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Income Taxes (Tables) | 12 Months Ended
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Dec. 31, 2018
Income Tax Disclosure [Abstract] |
Income tax expense (benefit) attributable to continuing operations | Income tax expense attributable to continuing operations for each of the years ended December 31 is as follows (in thousands):
| 2018 |  | 2017 |  | 2016
Current tax expense : |  |  |  |  |
Federal | $ | 73,921 |  |  | $ | 63,496 |  |  | $ | 49,769 |
State | 4,822 |  |  | 860 |  |  | — |
Total current tax expense | 78,743 |  |  | 64,356 |  |  | 49,769 |
Deferred tax expense: |  |  |  |  |  |  |
Federal | 10,162 |  |  | 26,339 |  |  | 12,776 |
State | 1,603 |  |  | 1,826 |  |  | 1,614 |
Deferred tax revaluation expense | — |  |  | 31,486 |  |  | — |
Total deferred tax expense | 11,765 |  |  | 59,651 |  |  | 14,390 |
Total income tax expense | $ | 90,508 |  |  | $ | 124,007 |  |  | $ | 64,159 |
Income tax rate reconciliation | Pinnacle Financial's income tax expense differs from the amounts computed by applying the Federal income tax statutory rates of 21% to income before income taxes for 2018 and 35% for 2017 and 2016. A reconciliation of the differences for each of the years in the three-year period ended December 31, 2018 is as follows (in thousands):
| 2018 |  | 2017 |  | 2016
Income tax expense at statutory rate | $ | 94,489 |  |  | $ | 104,295 |  |  | $ | 66,984 |
State excise tax expense, net of federal tax effect | 5,076 |  |  | 1,746 |  |  | 1,049 |
Tax-exempt securities | (7,222 | ) |  | (5,666 | ) |  | (2,510 | )
Federal tax credits | (845 | ) |  | (434 | ) |  | (282 | )
Bank owned life insurance | (2,764 | ) |  | (2,778 | ) |  | (1,242 | )
Insurance premiums | (112 | ) |  | (283 | ) |  | (159 | )
Revaluation of deferred tax assets and liabilities due to Tax Cuts and Jobs Act | — |  |  | 31,486 |  |  | — |
Excess tax benefits associated with equity compensation | (2,966 | ) |  | (5,365 | ) |  | — |
Change in uncertain tax positions | — |  |  | — |  |  | — |
Other items | 4,852 |  |  | 1,006 |  |  | 319 |
Income tax expense | $ | 90,508 |  |  | $ | 124,007 |  |  | $ | 64,159 |
Components of deferred income taxes included in other assets | The components of deferred income taxes included in other assets in the accompanying consolidated balance sheets at December 31, 2018 and 2017 are as follows (in thousands):
| 2018 |  | 2017
Deferred tax assets: |  |  |
Loan loss allowance | $ | 20,449 |  |  | $ | 16,240 |
Loans | 29,453 |  |  | 46,567 |
Insurance | 1,955 |  |  | 614 |
Accrued liability for supplemental retirement agreements | 6,231 |  |  | 7,413 |
Restricted stock and stock options | 9,026 |  |  | 8,232 |
Securities | 15,974 |  |  | — |
Cash flow hedge | 459 |  |  | 499 |
Equity method investment | 602 |  |  | 635 |
Leases | 1,460 |  |  | 1,738 |
Other real estate owned | 1,158 |  |  | 2,809 |
Net federal operating loss carryforward and credits | 13,754 |  |  | 18,085 |
Annual incentive compensation | 9,996 |  |  | 2,922 |
Other deferred tax assets | 2,503 |  |  | 2,451 |
Total deferred tax assets | 113,020 |  |  | 108,205 |
Deferred tax liabilities: |  |  |  |  |
Depreciation and amortization | 11,769 |  |  | 11,504 |
Core deposit intangible asset | 11,408 |  |  | 14,073 |
Securities | — |  |  | 616 |
REIT dividends | 1,589 |  |  | 3,073 |
FHLB related liabilities | 925 |  |  | 922 |
Subordinated debt | 1,134 |  |  | 1,077 |
Other deferred tax liabilities | 1,444 |  |  | 1,171 |
Total deferred tax liabilities | 28,269 |  |  | 32,436 |
Net deferred tax assets | $ | 84,751 |  |  | $ | 75,769 |
Rollforward of uncertain tax positions | A reconciliation of the beginning and ending unrecognized tax benefit related to state uncertain tax positions is as follows (in thousands):
| 2018 |  | 2017 |  | 2016
Balance at January 1, | $ | 2,838 |  |  | $ | 1,274 |  |  | $ | 134 |
Increases due to tax positions taken during the current year | 2,245 |  |  | 1,564 |  |  | 1,140 |
Increases due to tax positions taken during a prior year | — |  |  | — |  |  | — |
Decreases due to the lapse of the statute of limitations during the current year | — |  |  | — |  |  | — |
Decreases due to settlements with the taxing authorities during the current year | — |  |  | — |  |  | — |
Balance at December 31, | $ | 5,083 |  |  | $ | 2,838 |  |  | $ | 1,274 |

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- Definition Tabular disclosure of the components of income tax expense attributable to continuing operations for each year presented including, but not limited to: current tax expense (benefit), deferred tax expense (benefit), investment tax credits, government grants, the benefits of operating loss carryforwards, tax expense that results from allocating certain tax benefits either directly to contributed capital or to reduce goodwill or other noncurrent intangible assets of an acquired entity, adjustments of a deferred tax liability or asset for enacted changes in tax laws or rates or a change in the tax status of the entity, and adjustments of the beginning-of-the-year balances of a valuation allowance because of a change in circumstances that causes a change in judgment about the realizability of the related deferred tax asset in future years. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 9 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32639-109319 + Details
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- Definition Tabular disclosure of the components of net deferred tax asset or liability recognized in an entity's statement of financial position, including the following: the total of all deferred tax liabilities, the total of all deferred tax assets, the total valuation allowance recognized for deferred tax assets. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 740 -SubTopic 10 -Section 50 -Paragraph 2 -URI http://asc.fasb.org/extlink&oid=84230637&loc=d3e32537-109319 + Details
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