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Bank Premises and Equipment
 3 Months Ended
Mar. 31, 2020
Bank Premises and Equipment  
Bank Premises and Equipment
8. Bank Premises and Equipment
The following table provides a summary of bank premises and equipment as of:
                                 
($ in millions)
 
 
  
    March 31, 2020
 
  
 
  
December 31, 2019
 
Land and improvements
(a)
  
$
     
 
  
 
634
 
  
 
 
    
639
 
Buildings
(a)
  
 
 
  
 
1,564
 
  
 
 
    
1,575
 
Equipment
 
 
 
  
 
2,151
 
  
 
 
    
2,126
 
Leasehold improvements
 
 
 
  
 
438
 
  
 
 
    
432
 
Construction in progress
(a)
  
 
 
  
 
92
 
  
 
 
    
85
 
Bank premises and equipment held for sale:
 
 
 
  
 
 
  
 
 
    
 
Land and improvements
   
   
 
15
 
    
     
8
 
Buildings
   
   
 
20
 
    
     
18
 
Equipment
   
   
 
1
 
    
     
1
 
Accumulated depreciation and amortization
   
   
 
(2,906
)
   
     
(2,889
 )
Total bank premises and equipment
 
$
     
 
  
 
2,009
 
    
     
1,995
 
 
 
 
 
 
 
 
(a)
At March 31, 2020 and December 31, 2019, land and improvements, buildings and construction in progress included $53 and $51, 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 March 31, 2020, the Bancorp expects the total number of branch closures under the 2018 Branch Optimization Plan to be approximately 126 branches, of which 94 branches have already been closed, with an additional 5 branches identified for closure in 2020. The Bancorp expects the additional branches to be closed under the 2018 Branch Optimization Plan in 2021.
As a result of the MB Financial, Inc. acquisition, the Bancorp identified 46 branches in the Chicago market that it planned to close. Of these locations, 45 were closed in the third quarter of 2019 and the final location was closed in the first quarter of 2020. These 46 branches are not part of the aforementioned 2018 Branch Optimization Plan and are in addition to the branch in the Chicago market that the Bancorp closed in November 2018. In addition, the Bancorp previously identified 11 other
non-branch
locations that it planned to sell that were acquired from MB Financial, Inc. These locations had a fair value, less cost to sell, of $15 million. Of these locations, 7 have been sold as of March 31, 2020.
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 $3 million and $20 million for the three months ended March 31, 2020 and 2019, respectively. For the three months ended March 31, 2019, impairment charges included $14 million associated with Fifth Third branches in the Chicago market that were assessed for impairment as a result of the MB Financial, Inc. acquisition. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.