Bank Premises and Equipment

9 Months Ended

Sep. 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)		September 30, 2015	December 31, 2014
Land and improvements(a)	$	713	793
Buildings		1,750	1,807
Equipment		1,683	1,682
Leasehold improvements		411	416
Construction in progress		78	98
Land and improvements held for sale		58	23
Buildings held for sale		17	3
Equipment held for sale		3	-
Leasehold improvements held for sale		3	-
Accumulated depreciation and amortization		(2,452)	(2,357)
Total bank premises and equipment	$	2,264	2,465

• AtSeptember 30, 2015 and December 31, 2014, land and improvements included $102 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 105operating 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”).

On September 3, 2015, the Bancorp announced the decision to enter into an agreement to sell branch banking locations, retail accounts, certain private banking deposits and related loan relationships in the Pittsburgh MSA to First National Bank of Pennsylvania. On September 30, 2015, the Bancorp announced the decision to enter into an agreement to sell its retail operations, including retail accounts, certain private banking deposits and related loan relationships in the St. Louis MSA to Great Southern Bank. Both transactions are part of the Branch Consolidation and Sales Plan and are expected to close in the first halfof 2016, subject to regulatory review and approval.

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 andlower of cost or market adjustments were $2 million and $104 million for the three and nine months ended September 30, 2015, respectively. The Bancorp did not recognize impairment losses during the three months ended September 30, 2014andrecognized $18 millionof impairment losses during the nine months ended September 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)				September 30, 2015(d)
Assets:
	Loans held for sale:
		Commercial and industrial loans	$	22
		Commercial mortgage loans		22
		Residential mortgage loans		188
		Home equity		33
		Automobile loans		4
Total loans held for sale(a)			$	269
		Land and improvements held for sale (included in the previous table)(b)		26
		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			$	316
Liabilities:
	Deposits held for sale:
		Interest-bearing deposits	$	535
		Noninterest-bearing deposits		130
Total deposits held for sale(c)			$	665
Total liabilities held for sale			$	665

• 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, Consumer Lending and Investment Advisors business segments.