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Regulatory Matters | 9 Months Ended
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Sep. 30, 2018
Regulatory Capital Requirements [Abstract] |
Regulatory Matters | 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 nine months ended September 30, 2018, Pinnacle Bank paid $66.0 million in dividends to Pinnacle Financial. Since the first quarter of 2016, Pinnacle Financial has paid a quarterly common stock dividend of $0.14 per share. On October 16, 2018, Pinnacle's Board of Director's increased it's quarterly cash dividend to $0.16. The amount and timing of all future dividend payments by Pinnacle Financial, if any, is subject to discretion of Pinnacle Financial's board of directors and will depend on Pinnacle Financial's earnings, capital position, financial condition and other factors, including then applicable regulatory capital requirements, as they become known to Pinnacle Financial and Pinnacle Bank's ability to pay dividends 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 1 capital to risk-weighted assets, total risk-based capital to risk-weighted assets and 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 increasing 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 September 30, 2018, 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 certain 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 resulting ratios, not including the capital conservation buffer, are presented in the following table (in thousands):
| Actual |  | Minimum Capital Requirement |  | Minimum To Be Well-Capitalized
| Amount | Ratio |  | Amount | Ratio |  | Amount | Ratio
At September 30, 2018 |  |  |  |  |  |  |  |
Total capital to risk weighted assets: |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 2,508,348 |  | 12.1 | % |  | $ | 1,656,444 |  | 8.0 | % |  | NA |  | NA |
Pinnacle Bank | $ | 2,344,597 |  | 11.4 | % |  | $ | 1,650,616 |  | 8.0 | % |  | $ | 2,063,269 |  | 10.0 | %
Tier 1 capital to risk weighted assets: |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 1,955,095 |  | 9.4 | % |  | $ | 1,242,333 |  | 6.0 | % |  | NA |  | NA |
Pinnacle Bank | $ | 2,133,834 |  | 10.3 | % |  | $ | 1,237,962 |  | 6.0 | % |  | $ | 1,650,616 |  | 8.0 | %
Common equity Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 1,954,972 |  | 9.4 | % |  | $ | 931,750 |  | 4.5 | % |  | NA |  | NA |
Pinnacle Bank | $ | 2,133,711 |  | 10.3 | % |  | $ | 928,471 |  | 4.5 | % |  | $ | 1,341,125 |  | 6.5 | %
Tier 1 capital to average assets (*): |  |  |  |  |  |  |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 1,955,095 |  | 8.8 | % |  | $ | 888,029 |  | 4.0 | % |  | NA |  | NA |
Pinnacle Bank | $ | 2,133,834 |  | 9.6 | % |  | $ | 885,345 |  | 4.0 | % |  | $ | 1,106,681 |  | 5.0 | %
| Actual |  | Minimum Capital Requirement |  | Minimum To Be Well-Capitalized
| Amount | Ratio |  | Amount | Ratio |  | Amount | Ratio
At December 31, 2017 |  |  |  |  |  |  |  |
Total capital to risk weighted assets: |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 2,266,161 |  | 12.0 | % |  | $ | 1,509,496 |  | 8.0 | % |  | NA |  | NA |
Pinnacle Bank | $ | 2,134,344 |  | 11.3 | % |  | $ | 1,504,765 |  | 8.0 | % |  | $ | 1,880,956 |  | 10.0 | %
Tier 1 capital to risk weighted assets: |  |  |  |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 1,725,323 |  | 9.1 | % |  | $ | 1,132,122 |  | 6.0 | % |  | NA |  | NA |
Pinnacle Bank | $ | 1,936,313 |  | 10.3 | % |  | $ | 1,128,574 |  | 6.0 | % |  | $ | 1,504,765 |  | 8.0 | %
Common equity Tier 1 capital to risk weighted assets |  |  |  |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 1,725,219 |  | 9.1 | % |  | $ | 849,092 |  | 4.5 | % |  | NA |  | NA |
Pinnacle Bank | $ | 1,936,209 |  | 10.3 | % |  | $ | 846,430 |  | 4.5 | % |  | $ | 1,222,621 |  | 6.5 | %
Tier 1 capital to average assets (*): |  |  |  |  |  |  |  |  |  |  |
Pinnacle Financial | $ | 1,725,323 |  | 8.6 | % |  | $ | 797,861 |  | 4.0 | % |  | NA |  | NA |
Pinnacle Bank | $ | 1,936,313 |  | 9.7 | % |  | $ | 796,235 |  | 4.0 | % |  | $ | 995,294 |  | 5.0 | %
(*) Average assets for the above calculations were based on the most recent quarter.

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- Definition The entire disclosure for banks, savings institutions, and credit unions, for regulatory capital requirements imposed by the Federal Reserve System (FRB), the Federal Deposit Insurance Corporation (FDIC), the Office of Thrift Supervision (OTS) or for any state imposed capital requirements, as applicable. The disclosure may include (1) a description of regulatory capital requirements (a) for capital adequacy purposes and (b) established by the prompt corrective action provisions of Section 38 of the Federal Depository Insurance Act; (2) the actual or possible material effects of noncompliance with such requirements; (3) whether the entity is in compliance with the regulatory capital requirements including (a) required and actual ratios and amounts of Tier 1 leverage, Tier 1 risk-based, and total risk-based capital, tangible capital (for savings institutions), and Tier 3 capital for market risk (for certain banks and bank holding companies), (b) factors that may significantly affect capital adequacy; (4) the prompt corrective action category in which the entity was classified as of its most recent notification; (5) whether management believes any conditions or events since notification have changed the entity's category. Also may include additional information that might be disclosed in situations where substantial doubt about the entity's ability to continue as a going concern for a reasonable period of time. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1C -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958572-112826 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1D -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958573-112826 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1B -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958570-112826 Reference 4: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1A -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958569-112826 Reference 5: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1G -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958577-112826 Reference 6: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1F -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958575-112826 Reference 7: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1E -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958574-112826 Reference 8: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1 -URI http://asc.fasb.org/extlink&oid=84167132&loc=SL5958568-112826 Reference 9: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 942 -SubTopic 505 -Section 50 -Paragraph 1H -URI http://asc.fasb.org/extlink&oid=84167132&loc=d3e65071-112826 + Details
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