v3.26.3
LOANS AND LEASES
 9 Months Ended
Sep. 30, 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 millionsSeptember 30, 2026December 31, 2025
Commercial
Commercial and industrial$48,684 $44,721 
Capital call lines38,126 31,791 
Owner occupied commercial mortgage18,346 17,660 
Investor dependent2,582 2,778 
Commercial real estate23,038 23,784 
Total commercial130,776 120,734 
Consumer
Residential mortgage21,516 21,861 
Revolving mortgage2,853 2,863 
Auto1,224 1,416 
Other consumer821 1,056 
Total consumer26,414 27,196 
Total loans and leases$157,190 $147,930 

At September 30, 2026 and December 31, 2025, accrued interest receivable on loans included in other assets was $678 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 $50 million and $153 million for the three and nine months ended September 30, 2026, including $1 million and $3 million for unfunded commitments, respectively. Discount accretion income was $71 million and $230 million for the three and nine months ended September 30, 2025, including $6 million and $17 million for unfunded commitments, respectively.

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 millionsSeptember 30, 2026December 31, 2025
Deferred fees, including unamortized costs and unearned fees on Non-PCD loans$(100)$(103)
Net unamortized discount on acquired loans
Non-PCD$1,143$1,281
PCD2945 
Total net unamortized discount$1,172$1,326
The aging and nonaccrual status of the outstanding loans and leases by class at September 30, 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 millionsSeptember 30, 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$119 $42 $6 $167 $48,051 $48,218 $466 $48,684 
Capital call lines— — — — 38,126 38,126 — 38,126 
Owner occupied commercial mortgage70 26 17 113 18,053 18,166 180 18,346 
Investor dependent1 1 — 2 2,552 2,554 28 2,582 
Commercial real estate52 20 78 150 22,458 22,608 430 23,038 
Total commercial242 89 101 432 129,240 129,672 1,104 130,776 
Consumer
Residential mortgage100 22 1 123 21,175 21,298 218 21,516 
Revolving mortgage20 4 — 24 2,795 2,819 34 2,853 
Auto11 3 — 14 1,201 1,215 9 1,224 
Other consumer5 2 2 9 811 820 1 821 
Total consumer136 31 3 170 25,982 26,152 262 26,414 
Total loans and leases$378 $120 $104 $602 $155,222 $155,824 $1,366 $157,190 
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 $14 million for the nine months ended September 30, 2026 and $14 million for the nine months ended September 30, 2025.
(2)    Nonaccrual loans for which there was no related ALLL totaled $384 million at September 30, 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 $80 million as of September 30, 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 effected 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 September 30, 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
September 30, 2026
Risk Classification:Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202620252024202320222021 & PriorRevolvingTotal
Commercial and industrial
Pass$12,042 $9,117 $5,071 $2,452 $1,731 $2,195 $12,503 $126 $45,237 
Special Mention167 197 280 92 110 100 149 — 1,095 
Substandard238 392 341 168 323 237 289 7 1,995 
Doubtful56 27 14 20 39 29 18 — 203 
Ungraded— — — — — — 154 — 154 
Total commercial and industrial12,503 9,733 5,706 2,732 2,203 2,561 13,113 133 48,684 
Capital call lines
Pass— — — — — — 38,108 18 38,126 
Total capital call lines— — — — — — 38,108 18 38,126 
Owner occupied commercial mortgage
Pass2,339 2,659 2,533 1,911 2,242 5,392 281 28 17,385 
Special Mention20 25 32 35 104 55 3 — 274 
Substandard25 58 95 132 129 226 11 1 677 
Doubtful— — — 8 — 2 — — 10 
Total owner occupied commercial mortgage2,384 2,742 2,660 2,086 2,475 5,675 295 29 18,346 
Investor dependent
Pass682 719 246 29 46 — 280 — 2,002 
Special Mention20 84 44 2 — — 22 — 172 
Substandard26 138 129 34 — — 54 — 381 
Doubtful7 9 4 5 — — 2 — 27 
Total Investor dependent735 950 423 70 46 — 358 — 2,582 
Commercial real estate
Pass3,685 4,110 4,134 2,947 2,343 3,391 920 — 21,530 
Special Mention91 146 4 72 60 12 — — 385 
Substandard363 309 38 148 90 129 1 — 1,078 
Doubtful3 4 — 8 17 13 — — 45 
Total commercial real estate4,142 4,569 4,176 3,175 2,510 3,545 921 — 23,038 
Total commercial
Pass18,748 16,605 11,984 7,339 6,362 10,978 52,092 172 124,280 
Special Mention298 452 360 201 274 167 174 — 1,926 
Substandard652 897 603 482 542 592 355 8 4,131 
Doubtful66 40 18 41 56 44 20 — 285 
Ungraded— — — — — — 154 — 154 
Total commercial$19,764 $17,994 $12,965 $8,063 $7,234 $11,781 $52,795 $180 $130,776 
Consumer Loans - Delinquency Status by Class
September 30, 2026
Days Past Due:Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202620252024202320222021 & PriorRevolvingTotal
Residential mortgage
Current$1,444 $1,495 $1,500 $2,220 $4,495 $10,066 $7 $— $21,227 
30-59 days2 5 4 18 17 74 — — 120 
60-89 days1 — 2 1 6 30 — — 40 
90 days or greater— 5 5 13 20 86 — — 129 
Total residential mortgage1,447 1,505 1,511 2,252 4,538 10,256 7 — 21,516 
Revolving mortgage
Current— — — — — — 2,654 150 2,804 
30-59 days— — — — — — 13 10 23 
60-89 days— — — — — — — 7 7 
90 days or greater— — — — — — 3 16 19 
Total revolving mortgage— — — — — — 2,670 183 2,853 
Auto
Current291 352 279 139 94 50 — — 1,205 
30-59 days1 3 4 2 2 1 — — 13 
60-89 days— 1 1 1 1 — — — 4 
90 days or greater— — 1 1 — — — — 2 
Total consumer auto292 356 285 143 97 51 — — 1,224 
Other consumer
Current131 101 57 33 23 12 455 — 812 
30-59 days— 1 — — — — 4 — 5 
60-89 days— — — — — — 2 — 2 
90 days or greater— — — — — — 2 — 2 
Total consumer other131 102 57 33 23 12 463 — 821 
Total consumer$1,870 $1,963 $1,853 $2,428 $4,658 $10,319 $3,140 $183 $26,414 
 
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:

Nine Months Ended September 30, 2026
Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202620252024202320222021 & PriorRevolvingTotal
Commercial
Commercial and industrial$12 $25 $36 $20 $41 $16 $91 $1 $242 
Capital call lines— — — — — — — — — 
Owner occupied commercial mortgage— 1 4 — — — — — 5 
Investor dependent— 17 11 8 9 2 3 — 50 
Commercial real estate20 19 21 — — 15 — — 75 
Total commercial32 62 72 28 50 33 94 1 372 
Consumer
Residential mortgage— — — — — 1 — — 1 
Revolving mortgage— — — — — — — 1 1 
Auto— 2 2 1 1 — — — 6 
Other consumer— 2 1 1 — — 13 — 17 
Total consumer— 4 3 2 1 1 13 1 25 
Total loans and leases$32 $66 $75 $30 $51 $34 $107 $2 $397 


Nine Months Ended September 30, 2025
Term Loans by Origination YearRevolving Converted to Term Loans
dollars in millions202520242023202220212020 & PriorRevolvingTotal
Commercial
Commercial and industrial$30 $23 $54 $47 $10 $6 $191 $1 $362 
Capital call lines— — — — — — — — — 
Owner occupied commercial mortgage— 2 — — — 1 — — 3 
Investor dependent— 14 30 28 7 4 9 — 92 
Commercial real estate4 23 3 21 — 32 — — 83 
Total commercial34 62 87 96 17 43 200 1 540 
Consumer
Residential mortgage— — — — — 6 — — 6 
Revolving mortgage— — — — — — — — — 
Auto— 2 2 1 1 — — — 6 
Other consumer— 1 1 1 — — 12 — 15 
Total consumer— 3 3 2 1 6 12 — 27 
Total loans and leases
$34 $65 $90 $98 $18 $49 $212 $1 $567 
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 September 30, 2026
dollars in millions
Term Extension (1)
Payment DelayInterest Rate Reduction
Term Extension (1) and Interest Rate Reduction
Term Extension (1) and Payment Delay
Other Combinations (2)
TotalPercent of Total Loan Class
Commercial
Commercial and industrial$49 $21 $— $2 $19 $1 $92 0.19 %
Owner occupied commercial mortgage12 — — 3 1 — 16 0.09 
Investor dependent7 12 — — — — 19 0.72 
Commercial real estate84 — — — 32 21 137 0.59 
Total commercial152 33 — 5 52 22 264 0.20 
Consumer
Residential mortgage2 1 2 1 — — 6 0.03 
Total consumer2 1 2 1 — — 6 0.03 
Total loans and leases
$154 $34 $2 $6 $52 $22 $270 0.17 %
(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.
(2) Consists of $21 million of commercial real estate loans modified with a payment delay and interest rate reduction, as well as $1 million of commercial and industrial loans modified with a term extension, interest rate reduction, and payment delay.

Amortized Cost of Loans Modified during the three months ended September 30, 2025
dollars in millions
Term Extension (1)
Payment DelayInterest Rate Reduction
Term Extension (1) and Interest Rate Reduction
Term Extension (1) and Payment Delay
Other Combinations (2)
TotalPercent of Total Loan Class
Commercial
Commercial and industrial$233 $48 $— $14 $4 $1 $300 0.67 %
Owner occupied commercial mortgage8 3 — — — — 11 0.07 
Investor dependent9 40 — — 4 — 53 1.92 
Commercial real estate69 9 — 45 7 — 130 0.56 
Total commercial319 100 — 59 15 1 494 0.42 
Consumer
Residential mortgage7 — 1 — 2 — 10 0.04 
Total consumer7 — 1 — 2 — 10 0.04 
Total loans and leases
$326 $100 $1 $59 $17 $1 $504 0.35 %
(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.
(2) Consists of $1 million of commercial and industrial loans modified with a term extension, payment delay, and interest rate reduction.
Financial Effects of Loan Modifications made during the three months ended September 30, 2026
Weighted Average Term Extension (in Months)Weighted Average Interest Rate ReductionWeighted Average Payment Delay (in Months)
Commercial
Commercial and industrial14 2.85 %20 
Owner occupied commercial mortgage13 0.23 3 
Investor dependent12 — 9 
Commercial real estate10 0.71 10 
Total commercial12 0.84 14 
Consumer
Residential mortgage19 2.36 3 
Revolving mortgage34 2.34 — 
Auto22 — — 
Other consumer— 7.43 — 
Total consumer21 2.44 3 
Total loans and leases12 1.04 %13 



Financial Effects of Loan Modifications made during the three months ended September 30, 2025
Weighted Average Term Extension (in Months)Weighted Average Interest Rate ReductionWeighted Average Payment Delay (in Months)
Commercial
Commercial and industrial15 1.05 %12 
Owner occupied commercial mortgage13 — 6 
Investor dependent11 — 6 
Commercial real estate9 0.52 23 
Total commercial13 0.65 11 
Consumer
Residential mortgage21 1.52 8 
Revolving mortgage58 4.36 — 
Auto18 — — 
Other consumer60 11.41 — 
Total consumer24 3.01 8 
Total loans and leases13 0.71 %11 

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.
Amortized Cost of Loans Modified during the nine months ended September 30, 2026
dollars in millions
Term Extension (1)
Payment DelayInterest Rate Reduction
Term Extension (1) and Interest Rate Reduction
Term Extension (1) and Payment Delay
Other Combinations (2)
TotalPercent of Total Loan Class
Commercial
Commercial and industrial$253 $25 $— $3 $44 $18 $343 0.70 %
Owner occupied commercial mortgage30 3 — 21 4 2 60 0.32 
Investor dependent12 41 — — — — 53 2.05 
Commercial real estate145 — 113 3 32 27 320 1.39 
Total commercial440 69 113 27 80 47 776 0.59 
Consumer
Residential mortgage6 1 3 1 — — 11 0.05 
Revolving mortgage1 — 1 — — — 2 0.06 
Total consumer7 1 4 1 — — 13 0.05 
Total loans and leases
$447 $70 $117 $28 $80 $47 $789 0.50 %
(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.
(2) Consists of $21 million of commercial real estate loans and $2 million of owner occupied commercial mortgage loans modified with a payment delay and interest rate reduction, as well as $18 million of commercial and industrial loans and $6 million of commercial real estate loans modified with a term extension, interest rate reduction, and payment delay.

Amortized Cost of Loans Modified during the nine months ended September 30, 2025
dollars in millions
Term Extension (1)
Payment DelayInterest Rate Reduction
Term Extension (1) and Interest Rate Reduction
Term Extension (1) and Payment Delay
Other Combinations (2)
TotalPercent of Total Loan Class
Commercial
Commercial and industrial$264 $124 $— $16 $9 $6 $419 0.93 %
Owner occupied commercial mortgage11 5 — 29 22 — 67 0.39 
Investor dependent15 59 — — 10 — 84 3.04 
Commercial real estate131 9 — 109 42 — 291 1.25 
Total commercial421 197 — 154 83 6 861 0.74 
Consumer
Residential mortgage15 — 1 2 25 — 43 0.18 
Revolving mortgage1 — — 1 — — 2 0.07 
Total consumer16 — 1 3 25 — 45 0.16 
Total loans and leases$437 $197 $1 $157 $108 $6 $906 0.63 %
(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.
(2) Consists of $6 million of commercial and industrial loans modified with a term extension, payment delay, and interest rate reduction.
Financial Effects of Loan Modifications made during the nine months ended September 30, 2026
Weighted Average Term Extension (in Months)Weighted Average Interest Rate ReductionWeighted Average Payment Delay (in Months)
Commercial
Commercial and industrial20 0.88 %13 
Owner occupied commercial mortgage10 1.72 6 
Investor dependent9 — 7 
Commercial real estate9 1.36 10 
Total commercial15 1.35 10 
Consumer
Residential mortgage18 2.23 3 
Revolving mortgage47 2.68 — 
Auto24 0.47 — 
Other consumer— 8.70 — 
Total consumer23 2.45 3 
Total loans and leases
15 1.38 %10 


Financial Effects of Loan Modifications made during the nine months ended September 30, 2025
Weighted Average Term Extension (in Months)Weighted Average Interest Rate ReductionWeighted Average Payment Delay (in Months)
Commercial
Commercial and industrial15 1.31 %12 
Owner occupied commercial mortgage11 1.93 5 
Investor dependent9 — 7 
Commercial real estate16 0.56 11 
Total commercial15 0.91 10 
Consumer
Residential mortgage14 1.21 6 
Revolving mortgage48 4.04 5 
Auto19 — — 
Other consumer60 9.93 — 
Total consumer16 2.39 6 
Total loans and leases
15 0.95 %10 

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 September 30, 2026, there were $164 million of loans modified in the twelve months ended September 30, 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 September 30, 2026)
dollars in millionsCurrent30–59 Days Past Due60–89 Days Past Due90 Days or Greater Past DueTotal
Commercial
Commercial and industrial$434 $1 $15 $19 $469 
Capital call lines— — — — — 
Owner occupied commercial mortgage63 5 5 6 79 
Investor dependent61 — — — 61 
Commercial real estate273 11 — 92 376 
Total commercial831 17 20 117 985 
Consumer
Residential mortgage10 2 5 2 19 
Revolving mortgage2 — — — 2 
Auto— — — — — 
Other consumer3 — — — 3 
Total consumer15 2 5 2 24 
Total loans and leases
$846 $19 $25 $119 $1,009 
Modified Loans Payment Status (twelve months ended September 30, 2025)
dollars in millionsCurrent30–59 Days Past Due60–89 Days Past Due90 Days or Greater Past DueTotal
Commercial
Commercial and industrial$396 $2 $1 $24 $423 
Capital call lines— — — — — 
Owner occupied commercial mortgage74 1 — 9 84 
Investor dependent90 — — 1 91 
Commercial real estate271 5 1 60 337 
Total commercial831 8 2 94 935 
Consumer
Residential mortgage35 3 3 6 47 
Revolving mortgage7 — — — 7 
Auto— — — — — 
Other consumer— — — — — 
Total consumer42 3 3 6 54 
Total loans and leases
$873 $11 $5 $100 $989 

At September 30, 2026, there were $22 million of commitments to lend additional funds to debtors experiencing financial difficulty for which the terms of the loan were modified during the nine months ended September 30, 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 FRB, and loans pledged as collateral for the Purchase Money Note to the FDIC.

Loans Pledged
dollars in millionsSeptember 30, 2026December 31, 2025
FHLB of Atlanta
Lendable collateral value of pledged Non-PCD loans$19,323 $19,225 
Less: advances— — 
Less: letters of credit1,450 1,450 
Available borrowing capacity$17,873 $17,775 
Pledged Non-PCD loans$32,329 $31,713 
FRB
Lendable collateral value of pledged Non-PCD loans$13,227 $12,962 
Less: advances— — 
Available borrowing capacity$13,227 $12,962 
Pledged Non-PCD loans$13,862 $13,640 
FDIC
Lendable collateral value of pledged loans$31,708 $35,705 
Less: advances— — 
Less: principal amount of the Purchase Money Note20,500 33,500 
Available borrowing capacity (1)
$— $— 
Pledged loans (2)
$30,588 $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 September 30, 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 September 30, 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 September 30, 2026 or December 31, 2025.