SEGMENT INFORMATION

9 Months Ended

Sep. 30, 2025

Segment Reporting [Abstract]

SEGMENT INFORMATION

NOTE 17 — SEGMENT INFORMATION

Effective January 1, 2025, we made changes to the composition of our reportable segments as further discussed in Note 1—Significant Accounting Policies and Basis of Presentation, and the segment disclosures below for 2024 were recast to conform with those segment composition changes.

BancShares’ segments include the General Bank, the Commercial Bank, SVB Commercial, and Rail. All other financial information not included in the segments is reported in the Corporate section of the segment disclosures. We do not aggregate multiple operating segments into a reportable segment. Therefore, each of our operating segments are reportable segments.

Under our segment expense allocation methodology, allocated expenses increase noninterest expense of the applicable segment(s), with an offsetting decrease to Corporate noninterest expense. “All other noninterest expense” in the segment reporting tables below includes the effect of allocated expenses, resulting in a reduction to expense (or “Contra Expense”) for Corporate.

General Bank

The General Bank segment delivers products and services to consumer and small business clients through our extensive network of branches, various digital channels and a dedicated Private Bank. We offer a full suite of deposit products, loans (primarily residential mortgages and business and commercial loans), cash management, private banking and wealth management, payment services, and treasury services. We offer conforming and jumbo residential mortgage loans throughout the United States that are primarily originated through branches and retail referrals, employee referrals, internet leads, direct marketing and a correspondent lending channel, as well as through our private banking service. Private banking and wealth management offers a customized suite of products and services to individuals and institutional clients, as well as private equity and venture capital professionals and executive leaders of the innovation companies they support, and premium wine clients. The General Bank segment offers brokerage, investment advisory, private stock loans, other secured and unsecured lending products and vineyard development loans, as well as planning-based financial strategies, family office, financial planning, tax planning and trust services. The General Bank segment also includes a community association bank channel that supports deposit, cash management and lending to homeowner associations and property management companies.

Revenue is primarily generated from interest earned on loans. Noninterest income is primarily generated from fees for banking and advisory services, including lending-related fees, most of BancShares’ income related to deposit fees and service charges, cardholder services, along with essentially all of the wealth management services income. We primarily originate loans by utilizing our branch network and industry referrals, as well as direct digital marketing efforts. We derive our SBA loans through a network of SBA originators. We periodically purchase loans on a whole-loan basis. We also invest in community development that supports the construction of affordable housing in our communities in line with our CRA initiatives.

Commercial Bank

The Commercial Bank segment provides a range of lending, leasing, capital markets, asset management, and other financial and advisory services, primarily tailored to commercial and middle market companies in a wide range of industries, including energy, healthcare, technology media and telecommunications, asset-backed lending, capital finance, maritime, aerospace and defense, and sponsor finance. Loans offered are primarily senior secured loans collateralized by accounts receivable, inventory, machinery and equipment, transportation equipment, and/or intangibles, and are often used for working capital, plant expansion, acquisitions, or recapitalizations. These loans include revolving lines of credit and term loans and, depending on the nature of the collateral, may be referred to as collateral-backed loans, asset-based loans or cash flow loans. We provide senior secured loans to developers and other commercial real estate (“CRE”) professionals. Additionally, we provide business loans and leases, including both capital and operating leases, through a highly automated credit approval, documentation and funding process.

We provide factoring, receivable management and secured financing to businesses that operate in several industries. These include apparel, textile, furniture, home furnishings, and consumer electronics. Factoring entails the assumption of credit risk with respect to trade accounts receivable arising from the sale of goods from our factoring clients to their customers that have been factored (i.e., sold or assigned to the factor). Our factoring clients, which are generally manufacturers or importers of goods, are the counterparties on factoring, financing or receivables purchasing agreements to sell trade receivables to us. Our factoring clients’ customers, which are generally retailers, are the account debtors and obligors on trade accounts receivable that have been factored.

Revenue is primarily generated from interest and fees on loans. Noninterest income is mostly generated from rental income on operating lease equipment, lending-related fees, including most of BancShares’ capital market fees, and other revenue from banking services. Rental income is generally influenced by the size of the operating lease portfolio. Noninterest income also includes all of the commissions earned on factoring-related activities. We derive most of our commercial lending business through direct marketing to borrowers, lessees, manufacturers, vendors, and distributors. We also utilize referrals as a source for commercial lending business. We may periodically buy participations or syndications of loans and lines of credit and purchase loans on a whole-loan basis.

Rental income and depreciation expense on operating lease equipment is related to small and large ticket equipment we own and lease to others. Operating lease equipment is subject to depreciation expense over the useful life of the small and large ticket equipment, which is generally 3-10 years.

SVB Commercial

The SVB Commercial segment offers products and services to commercial clients and investors across stages, sectors and regions in the innovation ecosystem, as well as private equity and venture capital firms. The SVB Commercial segment provides solutions to the financial needs of commercial clients. Loan products consist of capital call lines of credit, investor dependent loans, and commercial and industrial loans made primarily to technology, life science and healthcare companies.

Revenue is primarily generated from interest earned on loans. Noninterest income is mostly generated from fees, including essentially all of client investment fees and most of the international fees, and other revenue from lending-related activities and banking services.

Deposit products include business and analysis checking accounts, money market accounts, multi-currency accounts, bank accounts, sweep accounts, and positive pay services. Services are provided through online and mobile banking platforms as well as branch locations.

Rail

The Rail segment offers customized leasing and financing solutions on a fleet of railcars and locomotives to railroads and shippers throughout North America. Railcar types include covered hopper cars used to ship grain and agricultural products, plastic pellets, sand, and cement; tank cars for energy products and chemicals; gondolas for coal, steel coil and mill service products; open-top hopper cars for coal and aggregates; boxcars for paper and auto parts; and centerbeams and flat cars for lumber. Revenue is generated primarily from rental income on operating lease equipment, which is included in noninterest income, and to a lesser extent, gains on sale of leasing equipment. Rental income is generally influenced by the size of the operating lease portfolio, utilization of the railcars, re-pricing of equipment renewed upon lease maturities, and pricing on new leases. Re-pricing refers to the rental rate in the renewed equipment contract compared to the prior contract.

Operating lease equipment is subject to depreciation expense over the useful life of the rail equipment, which is generally longer in duration, 40-50 years. The Rail segment leases railcars, primarily pursuant to full-service lease contracts under which we, as lessor, are responsible for railcar maintenance and repair. Maintenance and other operating lease expenses relate to equipment ownership and leasing costs associated with the railcar portfolio and tend to be variable due to timing and the number of railcars coming on or off lease as well as asset condition.

Corporate

All other financial information not included in the segments is reported in Corporate. Corporate contains BancShares’ centralized treasury function, which manages the investment security portfolio, interest-earning deposits at banks and corporate/wholesale funding (e.g., borrowings, Direct Bank deposits and brokered deposits). Corporate deposits are primarily comprised of Direct Bank deposits.

Corporate includes interest income on investment securities and interest-earning deposits at banks; interest expense for borrowings, Direct Bank deposits, and brokered deposits; as well as funds transfer pricing allocations. Noninterest income includes gains or losses on sales of investment securities, fair value adjustments on marketable equity securities, and income from bank owned life insurance. Personnel cost in Corporate includes the personnel costs not allocated to the operating segments. Corporate includes acquisition-related expenses and certain items related to accounting for business combinations, such as gains on acquisitions, Day 2 Provision for Credit Losses and discount accretion income for certain acquired loans. Corporate also includes the offsetting impacts of Allocated Expenses as discussed above.

Segment Results and Select Period End Balances

The following tables present the condensed income statements by segment and include the significant segment expenses and measure of segment profit or loss.

dollars in millions	Three Months Ended September 30, 2025
	General Bank		Commercial Bank		SVB Commercial		Rail		Corporate (1)		BancShares (2)
Net interest income (expense)	$	846	$	303	$	493	$	(55)	$	147	$	1,734
Rental income on operating lease equipment	—		54		—		219		—		273
All other noninterest income	166		101		135		2		22		426
Total noninterest income	166		155		135		221		22		699
Total revenue	1,012		458		628		166		169		2,433
Depreciation on operating lease equipment	—		43		—		55		—		98
Maintenance and other operating lease expenses	—		—		—		67		—		67
Personnel cost	213		74		106		6		418		817
Acquisition-related expenses	—		—		—		—		28		28
All other noninterest expense (3)	369		149		267		16		(320)		481
Total noninterest expense	582		266		373		144		126		1,491
Provision for credit losses	1		168		22		—		—		191
Income before income taxes	429		24		233		22		43		751
Income tax expense	109		6		58		5		5		183
Net income	$	320	$	18	$	175	$	17	$	38	$	568
Select Period End Balances
Loans and leases	$	65,225	$	38,841	$	40,629	$	63	$	—	$	144,758
Operating lease equipment, net	—		737		—		8,709		—		9,446
Deposits	74,596		2,978		39,891		2		45,723		163,190
	Three Months Ended September 30, 2024
	General Bank		Commercial Bank		SVB Commercial		Rail		Corporate (1)		BancShares (2)
Net interest income (expense)	$	760	$	305	$	560	$	(48)	$	219	$	1,796
Rental income on operating lease equipment	—		57		—		205		—		262
All other noninterest income	149		79		137		2		21		388
Total noninterest income	149		136		137		207		21		650
Total revenue	909		441		697		159		240		2,446
Depreciation on operating lease equipment	—		47		—		52		—		99
Maintenance and other operating lease expenses	—		—		—		59		—		59
Personnel cost	212		68		112		6		390		788
Acquisition-related expenses	—		—		—		—		46		46
All other noninterest expense (3)	341		150		272		14		(313)		464
Total noninterest expense	553		265		384		131		123		1,456
Provision for credit losses	55		11		51		—		—		117
Income before income taxes	301		165		262		28		117		873
Income tax expense	99		41		75		8		11		234
Net income	$	202	$	124	$	187	$	20	$	106	$	639
Select Period End Balances
Loans and leases	$	64,254	$	37,281	$	37,098	$	62	$	—	$	138,695
Operating lease equipment, net	—		767		—		8,419		—		9,186
Deposits	71,898		3,126		35,844		14		40,692		151,574
(1) Corporate includes all other financial information that is not included in the reportable segments.
(2) In the segment reporting table above, there are no reconciling differences between BancShares and the aggregate of all reportable segments and Corporate.
(3) All other noninterest expense represents “other segment items” under Accounting Standards Codification (“ASC”) 280 and primarily includes Allocated Expenses, net occupancy expense, equipment expense, professional fees, third-party processing fees, FDIC insurance expense, marketing expense, and intangible amortization. All other noninterest expense is presented net of Allocated Expenses in the segment reporting table above, resulting in Contra Expense for Corporate as further discussed above.

dollars in millions	Nine Months Ended September 30, 2025
	General Bank		Commercial Bank		SVB Commercial		Rail		Corporate (1)		BancShares (2)
Net interest income (expense)	$	2,458	$	895	$	1,476	$	(160)	$	423	$	5,092
Rental income on operating lease equipment	—		164		—		651		—		815
All other noninterest income	494		268		397		7		31		1,197
Total noninterest income	494		432		397		658		31		2,012
Total revenue	2,952		1,327		1,873		498		454		7,104
Depreciation on operating lease equipment	—		131		—		165		—		296
Maintenance and other operating lease expenses	—		—		—		180		—		180
Personnel cost	637		215		330		20		1,243		2,445
Acquisition-related expenses	—		—		—		—		108		108
All other noninterest expense (3)	1,090		462		804		56		(957)		1,455
Total noninterest expense	1,727		808		1,134		421		394		4,484
Provision for credit losses	60		300		100		—		—		460
Income before income taxes	1,165		219		639		77		60		2,160
Income tax expense (benefit)	298		56		162		19		(1)		534
Net income	$	867	$	163	$	477	$	58	$	61	$	1,626
	Nine Months Ended September 30, 2024
	General Bank		Commercial Bank		SVB Commercial		Rail		Corporate (1)		BancShares (2)
Net interest income (expense)	$	2,174	$	916	$	1,636	$	(136)	$	844	$	5,434
Rental income on operating lease equipment	—		172		—		604		—		776
All other noninterest income	446		239		405		8		42		1,140
Total noninterest income	446		411		405		612		42		1,916
Total revenue	2,620		1,327		2,041		476		886		7,350
Depreciation on operating lease equipment	—		141		—		152		—		293
Maintenance and other operating lease expenses	—		—		—		164		—		164
Personnel cost	604		205		354		20		1,094		2,277
Acquisition-related expenses	—		—		—		—		148		148
All other noninterest expense (3)	978		425		765		43		(875)		1,336
Total noninterest expense	1,582		771		1,119		379		367		4,218
Provision for credit losses	113		70		93		—		—		276
Income before income taxes	925		486		829		97		519		2,856
Income tax expense	270		127		235		27		120		779
Net income	$	655	$	359	$	594	$	70	$	399	$	2,077
(1) Corporate includes all other financial information that is not included in the reportable segments.
(2) In the segment reporting table above, there are no reconciling differences between BancShares and the aggregate of all reportable segments and Corporate.
(3) All other noninterest expense represents “other segment items” under ASC 280 and primarily includes Allocated Expenses, net occupancy expense, equipment expense, professional fees, third-party processing fees, FDIC insurance expense, marketing expense, and intangible amortization. All other noninterest expense is presented net of Allocated Expenses in the segment reporting table above, resulting in Contra Expense for Corporate as further discussed above.