PREMISES, EQUIPMENT, AND SOFTWARE

12 Months Ended

Dec. 31, 2024

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND SOFTWARE

NOTE 7 - PREMISES, EQUIPMENT AND SOFTWARE

Premises and Equipment

Premises and equipment are stated at cost, less accumulated depreciation and amortization, computed using the straight-line method over the estimated useful lives of the assets. Leasehold improvements are amortized over the life of the lease, including renewal options if exercise of those options is reasonably assured, or their estimated useful life, whichever is shorter.

The cost of major additions and improvements to premises and equipment is capitalized. Repairs and maintenance and other costs that do not improve the property, extend the useful life or otherwise do not meet capitalization criteria are charged to expense as incurred. The Company evaluates premises and equipment for impairment when events or circumstances indicate that the carrying value of such assets may not be recoverable.

A summary of the carrying value of premises and equipment is presented below:

		December 31,
(dollars in millions)	Useful Lives (years)	2024	2023
Land and land improvements	10 - 75	$144	$143
Buildings and leasehold improvements	5 - 60	887	875
Furniture, fixtures and equipment	4 - 20	601	613
Construction in progress		53	77
Total premises and equipment, gross		1,685	1,708
Accumulated depreciation and amortization		(810)	(813)
Total premises and equipment, net		$875	$895

Depreciation charged to noninterest expense totaled $132 million, $115 million and $107 million for the years ended December 31, 2024, 2023 and 2022, respectively, and is presented in the Consolidated Statements of Operations in either occupancy or equipment expense, as applicable.

Software

Costs related to computer software developed or obtained for internal use are capitalized if the projects improve functionality and provide long-term future operational benefits. Capitalized costs are amortized using the straight-line method over the asset’s expected useful life, which is based on the basic pattern of consumption and economic benefits provided by the asset. The amortization of software commences when the asset, or identifiable component of the asset, is substantially complete and ready for its intended use. All other costs incurred in connection with an internal-use software project are expensed as incurred. Capitalized software is included in other assets in the Consolidated Balance Sheets.

The Company had capitalized software assets of $2.5 billion and $2.6 billion, respectively, and related accumulated amortization of $1.7 billion as of December 31, 2024 and 2023. Amortization expense was $268 million, $254 million and $243 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The estimated future amortization expense for capitalized software assets is presented below.

Year	(dollars in millions)
2025	$244
2026	184
2027	129
2028	72
2029	16
Thereafter	—
Total(1)	$645

(1) Excludes $222 million of in-process software at December 31, 2024.