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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2020
Receivables [Abstract]  
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class
The table below presents loan balances classified within each risk rating category by primary loan type and based on year of origination as of December 31, 2020 (in thousands):
December 31, 202020202019201820172016PriorRevolving LoansTotal
Commercial real estate- owner occupied
Pass$824,419 $437,755 $430,690 $311,132 $280,826 $257,717 $74,287 $2,616,826 
Special Mention38,687 23,641 22,521 13,335 5,089 4,762 9,638 117,673 
Substandard (1)
17,131 7,035 6,853 12,063 6,627 3,946 3,842 57,497 
Substandard-nonaccrual972 149 2,932 1,448 1,532 3,136 62 10,231 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$881,209 $468,580 $462,996 $337,978 $294,074 $269,561 $87,829 $2,802,227 
Commercial real estate- Non-owner occupied
Pass$1,210,032 $951,070 $728,348 $507,095 $482,642 $323,036 $73,706 $4,275,929 
Special Mention477,098 121,531 44,634 107,712 72,618 58,169 9,840 891,602 
Substandard (1)
15,039 1,666 3,140 3,551 4,929 2,309 — 30,634 
Substandard-nonaccrual763 423 586 137 749 2,561 — 5,219 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$1,702,932 $1,074,690 $776,708 $618,495 $560,938 $386,075 $83,546 $5,203,384 
Consumer real estate – mortgage
Pass$730,617 $477,965 $321,411 $163,457 $123,900 $296,408 $945,558 $3,059,316 
Special Mention1,206 65 970 67 — 946 8,739 11,993 
Substandard (1)
689 507 — 189 8 2,171 2,108 5,672 
Substandard-nonaccrual275 2,486 999 1,248 2,588 10,516 4,079 22,191 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$732,787 $481,023 $323,380 $164,961 $126,496 $310,041 $960,484 $3,099,172 
Construction and land development
Pass$1,199,902 $1,171,879 $363,247 $56,736 $19,198 $6,548 $18,233 $2,835,743 
Special Mention55,805 2,648 154 — 4,243 — — 62,850 
Substandard (1)
777 15 27 — 240 141 — 1,200 
Substandard-nonaccrual378 535 73 78 — 889 — 1,953 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,256,862 $1,175,077 $363,501 $56,814 $23,681 $7,578 $18,233 $2,901,746 
Commercial and industrial
Pass$3,572,453 $973,558 $601,865 $270,880 $116,736 $79,527 $2,141,512 $7,756,531 
Special Mention44,560 66,186 5,348 7,804 3,735 731 40,816 169,180 
Substandard (1)
26,463 15,283 12,796 2,816 524 2,071 18,555 78,508 
Substandard-nonaccrual19,127 5,350 488 1,084 186 79 7,924 34,238 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial and industrial$3,662,603 $1,060,377 $620,497 $282,584 $121,181 $82,408 $2,208,807 $8,038,457 
Consumer and other
Pass$165,029 $16,947 $6,515 $6,828 $3,690 $1,643 $178,859 $379,511 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — — — 4 — — 4 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$165,029 $16,947 $6,515 $6,828 $3,694 $1,643 $178,859 $379,515 
Total loans
Pass$7,702,452 $4,029,174 $2,452,076 $1,316,128 $1,026,992 $964,879 $3,432,155 $20,923,856 
Special Mention617,356 214,071 73,627 128,918 85,685 64,608 69,033 1,253,298 
Substandard (1)
60,099 24,506 22,816 18,619 12,328 10,638 24,505 173,511 
Substandard-nonaccrual21,515 8,943 5,078 3,995 5,059 17,181 12,065 73,836 
Doubtful-nonaccrual— — — — — — — — 
Total loans$8,401,422 $4,276,694 $2,553,597 $1,467,660 $1,130,064 $1,057,306 $3,537,758 $22,424,501 

The following table outlines the risk category of loans as of December 31, 2019 (in thousands):
December 31, 2019Commercial real estate - mortgageConsumer real estate - mortgageConstruction and land developmentCommercial and industrialConsumer
and other		Total
Pass$7,499,725 $3,019,203 $2,422,347 $6,069,757 $288,361 $19,299,393 
Special Mention51,147 13,787 2,816 79,819 698 148,267 
Substandard (1)
139,518 10,969 3,042 125,035 47 278,611 
Substandard-nonaccrual18,828 24,666 2,278 15,685 148 61,605 
Doubtful-nonaccrual— — — — — — 
Total loans$7,709,218 $3,068,625 $2,430,483 $6,290,296 $289,254 $19,787,876 
(1) Potential problem loans represent those loans with a well-defined weakness and where information about possible credit problems of borrowers has caused management to have doubts about the borrower's ability to comply with present repayment terms. This definition is believed to be substantially consistent with the standards established by Pinnacle Bank's primary regulators for loans classified as substandard, excluding TDRs. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $173.5 million at December 31, 2020, compared to $276.0 million at December 31, 2019
Summary of Recorded Investment, Unpaid Principal Balance and Related Allowance and Average Recorded Investment of Impaired Loans
The following tables presents the recorded investment, average recorded investment, and the amount of interest income recognized on a cash basis for impaired loans at December 31, 2019 and 2018, respectively, as determined under ASC 310 prior to the adoption of ASU 2016-13. Impaired loans generally include nonaccrual loans, TDRs, and other loans deemed to be impaired but that continue to accrue interest. Presented are the recorded investment, unpaid principal balance, and related allowance of impaired loans at December 31, 2019 and 2018, respectively, by loan classification (in thousands):
 December 31, 2019For the year ending
December 31, 2019
 Recorded investmentUnpaid principal balanceRelated allowance Average recorded investmentCash basis
interest income recognized
Impaired loans with an allowance:
Commercial real estate – mortgage$9,998 $10,983 $1,235 $13,750 $— 
Consumer real estate – mortgage20,996 23,105 1,292 20,909 — 
Construction and land development542 654 33 578 — 
Commercial and industrial4,074 5,381 711 8,871 — 
Consumer and other148 182 9 350 — 
Total$35,758 $40,305 $3,280 $44,458 $— 
Impaired loans without an allowance:
Commercial real estate – mortgage$8,124 $8,891 $— $11,642 $176 
Consumer real estate – mortgage4,022 4,021 — 7,509 — 
Construction and land development19 17 — 365 — 
Commercial and industrial10,221 11,322 — 12,945 — 
Consumer and other— — — — — 
Total$22,386 $24,251 $— $32,461 $176 
Total impaired loans$58,144 $64,556 $3,280 $76,919 $176 

 December 31, 2018For the year ended
December 31, 2018
 Recorded investmentUnpaid principal balanceRelated allowance Average recorded investmentCash basis
interest income recognized
Impaired loans with an allowance:     
Commercial real estate – mortgage$14,114 $14,124 $724 $10,260 $— 
Consumer real estate – mortgage19,864 19,991 1,443 13,154 — 
Construction and land development581 579 28 1,157 — 
Commercial and industrial9,252 9,215 1,441 9,326 — 
Consumer and other983 1,005 328 718 — 
Total$44,794 $44,914 $3,964 $34,615 $— 
Impaired loans without an allowance:     
Commercial real estate – mortgage$14,724 $14,739 $— $17,906 $469 
Consumer real estate – mortgage7,247 7,271 — 5,477 — 
Construction and land development1,786 1,786 — 1,463 — 
Commercial and industrial14,595 14,627 — 15,796 — 
Consumer and other— — — — — 
Total$38,352 $38,423 $— $40,642 $469 
Total impaired loans$83,146 $83,337 $3,964 $75,257 $469 
Amount of Troubled Debt Restructuring Categorized by Loan Classification
The following table outlines the amount of each TDR by loan classification made during the years ended December 31, 2020, 2019 and 2018 (dollars in thousands):
Number
of contracts		Pre Modification Outstanding Recorded InvestmentPost Modification Outstanding Recorded Investment, net of related allowance
December 31, 2020
Commercial real estate:
Owner-occupied— $— $— 
Non-owner occupied— — — 
Consumer real estate – mortgage1 807 807 
Construction and land development— — — 
Commercial and industrial— — — 
Consumer and other— — — 
 1 $807 $807 
December 31, 2019 
Commercial real estate:
Owner-occupied1 $306 $287 
Non-owner occupied— — — 
Consumer real estate – mortgage1 683 683 
Construction and land development1 19 19 
Commercial and industrial1 1,318 777 
Consumer and other— — — 
 4 $2,326 $1,766 
December 31, 2018 
Commercial real estate:
Owner-occupied— $— $— 
Non-owner occupied— — — 
Consumer real estate – mortgage3 1,967 1,967 
Construction and land development1 347 347 
Commercial and industrial— — — 
Consumer and other— — — 
 4 $2,314 $2,314 
During the years ended December 31, 2020, 2019 and 2018, Pinnacle Financial had no TDRs that subsequently defaulted within twelve months of the restructuring. A default is defined as an occurrence which violates the terms of the receivable's contract.

In response to the COVID-19 pandemic and its economic impact to its customers, Pinnacle Bank implemented a short-term modification program in accordance with interagency regulatory guidance to provide temporary payment relief to those borrowers directly impacted by COVID-19 who were not more than 30 days past due at the time of the modification. This program allowed for a deferral of payments for up to two successive 90 day periods for a cumulative maximum of 180 days. Pursuant to interagency guidance, such short-term deferrals are not deemed to meet the criteria for reporting as TDRs. For borrowers requiring a longer-term modification following the short-term loan modification program, Pinnacle Financial worked with these borrowers whose loans were not more than 30 days past due at December 31, 2019 and who required modifications as a result of COVID-19 to modify such loans under Section 4013 of the CARES Act. The outstanding balance at December 31, 2020 of loans which have received such modifications was approximately $825.6 million. In accordance with the provisions of the CARES Act, these modifications have not been classified as TDRs.
Summary of Loan Portfolio Credit Risk Exposure
Pinnacle Financial analyzes its commercial loan portfolio to determine if a concentration of credit risk exists to any industries.  Pinnacle Financial utilizes broadly accepted industry classification systems in order to classify borrowers into various industry classifications.  Pinnacle Financial had a credit exposure (loans outstanding plus unfunded lines of credit) exceeding 25% of Pinnacle Bank's total risk-based capital to borrowers in the following industries at December 31, 2020 with the comparative exposures for December 31, 2019 (in thousands):
 At December 31, 2020
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2019
Lessors of nonresidential buildings$3,558,320 $884,392 $4,442,712 $4,578,116 
Lessors of residential buildings1,340,937 785,309 2,126,246 1,599,837 
New housing for-sale builders474,932 649,370 1,124,302 1,090,603 
Hotels and motels949,712 89,547 1,039,259 967,771 
Total$6,323,901 $2,408,618 $8,732,519 $8,236,327 
Past Due Balances by Loan Classification
The table below presents the aging of past due balances by loan segment at December 31, 2020 and December 31, 2019 (in thousands):
December 31, 202030-59 days past due60-89 days past due90 days or more past dueTotal past dueCurrentTotal loans
Commercial real estate:
Owner-occupied$934 $2,672 $1,860 $5,466 $2,796,761 $2,802,227 
Non-owner occupied726 6,220 3,861 10,807 5,192,577 5,203,384 
Consumer real estate – mortgage8,859 328 6,274 15,461 3,083,711 3,099,172 
Construction and land development278 418 736 1,432 2,900,314 2,901,746 
Commercial and industrial20,278 5,801 4,408 30,487 8,007,970 8,038,457 
Consumer and other806 282 304 1,392 378,123 379,515 
Total$31,881 $15,721 $17,443 $65,045 $22,359,456 $22,424,501 
December 31, 2019
Commercial real estate:
Owner-occupied$2,307 $2,932 $1,719 $6,958 $2,662,808 $2,669,766 
Non-owner occupied3,156 3,641 3,816 10,613 5,028,839 5,039,452 
Consumer real estate – mortgage11,646 2,157 7,304 21,107 3,047,518 3,068,625 
Construction and land development1,392 711 1,487 3,590 2,426,893 2,430,483 
Commercial and industrial8,474 2,478 6,364 17,316 6,272,980 6,290,296 
Consumer and other1,770 414 570 2,754 286,500 289,254 
Total$28,745 $12,333 $21,260 $62,338 $19,725,538 $19,787,876 
Details of Changes in the Allowance for Loan Losses
The following table details the changes in the allowance for credit losses from December 31, 2017 to December 31, 2018 to December 31, 2019 to December 31, 2020 by loan classification and the allocation of allowance for credit losses (in thousands):
 Commercial real estate - owner occupiedCommercial real estate - non-owner occupiedConsumer real estate - mortgageConstruction and land developmentCommercial and industrialConsumer and otherUnallocatedTotal
Allowance for Credit Losses:       
Balance at December 31, 2017$8,992 $12,196 $5,031 $8,962 $24,863 $5,874 $1,322 $67,240 
Charged-off loans(2,652)(378)(1,593)(74)(13,175)(12,528)— (30,400)
Recovery of previously charged-off loans1,568 528 2,653 1,863 3,035 2,711 — 12,358 
Provision for credit losses2,667 4,025 1,579 377 17,008 9,366 (645)34,377 
Balance at December 31, 2018$10,575 $16,371 $7,670 $11,128 $31,731 $5,423 $677 $83,575 
Charged-off loans(1,625)(75)(1,335)(18)(19,208)(6,206)— (28,467)
Recovery of previously charged-off loans1,252 980 1,827 682 6,473 1,172 — 12,386 
Provision for credit losses3,204 2,687 (108)870 17,116 3,206 308 27,283 
Balance at December 31, 2019$13,406 $19,963 $8,054 $12,662 $36,112 $3,595 $985 $94,777 
Impact of adopting ASC 326264 (4,740)21,029 (3,144)23,040 2,638 (985)38,102 
Charged-off loans(2,598)(546)(3,478)— (38,718)(3,993)— (49,333)
Recovery of previously charged-off loans1,317 911 1,493 147 4,540 1,554 — 9,962 
Provision for credit losses10,909 63,544 6,206 32,743 73,449 4,691 — 191,542 
Balance at December 31, 2020$23,298 $79,132 $33,304 $42,408 $98,423 $8,485 $— $285,050 

The following table details the allowance for credit losses on loans and recorded investment in loans by loan classification and by impairment evaluation method as of December 31, 2019, as determined in accordance with ASC 310 prior to the adoption of ASU 2016-13 (in thousands):
 Commercial real estate - mortgageConsumer real estate - mortgageConstruction and land developmentCommercial and industrialConsumer and otherUnallocatedTotal
December 31, 2019
Allowance for Loan Losses:
Collectively evaluated for impairment$32,134 $6,762 $12,629 $35,401 $3,586 $90,512 
Individually evaluated for impairment1,235 1,292 33 711 9 3,280 
Loans acquired with deteriorated credit quality(1)
— — — — — — 
Balance at December 31, 2019$33,369 $8,054 $12,662 $36,112 $3,595 $985 $94,777 
Loans:
Collectively evaluated for impairment$7,681,608 $3,036,922 $2,426,901 $6,274,280 $289,106 $19,708,817 
Individually evaluated for impairment18,122 25,018 561 14,295 148 58,144 
Loans acquired with deteriorated credit quality9,488 6,685 3,021 1,721 — 20,915 
Balance at December 31, 2019$7,709,218 $3,068,625 $2,430,483 $6,290,296 $289,254 $19,787,876 
(1) Prior to the adoption of ASC 326 on January 1, 2020, an allowance for loan losses was recorded on loans acquired with deteriorated credit quality only in the event of additional credit deterioration subsequent to acquisition.
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at December 31, 2020 and 2019 (in thousands) were as follows:
December 31, 2020December 31, 2019
Commercial real estate:
Owner-occupied$2,802,227$2,669,766
Non-owner occupied5,203,3845,039,452
Consumer real estate – mortgage3,099,1723,068,625
Construction and land development2,901,7462,430,483
Commercial and industrial8,038,4576,290,296
Consumer and other379,515289,254
Subtotal$22,424,501 $19,787,876 
Allowance for credit losses(285,050)(94,777)
Loans, net$22,139,451 $19,693,099 
Schedule of Collateral Dependent Loans Individually Evaluated for ACL
The following table presents the amortized cost basis of collateral dependent loans, which are individually evaluated to determine
expected credit losses (in thousands):
Real EstateBusiness AssetsOtherTotal
December 31, 2020
Commercial real estate:
Owner-occupied$15,681 $— $— $15,681 
Non-owner occupied7,000 — — 7,000 
Consumer real estate – mortgage27,082 — — 27,082 
Construction and land development2,049 — — 2,049 
Commercial and industrial— 22,437 39 22,476 
Consumer and other— — 4 4 
Total$51,812 $22,437 $43 $74,292 
Financing Receivable, Nonaccrual
The table below presents the amortized cost basis of loans on nonaccrual status and loans past due 90 or more days and still accruing interest at December 31, 2020 and December 31, 2019. Also presented is the balance of loans on nonaccrual status at December 31, 2020 for which there was no related allowance for credit losses recorded (in thousands):

December 31, 2020December 31, 2019
Total nonaccrual loansNonaccrual loans with no allowance for credit lossesLoans past due 90 or more days and still accruingTotal nonaccrual loansLoans past due 90 or more days and still accruing
Commercial real estate:
Owner-occupied$10,231 $5,985 $— $11,654 $— 
Non-owner occupied5,219 1,522 — 7,173 — 
Consumer real estate – mortgage22,191 — 273 24,667 168 
Construction and land development1,953 — — 2,278 — 
Commercial and industrial34,238 29,030 1,785 15,685 946 
Consumer and other4 — 304 148 501 
Total$73,836 $36,537 $2,362 $61,605 $1,615 
Certain Loans Acquired in Transfer During Period The following table provides a rollforward of PCD loans from December 31, 2018 through December 31, 2020 (in thousands):
 Gross Carrying ValueAccretable YieldNonaccretable YieldCarrying Value
December 31, 2018$42,837 $(114)$(17,394)$25,329 
Acquisitions1,883 — — 1,883 
Reclassification of yield from nonaccretable to accretable— (7,505)7,505 — 
Settlements(15,176)2,818 6,061 (6,297)
December 31, 2019$29,544 $(4,801)$(3,828)$20,915 
Reclassification of discount to allowance for credit losses— — 3,828 3,828 
Settlements(8,158)2,561 — (5,597)
December 31, 2020$21,386 $(2,240)$— $19,146