XML 37 R25.htm IDEA: XBRL DOCUMENT v3.25.2
Loans and Allowance for Loan Losses (Tables)
6 Months Ended
Jun. 30, 2025
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at June 30, 2025 and December 31, 2024 were as follows (in thousands):
June 30, 2025December 31, 2024
Commercial real estate:
Owner occupied$4,744,806 $4,388,531
Non-owner occupied8,285,390 8,130,118
Consumer real estate – mortgage5,163,761 4,914,482
Construction and land development3,412,060 3,699,321
Commercial and industrial14,905,306 13,815,817
Consumer and other593,841 537,507
Subtotal$37,105,164 $35,485,776 
Allowance for credit losses(422,125)(414,494)
Loans, net$36,683,039 $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 June 30, 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 six months ended June 30, 2025 (in thousands):
20252024202320222021PriorRevolving LoansTotal
June 30, 2025
Commercial real estate - owner occupied
Pass$603,789 $714,086 $721,981 $1,050,826 $730,981 $741,095 $78,310 $4,641,068 
Special Mention16,161 3,007 5,755 26,677 20,396 14,781 — 86,777 
Substandard (1)
— — 3,924 439 160 196 — 4,719 
Substandard-nonaccrual— 3,940 3,467 1,016 797 3,022 — 12,242 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$619,950 $721,033 $735,127 $1,078,958 $752,334 $759,094 $78,310 $4,744,806 
Current period gross charge-offs$— (111)(95)— — (62)— $(268)
Commercial real estate - non-owner occupied
Pass$1,017,533 $995,011 $787,453 $3,032,350 $1,386,938 $701,196 $159,942 $8,080,423 
Special Mention16,988 7,984 1,603 60,996 35,894 12,710 — 136,175 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual34,470 — 3,975 — 29,681 243 423 68,792 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - non-owner occupied$1,068,991 $1,002,995 $793,031 $3,093,346 $1,452,513 $714,149 $160,365 $8,285,390 
Current period gross charge-offs$— — — — — (93)— $(93)
Consumer real estate – mortgage
Pass$479,551 $325,489 $449,662 $831,803 $921,556 $760,767 $1,353,339 $5,122,167 
Special Mention— — — 3,018 10,370 — — 13,388 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 1,390 5,555 4,390 3,658 11,996 1,217 28,206 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$479,551 $326,879 $455,217 $839,211 $935,584 $772,763 $1,354,556 $5,163,761 
Current period gross charge-offs$— (121)(139)(390)(25)(40)(371)$(1,086)
Construction and land development
Pass$585,085 $852,274 $554,929 $1,045,256 $184,203 $11,918 $63,901 $3,297,566 
Special Mention37,606 3,741 858 — 69,702 — 293 112,200 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual109 467 1,718 — — — — 2,294 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$622,800 $856,482 $557,505 $1,045,256 $253,905 $11,918 $64,194 $3,412,060 
Current period gross charge-offs$— — — — — — — $— 
Commercial and industrial
Pass$2,780,331 $3,354,696 $1,470,286 $1,167,991 $562,655 $375,038 $4,850,673 $14,561,670 
Special Mention15,211 42,651 60,887 26,510 13,543 2,776 94,241 255,819 
Substandard (1)
4,929 791 16,927 17,538 125 126 2,425 42,861 
Substandard-nonaccrual13,194 4,050 9,389 9,111 4,732 1,666 2,814 44,956 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$2,813,665 $3,402,188 $1,557,489 $1,221,150 $581,055 $379,606 $4,950,153 $14,905,306 
Current period gross charge-offs$(55)(3,592)(6,928)(9,502)(4,133)(1,144)(9,098)$(34,452)
Consumer and other
Pass$103,942 $25,754 $18,580 $21,725 $34,264 $18,850 $370,046 $593,161 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual468 — 169 18 — 25 — 680 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$104,410 $25,754 $18,749 $21,743 $34,264 $18,875 $370,046 $593,841 
Current period gross charge-offs$(10)(231)(93)(6)(1,726)(625)(2,440)$(5,131)
20252024202320222021PriorRevolving LoansTotal
Total loans
Pass$5,570,231 $6,267,310 $4,002,891 $7,149,951 $3,820,597 $2,608,864 $6,876,211 $36,296,055 
Special Mention85,966 57,383 69,103 117,201 149,905 30,267 94,534 604,359 
Substandard (1)
4,929 791 20,851 17,977 285 322 2,425 47,580 
Substandard-nonaccrual48,241 9,847 24,273 14,535 38,868 16,952 4,454 157,170 
Doubtful-nonaccrual— — — — — — — — 
Total loans$5,709,367 $6,335,331 $4,117,118 $7,299,664 $4,009,655 $2,656,405 $6,977,624 $37,105,164 
Current period gross charge-offs$(65)(4,055)(7,255)(9,898)(5,884)(1,964)(11,909)$(41,030)
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 $45.8 million at June 30, 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 June 30, 2025 and December 31, 2024 (in thousands):

June 30, 202530-59 days past due60-89 days past due90 days or more past dueTotal
past due
CurrentTotal loans
Commercial real estate:
Owner occupied$3,270 $609 $11,821 $15,700 $4,729,106 $4,744,806 
Non-owner occupied1,368 — 29,765 31,133 8,254,257 8,285,390 
Consumer real estate – mortgage6,175 18,999 16,696 41,870 5,121,891 5,163,761 
Construction and land development— 345 1,691 2,036 3,410,024 3,412,060 
Commercial and industrial14,166 8,189 25,470 47,825 14,857,481 14,905,306 
Consumer and other2,329 1,524 1,226 5,079 588,762 593,841 
Total$27,308 $29,666 $86,669 $143,643 $36,961,521 $37,105,164 
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 and six months ended June 30, 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 June 30, 2025:
Balance at March 31, 2025$39,102 $69,826 $86,447 $30,461 $183,205 $8,421 $417,462 
Charged-off loans(95)(93)(636)— (19,928)(2,306)(23,058)
Recovery of previously charged-off loans185 — 3,075 1,052 4,321 
Provision for credit losses on loans(1,938)(80)1,300 2,292 20,668 1,158 23,400 
Balance at June 30, 2025$37,070 $69,661 $87,296 $32,753 $187,020 $8,325 $422,125 
Three months ended June 30, 2024:      
Balance at March 31, 2024$29,690 $72,581 $75,814 $33,734 $151,172 $8,346 $371,337 
Charged-off loans(8,810)(1,081)(39)— (15,961)(2,911)(28,802)
Recovery of previously charged-off loans125 14 437 3,927 1,402 5,907 
Provision for credit losses on loans8,842 7,450 4,035 (3,701)14,876 1,657 33,159 
Balance at June 30, 2024$29,847 $78,964 $80,247 $30,035 $154,014 $8,494 $381,601 
Six months ended June 30, 2025:      
Balance at December 31, 2024$36,997 $80,654 $80,042 $33,620 $174,799 $8,382 $414,494 
Charged-off loans(268)(93)(1,086)— (34,452)(5,131)(41,030)
Recovery of previously charged-off loans14 18 408 5,342 2,517 8,301 
Provision for credit losses on loans327 (10,918)7,932 (869)41,331 2,557 40,360 
Balance at June 30, 2025$37,070 $69,661 $87,296 $32,753 $187,020 $8,325 $422,125 
Six months ended June 30, 2024:      
Balance at December 31, 2023$28,690 $57,687 $71,354 $39,142 $148,212 $7,970 $353,055 
Charged-off loans(8,904)(3,081)(662)— (30,769)(6,218)(49,634)
Recovery of previously charged-off loans142 28 681 6,749 2,915 10,524 
Provision for credit losses on loans9,919 24,330 8,874 (9,116)29,822 3,827 67,656 
Balance at June 30, 2024$29,847 $78,964 $80,247 $30,035 $154,014 $8,494 $381,601 
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, 2025 and December 31, 2024 (in thousands):
Real EstateBusiness AssetsOtherTotal
June 30, 2025
Commercial real estate:
Owner occupied$14,695 $— $— $14,695 
Non-owner occupied71,209 — — 71,209 
Consumer real estate – mortgage30,486 — — 30,486 
Construction and land development2,344 — — 2,344 
Commercial and industrial— 48,255 829 49,084 
Consumer and other— — 187 187 
Total $118,734 $48,255 $1,016 $168,005 
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 and six months ended June 30, 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 June 30, 2025
Term ExtensionCombination¹
Amortized Cost Basis% of Total Loan TypeAmortized Cost Basis% of Total Loan Type
Commercial real estate:
Owner occupied$— — %$— — %
Non-owner occupied— — %34,469 0.42 %
Consumer real estate – mortgage— — %— — %
Construction and land development— — %— — %
Commercial and industrial4,088 0.03 %— — %
Consumer and other— — %— — %
Total $4,088 $34,469 
¹ The combination includes a payment delay and term extension.

Six months ended June 30, 2025
Term ExtensionCombination¹
Amortized Cost Basis% of Total Loan TypeAmortized Cost Basis% of Total Loan Type
Commercial real estate:
Owner occupied$— — %$— — %
Non-owner occupied— — %34,469 0.42 %
Consumer real estate – mortgage— — %— — %
Construction and land development— — %— — %
Commercial and industrial7,721 0.05 %— — %
Consumer and other— — %— — %
Total $7,721 $34,469 
¹ The combination includes a payment delay and term extension.


Three months ended June 30, 2025
Financial Effect
Term Extension:
Commercial and industrialAdded a weighted average 0.23 years to the term of the modified loans
Combination:
Commercial real estate - non-owner occupiedImplemented interest only payments until loan maturity and added a weighted average .49 years to the term
Six months ended June 30, 2025
Financial Effect
Term Extension:
Commercial and industrialAdded a weighted average 0.35 years to the term of the modified loans
Combination:
Commercial real estate - non-owner occupiedImplemented interest only payments until loan maturity and added a weighted average .49 years to the term

Three months ended June 30, 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 industrial18,715 0.15 %Added a weighted average 0.51 years to the term of the modified loans
Consumer and other— — %
Total $18,715 
Six months ended June 30, 2024
Term Extension
Amortized Cost Basis% of Total Loan TypeFinancial Effect
Commercial real estate:
Owner occupied$— — %
Non-owner occupied— — %
Consumer real estate – mortgage— — %
Construction and land development— — %
Commercial and industrial18,715 0.15 %Added a weighted average 0.92 years to the term of the modified loans
Consumer and other— — %
Total $18,715 

No loans that were previously modified and subsequently defaulted were charged off during the six months ended June 30, 2025. Pinnacle Financial charged off $2.8 million of owner occupied commercial real estate and $1.1 million of non-owner occupied commercial real estate loans that were previously modified and subsequently defaulted during the six months ended June 30, 2024. During the six months ended June 30, 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 six months ended June 30, 2024, subsequent to being granted a modification in the prior twelve months:

Six months ended June 30, 2024
Payment DelayTerm ExtensionCombinationTotal
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 $— $18,827 
The table below presents the aging of past due balances as of June 30, 2025 and June 30, 2024 of loans made to borrowers experiencing financial difficulty that were modified in the previous twelve months:
June 30, 202530-59 days past due60-89 days past due90 days or more past dueCurrentTotal modified loans
Commercial real estate:
Owner occupied$— $— $— $— $— 
Non-owner occupied— — — 34,469 34,469 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — — 19,647 19,647 
Consumer and other— — — — — 
Total$— $— $— $54,116 $54,116 
June 30, 2024
Commercial real estate:
Owner occupied$— $— $— $— $— 
Non-owner occupied— — — 13,483 13,483 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — 3,226 18,715 21,941 
Consumer and other— — — — — 
Total$— $— $3,226 $32,198 $35,424 
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, 2025 and December 31, 2024. Also presented is the balance of loans on nonaccrual status at June 30, 2025 and December 31, 2024 for which there was no related allowance for credit losses recorded (in thousands):
June 30, 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$12,242 $5,417 $— $13,747 $6,614 $— 
Non-owner occupied68,792 3,975 — 44,263 4,152 — 
Consumer real estate – mortgage28,206 — 633 38,222 1,376 23 
Construction and land development2,294 319 — 2,387 319 — 
Commercial and industrial44,956 1,515 3,261 48,575 19,715 2,873 
Consumer and other680 — 758 631 — 619 
Total$157,170 $11,226 $4,652 $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 June 30, 2025 with the comparative exposures for December 31, 2024 (in thousands):
 June 30, 2025 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2024
Lessors of nonresidential buildings$4,666,080 $1,047,600 $5,713,680 $5,439,776 
Lessors of residential buildings2,331,534 505,820 2,837,354 2,871,227 
New Housing For-Sale Builders569,213 892,547 1,461,760 1,394,494 
Music Publishers869,544 457,952 1,327,496 1,114,105