XML 35 R23.htm IDEA: XBRL DOCUMENT v3.21.1
Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2021
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at March 31, 2021 and December 31, 2020 were as follows:
March 31, 2021December 31, 2020
Commercial real estate:
Owner occupied$2,869,785 $2,802,227 
Non-owner occupied5,573,181 5,203,384 
Consumer real estate – mortgage3,086,916 3,099,172 
Construction and land development2,568,969 2,901,746 
Commercial and industrial8,576,528 8,038,457 
Consumer and other411,322 379,515 
Subtotal$23,086,701 $22,424,501 
Allowance for credit losses(280,881)(285,050)
Loans, net$22,805,820 $22,139,451 
Loan Classification Categorized by Risk Rating Category The table below presents loan balances classified within each risk rating category by primary loan type and based on year of origination as of March 31, 2021 (in thousands):
March 31, 202120212020201920182017PriorRevolving LoansTotal
Commercial real estate - Owner occupied
Pass$185,030 $818,913 $454,195 $415,769 $287,792 $482,233 $75,410 $2,719,342 
Special Mention843 21,745 23,153 18,193 9,943 7,773 100 81,750 
Substandard (1)
— 15,418 6,878 7,720 12,034 9,215 4,405 55,670 
Substandard-nonaccrual469 4,175 143 2,882 825 4,529 — 13,023 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$186,342 $860,251 $484,369 $444,564 $310,594 $503,750 $79,915 $2,869,785 
Commercial real estate - Non-owner occupied
Pass$363,560 $1,195,970 $1,148,016 $655,692 $460,511 $753,838 $76,477 $4,654,064 
Special Mention4,790 499,220 128,032 49,715 104,627 101,186 35 887,605 
Substandard (1)
3,364 12,177 1,634 3,092 1,687 6,099 — 28,053 
Substandard-nonaccrual91 3 416 573 — 2,376 — 3,459 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$371,805 $1,707,370 $1,278,098 $709,072 $566,825 $863,499 $76,512 $5,573,181 
Consumer real estate – mortgage
Pass$208,011 $703,564 $432,848 $278,303 $146,508 $374,293 $917,280 $3,060,807 
Special Mention121 — — 710 66 957 — 1,854 
Substandard (1)
— 661 — — 183 1,872 1,760 4,476 
Substandard-nonaccrual82 243 3,413 807 1,223 11,347 2,664 19,779 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$208,214 $704,468 $436,261 $279,820 $147,980 $388,469 $921,704 $3,086,916 
Construction and land development
Pass$230,571 $1,127,479 $817,068 $275,489 $32,141 $19,315 $11,414 $2,513,477 
Special Mention1,501 38,796 8,638 — — 4,243 — 53,178 
Substandard (1)
— 354 14 25 — 363 — 756 
Substandard-nonaccrual— 363 524 68 74 529 — 1,558 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$232,072 $1,166,992 $826,244 $275,582 $32,215 $24,450 $11,414 $2,568,969 
Commercial and industrial
Pass$1,680,983 $2,677,307 $869,499 $485,136 $220,590 $174,287 $2,219,361 $8,327,163 
Special Mention1,345 33,321 64,578 3,682 6,611 3,115 30,554 143,206 
Substandard (1)
2,099 22,656 15,010 11,797 2,462 2,345 15,502 71,871 
Substandard-nonaccrual637 21,364 4,534 527 470 497 6,259 34,288 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$1,685,064 $2,754,648 $953,621 $501,142 $230,133 $180,244 $2,271,676 $8,576,528 
Consumer and other
Pass$93,203 $120,548 $13,895 $5,065 $5,453 $4,164 $168,966 $411,294 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — — — 25 3 — 28 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$93,203 $120,548 $13,895 $5,065 $5,478 $4,167 $168,966 $411,322 
Total loans
Pass$2,761,358 $6,643,781 $3,735,521 $2,115,454 $1,152,995 $1,808,130 $3,468,908 $21,686,147 
Special Mention8,600 593,082 224,401 72,300 121,247 117,274 30,689 1,167,593 
Substandard (1)
5,463 51,266 23,536 22,634 16,366 19,894 21,667 160,826 
Substandard-nonaccrual1,279 26,148 9,030 4,857 2,617 19,281 8,923 72,135 
Doubtful-nonaccrual— — — — — — — — 
Total loans$2,776,700 $7,314,277 $3,992,488 $2,215,245 $1,293,225 $1,964,579 $3,530,187 $23,086,701 
(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 troubled debt restructurings. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $160.8 million at March 31, 2021, compared to $173.5 million at December 31, 2020.
Past Due Balances by Loan Classification
The table below presents the aging of past due balances by loan segment at March 31, 2021 and December 31, 2020 (in thousands):

March 31, 202130-59 days past due60-89 days past due90 days or more past dueTotal
past due		CurrentTotal loans
Commercial real estate:
Owner-occupied$1,906 $69 $2,957 $4,932 $2,864,853 $2,869,785 
Non-owner occupied1,714 — 2,526 4,240 5,568,941 5,573,181 
Consumer real estate – mortgage5,303 790 5,816 11,909 3,075,007 3,086,916 
Construction and land development137 — 383 520 2,568,449 2,568,969 
Commercial and industrial10,913 2,895 4,377 18,185 8,558,343 8,576,528 
Consumer and other797 223 342 1,362 409,960 411,322 
Total$20,770 $3,977 $16,401 $41,148 $23,045,553 $23,086,701 
December 31, 2020
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 $21,260 $65,045 $22,359,456 $22,424,501 
Details of Changes in the Allowance for Loan Losses The following table details the changes in the allowance for credit losses for the three months ended March 31, 2021 and 2020, respectively, by loan classification (in thousands):
 Commercial real estate - Owner occupiedCommercial real estate - Non-owner occupiedConsumer
 real estate - mortgage		Construction and land developmentCommercial and industrialConsumer
and other		UnallocatedTotal
Three months ended March 31, 2021:
Balance at December 31, 2020$23,298 $79,132 $33,304 $42,408 $98,423 $8,485 $— $285,050 
Charged-off loans(697)(140)(371)(367)(11,749)(950)— (14,274)
Recovery of previously charged-off loans602 12 365 37 1,206 655 — 2,877 
Provision for credit losses on loans(1,138)1,515 (3,099)(4,436)13,196 1,190 — 7,228 
Balance at March 31, 2021$22,065 $80,519 $30,199 $37,642 $101,076 $9,380 $— $280,881 
Three months ended March 31, 2020:       
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(1,561)(261)(930)— (7,734)(1,207)— (11,693)
Recovery of previously charged-off loans145 93 190 43 748 319 — 1,538 
Provision for credit losses on loans11,380 17,059 4,655 29,350 35,894 1,403 — 99,741 
Balance at March 31, 2020$23,634 $32,114 $32,998 $38,911 $88,060 $6,748 $— $222,465 
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, as of March 31, 2021 and December 31, 2020 (in thousands):
Real EstateBusiness AssetsOtherTotal
March 31, 2021
Commercial real estate:
Owner-occupied$19,165 $— $— $19,165 
Non-owner occupied5,187 — — 5,187 
Consumer real estate – mortgage24,683 — — 24,683 
Construction and land development1,648 — — 1,648 
Commercial and industrial— 11,888 634 12,522 
Consumer and other— — 28 28 
Total $50,683 $11,888 $662 $63,233 
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 March 31, 2021 and December 31, 2020. Also presented is the balance of loans on nonaccrual status at March 31, 2021 for which there was no related allowance for credit losses recorded (in thousands):
March 31, 2021December 31, 2020
Total nonaccrual loansNonaccrual loans with no allowance for credit lossesLoans past due 90 or more days and still accruingTotal nonaccrual loansNonaccrual loans with no allowance for credit lossesLoans past due 90 or more days and still accruing
Commercial real estate:
Owner-occupied$13,023 $8,955 $— $10,231 $5,985 $— 
Non-owner occupied3,459 — — 5,219 1,522 — 
Consumer real estate – mortgage19,779 — — 22,191 — 273 
Construction and land development1,558 — — 1,953 — — 
Commercial and industrial34,288 27,862 2,491 34,238 29,030 1,785 
Consumer and other28 — 342 4 — 304 
Total$72,135 $36,817 $2,833 $73,836 $36,537 $2,362 
Troubled Debt Restructurings The following table outlines the amount of each loan category where troubled debt restructurings were made during the three months ended March 31, 2020 (in thousands):
March 31, 2020
Number
of contracts		Pre Modification Outstanding Recorded InvestmentPost Modification Outstanding Recorded Investment, net of related allowance
Consumer real estate – mortgage1 807 807 
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 has 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 March 31, 2021 with the comparative exposures for December 31, 2020 (in thousands):
 March 31, 2021 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2020
Lessors of nonresidential buildings$3,553,989 $1,053,464 $4,607,453 $4,442,712 
Lessors of residential buildings1,348,050 814,962 2,163,012 2,126,246 
Hotels (except Casino Hotels) and Motels988,712 71,837 1,060,549 1,039,259 
New Housing For-Sale Builders489,417 747,732 1,237,149 1,124,302