LOANS AND LEASES

9 Months Ended

Sep. 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	September 30, 2025		December 31, 2024
Commercial
Commercial construction	$	5,926	$	5,109
Owner occupied commercial mortgage	17,232		16,842
Non-owner occupied commercial mortgage	15,645		16,194
Commercial and industrial	41,172		40,737
Leases	2,066		2,014
Global fund banking	31,615		27,904
Investor dependent	2,772		3,193
Total commercial	116,428		111,993
Consumer
Residential mortgage	23,036		23,152
Revolving mortgage	2,794		2,567
Consumer auto	1,463		1,523
Consumer other	1,037		986
Total consumer	28,330		28,228
Total loans and leases	$	144,758	$	140,221

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

At September 30, 2025 and December 31, 2024, accrued interest receivable on loans included in other assets was $637 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 $71 million and $230 million for the three and nine months ended September 30, 2025, including $6 million and $17 million for unfunded commitments, respectively. Discount accretion income was $107 million and $415 million for the three and nine months ended September 30, 2024, including $16 million and $71 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	September 30, 2025		December 31, 2024
Deferred fees, including unamortized costs and unearned fees on non-PCD loans	$	(89)	$	(91)
Net unamortized discount on acquired loans
Non-PCD	$	1,339	$	1,504
PCD	44		94
Total net unamortized discount	$	1,383	$	1,598

The aging and nonaccrual status of the outstanding loans and leases by class at September 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	September 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	$	8	$	20	$	19	$	47	$	5,870	$	5,917	$	9	$	5,926
Owner occupied commercial mortgage	31		21		—		52		17,022		17,074		158		17,232
Non-owner occupied commercial mortgage	36		36		142		214		15,066		15,280		365		15,645
Commercial and industrial	253		53		40		346		40,250		40,596		576		41,172
Leases	30		7		—		37		2,004		2,041		25		2,066
Global fund banking	—		—		—		—		31,615		31,615		—		31,615
Investor dependent	2		1		—		3		2,708		2,711		61		2,772
Total commercial	360		138		201		699		114,535		115,234		1,194		116,428
Consumer
Residential mortgage	116		36		6		158		22,708		22,866		170		23,036
Revolving mortgage	16		3		—		19		2,742		2,761		33		2,794
Consumer auto	10		2		—		12		1,443		1,455		8		1,463
Consumer other	4		3		2		9		1,027		1,036		1		1,037
Total consumer	146		44		8		198		27,920		28,118		212		28,330
Total loans and leases	$	506	$	182	$	209	$	897	$	142,455	$	143,352	$	1,406	$	144,758
	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 $14 million for the nine months ended September 30, 2025 and $14 million for the year ended December 31, 2024.

(2)    Nonaccrual loans for which there was no related ALLL totaled $411 million at September 30, 2025 and $303 million at December 31, 2024.

Other real estate owned (“OREO”) and repossessed assets were $98 million as of September 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 September 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

September 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	$	1,488	$	1,672	$	1,453	$	590	$	84	$	79	$	362	$	—	$	5,728
Special Mention	7		4		56		—		—		—		—		—		67
Substandard	5		15		4		85		15		4		—		—		128
Doubtful	3		—		—		—		—		—		—		—		3
Ungraded	—		—		—		—		—		—		—		—		—
Total commercial construction	1,503		1,691		1,513		675		99		83		362		—		5,926
Owner occupied commercial mortgage
Pass	1,806		2,703		2,345		2,463		2,355		4,253		215		28		16,168
Special Mention	47		32		47		106		40		51		2		—		325
Substandard	39		59		115		187		94		221		9		1		725
Doubtful	—		4		10		—		—		—		—		—		14
Ungraded	—		—		—		—		—		—		—		—		—
Total owner occupied commercial mortgage	1,892		2,798		2,517		2,756		2,489		4,525		226		29		17,232
Non-owner occupied commercial mortgage
Pass	1,977		2,606		3,235		2,241		1,375		2,575		93		3		14,105
Special Mention	128		53		114		51		1		24		—		—		371
Substandard	354		243		141		107		35		199		1		—		1,080
Doubtful	42		21		—		15		—		11		—		—		89
Ungraded	—		—		—		—		—		—		—		—		—
Total non-owner occupied commercial mortgage	2,501		2,923		3,490		2,414		1,411		2,809		94		3		15,645
Commercial and industrial
Pass	9,018		8,274		4,151		3,307		1,717		1,803		9,082		75		37,427
Special Mention	188		234		105		122		193		47		116		—		1,005
Substandard	410		207		387		454		316		58		502		4		2,338
Doubtful	10		11		31		80		10		1		108		—		251
Ungraded	—		—		—		—		—		—		151		—		151
Total commercial and industrial	9,626		8,726		4,674		3,963		2,236		1,909		9,959		79		41,172
Leases
Pass	620		591		375		179		79		62		—		—		1,906
Special Mention	14		16		13		20		2		—		—		—		65
Substandard	19		22		19		9		7		10		—		—		86
Doubtful	2		2		2		2		1		—		—		—		9
Ungraded	—		—		—		—		—		—		—		—		—
Total leases	655		631		409		210		89		72		—		—		2,066
Global fund banking
Pass	983		778		57		104		11		16		29,516		148		31,613
Special Mention	—		1		—		—		—		—		—		—		1
Substandard	—		—		—		—		—		—		1		—		1
Doubtful	—		—		—		—		—		—		—		—		—
Ungraded	—		—		—		—		—		—		—		—		—
Total global fund banking	983		779		57		104		11		16		29,517		148		31,615
Investor dependent
Pass	798		776		183		108		—		—		290		—		2,155
Special Mention	1		48		7		5		—		—		1		—		62
Substandard	65		190		140		46		7		—		47		—		495
Doubtful	10		24		16		6		—		—		4		—		60
Ungraded	—		—		—		—		—		—		—		—		—
Total investor dependent	874		1,038		346		165		7		—		342		—		2,772
Total commercial	$	18,034	$	18,586	$	13,006	$	10,287	$	6,342	$	9,414	$	40,500	$	259	$	116,428

Consumer Loans - Delinquency Status by Class

September 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	$	1,558	$	2,219	$	2,671	$	4,912	$	4,815	$	6,574	$	5	$	—	$	22,754
30-59 days	1		5		15		18		14		81		—		—		134
60-89 days	1		2		2		7		4		39		—		—		55
90 days or greater	—		1		5		8		8		71		—		—		93
Total residential mortgage	1,560		2,227		2,693		4,945		4,841		6,765		5		—		23,036
Revolving mortgage
Current	—		—		—		—		—		—		2,629		125		2,754
30-59 days	—		—		—		—		—		—		11		9		20
60-89 days	—		—		—		—		—		—		1		5		6
90 days or greater	—		—		—		—		—		—		3		11		14
Total revolving mortgage	—		—		—		—		—		—		2,644		150		2,794
Consumer auto
Current	422		454		248		183		94		45		—		—		1,446
30-59 days	1		3		3		3		1		1		—		—		12
60-89 days	—		1		1		1		—		—		—		—		3
90 days or greater	—		1		1		—		—		—		—		—		2
Total consumer auto	423		459		253		187		95		46		—		—		1,463
Consumer other
Current	89		112		92		55		18		8		655		—		1,029
30-59 days	—		—		—		—		—		—		3		—		3
60-89 days	—		—		—		—		—		—		2		—		2
90 days or greater	—		—		—		—		—		—		3		—		3
Total consumer other	89		112		92		55		18		8		663		—		1,037
Total consumer	$	2,072	$	2,798	$	3,038	$	5,187	$	4,954	$	6,819	$	3,312	$	150	$	28,330

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 disclosures by origination year and loan class are summarized in the following tables:

Nine Months Ended September 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
Commercial construction	$	—	$	—	$	—	$	1	$	—	$	—	$	—	$	—	$	1
Owner occupied commercial mortgage	—		2		—		—		—		1		—		—		3
Non-owner occupied commercial mortgage	4		23		3		20		—		32		—		—		82
Commercial and industrial	28		20		51		44		9		3		191		1		347
Leases	2		3		3		3		1		3		—		—		15
Investor dependent	—		14		30		28		7		4		9		—		92
Total commercial	34		62		87		96		17		43		200		1		540
Consumer
Residential mortgage	—		—		—		—		—		6		—		—		6
Consumer auto	—		2		2		1		1		—		—		—		6
Consumer other	—		1		1		1		—		—		12		—		15
Total consumer	—		3		3		2		1		6		12		—		27
Total loans and leases	$	34	$	65	$	90	$	98	$	18	$	49	$	212	$	1	$	567

Nine Months Ended September 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
Owner occupied commercial mortgage	$	—	$	—	$	—	$	—	$	—	$	8	$	—	$	—	$	8
Non-owner occupied commercial mortgage	—		—		—		—		19		70		—		—		89
Commercial and industrial	8		35		65		15		4		10		50		1		188
Leases	1		4		4		4		2		2		—		—		17
Investor dependent	—		37		63		27		3		4		7		—		141
Total commercial	9		76		132		46		28		94		57		1		443
Consumer
Residential mortgage	—		—		—		—		—		1		—		—		1
Consumer auto	—		2		1		1		—		—		—		—		4
Consumer other	—		1		1		1		—		1		12		—		16
Total consumer	—		3		2		2		—		2		12		—		21
Total loans and leases	$	9	$	79	$	134	$	48	$	28	$	96	$	69	$	1	$	464

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 September 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	$	8	$	—	$	—	$	—	$	7	$	—	$	15	0.24	%
Owner occupied commercial mortgage	8		3		—		—		—		—		11		0.07
Non-owner occupied commercial mortgage	61		9		—		45		—		—		115		0.74
Commercial and industrial	233		48		—		14		4		1		300		0.73
Investor dependent	9		40		—		—		4		—		53		1.92
Total commercial	319		100		—		59		15		1		494		0.42
Consumer
Residential mortgage	7		—		1		—		2		—		10		0.04
Total consumer	7		—		1		—		2		—		10		0.04
Total loans and leases	$	326	$	100	$	1	$	59	$	17	$	1	$	504	0.35	%

(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 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 September 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		Total		Percent of Total Loan Class
Commercial
Owner occupied commercial mortgage	$	15	$	1	$	—	$	8	$	—	$	24	0.15	%
Non-owner occupied commercial mortgage	30		6		—		—		—		36		0.22
Commercial and industrial	140		—		—		3		1		144		0.36
Investor dependent	6		34		—		—		8		48		1.37
Total commercial	191		41		—		11		9		252		0.23
Consumer
Residential mortgage	1		—		—		1		—		2		0.01
Revolving mortgage	1		—		—		—		—		1		0.05
Total consumer	2		—		—		1		—		3		0.01
Total loans and leases	$	193	$	41	$	—	$	12	$	9	$	255	0.18	%

(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 September 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	8	—	%	7
Owner occupied commercial mortgage	13	—		6
Non-owner occupied commercial mortgage	9	0.52		36
Commercial and industrial	15	1.05		12
Leases	60	—		—
Investor dependent	11	—		6
Total commercial	13	0.65		11
Consumer
Residential mortgage	21	1.52		8
Revolving mortgage	58	4.36		—
Consumer auto	18	—		—
Consumer other	60	11.41		—
Total consumer	24	3.01		8
Total loans and leases	13	0.71	%	11

Financial Effects of Loan Modifications made during the three months ended September 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	36	0.60	%	—
Owner occupied commercial mortgage	17	1.82		6
Non-owner occupied commercial mortgage	7	—		6
Commercial and industrial	15	2.61		6
Leases	11	—		—
Investor dependent	9	—		6
Total commercial	14	2.03		6
Consumer
Residential mortgage	47	2.07		11
Revolving mortgage	60	5.42		—
Consumer auto	31	—		—
Consumer other	60	10.54		—
Total consumer	52	3.29		11
Total loans and leases	14	2.19	%	6

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 nine months ended September 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	$	8	$	—	$	—	$	—	$	15	$	—	$	23	0.38	%
Owner occupied commercial mortgage	11		5		—		29		22		—		67		0.39
Non-owner occupied commercial mortgage	120		9		—		109		23		—		261		1.67
Commercial and industrial	267		124		—		16		13		6		426		1.03
Investor dependent	15		59		—		—		10		—		84		3.04
Total commercial	421		197		—		154		83		6		861		0.74
Consumer
Residential mortgage	15		—		1		2		25		—		43		0.18
Revolving mortgage	1		—		—		1		—		—		2		0.07
Total consumer	16		—		1		3		25		—		45		0.16
Total loans and leases	$	437	$	197	$	1	$	157	$	108	$	6	$	906	0.63	%

(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 $6 million of commercial and industrial loans modified with a term extension, payment delay, and interest rate reduction.

Amortized Cost of Loans Modified during the nine months ended September 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	0.06	%
Owner occupied commercial mortgage	36		1		4		9		9		—		59		0.36
Non-owner occupied commercial mortgage	108		6		—		—		26		—		140		0.88
Commercial and industrial	191		91		31		12		1		—		326		0.81
Investor dependent	7		78		—		—		33		1		119		3.32
Total commercial	345		176		35		21		69		1		647		0.59
Consumer
Residential mortgage	7		—		—		1		—		—		8		0.04
Revolving mortgage	4		—		—		1		—		—		5		0.20
Total consumer	11		—		—		2		—		—		13		0.05
Total loans and leases	$	356	$	176	$	35	$	23	$	69	$	1	$	660	0.48	%

(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 nine months ended September 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	17	0.56		14
Commercial and industrial	14	1.31		12
Leases	60	—		—
Investor dependent	9	—		7
Total commercial	15	0.91		10
Consumer
Residential mortgage	14	1.21		6
Revolving mortgage	48	4.04		5
Consumer auto	19	—		—
Consumer other	60	9.93		—
Total consumer	16	2.39		6
Total loans and leases	15	0.95	%	10

Financial Effects of Loan Modifications made during the nine months ended September 30, 2024

	Weighted Average Term Extension (in Months)	Weighted Average Interest Rate Reduction		Weighted Average Payment Delay (in Months)
Commercial
Commercial construction	15	0.60	%	—
Owner occupied commercial mortgage	28	1.67		18
Non-owner occupied commercial mortgage	20	—		40
Commercial and industrial	15	0.71		12
Leases	11	—		6
Investor dependent	11	2.75		8
Total commercial	18	0.96		14
Consumer
Residential mortgage	70	2.09		11
Revolving mortgage	60	4.73		—
Consumer auto	29	0.26		—
Consumer other	57	9.65		—
Total consumer	66	3.41		11
Total loans and leases	19	1.07	%	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 September 30, 2025, there were $113 million of loans modified in the twelve months ended September 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 September 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	$	22	$	1	$	—	$	—	$	23
Owner occupied commercial mortgage	74		1		—		9		84
Non-owner occupied commercial mortgage	241		4		1		60		306
Commercial and industrial	404		2		1		24		431
Investor dependent	90		—		—		1		91
Total commercial	831		8		2		94		935
Consumer
Residential mortgage	35		3		3		6		47
Revolving mortgage	7		—		—		—		7
Total consumer	42		3		3		6		54
Total loans and leases	$	873	$	11	$	5	$	100	$	989

Modified Loans Payment Status (twelve months ended September 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	50		—		9		2		61
Non-owner occupied commercial mortgage	156		1		—		16		173
Commercial and industrial	346		1		—		2		349
Investor dependent	127		—		—		1		128
Total commercial	682		2		9		21		714
Consumer
Residential mortgage	9		1		2		4		16
Revolving mortgage	6		—		—		—		6
Total consumer	15		1		2		4		22
Total loans and leases	$	697	$	3	$	11	$	25	$	736

At September 30, 2025, there were $17 million of commitments to lend additional funds to debtors experiencing financial difficulty for which the terms of the loan were modified during the nine months ended September 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	September 30, 2025		December 31, 2024
FHLB of Atlanta
Lendable collateral value of pledged non-PCD loans	$	19,472	$	17,873
Less: advances	—		—
Less: letters of credit	1,450		1,450
Available borrowing capacity	$	18,022	$	16,423
Pledged non-PCD loans	$	31,945	$	30,421
FRB
Lendable collateral value of pledged non-PCD loans	$	13,328	$	5,475
Less: advances	—		—
Available borrowing capacity	$	13,328	$	5,475
Pledged non-PCD loans	$	13,804	$	6,309
FDIC
Lendable collateral value of pledged loans	$	36,228	$	41,282
Less: advances	—		—
Less: Purchase Money Note	35,991		35,991
Available borrowing capacity (1)	$	—	$	5,291
Pledged loans (1)	$	34,860	$	41,040

(1) The draw period ended on March 27, 2025, therefore there is no available borrowing capacity at September 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. There were no outstanding advances from the FHLB at September 30, 2025 or December 31, 2024.

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 September 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.