Equity method investment

9 Months Ended

Sep. 30, 2020

Equity Method Investments and Joint Ventures [Abstract]

Note 2. Equity method investment

A summary of BHG's financial position as of September 30, 2020 and December 31, 2019 and results of operations as of and for the three and nine months ended September 30, 2020 and 2019, were as follows (in thousands):


	As of
	September 30, 2020		December 31, 2019
Assets	$	1,249,530	$	840,398

Liabilities	1,006,462		641,037
Equity interests	243,068		199,361
Total liabilities and equity	$	1,249,530	$	840,398


	For the three months ended September 30,				For the nine months ended September 30,
	2020		2019		2020		2019
Revenues	$	128,510	$	108,770	$	319,244	$	279,569
Net income	$	51,459	$	61,364	$	121,604	$	156,064

At September 30, 2020, technology, trade name and customer relationship intangibles, net of related amortization, totaled $7.9 million compared to $8.8 million as of December 31, 2019. Amortization expense of $293,000 and $880,000, respectively, was included for the three and nine months ended September 30, 2020 compared to $475,000 and $1.4 million, respectively, for the same periods in the prior year. Accretion income of $535,000 and $1.6 million, respectively, was included in the three and nine months ended September 30, 2020 compared to $630,000 and $2.0 million, respectively, for the same periods in the prior year.

During the three months and nine months ended September 30, 2020, Pinnacle Financial and Pinnacle Bank received dividends of $40.0 million and $48.0 million, respectively, from BHG in the aggregate. During the three and nine months ended September 30, 2019, Pinnacle Financial and Pinnacle Bank received dividends of $9.0 million and $49.9 million, respectively, in the aggregate. Earnings from BHG are included in Pinnacle Financial's consolidated tax return. Profits from intercompany transactions are eliminated. On September 21, 2020, Pinnacle Bank purchased $50.2 million of loans from BHG at par pursuant to BHG's joint venture loan program whereby BHG and Pinnacle share proportionately in the credit risk of the acquired loans based on the rate on the loan and the rate of the purchase. The yield on this portfolio to Pinnacle Bank is anticipated to be 5.0% per annum. No loans were purchased from BHG by Pinnacle Bank for the three and nine ended September 30, 2019.