Leases (Notes)

12 Months Ended

Dec. 31, 2024

NOTE 13. LEASES

LESSEE

As of December 31, 2024, assets and liabilities recorded under operating leases for properties were $453 million and $527 million, respectively, and $462 million and $535 million, respectively, as of December 31, 2023. The difference between the asset and liability balance is largely driven by increases in rent over the lease term and any strategic decisions to exit a lease location early, resulting in derecognition of the asset. The asset is recorded within other assets, and the lease liability is recorded within other liabilities on the consolidated balance sheets. Lease expense, which is operating lease costs recorded within net occupancy expense, was $86 million, $85 million, and $86 million for the years ended December 31, 2024, 2023, and 2022 respectively.

Other information related to operating leases at December 31 is as follows:


	2024		2023
Weighted-average remaining lease term (years)	9.2 years		9.6 years
Weighted-average discount rate (%)	3.1	%	2.9	%

Future, undiscounted minimum lease payments on operating leases are as follows:


	December 31, 2024
	(In millions)
2025	$	96
2026	88
2027	76
2028	65
2029	52
Thereafter	242
Total lease payments	619
Less: Imputed interest	92
Total present value of lease liabilities	$	527

LESSOR

The following tables present a summary of Regions' sales-type, direct financing and leveraged leases for the years ended December 31.


	Net Interest Income
	2024		2023		2022
	(In millions)
Sales-Type and Direct Financing	$	88	$	65	$	52
Leveraged(1)	8		2		12
	$	96	$	67	$	64

_________

(1)Leveraged lease income is shown pre-tax and related tax expense is immaterial for all periods presented. Leveraged lease termination gains excluded from amounts presented above were immaterial for all periods presented.


	As of December 31, 2024
	Sales-Type and Direct Financing		Leveraged		Total
	(In millions)
Lease receivable	$	1,393	$	117	$	1,510
Unearned income	(195)		(35)		(230)
Guaranteed residual	142		—		142
Unguaranteed residual	167		101		268
Total net investment	$	1,507	$	183	$	1,690


	As of December 31, 2023
	Sales-Type and Direct Financing		Leveraged		Total
	(In millions)
Lease receivable	$	1,397	$	123	$	1,520
Unearned income	(211)		(47)		(258)
Guaranteed residual	96		—		96
Unguaranteed residual	188		118		306
Total net investment	$	1,470	$	194	$	1,664

The following table presents the minimum future payments due from customers for sales-type and direct financing leases:


	December 31, 2024
	Sales-Type and Direct Financing
	(In millions)
2025	$	348
2026	306
2027	244
2028	171
2029	105
Thereafter	219
	$	1,393