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Loans and Allowance for Loan Losses (Tables)
 9 Months Ended
Sep. 30, 2021
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at September 30, 2021 and December 31, 2020 were as follows:
September 30, 2021December 31, 2020
Commercial real estate:
Owner occupied$2,954,519 $2,802,227
Non-owner occupied5,219,207 5,203,384
Consumer real estate – mortgage3,540,439 3,099,172
Construction and land development3,096,961 2,901,746
Commercial and industrial7,788,153 8,038,457
Consumer and other459,182 379,515
Subtotal$23,058,461 $22,424,501 
Allowance for credit losses(268,635)(285,050)
Loans, net$22,789,826 $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 or most recent renewal as of September 30, 2021 (in thousands):
September 30, 202120212020201920182017PriorRevolving LoansTotal
Commercial real estate - Owner occupied
Pass$709,613 $752,522 $396,290 $346,730 $230,544 $338,358 $74,332 $2,848,389 
Special Mention3,021 18,041 23,304 11,191 8,013 5,408 1,463 70,441 
Substandard (1)
4,065 9,243 5,929 2,010 6,062 1,843 4,403 33,555 
Substandard-nonaccrual651 167 133 224 573 322 64 2,134 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$717,350 $779,973 $425,656 $360,155 $245,192 $345,931 $80,262 $2,954,519 
Commercial real estate - Non-owner occupied
Pass$1,224,463 $1,011,088 $878,712 $458,453 $409,687 $527,093 $71,142 $4,580,638 
Special Mention102,390 339,589 58,766 28,326 55,434 28,615 35 613,155 
Substandard (1)
3,523 10,582 1,372 2,992 1,698 3,346 — 23,513 
Substandard-nonaccrual— 3 95 635 — 1,168 — 1,901 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$1,330,376 $1,361,262 $938,945 $490,406 $466,819 $560,222 $71,177 $5,219,207 
Consumer real estate – mortgage
Pass$954,840 $621,396 $344,081 $218,698 $118,796 $309,150 $946,762 $3,513,723 
Special Mention120 — — 697 64 977 — 1,858 
Substandard (1)
— 881 — — 449 1,834 2,886 6,050 
Substandard-nonaccrual289 412 3,722 766 971 10,374 2,274 18,808 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$955,249 $622,689 $347,803 $220,161 $120,280 $322,335 $951,922 $3,540,439 
Construction and land development
Pass$1,148,364 $982,922 $710,816 $180,189 $26,367 $15,867 $15,876 $3,080,401 
Special Mention2,877 3,280 8,653 — — — — 14,810 
Substandard (1)
— — 12 20 — 74 — 106 
Substandard-nonaccrual— 866 517 59 66 136 — 1,644 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,151,241 $987,068 $719,998 $180,268 $26,433 $16,077 $15,876 $3,096,961 
Commercial and industrial
Pass$2,566,847 $1,046,415 $675,802 $328,921 $124,091 $139,904 $2,682,244 $7,564,224 
Special Mention8,889 15,797 54,965 7,304 724 1,197 36,853 125,729 
Substandard (1)
23,211 642 5,852 2,380 4,505 2,324 37,103 76,017 
Substandard-nonaccrual4,231 12,869 549 475 250 391 3,418 22,183 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$2,603,178 $1,075,723 $737,168 $339,080 $129,570 $143,816 $2,759,618 $7,788,153 
Consumer and other
Pass$168,925 $94,798 $7,670 $2,687 $2,909 $2,058 $180,113 $459,160 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — — — 18 1 3 22 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$168,925 $94,798 $7,670 $2,687 $2,927 $2,059 $180,116 $459,182 
Total loans
Pass$6,773,052 $4,509,141 $3,013,371 $1,535,678 $912,394 $1,332,430 $3,970,469 $22,046,535 
Special Mention117,297 376,707 145,688 47,518 64,235 36,197 38,351 825,993 
Substandard (1)
30,799 21,348 13,165 7,402 12,714 9,421 44,392 139,241 
Substandard-nonaccrual5,171 14,317 5,016 2,159 1,878 12,392 5,759 46,692 
September 30, 202120212020201920182017PriorRevolving LoansTotal
Doubtful-nonaccrual— — — — — — — — 
Total loans$6,926,319 $4,921,513 $3,177,240 $1,592,757 $991,221 $1,390,440 $4,058,971 $23,058,461 
(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 $139.2 million at September 30, 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 September 30, 2021 and December 31, 2020 (in thousands):

September 30, 202130-59 days past due60-89 days past due90 days or more past dueTotal
past due		CurrentTotal loans
Commercial real estate:
Owner occupied$2,519 $— $1,618 $4,137 $2,950,382 $2,954,519 
Non-owner occupied3,375 359 1,317 5,051 5,214,156 5,219,207 
Consumer real estate – mortgage2,593 7,599 5,265 15,457 3,524,982 3,540,439 
Construction and land development776 645 648 2,069 3,094,892 3,096,961 
Commercial and industrial3,410 5,302 4,557 13,269 7,774,884 7,788,153 
Consumer and other1,376 696 247 2,319 456,863 459,182 
Total$14,049 $14,601 $13,652 $42,302 $23,016,159 $23,058,461 
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 $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 and nine months ended September 30, 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 September 30, 2021:
Balance at June 30, 2021$19,311 $79,081 $30,445 $33,487 $102,101 $9,322 $— $273,747 
Charged-off loans(543)(201)(94)— (10,167)(1,284)— (12,289)
Recovery of previously charged-off loans80 326 777 32 997 796 — 3,008 
Provision for credit losses on loans411 (5,180)(103)(659)8,485 1,215 — 4,169 
Balance at September 30, 2021$19,259 $74,026 $31,025 $32,860 $101,416 $10,049 $— $268,635 
Three months ended September 30, 2020:       
Balance at June 30, 2020$38,803 $68,426 $29,358 $41,897 $100,610 $6,278 $— $285,372 
Charged-off loans(186)(222)(907)— (12,984)(730)— (15,029)
Recovery of previously charged-off loans47 432 297 7 799 391 — 1,973 
Provision for credit losses on loans(2,238)1,223 3,201 (682)13,783 1,042 — 16,329 
Balance at September 30, 2020$36,426 $69,859 $31,949 $41,222 $102,208 $6,981 $— $288,645 
 Commercial real estate - Owner occupiedCommercial real estate - Non-owner occupiedConsumer
 real estate - mortgage		Construction and land developmentCommercial and industrialConsumer
and other		UnallocatedTotal
Nine months ended September 30, 2021:       
Balance at December 31, 2020$23,298 $79,132 $33,304 $42,408 $98,423 $8,485 $— $285,050 
Charged-off loans(1,246)(672)(626)(367)(32,890)(3,518)— (39,319)
Recovery of previously charged-off loans1,158 486 1,690 269 2,848 2,222 — 8,673 
Provision for credit losses on loans(3,951)(4,920)(3,343)(9,450)33,035 2,860 — 14,231 
Balance at September 30, 2021$19,259 $74,026 $31,025 $32,860 $101,416 $10,049 $— $268,635 
Nine months ended September 30, 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(1,247)(485)(3,033)— (27,982)(2,977)— (35,724)
Recovery of previously charged-off loans272 631 971 100 3,798 1,356 — 7,128 
Provision for credit losses on loans23,731 54,490 4,928 31,604 67,240 2,369 — 184,362 
Balance at September 30, 2020$36,426 $69,859 $31,949 $41,222 $102,208 $6,981 $— $288,645 
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 September 30, 2021 and December 31, 2020 (in thousands):
Real EstateBusiness AssetsOtherTotal
September 30, 2021
Commercial real estate:
Owner occupied$5,517 $— $— $5,517 
Non-owner occupied6,039 — — 6,039 
Consumer real estate – mortgage23,530 — — 23,530 
Construction and land development2,632 — — 2,632 
Commercial and industrial— 11,443 838 12,281 
Consumer and other— — 19 19 
Total $37,718 $11,443 $857 $50,018 
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 September 30, 2021 and December 31, 2020. Also presented is the balance of loans on nonaccrual status at September 30, 2021 for which there was no related allowance for credit losses recorded (in thousands):
September 30, 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$2,134 $— $306 $10,231 $5,985 $— 
Non-owner occupied1,901 — — 5,219 1,522 — 
Consumer real estate – mortgage18,808 — 549 22,191 — 273 
Construction and land development1,645 — — 1,953 — — 
Commercial and industrial22,182 17,538 812 34,238 29,030 1,785 
Consumer and other22 — 247 4 — 304 
Total$46,692 $17,538 $1,914 $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 nine months ended September 30, 2020 (in thousands):
September 30, 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 September 30, 2021 with the comparative exposures for December 31, 2020 (in thousands):
 September 30, 2021 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2020
Lessors of nonresidential buildings$3,694,063 $1,366,385 $5,060,448 $4,442,712 
Lessors of residential buildings1,377,334 923,992 2,301,326 2,126,246 
Hotels (except Casino Hotels) and Motels936,734 53,999 990,733 1,039,259 
New Housing For-Sale Builders542,968 893,927 1,436,895 1,124,302