x | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 |
(Exact name of registrant as specified in charter) | |||||||||||
Tennessee | 62-1812853 | ||||||||||
(State or other jurisdiction of incorporation) | (I.R.S. Employer Identification No.) | ||||||||||
150 Third Avenue South, Suite 900, | Nashville, | TN | 37201 | ||||||||
(Address of principal executive offices) | (Zip Code) |
Title of Each Class | Trading Symbol | Name of Exchange on which Registered | ||||||
Common Stock, par value $1.00 | PNFP | The Nasdaq Stock Market LLC | ||||||
Depositary Shares (each representing 1/40th interest in a share of 6.75% Fixed-Rate Non-Cumulative Perpetual Preferred Stock, Series B) | PNFPP | The Nasdaq Stock Market LLC |
Securities registered to Section 12(g) of the Act: | ||||||||
None |
Page No. | |||||
State | Owned | Leased | Total | ||||||||
Alabama | — | 2 | 2 | ||||||||
Tennessee | 31 | 20 | 51 | ||||||||
Georgia | — | 2 | 2 | ||||||||
North Carolina | 28 | 10 | 38 | ||||||||
South Carolina | 10 | 10 | 20 | ||||||||
Virginia | 7 | 3 | 10 | ||||||||
76 | 47 | 123 |
Period | Total Number of Shares Repurchased (1) | Average Price Paid Per Share | Total Number of Shares Purchased as Part of Publicly Announced Plans or Programs (2) | Maximum Number (or Approximate Dollar Value) of Shares That May Yet Be Purchased Under the Plans or Programs(2) | |||||||||||||||||||
October 1, 2022 to October 31, 2022 | 4,000 | $ | 84.05 | — | 125,000,000 | ||||||||||||||||||
November 1, 2022 to November 30, 2022 | 12 | 84.46 | — | 125,000,000 | |||||||||||||||||||
December 1, 2022 to December 31, 2022 | 24 | 73.56 | — | 125,000,000 | |||||||||||||||||||
Total | 4,036 | $ | 84.00 | — | 125,000,000 |
(dollars in thousands, except per share data) | 2022 | 2021 | 2020(1) | |||||||||||||||||
Shareholders' equity | 5,519,392 | 5,310,607 | 4,904,611 | |||||||||||||||||
Statement of Operations Data: | ||||||||||||||||||||
Interest income | $ | 1,373,935 | $ | 1,031,214 | $ | 1,021,042 | ||||||||||||||
Interest expense | 244,642 | 98,813 | 199,254 | |||||||||||||||||
Net interest income | 1,129,293 | 932,401 | 821,788 | |||||||||||||||||
Provision for credit losses | 67,925 | 16,126 | 203,815 | |||||||||||||||||
Net interest income after provision for credit losses | 1,061,368 | 916,275 | 617,973 | |||||||||||||||||
Noninterest income | 416,124 | 395,734 | 317,840 | |||||||||||||||||
Noninterest expense | 779,999 | 660,104 | 564,455 | |||||||||||||||||
Income before income taxes | 697,493 | 651,905 | 371,358 | |||||||||||||||||
Income tax expense | 136,751 | 124,582 | 59,037 | |||||||||||||||||
Net income | 560,742 | 527,323 | 312,321 | |||||||||||||||||
Preferred stock dividends | 15,192 | 15,192 | 7,596 | |||||||||||||||||
Net income available to common shareholders | 545,550 | 512,131 | 304,725 | |||||||||||||||||
Per Share Data: | ||||||||||||||||||||
Earnings per share available to common shareholders – basic | $ | 7.20 | $ | 6.79 | $ | 4.04 | ||||||||||||||
Weighted average common shares outstanding – basic | 75,735,404 | 75,468,339 | 75,376,489 | |||||||||||||||||
Earnings per share available to common shareholders – diluted | $ | 7.17 | $ | 6.75 | $ | 4.03 | ||||||||||||||
Weighted average common shares outstanding – diluted | 76,133,865 | 75,927,147 | 75,654,385 | |||||||||||||||||
Common dividends per share | $ | 0.88 | $ | 0.72 | $ | 0.64 | ||||||||||||||
Preferred dividends per share | $ | 67.52 | $ | 67.52 | $ | 33.76 | ||||||||||||||
Book value per common share | $ | 69.35 | $ | 66.89 | $ | 61.80 | ||||||||||||||
Common shares outstanding at end of period | 76,454,020 | 76,142,726 | 75,850,323 | |||||||||||||||||
Performance Ratios: | ||||||||||||||||||||
Return on average assets | 1.37 | % | 1.43 | % | 0.94 | % | ||||||||||||||
Return on average shareholders' equity | 10.16 | % | 10.02 | % | 6.57 | % | ||||||||||||||
Net interest margin | 3.29 | % | 3.02 | % | 2.97 | % | ||||||||||||||
Net interest spread | 2.94 | % | 2.87 | % | 2.72 | % | ||||||||||||||
Noninterest income to average assets | 1.05 | % | 1.11 | % | 0.98 | % | ||||||||||||||
Noninterest expense to average assets | 1.96 | % | 1.85 | % | 1.75 | % | ||||||||||||||
Efficiency ratio | 50.47 | % | 49.70 | % | 49.53 | % | ||||||||||||||
Average loan to average deposit ratio | 80.35 | % | 80.61 | % | 88.11 | % | ||||||||||||||
Avg. interest-earning assets to avg. interest-bearing liabilities | 151.73 | % | 149.63 | % | 136.60 | % | ||||||||||||||
Average equity to average total assets ratio | 13.49 | % | 14.31 | % | 14.33 | % | ||||||||||||||
Common stock dividend payout ratio | 12.26 | % | 10.67 | % | 15.84 | % | ||||||||||||||
Credit Quality Ratios: | ||||||||||||||||||||
Allowance for credit losses to nonaccrual loans | 788.81 | % | 833.83 | % | 386.06 | % | ||||||||||||||
Allowance for credit losses to total loans | 1.04 | % | 1.12 | % | 1.27 | % | ||||||||||||||
Nonperforming assets to total assets | 0.11 | % | 0.10 | % | 0.25 | % | ||||||||||||||
Nonperforming assets to total loans and other real estate | 0.16 | % | 0.17 | % | 0.38 | % | ||||||||||||||
Net loan charge-offs to average loans | 0.10 | % | 0.17 | % | 0.18 | % | ||||||||||||||
Capital Ratios(2): | ||||||||||||||||||||
Common equity Tier 1 capital | 9.96 | % | 10.93 | % | 10.03 | % | ||||||||||||||
Leverage | 9.75 | % | 9.70 | % | 8.63 | % | ||||||||||||||
Tier 1 capital | 10.55 | % | 11.67 | % | 10.87 | % | ||||||||||||||
Total capital | 12.44 | % | 13.84 | % | 14.26 | % |
Years ended December 31, | 2022- 2021 Percent Increase (Decrease) | Year ended December 31, | 2021 - 2020 Percent Increase (Decrease) | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Income Statement: | |||||||||||||||||||||||||||||
Interest income | $ | 1,373,935 | $ | 1,031,214 | 33.2 | % | $ | 1,021,042 | 1.0 | % | |||||||||||||||||||
Interest expense | 244,642 | 98,813 | >100% | 199,254 | (50.4) | % | |||||||||||||||||||||||
Net interest income | 1,129,293 | 932,401 | 21.1 | % | 821,788 | 13.5 | % | ||||||||||||||||||||||
Provision for credit losses | 67,925 | 16,126 | >100% | 203,815 | (92.1) | % | |||||||||||||||||||||||
Net interest income after provision for credit losses | 1,061,368 | 916,275 | 15.8 | % | 617,973 | 48.3 | % | ||||||||||||||||||||||
Noninterest income | 416,124 | 395,734 | 5.2 | % | 317,840 | 24.5 | % | ||||||||||||||||||||||
Noninterest expense | 779,999 | 660,104 | 18.2 | % | 564,455 | 17.0 | % | ||||||||||||||||||||||
Net income before income taxes | 697,493 | 651,905 | 7.0 | % | 371,358 | 75.5 | % | ||||||||||||||||||||||
Income tax expense | 136,751 | 124,582 | 9.8 | % | 59,037 | >100% | |||||||||||||||||||||||
Net income | 560,742 | 527,323 | 6.3 | % | 312,321 | 68.8 | % | ||||||||||||||||||||||
Preferred stock dividends | 15,192 | 15,192 | — | % | 7,596 | 100.0 | % | ||||||||||||||||||||||
Net income available to common shareholders | $ | 545,550 | $ | 512,131 | 6.5 | % | $ | 304,725 | 68.1 | % | |||||||||||||||||||
Per Share Data: | |||||||||||||||||||||||||||||
Basic net income per common share | $ | 7.20 | $ | 6.79 | 6.0 | % | $ | 4.04 | 68.1 | % | |||||||||||||||||||
Diluted net income per common share | $ | 7.17 | $ | 6.75 | 6.2 | % | $ | 4.03 | 67.5 | % | |||||||||||||||||||
Performance Ratios: | |||||||||||||||||||||||||||||
Return on average assets (1) | 1.37 | % | 1.43 | % | (4.2) | % | 0.94 | % | 52.1 | % | |||||||||||||||||||
Return on average shareholders' equity (2) | 10.16 | % | 10.02 | % | 1.4 | % | 6.57 | % | 52.5 | % | |||||||||||||||||||
Return on average common shareholders' equity (3) | 10.58 | % | 10.47 | % | 1.1 | % | 6.76 | % | 54.9 | % | |||||||||||||||||||
Balance Sheet: | |||||||||||||||||||||||||||||
Loans, net of allowance for credit losses | $ | 28,740,940 | $ | 23,151,029 | 24.2 | % | $ | 22,139,451 | 4.6 | % | |||||||||||||||||||
Deposits | $ | 34,961,238 | $ | 31,304,533 | 11.7 | % | $ | 27,705,575 | 13.0 | % |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||||||||
Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | Average Balances | Interest | Rates/ Yields | |||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans (1) (2) | $ | 26,182,102 | $ | 1,182,492 | 4.62 | % | $ | 23,060,949 | $ | 924,043 | 4.09 | % | $ | 21,824,841 | $ | 919,744 | 4.30 | % | |||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||
Taxable | 3,405,346 | 67,063 | 1.97 | % | 2,711,044 | 34,769 | 1.28 | % | 2,136,437 | 35,663 | 1.67 | % | |||||||||||||||||||||||
Tax-exempt (2) | 3,013,505 | 81,522 | 3.26 | % | 2,534,653 | 64,848 | 3.09 | % | 2,114,277 | 58,867 | 3.35 | % | |||||||||||||||||||||||
Interest-bearing due from banks | 1,815,251 | 23,206 | 1.28 | % | 3,056,555 | 3,853 | 0.13 | % | 2,410,611 | 4,038 | 0.17 | % | |||||||||||||||||||||||
Securities purchased under agreements to resell | 1,010,443 | 14,106 | 1.40 | % | 426,027 | 1,440 | 0.34 | % | — | — | — | % | |||||||||||||||||||||||
Federal funds sold | — | — | — | % | 9,964 | — | — | % | 22,342 | 30 | 0.14 | % | |||||||||||||||||||||||
Other | 181,824 | 5,546 | 3.05 | % | 160,066 | 2,261 | 1.41 | % | 153,345 | 2,700 | 1.76 | % | |||||||||||||||||||||||
Total interest-earning assets | 35,608,471 | 1,373,935 | 3.98 | % | 31,959,258 | 1,031,214 | 3.33 | % | 28,661,853 | 1,021,042 | 3.67 | % | |||||||||||||||||||||||
Nonearning assets: | |||||||||||||||||||||||||||||||||||
Intangible assets | 1,877,870 | 1,858,119 | 1,867,007 | ||||||||||||||||||||||||||||||||
Other nonearning assets | 2,324,564 | 1,875,255 | 1,805,677 | ||||||||||||||||||||||||||||||||
Total assets | $ | 39,810,905 | $ | 35,692,632 | $ | 32,334,537 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Interest checking | 6,737,026 | 63,549 | 0.94 | % | 5,578,632 | 9,887 | 0.18 | % | 4,602,683 | 19,542 | 0.42 | % | |||||||||||||||||||||||
Savings and money market | 12,695,974 | 112,218 | 0.88 | % | 11,437,779 | 22,823 | 0.20 | % | 9,623,790 | 45,364 | 0.47 | % | |||||||||||||||||||||||
Time deposits | 2,478,629 | 28,352 | 1.14 | % | 2,682,315 | 21,406 | 0.80 | % | 4,162,523 | 70,641 | 1.70 | % | |||||||||||||||||||||||
Total interest-bearing deposits | 21,911,629 | 204,119 | 0.93 | % | 19,698,726 | 54,116 | 0.27 | % | 18,388,996 | 135,547 | 0.74 | % | |||||||||||||||||||||||
Securities sold under agreements to repurchase | 203,082 | 794 | 0.39 | % | 155,888 | 239 | 0.15 | % | 150,118 | 350 | 0.23 | % | |||||||||||||||||||||||
Federal Home Loan Bank advances | 923,964 | 20,848 | 2.26 | % | 899,785 | 18,111 | 2.01 | % | 1,750,578 | 33,135 | 1.89 | % | |||||||||||||||||||||||
Subordinated debt and other borrowings | 429,169 | 18,881 | 4.40 | % | 604,081 | 26,347 | 4.36 | % | 692,169 | 30,222 | 4.37 | % | |||||||||||||||||||||||
Total interest-bearing liabilities | 23,467,844 | 244,642 | 1.04 | % | 21,358,480 | 98,813 | 0.46 | % | 20,981,861 | 199,254 | 0.95 | % | |||||||||||||||||||||||
Noninterest-bearing deposits | 10,674,249 | — | — | % | 8,910,349 | — | — | % | 6,380,155 | — | — | % | |||||||||||||||||||||||
Total deposits and interest- bearing liabilities | 34,142,093 | 244,642 | 0.72 | % | 30,268,829 | 98,813 | 0.33 | % | 27,362,016 | 199,254 | 0.73 | % | |||||||||||||||||||||||
Other liabilities | 297,409 | 314,650 | 337,855 | ||||||||||||||||||||||||||||||||
Total liabilities | 34,439,502 | 30,583,479 | 27,699,871 | ||||||||||||||||||||||||||||||||
Shareholders' equity | 5,371,403 | 5,109,153 | 4,634,666 | ||||||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 39,810,905 | $ | 35,692,632 | $ | 32,334,537 | |||||||||||||||||||||||||||||
Net interest income | $ | 1,129,293 | $ | 932,401 | $ | 821,788 | |||||||||||||||||||||||||||||
Net interest spread (3) | 2.94 | % | 2.87 | % | 2.72 | % | |||||||||||||||||||||||||||||
Net interest margin (4) | 3.29 | % | 3.02 | % | 2.97 | % |
2022 Compared to 2021 Increase (decrease) due to | 2021 Compared to 2020 Increase (decrease) due to | ||||||||||||||||||||||||||||||||||
Rate | Volume | Net | Rate | Volume | Net | ||||||||||||||||||||||||||||||
Interest-earning assets: | |||||||||||||||||||||||||||||||||||
Loans | $ | 126,581 | $ | 131,868 | $ | 258,449 | $ | (46,950) | $ | 51,249 | $ | 4,299 | |||||||||||||||||||||||
Securities: | |||||||||||||||||||||||||||||||||||
Taxable | 21,241 | 11,053 | 32,294 | (9,226) | 8,332 | (894) | |||||||||||||||||||||||||||||
Tax-exempt | 3,176 | 13,498 | 16,674 | (6,566) | 12,547 | 5,981 | |||||||||||||||||||||||||||||
Interest-bearing due from banks | 29,960 | (10,607) | 19,353 | (1,149) | 964 | (185) | |||||||||||||||||||||||||||||
Securities purchased under agreements to resell | 8,588 | 4,078 | 12,666 | 1,440 | — | 1,440 | |||||||||||||||||||||||||||||
Federal funds sold | — | — | — | (24) | (6) | (30) | |||||||||||||||||||||||||||||
Other | 2,812 | 473 | 3,285 | (548) | 109 | (439) | |||||||||||||||||||||||||||||
Total interest-earning assets | 192,358 | 150,363 | 342,721 | (63,023) | 73,195 | 10,172 | |||||||||||||||||||||||||||||
Interest-bearing liabilities: | |||||||||||||||||||||||||||||||||||
Interest-bearing deposits: | |||||||||||||||||||||||||||||||||||
Interest checking | 47,417 | 6,245 | 53,662 | (12,621) | 2,966 | (9,655) | |||||||||||||||||||||||||||||
Savings and money market | 82,572 | 6,823 | 89,395 | (28,848) | 6,307 | (22,541) | |||||||||||||||||||||||||||||
Time deposits | 8,858 | (1,912) | 6,946 | (31,569) | (17,666) | (49,235) | |||||||||||||||||||||||||||||
Total deposits | 138,847 | 11,156 | 150,003 | (73,038) | (8,393) | (81,431) | |||||||||||||||||||||||||||||
Securities sold under agreements to repurchase | 435 | 120 | 555 | (122) | 11 | (111) | |||||||||||||||||||||||||||||
Federal Home Loan Bank advances | 2,250 | 487 | 2,737 | 1,560 | (16,584) | (15,024) | |||||||||||||||||||||||||||||
Subordinated debt and other borrowings | 201 | (7,667) | (7,466) | (47) | (3,828) | (3,875) | |||||||||||||||||||||||||||||
Total interest-bearing liabilities | 141,733 | 4,096 | 145,829 | (71,647) | (28,794) | (100,441) | |||||||||||||||||||||||||||||
Net interest income | $ | 50,625 | $ | 146,267 | $ | 196,892 | $ | 8,624 | $ | 101,989 | $ | 110,613 |
Years ended December 31, | 2022 - 2021 Percent Increase (Decrease) | Year ended December 31, | 2021 - 2020 Percent Increase (Decrease) | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Noninterest income: | |||||||||||||||||||||||||||||
Service charges on deposit accounts | $ | 44,675 | $ | 41,311 | 8.1 | % | $ | 34,282 | 20.5 | % | |||||||||||||||||||
Investment services | 46,441 | 37,917 | 22.5 | % | 29,537 | 28.4 | % | ||||||||||||||||||||||
Insurance sales commissions | 12,186 | 10,516 | 15.9 | % | 10,055 | 4.6 | % | ||||||||||||||||||||||
Gains on mortgage loans sold, net | 7,268 | 32,424 | (77.6) | % | 60,042 | (46.0) | % | ||||||||||||||||||||||
Investment gains on sales, net | 156 | 759 | (79.5) | % | 986 | (23.0) | % | ||||||||||||||||||||||
Trust fees | 23,511 | 20,724 | 13.5 | % | 16,496 | 25.6 | % | ||||||||||||||||||||||
Income from equity method investment | 145,466 | 122,274 | 19.0 | % | 83,539 | 46.4 | % | ||||||||||||||||||||||
Other noninterest income: | |||||||||||||||||||||||||||||
Interchange and other consumer fees | 68,022 | 57,263 | 18.8 | % | 40,960 | 39.8 | % | ||||||||||||||||||||||
Bank-owned life insurance | 21,033 | 18,942 | 11.0 | % | 18,784 | 0.8 | % | ||||||||||||||||||||||
Loan swap fees | 5,812 | 5,414 | 7.4 | % | 4,568 | 18.5 | % | ||||||||||||||||||||||
SBA loan sales | 7,036 | 12,242 | (42.5) | % | 5,579 | >100% | |||||||||||||||||||||||
Income from other equity investments | 10,605 | 23,109 | (54.1) | % | 1,072 | >100% | |||||||||||||||||||||||
Other noninterest income | 23,913 | 12,839 | 86.3 | % | 11,940 | 7.5 | % | ||||||||||||||||||||||
Total other noninterest income | 136,421 | 129,809 | 5.1 | % | 82,903 | 56.6 | % | ||||||||||||||||||||||
Total noninterest income | $ | 416,124 | $ | 395,734 | 5.2 | % | $ | 317,840 | 24.5 | % |
Years ended December 31, | 2022 - 2021 Percent Increase (Decrease) | Year ended December 31, | 2021 - 2020 Percent Increase (Decrease) | ||||||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Noninterest expense: | |||||||||||||||||||||||||||||
Salaries and employee benefits: | |||||||||||||||||||||||||||||
Salaries | $ | 293,167 | $ | 241,775 | 21.3 | % | $ | 215,542 | 12.2 | % | |||||||||||||||||||
Commissions | 24,840 | 22,286 | 11.5 | % | 15,677 | 42.2 | % | ||||||||||||||||||||||
Cash and equity incentives | 116,984 | 109,290 | 7.0 | % | 52,878 | >100% | |||||||||||||||||||||||
Employee benefits and other | 75,184 | 62,655 | 20.0 | % | 50,386 | 24.4 | % | ||||||||||||||||||||||
Total salaries and employee benefits | 510,175 | 436,006 | 17.0 | % | 334,483 | 30.4 | % | ||||||||||||||||||||||
Equipment and occupancy | 109,672 | 95,250 | 15.1 | % | 88,475 | 7.7 | % | ||||||||||||||||||||||
Other real estate (benefit) expense, net | 280 | (712) | >100% | 8,555 | (<100%) | ||||||||||||||||||||||||
Marketing and business development | 21,073 | 12,888 | 63.5 | % | 10,693 | 20.5 | % | ||||||||||||||||||||||
Postage and supplies | 10,168 | 8,195 | 24.1 | % | 7,819 | 4.8 | % | ||||||||||||||||||||||
Amortization of intangibles | 7,810 | 8,518 | (8.3) | % | 9,793 | (13.0) | % |
Year acquired | Initial Valuation (in millions) | Amortizable Life (in years) | Remaining Value (in millions) | ||||||||||||||||||||
Core Deposit Intangible: | |||||||||||||||||||||||
Avenue | 2016 | $ | 8.8 | 9 | $ | 0.7 | |||||||||||||||||
BNC | 2017 | 48.1 | 10 | 16.4 | |||||||||||||||||||
Book of Business Intangible: | |||||||||||||||||||||||
Miller Loughry Beach Insurance | 2008 | 1.3 | 20 | 0.1 | |||||||||||||||||||
CapitalMark | 2015 | 0.3 | 16 | 0.1 | |||||||||||||||||||
BNC Insurance | 2017 | 0.4 | 20 | 0.2 | |||||||||||||||||||
BNC Trust | 2017 | 1.9 | 10 | 0.8 | |||||||||||||||||||
Advocate Capital | 2019 | 13.6 | 13 | 6.2 | |||||||||||||||||||
JB&B Capital | 2022 | 6.7 | 10 | 5.9 | |||||||||||||||||||
Sweeney Asset Management | 2022 | 0.8 | 10 | 0.8 |
2022 | 2021 | 2020 | |||||||||||||||||||||||||||
Amount | Percent | Amount | Percent | Amount | Percent | ||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||
Owner-occupied | $ | 3,587,257 | 12.3 | % | $ | 3,048,822 | 13.0 | % | $ | 2,802,227 | 12.5 | % | |||||||||||||||||
Non-owner occupied | 6,542,619 | 22.5 | % | 5,221,704 | 22.3 | % | 5,203,384 | 23.2 | % | ||||||||||||||||||||
Consumer real estate - mortgage | 4,435,046 | 15.3 | % | 3,680,684 | 15.7 | % | 3,099,172 | 13.8 | % | ||||||||||||||||||||
Construction and land development | 3,679,498 | 12.7 | % | 2,903,017 | 12.4 | % | 2,901,746 | 12.9 | % | ||||||||||||||||||||
Commercial and industrial | 10,241,362 | 35.3 | % | 8,074,546 | 34.5 | % | 8,038,457 | 35.9 | % | ||||||||||||||||||||
Consumer and other | 555,823 | 1.9 | % | 485,489 | 2.1 | % | 379,515 | 1.7 | % | ||||||||||||||||||||
Total loans | $ | 29,041,605 | 100.0 | % | $ | 23,414,262 | 100.0 | % | 1 | $ | 22,424,501 | 100.0 | % |
Due in one year or less | After one but within five years | After five but within fifteen years | After fifteen years | Total | |||||||||||||
Commercial real estate: | |||||||||||||||||
Owner-occupied | $ | 241,428 | $ | 1,453,554 | $ | 1,493,014 | $ | 399,261 | $ | 3,587,257 | |||||||
Non-owner occupied | 1,169,249 | 4,418,946 | 883,776 | 70,648 | 6,542,619 | ||||||||||||
Consumer real estate - mortgage | 76,473 | 478,160 | 354,866 | 3,525,547 | 4,435,046 | ||||||||||||
Construction and land development | 1,105,540 | 2,176,253 | 324,429 | 73,276 | 3,679,498 | ||||||||||||
Commercial and industrial | 2,701,801 | 5,428,061 | 1,778,089 | 333,411 | 10,241,362 | ||||||||||||
Consumer and other | 155,427 | 294,280 | 61,083 | 45,033 | 555,823 | ||||||||||||
Total loans | $ | 5,449,918 | $ | 14,249,254 | $ | 4,895,257 | $ | 4,447,176 | $ | 29,041,605 | |||||||
Loans with fixed interest rates: | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Owner-occupied | $ | 110,886 | $ | 1,043,202 | $ | 1,097,072 | $ | 287,742 | $ | 2,538,902 | |||||||
Non-owner occupied | 453,265 | 2,528,311 | 517,639 | 53,227 | 3,552,442 | ||||||||||||
Consumer real estate - mortgage | 42,004 | 342,250 | 139,770 | 2,052,870 | 2,576,894 | ||||||||||||
Construction and land development | 179,250 | 486,014 | 207,073 | 50,388 | 922,725 | ||||||||||||
Commercial and industrial | 836,746 | 1,913,219 | 1,260,409 | 252,343 | 4,262,717 | ||||||||||||
Consumer and other | 87,322 | 185,310 | 59,511 | 45,030 | 377,173 | ||||||||||||
Total loans | $ | 1,709,473 | $ | 6,498,306 | $ | 3,281,474 | $ | 2,741,600 | $ | 14,230,853 | |||||||
Due in one year or less | After one but within five years | After five but within fifteen years | After fifteen years | Total | |||||||||||||
Loans with variable interest rates: | |||||||||||||||||
Commercial real estate: | |||||||||||||||||
Owner-occupied | $ | 130,542 | $ | 410,352 | $ | 395,942 | $ | 111,519 | $ | 1,048,355 | |||||||
Non-owner occupied | 715,984 | 1,890,635 | 366,137 | 17,421 | 2,990,177 | ||||||||||||
Consumer real estate - mortgage | 34,469 | 135,910 | 215,096 | 1,472,677 | 1,858,152 | ||||||||||||
Construction and land development | 926,290 | 1,690,239 | 117,356 | 22,888 | 2,756,773 | ||||||||||||
Commercial and industrial | 1,865,055 | 3,514,842 | 517,680 | 81,068 | 5,978,645 | ||||||||||||
Consumer and other | 68,105 | 108,970 | 1,572 | 3 | 178,650 | ||||||||||||
Total loans | $ | 3,740,445 | $ | 7,750,948 | $ | 1,613,783 | $ | 1,705,576 | $ | 14,810,752 |
At December 31, 2022 | ||||||||||||||||||||
Outstanding Principal Balances | Unfunded Commitments | Total exposure | Total Exposure at December 31, 2021 | |||||||||||||||||
Lessors of nonresidential buildings | $ | 4,911,231 | $ | 2,146,814 | $ | 7,058,045 | $ | 5,368,638 | ||||||||||||
Lessors of residential buildings | 1,865,903 | 1,859,283 | 3,725,186 | 2,566,352 | ||||||||||||||||
New housing for-sale builders | 760,771 | 1,002,318 | 1,763,089 | 1,534,789 | ||||||||||||||||
Music publishers | 634,778 | 492,858 | 1,127,636 | 529,886 |
December 31, 2022 | December 31, 2021 | ||||||||||
Loans past due 30 to 89 days: | |||||||||||
Commercial real estate: | |||||||||||
Owner occupied | $ | 2,727 | $ | 727 | |||||||
Non-owner occupied | 407 | 1,434 | |||||||||
Consumer real estate – mortgage | 13,718 | 8,832 | |||||||||
Construction and land development | 323 | 61 | |||||||||
Commercial and industrial | 29,170 | 7,603 | |||||||||
Consumer and other | 5,744 | 2,283 | |||||||||
Total loans past due 30 to 89 days | $ | 52,089 | $ | 20,940 | |||||||
Loans past due 90 days or more: | |||||||||||
Commercial real estate: | |||||||||||
Owner occupied | $ | 1,139 | $ | 2,426 | |||||||
Non-owner occupied | 1,681 | 645 | |||||||||
Consumer real estate – mortgage | 9,094 | 4,450 | |||||||||
Construction and land development | 130 | 127 | |||||||||
Commercial and industrial | 9,428 | 7,311 | |||||||||
Consumer and other | 746 | 372 | |||||||||
Total loans past due 90 days or more | $ | 22,218 | $ | 15,331 | |||||||
Ratios: | |||||||||||
Loans past due 30 to 89 days as a percentage of total loans | 0.18 | % | 0.09 | % | |||||||
Loans past due 90 days or more as a percentage of total loans | 0.08 | % | 0.06 | % | |||||||
Total loans in past due status as a percentage of total loans | 0.26 | % | 0.15 | % |
Provision for credit losses | Net (charge-offs) recoveries | Average loans | Ratio of net (charge-offs) recoveries to average loans | |||||||||||
For the year ended December 31, 2022: | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | 6,330 | $ | 669 | $ | 3,258,092 | 0.02 | % | ||||||
Non-owner occupied | (18,027) | 2 | 5,812,052 | — | ||||||||||
Consumer real estate - mortgage | 3,571 | 861 | 4,031,082 | 0.02 | ||||||||||
Construction and land development | 6,364 | 321 | 3,369,233 | 0.01 | ||||||||||
Commercial and industrial | 55,346 | (23,333) | 9,162,689 | (0.25) | ||||||||||
Consumer and other | 10,395 | (5,067) | 466,435 | (1.08) | ||||||||||
Total loans | $ | 63,979 | $ | (26,547) | $ | 26,099,583 | (0.10) | % | ||||||
For the year ended December 31, 2021: | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | (3,869) | $ | 189 | $ | 2,891,798 | 0.01 | % | ||||||
Non-owner occupied | (20,811) | 183 | 5,358,828 | — | ||||||||||
Consumer real estate - mortgage | (2,856) | 1,656 | 3,320,083 | 0.05 | ||||||||||
Construction and land development | (12,984) | 5 | 2,845,957 | — | ||||||||||
Commercial and industrial | 52,645 | (38,728) | 8,154,391 | (0.47) | ||||||||||
Consumer and other | 4,781 | (2,028) | 403,624 | (0.50) | ||||||||||
Total loans | $ | 16,906 | $ | (38,723) | $ | 22,974,681 | (0.17) | % | ||||||
For the year ended December 31, 2020: | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner occupied | $ | 10,909 | $ | (1,281) | $ | 2,693,062 | (0.05) | % | ||||||
Non-owner occupied | 63,544 | 365 | 5,217,596 | 0.01 | ||||||||||
Consumer real estate - mortgage | 6,206 | (1,985) | 3,067,694 | (0.06) | ||||||||||
Construction and land development | 32,743 | 147 | 2,594,505 | 0.01 | ||||||||||
Commercial and industrial | 73,449 | (34,178) | 7,873,759 | (0.43) | ||||||||||
Consumer and other | 4,691 | (2,439) | 288,772 | (0.84) | ||||||||||
Total loans | $ | 191,542 | $ | (39,371) | $ | 21,735,388 | (0.18) | % |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Weighted average life | 11.62 years | 6.26 years | |||||||||
Effective duration (*) | 4.39 | % | 4.07 | % | |||||||
Tax equivalent yield | 3.19 | % | 2.08 | % |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Balance | Average Rate Paid | Percent of Total Deposits | Balance | Average Rate Paid | Percent of Total Deposits | ||||||||||||||||||
Core funding: | |||||||||||||||||||||||
Noninterest-bearing deposit accounts | $ | 9,812,744 | 0.00 | % | 27.2 | % | $ | 10,461,071 | 0.00 | % | 31.9 | % | |||||||||||
Interest-bearing demand accounts | 5,699,981 | 1.76 | % | 15.8 | % | 4,936,735 | 0.14 | % | 15.1 | % | |||||||||||||
Savings and money market accounts | 10,743,225 | 1.78 | % | 29.8 | % | 9,792,104 | 0.18 | % | 29.9 | % | |||||||||||||
Time deposit accounts less than $250,000 | 1,458,206 | 1.61 | % | 4.0 | % | 998,586 | 0.65 | % | 3.0 | % | |||||||||||||
Reciprocating demand deposit accounts (1) | 1,709,318 | 1.48 | % | 4.7 | % | 1,075,774 | 0.21 | % | 3.3 | % | |||||||||||||
Reciprocating savings accounts (1) | 1,566,982 | 2.45 | % | 4.4 | % | 1,885,806 | 0.26 | % | 5.8 | % | |||||||||||||
Reciprocating CD accounts (1) | 310,621 | 2.37 | % | 0.9 | % | 166,836 | 0.57 | % | 0.5 | % | |||||||||||||
Total core funding | 31,301,077 | 1.19 | % | 86.8 | % | 29,316,912 | 0.14 | % | 89.5 | % | |||||||||||||
Non-core funding: | |||||||||||||||||||||||
Relationship based non-core funding: | |||||||||||||||||||||||
Other time deposits | 1,177,786 | 2.13 | % | 3.3 | % | 565,184 | 0.76 | % | 1.7 | % | |||||||||||||
Securities sold under agreements to repurchase | 194,910 | 0.94 | % | 0.5 | % | 152,559 | 0.15 | % | 0.5 | % | |||||||||||||
Total relationship based non-core funding | 1,372,696 | 1.92 | % | 3.8 | % | 717,743 | 0.65 | % | 2.2 | % | |||||||||||||
Wholesale funding: | |||||||||||||||||||||||
Brokered deposits | 1,939,633 | 4.66 | % | 5.4 | % | 1,019,259 | 0.31 | % | 3.1 | % | |||||||||||||
Brokered time deposits | 542,742 | 2.09 | % | 1.5 | % | 403,178 | 1.15 | % | 1.2 | % | |||||||||||||
Federal Home Loan Bank advances | 464,436 | 3.04 | % | 1.3 | % | 888,681 | 2.01 | % | 2.7 | % | |||||||||||||
Subordinated debt and other funding | 424,055 | 5.00 | % | 1.2 | % | 423,172 | 4.38 | % | 1.3 | % | |||||||||||||
Total wholesale funding | 3,370,866 | 3.91 | % | 9.4 | % | 2,734,290 | 1.60 | % | 8.3 | % | |||||||||||||
Total non-core funding | 4,743,562 | 3.40 | % | 13.2 | % | 3,452,033 | 1.42 | % | 10.5 | % | |||||||||||||
Totals | $ | 36,044,639 | 1.47 | % | 100.0 | % | $ | 32,768,945 | 0.33 | % | 100.0 | % |
Balances | Weighted Avg. Rate | ||||||||||
Denominations less than $250,000 | |||||||||||
Three months or less | $ | 527,347 | 1.84 | % | |||||||
Over three but through six months | 508,775 | 1.87 | % | ||||||||
Over six but through twelve months | 709,096 | 2.40 | % | ||||||||
Over twelve months | 435,574 | 2.77 | % | ||||||||
2,180,792 | 2.21 | % | |||||||||
Denomination $250,000 and greater | |||||||||||
Three months or less | 439,171 | 2.58 | % | ||||||||
Over three but through six months | 301,930 | 2.71 | % | ||||||||
Over six but through twelve months | 244,611 | 2.81 | % | ||||||||
Over twelve months | 322,851 | 3.45 | % | ||||||||
1,308,563 | 2.87 | % | |||||||||
Totals | $ | 3,489,355 | 2.46 | % |
Scheduled maturities | Weighted average interest rates (1) | ||||||||||
2023 | $ | — | — | % | |||||||
2024 | — | — | % | ||||||||
2025 | 116,250 | 4.85 | % | ||||||||
2026 | — | — | % | ||||||||
2027 | — | — | % | ||||||||
Thereafter | 350,012 | 2.36 | % | ||||||||
466,262 | |||||||||||
Deferred costs | (1,826) | ||||||||||
Total Federal Home Loan Bank advances | $ | 464,436 | |||||||||
Weighted average interest rate | 2.98 | % |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Total capital to risk weighted assets: | |||||||||||
Pinnacle Financial | 12.4% | 13.8% | |||||||||
Pinnacle Bank | 11.6% | 12.6% | |||||||||
Tier 1 capital to risk weighted assets: | |||||||||||
Pinnacle Financial | 10.5% | 11.7% | |||||||||
Pinnacle Bank | 10.9% | 11.9% | |||||||||
Common equity Tier 1 capital: | |||||||||||
Pinnacle Financial | 10.0% | 10.9% | |||||||||
Pinnacle Bank | 10.9% | 11.9% |
December 31, | |||||||||||
2022 | 2021 | ||||||||||
Tier 1 capital to average assets (*): | |||||||||||
Pinnacle Financial | 9.7% | 9.7% | |||||||||
Pinnacle Bank | 10.1% | 9.9% |
Estimated % Change in Net Interest Income Over 12 Months | ||||||||
December 31, 2022* | December 31, 2021* | |||||||
Instantaneous Rate Change | ||||||||
300 bps increase | 5.5 | % | 10.3 | % | ||||
200 bps increase | 4.0 | % | 6.7 | % | ||||
100 bps increase | 2.0 | % | 2.8 | % | ||||
100 bps decrease | (1.3) | % | (2.5) | % | ||||
200 bps decrease | (2.5) | % | (3.7) | % | ||||
300 bps decrease | (7.7) | % | (4.2) | % |
December 31, 2022* | December 31, 2021* | |||||||
Instantaneous Rate Change | ||||||||
300 bps increase | (20.6) | % | (12.4%) | |||||
200 bps increase | (14.2) | % | (7.2%) | |||||
100 bps increase | (7.3) | % | (1.0%) | |||||
100 bps decrease | 5.6 | % | (8.1%) | |||||
200 bps decrease | 3.9 | % | (10.0) | % | ||||
300 bps decrease | 2.3 | % | (9.9) | % |
Consolidated Financial Statements: | |||||
(in thousands) | |||||||||||
December 31, | |||||||||||
ASSETS | 2022 | 2021 | |||||||||
Cash and noninterest-bearing due from banks | $ | 268,649 | $ | 188,287 | |||||||
Restricted cash | 31,447 | 82,505 | |||||||||
Interest-bearing due from banks | 877,286 | 3,830,747 | |||||||||
Federal funds sold and other | — | — | |||||||||
Cash and cash equivalents | 1,177,382 | 4,101,539 | |||||||||
Securities purchased under agreements to resell | 513,276 | 1,000,000 | |||||||||
Securities available-for-sale, at fair value | 3,558,870 | 4,914,194 | |||||||||
Securities held-to-maturity (fair value of $2.7 billion and $1.2 billion, net of allowance for credit losses of $1.6 million and $161 at Dec. 31, 2022 and 2021, respectively) | 3,079,050 | 1,155,958 | |||||||||
Consumer loans held-for-sale | 42,237 | 45,806 | |||||||||
Commercial loans held-for-sale | 21,093 | 17,685 | |||||||||
Loans | 29,041,605 | 23,414,262 | |||||||||
Less allowance for credit losses | (300,665) | (263,233) | |||||||||
Loans, net | 28,740,940 | 23,151,029 | |||||||||
Premises and equipment, net | 327,885 | 288,182 | |||||||||
Equity method investment | 443,185 | 360,833 | |||||||||
Accrued interest receivable | 161,182 | 98,813 | |||||||||
Goodwill | 1,846,973 | 1,819,811 | |||||||||
Core deposits and other intangible assets | 34,555 | 33,819 | |||||||||
Other real estate owned | 7,952 | 8,537 | |||||||||
Other assets | 2,015,441 | 1,473,193 | |||||||||
Total assets | $ | 41,970,021 | $ | 38,469,399 | |||||||
Deposits: | |||||||||||
Non-interest-bearing | $ | 9,812,744 | $ | 10,461,071 | |||||||
Interest-bearing | 7,884,605 | 6,530,015 | |||||||||
Savings and money market accounts | 13,774,534 | 12,179,663 | |||||||||
Time | 3,489,355 | 2,133,784 | |||||||||
Total deposits | 34,961,238 | 31,304,533 | |||||||||
Securities sold under agreements to repurchase | 194,910 | 152,559 | |||||||||
Federal Home Loan Bank advances | 464,436 | 888,681 | |||||||||
Subordinated debt and other borrowings | 424,055 | 423,172 | |||||||||
Accrued interest payable | 19,478 | 12,504 | |||||||||
Other liabilities | 386,512 | 377,343 | |||||||||
Total liabilities | 36,450,629 | 33,158,792 | |||||||||
Shareholders' equity: | |||||||||||
Preferred stock, no par value; 10.0 million shares authorized; 225,000 shares non-cumulative perpetual preferred stock, Series B, liquidation preference $225.0 million, issued and outstanding at Dec. 31, 2022 and 2021, respectively | 217,126 | 217,126 | |||||||||
Common stock, par value $1.00; 180.0 million shares authorized; 76.5 million and 76.1 million shares issued and outstanding at Dec. 31, 2022 and 2021, respectively | 76,454 | 76,143 | |||||||||
Additional paid-in capital | 3,074,867 | 3,045,802 | |||||||||
Retained earnings | 2,341,706 | 1,864,350 | |||||||||
Accumulated other comprehensive income (loss), net of taxes | (190,761) | 107,186 | |||||||||
Total shareholders' equity | 5,519,392 | 5,310,607 | |||||||||
Total liabilities and shareholders' equity | $ | 41,970,021 | $ | 38,469,399 |
For the years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Interest income: | |||||||||||||||||
Loans, including fees | $ | 1,182,492 | $ | 924,043 | $ | 919,744 | |||||||||||
Securities: | |||||||||||||||||
Taxable | 67,063 | 34,769 | 35,663 | ||||||||||||||
Tax-exempt | 81,522 | 64,848 | 58,867 | ||||||||||||||
Federal funds sold and other | 42,858 | 7,554 | 6,768 | ||||||||||||||
Total interest income | 1,373,935 | 1,031,214 | 1,021,042 | ||||||||||||||
Interest expense: | |||||||||||||||||
Deposits | 204,119 | 54,116 | 135,547 | ||||||||||||||
Securities sold under agreements to repurchase | 794 | 239 | 350 | ||||||||||||||
Federal Home Loan Bank advances and other borrowings | 39,729 | 44,458 | 63,357 | ||||||||||||||
Total interest expense | 244,642 | 98,813 | 199,254 | ||||||||||||||
Net interest income | 1,129,293 | 932,401 | 821,788 | ||||||||||||||
Provision for credit losses | 67,925 | 16,126 | 203,815 | ||||||||||||||
Net interest income after provision for credit losses | 1,061,368 | 916,275 | 617,973 | ||||||||||||||
Noninterest income: | |||||||||||||||||
Service charges on deposit accounts | 44,675 | 41,311 | 34,282 | ||||||||||||||
Investment services | 46,441 | 37,917 | 29,537 | ||||||||||||||
Insurance sales commissions | 12,186 | 10,516 | 10,055 | ||||||||||||||
Gains on mortgage loans sold, net | 7,268 | 32,424 | 60,042 | ||||||||||||||
Investment gains on sales, net | 156 | 759 | 986 | ||||||||||||||
Trust fees | 23,511 | 20,724 | 16,496 | ||||||||||||||
Income from equity method investment | 145,466 | 122,274 | 83,539 | ||||||||||||||
Other noninterest income | 136,421 | 129,809 | 82,903 | ||||||||||||||
Total noninterest income | 416,124 | 395,734 | 317,840 | ||||||||||||||
Noninterest expense: | |||||||||||||||||
Salaries and employee benefits | 510,175 | 436,006 | 334,483 | ||||||||||||||
Equipment and occupancy | 109,672 | 95,250 | 88,475 | ||||||||||||||
Other real estate (benefit) expense, net | 280 | (712) | 8,555 | ||||||||||||||
Marketing and other business development | 21,073 | 12,888 | 10,693 | ||||||||||||||
Postage and supplies | 10,168 | 8,195 | 7,819 | ||||||||||||||
Amortization of intangibles | 7,810 | 8,518 | 9,793 | ||||||||||||||
Other noninterest expense | 120,821 | 99,959 | 104,637 | ||||||||||||||
Total noninterest expense | 779,999 | 660,104 | 564,455 | ||||||||||||||
Income before income taxes | 697,493 | 651,905 | 371,358 | ||||||||||||||
Income tax expense | 136,751 | 124,582 | 59,037 | ||||||||||||||
Net income | $ | 560,742 | $ | 527,323 | $ | 312,321 | |||||||||||
Preferred stock dividends | 15,192 | 15,192 | 7,596 | ||||||||||||||
Net income available to common shareholders | $ | 545,550 | $ | 512,131 | $ | 304,725 | |||||||||||
Per share information: | |||||||||||||||||
Basic net income per common share | $ | 7.20 | $ | 6.79 | $ | 4.04 | |||||||||||
Diluted net income per common share | $ | 7.17 | $ | 6.75 | $ | 4.03 | |||||||||||
Weighted average common shares outstanding: | |||||||||||||||||
Basic | 75,735,404 | 75,468,339 | 75,376,489 | ||||||||||||||
Diluted | 76,133,865 | 75,927,147 | 75,654,385 |
Year Ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Net income: | $ | 560,742 | $ | 527,323 | $ | 312,321 | |||||||||||
Other comprehensive income (loss), net of tax: | |||||||||||||||||
Changes in fair value on available-for-sale securities, net of tax | (283,382) | (32,509) | 92,829 | ||||||||||||||
Changes in fair value of cash flow hedges, net of tax | 1,002 | (18,373) | 52,798 | ||||||||||||||
Accretion of net unrealized gains on securities transferred from available-for-sale to held-to-maturity, net of tax | (5,477) | (7,575) | (5,126) | ||||||||||||||
Loss (gain) on cash flow hedges reclassified from other comprehensive income into net income, net of tax | (9,975) | (9,645) | 5,542 | ||||||||||||||
Net gain on sale of investment securities reclassified from other comprehensive income into net income, net of tax | (115) | (561) | (728) | ||||||||||||||
Total other comprehensive income (loss), net of tax | (297,947) | (68,663) | 145,315 | ||||||||||||||
Total comprehensive income | $ | 262,795 | $ | 458,660 | $ | 457,636 |
Preferred Stock | Common Stock | Additional Paid-in Capital | Retained Earnings | Accumulated Other Comprehensive Income (Loss) | Total Shareholders' Equity | ||||||||||||||||||
Amount | Shares | Amount | |||||||||||||||||||||
December 31, 2019 | $ | — | 76,564 | $ | 76,564 | $ | 3,064,467 | $ | 1,184,183 | $ | 30,534 | $ | 4,355,748 | ||||||||||
Issuance of preferred stock | 217,126 | — | — | — | — | — | 217,126 | ||||||||||||||||
Exercise of employee common stock options and related tax benefits | — | 18 | 18 | 392 | — | — | 410 | ||||||||||||||||
Repurchase of common stock | — | (1,015) | (1,015) | (49,775) | — | — | (50,790) | ||||||||||||||||
Preferred dividends paid ($33.76 per share) | — | — | — | — | (7,596) | — | (7,596) | ||||||||||||||||
Common dividends paid ($0.64 per share) | — | — | — | — | (49,389) | — | (49,389) | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | 255 | 255 | (255) | — | — | — | ||||||||||||||||
Restricted shares withheld for taxes & related tax benefit | — | (58) | (58) | (2,929) | — | — | (2,987) | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit and performance stock unit agreements, net of shares withheld for taxes and related tax benefits | — | 86 | 86 | (2,574) | — | — | (2,488) | ||||||||||||||||
Compensation expense for restricted shares and performance stock units | — | — | — | 18,737 | — | — | 18,737 | ||||||||||||||||
Net income | — | — | — | — | 312,321 | — | 312,321 | ||||||||||||||||
Cumulative effect of change in accounting principle | — | — | — | — | (31,796) | — | (31,796) | ||||||||||||||||
Other comprehensive income | — | — | — | — | — | 145,315 | 145,315 | ||||||||||||||||
December 31, 2020 | $ | 217,126 | 75,850 | $ | 75,850 | $ | 3,028,063 | $ | 1,407,723 | $ | 175,849 | $ | 4,904,611 | ||||||||||
Exercise of employee common stock options and related tax benefits | — | 45 | 45 | 956 | — | — | 1,001 | ||||||||||||||||
Preferred dividends paid ($67.52 per share) | — | — | — | — | (15,192) | — | (15,192) | ||||||||||||||||
Common dividends paid ($0.72 per share) | — | — | — | — | (55,504) | — | (55,504) | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | 213 | 213 | (213) | — | — | — | ||||||||||||||||
Restricted shares withheld for taxes & related tax benefit | — | (53) | (53) | (4,078) | — | — | (4,131) | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit and performance stock unit agreements, net of shares withheld for taxes and related tax benefits | — | 88 | 88 | (3,878) | — | — | (3,790) | ||||||||||||||||
Compensation expense for restricted shares and performance stock units | — | — | — | 24,952 | — | — | 24,952 | ||||||||||||||||
Net income | — | — | — | — | 527,323 | — | 527,323 | ||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (68,663) | (68,663) | ||||||||||||||||
December 31, 2021 | $ | 217,126 | 76,143 | $ | 76,143 | $ | 3,045,802 | $ | 1,864,350 | $ | 107,186 | $ | 5,310,607 | ||||||||||
Exercise of employee common stock options and related tax benefits | — | 16 | 16 | 312 | — | — | 328 | ||||||||||||||||
Preferred dividends paid ($67.52 per share) | — | — | — | — | (15,192) | — | (15,192) | ||||||||||||||||
Common dividends paid ($0.88 per share) | — | — | — | — | (68,194) | — | (68,194) | ||||||||||||||||
Issuance of restricted common shares, net of forfeitures | — | 250 | 250 | (250) | — | — | — | ||||||||||||||||
Restricted shares withheld for taxes & related tax benefit | — | (51) | (51) | (4,991) | — | — | (5,042) | ||||||||||||||||
Issuance of common stock pursuant to restricted stock unit and performance stock unit agreements, net of shares withheld for taxes and related tax benefits | — | 96 | 96 | (5,558) | — | — | (5,462) | ||||||||||||||||
Compensation expense for restricted shares and performance stock units | — | — | — | 39,552 | — | — | 39,552 | ||||||||||||||||
Net income | — | — | — | — | 560,742 | — | 560,742 | ||||||||||||||||
Other comprehensive loss | — | — | — | — | — | (297,947) | (297,947) | ||||||||||||||||
December 31, 2022 | $ | 217,126 | 76,454 | $ | 76,454 | $ | 3,074,867 | $ | 2,341,706 | $ | (190,761) | $ | 5,519,392 |
(in thousands) | For the years ended December 31, | ||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 560,742 | $ | 527,323 | $ | 312,321 | |||||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||||||||
Net amortization/accretion of premium/discount on securities | 65,838 | 59,066 | 38,051 | ||||||||||||||
Depreciation, amortization and accretion | 62,298 | 53,256 | 45,203 | ||||||||||||||
Provision for credit losses | 67,925 | 16,126 | 203,815 | ||||||||||||||
Gains on mortgage loans sold, net | (7,268) | (32,424) | (60,042) | ||||||||||||||
Investment gains on sales, net | (156) | (759) | (986) | ||||||||||||||
Gain on other equity investments, net | (10,605) | (23,109) | (1,071) | ||||||||||||||
Stock-based compensation expense | 39,552 | 24,952 | 18,737 | ||||||||||||||
Deferred tax expense (benefit) | 19,740 | (12,232) | (58,315) | ||||||||||||||
Losses (gains) on disposition of other real estate and other investments | (179) | (1,168) | 7,604 | ||||||||||||||
Gain on remeasurement of previously held noncontrolling interest | (5,500) | — | — | ||||||||||||||
Income from equity method investment | (145,466) | (122,274) | (83,539) | ||||||||||||||
Dividends received from equity method investment | 63,114 | 69,996 | 53,020 | ||||||||||||||
Excess tax benefit from stock compensation | (3,027) | (2,475) | (417) | ||||||||||||||
Gains on commercial loans sold, net | (2,275) | (4,143) | (2,620) | ||||||||||||||
Commercial loans held for sale originated | (498,312) | (564,647) | (407,578) | ||||||||||||||
Commercial loans held for sale sold | 497,180 | 582,305 | 396,584 | ||||||||||||||
Consumer loans held for sale originated | (1,578,168) | (2,037,897) | (2,122,796) | ||||||||||||||
Consumer loans held for sale sold | 1,589,005 | 2,112,336 | 2,176,836 | ||||||||||||||
Decrease (increase) in other assets | (82,893) | 73,527 | (157,294) | ||||||||||||||
Increase (decrease) in other liabilities | (26,620) | (60,315) | 69,241 | ||||||||||||||
Net cash provided by operating activities | 604,925 | 657,444 | 426,754 | ||||||||||||||
Investing activities: | |||||||||||||||||
Activities in securities available-for-sale: | |||||||||||||||||
Purchases | (699,293) | (2,107,794) | (1,412,210) | ||||||||||||||
Sales | 29,501 | 37,457 | 145,631 | ||||||||||||||
Maturities, prepayments and calls | 417,348 | 617,054 | 469,337 | ||||||||||||||
Activities in securities held-to-maturity: | |||||||||||||||||
Purchases | (968,449) | (186,260) | — | ||||||||||||||
Maturities, prepayments and calls | 74,770 | 40,442 | 20,473 | ||||||||||||||
Net decrease (increase) in securities purchased under agreements to resell | 486,724 | (1,000,000) | — | ||||||||||||||
Increase in loans, net | (5,634,350) | (1,027,185) | (2,661,316) | ||||||||||||||
Purchases of premises and equipment and software | (63,522) | (23,178) | (38,761) | ||||||||||||||
Purchase of bank owned life insurance | (100,000) | — | (75,000) | ||||||||||||||
Proceeds from bank owned life insurance settlement | 1,951 | 1,656 | 6,486 | ||||||||||||||
Proceeds from sales of software, premises, and equipment | 698 | 281 | — | ||||||||||||||
Acquisitions, net of cash acquired | (30,896) | — | — | ||||||||||||||
Proceeds from sale of other real estate | 994 | 6,090 | 13,272 | ||||||||||||||
Proceeds from (payments for) derivative instruments | (95,734) | 99,710 | 35,680 | ||||||||||||||
Proceeds from sale (purchase) of Federal Home Loan Bank stock | (12,389) | 12,602 | — | ||||||||||||||
Purchase of other intangible assets | (825) | — | (1,000) | ||||||||||||||
Increase in other investments | (90,967) | (83,830) | (70,183) | ||||||||||||||
Net cash used in investing activities | (6,684,439) | (3,612,955) | (3,567,591) |
Goodwill | Core deposit and other intangible assets | Total | |||||||||||||||
Balance at December 31, 2021 | $ | 1,819,811 | $ | 33,819 | $ | 1,853,630 | |||||||||||
Acquisitions and purchase of other intangible asset | 27,162 | 8,546 | 35,708 | ||||||||||||||
Amortization | — | (7,810) | (7,810) | ||||||||||||||
Balance at December 31, 2022 | $ | 1,846,973 | $ | 34,555 | $ | 1,881,528 |
December 31, 2022 | December 31, 2021 | ||||||||||
Gross carrying amount | $ | 117,211 | $ | 108,665 | |||||||
Accumulated amortization | (82,656) | (74,846) | |||||||||
Net book value | $ | 34,555 | $ | 33,819 |
For the years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Cash Payments: | |||||||||||||||||
Interest | $ | 236,463 | $ | 110,119 | $ | 215,888 | |||||||||||
Income taxes paid | 128,850 | 108,304 | 110,798 | ||||||||||||||
Noncash Transactions: | |||||||||||||||||
Loans charged-off to the allowance for credit losses | 54,176 | 54,996 | 49,333 | ||||||||||||||
Loans foreclosed upon with repossessions transferred to other real estate | 230 | 1,098 | 3,436 | ||||||||||||||
Loans foreclosed upon with repossessions transferred to other repossessed assets | — | — | 25 | ||||||||||||||
Available-for-sale securities transferred to held-to-maturity portfolio | 1,059,737 | — | 873,613 | ||||||||||||||
Right-of-use assets recognized in the period in exchange for lease obligations | 42,413 | 17,642 | 15,820 |
December 31, 2022 | December 31, 2021 | December 31, 2020 | |||||||||||||||
Basic earnings per common share calculation: | |||||||||||||||||
Numerator - Net income available to common shareholders | $ | 545,550 | $ | 512,131 | $ | 304,725 | |||||||||||
Denominator – Weighted average common shares outstanding | 75,735,404 | 75,468,339 | 75,376,489 | ||||||||||||||
Basic net income per common share | $ | 7.20 | $ | 6.79 | $ | 4.04 | |||||||||||
Diluted earnings per common share calculation: | |||||||||||||||||
Numerator - Net income available to common shareholders | $ | 545,550 | $ | 512,131 | $ | 304,725 | |||||||||||
Denominator – Weighted average common shares outstanding | 75,735,404 | 75,468,339 | 75,376,489 | ||||||||||||||
Dilutive shares contingently issuable | 398,461 | 458,808 | 277,896 | ||||||||||||||
Weighted average diluted common shares outstanding | 76,133,865 | 75,927,147 | 75,654,385 | ||||||||||||||
Diluted net income per common share | $ | 7.17 | $ | 6.75 | $ | 4.03 |
Banker's Healthcare Group | December 31, 2022 | December 31, 2021 | |||||||||
Assets | $ | 4,375,643 | $ | 2,724,542 | |||||||
Liabilities | $ | 3,821,725 | $ | 2,355,256 | |||||||
Equity interests | 553,918 | 369,286 | |||||||||
Total liabilities and equity | $ | 4,375,643 | $ | 2,724,542 |
For the year ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Revenues | $ | 1,110,230 | $ | 735,506 | $ | 457,928 | |||||||||||
Net income, pre-tax | $ | 295,186 | $ | 241,051 | $ | 171,964 |
Amortized Cost | Gross Unrealized Gains | Gross Unrealized Losses | Fair Value | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||
U.S Treasury securities | $ | 196,151 | $ | — | $ | 1,967 | $ | 194,184 | |||||||||||||||
U.S. Government agency securities | 432,475 | — | 36,318 | 396,157 | |||||||||||||||||||
Mortgage-backed securities | 1,114,948 | 211 | 143,583 | 971,576 | |||||||||||||||||||
State and municipal securities | 1,478,310 | 12,553 | 78,557 | 1,412,306 | |||||||||||||||||||
Asset-backed securities | 134,386 | — | 16,983 | 117,403 | |||||||||||||||||||
Corporate notes and other | 515,221 | 41 | 48,018 | 467,244 | |||||||||||||||||||
$ | 3,871,491 | $ | 12,805 | $ | 325,426 | $ | 3,558,870 | ||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||
U.S Treasury securities | $ | 92,738 | $ | — | $ | 6,472 | $ | 86,266 | |||||||||||||||
U.S. Government agency securities | 374,255 | — | 27,860 | 346,395 | |||||||||||||||||||
Mortgage-backed securities | 413,119 | 52 | 41,593 | 371,578 | |||||||||||||||||||
State and municipal securities | 1,927,778 | 2,216 | 233,564 | 1,696,430 | |||||||||||||||||||
Asset-backed securities | 184,241 | — | 18,573 | 165,668 | |||||||||||||||||||
Corporate notes and other | 88,527 | — | 9,918 | 78,609 | |||||||||||||||||||
$ | 3,080,658 | $ | 2,268 | $ | 337,980 | $ | 2,744,946 | ||||||||||||||||
Allowance for credit losses - securities held-to-maturity | (1,608) | ||||||||||||||||||||||
Securities held-to-maturity, net of allowance for credit losses | $ | 3,079,050 | |||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Securities available-for-sale: | |||||||||||||||||||||||
U.S Treasury securities | $ | 194,490 | $ | — | $ | 881 | $ | 193,609 | |||||||||||||||
U.S. Government agency securities | 634,611 | 2,359 | 4,961 | 632,009 | |||||||||||||||||||
Mortgage-backed securities | 1,908,675 | 29,874 | 18,310 | 1,920,239 | |||||||||||||||||||
State and municipal securities | 1,774,119 | 52,961 | 3,243 | 1,823,837 | |||||||||||||||||||
Asset-backed securities | 232,294 | 60 | 2,785 | 229,569 | |||||||||||||||||||
Corporate notes and other | 114,355 | 3,082 | 2,506 | 114,931 | |||||||||||||||||||
$ | 4,858,544 | $ | 88,336 | $ | 32,686 | $ | 4,914,194 | ||||||||||||||||
Securities held-to-maturity: | |||||||||||||||||||||||
U.S. Government agency securities | 11,920 | — | 37 | 11,883 | |||||||||||||||||||
Mortgage-backed securities | 106,555 | 86 | 196 | 106,445 | |||||||||||||||||||
State and municipal securities | 1,037,644 | 32,966 | 889 | 1,069,721 | |||||||||||||||||||
$ | 1,156,119 | $ | 33,052 | $ | 1,122 | $ | 1,188,049 | ||||||||||||||||
Allowance for credit losses - securities held-to-maturity | (161) | ||||||||||||||||||||||
Securities held-to-maturity, net of allowance for credit losses | $ | 1,155,958 |
Available-for-sale | Held-to-maturity | ||||||||||||||||||||||
Amortized Cost | Fair Value | Amortized Cost | Fair Value | ||||||||||||||||||||
Due in one year or less | $ | 12,329 | $ | 12,234 | $ | 1,994 | $ | 1,981 | |||||||||||||||
Due in one year to five years | 186,874 | 193,512 | 427,894 | 396,683 | |||||||||||||||||||
Due in five years to ten years | 725,776 | 654,799 | 133,681 | 120,245 | |||||||||||||||||||
Due after ten years | 1,697,178 | 1,609,346 | 1,919,729 | 1,688,791 | |||||||||||||||||||
Mortgage-backed securities | 1,114,948 | 971,576 | 413,119 | 371,578 | |||||||||||||||||||
Asset-backed securities | 134,386 | 117,403 | 184,241 | 165,668 | |||||||||||||||||||
$ | 3,871,491 | $ | 3,558,870 | $ | 3,080,658 | $ | 2,744,946 |
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 | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 192,188 | $ | 1,963 | $ | 1,997 | $ | 4 | $ | 194,185 | $ | 1,967 | |||||||||||||||||||||||
U.S. Government agency securities | 46,062 | 2,224 | 350,094 | 34,094 | 396,156 | 36,318 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 390,014 | 34,106 | 570,601 | 109,477 | 960,615 | 143,583 | |||||||||||||||||||||||||||||
State and municipal securities | 568,691 | 18,863 | 304,451 | 59,694 | 873,142 | 78,557 | |||||||||||||||||||||||||||||
Asset-backed securities | 513 | 5 | 116,442 | 16,978 | 116,955 | 16,983 | |||||||||||||||||||||||||||||
Corporate notes and other | 259,453 | 20,260 | 207,326 | 27,758 | 466,779 | 48,018 | |||||||||||||||||||||||||||||
Total temporarily-impaired securities | $ | 1,456,921 | $ | 77,421 | $ | 1,550,911 | $ | 248,005 | $ | 3,007,832 | $ | 325,426 | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
U.S. Treasury securities | $ | 178,610 | $ | 881 | $ | — | $ | — | $ | 178,610 | $ | 881 | |||||||||||||||||||||||
U.S. Government agency securities | 365,833 | 3,024 | 54,266 | 1,974 | 420,099 | 4,998 | |||||||||||||||||||||||||||||
Mortgage-backed securities | 825,664 | 11,859 | 178,956 | 6,647 | 1,004,620 | 18,506 | |||||||||||||||||||||||||||||
State and municipal securities | 363,102 | 2,665 | 57,270 | 1,045 | 420,372 | 3,710 | |||||||||||||||||||||||||||||
Asset-backed securities | 198,349 | 2,595 | 6,513 | 190 | 204,862 | 2,785 | |||||||||||||||||||||||||||||
Corporate notes and other | 14,991 | 554 | 20,270 | 1,952 | 35,261 | 2,506 | |||||||||||||||||||||||||||||
Total temporarily-impaired securities | $ | 1,946,549 | $ | 21,578 | $ | 317,275 | $ | 11,808 | $ | 2,263,824 | $ | 33,386 |
December 31, 2022 | December 31, 2021 | |||||||||||||
Commercial real estate: | ||||||||||||||
Owner-occupied | $ | 3,587,257 | $ | 3,048,822 | ||||||||||
Non-owner occupied | 6,542,619 | 5,221,704 | ||||||||||||
Consumer real estate – mortgage | 4,435,046 | 3,680,684 | ||||||||||||
Construction and land development | 3,679,498 | 2,903,017 | ||||||||||||
Commercial and industrial | 10,241,362 | 8,074,546 | ||||||||||||
Consumer and other | 555,823 | 485,489 | ||||||||||||
Subtotal | $ | 29,041,605 | $ | 23,414,262 | ||||||||||
Allowance for credit losses | (300,665) | (263,233) | ||||||||||||
Loans, net | $ | 28,740,940 | $ | 23,151,029 |
December 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Total | ||||||||||||||||||
Commercial real estate- owner occupied | ||||||||||||||||||||||||||
Pass | $ | 1,172,662 | $ | 856,145 | $ | 594,369 | $ | 315,711 | $ | 244,203 | $ | 277,072 | $ | 64,206 | $ | 3,524,368 | ||||||||||
Special Mention | 20,710 | 9,451 | 8,434 | 5,987 | — | 5,575 | — | 50,157 | ||||||||||||||||||
Substandard (1) | 2,685 | 2,843 | 1,633 | 1,035 | 1,356 | 1,298 | — | 10,850 | ||||||||||||||||||
Substandard-nonaccrual | 677 | — | 64 | 94 | 919 | 128 | — | 1,882 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Commercial real estate - owner occupied | $ | 1,196,734 | $ | 868,439 | $ | 604,500 | $ | 322,827 | $ | 246,478 | $ | 284,073 | $ | 64,206 | $ | 3,587,257 | ||||||||||
Commercial real estate- Non-owner occupied | ||||||||||||||||||||||||||
Pass | $ | 2,443,858 | $ | 1,551,480 | $ | 998,502 | $ | 708,665 | $ | 294,972 | $ | 382,254 | $ | 89,370 | $ | 6,469,101 | ||||||||||
Special Mention | 28,927 | — | 16,936 | 15,064 | — | 9,071 | — | 69,998 | ||||||||||||||||||
Substandard (1) | — | — | — | 1,276 | — | — | — | 1,276 | ||||||||||||||||||
Substandard-nonaccrual | — | 1,040 | — | — | — | 1,204 | — | 2,244 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Commercial real estate - Non-owner occupied | $ | 2,472,785 | $ | 1,552,520 | $ | 1,015,438 | $ | 725,005 | $ | 294,972 | $ | 392,529 | $ | 89,370 | $ | 6,542,619 | ||||||||||
Consumer real estate – mortgage | ||||||||||||||||||||||||||
Pass | $ | 1,055,454 | $ | 1,122,823 | $ | 492,824 | $ | 238,931 | $ | 124,579 | $ | 258,187 | $ | 1,124,453 | $ | 4,417,251 | ||||||||||
Special Mention | 207 | — | — | — | 216 | 42 | — | 465 | ||||||||||||||||||
Substandard (1) | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard-nonaccrual | 198 | 1,676 | 2,184 | 7,957 | 1,202 | 3,749 | 364 | 17,330 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Consumer real estate – mortgage | $ | 1,055,859 | $ | 1,124,499 | $ | 495,008 | $ | 246,888 | $ | 125,997 | $ | 261,978 | $ | 1,124,817 | $ | 4,435,046 | ||||||||||
Construction and land development | ||||||||||||||||||||||||||
Pass | $ | 1,964,251 | $ | 1,363,519 | $ | 246,840 | $ | 55,396 | $ | 5,989 | $ | 5,707 | $ | 19,251 | $ | 3,660,953 | ||||||||||
Special Mention | 14,978 | 2,765 | — | — | — | — | 1 | 17,744 | ||||||||||||||||||
Substandard (1) | 440 | — | — | — | — | 130 | — | 570 | ||||||||||||||||||
Substandard-nonaccrual | — | 130 | — | — | — | 101 | — | 231 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Construction and land development | $ | 1,979,669 | $ | 1,366,414 | $ | 246,840 | $ | 55,396 | $ | 5,989 | $ | 5,938 | $ | 19,252 | $ | 3,679,498 | ||||||||||
Commercial and industrial | ||||||||||||||||||||||||||
Pass | $ | 3,686,252 | $ | 1,643,062 | $ | 485,030 | $ | 320,501 | $ | 146,884 | $ | 132,388 | $ | 3,645,795 | $ | 10,059,912 | ||||||||||
Special Mention | 33,491 | 2,370 | 3,570 | 27,607 | 4,738 | 1,174 | 51,014 | 123,964 | ||||||||||||||||||
Substandard (1) | 7,673 | 7,954 | 255 | 6,818 | 715 | 792 | 16,934 | 41,141 | ||||||||||||||||||
Substandard-nonaccrual | 11,682 | 3,684 | 143 | 183 | 266 | 369 | 18 | 16,345 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Commercial and industrial | $ | 3,739,098 | $ | 1,657,070 | $ | 488,998 | $ | 355,109 | $ | 152,603 | $ | 134,723 | $ | 3,713,761 | $ | 10,241,362 | ||||||||||
December 31, 2022 | 2022 | 2021 | 2020 | 2019 | 2018 | Prior | Revolving Loans | Total | ||||||||||||||||||
Consumer and other | ||||||||||||||||||||||||||
Pass | $ | 156,417 | $ | 101,821 | $ | 55,362 | $ | 1,865 | $ | 744 | $ | 997 | $ | 238,533 | $ | 555,739 | ||||||||||
Special Mention | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard (1) | — | — | — | — | — | — | — | — | ||||||||||||||||||
Substandard-nonaccrual | — | 82 | — | — | — | 2 | — | 84 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total Consumer and other | $ | 156,417 | $ | 101,903 | $ | 55,362 | $ | 1,865 | $ | 744 | $ | 999 | $ | 238,533 | $ | 555,823 | ||||||||||
Total loans | ||||||||||||||||||||||||||
Pass | $ | 10,478,894 | $ | 6,638,850 | $ | 2,872,927 | $ | 1,641,069 | $ | 817,371 | $ | 1,056,605 | $ | 5,181,608 | $ | 28,687,324 | ||||||||||
Special Mention | 98,313 | 14,586 | 28,940 | 48,658 | 4,954 | 15,862 | 51,015 | 262,328 | ||||||||||||||||||
Substandard (1) | 10,798 | 10,797 | 1,888 | 9,129 | 2,071 | 2,220 | 16,934 | 53,837 | ||||||||||||||||||
Substandard-nonaccrual | 12,557 | 6,612 | 2,391 | 8,234 | 2,387 | 5,553 | 382 | 38,116 | ||||||||||||||||||
Doubtful-nonaccrual | — | — | — | — | — | — | — | — | ||||||||||||||||||
Total loans | $ | 10,600,562 | $ | 6,670,845 | $ | 2,906,146 | $ | 1,707,090 | $ | 826,783 | $ | 1,080,240 | $ | 5,249,939 | $ | 29,041,605 |
30-59 days past due | 60-89 days past due | 90 days or more past due | Total past due | Current | Total loans | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 2,112 | $ | 615 | $ | 1,139 | $ | 3,866 | $ | 3,583,391 | $ | 3,587,257 | |||||||||||||||||||||||
Non-owner occupied | 359 | 48 | 1,681 | 2,088 | 6,540,531 | 6,542,619 | |||||||||||||||||||||||||||||
Consumer real estate – mortgage | 13,635 | 83 | 9,094 | 22,812 | 4,412,234 | 4,435,046 | |||||||||||||||||||||||||||||
Construction and land development | 221 | 102 | 130 | 453 | 3,679,045 | 3,679,498 | |||||||||||||||||||||||||||||
Commercial and industrial | 15,457 | 13,713 | 9,428 | 38,598 | 10,202,764 | 10,241,362 | |||||||||||||||||||||||||||||
Consumer and other | 4,056 | 1,688 | 746 | 6,490 | 549,333 | 555,823 | |||||||||||||||||||||||||||||
Total | $ | 35,840 | $ | 16,249 | $ | 22,218 | $ | 74,307 | $ | 28,967,298 | $ | 29,041,605 | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 727 | $ | — | $ | 2,426 | $ | 3,153 | $ | 3,045,669 | $ | 3,048,822 | |||||||||||||||||||||||
Non-owner occupied | 1,434 | — | 645 | 2,079 | 5,219,625 | 5,221,704 | |||||||||||||||||||||||||||||
Consumer real estate – mortgage | 8,710 | 122 | 4,450 | 13,282 | 3,667,402 | 3,680,684 | |||||||||||||||||||||||||||||
Construction and land development | 61 | — | 127 | 188 | 2,902,829 | 2,903,017 | |||||||||||||||||||||||||||||
Commercial and industrial | 4,926 | 2,677 | 7,311 | 14,914 | 8,059,632 | 8,074,546 | |||||||||||||||||||||||||||||
Consumer and other | 1,715 | 568 | 372 | 2,655 | 482,834 | 485,489 | |||||||||||||||||||||||||||||
Total | $ | 17,573 | $ | 3,367 | $ | 15,331 | $ | 36,271 | $ | 23,377,991 | $ | 23,414,262 |
Commercial real estate - owner occupied | Commercial real estate - non-owner occupied | Consumer real estate - mortgage | Construction and land development | Commercial and industrial | Consumer and other | Unallocated | Total | |||||||||||||||||||
Allowance for Credit Losses: | ||||||||||||||||||||||||||
Balance at December 31, 2019 | $ | 13,406 | $ | 19,963 | $ | 8,054 | $ | 12,662 | $ | 36,112 | $ | 3,595 | $ | 985 | $ | 94,777 | ||||||||||
Impact of adopting ASC 326 | 264 | (4,740) | 21,029 | (3,144) | 23,040 | 2,638 | (985) | 38,102 | ||||||||||||||||||
Charged-off loans | (2,598) | (546) | (3,478) | — | (38,718) | (3,993) | — | (49,333) | ||||||||||||||||||
Recovery of previously charged-off loans | 1,317 | 911 | 1,493 | 147 | 4,540 | 1,554 | — | 9,962 | ||||||||||||||||||
Provision for loan losses | 10,909 | 63,544 | 6,206 | 32,743 | 73,449 | 4,691 | — | 191,542 | ||||||||||||||||||
Balance at December 31, 2020 | $ | 23,298 | $ | 79,132 | $ | 33,304 | $ | 42,408 | $ | 98,423 | $ | 8,485 | $ | — | $ | 285,050 | ||||||||||
Charged-off loans | (1,420) | (786) | (632) | (367) | (46,213) | (5,578) | — | (54,996) | ||||||||||||||||||
Recovery of previously charged-off loans | 1,609 | 969 | 2,288 | 372 | 7,485 | 3,550 | — | 16,273 | ||||||||||||||||||
Provision for loan losses | (3,869) | (20,811) | (2,856) | (12,984) | 52,645 | 4,781 | — | 16,906 | ||||||||||||||||||
Balance at December 31, 2021 | $ | 19,618 | $ | 58,504 | $ | 32,104 | $ | 29,429 | $ | 112,340 | $ | 11,238 | $ | — | $ | 263,233 | ||||||||||
Charged-off loans | (1,413) | (185) | (651) | (150) | (39,020) | (12,757) | — | (54,176) | ||||||||||||||||||
Recovery of previously charged-off loans | 2,082 | 187 | 1,512 | 471 | 15,687 | 7,690 | — | 27,629 | ||||||||||||||||||
Provision for loan losses | 6,330 | (18,027) | 3,571 | 6,364 | 55,346 | 10,395 | — | 63,979 | ||||||||||||||||||
Balance at December 31, 2022 | $ | 26,617 | $ | 40,479 | $ | 36,536 | $ | 36,114 | $ | 144,353 | $ | 16,566 | $ | — | $ | 300,665 |
Real Estate | Business Assets | Other | Total | |||||||||||
December 31, 2022 | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner-occupied | $ | 10,804 | $ | — | $ | — | $ | 10,804 | ||||||
Non-owner occupied | 4,795 | — | — | 4,795 | ||||||||||
Consumer real estate – mortgage | 22,466 | — | — | 22,466 | ||||||||||
Construction and land development | 299 | — | — | 299 | ||||||||||
Commercial and industrial | — | 12,327 | — | 12,327 | ||||||||||
Consumer and other | — | — | 2 | 2 | ||||||||||
Total | $ | 38,364 | $ | 12,327 | $ | 2 | $ | 50,693 | ||||||
December 31, 2021 | ||||||||||||||
Commercial real estate: | ||||||||||||||
Owner-occupied | $ | 5,300 | $ | — | $ | — | $ | 5,300 | ||||||
Non-owner occupied | 5,631 | — | — | 5,631 | ||||||||||
Consumer real estate – mortgage | 16,392 | — | — | 16,392 | ||||||||||
Construction and land development | 1,208 | — | — | 1,208 | ||||||||||
Commercial and industrial | — | 6,976 | 206 | 7,182 | ||||||||||
Consumer and other | — | — | — | — | ||||||||||
Total | $ | 28,531 | $ | 6,976 | $ | 206 | $ | 35,713 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||||||||||||||
Total nonaccrual loans | Nonaccrual loans with no allowance for credit losses | Loans past due 90 or more days and still accruing | Total nonaccrual loans | Nonaccrual loans with no allowance for credit losses | Loans past due 90 or more days and still accruing | ||||||||||||||||||||||||||||||
Commercial real estate: | |||||||||||||||||||||||||||||||||||
Owner-occupied | $ | 1,882 | $ | — | $ | — | $ | 2,694 | $ | — | $ | — | |||||||||||||||||||||||
Non-owner occupied | 2,244 | 1,040 | — | 1,404 | — | — | |||||||||||||||||||||||||||||
Consumer real estate – mortgage | 17,330 | — | — | 10,264 | — | 144 | |||||||||||||||||||||||||||||
Construction and land development | 231 | — | — | 356 | — | — | |||||||||||||||||||||||||||||
Commercial and industrial | 16,345 | 8,003 | 3,663 | 16,849 | 13,188 | 1,091 | |||||||||||||||||||||||||||||
Consumer and other | 84 | — | 743 | 2 | — | 372 | |||||||||||||||||||||||||||||
Total | $ | 38,116 | $ | 9,043 | $ | 4,406 | $ | 31,569 | $ | 13,188 | $ | 1,607 |
Number of contracts | Pre Modification Outstanding Recorded Investment | Post Modification Outstanding Recorded Investment, net of related allowance | |||||||||||||||
Commercial real estate: | |||||||||||||||||
Owner-occupied | — | $ | — | $ | — | ||||||||||||
Non-owner occupied | — | — | — | ||||||||||||||
Consumer real estate – mortgage | 1 | 807 | 807 | ||||||||||||||
Construction and land development | — | — | — | ||||||||||||||
Commercial and industrial | — | — | — | ||||||||||||||
Consumer and other | — | — | — | ||||||||||||||
1 | $ | 807 | $ | 807 | |||||||||||||
At December 31, 2022 | |||||||||||||||||||||||
Outstanding Principal Balances | Unfunded Commitments | Total exposure | Total Exposure at December 31, 2021 | ||||||||||||||||||||
Lessors of nonresidential buildings | $ | 4,911,231 | $ | 2,146,814 | $ | 7,058,045 | $ | 5,368,638 | |||||||||||||||
Lessors of residential buildings | 1,865,903 | 1,859,283 | 3,725,186 | 2,566,352 | |||||||||||||||||||
New housing for-sale builders | 760,771 | 1,002,318 | 1,763,089 | 1,534,789 | |||||||||||||||||||
Music publishers | 634,778 | 492,858 | 1,127,636 | 529,886 | |||||||||||||||||||
Total | $ | 8,172,683 | $ | 5,501,273 | $ | 13,673,956 | $ | 9,999,665 |
Range of Useful Lives | 2022 | 2021 | |||||||||||||||||||||
Land | Not applicable | $ | 71,741 | $ | 70,240 | ||||||||||||||||||
Buildings | 15 years | - | 30 years | 206,434 | 202,255 | ||||||||||||||||||
Leasehold improvements | 15 years | - | 20 years | 62,209 | 54,922 | ||||||||||||||||||
Furniture and equipment | 3 years | - | 20 years | 144,979 | 138,766 | ||||||||||||||||||
485,363 | 466,183 | ||||||||||||||||||||||
Less: accumulated depreciation and amortization | 157,478 | 178,001 | |||||||||||||||||||||
$ | 327,885 | $ | 288,182 |
December 31, 2022 | December 31, 2021 | ||||||||||
Right-of-use assets: | |||||||||||
Operating leases | $ | 126,767 | $ | 92,819 | |||||||
Finance leases | 1,318 | 1,544 | |||||||||
Total right-of-use assets | $ | 128,085 | $ | 94,363 | |||||||
Lease liabilities: | |||||||||||
Operating leases | $ | 133,108 | $ | 97,925 | |||||||
Finance leases | 2,458 | 2,739 | |||||||||
Total lease liabilities | $ | 135,566 | $ | 100,664 |
For the years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Operating lease cost | $ | 18,292 | $ | 15,696 | $ | 13,963 | |||||||||||
Short-term lease cost | 401 | 297 | 354 | ||||||||||||||
Finance lease cost: | |||||||||||||||||
Interest on lease liabilities | 189 | 208 | 227 | ||||||||||||||
Amortization of right-of-use asset | 226 | 226 | 226 | ||||||||||||||
Sublease income | (1,357) | (1,309) | (1,324) | ||||||||||||||
Net lease cost | $ | 17,751 | $ | 15,118 | $ | 13,446 |
December 31, 2022 | December 31, 2021 | ||||||||||
Weighted average remaining lease term | |||||||||||
Operating leases | 10.44 years | 10.00 years | |||||||||
Finance leases | 5.84 years | 6.84 years | |||||||||
Weighted average discount rate | |||||||||||
Operating leases | 3.11 | % | 2.71 | % | |||||||
Finance leases | 7.22 | % | 7.22 | % |
For the years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Operating cash flows related to operating leases | $ | 16,956 | $ | 14,712 | $ | 13,494 | |||||||||||
Operating cash flows related to finance leases | $ | 189 | $ | 208 | $ | 227 | |||||||||||
Financing cash flows related to finance leases | $ | 281 | $ | 261 | $ | 243 |
Operating Leases | Finance Leases | ||||||||||
2023 | $ | 18,975 | $ | 480 | |||||||
2024 | 19,365 | 527 | |||||||||
2025 | 16,944 | 527 | |||||||||
2026 | 14,463 | 527 | |||||||||
2027 | 13,272 | 527 | |||||||||
Thereafter | 75,939 | 440 | |||||||||
Total undiscounted lease payments | 158,958 | 3,028 | |||||||||
Less: imputed interest | (25,850) | (570) | |||||||||
Net lease liabilities | $ | 133,108 | $ | 2,458 |
2023 | $ | 2,730,929 | |||
2024 | 617,312 | ||||
2025 | 99,814 | ||||
2026 | 26,551 | ||||
2027 | 14,645 | ||||
Thereafter | 104 | ||||
$ | 3,489,355 |
Scheduled maturities | Weighted average interest rates(1) | ||||||||||
2023 | $ | — | — | % | |||||||
2024 | — | — | % | ||||||||
2025 | 116,250 | 4.85 | % | ||||||||
2026 | — | — | % | ||||||||
2027 | — | — | % | ||||||||
Thereafter | 350,012 | 2.36 | % | ||||||||
466,262 | |||||||||||
Deferred costs | (1,826) | ||||||||||
Total Federal Home Loan Bank advances | $ | 464,436 | |||||||||
Weighted average interest rate | 2.98 | % |
Name | Date Established | Maturity | Total Debt Outstanding | Interest Rate at December 31, 2022 | Coupon Structure | ||||||||||||
Trust preferred securities | |||||||||||||||||
Pinnacle Statutory Trust I | December 29, 2003 | December 30, 2033 | $ | 10,310 | 7.54 | % | 3-month LIBOR + 2.80% | ||||||||||
Pinnacle Statutory Trust II | September 15, 2005 | September 30, 2035 | 20,619 | 6.13 | % | 3-month LIBOR + 1.40% | |||||||||||
Pinnacle Statutory Trust III | September 07, 2006 | September 30, 2036 | 20,619 | 6.40 | % | 3-month LIBOR + 1.65% | |||||||||||
Pinnacle Statutory Trust IV | October 31, 2007 | September 30, 2037 | 30,928 | 7.62 | % | 3-month LIBOR + 2.85% | |||||||||||
BNC Capital Trust I | April 03, 2003 | April 15, 2033 | 5,155 | 7.33 | % | 3-month LIBOR + 3.25% | |||||||||||
BNC Capital Trust II | March 11, 2004 | April 07, 2034 | 6,186 | 6.93 | % | 3-month LIBOR + 2.85% | |||||||||||
BNC Capital Trust III | September 23, 2004 | September 23, 2034 | 5,155 | 6.48 | % | 3-month LIBOR + 2.40% | |||||||||||
BNC Capital Trust IV | September 27, 2006 | December 31, 2036 | 7,217 | 6.43 | % | 3-month LIBOR + 1.70% | |||||||||||
Valley Financial Trust I | June 26, 2003 | June 26, 2033 | 4,124 | 7.82 | % | 3-month LIBOR + 3.10% | |||||||||||
Valley Financial Trust II | September 26, 2005 | December 15, 2035 | 7,217 | 6.26 | % | 3-month LIBOR + 1.49% | |||||||||||
Valley Financial Trust III | December 15, 2006 | January 30, 2037 | 5,155 | 6.14 | % | 3-month LIBOR + 1.73% | |||||||||||
Southcoast Capital Trust III | August 05, 2005 | September 30, 2035 | 10,310 | 6.23 | % | 3-month LIBOR + 1.50% | |||||||||||
Subordinated Debt | |||||||||||||||||
Pinnacle Financial Subordinated Notes | September 11, 2019 | September 15, 2029 | 300,000 | 4.13 | % | Fixed (1) | |||||||||||
Debt issuance costs and fair value adjustment | (8,940) | ||||||||||||||||
Total subordinated debt and other borrowings | $ | 424,055 |
2022 | 2021 | 2020 | |||||||||||||||
Current tax expense : | |||||||||||||||||
Federal | $ | 104,141 | $ | 125,016 | $ | 98,082 | |||||||||||
State | 12,870 | 11,798 | 19,270 | ||||||||||||||
Total current tax expense | 117,011 | 136,814 | 117,352 | ||||||||||||||
Deferred tax expense (benefit): | |||||||||||||||||
Federal | 15,082 | (12,149) | (45,450) | ||||||||||||||
State | 4,658 | (83) | (12,865) | ||||||||||||||
Total deferred tax (benefit) expense | 19,740 | (12,232) | (58,315) | ||||||||||||||
Total income tax expense | $ | 136,751 | $ | 124,582 | $ | 59,037 |
2022 | 2021 | 2020 | |||||||||||||||
Income tax expense at statutory rate | $ | 146,474 | $ | 136,900 | $ | 77,985 | |||||||||||
State excise tax expense, net of federal tax effect | 13,847 | 9,255 | 5,059 | ||||||||||||||
Non-deductible executive compensation | 5,481 | 2,149 | 1,297 | ||||||||||||||
Tax-exempt securities | (18,730) | (15,243) | (13,706) | ||||||||||||||
Federal tax credits | (5,019) | (4,712) | (3,717) | ||||||||||||||
Bank owned life insurance | (4,599) | (4,413) | (4,759) | ||||||||||||||
Insurance premiums | (36) | (273) | (272) | ||||||||||||||
Excess tax benefits associated with equity compensation | (3,027) | (2,475) | (417) | ||||||||||||||
Other items | 2,360 | 3,394 | (2,433) | ||||||||||||||
Income tax expense | $ | 136,751 | $ | 124,582 | $ | 59,037 |
2022 | 2021 | ||||||||||
Deferred tax assets: | |||||||||||
Allowance for credit losses | $ | 77,015 | $ | 66,785 | |||||||
Loans | 10,576 | 14,778 | |||||||||
Insurance | 817 | 759 | |||||||||
Accrued liability for supplemental retirement agreements | 7,595 | 7,612 | |||||||||
Restricted stock and stock options | 7,795 | 9,148 | |||||||||
Securities | 67,286 | — | |||||||||
Lease liability | 35,589 | 26,476 | |||||||||
Other real estate owned | 1,526 | 1,540 | |||||||||
Net federal operating loss carryforward and credits | 1,168 | 1,271 | |||||||||
Annual incentive compensation | 21,322 | 23,095 | |||||||||
Partnership interests | 31,559 | 27,653 | |||||||||
Allowance for off balance sheet credit exposures | 6,527 | 5,873 | |||||||||
Tax credit investments | 8,282 | — | |||||||||
Other deferred tax assets | 3,267 | 1,941 | |||||||||
Total deferred tax assets | 280,324 | 186,931 | |||||||||
2022 | 2021 | ||||||||||
Deferred tax liabilities: | |||||||||||
Depreciation and amortization | 17,723 | 14,520 | |||||||||
Core deposit and other intangible assets | 9,070 | 8,787 | |||||||||
Securities | — | 21,680 | |||||||||
Cash flow hedge | 6,854 | 9,890 | |||||||||
REIT dividends | 2,338 | 1,222 | |||||||||
FHLB related liabilities | 328 | 1,600 | |||||||||
Equity method investment | 76 | 23 | |||||||||
Right-of-use assets and other leasing transactions | 33,157 | 24,315 | |||||||||
Leases | 35,547 | — | |||||||||
Subordinated debt | 1,662 | 1,791 | |||||||||
Other deferred tax liabilities | 2,054 | 1,831 | |||||||||
Total deferred tax liabilities | 108,809 | 85,659 | |||||||||
Net deferred tax assets | $ | 171,515 | $ | 101,272 |
2022 | 2021 | 2020 | |||||||||||||||
Balance at January 1, | $ | 12,737 | $ | 9,658 | $ | 6,910 | |||||||||||
Increases due to tax positions taken during the current year | 3,721 | 3,647 | 2,748 | ||||||||||||||
Increases due to tax positions taken during a prior year | — | — | — | ||||||||||||||
Decreases due to the lapse of the statute of limitations during the current year | (706) | (568) | — | ||||||||||||||
Decreases due to settlements with the taxing authorities during the current year | — | — | — | ||||||||||||||
Balance at December 31, | $ | 15,752 | $ | 12,737 | $ | 9,658 |
Number | Weighted-Average Exercise Price | Weighted-Average Contractual Remaining Term (in years) | Aggregate Intrinsic Value (1) (000's) | ||||||||||||||||||||
Outstanding at December 31, 2019 | 119,274 | $ | 23.45 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Stock options exercised | (17,505) | 23.40 | |||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||
Outstanding at December 31, 2020 | 101,769 | $ | 23.46 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Stock options exercised | (45,125) | 22.18 | |||||||||||||||||||||
Forfeited | (497) | 20.00 | |||||||||||||||||||||
Outstanding at December 31, 2021 | 56,147 | $ | 24.51 | ||||||||||||||||||||
Granted | — | — | |||||||||||||||||||||
Stock options exercised | (15,959) | 23.28 | |||||||||||||||||||||
Forfeited | — | — | |||||||||||||||||||||
Outstanding at December 31, 2022 | 40,188 | $ | 25.00 | 0.33 | $ | 1,945 | |||||||||||||||||
Options exercisable at December 31, 2022 | 40,188 | $ | 25.00 | 0.33 | $ | 1,945 |
Number | Grant Date Weighted-Average Cost | ||||||||||
Unvested at December 31, 2019 | 555,296 | $ | 57.04 | ||||||||
Shares awarded | 284,904 | 55.91 | |||||||||
Restrictions lapsed and shares released to associates/directors | (215,846) | 55.39 | |||||||||
Shares forfeited | (29,685) | 59.64 | |||||||||
Unvested at December 31, 2020 | 594,669 | $ | 56.97 | ||||||||
Shares awarded | 249,641 | 77.00 | |||||||||
Restrictions lapsed and shares released to associates/directors | (193,846) | 56.47 | |||||||||
Shares forfeited | (37,129) | 62.79 | |||||||||
Unvested at December 31, 2021 | 613,335 | $ | 64.93 | ||||||||
Shares awarded | 286,445 | 98.06 | |||||||||
Restrictions lapsed and shares released to associates/directors | (188,394) | 64.53 | |||||||||
Shares forfeited | (35,775) | 75.35 | |||||||||
Unvested at December 31, 2022 | 675,611 | $ | 78.53 |
Grant year | Group (1) | Vesting period in years | Shares awarded | Restrictions lapsed and shares released to participants | Shares withheld for taxes by participants | Shares forfeited by participants (4) | Shares unvested | |||||||||||||||||||||||||||||||||||||||||||
Time Based Awards | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | Associates (2) | 3 | — | 5 | 266,379 | 74,888 | 30,556 | 25,770 | 135,165 | |||||||||||||||||||||||||||||||||||||||||
2021 | Associates (2) | 3 | — | 5 | 237,811 | 31,372 | 12,388 | 24,977 | 169,074 | |||||||||||||||||||||||||||||||||||||||||
2022 | Associates (2) | 3 | — | 5 | 276,965 | 75 | 66 | 8,866 | 267,958 | |||||||||||||||||||||||||||||||||||||||||
Outside Director Awards (3) | ||||||||||||||||||||||||||||||||||||||||||||||||||
2020 | Outside directors | 1 | 18,525 | 16,327 | 2,198 | — | — | |||||||||||||||||||||||||||||||||||||||||||
2021 | Outside directors | 1 | 11,830 | 10,222 | 1,608 | — | — | |||||||||||||||||||||||||||||||||||||||||||
2022 | Outside directors | 1 | 9,480 | — | — | — | 9,480 |
Number | Grant Date Weighted-Average Cost | ||||||||||
Unvested at December 31, 2021 | 56,368 | $ | 71.22 | ||||||||
Restricted stock units awarded | 38,133 | 104.80 | |||||||||
Restrictions lapsed and underlying shares released to associates/directors | (18,897) | 71.24 | |||||||||
Restricted stock units forfeited | (1,621) | 85.50 | |||||||||
Unvested at December 31, 2022 | 73,983 | $ | 88.21 |
Grant year | Vesting period in years | Shares awarded | Restrictions lapsed and shares released to participants | Shares withheld for taxes by participants | Shares forfeited by participants (1) | Shares unvested | ||||||||||||||
2021 | 3 | 56,864 | 12,534 | 6,476 | 1,486 | 36,368 | ||||||||||||||
2022 | 3 | 38,133 | 11 | 4 | 503 | 37,615 |
Units Awarded | Applicable performance periods associated with each tranche (fiscal year) | Service period per tranche (in years) | Subsequent holding period per tranche (in years) | Period in which units to be settled into shares of common stock (2) | |||||||||||||||||||||||||
Grant year | Named Executive Officers (NEOs) (1) | Leadership Team other than NEOs | |||||||||||||||||||||||||||
2022 | 56,465 | — | 135,514 | 32,320 | 2022-2024 | 0 | 0 | 2025 | |||||||||||||||||||||
2022 | — | — | 230,000 | — | 2022-2024 | 0 | 1 | 2026 | |||||||||||||||||||||
2021 | 89,234 | — | 214,155 | 45,240 | 2021-2023 | 0 | 0 | 2024 | |||||||||||||||||||||
2020 | 136,137 | — | 204,220 | 59,648 | 2020 | 2 | 3 | 2025 | |||||||||||||||||||||
2021 | 2 | 2 | 2025 | ||||||||||||||||||||||||||
2022 | 2 | 1 | 2025 | ||||||||||||||||||||||||||
2019 | 166,211 | — | 249,343 | 52,244 | 2019 | 2 | 3 | 2024 | |||||||||||||||||||||
2020 | 2 | 2 | 2024 | ||||||||||||||||||||||||||
2021 | 2 | 1 | 2024 | ||||||||||||||||||||||||||
2018 | 96,878 | — | 145,339 | 25,990 | 2018 | 2 | 3 | 2023 | |||||||||||||||||||||
2019 | 2 | 2 | 2023 | ||||||||||||||||||||||||||
2020 | 2 | 1 | 2023 |
2022 | 2021 | 2020 | |||||||||||||||
Restricted stock expense | $ | 39,552 | $ | 24,952 | $ | 18,737 | |||||||||||
Income tax benefit (1) | 10,339 | 6,522 | 4,898 | ||||||||||||||
Restricted stock expense, net of income tax benefit | $ | 29,213 | $ | 18,430 | $ | 13,839 |
December 31, 2022 | December 31, 2021 | ||||||||||||||||||||||
Notional Amount | Estimated Fair Value (1) | Notional Amount | Estimated Fair Value | ||||||||||||||||||||
Interest rate swap agreements: | |||||||||||||||||||||||
Assets | $ | 1,620,520 | $ | 39,763 | $ | 1,540,992 | $ | 39,770 | |||||||||||||||
Liabilities | 1,620,520 | (96,483) | 1,540,992 | (40,241) | |||||||||||||||||||
Total non-hedging derivatives | $ | 3,241,040 | $ | (56,720) | $ | 3,081,984 | $ | (471) |
Amount of Gain (Loss) Recognized in Income | |||||||||||||||||||||||
Location of Gain (Loss) Recognized in Income | Year ended December 31, | ||||||||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||||||||
Interest rate swap agreements | Other noninterest income | $ | 53 | $ | 846 | $ | (1,109) |
December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Weighted Average Remaining Maturity (In Years) | Receive Rate | Pay Rate | Notional Amount | Estimated Fair Value | Notional Amount | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate floor - loans | 4.84 | 4.00%-4.50% minus USD-Term SOFR 1M | N/A | $ | 875,000 | $ | 48,622 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
Interest rate collar - loans | 4.84 | 4.25%-4.75% minus USD-Term SOFR 1M | USD-Term SOFR 1M minus 6.75%-7.00% | $ | 875,000 | $ | 45,553 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||
$ | 1,750,000 | $ | 94,175 | $ | — | $ | — | |||||||||||||||||||||||||||||||||||||||||||
Amount of Gain (Loss) Recognized in Other Comprehensive Income | |||||||||||||||||
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Asset derivatives | |||||||||||||||||
Interest rate floor - loans | $ | 1,002 | $ | (15,034) | $ | 62,979 | |||||||||||
Liability derivatives | |||||||||||||||||
Interest rate swaps - borrowings | $ | — | $ | — | $ | 2,447 | |||||||||||
$ | 1,002 | $ | (15,034) | $ | 65,426 |
December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||||||||||||||||||||
Balance Sheet Location | Weighted Average Remaining Maturity (In Years) | Weighted Average Pay Rate | Receive Rate | Notional Amount | Estimated Fair Value (1) | Notional Amount | Estimated Fair Value | |||||||||||||||||||||||||||||||||||||||||||
Asset derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap agreements - securities | 7.43 | 2.25% | 3 month LIBOR/Federal funds/SOFR | $ | 1,420,724 | $ | 56,056 | $ | 559,820 | $ | 15,109 | |||||||||||||||||||||||||||||||||||||||
Liability derivatives | ||||||||||||||||||||||||||||||||||||||||||||||||||
Interest rate swap agreements - securities | 0.00 | —% | N/A | — | — | 471,670 | (39,781) | |||||||||||||||||||||||||||||||||||||||||||
Total fair value derivatives | $ | 1,420,724 | $ | 56,056 | $ | 1,031,490 | $ | (24,672) |
Location of Gain (Loss) | Amount of Gain (Loss) Recognized in Income | ||||||||||||||||||||||
Year ended December 31, | |||||||||||||||||||||||
Securities | 2022 | 2021 | 2020 | ||||||||||||||||||||
Interest rate swap agreements | Interest income on securities | $ | 80,728 | $ | 42,642 | $ | (26,536) | ||||||||||||||||
Securities available-for-sale | Interest income on securities | $ | (80,728) | $ | (42,642) | $ | 26,536 |
Carrying Amount of the Hedged Assets | Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Assets | ||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | December 31, 2022 | December 31, 2021 | ||||||||||||||||||||
Line item on the balance sheet | |||||||||||||||||||||||
Securities available-for-sale | $ | 1,445,511 | $ | 1,165,773 | $ | (56,056) | $ | 24,672 |
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) | ||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. treasury securities | $ | 194,184 | $ | — | $ | 194,184 | $ | — | |||||||||||||||
U.S. government agency securities | 396,157 | — | 396,157 | — | |||||||||||||||||||
Mortgage-backed securities | 971,576 | — | 971,576 | — | |||||||||||||||||||
State and municipal securities | 1,412,306 | — | 1,411,677 | 629 | |||||||||||||||||||
Asset-backed securities | 117,403 | — | 117,403 | — | |||||||||||||||||||
Corporate notes and other | 467,244 | — | 467,244 | — | |||||||||||||||||||
Total investment securities available-for-sale | 3,558,870 | — | 3,558,241 | 629 | |||||||||||||||||||
Other investments | 153,011 | — | 22,029 | 130,982 | |||||||||||||||||||
Other assets | 190,629 | — | 190,629 | — | |||||||||||||||||||
Total assets at fair value | $ | 3,902,510 | $ | — | $ | 3,770,899 | $ | 131,611 | |||||||||||||||
Other liabilities | $ | 96,483 | $ | — | $ | 96,483 | $ | — | |||||||||||||||
Total liabilities at fair value | $ | 96,483 | $ | — | $ | 96,483 | $ | — | |||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Investment securities available-for-sale: | |||||||||||||||||||||||
U.S. treasury securities | $ | 193,609 | $ | — | $ | 193,609 | $ | — | |||||||||||||||
U.S. government agency securities | 632,009 | — | 632,009 | — | |||||||||||||||||||
Mortgage-backed securities | 1,920,239 | — | 1,920,239 | — | |||||||||||||||||||
State and municipal securities | 1,823,837 | — | 1,823,009 | 828 | |||||||||||||||||||
Asset-backed securities | 229,569 | — | 229,569 | — | |||||||||||||||||||
Corporate notes and other | 114,931 | — | 114,931 | — | |||||||||||||||||||
Total investment securities available-for-sale | 4,914,194 | — | 4,913,366 | 828 | |||||||||||||||||||
Other investments | 125,969 | — | 24,973 | 100,996 | |||||||||||||||||||
Other assets | 57,441 | — | 57,441 | — | |||||||||||||||||||
Total assets at fair value | $ | 5,097,604 | $ | — | $ | 4,995,780 | $ | 101,824 | |||||||||||||||
Other liabilities | $ | 80,106 | $ | — | $ | 80,106 | $ | — | |||||||||||||||
Total liabilities at fair value | $ | 80,106 | $ | — | $ | 80,106 | $ | — |
December 31, 2022 | 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) | |||||||||||||||||||
Other real estate owned | $ | 7,952 | $ | — | $ | — | $ | 7,952 | |||||||||||||||
Collateral dependent loans (1) | 33,767 | — | — | 33,767 | |||||||||||||||||||
Total | $ | 41,719 | $ | — | $ | — | $ | 41,719 | |||||||||||||||
December 31, 2021 | |||||||||||||||||||||||
Other real estate owned | $ | 8,537 | $ | — | $ | — | $ | 8,537 | |||||||||||||||
Collateral dependent loans (1) | 30,799 | — | — | 30,799 | |||||||||||||||||||
Total | $ | 39,336 | $ | — | $ | — | $ | 39,336 |
For the year ended December 31, | |||||||||||||||||||||||||||||||||||
2022 | 2021 | ||||||||||||||||||||||||||||||||||
Available-for-sale Securities | Other investments | Other liabilities | Available-for-sale Securities | Other investments | Other liabilities | ||||||||||||||||||||||||||||||
Fair value, Jan. 1 | $ | 828 | $ | 100,996 | $ | — | $ | 15,497 | $ | 47,759 | $ | — | |||||||||||||||||||||||
Total net realized gains included in income | 7 | 10,605 | — | 1,302 | 23,109 | — | |||||||||||||||||||||||||||||
Change in unrealized gains/losses included in other comprehensive income (loss) | (48) | — | — | (3,184) | — | — | |||||||||||||||||||||||||||||
Purchases | — | 33,208 | — | — | 45,986 | — | |||||||||||||||||||||||||||||
Issuances | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Settlements | (158) | (13,827) | — | (12,787) | (15,858) | — | |||||||||||||||||||||||||||||
Transfers out of Level 3 | — | — | — | — | — | — | |||||||||||||||||||||||||||||
Fair value, Dec. 31 | $ | 629 | $ | 130,982 | $ | — | $ | 828 | $ | 100,996 | $ | — | |||||||||||||||||||||||
Total realized gains included in income | $ | 7 | $ | 10,605 | $ | — | $ | 1,302 | $ | 23,109 | $ | — |
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) | |||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Securities purchased with agreement to resell | $ | 513,276 | $ | 440,390 | $ | — | $ | — | $ | 440,390 | |||||||||||||||||||
Securities held-to-maturity | 3,079,050 | 2,744,946 | — | 2,744,946 | — | ||||||||||||||||||||||||
Loans, net | 28,740,940 | 27,901,662 | — | — | 27,901,662 | ||||||||||||||||||||||||
Consumer loans held-for-sale | 42,237 | 42,353 | — | 42,353 | — | ||||||||||||||||||||||||
Commercial loans held-for-sale | 21,093 | 21,151 | — | 21,151 | — | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits and securities sold under agreements to repurchase | 35,156,148 | 34,435,447 | — | — | 34,435,447 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 464,436 | 477,673 | — | — | 477,673 | ||||||||||||||||||||||||
Subordinated debt and other borrowings | 424,055 | 430,884 | — | — | 430,884 | ||||||||||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||||||||||
Commitments to extend credit (2) | 16,224,349 | 26,780 | — | — | 26,780 | ||||||||||||||||||||||||
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) | |||||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||
Financial assets: | |||||||||||||||||||||||||||||
Securities purchased with agreement to resell | $ | 1,000,000 | $ | 980,543 | $ | — | $ | — | $ | 980,543 | |||||||||||||||||||
Securities held-to-maturity | 1,155,958 | 1,188,049 | — | 1,188,049 | — | ||||||||||||||||||||||||
Loans, net | 23,151,029 | 23,223,299 | — | — | 23,223,299 | ||||||||||||||||||||||||
Consumer loans held-for-sale | 45,806 | 46,288 | — | 46,288 | — | ||||||||||||||||||||||||
Commercial loans held-for-sale | 17,685 | 17,871 | — | 17,871 | — | ||||||||||||||||||||||||
Financial liabilities: | |||||||||||||||||||||||||||||
Deposits and securities sold under agreements to repurchase | 31,457,092 | 30,812,222 | — | — | 30,812,222 | ||||||||||||||||||||||||
Federal Home Loan Bank advances | 888,681 | 1,006,866 | — | — | 1,006,866 | ||||||||||||||||||||||||
Subordinated debt and other borrowings | 423,172 | 479,879 | — | — | 479,879 | ||||||||||||||||||||||||
Off-balance sheet instruments: | |||||||||||||||||||||||||||||
Commitments to extend credit (2) | 13,063,942 | 24,351 | — | — | 24,351 | ||||||||||||||||||||||||
December 31, 2022 | December 31, 2021 | |||||||||||||||||||||||||||||||
Type | Maximum Loss Exposure | Liability Recognized | Maximum Loss Exposure | Liability Recognized | Classification | |||||||||||||||||||||||||||
Low income housing partnerships | $ | 228,372 | $ | — | $ | 188,861 | $ | — | Other Assets | |||||||||||||||||||||||
Other tax credit investments | 6,118 | — | 739 | — | Other Assets | |||||||||||||||||||||||||||
Trust preferred issuances | N/A | 132,995 | N/A | 132,995 | Subordinated Debt | |||||||||||||||||||||||||||
Commercial TDRs | 110 | — | 145 | — | 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 | ||||||||||||||||||||||||||||||
December 31, 2022 | |||||||||||||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 4,584,292 | 12.4 | % | $ | 2,949,276 | 8.0 | % | $ | 3,686,595 | 10.0 | % | |||||||||||||||||||||||
Pinnacle Bank | $ | 4,282,742 | 11.6 | % | $ | 2,941,082 | 8.0 | % | $ | 3,676,353 | 10.0 | % | |||||||||||||||||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 3,888,100 | 10.5 | % | $ | 2,211,957 | 6.0 | % | $ | 2,949,276 | 8.0 | % | |||||||||||||||||||||||
Pinnacle Bank | $ | 4,015,550 | 10.9 | % | $ | 2,205,812 | 6.0 | % | $ | 2,941,082 | 8.0 | % | |||||||||||||||||||||||
Common equity Tier 1 capital: | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 3,670,851 | 10.0 | % | $ | 1,658,968 | 4.5 | % | N/A | N/A | |||||||||||||||||||||||||
Pinnacle Bank | $ | 4,015,427 | 10.9 | % | $ | 1,654,359 | 4.5 | % | $ | 2,389,629 | 6.5 | % | |||||||||||||||||||||||
Tier 1 capital to average assets (*): | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 3,888,100 | 9.7 | % | $ | 1,595,457 | 4.0 | % | N/A | N/A | |||||||||||||||||||||||||
Pinnacle Bank | $ | 4,015,550 | 10.1 | % | $ | 1,591,502 | 4.0 | % | $ | 1,989,378 | 5.0 | % | |||||||||||||||||||||||
December 31, 2021 | |||||||||||||||||||||||||||||||||||
Total capital to risk weighted assets: | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 4,060,598 | 13.8 | % | $ | 2,347,963 | 8.0 | % | $ | 2,934,953 | 10.0 | % | |||||||||||||||||||||||
Pinnacle Bank | $ | 3,670,111 | 12.6 | % | $ | 2,334,243 | 8.0 | % | $ | 2,917,804 | 10.0 | % | |||||||||||||||||||||||
Tier 1 capital to risk weighted assets: | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 3,425,751 | 11.7 | % | $ | 1,760,972 | 6.0 | % | $ | 2,347,963 | 8.0 | % | |||||||||||||||||||||||
Pinnacle Bank | $ | 3,464,265 | 11.9 | % | $ | 1,750,683 | 6.0 | % | $ | 2,334,243 | 8.0 | % | |||||||||||||||||||||||
Common equity Tier 1 capital: | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 3,208,503 | 10.9 | % | $ | 1,320,729 | 4.5 | % | N/A | N/A | |||||||||||||||||||||||||
Pinnacle Bank | $ | 3,464,142 | 11.9 | % | $ | 1,313,012 | 4.5 | % | $ | 1,896,573 | 6.5 | % | |||||||||||||||||||||||
Tier 1 capital to average assets (*): | |||||||||||||||||||||||||||||||||||
Pinnacle Financial | $ | 3,425,751 | 9.7 | % | $ | 1,412,747 | 4.0 | % | N/A | N/A | |||||||||||||||||||||||||
Pinnacle Bank | $ | 3,464,265 | 9.9 | % | $ | 1,406,063 | 4.0 | % | $ | 1,757,578 | 5.0 | % |
Years ended December 31, | |||||||||||||||||
2022 | 2021 | 2020 | |||||||||||||||
Other noninterest income: | |||||||||||||||||
Interchange and other consumer fees | $ | 68,022 | $ | 57,263 | $ | 40,960 | |||||||||||
Bank-owned life insurance | 21,033 | 18,942 | 18,784 | ||||||||||||||
Loan swap fees | 5,812 | 5,414 | 4,568 | ||||||||||||||
SBA loan sales | 7,036 | 12,242 | 5,579 | ||||||||||||||
Income from other equity investments | 10,605 | 23,109 | 1,072 | ||||||||||||||
Other noninterest income | 23,913 | 12,839 | 11,940 | ||||||||||||||
Total other noninterest income | $ | 136,421 | $ | 129,809 | $ | 82,903 |
Other noninterest expense: | |||||||||||||||||
Deposit related expenses | $ | 28,972 | $ | 24,003 | $ | 24,392 | |||||||||||
Lending related expenses | 52,700 | 39,578 | 28,703 | ||||||||||||||
Wealth management related expenses | 2,565 | 1,950 | 2,053 | ||||||||||||||
Audit, exam and insurance expense | 9,209 | 11,259 | 10,596 | ||||||||||||||
FHLB restructuring charges | — | — | 15,168 | ||||||||||||||
Administrative and other expenses | 27,375 | 23,169 | 23,725 | ||||||||||||||
Total other noninterest expense | $ | 120,821 | $ | 99,959 | $ | 104,637 |
2022 | 2021 | ||||||||||
Assets: | |||||||||||
Cash and cash equivalents | $ | 186,572 | $ | 184,654 | |||||||
Investments in bank subsidiaries | 5,626,844 | 5,329,003 | |||||||||
Investments in consolidated subsidiaries | 12,202 | 11,133 | |||||||||
Investment in unconsolidated subsidiaries: | |||||||||||
Statutory Trusts | 3,995 | 3,995 | |||||||||
Other investments | 56,957 | 156,292 | |||||||||
Current income tax receivable | 33,870 | 29,609 | |||||||||
Other assets | 57,980 | 24,930 | |||||||||
$ | 5,978,420 | $ | 5,739,616 | ||||||||
Liabilities and shareholders' equity: | |||||||||||
Subordinated debt and other borrowings | 424,055 | 423,172 | |||||||||
Other liabilities | 34,973 | 5,837 | |||||||||
Shareholders' equity | 5,519,392 | 5,310,607 | |||||||||
$ | 5,978,420 | $ | 5,739,616 |
2022 | 2021 | 2020 | |||||||||||||||
Revenues: | |||||||||||||||||
Income from bank subsidiaries | $ | 110,834 | $ | 99,766 | $ | 119,065 | |||||||||||
Income from nonbank subsidiaries | 145 | 89 | 119 | ||||||||||||||
Income from equity method investment | 33,817 | 33,169 | 22,587 | ||||||||||||||
Other income | 6,478 | 14,945 | 3,861 |
2022 | 2021 | 2020 | |||||||||||||||
Expenses: | |||||||||||||||||
Interest expense | 18,590 | 22,903 | 23,877 | ||||||||||||||
Personnel expense, including stock compensation | 39,552 | 24,952 | 18,737 | ||||||||||||||
Other expense | 3,025 | 2,697 | 2,905 | ||||||||||||||
Income before income taxes and equity in undistributed income of subsidiaries | 90,107 | 97,417 | 100,113 | ||||||||||||||
Income tax benefit | (8,444) | (3,088) | (5,370) | ||||||||||||||
Income before equity in undistributed income of subsidiaries | 98,551 | 100,505 | 105,483 | ||||||||||||||
Equity in undistributed income of bank subsidiaries | 461,004 | 424,978 | 205,327 | ||||||||||||||
Equity in undistributed income of nonbank subsidiaries | 1,187 | 1,840 | 1,511 | ||||||||||||||
Net income | $ | 560,742 | $ | 527,323 | $ | 312,321 | |||||||||||
Preferred stock dividends | 15,192 | 15,192 | 7,596 | ||||||||||||||
Net income available to common shareholders | $ | 545,550 | $ | 512,131 | $ | 304,725 |
2022 | 2021 | 2020 | |||||||||||||||
Operating activities: | |||||||||||||||||
Net income | $ | 560,742 | $ | 527,323 | $ | 312,321 | |||||||||||
Adjustments to reconcile net income to net cash provided by (used in) operating activities: | |||||||||||||||||
Amortization and accretion | 882 | 1,886 | 1,122 | ||||||||||||||
Stock-based compensation expense | 39,552 | 24,952 | 18,737 | ||||||||||||||
Increase (decrease) in income tax payable, net | 28,281 | — | (2,467) | ||||||||||||||
Deferred tax expense | 1,760 | 2,850 | 3,876 | ||||||||||||||
Income from equity method investments, net | (33,817) | (33,169) | (22,587) | ||||||||||||||
Dividends received from equity method investment | 10,365 | 12,214 | 9,251 | ||||||||||||||
Excess tax benefit from stock compensation | (3,027) | (2,475) | (417) | ||||||||||||||
Gain on other investments, net | (2,563) | (10,223) | (195) | ||||||||||||||
Decrease (increase) in other assets | (32,609) | 19,478 | (39,981) | ||||||||||||||
Increase (decrease) in other liabilities | 3,881 | 2,032 | (764) | ||||||||||||||
Equity in undistributed income of bank subsidiaries | (461,004) | (424,978) | (205,327) | ||||||||||||||
Equity in undistributed income of nonbank subsidiaries | (1,187) | (1,840) | (1,511) | ||||||||||||||
Net cash provided by operating activities | 111,256 | 118,050 | 72,058 | ||||||||||||||
Investing activities: | |||||||||||||||||
Investment in consolidated banking subsidiaries | — | — | — | ||||||||||||||
Increase in other investments | (15,776) | (11,668) | (2,454) | ||||||||||||||
Net cash used in investing activities | (15,776) | (11,668) | (2,454) | ||||||||||||||
Financing activities: | |||||||||||||||||
Proceeds from subordinated debt and other borrowings, net of issuance costs | — | — | (93) | ||||||||||||||
Repayment of subordinated debt and other borrowings | — | (120,000) | (80,000) | ||||||||||||||
Issuance of common stock pursuant to restricted stock unit agreement, net of shares withheld for taxes | (5,462) | (3,790) | (2,488) | ||||||||||||||
Exercise of common stock options, net of shares surrendered for taxes | (4,714) | (3,130) | (2,577) | ||||||||||||||
Issuance of preferred stock, net of issuance costs | — | — | 217,126 | ||||||||||||||
Repurchase of common stock | — | — | (50,790) | ||||||||||||||
Common dividends paid | (68,194) | (55,504) | (49,389) | ||||||||||||||
Preferred stock dividends paid | (15,192) | (15,192) | (7,596) | ||||||||||||||
Net cash provided by (used in) financing activities | (93,562) | (197,616) | 24,193 | ||||||||||||||
Net increase (decrease) in cash | 1,918 | (91,234) | 93,797 | ||||||||||||||
Cash and cash equivalents, beginning of year | 184,654 | 275,888 | 182,091 | ||||||||||||||
Cash and cash equivalents, end of year | $ | 186,572 | $ | 184,654 | $ | 275,888 |
(in thousands, except per share data) | First Quarter | Second Quarter | Third Quarter | Fourth Quarter | |||||||||||||||||||
2022 | |||||||||||||||||||||||
Interest income | $ | 258,617 | $ | 292,376 | $ | 371,764 | $ | 451,178 | |||||||||||||||
Net interest income | 239,475 | 264,574 | 305,784 | 319,460 | |||||||||||||||||||
Provision for credit losses | 2,720 | 12,907 | 27,493 | 24,805 | |||||||||||||||||||
Net income before taxes | 157,590 | 181,131 | 183,843 | 174,929 | |||||||||||||||||||
Net income | 129,110 | 145,127 | 148,658 | 137,847 | |||||||||||||||||||
Net income available to common shareholders | 125,312 | 141,329 | 144,860 | 134,049 | |||||||||||||||||||
Basic net income per common share | $ | 1.66 | $ | 1.87 | $ | 1.91 | $ | 1.77 | |||||||||||||||
Diluted net income per common share | $ | 1.65 | $ | 1.86 | $ | 1.91 | $ | 1.76 | |||||||||||||||
2021 | |||||||||||||||||||||||
Interest income | $ | 251,917 | $ | 259,236 | $ | 260,868 | $ | 259,193 | |||||||||||||||
Net interest income | 222,870 | 233,225 | 237,543 | 238,763 | |||||||||||||||||||
Provision for credit losses | 7,235 | 2,834 | 3,382 | 2,675 | |||||||||||||||||||
Net income before taxes | 153,648 | 162,458 | 169,405 | 166,394 | |||||||||||||||||||
Net income | 125,428 | 131,790 | 136,577 | 133,528 | |||||||||||||||||||
Net income available to common shareholders | 121,630 | 127,992 | 132,779 | 129,730 | |||||||||||||||||||
Basic net income per common share | $ | 1.61 | $ | 1.70 | $ | 1.76 | $ | 1.72 | |||||||||||||||
Diluted net income per common share | $ | 1.61 | $ | 1.69 | $ | 1.75 | $ | 1.71 | |||||||||||||||
2020 | |||||||||||||||||||||||
Interest income | $ | 263,069 | $ | 251,738 | $ | 249,188 | $ | 257,047 | |||||||||||||||
Net interest income | 193,552 | 200,657 | 206,594 | 220,985 | |||||||||||||||||||
Provision for credit losses | 105,045 | 72,832 | 16,758 | 9,180 | |||||||||||||||||||
Net income before taxes | 26,691 | 73,674 | 137,049 | 133,944 | |||||||||||||||||||
Net income | 28,356 | 62,444 | 110,645 | 110,876 | |||||||||||||||||||
Net income available to common shareholders | 28,356 | 62,444 | 106,847 | 107,078 | |||||||||||||||||||
Basic net income per common share | $ | 0.37 | $ | 0.83 | $ | 1.42 | $ | 1.42 | |||||||||||||||
Diluted net income per common share | $ | 0.37 | $ | 0.83 | $ | 1.42 | $ | 1.42 |
Plan Category | Number of Securities to be Issued upon Exercise of Outstanding Options, Warrants and Rights (1)(2) | Weighted Average Exercise Price of Outstanding Options, Warrants and Rights (1) | Number of Securities Remaining Available for Future Issuance Under Equity Compensation Plans (Excluding Securities Reflected in First Column) | ||||||||
Equity compensation plans approved by shareholders: | |||||||||||
Amended and Restated 2018 Omnibus Equity Incentive Plan | 1,489,344 | — | 1,387,284 | ||||||||
Equity compensation plans not approved by shareholders | N/A | N/A | N/A | ||||||||
Total | 1,489,344 | $ | — | 1,387,284 |
Exhibit No. | Description | |||||||
3.1 | ||||||||
3.2 | ||||||||
4.1.1 | ||||||||
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. | |||||||
4.2 | ||||||||
4.3 | ||||||||
4.4 | ||||||||
4.5 | ||||||||
4.6 | ||||||||
4.7 | Form of 4.125% Fixed-to-Floating Rate Subordinated Note due 2029 (included as Exhibit A in Exhibit 4.6 hereto). | |||||||
4.8 | ||||||||
4.9 | ||||||||
4.10 | Form of Depositary Receipt (included in Exhibit 4.8 hereto) | |||||||
4.11 | Pinnacle Financial is a party to certain agreements entered into in connection with the offering or assumption of its subordinated debentures and certain of its subordinated indebtedness, in each case as more fully described in this Annual Report on Form 10-K. In accordance with Item 601(b)(4)(iii) of Regulation S-K and because no issuance of any such indebtedness is in excess of 10% of Pinnacle Financial’s total assets, Pinnacle Financial has not filed the various documents and agreements associated with such indebtedness herewith. Pinnacle Financial has, however, agreed to furnish copies of the various documents and agreements associated with such indebtedness to the Securities and Exchange Commission upon request. | |||||||
10.1# | ||||||||
10.2# | ||||||||
10.3# | ||||||||
10.4# | ||||||||
10.5# |
10.6# | ||||||||
10.7# | ||||||||
10.8# | ||||||||
10.9# | ||||||||
10.10# | ||||||||
10.11# | ||||||||
10.12# | ||||||||
10.13# | ||||||||
10.14# | ||||||||
10.15# | ||||||||
10.16# | ||||||||
10.17# | ||||||||
10.18# | ||||||||
10.19# | ||||||||
10.20# | ||||||||
10.21# | ||||||||
10.22# | ||||||||
10.23# | ||||||||
10.24# |
PINNACLE FINANCIAL PARTNERS, INC | ||||||||
By: | /s/ M. Terry Turner | |||||||
M. Terry Turner | ||||||||
Date: February 28, 2023 | President and Chief Executive Officer |
SIGNATURES | TITLE | DATE | ||||||||||||
/s/ Robert A. McCabe, Jr. | Chairman of the Board | February 28, 2023 | ||||||||||||
Robert A. McCabe, Jr. | ||||||||||||||
/s/ M. Terry Turner | Director, President and Chief Executive Officer | February 28, 2023 | ||||||||||||
M. Terry Turner | (Principal Executive Officer) | |||||||||||||
/s/ Harold R. Carpenter | Chief Financial Officer | February 28, 2023 | ||||||||||||
Harold R. Carpenter | (Principal Financial and Accounting Officer) | |||||||||||||
/s/ Richard D. Callicutt | Director, Chairman of the Carolinas and Virginia | February 28, 2023 | ||||||||||||
Richard D. Callicutt | ||||||||||||||
/s/ Abney S. Boxley | Director | February 28, 2023 | ||||||||||||
Abney S. Boxley | ||||||||||||||
/s/ Charles E. Brock | Director | February 28, 2023 | ||||||||||||
Charles E. Brock | ||||||||||||||
/s/ Renda J. Burkhart | Director | February 28, 2023 | ||||||||||||
Renda J. Burkhart | ||||||||||||||
/s/ Gregory L. Burns | Director | February 28, 2023 | ||||||||||||
Gregory L. Burns | ||||||||||||||
/s/ Marty G. Dickens | Director | February 28, 2023 | ||||||||||||
Marty G. Dickens | ||||||||||||||
/s/ Thomas C. Farnsworth, III | Director | February 28, 2023 | ||||||||||||
Thomas C. Farnsworth, III | ||||||||||||||
/s/ Joseph Galante | Director | February 28, 2023 | ||||||||||||
Joseph Galante | ||||||||||||||
/s/ Glenda Baskin Glover | Director | February 28, 2023 | ||||||||||||
Glenda Baskin Glover | ||||||||||||||
/s/ David B. Ingram | Director | February 28, 2023 | ||||||||||||
David B. Ingram | ||||||||||||||
/s/ Decosta E. Jenkins | Director | February 28, 2023 | ||||||||||||
Decosta E. Jenkins | ||||||||||||||
/s/ Reese L. Smith, III | Director | February 28, 2023 | ||||||||||||
Reese L. Smith, III | ||||||||||||||
/s/ G. Kennedy Thompson | Director | February 28, 2023 | ||||||||||||
G. Kennedy Thompson |
• | no dividend or distribution shall be declared, paid, or set aside for payment on any junior stock (other than (i) a dividend payable solely in junior stock or (ii) a dividend in connection with the implementation of a shareholders’ rights plan, or the issuance of rights, stock, or other property under any such plan, or the redemption or repurchase of any rights under any such plan); | |||||||
• | no junior stock shall be repurchased, redeemed, or otherwise acquired for consideration by us, directly or indirectly (other than (i) as a result of a reclassification of junior stock for or into other junior stock, (ii) the exchange or conversion of shares of junior stock for or into other shares of junior stock, (iii) through the use of the proceeds of a substantially contemporaneous sale of other shares of junior stock, (iv) purchases, redemptions, or other acquisitions of shares of the junior stock in connection with any employment contract, benefit plan, or other similar arrangement with or for the benefit of employees, officers, directors, or consultants, (v) purchases of shares of junior stock pursuant to a contractually binding requirement to buy junior stock existing prior to the most recently completed dividend period, (vi) the purchase of fractional interests in shares of junior stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged or (vii) the acquisition by us or any of our subsidiaries of record ownership in junior stock for the beneficial ownership of any other persons (other than for the beneficial ownership by us or any of our subsidiaries), including as trustees or custodians; nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities; and | |||||||
• | no parity stock shall be repurchased, redeemed, or otherwise acquired for consideration by us, directly or indirectly (other than (i) pursuant to pro rata offers to purchase all, or a pro rata portion, of the Series B preferred stock and any parity stock, (ii) as a result of a reclassification of any parity stock for or into other parity stock, (iii) the exchange or conversion of any parity stock for or into other parity stock or junior stock, (iv) through the use of the proceeds of a substantially contemporaneous sale of other shares of parity stock, (v) purchases of shares of parity stock pursuant to a contractually binding requirement to buy parity stock existing prior to the most recently completed dividend period, (vi) the purchase of fractional interests in shares of parity stock pursuant to the conversion or exchange provisions of such stock or the security being converted or exchanged), or (vii) the acquisition by us or any of our subsidiaries of record ownership in parity stock for the beneficial ownership of any other persons (other than for the beneficial ownership by us or any of our subsidiaries), including as trustees or custodians; nor shall any monies be paid to or made available for a sinking fund for the redemption of any such securities. |
• | amendment to, clarification of, or change in, the laws, rules, or regulations of the United States or any political subdivision of or in the United States (including, for the avoidance of doubt, any agency or instrumentality of the United States, including the Federal Reserve and other appropriate federal bank regulatory agencies) that is enacted or becomes effective after the initial issuance of any share of the Series B preferred stock; | |||||||
• | proposed change in those laws, rules, or regulations that is announced or becomes effective after the initial issuance of any share of the Series B preferred stock; or | |||||||
• | official administrative decision or judicial decision or administrative action or other official pronouncement interpreting or applying those laws, rules, or regulations or policies with respect thereto that is announced or becomes effective after the initial issuance of any share of the Series B preferred stock; |
• | the redemption date; | |||||||
• | the number of shares of the Series B preferred stock to be redeemed and, if less than all of the shares held by such holder are to be redeemed, the number of such shares to be redeemed from such holder; | |||||||
• | the redemption price; | |||||||
• | the place or places where certificates for shares of the Series B preferred stock, if any, are to be surrendered for payment of the redemption price; and | |||||||
• | that dividends on the shares to be redeemed will cease to accrue on the redemption date. |
• | amend or alter the provisions of our restated charter so as to authorize or create, or increase the authorized amount of, any class or series of stock ranking senior to the Series B preferred stock with respect to payment of dividends or the distribution of assets upon liquidation, dissolution or winding-up of Pinnacle Financial; | |||||||
• | amend, alter or repeal the provisions of our restated charter so as to materially and adversely affect the special rights, preferences, privileges and voting powers of the Series B preferred stock, taken as a whole; or | |||||||
• | consummate a binding share exchange or reclassification involving the Series B preferred stock or a merger or consolidation of Pinnacle Financial with another corporation or other entity, unless in each case (i) the shares of Series B preferred stock remain outstanding or, in the case of any such merger or |
• | to cure any ambiguity, or to cure, correct or supplement any provision contained in the articles of amendment establishing the Series B preferred stock that may be defective or inconsistent; or | |||||||
• | to make any provision with respect to matters or questions arising with respect to the Series B preferred stock that is not inconsistent with the provisions of the articles of amendment establishing the Series B preferred stock. |
• | all outstanding depositary shares have been redeemed; | |||||||
• | a final distribution in respect of the Series B preferred stock has been made to the holders of depositary shares in connection with any liquidation, dissolution or winding-up of Pinnacle Financial; or | |||||||
• | consent of the holders of at least two-thirds of the depositary shares outstanding is obtained. |
Subsidiaries | Jurisdiction or State of Incorporation | Names Under Which Subsidiary Does Business (1) | ||||||
Pinnacle Bank (2) | Tennessee | |||||||
PFP Title Company (3) | Tennessee | |||||||
Pinnacle Community Development, Inc. (3) | Tennessee | |||||||
Pinnacle Community Development SLP, Inc. (3) | Tennessee | |||||||
PNFP Statutory Trust I (4) | Connecticut | |||||||
PNFP Statutory Trust II (4) | Delaware | |||||||
PNFP Statutory Trust III (4) | Delaware | |||||||
PNFP Statutory Trust IV (4) | Delaware | |||||||
PNFP Holdings, Inc. (5) | Nevada | |||||||
PNFP Properties, Inc. (6) | Maryland | |||||||
Pinnacle Wealth Advisors, Inc. (7) | Tennessee | |||||||
PNFP Insurance, Inc.(7) | Tennessee | |||||||
Miller, Loughry & Beach Insurance Services, Inc. | Tennessee | Miller Loughry Beach | ||||||
PNB Holding Co. 1, Inc. (3) | Tennessee | |||||||
PNFP Capital Markets, Inc. (3) | Tennessee | |||||||
PNFP Aviation, LLC (3) | Tennessee | |||||||
BNC Capital Trust I (4) | Delaware | |||||||
BNC Capital Trust II (4) | Delaware | |||||||
BNC Capital Trust III (4) | Delaware | |||||||
BNC Capital Trust IV (4) | Delaware | |||||||
Valley Financial (VA) Statutory Trust I (4) | Connecticut | |||||||
Valley Financial (VA) Statutory Trust II (4) | Connecticut | |||||||
Valley Financial Statutory Trust III (4) | Delaware | |||||||
Southcoast Capital Trust III (4) | Delaware | |||||||
BFNM Building, LLC | South Carolina | |||||||
HPB Insurance Group, Inc. (3) | North Carolina | |||||||
Pinnacle NC Investments, Inc. (3) | North Carolina | |||||||
Advocate Capital, Inc. (3) | Tennessee | |||||||
Advocap Insurance Agency, Inc. (8) | Tennessee | |||||||
JB&B Capital, LLC (3) | Tennessee | |||||||
February 28, 2023 | Signature: | /s/ M. Terry Turner | ||||||
M. Terry Turner | ||||||||
President and Chief Executive Officer | ||||||||
Pinnacle Financial Partners, Inc. |
February 28, 2023 | Signature: | /s/ Harold R. Carpenter | ||||||
Harold R. Carpenter | ||||||||
Chief Financial Officer | ||||||||
Pinnacle Financial Partners, Inc. |
February 28, 2023 | /s/ M. Terry Turner | |||||||
M. Terry Turner | ||||||||
President and Chief Executive Officer | ||||||||
Pinnacle Financial Partners, Inc. |
February 28, 2023 | /s/ Harold R. Carpenter | |||||||
Harold R. Carpenter | ||||||||
Chief Financial Officer | ||||||||
Pinnacle Financial Partners, Inc. |