Title of Each Class
|
|
|
|
Name of Exchange on which Registered
|
Common Stock, par value $1.00
|
|
|
|
Nasdaq Global Select Market
|
|
|
Securities registered to Section 12(g) of the Act:
|
|
|
|
|
None
|
|
|
|
Page No.
|
|
|
|
|
3
|
|
|
|
15
|
|
|
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
23
|
|
|
|
24
|
|
|
|
24
|
|
|
|
25
|
|
|
|
27
|
|
|
|
53
|
|
|
|
54
|
|
|
|
104
|
|
|
|
104
|
|
|
|
104
|
|
|
|
105
|
|
|
|
105
|
|
|
|
105
|
|
|
|
105
|
|
|
|
105
|
|
|
|
105
|
|
|
|
106
|
|
|
|
108
|
· | Changing the assessment base for federal deposit insurance from the amount of insured deposits to consolidated assets less tangible capital, eliminating the ceiling and increasing the size of the floor of the Deposit Insurance Fund, and offsetting the impact of the increase in the minimum floor on institutions with less than $10 billion in assets. |
· | Making permanent the $250,000 limit for federal deposit insurance, increasing the cash limit of Securities Investor Protection Corporation protection to $250,000. |
· | Repealing the federal prohibition on payment of interest on demand deposits, thereby permitting depository institutions to pay interest on business transaction and other accounts. |
· | Centralizing responsibility for consumer financial protection by creating a new agency, the Consumer Financial Protection Bureau, responsible for implementing federal consumer protection laws, although banks below $10 billion in assets will continue to be examined and supervised for compliance with these laws by their primary federal bank regulator. |
· | Restricting the scope of the preemption of state law by the National Bank Act and disallowing national bank subsidiaries from availing themselves of such preemption. |
· | Limiting the debit interchange fees that certain financial institutions are permitted to charge. |
· | Imposing new requirements for mortgage lending, including new minimum underwriting standards, prohibitions on certain yield-spread compensation to mortgage originators, special consumer protections for mortgage loans that do not meet certain provision qualifications, prohibitions and limitations on certain mortgage terms and various new mandated disclosures to mortgage borrowers. |
· | Applying the same leverage and risk based capital requirements that apply to insured depository institutions to holding companies, although Pinnacle Financial's currently outstanding trust preferred securities (but not new issuances) would continue to qualify as Tier 1 capital unless otherwise restricted by federal regulators. |
· | Permitting national and state banks to establish de novo interstate branches at any location where a bank based in that state could establish a branch, and requiring that bank holding companies and banks be well-capitalized and well managed in order to acquire banks located outside their home state. |
· | Imposing new limits on affiliated transactions and causing derivative transactions to be subject to lending limits. |
· | Implementing certain corporate governance revisions that apply to all public companies. |
• | Acquiring direct or indirect ownership or control of any voting shares of any bank if, after the acquisition, the bank holding company will directly or indirectly own or control more than 5% of the bank's voting shares; |
• | Acquiring all or substantially all of the assets of any bank; or |
• | Merging or consolidating with any other bank holding company. |
• | The bank holding company has registered securities under Section 12 of the Securities Exchange Act of 1934; or |
• | No other person owns a greater percentage of that class of voting securities immediately after the transaction. |
• | Financial in nature; |
• | Incidental to a financial activity (as determined by the Federal Reserve in consultation with the Secretary of the U.S. Treasury); or |
• | Complementary to a financial activity and do not pose a substantial risk to the safety or soundness of depository institutions or the financial system generally (as determined by the Federal Reserve). |
• | Lending, trust and other banking activities; |
• | Insuring, guaranteeing, or indemnifying against loss or harm, or providing and issuing annuities, and acting as principal, agent, or broker for these purposes, in any state; |
• | Providing financial, investment, or advisory services; |
• | Issuing or selling instruments representing interests in pools of assets permissible for a bank to hold directly; |
• | Underwriting, dealing in or making a market in securities; |
• | Activities that the Federal Reserve has determined to be so closely related to banking or managing or controlling banks as to be a proper incident to banking or managing or controlling banks; |
• | Activities permitted outside of the United States that the Federal Reserve has determined to be usual in connection with banking or other financial operations abroad; |
• | Merchant banking through securities or insurance affiliates; and |
• | Insurance company portfolio investments. |
• | Factoring accounts receivable; |
• | Acquiring or servicing loans; |
• | Leasing personal property; |
• | Conducting discount securities brokerage activities; |
• | Performing selected data processing services; |
• | Acting as agent or broker in selling credit life insurance and other types of insurance in connection with credit transactions; and |
• | Underwriting certain insurance risks of the holding company and its subsidiaries. |
• | A bank's loans or extensions of credit, including purchases of assets subject to an agreement to repurchase, to affiliates; |
• | A bank's investment in affiliates; |
• | Assets a bank may purchase from affiliates, except for real and personal property exempted by the Federal Reserve; |
• | The amount of loans or extensions of credit to third parties collateralized by the securities or obligations of affiliates; |
• | Transactions involving the borrowing or lending of securities and any derivative transaction that results in credit exposure to an affiliate; and |
• | A bank's guarantee, acceptance or letter of credit issued on behalf of an affiliate. |
|
|
•
|
Federal Truth-In-Lending Act, governing disclosures of credit terms to consumer borrowers;
|
|
|
•
|
Home Mortgage Disclosure Act of 1975, requiring financial institutions to provide information to enable the public and public officials to determine whether a financial institution is fulfilling its obligation to help meet the housing needs of the community it serves;
|
|
|
•
|
Equal Credit Opportunity Act, prohibiting discrimination on the basis of race, creed or other prohibited factors in extending credit;
|
|
|
•
|
Fair Credit Reporting Act of 1978, governing the use and provision of information to credit reporting agencies;
|
•
|
Fair Debt Collection Act, governing the manner in which consumer debts may be collected by collection agencies;
|
|
|
•
|
Bank Secrecy Act, governing how banks and other firms report certain currency transactions and maintain appropriate safeguards against "money laundering" activities;
|
|
|
•
|
Soldiers' and Sailors' Civil Relief Act of 1940, governing the repayment terms of, and property rights underlying, secured obligations of persons in active military service; and
|
|
|
•
|
Rules and regulations of the various federal agencies charged with the responsibility of implementing the federal laws.
|
• | Right to Financial Privacy Act, which imposes a duty to maintain confidentiality of consumer financial records and prescribes procedures for complying with administrative subpoenas of financial records; and |
• | Electronic Funds Transfer Act and Regulation E issued by the Federal Reserve to implement that act, which govern automatic deposits to and withdrawals from deposit accounts and customers' rights and liabilities (including with respect to the permissibility of overdraft charges) arising from the use of automated teller machines and other electronic banking services. |
Period
|
Total Number of Shares Repurchased
|
Average Price Paid Per Share
|
Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs
|
Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs
|
||||||||||||
October 1, 2013 to October 31, 2013
|
437
|
$
|
31.38
|
-
|
-
|
|||||||||||
November 1, 2013 to November 30, 2013
|
1,502
|
31.76
|
-
|
-
|
||||||||||||
December 1, 2013 to December 31, 2013
|
172
|
32.55
|
-
|
-
|
||||||||||||
Total
|
2,111
|
$
|
31.75
|
-
|
-
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||
Statement of Financial Condition Data (as of December 31):
|
($ in 000s except per share data)
|
|||||||||||||||||||
Total assets
|
$
|
5,563,776
|
$
|
5,040,549
|
$
|
4,863,951
|
$
|
4,909,004
|
$
|
5,128,811
|
||||||||||
Loans, net of unearned income
|
4,144,493
|
3,712,162
|
3,291,351
|
3,212,440
|
3,563,382
|
|||||||||||||||
Allowance for loan losses
|
67,970
|
69,417
|
73,975
|
82,575
|
91,959
|
|||||||||||||||
Total securities
|
733,252
|
707,153
|
897,292
|
1,018,637
|
937,555
|
|||||||||||||||
Goodwill, core deposit and other intangible assets
|
247,492
|
249,144
|
251,919
|
254,795
|
257,793
|
|||||||||||||||
Deposits and securities sold under agreements to repurchase
|
4,603,938
|
4,129,855
|
3,785,931
|
3,979,352
|
4,099,064
|
|||||||||||||||
Advances from FHLB
|
90,637
|
75,850
|
226,069
|
121,393
|
212,655
|
|||||||||||||||
Subordinated debt and other borrowings
|
98,658
|
106,158
|
97,476
|
97,476
|
97,476
|
|||||||||||||||
Stockholders' equity
|
723,708
|
679,071
|
710,145
|
677,457
|
701,020
|
|||||||||||||||
|
||||||||||||||||||||
Statement of Operations Data:
|
||||||||||||||||||||
Interest income
|
$
|
191,282
|
$
|
185,422
|
$
|
188,346
|
$
|
203,348
|
$
|
205,716
|
||||||||||
Interest expense
|
15,384
|
22,558
|
36,882
|
58,975
|
74,925
|
|||||||||||||||
Net interest income
|
175,898
|
162,864
|
151,464
|
144,373
|
130,791
|
|||||||||||||||
Provision for loan losses
|
7,856
|
5,569
|
21,798
|
53,695
|
116,758
|
|||||||||||||||
Net interest income after provision for loan losses
|
168,042
|
157,296
|
129,666
|
90,678
|
14,033
|
|||||||||||||||
Noninterest income
|
47,104
|
43,397
|
37,940
|
36,315
|
39,651
|
|||||||||||||||
Noninterest expense
|
129,261
|
138,165
|
139,107
|
146,883
|
118,577
|
|||||||||||||||
Income (loss) before income taxes
|
85,884
|
62,527
|
28,499
|
(19,890
|
)
|
(64,893
|
)
|
|||||||||||||
Income tax expense (benefit)
|
28,158
|
20,643
|
(15,238
|
)
|
4,410
|
(29,393
|
)
|
|||||||||||||
Net income (loss)
|
57,726
|
41,884
|
43,737
|
(24,300
|
)
|
(35,500
|
)
|
|||||||||||||
Preferred dividends and accretion on common stock warrants
|
-
|
3,814
|
6,665
|
6,142
|
5,930
|
|||||||||||||||
Net income (loss) available to common stockholders
|
$
|
57,726
|
$
|
38,070
|
$
|
37,072
|
$
|
(30,442
|
)
|
$
|
(41,430
|
)
|
||||||||
|
||||||||||||||||||||
Per Share Data:
|
||||||||||||||||||||
Earnings (loss) per share available to common stockholders – basic
|
$
|
1.69
|
$
|
1.12
|
$
|
1.11
|
$
|
(0.93
|
)
|
$
|
(1.46
|
)
|
||||||||
Weighted average common shares outstanding – basic
|
34,200,770
|
33,899,667
|
33,420,015
|
32,789,871
|
28,395,618
|
|||||||||||||||
Earnings (loss) per common share available to common stockholders – diluted
|
$
|
1.67
|
$
|
1.10
|
$
|
1.09
|
$
|
(0.93
|
)
|
$
|
(1.46
|
)
|
||||||||
Weighted average common shares outstanding – diluted
|
34,509,261
|
34,487,808
|
34,060,228
|
32,789,871
|
28,395,618
|
|||||||||||||||
Common dividends per share
|
$
|
0.08
|
$
|
-
|
-
|
-
|
-
|
|||||||||||||
Book value per common share
|
$
|
20.55
|
$
|
19.57
|
$
|
18.56
|
$
|
17.22
|
$
|
18.41
|
||||||||||
Tangible book value per common share
|
$
|
13.52
|
$
|
12.39
|
11.33
|
9.80
|
10.71
|
|||||||||||||
Common shares outstanding at end of period
|
35,221,941
|
34,696,597
|
34,354,960
|
33,870,380
|
33,029,719
|
|||||||||||||||
|
||||||||||||||||||||
Performance Ratios:
|
||||||||||||||||||||
Return on average assets
|
1.11
|
%
|
0.78
|
%
|
0.77
|
%
|
(0.61
|
%)
|
(0.82
|
%)
|
||||||||||
Return on average stockholders' equity
|
8.22
|
%
|
5.46
|
%
|
5.27
|
%
|
(4.37
|
%)
|
(6.10
|
%)
|
||||||||||
Net interest margin
(1)
|
3.77
|
%
|
3.77
|
%
|
3.55
|
%
|
3.25
|
%
|
2.93
|
%
|
||||||||||
Net interest spread
(2)
|
3.65
|
%
|
3.61
|
%
|
3.33
|
%
|
2.99
|
%
|
2.64
|
%
|
||||||||||
Noninterest income to average assets
|
0.90
|
%
|
0.89
|
%
|
0.78
|
%
|
0.72
|
%
|
0.79
|
%
|
||||||||||
Noninterest expense to average assets
|
2.48
|
%
|
2.83
|
%
|
2.88
|
%
|
2.93
|
%
|
2.34
|
%
|
||||||||||
Efficiency ratio
(3)
|
57.96
|
%
|
66.99
|
%
|
73.45
|
%
|
81.29
|
%
|
69.57
|
%
|
||||||||||
Average loan to average deposit ratio
|
93.46
|
%
|
92.78
|
%
|
86.76
|
%
|
87.64
|
%
|
94.51
|
%
|
||||||||||
Average interest-earning assets to average interest-bearing liabilities
|
137.78
|
%
|
131.44
|
%
|
125.84
|
%
|
120.27
|
%
|
117.52
|
%
|
||||||||||
Average equity to average total assets ratio
|
13.47
|
%
|
14.30
|
%
|
14.55
|
%
|
13.90
|
%
|
13.55
|
%
|
||||||||||
Annualized dividend payout ratio
(4)
|
20.04
|
%
|
-
|
-
|
-
|
-
|
||||||||||||||
|
||||||||||||||||||||
Asset Quality Ratios:
|
||||||||||||||||||||
Allowance for loan loss coverage ratio
(5)
|
373.8
|
%
|
304.2
|
%
|
154.6
|
%
|
102.1
|
%
|
73.7
|
%
|
||||||||||
Allowance for loan losses to total loans
|
1.64
|
%
|
1.87
|
%
|
2.25
|
%
|
2.57
|
%
|
2.58
|
%
|
||||||||||
Nonperforming assets to total assets
|
0.60
|
%
|
0.82
|
%
|
1.80
|
%
|
2.86
|
%
|
3.01
|
%
|
||||||||||
Nonperforming assets to total loans and other real estate
|
0.80
|
%
|
1.11
|
%
|
2.66
|
%
|
4.29
|
%
|
4.29
|
%
|
||||||||||
Net loan charge-offs to average loans
|
0.24
|
%
|
0.29
|
%
|
0.94
|
%
|
1.96
|
%
|
1.71
|
%
|
||||||||||
|
||||||||||||||||||||
Capital Ratios (Pinnacle Financial):
|
||||||||||||||||||||
Leverage
(6)
|
10.9
|
%
|
10.6
|
%
|
11.4
|
%
|
10.7
|
%
|
10.7
|
%
|
||||||||||
Tier 1 risk-based capital
|
11.8
|
%
|
11.8
|
%
|
13.8
|
%
|
13.8
|
%
|
13.1
|
%
|
||||||||||
Total risk-based capital
|
13.0
|
%
|
13.0
|
%
|
15.3
|
%
|
15.4
|
%
|
14.8
|
%
|
(1) | Net interest margin is the result of net interest income for the period divided by average interest earning assets. |
(2) | Net interest spread is the result of the difference between the interest earned on interest earning assets less the interest paid on interest bearing liabilities. |
(3) | Efficiency ratio is the result of noninterest expense divided by the sum of net interest income and noninterest income. |
|
Years ended
December 31,
|
2013-2012
Percent
Increase
|
Year ended
December 31,
|
2012-2011
Percent
Increase
|
||||||||||||||||
|
2013
|
2012
|
(Decrease)
|
2011
|
(Decrease)
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Interest income
|
$
|
191,282
|
$
|
185,422
|
3.2
|
%
|
$
|
188,346
|
(1.6
|
%)
|
||||||||||
Interest expense
|
15,384
|
22,558
|
(31.8
|
%)
|
36,882
|
(38.8
|
%)
|
|||||||||||||
Net interest income
|
175,898
|
162,864
|
8.0
|
%
|
151,464
|
7.5
|
%
|
|||||||||||||
Provision for loan losses
|
7,857
|
5,569
|
41.1
|
%
|
21,798
|
(74.5
|
%)
|
|||||||||||||
Net interest income after provision for loan losses
|
168,041
|
157,295
|
6.8
|
%
|
129,666
|
21.3
|
%
|
|||||||||||||
Noninterest income
|
47,104
|
43,397
|
8.5
|
%
|
37,940
|
14.4
|
%
|
|||||||||||||
Noninterest expense
|
129,261
|
138,165
|
(6.4
|
%)
|
139,107
|
(0.7
|
%)
|
|||||||||||||
Net income before income taxes
|
85,884
|
62,527
|
37.4
|
%
|
28,499
|
119.4
|
%
|
|||||||||||||
Income tax expense (benefit)
|
28,158
|
20,643
|
36.4
|
%
|
(15,238
|
)
|
(235.5
|
%)
|
||||||||||||
Net income
|
57,726
|
41,884
|
37.8
|
%
|
43,737
|
(4.2
|
%)
|
|||||||||||||
Preferred dividends and preferred stock discount accretion
|
-
|
3,814
|
(100.0
|
%)
|
6,665
|
(42.8
|
%)
|
|||||||||||||
Net income available to common stockholders
|
$
|
57,726
|
$
|
38,070
|
51.6
|
%
|
$
|
37,072
|
2.7
|
%
|
||||||||||
Basic net income per common share available to common stockholders
|
$
|
1.69
|
$
|
1.12
|
50.9
|
%
|
$
|
1.11
|
0.9
|
%
|
||||||||||
Diluted net income per common share available to common stockholders
|
$
|
1.67
|
$
|
1.10
|
51.8
|
%
|
$
|
1.09
|
0.9
|
%
|
|
2013
|
2012
|
2011
|
||||||||||||||||||||
|
Average
Balances
|
Interest
|
Rates/
Yields
|
Average Balances
|
Interest
|
Rates/ Yields
|
Average
Balances
|
Interest
|
Rates/ Yields
|
||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Loans
(1)
|
$
|
3,861,166
|
|
169,253
|
4.40
|
%
|
$
|
3,438,401
|
|
160,037
|
4.66
|
%
|
$
|
3,218,123
|
|
154,750
|
4.82
|
%
|
|||||
Securities:
|
|||||||||||||||||||||||
Taxable
|
559,702
|
14,504
|
2.59
|
%
|
612,677
|
16,931
|
2.76
|
%
|
768,063
|
23,972
|
3.12
|
%
|
|||||||||||
Tax-exempt
(2)
|
173,202
|
6,378
|
4.91
|
%
|
182,217
|
6,577
|
4.82
|
%
|
193,397
|
7,394
|
5.10
|
%
|
|||||||||||
Federal funds sold and other
|
144,948
|
1,147
|
0.93
|
%
|
155,876
|
1,877
|
1.33
|
%
|
167,932
|
2,232
|
1.43
|
%
|
|||||||||||
Total interest-earning assets
|
4,739,018
|
191,282
|
4.10
|
%
|
4,389,171
|
185,422
|
4.29
|
%
|
4,347,515
|
188,348
|
4.40
|
%
|
|||||||||||
Nonearning assets:
|
|||||||||||||||||||||||
Intangible assets
|
248,291
|
250,619
|
253,443
|
||||||||||||||||||||
Other nonearning assets
|
240,018
|
233,764
|
232,477
|
||||||||||||||||||||
|
$
|
5,227,327
|
$
|
4,873,554
|
$
|
4,833,435
|
|||||||||||||||||
|
|||||||||||||||||||||||
Interest-bearing liabilities:
|
|||||||||||||||||||||||
Interest-bearing deposits:
|
|||||||||||||||||||||||
Interest checking
|
$
|
790,365
|
|
1,928
|
0.24
|
%
|
$
|
677,632
|
|
2,800
|
0.41
|
%
|
$
|
583,212
|
|
3,522
|
0.60
|
%
|
|||||
Savings and money market
|
1,714,154
|
5,795
|
0.34
|
%
|
1,575,174
|
7,884
|
0.50
|
%
|
1,597,965
|
13,773
|
0.86
|
%
|
|||||||||||
Time deposits
|
564,766
|
3,998
|
0.71
|
%
|
644,039
|
6,158
|
0.96
|
%
|
876,864
|
13,293
|
1.52
|
%
|
|||||||||||
Total interest-bearing deposits
|
3,069,285
|
11,721
|
0.38
|
%
|
2,896,845
|
16,842
|
0.58
|
%
|
3,058,041
|
30,588
|
1.00
|
%
|
|||||||||||
Securities sold under agreements to repurchase
|
113,742
|
239
|
0.21
|
%
|
134,989
|
455
|
0.34
|
%
|
161,845
|
1,110
|
0.69
|
%
|
|||||||||||
Federal Home Loan Bank advances
|
153,912
|
690
|
0.45
|
%
|
202,338
|
2,237
|
1.11
|
%
|
137,466
|
2,519
|
1.83
|
%
|
|||||||||||
Subordinated debt and other borrowing
|
102,571
|
2,734
|
2.67
|
%
|
105,131
|
3,024
|
2.87
|
%
|
97,476
|
2,665
|
2.73
|
%
|
|||||||||||
Total interest-bearing liabilities
|
3,439,510
|
15,384
|
0.45
|
%
|
3,339,303
|
22,558
|
0.68
|
%
|
3,454,828
|
36,882
|
1.07
|
%
|
|||||||||||
Noninterest-bearing deposits
|
1,062,089
|
-
|
-
|
809,268
|
-
|
-
|
650,602
|
-
|
-
|
||||||||||||||
Total deposits and interest- bearing liabilities
|
4,501,599
|
15,384
|
0.34
|
%
|
4,148,571
|
22,558
|
0.54
|
%
|
4,105,430
|
36,882
|
0.90
|
%
|
|||||||||||
Other liabilities
|
21,631
|
27,933
|
24,752
|
||||||||||||||||||||
Stockholders' equity
|
704,097
|
697,050
|
703,253
|
||||||||||||||||||||
|
$
|
5,227,327
|
$
|
4,873,554
|
$
|
4,833,435
|
|||||||||||||||||
Net interest income
|
$
|
175,898
|
$
|
162,864
|
$
|
151,464
|
|||||||||||||||||
Net interest spread
(3)
|
3.65
|
%
|
3.61
|
%
|
3.33
|
%
|
|||||||||||||||||
Net interest margin
(4)
|
3.77
|
%
|
3.77
|
%
|
3.55
|
%
|
(1) | Average balances of nonperforming loans are included in average loan balances. |
(2) | Yields based on the carrying value of those tax exempt instruments are shown on a fully tax equivalent basis. |
(3) | Yields realized on interest-bearing assets less the rates paid on interest-bearing liabilities. The net interest spread calculation excludes the impact of demand deposits. Had the impact of demand deposits been included, the net interest spread for the year ended December 31, 2013 would have been 3.75% compared to a net interest spread for the years ended December 31, 2012 and 2011 of 3.74% and 3.50%, respectively. |
(4) | Net interest margin is the result of net interest income calculated on a tax-equivalent basis divided by average interest earning assets for the period. |
|
2013 Compared to 2012
Increase (decrease) due to
|
2012 Compared to 2011
Increase (decrease) due to
|
||||||||||||||||||||||
|
Rate
|
Volume
|
Net
|
Rate
|
Volume
|
Net
|
||||||||||||||||||
Interest-earning assets:
|
|
|
|
|
|
|
||||||||||||||||||
Loans
|
$
|
(8,940
|
)
|
$
|
18,156
|
$
|
9,216
|
$
|
(5,149
|
)
|
$
|
10,437
|
$
|
5,288
|
||||||||||
Securities:
|
||||||||||||||||||||||||
Taxable
|
(1,042
|
)
|
(1,385
|
)
|
(2,427
|
)
|
(2,765
|
)
|
(4,276
|
)
|
(7,041
|
)
|
||||||||||||
Tax-exempt
|
164
|
(363
|
)
|
(199
|
)
|
(542
|
)
|
(275
|
)
|
(817
|
)
|
|||||||||||||
Federal funds sold
|
(624
|
)
|
(106
|
)
|
(730
|
)
|
(168
|
)
|
(187
|
)
|
(355
|
)
|
||||||||||||
Total interest-earning assets
|
(10,442
|
)
|
16,302
|
5,860
|
(8,623
|
)
|
5,698
|
(2,925
|
)
|
|||||||||||||||
|
||||||||||||||||||||||||
Interest-bearing liabilities:
|
||||||||||||||||||||||||
Interest-bearing deposits:
|
||||||||||||||||||||||||
Interest checking
|
(1,152
|
)
|
280
|
(872
|
)
|
(1,108
|
)
|
386
|
(722
|
)
|
||||||||||||||
Savings and money market
|
(2,520
|
)
|
431
|
(2,089
|
)
|
(5,753
|
)
|
(136
|
)
|
(5,889
|
)
|
|||||||||||||
Time deposits
|
(1,610
|
)
|
(550
|
)
|
(2,160
|
)
|
(4,910
|
)
|
(2,225
|
)
|
(7,135
|
)
|
||||||||||||
Total deposits
|
(5,282
|
)
|
161
|
(5,121
|
)
|
(11,771
|
)
|
(1,975
|
)
|
(13,746
|
)
|
|||||||||||||
Securities sold under agreements to repurchase
|
(175
|
)
|
(41
|
)
|
(216
|
)
|
(566
|
)
|
(89
|
)
|
(655
|
)
|
||||||||||||
Federal Home Loan Bank advances
|
(1,315
|
)
|
(232
|
)
|
(1,547
|
)
|
(998
|
)
|
723
|
(275
|
)
|
|||||||||||||
Subordinated debt and other borrowings
|
(210
|
)
|
(81
|
)
|
(291
|
)
|
137
|
215
|
352
|
|||||||||||||||
Total interest-bearing liabilities
|
(6,982
|
)
|
(193
|
)
|
(7,175
|
)
|
(13,198
|
)
|
(1,126
|
)
|
(14,324
|
)
|
||||||||||||
Net interest income
|
$
|
(3,460
|
)
|
$
|
16,495
|
$
|
13,035
|
$
|
4,575
|
$
|
6,824
|
$
|
11,399
|
|
Years ended
December 31,
|
2013-2012
Percent
Increase
|
Year ended
December 31,
|
2012-2011
Percent
Increase
|
||||||||||||||||
|
2013
|
2012
|
(Decrease)
|
2011
|
(Decrease)
|
|||||||||||||||
Noninterest income:
|
|
|
|
|
|
|||||||||||||||
Service charges on deposit accounts
|
$
|
10,558
|
$
|
9,918
|
6.5
|
%
|
$
|
9,244
|
7.3
|
%
|
||||||||||
Investment services
|
8,038
|
6,985
|
15.1
|
%
|
6,246
|
11.8
|
%
|
|||||||||||||
Insurance sales commissions
|
4,537
|
4,461
|
1.7
|
%
|
3,999
|
11.6
|
%
|
|||||||||||||
Gains on mortgage loans sold, net
|
6,243
|
6,699
|
(6.8
|
%)
|
4,155
|
61.2
|
%
|
|||||||||||||
Investment gains (losses) on sales and impairments, net | (1,466 | ) | 2,151 | (168.2 | %) | 961 | 123.8 | % | ||||||||||||
Trust fees | 3,747 | 3,195 | 17.3 | % | 3,000 | 6.5 | % | |||||||||||||
Other noninterest income:
|
||||||||||||||||||||
ATM and other consumer card fees
|
7,517
|
6,264
|
20.0
|
%
|
6,381
|
(1.8
|
%)
|
|||||||||||||
Bank-owned life insurance
|
2,116
|
919
|
130.3
|
%
|
1,159
|
(20.7
|
%)
|
|||||||||||||
Loan swap fees
|
1,162
|
2,013
|
(42.3
|
%)
|
101
|
1,893.1
|
%
|
|||||||||||||
Other noninterest income
|
4,651
|
791
|
488.0
|
%
|
2,694
|
(70.6
|
%)
|
|||||||||||||
Total other noninterest income
|
15,446
|
9,987
|
54.7
|
%
|
10,335
|
(3.4
|
%)
|
|||||||||||||
Total noninterest income
|
$
|
47,103
|
$
|
43,396
|
8.5
|
%
|
$
|
37,940
|
14.4
|
%
|
|
Years ended
December 31,
|
2013-2012
Percent
Increase
|
Year ended
December 31,
|
2012-2011
Percent
Increase
|
||||||||||||||||
|
2013
|
2012
|
(Decrease)
|
2011
|
(Decrease)
|
|||||||||||||||
Noninterest expense:
|
|
|
|
|
|
|||||||||||||||
Salaries and employee benefits:
|
|
|
|
|
|
|||||||||||||||
Salaries
|
$
|
45,773
|
$
|
44,829
|
2.1
|
%
|
$
|
43,450
|
3.2
|
%
|
||||||||||
Commissions
|
4,641
|
4,283
|
8.4
|
%
|
3,992
|
7.3
|
%
|
|||||||||||||
Annual cash incentives
|
14,331
|
10,314
|
38.9
|
%
|
9,389
|
9.9
|
%
|
|||||||||||||
Employee benefits and other
|
17,902
|
18,631
|
(3.9
|
%)
|
17,594
|
5.9
|
%
|
|||||||||||||
Total salaries and employee benefits
|
82,647
|
78,057
|
5.9
|
%
|
74,425
|
4.9
|
%
|
|||||||||||||
Equipment and occupancy
|
21,274
|
20,420
|
4.2
|
%
|
19,987
|
2.2
|
%
|
|||||||||||||
Other real estate expense
|
3,113
|
11,544
|
(73.0
|
%)
|
17,432
|
(33.8
|
%)
|
|||||||||||||
Marketing and business development
|
3,638
|
3,636
|
0.1
|
%
|
3,303
|
10.1
|
%
|
|||||||||||||
Postage and supplies
|
2,250
|
2,380
|
(5.5
|
%)
|
2,121
|
12.2
|
%
|
|||||||||||||
Amortization of intangibles
|
1,263
|
2,739
|
(53.9
|
%)
|
2,863
|
(4.3
|
%)
|
|||||||||||||
Other noninterest expense:
|
||||||||||||||||||||
Deposit related expenses
|
4,631
|
4,856
|
(4.6
|
%)
|
9,330
|
(48.0
|
%)
|
|||||||||||||
Lending related expenses
|
2,926
|
3,768
|
(22.3
|
%)
|
1,707
|
120.7
|
%
|
|||||||||||||
Investment sales expense
|
306
|
240
|
27.5
|
%
|
272
|
(11.8
|
%)
|
|||||||||||||
Trust expenses
|
452
|
376
|
20.2
|
%
|
376
|
0.0
|
%
|
|||||||||||||
FHLB restructuring
|
877
|
2,093
|
(58.1
|
%)
|
-
|
100.0
|
%
|
|||||||||||||
Administrative and other expenses
|
5,884
|
8,056
|
(27.0
|
%)
|
7,291
|
10.5
|
%
|
|||||||||||||
Total other noninterest expense
|
15,076
|
19,389
|
(22.2
|
%)
|
18,976
|
2.2
|
%
|
|||||||||||||
Total noninterest expense
|
$
|
129,261
|
$
|
138,165
|
(6.4
|
%)
|
$
|
139,107
|
(0.7
|
%)
|
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||||||||
Commercial real estate - Mortgage
|
$
|
1,383,435
|
33.4
|
%
|
$
|
1,178,196
|
31.7
|
%
|
$
|
1,110,962
|
33.8
|
%
|
$
|
1,094,615
|
34.1
|
%
|
$
|
1,118,068
|
31.4
|
%
|
||||||||||||||||||||
Consumer real estate - Mortgage
|
695,616
|
16.8
|
%
|
679,926
|
18.3
|
%
|
695,745
|
21.1
|
%
|
705,487
|
22.0
|
%
|
756,015
|
21.2
|
%
|
|||||||||||||||||||||||||
Construction and land development
|
316,191
|
7.6
|
%
|
313,552
|
8.4
|
%
|
274,248
|
8.3
|
%
|
331,261
|
10.3
|
%
|
525,271
|
14.7
|
%
|
|||||||||||||||||||||||||
Commercial and industrial
|
1,605,547
|
38.7
|
%
|
1,446,578
|
39.0
|
%
|
1,145,735
|
34.8
|
%
|
1,012,091
|
31.5
|
%
|
1,071,444
|
30.0
|
%
|
|||||||||||||||||||||||||
Consumer and other
|
143,704
|
3.5
|
%
|
93,910
|
2.5
|
%
|
64,661
|
2.0
|
%
|
68,986
|
2.1
|
%
|
92,584
|
2.7
|
%
|
|||||||||||||||||||||||||
Total loans
|
$
|
4,144,493
|
100.0
|
%
|
$
|
3,712,162
|
100.0
|
%
|
$
|
3,291,351
|
100.0
|
%
|
$
|
3,212,440
|
100.0
|
%
|
$
|
3,563,382
|
100.0
|
%
|
|
Amounts at December 31, 2013
|
Percentage of total at December 31,
|
||||||||||||
|
Fixed
Rates
|
Variable
Rates
(*)
|
Totals
|
2013
|
2012
|
|||||||||
Based on contractual maturity:
|
|
|
|
|
|
|||||||||
Due within one year
|
$
|
226,288
|
|
803,407
|
|
1,029,695
|
24.8
|
%
|
28.5
|
%
|
||||
Due in one year to five years
|
933,300
|
816,064
|
1,749,364
|
42.2
|
%
|
42.2
|
%
|
|||||||
Due after five years
|
567,697
|
797,737
|
1,365,434
|
32.9
|
%
|
29.3
|
%
|
|||||||
Totals
|
$
|
1,727,285
|
|
2,417,208
|
|
4,144,493
|
100.0
|
%
|
100.0
|
%
|
||||
|
||||||||||||||
Based on contractual repricing dates:
|
||||||||||||||
Daily floating rate
|
$
|
-
|
|
1,267,537
|
|
1,267,537
|
30.6
|
%
|
30.4
|
%
|
||||
Due within one year
|
226,288
|
471,417
|
697,706
|
16.8
|
%
|
27.2
|
%
|
|||||||
Due in one year to five years
|
933,300
|
406,188
|
1,339,488
|
32.3
|
%
|
29.3
|
%
|
|||||||
Due after five years
|
567,697
|
272,066
|
839,763
|
20.3
|
%
|
13.1
|
%
|
|||||||
Totals
|
$
|
1,727,285
|
|
2,417,208
|
|
4,144,493
|
100.0
|
%
|
100.0
|
%
|
|
At December 31, 2013
|
|
||||||||||||||||||
|
Outstanding Principal Balances
|
Unfunded Commitments
|
Total Exposure
|
Percent of
Pinnacle Bank Total Risk-Based Capital
|
Total Exposure at December 31, 2012
|
|||||||||||||||
|
|
|
|
|
|
|||||||||||||||
Lessors of nonresidential buildings
|
$
|
471,978
|
$
|
43,262
|
$
|
515,240
|
82.9
|
%
|
$
|
440,237
|
||||||||||
Lessors of residential buildings
|
242,029
|
28,744
|
270,773
|
43.6
|
%
|
215,899
|
Accruing loans past due 30 to 90 days:
|
December 31, 2013
|
December 31, 2012
|
|||||
Commercial real estate – mortgage
|
$
|
2,561
|
$
|
5,749
|
|||
Consumer real estate – mortgage
|
2,215
|
2,589
|
|||||
Construction and land development
|
4,839
|
1,572
|
|||||
Commercial and industrial
|
1,847
|
648
|
|||||
Consumer and other
|
1,488
|
526
|
|||||
Total accruing loans past due 30 to 90 days
|
$
|
12,950
|
$
|
11,084
|
|||
|
|||||||
Accruing loans past due 90 days or more:
|
|||||||
Commercial real estate – mortgage
|
$
|
2,232
|
$
|
-
|
|||
Consumer real estate – mortgage
|
-
|
254
|
|||||
Construction and land development
|
-
|
-
|
|||||
Commercial and industrial
|
825
|
604
|
|||||
Consumer and other
|
289
|
-
|
|||||
Total accruing loans past due 90 days or more
|
$
|
3,346
|
$
|
858
|
|||
|
|||||||
Ratios:
|
|||||||
Accruing loans past due 30 to 90 days as a percentage of total loans
|
0.31
|
%
|
0.34
|
%
|
|||
Accruing loans past due 90 days or more as a percentage of total loans
|
0.08
|
%
|
0.03
|
%
|
|||
Total accruing loans in past due status as a percentage of total loans
|
0.39
|
%
|
0.36
|
%
|
|
December 31,
|
|||||||
|
2013
|
2012
|
||||||
Developed lots
|
$
|
1,296
|
$
|
1,835
|
||||
Undeveloped land
|
11,564
|
13,285
|
||||||
Other
|
2,366
|
3,460
|
||||||
|
$
|
15,226
|
$
|
18,580
|
|
At
December 31, 2012
|
Payments, Sales and Reductions
(2)
|
Foreclosures
(3)
|
Inflows
(4)
|
At
December 31, 2013
|
|||||||||||||||
Nonperforming assets:
|
|
|
|
|
|
|||||||||||||||
Nonperforming loans
(1)
:
|
|
|
|
|
|
|||||||||||||||
Commercial real estate – mortgage
|
$
|
9,291
|
$
|
(9,651
|
)
|
$
|
(1,604
|
)
|
$
|
10,981
|
$
|
9,017
|
||||||||
Consumer real estate – mortgage
|
5,906
|
(8,650
|
)
|
(2,765
|
)
|
10,798
|
5,289
|
|||||||||||||
Construction and land development
|
4,509
|
(4,405
|
)
|
(262
|
)
|
1,228
|
1,070
|
|||||||||||||
Commercial and industrial
|
3,038
|
(19,027
|
)
|
-
|
18,554
|
2,565
|
||||||||||||||
Consumer and other
|
79
|
(884
|
)
|
(699
|
)
|
1,746
|
242
|
|||||||||||||
Total nonperforming loans
(1)
|
22,823
|
(42,617
|
)
|
(5,330
|
)
|
43,307
|
18,183
|
|||||||||||||
Other real estate owned
|
18,580
|
(8,684
|
)
|
5,330
|
-
|
15,226
|
||||||||||||||
Total nonperforming assets
|
41,403
|
(51,301
|
)
|
-
|
43,307
|
33,410
|
||||||||||||||
Troubled debt restructurings:
|
||||||||||||||||||||
Commercial real estate – mortgage
|
20,264
|
(6,811
|
)
|
-
|
-
|
13,453
|
||||||||||||||
Consumer real estate – mortgage
|
6,311
|
(2,754
|
)
|
-
|
427
|
3,984
|
||||||||||||||
Construction and land development
|
71
|
(7
|
)
|
-
|
49
|
113
|
||||||||||||||
Commercial and industrial
|
687
|
(455
|
)
|
-
|
1,588
|
1,820
|
||||||||||||||
Consumer and other
|
119
|
(86
|
)
|
-
|
243
|
276
|
||||||||||||||
Total troubled debt restructurings
|
27,452
|
(10,113
|
)
|
-
|
2,307
|
19,646
|
||||||||||||||
Total nonperforming assets and troubled debt restructurings
|
$
|
68,855
|
$
|
(61,414
|
)
|
$
|
-
|
$
|
45,615
|
$
|
53,056
|
|||||||||
|
||||||||||||||||||||
Ratios:
|
||||||||||||||||||||
Nonperforming loans to total loans
|
0.61
|
%
|
0.44
|
%
|
||||||||||||||||
Nonperforming assets to total loans plus other real estate owned
|
1.11
|
%
|
0.88
|
%
|
||||||||||||||||
Nonperforming assets plus troubled debt restructurings to total loans and other real estate owned
|
1.85
|
%
|
1.28
|
%
|
||||||||||||||||
|
||||||||||||||||||||
Nonperforming assets, potential problem loans and troubled debt restructurings to Pinnacle Bank Tier I capital and allowance for loan losses
|
31.04
|
%
|
19.02
|
%
|
||||||||||||||||
Classified asset ratio (Pinnacle Bank)
(5)
|
29.40
|
%
|
18.50
|
%
|
||||||||||||||||
Allowance for loan loss coverage ratio | 304.2 | % | 373.8 | % |
(1) | Approximately $10.8 million and $9.4 million as of December 31, 2013 and 2012, respectively, of nonperforming loans included above are currently paying pursuant to their contractual terms. |
(2) | Payments, sales and reductions in nonperforming loans are primarily attributable to payments we have collected from borrowers, charge-offs of recorded balances and nonaccrual loans that have been returned to accruing status during the year ended December 31, 2013. Payments, sales and reductions in other real estate owned represent either the sale, disposition or valuation adjustment on properties which had previously been foreclosed upon or acquired by deed in lieu of foreclosure. Payments, sales and reductions in troubled debt restructurings are those loans which were previously restructured whereby the borrower has reduced the outstanding balance of the loan or re-defaulted on the terms of the loan and therefore been charged-off. |
(3) | Foreclosures in nonperforming loans and troubled debt restructurings are representative of transfers of balances to OREO during the year ended December 31, 2013. |
(4) | Inflows in nonperforming loans are attributable to loans where we have discontinued the accrual of interest at some point during the year ended December 31, 2013. Increases in OREO represent the value of properties that have been foreclosed upon or acquired by deed in lieu of foreclosure during 2013. Increases in troubled debt restructurings are those loans where we have granted the borrower a concession due to the deteriorating financial condition of the borrower during 2013. These concessions can be in the form of a reduced interest rate, extended maturity date or other matters where we were unable to receive appropriate compensation for the concession. |
(5) | Classified assets as a percentage of Tier 1 capital plus allowance for loan losses. |
|
At December 31,
|
|||||||||||||||||||||||||||||||||||||||
|
2013
|
2012
|
2011
|
2010
|
2009
|
|||||||||||||||||||||||||||||||||||
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
Amount
|
Percent
|
||||||||||||||||||||||||||||||
Commercial real estate – Mortgage
|
$
|
21,372
|
33.4
|
%
|
$
|
19,634
|
31.7
|
%
|
$
|
23,397
|
33.8
|
%
|
$
|
19,252
|
34.1
|
%
|
$
|
22,505
|
31.4
|
%
|
||||||||||||||||||||
Consumer real estate – Mortgage
|
8,355
|
16.8
|
%
|
8,762
|
18.3
|
%
|
10,302
|
21.1
|
%
|
9,898
|
22.0
|
%
|
10,725
|
21.2
|
%
|
|||||||||||||||||||||||||
Construction and land development
|
7,235
|
7.6
|
%
|
9,164
|
8.5
|
%
|
12,040
|
8.3
|
%
|
19,122
|
10.3
|
%
|
23,027
|
14.7
|
%
|
|||||||||||||||||||||||||
Commercial and industrial
|
25,134
|
38.7
|
%
|
24,738
|
39.0
|
%
|
20,789
|
34.8
|
%
|
21,426
|
31.5
|
%
|
26,332
|
30.0
|
%
|
|||||||||||||||||||||||||
Consumer and other
|
1,632
|
3.5
|
%
|
1,094
|
2.5
|
%
|
1,125
|
2.0
|
%
|
1,874
|
2.1
|
%
|
2,456
|
2.7
|
%
|
|||||||||||||||||||||||||
Unallocated
|
4,242
|
|
NA |
6,025
|
|
NA |
6,322
|
|
NA |
11,003
|
|
NA |
6,914
|
|
NA | |||||||||||||||||||||||||
Total allowance for loan losses
|
$
|
67,970
|
100.0
|
%
|
$
|
69,417
|
100.0
|
%
|
$
|
73,975
|
100.0
|
%
|
$
|
82,575
|
100.0
|
%
|
$
|
91,959
|
100.0
|
%
|
|
For the year ended December 31,
|
||||||||||||||
|
2013
|
2012
|
2011
|
2010
|
2009
|
||||||||||
Balance at beginning of period
|
$
|
69,417
|
$
|
73,975
|
$
|
82,575
|
$
|
91,959
|
$
|
36,484
|
|||||
Provision for loan losses
|
7,857
|
5,569
|
21,798
|
53,695
|
116,758
|
||||||||||
Charged-off loans:
|
|||||||||||||||
Commercial real estate - Mortgage
|
(4,123)
|
|
(4,667)
|
(3,044)
|
(9,041)
|
(986)
|
|
||||||||
Consumer real estate - Mortgage
|
(2,250)
|
|
(6,731)
|
(5,076)
|
(6,769)
|
(4,881)
|
|
||||||||
Construction and land development
|
(1,351)
|
|
(2,530)
|
(10,157)
|
(27,526)
|
(23,952)
|
|
||||||||
Commercial and industrial
|
(8,159)
|
(3)
|
(4,612)
|
(15,360)
|
(2) |
(23,555)
|
(31,134)
|
(1)
|
|||||||
Consumer and other
|
(1,369)
|
|
(1,117)
|
(1,213)
|
(652)
|
(1,646)
|
|
||||||||
Total charged-off loans
|
(17,252)
|
|
(19,657)
|
(34,850)
|
(67,543)
|
(62,599)
|
|
||||||||
Recoveries of previously charged-off loans:
|
|||||||||||||||
Commercial real estate - Mortgage
|
500
|
285
|
116
|
343
|
-
|
||||||||||
Consumer real estate - Mortgage
|
1,209
|
818
|
495
|
377
|
622
|
||||||||||
Construction and land development
|
1,464
|
1,155
|
1,530
|
2,618
|
139
|
||||||||||
Commercial and industrial
|
4,531
|
(2) |
7,175
|
(1) |
2,167
|
874
|
258
|
||||||||
Consumer and other loans
|
244
|
97
|
144
|
252
|
297
|
||||||||||
Total recoveries of previously charged-off loans
|
7,948
|
9,530
|
4,452
|
4,464
|
1,316
|
||||||||||
Net charge-offs
|
(9,304)
|
|
(10,127)
|
(30,397)
|
(63,079)
|
(61,283)
|
|
||||||||
Balance at end of period
|
67,970
|
$
|
69,417
|
$
|
73,975
|
$
|
82,575
|
$
|
91,959
|
||||||
|
|||||||||||||||
Ratio of allowance for loan losses to total loans outstanding at end of period
|
1.64%
|
|
1.87%
|
2.25%
|
2.57%
|
2.58%
|
|
||||||||
Ratio of net charge-offs to average loans outstanding for the period
|
0.24%
|
|
0.29%
|
0.92%
|
1.96%
|
1.71%
|
|
(1) | Includes the 2012 $5.6 million recovery of a $21.5 million loan previously charged off in 2009. |
(2) | Includes the 2013 $2.9 million recovery of a $5.2 million loan previously charged off in 2011. |
(3) | Includes the 2013 $3.0 million charge off of one loan. |
|
December 31,
|
|
|
2013
|
2012
|
Weighted average life
|
5.22 years
|
4.77 years
|
Effective duration
|
4.61%
|
3.16%
|
Weighted average coupon
|
3.50%
|
3.88%
|
Tax equivalent yield
|
3.15%
|
3.26%
|
|
U.S. Treasury
securities
|
U.S. government
agency securities
|
State and Municipal
securities
|
Corporate securities
|
Totals
|
|||||||||||||||||||
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||
At December 31, 2013:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Due in one year or less
|
$
|
-
|
0.0
|
%
|
$
|
500
|
0.3
|
%
|
$
|
3,015
|
5.9
|
%
|
$
|
-
|
0.0
|
%
|
$
|
3,515
|
5.1
|
%
|
||||
Due in one year to five years
|
-
|
0.0
|
%
|
10,325
|
0.6
|
%
|
16,283
|
5.1
|
%
|
1,635
|
0.8
|
%
|
28,243
|
3.2
|
%
|
|||||||||
Due in five years to ten years
|
-
|
0.0
|
%
|
41,799
|
2.2
|
%
|
76,893
|
5.9
|
%
|
9,594
|
4.8
|
%
|
128,286
|
4.6
|
%
|
|||||||||
Due after ten years
|
-
|
0.0
|
%
|
51,249
|
2.7
|
%
|
52,220
|
5.5
|
%
|
-
|
0.0
|
%
|
103,469
|
4.1
|
%
|
|||||||||
|
$
|
-
|
0.0
|
%
|
$
|
103,873
|
2.3
|
%
|
$
|
148,411
|
5.4
|
%
|
$
|
11,229
|
4.2
|
%
|
263,513
|
4.3
|
%
|
|||||
Mortgage-backed securities
|
412,936
|
2.7
|
%
|
|||||||||||||||||||||
Asset-backed securities
|
17,007
|
1.4
|
%
|
|||||||||||||||||||||
Total available-for sale securities
|
$
|
693,456
|
3.3
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||
Due in one year or less
|
$
|
-
|
0.0
|
%
|
$
|
-
|
0.0
|
%
|
$
|
317
|
1.6
|
%
|
$
|
-
|
0.0
|
%
|
$
|
317
|
1.6
|
%
|
||||
Due in one year to five years
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
12,097
|
1.7
|
%
|
-
|
0.0
|
%
|
12,097
|
1.7
|
%
|
|||||||||
Due in five years to ten years
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
15,105
|
2.4
|
%
|
-
|
0.0
|
%
|
15,105
|
2.4
|
%
|
|||||||||
Due after ten years
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
12,277
|
3.8
|
%
|
-
|
0.0
|
%
|
12,277
|
3.8
|
%
|
|||||||||
|
$
|
-
|
0.0
|
%
|
$
|
-
|
0.0
|
%
|
$
|
39,796
|
2.7
|
%
|
$
|
-
|
0.0
|
%
|
$
|
39,796
|
2.7
|
%
|
||||
Mortgage-backed securities
|
-
|
0.0
|
%
|
|||||||||||||||||||||
Asset-backed securities
|
-
|
0.0
|
%
|
|||||||||||||||||||||
Total held-to-maturity securities
|
$
|
39,796
|
2.7
|
%
|
|
U.S. Treasury
securities
|
U.S. government
agency securities
|
State and Municipal
securities
|
Corporate
securities
|
Totals
|
|||||||||||||||||||
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
Amount
|
Yield
|
||||||||||||||
At December 31, 2012:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Securities available-for-sale:
|
|
|
|
|
|
|
|
|
|
|
||||||||||||||
Due in one year or less
|
$
|
-
|
0.0
|
%
|
$
|
-
|
0.0
|
%
|
$
|
3,348
|
3.6
|
%
|
$
|
1,176
|
3.0
|
%
|
$
|
4,524
|
3.4
|
%
|
||||
Due in one year to five years
|
-
|
0.0
|
%
|
6,057
|
0.6
|
%
|
29,468
|
3.5
|
%
|
615
|
1.5
|
%
|
36,140
|
3.0
|
%
|
|||||||||
Due in five years to ten years
|
-
|
0.0
|
%
|
45,329
|
1.9
|
%
|
79,010
|
4.1
|
%
|
9,605
|
5.0
|
%
|
133,944
|
3.4
|
%
|
|||||||||
Due after ten years
|
-
|
0.0
|
%
|
59,066
|
2.7
|
%
|
79,901
|
4.0
|
%
|
-
|
0.0
|
%
|
138,967
|
3.4
|
%
|
|||||||||
|
$
|
-
|
0.0
|
%
|
$
|
110,452
|
2.3
|
%
|
$
|
191,727
|
4.0
|
%
|
$
|
11,396
|
4.6
|
%
|
313,575
|
3.4
|
%
|
|||||
Mortgage-backed securities
|
375,651
|
3.3
|
%
|
|||||||||||||||||||||
Asset-backed securities
|
17,352
|
1.4
|
%
|
|||||||||||||||||||||
Total available-for-sale securities
|
$
|
706,578
|
3.3
|
%
|
||||||||||||||||||||
|
||||||||||||||||||||||||
Securities held-to-maturity:
|
||||||||||||||||||||||||
Due in one year or less
|
$
|
-
|
0.0
|
%
|
$
|
-
|
0.0
|
%
|
$
|
200
|
3.0
|
%
|
$
|
-
|
0.0
|
%
|
$
|
200
|
3.0
|
%
|
||||
Due in one year to five years
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
375
|
3.5
|
%
|
-
|
0.0
|
%
|
375
|
3.5
|
%
|
|||||||||
Due in five years to ten years
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
|||||||||
Due after ten years
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
|||||||||
|
$
|
-
|
0.0
|
%
|
$
|
-
|
0.0
|
%
|
$
|
575
|
3.3
|
%
|
$
|
-
|
0.0
|
%
|
$
|
575
|
3.3
|
%
|
||||
Mortgage-backed securities
|
-
|
0.0
|
%
|
|||||||||||||||||||||
Asset-backed securities
|
-
|
0.0
|
%
|
|||||||||||||||||||||
Total held-to-maturity securities
|
$
|
575
|
3.3
|
%
|
|
December 31,
2013
|
Percent
|
December 31,
2012
|
Percent
|
||||||||||||
Core funding:
|
|
|
|
|
||||||||||||
Noninterest-bearing deposit accounts
|
$
|
1,167,763
|
24.4
|
%
|
$
|
985,689
|
22.9
|
%
|
||||||||
Interest-bearing demand accounts
|
870,662
|
18.2
|
%
|
760,787
|
17.6
|
%
|
||||||||||
Savings and money market accounts
|
1,655,087
|
34.5
|
%
|
1,561,715
|
36.2
|
%
|
||||||||||
Time deposit accounts less than $250,000
|
408,520
|
8.5
|
%
|
467,013
|
10.8
|
%
|
||||||||||
Total core funding
|
4,102,032
|
85.5
|
%
|
3,775,204
|
87.6
|
%
|
||||||||||
Non-core funding:
|
||||||||||||||||
Relationship based non-core funding:
|
||||||||||||||||
Reciprocating NOW deposits
|
13,633
|
0.3
|
%
|
-
|
-
|
|||||||||||
Reciprocating money market accounts
|
309,276
|
6.4
|
%
|
100,542
|
2.3
|
%
|
||||||||||
Reciprocating time deposits (1)
|
32,689
|
0.7
|
%
|
52,239
|
1.2
|
%
|
||||||||||
Other time deposits
|
77,838
|
1.6
|
%
|
87,204
|
2.0
|
%
|
||||||||||
Securities sold under agreements to repurchase
|
70,465
|
1.5
|
%
|
114,667
|
2.7
|
%
|
||||||||||
Total relationship based non-core funding
|
503,901
|
10.5
|
%
|
354,651
|
8.2
|
%
|
||||||||||
Wholesale funding:
|
||||||||||||||||
Public funds
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
||||||||||
Brokered deposits
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
||||||||||
Federal Home Loan Bank advances
|
90,637
|
1.9
|
%
|
75,850
|
1.8
|
%
|
||||||||||
Holding Company loan
|
16,182
|
0.3
|
%
|
23,682
|
0.6
|
%
|
||||||||||
Subordinated debt – Pinnacle Bank
|
-
|
0.0
|
%
|
-
|
0.0
|
%
|
||||||||||
Subordinated debt – Pinnacle Financial
|
82,476
|
1.7
|
%
|
82,476
|
1.8
|
%
|
||||||||||
Total wholesale funding
|
189,295
|
3.9
|
%
|
182,008
|
4.2
|
%
|
||||||||||
Total non-core funding
|
693,196
|
14.5
|
%
|
536,659
|
12.4
|
%
|
||||||||||
Totals
|
$
|
4,795,228
|
100.0
|
%
|
$
|
4,311,863
|
100.0
|
%
|
(1) | The reciprocating time deposit category consists of deposits we receive from a bank network (the CDARS network) in connection with deposits of our customers in excess of our FDIC coverage limit that we place with the CDARS network. |
|
Balances
|
Weighted Avg. Rate
|
||||||
Denominations less than $250,000
|
|
|
||||||
Three months or less
|
$
|
108,126
|
0.43
|
%
|
||||
Over three but less than six months
|
121,965
|
0.43
|
%
|
|||||
Over six but less than twelve months
|
108,321
|
0.58
|
%
|
|||||
Over twelve months
|
102,797
|
0.95
|
%
|
|||||
|
441,209
|
0.59
|
%
|
|||||
Denomination $250,000 and greater
|
||||||||
Three months or less
|
17,320
|
0.48
|
%
|
|||||
Over three but less than six months
|
29,634
|
0.47
|
%
|
|||||
Over six but less than twelve months
|
17,427
|
0.64
|
%
|
|||||
Over twelve months
|
13,459
|
1.56
|
%
|
|||||
|
77,840
|
0.70
|
%
|
|||||
Totals
|
$
|
519,049
|
0.60
|
%
|
|
Scheduled
Maturities
|
Weighted Average Interest Rates
(1)
|
||||||
|
|
|
||||||
2014
|
$
|
75,000
|
0.12
|
%
|
||||
2015
|
-
|
0.00
|
%
|
|||||
2016
|
15,000
|
2.39
|
%
|
|||||
2017
|
-
|
2.87
|
%
|
|||||
2018
|
12
|
2.00
|
%
|
|||||
Thereafter
|
467
|
2.45
|
%
|
|||||
|
$
|
90,479
|
||||||
Weighted average interest rate
|
0.51
|
%
|
(1) | Some FHLB advances include variable interest rates and could increase in the future. The table reflects rates in effect as of December 31, 2013. |
Date
Established
|
Maturity
|
Common Securities
|
Subordinated
Debentures
|
Floating Interest Rate
|
Interest Rate at
December 31, 2013
|
||||
Trust I
|
December 29, 2003
|
December 30, 2033
|
$
|
310,000
|
$
|
10,000,000
|
Libor + 2.80%
|
3.04
|
%
|
Trust II
|
September 15, 2005
|
September 30, 2035
|
619,000
|
20,000,000
|
Libor + 1.40%
|
1.65
|
%
|
||
Trust III
|
September 7, 2006
|
September 30, 2036
|
619,000
|
20,000,000
|
Libor + 1.65%
|
1.90
|
%
|
||
Trust IV
|
October 31, 2007
|
September 30, 2037
|
928,000
|
30,000,000
|
Libor + 2.85%
|
3.09
|
%
|
● | A base rate generally defined as the sum of (i) the highest of (x) the lender's "base" or "prime" rate, (y) the average overnight federal funds effective rate plus one-half percent (0.50%) per annum or (z) one-month LIBOR plus one percent (1%) per annum and (ii) an applicable margin as noted below; or |
● | A LIBOR rate generally defined as the sum of (i) the average of the offered rates of interest quoted in the London Inter-Bank Eurodollar Market for U.S. Dollar deposits with prime banks (as published by Reuters or other commercially available source) for one, two or three months (all as selected by the Company), and (ii) an applicable margin. |
● | Earnings simulation model . We believe that interest rate risk is best measured by our earnings simulation modeling. Earning assets, interest-bearing liabilities, and off-balance sheet financial instruments are combined with ALCO forecasts of interest rates for the next 12 months and are combined with other factors in order to produce various earnings simulations. To limit interest rate risk, we have guidelines for our earnings at risk which seek to limit the variance of net interest income in both gradual and instantaneous changes to interest rates. For changes up or down in rates from management's flat interest rate forecast over the next twelve months, limits in the decline in net interest income are as follows: |
● | -10.0% for a gradual change of 400 basis points; -20.0% for an instantaneous change of 400 basis points |
● | -7.5% for a gradual change of 300 basis points; -15.0% for an instantaneous change of 300 basis points |
● | -5.0% for a gradual change of 200 basis points; -10.0% for an instantaneous change of 200 basis points |
● | -2.5% for a gradual change of 100 basis points; -5.0% for an instantaneous change of 100 basis points |
● | Economic value of equity . Our economic value of equity model measures the extent that estimated economic values of our assets, liabilities and off-balance sheet items will change as a result of interest rate changes. Economic values are determined by discounting expected cash flows from assets, liabilities and off-balance sheet items, which establishes a base case economic value of equity. To help limit interest rate risk, we have a guideline stating that for an instantaneous 400 basis point change in interest rates up or down, the economic value of equity should not decrease by more than 40 percent from the base case; for a 300 basis point instantaneous change in interest rates up or down, the economic value of equity should not decrease by more than 30 percent; for a 200 basis point instantaneous change in interest rates up or down, the economic value of equity should not decrease by more than 20 percent; and for a 100 basis point instantaneous change in interest rates up or down, the economic value of equity should not decrease by more than 10 percent. |
|
At December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Amounts outstanding at year-end:
|
|
|
|
|||||||||
Securities sold under agreements to repurchase
|
$
|
70,465
|
$
|
114,667
|
$
|
131,591
|
||||||
Federal funds purchased
|
-
|
-
|
-
|
|||||||||
Federal Home Loan Bank short-term advances
|
75,000
|
25,000
|
115,000
|
|||||||||
|
||||||||||||
Weighted average interest rates at year-end:
|
||||||||||||
Securities sold under agreements to repurchase
|
0.20
|
%
|
0.21
|
%
|
0.44
|
%
|
||||||
Federal funds purchased
|
-
|
-
|
-
|
|||||||||
Federal Home Loan Bank short-term advances
|
0.12
|
%
|
0.21
|
%
|
0.12
|
%
|
||||||
|
||||||||||||
Maximum amount of borrowings at any month-end:
|
||||||||||||
Securities sold under agreements to repurchase
|
$
|
236,145
|
$
|
153,327
|
$
|
244,233
|
||||||
Federal funds purchased
|
-
|
-
|
-
|
|||||||||
Federal Home Loan Bank short-term advances
|
285,000
|
160,000
|
115,000
|
|||||||||
|
||||||||||||
Average balances for the year:
|
||||||||||||
Securities sold under agreements to repurchase
|
$
|
113,742
|
$
|
134,989
|
$
|
161,845
|
||||||
Federal funds purchased
|
644
|
1,325
|
-
|
|||||||||
Federal Home Loan Bank short-term advances
|
62,500
|
96,250
|
31,250
|
|||||||||
|
||||||||||||
Weighted average interest rates for the year:
|
||||||||||||
Securities sold under agreements to repurchase
|
0.21
|
%
|
0.34
|
%
|
0.69
|
%
|
||||||
Federal funds purchased
|
0.59
|
%
|
0.49
|
%
|
0.94
|
%
|
||||||
Federal Home Loan Bank short-term advances
|
0.18
|
%
|
0.18
|
%
|
0.12
|
%
|
|
At December 31, 2013
|
|||||||||||||||||||
|
Next 12
months
|
13-36
months
|
37-60 months
|
More than 60 months
|
Totals
|
|||||||||||||||
Contractual obligations:
|
|
|
|
|
|
|||||||||||||||
Certificates of deposit
|
$
|
370,295
|
$
|
124,674
|
$
|
24,044
|
$
|
36
|
$
|
519,049
|
||||||||||
Securities sold under agreements to repurchase
|
70,465
|
-
|
-
|
-
|
70,465
|
|||||||||||||||
Federal Home Loan Bank advances
|
75,000
|
15,000
|
12
|
467
|
90,479
|
|||||||||||||||
Subordinated debt
(1)
|
-
|
-
|
-
|
82,476
|
82,476
|
|||||||||||||||
Minimum operating lease commitments
|
4,202
|
8,282
|
7,871
|
29,017
|
49,372
|
|||||||||||||||
Holding company loan
(1)
|
2,500
|
13,682
|
-
|
-
|
16,182
|
|||||||||||||||
Totals
|
$
|
522,462
|
$
|
161,638
|
$
|
31,927
|
$
|
111,996
|
$
|
828,023
|
||||||||||
|
|
At December 31, 2013
|
|
||||||||||||||||||
|
Next 12 months
|
13-36 months
|
37-60 months
|
More than 60 months
|
Totals
|
|||||||||||||||
Unfunded commitments:
|
|
|
|
|
|
|||||||||||||||
Lines of credit
|
$
|
615,568
|
$
|
225,592
|
$
|
118,903
|
$
|
246,465
|
$
|
1,206,528
|
||||||||||
Letters of credit
|
60,547
|
6,202
|
2,000
|
482
|
69,231
|
|||||||||||||||
Totals
|
$
|
676,115
|
$
|
231,794
|
$
|
120,903
|
$
|
246,947
|
$
|
1,275,759
|
54
|
|
|
|
55
|
|
|
|
56
|
|
|
|
Consolidated Financial Statements:
|
|
57
|
|
58
|
|
59
|
|
60
|
|
61
|
|
62
|
|
December 31,
|
|||||||
ASSETS
|
2013
|
2012
|
||||||
|
|
|
||||||
Cash and noninterest-bearing due from banks
|
$
|
79,785,004
|
$
|
51,946,542
|
||||
Interest-bearing due from banks
|
124,509,486
|
111,535,083
|
||||||
Federal funds sold and other
|
4,644,247
|
1,807,044
|
||||||
Cash and cash equivalents
|
208,938,737
|
165,288,669
|
||||||
|
||||||||
Securities available-for-sale, at fair value
|
693,456,314
|
706,577,806
|
||||||
Securities held-to-maturity (fair value of $38,817,467 and $583,212 at December 31, 2013 and 2012, respectively)
|
39,795,649
|
574,863
|
||||||
Mortgage loans held-for-sale
|
12,850,339
|
41,194,639
|
||||||
|
||||||||
Loans
|
4,144,493,486
|
3,712,162,430
|
||||||
Less allowance for loan losses
|
(67,969,693
|
)
|
(69,417,437
|
)
|
||||
Loans, net
|
4,076,523,793
|
3,642,744,993
|
||||||
|
||||||||
Premises and equipment, net
|
72,649,574
|
75,804,895
|
||||||
Other investments
|
33,226,195
|
26,962,890
|
||||||
Accrued interest receivable
|
15,406,389
|
14,856,615
|
||||||
Goodwill
|
243,651,006
|
244,040,421
|
||||||
Core deposits and other intangible assets
|
3,840,750
|
5,103,273
|
||||||
Other real estate owned
|
15,226,136
|
18,580,097
|
||||||
Other assets
|
148,210,975
|
98,819,455
|
||||||
Total assets
|
$
|
5,563,775,857
|
$
|
5,040,548,616
|
||||
LIABILITIES AND STOCKHOLDERS' EQUITY
|
||||||||
|
||||||||
Deposits:
|
||||||||
Non-interest-bearing
|
$
|
1,167,414,487
|
$
|
985,689,460
|
||||
Interest-bearing
|
884,294,802
|
760,786,247
|
||||||
Savings and money market accounts
|
1,962,714,398
|
1,662,256,403
|
||||||
Time
|
519,049,037
|
606,455,873
|
||||||
Total deposits
|
4,533,472,724
|
4,015,187,983
|
||||||
Securities sold under agreements to repurchase
|
70,465,326
|
114,667,475
|
||||||
Federal Home Loan Bank advances
|
90,637,328
|
75,850,390
|
||||||
Subordinated debt and other borrowings
|
98,658,292
|
106,158,292
|
||||||
Accrued interest payable
|
792,703
|
1,360,598
|
||||||
Other liabilities
|
46,041,823
|
48,252,519
|
||||||
Total liabilities
|
4,840,068,196
|
4,361,477,257
|
||||||
Stockholders' equity:
|
||||||||
Preferred stock, no par value; 10,000,000 shares authorized; no shares issued and outstanding at December 31, 2013 and 2012
|
-
|
-
|
||||||
Common stock, par value $1.00; 90,000,000 shares authorized; 35,221,941 and 34,696,597 issued and outstanding at December 31, 2013 and 2012, respectively
|
35,221,941
|
34,696,597
|
||||||
Common stock warrants
|
-
|
-
|
||||||
Additional paid-in capital
|
550,212,135
|
543,760,439
|
||||||
Retained earnings
|
142,298,199
|
87,386,689
|
||||||
Accumulated other comprehensive income, net of taxes
|
(4,024,614
|
)
|
13,227,634
|
|||||
Total stockholders' equity
|
723,707,661
|
679,071,359
|
||||||
Total liabilities and stockholders' equity
|
$
|
5,563,775,857
|
$
|
5,040,548,616
|
|
For the years ended December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Interest income:
|
|
|
|
|||||||||
Loans, including fees
|
$
|
169,252,739
|
$
|
160,036,709
|
$
|
154,748,491
|
||||||
Securities:
|
||||||||||||
Taxable
|
14,504,464
|
16,931,417
|
23,971,787
|
|||||||||
Tax-exempt
|
6,378,345
|
6,576,701
|
7,394,134
|
|||||||||
Federal funds sold and other
|
1,146,867
|
1,876,731
|
2,232,423
|
|||||||||
Total interest income
|
191,282,415
|
185,421,558
|
188,346,835
|
|||||||||
|
||||||||||||
Interest expense:
|
||||||||||||
Deposits
|
11,721,387
|
16,842,852
|
30,588,033
|
|||||||||
Securities sold under agreements to repurchase
|
238,775
|
455,499
|
1,110,078
|
|||||||||
Federal Home Loan Bank advances and other borrowings
|
3,423,617
|
5,258,749
|
5,184,313
|
|||||||||
Total interest expense
|
15,383,779
|
22,557,100
|
36,882,424
|
|||||||||
Net interest income
|
175,898,636
|
162,864,458
|
151,464,411
|
|||||||||
Provision for loan losses
|
7,856,522
|
5,568,830
|
21,797,613
|
|||||||||
Net interest income after provision for loan losses
|
168,042,114
|
157,295,628
|
129,666,798
|
|||||||||
|
||||||||||||
Noninterest income:
|
||||||||||||
Service charges on deposit accounts
|
10,557,528
|
9,917,754
|
9,244,165
|
|||||||||
Investment services
|
8,038,425
|
6,984,970
|
6,246,414
|
|||||||||
Insurance sales commissions
|
4,537,150
|
4,461,404
|
3,999,153
|
|||||||||
Gains on mortgage loans sold, net
|
6,243,411
|
6,698,618
|
4,155,137
|
|||||||||
Investment gains (losses) on sales and impairments, net
|
(1,466,475
|
)
|
2,150,605
|
960,763
|
||||||||
Trust fees
|
3,747,241
|
3,195,950
|
2,999,731
|
|||||||||
Other noninterest income
|
15,446,298
|
9,987,335
|
10,334,847
|
|||||||||
Total noninterest income
|
47,103,578
|
43,396,636
|
37,940,210
|
|||||||||
|
||||||||||||
Noninterest expense:
|
||||||||||||
Salaries and employee benefits
|
82,646,967
|
78,056,564
|
74,424,851
|
|||||||||
Equipment and occupancy
|
21,273,454
|
20,420,333
|
19,986,976
|
|||||||||
Other real estate expense
|
3,113,046
|
11,544,067
|
17,431,926
|
|||||||||
Marketing and other business development
|
3,638,941
|
3,635,810
|
3,303,151
|
|||||||||
Postage and supplies
|
2,249,950
|
2,379,730
|
2,120,722
|
|||||||||
Amortization of intangibles
|
1,262,524
|
2,738,994
|
2,862,837
|
|||||||||
Other noninterest expense
|
15,076,332
|
19,389,368
|
18,976,865
|
|||||||||
Total noninterest expense
|
129,261,214
|
138,164,866
|
139,107,328
|
|||||||||
Income before income taxes
|
85,884,478
|
62,527,398
|
28,499,680
|
|||||||||
Income tax expense (benefit)
|
28,158,277
|
20,643,517
|
(15,237,687
|
)
|
||||||||
Net income
|
57,726,201
|
41,883,881
|
43,737,367
|
|||||||||
Preferred stock dividends
|
-
|
1,660,868
|
4,606,493
|
|||||||||
Accretion on preferred stock discount
|
-
|
2,153,172
|
2,058,146
|
|||||||||
Net income available to common stockholders
|
$
|
57,726,201
|
$
|
38,069,841
|
$
|
37,072,728
|
||||||
|
||||||||||||
Per share information:
|
||||||||||||
Basic net income per common share available to common stockholders
|
$
|
1.69
|
$
|
1.12
|
$
|
1.11
|
||||||
Diluted net income per common share available to common stockholders
|
$
|
1.67
|
$
|
1.10
|
$
|
1.09
|
||||||
Weighted average common shares outstanding:
|
||||||||||||
Basic
|
34,200,770
|
33,899,667
|
33,420,015
|
|||||||||
Diluted
|
34,509,261
|
34,487,808
|
34,060,228
|
|
Year Ended December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Net income:
|
$
|
57,726,201
|
$
|
41,883,881
|
$
|
43,737,367
|
||||||
Other comprehensive income, net of tax:
|
||||||||||||
(Decrease) increase in net gains on securities available-for-sale, net of deferred tax expense (benefit)
|
(22,156,995
|
)
|
(2,798,700
|
)
|
12,292,513
|
|||||||
Increase in fair value of forward cash flow hedge, net of tax expense
|
4,013,570
|
-
|
-
|
|||||||||
Net losses (gains) on sale of investment securities reclassified out of other comprehensive income into net income, net of tax
|
891,177
|
(1,306,923
|
)
|
(583,856
|
)
|
|||||||
Total comprehensive income
|
$
|
40,473,953
|
$
|
37,778,258
|
$
|
55,446,024
|
Common Stock
|
|||||||||||||||||||||||
|
Preferred Stock
Amount
|
Shares
|
Amount
|
Common Stock
Warrants
|
Additional
Paid-in
Capital
|
Retained
Earnings
|
Accumulated
Other Comprehensive
Income
|
Total Stockholders'
Equity
|
|||||||||||||||
Balances, December 31, 2010
|
$
|
90,788,682
|
33,870,380
|
$
|
33,870,380
|
$
|
3,348,402
|
$
|
530,829,019
|
$
|
12,996,202
|
$
|
5,624,600
|
$
|
677,457,285
|
||||||||
Exercise of employee common stock options, stock appreciation rights, common | |||||||||||||||||||||||
stock warrants and related tax benefits
|
-
|
163,829
|
163,829
|
-
|
1,014,653
|
-
|
-
|
1,178,482
|
|||||||||||||||
Repurchase of preferred stock
|
(23,750,000
|
)
|
-
|
-
|
-
|
-
|
-
|
-
|
(23,750,000
|
)
|
|||||||||||||
Issuance of restricted common shares, net of forfeitures
|
-
|
299,715
|
299,715
|
-
|
(299,715
|
)
|
-
|
-
|
-
|
||||||||||||||
Issuance of salary stock units
|
-
|
54,526
|
54,526
|
-
|
722,292
|
-
|
-
|
776,818
|
|||||||||||||||
Restricted shares withheld for taxes
|
-
|
(33,490
|
)
|
(33,490
|
)
|
-
|
(474,448
|
)
|
-
|
-
|
(507,938
|
)
|
|||||||||||
Compensation expense for restricted shares
|
-
|
-
|
-
|
-
|
3,239,677
|
-
|
-
|
3,239,677
|
|||||||||||||||
Compensation expense for stock options
|
-
|
-
|
-
|
-
|
1,196,059
|
-
|
-
|
1,196,059
|
|||||||||||||||
Accretion on preferred stock discount
|
2,058,146
|
-
|
-
|
-
|
-
|
(2,058,146
|
)
|
-
|
-
|
||||||||||||||
Preferred dividends paid
|
-
|
-
|
-
|
-
|
-
|
(4,891,839
|
)
|
-
|
(4,891,839
|
)
|
|||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
43,737,367
|
-
|
43,737,367
|
|||||||||||||||
Other comprehensive income
|
-
|
-
|
-
|
-
|
-
|
-
|
11,708,657
|
11,708,657
|
|||||||||||||||
Balances, December 31, 2011
|
$
|
69,096,828
|
34,354,960
|
$
|
34,354,960
|
$
|
3,348,402
|
$
|
536,227,537
|
$
|
49,783,584
|
$
|
17,333,257
|
$
|
710,144,568
|
||||||||
Exercise of employee common stock options, stock appreciation rights, common
|
|
|
|
|
|
|
|
|
|||||||||||||||
stock warrants and related tax benefits | - | 245,229 | 245,229 | - | 1,455,969 | - | - | 1,701,198 | |||||||||||||||
Repurchase of preferred stock
|
(71,250,000
|
)
|
-
|
-
|
-
|
(71,250,000
|
)
|
||||||||||||||||
Issuance of restricted common shares, net of forfeitures
|
-
|
102,119
|
102,119
|
-
|
(102,119
|
)
|
-
|
-
|
-
|
||||||||||||||
Issuance of salary stock units
|
-
|
57,508
|
57,508
|
-
|
942,565
|
-
|
-
|
1,000,073
|
|||||||||||||||
Restricted shares withheld for taxes
|
-
|
(63,219
|
)
|
(63,219
|
)
|
-
|
(1,021,409
|
)
|
-
|
-
|
(1,084,628
|
)
|
|||||||||||
Compensation expense for restricted shares
|
-
|
-
|
-
|
-
|
3,270,028
|
-
|
-
|
3,270,028
|
|||||||||||||||
Compensation expense for stock options
|
-
|
-
|
-
|
-
|
394,466
|
-
|
-
|
394,466
|
|||||||||||||||
Cancellation of outstanding warrants
|
-
|
-
|
-
|
(3,348,402
|
)
|
2,593,402
|
-
|
-
|
(755,000
|
)
|
|||||||||||||
Accretion on preferred stock discount
|
2,153,172
|
-
|
-
|
-
|
-
|
(2,153,172
|
)
|
-
|
-
|
||||||||||||||
Preferred dividends paid
|
-
|
-
|
-
|
-
|
-
|
(2,127,604
|
)
|
-
|
(2,127,604
|
)
|
|||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
41,883,881
|
-
|
41,883,881
|
|||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(4,105,623
|
)
|
(4,105,623
|
)
|
|||||||||||||
Balances, December 31, 2012
|
$
|
-
|
34,696,597
|
$
|
34,696,597
|
$
|
-
|
$
|
543,760,439
|
$
|
87,386,689
|
$
|
13,227,634
|
$
|
679,071,359
|
||||||||
Exercise of employee common stock options, stock appreciation rights, common | |||||||||||||||||||||||
stock warrants and related tax benefits
|
-
|
280,008
|
280,008
|
-
|
3,961,042
|
-
|
-
|
4,241,050
|
|||||||||||||||
Issuance of restricted common shares, net of forfeitures
|
-
|
303,111
|
303,111
|
-
|
(303,111
|
)
|
-
|
-
|
-
|
||||||||||||||
Restricted shares withheld for taxes
|
-
|
(57,775
|
)
|
(57,775
|
)
|
-
|
(1,288,367
|
)
|
-
|
-
|
(1,346,142
|
)
|
|||||||||||
Compensation expense for restricted shares
|
-
|
-
|
-
|
-
|
4,069,662
|
-
|
-
|
4,069,662
|
|||||||||||||||
Compensation expense for stock options
|
-
|
-
|
-
|
-
|
12,470
|
-
|
-
|
12,470
|
|||||||||||||||
Common dividends paid
|
-
|
-
|
-
|
-
|
-
|
(2,814,691
|
)
|
-
|
(2,814,691
|
)
|
|||||||||||||
Net income
|
-
|
-
|
-
|
-
|
-
|
57,726,201
|
-
|
57,726,201
|
|||||||||||||||
Other comprehensive loss
|
-
|
-
|
-
|
-
|
-
|
-
|
(17,252,248
|
)
|
(17,252,248
|
)
|
|||||||||||||
Balances, December 31, 2013
|
$ |
-
|
35,221,941
|
$ |
35,221,941
|
$ |
-
|
$ |
550,212,135
|
$ |
142,298,199
|
$ |
(4,024,614
|
)
|
$ |
723,707,661
|
|||||||
|
|
For the years ended December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Operating activities:
|
|
|
|
|||||||||
Net income
|
$
|
57,726,201
|
$
|
41,883,881
|
$
|
43,737,367
|
||||||
Adjustments to reconcile net income to net cash provided by operating activities:
|
||||||||||||
Net amortization/accretion of premium/discount on securities
|
4,438,303
|
7,291,775
|
7,702,123
|
|||||||||
Depreciation and amortization
|
9,245,876
|
10,207,638
|
10,950,434
|
|||||||||
Provision for loan losses
|
7,856,522
|
5,568,830
|
21,797,613
|
|||||||||
Investment gains (losses) on sales and impairments, net
|
1,466,475
|
(2,150,605
|
)
|
(960,763
|
)
|
|||||||
Gain on mortgage loans sold, net
|
(6,243,411
|
)
|
(6,698,618
|
)
|
(4,155,137
|
)
|
||||||
Stock-based compensation expense
|
4,082,132
|
4,414,452
|
5,018,294
|
|||||||||
Deferred tax expense (benefit)
|
1,841,044
|
1,547,626
|
(23,395,052
|
)
|
||||||||
Losses on disposition of other real estate and other investments
|
3,103,008
|
9,608,358
|
14,081,857
|
|||||||||
Excess tax benefit from stock compensation
|
(389,415
|
)
|
(36,071
|
)
|
(13,819
|
)
|
||||||
Mortgage loans held for sale:
|
||||||||||||
Loans originated
|
(385,173,288
|
)
|
(486,930,709
|
)
|
(394,020,876
|
)
|
||||||
Loans sold
|
419,761,000
|
487,798,601
|
378,996,474
|
|||||||||
Decrease in other assets
|
11,567,952
|
36,400,237
|
42,346,579
|
|||||||||
(Decrease) increase in other liabilities
|
(2,847,047
|
)
|
5,372,270
|
11,004,661
|
||||||||
Net cash provided by operating activities
|
126,435,352
|
114,277,665
|
113,089,755
|
|||||||||
|
||||||||||||
Investing activities:
|
||||||||||||
Activities in securities available-for-sale:
|
||||||||||||
Purchases
|
(233,887,505
|
)
|
(222,831,813
|
)
|
(268,141,975
|
)
|
||||||
Sales
|
23,439,144
|
188,586,154
|
166,415,738
|
|||||||||
Maturities, prepayments and calls
|
143,322,733
|
210,732,980
|
233,622,196
|
|||||||||
Activities in securities held-to-maturity:
|
||||||||||||
Purchases
|
(3,496,186
|
)
|
-
|
-
|
||||||||
Sales
|
-
|
-
|
-
|
|||||||||
Maturities, prepayments and calls
|
3,623,800
|
1,755,000
|
1,975,000
|
|||||||||
Increase in loans, net
|
(447,907,395
|
)
|
(440,508,548
|
)
|
(144,581,478
|
)
|
||||||
Purchases of premises and equipment and software
|
(5,293,919
|
)
|
(5,864,452
|
)
|
(2,031,265
|
)
|
||||||
Purchase of bank owned life insurance
|
(38,352,344
|
)
|
-
|
-
|
||||||||
(Increase) decrease in other investments
|
(6,141,232
|
)
|
17,743,227
|
(407,504
|
)
|
|||||||
Net cash used in investing activities
|
(564,692,904
|
)
|
(250,387,452
|
)
|
(13,149,288
|
)
|
||||||
|
||||||||||||
Financing activities:
|
||||||||||||
Net increase (decrease) in deposits
|
518,284,740
|
360,848,517
|
(178,660,721
|
)
|
||||||||
Net decrease in repurchase agreements
|
(44,202,149
|
)
|
(16,923,937
|
)
|
(14,702,967
|
)
|
||||||
Advances from Federal Home Loan Bank:
|
||||||||||||
Issuances
|
600,000,000
|
520,000,000
|
215,000,000
|
|||||||||
Payments
|
(585,144,603
|
)
|
(670,141,606
|
)
|
(110,236,705
|
)
|
||||||
Net (decrease) increase in subordinated debt and other borrowings
|
(7,500,000
|
)
|
8,682,292
|
-
|
||||||||
Repurchase of common stock warrants
|
-
|
(755,000
|
)
|
-
|
||||||||
Exercise of common stock options and stock appreciation rights
|
2,894,908
|
866,683
|
864,805
|
|||||||||
Excess tax benefit from stock compensation
|
389,415
|
36,071
|
13,819
|
|||||||||
Preferred stock dividends paid
|
-
|
(2,127,604
|
)
|
(4,891,839
|
)
|
|||||||
Repurchase of preferred shares outstanding
|
-
|
(71,250,000
|
)
|
(23,750,000
|
)
|
|||||||
Common stock dividends paid
|
(2,814,691
|
)
|
-
|
-
|
||||||||
Net cash provided by (used in)
financing activities
|
481,907,620
|
129,235,416
|
(116,363,608
|
)
|
||||||||
Net increase (decrease) in cash and cash equivalents
|
43,650,068
|
(6,874,371
|
)
|
(16,423,141
|
)
|
|||||||
Cash and cash equivalents, beginning of year
|
165,288,669
|
172,163,040
|
188,586,181
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
208,938,737
|
$
|
165,288,669
|
$
|
172,163,040
|
|
For the years ended December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Cash Payments:
|
|
|||||||||||
Interest
|
$
|
16,020,132
|
$
|
23,506,632
|
$
|
39,991,746
|
||||||
Income taxes paid
|
27,150,000
|
10,249,106
|
3,988,414
|
|||||||||
Noncash Transactions:
|
||||||||||||
Loans charged-off to the allowance for loan losses
|
17,252,736
|
19,657,061
|
34,849,910
|
|||||||||
Loans foreclosed upon with repossessions transferred to other real estate
|
4,630,251
|
9,052,792
|
34,580,351
|
|||||||||
Available-for-sale securities transferred to held-to-maturity portfolio
|
39,959,647
|
-
|
-
|
|
2013
|
2012
|
2011
|
|||||||||
Basic earnings per share calculation:
|
|
|
|
|||||||||
Numerator
- Net income available to common stockholders
|
$
|
57,726,201
|
$
|
38,069,841
|
$
|
37,072,728
|
||||||
|
||||||||||||
Denominator
– Weighted average common shares outstanding
|
34,200,770
|
33,899,667
|
33,420,015
|
|||||||||
Basic net income per common share available to common stockholders
|
$
|
1.69
|
$
|
1.12
|
$
|
1.11
|
||||||
|
||||||||||||
Diluted earnings per share calculation:
|
||||||||||||
Numerator
- Net income available to common stockholders
|
$
|
57,726,201
|
$
|
38,069,841
|
$
|
37,072,728
|
||||||
|
||||||||||||
Denominator
– Weighted average common shares outstanding
|
34,200,770
|
33,899,667
|
33,420,015
|
|||||||||
Dilutive shares contingently issuable
|
308,491
|
588,141
|
640,213
|
|||||||||
Weighted average diluted common shares outstanding
|
34,509,261
|
34,487,808
|
34,060,228
|
|||||||||
Diluted net income per common share available to common stockholders
|
$
|
1.67
|
$
|
1.10
|
$
|
1.09
|
December 31, 2013:
|
Amortized Cost
|
Gross
Unrealized
Gains
|
Gross
Unrealized
Losses
|
Fair
Value
|
||||||||||||
Securities available-for-sale:
|
|
|
|
|
||||||||||||
U.S Treasury Securities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
U.S. Government agency securities
|
117,282
|
13
|
13,422
|
103,873
|
||||||||||||
Mortgage-backed securities
|
411,967
|
9,771
|
8,802
|
412,936
|
||||||||||||
State and municipal securities
|
143,763
|
5,504
|
856
|
148,411
|
||||||||||||
Asset-backed securities
|
17,262
|
-
|
255
|
17,007
|
||||||||||||
Corporate notes
|
10,218
|
1,018
|
7
|
11,229
|
||||||||||||
|
$
|
700,492
|
$
|
16,306
|
$
|
23,342
|
$
|
693,456
|
||||||||
Securities held-to-maturity:
|
||||||||||||||||
State and municipal securities
|
39,796
|
72
|
1,051
|
38,817
|
||||||||||||
|
$
|
39,796
|
$
|
72
|
$
|
1,051
|
$
|
38,817
|
||||||||
December 31, 2012:
|
||||||||||||||||
Securities available-for-sale:
|
||||||||||||||||
U.S Treasury Securities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||
U.S. Government agency securities
|
110,817
|
49
|
414
|
110,452
|
||||||||||||
Mortgage-backed securities
|
360,504
|
15,770
|
623
|
375,651
|
||||||||||||
State and municipal securities
|
177,364
|
14,489
|
126
|
191,727
|
||||||||||||
Asset-backed securities
|
17,361
|
-
|
9
|
17,352
|
||||||||||||
Corporate notes
|
9,881
|
1,519
|
4
|
11,396
|
||||||||||||
|
$
|
675,927
|
$
|
31,827
|
$
|
1,176
|
$
|
706,578
|
||||||||
Securities held-to-maturity:
|
||||||||||||||||
State and municipal securities
|
575
|
8
|
-
|
583
|
||||||||||||
|
$
|
575,000
|
$
|
8,000
|
$
|
-
|
$
|
583
|
|
Available-for-sale
|
Held-to-maturity
|
||||||||||||||
|
Amortized
Cost
|
Fair
Value
|
Amortized Cost
|
Fair
Value
|
||||||||||||
Due in one year or less
|
$
|
3,480
|
$
|
3,516
|
$
|
318
|
$
|
316
|
||||||||
Due in one year to five years
|
27,583
|
28,243
|
12,097
|
12,113
|
||||||||||||
Due in five years to ten years
|
129,017
|
128,285
|
15,105
|
14,640
|
||||||||||||
Due after ten years
|
111,004
|
103,470
|
12,276
|
11,748
|
||||||||||||
Mortgage-backed securities
|
412,146
|
412,936
|
-
|
-
|
||||||||||||
Asset-backed securities
|
17,262
|
17,006
|
-
|
-
|
||||||||||||
|
$
|
700,492
|
$
|
693,456
|
$
|
39,796
|
$
|
38,817
|
|
Investments with an Unrealized Loss of
less than 12 months
|
Investments with an
Unrealized Loss of
12 months or longer
|
Total Investments
with an
Unrealized Loss
|
|||||||||||||||||||||
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized Losses
|
Fair Value
|
Unrealized
Losses
|
||||||||||||||||||
At December 31, 2013:
|
|
|
|
|
|
|
||||||||||||||||||
U.S. Treasury securities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
U.S. government agency securities
|
8,742
|
22
|
92,869
|
13,400
|
101,611
|
13,422
|
||||||||||||||||||
Mortgage-backed securities
|
157,262
|
3,913
|
42,903
|
4,889
|
200,165
|
8,802
|
||||||||||||||||||
State and municipal securities
|
46,282
|
1,351
|
3,798
|
555
|
50,080
|
1,906
|
||||||||||||||||||
Asset-backed securities
|
-
|
-
|
17,006
|
255
|
17,006
|
255
|
||||||||||||||||||
Corporate notes
|
946
|
6
|
159
|
2
|
1,105
|
8
|
||||||||||||||||||
Total temporarily-impaired securities
|
$
|
213,232
|
$
|
5,292
|
$
|
156,735
|
$
|
19,101
|
$
|
369,967
|
$
|
24,393
|
||||||||||||
|
||||||||||||||||||||||||
At December 31, 2012:
|
||||||||||||||||||||||||
U.S. Treasury securities
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
$
|
-
|
||||||||||||
U.S. government agency securities
|
78,899
|
414
|
-
|
-
|
78,899
|
414
|
||||||||||||||||||
Mortgage-backed securities
|
40,988
|
623
|
-
|
-
|
40,988
|
623
|
||||||||||||||||||
State and municipal securities
|
5,179
|
126
|
-
|
-
|
5,179
|
126
|
||||||||||||||||||
Asset-backed securities
|
17,353
|
9
|
-
|
-
|
17,353
|
9
|
||||||||||||||||||
Corporate notes
|
162
|
4
|
-
|
-
|
162
|
4
|
||||||||||||||||||
Total temporarily-impaired securities
|
$
|
142,581
|
$
|
1,176
|
$
|
-
|
$
|
-
|
$
|
142,581
|
$
|
1,176
|
●
|
Commercial real estate mortgage loans are categorized as such based on investor exposures where repayment is largely dependent upon the operation, refinance, or sale of the underlying real estate. Commercial real estate—mortgage also includes owner occupied commercial real estate which shares a similar risk profile to our commercial and industrial loan products.
|
●
|
Consumer real estate-mortgage consists primarily of loans secured by 1-4 residential properties including home equity lines of credit.
|
●
|
Construction and land development loans include loans where the repayment is dependent on the successful operation of the related real estate project. Construction and land development loans include 1-4 family construction projects and commercial construction endeavors such as warehouses, apartments, office and retail space and land acquisition and development.
|
●
|
Commercial and industrial loans include loans to business enterprises issued for commercial, industrial and/or other professional purposes.
|
●
|
Consumer and other loans include all loans issued to individuals not included in the consumer real estate mortgage classification. Examples of consumer and other loans are automobile loans, credit cards and loans to finance education, among others.
|
● | Special mention loans have potential weaknesses that deserve management's close attention. If left uncorrected, these potential weaknesses may result in deterioration of the repayment prospects for the asset or in Pinnacle Financial's credit position at some future date. |
● | Substandard loans are inadequately protected by the current sound worth and paying capacity of the obligor or of the collateral pledged, if any. Assets so classified must have a well-defined weakness or weaknesses that jeopardize collection of the debt. Substandard loans are characterized by the distinct possibility that Pinnacle Financial will sustain some loss if the deficiencies are not corrected. |
● | Substandard-nonaccrual loans are substandard loans that have been placed on nonaccrual status. |
● | Doubtful-nonaccrual loans have all the characteristics of substandard-nonaccrual loans with the added characteristic that the weaknesses make collection or liquidation in full, on the basis of currently existing facts, conditions and values, highly questionable and improbable. |
December 31, 2013
|
Commercial real estate - mortgage
|
Consumer real estate - mortgage
|
Construction and land development
|
Commercial and industrial
|
Consumer
and other
|
Total
|
||||||||||||||||||
Accruing loans:
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
1,332,387
|
$
|
670,412
|
$
|
275,876
|
$
|
1,557,923
|
$
|
143,032
|
$
|
3,979,630
|
||||||||||||
Special Mention
|
8,282
|
1,824
|
31,835
|
20,065
|
-
|
62,006
|
||||||||||||||||||
Substandard
(1)
|
20,296
|
14,107
|
7,297
|
23,174
|
154
|
65,028
|
||||||||||||||||||
Total
|
1,360,965
|
686,343
|
315,008
|
1,601,162
|
143,186
|
4,106,664
|
||||||||||||||||||
Impaired loans:
|
||||||||||||||||||||||||
Nonaccruing loans
|
||||||||||||||||||||||||
Substandard-nonaccrual
|
9,017
|
5,289
|
1,070
|
2,565
|
242
|
18,183
|
||||||||||||||||||
Doubtful-nonaccrual
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Total nonaccruing loans
|
9,017
|
5,289
|
1,070
|
2,565
|
242
|
18,183
|
||||||||||||||||||
Troubled debt restructurings
(2)
|
||||||||||||||||||||||||
Pass
|
2,564
|
1,666
|
113
|
320
|
276
|
4,939
|
||||||||||||||||||
Special Mention
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Substandard
|
10,889
|
2,318
|
-
|
1,500
|
-
|
14,707
|
||||||||||||||||||
Total troubled debt restructurings
|
13,453
|
3,984
|
113
|
1,820
|
276
|
19,646
|
||||||||||||||||||
Total impaired loans
|
22,470
|
9,273
|
1,183
|
4,385
|
518
|
37,829
|
||||||||||||||||||
Total loans
|
$
|
1,383,435
|
$
|
695,616
|
$
|
316,191
|
$
|
1,605,547
|
$
|
143,704
|
$
|
4,144,493
|
December 31, 2012
|
Commercial real estate - mortgage
|
Consumer real estate - mortgage
|
Construction and land development
|
Commercial and industrial
|
Consumer
and other
|
Total
|
||||||||||||||||||
Accruing loans:
|
|
|
|
|
|
|
||||||||||||||||||
Pass
|
$
|
1,093,628
|
$
|
649,571
|
$
|
259,878
|
$
|
1,390,207
|
$
|
93,712
|
$
|
3,486,996
|
||||||||||||
Special Mention
|
12,670
|
4,242
|
29,472
|
23,133
|
-
|
69,517
|
||||||||||||||||||
Substandard
(1)
|
42,343
|
13,896
|
19,622
|
29,513
|
-
|
105,374
|
||||||||||||||||||
Total
|
1,148,641
|
667,709
|
308,972
|
1,442,853
|
93,712
|
3,661,887
|
||||||||||||||||||
Impaired loans:
|
||||||||||||||||||||||||
Nonaccruing loans
|
||||||||||||||||||||||||
Substandard-nonaccrual
|
9,290
|
5,877
|
4,509
|
3,035
|
79
|
22,790
|
||||||||||||||||||
Doubtful-nonaccrual
|
1
|
29
|
-
|
3
|
-
|
33
|
||||||||||||||||||
Total nonaccruing loans
|
9,291
|
5,906
|
4,509
|
3,038
|
79
|
22,823
|
||||||||||||||||||
Troubled debt restructurings
(2)
|
||||||||||||||||||||||||
Pass
|
4,705
|
3,623
|
71
|
502
|
119
|
9,020
|
||||||||||||||||||
Special Mention
|
-
|
-
|
-
|
-
|
-
|
-
|
||||||||||||||||||
Substandard
|
15,559
|
2,688
|
-
|
185
|
-
|
18,432
|
||||||||||||||||||
Total troubled debt restructurings
|
20,264
|
6,311
|
71
|
687
|
119
|
27,452
|
||||||||||||||||||
Total impaired loans
|
29,555
|
12,217
|
4,580
|
3,725
|
198
|
50,275
|
||||||||||||||||||
Total loans
|
$
|
1,178,196
|
$
|
679,926
|
$
|
313,552
|
$
|
1,446,578
|
$
|
93,910
|
$
|
3,712,162
|
(1) | Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding the impact of substandard nonperforming loans and substandard troubled debt restructurings. Potential problem loans, which are not included in nonperforming assets, amounted to approximately $65.0 million at December 31, 2013, compared to $105.4 million at December 31, 2012. |
(2) | Troubled debt restructurings are presented as an impaired loan; however, they continue to accrue interest at contractual rates. |
|
At December 31, 2013
|
For the year ended
December 31, 2013
|
||||||||||||||||||
|
Recorded
investment
|
Unpaid principal balance
|
Related
allowance
(1)
|
Average recorded investment
|
Interest income recognized
|
|||||||||||||||
Collateral dependent nonaccrual loans:
|
|
|
|
|
|
|||||||||||||||
Commercial real estate – mortgage
|
$
|
7,035
|
$
|
7,481
|
$
|
-
|
$
|
6,522
|
$
|
-
|
||||||||||
Consumer real estate – mortgage
|
2,162
|
2,209
|
-
|
2,234
|
-
|
|||||||||||||||
Construction and land development
|
545
|
545
|
-
|
938
|
-
|
|||||||||||||||
Commercial and industrial
|
1,828
|
1,901
|
-
|
3,911
|
-
|
|||||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total
|
$
|
11,570
|
$
|
12,136
|
$
|
-
|
$
|
13,605
|
$
|
-
|
||||||||||
|
||||||||||||||||||||
Cash flow dependent nonaccrual loans:
|
||||||||||||||||||||
Commercial real estate – mortgage
|
$
|
1,982
|
$
|
2,166
|
$
|
142
|
$
|
2,448
|
$
|
-
|
||||||||||
Consumer real estate – mortgage
|
3,127
|
3,334
|
722
|
3,405
|
-
|
|||||||||||||||
Construction and land development
|
525
|
609
|
33
|
568
|
-
|
|||||||||||||||
Commercial and industrial
|
737
|
1,029
|
218
|
1,216
|
-
|
|||||||||||||||
Consumer and other
|
242
|
252
|
72
|
242
|
-
|
|||||||||||||||
Total
|
$
|
6,613
|
$
|
7,390
|
$
|
1,187
|
$
|
7,879
|
$
|
-
|
||||||||||
|
||||||||||||||||||||
Total Nonaccrual Loans
|
$
|
18,183
|
$
|
19,526
|
$
|
1,187
|
$
|
21,484
|
$
|
-
|
|
At December 31, 2012
|
For the year ended
December 31, 2012
|
||||||||||||||||||
|
Recorded
investment
|
Unpaid principal balance
|
Related
allowance
(1)
|
Average recorded investment
|
Interest income recognized
|
|||||||||||||||
Collateral dependent nonaccrual loans:
|
|
|
|
|
|
|||||||||||||||
Commercial real estate – mortgage
|
$
|
8,740
|
$
|
11,187
|
$
|
-
|
$
|
11,194
|
$
|
-
|
||||||||||
Consumer real estate – mortgage
|
3,641
|
6,394
|
-
|
6,394
|
-
|
|||||||||||||||
Construction and land development
|
1,546
|
2,062
|
-
|
2,063
|
-
|
|||||||||||||||
Commercial and industrial
|
1,547
|
1,761
|
-
|
1,896
|
-
|
|||||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total
|
$
|
15,474
|
$
|
21,404
|
$
|
-
|
$
|
21,547
|
$
|
-
|
||||||||||
|
||||||||||||||||||||
Cash flow dependent nonaccrual loans:
|
||||||||||||||||||||
Commercial real estate – mortgage
|
$
|
551
|
$
|
1,841
|
$
|
154
|
$
|
3,228
|
$
|
-
|
||||||||||
Consumer real estate – mortgage
|
2,265
|
4,473
|
573
|
5,828
|
-
|
|||||||||||||||
Construction and land development
|
2,963
|
4,701
|
201
|
5,102
|
-
|
|||||||||||||||
Commercial and industrial
|
1,491
|
2,459
|
814
|
2,528
|
-
|
|||||||||||||||
Consumer and other
|
79
|
179
|
22
|
180
|
-
|
|||||||||||||||
Total
|
$
|
7,349
|
$
|
13,653
|
$
|
1,764
|
$
|
16,866
|
$
|
-
|
||||||||||
|
||||||||||||||||||||
Total Nonaccrual Loans
|
$
|
22,823
|
$
|
35,057
|
$
|
1,764
|
$
|
38,413
|
$
|
-
|
|
At December 31, 2011
|
For the year ended
December 31, 2011
|
||||||||||||||||||
|
Recorded
investment
|
Unpaid principal balance
|
Related
allowance
(1)
|
Average recorded investment
|
Interest income recognized
|
|||||||||||||||
Collateral dependent nonaccrual loans:
|
|
|
|
|
|
|||||||||||||||
Commercial real estate – mortgage
|
$
|
9,345
|
$
|
12,099
|
$
|
-
|
$
|
12,450
|
$
|
5
|
||||||||||
Consumer real estate – mortgage
|
9,248
|
9,961
|
-
|
10,140
|
-
|
|||||||||||||||
Construction and land development
|
6,917
|
9,093
|
-
|
9,288
|
37
|
|||||||||||||||
Commercial and industrial
|
3,036
|
3,546
|
-
|
3,689
|
-
|
|||||||||||||||
Consumer and other
|
-
|
-
|
-
|
-
|
-
|
|||||||||||||||
Total
|
$
|
28,546
|
$
|
34,699
|
$
|
-
|
$
|
35,567
|
$
|
42
|
||||||||||
|
||||||||||||||||||||
Cash flow dependent nonaccrual loans:
|
||||||||||||||||||||
Commercial real estate – mortgage
|
$
|
617
|
$
|
661
|
$
|
57
|
$
|
792
|
$
|
-
|
||||||||||
Consumer real estate – mortgage
|
3,239
|
4,902
|
301
|
5,005
|
-
|
|||||||||||||||
Construction and land development
|
6,048
|
6,822
|
1,264
|
7,074
|
-
|
|||||||||||||||
Commercial and industrial
|
8,854
|
11,041
|
2,767
|
11,497
|
-
|
|||||||||||||||
Consumer and other
|
551
|
856
|
51
|
857
|
-
|
|||||||||||||||
Total
|
$
|
19,309
|
$
|
24,282
|
$
|
4,440
|
$
|
25,225
|
$
|
-
|
||||||||||
|
||||||||||||||||||||
Total Nonaccrual Loans
|
$
|
47,855
|
$
|
58,981
|
$
|
4,440
|
$
|
60,792
|
$
|
42
|
(1) | Collateral dependent loans are typically charged-off to their net realizable value and no specific allowance is carried related to those loans. |
|
December 31, 2013
|
December 31, 2012
|
||||||||||||||||||||||
|
Number
of contracts
|
Pre
Modification Outstanding Recorded
Investment
|
Post Modification Outstanding Recorded Investment, net of related allowance
|
Number of contracts
|
Pre
Modification Outstanding Recorded
Investment
|
Post
Modification Outstanding Recorded Investment, net of related allowance
|
||||||||||||||||||
Commercial real estate – mortgage
|
-
|
$
|
-
|
$
|
-
|
4
|
$
|
11,539
|
$
|
10,022
|
||||||||||||||
Consumer real estate – mortgage
|
1
|
500
|
427
|
4
|
834
|
718
|
||||||||||||||||||
Construction and land development
|
1
|
56
|
49
|
-
|
-
|
-
|
||||||||||||||||||
Commercial and industrial
|
2
|
1,750
|
1,535
|
-
|
-
|
-
|
||||||||||||||||||
Consumer and other
|
2
|
277
|
243
|
1
|
36
|
31
|
||||||||||||||||||
|
6
|
$
|
2,583
|
$
|
2,254
|
9
|
$
|
12,409
|
$
|
10,771
|
|
At December 31, 2013
|
|||||||||||||||
|
Outstanding Principal Balances
|
Unfunded Commitments
|
Total exposure
|
Total Exposure at December 31, 2012
|
||||||||||||
|
|
|
|
|
||||||||||||
Lessors of nonresidential buildings
|
$
|
471,978
|
$
|
43,262
|
$
|
515,240
|
$
|
440,237
|
||||||||
Lessors of residential buildings
|
242,029
|
28,744
|
270,773
|
215,899
|
December 31, 2013
|
30-89 days past due and performing
|
90 days or more past due and performing
|
Total past due and performing
|
Nonperforming(1)
|
Current
and performing
|
Total
Loans
|
||||||||||||||||||
Commercial real estate:
|
|
|
|
|
|
|
||||||||||||||||||
Owner-occupied
|
$
|
2,534
|
$
|
-
|
$
|
2,534
|
$
|
7,750
|
$
|
669,014
|
$
|
679,298
|
||||||||||||
All other
|
27
|
2,232
|
2,259
|
1,267
|
700,611
|
704,137
|
||||||||||||||||||
Consumer real estate – mortgage
|
2,215
|
-
|
2,215
|
5,289
|
688,112
|
695,616
|
||||||||||||||||||
Construction and land development
|
4,839
|
-
|
4,839
|
1,070
|
310,282
|
316,191
|
||||||||||||||||||
Commercial and industrial
|
1,847
|
825
|
2,672
|
2,565
|
1,600,310
|
1,605,547
|
||||||||||||||||||
Consumer and other
|
1,488
|
289
|
1,777
|
242
|
141,685
|
143,704
|
||||||||||||||||||
|
$
|
12,950
|
$
|
3,346
|
$
|
16,296
|
$
|
18,183
|
$
|
4,110,014
|
$
|
4,144,493
|
||||||||||||
|
||||||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||||||
Commercial real estate:
|
||||||||||||||||||||||||
Owner-occupied
|
$
|
462
|
$
|
-
|
$
|
462
|
$
|
8,091
|
$
|
585,848
|
$
|
594,401
|
||||||||||||
All other
|
41
|
-
|
41
|
1,200
|
582,554
|
583,795
|
||||||||||||||||||
Consumer real estate – mortgage
|
3,870
|
-
|
3,870
|
5,906
|
670,150
|
679,926
|
||||||||||||||||||
Construction and land development
|
3,511
|
-
|
3,511
|
4,509
|
305,532
|
313,552
|
||||||||||||||||||
Commercial and industrial
|
2,549
|
-
|
2,549
|
3,038
|
1,440,991
|
1,446,578
|
||||||||||||||||||
Consumer and other
|
444
|
-
|
444
|
79
|
93,387
|
93,910
|
||||||||||||||||||
|
$
|
10,877
|
$
|
-
|
$
|
10,877
|
$
|
22,823
|
$
|
3,678,462
|
$
|
3,712,162
|
(1) | Approximately $10.9 million and $9.4 million of nonaccrual loans as of December 31, 2013 and 2012, respectively, are currently performing pursuant to their contractual terms. |
|
|
Impaired Loans
|
|
|||||||||||||||||||||
|
Accruing Loans
|
Nonaccrual Loans
|
Troubled Debt Restructurings
(1)
|
Total Allowance
for Loan Losses
|
||||||||||||||||||||
|
December 31, 2013
|
December 31, 2012
|
December 31, 2013
|
December 31, 2012
|
December 31, 2013
|
December 31, 2012
|
December 31, 2013
|
December 31, 2012
|
||||||||||||||||
Commercial real estate –mortgage
|
$
|
19,298
|
$
|
16,642
|
$
|
142
|
$
|
154
|
$
|
1,932
|
$
|
2,838
|
$
|
21,372
|
$
|
19,634
|
||||||||
Consumer real estate – mortgage
|
7,090
|
7,336
|
722
|
573
|
543
|
853
|
8,355
|
8,762
|
||||||||||||||||
Construction and land development
|
7,186
|
8,953
|
33
|
201
|
16
|
10
|
7,235
|
9,164
|
||||||||||||||||
Commercial and industrial
|
24,660
|
23,829
|
218
|
814
|
256
|
95
|
25,134
|
24,738
|
||||||||||||||||
Consumer and other
|
1,521
|
1,055
|
72
|
22
|
39
|
17
|
1,632
|
1,094
|
||||||||||||||||
Unallocated
|
-
|
-
|
-
|
-
|
-
|
-
|
4,242
|
6,025
|
||||||||||||||||
|
$
|
59,755
|
$
|
57,815
|
$
|
1,187
|
$
|
1,764
|
$
|
2,786
|
$
|
3,813
|
$
|
67,970
|
$
|
69,417
|
(1) | Troubled debt restructurings of $19.6 million and $27.5 million as of December 31, 2013 and 2012, respectively, are classified as impaired loans pursuant to U.S. GAAP; however, these loans continue to accrue interest at contractual rates. |
|
Commercial real estate –
mortgage
|
Consumer real estate – mortgage
|
Construction and land development
|
Commercial and industrial
|
Consumer and other
|
Unallocated
|
Total
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
|
|
|
|
|
|
|
|
|||||||||||||||||||||
Balances, December 31, 2010
|
$
|
19,252
|
$
|
9,898
|
$
|
19,122
|
$
|
21,426
|
$
|
1,874
|
$
|
11,003
|
$
|
82,575
|
||||||||||||||
Charged-off loans
|
(3,044
|
)
|
(5,076
|
)
|
(10,157
|
)
|
(15,360
|
)
|
(1,213
|
)
|
-
|
(34,850
|
)
|
|||||||||||||||
Recovery of previously charged-off loans
|
116
|
495
|
1,530
|
2,167
|
144
|
-
|
4,452
|
|||||||||||||||||||||
Provision for loan losses
|
7,073
|
4,985
|
1,545
|
12,556
|
320
|
(4,681
|
)
|
21,798
|
||||||||||||||||||||
Balances, December 31, 2011
|
$
|
23,397
|
$
|
10,302
|
$
|
12,040
|
$
|
20,789
|
$
|
1,125
|
$
|
6,322
|
$
|
73,975
|
||||||||||||||
Charged-off loans
|
(4,667
|
)
|
(6,731
|
)
|
(2,530
|
)
|
(4,612
|
)
|
(1,117
|
)
|
-
|
(19,657
|
)
|
|||||||||||||||
Recovery of previously charged-off loans
|
285
|
818
|
1,155
|
7,175
|
97
|
-
|
9,530
|
|||||||||||||||||||||
Provision for loan losses
|
619
|
4,373
|
(1,501
|
)
|
1,386
|
989
|
(297
|
)
|
5,569
|
|||||||||||||||||||
Balances, December 31, 2012
|
$
|
19,634
|
$
|
8,762
|
$
|
9,164
|
$
|
24,738
|
$
|
1,094
|
$
|
6,025
|
$
|
69,417
|
||||||||||||||
Charged-off loans
|
(4,123
|
)
|
(2,250
|
)
|
(1,351
|
)
|
(8,159
|
)
|
(1,369
|
)
|
-
|
(17,252
|
)
|
|||||||||||||||
Recovery of previously charged-off loans
|
500
|
1,209
|
1,464
|
4,531
|
244
|
-
|
7,948
|
|||||||||||||||||||||
Provision for loan losses
|
5,361
|
634
|
(2,042
|
)
|
4,024
|
1,663
|
(1,783
|
)
|
7,857
|
|||||||||||||||||||
Balances, December 31, 2013
|
$
|
21,372
|
$
|
8,355
|
$
|
7,235
|
$
|
25,134
|
$
|
1,632
|
$
|
4,242
|
$
|
67,970
|
Range of Useful Lives
|
2013
|
2012
|
|||||||
Land
|
Not applicable
|
$
|
19,281
|
$
|
19,256
|
||||
Buildings
|
15 to 30 years
|
48,558
|
47,918
|
||||||
Leasehold improvements
|
15 to 20 years
|
20,283
|
19,031
|
||||||
Furniture and equipment
|
3 to 15 years
|
51,673
|
50,711
|
||||||
|
|
139,795
|
136,916
|
||||||
Accumulated depreciation and amortization
|
|
(67,145
|
)
|
(61,111
|
)
|
||||
|
|
$
|
72,650
|
$
|
75,805
|
2014
|
$
|
4,202
|
||
2015
|
4,093
|
|||
2016
|
4,189
|
|||
2017
|
4,042
|
|||
2018
|
3,829
|
|||
Thereafter
|
29,017
|
|||
|
$
|
49,372
|
2014
|
$
|
370,295
|
||
2015
|
91,743
|
|||
2016
|
32,931
|
|||
2017
|
22,186
|
|||
2018
|
1,858
|
|||
Thereafter
|
36
|
|||
|
$
|
519,049
|
|
Scheduled Maturities
|
Weighted average interest rates
|
||||||
|
|
|
||||||
2014
|
$
|
75,000
|
0.12
|
%
|
||||
2015
|
-
|
-
|
||||||
2016
|
15,000
|
2.39
|
%
|
|||||
2017
|
-
|
-
|
||||||
2018
|
12
|
2.00
|
%
|
|||||
Thereafter
|
467
|
2.45
|
%
|
|||||
|
$
|
90,479
|
||||||
Weighted average interest rate
|
0.51
|
%
|
Date
Established
|
Maturity
|
Common
Securities
|
Trust Preferred Securities
|
Floating Interest Rate
|
Interest Rate at December 31, 2013
|
||||||||||
Trust I
|
December 29, 2003
|
December 30, 2033
|
$
|
310,000
|
$
|
10,000,000
|
Libor + 2.80%
|
3.04
|
%
|
||||||
Trust II
|
September 15, 2005
|
September 30, 2035
|
619,000
|
20,000,000
|
Libor + 1.40%
|
1.65
|
%
|
||||||||
Trust III
|
September 7, 2006
|
September 30, 2036
|
619,000
|
20,000,000
|
Libor + 1.65%
|
1.90
|
%
|
||||||||
Trust IV
|
October 31, 2007
|
September 30, 2037
|
928,000
|
30,000,000
|
Libor + 2.85%
|
3.09
|
%
|
Combined Summary Balance Sheets
|
||||||||
|
December 31, 2013
|
December 31, 2012
|
||||||
Asset
– Investment in subordinated debentures issued by Pinnacle Financial
|
$
|
82,476
|
$
|
82,476
|
||||
|
||||||||
Liabilities
|
$
|
-
|
$
|
-
|
||||
|
||||||||
Stockholder's equity
– Trust preferred securities
|
80,000
|
80,000
|
||||||
Common securities (100% owned by Pinnacle Financial)
|
2,476
|
2,476
|
||||||
Total stockholder's equity
|
82,476
|
82,476
|
||||||
Total liabilities and stockholder's equity
|
$
|
82,476
|
$
|
82,476
|
Combined Summary Income Statements
|
||||||||||||
|
Year ended December 31,
|
|||||||||||
|
2013
|
2012
|
2011
|
|||||||||
Income –
Interest income from subordinated debentures issued by Pinnacle Financial
|
$
|
2,057
|
$
|
2,218
|
$
|
2,082
|
||||||
Net Income
|
$
|
2,057
|
$
|
2,218
|
$
|
2,082
|
Combined Summary Statements of Stockholder's Equity
|
||||||||||||||||
|
Trust
Preferred
Securities
|
Total
Common
Stock
|
Retained
Earnings
|
Stockholder's
Equity
|
||||||||||||
Balances, December 31, 2010
|
$
|
80,000
|
$
|
2,476
|
$
|
-
|
$
|
82,476
|
||||||||
Net income
|
-
|
-
|
2,082
|
2,082
|
||||||||||||
Issuance of trust preferred securities
|
-
|
-
|
-
|
-
|
||||||||||||
Dividends:
|
||||||||||||||||
Trust preferred securities
|
-
|
-
|
(2,017
|
)
|
(2,017
|
)
|
||||||||||
Common- paid to Pinnacle Financial
|
-
|
-
|
(65
|
)
|
(65
|
)
|
||||||||||
Balances, December 31, 2011
|
$
|
80,000
|
$
|
2,476
|
$
|
-
|
$
|
82,476
|
||||||||
Net income
|
-
|
-
|
2,218
|
2,218
|
||||||||||||
Issuance of trust preferred securities
|
-
|
-
|
-
|
-
|
||||||||||||
Dividends:
|
||||||||||||||||
Trust preferred securities
|
-
|
-
|
(2,151
|
)
|
(2,151
|
)
|
||||||||||
Common- paid to Pinnacle Financial
|
-
|
-
|
(67
|
)
|
(67
|
)
|
||||||||||
Balances, December 31, 2012
|
$
|
80,000
|
$
|
2,476
|
$
|
-
|
$
|
82,476
|
||||||||
Net income
|
-
|
-
|
2,057
|
2,057
|
||||||||||||
Issuance of trust preferred securities
|
-
|
-
|
-
|
-
|
||||||||||||
Dividends:
|
||||||||||||||||
Trust preferred securities
|
-
|
-
|
(1,995
|
)
|
(1,995
|
)
|
||||||||||
Common- paid to Pinnacle Financial
|
-
|
-
|
(62
|
)
|
(62
|
)
|
||||||||||
Balances, December 31, 2013
|
$
|
80,000
|
$
|
2,476
|
$
|
-
|
$
|
82,476
|
|
2013
|
2012
|
2011
|
|||||||||
Current tax expense :
|
|
|
|
|||||||||
Federal
|
$
|
26,317
|
$
|
19,096
|
$
|
8,157
|
||||||
State
|
-
|
-
|
-
|
|||||||||
Total current tax expense
|
|
26,317
|
19,096
|
8,157
|
||||||||
Deferred tax expense (benefit):
|
||||||||||||
Federal
|
240
|
485
|
(19,646
|
)
|
||||||||
State
|
1,601
|
1,063
|
(3,749
|
)
|
||||||||
Total deferred tax expense (benefit)
|
1,841
|
1,548
|
(23,395
|
)
|
||||||||
Total income tax expense (benefit)
|
$
|
28,158
|
$
|
20,644
|
$
|
(15,238
|
)
|
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Income tax expense at statutory rate
|
$
|
30,059
|
$
|
21,885
|
$
|
9,975
|
||||||
State excise tax expense (benefit), net of federal tax effect
|
1,601
|
1,063
|
(255
|
)
|
||||||||
Tax-exempt securities
|
(2,603
|
)
|
(2,517
|
)
|
(2,655
|
)
|
||||||
Federal tax credits
|
-
|
-
|
-
|
|||||||||
Bank owned life insurance
|
(740
|
)
|
(322
|
)
|
(406
|
)
|
||||||
Insurance premiums
|
(349
|
)
|
(243
|
)
|
(151
|
)
|
||||||
Other items
|
190
|
778
|
734
|
|||||||||
Deferred tax valuation allowance
|
-
|
-
|
(22,480
|
)
|
||||||||
Income tax expense (benefit)
|
$
|
28,158
|
$
|
20,644
|
$
|
(15,238
|
)
|
|
2013
|
2012
|
||||||
Deferred tax assets:
|
|
|
||||||
Loan loss allowance
|
$
|
26,134
|
$
|
26,777
|
||||
Loans
|
914
|
423
|
||||||
Insurance
|
732
|
691
|
||||||
Accrued liability for supplemental retirement agreements
|
538
|
510
|
||||||
Restricted stock and stock options
|
4,100
|
3,777
|
||||||
Net operating loss carryforward
|
1,914
|
3,593
|
||||||
Other real estate owned
|
2,231
|
3,222
|
||||||
Other deferred tax assets
|
1,177
|
1,430
|
||||||
Total deferred tax assets
|
37,740
|
40,423
|
||||||
|
||||||||
Deferred tax liabilities:
|
||||||||
Depreciation and amortization
|
6,145
|
7,110
|
||||||
Core deposit intangible asset
|
1,242
|
1,700
|
||||||
Securities
|
(1,704
|
)
|
12,024
|
|||||
Cash flow hedge
|
2,591
|
-
|
||||||
REIT dividends
|
1,393
|
371
|
||||||
FHLB related liabilities
|
1,316
|
1,724
|
||||||
Other deferred tax liabilities
|
521
|
554
|
||||||
Total deferred tax liabilities
|
11,504
|
23,483
|
||||||
Net deferred tax assets
|
$
|
26,236
|
$
|
16,940
|
|
Number
|
Weighted-
Average
Exercise
Price
|
Weighted-
Average
Contractual
Remaining Term
(in years)
|
Aggregate
Intrinsic
Value
(1)
(000's)
|
||||||
Outstanding at December 31, 2010
|
1,795,785
|
$
|
19.49
|
|
|
|||||
Granted
|
-
|
-
|
|
|
||||||
Stock options exercised
|
(163,829
|
)
|
6.20
|
|
|
|||||
Stock appreciation rights exercised
(2)
|
-
|
15.60
|
|
|
||||||
Forfeited
|
(50,918
|
)
|
23.44
|
|
|
|||||
Outstanding at December 31, 2011
|
1,581,038
|
$
|
20.81
|
|
|
|||||
Granted
|
-
|
-
|
|
|
||||||
Stock options exercised
|
(245,201
|
)
|
6.78
|
|
|
|||||
Stock appreciation rights exercised
(2)
|
(348
|
)
|
15.60
|
|
|
|||||
Forfeited
|
(17,108
|
)
|
25.90
|
|
|
|||||
Outstanding at December 31, 2012
|
1,318,381
|
$
|
23.36
|
|
|
|||||
Granted
|
-
|
-
|
|
|
||||||
Stock options exercised
|
(279,534
|
)
|
14.07
|
|
|
|||||
Stock appreciation rights exercised
(2)
|
(1,732
|
)
|
15.60
|
|
|
|||||
Forfeited
|
(34,615
|
)
|
29.31
|
|
|
|||||
Outstanding at December 31, 2013
|
1,002,500
|
$
|
25.77
|
2.48
|
$7,097
|
|||||
Options exercisable at December 31, 2013
|
1,002,500
|
$
|
25.77
|
2.48
|
$7,097
|
(1) | The aggregate intrinsic value is calculated as the difference between the exercise price of the underlying awards and the quoted price of Pinnacle Financial common stock of $32.53 per common share at December 31, 2013 for the 931,425 options and stock appreciation rights that were in-the-money at December 31, 2013. |
(2) | The 348 stock appreciation rights exercised during 2012 settled in 28 shares of Pinnacle Financial common stock. The 1,732 stock appreciation rights exercised during 2013 settled in 471 shares of Pinnacle Financial common stock. |
|
2013 | 2012 |
2011
|
|||||||
Non-qualified stock options
|
|
|
|
|||||||
Stock-based compensation expense
|
$
|
12,470
|
$
|
394,466
|
$
|
1,196,059
|
||||
Income tax benefit
|
4,892
|
154,749
|
469,214
|
|||||||
Stock-based compensation expense after income tax benefit
|
$
|
7,578
|
$
|
239,717
|
$
|
726,845
|
||||
Impact on per share results from stock-based compensation:
|
||||||||||
Basic
|
$
|
0.00
|
$
|
0.01
|
$
|
0.02
|
||||
Fully diluted
|
$
|
0.00
|
$
|
0.01
|
$
|
0.02
|
|
Number
|
Grant Date Weighted-Average Cost
|
||||||
Unvested at December 31, 2010
|
640,394
|
$
|
17.63
|
|||||
Shares awarded
|
361,966
|
13.38
|
||||||
Restrictions lapsed and shares released to associates/directors
|
(90,406
|
)
|
17.62
|
|||||
Shares forfeited
|
(62,251
|
)
|
20.66
|
|||||
Unvested at December 31, 2011
|
849,703
|
$
|
15.61
|
|||||
Shares awarded
|
156,645
|
16.48
|
||||||
Restrictions lapsed and shares released to associates/directors
|
(211,913
|
)
|
16.28
|
|||||
Shares forfeited
|
(54,526
|
)
|
18.23
|
|||||
Unvested at December 31, 2012
|
739,909
|
$
|
15.45
|
|||||
Shares awarded
|
164,602
|
21.78
|
||||||
Conversion of restricted share units to restricted share awards
|
193,189
|
21.51
|
||||||
Restrictions lapsed and shares released to associates/directors
|
(221,325
|
)
|
15.97
|
|||||
Shares forfeited
|
(54,680
|
)
|
15.30
|
|||||
Unvested at December 31, 2013
|
821,695
|
$
|
19.18
|
(1) | Groups include our employees (referred to as associates above), our executive managers (referred to as our Leadership Team above) and our outside directors. Included in the Leadership Team awards noted above are awards to our named executive officers. When the restricted shares are awarded, a participant receives voting rights with respect to the shares, but is not able to transfer the shares other than to Pinnacle Financial in satisfaction of withholding tax obligations until the later of the date that the forfeiture restrictions have lapsed and, for awards issued prior to the redemption of the preferred stock issued under the CPP, the later of the date that the forfeiture restrictions lapse and the date we redeemed the remaining outstanding shares of Series A preferred stock issued to the US Treasury pursuant to the CPP, which was completed on June 21, 2012. Once the forfeiture restrictions lapse, the participant is taxed on the value of the award and may elect to sell shares to pay the applicable income taxes associated with the award or have these shares remitted to Pinnacle Financial. |
(2) | These shares vest in equal annual installments on the first five anniversary dates of the grant. |
(3) | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve certain earnings and soundness targets over each year of the subsequent vesting period (or alternatively, the cumulative vesting period), excluding the impact of any merger related expenses. For those grants with a 10 year vesting period, the vesting period for an individual award is equal to ten years or the number of years remaining before an associate reaches the age of 65, whichever is less. |
(4) | These awards include a provision that the shares do not vest if Pinnacle Financial is not profitable for the fiscal year immediately preceding the vesting date. |
(5) | The forfeiture restrictions on these restricted share awards lapse in installments as follows: 66.6% on the second anniversary date should Pinnacle Financial achieve certain earnings and soundness targets, and 33.4% on the third anniversary date should Pinnacle Financial achieve certain earnings and soundness targets in each of these periods (or, alternatively, the cumulative three-year period). |
(6) | The forfeiture restrictions on these restricted share awards lapse in separate equal installments should Pinnacle Financial achieve soundness targets over each year of the subsequent vesting period. |
(7) | Restricted share awards are issued to the outside members of the board of directors in accordance with their board compensation plan. Restrictions lapsed on the one year anniversary date of the award based on each individual board member meeting his/her attendance goals for the various board and board committee meetings to which each member was scheduled to attend. |
|
2013
|
2012
|
2011
|
|||||||||
|
|
|
|
|||||||||
Restricted stock expense
(1)
|
$
|
4,069,661
|
$
|
3,270,028
|
$
|
3,239,677
|
||||||
Income tax benefit
|
1,596,528
|
1,282,832
|
1,270,925
|
|||||||||
Restricted stock expense, net of income tax benefit
|
$
|
2,473,133
|
$
|
1,987,196
|
$
|
1,968,752
|
||||||
Impact on per share results from restricted stock expense:
|
||||||||||||
Basic
|
$
|
0.07
|
$
|
0.06
|
$
|
0.06
|
||||||
Fully diluted
|
$
|
0.07
|
$
|
0.06
|
$
|
0.06
|
(1) | During the year ended December 31, 2011, $149,000 in previously expensed compensation associated with certain traunches of performance-based restricted share awards was reversed when Pinnacle Financial determined that the performance targets required to vest the awards, which were previously expected to be met, were unlikely to be achieved. |
|
At December 31, 2013
|
At December 31, 2012
|
||||||||||||||
|
Notional
Amount
|
Estimated Fair Value
|
Notional Amount
|
Estimated Fair Value
|
||||||||||||
Interest rate swap agreements:
|
|
|
|
|
||||||||||||
Pay fixed / receive variable swaps
|
$
|
294,486
|
$
|
13,296
|
$
|
236,377
|
$
|
16,132
|
||||||||
Pay variable / receive fixed swaps
|
294,486
|
(13,670
|
)
|
236,377
|
(16,366
|
)
|
||||||||||
Total
|
$
|
588,972
|
$
|
(374
|
)
|
$
|
472,754
|
$
|
(234
|
)
|
|
Forecasted
Notional
Amount
|
Variable
Interest
Rate
(1)
|
Fixed
Interest
Rate
(1)
|
Term
|
Asset/
(Liabilities)
|
Unrealized Gain in Accumulated Other Comprehensive Income
|
|||||||||||||
Interest Rate Swap
|
$
|
33,000
|
3 month LIBOR
|
1.428
|
%
|
April 2015-April 2018
|
$ |
463
|
$ |
281
|
|||||||||
Interest Rate Swap
|
33,000
|
3 month LIBOR
|
1.857
|
%
|
Oct. 2015-April 2019
|
837
|
509
|
||||||||||||
Interest Rate Swap
|
33,000
|
3 month LIBOR
|
1.996
|
%
|
Oct. 2015-Oct. 2019
|
1,007
|
612
|
||||||||||||
Interest Rate Swap
|
33,000
|
3 month LIBOR
|
2.265
|
%
|
April 2016-April 2020
|
1,172
|
712
|
||||||||||||
Interest Rate Swap
|
33,000
|
3 month LIBOR
|
2.646
|
%
|
April 2016-April 2022
|
1,818
|
1,105
|
||||||||||||
Interest Rate Swap
|
33,000
|
3 month LIBOR
|
2.523
|
%
|
Oct. 2016-Oct. 2020
|
1,307
|
795
|
||||||||||||
|
$ |
198,000
|
|
|
$ |
6,604
|
$ |
4,014
|
(1) | Pinnacle Financial will pay the fixed interest rate and the counterparties pay Pinnacle Financial the variable rate. |
December 31, 2013
|
Total carrying value in the consolidated balance sheet
|
Quoted market prices in an active market
(Level 1)
|
Models with significant observable market parameters
(Level 2)
|
Models with significant unobservable market parameters
(Level 3)
|
||||||||||||
Investment securities available-for-sale:
|
|
|
|
|
||||||||||||
U.S. government agency securities
|
$
|
103,873
|
$
|
-
|
$
|
103,873
|
$
|
-
|
||||||||
Mortgage-backed securities
|
412,936
|
-
|
412,936
|
-
|
||||||||||||
State and municipal securities
|
148,411
|
-
|
148,411
|
-
|
||||||||||||
Asset-backed securities
|
17,007
|
17,007
|
||||||||||||||
Corporate notes and other
|
11,229
|
-
|
11,229
|
-
|
||||||||||||
Total investment securities available-for-sale
|
693,456
|
-
|
693,456
|
$
|
-
|
|||||||||||
Alternative investments
|
6,701
|
-
|
-
|
6,701
|
||||||||||||
Other assets
|
19,900
|
-
|
19,900
|
-
|
||||||||||||
Total assets at fair value
|
$
|
720,057
|
$
|
-
|
$
|
713,356
|
$
|
6,701
|
||||||||
|
||||||||||||||||
Other liabilities
|
$
|
13,670
|
$
|
-
|
$
|
13,670
|
$
|
-
|
||||||||
Total liabilities at fair value
|
$
|
13,670
|
$
|
-
|
$
|
13,670
|
$
|
-
|
||||||||
|
||||||||||||||||
December 31, 2012
|
||||||||||||||||
Investment securities available-for-sale:
|
||||||||||||||||
U.S. government agency securities
|
$
|
110,452
|
$
|
-
|
$
|
110,452
|
$
|
-
|
||||||||
Mortgage-backed securities
|
375,651
|
-
|
375,651
|
-
|
||||||||||||
State and municipal securities
|
191,727
|
-
|
191,727
|
-
|
||||||||||||
Asset-backed securities
|
17,352
|
17,352
|
-
|
|||||||||||||
Corporate notes and other
|
11,396
|
-
|
11,396
|
-
|
||||||||||||
Total investment securities available-for-sale
|
706,578
|
-
|
706,578
|
-
|
||||||||||||
Alternative investments
|
4,214
|
-
|
-
|
4,214
|
||||||||||||
Other assets
|
16,599
|
-
|
16,132
|
467
|
||||||||||||
Total assets at fair value
|
$
|
727,391
|
$
|
-
|
$
|
722,710
|
$
|
4,681
|
||||||||
|
||||||||||||||||
Other liabilities
|
$
|
16,366
|
$
|
-
|
$
|
16,366
|
$
|
-
|
||||||||
Total liabilities at fair value
|
$
|
16,366
|
$
|
-
|
$
|
16,366
|
$
|
-
|
December 31, 2013
|
Total carrying value in the consolidated balance sheet
|
Quoted market prices in an active market
(Level 1)
|
Models with significant observable market parameters
(Level 2)
|
Models with significant unobservable market
parameters
(Level 3)
|
Total losses for the period ended
|
|||||||||||||||
Other real estate owned
|
$
|
15,226
|
$
|
-
|
$
|
-
|
$
|
15,226
|
$
|
(2,258
|
)
|
|||||||||
Nonaccrual loans, net
(1)
|
16,996
|
-
|
-
|
16,996
|
(2,921
|
)
|
||||||||||||||
Total
|
$
|
32,222
|
$
|
-
|
$
|
-
|
$
|
32,222
|
$
|
(5,179
|
)
|
|||||||||
|
||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Other real estate owned
|
$
|
18,580
|
$
|
-
|
$
|
-
|
$
|
18,580
|
$
|
(5,428
|
)
|
|||||||||
Nonaccrual loans, net
(1)
|
21,059
|
-
|
-
|
21,059
|
(4,745
|
)
|
||||||||||||||
Total
|
$
|
39,639
|
$
|
-
|
$
|
-
|
$
|
39,639
|
$
|
(10,173
|
)
|
(1) | Amount is net of a valuation allowance of $1.2 million and $1.8 million at December 31, 2013 and 2012, respectively, as required by ASC 310-10, "Receivables." |
|
For the year ended December 31,
|
|||||||||||||||
|
2013
|
2012
|
||||||||||||||
|
Other
assets
|
Other liabilities
|
Other
assets
|
Other liabilities
|
||||||||||||
Fair value, January 1
|
$
|
4,681
|
$
|
-
|
$
|
3,899
|
$
|
-
|
||||||||
Total net realized losses included in income
|
(344
|
)
|
-
|
(102
|
)
|
-
|
||||||||||
Change in unrealized gains/losses included in other comprehensive income for assets and liabilities still held at December 31
|
-
|
-
|
-
|
-
|
||||||||||||
Purchases
|
2,517
|
-
|
1,287
|
-
|
||||||||||||
Issuances
|
-
|
-
|
-
|
-
|
||||||||||||
Settlements
|
(153
|
)
|
-
|
(403
|
)
|
-
|
||||||||||
Transfers out of Level 3
|
-
|
-
|
-
|
-
|
||||||||||||
Fair value, December 31
|
$
|
6,701
|
$
|
-
|
$
|
4,681
|
$
|
-
|
||||||||
Total realized losses included in income related to financial assets and liabilities still on the consolidated balance sheet at December 31
|
$
|
(344
|
)
|
$
|
-
|
$
|
(102
|
)
|
$
|
-
|
(in thousands)
December 31, 2013
|
Carrying/
Notional
Amount
|
Estimated
Fair Value
(1)
|
Quoted market prices in an active market
(Level 1)
|
Models with significant observable market parameters
(Level 2)
|
Models with significant unobservable market
parameters
(Level 3)
|
|||||||||||||||
Financial assets:
|
|
|
|
|
|
|||||||||||||||
Securities held-to-maturity
|
$
|
39,796
|
$
|
38,817
|
$
|
-
|
$
|
38,817
|
$
|
-
|
||||||||||
Loans, net
|
4,076,524
|
4,021,675
|
-
|
-
|
4,021,675
|
|||||||||||||||
Mortgage loans held-for-sale
|
12,850
|
12,999
|
-
|
12,999
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits and securities sold under agreements to repurchase
|
4,603,938
|
4,378,805
|
-
|
-
|
4,378,805
|
|||||||||||||||
Federal Home Loan Bank advances
|
90,637
|
90,652
|
-
|
-
|
90,652
|
|||||||||||||||
Subordinated debt and other borrowings
|
98,658
|
73,083
|
-
|
-
|
73,083
|
|||||||||||||||
|
||||||||||||||||||||
Off-balance sheet instruments:
|
||||||||||||||||||||
Commitments to extend credit
(2)
|
1,206,528
|
1,040
|
-
|
-
|
1,040
|
|||||||||||||||
Standby letters of credit
(3)
|
69,231
|
331
|
-
|
-
|
331
|
|||||||||||||||
|
||||||||||||||||||||
December 31, 2012
|
||||||||||||||||||||
Financial assets:
|
||||||||||||||||||||
Securities held-to-maturity
|
$
|
575
|
$
|
583
|
$
|
-
|
$
|
583
|
$
|
-
|
||||||||||
Loans, net
|
3,642,745
|
3,358,435
|
-
|
-
|
3,358,435
|
|||||||||||||||
Mortgage loans held for sale
|
41,195
|
42,425
|
-
|
42,425
|
-
|
|||||||||||||||
|
||||||||||||||||||||
Financial liabilities:
|
||||||||||||||||||||
Deposits and securities sold under agreements to repurchase
|
4,129,855
|
4,084,314
|
-
|
-
|
4,084,314
|
|||||||||||||||
Federal Home Loan Bank advances
|
75,850
|
76,350
|
-
|
-
|
76,350
|
|||||||||||||||
Subordinated debt and other borrowings
|
106,158
|
83,862
|
-
|
-
|
83,862
|
|||||||||||||||
|
||||||||||||||||||||
Off-balance sheet instruments:
|
||||||||||||||||||||
Commitments to extend credit
(2)
|
1,030,723
|
1,594
|
-
|
-
|
1,594
|
|||||||||||||||
Standby letters of credit
(3)
|
74,679
|
304
|
-
|
-
|
304
|
(1) | Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction. |
(2) | At the end of each quarter, Pinnacle Financial evaluates the inherent risks of the outstanding off-balance sheet commitments. In making this evaluation, Pinnacle Financial evaluates the credit worthiness of the borrower, the collateral supporting the commitments and any other factors similar to those used to evaluate the inherent risks of our loan portfolio. Additionally, Pinnacle Financial evaluates the probability that the outstanding commitment will eventually become a funded loan. As a result, at December 31, 2013 and 2012, Pinnacle Financial included in other liabilities $1.0 million and $1.6 million, respectively, representing the inherent risks associated with these off-balance sheet commitments. |
(3) | At December 31, 2013 and 2012, the fair value of Pinnacle Financial's standby letters of credit was $331,000 and $304,000, respectively. This amount represents the unamortized fee associated with these standby letters of credit, which were priced at market when issued, and is included in the consolidated balance sheet of Pinnacle Financial and is believed to approximate fair value. This fair value will decrease over time as the existing standby letters of credit approach their expiration dates. |
• | A base rate generally defined as the sum of (i) the highest of (x) the lender's "base" or "prime" rate, (y) the average overnight federal funds effective rate plus one-half percent (0.50%) per annum or (z) one-month LIBOR plus one percent (1%) per annum and (ii) an applicable margin as noted below; or |
• | A LIBOR rate generally defined as the sum of (i) the average of the offered rates of interest quoted in the London Inter-Bank Eurodollar Market for U.S. Dollar deposits with prime banks (as published by Reuters or other commercially available source) for one, two or three months (all as selected by the Company), and (ii) an applicable margin. |
|
December 31, 2013
|
December 31, 2012
|
|
||||||||||||||
Type
|
Maximum
Loss Exposure
|
Liability
Recognized
|
Maximum
Loss Exposure
|
Liability
Recognized
|
Classification
|
||||||||||||
Low Income Housing Partnerships
|
$
|
7,945
|
$
|
-
|
$
|
6,096
|
$
|
-
|
Other Assets
|
||||||||
Trust Preferred Issuances
|
N/A
|
82,476
|
N/A
|
82,476
|
Subordinated Debt
|
||||||||||||
Commercial Troubled Debt Restructurings
|
15,273
|
-
|
20,951
|
-
|
Loans
|
||||||||||||
Managed Discretionary Trusts
|
N/A
|
N/A
|
N/A
|
N/A
|
N/A
|
|
Actual
|
Minimum Capital
Requirement
|
Minimum
To Be Well-Capitalized
|
|||||||||||||||||||||
|
Amount
|
Ratio
|
Amount
|
Ratio
|
Amount
|
Ratio
|
||||||||||||||||||
At December 31, 2013
|
|
|
|
|
|
|
||||||||||||||||||
|
|
|
|
|
|
|
||||||||||||||||||
Total capital to risk weighted assets:
|
|
|
|
|
|
|
||||||||||||||||||
Pinnacle Financial
|
$
|
621,683
|
13.0
|
%
|
$
|
382,190
|
8.0
|
%
|
$
|
478,688
|
10.0
|
%
|
||||||||||||
Pinnacle Bank
|
$
|
599,028
|
12.6
|
%
|
$
|
381,439
|
8.0
|
%
|
$
|
477,761
|
10.0
|
%
|
||||||||||||
Tier I capital to risk weighted assets:
|
||||||||||||||||||||||||
Pinnacle Financial
|
$
|
561,847
|
11.8
|
%
|
$
|
191,095
|
4.0
|
%
|
$
|
287,213
|
6.0
|
%
|
||||||||||||
Pinnacle Bank
|
$
|
539,309
|
11.3
|
%
|
$
|
190,720
|
4.0
|
%
|
$
|
286,657
|
6.0
|
%
|
||||||||||||
Tier I capital to average assets (*):
|
||||||||||||||||||||||||
Pinnacle Financial
|
$
|
561,847
|
10.9
|
%
|
$
|
205,695
|
4.0
|
%
|
N/
|
A
|
N/
|
A
|
||||||||||||
Pinnacle Bank
|
$
|
539,309
|
10.5
|
%
|
$
|
204,977
|
4.0
|
%
|
$
|
256,221
|
5.0
|
%
|
||||||||||||
|
||||||||||||||||||||||||
At December 31, 2012
|
||||||||||||||||||||||||
|
||||||||||||||||||||||||
Total capital to risk weighted assets:
|
||||||||||||||||||||||||
Pinnacle Financial
|
$
|
552,021
|
13.0
|
%
|
$
|
339,151
|
8.0
|
%
|
$
|
425,748
|
10.0
|
%
|
||||||||||||
Pinnacle Bank
|
$
|
545,615
|
12.9
|
%
|
$
|
338,548
|
8.0
|
%
|
$
|
425,005
|
10.0
|
%
|
||||||||||||
Tier I capital to risk weighted assets:
|
||||||||||||||||||||||||
Pinnacle Financial
|
$
|
498,802
|
11.8
|
%
|
$
|
169,575
|
4.0
|
%
|
$
|
255,449
|
6.0
|
%
|
||||||||||||
Pinnacle Bank
|
$
|
492,489
|
11.6
|
%
|
$
|
169,274
|
4.0
|
%
|
$
|
255,003
|
6.0
|
%
|
||||||||||||
Tier I capital to average assets (*):
|
||||||||||||||||||||||||
Pinnacle Financial
|
$
|
498,802
|
10.6
|
%
|
$
|
188,695
|
4.0
|
%
|
N/
|
A
|
N/
|
A
|
||||||||||||
Pinnacle Bank
|
$
|
492,489
|
10.5
|
%
|
$
|
187,981
|
4.0
|
%
|
$
|
234,976
|
5.0
|
%
|
|
2013
|
2012
|
||||||
Assets:
|
|
|
||||||
Cash and cash equivalents
|
$
|
21,095,990
|
$
|
13,657,278
|
||||
Investments in consolidated subsidiaries
|
788,522,316
|
758,512,213
|
||||||
Investment in unconsolidated subsidiaries:
|
||||||||
PNFP Statutory Trust I
|
310,000
|
310,000
|
||||||
PNFP Statutory Trust II
|
619,000
|
619,000
|
||||||
PNFP Statutory Trust III
|
619,000
|
619,000
|
||||||
PNFP Statutory Trust IV
|
928,000
|
928,000
|
||||||
Other investments
|
4,146,126
|
3,214,358
|
||||||
Current income tax receivable
|
553,401
|
472,869
|
||||||
Other assets
|
5,638,884
|
6,954,411
|
||||||
|
$
|
822,432,717
|
$
|
785,287,129
|
||||
Liabilities and stockholders' equity:
|
||||||||
Subordinated debt and other borrowings
|
98,658,292
|
106,158,292
|
||||||
Other liabilities
|
66,764
|
57,478
|
||||||
Stockholders' equity
|
723,707,661
|
679,071,359
|
||||||
|
$
|
822,432,717
|
$
|
785,287,129
|
|
2013
|
2012
|
2011
|
|||||||||
Revenues
|
$
|
266,472
|
$
|
157,443
|
$
|
1,228,999
|
||||||
Expenses:
|
||||||||||||
Interest expense
|
2,729,843
|
2,689,197
|
2,082,836
|
|||||||||
Stock-based compensation expense
|
4,082,132
|
3,664,494
|
4,435,739
|
|||||||||
Other expense
|
770,252
|
778,947
|
669,560
|
|||||||||
Loss before income taxes and equity in undistributed income (loss) of subsidiaries
|
(7,315,755
|
)
|
(6,975,195
|
)
|
(5,959,136
|
)
|
||||||
Income tax benefit
|
(2,869,605
|
)
|
(2,736,020
|
)
|
(7,641,435
|
)
|
||||||
(Loss) income before equity in undistributed income of subsidiaries and accretion on preferred stock discount
|
(4,446,150
|
)
|
(4,239,175
|
)
|
1,682,299
|
|||||||
Equity in undistributed income of subsidiaries
|
62,172,351
|
46,123,056
|
42,055,068
|
|||||||||
Net income
|
57,726,201
|
41,883,881
|
43,737,367
|
|||||||||
Preferred stock dividends
|
-
|
1,660,868
|
4,606,493
|
|||||||||
Accretion on preferred stock discount
|
-
|
2,153,172
|
2,058,146
|
|||||||||
Net income available to common stockholders
|
$
|
57,726,201
|
$
|
38,069,841
|
$
|
37,072,728
|
|
2013
|
2012
|
2011
|
|||||||||
Operating activities
:
|
|
|
|
|||||||||
Net income
|
$
|
57,726,201
|
$
|
41,883,881
|
$
|
43,737,367
|
||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
|
||||||||||||
Stock-based compensation expense
|
4,082,132
|
3,664,494
|
4,435,739
|
|||||||||
Loss (gain) on other investments
|
22,484
|
138,020
|
(313,562
|
)
|
||||||||
Increase (decrease) in income tax payable, net
|
80,532
|
169,016
|
(5,351,564
|
)
|
||||||||
Decrease (increase) in other assets
|
1,608,121
|
(912,116
|
)
|
124,239
|
||||||||
Increase (decrease) in other liabilities
|
9,286
|
(8,176
|
)
|
(1,040
|
)
|
|||||||
Excess tax benefit from stock compensation
|
(389,415
|
)
|
(36,071
|
)
|
(13,819
|
)
|
||||||
Deferred tax expense
|
(453,661
|
)
|
(75,427
|
)
|
(636,040
|
)
|
||||||
Equity in undistributed income of subsidiaries
|
(62,172,351
|
)
|
(46,123,056
|
)
|
(42,055,068
|
)
|
||||||
Net cash provided by (used in) operating activities
|
513,329
|
(1,299,435
|
)
|
(73,748
|
)
|
|||||||
Investing activities
:
|
||||||||||||
Investment in consolidated subsidiaries:
|
||||||||||||
Banking subsidiaries
|
14,910,000
|
27,210,000
|
-
|
|||||||||
Other subsidiaries
|
-
|
-
|
-
|
|||||||||
Investments in other entities
|
(954,249
|
)
|
47,804
|
(393,304
|
)
|
|||||||
Net cash provided by (used in) investing activities
|
13,955,751
|
27,257,804
|
(393,304
|
)
|
||||||||
Financing activities
:
|
||||||||||||
Net (decrease) increase in subordinated debt and other borrowings
|
(7,500,000
|
)
|
23,682,291
|
-
|
||||||||
Repurchase of common stock warrants
|
-
|
(755,000
|
)
|
-
|
||||||||
Exercise of common stock options
|
2,894,908
|
1,616,643
|
1,447,362
|
|||||||||
Preferred dividends paid
|
-
|
(2,127,604
|
)
|
(4,891,840
|
)
|
|||||||
Common dividends paid
|
(2,814,691
|
)
|
-
|
-
|
||||||||
Excess tax benefit from stock compensation arrangements
|
389,415
|
36,071
|
13,819
|
|||||||||
Repurchase of preferred shares outstanding
|
-
|
(71,250,000
|
)
|
(23,750,000
|
)
|
|||||||
Net cash used in financing activities
|
(7,030,368
|
)
|
(48,797,599
|
)
|
(27,180,659
|
)
|
||||||
Net increase (decrease) in cash
|
7,438,712
|
(22,839,230
|
)
|
(27,647,711
|
)
|
|||||||
Cash and cash equivalents, beginning of year
|
13,657,278
|
36,496,508
|
64,144,219
|
|||||||||
Cash and cash equivalents, end of year
|
$
|
21,095,990
|
$
|
13,657,278
|
$
|
36,496,508
|
(in thousands, except per share data)
|
First
Quarter
|
Second
Quarter
|
Third
Quarter
|
Fourth
Quarter
|
||||||||||||
|
|
|
|
|
||||||||||||
2013
|
|
|
|
|
||||||||||||
Interest income
|
$
|
47,156
|
$
|
47,544
|
$
|
48,177
|
$
|
48,405
|
||||||||
Net interest income
|
42,758
|
43,599
|
44,573
|
44,969
|
||||||||||||
Provision for loan losses
|
2,172
|
2,774
|
685
|
2,225
|
||||||||||||
Net income before taxes
|
20,048
|
21,289
|
21,952
|
22,597
|
||||||||||||
Net income
|
13,448
|
14,311
|
14,647
|
15,321
|
||||||||||||
Net income available to common stockholders
|
13,448
|
14,311
|
14,647
|
15,321
|
||||||||||||
Basic net income per share available to common stockholders
|
$
|
0.40
|
$
|
0.42
|
$
|
0.43
|
$
|
0.45
|
||||||||
Diluted net income per share available to common stockholders
|
$
|
0.39
|
$
|
0.42
|
$
|
0.42
|
$
|
0.44
|
||||||||
|
||||||||||||||||
2012
|
||||||||||||||||
Interest income
|
$
|
45,824
|
$
|
45,953
|
$
|
46,441
|
$
|
47,203
|
||||||||
Net interest income
|
39,504
|
40,185
|
40,932
|
42,243
|
||||||||||||
Provision for loan losses
|
1,034
|
634
|
1,413
|
2,488
|
||||||||||||
Net income before taxes
|
12,599
|
15,545
|
16,371
|
18,012
|
||||||||||||
Net income
|
8,365
|
10,440
|
11,349
|
11,730
|
||||||||||||
Net income available to common stockholders
|
7,206
|
7,785
|
11,349
|
11,730
|
||||||||||||
Basic net income per share available to common stockholders
|
$
|
0.21
|
$
|
0.23
|
$
|
0.33
|
$
|
0.35
|
||||||||
Diluted net income per share available to common stockholders
|
$
|
0.21
|
$
|
0.23
|
$
|
0.33
|
$
|
0.34
|
||||||||
|
||||||||||||||||
2011
|
||||||||||||||||
Interest income
|
$
|
47,224
|
$
|
47,789
|
$
|
46,888
|
$
|
46,446
|
||||||||
Net interest income
|
29,882
|
31,208
|
34,723
|
33,854
|
||||||||||||
Provision for loan losses
|
6,139
|
6,587
|
3,632
|
5,439
|
||||||||||||
Net income before taxes
|
3,505
|
6,660
|
9,128
|
9,207
|
||||||||||||
Net income
|
3,505
|
6,372
|
26,101
|
7,760
|
||||||||||||
Net income available to common stockholders
|
2,011
|
4,844
|
24,537
|
5,681
|
||||||||||||
Basic net income per share available to common stockholders
|
$
|
0.06
|
$
|
0.14
|
$
|
0.74
|
$
|
0.17
|
||||||||
Diluted net income per share available to common stockholders
|
$
|
0.06
|
$
|
0.14
|
$
|
0.72
|
$
|
0.17
|
Exhibit No.
|
|
Description
|
2.1
|
|
Merger Agreement, dated September 30, 2005, by and between Pinnacle Financial Partners, Inc. and Cavalry Bancorp, Inc. (schedules and exhibits to which have been omitted pursuant to Item 601(b)(2) of Regulation S-K)
(1)
|
2.2
|
|
Agreement and Plan of Merger by and between Pinnacle Financial Partners, Inc. and Mid-America Bancshares, Inc. (schedules and exhibits to which been omitted pursuant to Item 601(b)(2) of Regulation S-K)
(2)
|
3.1
|
|
Amended and Restated Charter, as amended (Restated for SEC filing purposes only)
(3)
|
3.2
|
|
Bylaws
(4)
|
4.1.1
|
|
Specimen Common Stock Certificate
(5)
|
4.1.2
|
|
See Exhibits 3.1 and 3.2 for provisions of the Charter and Bylaws defining rights of holders of the Common Stock
|
10.1
|
|
Letter Agreement dated March 14, 2000 and accepted March 16, 2000 by and between Pinnacle Financial Corporation (now known as Pinnacle Financial Partners, Inc.) and Atkinson Public Relations
(5)
|
10.2
|
|
Pinnacle Financial Partners, Inc. 2000 Stock Incentive Plan
(5)
*
|
10.3
|
|
Form of Pinnacle Financial Partners, Inc.'s Stock Option Award
(5)
*
|
10.4
|
|
Form of Restricted Stock Award Agreement
(6)
|
10.5
|
|
Form of Incentive Stock Option Agreement
(6)
|
10.6
|
|
Form of Restricted Stock Agreement for non-employee directors
(7) *
|
10.7
|
|
Form of Non-Qualified Stock Option Agreement
(8)
*
|
10.8
|
|
Cavalry Bancorp, Inc. 1999 Stock Option Plan
(9)
*
|
10.9
|
|
Amendment No. 1 to Cavalry Bancorp, Inc. 1999 Stock Option Plan
(9) *
|
10.10
|
|
Form of Non-Qualified Stock Option Agreement
(9)
*
|
10.11
|
|
Amendment No. 1 to Pinnacle Financial Partners, Inc. 2000 Stock Incentive Plan
(9) *
|
10.12
|
|
Form of Restricted Stock Award Agreement
(10) *
|
10.13
|
|
Form of Restricted Stock Award Agreement
(11)
*
|
10.14
|
|
Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and M. Terry Turner
(12) *
|
10.15
|
|
Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Robert A. McCabe, Jr.
(12) *
|
10.16
|
|
Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Hugh M. Queener
(12) *
|
10.17
|
|
Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Harold R. Carpenter
(12) *
|
10.18
|
|
Bank of the South 2001 Stock Option Plan
(12)
|
10.19
|
|
PrimeTrust Bank 2001 Statutory – Nonstatutory Stock Option Plan
(12)
*
|
10.20
|
|
PrimeTrust Bank 2005 Statutory – Nonstatutory Stock Option Plan
(12)
*
|
10.21
|
|
Form of Salary Stock Unit Award Agreement
(13)*
|
10.22
|
|
Form of 2011 TARP CPP Executive Officer Performance Vested Restricted Stock Agreement
(14)*
|
10.23
|
|
Form of 2011 TARP CPP Executive Officer Time Vested Restricted Stock Agreement
(14)*
|
10.24
|
|
Form of Named Executive Officers 2012 Restricted Stock Unit Award Agreement
(15)*
|
10.25
|
|
Pinnacle Financial Partners, Inc. 2012 Annual Cash Incentive Plan
(15)*
|
10.26
|
|
Pinnacle Financial Partners, Inc. Amended and Restated 2004 Equity Incentive Plan
(16)
|
10.27
|
|
Loan Agreement, dated as of June 15, 2012, by and between Pinnacle Financial Partners, Inc., as Borrower, and US Bank, National Association, as Lender
(17)
|
10.28
|
|
Change of Control Agreement dated as of September 4, 2012 by and among Pinnacle Financial Partners, Inc., Pinnacle Bank and Joseph Harvey White
(18)
|
10.29
|
|
Form of Named Executive Officers 2013 Restricted Stock Unit Award Agreement
(19)
|
10.30
|
|
Pinnacle Financial Partners, Inc. 2013 Annual Cash Incentive Plan
(19)
|
10.31
|
|
Amendment No. 1 dated November 20, 2012 to Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and M. Terry Turner
(20)*
|
10.32
|
|
Amendment No. 1 dated November 20, 2012 to Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Robert A. McCabe
(20)*
|
10.33
|
|
Amendment No. 1 dated November 20, 2012 to Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Hugh M. Queener
(20)*
|
10.34
|
|
Amendment No. 1 dated November 20, 2012 to Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Harold R. Carpenter
(20)*
|
10.35
|
|
Amendment No. 1 dated November 20, 2012 to Amended Change of Control Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and J. Harvey White
(20)*
|
10.36
|
|
2012 Named Executive Officer compensation summary
(20)
*
|
10.37
|
|
First Amendment to Loan Agreement between U.S. Bank National Association and Pinnacle Financial Partners, Inc., dated October 2, 2013
(21)
|
10.38
|
|
Form of Named Executive Officers 2014 Performance Unit Award Agreement
(22)
|
10.39
|
|
Pinnacle Financial Partners, Inc. 2014 Annual Cash Incentive Plan
(22)
|
10.40 | Amendment No. 2 dated February 4, 2014 to Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and M. Terry Turner * | |
10.41 | Amendment No. 2 dated February 4, 2014 to Amended Employment Agreement by and among Pinnacle Bank, Pinnacle Financial Partners, Inc. and Robert A. McCabe * | |
10.42 | ||
10.43 | ||
10.44 | ||
10.45 | ||
10.46 | ||
10.47 | Form of Directors' 2014 Restricted Stock Agreement * | |
101.INS
|
|
XBRL Instance Document
|
101.SCH
|
|
XBRL Schema Documents
|
101.CAL
|
|
XBRL Calculation Linkbase Document
|
101.LAB
|
|
XBRL Label Linkbase Document
|
101.PRE
|
|
XBRL Presentation Linkbase Document
|
101.DEF
|
|
XBRL Definition Linkbase Document
|
(*) | Management compensatory plan or arrangement |
(1) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on October 3, 2005. |
(2) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on August 15, 2007. |
(3) | Registrant hereby incorporates by reference to Registrant's Annual Report on Form 10-K for the fiscal year ended December 31, 2011, as filed with the SEC. |
(4) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on October 26, 2009. |
(5) | Registrant hereby incorporates by reference to the Registrant's Registration Statement on Form SB-2, as amended (File No. 333-38018). |
(6) | Registrant hereby incorporates by reference to Registrant's Form 10-Q for the quarter ended September 30, 2004. |
(7) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on January 23, 2006. |
(8) | Registrant hereby incorporates by reference to Registrant's Form 10-K for the fiscal year ended December 31, 2005 as filed with the SEC on February 24, 2006. |
(9) | Registrant hereby incorporates by reference to Registrant's Form 10-Q for the quarter ended on September 30, 2006. |
(10) | Registrant hereby incorporates by reference to Registrant's Form 10-K for the fiscal year ended December 31, 2006 as filed with the SEC on February 28, 2007. |
(11) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on January 25, 2008. |
(12) | Registrant hereby incorporates by reference to Registrant's Form 10-K for the fiscal year ended December 31, 2007 as filed with the SEC on March 7, 2008. |
(14) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on March 2, 2011 |
(15) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on August 19, 2011. |
(16) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on January 20, 2012. |
(17) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on April 20, 2012. |
(18) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on June 20, 2012. |
(19) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on September 6, 2012. |
(20) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on January 17, 2013. |
(21) | Registrant hereby incorporates by reference to Registrant's Form 10-K for the fiscal year ended December 31, 2012 as filed with the SEC on February 22, 2013. |
(22) | Registrant hereby incorporates by reference to Registrant's Form 10-Q for the quarter ended on September 30, 2013 as filed with the SEC on November 1, 2013. |
(23) | Registrant hereby incorporates by reference to Registrant's Current Report on Form 8-K filed on January 24, 2014. |
|
|
PINNACLE FINANCIAL PARTNERS, INC
|
|
|
|
|
By:
|
/s/ M. Terry Turner
|
|
|
M. Terry Turner
|
Date: February 25, 2014
|
|
President and Chief Executive Officer
|
SIGNATURES
|
TITLE
|
DATE
|
|
|
|
/s/ Robert A. McCabe, Jr.
|
Chairman of the Board
|
February 25, 2014
|
Robert A. McCabe, Jr.
|
|
|
|
|
|
/s/ M. Terry Turner
|
Director, President and Chief Executive Officer
|
February 25, 2014
|
M. Terry Turner
|
(Principal Executive Officer)
|
|
|
|
|
/s/ Harold R. Carpenter
|
Chief Financial Officer
|
February 25, 2014
|
Harold R. Carpenter
|
(Principal Financial and Accounting Officer)
|
|
|
|
|
/s/ Sue R. Atkinson
|
Director
|
February 25, 2014
|
Sue R. Atkinson
|
|
|
|
|
|
/s/ H. Gordon Bone
|
Director
|
February 25, 2014
|
H. Gordon Bone
|
|
|
|
|
|
/s/ Gregory L. Burns
|
Director
|
February 25, 2014
|
Gregory L. Burns
|
|
|
|
|
|
/s/ James C. Cope
|
Director
|
February 25, 2014
|
James C. Cope
|
|
|
|
|
|
/s/ Colleen Conway-Welch
|
Director
|
February 25, 2014
|
Colleen Conway-Welch
|
|
|
|
|
|
/s/ Glenda Baskin Glover
|
Director
|
February 25, 2014
|
Glenda Baskin Glover
|
|
|
|
|
|
/s/ William H. Huddleston
|
Director
|
February 25, 2014
|
William H. Huddleston
|
|
|
|
|
|
/s/ Ed C. Loughry, Jr.
|
Director
|
February 25, 2014
|
Ed C. Loughry, Jr.
|
|
|
|
|
|
/s/ Hal N. Pennington
|
Director
|
February 25, 2014
|
Hal N. Pennington
|
|
|
|
|
|
/s/ Gary Scott
|
Director
|
February 25, 2014
|
Gary Scott
|
|
|
|
|
|
/s/ Reese L. Smith III
|
Director
|
February 25, 2014
|
Reese L. Smith III
|
|
|
|
PINNACLE FINANCIAL PARTNERS, INC.
|
|
|
By:
|
/s/ Harold R. Carpenter
|
|
Name:
|
Harold R. Carpenter
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
PINNACLE BANK
|
|
|
By:
|
/s/ Harold R. Carpenter
|
|
Name:
|
Harold R. Carpenter
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
EXECUTIVE
|
|
|
|
/s/ M. Terry Turner
|
|
|
Michael Terry Turner
|
|
PINNACLE FINANCIAL PARTNERS, INC.
|
|
|
By:
|
/s/ Harold R. Carpenter
|
|
Name:
|
Harold R. Carpenter
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
PINNACLE BANK
|
|
|
By:
|
/s/ Harold R. Carpenter
|
|
Name:
|
Harold R. Carpenter
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
EXECUTIVE
|
|
|
|
/s/ Robert A. McCabe Jr.
|
|
|
Robert A. McCabe, Jr.
|
|
PINNACLE FINANCIAL PARTNERS, INC.
|
|
|
By:
|
/s/ Harold R. Carpenter
|
|
Name:
|
Harold R. Carpenter
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
PINNACLE BANK
|
|
|
By:
|
/s/ Harold R. Carpenter
|
|
Name:
|
Harold R. Carpenter
|
|
Title:
|
Chief Financial Officer
|
|
|
|
|
EXECUTIVE
|
|
|
|
/s/ Hugh M. Queener
|
|
|
Hugh M. Queener
|
|
PINNACLE FINANCIAL PARTNERS, INC.
|
|
|
By:
|
/s/ M. Terry Turner
|
|
Name:
|
M. Terry Turner
|
|
Title:
|
Chief Executive Officer
|
|
|
|
|
PINNACLE BANK
|
|
|
By:
|
/s/ M. Terry Turner
|
|
Name:
|
M. Terry Turner
|
|
Title:
|
Chief Executive Officer
|
|
|
|
|
EXECUTIVE
|
|
|
|
/s/ Harold R. Carpenter
|
|
|
Harold R. Carpenter
|
Executive Officer
|
Current Base Salary
|
|||
|
|
|||
M. Terry Turner – CEO
|
$
|
784,000
|
||
Robert A. McCabe, Jr. - Chairman of the Board
|
$
|
744,000
|
||
Hugh M. Queener – CAO
|
$
|
377,000
|
||
Harold R. Carpenter – CFO
|
$
|
377,000
|
||
Joseph Harvey White - Chief Credit Officer
|
$
|
284,000
|
- | Receive cash bonuses under the Company's 2014 Cash Incentive Plan; |
- | Participate in the Company's equity incentive programs, which currently involves the award of performance-based restricted stock units pursuant to the Company's 2004 Equity Incentive Plan; and |
- | Participate in the Company's broad-based benefit programs generally available to its employees, including health, disability and life insurance programs and the Company's 401k plan. |
(a)
|
the acquisition by any person or persons acting in concert of the then outstanding voting securities of either Pinnacle Bank or the Company, if, after the transaction, the acquiring person (or persons) owns, controls or holds with power to vote forty percent (40%) or more of any class of voting securities of either Pinnacle Bank or the Company, as the case may be;
|
(b)
|
within any twelve-month period the persons who were directors of either Pinnacle Bank or the Company immediately before the beginning of such twelve-month period (the "Incumbent Directors") shall cease to constitute at least a majority of such board of directors; provided that any director who was not a director as of the beginning of such twelve-month period shall be deemed to be an Incumbent Director if that director was elected to such board of directors by, or on the recommendation of or with the approval of, at least two-thirds of the directors who then qualified as Incumbent Directors; and provided further that no director whose initial assumption of office is in connection with an actual or threatened election contest relating to the election of directors shall be deemed to be an Incumbent Director;
|
(c)
|
a reorganization, merger or consolidation, with respect to which persons who were the shareholders of either Pinnacle Bank or the Company, as the case may be, immediately prior to such reorganization, merger or consolidation do not, immediately thereafter, own more than fifty percent (50%) of the combined voting power entitled to vote in the election of directors of the reorganized, merged or consolidated company's then outstanding voting securities; or
|
(d)
|
the sale, transfer or assignment of all or substantially all of the assets of the Company and its subsidiaries to any third party.
|
(a)
|
If the Common Share is listed on a national stock exchange, the closing sale price per share on the exchange for the last preceding date on which there was a sale of Common Shares on such exchange, as determined by the Committee.
|
(b)
|
If the Common Shares are not then listed on a national stock exchange but are traded on an over-the-counter market, the average of the closing bid and asked prices for the Common Shares in such over-the-counter market for the last preceding date on which there was a sale of Common Shares in such market, as determined by the Committee.
|
(c)
|
If neither (i) nor (ii) applies, such value as the Committee in its discretion may in good faith determine. Notwithstanding the foregoing, where the Common Shares are listed or traded, the Committee may make discretionary determinations in good faith where the Common Shares have not been traded for 10 trading days.
|
(i)
|
in the case of an employee, the termination of the employer-employee relationship for any reason, whether or not such termination was wrongful;
|
(ii)
|
in the case of an Outside Director, the expiration or termination of such person's status as a director, whether or not such termination was wrongful; and
|
(iii)
|
in the case of a consultant, as defined in the Agreement or, if not so defined, the termination of the independent con-tractor relationship for any reasons, whether or not such termination was wrongful.
|
(a)
|
Such requirements as the Securities and Ex-change Commission may establish for administrators acting un-der plans intended to qualify for exemption under Rule 16b-3 (or its successor) under the Exchange Act; and
|
(b)
|
Such requirements as the Internal Revenue Service may establish for outside directors acting under plans in-tended to qualify for exemption under Section 162(m) of the Code.
|
(a)
|
Upon any separation from service for any reason other than his or her death or permanent and total Disability, a Participant shall have the right, subject to the restrictions of Sections 6.4 and 8.4, to exercise his or her Options or SAR's at any time within three months after separation from service, but only to the extent that, at the date of such separation, the Participant's right to exercise such Options or SAR's had accrued pursuant to the terms of the Agreement and had not previously been exercised; provided, however, that, unless otherwise provided in the Agreement, if there occurs a separation from service for Cause or a separation from service by the Participant (other than on account of death or permanent and total Disability), any Options or SAR's not exercised in full prior to such separation shall be canceled. Awards other than Options and SAR's shall be forfeited upon any separation from service for any reason other than the Participant's death or permanent and total Disability.
|
(b)
|
If the Participant dies while a Participant or within three months after any separation from service other than for Cause or a separation by the Participant (other than on account of death or permanent and total Disability), then the Options or SAR's may be exercised in full, subject to the restrictions of Sections 6.4 and 8.4, at any time within six months after the Participant's death, by the beneficiary of the Participant, but only to the extent that, at the date of death, the Participant's right to exercise such Options or SAR's had accrued and had not been forfeited pursuant to the terms of the Agreement and had not previously been exercised. Awards other than Options and SAR's shall fully vest upon a Participant's separation from service by reason of his or her death and Performance Units may be paid out at a target level of performance.
|
(c)
|
Upon separation from service for reason of permanent and total Disability or death, a Participant or her or his estate shall have the right, subject to the restrictions of Sections 6.4 and 8.4 to exercise his or her Options or SAR's at any time within three months after separation from service, but only to the extent that, at the date of such separation, the Participant's right to exercise such Options or SAR's had accrued pursuant to the terms of the applicable Agreement and had not previously been exercised. Distribution of earned Performance Units may be made at the same time payments are made to Participants who did not incur a separation from service.
|
(a)
|
The continuation of the outstanding Awards by the Company, if the Company is a surviving corporation;
|
(b)
|
The assumption of the outstanding Awards by the surviving corporation or its parent or subsidiary;
|
(c)
|
The substitution by the surviving corporation or its parent or subsidiary of its own awards for the outstanding Awards;
|
(d)
|
Full exercisability or vesting and accelerated expiration of the out-standing Awards; or Settlement of the full value of the outstanding Awards in cash or cash equivalents followed by cancellation of such Awards.
|
(a)
|
In the case of an ISO, the acceleration of exercisability shall not occur without the Optionee's written consent.
|
(b)
|
If the Company and the other party to the transaction constituting a Change in Control agree that such transaction is to be treated as a "pooling of interests" for financial reporting purposes, and if such transaction in fact is so treated, then the acceleration of exercisability shall not occur to the extent that the Company's independent accountants and such other party's independent accountants separately determine in good faith that such acceleration would preclude the use of "pooling of interests" accounting.
|
(a)
|
In the case of ISOs granted hereunder, the aggregate Fair Market Value (determined as of the date of the Awards thereof) of Common Shares with respect to which ISOs become exercisable by any Participant for the first time during any calendar year (under the Plan and all other plans maintained by the Company, Affiliates or Subsidiaries) shall not exceed $100,000.
|
(b)
|
In the case of an individual described in Section 422(b)(6) of the Code (relating to certain 10% owners), the Exercise Price with respect to an ISO shall not be less than 110% of the Fair Market Value of a Common Share on the day the Option is granted, and the term of an ISO shall be no more than five years from the date of grant.
|
(c)
|
If Common Shares acquired upon exercise of an ISO are disposed of in a disqualifying disposition within the meaning of Section 422 of the Code by a Participant prior to the expiration of either two years from the date of grant of such Option or one year from the transfer of such shares to the Participant pursuant to the exercise of such Option, or in any other disqualifying disposition within the meaning of Section 422 of the Code, such Participant shall notify the Company in writing as soon as practicable thereafter of the date and terms of such dis-position and, if the Company thereupon has a tax-withholding obligation, shall pay to the Company an amount equal to any withholding tax the Company is required to pay as a result of the disqualifying disposition.
|
(a)
|
Awards subject to this Section must vest (or may be granted or vest) solely on the attainment of one or more objective performance goals un-related to term of employment. Awards will also be subject to the general vesting provisions provided in the Agreement and this Plan.
|
(b)
|
Prior to completion of 25% of the period of performance or such earlier date as required under Section 162(m), the Committee must establish performance goals (in accordance with subsection (d) below) in writing (including but not limited to Committee minutes) for Covered Employees who will receive Awards that are intended as qualified performance-based compensation. The outcome of the goal must be substantially uncertain at the time the Committee actually established the goal.
|
(c)
|
The performance goal must state, in terms of an objective formula or standard, the method for computing the Award payable to the Participant if the goal is attained. The terms of the objective formula or standard must prevent any discretion being exercised by the Committee to later increase the amount payable that otherwise would be due upon attainment of the goal, but may allow discretion to decrease the amount payable.
|
(d)
|
The material terms of the performance goal must be disclosed to and subsequently approved in a separate vote by the stockholders before the payout is executed, unless they conform to one or any combination of the following goals/targets, each determined in accordance with generally accepted accounting principles or similar objective standards (and/or each as may appear in the annual report to stock-holders, Form 10K or Form 10Q): revenue; earnings (including earnings before interest, taxes, depreciation and amortization, earnings before interest and taxes, and earnings before or after taxes); operating income; net income; profit margins; earnings per share; return on assets; return on equity; return on invested capital; economic value-added; stock price; gross dollar volume; total shareholder return; market share; book value; expense management; cash flow; and customer satisfaction.
|
(e)
|
A combination of the above performance goals may be used with a particular Agreement evidencing an Award.
|
(f)
|
The Committee in its sole discretion in setting the goals/targets in the time prescribed above may provide for the making of equitable adjustments (singularly or in combination) to the goals/targets in recognition of unusual or nonrecurring events for the following qualifying objective items: asset impairments under Statement of Financial Accounting Standards No. 121, as amended or superseded; acquisition-related charges; accruals for restructuring and/or reorganization program charges; merger integration costs; merger transaction costs; any profit or loss attributable to the business operations of any entity or entities acquired during the period of service to which the performance goal relates; tax settlements; any extraordinary, unusual-in-nature, infrequent-in-occurrence, or other nonrecurring items (not otherwise listed) as described in Accounting Principles Board Opinion No. 30; any extraordinary, un-usual-in-nature, infrequent-in-occurrence, or other nonrecurring items (not otherwise listed) in management's discussion and analysis of financial condition results of operations, selected financial data, financial statements and/or in the footnotes, each as appearing in the annual report to stock-holders; unrealized gains or losses on in-vestments; charges related to derivative transactions contemplated by Statement of Financial Accounting Standards No. 133, as amended or superseded; and compensation charges related to FAS 123 (Revised) or its successor provision.
|
(g)
|
The Committee must certify in writing prior to payout that the performance goals and any other material terms were in fact satisfied. In the manner required by Section 162(m) of the Code, the Committee shall, promptly after the date on which the necessary financial and other information for a particular period of performance becomes available, certify the extent to which performance goals have been achieved with respect to any Award intended to qualify as "performance-based compensation" under Section 162(m) of the Code. In addition, the Committee may, in its discretion, reduce or eliminate the amount of any Award payable to any Participant, based on such factors as the Committee may deem relevant.
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(h)
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Limitation on Performance-Based Awards.
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(i)
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If an Option is canceled, the canceled Option continues to be counted against the maximum number of shares for which Options may be granted to the Participant under the Plan, but not towards the total number of shares reserved and available under the Plan pursuant to Sections 4.1 and 4.4.
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(ii)
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During any fiscal year, the maximum number of Common Shares for which Options and SAR's may be granted to any Covered Employee shall not exceed 25,000 shares.
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(iii)
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During any fiscal year, the maximum payment hereunder for performance-based compensation purposes under Code Section 162(m) to any Covered Employee shall not exceed $500,000.
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(a)
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The independent auditors most recently selected by the Board (the "Auditors") determine that the after-tax value of such Award to the Participant, taking into account the effect of all federal, state and local income taxes, employment taxes and excise taxes applicable to the Participant (including the excise tax under section 4999 of the Code), will be greater after the application of this Article than it was before the application of this Article; or
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(b)
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The Committee, at the time of making an Award under the Plan or at any time thereafter, specifies in writing that such Award shall be subject to this Article (regardless of the after-tax value of such Award to the Participant).
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(a)
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An Outside Director may elect to receive his or her annual retainer payments and/or meeting fees from the Company in the form of cash, NSOs, Restricted Shares or Stock Units, or a combination thereof, as determined by the Board. Such NSOs, Restricted Shares and Stock Units shall be issued under the Plan. An election under this Article 13 shall be filed with the Company on the prescribed form.
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(b)
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The number of NSOs, Restricted Shares or Stock Units to be granted to Outside Di-rectors in lieu of annual retainers and meeting fees that would other-wise be paid in cash shall be calculated in a manner determined by the Board. The terms of such NSOs, Restricted Shares or Stock Units shall also be determined by the Board.
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(a)
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It is the intention of the Company that no Award shall be "deferred compensation" subject to Section 409A of the Code, unless and to the extent that the Committee specifically determines otherwise as provided below, and the Plan and the terms and conditions of all Awards shall be interpreted accordingly.
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(b)
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The terms and conditions governing any Awards that the Committee determines will be subject to Section 409A of the Code, including any rules for elective or mandatory deferral of the delivery of cash or Common Shares pursuant thereto and any rules regarding treatment of such Awards in the event of a Change in Control, shall be set forth in the applicable Agreement and shall comply in all respects with Section 409A of the Code.
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(c)
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Following a Change in Control, no action shall be taken under the Plan that will cause any Award that the Committee has previously determined is subject to Section 409A of the Code to fail to comply in any respect with Section 409A of the Code without the writ-ten consent of the Participant.
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Subsidiaries
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Jurisdiction or State of Incorporation |
Names
Under Which
Subsidiary Does Business (1)
|
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Pinnacle Bank (2)
|
Tennessee |
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PFP Title Company (3)
|
Tennessee |
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Pinnacle Community Development Corporation (3)
|
Tennessee |
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PNFP Statutory Trust I (4)
|
Connecticut |
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PNFP Statutory Trust II (4)
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Delaware |
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PNFP Statutory Trust III (4)
|
Connecticut |
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PNFP Statutory Trust IV (4)
|
Delaware |
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PNFP Holdings, Inc. (5)
|
Nevada |
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PNFP Properties, Inc. (6)
|
Maryland |
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Pinnacle Advisory Services, Inc. (7)
|
Tennessee |
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Pinnacle Credit Enhancement Holdings, Inc. (7)
|
Tennessee |
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Pinnacle Rutherford Real Estate, Inc. (3)
|
Tennessee |
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Pinnacle Nashville Real Estate, Inc. (3)
|
Tennessee |
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Pinnacle Rutherford Towers, Inc.(3)
|
Tennessee |
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Pinnacle Service Company, Inc.(3)
|
Tennessee |
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PNFP Insurance, Inc.(7)
|
Nevada |
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Miller & Loughry, Inc. (2)
|
Tennessee |
Miller Loughry Beach
|
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PNB Holding Co. 1, Inc. (3)
|
Tennessee |
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PNB Holding Co. 2, Inc. (3)
|
Tennessee |
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1. | Unless otherwise noted, each Subsidiary only does business under its legal name as set forth under the heading "Subsidiaries." |
2. | Pinnacle Bank is organized under the laws of the State of Tennessee. |
3. | PFP Title Company, Pinnacle Community Development Corporation, Pinnacle Rutherford Real Estate, Inc., Pinnacle Nashville Real Estate, Inc., Pinnacle Rutherford Towers, Inc., Pinnacle Service Company, Inc., Miller & Loughry, Inc., PNB Holding Co. 1, Inc. and PNB Holding Co. 2, Inc. are wholly-owned subsidiaries of Pinnacle Bank. |
4. | PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory Trust III and Statutory Trust IV are statutory business trusts which were established to issue capital trust preferred securities. |
5. | PNFP Holdings, Inc. is a wholly-owned subsidiary of PFP Title Company. |
6. | PNFP Properties, Inc. is a wholly-owned subsidiary of PNFP Holdings, Inc. |
7. | Pinnacle Advisory Services, Inc., Pinnacle Credit Enhancement Holdings, Inc. and PNFP Insurance, Inc. are wholly owned subsidiaries of Pinnacle Financial Partners, Inc. |
1.) | I have reviewed this annual report on Form 10-K of Pinnacle Financial Partners, Inc.; |
2.) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3.) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4.) | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)) and 15d-15(f) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5.) | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: February 25, 2014
|
Signature:
|
/s/ M. Terry Turner
|
|
|
M. Terry Turner
|
|
|
President and Chief Executive Officer
|
1.) | I have reviewed this annual report on Form 10-K of Pinnacle Financial Partners, Inc.; |
2.) | Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report; |
3.) | Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report; |
4.) | The registrant's other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f)) and 15d-15(f) for the registrant and have: |
(a) | Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared; |
(b) | Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles; |
(c) | Evaluated the effectiveness of the registrant's disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and |
(d) | Disclosed in this report any change in the registrant's internal control over financial reporting that occurred during the registrant's most recent fiscal quarter (the registrant's fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant's internal control over financial reporting; and |
5.) | The registrant's other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant's auditors and the audit committee of the registrant's board of directors (or persons performing the equivalent functions): |
(a) | All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant's ability to record, process, summarize and report financial information; and |
(b) | Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant's internal control over financial reporting. |
Date: February 25, 2014
|
Signature:
|
/s/ Harold R. Carpenter
|
|
|
Harold R. Carpenter
|
|
|
Chief Financial Officer
|
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 25, 2014
|
By:
|
/s/ M. Terry Turner
|
|
|
M. Terry Turner
|
|
|
President and Chief Executive Officer
|
|
|
Pinnacle Financial Partners, Inc.
|
1. | The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities and Exchange Act of 1934; and |
2. | The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company. |
Date: February 25, 2014
|
By:
|
/s/ Harold R. Carpenter
|
|
|
Harold R. Carpenter
|
|
|
Chief Financial Officer
|
|
|
Pinnacle Financial Partners, Inc.
|