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Premises and equipment
 12 Months Ended
Dec. 31, 2024
Property, Plant and Equipment [Abstract]  
Premises and equipment Premises and equipment
The detail of premises and equipment was as follows:
December 31,
(Dollars in millions)20242023
Land$146 $148 
Buildings703 685 
Leasehold improvements423 413 
Furniture and equipment1,190 1,097 
 2,462 2,343 
Less: accumulated depreciation and amortization1,326 1,220 
Right-of-use assets — operating leases569 616 
Premises and equipment, net$1,705 $1,739 
The right-of-use assets and lease liabilities relate to banking offices and other space occupied by the Company and use of certain equipment under noncancelable operating lease agreements. As of December 31, 2024 and 2023, the Company recognized $677 million and $717 million respectively, of operating lease liabilities as a component of Accrued interest and other liabilities in the Consolidated Balance Sheet. In calculating the present value of lease payments, the Company utilized its incremental secured borrowing rate based on lease term.
The Company’s noncancelable operating lease agreements expire at various dates over the next 17 years. Real estate leases generally consist of fixed monthly rental payments with certain leases containing escalation clauses. Any variable lease payments or payments for nonlease components are recognized in the Consolidated Statement of Income as a component of Equipment and net occupancy expense based on actual costs incurred. Some leases contain lessee options to extend the term. Those options are included in the lease term when it is determined that it is reasonably certain the option will be exercised.
The Company has noncancelable operating lease agreements for certain equipment related to ATMs, servers, printers and mail machines that are used in the normal course of operations. The ATM leases are either based on the rights to a specific square footage or a license agreement whereby the Company has the right to operate an ATM in a lessor's location. The lease terms generally contain both fixed payments and variable payments that are transaction-based. Given the transaction-based nature of the variable payments, such payments are excluded from the measurement of the right-of-use asset and lease liability and are recognized in the Consolidated Statement of Income as a component of Equipment and net occupancy expense when incurred.
In December 2024, M&T vacated certain floors of a leased office facility resulting in a write-down of the associated right-of-use asset and leasehold improvements of $12 million. Also in December 2024, M&T fully vacated and listed for sale an owned office building. The building and associated leasehold improvements were written-down to fair value less cost to sell, resulting in a loss of $15 million. These asset write-downs were recognized in Other costs of operations in the Consolidated Statement of Income in 2024.
The following table presents information about the Company’s lease costs for operating leases recorded in the Consolidated Balance Sheet, cash paid toward lease liabilities and the weighted-average remaining term and discount rates of the operating leases.
Year Ended December 31,
(Dollars in millions)202420232022
Lease cost
Operating lease cost$155 $154 $139 
Short-term lease cost— — 8 
Variable lease cost5 4 4 
Total lease cost$160 $158 $151 
Other information
Right-of-use assets:
Obtained in exchange for new operating lease liabilities$101 $134 $138 
Acquired in business combination— — 226 
Cash paid toward lease liabilities164 158 143 
Weighted-average remaining lease term7 years7 years7 years
Weighted-average discount rate3.64 %3.37 %2.97 %
Minimum lease payments under noncancelable operating leases are summarized in the following table.
(Dollars in millions)
Year ending December 31: 
2025$160 
2026142 
2027120 
202895 
202970 
Later years182 
Total lease payments769 
Imputed interest(92)
Total$677