Leases

3 Months Ended

Mar. 31, 2024

Leases [Abstract]

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At March 31, 2024, we had 408 branches, of which 278 are owned and 130 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2023 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	March 31, 2024			December 31, 2023
Operating leases
ROU assets, net of amortization	$	168		$	172
Lease liabilities	193			198
Finance leases
ROU assets, net of amortization	3			3
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.6			8.7
Finance leases	16.2			16.5
Weighted average discount rate
Operating leases	3.4		%	3.4		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Three Months Ended March 31,
(In millions)	2024		2023
Lease expense:
Operating lease expense	$	10	$	11
Other expenses associated with operating leases 1	15		15
Total lease expense	$	25	$	26
Related cash disbursements from operating leases	$	11	$	12

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024 1	$	32
2025	38
2026	33
2027	22
2028	18
Thereafter	85
Total	$	228

1 Contractual maturities for the nine months remaining in 2024.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the first quarter of 2024 and 2023.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $388 million and $383 million at March 31, 2024 and December 31, 2023, respectively. We recorded income of $4 million on these leases for both the first quarter of 2024 and 2023.

LEASES

LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At March 31, 2024, we had 408 branches, of which 278 are owned and 130 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2023 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	March 31, 2024			December 31, 2023
Operating leases
ROU assets, net of amortization	$	168		$	172
Lease liabilities	193			198
Finance leases
ROU assets, net of amortization	3			3
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.6			8.7
Finance leases	16.2			16.5
Weighted average discount rate
Operating leases	3.4		%	3.4		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Three Months Ended March 31,
(In millions)	2024		2023
Lease expense:
Operating lease expense	$	10	$	11
Other expenses associated with operating leases 1	15		15
Total lease expense	$	25	$	26
Related cash disbursements from operating leases	$	11	$	12

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024 1	$	32
2025	38
2026	33
2027	22
2028	18
Thereafter	85
Total	$	228

1 Contractual maturities for the nine months remaining in 2024.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the first quarter of 2024 and 2023.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $388 million and $383 million at March 31, 2024 and December 31, 2023, respectively. We recorded income of $4 million on these leases for both the first quarter of 2024 and 2023.

LEASES

. LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At March 31, 2024, we had 408 branches, of which 278 are owned and 130 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2023 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	March 31, 2024			December 31, 2023
Operating leases
ROU assets, net of amortization	$	168		$	172
Lease liabilities	193			198
Finance leases
ROU assets, net of amortization	3			3
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.6			8.7
Finance leases	16.2			16.5
Weighted average discount rate
Operating leases	3.4		%	3.4		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Three Months Ended March 31,
(In millions)	2024		2023
Lease expense:
Operating lease expense	$	10	$	11
Other expenses associated with operating leases 1	15		15
Total lease expense	$	25	$	26
Related cash disbursements from operating leases	$	11	$	12

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024 1	$	32
2025	38
2026	33
2027	22
2028	18
Thereafter	85
Total	$	228

1 Contractual maturities for the nine months remaining in 2024.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the first quarter of 2024 and 2023.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $388 million and $383 million at March 31, 2024 and December 31, 2023, respectively. We recorded income of $4 million on these leases for both the first quarter of 2024 and 2023.

LEASES

. LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At March 31, 2024, we had 408 branches, of which 278 are owned and 130 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2023 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	March 31, 2024			December 31, 2023
Operating leases
ROU assets, net of amortization	$	168		$	172
Lease liabilities	193			198
Finance leases
ROU assets, net of amortization	3			3
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.6			8.7
Finance leases	16.2			16.5
Weighted average discount rate
Operating leases	3.4		%	3.4		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Three Months Ended March 31,
(In millions)	2024		2023
Lease expense:
Operating lease expense	$	10	$	11
Other expenses associated with operating leases 1	15		15
Total lease expense	$	25	$	26
Related cash disbursements from operating leases	$	11	$	12

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024 1	$	32
2025	38
2026	33
2027	22
2028	18
Thereafter	85
Total	$	228

1 Contractual maturities for the nine months remaining in 2024.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the first quarter of 2024 and 2023.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $388 million and $383 million at March 31, 2024 and December 31, 2023, respectively. We recorded income of $4 million on these leases for both the first quarter of 2024 and 2023.

LEASES

. LEASES

We have operating and finance leases for branches, corporate offices, and data centers. At March 31, 2024, we had 408 branches, of which 278 are owned and 130 are leased. We lease our headquarters in Salt Lake City, Utah. The remaining maturities of our lease commitments range from the year 2024 to 2062, and some lease arrangements include options to extend or terminate the leases.

All leases with lease terms greater than twelve months are reported as a lease liability with a corresponding right-of-use (“ROU”) asset. We present ROU assets for operating leases and finance leases on the consolidated balance sheet in “Other assets,” and “Premises, equipment and software, net,” respectively. The corresponding liabilities for those leases are presented in “Other liabilities,” and “Long-term debt.” For more information about our lease policies, see Note 8 of our 2023 Form 10-K.

The following schedule presents ROU assets and lease liabilities with associated weighted average remaining life and discount rate:

(Dollar amounts in millions)	March 31, 2024			December 31, 2023
Operating leases
ROU assets, net of amortization	$	168		$	172
Lease liabilities	193			198
Finance leases
ROU assets, net of amortization	3			3
Lease liabilities	4			4
Weighted average remaining lease term (years)
Operating leases	8.6			8.7
Finance leases	16.2			16.5
Weighted average discount rate
Operating leases	3.4		%	3.4		%
Finance leases	3.1		%	3.1		%

The following schedule presents additional information related to lease expense:

	Three Months Ended March 31,
(In millions)	2024		2023
Lease expense:
Operating lease expense	$	10	$	11
Other expenses associated with operating leases 1	15		15
Total lease expense	$	25	$	26
Related cash disbursements from operating leases	$	11	$	12

1 Other expenses primarily include property taxes and building and property maintenance.

The following schedule presents the total contractual undiscounted lease payments for operating lease liabilities by expected due date for each of the next five years:

(In millions)	Total undiscounted lease payments
2024 1	$	32
2025	38
2026	33
2027	22
2028	18
Thereafter	85
Total	$	228

1 Contractual maturities for the nine months remaining in 2024.

We enter into certain lease agreements where we are the lessor of real estate. Real estate leases are made from bank-owned and subleased property to generate cash flow from the property, including from leasing vacant suites in which we occupy portions of the building. Operating lease income was $3 million for both the first quarter of 2024 and 2023.

We originated equipment leases, considered to be sales-type leases or direct financing leases, totaling $388 million and $383 million at March 31, 2024 and December 31, 2023, respectively. We recorded income of $4 million on these leases for both the first quarter of 2024 and 2023.