Bank Premises and Equipment

9 Months Ended

Sep. 30, 2018

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, 2018	December 31, 2017
Land and improvements(a)	$	597	644
Buildings(a)		1,593	1,679
Equipment		1,962	1,876
Leasehold improvements		404	399
Construction in progress(a)		89	93
Bank premises and equipment held for sale:
Land and improvements		24	17
Buildings		11	9
Equipment		3	1
Accumulated depreciation and amortization		(2,787)	(2,715)
Total bank premises and equipment	$	1,896	2,003

(a) At September 30, 2018 and December 31, 2017, land and improvements, buildings and construction in progress included $55 and $91, 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.

During the second quarter of 2018, the Bancorp adopted a plan to close approximately 100 to 125 branches over the next three years (the “2018 Branch Optimization Plan”). As of September 30, 2018, the Bancorp had identified 31specific branches for closure under the 2018 Branch Optimization Plan with these closures expected to be completed prior to December 31, 2018. The Bancorp expects to identify the remaining branches to be closed under the 2018 Branch Optimization Plan prior to December 31, 2019. As part of the adoption of the 2018 Branch Optimization Plan, the Bancorp has also elected to sell 21 parcels of land which had previously been held for future branch expansion.

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 withsuch assessments and lower of cost or market adjustments were immaterial and $41 million for the three and nine months ended September 30, 2018, respectively, and $1 million and $6 million for the three and nine months ended September 30, 2017, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.