XML 25 R14.htm IDEA: XBRL DOCUMENT
v3.25.1

LEASES | 3 Months Ended
--- | ---
Mar. 31, 2025
Leases [Abstract] |
LEASES | NOTE 6 — LEASES Lessee BancShares’ leases primarily include administrative offices and bank locations. Substantially all of our lease liabilities relate to United States real estate leases under operating lease arrangements. Our real estate leases have remaining lease terms of up to 33 years. Our lease terms may include options to extend or terminate the lease, and our operating leases have renewal terms that can extend from 1 to 25 years. The options are included in the lease term when it is determined that it is reasonably certain the option will be exercised. The following table presents supplemental balance sheet information and remaining weighted average lease terms and discount rates: Supplemental Lease Information
dollars in millions | Classification |  | March 31, 2025 |  | December 31, 2024
Lease assets: |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 300 |  |  | $ | 316 |
Finance leases | Premises and equipment |  | 35 |  |  | 15 |
Total lease assets |  |  | $ | 335 |  |  | $ | 331 |
Lease liabilities: |  |  |  |  |
Operating leases | Other liabilities |  | $ | 340 |  |  | $ | 357 |
Finance leases | Other borrowings |  | 36 |  |  | 15 |
Total lease liabilities |  |  | $ | 376 |  |  | $ | 372 |
Weighted-average remaining lease terms: |  |  |  |  |
Operating leases |  |  | 7.3 years |  | 7.4 years
Finance leases |  |  | 8.9 years |  | 11.7 years
Weighted-average discount rate: |  |  |  |  |
Operating leases |  |  | 2.94 | % |  | 2.94 | %
Finance leases |  |  | 4.31 |  |  | 3.96 |
As of March 31, 2025, there were no leases that have not yet commenced that would have a material impact on BancShares’ consolidated financial statements. The following table presents components of lease cost: Components of Net Lease Cost
dollars in millions |  |  | Three Months Ended March 31, |  |
| Classification |  | 2025 |  | 2024 |  |  |  |  |  |
Operating lease cost | Occupancy expense |  | $ | 18 |  |  | $ | 18 |  |  |  |  |  |  |
Finance lease ROU asset amortization | Equipment expense |  | 1 |  |  | 1 |  |  |  |  |  |  |
Variable lease cost (1) | Occupancy expense |  | 7 |  |  | 9 |  |  |  |  |  |  |
Sublease income | Occupancy expense |  | (2) |  |  | (1) |  |  |  |  |  |  |
Net lease cost (1) |  |  | $ | 24 |  |  | $ | 27 |  |  |  |  |  |  |
(1) Includes short-term lease cost. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term. For finance leases, the right of use (“ROU”) asset is amortized straight-line over the lease term as equipment expense and interest on the lease liability is recognized separately; however, interest on the lease liability was less than $1 million per year and is therefore not presented in the table above. Variable lease cost includes common area maintenance, property taxes, utilities, and other operating expenses related to leased premises recognized in the period in which the expense was incurred. Certain of our lease agreements also include rental payments adjusted periodically for inflation. While lease liabilities are not remeasured because of these changes, these adjustments are treated as variable lease costs and recognized in the period in which the expense is incurred. Sublease income results from leasing excess building space that BancShares is no longer utilizing under operating leases, which have remaining lease terms of up to 12 years. The following table presents supplemental cash flow information related to leases: Supplemental Cash Flow Information
dollars in millions | Three Months Ended March 31,
| 2025 |  | 2024 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 19 |  |  | $ | 18 |  |  |
Financing cash flows from finance leases | 1 |  |  | — |  |  |
ROU assets obtained in exchange for new operating lease liabilities | 3 |  |  | 17 |  |  |
ROU assets obtained in exchange for new finance lease liabilities | 22 |  |  | — |  |  |
Lessor BancShares leases equipment to commercial end-users under operating lease and finance lease arrangements. The majority of operating lease equipment is long-lived rail equipment, which is typically leased several times over its life. We also lease technology and office equipment, and large and small industrial, medical, and transportation equipment under both operating leases and finance leases. Our Rail operating leases typically do not include purchase options. Many of our finance leases, and other equipment operating leases, offer the lessee the option to purchase the equipment at fair market value or for a nominal fixed purchase option. Many of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond the initial contractual term. Our leases typically do not include early termination options. Continued rent payments are due if leased equipment is not returned at the end of the lease. The table that follows presents lease income related to BancShares’ operating and finance leases: Lease Income
dollars in millions | Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |  |  |
Lease income – operating leases | $ | 254 |  |  | $ | 237 |  |  |  |  |  |  |
Variable lease income – operating leases (1) | 16 |  |  | 18 |  |  |  |  |  |  |
Rental income on operating leases | 270 |  |  | 255 |  |  |  |  |  |  |
Interest income – sales type and direct financing leases | 43 |  |  | 43 |  |  |  |  |  |  |
Variable lease income included in other noninterest income (2) | 14 |  |  | 16 |  |  |  |  |  |  |
Interest income – leveraged leases | 1 |  |  | 1 |  |  |  |  |  |  |
Total lease income | $ | 328 |  |  | $ | 315 |  |  |  |  |  |  |
(1) Primarily includes per diem railcar operating lease rental income earned on a time or mileage usage basis. (2) Includes revenue related to insurance coverage on leased equipment and leased equipment property tax reimbursements due from customers.
LEASES | NOTE 6 — LEASES Lessee BancShares’ leases primarily include administrative offices and bank locations. Substantially all of our lease liabilities relate to United States real estate leases under operating lease arrangements. Our real estate leases have remaining lease terms of up to 33 years. Our lease terms may include options to extend or terminate the lease, and our operating leases have renewal terms that can extend from 1 to 25 years. The options are included in the lease term when it is determined that it is reasonably certain the option will be exercised. The following table presents supplemental balance sheet information and remaining weighted average lease terms and discount rates: Supplemental Lease Information
dollars in millions | Classification |  | March 31, 2025 |  | December 31, 2024
Lease assets: |  |  |  |  |
Operating lease ROU assets | Other assets |  | $ | 300 |  |  | $ | 316 |
Finance leases | Premises and equipment |  | 35 |  |  | 15 |
Total lease assets |  |  | $ | 335 |  |  | $ | 331 |
Lease liabilities: |  |  |  |  |
Operating leases | Other liabilities |  | $ | 340 |  |  | $ | 357 |
Finance leases | Other borrowings |  | 36 |  |  | 15 |
Total lease liabilities |  |  | $ | 376 |  |  | $ | 372 |
Weighted-average remaining lease terms: |  |  |  |  |
Operating leases |  |  | 7.3 years |  | 7.4 years
Finance leases |  |  | 8.9 years |  | 11.7 years
Weighted-average discount rate: |  |  |  |  |
Operating leases |  |  | 2.94 | % |  | 2.94 | %
Finance leases |  |  | 4.31 |  |  | 3.96 |
As of March 31, 2025, there were no leases that have not yet commenced that would have a material impact on BancShares’ consolidated financial statements. The following table presents components of lease cost: Components of Net Lease Cost
dollars in millions |  |  | Three Months Ended March 31, |  |
| Classification |  | 2025 |  | 2024 |  |  |  |  |  |
Operating lease cost | Occupancy expense |  | $ | 18 |  |  | $ | 18 |  |  |  |  |  |  |
Finance lease ROU asset amortization | Equipment expense |  | 1 |  |  | 1 |  |  |  |  |  |  |
Variable lease cost (1) | Occupancy expense |  | 7 |  |  | 9 |  |  |  |  |  |  |
Sublease income | Occupancy expense |  | (2) |  |  | (1) |  |  |  |  |  |  |
Net lease cost (1) |  |  | $ | 24 |  |  | $ | 27 |  |  |  |  |  |  |
(1) Includes short-term lease cost. Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term. For finance leases, the right of use (“ROU”) asset is amortized straight-line over the lease term as equipment expense and interest on the lease liability is recognized separately; however, interest on the lease liability was less than $1 million per year and is therefore not presented in the table above. Variable lease cost includes common area maintenance, property taxes, utilities, and other operating expenses related to leased premises recognized in the period in which the expense was incurred. Certain of our lease agreements also include rental payments adjusted periodically for inflation. While lease liabilities are not remeasured because of these changes, these adjustments are treated as variable lease costs and recognized in the period in which the expense is incurred. Sublease income results from leasing excess building space that BancShares is no longer utilizing under operating leases, which have remaining lease terms of up to 12 years. The following table presents supplemental cash flow information related to leases: Supplemental Cash Flow Information
dollars in millions | Three Months Ended March 31,
| 2025 |  | 2024 |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 19 |  |  | $ | 18 |  |  |
Financing cash flows from finance leases | 1 |  |  | — |  |  |
ROU assets obtained in exchange for new operating lease liabilities | 3 |  |  | 17 |  |  |
ROU assets obtained in exchange for new finance lease liabilities | 22 |  |  | — |  |  |
Lessor BancShares leases equipment to commercial end-users under operating lease and finance lease arrangements. The majority of operating lease equipment is long-lived rail equipment, which is typically leased several times over its life. We also lease technology and office equipment, and large and small industrial, medical, and transportation equipment under both operating leases and finance leases. Our Rail operating leases typically do not include purchase options. Many of our finance leases, and other equipment operating leases, offer the lessee the option to purchase the equipment at fair market value or for a nominal fixed purchase option. Many of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond the initial contractual term. Our leases typically do not include early termination options. Continued rent payments are due if leased equipment is not returned at the end of the lease. The table that follows presents lease income related to BancShares’ operating and finance leases: Lease Income
dollars in millions | Three Months Ended March 31, |  |
| 2025 |  | 2024 |  |  |  |  |  |
Lease income – operating leases | $ | 254 |  |  | $ | 237 |  |  |  |  |  |  |
Variable lease income – operating leases (1) | 16 |  |  | 18 |  |  |  |  |  |  |
Rental income on operating leases | 270 |  |  | 255 |  |  |  |  |  |  |
Interest income – sales type and direct financing leases | 43 |  |  | 43 |  |  |  |  |  |  |
Variable lease income included in other noninterest income (2) | 14 |  |  | 16 |  |  |  |  |  |  |
Interest income – leveraged leases | 1 |  |  | 1 |  |  |  |  |  |  |
Total lease income | $ | 328 |  |  | $ | 315 |  |  |  |  |  |  |
(1) Primarily includes per diem railcar operating lease rental income earned on a time or mileage usage basis. (2) Includes revenue related to insurance coverage on leased equipment and leased equipment property tax reimbursements due from customers.

X
- References No definition available. + Details
Name: | us-gaap_LeasesAbstract
Namespace Prefix: | us-gaap_
Data Type: | xbrli:stringItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for finance leases of lessee. Includes, but is not limited to, description of lessee's finance lease and maturity analysis of finance lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeFinanceLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration

X
- Definition The entire disclosure for operating leases of lessee. Includes, but is not limited to, description of operating lease and maturity analysis of operating lease liability. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 20 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-20/tableOfContent + Details
Name: | us-gaap_LesseeOperatingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration