Acquisitions and Intangibles

12 Months Ended

Dec. 31, 2012

Acquisitions and Intangibles [Abstract]

Acquisitions and Intangibles

Note 2.  Acquisitions and Intangibles

Acquisition – Mid-America Bancshares, Inc.  On November 30, 2007, we consummated a merger with Mid-America Bancshares, Inc. (Mid-America), a two-bank holding company located in Nashville, Tennessee. Pinnacle Financial recognized $9.4 million as a core deposit intangible.  This identified intangible is being amortized over ten years using an accelerated method which anticipates the life of the underlying deposits to which the intangible is attributable.  For the years ended December 31, 2012, 2011, and 2010 approximately $987,000, $1,026,000, and $1,062,000, respectively, was recognized in the accompanying consolidated statement of operations as amortization of intangibles.  Amortization expense associated with this identified intangible will approximate $700,000 to $1.2 million per year for the next five years.

Acquisition – Cavalry Bancorp, Inc.  On March 15, 2006, Pinnacle Financial consummated its merger with Cavalry, a one-bank holding company located in Murfreesboro, Tennessee. Pinnacle Financial recognized $13.2 million as a core deposit intangible.  This identified intangible is being amortized over seven years using an accelerated method which anticipates the life of the underlying deposits to which the intangible is attributable.  For the years ended December 31, 2012, 2011 and 2010, approximately $1.6 million, $1.7 million, and $1.8 million, respectively, was recognized in the accompanying consolidated statements of operations as amortization of intangibles.  Amortization expense associated with this identified intangible will approximate $273,000 during fiscal 2013.

Acquisition - Beach & Gentry. During the third quarter of 2008, Pinnacle Bank acquired Murfreesboro, Tennessee based Beach & Gentry Insurance LLC (Beach & Gentry).  Concurrently, Beach & Gentry merged with Miller & Loughry Insurance & Services Inc., a wholly-owned subsidiary of Pinnacle Bank, also located in Murfreesboro.  In connection with this acquisition, Pinnacle Financial recorded a customer list intangible of $1,270,000 which is being amortized over 20 years on an accelerated basis.  Amortization of this intangible amounted to $103,000, $109,000, and $115,000, respectively, during the years ended December 31, 2012, 2011 and 2010.