v3.26.1
Fair Value Accounting
 3 Months Ended
Mar. 31, 2026
Fair Value Disclosures [Abstract]  
Fair Value Accounting
Note 8 - Fair Value Accounting
See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies and Note 18- Fair Value of Financial Instruments" of Pinnacle's 2025 Form 10-K for a description of valuation methodologies for assets and liabilities measured at fair value on a recurring and non-recurring basis.
The following table presents assets and liabilities measured at estimated fair value on a recurring basis.
March 31, 2026December 31, 2025
(in millions)Level 1Level 2Level 3Total Estimated Fair ValueLevel 1Level 2Level 3Total Estimated Fair Value
Assets
Trading securities:
U.S. Treasury securities$2 $— $— $2 $— $— $— $— 
Asset-backed securities— 3 — 3 — — — — 
Total trading securities$2 $3 $— $5 $— $— $— $— 
Securities available for sale:
U.S. Treasury securities$2,723 $— $— $2,723 $1,586 $— $— $1,586 
U.S. Government agency securities— 192 — 192 — 195 — 195 
Mortgage-backed securities— 12,338 — 12,338 — 2,794 — 2,794 
State and municipal securities— 1,407 — 1,407 — 1,709 — 1,709 
Corporate notes and other— 279 — 279 — 283 — 283 
Total securities available for sale$2,723 $14,216 $— $16,939 $1,586 $4,981 $— $6,567 
Mortgage loans held for sale$— $46 $— $46 $— $— $— $— 
Other investments— 38 282 320 — 23 230 253 
Mutual funds held in rabbi trusts93 — — 93 13 — — 13 
Derivative assets— 202 — 202 — 210 — 210 
Liabilities
Mutual funds held in rabbi trusts87 — — 87 7 — — 7 
Derivative liabilities— 146 — 146 — 80 — 80 
Fair Value Option
Pinnacle has elected the fair value option for certain mortgage loans held for sale related to the portfolio acquired in the Merger on January 1, 2026, primarily to ease the operational burden required to maintain hedge accounting for these loans. Pinnacle is still able to achieve effective economic hedges on mortgage loans held for sale without the time and expense needed to manage a hedge accounting program.
Mortgage loans held for sale are initially measured at fair value under the fair value option election with subsequent changes in fair value recognized in mortgage banking income on the consolidated statements of income.
The following table summarizes the difference between the fair value and the UPB of mortgage loans held for sale and the changes in fair value of these loans. An immaterial portion of these changes in fair value was attributable to instrument-specific credit risk. Pinnacle recorded the changes in fair value in net income of $1 million for the three months ended March 31, 2026.
Mortgage Loans Held for Sale
(in millions)As of March 31, 2026
Fair value$46 
Unpaid principal balance45 
Fair value less aggregate unpaid principal balance$1 
Activity for Level 3 Assets
See "Part II - Item 8. Financial Statements and Supplementary Data - Note 18 - Fair Value of Financial Instruments" of Pinnacle's 2025 Form 10-K for a description of the valuation techniques and significant inputs for Level 3 assets and liabilities that are measured at fair value on a recurring and non-recurring basis. During the three months ended March 31, 2026 and 2025, Pinnacle did not have any transfers in or out of Level 3 in the fair value hierarchy. The following tables provide rollforwards of Level 3 assets measured at fair value on a recurring basis.
Three Months Ended March 31, 2026
(in millions)Other Investments
Ending balance at December 31, 2025$230 
Impact from the Merger40 
Total gains (losses) realized/unrealized:
Included in earnings9 
Additions6 
Settlements(3)
Ending balance at March 31, 2026$282 
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at March 31, 2026$9 
Three Months Ended March 31, 2025
(in millions)Other Investments
Beginning balance at December 31, 2024$177 
Total gains (losses) realized/unrealized:
Included in earnings— 
Purchases17 
Settlements(2)
Ending balance at March 31, 2025$192 
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at March 31, 2025$— 
The following table presents assets measured at fair value on a non-recurring basis, as of the dates indicated, for which there was a fair value adjustment.
March 31, 2026
(in millions)Level 1Level 2Level 3
Collateral dependent loans (1)
$— $— $114 
Other real estate— — 33 
December 31, 2025
Level 1Level 2Level 3
Collateral dependent loans (1)
$— $— $80 
Other real estate— — 8 
(1) The carrying values of collateral dependent loans at March 31, 2026 and December 31, 2025 are net of valuation allowances of $31.3 million and $31.9 million, respectively.
Fair Value of Financial Instruments
The following tables present the carrying and estimated fair values of financial instruments at March 31, 2026 and December 31, 2025. This table excludes financial instruments for which the carrying amount approximates fair value. For short-term financial assets such as cash, cash equivalents, and restricted cash, the carrying amount is a reasonable estimate of fair value due the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity. The fair values represent management’s best estimates based on a range of methodologies and assumptions. See "Part II - Item 8. Financial Statements and Supplementary Data - Note 1 - Summary of Significant Accounting Policies and Note 18 - Fair Value of Financial Instruments" to the consolidated financial statements of Pinnacle's 2025 Form 10-K for a description of how fair value measurements are determined.
March 31, 2026
(in millions)Carrying Value
Fair Value(1)
Level 1Level 2Level 3
Financial assets
Securities purchased with agreement to resell$86 $86 $— $— $86 
Securities held to maturity2,539 2,341 19 2,322 — 
Loans held for sale205 205 — 205 — 
Loans, net 84,255 83,152 — — 83,152 
Financial liabilities
Deposits and securities sold under agreements to repurchase$100,411 $100,418 $— $— $100,418 
FHLB advances and other borrowings5,741 5,769 — — 5,769 
(1) Estimated fair values are consistent with an exit price concept.

December 31, 2025
(in millions)Carrying Value
Fair Value(1)
Level 1Level 2Level 3
Financial assets
Securities purchased with agreement to resell$96 $96 $— $— $96 
Investment securities held to maturity2,591 2,410 20 2,390 — 
Loans held for sale97 98 — 98 — 
Loans, net38,712 38,288 — — 38,288 
Financial liabilities
Deposits and securities sold under agreements to repurchase$47,717 $46,735 $— $— $46,735 
FHLB advances and other borrowings2,205 2,232 — — 2,232 
(1) Estimated fair values are consistent with an exit price concept.