Pinnacle Financial Partners Inc Case Study

Financial Statements The assessment of Pinnacle financial statements shows the company is a sound and emerging organization. After review, it was realized that Pinnacle’s numbers have improved overall since the previous year. This shows that Pinnacle is consistent and profitable. Looking specifically at the balance sheet, you can see the over improvement in total assets for the company:

The company’s total assets increased by about 2.5 million dollars in just one of year of operation. The Nature of Business footnote explains Pinnacle’s financial affiliations and what action the company took to make it to this point as a strong finance driven business. The footnote states, “Pinnacle Financial Partners, Inc. is a bank holding company whose

The Accounting Standards Codification (ASC) 350, Goodwill and Other, regarding testing goodwill for impairment provides an entity the option to first perform a qualitative assessment to determine whether it is more likely than not that the fair value of a reporting unit is less than its carrying amount. If an entity does a qualitative assessment and determines that this is the case, or if a qualitative assessment is not performed, it is required to perform additional goodwill impairment testing to identify potential goodwill impairment and measure the amount of goodwill impairment loss to be recognized for that reporting unit (if any). Based on a qualitative assessment, if an entity determines that the fair value of a reporting unit is more than its carrying amount, the two-step goodwill impairment test is not required. Pinnacle Financial performed its annual assessment as of September 30, 2016. The results of the qualitative assessment indicated that the fair value of Pinnacle Financial 's sole reporting unit was more than its carrying value, and accordingly, the two-step goodwill impairment test was not performed.” The statement shows that even with certain impairments, the company still has the ability to make significant

The policies that they follow, aside from the ones previously stated include both “use of estimates” and “basis of presentation”. Use of estimates deals with the requirement of management to make estimates and assumptions for the future reported amounts disclosed in the financial statements. The footnotes stated the following on use of estimates, “The preparation of financial statements in conformity with U.S. generally accepted accounting principles requires management to make estimates and assumptions that affect the reported amounts of assets and liabilities and disclosures of contingent assets and liabilities as of the balance sheet dates and the reported amounts of revenues and expenses during the reporting periods. Actual results could differ from those estimates. Material estimates that are particularly susceptible to significant change in the near term include the determination of the allowance for loan losses, determination of any impairment of intangible assets and the valuation of deferred tax assets.” Whereas, basis of presentation states that the company is required to file financial statements with the SEC to be presented in accordance with U.S. GAAP. The footnotes detailed the following on Pinnacle, “These consolidated financial statements include the accounts of Pinnacle Financial and its wholly- owned subsidiaries. PNFP Statutory Trust I, PNFP Statutory Trust II, PNFP Statutory