LOANS AND LEASES

6 Months Ended

Jun. 30, 2024

Receivables [Abstract]

LOANS AND LEASES

NOTE 4 — LOANS AND LEASES

Unless otherwise noted, loans held for sale are not included in the following tables. Leases in the following tables include finance leases, but exclude operating lease equipment.

Loans by Class

dollars in millions	June 30, 2024		December 31, 2023
Commercial
Commercial construction	$	4,484	$	3,918
Owner occupied commercial mortgage	16,233		15,471
Non-owner occupied commercial mortgage	15,580		14,995
Commercial and industrial	30,684		29,794
Leases	2,049		2,054
Total commercial	69,030		66,232
Consumer
Residential mortgage	23,101		22,776
Revolving mortgage	2,351		2,165
Consumer auto	1,503		1,442
Consumer other	1,388		1,176
Total consumer	28,343		27,559
SVB
Global fund banking	28,915		25,553
Investor dependent - early stage	1,179		1,403
Investor dependent - growth stage	2,627		2,897
Innovation C&I and cash flow dependent	9,247		9,658
Total SVB	41,968		39,511
Total loans and leases	$	139,341	$	133,302

Refer to Note 1—Significant Accounting Policies and Basis of Presentation for discussion of the changes in loan classes.

At June 30, 2024 and December 31, 2023, accrued interest receivable on loans included in other assets was $664 million and $625 million, respectively, and was excluded from the estimate of credit losses.

The discount on acquired loans is accreted to interest income over the contractual life of the loan using the effective interest method. Discount accretion income, which primarily related to the SVBB Acquisition, was $145 million and $308 million for the three and six months ended June 30, 2024, including $20 million and $56 million for unfunded commitments, respectively. Discount accretion income, which primarily related to the SVBB Acquisition, was $243 million and $260 million for the three and six months ended June 30, 2023, including $17 million and $20 million for unfunded commitments, respectively.

The following table presents selected components of the amortized cost of loans, including the unamortized discount on acquired loans.

Components of Amortized Cost

dollars in millions	June 30, 2024		December 31, 2023
Deferred fees, including unamortized costs and unearned fees on non-PCD loans	$	(90)	$	(72)
Net unamortized discount on acquired loans
Non-PCD	$	1,655	$	1,860
PCD	126		176
Total net unamortized discount	$	1,781	$	2,036

The aging of the outstanding loans and leases by class at June 30, 2024 and December 31, 2023 is provided in the tables below. Loans and leases less than 30 days past due are considered current, as various grace periods allow borrowers to make payments within a stated period after the due date and remain in compliance with the respective agreement.

Loans and Leases - Delinquency Status

dollars in millions	June 30, 2024
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total
Commercial
Commercial construction	$	74	$	—	$	—	$	74	$	4,410	$	4,484
Owner occupied commercial mortgage	52		14		29		95		16,138		16,233
Non-owner occupied commercial mortgage	66		2		412		480		15,100		15,580
Commercial and industrial	111		64		117		292		30,392		30,684
Leases	43		13		11		67		1,982		2,049
Total commercial	346		93		569		1,008		68,022		69,030
Consumer
Residential mortgage	142		50		79		271		22,830		23,101
Revolving mortgage	15		5		11		31		2,320		2,351
Consumer auto	9		3		2		14		1,489		1,503
Consumer other	4		3		4		11		1,377		1,388
Total consumer	170		61		96		327		28,016		28,343
SVB
Global fund banking	—		—		—		—		28,915		28,915
Investor dependent - early stage	2		2		7		11		1,168		1,179
Investor dependent - growth stage	—		6		5		11		2,616		2,627
Innovation C&I and cash flow dependent	—		41		13		54		9,193		9,247
Total SVB	2		49		25		76		41,892		41,968
Total loans and leases	$	518	$	203	$	690	$	1,411	$	137,930	$	139,341
	December 31, 2023
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total
Commercial
Commercial construction	$	43	$	8	$	2	$	53	$	3,865	$	3,918
Owner occupied commercial mortgage	21		10		47		78		15,393		15,471
Non-owner occupied commercial mortgage	100		188		283		571		14,424		14,995
Commercial and industrial	177		49		116		342		29,452		29,794
Leases	55		15		21		91		1,963		2,054
Total commercial	396		270		469		1,135		65,097		66,232
Consumer
Residential mortgage	136		33		73		242		22,534		22,776
Revolving mortgage	15		3		11		29		2,136		2,165
Consumer auto	9		3		2		14		1,428		1,442
Consumer other	8		3		4		15		1,161		1,176
Total consumer	168		42		90		300		27,259		27,559
SVB
Global fund banking	—		—		—		—		25,553		25,553
Investor dependent - early stage	10		12		9		31		1,372		1,403
Investor dependent - growth stage	5		2		7		14		2,883		2,897
Innovation C&I and cash flow dependent	27		3		40		70		9,588		9,658
Total SVB	42		17		56		115		39,396		39,511
Total loans and leases	$	606	$	329	$	615	$	1,550	$	131,752	$	133,302

The amortized cost by class of loans and leases on nonaccrual status, and loans and leases greater than 90 days past due and still accruing at June 30, 2024 and December 31, 2023 are presented below.

Loans on Nonaccrual Status (1) (2)

dollars in millions	June 30, 2024				December 31, 2023
	Nonaccrual Loans		Loans > 90 Days and Accruing		Nonaccrual Loans		Loans > 90 Days and Accruing
Commercial
Commercial construction	$	1	$	—	$	2	$	1
Owner occupied commercial mortgage	66		1		60		8
Non-owner occupied commercial mortgage	533		105		411		39
Commercial and industrial	246		34		194		59
Leases	34		1		31		7
Total commercial	880		141		698		114
Consumer
Residential mortgage	121		8		127		4
Revolving mortgage	22		—		21		—
Consumer auto	6		—		5		—
Consumer other	1		3		1		3
Total consumer	150		11		154		7
SVB
Global fund banking	—		—		—		—
Investor dependent - early stage	40		—		37		2
Investor dependent - growth stage	47		—		37		—
Innovation C&I and cash flow dependent	24		—		43		—
Total SVB	111		—		117		2
Total loans and leases	$	1,141	$	152	$	969	$	123

(1)    Accrued interest that was reversed when the loan went to nonaccrual status was $8 million for the six months ended June 30, 2024 and $10 million for the year ended December 31, 2023.

(2)    Nonaccrual loans for which there was no related ALLL totaled $233 million at June 30, 2024 and $138 million at December 31, 2023.

Other real estate owned (“OREO”) and repossessed assets were $64 million as of June 30, 2024 and $62 million as of December 31, 2023.

Credit Quality Indicators

Loans and leases are monitored for credit quality on a recurring basis. Commercial loans and leases and consumer loans have different credit quality indicators as a result of the unique characteristics of the loan classes being evaluated. The credit quality indicators for commercial loans and leases are developed through a review of individual borrowers on an ongoing basis. Commercial loans are evaluated periodically with more frequent evaluations done on criticized loans. The indicators as of the date presented are based on the most recent assessment performed and are defined below:

Pass – A pass rated asset is not adversely classified because it does not display any of the characteristics for adverse classification.

Special mention – A special mention asset has potential weaknesses which deserve management’s close attention. If left uncorrected, such potential weaknesses may result in deterioration of the repayment prospects or collateral position at some future date. Special mention assets are not adversely classified and do not warrant adverse classification.

Substandard – A substandard asset is inadequately protected by the current net worth and paying capacity of the borrower or of the collateral pledged, if any. Assets classified as substandard generally have a well-defined weakness, or weaknesses, that jeopardize the liquidation of the debt. These assets are characterized by the distinct possibility of loss if the deficiencies are not corrected.

Doubtful – An asset classified as doubtful has all the weaknesses inherent in an asset classified substandard with the added characteristic that the weaknesses make collection or liquidation in full highly questionable and improbable on the basis of currently existing facts, conditions and values.

Loss – Assets classified as loss are considered uncollectible and of such little value it is inappropriate to be carried as an asset. This classification is not necessarily equivalent to any potential for recovery or salvage value, but rather it is not appropriate to defer a full charge-off even though partial recovery may be affected in the future.

Ungraded – Ungraded loans represent loans not included in the individual credit grading process due to their relatively small balances or borrower type. The majority of ungraded loans at June 30, 2024 and December 31, 2023, relate to business credit cards. Business credit card loans are subject to automatic charge-off when they become 120 days past due in the same manner as unsecured consumer lines of credit.

The credit quality indicator for consumer loans is based on delinquency status of the borrower as of the date presented. As the borrower becomes more delinquent, the likelihood of loss increases. An exemption is applied to government guaranteed loans as the principal repayments are insured by the Federal Housing Administration and U.S. Department of Veterans Affairs and thus remain on accrual status regardless of delinquency status.

The following tables summarize the commercial and SVB loans disaggregated by year of origination and by risk rating. The consumer loan delinquency status by year of origination is also presented below. The tables reflect the amortized cost of the loans and include PCD loans.

Commercial Loans - Risk Classifications by Class

June 30, 2024
Risk Classification:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2024		2023		2022		2021		2020		2019 & Prior		Revolving				Total
Commercial construction
Pass	$	481	$	1,561	$	1,521	$	419	$	173	$	85	$	70	$	—	$	4,310
Special Mention	—		2		68		2		14		22		—		—		108
Substandard	3		6		15		13		—		29		—		—		66
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total commercial construction	484		1,569		1,604		434		187		136		70		—		4,484
Owner occupied commercial mortgage
Pass	1,448		2,457		2,895		2,755		2,297		3,385		211		29		15,477
Special Mention	1		28		19		39		39		92		6		—		224
Substandard	19		19		96		71		77		235		10		1		528
Doubtful	—		—		—		—		—		4		—		—		4
Ungraded	—		—		—		—		—		—		—		—		—
Total owner occupied commercial mortgage	1,468		2,504		3,010		2,865		2,413		3,716		227		30		16,233
Non-owner occupied commercial mortgage
Pass	1,233		3,109		3,006		2,198		1,755		2,617		80		3		14,001
Special Mention	2		7		164		85		5		180		—		—		443
Substandard	—		7		66		15		129		763		1		—		981
Doubtful	—		—		—		—		39		116		—		—		155
Ungraded	—		—		—		—		—		—		—		—		—
Total non-owner occupied commercial mortgage	1,235		3,123		3,236		2,298		1,928		3,676		81		3		15,580
Commercial and industrial
Pass	5,936		5,584		4,099		2,462		1,306		1,468		7,336		60		28,251
Special Mention	82		66		175		165		16		127		254		—		885
Substandard	83		101		208		159		182		293		264		1		1,291
Doubtful	1		25		49		16		3		21		4		—		119
Ungraded	—		—		—		—		—		—		138		—		138
Total commercial and industrial	6,102		5,776		4,531		2,802		1,507		1,909		7,996		61		30,684
Leases
Pass	418		608		390		212		142		77		—		—		1,847
Special Mention	6		17		35		15		5		2		—		—		80
Substandard	9		32		27		17		16		10		—		—		111
Doubtful	1		3		3		2		1		1		—		—		11
Ungraded	—		—		—		—		—		—		—		—		—
Total leases	434		660		455		246		164		90		—		—		2,049
Total commercial	$	9,723	$	13,632	$	12,836	$	8,645	$	6,199	$	9,527	$	8,374	$	94	$	69,030

SVB - Risk Classifications by Class

June 30, 2024
Risk Classification:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2024		2023		2022		2021		2020		2019 & Prior		Revolving				Total
Global fund banking
Pass	$	593	$	535	$	159	$	25	$	18	$	15	$	27,488	$	66	$	28,899
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		5		8		2		—		1		—		16
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total global fund banking	593		535		164		33		20		15		27,489		66		28,915
Investor dependent - early stage
Pass	123		397		238		28		—		—		97		4		887
Special Mention	—		8		7		1		—		—		—		—		16
Substandard	5		60		103		23		1		—		44		4		240
Doubtful	15		9		10		1		—		—		1		—		36
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent - early stage	143		474		358		53		1		—		142		8		1,179
Investor dependent - growth stage
Pass	511		776		567		109		3		—		237		5		2,208
Special Mention	—		16		25		—		—		—		17		—		58
Substandard	12		101		159		27		—		—		16		—		315
Doubtful	9		—		23		10		—		—		4		—		46
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent - growth stage	532		893		774		146		3		—		274		5		2,627
Innovation C&I and cash flow dependent
Pass	1,217		2,082		1,682		519		212		43		2,041		—		7,796
Special Mention	83		85		112		28		—		—		115		—		423
Substandard	90		79		268		184		67		—		316		—		1,004
Doubtful	—		—		1		—		—		—		23		—		24
Ungraded	—		—		—		—		—		—		—		—		—
Total innovation C&I and cash flow dependent	1,390		2,246		2,063		731		279		43		2,495		—		9,247
Total SVB	$	2,658	$	4,148	$	3,359	$	963	$	303	$	58	$	30,400	$	79	$	41,968

Consumer Loans - Delinquency Status by Class

June 30, 2024
Days Past Due:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2024		2023		2022		2021		2020		2019 & Prior		Revolving				Total
Residential mortgage
Current	$	1,152	$	3,107	$	5,431	$	5,342	$	3,049	$	4,737	$	12	$	—	$	22,830
30-59 days	—		6		20		13		23		80		—		—		142
60-89 days	—		1		4		5		1		39		—		—		50
90 days or greater	—		—		3		4		7		65		—		—		79
Total residential mortgage	1,152		3,114		5,458		5,364		3,080		4,921		12		—		23,101
Revolving mortgage
Current	—		—		—		—		—		—		2,226		94		2,320
30-59 days	—		—		—		—		—		—		12		3		15
60-89 days	—		—		—		—		—		—		2		3		5
90 days or greater	—		—		—		—		—		—		4		7		11
Total revolving mortgage	—		—		—		—		—		—		2,244		107		2,351
Consumer auto
Current	346		442		348		205		98		50		—		—		1,489
30-59 days	—		2		3		2		1		1		—		—		9
60-89 days	—		1		1		1		—		—		—		—		3
90 days or greater	—		1		1		—		—		—		—		—		2
Total consumer auto	346		446		353		208		99		51		—		—		1,503
Consumer other
Current	114		186		119		40		7		22		889		—		1,377
30-59 days	—		—		—		—		—		1		3		—		4
60-89 days	—		—		1		—		—		—		2		—		3
90 days or greater	—		—		—		—		—		2		2		—		4
Total consumer other	114		186		120		40		7		25		896		—		1,388
Total consumer	$	1,612	$	3,746	$	5,931	$	5,612	$	3,186	$	4,997	$	3,152	$	107	$	28,343

The following tables represent current credit quality indicators by origination year as of December 31, 2023:

Commercial Loans - Risk Classifications by Class

December 31, 2023
Risk Classification:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2023		2022		2021		2020		2019		2018 & Prior		Revolving				Total
Commercial construction
Pass	$	1,062	$	1,615	$	620	$	226	$	63	$	57	$	39	$	4	$	3,686
Special Mention	—		10		6		81		47		—		—		—		144
Substandard	—		47		5		31		—		5		—		—		88
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total commercial construction	1,062		1,672		631		338		110		62		39		4		3,918
Owner occupied commercial mortgage
Pass	2,544		2,859		2,902		2,467		1,666		2,107		193		31		14,769
Special Mention	26		19		24		28		43		72		1		—		213
Substandard	7		91		99		61		45		176		10		—		489
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total owner occupied commercial mortgage	2,577		2,969		3,025		2,556		1,754		2,355		204		31		15,471
Non-owner occupied commercial mortgage
Pass	3,132		3,150		2,212		1,860		1,148		1,930		80		3		13,515
Special Mention	14		45		33		96		171		90		9		—		458
Substandard	2		48		27		127		365		330		—		—		899
Doubtful	—		—		2		13		67		39		2		—		123
Ungraded	—		—		—		—		—		—		—		—		—
Total non-owner occupied commercial mortgage	3,148		3,243		2,274		2,096		1,751		2,389		91		3		14,995
Commercial and industrial
Pass	8,472		4,858		3,347		1,660		952		1,351		6,818		34		27,492
Special Mention	105		134		149		89		69		26		194		—		766
Substandard	92		236		144		217		127		258		264		4		1,342
Doubtful	2		19		5		—		12		20		13		—		71
Ungraded	—		—		—		—		—		—		123		—		123
Total commercial and industrial	8,671		5,247		3,645		1,966		1,160		1,655		7,412		38		29,794
Leases
Pass	732		499		290		209		91		35		—		—		1,856
Special Mention	18		22		20		7		4		1		—		—		72
Substandard	28		32		21		19		6		8		—		—		114
Doubtful	3		4		3		1		1		—		—		—		12
Ungraded	—		—		—		—		—		—		—		—		—
Total leases	781		557		334		236		102		44		—		—		2,054
Total commercial	$	16,239	$	13,688	$	9,909	$	7,192	$	4,877	$	6,505	$	7,746	$	76	$	66,232

SVB - Risk Classifications by Class

December 31, 2023
Risk Classification:	Term Loans by Origination Year														Revolving Converted to Term Loans
	2023		2022		2021		2020		2019		2018 & Prior		Revolving				Total
Global fund banking
Pass	$	453	$	202	$	40	$	36	$	14	$	3	$	24,702	$	66	$	25,516
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		7		9		3		—		—		18		—		37
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total global fund banking	453		209		49		39		14		3		24,720		66		25,553
Investor dependent - early stage
Pass	421		453		85		4		1		—		99		2		1,065
Special Mention	8		14		1		—		—		—		—		—		23
Substandard	40		138		51		3		—		—		51		—		283
Doubtful	12		12		3		—		—		1		4		—		32
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent - early stage	481		617		140		7		1		1		154		2		1,403
Investor dependent - growth stage
Pass	1,034		967		217		25		8		2		198		5		2,456
Special Mention	6		25		—		—		—		—		—		—		31
Substandard	66		192		83		7		1		—		27		—		376
Doubtful	—		12		20		—		—		—		2		—		34
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent - growth stage	1,106		1,196		320		32		9		2		227		5		2,897
Innovation C&I and cash flow dependent
Pass	2,370		2,238		833		293		80		44		2,598		—		8,456
Special Mention	99		103		36		66		—		—		92		—		396
Substandard	51		185		254		76		25		—		175		—		766
Doubtful	—		—		—		—		—		10		30		—		40
Ungraded	—		—		—		—		—		—		—		—		—
Total innovation C&I and cash flow dependent	2,520		2,526		1,123		435		105		54		2,895		—		9,658
Total SVB	$	4,560	$	4,548	$	1,632	$	513	$	129	$	60	$	27,996	$	73	$	39,511

Consumer Loans - Delinquency Status by Class

December 31, 2023
Days Past Due:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2023		2022		2021		2020		2019		2018 & Prior		Revolving				Total
Residential mortgage
Current	$	3,155	$	5,588	$	5,521	$	3,174	$	1,381	$	3,702	$	13	$	—	$	22,534
30-59 days	3		16		15		7		10		85		—		—		136
60-89 days	1		1		5		4		1		21		—		—		33
90 days or greater	1		4		2		6		1		59		—		—		73
Total residential mortgage	3,160		5,609		5,543		3,191		1,393		3,867		13		—		22,776
Revolving mortgage
Current	—		—		—		—		—		—		2,056		80		2,136
30-59 days	—		—		—		—		—		—		11		4		15
60-89 days	—		—		—		—		—		—		1		2		3
90 days or greater	—		—		—		—		—		—		6		5		11
Total revolving mortgage	—		—		—		—		—		—		2,074		91		2,165
Consumer auto
Current	525		427		261		131		56		28		—		—		1,428
30-59 days	1		3		2		1		1		1		—		—		9
60-89 days	1		1		1		—		—		—		—		—		3
90 days or greater	—		1		1		—		—		—		—		—		2
Total consumer auto	527		432		265		132		57		29		—		—		1,442
Consumer other
Current	215		170		52		8		5		21		690		—		1,161
30-59 days	1		1		—		—		—		—		6		—		8
60-89 days	—		—		—		—		—		1		2		—		3
90 days or greater	—		—		—		—		—		2		2		—		4
Total consumer other	216		171		52		8		5		24		700		—		1,176
Total consumer	$	3,903	$	6,212	$	5,860	$	3,331	$	1,455	$	3,920	$	2,787	$	91	$	27,559

Gross Charge-offs

Gross charge-off vintage disclosures by origination year and loan class are summarized in the following tables:

Six Months Ended June 30, 2024
	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2024		2023		2022		2021		2020		2019 & Prior		Revolving				Total
Commercial
Non-owner occupied commercial mortgage	$	—	$	—	$	—	$	—	$	—	$	46	$	—	$	—	$	46
Commercial and industrial	4		17		39		7		2		6		24		1		100
Leases	—		6		10		5		2		2		—		—		25
Total commercial	4		23		49		12		4		54		24		1		171
Consumer
Consumer auto	—		1		1		1		—		—		—		—		3
Consumer other	—		1		1		—		—		—		8		—		10
Total consumer	—		2		2		1		—		—		8		—		13
SVB
Investor dependent - early stage	—		23		30		12		2		4		4		—		75
Investor dependent - growth stage	—		—		7		7		1		—		1		—		16
Innovation C&I and cash flow dependent	—		1		—		—		—		2		9		—		12
Total SVB	—		24		37		19		3		6		14		—		103
Total loans and leases	$	4	$	49	$	88	$	32	$	7	$	60	$	46	$	1	$	287

Six Months Ended June 30, 2023
	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2023		2022		2021		2020		2019		2018 & Prior		Revolving				Total
Commercial
Non-owner occupied commercial mortgage	$	—	$	—	$	—	$	—	$	17	$	12	$	—	$	—	$	29
Commercial and industrial	3		31		16		5		3		10		16		—		84
Leases	—		5		3		1		1		1		—		—		11
Total commercial	3		36		19		6		21		23		16		—		124
Consumer
Residential mortgage	—		—		—		—		—		2		—		—		2
Consumer auto	—		1		—		—		—		—		—		—		1
Consumer other	3		1		1		—		—		—		6		—		11
Total consumer	3		2		1		—		—		2		6		—		14
SVB
Investor dependent - early stage	12		13		4		—		—		—		—		—		29
Investor dependent - growth stage	1		5		10		3		1		—		4		—		24
Innovation C&I and cash flow dependent	—		—		—		42		—		—		5		—		47
Total SVB	13		18		14		45		1		—		9		—		100
Total loans and leases	$	19	$	56	$	34	$	51	$	22	$	25	$	31	$	—	$	238

Loan Modifications for Borrowers Experiencing Financial Difficulties

As part of BancShares’ ongoing credit risk management practices, BancShares attempts to work with borrowers when necessary to extend or modify loan terms to better align with the borrowers’ current ability to repay. BancShares’ modifications granted to debtors experiencing financial difficulties typically take the form of term extensions, interest rate reductions, payment delays, principal forgiveness, or a combination thereof. Modifications are made in accordance with internal policies and guidelines to conform to regulatory guidance.

The following tables present the amortized cost of loan modifications made to debtors experiencing financial difficulty, disaggregated by class and type of loan modification. The tables also provide financial effects by type of such loan modifications for the respective loan class.

Amortized Cost of Loans Modified during the three months ended June 30, 2024

dollars in millions	Term Extension (1)		Payment Delay		Interest Rate Reduction		Term Extension(1) and Payment Delay		Other Combinations(2)		Total		Percent of Total Loan Class
Commercial
Owner occupied commercial mortgage	$	8	$	—	$	3	$	—	$	—	$	11	0.07	%
Non-owner occupied commercial mortgage	41		—		—		—		—		41		0.26
Commercial and industrial	23		25		31		—		4		83		0.27
Total commercial	72		25		34		—		4		135		0.20
Consumer
Residential mortgage	3		—		—		—		—		3		0.01
Revolving mortgage	2		—		—		—		—		2		0.11
Total consumer	5		—		—		—		—		5		0.02
SVB
Investor dependent - early stage	—		13		—		15		1		29		2.42
Investor dependent - growth stage	2		35		—		2		—		39		1.49
Innovation C&I and cash flow dependent	7		68		—		10		—		85		0.92
Total SVB	9		116		—		27		1		153		0.36
Total loans and leases	$	86	$	141	$	34	$	27	$	5	$	293	0.21	%

(1) Term extensions include modifications in which the balloon principal payment was deferred to a later date or the loan amortization period was extended.

(2)Consists of $4 million of commercial and industrial loans modified with a term extension and interest rate reduction as well as $1 million of Investor dependent - early stage loans modified with a term extension, interest rate reduction, and payment delay.

Amortized Cost of Loans Modified during the three months ended June 30, 2023

dollars in millions	Term Extension (1)		Payment Delay		Interest Rate Reduction		Term Extension(1) and Interest Rate Reduction		Other Combinations		Total		Percent of Total Loan Class
Commercial
Owner occupied commercial mortgage	$	12	$	—	$	1	$	—	$	—	$	13	0.09	%
Non-owner occupied commercial mortgage	161		—		—		—		—		161		1.16
Commercial and industrial	57		6		—		—		—		63		0.23
Total commercial	230		6		1		—		—		237		0.38
Consumer
Residential mortgage	2		—		—		3		—		5		0.02
Total consumer	2		—		—		3		—		5		0.02
SVB
Investor dependent - early stage	2		6		—		—		—		8		0.41
Innovation C&I and cash flow dependent	42		23		—		—		—		65		0.73
Total SVB	44		29		—		—		—		73		0.16
Total loans and leases	$	276	$	35	$	1	$	3	$	—	$	315	0.24	%

(1) Term extensions include modifications in which the balloon principal payment was deferred to a later date or the loan amortization period was extended.

Financial Effects of Loan Modifications made during the three months ended June 30, 2024

dollars in millions	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)	Amount of Principal Forgiven
Commercial
Commercial construction	60	—	%	—	$	—
Owner occupied commercial mortgage	86	1.81		—	—
Non-owner occupied commercial mortgage	20	—		6	—
Commercial and industrial	20	0.54		10	—
Leases	—	—		6	—
Total commercial	27	0.64		10	—
Consumer
Residential mortgage	120	—		—	—
Revolving mortgage	60	3.00		—	—
Consumer auto	32	—		—	—
Consumer other	—	7.53		—	—
Total consumer	90	4.77		—	—
SVB
Investor dependent - early stage	10	2.75		8	—
Investor dependent - growth stage	7	—		7	—
Innovation C&I and cash flow dependent	11	—		11	—
Total SVB	10	2.75		10	—
Total loans and leases	24	0.69	%	10	$	—

Financial Effects of Loan Modifications made during the three months ended June 30, 2023

dollars in millions	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)	Amount of Principal Forgiven
Commercial
Commercial construction	47	—	%	—	$	—
Owner occupied commercial mortgage	13	3.50		—	—
Non-owner occupied commercial mortgage	15	—		—	—
Commercial and industrial	24	5.17		6	—
Total commercial	17	3.67		6	—
Consumer
Residential mortgage	69	3.44		—	—
Revolving mortgage	53	0.41		—	—
Consumer auto	25	0.70		—	—
Consumer other	60	9.21		—	—
Total consumer	68	3.44		—	—
SVB
Global fund banking	—	—		—	—
Investor dependent - early stage	6	—		4	—
Investor dependent - growth stage	—	—		—	—
Innovation C&I and cash flow dependent	3	—		7	—
Total SVB	3	—		6	—
Total loans and leases	16	3.51	%	6	$	—

Amortized Cost of Loans Modified during the six months ended June 30, 2024

dollars in millions	Term Extension (1)		Payment Delay		Interest Rate Reduction		Term Extension(1) and Interest Rate Reduction		Term Extension(1) and Payment Delay		Other Combinations(2)		Total		Percent of Total Loan Class
Commercial
Commercial construction	$	3	$	—	$	—	$	—	$	—	$	—	$	3	0.07	%
Owner occupied commercial mortgage	23		—		4		1		9		—		37		0.23
Non-owner occupied commercial mortgage	78		—		—		—		26		—		104		0.67
Commercial and industrial	37		25		31		11		—		—		104		0.34
Total commercial	141		25		35		12		35		—		248		0.36
Consumer
Residential mortgage	7		—		—		2		—		—		9		0.04
Revolving mortgage	3		—		—		1		—		—		4		0.18
Total consumer	10		—		—		3		—		—		13		0.05
SVB
Investor dependent - early stage	—		17		—		—		15		1		33		2.79
Investor dependent - growth stage	2		57		—		—		11		—		70		2.67
Innovation C&I and cash flow dependent	25		68		—		—		10		—		103		1.11
Total SVB	27		142		—		—		36		1		206		0.49
Total loans and leases	$	178	$	167	$	35	$	15	$	71	$	1	$	467	0.34	%

(1) Term extensions include modifications in which the balloon principal payment was deferred to a later date or the loan amortization period was extended.

(2) Consists of $1 million of Investor dependent - early stage loans modified with a term extension, interest rate reduction, and payment delay.

Amortized Cost of Loans Modified during the six months ended June 30, 2023

dollars in millions	Term Extension (1)		Payment Delay		Interest Rate Reduction		Term Extension(1) and Interest Rate Reduction		Term Extension(1) and Payment Delay		Other Combinations		Total		Percent of Total Loan Class
Commercial
Commercial construction	$	1	$	—	$	—	$	—	$	—	$	—	$	1	0.03	%
Owner occupied commercial mortgage	22		—		2		—		—		—		24		0.16
Non-owner occupied commercial mortgage	212		—		—		—		—		—		212		1.52
Commercial and industrial	67		6		—		—		3		—		76		0.28
Total commercial	302		6		2		—		3		—		313		0.50
Consumer
Residential mortgage	3		—		—		3		—		—		6		0.03
Total consumer	3		—		—		3		—		—		6		0.02
SVB
Investor dependent - early stage	2		6		—		—		—		—		8		0.41
Innovation C&I and cash flow dependent	49		23		—		—		—		—		72		0.81
Total SVB	51		29		—		—		—		—		80		0.18
Total loans and leases	$	356	$	35	$	2	$	3	$	3	$	—	$	399	0.30	%

(1) Term extensions include modifications in which the balloon principal payment was deferred to a later date or the loan amortization period was extended.

Financial Effects of Loan Modifications made during the six months ended June 30, 2024

dollars in millions	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)	Amount of Principal Forgiven
Commercial
Commercial construction	19	—	%	—	$	—
Owner occupied commercial mortgage	39	1.42		20	—
Non-owner occupied commercial mortgage	24	—		48	—
Commercial and industrial	16	0.66		10	—
Leases	—	—		6	—
Total commercial	24	0.74		28	—
Consumer
Residential mortgage	73	1.51		—	—
Revolving mortgage	60	4.08		—	—
Consumer auto	30	0.26		—	—
Consumer other	46	8.79		—	—
Total consumer	68	2.45		—	—
SVB
Investor dependent - early stage	10	2.75		8	—
Investor dependent - growth stage	15	—		8	—
Innovation C&I and cash flow dependent	11	—		11	—
Total SVB	12	2.75		10	—
Total loans and leases	23	0.86	%	14	$	—

Financial Effects of Loan Modifications made during the six months ended June 30, 2023

dollars in millions	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)	Amount of Principal Forgiven
Commercial
Commercial construction	22	—	%	—	$	—
Owner occupied commercial mortgage	12	3.52		—	—
Non-owner occupied commercial mortgage	13	—		—	—
Commercial and industrial	21	4.60		5	—
Total commercial	15	3.63		5	—
Consumer
Residential mortgage	61	3.44		—	—
Revolving mortgage	55	0.40		—	—
Consumer auto	25	0.70		—	—
Consumer other	60	9.33		—	—
Total consumer	60	3.42		—	—
SVB
Investor dependent - early stage	6	—		4	—
Innovation C&I and cash flow dependent	4	—		7	—
Total SVB	4	—		6	—
Total loans and leases	14	3.49	%	6	$	—

Borrowers experiencing financial difficulties are typically identified in our credit risk management process before loan modifications occur. An assessment of whether a borrower is experiencing financial difficulty is reassessed or performed on the date of a modification. Since the effect of most modifications made to borrowers experiencing financial difficulty is already included in the ALLL because of the measurement methodologies used to estimate the ALLL, a change to the ALLL is generally not recorded upon modification. Upon BancShares’ determination that a modified loan (or portion of a loan) has subsequently been deemed uncollectible, the loan (or a portion of the loan) is charged off.

At June 30, 2024, there were $31 million of loans modified in the twelve months ended June 30, 2024 which defaulted subsequent to modification.

The following tables present the amortized cost and performance of loans to borrowers experiencing financial difficulties for which the terms of the loan were modified during the referenced periods. The period of delinquency is based on the number of days the scheduled payment is contractually past due.

Modified Loans Payment Status (twelve months ended June 30, 2024)

dollars in millions	Current		30–59 Days Past Due		60–89 Days Past Due		90 Days or Greater Past Due		Total
Commercial
Commercial construction	$	3	$	—	$	—	$	—	$	3
Owner occupied commercial mortgage	35		—		2		1		38
Non-owner occupied commercial mortgage	222		—		1		10		233
Commercial and industrial	113		3		1		1		118
Total commercial	373		3		4		12		392
Consumer
Residential mortgage	11		4		2		1		18
Revolving mortgage	6		—		—		—		6
Total consumer	17		4		2		1		24
SVB
Investor dependent - early stage	34		—		—		6		40
Investor dependent - growth stage	79		—		—		3		82
Innovation C&I and cash flow dependent	125		—		—		—		125
Total SVB	238		—		—		9		247
Total loans and leases	$	628	$	7	$	6	$	22	$	663

Modified Loans Payment Status (six months ended June 30, 2023)

dollars in millions	Current		30–59 Days Past Due		60–89 Days Past Due		90 Days or Greater Past Due		Total
Commercial
Commercial construction	$	1	$	—	$	—	$	—	$	1
Owner occupied commercial mortgage	24		—		—		—		24
Non-owner occupied commercial mortgage	177		—		—		35		212
Commercial and industrial	76		—		—		—		76
Total commercial	278		—		—		35		313
Consumer
Residential mortgage	6		—		—		—		6
Total consumer	6		—		—		—		6
SVB
Investor dependent - early stage	5		—		—		3		8
Innovation C&I and cash flow dependent	66		—		—		6		72
Total SVB	71		—		—		9		80
Total loans and leases	$	355	$	—	$	—	$	44	$	399

At June 30, 2024, there were $39 million of commitments to lend additional funds to debtors experiencing financial difficulty for which the terms of the loan were modified during the six months ended June 30, 2024. At December 31, 2023, there were $13 million of commitments to lend additional funds to debtors experiencing financial difficulty for which the terms of the loan were modified during the year ended December 31, 2023.

Loans Pledged

The following table provides information regarding loans pledged as collateral for borrowing capacity through the FHLB of Atlanta, the Board of Governors of the Federal Reserve System (“FRB”) and FDIC as of June 30, 2024 and December 31, 2023.

Loans Pledged

dollars in millions	June 30, 2024		December 31, 2023
FHLB of Atlanta
Lendable collateral value of pledged non-PCD loans	$	16,134	$	15,072
Less: advances	—		—
Less: letters of credit	1,450		1,450
Available borrowing capacity	$	14,684	$	13,622
Pledged non-PCD loans (contractual balance)	$	27,003	$	25,370
FRB
Lendable collateral value of pledged non-PCD loans	$	5,526	$	5,115
Less: advances	—		—
Available borrowing capacity	$	5,526	$	5,115
Pledged non-PCD loans (contractual balance)	$	6,652	$	6,273
FDIC
Lendable collateral value of pledged loans	$	47,326	$	51,179
Less: advances	—		—
Less: Purchase Money Note	35,991		36,072
Available borrowing capacity	$	11,335	$	15,107
Pledged loans (contractual balance)	$	47,326	$	51,179

As a member of the FHLB, FCB can access financing based on an evaluation of its creditworthiness, statement of financial position, size and eligibility of collateral. FCB may at any time grant a security interest in, sell, convey or otherwise dispose of any of the assets used for collateral, provided that FCB is in compliance with the collateral maintenance requirement immediately following such disposition.

Under borrowing arrangements with the FRB of Richmond, BancShares has access to the FRB Discount Window on a secured basis. There were no outstanding borrowings with the FRB Discount Window at June 30, 2024 or December 31, 2023.

In connection with the SVBB Acquisition, FCB and the FDIC entered into financing agreements, including the five-year Purchase Money Note of approximately $36.07 billion, and the Advance Facility Agreement, providing total advances available through March 27, 2025 of up to $70 billion. Refer to Note 2—Business Combinations for further discussion of these agreements and related collateral requirements and limits on usage.