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Equity method investment | 6 Months Ended
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Jun. 30, 2024
Equity Method Investments and Joint Ventures [Abstract] |
Equity method investment | Note 2. Equity method investment A summary of BHG's financial position as of June 30, 2024 and December 31, 2023 and results of operations as of and for the three and six months ended June 30, 2024 and 2023, were as follows (in thousands):
| As of
| June 30, 2024 |  | December 31, 2023
Assets | $ | 3,723,436 |  |  | $ | 4,304,835 |
Liabilities | 3,194,211 |  |  | 3,749,821 |
Equity interests | 529,225 |  |  | 555,014 |
Total liabilities and equity | $ | 3,723,436 |  |  | $ | 4,304,835 |
| For the three months ended June 30, |  | For the six months ended June 30,
| 2024 |  | 2023 |  | 2024 |  | 2023
Revenues | $ | 228,808 |  |  | $ | 311,333 |  |  | $ | 506,068 |  |  | $ | 613,284 |
Net income | $ | 38,762 |  |  | $ | 57,395 |  |  | $ | 71,565 |  |  | $ | 104,038 |
At June 30, 2024, technology, trade name and customer relationship intangibles associated with Pinnacle Bank's investment in BHG, net of related amortization, totaled $5.8 million compared to $6.0 million as of December 31, 2023. Amortization expense of $59,000 and $118,000, respectively, was included for the three and six months ended June 30, 2024 compared to $87,000 and $174,000, respectively, for the same periods in the prior year. Accretion income of $35,000 and $74,000, respectively, was included in the three and six months ended June 30, 2024 compared to $45,000 and $140,000, respectively, for the same periods in the prior year. During the three and six months ended June 30, 2024, Pinnacle Bank received dividends of $43.3 million and $46.9 million, respectively, from BHG compared to $3.6 million and $27.6 million, respectively, received during the three and six months ended June 30, 2023. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. During the three and six months ended June 30, 2024 and 2023, Pinnacle Bank purchased no loans from BHG. At June 30, 2024 and December 31, 2023, there were $204.9 million and $263.0 million, respectively, of BHG joint venture program loans held by Pinnacle Bank. These loans were purchased from BHG by Pinnacle Bank at par and 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 between 4.50% and 6.00% per annum. During the three and six months ended June 30, 2024, Pinnacle Bank sold $20.5 million of BHG joint venture program loans back to BHG at par.

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- Definition The entire disclosure for equity method investments and joint ventures. Equity method investments are investments that give the investor the ability to exercise significant influence over the operating and financial policies of an investee. Joint ventures are entities owned and operated by a small group of businesses as a separate and specific business or project for the mutual benefit of the members of the group. + References Reference 1: http://www.xbrl.org/2003/role/recommendedDisclosureRef -Topic 740 -SubTopic 323 -Name Accounting Standards Codification -Section 50 -Paragraph 2 -Subparagraph (f) -Publisher FASB -URI https://asc.fasb.org/1943274/2147478156/740-323-50-2 Reference 2: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (a)(3) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 3: http://www.xbrl.org/2003/role/disclosureRef -Topic 323 -SubTopic 10 -Name Accounting Standards Codification -Section 50 -Paragraph 3 -Subparagraph (d) -Publisher FASB -URI https://asc.fasb.org/1943274/2147481687/323-10-50-3 Reference 4: http://www.xbrl.org/2003/role/disclosureRef -Name Accounting Standards Codification -Topic 323 -Publisher FASB -URI https://asc.fasb.org/323/tableOfContent + Details
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