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Leases, Premises and Equipment | 9 Months Ended
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Sep. 30, 2025
Leases [Abstract] |
Leases, Premises and Equipment | Leases, Premises and Equipment Lessor Arrangements We provide equipment leases, 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. We base residual value estimates on asset life, market value, and lessee behavior using industry data and third-party appraisals. At the end of the lease term, the lessee can renew the lease term, return, or purchase the equipment at its fair value. Impairment of residual values occurs if its fair value is less than its carrying amount. We review our direct financing leases for impairment annually. We utilize residual value insurance for certain of our direct finance leases. As of September 30, 2025 and December 31, 2024, we had residual value insurance in place on $251 million and $262 million, respectively, of our leased assets. Interest income on lease financing is recorded over the lease term and recorded in Interest income - Loans and leases on the Condensed Consolidated Statements of (Loss) Income:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Interest income on lease financing | $ | 24 |  |  | $ | 32 |  |  | $ | 72 |  |  | $ | 105 |
Lessee Arrangements We have 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 our incremental borrowing rate if no implicit rate in the lease is available. Right-of-use assets, recognized in Other assets, represent our 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 as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost |  | $ | 14 |  |  | $ | 20 |  |  | $ | 61 |  |  | $ | 58 |
Supplemental balance sheet information related to our operating lease arrangements is presented below:
| September 30, 2025 |  | December 31, 2024
Operating Leases: |  |  |
Operating lease right-of-use assets | $ | 389 |  |  | $ | 416 |
Operating lease liabilities | $ | 438 |  |  | $ | 463 |
Weighted average remaining lease term | 10.3 years |  | 10.7 years
Weighted average discount rate % | 4.79 | % |  | 4.77 | %
The table below presents the supplemental cash flow information related to the leases:
| Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 58 |  |  | $ | 54 |  |  |  |  |
Premises and Equipment The table below presents our Premises and equipment:
| September 30, 2025 |  | December 31, 2024 |  |  |  |
Premises and equipment | $ | 997 |  |  | $ | 1,131 |  |  |  |  |
Less: Accumulated depreciation | (533) |  |  | (569) |  |  |  |  |
Premises and equipment, net | $ | 464 |  |  | $ | 562 |  |  |  |  |
The table below presents our depreciation expense:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Depreciation expense(1) |  | $ | 10 |  |  | $ | 13 |  |  | $ | 32 |  |  | $ | 34 |
(1)Included in Occupancy and equipment expense in the Condensed Consolidated Statements of (Loss) Income
Leases, Premises and Equipment | Leases, Premises and Equipment Lessor Arrangements We provide equipment leases, 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. We base residual value estimates on asset life, market value, and lessee behavior using industry data and third-party appraisals. At the end of the lease term, the lessee can renew the lease term, return, or purchase the equipment at its fair value. Impairment of residual values occurs if its fair value is less than its carrying amount. We review our direct financing leases for impairment annually. We utilize residual value insurance for certain of our direct finance leases. As of September 30, 2025 and December 31, 2024, we had residual value insurance in place on $251 million and $262 million, respectively, of our leased assets. Interest income on lease financing is recorded over the lease term and recorded in Interest income - Loans and leases on the Condensed Consolidated Statements of (Loss) Income:
| Three Months Ended September 30, |  | Nine Months Ended September 30,
| 2025 |  | 2024 |  | 2025 |  | 2024
Interest income on lease financing | $ | 24 |  |  | $ | 32 |  |  | $ | 72 |  |  | $ | 105 |
Lessee Arrangements We have 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 our incremental borrowing rate if no implicit rate in the lease is available. Right-of-use assets, recognized in Other assets, represent our 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 as follows:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Operating lease cost |  | $ | 14 |  |  | $ | 20 |  |  | $ | 61 |  |  | $ | 58 |
Supplemental balance sheet information related to our operating lease arrangements is presented below:
| September 30, 2025 |  | December 31, 2024
Operating Leases: |  |  |
Operating lease right-of-use assets | $ | 389 |  |  | $ | 416 |
Operating lease liabilities | $ | 438 |  |  | $ | 463 |
Weighted average remaining lease term | 10.3 years |  | 10.7 years
Weighted average discount rate % | 4.79 | % |  | 4.77 | %
The table below presents the supplemental cash flow information related to the leases:
| Nine Months Ended September 30, |  |
| 2025 |  | 2024 |  |  |  |
Cash paid for amounts included in the measurement of lease liabilities: |  |  |  |  |  |  |
Operating cash flows from operating leases | $ | 58 |  |  | $ | 54 |  |  |  |  |
Premises and Equipment The table below presents our Premises and equipment:
| September 30, 2025 |  | December 31, 2024 |  |  |  |
Premises and equipment | $ | 997 |  |  | $ | 1,131 |  |  |  |  |
Less: Accumulated depreciation | (533) |  |  | (569) |  |  |  |  |
Premises and equipment, net | $ | 464 |  |  | $ | 562 |  |  |  |  |
The table below presents our depreciation expense:
|  | Three Months Ended September 30, |  | Nine Months Ended September 30,
|  | 2025 |  | 2024 |  | 2025 |  | 2024
Depreciation expense(1) |  | $ | 10 |  |  | $ | 13 |  |  | $ | 32 |  |  | $ | 34 |
(1)Included in Occupancy and equipment expense in the Condensed Consolidated Statements of (Loss) Income

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- 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
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- 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
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