Federal Home Loan Bank Advances

12 Months Ended

Dec. 31, 2016

Federal Home Loan Bank Advances [Abstract]

Note 10. Federal Home Loan Bank Advances

Pinnacle Bank is a member of the Federal Home Loan Bank of Cincinnati (FHLB) and as a result, is eligible for advances from the FHLB pursuant to the terms of various borrowing agreements, which assist Pinnacle Bank in the funding of its home mortgage and commercial real estate loan portfolios. Pinnacle Bank has pledged certain qualifying residential mortgage loans and, pursuant to a blanket lien, certain qualifying commercial mortgage loans with an aggregate carrying value of approximately $2.5 billion as collateral under the borrowing agreements with the FHLB.

At December 31, 2016 and 2015, Pinnacle Financial had received advances from the FHLB totaling $406.2 million and $300.3 million, respectively. Additionally, Pinnacle Financial recognized a discount of $167,000 on FHLB advances in conjunction with its acquisition of Avenue in July 2016. At December 31, 2016, the remaining discount was $92,000. At December 31, 2015, there was no discount recognized from previous acquisitions as the discount had been fully amortized. At December 31, 2016, the scheduled maturities of FHLB advances and interest rates are as follows (in thousands):

	Scheduled Maturities		Weighted average interest rates

2017	$	392,000		0.79	%
2018		14,003		1.29	%
2019		-		-
2020		182		2.25	%
2021		-		-
Thereafter		28		2.75	%
	$	406,213
Weighted average interest rate				0.81	%

At December 31, 2016, Pinnacle Bank had accommodations which allow it to borrow from the Federal Reserve Bank of Atlanta's discount window and purchase Federal funds from several of its correspondent banks on an overnight basis at prevailing overnight market rates. These accommodations are subject to various restrictions as to their term and availability, and in most cases, must be repaid within less than a month. At December 31, 2016, there was no balance owed to the Federal Reserve Bank or other correspondents under these agreements. At December 31, 2016, Pinnacle Bank had approximately $3.4 billion in borrowing availability with the FHLB, the Federal Reserve Bank discount window, and other correspondent banks with whom Pinnacle Bank has arranged lines of credit. At December 31, 2016, Pinnacle Bank was not carrying any balances with the Federal Reserve Bank discount window or correspondent banks under these arrangements.