Equity method investment

3 Months Ended

Mar. 31, 2022

Equity Method Investments and Joint Ventures [Abstract]

Note 2. Equity method investment

A summary of BHG's financial position as of March 31, 2022 and December 31, 2021 and results of operations as of and for the three months ended March 31, 2022 and 2021, were as follows (in thousands):


	As of
	March 31, 2022		December 31, 2021
Assets	$	3,106,382	$	2,724,542

Liabilities	2,706,875		2,355,256
Equity interests	399,507		369,286
Total liabilities and equity	$	3,106,382	$	2,724,542


	For the three months ended March 31,
	2022		2021
Revenues	$	238,612	$	157,623
Net income	$	69,826	$	58,562

At March 31, 2022, technology, trade name and customer relationship intangibles, net of related amortization, totaled $6.7 million compared to $6.8 million as of December 31, 2021. Amortization expense of $128,000 was included for the three months ended March 31, 2022 compared to $188,000 for the same period in the prior year. Accretion income of $243,000 was included in the three months ended March 31, 2022 compared to $452,000 for the same period in the prior year.

During the three months ended March 31, 2022, Pinnacle Financial and Pinnacle Bank received dividends of $12.2 million from BHG in the aggregate compared to $10.0 million during the three months ended March 31, 2021. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. During the three months ended March 31, 2022, Pinnacle Bank purchased no loans from BHG. Pinnacle Bank purchased $74.6 million of loans from BHG during the three months ended March 31, 2021. These loans were purchased at par pursuant to BHG's joint venture loan program whereby BHG and Pinnacle Bank share proportionately in the credit risk of the acquired loans based on the rate on the loan and the rate of the purchase. The yield on this portfolio to Pinnacle Bank is anticipated to be approximately 4.75% per annum. At March 31, 2022 and December 31, 2021, there were $297.6 million and $319.1 million, respectively, of BHG joint venture program loans held by Pinnacle Bank.