XML 22 R9.htm IDEA: XBRL DOCUMENT v3.25.1
Equity method investment
 3 Months Ended
Mar. 31, 2025
Equity Method Investments and Joint Ventures [Abstract]  
Equity method investment
Note 2. Equity method investment
A summary of BHG's financial position as of March 31, 2025 and December 31, 2024 and results of operations as of and for the three months ended March 31, 2025 and 2024, were as follows (in thousands):
 As of
 March 31, 2025December 31, 2024
Assets$4,025,567 $3,784,225 
Liabilities3,499,819 3,257,078 
Equity interests525,748 527,147 
Total liabilities and equity$4,025,567 $3,784,225 
 For the three months ended
March 31,
 20252024
Revenues$240,663 $277,260 
Net income$44,146 $32,803 

At both March 31, 2025 and December 31, 2024, technology, trade name and customer relationship intangibles associated with Pinnacle Bank's investment in BHG, net of related amortization, totaled $5.7 million. Amortization expense of $40,000 was included for the three months ended March 31, 2025 compared to $59,000 for the same period in the prior year. Accretion income of $29,000 was included in the three months ended March 31, 2025 compared to $39,000 for the same period in the prior year.

During the three months ended March 31, 2025, Pinnacle Bank received dividends of $24.9 million from BHG compared to $3.6 million received during the three months ended March 31, 2024. 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, 2025 and 2024, Pinnacle Bank purchased no loans from BHG. At March 31, 2025 and December 31, 2024, there were $147.4 million and $161.7 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 between 4.50% and 6.00% per annum. During the three months ended March 31, 2025 and 2024, Pinnacle Bank sold no BHG joint venture program loans back to BHG.