v3.26.1
LOANS AND LEASES
 3 Months Ended
Mar. 31, 2026
Receivables [Abstract]  
LOANS AND LEASES
NOTE 5 — LOANS AND LEASES

Loans held for sale are excluded from loans and leases on the Consolidated Balance Sheets and are included in Note 4—Assets Held For Sale. Finance leases for which we are the lessor are included in the commercial and industrial loan class in the following tables. Refer to Note 7—Leases for further information on leases.

The following table summarizes loans by class:

Loans by Class
dollars in millionsMarch 31, 2026December 31, 2025
Commercial
Commercial and industrial$45,753 $44,721 
Capital call lines32,274 31,791 
Owner occupied commercial mortgage17,502 17,660 
Investor dependent2,714 2,778 
Commercial real estate23,707 23,784 
Total commercial121,950 120,734 
Consumer
Residential mortgage21,698 21,861 
Revolving mortgage2,863 2,863 
Auto1,332 1,416 
Other consumer849 1,056 
Total consumer26,742 27,196 
Total loans and leases$148,692 $147,930 

At March 31, 2026 and December 31, 2025, accrued interest receivable on loans included in other assets was $639 million and $635 million, respectively, and was excluded from the estimate of the ALLL.

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 $48 million for the three months ended March 31, 2026, including $1 million for unfunded commitments. Discount accretion income was $84 million for the three months ended March 31, 2025, including $8 million for unfunded commitments.

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 millionsMarch 31, 2026December 31, 2025
Deferred fees, including unamortized costs and unearned fees on non-PCD loans$(102)$(103)
Net unamortized discount on acquired loans
Non-PCD$1,238$1,281
PCD4345 
Total net unamortized discount$1,281$1,326
The aging and nonaccrual status of the outstanding loans and leases by class at March 31, 2026 and December 31, 2025 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)
dollars in millionsMarch 31, 2026
Accruing Loans
30-59 Days
Past Due		60-89 Days
Past Due		90 Days or
Greater		Total
Past Due		CurrentTotal Accruing
Nonaccrual Loans (2)
Total
Commercial
Commercial and industrial$222 $29 $35 $286 $45,006 $45,292 $461 $45,753 
Capital call lines31 — — 31 32,243 32,274 — 32,274 
Owner occupied commercial mortgage65 24 16 105 17,235 17,340 162 17,502 
Investor dependent8 — — 8 2,669 2,677 37 2,714 
Commercial real estate87 10 185 282 22,901 23,183 524 23,707 
Total commercial413 63 236 712 120,054 120,766 1,184 121,950 
Consumer
Residential mortgage148 25 7 180 21,322 21,502 196 21,698 
Revolving mortgage24 3 — 27 2,798 2,825 38 2,863 
Auto10 2 — 12 1,310 1,322 10 1,332 
Other consumer4 2 2 8 840 848 1 849 
Total consumer186 32 9 227 26,270 26,497 245 26,742 
Total loans and leases$599 $95 $245 $939 $146,324 $147,263 $1,429 $148,692 
December 31, 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 (2)
Total
Commercial
Commercial and industrial$232 $56 $63 $351 $43,914 $44,265 $456 $44,721 
Capital call lines— — — — 31,791 31,791 — 31,791 
Owner occupied commercial mortgage78 19 1 98 17,403 17,501 159 17,660 
Investor dependent11 1 — 12 2,717 2,729 49 2,778 
Commercial real estate221 31 171 423 22,943 23,366 418 23,784 
Total commercial542 107 235 884 118,768 119,652 1,082 120,734 
Consumer
Residential mortgage168 42 7 217 21,465 21,682 179 21,861 
Revolving mortgage25 4 — 29 2,799 2,828 35 2,863 
Auto15 3 — 18 1,389 1,407 9 1,416 
Other consumer5 3 2 10 1,044 1,054 2 1,056 
Total consumer213 52 9 274 26,697 26,971 225 27,196 
Total loans and leases$755 $159 $244 $1,158 $145,465 $146,623 $1,307 $147,930 
(1)    Accrued interest that was deducted from interest income when the loan was moved to nonaccrual status was $5 million for the three months ended March 31, 2026 and $7 million for the three months ended March 31, 2025.
(2)    Nonaccrual loans for which there was no related ALLL totaled $343 million at March 31, 2026 and $415 million at December 31, 2025. Refer to Note 1—Significant Accounting Policies and Basis of Presentation of our 2025 Form 10-K for discussion of loans individually evaluated to determine the ALLL.

Other real estate owned (“OREO”) and repossessed assets were $116 million as of March 31, 2026 and $124 million as of December 31, 2025.
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 March 31, 2026 and December 31, 2025, 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 end of the period. 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 PCD loans.

Commercial Loans - Risk Classifications by Class
March 31, 2026
Risk Classification:Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202620252024202320222021 & PriorRevolvingTotal
Commercial and industrial
Pass$5,282 $10,795 $6,883 $3,182 $2,450 $2,712 $10,792 $72 $42,168 
Special Mention74 139 347 64 80 199 177 — 1,080 
Substandard91 417 284 205 441 339 377 8 2,162 
Doubtful9 69 18 24 32 15 25 — 192 
Ungraded— — — — — — 151 — 151 
Total commercial and industrial5,456 11,420 7,532 3,475 3,003 3,265 11,522 80 45,753 
Capital call lines
Pass40 — — — — — 32,191 43 32,274 
Total capital call lines40 — — — — — 32,191 43 32,274 
Owner occupied commercial mortgage
Pass678 2,651 2,569 2,116 2,331 5,872 253 28 16,498 
Special Mention18 7 49 37 98 69 1 — 279 
Substandard14 44 66 129 168 280 9 3 713 
Doubtful— — — 12 — — — — 12 
Total owner occupied commercial mortgage710 2,702 2,684 2,294 2,597 6,221 263 31 17,502 
Investor dependent
Pass182 986 522 84 61 — 302 — 2,137 
Special Mention— 26 17 4 3 — 5 — 55 
Substandard7 140 202 77 7 3 53 — 489 
Doubtful— 8 11 10 2 — 2 — 33 
Total Investor dependent189 1,160 752 175 73 3 362 — 2,714 
Commercial real estate
Pass1,496 4,854 4,561 3,875 2,643 3,970 688 — 22,087 
Special Mention27 50 20 144 28 22 — — 291 
Substandard16 479 211 175 118 243 1 — 1,243 
Doubtful12 13 27 1 19 14 — — 86 
Total commercial real estate1,551 5,396 4,819 4,195 2,808 4,249 689 — 23,707 
Total commercial
Pass7,678 19,286 14,535 9,257 7,485 12,554 44,226 143 115,164 
Special Mention119 222 433 249 209 290 183 — 1,705 
Substandard128 1,080 763 586 734 865 440 11 4,607 
Doubtful21 90 56 47 53 29 27 — 323 
Ungraded— — — — — — 151 — 151 
Total commercial$7,946 $20,678 $15,787 $10,139 $8,481 $13,738 $45,027 $154 $121,950 
Consumer Loans - Delinquency Status by Class
March 31, 2026
Days Past Due:Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202620252024202320222021 & PriorRevolvingTotal
Residential mortgage
Current$371 $1,549 $1,597 $2,412 $4,703 $10,741 $4 $— $21,377 
30-59 days— 5 2 8 25 125 — — 165 
60-89 days— 1 2 8 8 19 — — 38 
90 days or greater— 2 5 7 16 88 — — 118 
Total residential mortgage371 1,557 1,606 2,435 4,752 10,973 4 — 21,698 
Revolving mortgage
Current— — — — — — 2,678 134 2,812 
30-59 days— — — — — — 18 8 26 
60-89 days— — — — — — 1 4 5 
90 days or greater— — — — — — 4 16 20 
Total revolving mortgage— — — — — — 2,701 162 2,863 
Auto
Current109 436 360 188 134 86 — — 1,313 
30-59 days— 2 3 2 2 2 — — 11 
60-89 days— 1 1 1 1 — — — 4 
90 days or greater— 1 1 1 1 — — — 4 
Total consumer auto109 440 365 192 138 88 — — 1,332 
Other consumer
Current42 164 81 51 44 17 443 — 842 
30-59 days— — — — — — 3 — 3 
60-89 days— — — — — — 2 — 2 
90 days or greater— — — — — — 2 — 2 
Total consumer other42 164 81 51 44 17 450 — 849 
Total consumer$522 $2,161 $2,052 $2,678 $4,934 $11,078 $3,155 $162 $26,742 
 
The following tables represent current credit quality indicators by origination year as of December 31, 2025:

Commercial Loans - Risk Classifications by Class
December 31, 2025
Risk Classification:Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202520242023202220212020 & PriorRevolvingTotal
Commercial and industrial
Pass$13,484 $7,906 $3,552 $2,963 $1,428 $1,539 $10,143 $76 $41,091 
Special Mention213 264 113 97 143 60 181 — 1,071 
Substandard451 296 215 475 347 65 416 5 2,270 
Doubtful18 24 27 35 10 — 32 — 146 
Ungraded— — — — — — 143 — 143 
Total Commercial and industrial14,166 8,490 3,907 3,570 1,928 1,664 10,915 81 44,721 
Capital call lines
Pass— — — — — — 31,758 33 31,791 
Total capital call lines— — — — — — 31,758 33 31,791 
Owner occupied commercial mortgage
Pass2,816 2,739 2,177 2,430 2,290 3,954 248 28 16,682 
Special Mention26 34 49 78 24 27 2 — 240 
Substandard41 55 128 179 88 222 8 3 724 
Doubtful— 4 10 — — — — — 14 
Total owner occupied commercial mortgage2,883 2,832 2,364 2,687 2,402 4,203 258 31 17,660 
Investor dependent
Pass981 648 110 67 — — 326 — 2,132 
Special Mention29 78 1 19 — — 19 — 146 
Substandard104 164 117 14 4 — 50 — 453 
Doubtful13 11 16 5 — — 2 — 47 
Total investor dependent1,127 901 244 105 4 — 397 — 2,778 
Commercial real estate
Pass5,005 4,720 4,512 2,791 1,614 2,631 732 — 22,005 
Special Mention202 19 139 25 2 31 — — 418 
Substandard409 249 221 145 70 193 1 — 1,288 
Doubtful29 3 — 18 1 22 — — 73 
Total commercial real estate5,645 4,991 4,872 2,979 1,687 2,877 733 — 23,784 
Total commercial
Pass22,286 16,013 10,351 8,251 5,332 8,124 43,207 137 113,701 
Special Mention470 395 302 219 169 118 202 — 1,875 
Substandard1,005 764 681 813 509 480 475 8 4,735 
Doubtful60 42 53 58 11 22 34 — 280 
Ungraded— — — — — — 143 — 143 
Total commercial$23,821 $17,214 $11,387 $9,341 $6,021 $8,744 $44,061 $145 $120,734 
Consumer Loans - Delinquency Status by Class
December 31, 2025
Days Past Due:Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202520242023202220212020 & PriorRevolvingTotal
Residential mortgage
Current$1,601 $1,609 $2,512 $4,783 $4,715 $6,295 $2 $— $21,517 
30-59 days3 4 12 32 32 94 2 — 179 
60-89 days— 1 3 9 3 38 — — 54 
90 days or greater1 5 6 10 7 82 — — 111 
Total residential mortgage1,605 1,619 2,533 4,834 4,757 6,509 4 — 21,861 
Revolving mortgage
Current— — — — — — 2,686 125 2,811 
30-59 days— — — — — — 20 9 29 
60-89 days— — — — — — — 6 6 
90 days or greater— — — — — — 3 14 17 
Total revolving mortgage— — — — — — 2,709 154 2,863 
Auto
Current504 405 217 157 77 33 — — 1,393 
30-59 days3 4 3 3 2 1 — — 16 
60-89 days— 1 1 1 1 — — — 4 
90 days or greater— 1 1 1 — — — — 3 
Total consumer auto507 411 222 162 80 34 — — 1,416 
Other consumer
Current176 100 65 53 15 6 630 — 1,045 
30-59 days1 1 — — — — 4 — 6 
60-89 days— — — — — — 2 — 2 
90 days or greater1 — — — — — 2 — 3 
Total consumer other178 101 65 53 15 6 638 — 1,056 
Total consumer$2,290 $2,131 $2,820 $5,049 $4,852 $6,549 $3,351 $154 $27,196 
Gross Charge-offs

Gross charge-off disclosures by origination year and loan class are summarized in the following tables:

Three Months Ended March 31, 2026
Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202620252024202320222021 & PriorRevolvingTotal
Commercial
Commercial and industrial$1 $7 $19 $8 $7 $5 $47 $1 $95 
Capital call lines— — — — — — — — — 
Owner occupied commercial mortgage— — 4 — — — — — 4 
Investor dependent— 6 — — 3 2 1 — 12 
Commercial real estate— 6 — — — 6 — — 12 
Total commercial1 19 23 8 10 13 48 1 123 
Consumer
Residential mortgage— — — — — — — — — 
Revolving mortgage— — — — — — — — — 
Auto— 1 — 1 — — — — 2 
Other consumer— 1 1 — — — 5 — 7 
Total consumer— 2 1 1 — — 5 — 9 
Total loans and leases$1 $21 $24 $9 $10 $13 $53 $1 $132 


Three Months Ended March 31, 2025
Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202520242023202220212020 & PriorRevolvingTotal
Commercial
Commercial and industrial$— $7 $20 $11 $5 $6 $30 $1 $80 
Capital call lines— — — — — — — — — 
Owner occupied commercial mortgage— — — — — — — — — 
Investor dependent— 4 14 12 6 2 1 — 39 
Commercial real estate— 10 3 10 — 17 — — 40 
Total commercial— 21 37 33 11 25 31 1 159 
Consumer
Residential mortgage— — — — — — — — — 
Revolving mortgage— — — — — — — — — 
Auto— 1 1 1 — — — — 3 
Other consumer— — 1 — — — 4 — 5 
Total consumer— 1 2 1 — — 4 — 8 
Total loans and leases
$— $22 $39 $34 $11 $25 $35 $1 $167 
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, payment delays, interest rate reductions, 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 March 31, 2026
dollars in millions
Term Extension (1)
Payment DelayInterest Rate Reduction
Term Extension (1) and Interest Rate Reduction
Term Extension (1) and Payment Delay
TotalPercent of Total Loan Class
Commercial
Commercial and industrial$228 $70 $3 $1 $22 $324 0.71 %
Owner occupied commercial mortgage26 — 13 18 8 65 0.38 
Investor dependent7 37 — — — 44 1.64 
Commercial real estate8 — — 15 3 26 0.11 
Total commercial269 107 16 34 33 459 0.38 
Consumer
Residential mortgage4 — 1 — — 5 0.02 
Revolving mortgage1 — — — — 1 0.02 
Auto— — — — — — 0.01 
Other consumer— — — — — — — 
Total consumer5 — 1 — — 6 0.02 
Total loans and leases
$274 $107 $17 $34 $33 $465 0.31 %
(1) Term extensions include modifications which extended the maturity date or amortization period, and modifications that deferred lump-sum principal payments to a later date.


Amortized Cost of Loans Modified during the three months ended March 31, 2025
dollars in millions
Term Extension (1)
Payment DelayInterest Rate Reduction
Term Extension (1) and Interest Rate Reduction
Term Extension (1) and Payment Delay
TotalPercent of Total Loan Class
Commercial
Commercial and industrial$58 $17 $— $2 $20 $97 1.75 %
Owner occupied commercial mortgage12 2 — — 14 28 0.17 
Investor dependent4 21 — — — 25 0.08 
Commercial real estate37 — — — 67 104 5.14 
Total commercial111 40 — 2 101 254 0.35 
Consumer
Residential mortgage4 — — 1 3 8 0.04 
Revolving mortgage— — — — — — 0.03 
Auto— — — — — — 0.01 
Other consumer— — — — — — 0.01 
Total consumer4 — — 1 3 8 0.03 
Total loans and leases$115 $40 $— $3 $104 $262 0.19 %
(1) Term extensions include modifications which extended the maturity date or amortization period, and modifications that deferred lump-sum principal payments to a later date.
Financial Effects of Loan Modifications made during the three months ended March 31, 2026
Weighted Average Term Extension (in Months)Weighted Average Interest Rate ReductionWeighted Average Payment Delay (in Months)
Commercial
Commercial and industrial9 1.76 %9 
Owner occupied commercial mortgage8 1.75 10 
Investor dependent12 — 7 
Commercial real estate17 0.05 9 
Total commercial10 1.25 9 
Consumer
Residential mortgage11 1.63 4 
Revolving mortgage39 3.49 — 
Auto24 0.24 — 
Other consumer— 11.80 — 
Total consumer14 2.20 4 
Total loans and leases
10 1.27 %9 


Financial Effects of Loan Modifications made during the three months ended March 31, 2025
Weighted Average Term Extension (in Months)Weighted Average Interest Rate ReductionWeighted Average Payment Delay (in Months)
Commercial
Commercial and industrial17 1.65 %10 
Owner occupied commercial mortgage8 — 6 
Investor dependent12 — 5 
Commercial real estate6 — 6 
Total commercial10 1.65 7 
Consumer
Residential mortgage22 1.87 5 
Revolving mortgage60 3.21 5 
Auto20 — 4 
Other consumer— 9.97 — 
Total consumer24 2.41 5 
Total loans and leases
11 2.06 %7 

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 and are consequently addressed in our methodology to estimate the ALLL, which incorporates delinquencies, probability of obligor default, and loss given default. Therefore, a change to the ALLL is generally not recorded upon modification. An assessment of whether a borrower is experiencing financial difficulty is reassessed or performed on the date of a 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 March 31, 2026, there were $174 million of loans modified in the twelve-months ended March 31, 2026, 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 March 31, 2026)
dollars in millionsCurrent30–59 Days Past Due60–89 Days Past Due90 Days or Greater Past DueTotal
Commercial
Commercial and industrial$549 $62 $7 $32 $650 
Capital call lines— — — — — 
Owner occupied commercial mortgage76 5 — 2 83 
Investor dependent67 — 8 — 75 
Commercial real estate197 1 1 60 259 
Total commercial889 68 16 94 1,067 
Consumer
Residential mortgage33 2 1 6 42 
Revolving mortgage2 — — 1 3 
Auto— — — — — 
Other consumer4 — — — 4 
Total consumer39 2 1 7 49 
Total loans and leases
$928 $70 $17 $101 $1,116 
Modified Loans Payment Status (twelve months ended March 31, 2025)
dollars in millionsCurrent30–59 Days Past Due60–89 Days Past Due90 Days or Greater Past DueTotal
Commercial
Commercial and industrial$314 $4 $1 $5 $324 
Capital call lines— — — — — 
Owner occupied commercial mortgage61 3 1 — 65 
Investor dependent63 3 — — 66 
Commercial real estate238 9 — 23 270 
Total commercial676 19 2 28 725 
Consumer
Residential mortgage12 1 1 3 17 
Revolving mortgage8 — — — 8 
Auto— — — — — 
Other consumer— — — — — 
Total consumer20 1 1 3 25 
Total loans and leases
$696 $20 $3 $31 $750 

At March 31, 2026, there were $19 million of commitments to lend additional funds to debtors experiencing financial difficulty for which the terms of the loan were modified during the three months ended March 31, 2026. At December 31, 2025, there were $60 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, 2025.
Loans Pledged

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

Loans Pledged
dollars in millionsMarch 31, 2026December 31, 2025
FHLB of Atlanta
Lendable collateral value of pledged non-PCD loans$18,799 $19,225 
Less: advances— — 
Less: letters of credit1,450 1,450 
Available borrowing capacity$17,349 $17,775 
Pledged non-PCD loans$31,368 $31,713 
FRB
Lendable collateral value of pledged non-PCD loans$12,944 $12,962 
Less: advances— — 
Available borrowing capacity$12,944 $12,962 
Pledged non-PCD loans$13,924 $13,640 
FDIC
Lendable collateral value of pledged loans$33,756 $35,705 
Less: advances— — 
Less: principal amount of the Purchase Money Note31,000 33,500 
Available borrowing capacity (1)
$— $— 
Pledged loans (2)
$32,516 $34,465 
(1) The draw period for the Advance Facility Agreement (an expired funding agreement between FCB and the FDIC in connection with the SVBB Acquisition) ended on March 27, 2025 so there was no available borrowing capacity at March 31, 2026 or December 31, 2025.
(2) Carrying value, net of remaining discount, for loans 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 March 31, 2026 or December 31, 2025.
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 March 31, 2026 or December 31, 2025.