LOANS AND LEASES

6 Months Ended

Jun. 30, 2025

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, 2025		December 31, 2024
Commercial
Commercial construction	$	5,714	$	5,109
Owner occupied commercial mortgage	17,053		16,842
Non-owner occupied commercial mortgage	16,100		16,194
Commercial and industrial	40,658		40,737
Leases	2,028		2,014
Global fund banking	28,677		27,904
Investor dependent	2,777		3,193
Total commercial	113,007		111,993
Consumer
Residential mortgage	23,059		23,152
Revolving mortgage	2,736		2,567
Consumer auto	1,490		1,523
Consumer other	977		986
Total consumer	28,262		28,228
Total loans and leases	$	141,269	$	140,221

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

At June 30, 2025 and December 31, 2024, accrued interest receivable on loans included in other assets was $605 million and $603 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 was $75 million and $159 million for the three and six months ended June 30, 2025, including $4 million and $12 million for unfunded commitments, respectively. Discount accretion income 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.

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, 2025		December 31, 2024
Deferred fees, including unamortized costs and unearned fees on non-PCD loans	$	(88)	$	(91)
Net unamortized discount on acquired loans
Non-PCD	$	1,399	$	1,504
PCD	51		94
Total net unamortized discount	$	1,450	$	1,598

The aging and nonaccrual status of the outstanding loans and leases by class at June 30, 2025 and December 31, 2024 are 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 and Nonaccrual Status (1) (2)

dollars in millions	June 30, 2025
	Accruing Loans
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Accruing		Nonaccrual Loans		Total
Commercial
Commercial construction	$	24	$	—	$	25	$	49	$	5,644	$	5,693	$	21	$	5,714
Owner occupied commercial mortgage	50		36		8		94		16,867		16,961		92		17,053
Non-owner occupied commercial mortgage	4		58		88		150		15,615		15,765		335		16,100
Commercial and industrial	105		74		10		189		39,907		40,096		562		40,658
Leases	22		7		—		29		1,971		2,000		28		2,028
Global fund banking	—		—		—		—		28,677		28,677		—		28,677
Investor dependent	2		2		—		4		2,704		2,708		69		2,777
Total commercial	207		177		131		515		111,385		111,900		1,107		113,007
Consumer
Residential mortgage	141		29		5		175		22,713		22,888		171		23,059
Revolving mortgage	14		2		—		16		2,688		2,704		32		2,736
Consumer auto	9		2		—		11		1,471		1,482		8		1,490
Consumer other	6		3		2		11		965		976		1		977
Total consumer	170		36		7		213		27,837		28,050		212		28,262
Total loans and leases	$	377	$	213	$	138	$	728	$	139,222	$	139,950	$	1,319	$	141,269
	December 31, 2024
	Accruing Loans
	30-59 Days Past Due		60-89 Days Past Due		90 Days or Greater		Total Past Due		Current		Total Accruing		Nonaccrual Loans		Total
Commercial
Commercial construction	$	21	$	1	$	1	$	23	$	5,077	$	5,100	$	9	$	5,109
Owner occupied commercial mortgage	30		9		2		41		16,739		16,780		62		16,842
Non-owner occupied commercial mortgage	43		27		78		148		15,621		15,769		425		16,194
Commercial and industrial	170		40		16		226		40,122		40,348		389		40,737
Leases	33		11		2		46		1,937		1,983		31		2,014
Global fund banking	—		—		—		—		27,904		27,904		—		27,904
Investor dependent	10		1		—		11		3,095		3,106		87		3,193
Total commercial	307		89		99		495		110,495		110,990		1,003		111,993
Consumer
Residential mortgage	172		27		7		206		22,798		23,004		148		23,152
Revolving mortgage	20		4		—		24		2,519		2,543		24		2,567
Consumer auto	12		3		—		15		1,500		1,515		8		1,523
Consumer other	5		3		3		11		974		985		1		986
Total consumer	209		37		10		256		27,791		28,047		181		28,228
Total loans and leases	$	516	$	126	$	109	$	751	$	138,286	$	139,037	$	1,184	$	140,221

(1)    Accrued interest that was reversed when the loan went to nonaccrual status was $10 million for the six months ended June 30, 2025 and $14 million for the year ended December 31, 2024.

(2)    Nonaccrual loans for which there was no related ALLL totaled $362 million at June 30, 2025 and $303 million at December 31, 2024.

Other real estate owned (“OREO”) and repossessed assets were $103 million as of June 30, 2025 and $64 million as of December 31, 2024.

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, 2025 and December 31, 2024, 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 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 purchased credit deteriorated (“PCD”) loans.

Commercial Loans - Risk Classifications by Class

June 30, 2025
Risk Classification:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2025		2024		2023		2022		2021		2020 & Prior		Revolving				Total
Commercial construction
Pass	$	1,169	$	1,610	$	1,540	$	666	$	97	$	85	$	344	$	—	$	5,511
Special Mention	—		—		56		—		—		7		—		—		63
Substandard	21		12		2		86		14		2		—		—		137
Doubtful	3		—		—		—		—		—		—		—		3
Ungraded	—		—		—		—		—		—		—		—		—
Total commercial construction	1,193		1,622		1,598		752		111		94		344		—		5,714
Owner occupied commercial mortgage
Pass	1,264		2,645		2,420		2,568		2,406		4,503		208		29		16,043
Special Mention	22		27		54		108		42		56		2		—		311
Substandard	24		47		105		189		72		239		17		1		694
Doubtful	—		—		4		—		1		—		—		—		5
Ungraded	—		—		—		—		—		—		—		—		—
Total owner occupied commercial mortgage	1,310		2,719		2,583		2,865		2,521		4,798		227		30		17,053
Non-owner occupied commercial mortgage
Pass	1,379		2,943		3,330		2,431		1,479		2,819		102		3		14,486
Special Mention	57		26		170		157		4		16		—		—		430
Substandard	229		289		156		139		42		243		2		—		1,100
Doubtful	7		12		—		13		4		48		—		—		84
Ungraded	—		—		—		—		—		—		—		—		—
Total non-owner occupied commercial mortgage	1,672		3,270		3,656		2,740		1,529		3,126		104		3		16,100
Commercial and industrial
Pass	6,411		9,072		4,805		3,649		1,927		1,908		8,923		51		36,746
Special Mention	104		178		130		221		172		50		133		—		988
Substandard	247		232		448		639		351		77		579		3		2,576
Doubtful	18		17		32		33		11		1		86		—		198
Ungraded	—		—		—		—		—		—		150		—		150
Total commercial and industrial	6,780		9,499		5,415		4,542		2,461		2,036		9,871		54		40,658
Leases
Pass	414		629		417		217		97		84		—		—		1,858
Special Mention	11		20		15		22		3		1		—		—		72
Substandard	13		26		25		12		9		5		—		—		90
Doubtful	1		2		2		2		1		—		—		—		8
Ungraded	—		—		—		—		—		—		—		—		—
Total leases	439		677		459		253		110		90		—		—		2,028
Global fund banking
Pass	325		890		144		106		13		18		27,164		13		28,673
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		—		3		—		—		1		—		4
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total global fund banking	325		890		144		109		13		18		27,165		13		28,677
Investor dependent
Pass	514		906		279		166		4		—		261		—		2,130
Special Mention	26		32		24		6		9		—		4		—		101
Substandard	8		178		165		69		6		—		51		—		477
Doubtful	2		24		11		19		4		—		9		—		69
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent	550		1,140		479		260		23		—		325		—		2,777
Total commercial	$	12,269	$	19,817	$	14,334	$	11,521	$	6,768	$	10,162	$	38,036	$	100	$	113,007

Consumer Loans - Delinquency Status by Class

June 30, 2025
Days Past Due:	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2025		2024		2023		2022		2021		2020 & Prior		Revolving				Total
Residential mortgage
Current	$	983	$	2,265	$	2,769	$	5,022	$	4,914	$	6,795	$	5	$	—	$	22,753
30-59 days	—		4		14		23		14		99		—		—		154
60-89 days	—		1		2		6		5		30		—		—		44
90 days or greater	1		1		4		8		13		81		—		—		108
Total residential mortgage	984		2,271		2,789		5,059		4,946		7,005		5		—		23,059
Revolving mortgage
Current	—		—		—		—		—		—		2,580		120		2,700
30-59 days	—		—		—		—		—		—		11		5		16
60-89 days	—		—		—		—		—		—		1		4		5
90 days or greater	—		—		—		—		—		—		3		12		15
Total revolving mortgage	—		—		—		—		—		—		2,595		141		2,736
Consumer auto
Current	298		508		283		214		112		59		—		—		1,474
30-59 days	—		3		3		2		1		1		—		—		10
60-89 days	—		1		1		1		—		—		—		—		3
90 days or greater	—		1		1		1		—		—		—		—		3
Total consumer auto	298		513		288		218		113		60		—		—		1,490
Consumer other
Current	47		126		103		75		21		20		574		—		966
30-59 days	—		1		1		—		—		—		3		—		5
60-89 days	—		—		—		—		—		1		2		—		3
90 days or greater	—		—		—		—		—		1		2		—		3
Total consumer other	47		127		104		75		21		22		581		—		977
Total consumer	$	1,329	$	2,911	$	3,181	$	5,352	$	5,080	$	7,087	$	3,181	$	141	$	28,262

The following tables represent current credit quality indicators by origination year as of December 31, 2024:

Commercial Loans - Risk Classifications by Class

December 31, 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	$	1,095	$	1,854	$	1,276	$	287	$	152	$	52	$	148	$	—	$	4,864
Special Mention	—		80		35		—		7		24		—		—		146
Substandard	—		8		47		20		7		17		—		—		99
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total commercial construction	1,095		1,942		1,358		307		166		93		148		—		5,109
Owner occupied commercial mortgage
Pass	2,721		2,445		2,747		2,581		2,199		2,988		223		29		15,933
Special Mention	22		46		70		58		32		61		9		—		298
Substandard	30		34		136		82		73		245		10		1		611
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total owner occupied commercial mortgage	2,773		2,525		2,953		2,721		2,304		3,294		242		30		16,842
Non-owner occupied commercial mortgage
Pass	2,879		3,082		2,744		2,041		1,598		2,134		119		3		14,600
Special Mention	—		66		293		43		4		86		—		—		492
Substandard	12		15		171		39		116		653		—		—		1,006
Doubtful	—		—		—		—		20		76		—		—		96
Ungraded	—		—		—		—		—		—		—		—		—
Total non-owner occupied commercial mortgage	2,891		3,163		3,208		2,123		1,738		2,949		119		3		16,194
Commercial and industrial
Pass	11,813		6,295		4,622		2,389		1,221		1,408		9,033		67		36,848
Special Mention	145		236		255		302		29		69		203		—		1,239
Substandard	155		347		614		332		195		207		454		4		2,308
Doubtful	5		23		42		15		1		18		103		—		207
Ungraded	—		—		—		—		—		—		135		—		135
Total commercial and industrial	12,118		6,901		5,533		3,038		1,446		1,702		9,928		71		40,737
Leases
Pass	739		506		300		147		96		46		—		—		1,834
Special Mention	13		17		29		5		4		—		—		—		68
Substandard	21		29		23		13		9		8		—		—		103
Doubtful	1		3		2		2		1		—		—		—		9
Ungraded	—		—		—		—		—		—		—		—		—
Total leases	774		555		354		167		110		54		—		—		2,014
Global fund banking
Pass	892		179		147		20		14		12		26,588		36		27,888
Special Mention	—		—		—		—		—		—		—		—		—
Substandard	—		—		5		8		2		—		1		—		16
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total global fund banking	892		179		152		28		16		12		26,589		36		27,904
Investor dependent
Pass	1,135		640		352		37		—		—		315		3		2,482
Special Mention	17		28		6		—		—		—		26		—		77
Substandard	122		173		164		31		1		—		61		—		552
Doubtful	26		19		28		5		—		—		4		—		82
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent	1,300		860		550		73		1		—		406		3		3,193
Total commercial	$	21,843	$	16,125	$	14,108	$	8,457	$	5,781	$	8,104	$	37,432	$	143	$	111,993

Consumer Loans - Delinquency Status by Class

December 31, 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	$	2,178	$	2,968	$	5,264	$	5,148	$	2,913	$	4,353	$	4	$	—	$	22,828
30-59 days	3		13		19		23		31		95		—		—		184
60-89 days	1		3		5		2		2		28		—		—		41
90 days or greater	—		4		6		7		9		73		—		—		99
Total residential mortgage	2,182		2,988		5,294		5,180		2,955		4,549		4		—		23,152
Revolving mortgage
Current	—		—		—		—		—		—		2,420		108		2,528
30-59 days	—		—		—		—		—		—		16		6		22
60-89 days	—		—		—		—		—		—		1		5		6
90 days or greater	—		—		—		—		—		—		3		8		11
Total revolving mortgage	—		—		—		—		—		—		2,440		127		2,567
Consumer auto
Current	617		358		277		155		68		27		—		—		1,502
30-59 days	3		3		3		2		1		1		—		—		13
60-89 days	1		1		1		1		—		—		—		—		4
90 days or greater	1		1		1		1		—		—		—		—		4
Total consumer auto	622		363		282		159		69		28		—		—		1,523
Consumer other
Current	147		144		99		30		6		18		531		—		975
30-59 days	1		—		—		—		—		1		3		—		5
60-89 days	—		—		1		—		—		—		2		—		3
90 days or greater	—		—		—		—		—		1		2		—		3
Total consumer other	148		144		100		30		6		20		538		—		986
Total consumer	$	2,952	$	3,495	$	5,676	$	5,369	$	3,030	$	4,597	$	2,982	$	127	$	28,228

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, 2025
	Term Loans by Origination Year														Revolving Converted to Term Loans
dollars in millions	2025		2024		2023		2022		2021		2020 & Prior		Revolving				Total
Commercial
Owner occupied commercial mortgage	$	—	$	—	$	—	$	—	$	—	$	1	$	—	$	—	$	1
Non-owner occupied commercial mortgage	—		23		2		17		—		17		—		—		59
Commercial and industrial	15		11		32		33		6		3		56		1		157
Leases	1		2		2		2		2		2		—		—		11
Investor dependent	—		6		23		26		6		4		3		—		68
Total commercial	16		42		59		78		14		27		59		1		296
Consumer
Consumer auto	—		1		1		1		—		—		—		—		3
Consumer other	—		1		1		1		—		—		9		—		12
Total consumer	—		2		2		2		—		—		9		—		15
Total loans and leases	$	16	$	44	$	61	$	80	$	14	$	27	$	68	$	1	$	311

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		18		39		7		2		8		33		1		112
Leases	—		6		10		5		2		2		—		—		25
Investor dependent	—		23		37		19		3		4		5		—		91
Total commercial	4		47		86		31		7		60		38		1		274
Consumer
Consumer auto	—		1		1		1		—		—		—		—		3
Consumer other	—		1		1		—		—		—		8		—		10
Total consumer	—		2		2		1		—		—		8		—		13
Total loans and leases	$	4	$	49	$	88	$	32	$	7	$	60	$	46	$	1	$	287

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. Loan modifications for principal forgiveness round to less than $1 million for all loan classes in all periods presented and are not presented in the following tables.

Amortized Cost of Loans Modified during the three months ended June 30, 2025

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	$	24	$	—	$	—	$	—	$	10	$	—	$	34	0.60	%
Owner occupied commercial mortgage	2		2		—		29		7		—		40		0.24
Non-owner occupied commercial mortgage	60		—		—		64		—		—		124		0.77
Commercial and industrial	23		60		—		2		10		5		100		0.24
Investor dependent	7		28		—		—		—		—		35		1.27
Total commercial	116		90		—		95		27		5		333		0.29
Consumer
Residential mortgage	5		—		3		1		24		—		33		0.14
Revolving mortgage	1		—		—		—		—		—		1		0.03
Total consumer	6		—		3		1		24		—		34		0.12
Total loans and leases	$	122	$	90	$	3	$	96	$	51	$	5	$	367	0.26	%

(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 $5 million of commercial and industrial loans modified with a term extension, payment delay, and interest rate reduction.

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	30		93		31		10		4		168		0.42
Investor dependent	2		48		—		17		1		68		1.78
Total commercial	81		141		34		27		5		288		0.26
Consumer
Residential mortgage	3		—		—		—		—		3		0.01
Revolving mortgage	2		—		—		—		—		2		0.11
Total consumer	5		—		—		—		—		5		0.02
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 commercial and industrial loans modified with a term extension and interest rate reduction as well as $1 million of investor dependent loans modified with a term extension, interest rate reduction, and payment delay.

Financial Effects of Loan Modifications made during the three months ended June 30, 2025

dollars in millions	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)
Commercial
Commercial construction	7	—	%	6
Owner occupied commercial mortgage	12	1.93		5
Non-owner occupied commercial mortgage	27	0.60		—
Commercial and industrial	13	1.06		15
Investor dependent	6	—		5
Total commercial	19	1.01		11
Consumer
Residential mortgage	8	1.14		6
Revolving mortgage	43	4.40		—
Consumer auto	19	—		—
Consumer other	60	8.94		—
Total consumer	9	1.58		6
Total loans and leases	18	1.04	%	11

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)
Commercial
Commercial construction	60	—	%	—
Owner occupied commercial mortgage	86	1.81		—
Non-owner occupied commercial mortgage	20	—		6
Commercial and industrial	16	0.54		11
Leases	—	—		6
Investor dependent	9	2.75		8
Total commercial	22	0.69		10
Consumer
Residential mortgage	120	—		—
Revolving mortgage	60	3.00		—
Consumer auto	32	—		—
Consumer other	—	7.53		—
Total consumer	90	4.77		—
Total loans and leases	24	0.69	%	10

Note: The financial effects of loan modifications for certain loan classes reported in the tables above were not reported in the preceding tables as the total amortized cost of loans modified during the period for such loan classes rounded to less than $1 million.

Amortized Cost of Loans Modified during the six months ended June 30, 2025

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	$	24	$	—	$	—	$	—	$	12	$	—	$	36	0.62	%
Owner occupied commercial mortgage	11		4		—		29		20		—		64		0.37
Non-owner occupied commercial mortgage	61		—		—		64		23		—		148		0.91
Commercial and industrial	82		77		—		3		22		5		189		0.47
Investor dependent	10		44		—		—		6		—		60		2.15
Total commercial	188		125		—		96		83		5		497		0.44
Consumer
Residential mortgage	9		—		3		2		25		—		39		0.17
Revolving mortgage	1		—		—		—		—		—		1		0.05
Total consumer	10		—		3		2		25		—		40		0.14
Total loans and leases	$	198	$	125	$	3	$	98	$	108	$	5	$	537	0.38	%

(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 $5 million of commercial and industrial loans modified with a term extension, payment delay, and interest rate reduction.

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	62		93		31		11		10		—		207		0.52
Investor dependent	2		74		—		—		26		1		103		2.71
Total commercial	168		167		35		12		71		1		454		0.41
Consumer
Residential mortgage	7		—		—		2		—		—		9		0.04
Revolving mortgage	3		—		—		1		—		—		4		0.18
Total consumer	10		—		—		3		—		—		13		0.05
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 loans modified with a term extension, interest rate reduction, and payment delay.

Financial Effects of Loan Modifications made during the six months ended June 30, 2025

	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)
Commercial
Commercial construction	7	—	%	6
Owner occupied commercial mortgage	11	1.93		5
Non-owner occupied commercial mortgage	24	0.60		7
Commercial and industrial	16	1.03		13
Investor dependent	7	—		5
Total commercial	17	1.01		9
Consumer
Residential mortgage	11	1.18		6
Revolving mortgage	47	3.75		5
Consumer auto	20	—		—
Consumer other	60	9.20		—
Total consumer	12	1.67		6
Total loans and leases	17	1.05	%	9

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

	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)
Commercial
Commercial construction	19	—	%	—
Owner occupied commercial mortgage	39	1.42		20
Non-owner occupied commercial mortgage	24	—		48
Commercial and industrial	14	0.66		11
Leases	—	—		6
Investor dependent	12	2.75		8
Total commercial	21	0.77		14
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		—
Total loans and leases	23	0.86	%	14

Note: The financial effects of loan modifications for certain loan classes reported in the tables above were not reported in the preceding tables as the total amortized cost of loans modified during the period for such loan classes rounded to less than $1 million.

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, 2025, there were $78 million of loans modified in the twelve months ended June 30, 2025, 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, 2025)

dollars in millions	Current		30–59 Days Past Due		60–89 Days Past Due		90 Days or Greater Past Due		Total
Commercial
Commercial construction	$	36	$	—	$	—	$	—	$	36
Owner occupied commercial mortgage	71		1		1		3		76
Non-owner occupied commercial mortgage	260		14		—		43		317
Commercial and industrial	270		2		4		1		277
Investor dependent	76		—		3		—		79
Total commercial	713		17		8		47		785
Consumer
Residential mortgage	37		3		2		3		45
Revolving mortgage	7		—		—		—		7
Total consumer	44		3		2		3		52
Total loans and leases	$	757	$	20	$	10	$	50	$	837

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	238		3		1		1		243
Investor dependent	113		—		—		9		122
Total commercial	611		3		4		21		639
Consumer
Residential mortgage	11		4		2		1		18
Revolving mortgage	6		—		—		—		6
Total consumer	17		4		2		1		24
Total loans and leases	$	628	$	7	$	6	$	22	$	663

At June 30, 2025, 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 six months ended June 30, 2025. At December 31, 2024, there were $55 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, 2024.

Loans Pledged

The following table provides information regarding loans pledged as collateral for borrowing capacity through the FHLB of Atlanta, the Federal Reserve Bank (“FRB”) and FDIC.

Loans Pledged

dollars in millions	June 30, 2025		December 31, 2024
FHLB of Atlanta
Lendable collateral value of pledged non-PCD loans	$	18,552	$	17,873
Less: advances	—		—
Less: letters of credit	700		1,450
Available borrowing capacity	$	17,852	$	16,423
Pledged non-PCD loans	$	30,835	$	30,421
FRB
Lendable collateral value of pledged non-PCD loans	$	10,561	$	5,475
Less: advances	—		—
Available borrowing capacity	$	10,561	$	5,475
Pledged non-PCD loans	$	12,026	$	6,309
FDIC
Lendable collateral value of pledged loans	$	36,711	$	41,282
Less: advances	—		—
Less: Purchase Money Note	35,991		35,991
Available borrowing capacity (1)	$	—	$	5,291
Pledged loans (1)	$	36,711	$	41,040

(1) The draw period ended on March 27, 2025, therefore there is no available borrowing capacity at June 30, 2025. Loans remain pledged as collateral for the Purchase Money Note.

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, 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, 2025 or December 31, 2024.

In connection with the SVBB Acquisition, FCB and the FDIC entered into financing agreements, including the five-year Purchase Money Note, and the Advance Facility Agreement, which allowed for advances through March 27, 2025. There were no amounts outstanding at the end of the draw period of the facility on March 27, 2025. Refer to Note 2—Business Combinations for further discussion of these agreements and Note 9—Borrowings for the outstanding carrying value of the Purchase Money Note.