Document and Entity Information
Document and Entity Information - shares | 3 Months Ended | |
Mar. 31, 2017 | May 02, 2017 | |
Document and Entity Information [Abstract] | ||
Entity Registrant Name | PINNACLE FINANCIAL PARTNERS INC | |
Entity Central Index Key | 1,115,055 | |
Current Fiscal Year End Date | --12-31 | |
Entity Well-known Seasoned Issuer | Yes | |
Entity Voluntary Filers | No | |
Entity Current Reporting Status | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 49,828,669 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q1 | |
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Mar. 31, 2017 |
CONSOLIDATED BALANCE SHEETS (Un
CONSOLIDATED BALANCE SHEETS (Unaudited) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Cash and noninterest-bearing due from banks | $ 95,215,622 | $ 84,732,291 |
Interest-bearing due from banks | 94,775,935 | 97,529,713 |
Federal funds sold and other | 2,682,574 | 1,383,416 |
Cash and cash equivalents | 192,674,131 | 183,645,420 |
Securities available-for-sale, at fair value | 1,579,776,402 | 1,298,546,056 |
Securities held-to-maturity (fair value of $25,035,844 and $25,233,254 at March 31, 2017 and December 31, 2016, respectively) | 24,997,568 | 25,251,316 |
Consumer mortgage loans held-for-sale | 70,597,985 | 47,710,120 |
Commercial mortgage loans held-for-sale | 15,354,496 | 22,587,971 |
Loans | 8,642,032,280 | 8,449,924,736 |
Less allowance for loan losses | (58,349,769) | (58,980,475) |
Loans, net | 8,583,682,511 | 8,390,944,261 |
Premises and equipment, net | 97,003,955 | 88,904,145 |
Equity method investment | 210,732,581 | 205,359,844 |
Accrued interest receivable | 29,568,023 | 28,234,826 |
Goodwill | 551,546,341 | 551,593,796 |
Core deposits and other intangible assets | 13,907,909 | 15,104,038 |
Other real estate owned | 6,234,962 | 6,089,804 |
Other assets | 348,524,131 | 330,651,002 |
Total assets | 11,724,600,995 | 11,194,622,599 |
Deposits: | ||
Noninterest-bearing | 2,508,679,583 | 2,399,191,152 |
Interest-bearing | 1,970,312,733 | 1,808,331,784 |
Savings and money market accounts | 3,938,368,793 | 3,714,930,351 |
Time | 863,235,880 | 836,853,761 |
Total deposits | 9,280,596,989 | 8,759,307,048 |
Securities sold under agreements to repurchase | 71,157,282 | 85,706,558 |
Federal Funds Purchased | 50,000,000 | 0 |
Federal Home Loan Bank advances | 181,264,257 | 406,304,187 |
Subordinated debt and other borrowings | 350,848,829 | 350,768,050 |
Accrued interest payable | 5,655,284 | 5,573,377 |
Other liabilities | 62,002,877 | 90,267,267 |
Total liabilities | 10,001,525,518 | 9,697,926,487 |
Stockholders' equity: | ||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 0 | 0 |
Common stock, par value $1.00; 90,000,000 shares authorized; 49,789,649 and 46,359,377 shares issued and outstanding at March 31, 2017 and December 31, 2016, respectively | 49,789,649 | 46,359,377 |
Additional paid-in capital | 1,274,762,698 | 1,083,490,728 |
Retained earnings | 413,700,739 | 381,072,505 |
Accumulated other comprehensive income (loss), net of taxes | (15,177,609) | (14,226,498) |
Total stockholders' equity | 1,723,075,477 | 1,496,696,112 |
Total liabilities and stockholders' equity | $ 11,724,600,995 | $ 11,194,622,599 |
CONSOLIDATED BALANCE SHEETS (U3
CONSOLIDATED BALANCE SHEETS (Unaudited) (Parenthetical) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
ASSETS | ||
Securities held-to-maturity, fair value | $ 25,035,844 | $ 25,233,254 |
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) | 49,789,649 | 46,359,377 |
Common stock, shares outstanding (in shares) | 49,789,649 | 46,359,377 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Interest income: | ||
Loans, including fees | $ 93,217,947 | $ 74,404,204 |
Securities: | ||
Taxable | 6,433,088 | 4,466,834 |
Tax-exempt | 1,677,581 | 1,493,757 |
Federal funds sold and other | 814,317 | 609,587 |
Total interest income | 102,142,933 | 80,974,382 |
Interest expense: | ||
Deposits | 8,118,914 | 4,915,563 |
Securities sold under agreements to repurchase | 49,766 | 48,050 |
Federal Home Loan Bank advances and other borrowings | 5,207,380 | 2,108,092 |
Total interest expense | 13,376,060 | 7,071,705 |
Net interest income | 88,766,873 | 73,902,677 |
Provision for loan losses | 3,651,022 | 3,893,570 |
Net interest income after provision for loan losses | 85,115,851 | 70,009,107 |
Noninterest income: | ||
Service charges on deposit accounts | 3,855,483 | 3,442,684 |
Investment services | 2,821,834 | 2,345,600 |
Insurance sales commissions | 1,858,890 | 1,705,859 |
Gain on mortgage loans sold, net | 4,154,952 | 3,567,551 |
Investment gains on sales, net | 0 | 0 |
Trust fees | 1,705,279 | 1,580,612 |
Income from equity method investment | 7,822,737 | 5,147,524 |
Other noninterest income | 8,162,419 | 8,065,880 |
Total noninterest income | 30,381,594 | 25,855,710 |
Noninterest expense: | ||
Salaries and employee benefits | 38,352,184 | 32,516,856 |
Equipment and occupancy | 9,674,658 | 8,130,464 |
Other real estate expense (benefit), net | 251,973 | 112,272 |
Marketing and other business development | 1,879,206 | 1,263,361 |
Postage and supplies | 1,196,445 | 957,087 |
Amortization of intangibles | 1,196,129 | 873,215 |
Merger related expense | 672,016 | 1,829,472 |
Other noninterest expense | 8,830,765 | 8,380,969 |
Total noninterest expense | 62,053,376 | 54,063,696 |
Income before income taxes | 53,444,069 | 41,801,121 |
Income tax expense | 13,791,022 | 13,835,857 |
Net income | $ 39,653,047 | $ 27,965,264 |
Per share information: | ||
Basic net income per common share (in dollars per share) | $ 0.83 | $ 0.70 |
Diluted net income per common share (in dollars per share) | $ 0.82 | $ 0.68 |
Weighted average shares outstanding: | ||
Basic (in shares) | 48,022,342 | 40,082,805 |
Diluted (in shares) | 48,517,920 | 40,847,027 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) [Abstract] | ||
Net income: | $ 39,653,047 | $ 27,965,264 |
Other comprehensive income (loss), net of tax: | ||
Change in fair value on available-for-sale securities, net of tax | (808,155) | 6,431,468 |
Change in fair value of cash flow hedges, net of tax | (142,956) | (923,703) |
Net gain on sale of investment securities reclassified from other comprehensive income into net income, net of tax | 0 | 0 |
Total other comprehensive income (loss), net of tax | (951,111) | 5,507,765 |
Total comprehensive income | $ 38,701,936 | $ 33,473,029 |
CONSOLIDATED STATEMENTS OF STOC
CONSOLIDATED STATEMENTS OF STOCKHOLDERS' EQUITY (Unaudited) - USD ($) | Common Stock [Member] | Common Stock [Member]Bankers Healthcare Group, LLC [Member] | Additional Paid-in Capital [Member] | Additional Paid-in Capital [Member]Bankers Healthcare Group, LLC [Member] | Retained Earnings [Member] | Retained Earnings [Member]Bankers Healthcare Group, LLC [Member] | Accumulated Other Comp. Income, net [Member] | Accumulated Other Comp. Income, net [Member]Bankers Healthcare Group, LLC [Member] | Total | Bankers Healthcare Group, LLC [Member] |
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 | $ 152,949 | 3,699,161 | 0 | 0 | 3,852,110 | |||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 152,949 | |||||||||
Common dividends paid | $ 0 | 0 | (5,791,835) | 0 | (5,791,835) | |||||
Issuance of restricted common shares, net of forfeitures | $ 127,462 | (127,462) | 0 | 0 | 0 | |||||
Issuance of restricted common shares, net of forfeitures (in shares) | 127,462 | |||||||||
Common stock issued in conjunction with acquisition | $ 860,470 | $ 38,939,530 | $ 0 | $ 0 | 39,694,036 | $ 39,800,000 | ||||
Common stock issued in conjunction with acquisition (in shares) | 860,470 | |||||||||
Restricted shares withheld for taxes | $ (51,990) | (741,561) | 0 | 0 | (793,551) | |||||
Restricted shares withheld for taxes (in shares) | (51,990) | |||||||||
Compensation expense for restricted shares | $ 0 | 2,628,788 | 0 | 0 | 2,628,788 | |||||
Net income: | 0 | 0 | 27,965,264 | 0 | 27,965,264 | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | 5,507,765 | 5,507,765 | |||||
Balance at Mar. 31, 2016 | $ 41,994,955 | 884,015,506 | 300,746,837 | 2,022,543 | 1,228,779,841 | |||||
Balance (in shares) at Mar. 31, 2016 | 41,994,955 | |||||||||
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 | |||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits | $ 148,740 | 2,811,672 | 0 | 0 | 2,960,412 | |||||
Exercise of employee common stock options, stock appreciation rights, and related tax benefits (in shares) | 148,740 | |||||||||
Common dividends paid | $ 0 | 0 | (7,024,813) | 0 | (7,024,813) | |||||
Issuance of restricted common shares, net of forfeitures | $ 118,439 | (118,439) | 0 | 0 | 0 | |||||
Issuance of restricted common shares, net of forfeitures (in shares) | 118,439 | |||||||||
Common stock issued in conjunction with acquisition | 0 | |||||||||
Issuance of Common Equity (in shares) | 3,220,000 | |||||||||
Issuance of common equity | $ 3,220,000 | 188,973,750 | 0 | 0 | 192,193,750 | |||||
Restricted shares withheld for taxes | $ (56,907) | (3,869,040) | 0 | 0 | (3,925,947) | |||||
Restricted shares withheld for taxes (in shares) | (56,907) | |||||||||
Compensation expense for restricted shares | $ 0 | 3,474,027 | 0 | 0 | 3,474,027 | |||||
Net income: | 0 | 0 | 39,653,047 | 0 | 39,653,047 | |||||
Other comprehensive income (loss) | 0 | 0 | 0 | (951,111) | (951,111) | |||||
Balance at Mar. 31, 2017 | $ 49,789,649 | $ 1,274,762,698 | $ 413,700,739 | $ (15,177,609) | $ 1,723,075,477 | |||||
Balance (in shares) at Mar. 31, 2017 | 49,789,649 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Operating activities: | ||
Net income: | $ 39,653,047 | $ 27,965,264 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Net amortization/accretion of premium/discount on securities | 1,977,703 | 1,303,239 |
Depreciation and amortization | (429,251) | (428,254) |
Provision for loan losses | 3,651,022 | 3,893,570 |
Gain on mortgage loans sold, net | (4,154,952) | (3,567,551) |
Investment gains on sales and impairments, net | 0 | 0 |
Stock-based compensation expense | 3,474,027 | 2,628,788 |
Deferred tax expense | 8,699,482 | 921,718 |
Losses (gains) on disposition of other real estate and other investments | 79,571 | (32,400) |
Gains from equity method investment | (7,822,737) | (5,147,524) |
Excess tax benefit from stock compensation | (3,760,322) | (159,168) |
Gain on other loans sold, net | (186,793) | 0 |
Other loans held for sale: | ||
Loans originated | (36,887,584) | (10,504,481) |
Loans sold | 44,307,853 | 0 |
Mortgage loans held for sale: | ||
Loans originated | (179,473,354) | (147,888,687) |
Loans sold | 160,740,441 | 163,949,000 |
Decrease (increase) in other assets | (136,250) | (6,736,913) |
Decrease (increase) in other liabilities | (24,385,998) | (2,169,127) |
Net cash provided by operating activities | 5,345,905 | 24,027,474 |
Activities in securities available-for-sale: | ||
Purchases | (334,875,094) | (102,041,878) |
Sales | 0 | 0 |
Maturities, prepayments and calls | 50,445,311 | 28,996,005 |
Activities in securities held-to-maturity: | ||
Purchases | 0 | 0 |
Maturities, prepayments and calls | 145,000 | 148,426 |
Increase in loans, net | (193,557,488) | (289,043,266) |
Purchases of software, premises and equipment | (11,446,101) | (2,849,721) |
Purchase of bank owned life insurance policies | (25,000,000) | 0 |
Increase in equity method investment | 0 | (74,100,000) |
Dividends received from equity method investment | 2,450,000 | 4,920,103 |
Increase in other investments | (639,671) | (1,918,978) |
Net cash used in investing activities | (512,478,043) | (435,889,309) |
Financing activities: | ||
Net increase in deposits | 521,563,077 | 109,015,688 |
Net increase (decrease) in securities sold under agreements to repurchase | (14,549,276) | (16,282,804) |
Advances from Federal Home Loan Bank: | ||
Issuances | 0 | 631,000,000 |
Payments/maturities | (225,020,191) | (315,015,246) |
Increase in other borrowings, net | 50,000,000 | 67,344,645 |
Principal payments of capital lease obligation | (36,163) | 0 |
Proceeds from common stock issuance | 192,193,750 | 0 |
Excess tax benefit from stock compensation | 0 | 159,168 |
Exercise of common stock options and stock appreciation rights, net of repurchase of restricted shares | (965,535) | 3,058,559 |
Common dividends paid | (7,024,813) | (5,791,835) |
Net cash provided by financing activities | 516,160,849 | 473,488,175 |
Net (decrease) increase in cash and cash equivalents | 9,028,711 | 61,626,340 |
Cash and cash equivalents, beginning of period | 183,645,420 | 183,645,420 |
Cash and cash equivalents, end of period | $ 192,674,131 | $ 382,577,673 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | Note 1. Summary of Significant Accounting Policies Nature of Business Basis of Presentation These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III and PNFP Statutory Trust IV are affiliates of Pinnacle Financial and are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. Use of Estimates Recently Adopted Accounting Pronouncements Cash Flow Information For the three months ended March 31, 2017 2016 Cash Transactions: Interest paid $ 13,666,769 $ 7,341,784 Income taxes paid, net 230,110 10,556,737 Noncash Transactions: Loans charged-off to the allowance for loan losses 5,161,951 9,226,906 Loans foreclosed upon and transferred to other real estate owned 1,498,198 - Loans foreclosed upon and transferred to other assets 2,593 1,384,511 Common stock issued in connection with equity-method investment - 39,694,036 Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2017 and 2016: Three months ended March 31, 2017 2016 Basic net income per share calculation: Numerator $ 39,653,047 $ 27,965,264 Denominator 48,022,342 40,082,805 Basic net income per common share $ 0.83 $ 0.70 Diluted net income per share calculation: Numerator $ 39,653,047 $ 27,965,264 Denominator 48,022,342 40,082,805 Dilutive shares contingently issuable 495,578 764,222 Weighted average diluted common shares outstanding 48,517,920 40,847,027 Diluted net income per common share $ 0.82 $ 0.68 On January 27, 2017, Pinnacle Financial completed the issuance and sale of 3,220,000 shares of common stock (including 420,000 shares issued as a result of the underwriter exercising its over-allotment option) in an underwritten public offering, which shares are included in the share count above. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses, were approximately $192.2 million. Recently Adopted Accounting Pronouncements — Accounting Standards Update 2016-09 Stock Compensation Improvements to Employee Share-Based Payment Activity Subsequent Events — |
Acquisitions
Acquisitions | 3 Months Ended |
Mar. 31, 2017 | |
Acquisitions [Abstract] | |
Acquisitions | Note 2. Acquisitions 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 redeem common stock $ 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. 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. Material adjustments to merger date estimated fair values would be recorded in the period in which the Avenue Merger occurred, and as a result, previously reported results are subject to change. 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. 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 (4) The (5) The amount represents the (6) The amount represents the |
Equity Method Investment
Equity Method Investment | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investment [Abstract] | |
Equity Method Investment | Note 3. Equity method investment A summary of BHG's financial position as of March 31, 2017 and December 31, 2016 and results of operations as of and for the three months ended March 31, 2017 and 2016, were as follows (in thousands): As of March 31, 2017 December 31, 2016 Assets $ 244,542 $ 223,246 Liabilities 165,271 139,531 Membership interests 79,271 83,715 Total liabilities and membership $ 244,542 $ 223,246 For the three months ended March 31, 2017 2016 Revenues $ 34,235 $ 31,288 Net income $ 16,012 $ 12,154 At March 31, 2017, technology, trade name and customer relationship intangibles, net of related amortization, of $15.9 million compared to $16.8 million as of December 31, 2016. Amortization expense of $832,000 was included for the three months ended March 31, 2017 compared to $378,000 for the same period in the prior year. Accretion income of $806,000 was included in the three months ended March 31, 2017 compared to $871,000 for the same period in the prior year. During the three months ended March 31, 2017, Pinnacle Financial and Pinnacle Bank received dividends from BHG of $2.5 million in the aggregate, respectively, compared to $4.9 million for the same period in the prior year. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. No loans were purchased from BHG by Pinnacle Bank for the periods ended March 31, 2017 or March 31, 2016. |
Securities
Securities | 3 Months Ended |
Mar. 31, 2017 | |
Securities [Abstract] | |
Securities | Note 4. Securities The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2017 and December 31, 2016 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2017: Securities available-for-sale: U.S. Treasury securities $ 250 $ - $ - $ 250 U.S. government agency securities 19,213 1 275 18,939 Mortgage-backed agency securities 1,240,671 4,205 17,899 1,226,977 State and municipal securities 247,210 4,611 2,824 248,997 Asset-backed securities 71,942 108 729 71,321 Corporate notes and other 13,245 152 105 13,292 $ 1,592,531 $ 9,077 $ 21,832 $ 1,579,776 Securities held-to-maturity: State and municipal securities $ 24,998 $ 124 $ 86 $ 25,036 $ 24,998 $ 124 $ 86 $ 25,036 December 31, 2016: Securities available-for-sale: U.S. Treasury securities $ 250 $ - $ - $ 250 U.S. government agency securities 22,306 - 537 21,769 Mortgage-backed agency 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 and other 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 At March 31, 2017, approximately $1.045 billion of securities within Pinnacle Financial's investment portfolio were pledged to secure either public funds and other deposits or securities sold under agreements to repurchase. At March 31, 2017, repurchase agreements comprised of secured borrowings totaled $71.2 million and were secured by $71.2 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 to remain adequately secured. The amortized cost and fair value of debt securities as of March 31, 2017 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands): Available-for-sale Held-to-maturity March 31, 2017: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,519 $ 2,536 $ 445 $ 445 Due in one year to five years 45,041 46,143 8,262 8,285 Due in five years to ten years 128,637 130,524 10,817 10,897 Due after ten years 103,721 102,275 5,474 5,409 Mortgage-backed securities 1,240,671 1,226,977 - - Asset-backed securities 71,942 71,321 - - $ 1,592,531 $ 1,579,776 $ 24,998 $ 25,036 At March 31, 2017 and December 31, 2016, the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands): Investments with an Unrealized Loss of less than 12 months Investments with an Unrealized Loss of 12 months or longer Total Investments with an Unrealized Loss Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses At March 31, 2017 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 749 1 12,995 274 13,744 275 Mortgage-backed securities 1,009,381 17,214 53,060 685 1,062,441 17,899 State and municipal securities 101,430 2,909 310 1 101,740 2,910 Asset-backed securities 11,008 24 25,928 705 36,936 729 Corporate notes 4,542 105 - - 4,542 105 Total temporarily-impaired securities $ 1,127,110 $ 20,253 $ 92,293 $ 1,665 $ 1,219,403 $ 21,918 At 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 The applicable dates for determining when securities are in an unrealized loss position are March 31, 2017 and December 31, 2016. As such, it is possible that a security had a market value that exceeded its amortized cost on other days during the past twelve-month periods ended March 31, 2017 and December 31, 2016, but is in the "Investments with an Unrealized Loss of less than 12 months" category above. As shown in the tables above, including both available-for-sale and held-to-maturity investment securities, at March 31, 2017, Pinnacle Financial had approximately $21.9 million in unrealized losses on $1.219 billion of securities. The unrealized losses associated with these investment securities are 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 Pinnacle Financial's ongoing impairment analysis. 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 those securities that have an unrealized loss at March 31, 2017, and it is not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial does not consider these securities to be other-than-temporarily impaired at March 31, 2017. Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade or tax-exempt status, the underlying credit support is terminated or collection otherwise becomes uncertain based on factors known to management, Pinnacle Financial will consider selling the security, but will review each security on a case-by-case basis as these factors become known. The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities. As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Additionally, there is a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and/or recovery changes. |
Loans and Allowance for Loan Lo
Loans and Allowance for Loan Losses | 3 Months Ended |
Mar. 31, 2017 | |
Loans and Allowance for Loan Losses [Abstract] | |
Loans and Allowance for Loan Losses | Note 5. Loans and Allowance for Loan Losses For financial reporting purposes, Pinnacle Financial classifies its loan portfolio based on the underlying collateral utilized to secure each loan. This classification is consistent with those utilized in the Quarterly Report of Condition and Income filed with the Federal Deposit Insurance Corporation (FDIC). Pinnacle Financial uses five loan categories: commercial real estate mortgage, consumer real estate mortgage, construction and land development, commercial and industrial, and consumer and other.  Commercial real-estate mortgage loans  Consumer real-estate mortgage loans  Construction and land development loans  Commercial and industrial loans  Consumer and other loans Commercial loans receive risk ratings assigned by a financial advisor and approved by a senior credit officer subject to validation by Pinnacle Financial's independent loan review department. Risk ratings are categorized as pass, special mention, substandard, substandard-nonaccrual or doubtful-nonaccrual. Pinnacle Financial believes that its categories follow those used by Pinnacle Bank's primary regulators. At March 31, 2017, approximately 78% of Pinnacle Financial's 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, Pinnacle Financial's credit procedures require that every risk rated loan of $500,000 or more be subject to a formal credit risk review process by the assigned financial advisor. Each loan's risk rating is also subject to review by Pinnacle Financial's independent loan review department, which reviews a substantial portion of Pinnacle Financial's 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 Pinnacle Financial's 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 March 31, 2017 and December 31, 2016 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total March 31, 2017 Accruing loans Pass $ 3,111,795 $ 1,171,131 $ 1,000,453 $ 2,858,856 $ 266,341 $ 8,408,576 Special Mention 39,448 1,620 4,800 37,387 783 84,038 Substandard (1) 26,081 11,867 5,762 65,946 121 109,777 3,177,324 1,184,618 1,011,015 2,962,189 267,245 8,602,391 Impaired loans Nonaccrual loans (2) Substandard-nonaccrual 4,050 8,809 4,112 7,255 822 25,048 Doubtful-nonaccrual - - - 2 - 2 Total nonaccrual loans 4,050 8,809 4,112 7,257 822 25,050 Troubled debt restructurings (3) Pass 210 1,349 - 720 39 2,318 Special Mention - 233 - - - 233 Substandard - 1,366 - 10,674 - 12,040 Total troubled debt restructurings 210 2,948 - 11,394 39 14,591 Total impaired loans 4,260 11,757 4,112 18,651 861 39,641 Total loans $ 3,181,584 $ 1,196,375 $ 1,015,127 $ 2,980,840 $ 268,106 $ 8,642,032 December 31, 2016 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 Nonaccrual loans (2) Substandard-nonaccrual 4,921 8,073 6,613 7,492 475 27,574 Doubtful-nonaccrual - - - 3 - 3 Total nonaccrual loans 4,921 8,073 6,613 7,495 475 27,577 Troubled debt restructurings (3) 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 (1) Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $109.8 million at March 31, 2017, compared to $114.6 million at December 31, 2016. (2) Included in nonaccrual loans at March 31, 2017 and December 31, 2016 are $7.3 million and $8.8 million, respectively, in purchase credit impaired loans acquired with deteriorated credit quality. (3) Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. For the three months ended March 31, 2017, the average balance of nonaccrual loans was $26.3 million compared to $43.7 million for the same period in 2016. 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. 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 $49,000 in interest income from cash payments received on nonaccrual loans during the three months ended March 31, 2017, compared to $31,000 during the three months ended March 31, 2016. Had these nonaccruing loans been on accruing status, interest income would have been higher by $640,000 for the three months ended March 31, 2017 compared to $280,000 for the three months ended March 31, 2016, respectively. Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and are referred to as purchase credit impaired loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2016 through March 31, 2017 (in thousands): Gross Contractual Receivable Accretable Yield Nonaccretable Yield Carrying Value December 31, 2016 $ 12,468 $ - $ (3,633 ) $ 8,835 Acquisitions - - - - Year-to-date settlements (1,814 ) - 252 (1,562 ) Additional fundings 5 - - 5 March 31, 2017 $ 10,659 $ - $ (3,381 ) $ 7,278 These loans have been deemed to be collateral dependent and as such, no accretable yield has been recorded for these loans. 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 table details the recorded investment, unpaid principal balance and related allowance of Pinnacle Financial's nonaccrual loans at March 31, 2017 and December 31, 2016 by loan classification (in thousands): At March 31, 2017 At December 31, 2016 Recorded investment Unpaid principal balances(1) Related allowance(2) Recorded investment Unpaid principal balances (1) Related allowance(2) Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,283 $ 2,280 $ - $ 2,308 $ 2,312 $ - Consumer real estate – mortgage 2,513 2,544 - 2,880 2,915 - Construction and land development 1,028 1,035 - 3,128 3,135 - Commercial and industrial 6,252 6,266 - 6,373 6,407 - Consumer and other - - - - - - Total $ 12,076 $ 12,125 $ - $ 14,689 $ 14,769 $ - Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,767 $ 2,465 $ 63 $ 2,613 $ 3,349 $ 59 Consumer real estate – mortgage 6,296 6,883 1,085 5,193 5,775 688 Construction and land development 3,083 3,756 19 3,485 4,154 20 Commercial and industrial 1,006 2,379 220 1,122 2,714 77 Consumer and other 822 942 465 475 851 227 Total $ 12,974 $ 16,425 $ 1,852 $ 12,888 $ 16,843 $ 1,071 Total nonaccrual loans $ 25,050 $ 28,550 $ 1,852 $ 27,577 $ 31,612 $ 1,071 (1) Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. (2) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three months ended March 31, 2017 and 2016, respectively, on Pinnacle Financial's nonaccrual loans that remain on the balance sheets as of such date (in thousands): For the three months ended March 31, 2017 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,100 $ - $ 3,854 $ - Consumer real estate – mortgage 2,216 - 4,462 - Construction and land development 2,078 49 7,320 31 Commercial and industrial 6,312 - 15,451 - Consumer and other - - 386 - Total $ 12,706 $ 49 $ 31,473 $ 31 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 2,386 $ - $ 1,548 $ - Consumer real estate – mortgage 6,225 - 5,815 - Construction and land development 3,284 - 74 - Commercial and industrial 1,064 - 1,128 - Consumer and other 649 - 3,702 - Total $ 13,608 $ - $ 12,267 $ - Total nonaccrual loans $ 26,314 $ 49 $ 43,740 $ 31 At March 31, 2017 and December 31, 2016, there were $14.6 million and $15.0 million, respectively, of troubled debt restructurings that were performing as of their restructure date and which were accruing interest. The Three months ended March 31, 2017 Number of contracts Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 3,457 3,457 Consumer and other - - - 1 $ 3,457 $ 3,457 2016 Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 2,333 1,536 Consumer and other - - - 1 $ 2,333 $ 1,536 During the three months ended March 31, 2017 and 2016, Pinnacle Financial did not have any troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. To monitor concentration risk, Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at March 31, 2017 with the comparative exposures for December 31, 2016 (in thousands): March 31, 2017 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2016 Lessors of nonresidential buildings $ 1,302,962 $ 359,869 $ 1,662,831 $ 1,701,853 Lessors of residential buildings 487,960 291,045 779,005 874,234 The table below presents past due balances by loan classification and segment at March 31, 2017 and December 31, 2016, allocated between accruing and nonaccrual status (in thousands): March 31, 2017 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total Loans Commercial real estate: Owner-occupied $ 1,056 $ - $ 1,056 $ 3,401 $ 1,395,055 $ 1,399,512 All other 30 - 30 649 1,781,393 1,782,072 Consumer real estate – mortgage 1,917 49 1,966 8,809 1,185,600 1,196,375 Construction and land development 1,350 - 1,350 4,112 1,009,665 1,015,127 Commercial and industrial 3,514 - 3,514 7,258 2,970,068 2,980,840 Consumer and other 5,706 1,062 6,768 821 260,517 268,106 $ 13,573 $ 1,111 $ 14,684 $ 25,050 $ 8,602,298 $ 8,642,032 December 31, 2016 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 (1) Approximately $15.0 million and $16.7 million of nonaccrual loans as of March 31, 2017 and December 31, 2016, respectively, were performing pursuant to their contractual terms at those dates. The following table shows the allowance allocation by loan classification and accrual status at March 31, 2017 and December 31, 2016 (in thousands): Impaired Loans Accruing Loans Nonaccrual Loans Troubled Debt Restructurings (1) Total Allowance for Loan Losses March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Commercial real estate –mortgage $ 14,105 $ 13,595 $ 63 $ 59 $ - $ 1 $ 14,168 $ 13,655 Consumer real estate – mortgage 6,132 5,874 1,085 688 2 2 7,219 6,564 Construction and land development 4,422 3,604 19 20 - - 4,441 3,624 Commercial and industrial 22,650 24,648 220 77 42 18 22,912 24,743 Consumer and other 8,012 9,293 465 227 - - 8,477 9,520 Unallocated - - - - - - 1,133 874 $ 55,321 $ 57,014 $ 1,852 $ 1,071 $ 44 $ 21 $ 58,350 $ 58,980 (1) Troubled debt restructurings of $14.6 million and $15.0 million as of both March 31, 2017 and December 31, 2016, 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 for the three months ended March 31, 2017 and 2016, respectively, by loan classification (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Three months ended March 31, 2017: Balance at December 31, 2016 $ 13,655 $ 6,564 $ 3,624 $ 24,743 $ 9,520 $ 874 $ 58,980 Charged-off loans - (61 ) - (1,158 ) (3,943 ) - (5,162 ) Recovery of previously charged-off loans 6 170 33 140 532 - 881 Provision for loan losses 507 546 784 (813 ) 2,368 259 3,651 Balance at March 31, 2017 $ 14,168 $ 7,219 $ 4,441 $ 22,912 $ 8,477 $ 1,133 $ 58,350 Three months ended March 31, 2016: Balance at December 31, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 537 $ 65,432 Charged-off loans - (199 ) - (1,624 ) (7,404 ) - (9,227 ) Recovery of previously charged-off loans 58 85 25 1,433 540 - 2,141 Provision for loan losses (2,020 ) 63 1,014 692 3,106 1,038 3,893 Balance at March 31, 2016 $ 13,551 $ 7,169 $ 3,942 $ 24,144 $ 11,858 $ 1,575 $ 62,239 The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of March 31, 2017 and December 31, 2016, respectively (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total March 31, 2017 Allowance for Loan Losses: Collectively evaluated for impairment $ 14,105 $ 6,132 $ 4,422 $ 22,650 $ 8,012 $ 1,133 $ 56,454 Individually evaluated for impairment 63 1,087 19 262 465 - 1,896 Loans acquired with deteriorated credit quality - - - - - - - Total allowance for loan losses $ 14,168 $ 7,219 $ 4,441 $ 22,912 $ 8,477 $ 1,133 $ 58,350 Loans: Collectively evaluated for impairment $ 3,177,324 $ 1,184,618 $ 1,011,015 $ 2,962,189 $ 267,245 $ 8,602,391 Individually evaluated for impairment 2,714 9,276 1,094 18,418 861 32,363 Loans acquired with deteriorated credit quality 1,546 2,481 3,018 233 - 7,278 Total loans $ 3,181,584 $ 1,196,375 $ 1,015,127 $ 2,980,840 $ 268,106 $ 8,642,032 December 31, 2016 Allowance for Loan Losses: Collectively evaluated for impairment $ 13,595 $ 5,874 $ 3,604 $ 24,648 $ 9,293 $ 874 $ 57,888 Individually evaluated for impairment 60 690 20 95 227 - 1,092 Loans acquired with deteriorated credit quality - - - - - - - Total allowance for loan losses $ 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 Total loans $ 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, current asset quality trends, known and inherent risks in the portfolio, adverse situations that may affect the borrowers' ability to repay (including the timing of future payment), the estimated value of any underlying collateral, composition of the loan portfolio, economic conditions, historical loss experience, industry and peer bank loan quality indications and other pertinent factors, including regulatory recommendations. The allowance for loan losses for purchased loans is calculated similarly to the method utilized for legacy Pinnacle Bank loans. Pinnacle Financial's accounting policy is to compare the computed allowance for loan losses for purchased loans on a loan-by-loan basis to any remaining fair value adjustment. If the computed allowance is greater than the remaining fair value adjustment, the excess is added to the allowance for loan losses by a charge to the provision for loan losses. At March 31, 2017, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $21.8 million to current directors, executive officers, and their related entities, of which $15.0 million had been drawn upon. At December 31, 2016, Pinnacle Bank had granted loans and other extensions of credit amounting to approximately $22.6 million to directors, executive officers, and their related entities, of which approximately $14.8 million had been drawn upon. None of these loans to directors, executive officers, and their related entities were impaired at March 31, 2017 or December 31, 2016. At March 31, 2017, Pinnacle Financial had approximately $15.4 million in commercial loans held for sale, which included loans previously held in Pinnacle Bank's commercial loan portfolio that it has elected to sell as well apartment loans originated for sale to a third-party as part of a multi-family loan program. Such loans are closed under a pass-through commitment structure wherein Pinnacle Bank's loan commitment to the borrower is the same as the third party's take-out commitment to Pinnacle Bank, and the third party purchase typically occurs within thirty days of Pinnacle Bank closing with the borrowers. Residential Lending At March 31, 2017, Pinnacle Financial had approximately $70.6 million of mortgage loans held-for-sale compared to approximately $47.7 million at December 31, 2016. Total loan volumes sold during the three months ended March 31, 2017 were approximately $160.7 million compared to approximately $163.9 million for the three months ended March 31, 2016. During the three months ended March 31, 2017, Pinnacle Financial recognized $4.2 million in gains on the sale of these loans, net of commissions paid, compared to $3.6 million during the three months ended March 31, 2016. 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 of a mortgage loan held-for-sale has specific guidelines and criteria for sellers of loans, and the risk of credit loss with regard to the principal amount of the loans sold is generally transferred to the purchasers upon sale. While the loans are sold without recourse, the purchase agreements require Pinnacle Bank to make certain representations and warranties regarding the existence and sufficiency of file documentation and the absence of fraud by borrowers or other third parties such as appraisers in connection with obtaining the loan. If it is determined that the loans sold were in breach of these representations or warranties, Pinnacle Bank has obligations to either repurchase the loan for the unpaid principal balance and related investor fees or make the purchaser whole for the economic benefits of the loan. To date, repurchase activity pursuant to the terms of these representations and warranties has been insignificant to Pinnacle Bank. |
Income Taxes
Income Taxes | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Income Taxes | Note 6. Income Taxes ASC 740, Income Taxes The unrecognized tax benefit related to uncertain tax positions related to State income tax filings was $1.3 million at March 31, 2017 compared to $196,000 at March 31, 2016. No change was recorded to the unrecognized tax benefit related to uncertain tax positions in each of the three month periods ended March 31, 2017 and 2016. Pinnacle Financial's policy is to recognize interest and/or penalties related to income tax matters in income tax expense. The total amount of interest and penalties recorded in the income statement for the three months ended March 31, 2017 was $18,000. No interest and penalties were recorded for the three months ended March 31, 2016. Pinnacle Financial's effective tax rate for the three months ended March 31, 2017 was 25.8% compared to 33.1% for the three months ended March 31, 2016. The difference between the effective tax rate and the Federal and State income tax statutory rate of 39.23% is primarily due to state excise tax expense, investments in bank qualified municipal securities, tax benefits of Pinnacle Financial's real estate investment trust subsidiary, participation in the Community Investment Tax Credit (CITC) program, tax benefits associated with share-based compensation and bank-owned life insurance, offset in part by the limitation on deductibility of meals and entertainment expense and certain merger-related expenses. The impact of the adoption of ASU 2016-09 (as described in Note 1) was included in income tax expense for the quarter ended March 31, 2017, resulting in the recognition of $3.8 million of tax benefits which reduced income tax expense. Prior to the adoption of ASU 2016-09, these tax benefits were recorded as an increase to additional paid-in-capital. |
Commitments and Contingent Liab
Commitments and Contingent Liabilities | 3 Months Ended |
Mar. 31, 2017 | |
Commitments and Contingent Liabilities [Abstract] | |
Commitments and Contingent Liabilities | Note 7. Commitments and Contingent Liabilities In the normal course of business, Pinnacle Financial has entered into off-balance sheet financial instruments which include commitments to extend credit (i.e., including unfunded lines of credit) and standby letters of credit. Commitments to extend credit are usually the result of lines of credit granted to existing borrowers under agreements that the total outstanding indebtedness will not exceed a specific amount during the term of the indebtedness. Typical borrowers are commercial concerns that use lines of credit to supplement their treasury management functions, and thus their total outstanding indebtedness may fluctuate during any time period based on the seasonality of their business and the resultant timing of their cash flows. Other typical lines of credit are related to home equity loans granted to consumers. Commitments to extend credit generally have fixed expiration dates or other termination clauses and may require payment of a fee. At March 31, 2017, these commitments amounted to $3.3 billion. Standby letters of credit are generally issued on behalf of an applicant (our customer) to a specifically named beneficiary and are the result of a particular business arrangement that exists between the applicant and the beneficiary. Standby letters of credit have fixed expiration dates and are usually for terms of two years or less unless terminated beforehand due to criteria specified in the standby letter of credit. A typical arrangement involves the applicant routinely being indebted to the beneficiary for such items as inventory purchases, insurance, utilities, lease guarantees or other third party commercial transactions. The standby letter of credit would permit the beneficiary to obtain payment from Pinnacle Financial under certain prescribed circumstances. Subsequently, Pinnacle Financial would then seek reimbursement from the applicant pursuant to the terms of the standby letter of credit. At March 31, 2017, these commitments amounted to $128.4 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 only amounts drawn upon would be reflected in the future. Since many of the commitments are expected to expire without being drawn upon, the contractual amounts do not necessarily represent future cash requirements. However, should the commitments be drawn upon and should Pinnacle Financial's customers default on their resulting obligation to Pinnacle Financial, the maximum exposure to credit loss, without consideration of collateral, is represented by the contractual amount of those commitments. At both March 31, 2017, and December 31, 2016, Pinnacle Financial had accrued $1.1 million for the inherent risks associated with these off-balance sheet commitments. Various legal claims also arise from time to time in the normal course of business. In the opinion of management, the resolution of these claims outstanding at March 31, 2017 will not have a material adverse impact on Pinnacle Financial's consolidated financial condition, operating results or cash flows. |
Stock Options, Stock Appreciati
Stock Options, Stock Appreciation Rights and Restricted Shares | 3 Months Ended |
Mar. 31, 2017 | |
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |
Stock Options, Stock Appreciation Rights and Restricted Shares | Note 8. Stock Options and Restricted Shares As described more fully in the Annual Report on Form 10-K, as of March 31, 2017, 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. 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 825,000 shares as of March 31, 2017, inclusive of shares returned to plan reserves during the three months ended March 31, 2017. The 2014 Plan also permits Pinnacle Financial to reissue awards currently outstanding that are subsequently forfeited, settled in cash or expired unexercised and returned to the 2014 Plan. 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 A summary of the stock option activity within the equity incentive plans during the three months ended March 31, 2017 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows: Number Weighted- Average Exercise Price Weighted- Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (000's) Outstanding at December 31, 2016 550,490 $ 20.75 2.61 $ 26,728 (1) Granted - Exercised (3) (149,213 ) Forfeited - Outstanding at March 31, 2017 401,277 $ 20.93 3.16 $ 18,265 (2) Options exercisable at March 31, 2017 401,277 $ 20.93 3.16 $ 18,265 (2) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $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 aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $66.45 per common share at March 31, 2017 for the 401,277 options that were in-the-money at March 31, 2017. (3) Includes 750 stock options which were exercised in a stock swap transaction which settled in 277 shares of Pinnacle Financial common stock. Compensation costs related to stock options granted under Pinnacle Financial's equity incentive plan have been fully recognized and all outstanding option awards are fully vested. Restricted Share Awards A summary of activity for unvested restricted share awards for the three months ended March 31, 2017 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2016 820,539 $ 36.47 Shares awarded 80,745 Conversion of previously awarded restricted share units to restricted share awards 43,680 Restrictions lapsed and shares released to associates/directors (190,488 ) Shares forfeited (1) (5,986 ) Unvested at March 31, 2017 748,490 $ 43.44 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. Pinnacle Financial has granted restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following table outlines restricted stock grants that were awarded, grouped by similar vesting criteria, during the three months ended March 31, 2017: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Forfeited by participants (5) Shares Unvested Time Based Awards 2017 Associates (2) 5 68,850 61 487 68,302 Performance Based Awards 2017 Leadership team (3) 3 (3) 43,680 - - 43,680 Outside Director Awards (4) 2017 Outside directors 1 11,895 - - 11,895 (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) Reflects conversion of restricted share units issued in prior years to restricted share awards. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain soundness targets over each year of the subsequent vesting period. See further details of these awards under the caption "Restricted Share Units" below. (4) Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on February 28, 2017 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (5) These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended March 31, 2017. 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 Units The following table details the Restricted Share Unit awards outstanding at March 31, 2017: Units Awarded Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Subsequent holding period per tranche (in years) Shares settled into RSAs as of period end (2) 2017 72,537-109,339 24,916 2017 2 3 N/A 2018 2 2 N/A 2019 2 1 N/A 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 21,840 2016 2 N/A 21,840 (1) The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. (2) Restricted share unit awards granted in 2017, 2016 and 2015 will be earned and settled in shares of Pinnacle Financial common stock, for which additional forfeiture restrictions may lapse based on Pinnacle Financial's performance in future periods. (3) Restrictions on half of the shares previously converted to RSAs will lapse commensurate with the filing of the Form 10-K for the year ended December 31, 2017 and 2018, respectively. Stock compensation expense related to restricted share awards and restricted share units for the three months ended March 31, 2017 and 2016 was $3.5 million and $2.7 million, respectively. |
Regulatory Matters
Regulatory Matters | 3 Months Ended |
Mar. 31, 2017 | |
Regulatory Matters [Abstract] | |
Regulatory Matters | Note 11. Regulatory Matters Pursuant to Tennessee banking law, Pinnacle Bank may not, without the prior consent of the Commissioner of the Tennessee Department of Financial Institutions (TDFI), pay any dividends to Pinnacle Financial in a calendar year in excess of the total of Pinnacle Bank's retained net income for that year plus the retained net income for the preceding two years. During the three months ended March 31, 2017, Pinnacle Bank paid $7.5 million in dividends to Pinnacle Financial. Pinnacle Financial increased its quarterly common stock dividend to $0.14 beginning in the first quarter of 2016. The amount and timing of all future dividend payments by Pinnacle Financial, if any, is subject to Board discretion and will depend on Pinnacle Financial's earnings, capital position, financial condition and other factors, including new regulatory capital requirements, as they become known to Pinnacle Financial. 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 was 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 March 31, 2017, 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 At March 31, 2017 Total capital to risk weighted assets: Pinnacle Financial $ 1,435,331 13.7 % $ 839,196 8.0 % $NA NA Pinnacle Bank $ 1,349,946 12.9 % $ 836,884 8.0 % $ 1,046,105 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 1,107,531 10.6 % $ 629,397 6.0 % $NA NA Pinnacle Bank $ 1,162,969 11.1 % $ 627,663 6.0 % $ 836,884 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 1,027,408 9.8 % $ 472,047 4.5 % $NA NA Pinnacle Bank $ 1,162,846 11.1 % $ 470,747 4.5 % $ 679,968 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 1,107,531 10.3 % $ 428,432 4.0 % $NA NA Pinnacle Bank $ 1,162,969 10.9 % $ 427,263 4.0 % $ 534,078 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments
Derivative Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments [Abstract] | |
Derivative Instruments | Note 9. Derivative Instruments Financial derivatives are reported at fair value in other assets or other liabilities. The accounting for changes in the fair value of a derivative depends on whether it has been designated and qualifies as part of a hedging relationship. For derivatives not designated as hedges, the gain or loss is recognized in current period earnings. Non-hedge derivatives Pinnacle Financial enters into interest rate swaps (swaps) to facilitate customer transactions and meet their financing needs. Upon entering into these instruments to meet customer needs, Pinnacle Financial enters into offsetting positions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. A summary of Pinnacle Financial's interest rate swaps related to customers as of March 31, 2017 and December 31, 2016 is included in the following table (in thousands): March 31, 2017 December 31, 2016 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 664,946 $ 14,856 $ 666,572 $ 16,004 Pay variable / receive fixed swaps 664,946 (14,978 ) 666,572 (16,138 ) Total $ 1,329,892 $ (122 ) $ 1,333,144 $ (134 ) Hedge derivatives A summary of Pinnacle Financial's cash flow hedge relationships as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, 2017 December 31, 2016 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 $ (579 ) $ (352 ) $ (727 ) $ (442 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016-April 2022 (1,140 ) (693 ) (1,304 ) (792 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016-Oct. 2020 (910 ) (553 ) (1,081 ) (657 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017-Oct. 2021 (1,160 ) (705 ) (1,200 ) (729 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018-July 2022 (1,201 ) (730 ) (1,222 ) (743 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018- Oct. 2022 (1,161 ) (706 ) (1,198 ) (728 ) $ 200,000 $ (6,151 ) $ (3,739 ) $ (6,732 ) $ (4,091 ) (1) No cash will be exchanged prior to the beginning of the term. The following outlines the interest rate swap agreements in place at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Forecasted Notional Amount Receive Rate Pay Rate Term (2) Asset/ (Liabilities) Unrealized Gain 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 $ 274 $ 167 $ 395 $ 240 Interest Rate Swap 25,000 2.270 % 1 month LIBOR July 2014 - July 2022 468 284 610 371 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 713 433 874 531 Interest Rate Swap 30,000 2.500 % 1 month LIBOR July 2014 - July 2024 750 456 900 547 Interest Rate Swap - 1.048 % 1 month LIBOR Aug. 2015-Aug. 2018 - - - - Interest Rate Swap - 1.281 % 1 month LIBOR Aug. 2015-Aug. 2019 - - - - Interest Rate Swap 15,000 1.470 % 1 month LIBOR Aug. 2015-Aug. 2020 (125 ) (76 ) (75 ) (46 ) $ 125,000 $ 2,080 $ 1,264 $ 2,704 $ 1,643 The cash flow hedges were determined to be fully effective during the periods presented. Therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets or other liabilities with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps. Pinnacle Financial does not expect any amounts to be reclassified from accumulated other comprehensive (loss) income related to these swaps over the next twelve months. |
Fair Value of Financial Instrum
Fair Value of Financial Instruments | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Fair Value of Financial Instruments | Note 10. Fair Value of Financial Instruments FASB ASC 820, Fair Value Measurements and Disclosures Valuation Hierarchy FASB ASC 820 establishes a three-level valuation hierarchy for disclosure of fair value measurements. The valuation hierarchy is based upon the transparency of inputs to the valuation of an asset or liability as of the measurement date. The three levels are defined as follows:  Level 1 – inputs to the valuation methodology are quoted prices (unadjusted) for identical assets or liabilities in active markets.  Level 2 – inputs to the valuation methodology include quoted prices for similar assets and liabilities in active markets, and inputs that are observable for the asset or liability, either directly or indirectly, for substantially the full term of the financial instrument.  Level 3 – inputs to the valuation methodology are unobservable and significant to the fair value measurement. A financial instrument's categorization within the valuation hierarchy is based upon the lowest level of input that is significant to the fair value measurement. Following is a description of the valuation methodologies used for assets and liabilities measured at fair value, as well as the general classification of such assets and liabilities pursuant to the valuation hierarchy. Assets Securities available-for-sale identical Other investments – Included in others assets are other investments recorded at fair value primarily in certain nonpublic private equity funds. The valuation of nonpublic private equity investments requires management judgment due to the absence of observable quoted market prices, inherent lack of liquidity and the long-term nature of such assets. These investments are valued initially based upon transaction price. The carrying values of other investments are adjusted either upwards or downwards from the transaction price to reflect expected exit values as evidenced by financing and sale transactions with third parties, or when determination of a valuation adjustment is confirmed through ongoing reviews by senior investment managers. A variety of factors are reviewed and monitored to assess positive and negative changes in valuation including, but not limited to, current operating performance and future expectations of the particular investment, industry valuations of comparable public companies and changes in market outlook and the third-party financing environment over time. In determining valuation adjustments resulting from the investment review process, emphasis is placed on current company performance and market conditions. These investments are included in Level 3 of the valuation hierarchy as these funds are not widely traded and the underlying investments of such funds are often privately-held and/or start-up companies for which market values are not readily available. Other assets Nonaccrual loans Other real estate owned – Liabilities Other liabilities – The following tables present financial instruments measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): March 31, 2017 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 18,939 - 18,939 - Mortgage-backed agency securities 1,226,977 - 1,226,977 - State and municipal securities 248,997 - 248,997 - Agency-backed securities 71,321 - 71,321 - Corporate notes and other 13,292 - 13,292 - Total investment securities available-for-sale $ 1,579,776 $ - $ 1,579,776 $ - Other investments 10,492 - - 10,492 Other assets 14,662 - 14,662 - Total assets at fair value $ 1,604,930 $ - $ 1,594,438 $ 10,492 Other liabilities $ 15,404 $ - $ 15,404 $ - Total liabilities at fair value $ 15,404 $ - $ 15,404 $ - December 31, 2016 Investment securities available-for-sale: U.S. treasury securities $ 250 $ - $ 250 $ - U.S. government agency securities 21,769 - 21,769 - Mortgage-backed agency securities 976,626 - 976,626 - State and municipal securities 212,720 - 212,720 - Agency-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 - Other 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 $ - The following table presents assets measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Total losses for the year-to-date period then ended Other real estate owned $ 6,235 $ - $ - $ 6,235 $ (78 ) Nonaccrual loans, net (1) 23,198 - - 23,198 (1,773 ) Total $ 29,433 $ - $ - $ 29,433 $ (1,851 ) December 31, 2016 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 ) (1) Amount is net of valuation allowance of $1.9 million and $1.1 million at March 31, 2017 and December 31, 2016, respectively, as required by ASC 310-10, "Receivables." In the case of the investment securities portfolio, Pinnacle Financial monitors the portfolio to ascertain when transfers between levels have been affected. The nature of the remaining assets and liabilities is such that transfers in and out of any level are expected to be rare. For the three months ended March 31, 2017, there were no transfers between Levels 1, 2 or 3. The table below includes a rollforward of the balance sheet amounts for the three months ended March 31, 2017 (including the change in fair value) 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 three months ended March 31, 2017 2016 Other assets Other liabilities Other assets Other liabilities Fair value, beginning of period $ 10,478 $ - $ 9,764 $ - Total realized gains included in income 197 - 177 - Changes in unrealized gains/losses included in other comprehensive income for assets and liabiliaties still held at March 31 - - - - Purchases 120 - 325 - Issuances - - - - Settlements (303 ) - (138 ) - Transfers out of Level 3 - - - - Fair value, end of period 10,492 - 10,128 - Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 $ 197 $ - $ 177 - The following methods and assumptions were used by Pinnacle Financial in estimating its fair value disclosures for financial instruments that are not measured at fair value. In cases where quoted market prices are not available, fair values are based on estimates using discounted cash flow models. Those models are significantly affected by the assumptions used, including the discount rates, estimates of future cash flows and borrower creditworthiness. The fair value estimates presented herein are based on pertinent information available to management as of March 31, 2017 and December 31, 2016. Such amounts have not been revalued for purposes of these consolidated financial statements since those dates and, therefore, current estimates of fair value may differ significantly from the amounts presented herein. Securities held-to-maturity Loans, net For variable-rate loans that reprice frequently and have no significant change in credit risk, fair values approximate carrying values. Fair values for impaired loans are 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 March 31, 2017 and December 31, 2016. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands). (in thousands) March 31, 2017 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 $ 24,998 $ 25,036 $ - $ 25,036 $ - Loans, net 8,583,683 8,361,595 - - 8,361,595 Mortgage loans held-for-sale 70,598 71,799 - 71,799 - Loans held-for-sale 15,354 15,611 - 15,611 - Financial liabilities: Deposits and securities sold under agreements to repurchase 9,351,754 9,071,202 - - 9,071,202 Federal Home Loan Bank advances 181,264 181,564 - - 181,564 Subordinated debt and other borrowings 350,849 330,418 - - 330,418 Federal funds purchased 50,000 50,000 - - - Off-balance sheet instruments: Commitments to extend credit (2) 3,338,086 347 - - 347 Standby letters of credit (3) 128,449 731 - - 731 December 31, 2016 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 - 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 (1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. (2) At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at March 31, 2017 and December 31, 2016, Pinnacle Financial included in other liabilities $347,000 and $383,000, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At March 31, 2017 and December 31, 2016, the fair value of Pinnacle Financial's standby letters of credit was $731,000 and $740,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Subordinated Debt and Other bor
Subordinated Debt and Other borrowings | 3 Months Ended |
Mar. 31, 2017 | |
Subordinated Debt and Other borrowings [Abstract] | |
Subordinated Debt and Other borrowings | Note 12. Subordinated Debt and Other borrowings Pinnacle Financial has four wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities. Additionally, Pinnacle Financial has entered into certain other subordinated debt agreements and a revolving credit facility as outlined below and fully described in its Annual Report on Form 10-K (in thousands): Name Date Established Maturity Total Debt Outstanding Interest Rate at March 31, 2017 Coupon Structure Trust preferred securities Trust I December 29, 2003 December 30, 2033 $ 10,310 3.95 % LIBOR + 2.80% Trust II September 15, 2005 September 30, 2035 20,619 2.55 % LIBOR + 1.40% Trust III September 7, 2006 September 30, 2036 20,619 2.80 % LIBOR + 1.65% Trust IV October 31, 2007 September 30, 2037 30,928 3.98 % LIBOR + 2.85% Subordinated Debt Pinnacle Bank Subordinated Notes July 30, 2015 July 30, 2025 60,000 4.875 % Fixed (1) Pinnacle Bank Subordinated Notes March 10, 2016 July 30, 2025 70,000 4.875 % Fixed (1) Avenue Subordinated Notes December 29, 2014 December 29, 2024 20,000 6.750 % Fixed (2) Pinnacle Financial Subordinated Notes November 16, 2016 November 16, 2026 120,000 5.250 % Fixed (3) Other Borrowings Revolving credit facility (4) March 29, 2016 March 27, 2018 - - Debt issuance costs and fair value adjustments (1,627 ) Total subordinated debt and other borrowings $ 350,849 ______________________ (1) (2) (3) (4) Additionally, upon consummation of its proposed merger with BNC, Pinnacle Financial will assume BNC's obligations under its outstanding $60.0 million principal amount of subordinated notes issued in September 2014 that mature in October 2024. These notes bear interest at a rate of 5.5% per annum until September 30, 2019 and may not be repaid prior to that date. Beginning on October 1, 2019, if not redeemed on that date, these notes will bear interest at a floating rate equal to the three-month LIBOR determined on the determination date of the applicable interest period plus 359 basis points. Upon consummation of the proposed merger with BNC, Pinnacle Financial will also assume BNC's obligations under its outstanding subordinated notes with a principal balance of $10.6 million as of December 31, 2016. These notes bear interest at a variable rate of 30-day LIBOR plus 5.00% per annum, with a floor of 5.50% and a cap of 9.50%, and have a maturity date of October 15, 2023. The interest rate for these subordinated notes was 5.61% at December 31, 2016. The $50.5 million in aggregate principal amount of subordinated debentures issued by trust affiliates of BNC in connection with the issuance of trust preferred securities will also be assumed in connection with Pinnacle Financial's proposed merger with BNC. Upon consummation of the proposed merger with BNC, Pinnacle Financial expects that its total assets will exceed $15.0 billion, as a result of a merger which would cause the subordinated debentures Pinnacle Financial and BNC have issued in connection with prior trust preferred securities offerings to cease to qualify as Tier 1 capital under applicable banking regulations. Though these securities would no longer qualify as Tier 1 capital from and after the closing of the merger, Pinnacle Financial believes these subordinated debentures would continue to qualify as Tier 2 capital. |
Summary of Significant Accoun20
Summary of Significant Accounting Policies (Policies) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation These consolidated financial statements include the accounts of Pinnacle Financial and its wholly-owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III and PNFP Statutory Trust IV are affiliates of Pinnacle Financial and are included in these consolidated financial statements pursuant to the equity method of accounting. Significant intercompany transactions and accounts are eliminated in consolidation. |
Use of Estimates | Use of Estimates Recently Adopted Accounting Pronouncements |
Cash Flow Information | Cash Flow Information For the three months ended March 31, 2017 2016 Cash Transactions: Interest paid $ 13,666,769 $ 7,341,784 Income taxes paid, net 230,110 10,556,737 Noncash Transactions: Loans charged-off to the allowance for loan losses 5,161,951 9,226,906 Loans foreclosed upon and transferred to other real estate owned 1,498,198 - Loans foreclosed upon and transferred to other assets 2,593 1,384,511 Common stock issued in connection with equity-method investment - 39,694,036 |
Income Per Common Share | Income Per Common Share The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2017 and 2016: Three months ended March 31, 2017 2016 Basic net income per share calculation: Numerator $ 39,653,047 $ 27,965,264 Denominator 48,022,342 40,082,805 Basic net income per common share $ 0.83 $ 0.70 Diluted net income per share calculation: Numerator $ 39,653,047 $ 27,965,264 Denominator 48,022,342 40,082,805 Dilutive shares contingently issuable 495,578 764,222 Weighted average diluted common shares outstanding 48,517,920 40,847,027 Diluted net income per common share $ 0.82 $ 0.68 On January 27, 2017, Pinnacle Financial completed the issuance and sale of 3,220,000 shares of common stock (including 420,000 shares issued as a result of the underwriter exercising its over-allotment option) in an underwritten public offering, which shares are included in the share count above. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses, were approximately $192.2 million. |
Recently Adopted Accounting Pronouncements | Recently Adopted Accounting Pronouncements — Accounting Standards Update 2016-09 Stock Compensation Improvements to Employee Share-Based Payment Activity |
Subsequent Events | Subsequent Events — |
Summary of Significant Accoun21
Summary of Significant Accounting Policies (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Summary of Significant Accounting Policies [Abstract] | |
Supplemental Cash Flow Information | Cash Flow Information For the three months ended March 31, 2017 2016 Cash Transactions: Interest paid $ 13,666,769 $ 7,341,784 Income taxes paid, net 230,110 10,556,737 Noncash Transactions: Loans charged-off to the allowance for loan losses 5,161,951 9,226,906 Loans foreclosed upon and transferred to other real estate owned 1,498,198 - Loans foreclosed upon and transferred to other assets 2,593 1,384,511 Common stock issued in connection with equity-method investment - 39,694,036 |
Basic and Diluted Earnings Per Share Calculations | The following is a summary of the basic and diluted net income per share calculations for the three months ended March 31, 2017 and 2016: Three months ended March 31, 2017 2016 Basic net income per share calculation: Numerator $ 39,653,047 $ 27,965,264 Denominator 48,022,342 40,082,805 Basic net income per common share $ 0.83 $ 0.70 Diluted net income per share calculation: Numerator $ 39,653,047 $ 27,965,264 Denominator 48,022,342 40,082,805 Dilutive shares contingently issuable 495,578 764,222 Weighted average diluted common shares outstanding 48,517,920 40,847,027 Diluted net income per common share $ 0.82 $ 0.68 On January 27, 2017, Pinnacle Financial completed the issuance and sale of 3,220,000 shares of common stock (including 420,000 shares issued as a result of the underwriter exercising its over-allotment option) in an underwritten public offering, which shares are included in the share count above. The net proceeds of the offering, after deducting the underwriting discount and estimated offering expenses, were approximately $192.2 million. |
Acquisitions (Tables)
Acquisitions (Tables) - Avenue Financial Holdings, Inc. (Avenue) [Member] | 3 Months Ended |
Mar. 31, 2017 | |
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 redeem common stock $ 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 | 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 (4) The (5) The amount represents the (6) The amount represents the |
Equity Method Investment (Table
Equity Method Investment (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Equity Method Investment [Abstract] | |
Equity Method Investments | A summary of BHG's financial position as of March 31, 2017 and December 31, 2016 and results of operations as of and for the three months ended March 31, 2017 and 2016, were as follows (in thousands): As of March 31, 2017 December 31, 2016 Assets $ 244,542 $ 223,246 Liabilities 165,271 139,531 Membership interests 79,271 83,715 Total liabilities and membership $ 244,542 $ 223,246 For the three months ended March 31, 2017 2016 Revenues $ 34,235 $ 31,288 Net income $ 16,012 $ 12,154 At March 31, 2017, technology, trade name and customer relationship intangibles, net of related amortization, of $15.9 million compared to $16.8 million as of December 31, 2016. Amortization expense of $832,000 was included for the three months ended March 31, 2017 compared to $378,000 for the same period in the prior year. Accretion income of $806,000 was included in the three months ended March 31, 2017 compared to $871,000 for the same period in the prior year. During the three months ended March 31, 2017, Pinnacle Financial and Pinnacle Bank received dividends from BHG of $2.5 million in the aggregate, respectively, compared to $4.9 million for the same period in the prior year. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. No loans were purchased from BHG by Pinnacle Bank for the periods ended March 31, 2017 or March 31, 2016. |
Securities (Tables)
Securities (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Securities [Abstract] | |
Summary of Amortized Cost and Fair Value of Available-for-sale and Held-to-maturity Securities | The amortized cost and fair value of securities available-for-sale and held-to-maturity at March 31, 2017 and December 31, 2016 are summarized as follows (in thousands): Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value March 31, 2017: Securities available-for-sale: U.S. Treasury securities $ 250 $ - $ - $ 250 U.S. government agency securities 19,213 1 275 18,939 Mortgage-backed agency securities 1,240,671 4,205 17,899 1,226,977 State and municipal securities 247,210 4,611 2,824 248,997 Asset-backed securities 71,942 108 729 71,321 Corporate notes and other 13,245 152 105 13,292 $ 1,592,531 $ 9,077 $ 21,832 $ 1,579,776 Securities held-to-maturity: State and municipal securities $ 24,998 $ 124 $ 86 $ 25,036 $ 24,998 $ 124 $ 86 $ 25,036 December 31, 2016: Securities available-for-sale: U.S. Treasury securities $ 250 $ - $ - $ 250 U.S. government agency securities 22,306 - 537 21,769 Mortgage-backed agency 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 and other 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 |
Amortized Cost and Fair Value of Debt Securities by Contractual Maturity | The amortized cost and fair value of debt securities as of March 31, 2017 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage- and asset-backed securities since the mortgages and assets underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands): Available-for-sale Held-to-maturity March 31, 2017: Amortized Cost Fair Value Amortized Cost Fair Value Due in one year or less $ 2,519 $ 2,536 $ 445 $ 445 Due in one year to five years 45,041 46,143 8,262 8,285 Due in five years to ten years 128,637 130,524 10,817 10,897 Due after ten years 103,721 102,275 5,474 5,409 Mortgage-backed securities 1,240,671 1,226,977 - - Asset-backed securities 71,942 71,321 - - $ 1,592,531 $ 1,579,776 $ 24,998 $ 25,036 |
Classification of Investments According to Term of Unrealized Losses of Less than Twelve Months or Twelve Months or Longer | At March 31, 2017 and December 31, 2016, the following investments had unrealized losses. The table below classifies these investments according to the term of the unrealized losses of less than twelve months or twelve months or longer (in thousands): Investments with an Unrealized Loss of less than 12 months Investments with an Unrealized Loss of 12 months or longer Total Investments with an Unrealized Loss Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses At March 31, 2017 U.S. Treasury securities $ - $ - $ - $ - $ - $ - U.S. government agency securities 749 1 12,995 274 13,744 275 Mortgage-backed securities 1,009,381 17,214 53,060 685 1,062,441 17,899 State and municipal securities 101,430 2,909 310 1 101,740 2,910 Asset-backed securities 11,008 24 25,928 705 36,936 729 Corporate notes 4,542 105 - - 4,542 105 Total temporarily-impaired securities $ 1,127,110 $ 20,253 $ 92,293 $ 1,665 $ 1,219,403 $ 21,918 At 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 |
Loans and Allowance for Loan 25
Loans and Allowance for Loan Losses (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 March 31, 2017 and December 31, 2016 (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Total March 31, 2017 Accruing loans Pass $ 3,111,795 $ 1,171,131 $ 1,000,453 $ 2,858,856 $ 266,341 $ 8,408,576 Special Mention 39,448 1,620 4,800 37,387 783 84,038 Substandard (1) 26,081 11,867 5,762 65,946 121 109,777 3,177,324 1,184,618 1,011,015 2,962,189 267,245 8,602,391 Impaired loans Nonaccrual loans (2) Substandard-nonaccrual 4,050 8,809 4,112 7,255 822 25,048 Doubtful-nonaccrual - - - 2 - 2 Total nonaccrual loans 4,050 8,809 4,112 7,257 822 25,050 Troubled debt restructurings (3) Pass 210 1,349 - 720 39 2,318 Special Mention - 233 - - - 233 Substandard - 1,366 - 10,674 - 12,040 Total troubled debt restructurings 210 2,948 - 11,394 39 14,591 Total impaired loans 4,260 11,757 4,112 18,651 861 39,641 Total loans $ 3,181,584 $ 1,196,375 $ 1,015,127 $ 2,980,840 $ 268,106 $ 8,642,032 December 31, 2016 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 Nonaccrual loans (2) Substandard-nonaccrual 4,921 8,073 6,613 7,492 475 27,574 Doubtful-nonaccrual - - - 3 - 3 Total nonaccrual loans 4,921 8,073 6,613 7,495 475 27,577 Troubled debt restructurings (3) 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 (1) Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $109.8 million at March 31, 2017, compared to $114.6 million at December 31, 2016. (2) Included in nonaccrual loans at March 31, 2017 and December 31, 2016 are $7.3 million and $8.8 million, respectively, in purchase credit impaired loans acquired with deteriorated credit quality. (3) Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. |
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans | The following table details the recorded investment, unpaid principal balance and related allowance of Pinnacle Financial's nonaccrual loans at March 31, 2017 and December 31, 2016 by loan classification (in thousands): At March 31, 2017 At December 31, 2016 Recorded investment Unpaid principal balances(1) Related allowance(2) Recorded investment Unpaid principal balances (1) Related allowance(2) Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,283 $ 2,280 $ - $ 2,308 $ 2,312 $ - Consumer real estate – mortgage 2,513 2,544 - 2,880 2,915 - Construction and land development 1,028 1,035 - 3,128 3,135 - Commercial and industrial 6,252 6,266 - 6,373 6,407 - Consumer and other - - - - - - Total $ 12,076 $ 12,125 $ - $ 14,689 $ 14,769 $ - Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 1,767 $ 2,465 $ 63 $ 2,613 $ 3,349 $ 59 Consumer real estate – mortgage 6,296 6,883 1,085 5,193 5,775 688 Construction and land development 3,083 3,756 19 3,485 4,154 20 Commercial and industrial 1,006 2,379 220 1,122 2,714 77 Consumer and other 822 942 465 475 851 227 Total $ 12,974 $ 16,425 $ 1,852 $ 12,888 $ 16,843 $ 1,071 Total nonaccrual loans $ 25,050 $ 28,550 $ 1,852 $ 27,577 $ 31,612 $ 1,071 (1) Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. (2) Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. The following table details the average recorded investment and the amount of interest income recognized on a cash basis for the three months ended March 31, 2017 and 2016, respectively, on Pinnacle Financial's nonaccrual loans that remain on the balance sheets as of such date (in thousands): For the three months ended March 31, 2017 2016 Average recorded investment Interest income recognized Average recorded investment Interest income recognized Collateral dependent nonaccrual loans: Commercial real estate – mortgage $ 2,100 $ - $ 3,854 $ - Consumer real estate – mortgage 2,216 - 4,462 - Construction and land development 2,078 49 7,320 31 Commercial and industrial 6,312 - 15,451 - Consumer and other - - 386 - Total $ 12,706 $ 49 $ 31,473 $ 31 Cash flow dependent nonaccrual loans: Commercial real estate – mortgage $ 2,386 $ - $ 1,548 $ - Consumer real estate – mortgage 6,225 - 5,815 - Construction and land development 3,284 - 74 - Commercial and industrial 1,064 - 1,128 - Consumer and other 649 - 3,702 - Total $ 13,608 $ - $ 12,267 $ - Total nonaccrual loans $ 26,314 $ 49 $ 43,740 $ 31 |
Purchase Credit Impaired Loans | Loans acquired with deteriorated credit quality are recorded pursuant to the provisions of ASC 310-30, Loans and Debt Securities Acquired with Deteriorated Credit Quality, and are referred to as purchase credit impaired loans. The following table provides a rollforward of purchase credit impaired loans from December 31, 2016 through March 31, 2017 (in thousands): Gross Contractual Receivable Accretable Yield Nonaccretable Yield Carrying Value December 31, 2016 $ 12,468 $ - $ (3,633 ) $ 8,835 Acquisitions - - - - Year-to-date settlements (1,814 ) - 252 (1,562 ) Additional fundings 5 - - 5 March 31, 2017 $ 10,659 $ - $ (3,381 ) $ 7,278 These loans have been deemed to be collateral dependent and as such, no accretable yield has been recorded for these loans. 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. |
Amount of Troubled Debt Restructuring Categorized by Loan Classification | The Three months ended March 31, 2017 Number of contracts Pre Modification Outstanding Recorded Investment Post Modification Outstanding Recorded Investment, net of related allowance Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 3,457 3,457 Consumer and other - - - 1 $ 3,457 $ 3,457 2016 Commercial real estate – mortgage - $ - $ - Consumer real estate – mortgage - - - Construction and land development - - - Commercial and industrial 1 2,333 1,536 Consumer and other - - - 1 $ 2,333 $ 1,536 During the three months ended March 31, 2017 and 2016, Pinnacle Financial did not have any troubled debt restructurings that subsequently defaulted within twelve months of the restructuring. |
Past Due Balances by Loan Classification | The table below presents past due balances by loan classification and segment at March 31, 2017 and December 31, 2016, allocated between accruing and nonaccrual status (in thousands): March 31, 2017 30-89 days past due and accruing 90 days or more past due and accruing Total past due and accruing Nonaccrual (1) Current and accruing Total Loans Commercial real estate: Owner-occupied $ 1,056 $ - $ 1,056 $ 3,401 $ 1,395,055 $ 1,399,512 All other 30 - 30 649 1,781,393 1,782,072 Consumer real estate – mortgage 1,917 49 1,966 8,809 1,185,600 1,196,375 Construction and land development 1,350 - 1,350 4,112 1,009,665 1,015,127 Commercial and industrial 3,514 - 3,514 7,258 2,970,068 2,980,840 Consumer and other 5,706 1,062 6,768 821 260,517 268,106 $ 13,573 $ 1,111 $ 14,684 $ 25,050 $ 8,602,298 $ 8,642,032 December 31, 2016 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 (1) Approximately $15.0 million and $16.7 million of nonaccrual loans as of March 31, 2017 and December 31, 2016, respectively, were performing pursuant to their contractual terms at those dates. |
Details of Changes in the Allowance for Loan Losses | The following table shows the allowance allocation by loan classification and accrual status at March 31, 2017 and December 31, 2016 (in thousands): Impaired Loans Accruing Loans Nonaccrual Loans Troubled Debt Restructurings (1) Total Allowance for Loan Losses March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 March 31, 2017 December 31, 2016 Commercial real estate –mortgage $ 14,105 $ 13,595 $ 63 $ 59 $ - $ 1 $ 14,168 $ 13,655 Consumer real estate – mortgage 6,132 5,874 1,085 688 2 2 7,219 6,564 Construction and land development 4,422 3,604 19 20 - - 4,441 3,624 Commercial and industrial 22,650 24,648 220 77 42 18 22,912 24,743 Consumer and other 8,012 9,293 465 227 - - 8,477 9,520 Unallocated - - - - - - 1,133 874 $ 55,321 $ 57,014 $ 1,852 $ 1,071 $ 44 $ 21 $ 58,350 $ 58,980 (1) Troubled debt restructurings of $14.6 million and $15.0 million as of both March 31, 2017 and December 31, 2016, 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 for the three months ended March 31, 2017 and 2016, respectively, by loan classification (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total Three months ended March 31, 2017: Balance at December 31, 2016 $ 13,655 $ 6,564 $ 3,624 $ 24,743 $ 9,520 $ 874 $ 58,980 Charged-off loans - (61 ) - (1,158 ) (3,943 ) - (5,162 ) Recovery of previously charged-off loans 6 170 33 140 532 - 881 Provision for loan losses 507 546 784 (813 ) 2,368 259 3,651 Balance at March 31, 2017 $ 14,168 $ 7,219 $ 4,441 $ 22,912 $ 8,477 $ 1,133 $ 58,350 Three months ended March 31, 2016: Balance at December 31, 2015 $ 15,513 $ 7,220 $ 2,903 $ 23,643 $ 15,616 $ 537 $ 65,432 Charged-off loans - (199 ) - (1,624 ) (7,404 ) - (9,227 ) Recovery of previously charged-off loans 58 85 25 1,433 540 - 2,141 Provision for loan losses (2,020 ) 63 1,014 692 3,106 1,038 3,893 Balance at March 31, 2016 $ 13,551 $ 7,169 $ 3,942 $ 24,144 $ 11,858 $ 1,575 $ 62,239 The following table details the allowance for loan losses and recorded investment in loans by loan classification and by impairment evaluation method as of March 31, 2017 and December 31, 2016, respectively (in thousands): Commercial real estate - mortgage Consumer real estate - mortgage Construction and land development Commercial and industrial Consumer and other Unallocated Total March 31, 2017 Allowance for Loan Losses: Collectively evaluated for impairment $ 14,105 $ 6,132 $ 4,422 $ 22,650 $ 8,012 $ 1,133 $ 56,454 Individually evaluated for impairment 63 1,087 19 262 465 - 1,896 Loans acquired with deteriorated credit quality - - - - - - - Total allowance for loan losses $ 14,168 $ 7,219 $ 4,441 $ 22,912 $ 8,477 $ 1,133 $ 58,350 Loans: Collectively evaluated for impairment $ 3,177,324 $ 1,184,618 $ 1,011,015 $ 2,962,189 $ 267,245 $ 8,602,391 Individually evaluated for impairment 2,714 9,276 1,094 18,418 861 32,363 Loans acquired with deteriorated credit quality 1,546 2,481 3,018 233 - 7,278 Total loans $ 3,181,584 $ 1,196,375 $ 1,015,127 $ 2,980,840 $ 268,106 $ 8,642,032 December 31, 2016 Allowance for Loan Losses: Collectively evaluated for impairment $ 13,595 $ 5,874 $ 3,604 $ 24,648 $ 9,293 $ 874 $ 57,888 Individually evaluated for impairment 60 690 20 95 227 - 1,092 Loans acquired with deteriorated credit quality - - - - - - - Total allowance for loan losses $ 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 Total loans $ 3,193,496 $ 1,185,917 $ 912,673 $ 2,891,710 $ 266,129 $ 8,449,925 |
Summary of Loan Portfolio Credit Risk Exposure | To monitor concentration risk, Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications. Pinnacle Financial has a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at March 31, 2017 with the comparative exposures for December 31, 2016 (in thousands): March 31, 2017 Outstanding Principal Balances Unfunded Commitments Total exposure Total Exposure at December 31, 2016 Lessors of nonresidential buildings $ 1,302,962 $ 359,869 $ 1,662,831 $ 1,701,853 Lessors of residential buildings 487,960 291,045 779,005 874,234 |
Income Taxes (Tables)
Income Taxes (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Income Taxes [Abstract] | |
Rollforward of uncertain tax positions | The unrecognized tax benefit related to uncertain tax positions related to State income tax filings was $1.3 million at March 31, 2017 compared to $196,000 at March 31, 2016. No change was recorded to the unrecognized tax benefit related to uncertain tax positions in each of the three month periods ended March 31, 2017 and 2016. |
Stock Options, Stock Apprecia27
Stock Options, Stock Appreciation Rights and Restricted Shares (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | |
Summary of Stock Option and Stock Appreciation Rights Activity | Common Stock Options A summary of the stock option activity within the equity incentive plans during the three months ended March 31, 2017 and information regarding expected vesting, contractual terms remaining, intrinsic values and other matters is as follows: Number Weighted- Average Exercise Price Weighted- Average Contractual Remaining Term (in years) Aggregate Intrinsic Value (000's) Outstanding at December 31, 2016 550,490 $ 20.75 2.61 $ 26,728 (1) Granted - Exercised (3) (149,213 ) Forfeited - Outstanding at March 31, 2017 401,277 $ 20.93 3.16 $ 18,265 (2) Options exercisable at March 31, 2017 401,277 $ 20.93 3.16 $ 18,265 (2) (1) The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $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 aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $66.45 per common share at March 31, 2017 for the 401,277 options that were in-the-money at March 31, 2017. (3) Includes 750 stock options which were exercised in a stock swap transaction which settled in 277 shares of Pinnacle Financial common stock. Compensation costs related to stock options granted under Pinnacle Financial's equity incentive plan have been fully recognized and all outstanding option awards are fully vested. |
Summary of Activity for Unvested Restricted Share Awards | Restricted Share Awards A summary of activity for unvested restricted share awards for the three months ended March 31, 2017 is as follows: Number Grant Date Weighted-Average Cost Unvested at December 31, 2016 820,539 $ 36.47 Shares awarded 80,745 Conversion of previously awarded restricted share units to restricted share awards 43,680 Restrictions lapsed and shares released to associates/directors (190,488 ) Shares forfeited (1) (5,986 ) Unvested at March 31, 2017 748,490 $ 43.44 (1) Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. Pinnacle Financial has granted restricted share awards to associates, executive management and outside directors with a combination of time and, in the case of executive management, performance vesting criteria. The following table outlines restricted stock grants that were awarded, grouped by similar vesting criteria, during the three months ended March 31, 2017: Grant Year Group (1) Vesting Period in years Shares awarded Restrictions Lapsed and shares released to participants Shares Forfeited by participants (5) Shares Unvested Time Based Awards 2017 Associates (2) 5 68,850 61 487 68,302 Performance Based Awards 2017 Leadership team (3) 3 (3) 43,680 - - 43,680 Outside Director Awards (4) 2017 Outside directors 1 11,895 - - 11,895 (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) Reflects conversion of restricted share units issued in prior years to restricted share awards. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain soundness targets over each year of the subsequent vesting period. See further details of these awards under the caption "Restricted Share Units" below. (4) Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on February 28, 2017 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. (5) These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended March 31, 2017. 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 | Restricted Share Units The following table details the Restricted Share Unit awards outstanding at March 31, 2017: Units Awarded Grant year Named Executive Officers (NEOs) (1) Leadership Team other than NEOs Applicable Performance Periods associated with each tranche (fiscal year) Service period per tranche (in years) Subsequent holding period per tranche (in years) Shares settled into RSAs as of period end (2) 2017 72,537-109,339 24,916 2017 2 3 N/A 2018 2 2 N/A 2019 2 1 N/A 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 21,840 2016 2 N/A 21,840 (1) The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. (2) Restricted share unit awards granted in 2017, 2016 and 2015 will be earned and settled in shares of Pinnacle Financial common stock, for which additional forfeiture restrictions may lapse based on Pinnacle Financial's performance in future periods. (3) Restrictions on half of the shares previously converted to RSAs will lapse commensurate with the filing of the Form 10-K for the year ended December 31, 2017 and 2018, respectively. |
Regulatory Matters (Tables)
Regulatory Matters (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
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 was 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 March 31, 2017, 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 At March 31, 2017 Total capital to risk weighted assets: Pinnacle Financial $ 1,435,331 13.7 % $ 839,196 8.0 % $NA NA Pinnacle Bank $ 1,349,946 12.9 % $ 836,884 8.0 % $ 1,046,105 10.0 % Tier 1 capital to risk weighted assets: Pinnacle Financial $ 1,107,531 10.6 % $ 629,397 6.0 % $NA NA Pinnacle Bank $ 1,162,969 11.1 % $ 627,663 6.0 % $ 836,884 8.0 % Common equity Tier 1 capital to risk weighted assets Pinnacle Financial $ 1,027,408 9.8 % $ 472,047 4.5 % $NA NA Pinnacle Bank $ 1,162,846 11.1 % $ 470,747 4.5 % $ 679,968 6.5 % Tier 1 capital to average assets (*): Pinnacle Financial $ 1,107,531 10.3 % $ 428,432 4.0 % $NA NA Pinnacle Bank $ 1,162,969 10.9 % $ 427,263 4.0 % $ 534,078 5.0 % (*) Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments (Tables)
Derivative Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Derivative Instruments [Abstract] | |
Summary of Interest Rate Swaps | Non-hedge derivatives Pinnacle Financial enters into interest rate swaps (swaps) to facilitate customer transactions and meet their financing needs. Upon entering into these instruments to meet customer needs, Pinnacle Financial enters into offsetting positions in order to minimize the risk to Pinnacle Financial. These swaps are derivatives, but are not designated as hedging instruments. A summary of Pinnacle Financial's interest rate swaps related to customers as of March 31, 2017 and December 31, 2016 is included in the following table (in thousands): March 31, 2017 December 31, 2016 Notional Amount Estimated Fair Value Notional Amount Estimated Fair Value Interest rate swap agreements: Pay fixed / receive variable swaps $ 664,946 $ 14,856 $ 666,572 $ 16,004 Pay variable / receive fixed swaps 664,946 (14,978 ) 666,572 (16,138 ) Total $ 1,329,892 $ (122 ) $ 1,333,144 $ (134 ) |
Schedule of Derivative Instruments | Hedge derivatives A summary of Pinnacle Financial's cash flow hedge relationships as of March 31, 2017 and December 31, 2016 are as follows (in thousands): March 31, 2017 December 31, 2016 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 $ (579 ) $ (352 ) $ (727 ) $ (442 ) Interest Rate Swap 33,000 3 month LIBOR 2.646 % April 2016-April 2022 (1,140 ) (693 ) (1,304 ) (792 ) Interest Rate Swap 33,000 3 month LIBOR 2.523 % Oct. 2016-Oct. 2020 (910 ) (553 ) (1,081 ) (657 ) Interest Rate Swap 33,000 3 month LIBOR 2.992 % Oct. 2017-Oct. 2021 (1,160 ) (705 ) (1,200 ) (729 ) Interest Rate Swap 34,000 3 month LIBOR 3.118 % April 2018-July 2022 (1,201 ) (730 ) (1,222 ) (743 ) Interest Rate Swap 34,000 3 month LIBOR 3.158 % July 2018- Oct. 2022 (1,161 ) (706 ) (1,198 ) (728 ) $ 200,000 $ (6,151 ) $ (3,739 ) $ (6,732 ) $ (4,091 ) (1) No cash will be exchanged prior to the beginning of the term. The following outlines the interest rate swap agreements in place at March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 December 31, 2016 Forecasted Notional Amount Receive Rate Pay Rate Term (2) Asset/ (Liabilities) Unrealized Gain 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 $ 274 $ 167 $ 395 $ 240 Interest Rate Swap 25,000 2.270 % 1 month LIBOR July 2014 - July 2022 468 284 610 371 Interest Rate Swap 27,500 2.420 % 1 month LIBOR July 2014 - July 2023 713 433 874 531 Interest Rate Swap 30,000 2.500 % 1 month LIBOR July 2014 - July 2024 750 456 900 547 Interest Rate Swap - 1.048 % 1 month LIBOR Aug. 2015-Aug. 2018 - - - - Interest Rate Swap - 1.281 % 1 month LIBOR Aug. 2015-Aug. 2019 - - - - Interest Rate Swap 15,000 1.470 % 1 month LIBOR Aug. 2015-Aug. 2020 (125 ) (76 ) (75 ) (46 ) $ 125,000 $ 2,080 $ 1,264 $ 2,704 $ 1,643 |
Fair Value of Financial Instr30
Fair Value of Financial Instruments (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Fair Value of Financial Instruments [Abstract] | |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present financial instruments measured at fair value on a recurring basis as of March 31, 2017 and December 31, 2016, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands): March 31, 2017 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 18,939 - 18,939 - Mortgage-backed agency securities 1,226,977 - 1,226,977 - State and municipal securities 248,997 - 248,997 - Agency-backed securities 71,321 - 71,321 - Corporate notes and other 13,292 - 13,292 - Total investment securities available-for-sale $ 1,579,776 $ - $ 1,579,776 $ - Other investments 10,492 - - 10,492 Other assets 14,662 - 14,662 - Total assets at fair value $ 1,604,930 $ - $ 1,594,438 $ 10,492 Other liabilities $ 15,404 $ - $ 15,404 $ - Total liabilities at fair value $ 15,404 $ - $ 15,404 $ - December 31, 2016 Investment securities available-for-sale: U.S. treasury securities $ 250 $ - $ 250 $ - U.S. government agency securities 21,769 - 21,769 - Mortgage-backed agency securities 976,626 - 976,626 - State and municipal securities 212,720 - 212,720 - Agency-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 - Other 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 $ - |
Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis | The following table presents assets measured at fair value on a nonrecurring basis as of March 31, 2017 and December 31, 2016 (in thousands): March 31, 2017 Total carrying value in the consolidated balance sheet Quoted market prices in an active market (Level 1) Models with significant observable market parameters (Level 2) Models with significant unobservable market parameters (Level 3) Total losses for the year-to-date period then ended Other real estate owned $ 6,235 $ - $ - $ 6,235 $ (78 ) Nonaccrual loans, net (1) 23,198 - - 23,198 (1,773 ) Total $ 29,433 $ - $ - $ 29,433 $ (1,851 ) December 31, 2016 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 ) (1) Amount is net of valuation allowance of $1.9 million and $1.1 million at March 31, 2017 and December 31, 2016, 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 three months ended March 31, 2017 (including the change in fair value) 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 three months ended March 31, 2017 2016 Other assets Other liabilities Other assets Other liabilities Fair value, beginning of period $ 10,478 $ - $ 9,764 $ - Total realized gains included in income 197 - 177 - Changes in unrealized gains/losses included in other comprehensive income for assets and liabiliaties still held at March 31 - - - - Purchases 120 - 325 - Issuances - - - - Settlements (303 ) - (138 ) - Transfers out of Level 3 - - - - Fair value, end of period 10,492 - 10,128 - Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at March 31 $ 197 $ - $ 177 - |
Carrying Amounts, Estimated Fair Value and Placement in the Fair Value Hierarchy of Financial Instruments | The following table presents the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at March 31, 2017 and December 31, 2016. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash and cash equivalents, the carrying amount is a reasonable estimate of fair value due to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands). (in thousands) March 31, 2017 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 $ 24,998 $ 25,036 $ - $ 25,036 $ - Loans, net 8,583,683 8,361,595 - - 8,361,595 Mortgage loans held-for-sale 70,598 71,799 - 71,799 - Loans held-for-sale 15,354 15,611 - 15,611 - Financial liabilities: Deposits and securities sold under agreements to repurchase 9,351,754 9,071,202 - - 9,071,202 Federal Home Loan Bank advances 181,264 181,564 - - 181,564 Subordinated debt and other borrowings 350,849 330,418 - - 330,418 Federal funds purchased 50,000 50,000 - - - Off-balance sheet instruments: Commitments to extend credit (2) 3,338,086 347 - - 347 Standby letters of credit (3) 128,449 731 - - 731 December 31, 2016 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 - 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 (1) Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. (2) At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at March 31, 2017 and December 31, 2016, Pinnacle Financial included in other liabilities $347,000 and $383,000, respectively, representing the inherent risks associated with these off-balance sheet commitments. (3) At March 31, 2017 and December 31, 2016, the fair value of Pinnacle Financial's standby letters of credit was $731,000 and $740,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
Subordinated Debt and Other b31
Subordinated Debt and Other borrowings (Tables) | 3 Months Ended |
Mar. 31, 2017 | |
Subordinated Debt and Other borrowings [Abstract] | |
Schedule of Long-term Debt Instruments | Pinnacle Financial has four wholly-owned subsidiaries that are statutory business trusts created for the exclusive purpose of issuing 30-year capital trust preferred securities. Additionally, Pinnacle Financial has entered into certain other subordinated debt agreements and a revolving credit facility as outlined below and fully described in its Annual Report on Form 10-K (in thousands): Name Date Established Maturity Total Debt Outstanding Interest Rate at March 31, 2017 Coupon Structure Trust preferred securities Trust I December 29, 2003 December 30, 2033 $ 10,310 3.95 % LIBOR + 2.80% Trust II September 15, 2005 September 30, 2035 20,619 2.55 % LIBOR + 1.40% Trust III September 7, 2006 September 30, 2036 20,619 2.80 % LIBOR + 1.65% Trust IV October 31, 2007 September 30, 2037 30,928 3.98 % LIBOR + 2.85% Subordinated Debt Pinnacle Bank Subordinated Notes July 30, 2015 July 30, 2025 60,000 4.875 % Fixed (1) Pinnacle Bank Subordinated Notes March 10, 2016 July 30, 2025 70,000 4.875 % Fixed (1) Avenue Subordinated Notes December 29, 2014 December 29, 2024 20,000 6.750 % Fixed (2) Pinnacle Financial Subordinated Notes November 16, 2016 November 16, 2026 120,000 5.250 % Fixed (3) Other Borrowings Revolving credit facility (4) March 29, 2016 March 27, 2018 - - Debt issuance costs and fair value adjustments (1,627 ) Total subordinated debt and other borrowings $ 350,849 ______________________ (1) (2) (3) (4) |
Summary of Significant Accoun32
Summary of Significant Accounting Policies (Details) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | ||
Cash Transactions [Abstract] | |||
Interest paid | $ 13,666,769 | $ 7,341,784 | |
Income taxes paid | 230,110 | 10,556,737 | |
Noncash Transactions [Abstract] | |||
Loans charged-off to the allowance for loan losses | 5,161,951 | 9,226,906 | |
Loans foreclosed upon with repossessions transferred to other real estate | 1,498,198 | 0 | |
Loans foreclosed upon and transferred to other assets | 2,593 | 1,384,511 | |
Common stock issued in connection with acquisitions | 0 | 39,694,036 | |
Basic net income per share calculation [Abstract] | |||
Numerator - Net income | $ 39,653,047 | $ 27,965,264 | |
Denominator - Average common shares outstanding (in shares) | 48,022,342 | 40,082,805 | |
Basic net income per share (in dollars per share) | $ 0.83 | $ 0.70 | |
Diluted net income per share calculation [Abstract] | |||
Numerator - Net income | $ 39,653,047 | $ 27,965,264 | |
Denominator - Average common shares outstanding (in shares) | 48,022,342 | 40,082,805 | |
Dilutive shares (in shares) | [1] | 495,578 | 764,222 |
Average diluted common shares outstanding (in shares) | 48,517,920 | 40,847,027 | |
Diluted net income per share (in dollars per share) | $ 0.82 | $ 0.68 | |
Bankers Healthcare Group, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Ownership percentage equity method investment | 49.00% | ||
[1] | Approximately 518,152 restricted share units are not included in the weighted-average shares outstanding as they are deemed to be contingently issuable. Additionally, for the periods ended September 30, 2016 and 2015, there were no anti-dilutive share-based awards outstanding. |
Acquisitions (Details)
Acquisitions (Details) - USD ($) | Jun. 30, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | |
Allocation of total consideration paid [Abstract] | ||||
Goodwill | $ 551,546,341 | $ 551,593,796 | ||
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 | [1] | 163,399,000 | ||
Loans | [2] | 952,530,000 | ||
Mortgage loans held for sale | 3,310,000 | |||
Core deposit intangible | [3] | 8,845,000 | ||
Other assets | [4] | 56,503,000 | ||
Total Assets | 1,224,072,000 | |||
Liabilities [Abstract] | ||||
Interest-bearing deposits | [5] | 743,035,000 | ||
Non-interest bearing deposits | 223,685,000 | |||
Borrowings | [6] | 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 | [1] | 163,862,000 | ||
Loans | [2] | 980,319,000 | ||
Mortgage loans held for sale | 3,310,000 | |||
Core deposit intangible | [3] | 0 | ||
Other assets | [4] | 47,729,000 | ||
Total Assets | 1,234,705,000 | |||
Liabilities [Abstract] | ||||
Interest-bearing deposits | [5] | 741,635,000 | ||
Non-interest bearing deposits | 223,685,000 | |||
Borrowings | [6] | 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 | [1] | (463,000) | ||
Loans | [2] | (27,789,000) | ||
Mortgage loans held for sale | 0 | |||
Core deposit intangible | [3] | 8,845,000 | ||
Other assets | [4] | 8,774,000 | ||
Total Assets | (10,633,000) | |||
Liabilities [Abstract] | ||||
Interest-bearing deposits | [5] | 1,400,000 | ||
Non-interest bearing deposits | 0 | |||
Borrowings | [6] | 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 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 an 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 deposits intangible asset representing the intangible value of the deposit base created in the acquisition. | |||
[4] | The amount represents the deferred tax asset recognized on the fair value adjustment of Avenue's acquired assets and assumed liabilities as well the fair value adjustment for property and equipment. | |||
[5] | The adjustment is 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 adjustment is 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) - USD ($) | 3 Months Ended | ||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |
Schedule of Equity Method Investments [Line Items] | |||
Goodwill | $ 551,546,341 | $ 551,593,796 | |
Technology, trade name and customer relationship intangibles | 13,907,909 | 15,104,038 | |
Amortization of Intangible Assets | 1,196,129 | $ 873,215 | |
Dividends received from equity method investment | 2,450,000 | 4,920,103 | |
Bankers Healthcare Group, LLC [Member] | |||
Schedule of Equity Method Investments [Line Items] | |||
Technology, trade name and customer relationship intangibles | 15,900,000 | 16,800,000 | |
Amortization of Intangible Assets | 832,000 | 378,000 | |
Accretion income | 806,000 | 871,000 | |
Dividends received from equity method investment | 2,500,000 | 4,900,000 | |
Loan face amount | 0 | 0 | |
Summarized financial information [Abstract] | |||
Assets | 244,542,000 | 223,246,000 | |
Liabilities | 165,271,000 | 139,531,000 | |
Membership interests | 79,271,000 | 83,715,000 | |
Total liabilities and membership | 244,542,000 | $ 223,246,000 | |
Summarized financial information, Income statement [Abstract] | |||
Revenues | 34,235,000 | 31,288,000 | |
Net income | $ 16,012,000 | $ 12,154,000 |
Securities (Details)
Securities (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 |
Securities available-for-sale [Abstract] | ||
Amortized Cost | $ 1,592,531,000 | $ 1,310,071,000 |
Gross Unrealized Gains | 9,077,000 | 8,557,000 |
Gross Unrealized Losses | 21,832,000 | 20,082,000 |
Fair Value | 1,579,776,402 | 1,298,546,056 |
Available-for-sale, Amortized Cost [Abstract] | ||
Due in one year or less | 2,519,000 | |
Due in one year to five years | 45,041,000 | |
Due in five years to ten years | 128,637,000 | |
Due after ten years | 103,721,000 | |
Mortgage-backed securities | 1,240,671,000 | |
Asset-backed securities | 71,942,000 | |
Amortized Cost | 1,592,531,000 | |
Available-for-sale, Fair Value [Abstract] | ||
Due in one year or less | 2,536,000 | |
Due in one year to five years | 46,143,000 | |
Due in five years to ten years | 130,524,000 | |
Due after ten years | 102,275,000 | |
Mortgage-backed securities | 1,226,977,000 | |
Asset-backed securities | 71,321,000 | |
Available-for-sale Securities | 1,579,776,402 | 1,298,546,056 |
Securities pledged as collateral to secure public funds and other deposits or securities sold under agreements to repurchase | 1,045,000 | |
Secured borrowing under agreement to repurchase | 71,200,000 | |
Securities held-to-maturity [Abstract] | ||
Amortized Cost | 24,997,568 | 25,251,316 |
Gross Unrealized Gains | 124,000 | 87,000 |
Gross Unrealized Losses | 86,000 | 105,000 |
Fair Value | 25,035,844 | 25,233,254 |
Held-to-maturity, Amortized Cost [Abstract] | ||
Due in one year or less | 445,000 | |
Due in one year to five years | 8,262,000 | |
Due in five years to ten years | 10,817,000 | |
Due after ten years | 5,474,000 | |
Mortgage-backed securities | 0 | |
Asset-backed securities | 0 | |
Amortized Cost | 24,997,568 | 25,251,316 |
Held-to-maturity, Fair Value [Abstract] | ||
Due in one year or less | 445,000 | |
Due in one year to five years | 8,285,000 | |
Due in five years to ten years | 10,897,000 | |
Due after ten years | 5,409,000 | |
Mortgage-backed securities | 0 | |
Asset-backed securities | 0 | |
Fair Value | 25,035,844 | 25,233,254 |
Securities Pledged as Collateral [Member] | ||
Available-for-sale, Fair Value [Abstract] | ||
Secured borrowing under agreement to repurchase | 71,200,000 | |
US Treasury Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 250,000 | 250,000 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 250,000 | 250,000 |
Available-for-sale, Fair Value [Abstract] | ||
Available-for-sale Securities | 250,000 | 250,000 |
U.S. Government Agency Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 19,213,000 | 22,306,000 |
Gross Unrealized Gains | 1,000 | 0 |
Gross Unrealized Losses | 275,000 | 537,000 |
Fair Value | 18,939,000 | 21,769,000 |
Available-for-sale, Fair Value [Abstract] | ||
Available-for-sale Securities | 18,939,000 | 21,769,000 |
Mortgage-backed Agency Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 1,240,671,000 | 988,008,000 |
Gross Unrealized Gains | 4,205,000 | 4,304,000 |
Gross Unrealized Losses | 17,899,000 | 15,686,000 |
Fair Value | 1,226,977,000 | 976,626,000 |
Available-for-sale, Fair Value [Abstract] | ||
Available-for-sale Securities | 1,226,977,000 | 976,626,000 |
State and Municipal Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 247,210,000 | 211,581,000 |
Gross Unrealized Gains | 4,611,000 | 4,103,000 |
Gross Unrealized Losses | 2,824,000 | 2,964,000 |
Fair Value | 248,997,000 | 212,720,000 |
Available-for-sale, Fair Value [Abstract] | ||
Available-for-sale Securities | 248,997,000 | 212,720,000 |
Asset-backed Securities [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 71,942,000 | 79,318,000 |
Gross Unrealized Gains | 108,000 | 111,000 |
Gross Unrealized Losses | 729,000 | 849,000 |
Fair Value | 71,321,000 | 78,580,000 |
Available-for-sale, Fair Value [Abstract] | ||
Available-for-sale Securities | 71,321,000 | 78,580,000 |
Corporate Notes and Other [Member] | ||
Securities available-for-sale [Abstract] | ||
Amortized Cost | 13,245,000 | 8,608,000 |
Gross Unrealized Gains | 152,000 | 39,000 |
Gross Unrealized Losses | 105,000 | 46,000 |
Fair Value | 13,292,000 | 8,601,000 |
Available-for-sale, Fair Value [Abstract] | ||
Available-for-sale Securities | 13,292,000 | 8,601,000 |
State and Municipal Securities [Member] | ||
Securities held-to-maturity [Abstract] | ||
Gross Unrealized Gains | 124,000 | 87,000 |
Gross Unrealized Losses | 86,000 | 105,000 |
Fair Value | 25,035,844 | 25,233,254 |
Held-to-maturity, Fair Value [Abstract] | ||
Fair Value | $ 25,035,844 | $ 25,233,254 |
Securities, Available-for-sale
Securities, Available-for-sale (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 |
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | $ 1,127,110 | $ 907,810 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 20,253 | 18,219 |
Investments with an unrealized loss of 12 months or longer, fair value | 92,293 | 98,377 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 1,665 | 1,968 |
Total investments with an unrealized loss, fair value | 1,219,403 | 1,006,187 |
Total investments with an unrealized loss, unrealized losses | 21,918 | 20,187 |
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 | 749 | 0 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 1 | 0 |
Investments with an unrealized loss of 12 months or longer, fair value | 12,995 | 20,820 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 274 | 537 |
Total investments with an unrealized loss, fair value | 13,744 | 20,820 |
Total investments with an unrealized loss, unrealized losses | 275 | 537 |
Mortgage-backed Securities [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 1,009,381 | 801,213 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 17,214 | 15,073 |
Investments with an unrealized loss of 12 months or longer, fair value | 53,060 | 43,148 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 685 | 613 |
Total investments with an unrealized loss, fair value | 1,062,441 | 844,361 |
Total investments with an unrealized loss, unrealized losses | 17,899 | 15,686 |
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 | 101,430 | 87,277 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 2,909 | 3,068 |
Investments with an unrealized loss of 12 months or longer, fair value | 310 | 312 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 1 | 1 |
Total investments with an unrealized loss, fair value | 101,740 | 87,589 |
Total investments with an unrealized loss, unrealized losses | 2,910 | 3,069 |
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 | 11,008 | 14,510 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 24 | 32 |
Investments with an unrealized loss of 12 months or longer, fair value | 25,928 | 34,097 |
Investments with an unrealized loss of 12 months or longer, unrealized losses | 705 | 817 |
Total investments with an unrealized loss, fair value | 36,936 | 48,607 |
Total investments with an unrealized loss, unrealized losses | 729 | 849 |
Corporate Notes [Member] | ||
Available-for-sale securities, continuous unrealized loss position [Abstract] | ||
Investments with an unrealized loss of less than 12 months, fair value | 4,542 | 4,810 |
Investments with an unrealized loss of less than 12 months, unrealized losses | 105 | 46 |
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 | 4,542 | 4,810 |
Total investments with an unrealized loss, unrealized losses | $ 105 | $ 46 |
Loans and Allowance for Loan 37
Loans and Allowance for Loan Losses (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | |||
Loans and Allowance for Loan Losses [Abstract] | |||||
Percentage of loan portfolio as commercial loan | 78.00% | ||||
Risk rated loans | $ 500,000 | ||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,642,032,280 | $ 8,449,924,736 | |||
Potential problem loans not included in nonperforming assets | 109,800,000 | 114,600,000 | |||
Estimated increase in interest income if nonaccrual loans had been on accrual status | 640,000 | $ 280,000 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 7,278,000 | 8,835,000 | |||
Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,181,584,000 | 3,193,496,000 | |||
Commercial Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 1,546,000 | 2,384,000 | |||
Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,196,375,000 | 1,185,917,000 | |||
Consumer Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 2,481,000 | 2,520,000 | |||
Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,015,127,000 | 912,673,000 | |||
Construction and Land Development [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 3,018,000 | 3,408,000 | |||
Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,980,840,000 | 2,891,710,000 | |||
Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 233,000 | 523,000 | |||
Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 268,106,000 | 266,129,000 | |||
Consumer and Other [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Notes receivable, net | 0 | 0 | |||
Accruing Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,602,391,000 | 8,407,340,000 | |||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,177,324,000 | 3,188,362,000 | |||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,184,618,000 | 1,174,456,000 | |||
Accruing Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,011,015,000 | 906,053,000 | |||
Accruing Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,962,189,000 | 2,872,856,000 | |||
Accruing Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 267,245,000 | 265,613,000 | |||
Accruing Loans [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 8,408,576,000 | 8,240,473,000 | |||
Accruing Loans [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 3,111,795,000 | 3,137,239,000 | |||
Accruing Loans [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,171,131,000 | 1,159,003,000 | |||
Accruing Loans [Member] | Pass [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,000,453,000 | 897,549,000 | |||
Accruing Loans [Member] | Pass [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,858,856,000 | 2,782,000,000 | |||
Accruing Loans [Member] | Pass [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 266,341,000 | 264,682,000 | |||
Accruing Loans [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 84,038,000 | 52,228,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 39,448,000 | 21,449,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 1,620,000 | 1,620,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 4,800,000 | 2,716,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 37,387,000 | 25,641,000 | |||
Accruing Loans [Member] | Special Mention [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 783,000 | 802,000 | |||
Accruing Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [1] | 109,777,000 | 114,639,000 | ||
Accruing Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [1] | 26,081,000 | 29,674,000 | ||
Accruing Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [1] | 11,867,000 | 13,833,000 | ||
Accruing Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [1] | 5,762,000 | 5,788,000 | ||
Accruing Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [1] | 65,946,000 | 65,215,000 | ||
Accruing Loans [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [1] | 121,000 | 129,000 | ||
Nonaccrual Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 25,050,000 | 27,577,000 | ||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 4,050,000 | 4,921,000 | ||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 8,809,000 | 8,073,000 | ||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 4,112,000 | 6,613,000 | ||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 7,257,000 | 7,495,000 | ||
Nonaccrual Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 822,000 | 475,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 25,048,000 | 27,574,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 4,050,000 | 4,921,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 8,809,000 | 8,073,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 4,112,000 | 6,613,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 7,255,000 | 7,492,000 | ||
Nonaccrual Loans [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 822,000 | 475,000 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 2,000 | 3,000 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 0 | 0 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 2,000 | 3,000 | ||
Nonaccrual Loans [Member] | Doubtful [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [2] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 14,591,000 | 15,008,000 | [3] | ||
Troubled Debt Restructurings [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 210,000 | 213,000 | [3] | ||
Troubled Debt Restructurings [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 2,948,000 | 3,388,000 | [3] | ||
Troubled Debt Restructurings [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 0 | 7,000 | [3] | ||
Troubled Debt Restructurings [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 11,394,000 | 11,359,000 | [3] | ||
Troubled Debt Restructurings [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | 39,000 | 41,000 | [3] | ||
Troubled Debt Restructurings [Member] | Pass [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 2,318,000 | 2,332,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 210,000 | 213,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 1,349,000 | 1,358,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 7,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 720,000 | 713,000 | ||
Troubled Debt Restructurings [Member] | Pass [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 39,000 | 41,000 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 233,000 | 236,000 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 233,000 | 236,000 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Special Mention [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 12,040,000 | 12,440,000 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 1,366,000 | 1,794,000 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 10,674,000 | 10,646,000 | ||
Troubled Debt Restructurings [Member] | Substandard [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 0 | 0 | ||
Impaired Loans [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 39,641,000 | 42,585,000 | ||
Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 4,260,000 | 5,134,000 | ||
Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 11,757,000 | 11,461,000 | ||
Impaired Loans [Member] | Construction and Land Development [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 4,112,000 | 6,620,000 | ||
Impaired Loans [Member] | Commercial and Industrial [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | 18,651,000 | 18,854,000 | ||
Impaired Loans [Member] | Consumer and Other [Member] | |||||
Financing Receivable, Recorded Investment [Line Items] | |||||
Loans | [3] | $ 861,000 | $ 516,000 | ||
[1] | Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of nonaccrual loans and troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $109.8 million at March 31, 2017, compared to $114.6 million at December 31, 2016. | ||||
[2] | Included in nonaccrual loans at March 31, 2017 and December 31, 2016 are $7.3 million and $8.8 million, respectively, in purchase credit impaired loans acquired with deteriorated credit quality. | ||||
[3] | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. |
Loans and Allowance for Loan 38
Loans and Allowance for Loan Losses, Impaired Financing Receivable (Details) - USD ($) | 3 Months Ended | |||
Mar. 31, 2017 | Mar. 31, 2016 | Dec. 31, 2016 | ||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | $ 25,050,000 | $ 27,577,000 | ||
Unpaid principal balance | [1] | 28,550,000 | 31,612,000 | |
Related allowance | [2] | 1,852,000 | 1,071,000 | |
Average recorded investment | 26,314,000 | $ 43,740,000 | ||
Interest income recognized | 49,311 | 31,000 | ||
Interest income from cash payments received | 49,311 | 31,000 | ||
Collateral Dependent Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 12,076,000 | 14,689,000 | ||
Unpaid principal balance | [1] | 12,125,000 | 14,769,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 12,706,000 | 31,473,000 | ||
Interest income recognized | 49,311 | 31,000 | ||
Collateral Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,283,000 | 2,308,000 | ||
Unpaid principal balance | [1] | 2,280,000 | 2,312,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 2,100,000 | 3,854,000 | ||
Interest income recognized | 0 | 0 | ||
Collateral Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 2,513,000 | 2,880,000 | ||
Unpaid principal balance | [1] | 2,544,000 | 2,915,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 2,216,000 | 4,462,000 | ||
Interest income recognized | 0 | 0 | ||
Collateral Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,028,000 | 3,128,000 | ||
Unpaid principal balance | [1] | 1,035,000 | 3,135,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 2,078,000 | 7,320,000 | ||
Interest income recognized | 49,311 | 31,000 | ||
Collateral Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 6,252,000 | 6,373,000 | ||
Unpaid principal balance | [1] | 6,266,000 | 6,407,000 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 6,312,000 | 15,451,000 | ||
Interest income recognized | 0 | 0 | ||
Collateral Dependent Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 0 | 0 | ||
Unpaid principal balance | [1] | 0 | 0 | |
Related allowance | [2] | 0 | 0 | |
Average recorded investment | 0 | 386,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 12,974,000 | 12,888,000 | ||
Unpaid principal balance | [1] | 16,425,000 | 16,843,000 | |
Related allowance | [2] | 1,852,000 | 1,071,000 | |
Average recorded investment | 13,608,000 | 12,267,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Commercial Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,767,000 | 2,613,000 | ||
Unpaid principal balance | [1] | 2,465,000 | 3,349,000 | |
Related allowance | [2] | 63,000 | 59,000 | |
Average recorded investment | 2,386,000 | 1,548,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Consumer Real Estate - Mortgage [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 6,296,000 | 5,193,000 | ||
Unpaid principal balance | [1] | 6,883,000 | 5,775,000 | |
Related allowance | [2] | 1,085,000 | 688,000 | |
Average recorded investment | 6,225,000 | 5,815,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Construction and Land Development [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 3,083,000 | 3,485,000 | ||
Unpaid principal balance | [1] | 3,756,000 | 4,154,000 | |
Related allowance | [2] | 19,000 | 20,000 | |
Average recorded investment | 3,284,000 | 74,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Commercial and Industrial [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 1,006,000 | 1,122,000 | ||
Unpaid principal balance | [1] | 2,379,000 | 2,714,000 | |
Related allowance | [2] | 220,000 | 77,000 | |
Average recorded investment | 1,064,000 | 1,128,000 | ||
Interest income recognized | 0 | 0 | ||
Cash Flow Dependent Impaired Loans [Member] | Consumer and Other [Member] | ||||
Financing Receivable, Impaired [Line Items] | ||||
Recorded investment | 822,000 | 475,000 | ||
Unpaid principal balance | [1] | 942,000 | 851,000 | |
Related allowance | [2] | 465,000 | $ 227,000 | |
Average recorded investment | 649,000 | 3,702,000 | ||
Interest income recognized | $ 0 | $ 0 | ||
[1] | Unpaid principal balance presented net of fair value adjustments recorded in conjunction with purchase accounting. | |||
[2] | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
Loans and Allowance for Loan 39
Loans and Allowance for Loan Losses, Rollforward of Purchase Credit Impaired Loans (Details) $ in Thousands | 3 Months Ended |
Mar. 31, 2017USD ($) | |
Business Combination, Acquired Receivables [Abstract] | |
Gross Contractual Receivable | $ 12,468 |
Acquisitions | 0 |
Settlements | (1,814) |
Additional fundings | 5 |
Gross Contractual Receivable | 10,659 |
Accretable Yield | 0 |
Acquired Accretable Yield | 0 |
Settlements | 0 |
Additional fundings | 0 |
Accretable Yield | 0 |
Nonaccretable Yield | (3,633) |
Acquired Nonaccretable Yield | 0 |
Settlements | 252 |
Additional fundings | 0 |
Nonaccretable Yield | (3,381) |
Carrying Value | 8,835 |
Acquisitions | 0 |
Settlements | (1,562) |
Additional fundings | 5 |
Carrying Value | $ 7,278 |
Loans and Allowance for Loan 40
Loans and Allowance for Loan Losses, Troubled Debt Restructurings (Details) $ in Thousands | 3 Months Ended | ||
Mar. 31, 2017USD ($)Contract | Mar. 31, 2016USD ($)Contract | Dec. 31, 2016USD ($) | |
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 1 | 1 | |
Pre Modification Outstanding Recorded Investment | $ 3,457 | $ 2,333 | |
Post Modification Outstanding Recorded Investment, net of related allowance | 3,457 | $ 1,536 | |
Troubled debt restructurings performing as of restructure date | $ 14,600 | $ 15,000 | |
Percentage of credit exposure to risk based capital | 25.00% | ||
Commercial Real Estate - Mortgage [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | |
Consumer Real Estate - Mortgage [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | |
Construction and Land Development [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 0 | $ 0 | |
Commercial and Industrial [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 1 | 1 | |
Pre Modification Outstanding Recorded Investment | $ 3,457 | $ 2,333 | |
Post Modification Outstanding Recorded Investment, net of related allowance | $ 3,457 | $ 1,536 | |
Consumer and Other [Member] | |||
Troubled debt restructuring categorized by loan classification [Abstract] | |||
Number of contracts | Contract | 0 | 0 | |
Pre Modification Outstanding Recorded Investment | $ 0 | $ 0 | |
Post Modification Outstanding Recorded Investment, net of related allowance | 0 | $ 0 | |
Lessors of Nonresidential Buildings [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 1,302,962 | ||
Financing receivables unfunded commitment | 359,869 | ||
Financing receivables exposure | 1,662,831 | 1,701,853 | |
Lessors of Residential Buildings [Member] | |||
Loan portfolio credit risk exposure [Abstract] | |||
Financing receivables principal balance | 487,960 | ||
Financing receivables unfunded commitment | 291,045 | ||
Financing receivables exposure | $ 779,005 | $ 874,234 |
Loans and Allowance for Loan 41
Loans and Allowance for Loan Losses, Financing Receivables Past Due (Details) - USD ($) $ in Thousands | Mar. 31, 2017 | Dec. 31, 2016 | |
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | $ 14,684 | $ 22,330 | |
Nonaccrual | [1] | 25,050 | 27,577 |
Current and accruing | 8,602,298 | 8,400,018 | |
Total Loans | 8,642,032 | 8,449,925 | |
Currently performing impaired loans | 15,000 | 16,700 | |
30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 13,573 | 21,196 | |
90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,111 | 1,134 | |
Commercial Real Estate Owner Occupied [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,056 | 3,505 | |
Nonaccrual | [1] | 3,401 | 4,254 |
Current and accruing | 1,395,055 | 1,347,134 | |
Total Loans | 1,399,512 | 1,354,893 | |
Commercial Real Estate Owner Occupied [Member] | 30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,056 | 3,505 | |
Commercial Real Estate Owner Occupied [Member] | 90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Commercial Real Estate All Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 30 | 0 | |
Nonaccrual | [1] | 649 | 667 |
Current and accruing | 1,781,393 | 1,837,936 | |
Total Loans | 1,782,072 | 1,838,603 | |
Commercial Real Estate All Other [Member] | 30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 30 | 0 | |
Commercial Real Estate All Other [Member] | 90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Consumer Real Estate - Mortgage [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,966 | 3,891 | |
Nonaccrual | [1] | 8,809 | 8,073 |
Current and accruing | 1,185,600 | 1,173,953 | |
Total Loans | 1,196,375 | 1,185,917 | |
Consumer Real Estate - Mortgage [Member] | 30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,917 | 3,838 | |
Consumer Real Estate - Mortgage [Member] | 90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 49 | 53 | |
Construction and Land Development [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,350 | 2,210 | |
Nonaccrual | [1] | 4,112 | 6,613 |
Current and accruing | 1,009,665 | 903,850 | |
Total Loans | 1,015,127 | 912,673 | |
Construction and Land Development [Member] | 30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 1,350 | 2,210 | |
Construction and Land Development [Member] | 90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Commercial and Industrial [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 3,514 | 4,475 | |
Nonaccrual | [1] | 7,258 | 7,495 |
Current and accruing | 2,970,068 | 2,879,740 | |
Total Loans | 2,980,840 | 2,891,710 | |
Commercial and Industrial [Member] | 30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 3,514 | 4,475 | |
Commercial and Industrial [Member] | 90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 0 | 0 | |
Consumer and Other [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 6,768 | 8,249 | |
Nonaccrual | [1] | 821 | 475 |
Current and accruing | 260,517 | 257,405 | |
Total Loans | 268,106 | 266,129 | |
Consumer and Other [Member] | 30-89 Days Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | 5,706 | 7,168 | |
Consumer and Other [Member] | 90 Days or More Past Due and Accruing [Member] | |||
Financing Receivable, Recorded Investment, Past Due [Line Items] | |||
Total past due and accruing | $ 1,062 | $ 1,081 | |
[1] | Approximately $15.0 million and $16.7 million of nonaccrual loans as of March 31, 2017 and December 31, 2016, respectively, were performing pursuant to their contractual terms at those dates. |
Loans and Allowance for Loan 42
Loans and Allowance for Loan Losses, Allowance for Credit Losses (Details) - USD ($) | 3 Months Ended | ||||
Mar. 31, 2017 | Mar. 31, 2016 | Mar. 31, 2017 | Dec. 31, 2016 | ||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | $ 58,349,769 | $ 58,980,475 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | $ 58,980,000 | $ 65,432,000 | |||
Charged-off loans | (5,161,951) | (9,226,906) | |||
Recovery of previously charged-off loans | 881,000 | 2,141,000 | |||
Provision for loan losses | 3,651,022 | 3,893,570 | |||
Ending Balance | 58,350,000 | 62,239,000 | |||
Collectively evaluated for impairment | 56,454,000 | 57,888,000 | |||
Individually evaluated for impairment | 1,896,000 | 1,092,000 | |||
Loans acquired with deteriorated credit quality | 58,980,000 | 65,432,000 | 58,350,000 | 58,980,000 | |
Collectively evaluated for impairment | 8,602,391,000 | 8,407,340,000 | |||
Individually evaluated for impairment | 32,363,000 | 33,750,000 | |||
Ending Balance | 8,642,032,280 | ||||
Troubled debt restructurings performing as of restructure date | 14,600,000 | 15,000,000 | |||
Loans and other extensions of credit granted to directors, executive officers, and their related entities | 21,800,000 | 22,600,000 | |||
Amount drawn from loans and other extensions of credit granted | 15,000,000 | 14,800,000 | |||
Commercial loans held-for-sale | 15,354,496 | ||||
Loans sold | 160,740,441 | 163,949,000 | |||
Mortgage loans held-for-sale | 70,597,985 | 47,710,120 | |||
Gain on mortgage loans sold, net | 4,154,952 | 3,567,551 | |||
Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 7,278,000 | 8,835,000 | |||
Commercial Real Estate - Mortgage [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 14,168,000 | 13,655,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 13,655,000 | 15,513,000 | |||
Charged-off loans | 0 | 0 | |||
Recovery of previously charged-off loans | 6,000 | 58,000 | |||
Provision for loan losses | 507,000 | (2,020,000) | |||
Ending Balance | 14,168,000 | 13,551,000 | |||
Collectively evaluated for impairment | 14,105,000 | 13,595,000 | |||
Individually evaluated for impairment | 63,000 | 60,000 | |||
Loans acquired with deteriorated credit quality | 13,655,000 | 15,513,000 | 14,168,000 | 13,655,000 | |
Collectively evaluated for impairment | 3,177,324,000 | 3,188,362,000 | |||
Individually evaluated for impairment | 2,714,000 | 2,750,000 | |||
Ending Balance | 3,181,584,000 | ||||
Commercial Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 1,546,000 | 2,384,000 | |||
Consumer Real Estate - Mortgage [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 7,219,000 | 6,564,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 6,564,000 | 7,220,000 | |||
Charged-off loans | (61,000) | (199,000) | |||
Recovery of previously charged-off loans | 170,000 | 85,000 | |||
Provision for loan losses | 546,000 | 63,000 | |||
Ending Balance | 7,219,000 | 7,169,000 | |||
Collectively evaluated for impairment | 6,132,000 | 5,874,000 | |||
Individually evaluated for impairment | 1,087,000 | 690,000 | |||
Loans acquired with deteriorated credit quality | 6,564,000 | 7,220,000 | 7,219,000 | 6,564,000 | |
Collectively evaluated for impairment | 1,184,618,000 | 1,174,456,000 | |||
Individually evaluated for impairment | 9,276,000 | 8,941,000 | |||
Ending Balance | 1,196,375,000 | ||||
Consumer Real Estate - Mortgage [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 2,481,000 | 2,520,000 | |||
Construction and Land Development [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 4,441,000 | 3,624,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 3,624,000 | 2,903,000 | |||
Charged-off loans | 0 | 0 | |||
Recovery of previously charged-off loans | 33,000 | 25,000 | |||
Provision for loan losses | 784,000 | 1,014,000 | |||
Ending Balance | 4,441,000 | 3,942,000 | |||
Collectively evaluated for impairment | 4,422,000 | 3,604,000 | |||
Individually evaluated for impairment | 19,000 | 20,000 | |||
Loans acquired with deteriorated credit quality | 3,624,000 | 2,903,000 | 4,441,000 | 3,624,000 | |
Collectively evaluated for impairment | 1,011,015,000 | 906,053,000 | |||
Individually evaluated for impairment | 1,094,000 | 3,212,000 | |||
Ending Balance | 1,015,127,000 | ||||
Construction and Land Development [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 3,018,000 | 3,408,000 | |||
Commercial and Industrial [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 22,912,000 | 24,743,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 24,743,000 | 23,643,000 | |||
Charged-off loans | (1,158,000) | (1,624,000) | |||
Recovery of previously charged-off loans | 140,000 | 1,433,000 | |||
Provision for loan losses | (813,000) | 692,000 | |||
Ending Balance | 22,912,000 | 24,144,000 | |||
Collectively evaluated for impairment | 22,650,000 | 24,648,000 | |||
Individually evaluated for impairment | 262,000 | 95,000 | |||
Loans acquired with deteriorated credit quality | 24,743,000 | 23,643,000 | 22,912,000 | 24,743,000 | |
Collectively evaluated for impairment | 2,962,189,000 | 2,872,856,000 | |||
Individually evaluated for impairment | 18,418,000 | 18,331,000 | |||
Ending Balance | 2,980,840,000 | ||||
Commercial and Industrial [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 233,000 | 523,000 | |||
Consumer and Other [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 8,477,000 | 9,520,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 9,520,000 | 15,616,000 | |||
Charged-off loans | (3,943,000) | (7,404,000) | |||
Recovery of previously charged-off loans | 532,000 | 540,000 | |||
Provision for loan losses | 2,368,000 | 3,106,000 | |||
Ending Balance | 8,477,000 | 11,858,000 | |||
Collectively evaluated for impairment | 8,012,000 | 9,293,000 | |||
Individually evaluated for impairment | 465,000 | 227,000 | |||
Loans acquired with deteriorated credit quality | 9,520,000 | 15,616,000 | 8,477,000 | 9,520,000 | |
Collectively evaluated for impairment | 267,245,000 | 265,613,000 | |||
Individually evaluated for impairment | 861,000 | 516,000 | |||
Ending Balance | 268,106,000 | ||||
Consumer and Other [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Loans acquired with deteriorated credit quality | 0 | 0 | |||
Unallocated [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 1,133,000 | 874,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 874,000 | 537,000 | |||
Charged-off loans | 0 | 0 | |||
Recovery of previously charged-off loans | 0 | 0 | |||
Provision for loan losses | 259,000 | 1,038,000 | |||
Ending Balance | 1,133,000 | 1,575,000 | |||
Collectively evaluated for impairment | 1,133,000 | 874,000 | |||
Individually evaluated for impairment | 0 | 0 | |||
Loans acquired with deteriorated credit quality | 874,000 | $ 537,000 | 1,133,000 | 874,000 | |
Unallocated [Member] | Receivables Acquired with Deteriorated Credit Quality [Member] | |||||
Changes in allowance for loan losses [Roll Forward] | |||||
Beginning Balance | 0 | ||||
Ending Balance | 0 | ||||
Loans acquired with deteriorated credit quality | 0 | 0 | 0 | ||
Accruing Loans [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 55,321,000 | 57,014,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 8,602,391,000 | ||||
Accruing Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 14,105,000 | 13,595,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 3,177,324,000 | ||||
Accruing Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 6,132,000 | 5,874,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 1,184,618,000 | ||||
Accruing Loans [Member] | Construction and Land Development [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 4,422,000 | 3,604,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 1,011,015,000 | ||||
Accruing Loans [Member] | Commercial and Industrial [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 22,650,000 | 24,648,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 2,962,189,000 | ||||
Accruing Loans [Member] | Consumer and Other [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 8,012,000 | 9,293,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 267,245,000 | ||||
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 | 1,852,000 | 1,071,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | [1] | 25,050,000 | |||
Nonaccrual Loans [Member] | Commercial Real Estate - Mortgage [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 63,000 | 59,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | [1] | 4,050,000 | |||
Nonaccrual Loans [Member] | Consumer Real Estate - Mortgage [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 1,085,000 | 688,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | [1] | 8,809,000 | |||
Nonaccrual Loans [Member] | Construction and Land Development [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 19,000 | 20,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | [1] | 4,112,000 | |||
Nonaccrual Loans [Member] | Commercial and Industrial [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 220,000 | 77,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | [1] | 7,257,000 | |||
Nonaccrual Loans [Member] | Consumer and Other [Member] | |||||
Allowance allocation by loan classification for accruing and impaired loans [Abstract] | |||||
Total Allowance for Loan Losses | 465,000 | 227,000 | |||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | [1] | 822,000 | |||
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] | 44,000 | 21,000 | ||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 14,591,000 | ||||
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] | 0 | 1,000 | ||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 210,000 | ||||
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 | 2,000 | ||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 2,948,000 | ||||
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] | |||||
Ending Balance | 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] | 42,000 | 18,000 | ||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | 11,394,000 | ||||
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 | 0 | ||
Changes in allowance for loan losses [Roll Forward] | |||||
Ending Balance | $ 39,000 | ||||
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 March 31, 2017 and December 31, 2016 are $7.3 million and $8.8 million, respectively, in purchase credit impaired loans acquired with deteriorated credit quality. | ||||
[2] | Troubled debt restructurings of $14.6 million and $15.0 million as of both March 31, 2017 and December 31, 2016, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. |
Income Taxes (Details)
Income Taxes (Details) - USD ($) | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
Income Taxes [Abstract] | ||
Unrecognized tax benefits | $ 1,274,000 | $ 196,000 |
Income tax examination interest and penalties | $ 18,000 | $ 0 |
Effective income tax rate | 25.80% | 33.10% |
Federal and State income tax statutory rate | 39.23% |
Commitments and Contingent Li44
Commitments and Contingent Liabilities (Details) - USD ($) $ in Millions | 3 Months Ended | 12 Months Ended |
Mar. 31, 2017 | Dec. 31, 2016 | |
Loss Contingencies [Line Items] | ||
Inherent risks associated with off balance sheet commitments | $ 1.1 | $ 1.1 |
Commitments to Extend Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | 3,300 | |
Standby Letters of Credit [Member] | ||
Loss Contingencies [Line Items] | ||
Amount of commitment | $ 128.4 | |
Maximum [Member] | ||
Loss Contingencies [Line Items] | ||
Expiry period of standby letter of credit, maximum | 2 years |
Stock Options, Stock Apprecia45
Stock Options, Stock Appreciation Rights and Restricted Shares (Details) | 3 Months Ended | 12 Months Ended | ||||||
Mar. 31, 2017USD ($)$ / sharesshares | Mar. 31, 2016USD ($) | Dec. 31, 2016USD ($)$ / sharesshares | Mar. 31, 2017USD ($)Plan$ / sharesshares | Dec. 31, 2016$ / sharesshares | ||||
Stock Options, Stock Appreciation Rights and Restricted Shares [Abstract] | ||||||||
Number of equity incentive plan | Plan | 1 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Stock-based compensation expense | $ | $ 3,474,027 | $ 2,628,788 | ||||||
Stock Option [Member] | ||||||||
Number [Roll Forward] | ||||||||
Outstanding, Ending Balance (in shares) | 401,277 | |||||||
Restricted Share [Member] | ||||||||
Number [Roll Forward] | ||||||||
Unvested, beginning of period (in shares) | 820,539 | |||||||
Shares awarded (in shares) | 80,745 | |||||||
Conversion of restricted share units to restricted share awards (in shares) | 43,680 | |||||||
Restrictions lapsed and shares released to associates/directors (in shares) | (190,488) | |||||||
Shares forfeited (in shares) | [1] | (5,986) | ||||||
Unvested, end of period (in shares) | 748,490 | 820,539 | ||||||
Grant date weighted average cost [Roll Forward] | ||||||||
Unvested, beginning of period (in dollars per share) | $ / shares | $ 36.47 | |||||||
Unvested, end of period (in dollars per share) | $ / shares | $ 43.44 | $ 36.47 | ||||||
Shares forfeited due to failure to meet performance targets (in shares) | 0 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 80,745 | |||||||
Shares forfeited by participants (in shares) | [1] | 5,986 | ||||||
Shares Unvested (in shares) | 820,539 | 820,539 | 748,490 | 820,539 | ||||
Restricted share units, awarded (in shares) | 80,745 | |||||||
Common Stock Options and Stock Appreciation Rights [Member] | ||||||||
Number [Roll Forward] | ||||||||
Outstanding, Beginning Balance (in shares) | 550,490 | |||||||
Granted (in shares) | 0 | |||||||
Exercised (in shares) | (149,213) | |||||||
Forfeited (in shares) | 0 | |||||||
Outstanding, Ending Balance (in shares) | 401,277 | 550,490 | ||||||
Options exercisable (in shares) | 401,277 | |||||||
Weighted average exercise price [Abstract] | ||||||||
Outstanding, Beginning Balance (in dollars per share) | $ / shares | $ 20.75 | |||||||
Outstanding, Ending Balance (in dollars per share) | $ / shares | $ 20.93 | $ 20.75 | ||||||
Options exercisable (in dollars per share) | $ / shares | $ 20.93 | |||||||
Weighted average contractual remaining term [Abstract] | ||||||||
Outstanding | 3 years 1 month 28 days | 2 years 7 months 10 days | ||||||
Options exercisable | 3 years 1 month 28 days | |||||||
Aggregate intrinsic value [Abstract] | ||||||||
Outstanding, beginning of period | $ | [2] | $ 26,728,000 | ||||||
Outstanding, end of period | $ | $ 18,265,000 | [3] | $ 26,728,000 | [2] | ||||
Options exercisable | $ | [3] | $ 18,265,000 | ||||||
Quoted closing price of common stock (in dollars per share) | $ / shares | $ 66.45 | $ 69.30 | ||||||
Number of awards used in aggregate intrinsic value (in shares) | 401,277 | 550,490 | ||||||
Time Based Awards [Member] | Associates [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [4] | 68,850 | ||||||
Shares forfeited (in shares) | [4],[5] | (487) | ||||||
Unvested, end of period (in shares) | [4] | 68,302 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Group | [4],[6] | Associates | ||||||
Vesting Period in years | [4] | 5 years | ||||||
Shares awarded (in shares) | [4] | 68,850 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [4] | 61 | ||||||
Shares forfeited by participants (in shares) | [4],[5] | 487 | ||||||
Shares Unvested (in shares) | [4] | 68,302 | 68,302 | |||||
Restricted share units, awarded (in shares) | [4] | 68,850 | ||||||
Performance Based Awards [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [7] | 43,680 | ||||||
Shares forfeited (in shares) | [5],[7] | 0 | ||||||
Unvested, end of period (in shares) | [7] | 43,680 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Group | [6],[7] | Leadership team | ||||||
Vesting Period in years | [7] | 3 years | ||||||
Shares awarded (in shares) | [7] | 43,680 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [7] | 0 | ||||||
Shares forfeited by participants (in shares) | [5],[7] | 0 | ||||||
Shares Unvested (in shares) | [7] | 43,680 | 43,680 | |||||
Restricted share units, awarded (in shares) | [7] | 43,680 | ||||||
Outside Director Awards [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [8] | 11,895 | ||||||
Shares forfeited (in shares) | [5],[8] | 0 | ||||||
Unvested, end of period (in shares) | [8] | 11,895 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Group | [6],[8] | Outside directors | ||||||
Vesting Period in years | [8] | 1 year | ||||||
Shares awarded (in shares) | [8] | 11,895 | ||||||
Restrictions lapsed and shares released to participants (in shares) | [8] | 0 | ||||||
Shares forfeited by participants (in shares) | [5],[8] | 0 | ||||||
Shares Unvested (in shares) | [8] | 11,895 | 11,895 | |||||
Restricted share units, awarded (in shares) | [8] | 11,895 | ||||||
2016 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 72,537 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 72,537 | ||||||
Restricted share units, awarded (in shares) | [9] | 72,537 | ||||||
2016 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 109,339 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 109,339 | ||||||
Restricted share units, awarded (in shares) | [9] | 109,339 | ||||||
2016 Restricted Share Unit [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 58,404 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 58,404 | ||||||
Restricted share units, awarded (in shares) | [9] | 58,404 | ||||||
2015 Restricted Share Units [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 73,474 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 73,474 | ||||||
Restricted share units, awarded (in shares) | [9] | 73,474 | ||||||
2015 Restricted Share Units [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9] | 110,223 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9] | 110,223 | ||||||
Restricted share units, awarded (in shares) | [9] | 110,223 | ||||||
2015 Restricted Share Units [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | 102,209 | |||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | 102,209 | |||||||
Restricted share units, awarded (in shares) | 102,209 | |||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Minimum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9],[10] | 58,200 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9],[10] | 58,200 | ||||||
Restricted share units, awarded (in shares) | [9],[10] | 58,200 | ||||||
2014 Restricted Share Unit [Member] | Senior Executive Officers [Member] | Maximum [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [9],[10] | 101,850 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [9],[10] | 101,850 | ||||||
Restricted share units, awarded (in shares) | [9],[10] | 101,850 | ||||||
2014 Restricted Share Unit [Member] | Leadership Team [Member] | ||||||||
Number [Roll Forward] | ||||||||
Shares awarded (in shares) | [10] | 26,683 | ||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Shares awarded (in shares) | [10] | 26,683 | ||||||
Restricted share units, awarded (in shares) | [10] | 26,683 | ||||||
Tranche 2014 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 5 years | ||||||
Shares settled into RSAs as of period end (in shares) | [10],[11] | 21,856 | ||||||
Tranche 2014 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 4 years | ||||||
Shares settled into RSAs as of period end (in shares) | [10] | 21,856 | ||||||
Tranche 2015 [Member] | 2015 Restricted Share Units [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Holding period per tranche (in years) | [11],[12] | 3 years | ||||||
Tranche 2015 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 4 years | ||||||
Shares settled into RSAs as of period end (in shares) | [10] | 21,847 | ||||||
Tranche 2015 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 3 years | ||||||
Shares settled into RSAs as of period end (in shares) | [10] | 21,847 | ||||||
Tranche 2016 [Member] | 2016 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [11] | 2 years | ||||||
Holding period per tranche (in years) | [11],[12] | 3 years | ||||||
Tranche 2016 [Member] | 2015 Restricted Share Units [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Holding period per tranche (in years) | [11],[12] | 2 years | ||||||
Tranche 2016 [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 3 years | ||||||
Shares settled into RSAs as of period end (in shares) | [10] | 21,840 | ||||||
Tranche 2016 (1) [Member] | 2014 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Shares settled into RSAs as of period end (in shares) | [10] | 21,840 | ||||||
Tranche 2017 [Member] | 2017 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [9] | 2 years | ||||||
Holding period per tranche (in years) | [9],[12] | 3 years | ||||||
Tranche 2017 [Member] | 2016 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [11] | 2 years | ||||||
Holding period per tranche (in years) | [11],[12] | 2 years | ||||||
Tranche 2017 [Member] | 2015 Restricted Share Units [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [10] | 2 years | ||||||
Holding period per tranche (in years) | [11],[12] | 1 year | ||||||
Tranche 2018 [Member] | 2017 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [9] | 2 years | ||||||
Holding period per tranche (in years) | [9],[12] | 2 years | ||||||
Tranche 2018 [Member] | 2016 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [11] | 2 years | ||||||
Holding period per tranche (in years) | [11],[12] | 1 year | ||||||
Tranche 2019 [Member] | 2017 Restricted Share Unit [Member] | ||||||||
Restricted stock grants grouped by similar vesting criteria [Abstract] | ||||||||
Service period per tranche (in years) | [9] | 2 years | ||||||
Holding period per tranche (in years) | [9],[12] | 1 year | ||||||
2014 Equity Incentive Plan [Member] | ||||||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||||||
Shares available for issuances (in shares) | 825,420 | |||||||
[1] | Represents shares forfeited due to employee termination and/or retirement. No shares were forfeited due to failure to meet performance targets. | |||||||
[2] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $69.30 per common share at December 31, 2016 for the 550,490 options that were in-the-money at December 31, 2016. | |||||||
[3] | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted closing price of Pinnacle Financial common stock of $66.45 per common share at March 31, 2017 for the 401,277 options that were in-the-money at March 31, 2017. | |||||||
[4] | The forfeiture restrictions on these restricted share awards lapse in equal annual installments on the anniversary date of the grant. | |||||||
[5] | These shares represent forfeitures resulting from recipients whose employment or board membership is terminated during the year-to-date period ended March 31, 2017. Any dividends paid on shares for which the forfeiture restrictions do not lapse will be recouped by Pinnacle Financial at the time of termination. | |||||||
[6] | Groups include employees (referred to as associates above), the leadership team which includes our named executive officers and other key senior leadership members, and outside directors. When 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. | |||||||
[7] | Reflects conversion of restricted share units issued in prior years to restricted share awards. The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain soundness targets over each year of the subsequent vesting period. Half of the awards include a four year vesting period while the remainder include a three year vesting period. | |||||||
[8] | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapse on February 28, 2017 based on each individual board member meeting their attendance goals for the various board and board committee meetings to which each member was scheduled to attend. | |||||||
[9] | The named executive officers are awarded a range of awards that may be earned based on attainment of goals between a target level of performance and a maximum level of performance. | |||||||
[10] | Restrictions on half of the shares previously converted to RSAs will lapse commensurate with the filing of the Form 10-K for the year ended December 31, 2017 and 2018, respectively. | |||||||
[11] | Restricted stock unit awards granted in 2017, 2016 and 2015 will be earned and settled in shares of Pinnacle Financial common stock, for which additional forfeiture restrictions may lapse based on Pinnacle Financial's performance in future periods. | |||||||
[12] | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at March 31, 2017 and December 31, 2016, Pinnacle Financial included in other liabilities $347,000 and $383,000, respectively, representing the inherent risks associated with these off-balance sheet commitments. |
Regulatory Matters (Details)
Regulatory Matters (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | |
Mar. 31, 2017USD ($)$ / shares | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Preceding period of retained earnings used in calculation of dividend payable | 2 years | |
Amount paid for dividend (in dollars per share) | $ / shares | $ 0.14 | |
Pinnacle Financial [Member] | ||
Compliance with Regulatory Capital Requirements under Banking Regulations [Line Items] | ||
Cash dividends paid to Pinnacle Financial by Pinnacle Bank | $ 7,500 | |
Actual Amount [Abstract] | ||
Total capital to risk weighted assets | 1,435,331 | |
Tier I capital to risk weighted assets | 1,107,531 | |
Common Equity Tier I capital | 1,027,408 | |
Tier I capital to average assets | $ 1,107,531 | [1] |
Actual Ratio [Abstract] | ||
Total capital to risk weighted assets | 13.70% | |
Tier I capital to risk weighted assets | 10.60% | |
Common Equity Tier I capital | 9.80% | |
Tier I capital to average assets | 10.30% | [1] |
Minimum Capital Requirement Amount [Abstract] | ||
Total capital to risk weighted assets | $ 839,196 | |
Tier I capital to risk weighted assets | 629,397 | |
Common Equity Tier I capital | 472,047 | |
Tier I capital to average assets | $ 428,432 | [1] |
Minimum Capital Requirement Ratio [Abstract] | ||
Total capital to risk weighted assets | 8.00% | |
Tier I capital to risk weighted assets | 6.00% | |
Common Equity Tier I capital | 4.50% | |
Tier I capital to average assets | 4.00% | [1] |
Pinnacle Bank [Member] | ||
Actual Amount [Abstract] | ||
Total capital to risk weighted assets | $ 1,349,946 | |
Tier I capital to risk weighted assets | 1,162,969 | |
Common Equity Tier I capital | 1,162,846 | |
Tier I capital to average assets | $ 1,162,969 | [1] |
Actual Ratio [Abstract] | ||
Total capital to risk weighted assets | 12.90% | |
Tier I capital to risk weighted assets | 11.10% | |
Common Equity Tier I capital | 11.10% | |
Tier I capital to average assets | 10.90% | [1] |
Minimum Capital Requirement Amount [Abstract] | ||
Total capital to risk weighted assets | $ 836,884 | |
Tier I capital to risk weighted assets | 627,663 | |
Common Equity Tier I capital | 470,747 | |
Tier I capital to average assets | $ 427,263 | [1] |
Minimum Capital Requirement Ratio [Abstract] | ||
Total capital to risk weighted assets | 8.00% | |
Tier I capital to risk weighted assets | 6.00% | |
Common Equity Tier I capital | 4.50% | |
Tier I capital to average assets | 4.00% | [1] |
Minimum To Be Well Capitalized Amount [Abstract] | ||
Total capital to risk weighted assets | $ 1,046,105 | |
Tier I capital to risk weighted assets | 836,884 | |
Common Equity Tier I capital | 679,968 | |
Tier I capital to average assets | $ 534,078 | [1] |
Minimum To Be Well Capitalized Ratio [Abstract] | ||
Total capital to risk weighted assets: | 10.00% | |
Tier I capital to risk weighted assets: | 8.00% | |
Common Equity Tier I capital | 6.50% | |
Tier I capital to average assets: | 5.00% | [1] |
[1] | Average assets for the above calculations were based on the most recent quarter. |
Derivative Instruments (Details
Derivative Instruments (Details) - USD ($) | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | $ 1,329,892,000 | $ 1,333,144,000 | |
Estimated fair value of interest rate swap | $ (122,000) | (134,000) | |
Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Lower maturity range date term | Jul. 1, 2014 | ||
Higher maturity range date term | Jul. 31, 2021 | ||
Pay Fixed / Receive Variable Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | $ 664,946,000 | 666,572,000 | |
Estimated fair value of interest rate swap | 14,856,000 | 16,004,000 | |
Pay Variable / Receive Fixed Swaps [Member] | Not Designated as Hedging Instrument [Member] | |||
Interest rate swap agreements [Abstract] | |||
Notional amount of interest rate swap | 664,946,000 | 666,572,000 | |
Estimated fair value of interest rate swap | (14,978,000) | (16,138,000) | |
Interest Rate Swap April 2016 - October 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | 200,000,000 | 200,000,000 | |
Interest rate derivative liabilities, at fair value | (6,151,000) | (6,732,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (3,738,000) | (4,091,000) | |
Interest Rate Swap April 2016 - April 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 33,000,000 | $ 33,000,000 | |
Receive rate | 3 month LIBOR | 3 month LIBOR | |
Pay rate | 2.265% | 2.265% | |
Lower maturity range date term | [1] | Apr. 1, 2016 | Apr. 1, 2016 |
Higher maturity range date term | [1] | Apr. 30, 2020 | Apr. 30, 2020 |
Interest rate derivative liabilities, at fair value | $ (579,000) | $ (727,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (351,900) | (442,000) | |
Interest Rate Swap April 2016 - April 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 33,000,000 | $ 33,000,000 | |
Receive rate | 3 month LIBOR | 3 month LIBOR | |
Pay rate | 2.646% | 2.646% | |
Lower maturity range date term | [1] | Apr. 1, 2016 | Apr. 1, 2016 |
Higher maturity range date term | [1] | Apr. 30, 2022 | Apr. 30, 2022 |
Interest rate derivative liabilities, at fair value | $ (1,140,000) | $ (1,304,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (692,800) | (792,000) | |
Interest Rate Swap October 2016 - October 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 33,000,000 | $ 33,000,000 | |
Receive rate | 3 month LIBOR | 3 month LIBOR | |
Pay rate | 2.523% | 2.523% | |
Lower maturity range date term | [1] | Oct. 1, 2016 | Oct. 1, 2016 |
Higher maturity range date term | [1] | Oct. 31, 2020 | Oct. 31, 2020 |
Interest rate derivative liabilities, at fair value | $ (910,000) | $ (1,081,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (553,000) | (657,000) | |
Interest Rate Swap October 2017 - October 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 33,000,000 | $ 33,000,000 | |
Receive rate | 3 month LIBOR | 3 month LIBOR | |
Pay rate | 2.992% | 2.992% | |
Lower maturity range date term | [1] | Oct. 1, 2017 | Oct. 1, 2017 |
Higher maturity range date term | [1] | Oct. 31, 2021 | Oct. 31, 2021 |
Interest rate derivative liabilities, at fair value | $ (1,160,000) | $ (1,200,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (704,900) | (729,000) | |
Interest Rate Swap April 2018 - July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 34,000,000 | $ 34,000,000 | |
Receive rate | 3 month LIBOR | 3 month LIBOR | |
Pay rate | 3.118% | 3.118% | |
Lower maturity range date term | [1] | Apr. 1, 2018 | Apr. 1, 2018 |
Higher maturity range date term | [1] | Jul. 31, 2022 | Jul. 31, 2022 |
Interest rate derivative liabilities, at fair value | $ (1,201,000) | $ (1,222,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (729,800) | (743,000) | |
Interest Rate Swap July 2018 - October 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 34,000,000 | $ 34,000,000 | |
Receive rate | 3 month LIBOR | 3 month LIBOR | |
Pay rate | 3.158% | 3.158% | |
Lower maturity range date term | [1] | Jul. 1, 2018 | Jul. 1, 2018 |
Higher maturity range date term | [1] | Oct. 31, 2022 | Oct. 31, 2022 |
Interest rate derivative liabilities, at fair value | $ (1,161,000) | $ (1,198,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | (705,500) | (728,000) | |
Interest Rate Swap July 2014 - August 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | 125,000,000 | 125,000,000 | |
Interest rate derivative assets, at fair value | 2,080,000 | 2,704,000 | |
Unrealized (loss) gain in accumulated other comprehensive income | 1,264,000 | 1,643,000 | |
Interest Rate Swap July 2014 - July 2021 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 27,500,000 | $ 27,500,000 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 2.09% | 2.09% | |
Lower maturity range date term | Jul. 1, 2014 | ||
Higher maturity range date term | Jul. 31, 2021 | ||
Interest rate derivative assets, at fair value | $ 274,000 | $ 395,000 | |
Unrealized (loss) gain in accumulated other comprehensive income | 167,000 | 240,000 | |
Interest Rate Swap July 2014 - July 2022 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 25,000,000 | $ 25,000,000 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 2.27% | 2.27% | |
Lower maturity range date term | Jul. 1, 2014 | Jul. 1, 2014 | |
Higher maturity range date term | Jul. 31, 2022 | Jul. 31, 2022 | |
Interest rate derivative assets, at fair value | $ 468,000 | $ 610,000 | |
Unrealized (loss) gain in accumulated other comprehensive income | 284,000 | 371,000 | |
Interest Rate Swap July 2014 - July 2023 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 27,500,000 | $ 27,500,000 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 2.42% | 2.42% | |
Lower maturity range date term | Jul. 1, 2014 | Jul. 1, 2014 | |
Higher maturity range date term | Jul. 31, 2023 | Jul. 31, 2023 | |
Interest rate derivative assets, at fair value | $ 713,000 | $ 874,000 | |
Unrealized (loss) gain in accumulated other comprehensive income | 433,000 | 531,000 | |
Interest Rate Swap July 2014 - July 2024 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 30,000,000 | $ 30,000,000 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 2.50% | 2.50% | |
Lower maturity range date term | Jul. 1, 2014 | Jul. 1, 2014 | |
Higher maturity range date term | Jul. 31, 2024 | Jul. 31, 2024 | |
Interest rate derivative assets, at fair value | $ 750,000 | $ 900,000 | |
Unrealized (loss) gain in accumulated other comprehensive income | 456,000 | 547,000 | |
Interest Rate Swap August 2015 - August 2018 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 0 | $ 0 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 1.048% | 1.048% | |
Lower maturity range date term | Aug. 1, 2015 | Aug. 1, 2015 | |
Higher maturity range date term | Aug. 31, 2018 | Aug. 31, 2018 | |
Interest rate derivative assets, at fair value | $ 0 | ||
Interest rate derivative liabilities, at fair value | $ 0 | ||
Unrealized (loss) gain in accumulated other comprehensive income | 0 | 0 | |
Interest Rate Swap August 2015 - August 2019 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 0 | $ 0 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 1.281% | 1.281% | |
Lower maturity range date term | Aug. 1, 2015 | Aug. 1, 2015 | |
Higher maturity range date term | Aug. 31, 2019 | Aug. 31, 2019 | |
Interest rate derivative assets, at fair value | $ 0 | ||
Interest rate derivative liabilities, at fair value | $ 0 | ||
Unrealized (loss) gain in accumulated other comprehensive income | 0 | 0 | |
Interest Rate Swap August 2015 - August 2020 [Member] | Designated as Hedging Instrument [Member] | |||
Forward Cash Flow Hedge Relationship [Abstract] | |||
Forecasted notional amount | $ 15,000,000 | $ 15,000,000 | |
Receive rate | 1 month LIBOR | 1 month LIBOR | |
Pay rate | 1.47% | 1.47% | |
Lower maturity range date term | Aug. 1, 2015 | Aug. 1, 2015 | |
Higher maturity range date term | Aug. 31, 2020 | Aug. 31, 2020 | |
Interest rate derivative liabilities, at fair value | $ (125,000) | $ (75,000) | |
Unrealized (loss) gain in accumulated other comprehensive income | $ (76,000) | $ (46,000) | |
[1] | No cash will be exchanged prior to the beginning of the term. |
Fair Value of Financial Instr48
Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |
Mar. 31, 2017 | Dec. 31, 2016 | ||
Recurring [Member] | |||
Investment securities available for sale: [Abstract] | |||
U.S. treasury securities | $ 250 | $ 250 | |
U.S. government agency securities | 18,939 | 21,769 | |
Mortgage-backed securities | 1,226,977 | 976,626 | |
State and municipal securities | 248,997 | 212,720 | |
Agency- backed securities | 71,321 | 78,580 | |
Corporate notes and other | 13,292 | 8,601 | |
Total investment securities available-for-sale | 1,579,776 | 1,298,546 | |
Other investments | 10,492 | 10,478 | |
Other assets | 14,662 | 13,340 | |
Total assets at fair value | 1,604,930 | 1,322,364 | |
Liabilities at fair value: [Abstract] | |||
Other liabilities | 15,404 | 15,758 | |
Total liabilities at fair value | 15,404 | 15,758 | |
Recurring [Member] | Quoted Market Prices in an Active Market (Level 1) [Member] | |||
Investment securities available for sale: [Abstract] | |||
U.S. treasury securities | 0 | 0 | |
U.S. government agency securities | 0 | 0 | |
Mortgage-backed securities | 0 | 0 | |
State and municipal securities | 0 | 0 | |
Agency- backed securities | 0 | 0 | |
Corporate notes and other | 0 | 0 | |
Total investment securities available-for-sale | 0 | 0 | |
Other investments | 0 | 0 | |
Other assets | 0 | 0 | |
Total assets at fair value | 0 | 0 | |
Liabilities at fair value: [Abstract] | |||
Other liabilities | 0 | 0 | |
Total liabilities at fair value | 0 | 0 | |
Recurring [Member] | Models with Significant Observable Market Parameters (Level 2) [Member] | |||
Investment securities available for sale: [Abstract] | |||
U.S. treasury securities | 250 | 250 | |
U.S. government agency securities | 18,939 | 21,769 | |
Mortgage-backed securities | 1,226,977 | 976,626 | |
State and municipal securities | 248,997 | 212,720 | |
Agency- backed securities | 71,321 | 78,580 | |
Corporate notes and other | 13,292 | 8,601 | |
Total investment securities available-for-sale | 1,579,776 | 1,298,546 | |
Other investments | 0 | 0 | |
Other assets | 14,662 | 13,340 | |
Total assets at fair value | 1,594,438 | 1,311,886 | |
Liabilities at fair value: [Abstract] | |||
Other liabilities | 15,404 | 15,758 | |
Total liabilities at fair value | 15,404 | 15,758 | |
Recurring [Member] | Models with Significant Unobservable Market Parameters (Level 3) [Member] | |||
Investment securities available for sale: [Abstract] | |||
U.S. treasury securities | 0 | 0 | |
U.S. government agency securities | 0 | 0 | |
Mortgage-backed securities | 0 | 0 | |
State and municipal securities | 0 | 0 | |
Agency- backed securities | 0 | 0 | |
Corporate notes and other | 0 | 0 | |
Total investment securities available-for-sale | 0 | 0 | |
Other investments | 10,492 | 10,478 | |
Other assets | 0 | 0 | |
Total assets at fair value | 10,492 | 10,478 | |
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 | 6,235 | 6,090 | |
Collateral dependent nonaccrual loans, net | 23,198 | [1] | 26,506 |
Total | 29,433 | 32,596 | |
Total losses on other real estate owned | (78) | (135) | |
Total losses on collateral dependent nonaccrual loans, net | (1,773) | (7,173) | |
Total losses | (1,851) | (7,308) | |
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 | 0 | [1] | 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 | 0 | [1] | 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 | 6,235 | 6,090 | |
Collateral dependent nonaccrual loans, net | 23,198 | [1] | 26,506 |
Total | $ 29,433 | $ 32,596 | |
[1] | Amount is net of a valuation allowance of $1.9 million and $1.1 million at March 31, 2017 and December 31, 2016, respectively, as required by ASC 310-10, "Receivables." |
Fair Value of Financial Instr49
Fair Value of Financial Instruments, Rollforward of Balance Sheet Amounts Within Level 3 Valuation Hierarchy (Details) - Recurring [Member] - USD ($) $ in Thousands | 3 Months Ended | |
Mar. 31, 2017 | Mar. 31, 2016 | |
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, end of period | 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 |
Other Assets [Member] | ||
Assets measured on recurring basis, unobservable input reconciliation, calculation [Roll Forward] | ||
Fair value, beginning of period | 10,478 | 9,764 |
Total realized gains included in income | 197 | 177 |
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period end | 0 | 0 |
Purchases | 120 | 325 |
Issuances | 0 | 0 |
Settlements | (303) | (138) |
Transfers out of Level 3 | 0 | 0 |
Fair value, end of period | 10,492 | 10,128 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period end | $ 197 | $ 177 |
Fair Value of Financial Instr50
Fair Value of Financial Instruments, Carrying Amount and Estimated Fair Value of Financial Instruments (Details) - USD ($) | Mar. 31, 2017 | Dec. 31, 2016 | |
Financial assets [Abstract] | |||
Securities held-to-maturity | $ 25,035,844 | $ 25,233,254 | |
Financial liabilities [Abstract] | |||
Federal Funds Purchased | 50,000,000 | 0 | |
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 | 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 | |
Federal Funds Purchased | 0 | ||
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 0 | 0 |
Standby letters of credit | [2] | 0 | 0 |
Models with Significant Observable Market Parameters (Level 2) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 25,036,000 | 25,233,000 | |
Loans, net | 0 | 0 | |
Mortgage loans held-for-sale | 71,799,000 | 47,892,000 | |
Loans held-for-sale | 15,611,360 | 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 | |
Federal Funds Purchased | 0 | ||
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 0 | 0 |
Standby letters of credit | [2] | 0 | 0 |
Models with Significant Unobservable Market Parameters (Level 3) [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 0 | 0 | |
Loans, net | 8,361,595,000 | 8,178,982,000 | |
Mortgage loans held-for-sale | 0 | 0 | |
Loans held-for-sale | 0 | 0 | |
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 9,071,202,000 | 8,579,664,000 | |
Federal Home Loan Bank advances | 181,564,000 | 406,491,000 | |
Subordinated debt and other borrowings | 330,418,000 | 328,049,000 | |
Federal Funds Purchased | 50,000,000 | ||
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 347,000 | 383,000 |
Standby letters of credit | [2] | 731,000 | 740,000 |
Carrying Amount / Notional Amount [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | 24,998,000 | 25,251,000 | |
Loans, net | 8,583,683,000 | 8,390,944,000 | |
Mortgage loans held-for-sale | 70,598,000 | 47,710,000 | |
Loans held-for-sale | 15,354,000 | 22,588,000 | |
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | 9,351,754,000 | 8,845,014,000 | |
Federal Home Loan Bank advances | 181,264,000 | 406,304,000 | |
Subordinated debt and other borrowings | 350,849,000 | 350,768,000 | |
Federal Funds Purchased | 50,000,000 | ||
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1] | 3,338,086,000 | 3,374,269,000 |
Standby letters of credit | [2] | 128,449,000 | 131,418,000 |
Estimated Fair Value [Member] | |||
Financial assets [Abstract] | |||
Securities held-to-maturity | [3] | 25,036,000 | 25,233,000 |
Loans, net | [3] | 8,361,595,000 | 8,178,982,000 |
Mortgage loans held-for-sale | [3] | 71,799,000 | 47,892,000 |
Loans held-for-sale | [3] | 15,611,000 | 22,674,000 |
Financial liabilities [Abstract] | |||
Deposits and securities sold under agreements to repurchase | [3] | 9,071,202,000 | 8,579,664,000 |
Federal Home Loan Bank advances | [3] | 181,564,000 | 406,491,000 |
Subordinated debt and other borrowings | [3] | 330,418,000 | 328,049,000 |
Federal Funds Purchased | [3] | 50,000,000 | |
Off-balance sheet instruments [Abstract] | |||
Commitments to extend credit | [1],[3] | 347,000 | 383,000 |
Standby letters of credit | [2],[3] | $ 731,000 | $ 740,000 |
[1] | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at March 31, 2017 and December 31, 2016, Pinnacle Financial included in other liabilities $347,000 and $383,000, respectively, representing the inherent risks associated with these off-balance sheet commitments. | ||
[2] | At March 31, 2017 and December 31, 2016, the fair value of Pinnacle Financial's standby letters of credit was $731,000 and $740,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. | ||
[3] | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |
Subordinated Debt and Other b51
Subordinated Debt and Other borrowings (Details) | 3 Months Ended | ||
Mar. 31, 2017USD ($)Subsidiary | Dec. 31, 2016USD ($) | ||
Subordinated Debt and Other borrowings [Abstract] | |||
Number of wholly owned subsidiaries | Subsidiary | 4 | ||
Term of capital trust preferred securities | 30 years | ||
Debt Instrument [Line Items] | |||
Total debt outstanding | $ 350,848,829 | $ 350,768,050 | |
Debt issuance costs and fair value adjustments | $ (1,627,171) | ||
Bank of North Carolina (BNC) [Member] | |||
Debt Instrument [Line Items] | |||
Date established | Sep. 1, 2014 | ||
Maturity date | Oct. 31, 2024 | ||
Total debt outstanding | $ 60,000,000 | ||
Interest rate at end of period | 5.50% | ||
Floating interest rate | Libor + 3.59 | ||
Debt instrument, basis spread on variable rate | 3.59% | ||
Debt instrument, term of variable rate | 3 months | ||
Face amount | $ 50,500,000 | ||
Revolving Credit Facility [Member] | |||
Debt Instrument [Line Items] | |||
Date established | [1] | Mar. 29, 2016 | |
Total debt outstanding | [1] | $ 0 | |
Interest rate at end of period | [1] | 0.00% | |
Maximum borrowing capacity | $ 75,000,000 | ||
Trust I [Member] | |||
Debt Instrument [Line Items] | |||
Date established | Dec. 29, 2003 | ||
Maturity date | Dec. 30, 2033 | ||
Total debt outstanding | $ 10,310,000 | ||
Interest rate at end of period | 3.95% | ||
Floating interest rate | LIBOR + 2.80% | ||
Debt instrument, basis spread on variable rate | 2.80% | ||
Trust II [Member] | |||
Debt Instrument [Line Items] | |||
Date established | Sep. 15, 2005 | ||
Maturity date | Sep. 30, 2035 | ||
Total debt outstanding | $ 20,619,000 | ||
Interest rate at end of period | 2.55% | ||
Floating interest rate | LIBOR + 1.40% | ||
Debt instrument, basis spread on variable rate | 1.40% | ||
Trust III [Member] | |||
Debt Instrument [Line Items] | |||
Date established | Sep. 7, 2006 | ||
Maturity date | Sep. 30, 2036 | ||
Total debt outstanding | $ 20,619,000 | ||
Interest rate at end of period | 2.80% | ||
Floating interest rate | LIBOR + 1.65% | ||
Debt instrument, basis spread on variable rate | 1.65% | ||
Trust IV [Member] | |||
Debt Instrument [Line Items] | |||
Date established | Oct. 31, 2007 | ||
Maturity date | Sep. 30, 2037 | ||
Total debt outstanding | $ 30,928,000 | ||
Interest rate at end of period | 3.98% | ||
Floating interest rate | LIBOR + 2.85% | ||
Debt instrument, basis spread on variable rate | 2.85% | ||
Pinnacle Bank Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date established | [2] | Jul. 30, 2015 | |
Maturity date | [2] | Jul. 30, 2025 | |
Total debt outstanding | [2] | $ 60,000,000 | |
Interest rate at end of period | [2] | 4.875% | |
Floating interest rate | LIBOR + 3.128% | ||
Debt instrument, basis spread on variable rate | 3.128% | ||
Debt instrument, term of variable rate | 3 months | ||
Pinnacle Bank Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date established | [2] | Mar. 10, 2016 | |
Maturity date | [2] | Jul. 30, 2025 | |
Total debt outstanding | [2] | $ 70,000,000 | |
Interest rate at end of period | [2] | 4.875% | |
Floating interest rate | LIBOR + 3.128% | ||
Debt instrument, basis spread on variable rate | 3.128% | ||
Debt instrument, term of variable rate | 3 months | ||
Avenue Subordinated Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date established | [3] | Dec. 29, 2014 | |
Maturity date | [3] | Dec. 29, 2024 | |
Total debt outstanding | [3] | $ 20,000,000 | |
Interest rate at end of period | [3] | 6.75% | |
Floating interest rate | LIBOR + 4.95% | ||
Debt instrument, basis spread on variable rate | 4.95% | ||
Debt instrument, term of variable rate | 3 months | ||
Pinnacle Financial Notes [Member] | |||
Debt Instrument [Line Items] | |||
Date established | [4] | Nov. 16, 2016 | |
Maturity date | [4] | Nov. 16, 2026 | |
Total debt outstanding | [4] | $ 120,000,000 | |
Interest rate at end of period | [4] | 5.25% | |
Floating interest rate | LIBOR + 3.884% | ||
Debt instrument, basis spread on variable rate | 3.884% | ||
Debt instrument, term of variable rate | 3 months | ||
[1] | Borrowing capacity on the revolving credit facility is $75.0 million. At March 31, 2017, there was no outstanding balance under this facility. This credit facility was recently amended to extend the maturity date to March 27, 2018. | ||
[2] | Migrates to three month Libor + 3.128% beginning July 30, 2020 through the end of the term. | ||
[3] | Migrates to three month Libor + 4.95% beginning January 1, 2020 through the end of the term. | ||
[4] | Migrates to three month Libor + 3.884% beginning November 16, 2021 through the end of the term. |