Bank Premises and Equipment

9 Months Ended

Sep. 30, 2023

Property, Plant and Equipment [Abstract]

Bank Premises and Equipment

Bank Premises and Equipment

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

($ in millions)	September 30, 2023		December 31, 2022
Equipment	$	2,538	2,492
Buildings(a)	1,729		1,699
Leasehold improvements	632		568
Land and improvements(a)	619		640
Construction in progress(a)	179		124
Bank premises and equipment held for sale:
Land and improvements	16		17
Buildings	6		7
Accumulated depreciation and amortization	(3,416)		(3,360)
Total bank premises and equipment	$	2,303	2,187

(a)Buildings, land and improvements and construction in progress included $7 and $27 associated with parcels of undeveloped land intended for future branch expansion at September 30, 2023 and December 31, 2022, 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. As a result, the Bancorp transferred certain parcels of land with a carrying value of $18 million and $23 million to OREO during the three and nine months ended September 30, 2023, respectively. Impairment losses of $7 million and $8 million were recorded for the three and nine months ended September 30, 2023, respectively, upon transfer to OREO. Additionally, the Bancorp closed a total of 28 banking centers throughout its footprint during the nine months ended September 30, 2023.

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 immaterial and $1 million for the three months ended September 30, 2023 and 2022, respectively, and $2 million for both the nine months ended September 30, 2023 and 2022. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.