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Securities
 12 Months Ended
Dec. 31, 2019
Investments, Debt and Equity Securities [Abstract]  
Securities
Note 4.  Securities

The amortized cost and fair value of securities available-for-sale and held-to-maturity at December 31, 2019 and 2018 are summarized as follows (in thousands):
Amortized CostGross
Unrealized
Gains		Gross
Unrealized
Losses		Fair
Value
December 31, 2019
Securities available-for-sale:    
U.S Treasury securities$72,862  $19  $14  $72,867  
U.S. Government agency securities80,096  306  710  79,692  
Mortgage-backed securities1,458,894  12,789  7,776  1,463,907  
State and municipal securities1,669,606  52,096  7,249  1,714,453  
Asset-backed securities153,963  302  1,293  152,972  
Corporate notes56,212  635  743  56,104  
 $3,491,633  $66,147  $17,785  $3,539,995  
Securities held-to-maturity:    
State and municipal securities188,996  12,221  —  201,217  
 $188,996  $12,221  $—  $201,217  
December 31, 2018    
Securities available-for-sale:    
U.S Treasury securities$30,325  $—  $25  $30,300  
U.S. Government agency securities71,456  49  1,346  70,159  
Mortgage-backed securities1,336,469  3,110  28,634  1,310,945  
State and municipal securities1,259,267  1,126  30,739  1,229,654  
Asset-backed securities379,107  820  4,345  375,582  
Corporate notes69,399  170  2,523  67,046  
 $3,146,023  $5,275  $67,612  $3,083,686  
Securities held-to-maturity:    
State and municipal securities194,282  152  1,303  193,131  
 $194,282  $152  $1,303  $193,131  
 
In 2018, Pinnacle Financial transferred, at fair value, $179.8 million of municipal securities from the available-for-sale portfolio to the held-to-maturity portfolio. The related net unrealized after tax losses of $2.2 million remained in accumulated other comprehensive income (loss) and will be amortized over the remaining life of the securities, offsetting the related amortization of discount on the transferred securities. No gains or losses were recognized at the time of the transfer. At December 31, 2019, approximately $1.1 billion of Pinnacle Financial's investment portfolio was pledged to secure public funds and other deposits and securities sold under agreements to repurchase. At December 31, 2019, repurchase agreements comprised of secured borrowings
totaled $126.4 million and were secured by $126.4 million of pledged U.S. government agency securities, municipal securities, asset backed securities, and corporate debentures. As the fair value of securities pledged to secure repurchase agreements may decline, Pinnacle Financial regularly evaluates its need to pledge additional securities for the counterparty to remain adequately secured.
 
The amortized cost and fair value of debt securities as of December 31, 2019 by contractual maturity are shown below. Actual maturities may differ from contractual maturities of mortgage-backed securities since the mortgages underlying the securities may be called or prepaid with or without penalty. Therefore, these securities are not included in the maturity categories in the following summary (in thousands):

 Available-for-saleHeld-to-maturity
 Amortized
Cost		Fair
Value		Amortized
Cost		Fair
Value
Due in one year or less$72,914  $72,916  $1,062  $1,062  
Due in one year to five years12,879  13,083  —  —  
Due in five years to ten years103,099  103,584  5,772  5,860  
Due after ten years1,689,884  1,733,533  182,162  194,295  
Mortgage-backed securities1,458,894  1,463,907  —  —  
Asset-backed securities153,963  152,972  —  —  
 $3,491,633  $3,539,995  $188,996  $201,217  

At December 31, 2019 and 2018, included in securities were the following investments with unrealized losses. The information below classifies these investments according to the term of the unrealized loss of less than twelve months or twelve months or longer (in thousands):
 Investments with an Unrealized Loss of
less than 12 months		Investments with an
Unrealized Loss of
12 months or longer		Total Investments
with an
Unrealized Loss
 Fair ValueUnrealized LossesFair ValueUnrealized LossesFair ValueUnrealized
Losses
December 31, 2019      
U.S. Treasury securities$40,505  $14  $—  $—  $40,505  $14  
U.S. government agency securities1,222  1  30,892  709  32,114  710  
Mortgage-backed securities458,881  5,102  163,767  2,674  622,648  7,776  
State and municipal securities204,958  1,938  244,884  5,311  449,842  7,249  
Asset-backed securities75,488  796  59,816  497  135,304  1,293  
Corporate notes—  —  16,908  743  16,908  743  
Total temporarily-impaired securities$781,054  $7,851  $516,267  $9,934  $1,297,321  $17,785  
December 31, 2018      
U.S. Treasury securities$30,054  $22  $246  $3  $30,300  $25  
U.S. government agency securities13,697  328  42,539  1,018  56,236  1,346  
Mortgage-backed securities203,299  2,134  882,231  26,500  1,085,530  28,634  
State and municipal securities1,044,757  30,780  198,610  4,078  1,243,367  34,858  
Asset-backed securities268,677  4,118  11,828  227  280,505  4,345  
Corporate notes26,272  1,538  25,915  985  52,187  2,523  
Total temporarily-impaired securities$1,586,756  $38,920  $1,161,369  $32,811  $2,748,125  $71,731  

The applicable date for determining when securities are in an unrealized loss position is December 31, 2019 and 2018.  As such, it is possible that a security had a market value less than its amortized cost on other days during the twelve-month periods ended December 31, 2019 and 2018, but is not in the "Investments with an Unrealized Loss of less than 12 months" category above.

As shown in the table above, at December 31, 2019 and 2018, Pinnacle Financial had unrealized losses of $17.8 million and $71.7 million on $1.3 billion and $2.7 billion, respectively, of available-for-sale and held-to-maturity securities. The unrealized losses associated with the $179.8 million of municipal securities transferred from the available-for-sale portfolio to the held-to-maturity portfolio in 2018 represent unrealized losses since the date of purchase, independent of the impact associated with changes in the cost basis upon transfer between portfolios.
The unrealized losses associated with the investment securities are primarily driven by changes in interest rates and typically are not due to the credit quality of the securities. The securities will continue to be monitored as a part of our ongoing impairment analysis, but are expected to perform even if the rating agencies reduce the credit rating of the bond issuers. 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.  Because Pinnacle Financial currently does not intend to sell these securities and it is not more-likely-than-not that Pinnacle Financial will be required to sell the securities before recovery of their amortized cost bases, which may be maturity, Pinnacle Financial does not consider these securities to be other-than-temporarily impaired at December 31, 2019.

Periodically, available-for-sale securities may be sold or the composition of the portfolio realigned to improve yields, quality or marketability, or to implement changes in investment or asset/liability strategy, including maintaining collateral requirements and raising funds for liquidity purposes. Additionally, if an available-for-sale security loses its investment grade or tax-exempt status, the underlying credit support is terminated or collection otherwise becomes uncertain based on factors known to management, Pinnacle Financial will consider selling the security, but will review each security on a case-by-case basis as these factors become known. Consistent with the investment policy, in 2019 available-for-sale securities of approximately $737.7 million were sold and net unrealized losses, net of tax, of $4.4 million were reclassified from accumulated other comprehensive income into net income.
 
The carrying values of Pinnacle Financial's investment securities could decline in the future if the financial condition of the securities' issuers deteriorates and management determines it is probable that Pinnacle Financial will not recover the entire amortized cost bases of the securities.  As a result, there is a risk that other-than-temporary impairment charges may occur in the future. Additionally, there is a risk that other-than-temporary impairment charges may occur in the future if management's intention to hold these securities to maturity and/or recovery changes. Pinnacle Financial 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 14. Derivative Instruments 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.