v3.26.1
Securities
 6 Months Ended
Jun. 30, 2026
Investments [Abstract]  
Securities
Note 4 - Securities
The amortized cost, gross unrealized gains and losses, and estimated fair values of debt securities at June 30, 2026 and December 31, 2025 are summarized below.
June 30, 2026
(in millions)Amortized CostGross Unrealized GainsGross Unrealized LossesFair Value
Securities held to maturity:
U.S. Treasury securities$20 $— $— $20 
U.S. Government agency securities226 — (4)222 
Mortgage-backed securities334 — (19)315 
State and municipal securities1,748 1 (130)1,619 
Asset-backed securities55 — (2)53 
Corporate notes and other 67 — (4)63 
Total securities held to maturity(1)
$2,450 $1 $(159)$2,292 
Allowance for credit losses- securities held to maturity$(2)
Securities HTM, net of allowance for credit losses$2,448 
Securities available for sale:
U.S. Treasury securities$2,860 $— $(22)$2,838 
U.S. Government agency securities205 — (17)188 
Mortgage-backed securities14,550 10 (205)14,355 
State and municipal securities519 3 (26)496 
Corporate notes and other286 1 (11)276 
Total securities available for sale(2)
$18,420 $14 $(281)$18,153 
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 $25 million and $26 million at June 30, 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 $12 million and $16 million at June 30, 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 $78 million and $42 million at June 30, 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 June 30, 2026 and December 31, 2025, debt securities with carrying values of $7.6 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 June 30, 2026 and December 31, 2025 are presented below.
June 30, 2026
Less than 12 Months12 Months or LongerTotal
(in millions)Fair ValueGross Unrealized LossesFair ValueGross Unrealized LossesFair ValueGross Unrealized Losses
U.S. Treasury securities$1,439 $(19)$886 $(3)$2,325 $(22)
U.S. Government agency securities— — 186 (17)186 (17)
Mortgage-backed securities11,802 (140)724 (65)12,526 (205)
State and municipal securities20 — 338 (26)358 (26)
Corporate notes and other45 (1)143 (10)188 (11)
Total$13,306 $(160)$2,277 $(121)$15,583 $(281)
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 June 30, 2026, Pinnacle had approximately $281 million in gross unrealized losses with an approximate fair value of $15.6 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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.
June 30, 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 value20 — — — 20 
U.S. Government agency securities
Amortized cost136 65 25 — 226 
Fair value135 64 23 — 222 
Mortgage-backed securities
Amortized cost4 111 129 90 334 
Fair value4 104 123 84 315 
June 30, 2026
(in millions)Within One
 Year		1 to 5
Years		5 to 10
 Years		More Than
 10 Years		Total
State and municipal securities
Amortized cost1 11 41 1,695 1,748 
Fair value1 11 40 1,567 1,619 
Asset-backed securities
Amortized cost— — — 55 55 
Fair value— — — 53 53 
Corporate notes and other
Amortized cost— 56 11 — 67 
Fair value— 53 10 — 63 
Securities AFS:
U.S. Treasury securities
Amortized cost$615 $1,356 $— $889 $2,860 
Fair value615 1,337 — 886 2,838 
U.S. Government agency securities
Amortized cost— 188 2 15 205 
Fair value— 173 2 13 188 
Mortgage-backed securities
Amortized cost45 2,644 1,173 10,688 14,550 
Fair value44 2,593 1,148 10,570 14,355 
State and municipal securities
Amortized cost— — 4 515 519 
Fair value— — 6 490 496 
Corporate notes and other
Amortized cost5 121 142 18 286 
Fair value5 116 139 16 276 
During the second quarter of 2026, as part of ongoing strategic repositioning of the investment securities portfolio, Pinnacle sold at amortized cost $974 million of state and municipal securities, which resulted in realized net losses of $29 million.
Gross gains and gross losses on sales of securities AFS for the three and six months ended June 30, 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 June 30,Six Months Ended June 30,
(in millions)2026202520262025
Gross realized gains on sales(1)
$16 $— $29 $— 
Gross realized losses on sales(45)— (55)(13)
Investment securities gains (losses), net$(29)$— $(26)$(13)
(1) Includes gains (losses) of $15 million and $25 million for the three and six months ended June 30, 2026 on the termination of fair value hedges related to the U.S Treasury securities and state and municipal securities portfolios.