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Fair Value of Financial Instruments (Tables) | 9 Months Ended
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Sep. 30, 2019
Fair Value Disclosures [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 September 30, 2019 and December 31, 2018, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):
| 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)
September 30, 2019 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. Treasury securities | $ | 48,662 |  |  | $ | — |  |  | $ | 48,662 |  |  | $ | — |
U.S. government agency securities | 92,246 |  |  | — |  |  | 92,246 |  |  | — |
Mortgage-backed securities | 1,334,517 |  |  | — |  |  | 1,334,517 |  |  | — |
State and municipal securities | 1,699,886 |  |  | — |  |  | 1,684,020 |  |  | 15,866 |
Agency-backed securities | 162,733 |  |  | — |  |  | 162,733 |  |  | — |
Corporate notes and other | 55,391 |  |  | — |  |  | 55,391 |  |  | — |
Total investment securities available-for-sale | $ | 3,393,435 |  |  | $ | — |  |  | $ | 3,377,569 |  |  | $ | 15,866 |
Other investments | 59,195 |  |  | — |  |  | 25,247 |  |  | 33,948 |
Other assets | 96,814 |  |  | — |  |  | 96,814 |  |  | — |
Total assets at fair value | $ | 3,549,444 |  |  | $ | — |  |  | $ | 3,499,630 |  |  | $ | 49,814 |
Other liabilities | $ | 113,070 |  |  | $ | — |  |  | $ | 113,070 |  |  | $ | — |
Total liabilities at fair value | $ | 113,070 |  |  | $ | — |  |  | $ | 113,070 |  |  | $ | — |
December 31, 2018 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |  |  |  |  |
U.S. Treasury securities | $ | 30,300 |  |  | $ | — |  |  | $ | 30,300 |  |  | $ | — |
U.S. government agency securities | 70,159 |  |  | — |  |  | 70,159 |  |  | — |
Mortgage-backed securities | 1,310,945 |  |  | — |  |  | 1,310,945 |  |  | — |
State and municipal securities | 1,229,654 |  |  | — |  |  | 1,215,059 |  |  | 14,595 |
Agency-backed securities | 375,582 |  |  | — |  |  | 375,582 |  |  | — |
Corporate notes and other | 67,046 |  |  | — |  |  | 67,046 |  |  | — |
Total investment securities available-for-sale | 3,083,686 |  |  | — |  |  | 3,069,091 |  |  | 14,595 |
Other investments | 50,791 |  |  | — |  |  | 24,369 |  |  | 26,422 |
Other assets | 24,524 |  |  | — |  |  | 24,524 |  |  | — |
Total assets at fair value | $ | 3,159,001 |  |  | $ | — |  |  | $ | 3,117,984 |  |  | $ | 41,017 |
Other liabilities | $ | 46,550 |  |  | $ | — |  |  | $ | 46,550 |  |  | $ | — |
Total liabilities at fair value | $ | 46,550 |  |  | $ | — |  |  | $ | 46,550 |  |  | $ | — |
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 September 30, 2019 and December 31, 2018 (in thousands):
September 30, 2019 | 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)
Other real estate owned | $ | 30,049 |  |  | $ | — |  |  | $ | — |  |  | $ | 30,049 |
Impaired loans, net (1) | 41,141 |  |  | — |  |  | — |  |  | 41,141 |
Total | $ | 71,190 |  |  | $ | — |  |  | $ | — |  |  | $ | 71,190 |
December 31, 2018 |  |  |  |  |  |  |  |  |  |  |
Other real estate owned | $ | 15,165 |  |  | $ | — |  |  | $ | — |  |  | $ | 15,165 |
Impaired loans, net (1) | 40,830 |  |  | — |  |  | — |  |  | 40,830 |
Total | $ | 55,995 |  |  | $ | — |  |  | $ | — |  |  | $ | 55,995 |
(1) Amount is net of valuation allowance of $3.6 million and $4.0 million at September 30, 2019 and December 31, 2018, 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 and nine months ended September 30, 2019 and September 30, 2018 (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 September 30, |  | For the Nine months ended September 30,
| 2019 | 2018 |  | 2019 | 2018
| Available-for-sale Securities | Other assets | Available-for-sale Securities | Other assets |  | Available-for-sale Securities | Other assets | Available-for-sale Securities | Other assets
Fair value, beginning of period | $ | 15,263 |  | $ | 31,522 |  | $ | 15,290 |  | $ | 23,578 |  |  | $ | 14,595 |  | $ | 26,422 |  | $ | 17,029 |  | $ | 28,874 |
Total realized gains included in income | 29 |  | 1,264 |  | 30 |  | 81 |  |  | 87 |  | 2,193 |  | 90 |  | 2,858 |
Changes in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at period-end | 574 |  | — |  | 34 |  | — |  |  | 1,583 |  | — |  | (597 | ) | — |
Purchases | — |  | 1,777 |  | — |  | 2,455 |  |  | — |  | 6,965 |  | — |  | 7,273 |
Issuances | — |  | — |  | — |  | — |  |  | — |  | — |  | — |  | — |
Settlements | — |  | (615 | ) | — |  | (932 | ) |  | (399 | ) | (1,632 | ) | (1,168 | ) | (1,657 | )
Transfers out of Level 3 | — |  | — |  | — |  | — |  |  | — |  | — |  | — |  | (12,166 | )
Fair value, end of period | $ | 15,866 |  | $ | 33,948 |  | $ | 15,354 |  | $ | 25,182 |  |  | $ | 15,866 |  | $ | 33,948 |  | $ | 15,354 |  | $ | 25,182 |
Total realized gains included in income related to financial assets and liabilities still on the consolidated balance sheet at period-end | $ | 29 |  | $ | 1,264 |  | $ | 30 |  | $ | 81 |  |  | $ | 87 |  | $ | 2,193 |  | $ | 90 |  | $ | 2,858 |
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 September 30, 2019 and December 31, 2018. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash, cash equivalents, and restricted cash, 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):
September 30, 2019 | 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 | $ | 189,684 |  |  | $ | 202,821 |  |  | $ | — |  |  | $ | 202,821 |  |  | $ | — |
Loans, net | 19,251,995 |  |  | 19,216,128 |  |  | — |  |  | — |  |  | 19,216,128 |
Consumer loans held-for-sale | 73,042 |  |  | 74,161 |  |  | — |  |  | 74,161 |  |  | — |
Commercial loans held-for-sale | 21,312 |  |  | 21,638 |  |  | — |  |  | 21,638 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits and securities sold under |  |  |  |  |  |  |  |  |
agreements to repurchase | 20,096,079 |  |  | 19,442,956 |  |  | — |  |  | — |  |  | 19,442,956 |
Federal Home Loan Bank advances | 2,052,548 |  |  | 2,070,645 |  |  | — |  |  | — |  |  | 2,070,645 |
Subordinated debt and other borrowings | 750,488 |  |  | 713,051 |  |  | — |  |  | — |  |  | 713,051 |
Off-balance sheet instruments: |  |  |  |  |  |  |  |  |
Commitments to extend credit (2) | 7,797,246 |  |  | 1,067 |  |  | — |  |  | — |  |  | 1,067 |
Standby letters of credit (3) | 198,361 |  |  | 1,297 |  |  | — |  |  | — |  |  | 1,297 |
December 31, 2018 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Securities held-to-maturity | $ | 194,282 |  |  | $ | 193,131 |  |  | $ | — |  |  | $ | 193,131 |  |  | $ | — |
Loans, net | 17,623,974 |  |  | 17,288,795 |  |  | — |  |  | — |  |  | 17,288,795 |
Consumer loans held-for-sale | 34,196 |  |  | 34,929 |  |  | — |  |  | 34,929 |  |  | — |
Commercial loans held-for-sale | 15,954 |  |  | 16,296 |  |  | — |  |  | 16,296 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits and securities sold under |  |  |  |  |  |  |  |  |
agreements to repurchase | 18,953,848 |  |  | 18,337,848 |  |  | — |  |  | — |  |  | 18,337,848 |
Federal Home Loan Bank advances | 1,443,589 |  |  | 1,432,003 |  |  | — |  |  | — |  |  | 1,432,003 |
Subordinated debt and other borrowings | 485,130 |  |  | 464,616 |  |  | — |  |  | — |  |  | 464,616 |
Off-balance sheet instruments: |  |  |  |  |  |  |  |  |
Commitments to extend credit (2) | 6,921,689 |  |  | 1,733 |  |  | — |  |  | — |  |  | 1,733 |
Standby letters of credit (3) | 177,475 |  |  | 1,131 |  |  | — |  |  | — |  |  | 1,131 |
(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 September 30, 2019 and December 31, 2018, Pinnacle Financial included in other liabilities $2.4 million and $2.9 million, respectively, representing the inherent risks associated with these off-balance sheet commitments.
(3) At September 30, 2019 and December 31, 2018, the aggregate fair value of Pinnacle Financial's standby letters of credit was $1.3 million and $1.1 million, respectively. These amounts represent the unamortized fee associated with these standby letters of credit and are included in the consolidated balance sheets of Pinnacle Financial and are believed to approximate fair value. These fair values will decrease over time as the existing standby letters of credit approach their expiration dates.

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- Definition Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3). + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (bbb) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 3: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 3 -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19279-110258 Reference 2: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (c) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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- Definition Tabular disclosure of assets and liabilities, including [financial] instruments measured at fair value that are classified in stockholders' equity, if any, that are measured at fair value on a recurring basis. The disclosures contemplated herein include the fair value measurements at the reporting date by the level within the fair value hierarchy in which the fair value measurements in their entirety fall, segregating fair value measurements using quoted prices in active markets for identical assets (Level 1), significant other observable inputs (Level 2), and significant unobservable inputs (Level 3). + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (b) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Publisher FASB -Name Accounting Standards Codification -Topic 820 -SubTopic 10 -Section 50 -Paragraph 2 -Subparagraph (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
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