Leases Leases (Tables)

9 Months Ended

Sep. 30, 2019

Schedule of Lease Assets and Liabilities

Right-of-use assets and lease liabilities related to Pinnacle Financial's operating and finance leases are as follows at September 30, 2019 (in thousands):



	Balance Sheet Location	September 30, 2019
Right-of-use assets
Operating leases ⁽¹⁾	Other assets	$	74,151
Finance leases	Premises and equipment, net	2,044
Total right-of-use assets		$	76,195
Lease liabilities
Operating leases	Other liabilities	$	82,150
Finance leases	Other liabilities	3,302
Total lease liabilities		$	85,452

⁽¹⁾ Presented net of tenant improvement allowances of $1.7 million and purchase accounting fair value adjustments of $2.8 million.

Schedule of Lease Costs and Other Information

Lease costs during the three and nine months ended September 30, 2019 related to these leases were as follows (in thousands):



	Three Months Ended September 30, 2019			Nine Months Ended September 30, 2019
Operating lease cost	$	3,516		$	10,488
Short-term lease cost	43			137
Finance lease cost:
Interest on lease liabilities	60			183
Amortization of right-of-use asset	56			169
Sublease income	(562		)	(1,123		)
Net lease cost	$	3,113		$	9,854

Rent expense related to leases during the three and nine months ended September 30, 2018 was $3.1 million and $9.4 million, respectively.

Cash flows related to leases during the three and nine months ended September 30, 2019 were as follows (in thousands):

Lease liabilities are determined based on lease term discounted at an effective rate of interest. Certain lease agreements contain renewal options which are considered in the determination of the lease term if they are deemed reasonably certain to be exercised. Discount rates used to determine the present value of lease payments are based on secured borrowing rates as of the commencement date of the lease. The following table presents the weighted average remaining lease term and weighted average discount rate used to determine lease liabilities at September 30, 2019 (in thousands):



	September 30, 2019
Weighted average remaining lease term:
Operating leases	10.41 years
Finance leases	9.09 years
Weighted average discount rate:
Operating leases	3.28	%
Finance leases	7.22	%

Schedule of Future Minimum Operating Lease Payments

The following table presents a maturity analysis of undiscounted cash flows due under operating leases and finance leases and a reconciliation to total operating lease liabilities and finance lease liabilities at September 30, 2019 (in thousands):



	Operating Leases			Finance Leases
2019 ⁽¹⁾	$	3,403		$	118
2020	12,992			470
2021	12,383			470
2022	10,619			470
2023	9,768			479
Thereafter	50,329			2,548
	99,494			4,555
Less: Imputed interest	(17,344		)	(1,253		)
Total lease liabilities	$	82,150		$	3,302

⁽¹⁾Includes the period from October 1, 2019 through December 31, 2019.

At December 31, 2018, the future minimum lease payments due under operating leases and capital leases, and a reconciliation to total capital lease liabilities were as follows (in thousands):



	Operating Leases		Capital Leases
2019	$	12,889	$	470
2020	11,805		470
2021	11,527		470
2022	9,410		470
2023	8,820		479
Thereafter	43,730		2,548
Future minimum lease payments	$	98,181	4,907
Less: Imputed interest			(1,437		)
Total capital lease liabilities			$	3,470

Schedule of Future Minimum Finance Lease Payments



	Operating Leases			Finance Leases
2019 ⁽¹⁾	$	3,403		$	118
2020	12,992			470
2021	12,383			470
2022	10,619			470
2023	9,768			479
Thereafter	50,329			2,548
	99,494			4,555
Less: Imputed interest	(17,344		)	(1,253		)
Total lease liabilities	$	82,150		$	3,302

⁽¹⁾Includes the period from October 1, 2019 through December 31, 2019.

At December 31, 2018, the future minimum lease payments due under operating leases and capital leases, and a reconciliation to total capital lease liabilities were as follows (in thousands):



	Operating Leases		Capital Leases
2019	$	12,889	$	470
2020	11,805		470
2021	11,527		470
2022	9,410		470
2023	8,820		479
Thereafter	43,730		2,548
Future minimum lease payments	$	98,181	4,907
Less: Imputed interest			(1,437		)
Total capital lease liabilities			$	3,470

Three Months Ended
September 30, 2019

Nine Months Ended
September 30, 2019

Operating cash flows related to operating leases

Operating cash flows related to finance leases

Financing cash flows related to finance leases