XML 76 R35.htm IDEA: XBRL DOCUMENT v3.22.4
Premises and Equipment and Lease Commitments (Tables)
12 Months Ended
Dec. 31, 2022
Premises and Equipment and Lease Commitments [Abstract]  
Schedule of Premises and Equipment
Premises and equipment at December 31, 2022 and 2021 are summarized as follows (in thousands):

 
 Range of Useful Lives
20222021
LandNot applicable$71,741 $70,240 
Buildings15 years-30 years206,434 202,255 
Leasehold improvements15 years-20 years62,209 54,922 
Furniture and equipment3 years-20 years144,979 138,766 
  485,363 466,183 
Less: accumulated depreciation and amortization 157,478 178,001 
   $327,885 $288,182 
Schedule of Lease Assets and Liabilities Right-of-use assets and lease liabilities relating to Pinnacle Financial's operating and finance leases are as follows at December 31, 2022 and 2021 (in thousands):
December 31, 2022December 31, 2021
Right-of-use assets:
Operating leases$126,767 $92,819 
Finance leases1,318 1,544 
Total right-of-use assets$128,085 $94,363 
Lease liabilities:
Operating leases$133,108 $97,925 
Finance leases2,458 2,739 
Total lease liabilities$135,566 $100,664 
Schedule of Lease Costs and Other Information
The total lease cost related to operating leases and short term leases is recognized on a straight-line basis over the lease term. For finance leases, right-of-use assets are amortized on a straight-line basis over the lease term and interest imputed on the lease liability is recognized using the effective interest method. The components of Pinnacle Financial's total lease cost were as follows for the years ended December 31, 2022, 2021 and 2020 (in thousands):
For the years ended December 31,
202220212020
Operating lease cost$18,292 $15,696 $13,963 
Short-term lease cost401 297 354 
Finance lease cost:
Interest on lease liabilities189 208 227 
Amortization of right-of-use asset226 226 226 
Sublease income(1,357)(1,309)(1,324)
Net lease cost$17,751 $15,118 $13,446 

The weighted average remaining lease term and weighted average discount rate for operating and finance leases at December 31, 2022 and 2021 are as follows:
December 31, 2022December 31, 2021
Weighted average remaining lease term
Operating leases10.44 years10.00 years
Finance leases5.84 years6.84 years
Weighted average discount rate
Operating leases3.11 %2.71 %
Finance leases7.22 %7.22 %

Cash flows related to operating and finance leases during the years ended December 31, 2022, 2021 and 2020 were as follows (in thousands):
For the years ended December 31,
202220212020
Operating cash flows related to operating leases$16,956 $14,712 $13,494 
Operating cash flows related to finance leases$189 $208 $227 
Financing cash flows related to finance leases$281 $261 $243 
Schedule of Future Minimum Operating Lease Payments Future undiscounted lease payments for operating and finance leases with initial terms of more than 12 months are as follows at December 31, 2022 (in thousands):
Operating LeasesFinance Leases
2023$18,975 $480 
202419,365 527 
202516,944 527 
202614,463 527 
202713,272 527 
Thereafter75,939 440 
Total undiscounted lease payments158,958 3,028 
Less: imputed interest(25,850)(570)
Net lease liabilities$133,108 $2,458 
Schedule of Future Minimum Finance Lease Payments Future undiscounted lease payments for operating and finance leases with initial terms of more than 12 months are as follows at December 31, 2022 (in thousands):
Operating LeasesFinance Leases
2023$18,975 $480 
202419,365 527 
202516,944 527 
202614,463 527 
202713,272 527 
Thereafter75,939 440 
Total undiscounted lease payments158,958 3,028 
Less: imputed interest(25,850)(570)
Net lease liabilities$133,108 $2,458