Summary of Significant Accounting Policies (Tables)

12 Months Ended

Dec. 31, 2023

Schedule of Useful Lives for Premises and Equipment

The ranges of estimated useful lives for the principal classes of assets are as follows:



Premises and Equipment						Useful Lives
Buildings						25 years
Furniture, fixtures and equipment, and building improvements						3 to 7 years
Leasehold improvements						Term of lease or useful life, whichever is shorter

Schedule of New Accounting Pronouncements Adopted and Recent Accounting Pronouncements

Accounting Pronouncements Adopted in 2023

Standard

Required Date of Adoption

Description

Effect on Financial Statements

ASU 2022-02, Financial Instruments — Credit Losses (Topic 326): Troubled Debt Restructurings and the Vintage Disclosures

Effective for fiscal years beginning after December 15, 2022.

ASU 2022-02 eliminates the

• accounting guidance for TDR, and requires the Company to apply the loan refinancing and restructuring guidance to determine whether a modification made to a loan results in a new loan or a continuation of an existing loan; and

• requirement to use a discounted cash flow method to measure receivables.

The guidance also requires

• enhanced disclosures for certain loan refinancing and restructurings by creditors when the borrower is experiencing financial difficulty; and

• vintage disclosures of current period gross charge-offs (on a current year-to-date basis) by year of loan origination for financing receivables and net investments in leases within the scope of ASC 326-20: Financial Instruments — Credit Losses — Measured at Amortized Cost.

The Company adopted ASU 2022-02 on January 1, 2023 on a prospective basis, except for the guidance related to the elimination of TDR recognition and measurement, which was adopted on a modified retrospective approach.

This adoption increased the allowance for loan losses on TDRs as of December 31, 2022 by $6 million and decreased opening retained earnings on January 1, 2023 by $4 million after-tax.

The following standards were adopted on January 1, 2023, but they did not have a material impact on the Company’s Consolidated Financial Statements:

•ASU 2021-08, Business Combinations (Topic 805): Accounting for Contract Assets and Contract Liabilities from Contracts with Customers

•ASU 2022-01, Derivatives and Hedging (Topic 815): Fair Value Hedging — Portfolio Layer Method

•ASU 2022-04, Liabilities — Supplier Finance Program (Subtopic 405-50): Disclosures of Supplier Finance Program Obligations

Accounting Pronouncements Adopted in 2024


Standard	Required Date of Adoption	Description	Effect on Financial Statements



ASU 2023-02, Investments — Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method	January 1, 2024	ASU 2023-02 expands the scope of the proportional amortization method to equity tax credit investment programs if certain conditions are met. Previously, the proportional amortization method could only be used for investments in low-income housing tax credit structures. Under this guidance, companies are able to elect, on a tax credit program-by-tax credit program basis, to apply the proportional amortization method to all equity investments meeting the criteria in ASC 323-740-25-1. The amendments in this guidance must be applied on a modified retrospective or a retrospective basis.	The Company adopted ASU 2023-02 on January 1, 2024, for all tax credit investments under a modified retrospective basis. The impact of the adoption decreased opening retained earnings on January 1, 2024 by $10 million.

The following standards were adopted on January 1, 2024, but they did not have a material impact on the Company’s Consolidated Financial Statements:

•ASU 2023-01, Leases (Topic 842): Common Control Arrangements

•ASU 2022-03, Fair Value Measurement (Topic 820) Fair Value Measurement of Equity Securities Subject to Contractual Sale Restrictions

Recent Accounting Pronouncements Yet to be Adopted


Standard	Required Date of Adoption	Description	Effect on Financial Statements


ASU No. 2023-07, Segment Reporting (Topic 280): Improvements to Reportable Segment Disclosures	December 31, 2024. Early adoption is permitted	ASU 2023-07 expands the disclosure requirements for reportable segments of public entities by adding the following disclosure requirements: • Requires, on an annual and interim basis, significant segment expenses that are regularly provided to the chief operating decision maker (“CODM”) and included within each reported measure of segment profit or loss. • Requires , on an annual and interim basis, amount and composition of other segment items. This amount reconciles segment revenues, less the significant segment expenses, to the reported measure of segment profit or loss. • Expands the current interim disclosure requirements to require all existing annual disclosures about a reportable segment’s profit or loss and assets also be made on an interim basis. • Clarifies that if a CODM uses more than one measure of segment profit or loss, then the entity may disclose one or more measures, but at least one measure should be that which is most consistent with GAAP measurement principles. • Requires annual disclosure of the title and position of the CODM as well as explanation of how the CODM uses the reported measures in assessing segment performance and allocating resources.	The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.
ASU No. 2023-09, Income Taxes (Topic 740): Improvements to Income Tax Disclosures	December 31, 2025 Early adoption is permitted.	ASU 2023-09 amends the disclosure requirements for income taxes, including the requirement for further disaggregation of the income tax rate reconciliation and income taxes paid disclosures. The amendments in this guidance must be applied prospectively, with the option to apply retrospectively.	The Company is currently evaluating the impact of this guidance on the Company’s Consolidated Financial Statements.

The following standard will be adopted on January 1, 2025 and is not expected to have a material impact on the Company’s Consolidated Financial Statements:

•ASU 2023-05, Business Combinations — Joint Venture Formations (Subtopic 805-60): Recognition and Initial Measurement