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Loans and Allowance for Loan Losses (Tables)
9 Months Ended
Sep. 30, 2025
Receivables [Abstract]  
Schedule of Accounts, Notes, Loans and Financing Receivable
Loans at September 30, 2025 and December 31, 2024 were as follows (in thousands):
September 30, 2025December 31, 2024
Commercial real estate:
Owner occupied$4,904,462 $4,388,531
Non-owner occupied8,088,289 8,130,118
Consumer real estate – mortgage5,373,110 4,914,482
Construction and land development3,389,451 3,699,321
Commercial and industrial15,570,921 13,815,817
Consumer and other606,380 537,507
Subtotal$37,932,613 $35,485,776 
Allowance for credit losses(434,450)(414,494)
Loans, net$37,498,163 $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 September 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 nine months ended September 30, 2025 (in thousands):
20252024202320222021PriorRevolving LoansTotal
September 30, 2025
Commercial real estate - owner occupied
Pass$964,452 $680,927 $694,284 $1,028,920 $697,631 $667,746 $75,121 $4,809,081 
Special Mention15,442 296 10,906 6,241 4,347 27,076 — 64,308 
Substandard (1)
— — 3,892 437 15,922 194 — 20,445 
Substandard-nonaccrual— 2,594 3,467 558 612 3,397 — 10,628 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - owner occupied$979,894 $683,817 $712,549 $1,036,156 $718,512 $698,413 $75,121 $4,904,462 
Current period gross charge-offs$— (350)(95)— — (157)— $(602)
Commercial real estate - non-owner occupied
Pass$1,370,688 $880,347 $733,968 $2,895,313 $1,262,785 $610,634 $153,067 $7,906,802 
Special Mention5,703 4,778 1,595 21,327 68,571 12,098 — 114,072 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual34,469 — 3,860 — 29,086 — — 67,415 
Doubtful-nonaccrual— — — — — — — — 
Total Commercial real estate - non-owner occupied$1,410,860 $885,125 $739,423 $2,916,640 $1,360,442 $622,732 $153,067 $8,088,289 
Current period gross charge-offs$— — — — (222)(93)— $(315)
Consumer real estate – mortgage
Pass$771,004 $306,403 $433,085 $806,229 $908,469 $733,514 $1,383,277 $5,341,981 
Special Mention— — 378 2,657 355 — 395 3,785 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual180 2,236 4,162 5,555 2,299 11,744 1,168 27,344 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer real estate – mortgage$771,184 $308,639 $437,625 $814,441 $911,123 $745,258 $1,384,840 $5,373,110 
Current period gross charge-offs$— (121)(591)(389)(72)(34)(500)$(1,707)
Construction and land development
Pass$990,064 $754,198 $524,412 $801,520 $156,418 $10,130 $76,828 $3,313,570 
Special Mention72,186 1,514 — — — — 73,701 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual— 461 1,326 — — 393 — 2,180 
Doubtful-nonaccrual— — — — — — — — 
Total Construction and land development$1,062,250 $756,173 $525,738 $801,520 $156,418 $10,523 $76,829 $3,389,451 
Current period gross charge-offs$— — (274)— — — — $(274)
Commercial and industrial
Pass$3,992,780 $3,039,553 $1,287,364 $1,038,523 $503,326 $340,279 $4,970,827 $15,172,652 
Special Mention15,213 58,744 61,615 28,325 14,302 2,291 117,890 298,380 
Substandard (1)
10,622 336 15,598 17,010 47 110 14,712 58,435 
Substandard-nonaccrual10,650 2,705 11,014 9,642 4,425 1,165 1,853 41,454 
Doubtful-nonaccrual— — — — — — — — 
 Total Commercial and industrial$4,029,265 $3,101,338 $1,375,591 $1,093,500 $522,100 $343,845 $5,105,282 $15,570,921 
Current period gross charge-offs$(3,010)(5,282)(8,683)(12,518)(5,998)(1,494)(15,634)$(52,619)
Consumer and other
Pass$127,791 $19,461 $15,552 $19,910 $29,992 $15,861 $377,151 $605,718 
Special Mention— — — — — — — — 
Substandard (1)
— — — — — — — — 
Substandard-nonaccrual507 — — 16 119 — 20 662 
Doubtful-nonaccrual— — — — — — — — 
Total Consumer and other$128,298 $19,461 $15,552 $19,926 $30,111 $15,861 $377,171 $606,380 
Current period gross charge-offs$(61)(272)(107)(20)(2,274)(1,124)(3,743)$(7,601)
20252024202320222021PriorRevolving LoansTotal
Total loans
Pass$8,216,779 $5,680,889 $3,688,665 $6,590,415 $3,558,621 $2,378,164 $7,036,271 $37,149,804 
Special Mention108,544 65,332 74,494 58,550 87,575 41,465 118,286 554,246 
Substandard (1)
10,622 336 19,490 17,447 15,969 304 14,712 78,880 
Substandard-nonaccrual45,806 7,996 23,829 15,771 36,541 16,699 3,041 149,683 
Doubtful-nonaccrual— — — — — — — — 
Total loans$8,381,751 $5,754,553 $3,806,478 $6,682,183 $3,698,706 $2,436,632 $7,172,310 $37,932,613 
Current period gross charge-offs$(3,071)(6,025)(9,750)(12,927)(8,566)(2,902)(19,877)$(63,118)
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 $74.4 million at September 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 September 30, 2025 and December 31, 2024 (in thousands):

September 30, 202530-59 days past due60-89 days past due90 days or more past dueTotal
past due
CurrentTotal loans
Commercial real estate:
Owner occupied$2,983 $1,448 $10,378 $14,809 $4,889,653 $4,904,462 
Non-owner occupied179 1,591 29,086 30,856 8,057,433 8,088,289 
Consumer real estate – mortgage8,360 14,904 18,724 41,988 5,331,122 5,373,110 
Construction and land development293 247 2,037 2,577 3,386,874 3,389,451 
Commercial and industrial19,693 12,336 26,312 58,341 15,512,580 15,570,921 
Consumer and other2,689 1,613 1,077 5,379 601,001 606,380 
Total$34,197 $32,139 $87,614 $153,950 $37,778,663 $37,932,613 
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 nine months ended September 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 September 30, 2025:
Balance at June 30, 2025$37,070 $69,661 $87,296 $32,753 $187,020 $8,325 $422,125 
Charged-off loans(334)(222)(621)(274)(18,167)(2,470)(22,088)
Recovery of previously charged-off loans— 368 11 3,727 1,185 5,300 
Provision for credit losses on loans3,454 (933)1,013 2,606 19,874 3,099 29,113 
Balance at September 30, 2025$40,190 $68,515 $88,056 $35,096 $192,454 $10,139 $434,450 
Three months ended September 30, 2024:      
Balance at June 30, 2024$29,847 $78,964 $80,247 $30,035 $154,014 $8,494 $381,601 
Charged-off loans— (266)(126)— (19,842)(2,905)(23,139)
Recovery of previously charged-off loans11 12 168 — 3,281 1,319 4,791 
Provision for credit losses on loans1,842 2,053 (4,102)2,340 24,918 1,230 28,281 
Balance at September 30, 2024$31,700 $80,763 $76,187 $32,375 $162,371 $8,138 $391,534 
Nine months ended September 30, 2025:      
Balance at December 31, 2024$36,997 $80,654 $80,042 $33,620 $174,799 $8,382 $414,494 
Charged-off loans(602)(315)(1,707)(274)(52,619)(7,601)(63,118)
Recovery of previously charged-off loans14 27 776 13 9,069 3,702 13,601 
Provision for credit losses on loans3,781 (11,851)8,945 1,737 61,205 5,656 69,473 
Balance at September 30, 2025$40,190 $68,515 $88,056 $35,096 $192,454 $10,139 $434,450 
Nine months ended September 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)(3,347)(788)— (50,611)(9,123)(72,773)
Recovery of previously charged-off loans153 40 849 10,030 4,234 15,315 
Provision for credit losses on loans11,761 26,383 4,772 (6,776)54,740 5,057 95,937 
Balance at September 30, 2024$31,700 $80,763 $76,187 $32,375 $162,371 $8,138 $391,534 
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 September 30, 2025 and December 31, 2024 (in thousands):
Real EstateBusiness AssetsOtherTotal
September 30, 2025
Commercial real estate:
Owner occupied$13,048 $— $— $13,048 
Non-owner occupied69,806 — — 69,806 
Consumer real estate – mortgage29,202 — — 29,202 
Construction and land development2,230 — — 2,230 
Commercial and industrial— 45,289 72 45,361 
Consumer and other— — 16 16 
Total $114,286 $45,289 $88 $159,663 
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 nine months ended September 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 September 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— — %— — %
Consumer real estate – mortgage— — %— — %
Construction and land development— — %— — %
Commercial and industrial5,670 0.04 %982 0.01 %
Consumer and other— — %— — %
Total $5,670 $982 
¹ The combination includes a payment delay and term extension.

Nine months ended September 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 0.43 %
Consumer real estate – mortgage— — %— — %
Construction and land development— — %— — %
Commercial and industrial6,326 0.04 %982 0.01 %
Consumer and other— — %— — %
Total $6,326 $35,451 
¹ The combination includes a payment delay and term extension.


Three months ended September 30, 2025
Financial Effect
Term Extension:
Commercial and industrialAdded a weighted average 0.33 years to the term of the modified loans
Combination:
Commercial and industrialImplemented interest only payments until loan maturity and added a weighted average 0.16 years to the term
Nine months ended September 30, 2025
Financial Effect
Term Extension:
Commercial and industrialAdded a weighted average 0.40 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 0.49 years to the term
Commercial and industrialImplemented interest only payments until loan maturity and added a weighted average 0.16 years to the term

Three and nine months ended September 30, 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 industrial15,003 0.12 %Reduced the weighted average contractural interest rate by 0.5% and added a weighted average 1.92 years to the term
Consumer and other— — %
Total $15,003 

Pinnacle Financial charged off $2.2 million of commercial and industrial loans that were previously modified and subsequently defaulted during the nine months ended September 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 nine months ended September 30, 2024. During the nine months ended September 30, 2025 and September 30, 2024, no loans experienced a payment default subsequent to being granted a modification in the prior twelve months.

The table below presents the aging of past due balances as of September 30, 2025 and September 30, 2024 of loans made to borrowers experiencing financial difficulty that were modified in the previous twelve months:
September 30, 202530-59 days past due60-89 days past due90 days or more past dueCurrentTotal modified loans
Commercial real estate:
Owner occupied$— $— $— $— $— 
Non-owner occupied— — — 34,469 34,469 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — — 7,308 7,308 
Consumer and other— — — — — 
Total$— $— $— $41,777 $41,777 
September 30, 2024
Commercial real estate:
Owner occupied$— $— $— $— $— 
Non-owner occupied— — — — — 
Consumer real estate – mortgage— — — — — 
Construction and land development— — — — — 
Commercial and industrial— — — 15,003 15,003 
Consumer and other— — — — — 
Total$— $— $— $15,003 $15,003 
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 September 30, 2025 and December 31, 2024. Also presented is the balance of loans on nonaccrual status at September 30, 2025 and December 31, 2024 for which there was no related allowance for credit losses recorded (in thousands):
September 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$10,628 $— $— $13,747 $6,614 $— 
Non-owner occupied67,415 — — 44,263 4,152 — 
Consumer real estate – mortgage27,344 — 147 38,222 1,376 23 
Construction and land development2,180 — — 2,387 319 — 
Commercial and industrial41,454 6,973 1,972 48,575 19,715 2,873 
Consumer and other662 — 513 631 — 619 
Total$149,683 $6,973 $2,632 $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 September 30, 2025 with the comparative exposures for December 31, 2024 (in thousands):
 September 30, 2025 
 Outstanding Principal BalancesUnfunded CommitmentsTotal exposureTotal Exposure at December 31, 2024
Lessors of nonresidential buildings$4,507,301 $1,316,573 $5,823,874 $5,439,776 
Lessors of residential buildings2,223,485 478,166 2,701,651 2,871,227 
New Housing For-Sale Builders563,445 956,631 1,520,076 1,394,494 
Music Publishers906,364 504,102 1,410,466 1,114,105