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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2023
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at December 31, 2023 and 2022 were as follows (in thousands):
December 31, 2023December 31, 2022
Commercial real estate:
Owner-occupied$4,044,896$3,587,257
Non-owner occupied7,535,4946,542,619
Consumer real estate – mortgage4,851,5314,435,046
Construction and land development4,041,0813,679,498
Commercial and industrial11,666,69110,241,362
Consumer and other536,398555,823
Subtotal$32,676,091 $29,041,605 
Allowance for credit losses(353,055)(300,665)
Loans, net$32,323,036 $28,740,940 
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, 2023 (in thousands):

December 31, 202320232022202120202019PriorRevolving LoansTotal
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 $4,044,896 
Current period gross charge-offs$— — — — — — — $— 
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 $7,535,494 
Current period gross charge-offs$— — — — — — — $— 
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 $4,851,531 
Current period gross charge-offs$— (225)(91)(6)(89)(472)— $(883)
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 $4,041,081 
Current period gross charge-offs$— — — — — (3)— $(3)
December 31, 202320232022202120202019PriorRevolving LoansTotal
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 
Total Commercial and industrial$3,810,029 $2,132,715 $1,166,447 $326,263 $216,020 $154,416 $3,860,801 $11,666,691 
Current period gross charge-offs$(3,428)(24,114)(13,857)(3,309)(111)(455)(15,268)$(60,542)
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 $536,398 
Current period gross charge-offs$(151)(629)(6,377)(2,808)(235)(110)(4,987)$(15,297)
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 $32,676,091 
Current period gross charge-offs$(3,579)$(24,968)$(20,325)$(6,123)$(435)$(1,040)$(20,255)$(76,725)
(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 $127.4 million at December 31, 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 December 31, 2023 and December 31, 2022 (in thousands):
30-59 days past due60-89 days past due90 days or more past dueTotal past dueCurrentTotal loans
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 
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 on loans from December 31, 2020 to December 31, 2021 to December 31, 2022 to December 31, 2023 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 otherTotal
Allowance for Credit Losses:      
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 credit losses on loans(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 credit losses on loans6,330 (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 
Charged-off loans— — (883)(3)(60,542)(15,297)(76,725)
Recovery of previously charged-off loans76 1,632 2,114 338 15,556 8,403 28,119 
Provision for credit losses on loans1,997 15,576 33,587 2,693 48,845 (1,702)100,996 
Balance at December 31, 2023$28,690 $57,687 $71,354 $39,142 $148,212 $7,970 $353,055 
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, 2023 and December 31, 2022 (in thousands):
Real EstateBusiness AssetsOtherTotal
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 
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 
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, 2023 and 2022. Also presented is the balance of loans on nonaccrual status at December 31, 2023 and 2022 for which there was no related allowance for credit losses recorded (in thousands):
December 31, 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$3,452 $122 $— $1,882 $— $— 
Non-owner occupied41,343 40,669 — 2,244 1,040 — 
Consumer real estate – mortgage17,879 — 781 17,330 — — 
Construction and land development608 — — 231 — — 
Commercial and industrial18,931 519 3,802 16,345 8,003 3,663 
Consumer and other75 — 1,421 84 — 743 
Total$82,288 $41,310 $6,004 $38,116 $9,043 $4,406 
Modifications
The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty at December 31, 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):
December 31, 2023
Payment DelayTerm ExtensionCombination¹
Total%Total%Total%Total
Commercial real estate:
Owner-occupied— — %5,528 0.14 %— — %5,528 
Non-owner occupied12,244 0.16 %— — %13,479 0.18 %25,723 
Consumer real estate – mortgage— — %— — %— — %— 
Construction and land development— — %— — %— — %— 
Commercial and industrial— — %3,226 0.03 %— — %3,226 
Consumer and other— — %— — %— — %— 
 12,244 8,754 13,479 34,477 
¹ The combination includes payment delay, term extension, and an interest rate reduction
December 31, 2023
Financial Effect
Payment Delay:
Non-owner occupiedImplemented interest-only payments until loan maturity
Term Extension:
Owner OccupiedAdded a weighted average 0.46 years to the term of the modified loans
Commercial and industrialAdded a weighted average 0.25 years to the term of the modified loans
Combination:
Non-owner OccupiedReduced weighted average contractual interest rate by 0.55%, added a weighted average 2 years to the term, and implemented an alternative payment schedule until loan maturity
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, 2023 with the comparative exposures for December 31, 2022 (in thousands):
 At December 31, 2023
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2022
Lessors of nonresidential buildings$4,674,176 $1,242,159 $5,916,335 $7,058,045 
Lessors of residential buildings2,028,622 1,150,419 3,179,041 3,725,186 
New housing for-sale builders577,090 819,563 1,396,653 1,763,089 
Music publishers787,407 432,374 1,219,781 1,127,636 
Total$8,067,295 $3,644,515 $11,711,810 $13,673,956