | |
New Housing Operative Builders [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 229,035,000 | ||
Financing receivables unfunded commitment | 157,370,000 | ||
Financing receivables exposure | 386,405,000 | 206,539,000 | |
Hotels and Motels [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 127,296,000 | ||
Financing receivables unfunded commitment | 164,569,000 | ||
Financing receivables exposure | $ 291,865,000 | $ 167,317,000 |
Loans and Allowance for Loan 62
Loans and Allowance for Loan Losses, Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Dec. 31, 2016 | Dec. 31, 2015 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | $ 22,330 | $ 19,977 | |
Nonperforming | [1] | 27,577 | 29,359 |
Current and performing | 8,400,018 | 6,493,899 | |
Total Loans | 8,449,925 | 6,543,235 | |
Currently performing impaired loans | 16,700 | 19,000 | |
30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 21,196 | 18,208 | |
90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 1,134 | 1,769 | |
Commercial Real Estate Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 3,505 | 0 | |
Nonperforming | [1] | 4,254 | 5,103 |
Current and performing | 1,347,134 | 1,078,394 | |
Total Loans | 1,354,893 | 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 performing | 3,505 | 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 performing | 0 | 0 | |
Commercial Real Estate Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 0 | 0 | |
Nonperforming | [1] | 667 | 718 |
Current and performing | 1,837,936 | 1,191,268 | |
Total Loans | 1,838,603 | 1,191,986 | |
Commercial Real Estate Other [Member] | 30-89 Days Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 0 | 0 | |
Commercial Real Estate Other [Member] | 90 Days or More Past Due and Performing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 0 | 0 | |
Consumer Real Estate - Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 3,891 | 7,776 | |
Nonperforming | [1] | 8,073 | 9,346 |
Current and performing | 1,173,953 | 1,029,395 | |
Total Loans | 1,185,917 | 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 performing | 3,838 | 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 performing | 53 | 1,396 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 2,210 | 309 | |
Nonperforming | [1] | 6,613 | 7,607 |
Current and performing | 903,850 | 739,781 | |
Total Loans | 912,673 | 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 performing | 2,210 | 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 performing | 0 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 4,475 | 4,798 | |
Nonperforming | [1] | 7,495 | 1,683 |
Current and performing | 2,879,740 | 2,222,061 | |
Total Loans | 2,891,710 | 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 performing | 4,475 | 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 performing | 0 | 0 | |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and performing | 8,249 | 7,094 | |
Nonperforming | [1] | 475 | 4,902 |
Current and performing | 257,405 | 233,000 | |
Total Loans | 266,129 | 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 performing | 7,168 | 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 performing | $ 1,081 | $ 373 | |
[1] | Approximately $16.7 million and $19.0 million of nonaccrual loans as of December 31, 2016 and 2015, respectively, are currently performing pursuant to their contractual terms. |
Loans and Allowance for Loan 63
Loans and Allowance for Loan Losses, Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | $ 58,980,475 | $ 65,432,354 | |||||||||||||||||
Troubled debt restructurings classified as impaired loans | 15,000,000 | 8,100,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | $ 65,432,000 | $ 67,359,000 | $ 67,970,000 | $ 65,432,000 | $ 67,359,000 | $ 67,970,000 | |||||||||||||
Charged-off loans | (31,112,118) | (21,148,034) | (7,702,661) | ||||||||||||||||
Recovery of previously charged-off loans | 6,332,000 | 10,033,000 | 3,457,000 | ||||||||||||||||
Provision for loan losses | $ 3,046,000 | $ 6,108,000 | $ 5,280,000 | 3,894,000 | $ 5,459,000 | $ 2,228,000 | $ 1,186,000 | 315,000 | $ 2,041,000 | $ 851,000 | $ 254,000 | 488,000 | 18,328,058 | 9,188,497 | 3,634,660 | ||||
Ending Balance | 58,980,000 | 65,432,000 | 67,359,000 | 58,980,000 | 65,432,000 | 67,359,000 | |||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 33,750,000 | 25,313,000 | $ 25,116,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 1,092,000 | 5,165,000 | 2,885,000 | ||||||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 8,407,340,000 | 6,505,788,000 | 4,564,911,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 57,014,000 | 59,730,000 | 61,202,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 58,980,000 | 65,432,000 | 65,432,000 | 67,359,000 | 67,359,000 | 67,970,000 | 65,432,000 | 67,359,000 | 67,359,000 | 58,980,000 | 65,432,000 | 67,359,000 | |||||||
Loans and Leases Receivable, Net of Deferred Income | 8,449,924,736 | 6,543,235,381 | 4,590,027,000 | ||||||||||||||||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | 22,600,000 | 14,500,000 | |||||||||||||||||
Amount drawn from loans and other extensions of credit granted | 14,800,000 | 11,400,000 | |||||||||||||||||
Mortgage loans held-for-sale | 47,710,120 | 47,930,253 | |||||||||||||||||
Gain loss on sale of loans held for sale | 15,754,473 | 7,668,960 | 5,630,371 | ||||||||||||||||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Financing Receivable, Acquired with Deteriorated Credit Quality | 8,835,000 | 12,134,000 | 0 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Commercial Real Estate - Mortgage [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 13,655,000 | 15,513,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 15,513,000 | 22,202,000 | 21,372,000 | 15,513,000 | 22,202,000 | 21,372,000 | |||||||||||||
Charged-off loans | (276,000) | (384,000) | (875,000) | ||||||||||||||||
Recovery of previously charged-off loans | 208,000 | 85,000 | 538,000 | ||||||||||||||||
Provision for loan losses | (1,790,000) | (6,390,000) | 1,167,000 | ||||||||||||||||
Ending Balance | 13,655,000 | 15,513,000 | 22,202,000 | 13,655,000 | 15,513,000 | 22,202,000 | |||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 2,750,000 | 2,420,000 | 4,313,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 60,000 | 61,000 | 108,000 | ||||||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 3,188,362,000 | 2,269,439,000 | 1,539,778,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 13,595,000 | 15,452,000 | 22,094,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 13,655,000 | 15,513,000 | 15,513,000 | 22,202,000 | 22,202,000 | 21,372,000 | 15,513,000 | 15,513,000 | 22,202,000 | 13,655,000 | 15,513,000 | 22,202,000 | |||||||
Loans and Leases Receivable, Net of Deferred Income | 3,193,496,000 | 2,275,483,000 | 1,544,091,000 | ||||||||||||||||
Commercial Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Financing Receivable, Acquired with Deteriorated Credit Quality | 2,384,000 | 3,624,000 | 0 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Consumer Real Estate - Mortgage [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 6,564,000 | 7,220,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 7,220,000 | 5,424,000 | 8,355,000 | 7,220,000 | 5,424,000 | 8,355,000 | |||||||||||||
Charged-off loans | (788,000) | (365,000) | (1,621,000) | ||||||||||||||||
Recovery of previously charged-off loans | 546,000 | 874,000 | 671,000 | ||||||||||||||||
Provision for loan losses | (414,000) | 1,287,000 | (1,981,000) | ||||||||||||||||
Ending Balance | 6,564,000 | 7,220,000 | 5,424,000 | 6,564,000 | 7,220,000 | 5,424,000 | |||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 8,941,000 | 8,986,000 | 8,384,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 690,000 | 1,111,000 | 1,461,000 | ||||||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 1,174,456,000 | 1,033,479,000 | 712,774,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 5,874,000 | 6,109,000 | 3,963,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 6,564,000 | 7,220,000 | 7,220,000 | 5,424,000 | 5,424,000 | 8,355,000 | 7,220,000 | 5,424,000 | 5,424,000 | 6,564,000 | 7,220,000 | 5,424,000 | |||||||
Loans and Leases Receivable, Net of Deferred Income | 1,185,917,000 | 1,046,517,000 | 721,158,000 | ||||||||||||||||
Consumer Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Financing Receivable, Acquired with Deteriorated Credit Quality | 2,520,000 | 4,052,000 | 0 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Construction and Land Development [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 3,624,000 | 2,903,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 2,903,000 | 5,724,000 | 7,235,000 | 2,903,000 | 5,724,000 | 7,235,000 | |||||||||||||
Charged-off loans | (231,000) | (190,000) | (301,000) | ||||||||||||||||
Recovery of previously charged-off loans | 545,000 | 1,479,000 | 277,000 | ||||||||||||||||
Provision for loan losses | 407,000 | (4,110,000) | (1,487,000) | ||||||||||||||||
Ending Balance | 3,624,000 | 2,903,000 | 5,724,000 | 3,624,000 | 2,903,000 | 5,724,000 | |||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 3,212,000 | 3,689,000 | 5,609,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 20,000 | 12,000 | 169,000 | ||||||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 906,053,000 | 740,090,000 | 316,857,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 3,604,000 | 2,891,000 | 5,555,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 3,624,000 | 2,903,000 | 2,903,000 | 5,724,000 | 5,724,000 | 7,235,000 | 2,903,000 | 2,903,000 | 5,724,000 | 3,624,000 | 2,903,000 | 5,724,000 | |||||||
Loans and Leases Receivable, Net of Deferred Income | 912,673,000 | 747,697,000 | 322,466,000 | ||||||||||||||||
Construction and Land Development [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Financing Receivable, Acquired with Deteriorated Credit Quality | 3,408,000 | 3,918,000 | 0 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Commercial and Industrial [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 24,743,000 | 23,643,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 23,643,000 | 29,167,000 | 25,134,000 | 23,643,000 | 29,167,000 | 25,134,000 | |||||||||||||
Charged-off loans | (5,801,000) | (2,207,000) | (3,095,000) | ||||||||||||||||
Recovery of previously charged-off loans | 2,138,000 | 1,730,000 | 1,484,000 | ||||||||||||||||
Provision for loan losses | 4,763,000 | (5,047,000) | 5,644,000 | ||||||||||||||||
Ending Balance | 24,743,000 | 23,643,000 | 29,167,000 | 24,743,000 | 23,643,000 | 29,167,000 | |||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 18,331,000 | 5,288,000 | 5,382,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 95,000 | 974,000 | 838,000 | ||||||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 2,872,856,000 | 2,222,714,000 | 1,779,347,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 24,648,000 | 22,669,000 | 28,329,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 24,743,000 | 23,643,000 | 23,643,000 | 29,167,000 | 29,167,000 | 25,134,000 | 23,643,000 | 23,643,000 | 29,167,000 | 24,743,000 | 23,643,000 | 29,167,000 | |||||||
Loans and Leases Receivable, Net of Deferred Income | 2,891,710,000 | 2,228,542,000 | 1,784,729,000 | ||||||||||||||||
Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Financing Receivable, Acquired with Deteriorated Credit Quality | 523,000 | 540,000 | 0 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Consumer and Other [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 9,520,000 | 15,616,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 15,616,000 | 1,570,000 | 1,632,000 | 15,616,000 | 1,570,000 | 1,632,000 | |||||||||||||
Charged-off loans | (24,016,000) | (18,002,000) | (1,811,000) | ||||||||||||||||
Recovery of previously charged-off loans | 2,895,000 | 5,865,000 | 487,000 | ||||||||||||||||
Provision for loan losses | 15,025,000 | 26,183,000 | 1,262,000 | ||||||||||||||||
Ending Balance | 9,520,000 | 15,616,000 | 1,570,000 | 9,520,000 | 15,616,000 | 1,570,000 | |||||||||||||
Financing Receivable, Individually Evaluated for Impairment | 516,000 | 4,930,000 | 1,428,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Individually Evaluated for Impairment | 227,000 | 3,007,000 | 309,000 | ||||||||||||||||
Financing Receivable, Collectively Evaluated for Impairment | 265,613,000 | 240,066,000 | 216,155,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Collectively Evaluated for Impairment | 9,293,000 | 12,609,000 | 1,261,000 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 9,520,000 | 15,616,000 | 15,616,000 | 1,570,000 | 1,570,000 | 1,632,000 | 15,616,000 | 15,616,000 | 1,570,000 | 9,520,000 | 15,616,000 | 1,570,000 | |||||||
Loans and Leases Receivable, Net of Deferred Income | 266,129,000 | 244,996,000 | 217,583,000 | ||||||||||||||||
Consumer and Other [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 0 | 0 | 0 | 0 | |||||||||||||||
Ending Balance | 0 | 0 | 0 | 0 | 0 | 0 | |||||||||||||
Financing Receivable, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | ||||||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | 0 | ||||||||
Unallocated [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 874,000 | 537,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Beginning Balance | 537,000 | 3,272,000 | 4,242,000 | 537,000 | 3,272,000 | 4,242,000 | |||||||||||||
Charged-off loans | 0 | 0 | 0 | ||||||||||||||||
Recovery of previously charged-off loans | 0 | 0 | 0 | ||||||||||||||||
Provision for loan losses | 337,000 | (2,735,000) | (970,000) | ||||||||||||||||
Ending Balance | 874,000 | 537,000 | 3,272,000 | 874,000 | 537,000 | 3,272,000 | |||||||||||||
Financing Receivable, Allowance for Credit Losses, Acquired with Deteriorated Credit Quality | $ 874,000 | $ 537,000 | $ 537,000 | $ 3,272,000 | $ 3,272,000 | $ 4,242,000 | $ 537,000 | $ 537,000 | $ 4,242,000 | 874,000 | 537,000 | $ 3,272,000 | |||||||
Impaired Loans [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 42,585,000 | 37,447,000 | |||||||||||||||||
Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 5,134,000 | 6,044,000 | |||||||||||||||||
Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 11,461,000 | 13,038,000 | |||||||||||||||||
Impaired Loans [Member] | Construction and Land Development [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 6,620,000 | 7,607,000 | |||||||||||||||||
Impaired Loans [Member] | Commercial and Industrial [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 18,854,000 | 5,828,000 | |||||||||||||||||
Impaired Loans [Member] | Consumer and Other [Member] | |||||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 516,000 | 4,930,000 | |||||||||||||||||
Accruing Loans [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 57,014,000 | 59,730,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 8,407,340,000 | 6,505,788,000 | |||||||||||||||||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 13,595,000 | 15,452,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 3,188,362,000 | 2,269,439,000 | |||||||||||||||||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 5,874,000 | 6,109,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 1,174,456,000 | 1,033,479,000 | |||||||||||||||||
Accruing Loans [Member] | Construction and Land Development [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 3,604,000 | 2,891,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 906,053,000 | 740,090,000 | |||||||||||||||||
Accruing Loans [Member] | Commercial and Industrial [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 24,648,000 | 22,669,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 2,872,856,000 | 2,222,714,000 | |||||||||||||||||
Accruing Loans [Member] | Consumer and Other [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 9,293,000 | 12,609,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | 265,613,000 | 240,066,000 | |||||||||||||||||
Accruing Loans [Member] | Unallocated [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 0 | 0 | |||||||||||||||||
Nonaccrual Loans [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | 1,071,000 | 3,669,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [1] | 27,577,000 | 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 | 59,000 | 20,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [1] | 4,921,000 | 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 | 688,000 | 616,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [1] | 8,073,000 | 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 | 20,000 | 12,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [1] | 6,613,000 | 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 | 77,000 | 19,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [1] | 7,495,000 | 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 | 227,000 | 3,002,000 | |||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [1] | 475,000 | 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 | [2] | 21,000 | 1,496,000 | ||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [3] | 15,008,000 | 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 | [2] | 1,000 | 41,000 | ||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [3] | 213,000 | 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 | [2] | 2,000 | 495,000 | ||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [3] | 3,388,000 | 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 | [2] | 0 | 0 | ||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [3] | 7,000 | 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 | [2] | 18,000 | 955,000 | ||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [3] | 11,359,000 | 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 | [2] | 0 | 5,000 | ||||||||||||||||
Changes in allowance for loan losses [Roll Forward] | |||||||||||||||||||
Loans and Leases Receivable, Net of Deferred Income | [3] | 41,000 | 28,000 | ||||||||||||||||
Troubled Debt Restructurings [Member] | Unallocated [Member] | |||||||||||||||||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||||||||||||||||
Total Allowance for Loan Losses | [2] | $ 0 | $ 0 | ||||||||||||||||
[1] | Included in nonaccrual loans at December 31, 2016 and 2015 are $8.8 million and $12.1 million, respectively, in loans acquired with deteriorated credit quality and accounted for as purchase credit impaired. | ||||||||||||||||||
[2] | Troubled debt restructurings of $15.0 million and $8.1 million as of December 31, 2016 and 2015, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. | ||||||||||||||||||
[3] | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. |
Mortgage Servicing Rights (Deta
Mortgage Servicing Rights (Details) - USD ($) $ in Thousands | 4 Months Ended | 12 Months Ended | |
Dec. 31, 2015 | Dec. 31, 2015 | Dec. 31, 2015 | |
Mortgage Servicing Rights, Carrying Values [Abstract] | |||
Gross carrying amount | $ 6,802 | ||
Accumulated amortization | (390) | ||
Net carrying amount | $ 6,412 | $ 6,412 | 6,412 |
Changes in mortgage servicing right [Roll Forward] | |||
Ending balance | 6,412 | 6,412 | |
Residential [Member] | |||
Mortgage Servicing Rights, Carrying Values [Abstract] | |||
Net carrying amount | 6,641 | 6,412 | $ 6,412 |
Changes in mortgage servicing right [Roll Forward] | |||
Beginning balance acquired in Magna Merger | 6,641 | ||
Add: Originated MSRs | 161 | ||
Less: Amortization | (390) | (386) | |
Ending balance | 6,412 | 6,412 | |
Net Servicing Fee Revenues [Abstract] | |||
Gross servicing fees | 1,090 | ||
Late charges and other ancillary revenue | 160 | ||
Gross servicing revenue | 1,250 | ||
Less: Amortization | $ 390 | 386 | |
Guaranty fees and loan pay-off interest | 9 | ||
Other servicing expenses | 51 | ||
Gross servicing expenses | 446 | ||
Net servicing fee income | $ 804 |
Premises and Equipment and Le65
Premises and Equipment and Lease Commitments (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | $ 175,326,000 | $ 158,690,000 | |
Accumulated depreciation and amortization | (86,422,000) | (80,766,000) | |
Premises and equipment, net | 88,904,145 | 77,923,607 | |
Depreciation and amortization expense | 9,900,000 | 8,500,000 | $ 5,100,000 |
Rent expense | 8,400,000 | 5,900,000 | $ 4,900,000 |
Capital lease rent expense | $ 209,000 | ||
Capital lease interest rate | 7.22% | ||
Future minimum lease payments due under operating leases [Abstract] | |||
2,016 | $ 7,567,625 | ||
2,017 | 7,537,916 | ||
2,018 | 7,479,434 | ||
2,019 | 7,457,478 | ||
2,020 | 7,348,696 | ||
Thereafter | 39,007,774 | ||
Total | 76,398,923 | ||
Future minimum lease payments due under capital leases [Abstract] | |||
2,017 | 417,000 | ||
2,018 | 426,000 | ||
2,019 | 470,000 | ||
2,020 | 470,000 | ||
2,021 | 470,000 | ||
Thereafter | 3,498,000 | ||
Total minimum lease payments | 5,751,000 | ||
Less: amount representing interest | (1,963,000) | ||
Present value of net minimum lease payments | 3,788,000 | ||
Land [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | 19,467,000 | 19,848,000 | |
Buildings [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | $ 64,088,000 | 60,218,000 | |
Buildings [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 15 years | ||
Buildings [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 30 years | ||
Leasehold Improvements [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | $ 28,789,000 | 22,485,000 | |
Leasehold Improvements [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 15 years | ||
Leasehold Improvements [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 20 years | ||
Furniture and Equipment [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, Gross | $ 62,982,000 | $ 56,139,000 | |
Furniture and Equipment [Member] | Minimum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 3 years | ||
Furniture and Equipment [Member] | Maximum [Member] | |||
Property, Plant and Equipment [Line Items] | |||
Range of Useful Lives | 15 years |
Deposits (Details)
Deposits (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Scheduled maturities of time deposits [Abstract] | ||
2,016 | $ 617,713,000 | |
2,017 | 98,689,000 | |
2,018 | 60,326,000 | |
2,019 | 31,278,000 | |
2,020 | 25,041,000 | |
Thereafter | 3,807,000 | |
Time deposits, Total | 836,853,761 | $ 690,049,795 |
Time Deposits, $250,000 or greater | 257,500,000 | 279,500,000 |
Deposit accounts in overdraft status | $ 1,854,000 | $ 1,542,000 |
Federal Home Loan Bank Advanc67
Federal Home Loan Bank Advances (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 |
Federal Home Loan Bank, Advances, Branch of FHLB Bank [Line Items] | ||
Collateral under borrowing agreements with FHLB | $ 2,509,000,000 | |
Federal home loan bank advances | 406,213,000 | $ 300,305,000 |
Remaining discount on Federal home loan bank advances | 92,114 | $ 0 |
Scheduled Maturities [Abstract] | ||
2,016 | 392,000,000 | |
2,017 | 14,003,000 | |
2,018 | 0 | |
2,019 | 182,000 | |
2,020 | 0 | |
Thereafter | 28,000 | |
Federal home loan bank advances, Total | $ 406,213,000 | |
Weighted average interest rates [Abstract] | ||
2,016 | 0.79% | |
2,017 | 1.29% | |
2,018 | 0.00% | |
2,019 | 2.25% | |
2,020 | 0.00% | |
Thereafter | 2.75% | |
Weighted average interest rate | 0.81% | |
Borrowing availability with FHLB, federal reserve bank discount window and other correspondent banks | $ 1,700,000,000 |
Investments in Affiliated Com68
Investments in Affiliated Companies and Subordinated Debt (Details) - USD ($) | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Investments in and Advances to Affiliates [Line Items] | ||
Subordinated term loan with regional bank | $ 350,768,050 | $ 141,605,504 |
Tenor of capital trust preferred securities | 30 years | |
Investments in Trusts | $ 2,476,000 | |
Obligation reflected as subordinated debt | 82,476,000 | |
Assets threshold for Tier I capital treatment of Trust Preferred Securities | $ 15,000,000,000 | |
Trust I [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Date Established | Dec. 29, 2003 | |
Debt maturity date | Dec. 30, 2033 | |
Common Securities | $ 310,000 | |
Trust Preferred Securities | $ 10,000,000 | |
Floating Interest Rate | Libor + 2.80% | |
Debt instrument, basis spread on variable rate | 2.80% | |
Interest Rate at end of period | 3.76% | |
Trust II [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Date Established | Sep. 15, 2005 | |
Debt maturity date | Sep. 30, 2035 | |
Common Securities | $ 619,000 | |
Trust Preferred Securities | $ 20,000,000 | |
Floating Interest Rate | Libor + 1.40% | |
Debt instrument, basis spread on variable rate | 1.40% | |
Interest Rate at end of period | 2.40% | |
Trust III [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Date Established | Sep. 7, 2006 | |
Debt maturity date | Sep. 30, 2036 | |
Common Securities | $ 619,000 | |
Trust Preferred Securities | $ 20,000,000 | |
Floating Interest Rate | Libor + 1.65% | |
Debt instrument, basis spread on variable rate | 1.65% | |
Interest Rate at end of period | 2.65% | |
Trust IV [Member] | ||
Investments in and Advances to Affiliates [Line Items] | ||
Date Established | Oct. 31, 2007 | |
Debt maturity date | Sep. 30, 2037 | |
Common Securities | $ 928,000 | |
Trust Preferred Securities | $ 30,000,000 | |
Floating Interest Rate | Libor + 2.85% | |
Debt instrument, basis spread on variable rate | 2.85% | |
Interest Rate at end of period | 3.81% |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Income Taxes [Abstract] | |||
Unrecognized Tax Benefits, Income Tax Penalties and Interest Accrued | $ 0 | $ (96,000) | $ 140,000 |
Current tax expense (benefit) [Abstract] | |||
Federal | 49,769,000 | 41,721,000 | 34,068,000 |
State | 0 | 48,000 | 719,000 |
Total current tax expense (benefit) | 49,769,000 | 41,769,000 | 34,787,000 |
Deferred tax expense (benefit) [Abstract] | |||
Federal | 12,776,000 | 4,963,000 | (1,260,000) |
State | 1,614,000 | 857,000 | 1,655,000 |
Total deferred tax expense (benefit) | 14,390,035 | 5,819,463 | 394,452 |
Income tax expense (benefit) | $ 64,159,167 | 47,588,528 | 35,181,517 |
Federal income tax statutory rate | 35.00% | ||
Reconciliation of the differences in income tax (benefit) expense [Abstract] | |||
Income tax expense (benefit) at statutory rate | $ 66,984,000 | 50,084,000 | 36,978,000 |
State excise tax expense (benefit), net of federal tax effect | 1,049,000 | 588,000 | 1,827,000 |
Tax-exempt securities | (2,510,000) | (2,543,000) | (2,675,000) |
Federal tax credits | (282,000) | 0 | 0 |
Bank owned life insurance | (1,242,000) | (892,000) | (849,000) |
Insurance premiums | (159,000) | (306,000) | (401,000) |
Changes in uncertain tax positions | 0 | 0 | 392,000 |
Other items | 319,000 | 658,000 | (90,000) |
Deferred tax valuation allowance | 0 | 0 | 0 |
Income tax expense (benefit) | 64,159,167 | 47,588,528 | 35,181,517 |
Deferred tax assets [Abstract] | |||
Loan loss allowance | 22,308,000 | 24,959,000 | |
Loans | 15,534,000 | 11,568,000 | |
Insurance | 869,000 | 823,000 | |
Accrued liability for supplemental retirement agreements | 5,587,000 | 2,476,000 | |
Restricted stock and stock options | 8,643,000 | 4,824,000 | |
Deferred Tax Assets, Investments | 4,275,000 | 0 | |
Cash flow hedge | 1,520,000 | 949,000 | |
Net operating loss carryforward | 0 | 0 | |
Other real estate owned | 149,000 | 587,000 | |
Other deferred tax assets | 7,897,000 | 2,905,000 | |
Total deferred tax assets | 66,782,000 | 49,091,000 | |
Deferred tax liabilities [Abstract] | |||
Depreciation and amortization | 5,823,000 | 6,273,000 | |
Core deposit intangible asset | 5,621,000 | 3,786,000 | |
Securities | 0 | 2,337,000 | |
Cash flow hedge | 0 | 0 | |
REIT dividends | 4,602,000 | 1,772,000 | |
FHLB related liabilities | 285,000 | 1,385,000 | |
Mortgage Servicing Rights | 0 | 2,468,000 | |
Other deferred tax liabilities | 679,000 | 473,000 | |
Total deferred tax liabilities | 17,010,000 | 18,494,000 | |
Net deferred tax assets | $ 49,772,000 | 30,597,000 | |
Cumulative pre-tax loss position period | 3 years | ||
Unrecognized tax benefits, beginning of period | $ 134,000 | 391,000 | 0 |
Unrecognized Tax Benefits, Increase Resulting from Current Period Tax Positions | 694,000 | (257,000) | 0 |
Unrecognized Tax Benefits, Increase Resulting from Prior Period Tax Positions | 0 | 0 | 391,000 |
Unrecognized Tax Benefits, Reduction Resulting from Lapse of Applicable Statute of Limitations | 0 | 0 | 0 |
Unrecognized Tax Benefits, Increase Resulting from Settlements with Taxing Authorities | 0 | 0 | 0 |
Unrecognized tax benefits, end of period | $ 828,000 | $ 134,000 | $ 391,000 |
Commitments and Contingent Li70
Commitments and Contingent Liabilities (Details) $ in Millions | 12 Months Ended |
Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |
Inherent risks associated with off balance sheet commitments | $ 1.1 |
Commitments to Extend Credit [Member] | |
Loss Contingencies [Line Items] | |
Amount of commitment | 3,374 |
Commitments to Extend Credit [Member] | Home equity [Member] | |
Loss Contingencies [Line Items] | |
Amount of commitment | 413.7 |
Standby Letters of Credit [Member] | |
Loss Contingencies [Line Items] | |
Amount of commitment | $ 131.4 |
Maximum [Member] | |
Loss Contingencies [Line Items] | |
Expiry period of standby letter of credit, maximum | 2 years |
Salary Deferral Plans (Details)
Salary Deferral Plans (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Participant | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Salary Deferral Plan [Abstract] | |||
Employees contributions | 50.00% | ||
Employer matching contribution to first 4% | 100.00% | ||
Percentage of employee self-directed contributions matched by employer | 4.00% | ||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Compensation expense | $ 3,985,000 | $ 2,655,000 | $ 2,381,000 |
Other liabilities | 90,267,267 | 63,930,339 | |
Cavalry ESOP [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Compensation expense | $ 50,000 | 83,000 | 99,000 |
Period to distribute accumulated gains to participant | 15 years | ||
Number of participant accepting the settlement | Participant | 11 | ||
Number of remaining participant in agreements | Participant | 2 | ||
Other liabilities | $ 1,237,000 | $ 1,312,000 | $ 1,352,000 |
Discount rate of fair value of future obligation owed to remaining participants | 5.00% | 5.00% | 5.00% |
Supplemental Retirement Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Other liabilities | $ 14,200,000 | $ 6,300,000 | |
CapitalMark Supplemental Retirement Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Period to distribute accumulated gains to participant | 23 years | ||
Other liabilities | $ 5,000,000 | ||
Avenue Supplemental Employee Retirement Plan [Member] | |||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | |||
Period to distribute accumulated gains to participant | 26 years | ||
Other liabilities | $ 7,900,000 |
Stock Options, Stock Apprecia72
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units (Details) | 12 Months Ended | |||||||
Dec. 31, 2016USD ($)$ / sharesshares | Dec. 31, 2015USD ($)$ / sharesshares | Dec. 31, 2014USD ($)$ / sharesshares | Dec. 31, 2016USD ($)Plan$ / sharesshares | |||||
Stock Options, Stock Appreciation Rights, Restricted Shares and Salary Stock Units [Abstract] | ||||||||
Number of equity incentive plan | Plan | 1 | |||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 10 years | |||||||
Aggregate intrinsic value [Abstract] | ||||||||
Aggregate intrinsic value of options and stock appreciation rights exercised | $ | $ 15,109,000 | $ 7,552,000 | $ 3,950,000 | |||||
Unrecognized compensation cost related to unvested stock options granted | $ | $ 0 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 10 years | |||||||
Age of option holder considered for vesting of individual awards | 65 years | |||||||
Restricted Stock Units [Abstract] | ||||||||
Stock-based compensation expense for Restricted Share Units | $ | $ 10,970,849 | $ 7,341,603 | $ 5,308,167 | |||||
Stock Options [Member] | ||||||||
Number [Roll Forward] | ||||||||
Exercised (in shares) | (698,673) | [1] | (303,754) | [1] | (301,794) | |||
Outstanding, Ending Balance (in shares) | 550,490 | |||||||
Weighted average exercise price [Abstract] | ||||||||
Exercised (in dollars per share) | $ / shares | $ 21.63 | [1] | $ 24.09 | [1] | $ 23.21 | |||
Stock Appreciation Rights (SARs) [Member] | ||||||||
Number [Roll Forward] | ||||||||
Exercised (in shares) | (2,435) | (1,276) | [1] | (1,586) | [1] | |||
Weighted average exercise price [Abstract] | ||||||||
Exercised (in dollars per share) | $ / shares | $ 15.60 | $ 15.60 | $ 15.60 | [1] | ||||
Aggregate intrinsic value [Abstract] | ||||||||
Number of shares settled for exercise of stock appreciation rights (in shares) | 1,137 | 559 | 609 | |||||
Common Stock Options and Stock Appreciation Rights [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Exercisable period | 10 years | |||||||
Number [Roll Forward] | ||||||||
Outstanding, Beginning Balance (in shares) | 1,251,601 | 698,488 | 1,002,500 | |||||
Granted (in shares) | 0 | 0 | 0 | |||||
Forfeited (in shares) | (3) | (5) | (632) | |||||
Outstanding, Ending Balance (in shares) | 550,490 | 1,251,601 | 698,488 | |||||
Outstanding and expected to vest (in shares) | 550,490 | |||||||
Weighted average exercise price [Abstract] | ||||||||
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 21.23 | $ 26.89 | $ 25.77 | |||||
Granted (in dollars per share) | $ / shares | 0 | 0 | 0 | |||||
Forfeited (in dollars per share) | $ / shares | $ 29.50 | 23.88 | 24.95 | |||||
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 21.23 | $ 26.89 | ||||||
Outstanding and expected to vest (in dollars per share) | $ / shares | $ 20.75 | |||||||
Options exercisable (in dollars per share) | $ / shares | $ 20.75 | |||||||
Weighted average contractual remaining term [Abstract] | ||||||||
Outstanding and expected to vest | 2 years 7 months 10 days | |||||||
Options exercisable | 2 years 7 months 10 days | |||||||
Aggregate intrinsic value [Abstract] | ||||||||
Outstanding and expected to vest | $ | [2] | $ 26,728,000 | ||||||
Options exercisable | $ | [2] | $ 26,728,000 | ||||||
Quoted closing price of common stock (in dollars per share) | $ / shares | $ 69.30 | |||||||
Number of awards used in aggregate intrinsic value (in shares) | 550,490 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 5 years | |||||||
Common Stock Options and Stock Appreciation Rights [Member] | CapitalMark Bank & Trust [Member] | ||||||||
Number [Roll Forward] | ||||||||
Options assumed upon acquisition of CapitalMark (in shares) | 858,148 | |||||||
Weighted average exercise price [Abstract] | ||||||||
Exercised (in dollars per share) | $ / shares | $ 17.62 | |||||||
Incentive Stock Options [Member] | ||||||||
Number [Roll Forward] | ||||||||
Granted (in shares) | 198,650 | |||||||
Non Qualified Stock Option Awards [Member] | ||||||||
Number [Roll Forward] | ||||||||
Granted (in shares) | 351,840 | |||||||
Restricted Share [Member] | ||||||||
Share-based compensation [Abstract] | ||||||||
Stock compensation expense | $ | $ 10,971,000 | $ 7,341,600 | $ 5,308,170 | |||||
Deferred income tax benefit | $ | 4,306,000 | 2,882,000 | 2,083,000 | |||||
Share based compensation expense after deferred income tax benefit | $ | $ 6,665,000 | $ 4,460,000 | $ 3,225,000 | |||||
Impact on per share results from stock-based compensation [Abstract] | ||||||||
Basic (in dollars per share) | $ / shares | $ 0.15 | $ 0.10 | $ 0.09 | |||||
Diluted (in dollars per share) | $ / shares | $ 0.15 | $ 0.10 | $ 0.09 | |||||
Number [Roll Forward] | ||||||||
Unvested, beginning of period (in shares) | 866,314 | 849,198 | 821,695 | |||||
Shares awarded (in shares) | 177,664 | 231,504 | 126,117 | |||||
Conversion of restricted share units to restricted share awards (in shares) | 43,694 | 43,711 | 186,943 | |||||
Restrictions lapsed and shares released to associates/directors (in shares) | (245,873) | (240,102) | (249,684) | |||||
Shares forfeited (in shares) | (21,260) | (17,997) | (35,873) | |||||
Unvested, end of period (in shares) | 820,539 | 866,314 | 849,198 | |||||
Grant date weighted average cost [Roll Forward] | ||||||||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 31.39 | $ 24.26 | $ 19.18 | |||||
Shares awarded (in dollars per share) | $ / shares | 48.61 | 45.71 | 33.32 | |||||
Conversion of restricted share units to restricted share awards (in dollars per share) | $ / shares | 46.37 | 34.50 | 31.68 | |||||
Restrictions lapsed and shares released to associates/directors (in dollars per share) | $ / shares | 28.39 | 23 | 18.19 | |||||
Shares forfeited (in dollars per share) | $ / shares | 39.88 | 30.01 | 20.70 | |||||
Unvested, end of period (in dollars per share) | $ / shares | $ 36.47 | $ 31.39 | $ 24.26 | |||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 177,664 | 231,504 | 126,117 | |||||
Shares forfeited by participants (in shares) | 21,260 | 17,997 | 35,873 | |||||
Shares Unvested (in shares) | 820,539 | 849,198 | 821,695 | 820,539 | ||||
Restricted share units, awarded (in shares) | 177,664 | 231,504 | 126,117 | |||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 177,664 | 231,504 | 126,117 | |||||
2016 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 73,474 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 73,474 | |||||||
Restricted share units, awarded (in shares) | 73,474 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 73,474 | |||||||
2016 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 110,223 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 110,223 | |||||||
Restricted share units, awarded (in shares) | 110,223 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 110,223 | |||||||
2016 Restricted Share Unit [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 26,683 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 26,683 | |||||||
Restricted share units, awarded (in shares) | 26,683 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 26,683 | |||||||
2015 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 58,200 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 58,200 | |||||||
Restricted share units, awarded (in shares) | 58,200 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 58,200 | |||||||
2015 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 101,850 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 101,850 | |||||||
Restricted share units, awarded (in shares) | 101,850 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 101,850 | |||||||
2015 Restricted Share Unit [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 28,378 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 28,378 | |||||||
Restricted share units, awarded (in shares) | 28,378 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 28,378 | |||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 58,404 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 58,404 | |||||||
Restricted share units, awarded (in shares) | 58,404 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 58,404 | |||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 102,209 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 102,209 | |||||||
Restricted share units, awarded (in shares) | 102,209 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 102,209 | |||||||
2014 Restricted Share Unit [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 29,087 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 29,087 | |||||||
Restricted share units, awarded (in shares) | 29,087 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 29,087 | |||||||
Time Based Awards 2014 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[4] | 113,918 | ||||||
Shares forfeited (in shares) | [3],[4],[5] | (11,745) | ||||||
Unvested, end of period (in shares) | [3],[4] | 58,378 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[4] | 5 years | ||||||
Shares awarded (in shares) | [3],[4] | 113,918 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[4] | 31,110 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[4] | 12,685 | ||||||
Shares forfeited by participants (in shares) | [3],[4],[5] | 11,745 | ||||||
Shares Unvested (in shares) | [3],[4] | 58,378 | 58,378 | |||||
Restricted share units, awarded (in shares) | [3],[4] | 113,918 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[4] | 113,918 | ||||||
Time Based Awards 2015 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[4] | 190,528 | ||||||
Shares forfeited (in shares) | [3],[4],[5] | (14,163) | ||||||
Unvested, end of period (in shares) | [3],[4] | 141,195 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[4] | 5 years | ||||||
Shares awarded (in shares) | [3],[4] | 190,528 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[4] | 25,801 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[4] | 9,369 | ||||||
Shares forfeited by participants (in shares) | [3],[4],[5] | 14,163 | ||||||
Shares Unvested (in shares) | [3],[4] | 141,195 | 141,195 | |||||
Restricted share units, awarded (in shares) | [3],[4] | 190,528 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[4] | 190,528 | ||||||
Time Based Awards 2015 [Member] | Leadership Team [Member] | Magna Bank [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[4],[6] | 16,605 | ||||||
Shares forfeited (in shares) | [3],[4],[5],[6] | 0 | ||||||
Unvested, end of period (in shares) | [3],[4],[6] | 13,287 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[4],[6] | 5 years | ||||||
Shares awarded (in shares) | [3],[4],[6] | 16,605 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[4],[6] | 2,530 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[4],[6] | 788 | ||||||
Shares forfeited by participants (in shares) | [3],[4],[5],[6] | 0 | ||||||
Shares Unvested (in shares) | [3],[4],[6] | 13,287 | 13,287 | |||||
Restricted share units, awarded (in shares) | [3],[4],[6] | 16,605 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[4],[6] | 16,605 | ||||||
Time Based Awards 2016 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[6] | 143,273 | ||||||
Shares forfeited (in shares) | [3],[5],[6] | (3,679) | ||||||
Unvested, end of period (in shares) | [3],[6] | 139,204 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[6] | 5 years | ||||||
Shares awarded (in shares) | [3],[6] | 143,273 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[6] | 265 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[6] | 125 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[6] | 3,679 | ||||||
Shares Unvested (in shares) | [3],[6] | 139,204 | 139,204 | |||||
Restricted share units, awarded (in shares) | [3],[6] | 143,273 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[6] | 143,273 | ||||||
Performance Based Awards 2014 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[7] | 186,943 | ||||||
Shares forfeited (in shares) | [3],[5],[7] | (4,386) | ||||||
Unvested, end of period (in shares) | [3],[7] | 109,548 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[7] | 5 years | ||||||
Shares awarded (in shares) | [3],[7] | 186,943 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[7] | 63,634 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[7] | 9,375 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[7] | 4,386 | ||||||
Shares Unvested (in shares) | [3],[7] | 109,548 | 109,548 | |||||
Restricted share units, awarded (in shares) | [3],[7] | 186,943 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[7] | 186,943 | ||||||
Performance Based Awards 2015 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[7] | 43,711 | ||||||
Shares forfeited (in shares) | [3],[5],[7] | 0 | ||||||
Unvested, end of period (in shares) | [3],[7] | 43,711 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[7] | 5 years | ||||||
Shares awarded (in shares) | [3],[7] | 43,711 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[7] | 0 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[7] | 0 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[7] | 0 | ||||||
Shares Unvested (in shares) | [3],[7] | 43,711 | 43,711 | |||||
Restricted share units, awarded (in shares) | [3],[7] | 43,711 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[7] | 43,711 | ||||||
Performance Based Awards 2015 [Member] | CapitalMark Bank & Trust [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[7],[8] | 11,302 | ||||||
Shares forfeited (in shares) | [3],[5],[7],[8] | 0 | ||||||
Unvested, end of period (in shares) | [3],[7],[8] | 11,302 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[7],[8] | 3 years | ||||||
Shares awarded (in shares) | [3],[7],[8] | 11,302 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[7],[8] | 0 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[7],[8] | 0 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[7],[8] | 0 | ||||||
Shares Unvested (in shares) | [3],[7],[8] | 11,302 | 11,302 | |||||
Restricted share units, awarded (in shares) | [3],[7],[8] | 11,302 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[7],[8] | 11,302 | ||||||
Performance Based Awards 2016 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[8] | 43,694 | ||||||
Shares forfeited (in shares) | [3],[5],[8] | 0 | ||||||
Unvested, end of period (in shares) | [3],[8] | 43,694 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[8] | 3 years | ||||||
Shares awarded (in shares) | [3],[8] | 43,694 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[8] | 0 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[8] | 0 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[8] | 0 | ||||||
Shares Unvested (in shares) | [3],[8] | 43,694 | 43,694 | |||||
Restricted share units, awarded (in shares) | [3],[8] | 43,694 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[8] | 43,694 | ||||||
Performance Based Awards 2016 [Member] | Avenue Financial Holdings, Inc. (Avenue) [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 15,468 | |||||||
Shares forfeited (in shares) | 0 | |||||||
Unvested, end of period (in shares) | 15,468 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | 3 years | |||||||
Shares awarded (in shares) | 15,468 | |||||||
Restrictions lapsed and shares released to participants (in shares) | 0 | |||||||
Shares withheld for taxes by participants (in shares) | 0 | |||||||
Shares forfeited by participants (in shares) | 0 | |||||||
Shares Unvested (in shares) | 15,468 | 15,468 | ||||||
Restricted share units, awarded (in shares) | 15,468 | |||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | 15,468 | |||||||
Outside Director Awards 2014 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[9] | 12,199 | ||||||
Shares forfeited (in shares) | [3],[5],[9] | 0 | ||||||
Unvested, end of period (in shares) | [3],[9] | 0 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[9] | 1 year | ||||||
Shares awarded (in shares) | [3],[9] | 12,199 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[9] | 10,537 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[9] | 1,662 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[9] | 0 | ||||||
Shares Unvested (in shares) | [3],[9] | 0 | 0 | |||||
Restricted share units, awarded (in shares) | [3],[9] | 12,199 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[9] | 12,199 | ||||||
Outside Director Awards 2015 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[9] | 13,069 | ||||||
Shares forfeited (in shares) | [3],[5],[9] | 0 | ||||||
Unvested, end of period (in shares) | [3],[9] | 0 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[9] | 1 year | ||||||
Shares awarded (in shares) | [3],[9] | 13,069 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[9] | 11,298 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[9] | 1,771 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[9] | 0 | ||||||
Shares Unvested (in shares) | [3],[9] | 0 | 0 | |||||
Restricted share units, awarded (in shares) | [3],[9] | 13,069 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[9] | 13,069 | ||||||
Outside Director Awards 2016 [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [3],[9] | 18,923 | ||||||
Shares forfeited (in shares) | [3],[5],[9] | 0 | ||||||
Unvested, end of period (in shares) | [3],[9] | 17,737 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Vesting Period in years | [3],[9] | 1 year | ||||||
Shares awarded (in shares) | [3],[9] | 18,923 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [3],[9] | 889 | ||||||
Shares withheld for taxes by participants (in shares) | [3],[9] | 297 | ||||||
Shares forfeited by participants (in shares) | [3],[5],[9] | 0 | ||||||
Shares Unvested (in shares) | [3],[9] | 17,737 | 17,737 | |||||
Restricted share units, awarded (in shares) | [3],[9] | 18,923 | ||||||
Restricted Stock Units [Abstract] | ||||||||
Restricted share units, awarded (in shares) | [3],[9] | 18,923 | ||||||
Tranche 2014 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 5 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 5 years | |||||||
Shares settled into RSAs as of period end (in shares) | 21,856 | |||||||
Tranche 2014 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 4 years | |||||||
Shares settled into RSAs as of period end (in shares) | 21,856 | |||||||
Tranche 2015 [Member] | 2015 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Holding period per tranche | 3 years | |||||||
Shares settled into RSAs as of period end (in shares) | 21,847 | |||||||
Tranche 2015 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 4 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 4 years | |||||||
Tranche 2015 (1) [Member] | 2015 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares settled into RSAs as of period end (in shares) | 21,847 | |||||||
Tranche 2015 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 3 years | |||||||
Tranche 2016 [Member] | 2016 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Holding period per tranche | 3 years | |||||||
Tranche 2016 [Member] | 2015 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Holding period per tranche | 2 years | |||||||
Tranche 2016 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 3 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 3 years | |||||||
Tranche 2016 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Tranche 2017 [Member] | 2016 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Holding period per tranche | 2 years | |||||||
Tranche 2017 [Member] | 2015 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Holding period per tranche | 1 year | |||||||
Tranche 2018 [Member] | 2016 Restricted Share Unit [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Vesting period | 2 years | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche | 2 years | |||||||
Holding period per tranche | 1 year | |||||||
2014 Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuances (in shares) | 995,000 | |||||||
CapitalMark Option Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuances (in shares) | 858,000 | |||||||
[1] | The 1,586 stock appreciation rights exercised during 2014 settled in 609 shares of Pinnacle Financial common stock. The 1,276 stock appreciation rights exercised during 2015 settled in 559 shares of Pinnacle Financial common stock. The 2,435 stock appreciation rights exercised during 2016 settled in 1,137 shares of Pinnacle Financial Common Stock. | |||||||
[2] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial common stock of $69.30 per common share at December 31, 2016 for the 550,490 options and stock appreciation rights that were in-the-money at December 31, 2016. | |||||||
[3] | Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When the restricted shares are awarded, a participant receives voting rights and forfeitable dividend rights with respect to the shares, but is not able to transfer the shares until the restrictions have lapsed. Once the restrictions lapse, the participant is taxed on the value of the award and may elect to sell some shares (or have Pinnacle Financial withhold 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 Pinnacle Financial at the time of termination. For performance-based awards, dividends are placed into escrow until the forfeiture restrictions on such shares lapse. | |||||||
[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 for when employment or board membership terminated during the year-to-date period ended December 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] | These shares were awarded to individuals joining the leadership team upon Pinnacle Financial's acquisition of Magna. The forfeiture restrictions on these restricted share awards lapse in equal installments on the anniversary date of the grant. | |||||||
[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 earnings and soundness targets over each year of the subsequent vesting period. Half of the awards include a four year vesting period while the remainder include a three year vesting period. | |||||||
[8] | These share were awarded to individuals joining the leadership team upon Pinnacle Financial's acquisition of CapitalMark. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings targets over each year of the vesting period and should the recipient thereafter remain employed by Pinnacle Financial for a subsequent vesting period. | |||||||
[9] | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on the one year anniversary date of the award based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 325,000 | $ 325,000 | |
Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | 1,333,144 | 792,224 | |
Estimated fair value of interest rate swap | (134) | (199) | |
Pay Fixed / Receive Variable Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | 666,572 | 396,112 | |
Estimated fair value of interest rate swap | 16,004 | 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 | 666,572 | 396,112 | |
Estimated fair value of interest rate swap | $ (16,138) | (16,329) | |
Interest Rate Swap April 2016 April 2020 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.265% | ||
Term, lower maturity range date | [1] | Apr. 1, 2016 | Apr. 1, 2016 |
Term, higher maturity range date | [1] | Apr. 1, 2020 | Apr. 1, 2020 |
Interest rate derivative liabilities, at fair value | $ (727) | $ (784) | |
Unrealized gain in accumulated other comprehensive income | (442) | (476) | |
Interest Rate Swap April 2016 April 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.265% | ||
Interest Rate Swap April 2016 April 2022 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 34,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.646% | ||
Term, lower maturity range date | [1] | Apr. 1, 2016 | Apr. 1, 2016 |
Term, higher maturity range date | [1] | Apr. 1, 2022 | Apr. 1, 2022 |
Interest rate derivative liabilities, at fair value | $ (1,304) | $ (1,478) | |
Unrealized gain in accumulated other comprehensive income | (792) | (898) | |
Interest Rate Swap April 2016 April 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 34,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.646% | ||
Interest Rate Swap October 2016 October 2020 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 34,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.523% | ||
Term, lower maturity range date | [1] | Oct. 1, 2016 | Oct. 1, 2016 |
Term, higher maturity range date | [1] | Oct. 1, 2020 | Oct. 1, 2020 |
Interest rate derivative liabilities, at fair value | $ (1,081) | $ (908) | |
Unrealized gain in accumulated other comprehensive income | (657) | $ (552) | |
Interest Rate Swap October 2016 October 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 34,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.523% | ||
Interest Rate Swap July 2014 July 2021 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Term, lower maturity range date | [1] | Jul. 1, 2014 | Jul. 1, 2014 |
Term, higher maturity range date | [1] | Jul. 1, 2021 | Jul. 1, 2021 |
Interest rate derivative assets, at fair value | $ 395 | $ 663 | |
Unrealized gain in accumulated other comprehensive income | $ 240 | 403 | |
Interest Rate Swap July 2014 July 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 27,500 | ||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 2.09% | 2.09% | |
Interest Rate Swap July 2014 July 2022 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Term, lower maturity range date | [1] | Jul. 1, 2014 | Jul. 1, 2014 |
Term, higher maturity range date | [1] | Jul. 1, 2022 | Jul. 1, 2022 |
Interest rate derivative assets, at fair value | $ 610 | $ 968 | |
Unrealized gain in accumulated other comprehensive income | $ 371 | 588 | |
Interest Rate Swap July 2014 July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 25,000 | ||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 2.27% | 2.27% | |
Interest Rate Swap July 2014 July 2023 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 27,500 | ||
Fixed interest rate | 2.42% | 2.42% | |
Term, lower maturity range date | [1] | Jul. 1, 2014 | Jul. 1, 2014 |
Term, higher maturity range date | [1] | Jul. 1, 2023 | Jul. 1, 2023 |
Interest rate derivative assets, at fair value | $ 874 | $ 1,320 | |
Unrealized gain in accumulated other comprehensive income | $ 531 | $ 802 | |
Interest Rate Swap July 2014 July 2023 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Interest Rate Swap July 2014 July 2024 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 30,000 | ||
Fixed interest rate | 2.50% | 2.50% | |
Term, lower maturity range date | [1] | Jul. 1, 2014 | Jul. 1, 2014 |
Term, higher maturity range date | [1] | Jul. 1, 2024 | Jul. 1, 2024 |
Interest rate derivative assets, at fair value | $ 900 | $ 1,333 | |
Unrealized gain in accumulated other comprehensive income | $ 547 | $ 810 | |
Interest Rate Swap July 2014 July 2024 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Interest Rate Swap October 2017 October 2021 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.992% | ||
Term, lower maturity range date | [1] | Oct. 1, 2017 | Oct. 1, 2017 |
Term, higher maturity range date | [1] | Oct. 1, 2021 | Oct. 1, 2021 |
Interest rate derivative liabilities, at fair value | $ (1,200) | $ (1,112) | |
Unrealized gain in accumulated other comprehensive income | (729) | (676) | |
Interest Rate Swap October 2017 October 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 2.992% | ||
Interest Rate Swap April 2018 July 2022 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 3.118% | ||
Term, lower maturity range date | [1] | Apr. 1, 2018 | Apr. 1, 2018 |
Term, higher maturity range date | [1] | Jul. 1, 2022 | Jul. 1, 2022 |
Interest rate derivative liabilities, at fair value | $ (1,222) | $ (1,170) | |
Unrealized gain in accumulated other comprehensive income | (743) | (711) | |
Interest Rate Swap April 2018 July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 3.118% | ||
Interest Rate Swap July 2018 October 2022 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 3.158% | ||
Term, lower maturity range date | [1] | Jul. 1, 2018 | Jul. 1, 2018 |
Term, higher maturity range date | [1] | Oct. 1, 2022 | Oct. 1, 2022 |
Interest rate derivative liabilities, at fair value | $ (1,198) | $ (1,158) | |
Unrealized gain in accumulated other comprehensive income | (728) | $ (704) | |
Interest Rate Swap July 2018 October 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 33,000 | ||
Variable interest rate | 3 month LIBOR | ||
Fixed interest rate | 3.158% | ||
Interest Rate Swap August 2015 - August 2018 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Term, lower maturity range date | [1] | Aug. 1, 2015 | Aug. 1, 2015 |
Term, higher maturity range date | [1] | Aug. 1, 2018 | Aug. 1, 2018 |
Interest rate derivative assets, at fair value | $ 0 | ||
Interest rate derivative liabilities, at fair value | $ (46) | ||
Unrealized gain in accumulated other comprehensive income | $ 0 | (28) | |
Interest Rate Swap August 2015 - August 2018 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 0 | ||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 1.048% | 1.048% | |
Interest Rate Swap August 2015 - August 2019 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Term, lower maturity range date | [1] | Aug. 2, 2015 | Aug. 2, 2015 |
Term, higher maturity range date | [1] | Aug. 1, 2019 | Aug. 1, 2019 |
Interest rate derivative assets, at fair value | $ 0 | ||
Interest rate derivative liabilities, at fair value | $ (34) | ||
Unrealized gain in accumulated other comprehensive income | $ 0 | (21) | |
Interest Rate Swap August 2015 - August 2019 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 0 | ||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 1.281% | 1.281% | |
Interest Rate Swap August 2015 - August 2020 [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Forecasted notional amount | $ 15,000 | ||
Term, lower maturity range date | [1] | Aug. 3, 2015 | |
Term, higher maturity range date | [1] | Aug. 1, 2020 | |
Interest rate derivative liabilities, at fair value | $ (75) | $ (14) | |
Unrealized gain in accumulated other comprehensive income | $ (46) | $ (9) | |
Interest Rate Swap August 2015 - August 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward cash flow hedge relationship [Abstract] | |||
Variable interest rate | 1 month LIBOR | 1 month LIBOR | |
Fixed interest rate | 1.47% | 1.47% | |
[1] | No cash will be exchanged prior to the term. |
Employment Contracts (Details)
Employment Contracts (Details) | 12 Months Ended |
Dec. 31, 2016AgreementExecutive | |
Employment Contracts [Abstract] | |
Number of continuously automatic renewing employment agreements amended | Agreement | 4 |
Term of automatic renewing employment agreements | 3 years |
Number of senior executives that enter into automatic renewing employment agreements | 4 |
Number of senior executive to whom entity is obligated to pay certain amount | 4 |
Related Party Transactions (Det
Related Party Transactions (Details) | 12 Months Ended | ||
Dec. 31, 2016USD ($)Director | Dec. 31, 2015USD ($) | Dec. 31, 2014USD ($) | |
Related Party Transaction [Line Items] | |||
Number of directors regarding supplemental retirement agreement obligations | Director | 2 | ||
Director [Member] | |||
Related Party Transaction [Line Items] | |||
Public relations expenses | $ | $ 20,000 | $ 0 | $ 36,000 |
Fair Value of Financial Instr76
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2016 | Dec. 31, 2015 | ||
Investment securities available for sale [Abstract] | |||
Alternative investments | $ 8,300 | $ 7,600 | |
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Valuation allowance of impaired loans | 1,100 | 3,700 | |
Other Liabilities [Member] | |||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | |||
Fair value, beginning of period | 0 | 0 | |
Total realized gains included in income | 0 | 0 | |
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period end | 0 | 0 | |
Purchases | 0 | 0 | |
Issuances | 0 | 0 | |
Settlements | 0 | 0 | |
Transfers out of Level 3 | 0 | 0 | |
Fair value, September 30 | 0 | 0 | |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period end | 0 | 0 | |
Recurring [Member] | |||
Investment securities available for sale [Abstract] | |||
U.S. treasury securities | 250 | ||
U.S. government agency securities | 21,769 | 128,193 | |
Mortgage-backed securities | 976,626 | 582,916 | |
State and municipal securities | 212,720 | 165,042 | |
Agency- backed securities | 78,580 | 48,801 | |
Corporate notes and other | 8,601 | 10,113 | |
Total investment securities available-for-sale | 1,298,546 | 935,065 | |
Alternative investments | 10,478 | 9,764 | |
Other assets | 13,340 | 15,147 | |
Total assets at fair value | 1,322,364 | 959,976 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 15,758 | 16,568 | |
Total liabilities at fair value | 15,758 | 16,568 | |
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 | |
Alternative 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 | 250 | ||
U.S. government agency securities | 21,769 | 128,193 | |
Mortgage-backed securities | 976,626 | 582,916 | |
State and municipal securities | 212,720 | 165,042 | |
Agency- backed securities | 78,580 | 48,801 | |
Corporate notes and other | 8,601 | 10,113 | |
Total investment securities available-for-sale | 1,298,546 | 935,065 | |
Alternative investments | 0 | 0 | |
Other assets | 13,340 | 15,147 | |
Total assets at fair value | 1,311,886 | 950,212 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 15,758 | 16,568 | |
Total liabilities at fair value | 15,758 | 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 | |
Alternative investments | 10,478 | 9,764 | |
Other assets | 0 | 0 | |
Total assets at fair value | 10,478 | 9,764 | |
Liabilities at fair value [Abstract] | |||
Other liabilities | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Nonrecurring [Member] | |||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Other real estate owned | 6,090 | 5,083 | |
Collateral dependent nonaccrual loans, net | [1] | 26,506 | 25,690 |
Total | 32,596 | 30,773 | |
Total losses on other real estate owned | (135) | (41) | |
Total losses on collateral dependent nonaccrual loans, net | [1] | (7,173) | (2,637) |
Total losses | (7,308) | (2,678) | |
Nonrecurring [Member] | 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 | |
Collateral dependent nonaccrual loans, net | [1] | 0 | 0 |
Total | 0 | 0 | |
Nonrecurring [Member] | 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 | |
Collateral dependent nonaccrual loans, net | [1] | 0 | 0 |
Total | 0 | 0 | |
Nonrecurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | |||
Assets and liabilities measured at fair value on a nonrecurring basis [Abstract] | |||
Other real estate owned | 6,090 | 5,083 | |
Collateral dependent nonaccrual loans, net | [1] | 26,506 | 25,690 |
Total | 32,596 | 30,773 | |
Other Assets [Member] | |||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | |||
Fair value, beginning of period | 9,764 | 8,004 | |
Total realized gains included in income | 131 | 149 | |
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period end | 0 | 0 | |
Purchases | 1,639 | 2,254 | |
Issuances | 0 | 0 | |
Settlements | (1,057) | (643) | |
Transfers out of Level 3 | 0 | 0 | |
Fair value, September 30 | 10,477 | 9,764 | |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period end | $ 131 | $ 149 | |
[1] | Amount is net of a valuation allowance of $1.1 million and $3.7 million at December 31, 2016 and 2015, respectively, as required by ASC 310-10, "Receivables." |
Fair Value of Financial Instr77
Fair Value of Financial Instruments, Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) | Dec. 31, 2016 | Dec. 31, 2015 | |
Carrying Amount / Notional Amount [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | $ 25,251,000 | $ 31,377,000 | |
Loans, net | 8,390,944,000 | 6,477,803,000 | |
Mortgage loans held-for-sale | 47,710,000 | 47,930,000 | |
Loans held-for-sale | 22,588,000 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 8,845,014,000 | 7,050,498,000 | |
Federal Home Loan Bank advances | 406,304,000 | 300,305,000 | |
Subordinated debt and other borrowings | 350,768,000 | 142,476,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1],[2] | 3,374,269,000 | 2,218,784,000 |
Standby letters of credit | [1] | 131,418,000 | 93,534,000 |
Securities held-to-maturity | 25,233,254 | 31,585,303 | |
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 | 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],[2] | 0 | 0 |
Standby letters of credit | [1] | 0 | 0 |
Models with Significant Observable Market Parameters (Level 2) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 25,233,000 | 31,586,000 | |
Loans, net | 0 | 0 | |
Mortgage loans held-for-sale | 47,892,000 | 48,365,000 | |
Loans held-for-sale | 22,674,000 | ||
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],[2] | 0 | 0 |
Standby letters of credit | [1] | 0 | 0 |
Models with Significant Unobservable Market Parameters (Level 3) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 0 | 0 | |
Loans, net | 8,178,982,000 | 6,379,153,000 | |
Mortgage loans held-for-sale | 0 | 0 | |
Loans held-for-sale | 0 | ||
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 8,228,721,000 | 6,562,509,000 | |
Federal Home Loan Bank advances | 406,491,000 | 299,214,000 | |
Subordinated debt and other borrowings | 328,049,000 | 131,494,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1],[2] | 383,000 | 1,017,000 |
Standby letters of credit | [1] | 740,000 | 354,000 |
Estimate of Fair Value Measurement [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | [3] | 25,233,000 | 31,586,000 |
Loans, net | [3] | 8,178,982,000 | 6,379,153,000 |
Mortgage loans held-for-sale | [3] | 47,892,000 | 48,365,000 |
Loans held-for-sale | [3] | 22,674,000 | |
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | [3] | 8,228,721,000 | 6,562,509,000 |
Federal Home Loan Bank advances | [3] | 406,491,000 | 299,214,000 |
Subordinated debt and other borrowings | [3] | 328,049,000 | 131,494,000 |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1],[2],[3] | 383,000 | 1,017,000 |
Standby letters of credit | [1],[3] | $ 740,000 | $ 354,000 |
[1] | At December 31, 2016 and 2015, the fair value of Pinnacle Financial's standby letters of credit was $740,000 and $354,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, 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. | ||
[2] | At the end of each period, 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 December 31, 2016 and 2015, respectively, Pinnacle Financial included in other liabilities $383,000 and $1.0 million representing the inherent risks associated with these off-balance sheet commitments. | ||
[3] | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |
Other borrowings (Details)
Other borrowings (Details) - USD ($) $ in Millions | Nov. 16, 2016 | Mar. 29, 2016 | Mar. 10, 2016 | Jul. 30, 2015 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 29, 2014 |
Accounting Standards Update 2015-03 [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Subordinated debt | $ 268.3 | $ 59.1 | |||||
Avenue Subordinated Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 20 | ||||||
Maturity date | Dec. 29, 2024 | ||||||
Interest rate on note | 6.75% | ||||||
Discount on notes | $ 2.7 | ||||||
Avenue Subordinated Notes [Member] | Three-Months LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 4.95% | ||||||
Private Placement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 120 | ||||||
Maturity date | Nov. 16, 2026 | ||||||
Interest rate on note | 5.25% | ||||||
Net proceed from issuance note | 118.3 | ||||||
Net proceeds to retire of the outstanding debt | 57 | ||||||
Private Placement [Member] | Three-Months LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.884% | ||||||
The Notes [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Face amount | $ 70 | $ 60 | |||||
Purchase price percentage | 99.023% | ||||||
Interest rate effective percentage | 5.125% | ||||||
Maturity date | Jul. 30, 2025 | ||||||
Percentage of redemption price | 100.00% | ||||||
Interest rate on note | 4.875% | ||||||
Net proceed from issuance note | $ 68.4 | $ 59 | |||||
The Notes [Member] | Three-Months LIBOR [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Basis spread on variable rate | 3.128% | ||||||
Pinnacle Bank [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Net proceed from issuance note | $ 50 | ||||||
Pinnacle Bank [Member] | Revolving Credit Facility [Member] | Loan Agreement [Member] | |||||||
Debt Instrument [Line Items] | |||||||
Maximum borrowing capacity | $ 75 | ||||||
Debt instrument covenant percentage | 0.00% | ||||||
Fee percentage | 0.35% | ||||||
Interest rate effective percentage | 2.25% | ||||||
Maturity date | Mar. 28, 2017 | ||||||
Outstanding borrowings | $ 0 |
Variable Interest Entities (Det
Variable Interest Entities (Details) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2016 | Dec. 31, 2015 | |
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ||
Proceeds from issuance of subordinated debt | $ 82,500 | |
Maximum Loss Exposure | ||
Liability Recognized | ||
Low Income Housing Partnerships [Member] | Other Assets [Member] | ||
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ||
Maximum Loss Exposure | 24,150 | 13,889 |
Liability Recognized | 0 | 0 |
Trust Preferred Issuances [Member] | Subordinated Debt [Member] | ||
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ||
Maximum Loss Exposure | ||
Liability Recognized | 82,476 | 82,476 |
Commercial Troubled Debt Restructurings [Member] | Loans [Member] | ||
Classification of carrying amount of assets and liabilities of VIE [Abstract] | ||
Maximum Loss Exposure | 11,572 | 4,368 |
Liability Recognized | $ 0 | $ 0 |
Regulatory Matters (Details)
Regulatory Matters (Details) - USD ($) | 12 Months Ended | |||
Dec. 31, 2016 | Dec. 31, 2015 | |||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Preceding period of retained earnings used in calculation of dividend payable | 2 years | |||
Retained earnings | $ 381,072,505 | $ 278,573,408 | ||
Pinnacle Financial [Member] | ||||
Compliance with regulatory capital requirements [Abstract] | ||||
Common Equity Tier I capital to risk weighted assets: | [1] | 4.50% | 4.50% | |
Actual Amount [Abstract] | ||||
Total capital to risk weighted assets: | $ 1,211,105,000 | $ 883,085,000 | ||
Tier I capital to risk weighted assets: | 882,654,000 | 756,316,000 | [1] | |
Common Equity Tier I Capital to risk weighted assets | [1] | 802,532,000 | 676,316,000 | |
Tier I capital to average assets (*): | [1] | $ 882,654,000 | $ 756,316,000 | |
Actual Ratio [Abstract] | ||||
Total capital to risk weighted assets: | 11.90% | 11.20% | ||
Tier I capital to risk weighted assets: | 8.60% | 9.60% | [1] | |
Common Equity Tier I Capital to Risk Weighted Assets | [1] | 7.90% | 8.60% | |
Tier I capital to average assets (*): | [1] | 8.60% | 9.40% | |
Regulatory Minimum Capital Requirement Amount [Abstract] | ||||
Total capital to risk weighted assets: | $ 816,857,000 | $ 628,500,000 | ||
Tier I capital to risk weighted assets: | 612,643,000 | 471,375,000 | [1] | |
Common Equity Tier I Risk Based Capital to risk weighted assets | [1] | 459,482,000 | 353,531,000 | |
Tier I capital to average assets (*): | [1] | $ 412,902,000 | $ 322,920,000 | |
Regulatory Minimum Capital Requirement Ratio [Abstract] | ||||
Total capital to risk weighted assets: | 8.00% | 8.00% | ||
Tier I capital to risk weighted assets: | 6.00% | 6.00% | [1] | |
Common Equity Tier I Risk Based Capital to risk weighted assets: | [1] | 4.50% | 4.50% | |
Tier I capital to average assets (*): | [1] | 4.00% | 4.00% | |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | ||||
Total capital to risk weighted assets: | $ 1,021,071,000 | $ 785,624,000 | ||
Tier I capital to risk weighted assets: | 816,857,000 | 628,500,000 | [1] | |
Common Equity Tier I capital to risk weighted assets | [1] | $ 663,696,000 | $ 510,656,000 | |
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | ||||
Total capital to risk weighted assets: | 10.00% | 10.00% | ||
Tier I capital to risk weighted assets: | 8.00% | 8.00% | [1] | |
Common Equity Tier I capital to risk weighted assets: | [1] | 6.50% | 6.50% | |
Pinnacle Bank [Member] | ||||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||||
Retained earnings | $ 239,500,000 | |||
Compliance with regulatory capital requirements [Abstract] | ||||
Common Equity Tier I capital to risk weighted assets: | [1] | 4.50% | 4.50% | |
Actual Amount [Abstract] | ||||
Total capital to risk weighted assets: | $ 1,136,782,000 | $ 830,863,000 | ||
Tier I capital to risk weighted assets: | 949,193,000 | 704,095,000 | [1] | |
Common Equity Tier I Capital to risk weighted assets | [1] | 949,070,000 | 704,095,000 | |
Tier I capital to average assets (*): | [1] | $ 949,193,000 | $ 704,095,000 | |
Actual Ratio [Abstract] | ||||
Total capital to risk weighted assets: | 11.20% | 10.60% | ||
Tier I capital to risk weighted assets: | 9.30% | 9.00% | [1] | |
Common Equity Tier I Capital to Risk Weighted Assets | [1] | 9.30% | 9.00% | |
Tier I capital to average assets (*): | [1] | 9.20% | 8.80% | |
Regulatory Minimum Capital Requirement Amount [Abstract] | ||||
Total capital to risk weighted assets: | $ 814,254,000 | $ 626,486,000 | ||
Tier I capital to risk weighted assets: | 610,690,000 | 469,864,000 | [1] | |
Common Equity Tier I Risk Based Capital to risk weighted assets | [1] | 458,018,000 | 352,398,000 | |
Tier I capital to average assets (*): | [1] | $ 412,124,000 | $ 321,991,000 | |
Regulatory Minimum Capital Requirement Ratio [Abstract] | ||||
Total capital to risk weighted assets: | 8.00% | 8.00% | ||
Tier I capital to risk weighted assets: | 6.00% | 6.00% | [1] | |
Common Equity Tier I Risk Based Capital to risk weighted assets: | [1] | 4.50% | 4.50% | |
Tier I capital to average assets (*): | [1] | 4.00% | 4.00% | |
Regulatory Minimum To Be Well Capitalized Amount [Abstract] | ||||
Total capital to risk weighted assets: | $ 1,017,817,000 | $ 783,107,000 | ||
Tier I capital to risk weighted assets: | 814,254,000 | 626,486,000 | [1] | |
Common Equity Tier I capital to risk weighted assets | [1] | 661,581,000 | 509,020,000 | |
Tier I capital to average assets (*): | [1] | $ 515,155,000 | $ 402,489,000 | |
Regulatory Minimum To Be Well Capitalized Ratio [Abstract] | ||||
Total capital to risk weighted assets: | 10.00% | 10.00% | ||
Tier I capital to risk weighted assets: | 8.00% | 8.00% | [1] | |
Common Equity Tier I capital to risk weighted assets: | [1] | 6.50% | 6.50% | |
Tier I capital to average assets (*): | [1] | 5.00% | 5.00% | |
[1] | Average assets for the above calculations were based on the most recent quarter. |
Parent Company Only Financial81
Parent Company Only Financial Information (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | Dec. 31, 2013 | |
Investment in unconsolidated subsidiaries: | |||||||||||||||||||
Other assets | $ 330,651,002 | $ 265,183,799 | |||||||||||||||||
Total assets | 11,194,622,599 | 8,714,543,684 | |||||||||||||||||
Liabilities and stockholders' equity: | |||||||||||||||||||
Subordinated debt and other borrowings | 350,768,050 | 141,605,504 | |||||||||||||||||
Other liabilities | 90,267,267 | 63,930,339 | |||||||||||||||||
Stockholders' equity | 1,496,696,112 | 1,155,611,300 | $ 802,693,381 | $ 723,707,661 | |||||||||||||||
Total liabilities and stockholders' equity | 11,194,622,599 | 8,714,543,684 | |||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | |||||||||||||||||||
Income from unconsolidated subsidiaries | $ 31,402,923 | $ 20,591,484 | $ 0 | ||||||||||||||||
Other revenues | 36,554,938 | 24,715,442 | 16,639,323 | ||||||||||||||||
Expenses: | |||||||||||||||||||
Interest expense - subordinated debentures | 38,614,647 | 18,536,965 | 13,185,413 | ||||||||||||||||
Income tax benefit | 64,159,167 | 47,588,528 | 35,181,517 | ||||||||||||||||
Net income | $ 36,097,000 | $ 32,377,000 | $ 30,787,000 | $ 27,964,000 | $ 26,854,000 | $ 24,149,000 | $ 22,665,000 | $ 21,843,000 | $ 18,737,000 | $ 18,197,000 | $ 17,170,000 | $ 16,367,000 | 127,224,695 | 95,509,402 | 70,471,167 | ||||
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | |||||||||||||||||||
Net income | 36,097,000 | $ 32,377,000 | $ 30,787,000 | 27,964,000 | 26,854,000 | $ 24,149,000 | $ 22,665,000 | 21,843,000 | 18,737,000 | $ 18,197,000 | $ 17,170,000 | 16,367,000 | 127,224,695 | 95,509,402 | 70,471,167 | ||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Amortization and accretion | 16,995,490 | 10,268,576 | 9,282,197 | ||||||||||||||||
Stock-based compensation expense | 10,970,849 | 7,341,603 | 5,308,167 | ||||||||||||||||
Deferred tax (expense) benefit | 14,390,035 | 5,819,463 | 394,452 | ||||||||||||||||
Income from equity method investment | 31,402,923 | 20,591,484 | 0 | ||||||||||||||||
Excess tax benefit from stock compensation | (4,604,007) | (4,116,120) | (1,698,521) | ||||||||||||||||
(Increase) decrease in other assets | (17,411,223) | (2,359,490) | 4,014,267 | ||||||||||||||||
Decrease in other liabilities | 2,829,656 | (7,487,499) | 417,873 | ||||||||||||||||
Net cash provided by operating activities | 126,638,676 | 84,603,830 | 95,058,155 | ||||||||||||||||
Investing activities: | |||||||||||||||||||
Investment in unconsolidated banking subsidiaries | 0 | 0 | 0 | ||||||||||||||||
Increase in equity method investment | (74,100,000) | (75,440,530) | 0 | ||||||||||||||||
Dividends received from equity method investment | 28,982,009 | 7,152,000 | 0 | ||||||||||||||||
Increase in other investments | (27,508,882) | (1,712,685) | (4,208,447) | ||||||||||||||||
Net cash used in investing activities | (1,253,404,506) | (742,598,028) | (487,879,654) | ||||||||||||||||
Financing activities: | |||||||||||||||||||
Exercise of common stock options | 11,589,495 | 3,602,805 | 6,421,689 | ||||||||||||||||
Common dividends paid | (24,725,598) | (18,307,075) | (11,398,285) | ||||||||||||||||
Excess tax benefit from stock compensation arrangements | 4,604,007 | 4,116,120 | 1,698,521 | ||||||||||||||||
Net cash provided by financing activities | 989,459,917 | 791,038,021 | 371,790,272 | ||||||||||||||||
Net decrease in cash | (137,305,913) | 133,043,823 | (21,031,227) | ||||||||||||||||
Parent Company [Member] | |||||||||||||||||||
Assets [Abstract] | |||||||||||||||||||
Cash and cash equivalents | 36,984,000 | 21,740,000 | 21,740,000 | 36,496,000 | 36,496,000 | 21,096,000 | 21,740,000 | 21,740,000 | 21,096,000 | 36,984,000 | 21,740,000 | $ 36,496,000 | $ 21,096,000 | ||||||
Investments in consolidated subsidiaries | 1,579,728,000 | 1,194,713,000 | |||||||||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||||||||
Other investments | 61,374,000 | 5,453,000 | |||||||||||||||||
Current income tax receivable | 6,832,000 | 10,132,000 | |||||||||||||||||
Other assets | 29,181,000 | 4,260,000 | |||||||||||||||||
Total assets | 1,722,059,000 | 1,238,774,000 | |||||||||||||||||
Liabilities and stockholders' equity: | |||||||||||||||||||
Income taxes payable to subsidiaries | 0 | 12,000 | |||||||||||||||||
Subordinated debt and other borrowings | 223,337,000 | 82,476,000 | |||||||||||||||||
Other liabilities | 2,026,000 | 675,000 | |||||||||||||||||
Stockholders' equity | 1,496,696,000 | 1,155,611,000 | |||||||||||||||||
Total liabilities and stockholders' equity | 1,722,059,000 | 1,238,774,000 | |||||||||||||||||
CONDENSED STATEMENTS OF OPERATIONS [Abstract] | |||||||||||||||||||
Income from bank subsidiaries | 27,663,000 | 19,038,000 | 21,185,000 | ||||||||||||||||
Income from nonbank subsidiaries | 5,198,000 | 210,000 | 193,000 | ||||||||||||||||
Income from unconsolidated subsidiaries | 7,663,000 | 0 | 0 | ||||||||||||||||
Other revenues | 21,000 | (132,000) | 714,000 | ||||||||||||||||
Expenses: | |||||||||||||||||||
Interest expense - subordinated debentures | 1,997,000 | 220,000 | 468,000 | ||||||||||||||||
Stock compensation expense | 10,971,000 | 7,342,000 | 5,308,000 | ||||||||||||||||
Other expense | 3,653,000 | 2,889,000 | 2,789,000 | ||||||||||||||||
Loss before income taxes and equity in undistributed income (loss) of subsidiaries | 23,924,000 | 8,665,000 | 13,527,000 | ||||||||||||||||
Income tax benefit | (3,428,000) | (4,119,000) | (3,066,000) | ||||||||||||||||
(Loss) income before equity in undistributed income of subsidiaries and accretion on preferred stock discount | 27,352,000 | 12,784,000 | 16,593,000 | ||||||||||||||||
Equity in undistributed income of bank subsidiaries | 104,318,000 | 81,536,000 | 52,414,000 | ||||||||||||||||
Equity in undistributed income (loss) of nonbank subsidiaries | (4,445,000) | 1,189,000 | 1,464,000 | ||||||||||||||||
Net income | 127,225,000 | 95,509,000 | 70,471,000 | ||||||||||||||||
CONDENSED STATEMENTS OF CASH FLOWS [Abstract] | |||||||||||||||||||
Net income | 127,225,000 | 95,509,000 | 70,471,000 | ||||||||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||||
Amortization and accretion | 543,000 | 0 | 0 | ||||||||||||||||
Stock-based compensation expense | 10,971,000 | 7,342,000 | 5,308,000 | ||||||||||||||||
Increase (decrease) in income tax payable, net | (12,000) | (10,870,000) | 0 | ||||||||||||||||
Deferred tax (expense) benefit | 1,025,000 | (394,000) | 27,000 | ||||||||||||||||
Income from equity method investment | (8,350,000) | 0 | 0 | ||||||||||||||||
Excess tax benefit from stock compensation | (4,604,000) | (4,116,000) | (1,699,000) | ||||||||||||||||
Loss (gain) on other investments | 497,000 | 132,000 | (710,000) | ||||||||||||||||
(Increase) decrease in other assets | 2,636,000 | 1,194,000 | 1,852,000 | ||||||||||||||||
Decrease in other liabilities | 3,157,000 | 3,771,000 | 203,000 | ||||||||||||||||
Equity in undistributed (income) loss of bank subsidiaries | (104,318,000) | (81,530,000) | (52,414,000) | ||||||||||||||||
Equity in undistributed (income) loss of nonbank subsidiaries | 4,445,000 | (1,189,000) | (1,464,000) | ||||||||||||||||
Net cash provided by operating activities | 33,215,000 | 9,849,000 | 21,574,000 | ||||||||||||||||
Investing activities: | |||||||||||||||||||
Investments in consolidated subsidiaries | (118,878,000) | 0 | 0 | ||||||||||||||||
Increase in equity method investment | (11,400,000) | 0 | 0 | ||||||||||||||||
Dividends received from equity method investment | 3,255,000 | 0 | 0 | ||||||||||||||||
Increase in other investments | (710,000) | (335,000) | (397,000) | ||||||||||||||||
Net cash used in investing activities | (127,733,000) | (335,000) | (397,000) | ||||||||||||||||
Financing activities: | |||||||||||||||||||
Net increase in borrowings from line of credit | 118,294,000 | (13,682,000) | (2,500,000) | ||||||||||||||||
Exercise of common stock options | 11,589,000 | 3,603,000 | 6,422,000 | ||||||||||||||||
Common dividends paid | (24,725,000) | (18,307,000) | (11,398,000) | ||||||||||||||||
Excess tax benefit from stock compensation arrangements | 4,604,000 | 4,116,000 | 1,699,000 | ||||||||||||||||
Net cash provided by financing activities | 109,762,000 | (24,270,000) | (5,777,000) | ||||||||||||||||
Net decrease in cash | 15,244,000 | (14,756,000) | 15,400,000 | ||||||||||||||||
Cash and cash equivalents, beginning of year | $ 21,740,000 | $ 36,496,000 | $ 21,096,000 | 21,740,000 | 36,496,000 | 21,096,000 | |||||||||||||
Cash and cash equivalents, end of year | $ 36,984,000 | $ 21,740,000 | $ 36,496,000 | 36,984,000 | 21,740,000 | 36,496,000 | |||||||||||||
Dividend received from subsidiary | $ 27,700,000 | $ 0 | $ 0 | ||||||||||||||||
Parent Company [Member] | Pnfp Statutory Trust I [Member] | |||||||||||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||||||||
Unconsolidated subsidiaries | 310,000 | 310,000 | |||||||||||||||||
Parent Company [Member] | Pnfp Statutory Trust II [Member] | |||||||||||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||||||||
Unconsolidated subsidiaries | 619,000 | 619,000 | |||||||||||||||||
Parent Company [Member] | Pnfp Statutory Trust III [Member] | |||||||||||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||||||||
Unconsolidated subsidiaries | 619,000 | 619,000 | |||||||||||||||||
Parent Company [Member] | Pnfp Statutory Trust VI [Member] | |||||||||||||||||||
Investment in unconsolidated subsidiaries: | |||||||||||||||||||
Unconsolidated subsidiaries | $ 928,000 | $ 928,000 |
Quarterly Financial Results (82
Quarterly Financial Results (unaudited) (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |||||||||||||
Dec. 31, 2016 | Sep. 30, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 | Sep. 30, 2015 | Jun. 30, 2015 | Mar. 31, 2015 | Dec. 31, 2014 | Sep. 30, 2014 | Jun. 30, 2014 | Mar. 31, 2014 | Dec. 31, 2016 | Dec. 31, 2015 | Dec. 31, 2014 | |
Quarterly Financial Results (unaudited) [Abstract] | |||||||||||||||
Interest income | $ 101,493,000 | $ 97,380,000 | $ 83,762,000 | $ 80,974,000 | $ 77,797,000 | $ 67,192,000 | $ 55,503,000 | $ 54,679,000 | $ 53,533,000 | $ 52,782,000 | $ 50,564,000 | $ 49,291,000 | $ 363,608,928 | $ 255,169,880 | $ 206,169,962 |
Net interest income | 89,413,000 | 86,635,000 | 75,044,000 | 73,902,000 | 71,475,000 | 62,059,000 | 51,831,000 | 51,269,000 | 50,313,000 | 49,537,000 | 47,226,000 | 45,908,000 | 306,666,223 | 227,444,418 | 189,349,889 |
Provision for loan losses | 3,046,000 | 6,108,000 | 5,280,000 | 3,894,000 | 5,459,000 | 2,228,000 | 1,186,000 | 315,000 | 2,041,000 | 851,000 | 254,000 | 488,000 | 18,328,058 | 9,188,497 | 3,634,660 |
Net income before taxes | 54,345,000 | 48,693,000 | 46,546,000 | 41,800,000 | 40,432,000 | 36,134,000 | 33,917,000 | 32,617,000 | 28,264,000 | 27,215,000 | 25,668,000 | 24,506,000 | 191,383,862 | 143,097,930 | 105,652,684 |
Net income | 36,097,000 | 32,377,000 | 30,787,000 | 27,964,000 | 26,854,000 | 24,149,000 | 22,665,000 | 21,843,000 | 18,737,000 | 18,197,000 | 17,170,000 | 16,367,000 | 127,224,695 | 95,509,402 | 70,471,167 |
Net income available to common stockholders | $ 36,097,000 | $ 32,377,000 | $ 30,787,000 | $ 27,964,000 | $ 26,854,000 | $ 24,149,000 | $ 22,665,000 | $ 21,843,000 | $ 18,737,000 | $ 18,197,000 | $ 17,170,000 | $ 16,367,000 | $ 127,224,695 | $ 95,509,402 | $ 70,471,167 |
Basic net income per common share (in dollars per share) | $ 0.79 | $ 0.71 | $ 0.75 | $ 0.70 | $ 0.67 | $ 0.64 | $ 0.65 | $ 0.62 | $ 0.54 | $ 0.52 | $ 0.49 | $ 0.47 | $ 2.96 | $ 2.58 | $ 2.03 |
Diluted net income per common share (in dollars per share) | $ 0.78 | $ 0.71 | $ 0.73 | $ 0.68 | $ 0.65 | $ 0.62 | $ 0.64 | $ 0.62 | $ 0.53 | $ 0.52 | $ 0.49 | $ 0.47 | $ 2.91 | $ 2.52 | $ 2.01 |