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Loans and Allowance for Loan Losses (Tables)
 3 Months Ended
Mar. 31, 2024
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at March 31, 2024 and December 31, 2023 were as follows (in thousands):
March 31, 2024December 31, 2023
Commercial real estate:
Owner occupied$4,044,973 $4,044,896
Non-owner occupied8,063,642 7,535,494
Consumer real estate – mortgage4,828,416 4,851,531
Construction and land development3,818,334 4,041,081
Commercial and industrial11,893,198 11,666,691
Consumer and other514,310 536,398
Subtotal$33,162,873 $32,676,091 
Allowance for credit losses(371,337)(353,055)
Loans, net$32,791,536 $32,323,036 
Loan Classification Categorized by Risk Rating Category
The following tables present loan balances classified within each risk rating category by primary loan type and year of origination or most recent renewal as of March 31, 2024 and December 31, 2023, as well as the gross loan charge-offs by primary loan type and year of origination or most recent renewal for the three months ended March 31, 2024 (in thousands):
20242023202220212020PriorRevolving LoansTotal
March 31, 2024
Commercial real estate - owner occupied
Pass$125,532 $777,221 $1,095,086 $836,473 $475,646 $570,092 $61,145 $3,941,195 
Special Mention10,785 1,534 28,271 7,954 17,863 13,292 — 79,699 
Substandard (1)
— — 9,275 3,244 83 770 — 13,372 
Substandard-nonaccrual— 6,331 553 1,833 1,083 907 — 10,707 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$136,317 $785,086 $1,133,185 $849,504 $494,675 $585,061 $61,145 $4,044,973 
Current period gross charge-offs$— — — — — (94)— $(94)
Commercial real estate - non-owner occupied
Pass$392,120 $1,251,928 $2,767,542 $1,985,325 $653,531 $758,134 $112,795 $7,921,375 
Special Mention11,229 — 29,956 — 24,103 6,689 — 71,977 
Substandard (1)
— 13,483 2,962 — — 1,246 — 17,691 
Substandard-nonaccrual13,298 — 127 38,180 — 473 521 52,599 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - non-owner occupied$416,647 $1,265,411 $2,800,587 $2,023,505 $677,634 $766,542 $113,316 $8,063,642 
Current period gross charge-offs$— — — (2,000)— — — $(2,000)
Consumer real estate – mortgage
Pass$61,138 $554,848 $957,384 $1,036,933 $434,418 $502,025 $1,258,040 $4,804,786 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 1,825 3,462 3,685 2,033 11,545 1,080 23,630 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$61,138 $556,673 $960,846 $1,040,618 $436,451 $513,570 $1,259,120 $4,828,416 
Current period gross charge-offs$— — (308)(120)(134)(61)— $(623)
Construction and land development
Pass$233,531 $985,950 $1,904,713 $620,421 $11,167 $10,104 $44,491 $3,810,377 
Special Mention220 1,796 326 — 4,914 — — 7,256 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — 594 — 25 82 — 701 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$233,751 $987,746 $1,905,633 $620,421 $16,106 $10,186 $44,491 $3,818,334 
Current period gross charge-offs$— — — — — — — $— 
Commercial and industrial
Pass$1,096,498 $2,727,037 $2,165,936 $1,076,829 $303,099 $339,780 $3,877,845 $11,587,024 
Special Mention6,281 59,021 42,005 12,148 547 1,956 67,801 189,759 
Substandard (1)
23,258 4,118 1,101 24,743 17 8,981 33,658 95,876 
Substandard-nonaccrual363 7,088 6,593 1,967 87 1,100 3,341 20,539 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$1,126,400 $2,797,264 $2,215,635 $1,115,687 $303,750 $351,817 $3,982,645 $11,893,198 
Current period gross charge-offs$— (3,605)(4,613)(1,723)(577)(135)(4,155)$(14,808)
Consumer and other
Pass$100,530 $34,351 $25,425 $60,954 $33,893 $981 $258,027 $514,161 
Special Mention— — — — — — — — 
20242023202220212020PriorRevolving LoansTotal
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — — 73 — 3 73 149 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$100,530 $34,351 $25,425 $61,027 $33,893 $984 $258,100 $514,310 
Current period gross charge-offs$— (158)(68)(995)(581)(25)(1,480)$(3,307)
Total loans
Pass$2,009,349 $6,331,335 $8,916,086 $5,616,935 $1,911,754 $2,181,116 $5,612,343 $32,578,918 
Special Mention28,515 62,351 100,558 20,102 47,427 21,937 67,801 348,691 
Substandard (1)
23,258 17,601 13,338 27,987 100 10,997 33,658 126,939 
Substandard-nonaccrual13,661 15,244 11,329 45,738 3,228 14,110 5,015 108,325 
Doubtful-nonaccrual— — — — — — — — 
Total loans$2,074,783 $6,426,531 $9,041,311 $5,710,762 $1,962,509 $2,228,160 $5,718,817 $33,162,873 
Current period gross charge-offs$— (3,763)(4,989)(4,838)(1,292)(315)(5,635)$(20,832)
20232022202120202019PriorRevolving LoansTotal
December 31, 2023
Commercial real estate - owner occupied
Pass$785,834 $1,123,425 $871,389 $502,260 $267,595 $357,339 $56,680 $3,964,522 
Special Mention1,595 37,324 5,300 2,252 5,306 4,701 — 56,478 
Substandard (1)
5,528 9,331 3,262 1,145 568 610 — 20,444 
Substandard-nonaccrual1,781 615 686 53 — 317 — 3,452 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$794,738 $1,170,695 $880,637 $505,710 $273,469 $362,967 $56,680 $4,044,896 
Commercial real estate - non-owner occupied
Pass$1,304,109 $2,682,275 $1,737,275 $713,979 $505,767 $370,420 $107,841 $7,421,666 
Special Mention— 30,229 — 6,745 216 5,335 — 42,525 
Substandard (1)
25,723 2,969 — — 1,195 73 — 29,960 
Substandard-nonaccrual— 153 40,180 — — 489 521 41,343 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - non-owner occupied$1,329,832 $2,715,626 $1,777,455 $720,724 $507,178 $376,317 $108,362 $7,535,494 
Consumer real estate – mortgage
Pass$573,120 $976,006 $1,056,720 $448,420 $207,790 $318,505 $1,253,091 $4,833,652 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual688 2,265 2,951 2,525 5,265 3,671 514 17,879 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$573,808 $978,271 $1,059,671 $450,945 $213,055 $322,176 $1,253,605 $4,851,531 
Construction and land development
Pass$1,153,137 $1,930,062 $884,060 $12,102 $5,580 $6,369 $41,886 $4,033,196 
Special Mention2,728 — — 4,467 — — — 7,195 
Substandard (1)
— — — — — 82 — 82 
Substandard-nonaccrual— 608 — — — — — 608 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,155,865 $1,930,670 $884,060 $16,569 $5,580 $6,451 $41,886 $4,041,081 
Commercial and industrial
Pass$3,778,326 $2,103,473 $1,127,096 $325,176 $215,158 $142,806 $3,753,575 $11,445,610 
Special Mention11,125 22,806 12,457 532 144 1,847 45,025 93,936 
Substandard (1)
10,142 2,243 25,311 145 359 9,028 60,986 108,214 
Substandard-nonaccrual10,436 4,193 1,583 409 359 735 1,215 18,930 
Doubtful-nonaccrual— — — 1 — — — 1 
20232022202120202019PriorRevolving LoansTotal
 Total Commercial and industrial$3,810,029 $2,132,715 $1,166,447 $326,263 $216,020 $154,416 $3,860,801 $11,666,691 
Consumer and other
Pass$136,809 $28,774 $66,126 $37,015 $541 $656 $266,402 $536,323 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — — — — — 75 75 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$136,809 $28,774 $66,126 $37,015 $541 $656 $266,477 $536,398 
Total loans
Pass$7,731,335 $8,844,015 $5,742,666 $2,038,952 $1,202,431 $1,196,095 $5,479,475 $32,234,969 
Special Mention15,448 90,359 17,757 13,996 5,666 11,883 45,025 200,134 
Substandard (1)
41,393 14,543 28,573 1,290 2,122 9,793 60,986 158,700 
Substandard-nonaccrual12,905 7,834 45,400 2,987 5,624 5,212 2,325 82,287 
Doubtful-nonaccrual— — — 1 — — — 1 
Total loans$7,801,081 $8,956,751 $5,834,396 $2,057,226 $1,215,843 $1,222,983 $5,587,811 $32,676,091 
(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 $94.2 million at March 31, 2024, compared to $127.4 million at December 31, 2023.
Past Due Balances by Loan Classification
The table below presents the aging of past due balances by loan segment at March 31, 2024 and December 31, 2023 (in thousands):

March 31, 202430-59 days past due60-89 days past due90 days or more past dueTotal
past due		CurrentTotal loans
Commercial real estate:
Owner occupied$3,538 $6,231 $2,601 $12,370 $4,032,603 $4,044,973 
Non-owner occupied616 700 38,654 39,970 8,023,672 8,063,642 
Consumer real estate – mortgage16,928 5,327 6,755 29,010 4,799,406 4,828,416 
Construction and land development1,342 384 107 1,833 3,816,501 3,818,334 
Commercial and industrial16,667 7,202 20,120 43,989 11,849,209 11,893,198 
Consumer and other3,792 1,895 1,151 6,838 507,472 514,310 
Total$42,883 $21,739 $69,388 $134,010 $33,028,863 $33,162,873 
December 31, 2023
Commercial real estate:
Owner occupied$1,671 $507 $3,398 $5,576 $4,039,320 $4,044,896 
Non-owner occupied40,577 489 153 41,219 7,494,275 7,535,494 
Consumer real estate – mortgage21,585 1,352 10,824 33,761 4,817,770 4,851,531 
Construction and land development621 28 608 1,257 4,039,824 4,041,081 
Commercial and industrial14,197 28,221 16,890 59,308 11,607,383 11,666,691 
Consumer and other5,286 1,868 1,496 8,650 527,748 536,398 
Total$83,937 $32,465 $33,369 $149,771 $32,526,320 $32,676,091 
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, 2024 and 2023, 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, 2024:      
Balance at December 31, 2023$28,690 $57,687 $71,354 $39,142 $148,212 $7,970 $353,055 
Charged-off loans(94)(2,000)(623)— (14,808)(3,307)(20,832)
Recovery of previously charged-off loans17 14 244 7 2,822 1,513 4,617 
Provision for credit losses on loans1,077 16,880 4,839 (5,415)14,946 2,170 34,497 
Balance at March 31, 2024$29,690 $72,581 $75,814 $33,734 $151,172 $8,346 $371,337 
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 
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, 2024 and December 31, 2023 (in thousands):
Real EstateBusiness AssetsOtherTotal
March 31, 2024
Commercial real estate:
Owner occupied$23,726 $— $— $23,726 
Non-owner occupied68,615 — — 68,615 
Consumer real estate – mortgage26,055 — — 26,055 
Construction and land development759 — — 759 
Commercial and industrial— 38,056 551 38,607 
Consumer and other— — 65 65 
Total $119,155 $38,056 $616 $157,827 
December 31, 2023
Commercial real estate:
Owner occupied$22,284 $— $— $22,284 
Non-owner occupied69,577 — — 69,577 
Consumer real estate – mortgage20,389 — — 20,389 
Construction and land development668 — — 668 
Commercial and industrial— 31,625 552 32,177 
Consumer and other— — — — 
Total $112,918 $31,625 $552 $145,095 
Modifications
The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2024 and 2023, 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):

Three months ended March 31, 2024
Term Extension
Amortized Cost Basis% of Total Loan TypeFinancial Effect
Commercial real estate:
Owner occupied$— — 
Non-owner occupied— — 
Consumer real estate – mortgage— — 
Construction and land development— — 
Commercial and industrial19,208 0.16 %Added a weighted average 0.41 years to the term of the modified loans
Consumer and other— — 
Total $19,208 

Three months ended March 31, 2023
Payment Delay
Amortized Cost Basis% of Total Loan TypeFinancial Effect
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 

The following table shows loans that experienced a payment default during the three months ended March 31, 2024, subsequent to being granted a modification in the prior twelve months.

Three months ended March 31, 2024
Payment DelayTerm ExtensionCombination¹Total
Commercial real estate:
Owner occupied$— $5,529 $— $5,529 
Non-owner occupied13,298 — — 13,298 
Consumer real estate – mortgage— — — — 
Construction and land development— — — — 
Commercial and industrial— — — — 
Consumer and other— — — — 
Total $13,298 $5,529 $— $18,827 
(¹) The combination includes payment delay, term extension, and an interest rate reduction.
The table below presents the aging of past due balances as of March 31, 2024 of loans made to borrowers experiencing financial difficulty that were modified in the previous twelve months:
March 31, 202430-59 days past due60-89 days past due90 days or more past dueCurrentTotal loans
Commercial real estate:
Owner occupied$— $5,529 $— $— $5,529 
Non-owner occupied— — — 26,780 26,780 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — 3,226 19,209 22,435 
Consumer and other— — — — — 
Total$— $5,529 $3,226 $45,989 $54,744 
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, 2024 and December 31, 2023. Also presented is the balance of loans on nonaccrual status at March 31, 2024 for which there was no related allowance for credit losses recorded (in thousands):
March 31, 2024December 31, 2023
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$10,707 $5,888 $— $3,452 $122 $— 
Non-owner occupied52,599 13,771 — 41,343 40,669 — 
Consumer real estate – mortgage23,630 — — 17,879 — 781 
Construction and land development701 — — 608 — — 
Commercial and industrial20,539 3,556 4,124 18,931 519 3,802 
Consumer and other149 — 1,149 75 — 1,421 
Total$108,325 $23,215 $5,273 $82,288 $41,310 $6,004 
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, 2024 with the comparative exposures for December 31, 2023 (in thousands):
 March 31, 2024 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2023
Lessors of nonresidential buildings$4,784,990 $1,134,125 $5,919,115 $5,916,335 
Lessors of residential buildings2,164,633 967,350 3,131,983 3,179,041 
New Housing For-Sale Builders603,969 746,691 1,350,660 1,396,653 
Music Publishers839,813 438,738 1,278,551 1,219,781