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Loans and Allowance for Loan Losses (Tables)
 6 Months Ended
Jun. 30, 2023
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at June 30, 2023 and December 31, 2022 were as follows (in thousands):
June 30, 2023December 31, 2022
Commercial real estate:
Owner occupied$3,845,359 $3,587,257
Non-owner occupied7,170,888 6,542,619
Consumer real estate – mortgage4,692,673 4,435,046
Construction and land development3,904,774 3,679,498
Commercial and industrial10,983,911 10,241,362
Consumer and other555,685 555,823
Subtotal$31,153,290 $29,041,605 
Allowance for credit losses(337,459)(300,665)
Loans, net$30,815,831 $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 June 30, 2023 (in thousands):
June 30, 202320232022202120202019PriorRevolving LoansTotal
Commercial real estate - Owner occupied
Pass$402,185 $1,125,970 $861,428 $526,924 $308,674 $455,582 $49,619 $3,730,382 
Special Mention18,703 40,446 9,068 6,648 5,778 1,416 11,554 93,613 
Substandard (1)
— 7,671 — 3,893 571 1,912 4,603 18,650 
Substandard-nonaccrual985 664 — 57 — 1,008 — 2,714 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Owner occupied$421,873 $1,174,751 $870,496 $537,522 $315,023 $459,918 $65,776 $3,845,359 
Current period gross charge-offs$— — — — — — — $— 
Commercial real estate - Non-owner occupied
Pass$743,596 $2,465,042 $1,698,983 $946,895 $638,108 $519,105 $98,820 $7,110,549 
Special Mention13,808 9,232 — 11,919 4,231 5,488 — 44,678 
Substandard (1)
— — — — 14,833 568 — 15,401 
Substandard-nonaccrual— — 171 — 89 — — 260 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$757,404 $2,474,274 $1,699,154 $958,814 $657,261 $525,161 $98,820 $7,170,888 
Current period gross charge-offs$— — — — — — — $— 
Consumer real estate – mortgage
Pass$377,450 $1,013,187 $1,087,824 $472,753 $218,984 $348,401 $1,155,154 $4,673,753 
Special Mention— — — — — 155 1 156 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 1,389 2,478 4,013 6,373 4,137 374 18,764 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$377,450 $1,014,576 $1,090,302 $476,766 $225,357 $352,693 $1,155,529 $4,692,673 
Current period gross charge-offs$— — (80)(4)(15)(331)— $(430)
Construction and land development
Pass$581,303 $1,970,318 $1,198,752 $76,966 $10,885 $9,446 $45,295 $3,892,965 
Special Mention2,451 2,035 2,765 4,343 — — — 11,594 
Substandard (1)
— — — — — 85 — 85 
Substandard-nonaccrual— — 130 — — — — 130 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$583,754 $1,972,353 $1,201,647 $81,309 $10,885 $9,531 $45,295 $3,904,774 
Current period gross charge-offs$— — — — — — — $— 
Commercial and industrial
Pass$2,506,187 $2,529,197 $1,288,513 $378,730 $270,898 $188,722 $3,588,606 $10,750,853 
Special Mention18,999 24,721 38,034 3,764 217 990 56,829 143,554 
Substandard (1)
16,929 157 228 5,038 2,144 9,169 33,464 67,129 
Substandard-nonaccrual1,116 11,379 1,359 57 143 493 7,828 22,375 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$2,543,231 $2,565,454 $1,328,134 $387,589 $273,402 $199,374 $3,686,727 $10,983,911 
Current period gross charge-offs$(70)(9,137)(7,284)(594)(20)(154)(7,569)$(24,828)
Consumer and other
Pass$131,012 $38,336 $85,801 $45,484 $1,149 $942 $252,915 $555,639 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — 31 — — 5 10 46 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$131,012 $38,336 $85,832 $45,484 $1,149 $947 $252,925 $555,685 
Current period gross charge-offs$— (341)(3,587)(1,380)(76)(46)(2,219)$(7,649)
June 30, 202320232022202120202019PriorRevolving LoansTotal
Total loans
Pass$4,741,733 $9,142,050 $6,221,301 $2,447,752 $1,448,698 $1,522,198 $5,190,409 $30,714,141 
Special Mention53,961 76,434 49,867 26,674 10,226 8,049 68,384 293,595 
Substandard (1)
16,929 7,828 228 8,931 17,548 11,734 38,067 101,265 
Substandard-nonaccrual2,101 13,432 4,169 4,127 6,605 5,643 8,212 44,289 
Doubtful-nonaccrual— — — — — — — — 
Total loans$4,814,724 $9,239,744 $6,275,565 $2,487,484 $1,483,077 $1,547,624 $5,305,072 $31,153,290 
Current period gross charge-offs$(70)(9,478)(10,951)(1,978)(111)(531)(9,788)$(32,907)
(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 $98.9 million at June 30, 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 June 30, 2023 and December 31, 2022 (in thousands):

June 30, 202330-59 days past due60-89 days past due90 days or more past dueTotal
past due		CurrentTotal loans
Commercial real estate:
Owner occupied$2,013 $816 $2,016 $4,845 $3,840,514 $3,845,359 
Non-owner occupied— 206 — 206 7,170,682 7,170,888 
Consumer real estate – mortgage3,423 13,420 6,670 23,513 4,669,160 4,692,673 
Construction and land development674 3 130 807 3,903,967 3,904,774 
Commercial and industrial12,845 6,565 18,858 38,268 10,945,643 10,983,911 
Consumer and other3,604 1,834 937 6,375 549,310 555,685 
Total$22,559 $22,844 $28,611 $74,014 $31,079,276 $31,153,290 
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 and six months ended June 30, 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 June 30, 2023:
Balance at March 31, 2023$23,598 $41,914 $39,160 $37,599 $153,629 $17,941 $313,841 
Charged-off loans— — (300)— (14,179)(4,406)(18,885)
Recovery of previously charged-off loans6 1,159 944 30 4,417 2,557 9,113 
Provision for credit losses on loans2,893 12,035 19,570 1,226 4,551 (6,885)33,390 
Balance at June 30, 2023$26,497 $55,108 $59,374 $38,855 $148,418 $9,207 $337,459 
Three months ended June 30, 2022:      
Balance at March 31, 2022$19,505 $56,078 $32,320 $29,823 $112,412 $11,480 $261,618 
Charged-off loans(879)(185)(92)(150)(5,275)(2,592)(9,173)
Recovery of previously charged-off loans207 184 578 75 5,600 1,652 8,296 
Provision for credit losses on loans776 (3,530)1,077 (1,067)13,035 1,451 11,742 
Balance at June 30, 2022$19,609 $52,547 $33,883 $28,681 $125,772 $11,991 $272,483 
Six months ended June 30, 2023:      
Balance at December 31, 2022$26,617 $40,479 $36,536 $36,114 $144,353 $16,566 $300,665 
Charged-off loans— — (430)— (24,828)(7,649)(32,907)
Recovery of previously charged-off loans14 1,189 1,615 251 8,128 4,648 15,845 
Provision for credit losses on loans(134)13,440 21,653 2,490 20,765 (4,358)53,856 
Balance at June 30, 2023$26,497 $55,108 $59,374 $38,855 $148,418 $9,207 $337,459 
Six months ended June 30, 2022:      
Balance at December 31, 2021$19,618 $58,504 $32,104 $29,429 $112,340 $11,238 $263,233 
Charged-off loans(965)(185)(254)(150)(9,655)(4,476)(15,685)
Recovery of previously charged-off loans334 247 872 149 7,524 2,724 11,850 
Provision for credit losses on loans622 (6,019)1,161 (747)15,563 2,505 13,085 
Balance at June 30, 2022$19,609 $52,547 $33,883 $28,681 $125,772 $11,991 $272,483 
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 June 30, 2023 and December 31, 2022 (in thousands):
Real EstateBusiness AssetsOtherTotal
June 30, 2023
Commercial real estate:
Owner occupied$4,411 $— $— $4,411 
Non-owner occupied2,864 — — 2,864 
Consumer real estate – mortgage21,617 — — 21,617 
Construction and land development195 — — 195 
Commercial and industrial— 18,577 8,830 27,407 
Consumer and other— — — — 
Total $29,087 $18,577 $8,830 $56,494 
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 $50,693 
Modifications
The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty during the six months ended June 30, 2023, disaggregated by class of loans and type of modification granted and describes the financial effect of the modifications made to borrowers experiencing financial difficulty (in thousands):
Payment Delay
Amortized Cost Basis% of Total Loan TypeFinancial Effect
June 30, 2023
Commercial real estate:
Owner occupied$— $— 
Non-owner occupied— — 
Consumer real estate – mortgage— — 
Construction and land development— — 
Commercial and industrial2,401 0.02 %Provided a 90 day forbearance period for payoff
Consumer and other— — 
Total $2,401 
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 June 30, 2023 and December 31, 2022. Also presented is the balance of loans on nonaccrual status at June 30, 2023 for which there was no related allowance for credit losses recorded (in thousands):
June 30, 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$2,714 $— $345 $1,882 $— $— 
Non-owner occupied260 — — 2,244 1,040 — 
Consumer real estate – mortgage18,764 1,299 — 17,330 — — 
Construction and land development130 — — 231 — — 
Commercial and industrial22,375 — 3,980 16,345 8,003 3,663 
Consumer and other46 — 932 84 — 743 
Total$44,289 $1,299 $5,257 $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 June 30, 2023 with the comparative exposures for December 31, 2022 (in thousands):
 June 30, 2023 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2022
Lessors of nonresidential buildings$4,628,530 $1,771,281 $6,399,811 $7,058,045 
Lessors of residential buildings1,627,054 1,455,555 3,082,609 3,725,186 
New Housing For-Sale Builders548,260 943,534 1,491,794 1,763,089 
Music Publishers673,643 511,529 1,185,172 1,127,636