Fair Value Accounting (Tables)

9 Months Ended

Sep. 30, 2026

Schedule of Assets and Liabilities Measured at Estimated Fair Value on a Recurring Basis

The following table presents assets and liabilities measured at estimated fair value on a recurring basis.


	September 30, 2026								December 31, 2025
(in millions)	Level 1		Level 2		Level 3		Total Estimated Fair Value		Level 1		Level 2		Level 3		Total Estimated Fair Value
Assets
Trading securities:
U.S. Treasury securities	$	3	$	—	$	—	$	3	$	—	$	—	$	—	$	—



Asset-backed securities	—		8		—		8		—		—		—		—

Total trading securities	$	3	$	8	$	—	$	11	$	—	$	—	$	—	$	—
Securities available for sale:
U.S. Treasury securities	$	2,761	$	—	$	—	$	2,761	$	1,586	$	—	$	—	$	1,586
U.S. Government agency securities	—		183		—		183		—		195		—		195

Mortgage-backed securities	—		14,534		—		14,534		—		2,794		—		2,794

State and municipal securities	—		444		—		444		—		1,709		—		1,709
Corporate notes and other	—		268		—		268		—		283		—		283
Total securities available for sale	$	2,761	$	15,429	$	—	$	18,190	$	1,586	$	4,981	$	—	$	6,567
Mortgage loans held for sale	$	—	$	28	$	—	$	28	$	—	$	—	$	—	$	—
Other investments	—		37		304		341		—		23		230		253
Mutual funds held in rabbi trusts	100		—		—		100		13		—		—		13

Derivative assets	—		243		—		243		—		210		—		210
Liabilities

Mutual funds held in rabbi trusts	94		—		—		94		7		—		—		7
Derivative liabilities(1)	—		364		—		364		—		80		—		80

(1) Excludes from Level 3 the Visa derivative of $3 million at September 30, 2026.

Schedule of Mortgage Loans Held for Sale and Changes in Fair Value Included in Net 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 no material changes in fair value in net income for the three and nine months ended September 30, 2026.


Mortgage Loans Held for Sale
(in millions)	As of September 30, 2026
Fair value	$	28
Unpaid principal balance	28
Fair value less aggregate unpaid principal balance	$	—

Schedule of Level 3 Assets Measured at Fair Value on a Recurring Basis

The following tables provide rollforwards of Level 3 assets measured at fair value on a recurring basis.


		Three Months Ended September 30, 2026
(in millions)		Other Investments
Ending balance at June 30, 2026		$	294

Total gains (losses) realized/unrealized:
Included in earnings		4
Purchases		14
Settlements		(8)
Ending balance at September 30, 2026		$	304
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September 30, 2026		$	4

	Three Months Ended September 30, 2025
(in millions)		Other Investments
Beginning balance at June 30, 2025		$	199
Total gains (losses) realized/unrealized:
Included in earnings		5
Purchases		13
Settlements		(1)
Ending balance at September 30, 2025		$	216
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September 30, 2025		$	5


	Nine Months Ended September 30, 2026
(in millions)	Other Investments
Beginning balance at December 31, 2025	$	230
Impact from the Merger	40
Total gains (losses) realized/unrealized:
Included in earnings	17
Purchases	31
Settlements	(14)
Ending balance at September 30, 2026	$	304
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September 30, 2026	$	17

	Nine Months Ended September 30, 2025
(in millions)	Other Investments
Beginning balance at December 31, 2024	$	177
Total gains (losses) realized/unrealized:
Included in earnings	8

Purchases	37
Settlements	(6)
Ending balance at September 30, 2025	$	216
Total net gains (losses) for the period included in earnings attributable to the change in unrealized gains (losses) relating to assets still held at September 30, 2025	$	8

Schedule of Assets Measured at Fair Value on a Non-Recurring Basis

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.


	September 30, 2026
(in millions)	Level 1		Level 2		Level 3
Collateral dependent loans (1)	$	—	$	—	$	100


Other real estate (2)	—		—		17

	December 31, 2025
(in millions)	Level 1		Level 2		Level 3
Collateral dependent loans (1)	$	—	$	—	$	80

Other real estate	—		—		8

(1) The carrying values of collateral dependent loans at September 30, 2026 and December 31, 2025 are net of valuation allowances of $32 million and $32 million, respectively.

(2) The carrying value of other real estate at September 30, 2026 is net of writedowns of $12 million recorded as part of the preliminary purchase price allocation of the Merger. Refer to Note 2 - Business Combination in this Report for additional information.

Schedule of Carrying and Estimated Fair Values of Financial Instruments

The following tables present the carrying and estimated fair values of financial instruments at September 30, 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.


	September 30, 2026
(in millions)	Carrying Value		Fair Value(1)		Level 1		Level 2		Level 3
Financial assets


Securities purchased with agreement to resell	$	26	$	26	$	—	$	—	$	26
Investment securities held to maturity	2,380		2,050		—		2,050		—

Loans held for sale	658		658		—		658		—


Loans, net	88,822		87,497		—		—		87,497



Financial liabilities



Deposits and securities sold under agreements to repurchase	$	103,622	$	103,605	$	—	$	—	$	103,605



FHLB advances and other borrowings	9,985		9,982		—		—		9,982

(1) Estimated fair values are consistent with an exit price concept.


	December 31, 2025
(in millions)	Carrying Value		Fair Value(1)		Level 1		Level 2		Level 3
Financial assets


Securities purchased with agreement to resell	$	96	$	96	$	—	$	—	$	96
Investment securities held to maturity	2,591		2,410		20		2,390		—

Loans held for sale	97		98		—		98		—


Loans, net	38,712		38,288		—		—		38,288




Financial liabilities



Deposits and securities sold under agreements to repurchase	$	47,717	$	46,735	$	—	$	—	$	46,735



FHLB advances and other borrowings	2,205		2,232		—		—		2,232

(1) Estimated fair values are consistent with an exit price concept.

- Definition

Tabular disclosure of the fair value measurement of assets using significant unobservable inputs (Level 3), a reconciliation of the beginning and ending balances, separately presenting changes during the period attributable to the following: (1) total gains or losses for the period (realized and unrealized), segregating those gains or losses included in earnings (or changes in net assets) and gains or losses recognized in other comprehensive income (loss), and a description of where those gains or losses included in earnings (or changes in net assets) are reported in the statement of income (or activities); (2) purchases, sales, issues, and settlements (each type disclosed separately); and (3) transfers in and transfers out of Level 3 (for example, transfers due to changes in the observability of significant inputs), by class of asset.

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