Bank Premises and Equipment

12 Months Ended

Dec. 31, 2022

Property, Plant and Equipment [Abstract]

The following table provides a summary of bank premises and equipment as of December 31:


($ in millions)	Estimated Useful Life			2022		2021
Equipment	2	-	20 years	$	2,492	2,392
Buildings(a)	1	-	30 years	1,699		1,668
Land and improvements(a)				640		645
Leasehold improvements	1	-	30 years	568		517
Construction in progress(a)				124		84
Bank premises and equipment held for sale:
Land and improvements				17		18
Buildings				7		6
Accumulated depreciation and amortization				(3,360)		(3,210)
Total bank premises and equipment				$	2,187	2,120

(a)At December 31, 2022 and 2021, land and improvements, buildings and construction in progress included $27 and $39, respectively, associated with parcels of undeveloped land intended for future branch expansion.

Depreciation and amortization expense related to bank premises and equipment, including amortization of finance lease ROU assets, was $273 million, $270 million and $256 million for the years ended December 31, 2022, 2021 and 2020, respectively.

The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service banking centers at certain locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. The Bancorp closed a total of 43 banking centers throughout its footprint during the year ended December 31, 2022.

The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments and lower of cost or market adjustments were $9 million, $7 million and $30 million for the years ended December 31, 2022, 2021 and 2020, respectively. The recognized impairment losses were recorded in other noninterest income in the Consolidated Statements of Income.