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VARIABLE INTEREST ENTITIES (Tables)

12 Months Ended

Dec. 31, 2025

Equity Method Investments and Joint Ventures [Abstract]

The following table summarizes the carrying amount of assets and liabilities for the Company’s consolidated VIEs:


	December 31,
(dollars in millions)	2025	2024
Assets:

Interest-bearing deposits in banks	$157	$209
Net loans and leases	1,929	3,843
Other assets	11	21
Total assets	$2,097	$4,073
Liabilities:
Long-term borrowed funds	$1,598	$3,375
Other liabilities	4	8
Total liabilities	$1,602	$3,383

The following table provides a summary of the assets and liabilities included in the Consolidated Balance Sheets related to unconsolidated VIEs that the Company holds an interest in, but is not the primary beneficiary of:


	December 31,
(dollars in millions)	2025	2024
Lending to SPEs included in Loans and leases	$5,631	$4,215
Tax-advantaged investments included in Other assets(1)	2,967	2,902
Unfunded commitments for tax-advantaged investments included in Other liabilities	1,066	1,109
Asset-backed investments included in Debt securities	338	412

(1) Includes LIHTC and renewable energy investments.

Schedule of affordable housing tax credit investments

The following table summarizes the impact to the Consolidated Statements of Operations relative to the Company’s tax credit programs for which it has elected to apply the proportional amortization method of accounting:


	Year Ended December 31,
(dollars in millions)	2025	2024	2023
Tax credits recognized	$410	$379	$334
Other tax benefits recognized	98	93	71
Amortization	(406)	(363)	(320)
Net benefit (expense) included in Income tax expense	102	109	85
Other income	6	4	5
Allocated income (loss) on investments	(12)	(12)	(10)
Net benefit (expense) included in Noninterest income	(6)	(8)	(5)
Net benefit (expense) included in the Consolidated Statements of Operations(1)	$96	$101	$80

(1) Includes the impact of tax-advantaged investments when the election to apply the proportional amortization method was in effect during the periods presented.

- Definition

Tabular disclosure of the significant judgments and assumptions made in determining whether a variable interest (as defined) held by the entity requires the variable interest entity (VIE) (as defined) to be consolidated and (or) disclose information about its involvement with the VIE, individually or in aggregate (as applicable); the nature of restrictions, if any, on the consolidated VIE's assets and on the settlement of its liabilities reported by an entity in its statement of financial position, including the carrying amounts of such assets and liabilities; the nature of, and changes in, the risks associated with involvement in the VIE; how involvement with the VIE affects the entity's financial position, financial performance, and cash flows; the lack of recourse if creditors (or beneficial interest holders) of the consolidated VIE have no recourse to the general credit of the primary beneficiary (if applicable); the terms of arrangements, giving consideration to both explicit arrangements and implicit variable interests, if any, that could require the entity to provide financial support to the VIE, including events or circumstances that could expose the entity to a loss; the methodology used by the entity for determining whether or not it is the primary beneficiary of the variable interest entity; the significant factors considered and judgments made in determining that the power to direct the activities of a VIE that most significantly impact the VIE's economic performance are shared (as defined); the carrying amounts and classification of assets and liabilities of the VIE included in the statement of financial position; the entity's maximum exposure to loss, if any, as a result of its involvement with the VIE, including how the maximum exposure is determined and significant sources of the entity's exposure to the VIE; a comparison of the carrying amounts of the assets and liabilities and the entity's maximum exposure to loss; information about any liquidity arrangements, guarantees, and (or) other commitments by third parties that may affect the fair value or risk of the entity's variable interest in the VIE; whether or not the entity has provided financial support or other support (explicitly or implicitly) to the VIE that it was not previously contractually required to provide or whether the entity intends to provide that support, including the type and amount of the support and the primary reasons for providing the support; and supplemental information the entity determines necessary to provide.

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