XML 58 R42.htm IDEA: XBRL DOCUMENT
v3.20.4

Fair Value of Financial Instruments (Tables) | 12 Months Ended
--- | ---
Dec. 31, 2020
Fair Value Disclosures [Abstract] |
Assets and Liabilities Measured at Fair Value on a Recurring Basis | The following tables present the financial instruments carried at fair value on a recurring basis as of December 31, 2020 and 2019, 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)
December 31, 2020 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. treasury securities | $ | 82,209 |  |  | $ | — |  |  | $ | 82,209 |  |  | $ | — |
U.S. government agency securities | 76,403 |  |  | — |  |  | 76,403 |  |  | — |
Mortgage-backed securities | 1,689,191 |  |  | — |  |  | 1,689,191 |  |  | — |
State and municipal securities | 1,443,363 |  |  | — |  |  | 1,427,866 |  |  | 15,497 |
Asset-backed securities | 177,936 |  |  | — |  |  | 177,936 |  |  | — |
Corporate notes and other | 117,579 |  |  | — |  |  | 117,579 |  |  | — |
Total investment securities available-for-sale | 3,586,681 |  |  | — |  |  | 3,571,184 |  |  | 15,497 |
Other investments | 73,395 |  |  | — |  |  | 25,636 |  |  | 47,759 |
Other assets | 242,470 |  |  | — |  |  | 242,470 |  |  | — |
Total assets at fair value | $ | 3,902,546 |  |  | $ | — |  |  | $ | 3,839,290 |  |  | $ | 63,256 |
Other liabilities | $ | 177,025 |  |  | $ | — |  |  | $ | 177,025 |  |  | $ | — |
Total liabilities at fair value | $ | 177,025 |  |  | $ | — |  |  | $ | 177,025 |  |  | $ | — |
December 31, 2019 |  |  |  |  |  |  |
Investment securities available-for-sale: |  |  |  |  |  |  |
U.S. treasury securities | $ | 72,867 |  |  | $ | — |  |  | $ | 72,867 |  |  | $ | — |
U.S. government agency securities | 79,692 |  |  | — |  |  | 79,692 |  |  | — |
Mortgage-backed securities | 1,463,907 |  |  | — |  |  | 1,463,907 |  |  | — |
State and municipal securities | 1,714,453 |  |  | — |  |  | 1,698,550 |  |  | 15,903 |
Asset-backed securities | 152,972 |  |  | — |  |  | 152,972 |  |  | — |
Corporate notes and other | 56,104 |  |  | — |  |  | 56,104 |  |  | — |
Total investment securities available-for-sale | 3,539,995 |  |  | — |  |  | 3,524,092 |  |  | 15,903 |
Other investments | 63,291 |  |  | — |  |  | 25,135 |  |  | 38,156 |
Other assets | 134,040 |  |  | — |  |  | 134,040 |  |  | — |
Total assets at fair value | $ | 3,737,326 |  |  | $ | — |  |  | $ | 3,683,267 |  |  | $ | 54,059 |
Other liabilities | $ | 87,613 |  |  | $ | — |  |  | $ | 87,613 |  |  | $ | — |
Total liabilities at fair value | $ | 87,613 |  |  | $ | — |  |  | $ | 87,613 |  |  | $ | — |
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 December 31, 2020 and 2019 (in thousands):
December 31, 2020 | 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 | $ | 12,360 |  |  | $ | — |  |  | $ | — |  |  | $ | 12,360 |  |  |
Collateral dependent loans (1) | 43,795 |  |  | — |  |  | — |  |  | 43,795 |  |  |
Total | $ | 56,155 |  |  | $ | — |  |  | $ | — |  |  | $ | 56,155 |  |  |
December 31, 2019 |  |  |  |  |  |  |  |  |
Other real estate owned | $ | 29,487 |  |  | $ | — |  |  | $ | — |  |  | $ | 29,487 |  |  |
Impaired loans, net (1) | 32,477 |  |  | — |  |  | — |  |  | 32,477 |  |  |
Total | $ | 61,964 |  |  | $ | — |  |  | $ | — |  |  | $ | 61,964 |  |  |
(1)The carrying value of collateral dependent loans at December 31, 2020 is net of a valuation allowance of $3.5 million, and the carrying value of impaired loans at December 31, 2019 is net of a valuation allowance of $3.3 million.
Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation |
| For the year ended December 31,
| 2020 |  | 2019
| Available-for-sale Securities |  | Other investments |  | Other liabilities |  | Available-for-sale Securities |  | Other investments |  | Other liabilities
Fair value, Jan. 1 | $ | 15,903 |  |  | $ | 38,156 |  |  | $ | — |  |  | $ | 14,595 |  |  | $ | 26,422 |  |  | $ | — |
Total net realized gains (losses) included in income | 110 |  |  | 1,067 |  |  | — |  |  | 116 |  |  | 2,785 |  |  | — |
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at Dec. 31 | 627 |  |  | — |  |  | — |  |  | 2,710 |  |  | — |  |  | — |
Purchases | — |  |  | 11,663 |  |  | — |  |  | — |  |  | 11,297 |  |  | — |
Issuances | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Settlements | (1,143) |  |  | (3,127) |  |  | — |  |  | (1,518) |  |  | (2,348) |  |  | — |
Transfers out of Level 3 | — |  |  | — |  |  | — |  |  | — |  |  | — |  |  | — |
Fair value, Dec. 31 | $ | 15,497 |  |  | $ | 47,759 |  |  | $ | — |  |  | $ | 15,903 |  |  | $ | 38,156 |  |  | $ | — |
Total realized gains (losses) included in income related to financial assets and liabilities still on the consolidated balance sheet at Dec. 31 | $ | 110 |  |  | $ | 1,067 |  |  | $ | — |  |  | $ | 116 |  |  | $ | 2,785 |  |  | $ | — |
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 December 31, 2020 and 2019. 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).
December 31, 2020 | 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 | $ | 1,028,359 |  |  | $ | 1,066,531 |  |  | $ | — |  |  | $ | 1,066,531 |  |  | $ | — |
Loans, net | 22,139,451 |  |  | 22,407,546 |  |  | — |  |  | — |  |  | 22,407,546 |
Consumer loans held-for-sale | 87,821 |  |  | 89,625 |  |  | — |  |  | 89,625 |  |  | — |
Commercial loans held-for-sale | 31,200 |  |  | 31,841 |  |  | — |  |  | 31,841 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits and securities sold under agreements to repurchase | 27,833,739 |  |  | 26,929,142 |  |  | — |  |  | — |  |  | 26,929,142 |
Federal Home Loan Bank advances | 1,087,927 |  |  | 1,189,035 |  |  | — |  |  | — |  |  | 1,189,035 |
Subordinated debt and other borrowings | 670,575 |  |  | 677,521 |  |  | — |  |  | — |  |  | 677,521 |
Off-balance sheet instruments: |  |  |  |  |  |  |  |  |
Commitments to extend credit (2) | 9,692,607 |  |  | 24,887 |  |  | — |  |  | — |  |  | 24,887 |
December 31, 2019 |  |  |  |  |  |  |  |  |
Financial assets: |  |  |  |  |  |  |  |  |
Securities held-to-maturity | $ | 188,996 |  |  | $ | 201,217 |  |  | $ | — |  |  | $ | 201,217 |  |  | $ | — |
Loans, net | 19,693,099 |  |  | 19,171,845 |  |  | — |  |  | — |  |  | 19,717,845 |
Consumer loans held-for-sale | 81,820 |  |  | 82,986 |  |  | — |  |  | 82,986 |  |  | — |
Commercial loans held-for-sale | 17,585 |  |  | 17,836 |  |  | — |  |  | 17,836 |  |  | — |
Financial liabilities: |  |  |  |  |  |  |  |  |
Deposits and securities sold under agreements to repurchase | 20,307,382 |  |  | 19,647,392 |  |  | — |  |  | — |  |  | 19,647,392 |
Federal Home Loan Bank advances | 2,062,534 |  |  | 2,078,514 |  |  | — |  |  | — |  |  | 2,078,514 |
Subordinated debt and other borrowings | 749,080 |  |  | 712,220 |  |  | — |  |  | — |  |  | 712,220 |
Off-balance sheet instruments: |  |  |  |  |  |  |  |  |
Commitments to extend credit (2) | 8,141,920 |  |  | 3,786 |  |  | — |  |  | — |  |  | 3,786 |
(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 period, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments, including both commitments for unfunded loans and standby letters of credit. In making this evaluation, Pinnacle Financial utilizes credit loss expectations on funded loans from our allowance for credit losses methodology and evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at December 31, 2020 and 2019, Pinnacle Financial included in other liabilities $23.2 million and $2.4 million, respectively, representing expected credit losses on off-balance sheet commitments, which are reflected in the estimated fair values of the related commitments. Also included in the fair values at December 31, 2020 and 2019, are unamortized fees related to these commitments of $1.7 million and $1.4 million, respectively.

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnNonrecurringBasisTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_FairValueAssetsMeasuredOnRecurringBasisUnobservableInputReconciliationTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Publisher FASB -Name Accounting Standards Codification -Topic 825 -SubTopic 10 -Section 50 -Paragraph 11 -URI http://asc.fasb.org/extlink&oid=121572278&loc=d3e13467-108611 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 (a) -URI http://asc.fasb.org/extlink&oid=117815213&loc=d3e19207-110258 + Details
Name: | us-gaap_FairValueByBalanceSheetGroupingTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- References No definition available. + Details
Name: | us-gaap_FairValueDisclosuresAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- 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
Name: | us-gaap_ScheduleOfFairValueAssetsAndLiabilitiesMeasuredOnRecurringBasisTableTextBlock
Namespace Prefix: | us-gaap_
Data Type: | nonnum:textBlockItemType
Balance Type: | na
Period Type: | duration