XML 81 R17.htm IDEA: XBRL DOCUMENT
v3.25.0.1

Leases, Premises and Equipment | 12 Months Ended
--- | ---
Dec. 31, 2024
Leases [Abstract] |
Leases, Premises and Equipment | Leases, Premises and Equipment Lessor Arrangements The Company provides equipment leases through a subsidiary, mainly to large, investment-grade corporate clients. These qualify as direct financing leases which are recorded based upon the lease payments, estimated residual values and direct costs, excluding unearned income and uses the implicit interest rate to determine the value. Lease terms typically range from 24 to 120 months. The Company bases residual value estimates on asset life, market value, and lessee behavior using industry data and third-party appraisals. At the end, the lessee can return, renew, or purchase the equipment at its fair market value. Impairment of residual values occurs if the fair value is less than the carrying amount. The Company reviews its direct financing leases for impairment annually. We utilize residual value insurance for certain of our direct finance leases which, as of December 31, 2024 and 2023, insured residual assets were in place of $262 million and $280 million of our leased assets, respectively. Interest income on lease financing recorded over the lease term and is recorded in interest income on the Consolidated Statements of (Loss) Income. Interest income of direct finance leases was $136 million, $119 million and $53 million for the years ended December 31, 2024, 2023, and 2022, respectively. The components of our gross investment in direct financing leases are shown below:
| Year Ended December 31,
(in millions) | 2024 |  | 2023
Direct financing lease - lease payments receivable | $ | 2,039 |  |  | $ | 3,187 |
Direct financing lease - unguaranteed residual assets | 285 |  |  | 321 |
Total lease payments | $ | 2,324 |  |  | $ | 3,508 |
The following table presents the remaining maturity analysis of the undiscounted lease receivables, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:
(in millions) | December 31, 2024
2025 | $ | 471 |
2026 | 530 |
2027 | 412 |
2028 | 270 |
2029 | 253 |
Thereafter | 388 |
Total lease payments | $ | 2,324 |
Plus: deferred origination costs | 9 |
Less: unearned income | (169) |
Less: purchase accounting adjustment | (48) |
Total lease finance receivables, net | $ | 2,116 |
Lessee Arrangements The Company has operating leases for offices, branches, equipment and other items, generally with terms of 20 years or less. Many of our leases contain options to extend or terminate early and we consider these options when evaluating the lease term to determine if they are reasonably certain to be exercised based on all relevant economic and financial factors. At lease inception, lease liabilities are recognized in other liabilities based on the present value of remaining lease payments, discounted using the Company's incremental borrowing rate if no implicit rate in the lease is available. Right-of-use assets, recognized in other assets, represent the Company’s right to use an underlying asset for the lease term and are initially equal to the lease liability, adjusted for any payments made prior to lease commencement and any lease incentives. Variable costs such as the proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease costs were $75 million, $86 million, and $28 million for the years ended December 31, 2024, 2023, and 2022, respectively. Supplemental balance sheet information related to the Company’s operating lease arrangements is presented below for the following periods:
| Year Ended December 31,
(in millions, except lease term and discount rate) | 2024 |  | 2023
Operating Leases: |  |  |
Operating lease right-of-use assets | $ | 416 |  |  | $ | 426 |
Operating lease liabilities | $ | 463 |  |  | $ | 446 |
Weighted average remaining lease term | 10.7 years |  | 11.2 years
Weighted average discount rate % | 4.77 | % |  | 4.71 | %
Supplemental cash flow information related to the leases for the following periods:
| Year Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 71 |  |  | $ | 64 |  |  | $ | 28 |
(in millions) | December 31, 2024
Maturities of lease liabilities: |
2025 | $ | 70 |
2026 | 67 |
2027 | 60 |
2028 | 54 |
2029 | 48 |
Thereafter | 302 |
Total lease payments | $ | 601 |
Less: imputed interest | $ | (138) |
Total present value of lease liabilities | $ | 463 |
Premises and Equipment Depreciation is included in occupancy and equipment in the Consolidated Statements of (Loss) Income and amounted to $48 million, $39 million, and $18 million, in the years ended December 31, 2024, 2023, and 2022, respectively. Accumulated depreciation as of December 31, 2024 and December 31, 2023 was $569 million and $526 million, respectively. The estimated useful lives for the principal classes of assets are as follows:
Premises and Equipment |  | Useful Lives
Buildings |  | 30
Furniture, fixtures and equipment, and building improvements |  | 13.5
Leasehold improvements |  | 10
ATMs |  | 7
Leases, Premises and Equipment | Leases, Premises and Equipment Lessor Arrangements The Company provides equipment leases through a subsidiary, mainly to large, investment-grade corporate clients. These qualify as direct financing leases which are recorded based upon the lease payments, estimated residual values and direct costs, excluding unearned income and uses the implicit interest rate to determine the value. Lease terms typically range from 24 to 120 months. The Company bases residual value estimates on asset life, market value, and lessee behavior using industry data and third-party appraisals. At the end, the lessee can return, renew, or purchase the equipment at its fair market value. Impairment of residual values occurs if the fair value is less than the carrying amount. The Company reviews its direct financing leases for impairment annually. We utilize residual value insurance for certain of our direct finance leases which, as of December 31, 2024 and 2023, insured residual assets were in place of $262 million and $280 million of our leased assets, respectively. Interest income on lease financing recorded over the lease term and is recorded in interest income on the Consolidated Statements of (Loss) Income. Interest income of direct finance leases was $136 million, $119 million and $53 million for the years ended December 31, 2024, 2023, and 2022, respectively. The components of our gross investment in direct financing leases are shown below:
| Year Ended December 31,
(in millions) | 2024 |  | 2023
Direct financing lease - lease payments receivable | $ | 2,039 |  |  | $ | 3,187 |
Direct financing lease - unguaranteed residual assets | 285 |  |  | 321 |
Total lease payments | $ | 2,324 |  |  | $ | 3,508 |
The following table presents the remaining maturity analysis of the undiscounted lease receivables, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:
(in millions) | December 31, 2024
2025 | $ | 471 |
2026 | 530 |
2027 | 412 |
2028 | 270 |
2029 | 253 |
Thereafter | 388 |
Total lease payments | $ | 2,324 |
Plus: deferred origination costs | 9 |
Less: unearned income | (169) |
Less: purchase accounting adjustment | (48) |
Total lease finance receivables, net | $ | 2,116 |
Lessee Arrangements The Company has operating leases for offices, branches, equipment and other items, generally with terms of 20 years or less. Many of our leases contain options to extend or terminate early and we consider these options when evaluating the lease term to determine if they are reasonably certain to be exercised based on all relevant economic and financial factors. At lease inception, lease liabilities are recognized in other liabilities based on the present value of remaining lease payments, discounted using the Company's incremental borrowing rate if no implicit rate in the lease is available. Right-of-use assets, recognized in other assets, represent the Company’s right to use an underlying asset for the lease term and are initially equal to the lease liability, adjusted for any payments made prior to lease commencement and any lease incentives. Variable costs such as the proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease costs were $75 million, $86 million, and $28 million for the years ended December 31, 2024, 2023, and 2022, respectively. Supplemental balance sheet information related to the Company’s operating lease arrangements is presented below for the following periods:
| Year Ended December 31,
(in millions, except lease term and discount rate) | 2024 |  | 2023
Operating Leases: |  |  |
Operating lease right-of-use assets | $ | 416 |  |  | $ | 426 |
Operating lease liabilities | $ | 463 |  |  | $ | 446 |
Weighted average remaining lease term | 10.7 years |  | 11.2 years
Weighted average discount rate % | 4.77 | % |  | 4.71 | %
Supplemental cash flow information related to the leases for the following periods:
| Year Ended December 31,
(in millions) | 2024 |  | 2023 |  | 2022
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |
Operating cash flows from operating leases | $ | 71 |  |  | $ | 64 |  |  | $ | 28 |
(in millions) | December 31, 2024
Maturities of lease liabilities: |
2025 | $ | 70 |
2026 | 67 |
2027 | 60 |
2028 | 54 |
2029 | 48 |
Thereafter | 302 |
Total lease payments | $ | 601 |
Less: imputed interest | $ | (138) |
Total present value of lease liabilities | $ | 463 |
Premises and Equipment Depreciation is included in occupancy and equipment in the Consolidated Statements of (Loss) Income and amounted to $48 million, $39 million, and $18 million, in the years ended December 31, 2024, 2023, and 2022, respectively. Accumulated depreciation as of December 31, 2024 and December 31, 2023 was $569 million and $526 million, respectively. The estimated useful lives for the principal classes of assets are as follows:
Premises and Equipment |  | Useful Lives
Buildings |  | 30
Furniture, fixtures and equipment, and building improvements |  | 13.5
Leasehold improvements |  | 10
ATMs |  | 7

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 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

X
- Definition The entire disclosure of lessor's direct financing leases. + References Reference 1: http://www.xbrl.org/2003/role/disclosureRef -Topic 842 -SubTopic 30 -Name Accounting Standards Codification -Publisher FASB -URI https://asc.fasb.org/842-30/tableOfContent + Details
Name: | us-gaap_LessorDirectFinancingLeasesTextBlock
Namespace Prefix: | us-gaap_
Data Type: | dtr-types:textBlockItemType
Balance Type: | na
Period Type: | duration