v3.26.3
BORROWINGS
 9 Months Ended
Sep. 30, 2026
Debt Disclosure [Abstract]  
BORROWINGS
NOTE 10 — BORROWINGS

Short-term Borrowings
Securities Sold under Agreements to Repurchase
BancShares held $116 million and $224 million at September 30, 2026 and December 31, 2025, respectively, of securities sold under agreements to repurchase that have overnight contractual maturities and are collateralized by government agency securities. The weighted average interest rate for securities sold under agreements to repurchase was 0.48% and 0.41% at September 30, 2026 and December 31, 2025, respectively.

BancShares utilizes securities sold under agreements to repurchase to facilitate the needs for collateralization of commercial customers and secure wholesale funding needs. Repurchase agreements are transactions whereby BancShares offers to sell to a counterparty an undivided interest in an eligible security at an agreed upon purchase price, and which obligates BancShares to repurchase the security at an agreed upon date, repurchase price and interest rate. These agreements are recorded at the amount of cash received in connection with the transactions and are reflected as securities sold under customer repurchase agreements.

BancShares monitors collateral levels on a continuous basis and maintains records of each transaction specifically describing the applicable security and the counterparty’s fractional interest in that security. BancShares segregates the security from general assets in accordance with regulations governing custodial holdings of securities. The primary risk with repurchase agreements is market risk associated with the investments securing the transactions, as additional collateral may be required based on fair value changes of the underlying investments. Securities pledged as collateral under repurchase agreements are maintained with safekeeping agents. The carrying value of investment securities pledged as collateral under repurchase agreements was $155 million and $230 million at September 30, 2026 and December 31, 2025, respectively.

Long-term Borrowings
On June 24, 2026, FCB issued and sold $750 million aggregate principal amount of its 5.097% Fixed-to-Floating Rate Senior Notes due in 2029, then on August 3, 2026, issued and sold an additional $400 million aggregate principal amount of the same series. On March 3, 2026, the Parent Company issued and sold $500 million aggregate principal amount of its 4.869% Fixed-to-Floating Rate Senior Notes due in 2032.

During the nine months ended September 30, 2026, FCB made prepayments of $13.00 billion on the Purchase Money Note and recognized a loss on extinguishment of debt of $34 million. In October 2026, we made an additional prepayment of $1.50 billion.
The following table presents long-term borrowings as of September 30, 2026 and December 31, 2025, net of the respective unamortized purchase accounting adjustments, issuance costs, and impacts of fair value hedges:

Long-term Borrowings
dollars in millionsInterest RateIssuance DateMaturityRate Reset DateInterest Rate After ResetSeptember 30,
2026		December 31,
2025
Parent Company:
Senior unsecured:
Fixed-to-Floating Senior Notes (1)
5.231 %March 12, 2025March 2031March 12, 2030
Compounded SOFR + 141 bps
$479 $497 
Fixed-to-Floating Senior Notes (1)
4.869 %March 3, 2026March 2032March 3, 2031
Compounded SOFR + 148.7 bps
474 — 
Subordinated:
Fixed Rate Reset Subordinated Notes (1)
5.600 %September 5, 2025September 2035September 5, 2030
Five-year U.S. Treasury Rate + 185 bps
571 597 
Fixed-to-Fixed Subordinated Notes (1)
6.254 %March 12, 2025March 2040March 12, 2035
Five-year U.S. Treasury Rate + 197 bps
689 745 
Subsidiaries:
Senior unsecured:
Fixed-to-Floating Senior Notes (1) (2)
5.097 %June 24, 2026July 2029July 13, 2028
Compounded SOFR + 114.6 bps
1,130 — 
Fixed Senior Notes 6.000 %March 27, 2006April 2036——57 58 
Subordinated:
Fixed Subordinated Notes6.125 %March 9, 2018March 2028——420 430 
Secured:
Purchase Money Note to FDIC (fixed rate) (3)
3.500 %March 27, 2023March 2028——20,453 33,385 
Capital lease obligations——Maturities through May 2057——81 72 
Total long-term borrowings$24,354 $35,784 
(1) Borrowings that are the hedged item in a fair value hedge as discussed in Note 11—Derivative Financial Instruments.
(2) Includes an original issuance on June 24, 2026 and an additional issuance on August 3, 2026.
(3) Issued in connection with the SVBB Acquisition. The unamortized discount was $47 million and $115 million at September 30, 2026 and December 31, 2025, respectively. Refer to Note 5—Loans and Leases for further information on loans pledged as collateral to secure borrowings.

Pledged Assets
Refer to the “Loans Pledged” section in Note 5—Loans and Leases for information on loans pledged as collateral to secure borrowings. Additionally, interest-earning deposits at banks included $163 million and $212 million at September 30, 2026 and December 31, 2025, respectively, that were required minimum deposits under the Purchase Money Note.