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Loans and Allowance for Loan Losses (Tables)
3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at March 31, 2025 and December 31, 2024 were as follows (in thousands):
March 31, 2025December 31, 2024
Commercial real estate:
Owner occupied$4,594,376 $4,388,531
Non-owner occupied8,338,098 8,130,118
Consumer real estate – mortgage4,977,358 4,914,482
Construction and land development3,525,860 3,699,321
Commercial and industrial14,131,312 13,815,817
Consumer and other569,742 537,507
Subtotal$36,136,746 $35,485,776 
Allowance for credit losses(417,462)(414,494)
Loans, net$35,719,284 $35,071,282 
Loan Classification Categorized by Risk Rating Category
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 March 31, 2025 and December 31, 2024, as well as the gross loan charge-offs by primary loan type and year of origination or most recent renewal for the three months ended March 31, 2025 (in thousands):
20252024202320222021PriorRevolving LoansTotal
March 31, 2025
Commercial real estate - owner occupied
Pass$270,827 $778,636 $770,986 $1,043,020 $762,808 $812,956 $70,635 $4,509,868 
Special Mention— 10,256 12,279 22,041 4,193 16,044 — 64,813 
Substandard (1)
— — 3,953 897 160 197 — 5,207 
Substandard-nonaccrual— 3,951 4,956 575 1,151 3,855 — 14,488 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$270,827 $792,843 $792,174 $1,066,533 $768,312 $833,052 $70,635 $4,594,376 
Current period gross charge-offs$— (111)— — — (62)— $(173)
Commercial real estate - non-owner occupied
Pass$445,318 $1,149,465 $838,286 $3,163,570 $1,579,816 $803,024 $128,755 $8,108,234 
Special Mention— 5,912 1,610 73,967 65,573 12,818 — 159,880 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— — 4,090 34,466 29,874 1,120 434 69,984 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - non-owner occupied$445,318 $1,155,377 $843,986 $3,272,003 $1,675,263 $816,962 $129,189 $8,338,098 
Current period gross charge-offs$— — — — — — — $— 
Consumer real estate – mortgage
Pass$173,764 $364,988 $473,240 $860,568 $943,317 $791,731 $1,322,635 $4,930,243 
Special Mention— — — 2,697 10,458 — — 13,155 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual110 692 6,820 6,221 4,787 14,097 1,233 33,960 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$173,874 $365,680 $480,060 $869,486 $958,562 $805,828 $1,323,868 $4,977,358 
Current period gross charge-offs$— — (50)(29)(25)(40)(306)$(450)
Construction and land development
Pass$269,220 $923,846 $559,236 $1,333,106 $262,128 $13,963 $82,436 $3,443,935 
Special Mention8,395 2,229 858 — 68,185 — 79,673 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 471 1,781 — — — — 2,252 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$277,615 $926,546 $561,875 $1,333,106 $330,313 $13,963 $82,442 $3,525,860 
Current period gross charge-offs$— — — — — — — $— 
Commercial and industrial
Pass$1,518,057 $3,610,503 $1,667,177 $1,409,099 $626,476 $408,601 $4,548,322 $13,788,235 
Special Mention14,990 46,746 65,882 25,625 13,876 879 71,267 239,265 
Substandard (1)
4,354 1,099 17,082 18,043 77 8,840 4,190 53,685 
Substandard-nonaccrual335 2,418 14,806 11,420 18,118 1,600 1,430 50,127 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$1,537,736 $3,660,766 $1,764,947 $1,464,187 $658,547 $419,920 $4,625,209 $14,131,312 
Current period gross charge-offs$— (1,818)(3,140)(3,290)(856)(346)(5,074)$(14,524)
Consumer and other
Pass$83,960 $38,088 $21,966 $24,181 $38,707 $21,929 $340,152 $568,983 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual513 40 184 22 — — — 759 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$84,473 $38,128 $22,150 $24,203 $38,707 $21,929 $340,152 $569,742 
Current period gross charge-offs$— (55)(57)— (1,040)(316)(1,357)$(2,825)
20252024202320222021PriorRevolving LoansTotal
Total loans
Pass$2,761,146 $6,865,526 $4,330,891 $7,833,544 $4,213,252 $2,852,204 $6,492,935 $35,349,498 
Special Mention23,385 65,143 80,629 124,330 162,285 29,741 71,273 556,786 
Substandard (1)
4,354 1,099 21,035 18,940 237 9,037 4,190 58,892 
Substandard-nonaccrual958 7,572 32,637 52,704 53,930 20,672 3,097 171,570 
Doubtful-nonaccrual— — — — — — — — 
Total loans$2,789,843 $6,939,340 $4,465,192 $8,029,518 $4,429,704 $2,911,654 $6,571,495 $36,136,746 
Current period gross charge-offs$— (1,984)(3,247)(3,319)(1,921)(764)(6,737)$(17,972)
20242023202220212020PriorRevolving LoansTotal
December 31, 2024
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 
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 
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 
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 
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 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 
20242023202220212020PriorRevolving LoansTotal
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 
Total loans
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 
(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 $54.3 million at March 31, 2025, compared to $46.9 million at December 31, 2024.
Past Due Balances by Loan Classification
The table below presents the aging of past due balances by loan segment at March 31, 2025 and December 31, 2024 (in thousands):

March 31, 202530-59 days past due60-89 days past due90 days or more past dueTotal
past due
CurrentTotal loans
Commercial real estate:
Owner occupied$3,385 $1,011 $13,455 $17,851 $4,576,525 $4,594,376 
Non-owner occupied86 86 30,669 30,841 8,307,257 8,338,098 
Consumer real estate – mortgage13,891 4,577 15,907 34,375 4,942,983 4,977,358 
Construction and land development— 249 1,747 1,996 3,523,864 3,525,860 
Commercial and industrial18,099 8,220 33,066 59,385 14,071,927 14,131,312 
Consumer and other3,335 2,324 1,417 7,076 562,666 569,742 
Total$38,796 $16,467 $96,261 $151,524 $35,985,222 $36,136,746 
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 
Details of Changes in the Allowance for Loan Losses
The following table details the changes in the allowance for credit losses for the three months ended March 31, 2025 and 2024, 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 March 31, 2025:      
Balance at December 31, 2024$36,997 $80,654 $80,042 $33,620 $174,799 $8,382 $414,494 
Charged-off loans(173)— (450)— (14,524)(2,825)(17,972)
Recovery of previously charged-off loans13 10 223 2,267 1,465 3,980 
Provision for credit losses on loans2,265 (10,838)6,632 (3,161)20,663 1,399 16,960 
Balance at March 31, 2025$39,102 $69,826 $86,447 $30,461 $183,205 $8,421 $417,462 
Three months ended March 31, 2024:      
Balance at December 31, 2023$28,690 $57,687 $71,354 $39,142 $148,212 $7,970 $353,055 
Charged-off loans(94)(2,000)(623)— (14,808)(3,307)(20,832)
Recovery of previously charged-off loans17 14 244 2,822 1,513 4,617 
Provision for credit losses on loans1,077 16,880 4,839 (5,415)14,946 2,170 34,497 
Balance at March 31, 2024$29,690 $72,581 $75,814 $33,734 $151,172 $8,346 $371,337 
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 March 31, 2025 and December 31, 2024 (in thousands):
Real EstateBusiness AssetsOtherTotal
March 31, 2025
Commercial real estate:
Owner occupied$17,358 $— $— $17,358 
Non-owner occupied72,438 — — 72,438 
Consumer real estate – mortgage36,418 — — 36,418 
Construction and land development2,304 — — 2,304 
Commercial and industrial— 48,797 709 49,506 
Consumer and other— — 205 205 
Total $128,518 $48,797 $914 $178,229 
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 
Modifications
The following table shows the amortized cost basis of the loans modified to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024, 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):

Three months ended March 31, 2025
Term Extension
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 industrial4,567 0.03 %Added a weighted average 0.46 years to the term of the modified loans
Consumer and other— — %
Total $4,567 

Three months ended March 31, 2024
Term Extension
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 industrial19,208 0.16 %Added a weighted average 0.41 years to the term of the modified loans
Consumer and other— — %
Total $19,208 

No loans that were previously modified and subsequently defaulted were charged off during the three months ended March 31, 2025 and 2024. During the three months ended March 31, 2025, no loans experienced a payment default subsequent to being granted a modification in the prior twelve months. The following table shows loans that experienced a payment default during the three months ended March 31, 2024, subsequent to being granted a modification in the prior twelve months:
Three months ended March 31, 2024
Payment DelayTerm ExtensionTotal
Commercial real estate:
Owner occupied$— $5,529 $5,529 
Non-owner occupied13,298 — 13,298 
Consumer real estate – mortgage— — — 
Construction and land development— — — 
Commercial and industrial— — — 
Consumer and other— — — 
Total $13,298 $5,529 $18,827 
The table below presents the aging of past due balances as of March 31, 2025 and March 31, 2024 of loans made to borrowers experiencing financial difficulty that were modified in the previous twelve months:
March 31, 202530-59 days past due60-89 days past due90 days or more past dueCurrentTotal modified loans
Commercial real estate:
Owner occupied$— $— $— $— $— 
Non-owner occupied— — — — — 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — — 19,119 19,119 
Consumer and other— — — — — 
Total$— $— $— $19,119 $19,119 
March 31, 2024
Commercial real estate:
Owner occupied$— $5,529 $— $— $5,529 
Non-owner occupied— — — 26,780 26,780 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — 3,226 19,209 22,435 
Consumer and other— — — — — 
Total$— $5,529 $3,226 $45,989 $54,744 
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 March 31, 2025 and December 31, 2024. Also presented is the balance of loans on nonaccrual status at March 31, 2025 and December 31, 2024 for which there was no related allowance for credit losses recorded (in thousands):
March 31, 2025December 31, 2024
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$14,488 $5,417 $177 $13,747 $6,614 $— 
Non-owner occupied69,984 4,090 — 44,263 4,152 — 
Consumer real estate – mortgage33,960 1,386 476 38,222 1,376 23 
Construction and land development2,252 319 — 2,387 319 — 
Commercial and industrial50,127 1,525 2,964 48,575 19,715 2,873 
Consumer and other759 — 720 631 — 619 
Total$171,570 $12,737 $4,337 $147,825 $32,176 $3,515 
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 March 31, 2025 with the comparative exposures for December 31, 2024 (in thousands):
 March 31, 2025 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2024
Lessors of nonresidential buildings$4,675,803 $936,311 $5,612,114 $5,439,776 
Lessors of residential buildings2,366,436 429,337 2,795,773 2,871,227 
New Housing For-Sale Builders580,278 862,720 1,442,998 1,394,494 
Music Publishers903,837 431,925 1,335,762 1,114,105