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Loans and Allowance for Loan Losses (Tables)
 12 Months Ended
Dec. 31, 2024
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at December 31, 2024 and 2023 were as follows (in thousands):
December 31, 2024December 31, 2023
Commercial real estate:
Owner-occupied$4,388,531$4,044,896
Non-owner occupied8,130,1187,535,494
Consumer real estate – mortgage4,914,4824,851,531
Construction and land development3,699,3214,041,081
Commercial and industrial13,815,81711,666,691
Consumer and other537,507536,398
Subtotal$35,485,776 $32,676,091 
Allowance for credit losses(414,494)(353,055)
Loans, net$35,071,282 $32,323,036 
Summary of Amount of Each Loan Classification, Categorized into Each Risk Rating Class
The following tables present loan balances classified within each risk rating category by primary loan type and year of origination or most recent renewal as of December 31, 2024 and 2023, as well as the gross loan charge-offs by primary loan type and year of origination or most recent renewal for the years ended December 31, 2024 and 2023 (in thousands):

December 31, 202420242023202220212020PriorRevolving LoansTotal
Commercial real estate- owner occupied
Pass$759,519 $771,996 $1,064,314 $784,688 $432,886 $439,607 $67,023 $4,320,033 
Special Mention16,638 — 14,231 3,192 9,582 5,032 — 48,675 
Substandard (1)
599 3,983 900 337 59 198 — 6,076 
Substandard-nonaccrual3,944 5,393 — 1,003 1,780 1,627 — 13,747 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$780,700 $781,372 $1,079,445 $789,220 $444,307 $446,464 $67,023 $4,388,531 
Current period gross charge-offs$— (3,308)(4,480)(1,522)— (94)— $(9,404)
Commercial real estate- Non-owner occupied
Pass$1,273,096 $862,747 $3,040,361 $1,789,729 $474,094 $449,924 $124,971 $8,014,922 
Special Mention5,970 — 31,783 29,828 1,525 1,827 — 70,933 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 4,627 114 38,456 — 1,066 — 44,263 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - Non-owner occupied$1,279,066 $867,374 $3,072,258 $1,858,013 $475,619 $452,817 $124,971 $8,130,118 
Current period gross charge-offs$(1,347)(9,331)— (2,000)— — — $(12,678)
Consumer real estate – mortgage
Pass$397,681 $487,027 $879,118 $972,489 $397,775 $428,832 $1,312,971 $4,875,893 
Special Mention— — — 367 — — — 367 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual395 6,146 6,918 6,588 1,810 14,720 1,645 38,222 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$398,076 $493,173 $886,036 $979,444 $399,585 $443,552 $1,314,616 $4,914,482 
Current period gross charge-offs$— (166)(533)(148)(42)(83)(126)$(1,098)
Construction and land development
Pass$1,052,892 $586,930 $1,589,567 $347,539 $7,415 $7,992 $77,014 $3,669,349 
Special Mention2,464 — — 25,121 — — — 27,585 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual475 1,912 — — — — — 2,387 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,055,831 $588,842 $1,589,567 $372,660 $7,415 $7,992 $77,014 $3,699,321 
Current period gross charge-offs$— — — — (10)— — $(10)
Commercial and industrial
Pass$4,334,110 $1,877,507 $1,553,642 $782,366 $223,143 $232,580 $4,441,222 $13,444,570 
Special Mention60,125 99,687 44,986 2,519 714 677 73,126 281,834 
Substandard (1)
5,998 2,624 18,843 5 17 8,693 4,658 40,838 
Substandard-nonaccrual2,838 11,226 12,311 19,228 554 767 1,651 48,575 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial and industrial$4,403,071 $1,991,044 $1,629,782 $804,118 $224,428 $242,717 $4,520,657 $13,815,817 
Current period gross charge-offs$(1,600)(11,616)(15,854)(15,012)(1,496)(1,437)(16,237)$(63,252)
Consumer and other
Pass$109,143 $26,333 $27,121 $43,271 $24,089 $663 $306,256 $536,876 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual541 — 25 39 — — 26 631 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$109,684 $26,333 $27,146 $43,310 $24,089 $663 $306,282 $537,507 
Current period gross charge-offs$(91)(717)(279)(4,314)(1,923)(262)(5,177)$(12,763)
Total loans
December 31, 202420242023202220212020PriorRevolving LoansTotal
Pass$7,926,441 $4,612,540 $8,154,123 $4,720,082 $1,559,402 $1,559,598 $6,329,457 $34,861,643 
Special Mention85,197 99,687 91,000 61,027 11,821 7,536 73,126 429,394 
Substandard (1)
6,597 6,607 19,743 342 76 8,891 4,658 46,914 
Substandard-nonaccrual8,193 29,304 19,368 65,314 4,144 18,180 3,322 147,825 
Doubtful-nonaccrual— — — — — — — — 
Total loans$8,026,428 $4,748,138 $8,284,234 $4,846,765 $1,575,443 $1,594,205 $6,410,563 $35,485,776 
Current period gross charge-offs$(3,038)$(25,138)$(21,146)$(22,996)$(3,471)$(1,876)$(21,540)$(99,205)
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 $4,044,896 
Prior period gross write-offs$— — — — — — — $— 
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 $7,535,494 
Prior period gross write-offs$— — — — — — — $— 
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 $4,851,531 
Prior period gross write-offs$— (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 $4,041,081 
Prior period gross write-offs$— — — — — (3)— $(3)
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 $11,666,691 
Prior period gross write-offs$(3,428)(24,114)(13,857)(3,309)(111)(455)(15,268)$(60,542)
December 31, 202320232022202120202019PriorRevolving LoansTotal
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 $536,398 
Prior period gross write-offs$(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 $32,676,091 
Prior period gross write-offs$(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 $46.9 million at December 31, 2024, compared to $127.4 million at December 31, 2023
Past Due Balances by Loan Classification
The table below presents the aging of past due balances by loan segment at December 31, 2024 and 2023 (in thousands):

30-59 days past due60-89 days past due90 days or more past dueTotal past dueCurrentTotal loans
December 31, 2024
Commercial real estate:
Owner-occupied$7,857 $2,726 $10,089 $20,672 $4,367,859 $4,388,531 
Non-owner occupied1,217 — 39,469 40,686 8,089,432 8,130,118 
Consumer real estate – mortgage19,986 1,621 20,615 42,222 4,872,260 4,914,482 
Construction and land development125 — 1,541 1,666 3,697,655 3,699,321 
Commercial and industrial15,992 8,515 31,077 55,584 13,760,233 13,815,817 
Consumer and other2,592 1,500 1,160 5,252 532,255 537,507 
Total$47,769 $14,362 $103,951 $166,082 $35,319,694 $35,485,776 
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 
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, 2021 to December 31, 2022 to December 31, 2023 to December 31, 2024 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, 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 
Initial allowance on loans purchased with credit deterioration2,815 — 543 — 10,757 — 14,115 
Charged-off loans(9,404)(12,678)(1,098)(10)(63,252)(12,763)(99,205)
Recovery of previously charged-off loans162 48 1,067 9 13,540 6,114 20,940 
Provision for credit losses on loans14,734 35,597 8,176 (5,521)65,542 7,061 125,589 
Balance at December 31, 2024$36,997 $80,654 $80,042 $33,620 $174,799 $8,382 $414,494 
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, 2024 and 2023 (in thousands):

Real EstateBusiness AssetsOtherTotal
December 31, 2024
Commercial real estate:
Owner-occupied$17,486 $— $— $17,486 
Non-owner occupied46,745 — — 46,745 
Consumer real estate – mortgage40,795 — — 40,795 
Construction and land development2,441 — — 2,441 
Commercial and industrial— 63,626 752 64,378 
Consumer and other— — 23 23 
Total$107,467 $63,626 $775 $171,868 
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 
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, 2024 and 2023. Also presented is the balance of loans on nonaccrual status at December 31, 2024 and 2023 for which there was no related allowance for credit losses recorded (in thousands):
December 31, 2024December 31, 2023
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$13,747 $6,614 $— $3,452 $122 $— 
Non-owner occupied44,263 4,152 — 41,343 40,669 — 
Consumer real estate – mortgage38,222 1,376 23 17,879 — 781 
Construction and land development2,387 319 — 608 — — 
Commercial and industrial48,575 19,715 2,873 18,931 519 3,802 
Consumer and other631 — 619 75 — 1,421 
Total$147,825 $32,176 $3,515 $82,288 $41,310 $6,004 
Modifications
The following tables show the amortized cost basis of the loans modified to borrowers experiencing financial difficulty during the years ended December 31, 2024 and 2023, disaggregated by class of loans and type of modification granted and describes the financial effect of the modifications made to borrowers experiencing financial difficulty (in thousands):
December 31, 2024
Combination
Amortized Cost Basis% of Total Loan TypeFinancial Effect
Commercial real estate:
Owner occupied$— — %
Non-owner occupied— — %
Consumer real estate – mortgage— — %
Construction and land development— — %
Commercial and industrial14,777 0.11 %Reduced the weighted average contractual interest rate by 0.5% and added a weighted average 1.92 years to the term
Consumer and other— — %
Total $14,777 
December 31, 2023
Payment DelayTerm ExtensionCombination¹
Amortized Cost Basis% of Total Loan TypeAmortized Cost Basis% of Total Loan TypeAmortized Cost Basis% of Total Loan TypeTotal
Commercial real estate:
Owner-occupied$— — %$5,528 0.14 %$— — %$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

During the year ended December 31, 2024, no loans experienced a payment default subsequent to being granted a modification in the prior twelve months. Pinnacle Financial charged off $2.8 million of owner occupied commercial real estate loans and $10.4 million of non-owner occupied commercial real estate loans that were previously modified during the year ended December 31, 2023 and subsequently defaulted during the year ended December 31, 2024.
The table below presents the aging of past due balances as of December 31, 2024 and 2023 of loans made to borrowers experiencing financial difficulty that were modified in the previous twelve months:
December 31, 202430-59 days past due60-89 days past due90 days or more past dueCurrentTotal modified loans
Commercial real estate:
Owner occupied$— $— $— $— $— 
Non-owner occupied— — — — — 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — — 14,777 14,777 
Consumer and other— — — — — 
Total$— $— $— $14,777 $14,777 
December 31, 202330-59 days past due60-89 days past due90 days or more past dueCurrentTotal modified loans
Commercial real estate:
Owner occupied$— $— $— $5,528 $5,528 
Non-owner occupied— — — 25,723 25,723 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— 3,226 — — 3,226 
Consumer and other— — — — — 
Total$— $3,226 $— $31,251 $34,477 
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, 2024 with the comparative exposures at December 31, 2023 (in thousands):
 At December 31, 2024
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2023
Lessors of nonresidential buildings$4,623,927 $815,849 $5,439,776 $5,916,335 
Lessors of residential buildings2,389,231 481,996 2,871,227 3,179,041 
New housing for-sale builders574,998 819,496 1,394,494 1,396,653 
Music publishers786,104 328,001 1,114,105 1,219,781 
Total$8,374,260 $2,445,342 $10,819,602 $11,711,810 
Purchased Loans, BHG
During the year ended December 31, 2024, Pinnacle Bank purchased loans from BHG, for which there was, at acquisition, evidence of more than insignificant deterioration of credit quality since origination. See Note 2. Equity Method Investment for additional details on such purchase. The following table denotes the carrying amount of those loans (in thousands):

December 31, 2024
Purchase price of loans at acquisition$24,157 
Allowance for credit losses at acquisition14,115 
Non-credit discount/(premium) at acquisition— 
Par value of acquired loans at acquisition$10,042