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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2021
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at December 31, 2021 and 2020 were as follows (in thousands):
December 31, 2021December 31, 2020
Commercial real estate:
Owner-occupied$3,048,822$2,802,227
Non-owner occupied5,221,7045,203,384
Consumer real estate – mortgage3,680,6843,099,172
Construction and land development2,903,0172,901,746
Commercial and industrial8,074,5468,038,457
Consumer and other485,489379,515
Subtotal$23,414,262 $22,424,501 
Allowance for credit losses(263,233)(285,050)
Loans, net$23,151,029 $22,139,451 
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 or most recent renewal as of December 31, 2021 (in thousands):
December 31, 202120212020201920182017PriorRevolving LoansTotal
Commercial real estate- owner occupied
Pass$951,693 $732,232 $390,068 $327,933 $190,395 $294,150 $72,222 $2,958,693 
Special Mention9,462 21,875 21,633 2,246 6,952 3,806 5,885 71,859 
Substandard (1)
3,976 1,349 5,823 219 3,626 582 — 15,575 
Substandard-nonaccrual651 70 397 982 395 200 — 2,695 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$965,782 $755,526 $417,921 $331,380 $201,368 $298,738 $78,107 $3,048,822 
Commercial real estate- Non-owner occupied
Pass$1,662,320 $915,986 $826,859 $428,119 $353,775 $454,916 $72,744 $4,714,719 
Special Mention94,183 288,608 43,925 8,917 26,295 27,937 — 489,865 
Substandard (1)
1,676 8,050 1,353 2,939 1,698 — — 15,716 
Substandard-nonaccrual— — — 501 — 903 — 1,404 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$1,758,179 $1,212,644 $872,137 $440,476 $381,768 $483,756 $72,744 $5,221,704 
Consumer real estate – mortgage
Pass$1,231,491 $576,608 $306,762 $189,715 $110,420 $284,642 $964,902 $3,664,540 
Special Mention120 — — 688 — 752 — 1,560 
Substandard (1)
— 864 — — — 1,817 1,640 4,321 
Substandard-nonaccrual188 699 4,469 704 209 3,540 454 10,263 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$1,231,799 $578,171 $311,231 $191,107 $110,629 $290,751 $966,996 $3,680,684 
Construction and land development
Pass$1,584,155 $802,059 $406,645 $72,112 $12,290 $2,873 $9,495 $2,889,629 
Special Mention3,049 883 8,908 — — — — 12,840 
Substandard (1)
— — 11 18 — 163 — 192 
Substandard-nonaccrual— — 229 — — 127 — 356 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,587,204 $802,942 $415,793 $72,130 $12,290 $3,163 $9,495 $2,903,017 
Commercial and industrial
Pass$3,321,855 $811,693 $559,902 $265,516 $105,454 $127,880 $2,694,814 $7,887,114 
Special Mention14,447 4,428 37,496 7,043 1,197 383 31,794 96,788 
Substandard (1)
18,752 447 5,222 11,997 3,444 17 33,916 73,795 
Substandard-nonaccrual298 11,831 353 403 95 349 3,520 16,849 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial and industrial$3,355,352 $828,399 $602,973 $284,959 $110,190 $128,629 $2,764,044 $8,074,546 
December 31, 202120212020201920182017PriorRevolving LoansTotal
Consumer and other
Pass$196,605 $82,103 $5,977 $2,235 $2,099 $1,534 $194,934 $485,487 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — — — — — 2 2 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$196,605 $82,103 $5,977 $2,235 $2,099 $1,534 $194,936 $485,489 
Total loans
Pass$8,948,119 $3,920,681 $2,496,213 $1,285,630 $774,433 $1,165,995 $4,009,111 $22,600,182 
Special Mention121,261 315,794 111,962 18,894 34,444 32,878 37,679 672,912 
Substandard (1)
24,404 10,710 12,409 15,173 8,768 2,579 35,556 109,599 
Substandard-nonaccrual1,137 12,600 5,448 2,590 699 5,119 3,976 31,569 
Doubtful-nonaccrual— — — — — — — — 
Total loans$9,094,921 $4,259,785 $2,626,032 $1,322,287 $818,344 $1,206,571 $4,086,322 $23,414,262 
(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 $109.6 million at December 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 December 31, 2021 and December 31, 2020 (in thousands):
December 31, 202130-59 days past due60-89 days past due90 days or more past dueTotal past dueCurrentTotal loans
Commercial real estate:
Owner-occupied$727 $— $2,426 $3,153 $3,045,669 $3,048,822 
Non-owner occupied1,434 — 645 2,079 5,219,625 5,221,704 
Consumer real estate – mortgage8,710 122 4,450 13,282 3,667,402 3,680,684 
Construction and land development61 — 127 188 2,902,829 2,903,017 
Commercial and industrial4,926 2,677 7,311 14,914 8,059,632 8,074,546 
Consumer and other1,715 568 372 2,655 482,834 485,489 
Total$17,573 $3,367 $15,331 $36,271 $23,377,991 $23,414,262 
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 from December 31, 2018 to December 31, 2019 to December 31, 2020 to December 31, 2021 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, 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 loan 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 loan 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 
Charged-off loans(1,420)(786)(632)(367)(46,213)(5,578)— (54,996)
Recovery of previously charged-off loans1,609 969 2,288 372 7,485 3,550 — 16,273 
Provision for loan losses(3,869)(20,811)(2,856)(12,984)52,645 4,781 — 16,906 
Balance at December 31, 2021$19,618 $58,504 $32,104 $29,429 $112,340 $11,238 $— $263,233 
Schedule of Collateral Dependent Loans Individually Evaluated for ACL (in thousands):
Real EstateBusiness AssetsOtherTotal
December 31, 2021
Commercial real estate:
Owner-occupied$5,300 $— $— $5,300 
Non-owner occupied5,631 — — 5,631 
Consumer real estate – mortgage16,392 — — 16,392 
Construction and land development1,208 — — 1,208 
Commercial and industrial— 6,976 206 7,182 
Consumer and other— — — — 
Total$28,531 $6,976 $206 $35,713 
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, 2021 and December 31, 2020. Also presented is the balance of loans on nonaccrual status at December 31, 2021 for which there was no related allowance for credit losses recorded (in thousands):
December 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$2,694 $— $— $10,231 $5,985 $— 
Non-owner occupied1,404 — — 5,219 1,522 — 
Consumer real estate – mortgage10,264 — 144 22,191 — 273 
Construction and land development356 — — 1,953 — — 
Commercial and industrial16,849 13,188 1,091 34,238 29,030 1,785 
Consumer and other2 — 372 4 — 304 
Total$31,569 $13,188 $1,607 $73,836 $36,537 $2,362 
Amount of Troubled Debt Restructuring Categorized by Loan Classification
There were no TDRs made during the year ended December 31, 2021. The following table outlines the amount of each TDR by loan classification made during the years ended December 31, 2020 and 2019 (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 

During the years ended December 31, 2021, 2020 and 2019, 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.
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, 2021 with the comparative exposures for December 31, 2020 (in thousands):
 At December 31, 2021
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2020
Lessors of nonresidential buildings$3,779,463 $1,589,175 $5,368,638 $4,442,712 
Lessors of residential buildings1,361,389 1,204,963 2,566,352 2,126,246 
New housing for-sale builders555,069 979,720 1,534,789 1,124,302 
Hotels and motels866,535 53,821 920,356 1,039,259 
Total$6,562,456 $3,827,679 $10,390,135 $8,732,519