v3.26.1
Securities
 3 Months Ended
Mar. 31, 2026
Investments [Abstract]  
Securities
Note 4 - Securities
The amortized cost, gross unrealized gains and losses, and estimated fair values of debt securities at March 31, 2026 and December 31, 2025 are summarized below.
March 31, 2026
(in millions)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Securities held to maturity:
U.S. Treasury securities$20 $— $(1)$19 
U.S. Government agency securities226 — (5)221 
Mortgage-backed securities338 — (17)321 
State and municipal securities1,782 — (171)1,611 
Asset-backed securities107 — (2)105 
Corporate notes and other 68 — (4)64 
Total securities held to maturity(1)
$2,541 $— $(200)$2,341 
Allowance for credit losses- securities held to maturity$(2)
Securities HTM, net of allowance for credit losses$2,539 
Securities available for sale:
U.S. Treasury securities$2,739 $— $(16)$2,723 
U.S. Government agency securities208 — (16)192 
Mortgage-backed securities12,481 10 (153)12,338 
State and municipal securities1,486 4 (83)1,407 
Corporate notes and other289 1 (11)279 
Total securities available for sale(2)
$17,203 $15 $(279)$16,939 
December 31, 2025
(in millions)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Securities held to maturity:
U.S. Treasury securities$20 $— $— $20 
U.S. Government agency securities226 — (5)221 
Mortgage-backed securities350 — (18)332 
State and municipal securities1,821 1 (155)1,667 
Asset-backed securities108 — (2)106 
Corporate notes and other68 — (4)64 
Total securities held to maturity(1)
$2,593 $1 $(184)$2,410 
Allowance for credit losses- securities held to maturity$(2)
Securities HTM, net of allowance for credit losses$2,591 
Securities available for sale:
U.S. Treasury securities$1,576 $10 $— $1,586 
U.S. Government agency securities210 — (15)195 
Mortgage-backed securities2,852 11 (69)2,794 
State and municipal securities1,768 8 (67)1,709 
Corporate notes and other293 2 (12)283 
Total securities available for sale(2)
$6,699 $31 $(163)$6,567 
(1) The amounts reported exclude accrued interest receivable on debt securities HTM of $16 million and $26 million at March 31, 2026 and December 31, 2025, respectively, which are presented as a component of other assets on the consolidated balance sheets. The amortized cost basis of debt securities HTM includes a net premium of $14 million and $16 million at March 31, 2026 and December 31, 2025, respectively, related to the unamortized portion of unrealized net gains on the transferred debt securities HTM.
(2) The amounts reported exclude accrued interest receivable on debt securities AFS of $133 million and $111 million at March 31, 2026 and December 31, 2025, respectively, which are presented as a component of other assets on the consolidated balance sheets.
Pinnacle has entered into various fair value hedging transactions to mitigate the impact of changing interest rates on the fair values of available for sale securities. See Note 9 - Derivative Instruments and Hedging Activities for disclosure of the gains and losses recognized on derivative instruments and the cumulative fair value hedging adjustments to the carrying amount of the hedged securities.
At March 31, 2026 and December 31, 2025, debt securities with carrying values of $8.4 billion and $4.1 billion, respectively, were pledged to secure certain derivative contracts, public funds and other deposits and repurchase agreements, as required by law or contractual agreements.            
Gross unrealized losses on investment securities AFS and the fair value of the related securities, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at March 31, 2026 and December 31, 2025 are presented below.
March 31, 2026
Less than 12 Months12 Months or LongerTotal
(in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury securities$1,832 $(10)$888 $(6)$2,720 $(16)
U.S. Government agency securities2 $— 189 (16)191 (16)
Mortgage-backed securities10,226 (88)704 (65)10,930 (153)
State and municipal securities251 (7)1,104 (76)1,355 (83)
Corporate notes and other16 (1)123 (10)139 (11)
Total$12,327 $(106)$3,008 $(173)$15,335 $(279)
December 31, 2025
Less than 12 Months12 Months or LongerTotal
(in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury securities$205 $— $— $— $205 $— 
U.S. Government agency securities— — 191 (15)191 (15)
Mortgage-backed securities506 (1)876 (68)1,382 (69)
State and municipal securities871 (18)341 (49)1,212 (67)
Corporate notes and other15 (2)141 (10)156 (12)
Total$1,597 $(21)$1,549 $(142)$3,146 $(163)
As shown in the tables above, at March 31, 2026, Pinnacle had approximately $279 million in unrealized losses with an approximate fair value of $15.3 billion of AFS securities. For any securities classified as AFS that are in an unrealized loss position at the balance sheet date, Pinnacle assesses whether it intends to sell the security, or more-likely-than-not will be required to sell the security, before recovery of its amortized cost basis which would require a write-down to fair value through net income. Because Pinnacle currently does not intend to sell those AFS securities that have an unrealized loss at March 31, 2026, and it is not more-likely-than-not that Pinnacle will be required to sell the securities before recovery of their amortized cost basis, which may be maturity, Pinnacle has determined that no write-down is necessary. In addition, Pinnacle evaluates whether any portion of the decline in fair value of AFS securities is the result of credit deterioration of the issuers, which would require the recognition of an allowance for credit losses. Such evaluations consider the extent to which the amortized cost of the security exceeds its fair value, changes in credit ratings and any other known adverse conditions related to the specific security. The unrealized losses associated with the AFS securities at March 31, 2026 are driven by changes in interest rates and are not due to the credit quality of the securities and accordingly, no allowance for credit losses is considered necessary related to AFS securities at March 31, 2026. These securities will continue to be monitored as part of Pinnacle's ongoing evaluation of credit quality. Management evaluates the financial performance of the issuers on a quarterly basis to determine if it is probable that the issuers can make all contractual principal and interest payments.
The allowance for credit losses on HTM securities is measured on a collective basis by major security type, Pinnacle has a zero loss expectation for U.S. treasury securities in addition to U.S. Government agency securities and mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and accordingly, no allowance for credit losses is estimated for these securities. Credit losses on HTM state and municipal securities and corporate notes and other securities are estimated using third-party probability of default and loss given default models driven primarily by macroeconomic factors over a reasonable and supportable period of twenty-four months with an eight month reversion to average loss factors. At both March 31, 2026 and December 31, 2025, the estimated allowance for credit losses on HTM securities was $2 million.
The amortized cost and fair value by contractual maturity of debt securities HTM and debt securities AFS at March 31, 2026 are shown below. The expected life of MBSs or CMOs may differ from contractual maturities because issuers may have the right to call or prepay obligations with or without call or prepayment penalties. For purposes of the maturity table, MBSs and CMOs, which are not due at a single maturity date, have been classified based on the final contractual maturity date.
March 31, 2026
(in millions)Within One
 Year		1 to 5
Years		5 to 10
 Years		More Than
 10 Years		Total
Securities HTM:
U.S. Treasury securities
Amortized cost$20 $— $— $— $20 
Fair value19 — — — 19 
U.S. Government agency securities
Amortized cost136 65 25 — 226 
Fair value134 64 23 — 221 
Mortgage-backed securities
Amortized cost4 108 122 104 338 
Fair value4 102 118 97 321 
March 31, 2026
(in millions)Within One
 Year		1 to 5
Years		5 to 10
 Years		More Than
 10 Years		Total
State and municipal securities
Amortized cost— 12 47 1,723 1,782 
Fair value— 12 45 1,554 1,611 
Asset-backed securities
Amortized cost16 — — 91 107 
Fair value16 — — 89 105 
Corporate notes and other
Amortized cost— 57 11 — 68 
Fair value— 54 10 — 64 
Securities AFS:
U.S. Treasury securities
Amortized cost$532 $1,312 $— $895 $2,739 
Fair value532 1,302 — 889 2,723 
U.S. Government agency securities
Amortized cost— 191 2 15 208 
Fair value— 176 2 14 192 
Mortgage-backed securities
Amortized cost45 2,265 1,134 9,037 12,481 
Fair value45 2,239 1,106 8,948 12,338 
State and municipal securities
Amortized cost— 2 5 1,479 1,486 
Fair value— 2 5 1,400 1,407 
Corporate notes and other
Amortized cost— 82 189 18 289 
Fair value— 77 186 16 279 
Gross gains and gross losses on sales of securities AFS for the three months ended March 31, 2026 and 2025 are presented below. The specific identification method is used to reclassify gains and losses out of accumulated other comprehensive income (loss) at the time of sale.
Three Months Ended March 31,
(in millions)20262025
Gross realized gains on sales(1)
$13 $— 
Gross realized losses on sales(10)(13)
Investment securities gains (losses), net$3 $(13)
(1) Includes a $10 million gain on the termination of fair value hedges related to the U.S Treasury securities and state and municipal securities portfolios.