Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2024

Condensed Financial Information Disclosure [Abstract]

Parent Company Only Financial Information

Note 22. Parent Company Only Financial Information

The following information presents the condensed balance sheets, statements of operations, and cash flows of Pinnacle Financial as of December 31, 2024 and 2023 and for each of the years in the three-year period ended December 31, 2024 (in thousands):

CONDENSED BALANCE SHEETS


	2024		2023
Assets:
Cash and cash equivalents	$	235,047	$	197,079
Investments in bank subsidiary	6,517,369		6,126,172
Investments in consolidated subsidiaries	16,779		14,031
Investment in unconsolidated subsidiaries:
Statutory Trusts	3,995		3,995
Other investments	71,067		67,848
Current income tax receivable	—		32,466
Other assets	32,567		144,597
	$	6,876,824	$	6,586,188
Liabilities and shareholders' equity:

Subordinated debt and other borrowings	425,821		424,938
Other liabilities	19,122		125,462
Shareholders' equity	6,431,881		6,035,788
	$	6,876,824	$	6,586,188

CONDENSED STATEMENTS OF OPERATIONS


	2024		2023		2022
Revenues:
Dividends received from bank subsidiary	$	109,917	$	106,203	$	110,834
Dividends received from nonbank subsidiaries	296		750		145
Income from equity method investment	—		—		33,817
Other income	10,722		12,360		6,478
Expenses:
Interest expense	26,899		23,263		18,590
Personnel expense, including stock compensation	40,934		41,879		39,552
Other expense	3,831		3,180		3,025
Income before income taxes and equity in undistributed income of subsidiaries	49,271		50,991		90,107
Income tax benefit	(17,422)		(13,547)		(8,444)
Income before equity in undistributed income of subsidiaries	66,693		64,538		98,551
Equity in undistributed income of bank subsidiary	406,609		496,236		461,004
Equity in undistributed income of nonbank subsidiaries	1,754		1,378		1,187
Net income	$	475,056	$	562,152	$	560,742
Preferred stock dividends	(15,192)		(15,192)		(15,192)
Net income available to common shareholders	$	459,864	$	546,960	$	545,550

CONDENSED STATEMENTS OF CASH FLOWS


	2024		2023		2022
Operating activities:
Net income	$	475,056	$	562,152	$	560,742
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Amortization and accretion	883		883		882
Stock-based compensation expense	40,934		41,879		39,552
Increase (decrease) in income tax payable, net	(117,879)		89,597		28,281
Deferred tax expense (benefit)	(2,677)		3,014		1,760
Income from equity method investments, net	—		—		(33,817)
Dividends received from equity method investment	—		—		10,365
Excess tax benefit from stock compensation	(2,806)		(208)		(3,027)
Loss (gain) on other investments, net	924		(2,088)		(2,563)
Decrease (increase) in other assets	147,172		(88,227)		(32,609)
Increase in other liabilities	14,345		1,099		3,881
Equity in undistributed income of bank subsidiary	(406,609)		(496,236)		(461,004)
Equity in undistributed income of nonbank subsidiaries	(1,754)		(1,378)		(1,187)
Net cash provided by operating activities	147,589		110,487		111,256
Investing activities:

Investment in consolidated nonbanking subsidiaries	(1,000)		(10,000)		—
Repayment of investment in consolidated nonbanking subsidiaries	—		9,691		—

Increase in other investments	(4,143)		(8,802)		(15,776)
Net cash used in investing activities	(5,143)		(9,111)		(15,776)
Financing activities:



Issuance of common stock pursuant to performance-based vesting (PSUs) and time-based vesting (RSUs) restricted stock units, net of shares withheld for taxes and related tax benefit	(14,430)		(3,725)		(5,462)
Exercise of common stock options, net of shares surrendered for taxes	(5,842)		(3,215)		(4,714)



Common dividends paid	(69,014)		(68,737)		(68,194)
Preferred stock dividends paid	(15,192)		(15,192)		(15,192)
Net cash used in financing activities	(104,478)		(90,869)		(93,562)
Net increase in cash	37,968		10,507		1,918
Cash and cash equivalents, beginning of year	197,079		186,572		184,654
Cash and cash equivalents, end of year	$	235,047	$	197,079	$	186,572

The investment in BHG previously held by Pinnacle Financial was contributed to Pinnacle Bank in an amount of $134.7 million, net of deferred tax liabilities associated with the investment, effective September 30, 2022.

Pinnacle Bank is subject to restrictions on the payment of dividends to Pinnacle Financial under Tennessee banking laws. Pinnacle Bank paid dividends of $109.9 million, $106.2 million and $110.8 million, respectively, to Pinnacle Financial in each of the years ended December 31, 2024, 2023 and 2022.