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Fair Value of Financial Instruments (Tables)

9 Months Ended

Sep. 30, 2025

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following tables present financial instruments measured at fair value on a recurring basis as of September 30, 2025 and December 31, 2024, by caption on the consolidated balance sheets and by FASB ASC 820 valuation hierarchy (as described above) (in thousands):

			Total carrying value in the consolidated balance sheet						Quoted market prices in an active market (Level 1)						Models with significant observable market parameters (Level 2)						Models with significant unobservable market parameters (Level 3)
September 30, 2025
Investment securities available-for-sale:
U.S. Treasury securities			$	1,593,558					$	—					$	1,593,558					$	—
U.S. Government agency securities			203,816						—						203,816						—
Mortgage-backed securities			2,618,190						—						2,618,190						—
State and municipal securities			1,690,538						—						1,690,538						—
Agency-backed securities			195						—						195						—
Corporate notes and other			305,509						—						292,582						12,927
Total investment securities available-for-sale			6,411,806						—						6,398,879						12,927
Other investments			238,395						—						22,750						215,645
Mortgage servicing rights			10,684						—						—						10,684
Other assets			203,557						—						203,557						—
Total assets at fair value			$	6,864,442					$	—					$	6,625,186					$	239,256
Other liabilities			$	78,561					$	—					$	78,561					$	—
Total liabilities at fair value			$	78,561					$	—					$	78,561					$	—
December 31, 2024
Investment securities available-for-sale:
U.S. Treasury securities			$	1,405,478					$	—					$	1,405,478					$	—
U.S. Government agency securities			214,066						—						214,066						—
Mortgage-backed securities			1,962,359						—						1,962,359						—
State and municipal securities			1,506,557						—						1,506,222						335
Agency-backed securities			45,338						—						45,338						—
Corporate notes and other			448,571						—						435,682						12,889
Total investment securities available-for-sale			5,582,369						—						5,569,145						13,224
Other investments			198,721						—						22,170						176,551
Mortgage servicing rights			11,854						—						—						11,854
Other assets			177,100						—						177,100						—
Total assets at fair value			$	5,970,044					$	—					$	5,768,415					$	201,629
Other liabilities			$	98,311					$	—					$	98,311					$	—
Total liabilities at fair value			$	98,311					$	—					$	98,311					$	—

Assets and Liabilities Measured at Fair Value on a Nonrecurring Basis

The following table presents assets measured at fair value on a nonrecurring basis as of September 30, 2025 and December 31, 2024 (in thousands):

September 30, 2025			Total carrying value in the consolidated balance sheet						Quoted market prices in an active market (Level 1)						Models with significant observable market parameters (Level 2)						Models with significant unobservable market parameters (Level 3)
Other real estate owned			$	5,129					$	—					$	—					$	5,129
Collateral dependent loans (1)			113,230						—						—						113,230
Total			$	118,359					$	—					$	—					$	118,359
December 31, 2024
Other real estate owned			$	1,278					$	—					$	—					$	1,278
Collateral dependent loans (1)			84,273						—						—						84,273
Total			$	85,551					$	—					$	—					$	85,551

(1) The carrying values of collateral dependent loans at September 30, 2025 and December 31, 2024 are net of valuation allowances of $34.5 million and $54.7 million, respectively.

Rollforward of the Balance Sheet Amounts, Unobservable Input Reconciliation

The table below includes a rollforward of the balance sheet amounts for the three and nine months ended September 30, 2025 and 2024 (including the change in fair value) for financial instruments classified by Pinnacle Financial within Level 3 of the valuation hierarchy measured at fair value on a recurring basis including changes in fair value due in part to observable factors that are part of the valuation methodology (in thousands):

			For the Three months ended September 30,																					For the Nine months ended September 30,
			2025									2024												2025									2024
			Available-for-sale securities			Other investments			Mortgage servicing rights						Available-for-sale securities			Other  investments			Mortgage servicing rights									Available-for-sale securities			Other investments			Mortgage servicing rights			Available-for-sale securities			Other investments			Mortgage servicing rights
Fair value, beginning of period			$	13,086		$	199,420		$	10,903					$	13,197		$	168,312		$	11,301								$13,224			$176,551			$11,854			$479			$157,140			$—
Total realized gains (losses) included in income			14			4,822			(219)						13			2,414			(343)									40			8,396			(1,170)			39			1,879			10,958
Changes in unrealized gains/losses included in other comprehensive income (loss)			—			—			—						2			—			—									2			—			—			18			—			—
Transfers into Level 3			—			—			—						—			—			—									—			—			—			12,841			—			—
Purchases			—			12,879			—						—			5,608			—									—			37,501			—			—			22,910			—
Issuances			—			—			—						—			—			—									—			—			—			—			—			—
Settlements			(173)			(1,476)			—						—			(6,078)			—									(339)			(6,803)			—			(165)			(11,673)			—
Transfers out of Level 3			—			—			—						—			—			—									—			—			—			—			—			—
Fair value, end of period			$	12,927		$	215,645		$	10,684					$	13,212		$	170,256		$	10,958								$12,927			$215,645			$10,684			$13,212			$170,256			$10,958
Total net realized gains (losses) included in income			$	14		$	4,822		$	(219)					$	13		$	2,414		$	(343)								$40			$8,396			$(1,170)			$39			$1,879			$10,958

Carrying Amounts, Estimated Fair Value and Placement in the Fair Value Hierarchy of Financial Instruments

The following tables present the carrying amounts, estimated fair value and placement in the fair value hierarchy of Pinnacle Financial's financial instruments at September 30, 2025 and December 31, 2024. 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 to the relatively short time between the origination of the instrument and its expected realization. For financial liabilities such as non-interest bearing demand, interest-bearing demand, and savings deposits, the carrying amount is a reasonable estimate of fair value due to these products having no stated maturity (in thousands):

			Carrying Amount						Estimated Fair Value (1)						Quoted market prices in an active market (Level 1)						Models with significant observable market parameters (Level 2)						Models with significant unobservable market parameters (Level 3)
September 30, 2025
Financial assets:
Securities purchased with agreement to resell			$	83,120					$	83,121					$	—					$	—					$	83,121
Securities held-to-maturity			2,644,802						2,432,068						—						2,432,068						—
Loans, net			37,498,163						37,082,950						—						—						37,082,950
Consumer loans held-for-sale			163,129						163,509						—						163,509						—
Commercial loans held-for-sale			12,267						12,296						—						12,296						—
Financial liabilities:
Deposits and securities sold under
agreements to repurchase			46,052,697						45,108,617						—						—						45,108,617
Federal Home Loan Bank advances			1,777,003						1,802,117						—						—						1,802,117
Subordinated debt and other borrowings			426,483						429,775						—						—						429,775
December 31, 2024
Financial assets:
Securities purchased with agreement to resell			$	66,449					$	66,451					$	—					$	—					$	66,451
Securities held-to-maturity			2,798,899						2,560,252						—						2,560,252						—
Loans, net			35,071,282						34,440,683						—						—						34,440,683
Consumer loans held-for-sale			175,627						175,838						—						175,838						—
Commercial loans held-for-sale			19,700						19,724						—						19,724						—
Financial liabilities:
Deposits and securities sold under
agreements to repurchase			43,073,236						42,190,235						—						—						42,190,235
Federal Home Loan Bank advances			1,874,134						1,874,588						—						—						1,874,588
Subordinated debt and other borrowings			425,821						431,996						—						—						431,996

(1)Estimated fair values are consistent with an exit-price concept. The assumptions used to estimate the fair values are intended to approximate those that a market-participant would realize in a hypothetical orderly transaction.

X

- Definition

Tabular disclosure of assets and liabilities by class, including financial instruments measured at fair value that are classified in shareholders' equity, if any, that are measured at fair value on a nonrecurring basis in periods after initial recognition (for example, impaired assets). Disclosures may include, but are not limited to: (a) the fair value measurements recorded and the reasons for the measurements and (b) the level within the fair value hierarchy in which the fair value measurements are categorized in their entirety (levels 1, 2, 3).

+ References

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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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Tabular disclosure of the fair value of financial instruments, including financial assets and financial liabilities, and the measurements of those instruments, assets, and liabilities.

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