v3.26.1
Loans and Allowance for Loan Losses
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
Loans and Allowance for Loan Losses
Note 5 - Loans and Allowance for Loan Losses
Aging and Non-Accrual Analysis
The following tables provide a summary of current, accruing past due, and non-accrual loans by portfolio class as of March 31, 2026 and December 31, 2025.
March 31, 2026
(in millions)CurrentAccruing 30-89 Days Past Due
Accruing 90 Days or Greater Past Due
Total Accruing Past Due
Non-accrual with an ALLNon-accrual without an ALLTotal
Commercial, financial and agricultural$33,930 $42 $5 $47 $95 $79 $34,151 
Owner-occupied13,963 9 — 9 69 5 14,046 
Total commercial and industrial47,893 51 5 56 164 84 48,197 
Investment properties20,763 4 — 4 79 42 20,888 
1-4 family properties1,928 2 — 2 4 1 1,935 
Land and development937 — — — — — 937 
Total commercial real estate23,628 6 — 6 83 43 23,760 
Consumer mortgages8,153 20 — 20 61 — 8,234 
Home equity3,120 18 1 19 18 — 3,157 
Credit cards223 2 2 4 — — 227 
Other consumer loans1,604 12 — 12 6 — 1,622 
Total consumer13,100 52 3 55 85 — 13,240 
Loans, net of deferred fees and costs(1)(2)
$84,621 $109 $8 $117 $332 $127 $85,197 
                                                                                                                                                                                                                                                                                                                                                                        
December 31, 2025
(in millions)CurrentAccruing 30-89 Days Past DueAccruing 90 Days or Greater Past DueTotal Accruing Past DueNon-accrual with an ALLNon-accrual without an ALLTotal
Commercial, financial and agricultural$16,478 $21 $2 $23 $35 $13 $16,549 
Owner-occupied5,738 3 — 3 3 3 5,747 
Total commercial and industrial22,216 24 2 26 38 16 22,296 
Investment properties9,448 — — — 34 14 9,496 
1-4 family properties1,280 2 — 2 2 — 1,284 
Land and development576 — — — — — 576 
Total commercial real estate11,304 2 — 2 36 14 11,356 
Consumer mortgages3,417 16 — 16 23 — 3,456 
Home equity1,360 8 — 8 6 — 1,374 
Credit cards51 1 1 2 — — 53 
Other consumer loans616 3 — 3 — — 619 
Total consumer5,444 28 1 29 29 — 5,502 
Loans, net of deferred fees and costs(1)(2)
$38,964 $54 $3 $57 $103 $30 $39,154 
(1) The amortized cost basis of loans, net of deferred fees and costs excludes accrued interest receivable of $340 million and $151 million at March 31, 2026 and December 31, 2025, respectively, which is presented as a component of other assets on the consolidated balance sheets.
(2) Loans are presented net of deferred loan fees and costs totaling $330 million and $314 million at March 31, 2026 and December 31, 2025, respectively.
Pledged Loans
Loans with carrying values of $33.3 billion and $15.7 billion were pledged as collateral for borrowings and capacity at March 31, 2026 and December 31, 2025, respectively, to the FHLB and Federal Reserve Bank.
Portfolio Segment Risk Factors
The risk characteristics and collateral information of each portfolio segment are as follows:
Commercial and Industrial Loans - The C&I loan portfolio is comprised of general middle market and commercial banking clients across a diverse set of industries, as well as certain specialized lending verticals including specialty finance, senior housing, financial institutions group and health care. In accordance with Pinnacle's lending policy, each loan undergoes a detailed underwriting process, which incorporates uniform underwriting standards and oversight in proportion to the size and complexity of the lending relationship. These loans are generally secured by collateral such as business equipment, inventory, and real estate. Credit decisions on loans in the C&I portfolio are based on cash flow from the operations of the business as the primary source of repayment of the debt, with underlying real estate or other collateral being the secondary source of repayment.
Commercial Real Estate Loans - CRE loans primarily consist of income-producing investment properties loans. Additionally, CRE loans include 1-4 family properties loans as well as land and development loans. Investment properties loans consist of construction and mortgage loans for income-producing properties and are primarily made to finance multi-family properties, hotels, office buildings, retail, warehouse/industrial and other commercial development properties. 1-4 family properties loans include construction loans to homebuilders and commercial mortgage loans related to 1-4 family rental properties and are almost always secured by the underlying property being financed by such loans. These properties are primarily located in the markets served by Pinnacle. Land and development loans include commercial and residential development as well as land acquisition loans and are secured by land held for future development, typically in excess of one year. Properties securing these loans are substantially within markets served by Pinnacle, and our preference is to obtain some level of recourse from project sponsors. Loans in this portfolio are underwritten based on the LTV of the collateral and the capacity of the guarantor(s).
Consumer Loans - The consumer loan portfolio consists of a wide variety of loan products offered through Pinnacle's banking network, including first and second residential mortgages, home equity, and consumer credit card loans, as well as home improvement loans, student, and personal loans from third-party lending ("other consumer loans"). Together, consumer mortgages and home equity comprise the majority of Pinnacle's consumer loans and are secured by first and second liens on residential real estate primarily located in the markets served by Pinnacle. The primary source of repayment for all consumer loans is generally the personal income of the borrower(s).
Credit Quality Indicators
The credit quality of the loan portfolio is reviewed and updated no less frequently than annually using the standard asset classification system utilized by the federal banking agencies. These classifications are divided into three groups: Not Criticized (Pass), Special Mention, and Classified or Adverse rating (Substandard, Doubtful, and Loss) and are defined as follows:
Pass - loans which are well protected by the current net worth and paying capacity of the obligor (or guarantors, if any) or by the fair value, less cost to acquire and sell in a timely manner, of any underlying collateral.
Special Mention - loans which have potential weaknesses that deserve management's close attention. These loans are not adversely classified and do not expose an institution to sufficient risk to warrant an adverse classification.
Substandard - loans which are inadequately protected by the current net worth and paying capacity of the obligor or by the collateral pledged, if any. Loans with this classification are characterized by the distinct possibility that the institution will sustain some loss if the deficiencies are not corrected.
Doubtful - loans which have all the weaknesses inherent in loans categorized as Substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently known facts, conditions, and values.
Loss - loans which are considered by management to be uncollectible and of such little value that their continuance on the institution's books as an asset, without establishment of a specific valuation allowance or charge-off, is not warranted. Pinnacle fully reserves for any loans rated as Loss.
In the following tables, consumer loans are generally assigned a risk grade similar to the classifications described above; however, upon reaching 90 days and 120 days past due, they are generally downgraded to Substandard and Loss, respectively, in accordance with the FFIEC Retail Credit Classification Policy. Additionally, in accordance with Interagency Supervisory Guidance, the risk grade classifications of consumer loans (consumer mortgages and home equity) secured by junior liens on 1-4 family residential properties also consider available information on the payment status of any associated senior liens with other financial institutions.
The following table summarizes each loan portfolio class by risk grade and origination year as of March 31, 2026 and December 31, 2025 as required under CECL.
March 31, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions) 20262025202420232022PriorAmortized Cost BasisTotal
Commercial, financial and agricultural
Pass$2,540 $7,058 $3,534 $1,925 $1,421 $3,505 $13,256 $33,239 
Special Mention14 23 59 120 40 23 172 451 
Substandard3 70 37 42 51 59 187 449 
Doubtful— — — — — 3 8 11 
Loss— — — — — — 1 1 
Total commercial, financial and agricultural2,557 7,151 3,630 2,087 1,512 3,590 13,624 34,151 
Current YTD Period:
Gross charge-offs— 1 19 9 3 4 8 44 
Owner-occupied
Pass704 3,294 1,517 1,469 2,257 3,688 766 13,695 
Special Mention10 23 3 28 22 90 — 176 
Substandard— 5 3 19 26 116 6 175 
Total owner-occupied714 3,322 1,523 1,516 2,305 3,894 772 14,046 
Current YTD Period:
Gross charge-offs— — — — — 1 — 1 
Total commercial and industrial3,271 10,473 5,153 3,603 3,817 7,484 14,396 48,197 
Current YTD Period:
Gross charge-offs$— $1 $19 $9 $4 $4 $8 $45 
Investment properties
Pass1,042 4,465 2,245 1,549 5,313 5,374 362 20,350 
Special Mention15 1 5 3 190 130 — 344 
Substandard— 37 — 8 49 100 — 194 
Loss— — — — — — — — 
Total investment properties1,057 4,503 2,250 1,560 5,552 5,604 362 20,888 
Current YTD Period:
Gross charge-offs— — — — — — — — 
1-4 family properties
Pass295 692 193 143 210 314 65 1,912 
Special Mention3 6 3 — 3 — — 15 
Substandard— 1 1 1 2 3 — 8 
Total 1-4 family properties298 699 197 144 215 317 65 1,935 
Current YTD Period:
Gross charge-offs— — — — — — — — 
March 31, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions) 20262025202420232022PriorAmortized Cost BasisTotal
Land and development
Pass137 333 152 55 66 116 76 935 
Special Mention— — — — — — — — 
Substandard— — — 2 — — — 2 
Total land and development137 333 152 57 66 116 76 937 
Current YTD Period:
Gross charge-offs— — — — — — — — 
Total commercial real estate1,492 5,535 2,599 1,761 5,833 6,037 503 23,760 
Current YTD Period:
Gross charge-offs$— $— $— $— $— $— $— $— 
Consumer mortgages
Pass340 1,344 523 860 1,151 3,906 29 8,153 
Substandard— 3 3 8 9 58 — 81 
Loss— — — — — — — — 
Total consumer mortgages340 1,347 526 868 1,160 3,964 29 8,234 
Current YTD Period:
Gross charge-offs— — — — — — — — 
Home equity
Pass3 8 10 28 208 85 2,793 3,135 
Substandard— — 1 2 4 5 10 22 
Loss— — — — — — — — 
Total home equity3 8 11 30 212 90 2,803 3,157 
Current YTD Period:
Gross charge-offs— — — — — 1 1 2 
Credit cards
Pass— — — — — — 225 225 
Substandard— — — — — — 1 1 
Loss— — — — — — 1 1 
Total credit cards— — — — — — 227 227 
Current YTD Period:
Gross charge-offs— — — — — — 2 2 
Other consumer loans
Pass167 255 96 66 91 244 696 1,615 
Substandard— 1 1 1 1 3 — 7 
Total other consumer loans167 256 97 67 92 247 696 1,622 
Current YTD Period:
Gross charge-offs— 1 1 1 1 2 1 8 
Total consumer510 1,611 634 965 1,464 4,301 3,755 13,240 
Current YTD Period:
Gross charge-offs$— $1 $1 $1 $1 $3 $4 $12 
Loans, net of deferred fees and costs$5,273 $17,619 $8,386 $6,329 $11,113 $17,823 $18,654 $85,197 
Current YTD Period:
Gross charge-offs$— $3 $20 $11 $5 $7 $12 $58 
December 31, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions)20252024202320222021PriorAmortized Cost BasisTotal
Commercial, financial and agricultural
Pass$5,207 $2,722 $1,219 $901 $450 $334 $5,323 $16,156 
Special Mention54 29 51 39 14 2 118 307 
Substandard31 6 12 11 3 4 19 86 
Doubtful— — — — — — — — 
Loss— — — — — — — 
Total commercial, financial and agricultural5,292 2,757 1,282 951 467 340 5,460 16,549 
Current YTD Period:
Gross charge-offs4 7 10 15 7 2 19 64 
Owner-occupied
Pass1,621 770 700 1,079 691 596 160 5,617 
Special Mention26 1 11 13 33 25 — 109 
Substandard— — 3 — 16 2 — 21 
Total owner-occupied1,647 771 714 1,092 740 623 160 5,747 
Current YTD Period:
Gross charge-offs— — — — — — — 1 
Total commercial and industrial6,939 3,528 1,996 2,043 1,207 963 5,620 22,296 
Current YTD Period:
Gross charge-offs$4 $7 $10 $15 $7 $2 $19 $64 
Investment properties
Pass2,289 1,064 995 3,314 1,100 447 175 9,384 
Special Mention31 5 2 — 14 12 — 64 
Substandard34 — 4 — 10 — — 48 
Doubtful— — — — — — — 
Loss— — — — — — — 
Total investment properties2,354 1,069 1,001 3,314 1,124 459 175 9,496 
Current YTD Period:
Gross charge-offs— — — — 17 — — 18 
1-4 family properties
Pass615 167 99 140 106 117 25 1,269 
Special Mention7 4 — 3 — — — 14 
Substandard— — — — — 1 — 1 
Total 1-4 family properties622 171 99 143 106 118 25 1,284 
Current YTD Period:
Gross charge-offs— — — — — — — — 
Land and development
Pass294 123 33 41 30 15 40 576 
Special Mention— — — — — — — — 
Substandard— — — — — — — — 
Total land and development294 123 33 41 30 15 40 576 
Current YTD Period:
Gross charge-offs— — — — — — — — 
Total commercial real estate3,270 1,363 — 1,133 3,498 1,260 592 240 11,356 
Current YTD Period:
Gross charge-offs$— $— $— $— $17 $— $— $18 
December 31, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions)20252024202320222021PriorAmortized Cost BasisTotal
Consumer mortgages
Pass$908 $181 $331 $637 $762 $582 $32 $3,433 
Substandard1 2 5 4 1 10 — 23 
Loss— — — — — — — 
Total consumer mortgages909 183 336 641 763 592 32 3,456 
Current YTD Period:
Gross charge-offs— — 1 — — — — 1 
Home equity
Pass1 — — — — 2 1,365 1,368 
Substandard— 1 1 1 — 1 2 6 
Loss— — — — — — — — 
Total home equity1 1 1 1 — 3 1,367 1,374 
Current YTD Period:
Gross charge-offs— — — — — — 1 1 
Credit cards
Pass— — — — — — 53 53 
Substandard— — — — — — — — 
Loss— — — — — — — — 
Total credit cards— — — — — — 53 53 
Current YTD Period:
Gross charge-offs— — — — — — 3 3 
Other consumer loans
Pass187 16 14 18 26 13 345 619 
Substandard— — — — — — — — 
Loss— — — — — — — 
Total other consumer loans187 16 14 18 26 13 345 619 
Current YTD Period:
Gross charge-offs— — — — 3 1 3 7 
Total consumer1,097 200 351 660 789 608 1,797 5,502 
Current YTD Period:
Gross charge-offs$— $1 $2 $— $3 $2 $6 $13 
Loans, net of deferred fees and costs$11,306 $5,091 $3,480 $6,201 $3,256 $2,163 $7,657 $39,154 
Current YTD Period:
Gross charge-offs$4 $8 $12 $15 $28 $4 $25 $96 
Rollforward of Allowance for Loan Losses
The following tables detail the changes in the ALL by loan segment for the three months ended March 31, 2026 and 2025. During the three months ended March 31, 2026 and 2025, Pinnacle had no significant transfers to loans held for sale.
As Of and For the Three Months Ended March 31, 2026
(in millions)Commercial & IndustrialCommercial Real EstateConsumerTotal
Allowance for loan losses:
Beginning balance at December 31, 2025$255 $95 $92 $442 
Purchased credit deteriorated loans110 102 25 237 
Purchased seasoned loans 106 67 68 241 
Charge-offs(45)— (12)(58)
Recoveries4 — 4 9 
Provision for (reversal of) loan losses60 (48)58 71 
Ending balance at March 31, 2026$489 $217 $236 $942 
As Of and For the Three Months Ended March 31, 2025
(in millions)Commercial & IndustrialCommercial Real EstateConsumerTotal
Allowance for loan losses:
Beginning balance at December 31, 2024$221 $111 $82 $414 
Charge-offs(15)— (3)(18)
Recoveries2 — 2 4 
Provision for (reversal of) loan losses21 (12)9 17 
Ending balance at March 31, 2025$230 $99 $89 $417 
The ALL of $942 million and the reserve for unfunded commitments of $72 million, which is recorded in other liabilities, comprise the total ACL of $1.0 billion at March 31, 2026. The ACL increased $557 million compared to the December 31, 2025 ACL of $458 million, which consisted of an ALL of $442 million and a reserve for unfunded commitments of $16 million, primarily due to the merger. The ACL to loans coverage ratio was 1.19% at March 31, 2026, compared to 1.17% at December 31, 2025. The March 31, 2026 ACL ratio was impacted by net loan growth and a deterioration in the economic forecast. The Company includes qualitative adjustments, as appropriate, intended to capture the impact of uncertainties in the quantitative estimate.
The ACL is estimated using a two-year reasonable and supportable forecast period. To the extent the lives of the loans in the portfolio extend beyond the period for which a reasonable and supportable forecast can be made, the Company reverts on a straight-line basis back to the historical rates over a one-year period. Pinnacle utilizes multiple economic forecast scenarios sourced from a reputable third-party provider that are probability-weighted internally. The current scenarios include a consensus baseline forecast, an upside scenario reflecting stronger growth than the baseline, a downside scenario that reflects adverse economic conditions, and an additional adverse scenario that assumes consistent slow growth that is less optimistic than the baseline. The economic scenarios are intended to capture differing trajectories for the macroeconomic environment over the forecast horizon. At March 31, 2026, the probability‑weighted economic outlook reflected a modest softening relative to December 31, 2025. Consistent with industry practice, the unemployment rate is referenced as a general indicator of labor market conditions and broader economic trends reflected in the scenarios. The probability‑weighted forecast incorporated an average unemployment rate of 5.1% over the forecast period at March 31, 2026, compared to 4.6% at December 31, 2025. See Note 1 - Basis of Presentation and Accounting Policies for additional details around the ACL estimation process.
Financial Difficulty Modifications
When borrowers are experiencing financial difficulty, Pinnacle may make certain loan modifications as part of its loss mitigation strategies to maximize expected payment. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies" of Pinnacle's 2025 Form 10-K for additional information regarding accounting policies for FDMs.
The following tables present the amortized cost of FDM loans by loan portfolio class that were modified during the three months ended March 31, 2026 and 2025. Tables within this section exclude loans that were paid-off or are otherwise no longer in the loan portfolio as of the period end.
Three Months Ended March 31, 2026
(in millions) Interest Rate ReductionTerm ExtensionPayment DelayInterest Rate Reduction and Term ExtensionTotalPercentage of Total by Financing Class
Commercial, financial and agricultural$— $8 $25 $33 0.1 %
Owner-occupied— — — — — 
Total commercial and industrial— 8 25 — 33 0.1 
Investment properties— 9 — 9 — 
Total commercial real estate— — 9 — 9 — 
Consumer mortgages— — 2 — 2 — 
Other consumer loans— 1 — — 1 0.1 
Total consumer— 1 2 — 3 — 
Total FDMs$— $9 $36 $— $45 0.1 %
Three Months Ended March 31, 2025
(in millions) Interest Rate ReductionTerm ExtensionPayment DelayInterest Rate Reduction and Term ExtensionTotalPercentage of Total by Financing Class
Commercial, financial and agricultural$— $5 $— $— $5 — %
Total commercial and industrial— 5 — — 5 — 
Total FDMs$— $5 $— $— $5 — %
The following tables present the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2026 and 2025.
Three Months Ended March 31, 2026Three Months Ended March 31, 2025
(dollars in millions) Weighted Average Interest Rate ReductionWeighted Average Term Extension
(in months)		Weighted Average Payment Delay
(in months)		Weighted Average Interest Rate ReductionWeighted Average Term Extension
(in months)		Weighted Average Payment Delay
(in months)
Commercial, financial and agricultural— %36— %6— 
Investment properties— — 9— — — 
Consumer mortgages— — 6— — — 
Other consumer loans— 156— — — — 
During the three months ended March 31, 2026, there were no material FDMs that subsequently defaulted. During the three months ended March 31, 2025, there were no material FDMs that subsequently defaulted. Defaults are defined as the earlier of the FDM being placed on non-accrual status or reaching 90 days past due with respect to principal and/or interest payments. As of March 31, 2026 and December 31, 2025, there were no commitments to lend a material amount of additional funds to any borrower whose loan was classified as a FDM.
Pinnacle monitors the performance of FDMs to understand the effectiveness of its modification efforts. The following tables provide a summary of current, accruing past due, and non-accrual loans on an amortized cost basis by loan portfolio class that have been modified during the 12 months prior to March 31, 2026 and March 31, 2025, respectively.
As of March 31, 2026
(in millions)CurrentAccruing 30-89 Days Past DueAccruing 90 Days or Greater Past DueNon-accrual Total
Commercial, financial and agricultural$16 $— $— $39 $55 
Total commercial and industrial16 — — 39 55 
Investment properties9 — — 38 47 
Total commercial real estate9 — — 38 47 
Consumer mortgages— 1 — 2 3 
Other consumer loans1 — — — 1 
Total consumer1 1 — 2 4 
Total FDMs$26 $1 $— $79 $106 
As of March 31, 2025
(in millions)CurrentAccruing 30-89 Days Past DueAccruing 90 Days or Greater Past DueNon-accrual Total
Commercial, financial and agricultural$5 $— $— $5 
Total commercial and industrial5 — — — 5 
Total FDMs$5 $— $— $— $5