GOODWILL AND CORE DEPOSIT INTANGIBLES

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

GOODWILL AND CORE DEPOSIT INTANGIBLES

NOTE 8 — GOODWILL AND CORE DEPOSIT INTANGIBLES

Goodwill

BancShares had goodwill of $346 million at December 31, 2024 and 2023. There was no goodwill impairment during the years ended December 31, 2024, 2023, or 2022. Goodwill relates to the General Bank reporting unit.

Refer to Note 1—Significant Accounting Policies and Basis of Presentation for accounting policies and impairment testing related to goodwill and intangible assets.

Core Deposit Intangibles

Core deposit intangibles represent the estimated fair value of core deposits and other customer relationships acquired. Core deposit intangibles are being amortized over their estimated useful lives. The following tables summarize the activity for core deposit intangibles:

Core Deposit Intangibles

	Year Ended December 31,
dollars in millions	2024		2023
Balance at beginning of period, net of accumulated amortization	$	312	$	140
Core deposit intangibles related to the SVBB Acquisition	—		230
Less: amortization for the period	63		58
Balance at end of period, net of accumulated amortization	$	249	$	312

The following table summarizes the accumulated amortization balance for core deposit intangibles:

Core Deposit Intangible Accumulated Amortization

dollars in millions	December 31, 2024		December 31, 2023
Gross balance	$	501	$	501
Less: accumulated amortization	252		189
Balance, net of accumulated amortization	$	249	$	312

The following table summarizes the expected amortization expense as of December 31, 2024 in subsequent periods for core deposit intangibles:

Core Deposit Intangible Expected Amortization

dollars in millions
2025	$	54
2026	46
2027	39
2028	34
2029	30
Thereafter	46
Balance, net of accumulated amortization	$	249

Intangible Liability

An intangible liability was recorded in other liabilities for net below market lessor lease contract rental rates related to the rail portfolio. This lease intangible is being amortized on a straight-line basis over the lease term, thereby increasing rental income (a component of noninterest income) over the remaining term of the lease agreements.

The following tables summarize the activity for the intangible liability:

Intangible Liability

	Year Ended December 31,
dollars in millions	2024		2023
Balance at January 1	$	24	$	36
Amortization	(6)		(12)
Balance at December 31, net of accumulated amortization	$	18	$	24

The following tables summarize the accumulated amortization balance for the intangible liability:

Intangible Liability Accumulated Amortization

dollars in millions	December 31, 2024		December 31, 2023
Gross balance	$	52	$	52
Accumulated amortization	(34)		(28)
Balance, net of accumulated amortization	$	18	$	24

The following table summarizes the expected amortization as of December 31, 2024 in subsequent annual periods for the intangible liability:

Intangible Liability Amortization

dollars in millions
2025	$	4
2026	3
2027	3
2028	2
2029	2
Thereafter	4
	$	18