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Derivative Instruments (Tables)
 12 Months Ended
Dec. 31, 2015
Derivative Instruments [Abstract]  
Summary of Interest Rate Swaps
A summary of Pinnacle Financial's interest rate swaps to facilitate customer transactions as of December 31, 2015 and December 31, 2014  is included in the following table (in thousands):

  
At December 31, 2015
  
At December 31, 2014
 
  
Notional
Amount
  
Estimated Fair Value
  
Notional Amount
  
Estimated Fair Value
 
Interest rate swap agreements:
        
Pay fixed / receive variable swaps
 
$
396,112
  
$
16,130
  
$
251,321
  
$
13,030
 
Pay variable / receive fixed swaps
  
396,112
   
(16,329
)
  
251,321
   
(13,435
)
Total
 
$
792,224
  
$
(199
)
 
$
502,642
  
$
(405
)
Schedule of Derivative Instruments
Hedge derivatives

Pinnacle Financial has forward cash flow hedge relationships to manage future interest rate exposure. The hedging strategy converts the LIBOR based variable interest rate on forecasted borrowings to a fixed interest rate and protects Pinnacle Financial from floating interest rate variability.  The initial hedge relationships were entered into during the second quarter of 2013. During the third quarter of 2014, Pinnacle Financial terminated three individual contracts of the initial hedge relationships based on changes in internal forecasts for future interest rates. As a result of terminating these contracts, Pinnacle Financial began recognizing a gain of $64,000 over the original terms of these agreements. Pinnacle Financial entered into additional forward cash flow hedge relationships for interest rate risk management purposes given the aforementioned changes in forecasted interest rates. The terms of the individual contracts within the relationship are as follows (in thousands):

 
  
 
  
         
 
December 31, 2015
  
December 31, 2014
 
 
 
Forecasted
Notional
Amount
 
Receive Rate
 
Pay
Rate
 
Term(1)
 
Asset/
(Liabilities)
  
Unrealized Loss in Accumulated Other Comprehensive Income
  
Asset/ (Liabilities)
  
Unrealized Loss in Accumulated Other Comprehensive Income
 
Interest Rate Swap
  
33,000
 
3 month LIBOR
  
2.265
%
April 2016- April 2020
  
(784
)
  
(476
)
  
(96
)
  
(58
)
Interest Rate Swap
  
33,000
 
3 month LIBOR
  
2.646
%
April 2016- April 2022
  
(1,478
)
  
(898
)
  
(531
)
  
(323
)
Interest Rate Swap
  
33,000
 
3 month LIBOR
  
2.523
%
Oct. 2016- Oct. 2020
  
(908
)
  
(552
)
  
(210
)
  
(128
)
Interest Rate Swap
  
33,000
 
3 month LIBOR
  
2.992
%
Oct. 2017- Oct. 2021
  
(1,112
)
  
(676
)
  
(517
)
  
(314
)
Interest Rate Swap
  
34,000
 
3 month LIBOR
  
3.118
%
April 2018- July 2022
  
(1,170
)
  
(711
)
  
(590
)
  
(359
)
Interest Rate Swap
  
34,000
 
3 month LIBOR
  
3.158
%
July 2018- Oct. 2022
  
(1,158
)
  
(704
)
  
(602
)
  
(366
)
  
$
200,000
         
(6,610
)
  
(4,017
)
  
(2,546
)
  
(1,548
)
 
    
 
    
 
               
 
(1)
 
No cash will be exchanged prior to the beginning of the term.
 
 
Pinnacle Financial has seven interest rate swap agreements designated as cash flow hedges intended to protect against the variability of cash flows on selected LIBOR based loans. The swaps hedge the interest rate risk, wherein Pinnacle Financial receives a fixed rate of interest from a counterparty and pays a variable rate, based on one month LIBOR. The terms of the respective swaps range from three to ten years and started on various dates between July 2014 and August 2015. The swaps were entered into with a counterparty that met Pinnacle Financial's credit standards and the agreements contain collateral provisions protecting the at-risk party. Pinnacle Financial believes that the credit risk inherent in the contract is not significant.

 
    
 
         
 
December 31, 2015
  
December 31, 2014
 
 
 
Forecasted
Notional
Amount
  
Receive
Rate
 
Pay
Rate
Term(2)
 
Asset/
(Liabilities)
  
Unrealized Gain in Accumulated Other Comprehensive Income
  
Asset/ (Liabilities)
  
Unrealized Gain in Accumulated Other Comprehensive Income
 
Interest Rate Swap
 
$
27,500
   
2.090
%
1 month LIBOR
July 2014 - July 2021
  
663
   
403
   
941
   
572
 
Interest Rate Swap
  
25,000
   
2.270
%
1 month LIBOR
July 2014 - July 2022
  
968
   
588
   
409
   
249
 
Interest Rate Swap
  
27,500
   
2.420
%
1 month LIBOR
July 2014 - July 2023
  
1,320
   
802
   
651
   
396
 
Interest Rate Swap
  
30,000
   
2.500
%
1 month LIBOR
July 2014 - July 2024
  
1,333
   
810
   
956
   
581
 
Interest Rate Swap
  
15,000
   
1.048
%
1 month LIBOR
August 2015 - August 2018
  
(46
)
  
(28
)
  
-
   
-
 
Interest Rate Swap
  
15,000
   
1.281
%
1 month LIBOR
August 2015 - August 2019
  
(34
)
  
(21
)
  
-
   
-
 
Interest Rate Swap
  
15,000
   
1.470
%
1 month LIBOR
August 2015 - August 2020
  
(14
)
  
(9
)
  
-
   
-
 
 
 
$
155,000
     
 
 
  
4,190
   
2,545
   
2,957
   
1,798
 
 
The cash flow hedges were determined to be fully effective during the period presented. And therefore, no amount of ineffectiveness has been included in net income. The aggregate fair value of the swaps is recorded in other assets with changes in fair value recorded in accumulated other comprehensive (loss) income, net of tax. If a hedge was deemed to be ineffective, the amount included in accumulated other comprehensive (loss) income would be reclassified into a line item within the statement of income that impacts operating results. The hedge would no longer be considered effective if a portion of the hedge becomes ineffective, the item hedged is no longer in existence or Pinnacle Financial discontinues hedge accounting. Pinnacle Financial expects the hedges to remain fully effective during the remaining terms of the swaps.