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Acquisitions (Tables) | 9 Months Ended
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Sep. 30, 2018 | Sep. 30, 2017
Business Acquisition [Line Items] |  |
Supplemental Pro-Forma Information |  | Supplemental Pro Forma Combined Results of Operations For the three months ended September 30, 2017, BNC was included in the operations of PNFP and, as such, no supplemental proforma information is necessary. The supplemental proforma information below for the nine months ended September 30, 2017 gives effect to the BNC acquisition as if it had occurred on January 1, 2017. These results combine the historical results of BNC into Pinnacle Financial's consolidated statement of income and, while certain adjustments were made for the estimated impact of certain fair value adjustments, they are not indicative of what would have occurred had the BNC Merger taken place on the indicated date nor are they intended to represent or be indicative of future results of operations. In particular, no adjustments have been made to eliminate the amount of BNC's provision for credit losses for the nine months ended September 30, 2017 that may not have been necessary had the acquired loans been recorded at fair value as of the beginning of 2017. Additionally, these financial statements were not adjusted for non-recurring expenses, such as merger-related expenses incurred by either Pinnacle Financial or BNC. Pinnacle Financial expects to achieve operating cost savings and other business synergies as a result of the acquisition which are also not reflected in the proforma amounts.
(dollars in thousands) |  | Nine Months Ended September 30, 2017
Revenue (1) |  | $ | 619,326 |
Income before income taxes |  | 261,516 |
(1) Net interest income plus noninterest income.
BNC Bancorp |  |
Business Acquisition [Line Items] |  |
Consideration Paid and an Allocation of Purchase Price to Net Assets Acquired | The following summarizes the consideration paid and an allocation of purchase price to net assets acquired (in thousands):
| Number of Shares |  | Amount
Equity consideration: |  |  |
Common stock issued | 27,687,100 |  |  | $ | 1,858,133 |
Total equity consideration |  |  | $ | 1,858,133 |
Non-equity consideration: |  |  |
Cash paid to redeem common stock |  |  | $ | 129 |
Total consideration paid |  |  | $ | 1,858,262 |
Allocation of total consideration paid: |  |  |
Fair value of net assets assumed including estimated identifiable intangible assets |  |  | $ | 602,689 |
Goodwill |  |  | 1,255,573 |
|  |  | $ | 1,858,262 |
Purchase Price Allocations |
| As of June 16, 2017
| BNC Historical Cost Basis |  | Fair Value Adjustments (1) |  | As Recorded by Pinnacle Financial
Assets |  |  |  |  |
Cash and cash equivalents | $ | 155,271 |  |  | $ | — |  |  | $ | 155,271 |
Investment securities | 643,875 |  |  | 1,667 |  |  | 645,542 |
Loans (2) | 5,782,720 |  |  | (181,430 | ) |  | 5,601,290 |
Mortgage loans held for sale | 27,026 |  |  | — |  |  | 27,026 |
Other real estate owned (3) | 20,143 |  |  | 1,382 |  |  | 21,525 |
Core deposit and other intangible (4) | — |  |  | 50,422 |  |  | 50,422 |
Property, plant and equipment (5) | 156,805 |  |  | (3,341 | ) |  | 153,464 |
Other assets (6) | 320,988 |  |  | 54,057 |  |  | 375,045 |
Total Assets | $ | 7,106,828 |  |  | $ | (77,243 | ) |  | $ | 7,029,585 |
Liabilities |  |  |  |  |  |  |
Interest-bearing deposits (7) | $ | 5,003,653 |  |  | $ | 4,355 |  |  | $ | 5,008,008 |
Non-interest bearing deposits | 1,199,342 |  |  | — |  |  | 1,199,342 |
Borrowings (8) | 183,389 |  |  | (6,412 | ) |  | 176,977 |
Other liabilities (9) | 35,729 |  |  | 6,840 |  |  | 42,569 |
Total Liabilities | $ | 6,422,113 |  |  | $ | 4,783 |  |  | $ | 6,426,896 |
Net Assets Acquired | $ | 684,715 |  |  | $ | (82,026 | ) |  | $ | 602,689 |
Explanation of certain fair value adjustments:
(1) | The amount represents the adjustment of the book value of BNC's assets and liabilities to their estimated fair value on the date of acquisition. Fair value adjustments were updated subsequent to the merger date based on the results of finalized valuation assessments.
(2) | The amount represents the adjustment of the net book value of BNC'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 of approximately 2.6% of the 3.1% mark on the acquired loan portfolio.
(3) | This adjustment reflects the Day 1 value of OREO properties.
(4) | The amount represents the fair value of the core deposit intangible asset representing the intangible value of the deposit base acquired and the fair value of the customer relationship intangible assets representing the intangible value of customer relationships acquired.
(5) | The amount represents the adjustment of the net book value of BNC's property, plant and equipment to estimated fair value based on market values of similar assets.
(6) | The amount represents the deferred tax asset recognized on the fair value adjustment of BNC's acquired assets and assumed liabilities and an adjustment to the Day 1 fair value of an alternative investment.
(7) | The amount represents the adjustment necessary because the weighted average interest rate of BNC'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.
(8) | The amount represents the combined adjustment necessary because the weighted average interest rate of BNC's subordinated debt issuance exceeded the cost of similar funding at the time of acquisition and because the weighted average interest rate of BNC's trust preferred securities issuances was lower than the cost of similar funding at the time of acquisition. The combined fair value adjustments will be amortized to increase future interest expense over the lives of the instruments.
(9) | The amount represents the adjustment to accrue obligations that existed but had not been recorded as of the acquisition date and the fair value of BNC lease obligations.

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- Definition Tabular disclosure of the amounts recognized as of the acquisition date for each major class of assets acquired and liabilities assumed. May include but not limited to the following: (a) acquired receivables; (b) contingencies recognized at the acquisition date; and (c) the fair value of noncontrolling interests in the acquiree. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 805 -SubTopic 20 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84161108&loc=d3e4845-128472 + Details
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