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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2022
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at December 31, 2022 and 2021 were as follows (in thousands):
December 31, 2022December 31, 2021
Commercial real estate:
Owner-occupied$3,587,257$3,048,822
Non-owner occupied6,542,6195,221,704
Consumer real estate – mortgage4,435,0463,680,684
Construction and land development3,679,4982,903,017
Commercial and industrial10,241,3628,074,546
Consumer and other555,823485,489
Subtotal$29,041,605 $23,414,262 
Allowance for credit losses(300,665)(263,233)
Loans, net$28,740,940 $23,151,029 
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, 2022 (in thousands):

December 31, 202220222021202020192018PriorRevolving LoansTotal
Commercial real estate- owner occupied
Pass$1,172,662 $856,145 $594,369 $315,711 $244,203 $277,072 $64,206 $3,524,368 
Special Mention20,710 9,451 8,434 5,987 — 5,575 — 50,157 
Substandard (1)
2,685 2,843 1,633 1,035 1,356 1,298 — 10,850 
Substandard-nonaccrual677 — 64 94 919 128 — 1,882 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$1,196,734 $868,439 $604,500 $322,827 $246,478 $284,073 $64,206 $3,587,257 
Commercial real estate- Non-owner occupied
Pass$2,443,858 $1,551,480 $998,502 $708,665 $294,972 $382,254 $89,370 $6,469,101 
Special Mention28,927 — 16,936 15,064 — 9,071 — 69,998 
Substandard (1)
— — — 1,276 — — — 1,276 
Substandard-nonaccrual— 1,040 — — — 1,204 — 2,244 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$2,472,785 $1,552,520 $1,015,438 $725,005 $294,972 $392,529 $89,370 $6,542,619 
Consumer real estate – mortgage
Pass$1,055,454 $1,122,823 $492,824 $238,931 $124,579 $258,187 $1,124,453 $4,417,251 
Special Mention207 — — — 216 42 — 465 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual198 1,676 2,184 7,957 1,202 3,749 364 17,330 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$1,055,859 $1,124,499 $495,008 $246,888 $125,997 $261,978 $1,124,817 $4,435,046 
Construction and land development
Pass$1,964,251 $1,363,519 $246,840 $55,396 $5,989 $5,707 $19,251 $3,660,953 
Special Mention14,978 2,765 — — — — 1 17,744 
Substandard (1)
440 — — — — 130 — 570 
Substandard-nonaccrual— 130 — — — 101 — 231 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,979,669 $1,366,414 $246,840 $55,396 $5,989 $5,938 $19,252 $3,679,498 
Commercial and industrial
Pass$3,686,252 $1,643,062 $485,030 $320,501 $146,884 $132,388 $3,645,795 $10,059,912 
Special Mention33,491 2,370 3,570 27,607 4,738 1,174 51,014 123,964 
Substandard (1)
7,673 7,954 255 6,818 715 792 16,934 41,141 
Substandard-nonaccrual11,682 3,684 143 183 266 369 18 16,345 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial and industrial$3,739,098 $1,657,070 $488,998 $355,109 $152,603 $134,723 $3,713,761 $10,241,362 
December 31, 202220222021202020192018PriorRevolving LoansTotal
Consumer and other
Pass$156,417 $101,821 $55,362 $1,865 $744 $997 $238,533 $555,739 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 82 — — — 2 — 84 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$156,417 $101,903 $55,362 $1,865 $744 $999 $238,533 $555,823 
Total loans
Pass$10,478,894 $6,638,850 $2,872,927 $1,641,069 $817,371 $1,056,605 $5,181,608 $28,687,324 
Special Mention98,313 14,586 28,940 48,658 4,954 15,862 51,015 262,328 
Substandard (1)
10,798 10,797 1,888 9,129 2,071 2,220 16,934 53,837 
Substandard-nonaccrual12,557 6,612 2,391 8,234 2,387 5,553 382 38,116 
Doubtful-nonaccrual— — — — — — — — 
Total loans$10,600,562 $6,670,845 $2,906,146 $1,707,090 $826,783 $1,080,240 $5,249,939 $29,041,605 
(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 $53.8 million at December 31, 2022, compared to $109.6 million at December 31, 2021
Past Due Balances by Loan Classification The table below presents the aging of past due balances by loan segment at December 31, 2022 and December 31, 2021 (in thousands):
30-59 days past due60-89 days past due90 days or more past dueTotal past dueCurrentTotal loans
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 
December 31, 2021
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 
Details of Changes in the Allowance for Loan Losses
The following table details the changes in the allowance for credit losses from December 31, 2019 to December 31, 2020 to December 31, 2021 to December 31, 2022 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, 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 
Charged-off loans(1,413)(185)(651)(150)(39,020)(12,757)— (54,176)
Recovery of previously charged-off loans2,082 187 1,512 471 15,687 7,690 — 27,629 
Provision for loan losses6,330 (18,027)3,571 6,364 55,346 10,395 — 63,979 
Balance at December 31, 2022$26,617 $40,479 $36,536 $36,114 $144,353 $16,566 $— $300,665 
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 December 31, 2022 and December 31, 2021 (in thousands):
Real EstateBusiness AssetsOtherTotal
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 
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 
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, 2022 and 2021. Also presented is the balance of loans on nonaccrual status at December 31, 2022 and 2021 for which there was no related allowance for credit losses recorded (in thousands):
December 31, 2022December 31, 2021
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$1,882 $— $— $2,694 $— $— 
Non-owner occupied2,244 1,040 — 1,404 — — 
Consumer real estate – mortgage17,330 — — 10,264 — 144 
Construction and land development231 — — 356 — — 
Commercial and industrial16,345 8,003 3,663 16,849 13,188 1,091 
Consumer and other84 — 743 2 — 372 
Total$38,116 $9,043 $4,406 $31,569 $13,188 $1,607 
Amount of Troubled Debt Restructuring Categorized by Loan Classification
There were no TDRs made during the years ended December 31, 2022 and 2021. The following table outlines the amount of each TDR by loan classification made during the year ended December 31, 2020 (dollars in thousands):
Number
of contracts		Pre Modification Outstanding Recorded InvestmentPost Modification Outstanding Recorded Investment, net of related allowance
 
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 

During the years ended December 31, 2022, 2021 and 2020, 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, 2022 with the comparative exposures for December 31, 2021 (in thousands):
 At December 31, 2022
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2021
Lessors of nonresidential buildings$4,911,231 $2,146,814 $7,058,045 $5,368,638 
Lessors of residential buildings1,865,903 1,859,283 3,725,186 2,566,352 
New housing for-sale builders760,771 1,002,318 1,763,089 1,534,789 
Music publishers634,778 492,858 1,127,636 529,886 
Total$8,172,683 $5,501,273 $13,673,956 $9,999,665