Unconsolidated VIEs include limited partnership interests and joint ventures. The table below provides a summary of the assets and liabilities included on the Consolidated Balance Sheets associated with unconsolidated VIEs. The maximum exposure to loss for unconsolidated VIEs is generally limited to the sum of the unconsolidated VIE investment balance and off-balance sheet funding commitments. The maximum exposure to loss represents potential losses that would be incurred under hypothetical circumstances, such that the value of BancShares’ interests and any associated collateral declines to zero and assuming no recovery. BancShares believes the possibility is remote under this hypothetical scenario; accordingly, this disclosure is not an indication of expected loss.

Refer to Note 19—Commitments and Contingencies for off-balance sheet commitments to fund other tax credit investments and other unconsolidated investments.


dollars in millions	March 31, 2026		December 31, 2025
Affordable housing tax credit investments	$	2,682	$	2,761

Other tax credit investments	28		—
Total tax credit equity investments	$	2,710	$	2,761
Other unconsolidated investments	199		194
Total unconsolidated VIE investments (1)	$	2,909	$	2,955
Liabilities for commitments to fund tax credit investments (2)	$	1,234	$	1,321

(2) Represents commitments to invest in qualified affordable housing investments. These commitments are payable on demand and included in other liabilities.

The table below summarizes the tax benefits, recognized in income tax expense on the Consolidated Statements of Income, for the affordable housing tax credit investments accounted for under the PAM.


dollars in millions	Three Months Ended March 31,
	2026		2025
Amortization of affordable housing tax credit investments (1)	$	80	$	64
Tax credits from affordable housing tax credit investments	(80)		(68)

Other tax benefits from affordable housing tax credit investments	(17)		(7)
Net income tax benefit from affordable housing tax credit investments (2)	$	(17)	$	(11)

(1) Amortization is included in depreciation, amortization, and accretion, net, in cash flows from operating activities on the Consolidated Statements of Cash Flows.

(2) The net income tax benefit is included in cash flows from operating activities on the Consolidated Statements of Cash Flows. Changes in income taxes payable are reported in net change in other liabilities in cash flows from operating activities on the Consolidated Statements of Cash Flows.

Other tax credit investments at March 31, 2026 consisted of renewable energy tax credit investments accounted for under the HLBVM. We elected the deferral method for the tax credits and deferred tax assets (“DTAs”) related to HLBVM tax credit investments.

Refer to Note 1—Significant Accounting Policies and Basis of Presentation of our 2025 Form 10-K for further discussion of the PAM, HLBVM, and deferral method.