BORROWINGS

12 Months Ended

Dec. 31, 2024

Debt Disclosure [Abstract]

BORROWINGS

NOTE 12 — BORROWINGS

Short-term Borrowings

Securities Sold under Agreements to Repurchase

BancShares held $367 million and $485 million at December 31, 2024 and 2023, respectively, of securities sold under agreements to repurchase that have overnight contractual maturities and are collateralized by government agency securities. The weighted average interest rate for securities sold under agreements to repurchase was 0.59% and 0.43% at December 31, 2024 and 2023, respectively.

BancShares utilizes securities sold under agreements to repurchase to facilitate the needs for collateralization of commercial customers and secure wholesale funding needs. Repurchase agreements are transactions whereby BancShares offers to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates BancShares to repurchase the security at an agreed upon date, repurchase price and interest rate. These agreements are recorded at the amount of cash received in connection with the transactions and are reflected as securities sold under customer repurchase agreements.

BancShares monitors collateral levels on a continuous basis and maintains records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security, and segregates the security from general assets in accordance with regulations governing custodial holdings of securities. The primary risk with repurchase agreements is market risk associated with the investments securing the transactions, as additional collateral may be required based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with safekeeping agents. The carrying value of investment securities pledged as collateral under repurchase agreements was $435 million and $502 million at December 31, 2024 and 2023, respectively.

Long-term Borrowings

The following table presents long-term borrowings, net of the respective unamortized purchase accounting adjustments and issuance costs, at December 31, 2024 and 2023:

Long-term Borrowings

dollars in millions	Maturity	December 31, 2024		December 31, 2023
Parent Company:
Subordinated:
Fixed-to-Floating subordinated notes at 3.375%	March 2030	$	350	$	349
Junior subordinated debentures (FCB/SC Capital Trust II)(1)	June 2034	—		18
Subsidiaries:
Senior:
Senior unsecured fixed-to-floating rate notes at 2.969%(2)	September 2025	—		318
Fixed senior unsecured notes at 6.00%	April 2036	58		59
Subordinated:
Fixed subordinated notes at 6.125%	March 2028	445		460
Fixed-to-Fixed subordinated notes at 4.125%(3)	November 2029	—		101
Junior subordinated debentures (SCB Capital Trust I)(1)	April 2034	—		10
Secured:
Purchase Money Note to FDIC fixed at 3.50% (4)	March 2028	35,816		35,846
Capital lease obligations	Maturities through May 2057	15		8
Total long-term borrowings		$	36,684	$	37,169

(1)    The borrowings were called during the first quarter of 2024, resulting in a $2 million loss on extinguishment of debt for the year ended December 31, 2024.

(2) Included a callable feature one year prior to maturity and the debt was redeemed in September 2024.

(3) Included an optional redemption feature five years prior to maturity which was exercised in November 2024.

(4) Issued in connection with the SVBB Acquisition and secured by collateral. Refer to Note 2—Business Combinations and Note 4—Loans and Leases.

Contractual maturities of long-term borrowings (borrowings with original maturities of more than one year) at December 31, 2024 are included in the following table.

Long-term Borrowings Maturities

dollars in millions
Year Ended December 31, (1)
2025	$	(36)
2026	(39)
2027	(39)
2028	36,380
2029	1
Thereafter	417
Total long-term borrowings	$	36,684

(1)    Amounts in this table include amortization and accretion of purchase accounting adjustments based on the scheduled periods of recognition.

Pledged Assets

Refer to the “Loans Pledged” section in Note 4—Loans and Leases for information on loans pledged as collateral to secure borrowings.