v3.26.3
Loans and Allowance for Loan Losses
 9 Months Ended
Sep. 30, 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 September 30, 2026 and December 31, 2025.
September 30, 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$37,255 $34 $5 $39 $58 $104 $37,456 
Owner-occupied14,542 17 — 17 24 24 14,607 
Total commercial and industrial51,797 51 5 56 82 128 52,063 
Investment properties20,931 11 — 11 48 74 21,064 
1-4 family properties1,988 3 — 3 4 — 1,995 
Land and development977 1 — 1 — — 978 
Total commercial real estate23,896 15 — 15 52 74 24,037 
Consumer mortgages8,608 21 — 21 72 — 8,701 
Home equity2,964 18 — 18 19 — 3,001 
Credit cards247 2 3 5 — — 252 
Other consumer loans1,733 15 — 15 6 — 1,754 
Total consumer13,552 56 3 59 97 — 13,708 
Loans, net of deferred fees and costs(1)(2)
$89,245 $122 $8 $130 $231 $202 $89,808 
                                                                                                                                                                                                                                                                                                                                                                        
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 $365 million and $151 million at September 30, 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 $351 million and $314 million at September 30, 2026 and December 31, 2025, respectively.
Pledged Loans
Loans with carrying values of $45.2 billion and $15.7 billion were pledged as collateral for borrowings and capacity at September 30, 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, enterprise value, 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 September 30, 2026 and December 31, 2025 as required under CECL.
September 30, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions) 20262025202420232022PriorAmortized Cost BasisTotal
Commercial, financial and agricultural
Pass$6,977 $6,404 $2,721 $1,363 $1,068 $2,927 $15,072 $36,532 
Special Mention15 30 62 66 39 11 171 394 
Substandard77 48 65 61 36 18 216 521 
Doubtful— — — — 5 3 — 8 
Loss— — — — — — 1 1 
Total commercial, financial and agricultural7,069 6,482 2,848 1,490 1,148 2,959 15,460 37,456 
Current YTD Period:
Gross charge-offs$6 $20 $30 $12 $8 $7 $34 $117 
Owner-occupied
Pass3,307 3,573 1,432 1,223 1,791 2,199 769 14,294 
Special Mention21 49 10 29 10 97 — 216 
Substandard1 12 15 15 16 36 2 97 
Total owner-occupied3,329 3,634 1,457 1,267 1,817 2,332 771 14,607 
Current YTD Period:
Gross charge-offs— — — — 5 17 — 22 
Total commercial and industrial10,398 10,116 4,305 2,757 2,965 5,291 16,231 52,063 
Current YTD Period:
Gross charge-offs6 20 30 12 13 24 34 139 
Investment properties
Pass4,989 5,576 2,392 1,178 3,613 2,529 284 20,561 
Special Mention28 8 56 67 100 49 — 308 
Substandard1 31 — 24 30 109 — 195 
Total investment properties5,018 5,615 2,448 1,269 3,743 2,687 284 21,064 
Current YTD Period:
Gross charge-offs— 7 — — — 1 — 8 
1-4 family properties
Pass809 435 138 118 180 212 89 1,981 
Special Mention4 2 — 1 2 — — 9 
Substandard— 1 — 1 — 3 — 5 
Total 1-4 family properties813 438 138 120 182 215 89 1,995 
Current YTD Period:
Gross charge-offs— — — — — 1 — 1 
September 30, 2026
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions) 20262025202420232022PriorAmortized Cost BasisTotal
Land and development
Pass379 296 105 34 42 34 85 975 
Special Mention2 — — — — — — 2 
Substandard— — — 1 — — — 1 
Total land and development381 296 105 35 42 34 85 978 
Current YTD Period:
Gross charge-offs— — — — — — — — 
Total commercial real estate6,212 6,349 2,691 1,424 3,967 2,936 458 24,037 
Current YTD Period:
Gross charge-offs— 7 — — — 2 — 9 
Consumer mortgages
Pass1,402 1,206 456 768 1,077 3,698 — 8,607 
Substandard— 7 4 11 10 62 — 94 
Total consumer mortgages1,402 1,213 460 779 1,087 3,760 — 8,701 
Current YTD Period:
Gross charge-offs— — — 1 — 1 — 2 
Home equity
Pass8 10 11 27 191 80 2,649 2,976 
Substandard— 1 1 3 5 6 8 24 
Loss— — — — — — 1 1 
Total home equity8 11 12 30 196 86 2,658 3,001 
Current YTD Period:
Gross charge-offs— — — — 1 2 2 5 
Credit cards
Pass— — — — — — 250 250 
Substandard— — — — — — 1 1 
Loss— — — — — — 1 1 
Total credit cards— — — — — — 252 252 
Current YTD Period:
Gross charge-offs— — — — — — 6 6 
Other consumer loans
Pass373 210 79 53 78 203 751 1,747 
Substandard1 1 1 1 1 2 — 7 
Total other consumer loans374 211 80 54 79 205 751 1,754 
Current YTD Period:
Gross charge-offs— 6 4 4 1 6 3 24 
Total consumer1,784 1,435 552 863 1,362 4,051 3,661 13,708 
Current YTD Period:
Gross charge-offs— 6 4 5 2 9 11 37 
Loans, net of deferred fees and costs$18,394 $17,900 $7,548 $5,044 $8,294 $12,278 $20,350 $89,808 
Current YTD Period:
Gross charge-offs$6 $33 $34 $17 $15 $35 $45 $185 
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 
Total commercial, financial and agricultural5,292 2,757 1,282 951 467 340 5,460 16,549 
Current YTD Period:
Gross charge-offs$4 $7 $11 $15 $7 $2 $19 $65 
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 — — — — — 1 
Total commercial and industrial6,939 3,528 1,996 2,043 1,207 963 5,620 22,296 
Current YTD Period:
Gross charge-offs4 8 11 15 7 2 19 66 
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 
Total investment properties2,354 1,069 1,001 3,314 1,124 459 175 9,496 
Current YTD Period:
Gross charge-offs— — — — 17 1 — 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 
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 1 — 18 
December 31, 2025
Term Loans Amortized Cost Basis by Origination YearRevolving Loans
(in millions)20252024202320222021PriorAmortized Cost BasisTotal
Consumer mortgages
Pass908 181 331 637 762 582 32 3,433 
Substandard1 2 5 4 1 10 — 23 
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 
Total home equity1 1 1 1 — 3 1,367 1,374 
Current YTD Period:
Gross charge-offs— — — — — — 1 1 
Credit cards
Pass— — — — — — 53 53 
Total credit cards— — — — — — 53 53 
Current YTD Period:
Gross charge-offs— — — — — — 2 2 
Other consumer loans
Pass187 16 14 18 26 13 345 619 
Total other consumer loans187 16 14 18 26 13 345 619 
Current YTD Period:
Gross charge-offs— — — — 4 1 3 8 
Total consumer1,097 200 351 660 789 608 1,797 5,502 
Current YTD Period:
Gross charge-offs— — 1 — 4 1 6 12 
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 and nine months ended September 30, 2026 and 2025. During the three and nine months ended September 30, 2026 and 2025, Pinnacle had no significant transfers to loans held for sale.
As of and For the Three Months Ended September 30, 2026
(in millions)Commercial & IndustrialCommercial Real EstateConsumerTotal
Allowance for loan losses:
Beginning balance at June 30, 2026$500 $216 $240 $956 
Charge-offs(51)(8)(11)(70)
Recoveries15 1 4 20 
Provision for (reversal of) loan losses42 13 25 80 
Ending balance at September 30, 2026$506 $222 $258 $986 
As of and For the Three Months Ended September 30, 2025
(in millions)Commercial & IndustrialCommercial Real EstateConsumerTotal
Allowance for loan losses:
Beginning balance at June 30, 2025$233 $101 $88 $422 
Charge-offs(19)— (3)(22)
Recoveries4 — 1 5 
Provision for (reversal of) loan losses26 (1)4 29 
Ending balance at September 30, 2025$244 $100 $90 $434 
As of and For the Nine Months Ended September 30, 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 loans106 67 68 241 
Charge-offs(139)(9)(37)(185)
Recoveries25 1 12 38 
Provision for (reversal of) loan losses149 (34)98 213 
Ending balance at September 30, 2026$506 $222 $258 $986 
As of and For the Nine Months Ended September 30, 2025
(in millions)Commercial & IndustrialCommercial Real EstateConsumerTotal
Allowance for loan losses:
Beginning balance at December 31, 2024$221 $111 $82 $414 
Charge-offs(53)— (9)(62)
Recoveries9 — 4 13 
Provision for (reversal of) loan losses67 (11)13 69 
Ending balance at September 30, 2025$244 $100 $90 $434 
The ALL of $986 million and the reserve for unfunded commitments of $79 million, which is recorded in other liabilities, comprise the total ACL of $1.1 billion at September 30, 2026. The ACL increased $607 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 September 30, 2026, compared to 1.17% at December 31, 2025. The September 30, 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 September 30, 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 5.0% over the forecast period at September 30, 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 and nine months ended September 30, 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 September 30, 2026
(in millions) Term ExtensionPayment DelayInterest Rate Reduction and Term ExtensionPayment Deferral and Term ExtensionTotalPercentage of Total by Financing Class
Commercial, financial and agricultural$36 $— $20 $— $56 0.1 %
Total commercial and industrial36 — 20 — 56 0.1 
Investment properties— — — — — — 
Total commercial real estate— — — — — — 
Consumer mortgages— 7 — — 7 0.1 
Other consumer loans1 — — — 1 0.1 
Total consumer1 7 — — 8 0.1 
Total FDMs$37 $7 $20 $— $64 0.1 %
Nine Months Ended September 30, 2026
(in millions)Term ExtensionPayment DelayInterest Rate Reduction and Term ExtensionPayment Deferral and Term ExtensionTotalPercentage of Total by Financing Class
Commercial, financial and agricultural$88 $26 $20 $— $134 0.4 %
Total commercial and industrial88 26 20 — 134 0.3 
Investment properties— 9 — 27 36 0.2 
Total commercial real estate— 9 — 27 36 0.1 
Consumer mortgages— 14 — — 14 0.2 
Other consumer loans2 — — — 2 0.1 
Total consumer2 14 — — 16 0.1 
Total FDMs$90 $49 $20 $27 $186 0.2 %
Three Months Ended September 30, 2025
(in millions) Term ExtensionPayment Delay and Term Extension TotalPercentage of Total by Financing Class
Commercial, financial and agricultural$6 $1 $7 — %
Total commercial and industrial6 1 7 — 
Total FDMs$6 $1 $7 — %
Nine Months Ended September 30, 2025
(in millions)Term ExtensionPayment Delay and Term Extension TotalPercentage of Total by Financing Class
Commercial, financial and agricultural$6 $1 $7 — %
Total commercial and industrial6 1 7 — 
Investment properties— 34 34 0.4 
Total commercial real estate— 34 34 0.3 
Total FDMs$6 $35 $41 0.1 %
The following tables present the financial effect of loan modifications made to borrowers experiencing financial difficulty during the three and nine months ended September 30, 2026 and 2025.
Three Months Ended September 30, 2026Nine Months Ended September 30, 2026
(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 and Payment Delay
(in months)		Weighted Average Payment Delay
(in months)
Commercial, financial and agricultural3.5 %17— 3.5 %1113
Owner-occupied— — — — — — 
Investment properties— — — — 89
Consumer mortgages— — 7— — 6
Other consumer loans— 157— — 139— 

Three Months Ended September 30, 2025Nine Months Ended September 30, 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 Deferral
(in months)
Commercial, financial and agricultural— %4— — %5— 
Investment properties— — — — 66
During the three and nine months ended September 30, 2026, there were no material FDMs that subsequently defaulted. During the three and nine months ended September 30, 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 September 30, 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 September 30, 2026 and September 30, 2025, respectively.
As of September 30, 2026
(in millions)CurrentAccruing 30-89 Days Past DueAccruing 90 Days or Greater Past DueNon-accrual Total
Commercial, financial and agricultural$84 $2 $— $56 $142 
Owner-occupied— — — — — 
Total commercial and industrial84 2 — 56 142 
Investment properties9 — — 31 40 
Total commercial real estate9 — — 31 40 
Consumer mortgages3 — — 11 14 
Other consumer loans2 — — — 2 
Total consumer5 — — 11 16 
Total FDMs$98 $2 $— $98 $198 
As of September 30, 2025
(in millions)CurrentAccruing 30-89 Days Past DueAccruing 90 Days or Greater Past DueNon-accrual Total
Commercial, financial and agricultural$7 $— $— $— $7 
Investment properties— — — 34 34 
Total FDMs$7 $— $— $34 $41