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BUSINESS COMBINATIONS (Tables) | 6 Months Ended
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Jun. 30, 2024
Business Combination, Asset Acquisition, and Joint Venture Formation [Abstract] |
Schedule of Business Acquisitions | The following table provides the final purchase price allocation, including Measurement Period Adjustments, to the identifiable assets acquired and liabilities assumed at their estimated fair values as of the SVBB Acquisition Date. Fair Value Purchase Price Allocation
dollars in millions |  |  |  |  | Fair Value Purchase Price Allocation as of March 27, 2023
Purchase price consideration |  |  |  |  |
Purchase Money Note (1) |  |  |  |  | $ | 35,808
Value Appreciation Instrument |  |  |  |  | 500
Purchase price consideration |  |  |  |  | $ | 36,308
Assets |  |  |  |  |
Cash and due from banks |  |  |  |  | $ | 1,310 |
Interest-earning deposits at banks |  |  |  |  | 34,001 |
Investment securities available for sale |  |  |  |  | 385 |
Loans and leases, net of the initial PCD ALLL |  |  |  |  | 68,468 |
Affordable housing tax credit and other unconsolidated investments |  |  |  |  | 1,273 |
Premises and equipment |  |  |  |  | 308 |
Core deposit intangibles |  |  |  |  | 230 |
Other assets |  |  |  |  | 1,564 |
Total assets acquired |  |  |  |  | $ | 107,539 |
Liabilities |  |  |  |  |
Deposits |  |  |  |  | $ | 56,014 |
Borrowings |  |  |  |  | 10 |
Deferred tax liabilities |  |  |  |  | 3,364 |
Other liabilities |  |  |  |  | 2,035 |
Total liabilities assumed |  |  |  |  | $ | 61,423 |
Fair value of net assets acquired |  |  |  |  | 46,116 |
Gain on acquisition, after income taxes (2) (3) |  |  |  |  | $ | 9,808 |
Gain on acquisition, before income taxes (2) |  |  |  |  | $ | 13,172 |
(1) The principal amount of the Purchase Money Note is the carrying value of net assets acquired of approximately $52.52 billion less the asset discount of $16.45 billion pursuant to the SVBB Purchase Agreement. The $35.81 billion above is net of a fair value discount of approximately $264 million. (2) The difference between the gain on acquisition before and after taxes reflects the deferred tax liabilities recorded in the SVBB Acquisition. (3) The $9.81 billion gain on acquisition includes Measurement Period Adjustments, whereas the $9.88 billion gain on acquisition in the Consolidated Statements of Income for the six months ended June 30, 2023, was preliminary as Measurement Period Adjustments were recorded after June 30, 2023. Loans and Leases Acquired
dollars in millions | Loans and Leases
| UPB |  | Fair Value
Non-PCD loans and leases | $ | 68,719 |  |  | $ | 66,422 |
PCD loans and leases | 2,568 |  |  | 2,046 |
Total loans and leases, before PCD gross-up | $ | 71,287 |  |  | $ | 68,468 |
The following table summarizes PCD loans and leases that BancShares acquired in the SVBB Acquisition. PCD Loans and Leases
dollars in millions | Total PCD Loans from SVBB Acquisition
UPB | $ | 2,568 |
Fair value | 2,046 |
Total fair value discount | 522 |
Less: discount for loans with $0 fair value at SVBB Acquisition Date | 26 |
Less: PCD gross-up | 220 |
Non-credit discount (1) | $ | 276 |
(1) The non-credit discount of $276 million will be accreted into income over the contractual life of the applicable loan using the effective interest method.
Schedule of Valuation of Core Deposits Intangible | The following table presents the core deposit intangible recorded related to the valuation of core deposits: Core Deposit Intangible
dollars in millions | Fair Value |  | Estimated Useful Life |  | Amortization Method
Core deposit intangible | $ | 230 |  |  | 8 years |  | Effective yield
Schedule of Other Assets Acquired and Other Liabilities Assumed | The following table details other assets acquired: Other Assets
dollars in millions | Fair Value
Accrued interest receivable | $ | 431
Federal Home Loan Bank stock and Federal Reserve Bank stock | 320
Fair value of derivative financial instruments | 458
Other | 355 |
Total other assets | $ | 1,564
The following table details other liabilities assumed:
dollars in millions | Fair Value
Commitments to fund tax credit investments | $ | 715
Fair value of derivative financial instruments | 497 |
Reserve for off-balance sheet credit exposures | 253 |
Accrued interest payable | 109 |
Other | 461 |
Total other liabilities | $ | 2,035

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- Definition Tabular disclosure of finite-lived intangible assets acquired as part of a business combination or through an asset purchase, by major class and in total, including the value of the asset acquired, any significant residual value (the expected value of the asset at the end of its useful life) and the weighted-average amortization period. + References Reference 1: http://fasb.org/us-gaap/role/ref/legacyRef -Name Accounting Standards Codification -Topic 350 -SubTopic 30 -Section 50 -Paragraph 1 -Subparagraph (a) -Publisher FASB -URI https://asc.fasb.org/1943274/2147482665/350-30-50-1 + Details
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