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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2023
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at March 31, 2023 and December 31, 2022 were as follows (in thousands):
March 31, 2023December 31, 2022
Commercial real estate:
Owner occupied$3,686,796 $3,587,257
Non-owner occupied6,887,733 6,542,619
Consumer real estate – mortgage4,531,285 4,435,046
Construction and land development3,909,024 3,679,498
Commercial and industrial10,723,327 10,241,362
Consumer and other559,706 555,823
Subtotal$30,297,871 $29,041,605 
Allowance for credit losses(313,841)(300,665)
Loans, net$29,984,030 $28,740,940 
Loan Classification Categorized by Risk Rating Category
The table below presents loan balances classified within each risk rating category and the current period gross charge-offs by primary loan type and year of origination or most recent renewal as of March 31, 2023 (in thousands):
March 31, 202320232022202120202019PriorRevolving LoansTotal
Commercial real estate - Owner occupied
Pass$196,470 $1,116,857 $854,009 $569,810 $318,310 $476,339 $56,495 $3,588,290 
Special Mention5,528 33,658 9,231 7,768 5,883 7,547 — 69,615 
Substandard (1)
999 10,859 2,816 3,834 1,030 1,951 5,096 26,585 
Substandard-nonaccrual— 674 — 514 94 1,024 — 2,306 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Owner occupied$202,997 $1,162,048 $866,056 $581,926 $325,317 $486,861 $61,591 $3,686,796 
Current period gross charge-offs$— — — — — — — $— 
Commercial real estate - Non-owner occupied
Pass$284,596 $2,482,638 $1,660,667 $965,296 $693,967 $623,402 $97,500 $6,808,066 
Special Mention10,594 26,458 — 16,776 17,972 5,011 — 76,811 
Substandard (1)
— — — — 1,256 848 — 2,104 
Substandard-nonaccrual— — — — — 752 — 752 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$295,190 $2,509,096 $1,660,667 $982,072 $713,195 $630,013 $97,500 $6,887,733 
Current period gross charge-offs$— — — — — — — $— 
Consumer real estate – mortgage
Pass$177,959 $1,038,013 $1,106,640 $480,438 $228,820 $366,864 $1,115,282 $4,514,016 
Special Mention204 — — — — 158 — 362 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 664 1,621 2,284 7,051 4,911 376 16,907 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$178,163 $1,038,677 $1,108,261 $482,722 $235,871 $371,933 $1,115,658 $4,531,285 
Current period gross charge-offs$— — (32)— — — (98)$(130)
Construction and land development
Pass$303,786 $1,998,380 $1,320,902 $200,318 $21,042 $10,499 $40,845 $3,895,772 
Special Mention— 10,270 2,765 — — — — 13,035 
Substandard (1)
— — — — — 87 — 87 
Substandard-nonaccrual— — 130 — — — — 130 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$303,786 $2,008,650 $1,323,797 $200,318 $21,042 $10,586 $40,845 $3,909,024 
Current period gross charge-offs$— — — — — — — $— 
Commercial and industrial
Pass$1,777,610 $2,757,756 $1,549,405 $407,926 $284,347 $255,139 $3,484,273 $10,516,456 
Special Mention850 34,872 4,974 7,996 26,473 5,200 68,210 148,575 
Substandard (1)
4,060 7,248 7,849 219 5,024 415 16,651 41,466 
Substandard-nonaccrual605 10,694 3,637 64 163 603 1,061 16,827 
Doubtful-nonaccrual3 — — — — — — 3 
 Total Commercial and industrial$1,783,128 $2,810,570 $1,565,865 $416,205 $316,007 $261,357 $3,570,195 $10,723,327 
Current period gross charge-offs$— (4,176)(2,466)(210)— (129)(3,668)$(10,649)
Consumer and other
March 31, 202320232022202120202019PriorRevolving LoansTotal
Pass$118,750 $49,044 $94,075 $49,803 $1,481 $1,244 $245,246 $559,643 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 22 — 41 — — — 63 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$118,750 $49,066 $94,075 $49,844 $1,481 $1,244 $245,246 $559,706 
Current period gross charge-offs$— (143)(1,509)(632)(3)(33)(923)$(3,243)
Total loans
Pass$2,859,171 $9,442,688 $6,585,698 $2,673,591 $1,547,967 $1,733,487 $5,039,641 $29,882,243 
Special Mention17,176 105,258 16,970 32,540 50,328 17,916 68,210 308,398 
Substandard (1)
5,059 18,107 10,665 4,053 7,310 3,301 21,747 70,242 
Substandard-nonaccrual605 12,054 5,388 2,903 7,308 7,290 1,437 36,985 
Doubtful-nonaccrual3 — — — — — — 3 
Total loans$2,882,014 $9,578,107 $6,618,721 $2,713,087 $1,612,913 $1,761,994 $5,131,035 $30,297,871 
Current period gross charge-offs$— (4,319)(4,007)(842)(3)(162)(4,689)$(14,022)
(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 loan modifications made to borrowers experiencing financial difficulty. Potential problem loans, which are not included in nonaccrual loans, amounted to approximately $67.8 million at March 31, 2023, compared to $53.8 million at December 31, 2022.
Past Due Balances by Loan Classification
The table below presents the aging of past due balances by loan segment at March 31, 2023 and December 31, 2022 (in thousands):

March 31, 202330-59 days past due60-89 days past due90 days or more past dueTotal
past due		CurrentTotal loans
Commercial real estate:
Owner occupied$1,075 $— $1,789 $2,864 $3,683,932 $3,686,796 
Non-owner occupied405 272 206 883 6,886,850 6,887,733 
Consumer real estate – mortgage12,803 1,325 4,844 18,972 4,512,313 4,531,285 
Construction and land development52 — 130 182 3,908,842 3,909,024 
Commercial and industrial12,427 4,933 12,401 29,761 10,693,566 10,723,327 
Consumer and other4,213 2,353 954 7,520 552,186 559,706 
Total$30,975 $8,883 $20,324 $60,182 $30,237,689 $30,297,871 
December 31, 2022
Commercial real estate:
Owner occupied$2,112 $615 $1,139 $3,866 $3,583,391 $3,587,257 
Non-owner occupied359 48 1,681 2,088 6,540,531 6,542,619 
Consumer real estate – mortgage13,635 83 9,094 22,812 4,412,234 4,435,046 
Construction and land development221 102 130 453 3,679,045 3,679,498 
Commercial and industrial15,457 13,713 9,428 38,598 10,202,764 10,241,362 
Consumer and other4,056 1,688 746 6,490 549,333 555,823 
Total$35,840 $16,249 $22,218 $74,307 $28,967,298 $29,041,605 
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, 2023 and 2022, 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		Total
Three months ended March 31, 2023:      
Balance at December 31, 2022$26,617 $40,479 $36,536 $36,114 $144,353 $16,566 $300,665 
Charged-off loans— — (130)— (10,649)(3,243)(14,022)
Recovery of previously charged-off loans8 30 671 221 3,711 2,091 6,732 
Provision for credit losses on loans(3,027)1,405 2,083 1,264 16,214 2,527 20,466 
Balance at March 31, 2023$23,598 $41,914 $39,160 $37,599 $153,629 $17,941 $313,841 
Three months ended March 31, 2022:      
Balance at December 31, 2021$19,618 $58,504 $32,104 $29,429 $112,340 $11,238 $263,233 
Charged-off loans(86)— (162)— (4,380)(1,884)(6,512)
Recovery of previously charged-off loans127 63 294 74 1,924 1,072 3,554 
Provision for credit losses on loans(154)(2,489)84 320 2,528 1,054 1,343 
Balance at March 31, 2022$19,505 $56,078 $32,320 $29,823 $112,412 $11,480 $261,618 
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, 2023 and December 31, 2022 (in thousands):
Real EstateBusiness AssetsOtherTotal
March 31, 2023
Commercial real estate:
Owner occupied$5,218 $— $— $5,218 
Non-owner occupied3,339 — — 3,339 
Consumer real estate – mortgage19,805 — — 19,805 
Construction and land development196 — — 196 
Commercial and industrial— 13,581 7,206 20,787 
Consumer and other— — — — 
Total $28,558 $13,581 $7,206 $49,345 
December 31, 2022
Commercial real estate:
Owner occupied$10,804 $— $— $10,804 
Non-owner occupied4,795 — — 4,795 
Consumer real estate – mortgage22,466 — — 22,466 
Construction and land development299 — — 299 
Commercial and industrial— 12,327 — 12,327 
Consumer and other— — 2 2 
Total $38,364 $12,327 $2 $50,693 
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, 2023 and December 31, 2022. Also presented is the balance of loans on nonaccrual status at March 31, 2023 for which there was no related allowance for credit losses recorded (in thousands):
March 31, 2023December 31, 2022
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$2,306 $— $— $1,882 $— $— 
Non-owner occupied752 — — 2,244 1,040 — 
Consumer real estate – mortgage16,907 — — 17,330 — — 
Construction and land development130 — — 231 — — 
Commercial and industrial16,830 8,254 4,330 16,345 8,003 3,663 
Consumer and other63 — 954 84 — 743 
Total$36,988 $8,254 $5,284 $38,116 $9,043 $4,406 
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, 2023 with the comparative exposures for December 31, 2022 (in thousands):
 March 31, 2023 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2022
Lessors of nonresidential buildings$4,436,203 $1,980,583 $6,416,786 $7,058,045 
Lessors of residential buildings1,484,693 1,591,855 3,076,548 3,725,186 
New Housing For-Sale Builders599,664 922,963 1,522,627 1,763,089 
Music Publishers615,510 485,947 1,101,457 1,127,636 
Modifications
The following table shows the amortized cost basis as of March 31, 2023 of the loans modified to borrowers experiencing financial difficulty, disaggregated by class of loans and type of modification granted and describes the financial effect of the modifications made to borrowers experiencing financial difficulty (in thousands):
Payment Delay
Amortized Cost Basis% of Total Loan TypeFinancial Effect
March 31, 2023
Commercial real estate:
Owner occupied$— $— 
Non-owner occupied— — 
Consumer real estate – mortgage— — 
Construction and land development— — 
Commercial and industrial2,403 0.02 %Provided a 90 day forbearance period for payoff
Consumer and other— — 
Total $2,403