Unconsolidated VIEs include limited partnership interests, joint ventures and a securitization trust. 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.


dollars in millions	June 30, 2026		December 31, 2025
Affordable housing tax credit investments	$	2,485	$	2,761

Other tax credit investments	28		—
Total tax credit equity investments	2,513		2,761
Other unconsolidated investments	218		194
Tax credit and other unconsolidated VIE investments (1)	2,731		2,955
Other investment securities available for sale (2)	18		—
Total unconsolidated VIE investments	$	2,749	$	2,955
Liabilities for commitments to fund tax credit investments (3)	$	1,166	$	1,321

During the second quarter of 2026, we sold $161 million of tax credit investments and recognized a pretax gain of $17 million, reflected in other noninterest income on the Consolidated Statements of Income.

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 June 30,				Six Months Ended June 30,
	2026		2025		2026		2025
Amortization of affordable housing tax credit investments (1)	$	70	$	70	$	150	$	134
Tax credits from affordable housing tax credit investments	(77)		(67)		(157)		(135)

Other tax benefits from affordable housing tax credit investments	(15)		(16)		(32)		(23)
Net income tax benefit from affordable housing tax credit investments (2)	$	(22)	$	(13)	$	(39)	$	(24)

(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 June 30, 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.

On June 29, 2026, FCB completed a securitization transaction of $363 million in amortized cost of SBA commercial loans held for sale (the “SBA Securitization”). As part of the SBA Securitization, First Citizens Securitization Depositor LLC (the “Depositor”), a consolidated subsidiary of FCB, sold the loans to a special purpose trust (the “SBA Trust”), which then issued multiple classes of asset-backed notes (the “SBA Notes”). The SBA Trust transferred the SBA Notes to the Depositor, which retained 5% of each class of SBA Notes (the “Retained SBA Notes”) and offered and sold 95% of each class of SBA Notes in a private placement under Rule 144A and Regulation S of the Securities Act of 1933.

FCB did not consolidate the SBA Trust because FCB does not have both Significant VIE Power and Significant VIE Exposure. FCB recognized a servicing asset and earns servicing and other ancillary fees for its role as servicer which includes performing remedy obligations regarding representations and warranties. BancShares recognized a gain of $3 million on the SBA Securitization, which is net of transaction costs and includes recognition of the servicing asset.