Parent Company Only Financial Information

12 Months Ended

Dec. 31, 2012

Parent Company Only Financial Information [Abstract]

Parent Company Only Financial Information

Note 22.  Parent Company Only Financial Information

The following information presents the condensed balance sheets, statements of operations, and cash flows of Pinnacle Financial as of December 31, 2012 and 2011 and for each of the years in the three-year period ended December 31, 2012:

CONDENSED BALANCE SHEETS

	2012		2011
Assets:
Cash and cash equivalents	$	13,657,278	$	36,496,508
Investments in consolidated subsidiaries		758,512,213		743,704,779
Investment in unconsolidated subsidiaries:
PNFP Statutory Trust I		310,000		310,000
PNFP Statutory Trust II		619,000		619,000
PNFP Statutory Trust III		619,000		619,000
PNFP Statutory Trust IV		928,000		928,000
Other investments		3,214,358		3,400,183
Current income tax receivable		472,869		478,134
Other assets		6,954,411		6,439,735
	$	785,287,129	$	792,995,339
Liabilities and stockholders' equity:
Income taxes payable to subsidiaries	$	-	$	309,118
Subordinated debt and other borrowings		106,158,292		82,476,000
Other liabilities		57,478		65,653
Stockholders' equity		679,071,359		710,144,568
	$	785,287,129	$	792,995,339

CONDENSED STATEMENTS OF OPERATIONS

	2012			2011			2010
Revenues	$	157,443		$	1,228,999		$	1,054,997
Expenses:
Interest expense – subordinated debentures		2,689,197			2,082,836			2,749,085
Stock-based compensation expense		3,664,494			4,435,739			3,981,013
Other expense		778,947			669,560			702,728
Loss before income taxes and equity in undistributed income (loss) of subsidiaries		(6,975,195	)		(5,959,136	)		(6,377,829	)
Income tax benefit		(2,736,020	)		(7,641,435	)		(2,125,035	)
(Loss) income before equity in undistributed income of subsidiaries and accretion on preferred stock discount		(4,239,175	)		1,682,299			(4,252,794	)
Equity in undistributed income (loss) of subsidiaries		46,123,056			42,055,068			(20,047,698	)
Net income (loss)		41,883,881			43,737,367			(24,300,492	)
Preferred stock dividends		1,660,868			4,606,493			4,815,972
Accretion on preferred stock discount		2,153,172			2,058,146			1,326,050
Net income (loss) available to common stockholders	$	38,069,841		$	37,072,728		$	(30,442,514	)

CONDENSED STATEMENTS OF CASH FLOWS

	2012			2011			2010
Operating activities:
Net income (loss)	$	41,883,881		$	43,737,367		$	(24,300,492	)
Adjustments to reconcile net income (loss) to net cash provided by (used in) operating activities:
Stock-based compensation expense		3,664,494			4,435,739			3,981,013
Loss (gain) on other investments		138,020			(313,562	)		(272,116	)
Increase (decrease) in income tax payable, net		169,016			(5,351,564	)		12,796,200
(Increase) decrease in other assets		(912,116	)		124,239			(2,408,735	)
Decrease in other liabilities		(8,176	)		(1,040	)		(19,339,542	)
Excess tax benefit from stock compensation		(36,071	)		(13,819	)		(16,776	)
Deferred tax (expense) benefit		(75,427	)		(636,040	)		842,292
Equity in undistributed (income) loss of subsidiaries		(46,123,056	)		(42,055,068	)		20,047,698
Net cash used in operating activities		(1,299,435	)		(73,748	)		(8,670,458	)
Investing activities:
Investment in consolidated subsidiaries:
Banking subsidiaries		27,210,000			-			(25,000,000	)
Other subsidiaries		-			-			(200,000	)
Investments in other entities		47,804			(393,304	)		(422,076	)
Net cash provided by (used in) investing activities		27,257,804			(393,304	)		(25,622,076	)
Financing activities:
Net increase in borrowings from line of credit		23,682,291			-			-
(Repurchase) exercise of common stock warrants		(755,000	)		-			285,000
Exercise of common stock options		1,616,643			1,447,362			3,037,064
Preferred dividends paid		(2,127,604	)		(4,891,840	)		(4,750,000	)
Excess tax benefit from stock compensation arrangements		36,071			13,819			16,776
Repurchase of preferred shares outstanding		(71,250,000	)		(23,750,000	)		-
Net cash used in financing activities		(48,797,599	)		(27,180,659	)		(1,411,160	)
Net decrease in cash		(22,839,230	)		(27,647,711	)		(35,703,694	)
Cash and cash equivalents, beginning of year		36,496,508			64,144,219			99,847,913
Cash and cash equivalents, end of year	$	13,657,278		$	36,496,508		$	64,144,219

Pinnacle Bank is subject to restrictions on the payment of dividends to Pinnacle Financial under Tennessee banking laws.  Pinnacle Bank paid dividends of $27,210,000 to Pinnacle Financial in 2012. Pinnacle Bank did not pay any dividends to Pinnacle Financial during the years ended December 31, 2011 and 2010.  Pinnacle Financial paid a $25.0 million dividend to Pinnacle Bank in 2010.