XML 119 R15.htm IDEA: XBRL DOCUMENT v3.2.0.727
Bank Premises and Equipment
 6 Months Ended
Jun. 30, 2015
Bank Premises and Equipment  
Bank Premises and Equipment

7. Bank Premises and Equipment

The following table provides a summary of bank premises and equipment as of: 
      
($ in millions) June 30, 2015December 31, 2014
Land and improvements(a)$715  793 
Buildings 1,750  1,807 
Equipment 1,676  1,682 
Leasehold improvements 410  416 
Construction in progress 61  98 
Land and improvements held for sale 61  23 
Buildings held for sale 17  3 
Equipment held for sale 3  - 
Leasehold improvements held for sale 3  - 
Accumulated depreciation and amortization (2,398)  (2,357) 
Total $2,298 2,465 

  • At June 30, 2015 and December 31, 2014, land and improvements included $106 million and $165 million, respectively, associated with parcels of undeveloped land intended for future branch expansion.

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 branches at certain of its existing banking center 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. On June 16, 2015, the Bancorp's Board of Directors authorized management to pursue a plan to further develop its distribution strategy, including a plan to consolidate and/or sell 105 operating branch locations and to sell an additional 31 parcels of undeveloped land that had been acquired by the Bancorp for future branch expansion (the “Branch Consolidation and Sales Plan”).

 

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 $98 million and $102 million for the three and six months ended June 30, 2015, respectively, and $18 million for both the three and six months ended June 30, 2014. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.

 

      
The following table summarizes the assets and liabilities classified as held for sale as a result of the Branch Consolidation and Sales Plan as of:
     
      
($ in millions) June 30, 2015(d)
Assets:   
 Loans held for sale:   
  Commercial and industrial loans $12 
  Commercial mortgage loans 14 
  Residential mortgage loans 231 
  Home equity  44 
  Automobile loans 5 
  Other consumer loans and leases 55 
Total loans held for sale(a) 361 
  Land and improvements held for sale (included in the previous table)(b) 27 
  Buildings held for sale (included in the previous table)(b) 15 
  Equipment held for sale (included in the previous table)(b) 3 
  Leasehold improvements held for sale (included in the previous table)(b) 3 
Total assets held for sale$409 
Liabilities:   
 Deposits held for sale:   
  Interest-bearing deposits$112 
  Noninterest-bearing deposits 449 
Total deposits held for sale(c)  561 
Total liabilities held for sale$561 

  • Included in loans held for sale in the Condensed Consolidated Balance Sheets.
  • Included in bank premises and equipment in the Condensed Consolidated Balance Sheets.
  • Included in interest-bearing deposits and noninterest-bearing deposits in the Condensed Consolidated Balance Sheets.
  • Included in the Branch Banking business segment.