LEASES (Tables)

3 Months Ended

Mar. 31, 2026

Leases [Abstract]

Schedule of Operating and Finance Lease Assets and Liabilities

The following table presents supplemental balance sheet information and remaining weighted average lease terms and discount rates:

Supplemental Lease Information

dollars in millions	Classification	March 31, 2026			December 31, 2025
Lease assets:
Operating lease ROU assets	Other assets	$	285		$	294
Finance leases	Premises and equipment	71			71
Total lease assets		$	356		$	365
Lease liabilities:
Operating leases	Other liabilities	$	317		$	329
Finance leases	Other borrowings	73			72
Total lease liabilities		$	390		$	401
Weighted-average remaining lease terms:
Operating leases		7.0 years			7.2 years
Finance leases		7.4 years			7.7 years
Weighted-average discount rate:
Operating leases		3.10		%	3.10		%
Finance leases		4.21			4.20

Schedule of Net Lease Cost

The following table presents components of lease cost:

Components of Net Lease Cost

dollars in millions		Three Months Ended March 31,
	Classification	2026		2025
Operating lease cost	Occupancy expense	$	17	$	18
Finance lease ROU asset amortization	Equipment expense	3		1
Interest on lease liabilities	Interest expense - other borrowings	1		—
Variable lease cost (1)	Occupancy expense	5		7
Sublease income	Occupancy expense	(1)		(2)
Net lease cost (1)		$	25	$	24

(1) Includes short-term lease cost.

Schedule of Supplemental Cash Flow Information

The following table presents supplemental cash flow information related to leases:

Supplemental Cash Flow Information

dollars in millions	Three Months Ended March 31,
	2026		2025
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	19	$	19
Operating cash flows from finance leases	1		—
Financing cash flows from finance leases	2		1
ROU assets obtained in exchange for new operating lease liabilities	6		3
ROU assets obtained in exchange for new finance lease liabilities	3		22

Schedule of Operating Lease Income

The following table presents lease income related to BancShares’ equipment leases:

Lease Income

dollars in millions	Three Months Ended March 31,
	2026		2025
Lease income – operating leases	$	268	$	254
Variable lease income – operating leases (1)	13		16
Rental income on operating leases	281		270
Interest income – sales type and direct financing leases	42		43
Variable lease income included in other noninterest income (2)	14		14
Interest income – leveraged leases	1		1
Total lease income	$	338	$	328

(1)     Primarily includes per diem railcar operating lease rental income earned on a time or mileage usage basis.

(2) Includes revenue related to insurance coverage on leased equipment and leased equipment property tax reimbursements due from customers.