PREMISES, EQUIPMENT, AND SOFTWARE

12 Months Ended

Dec. 31, 2025

Property, Plant and Equipment [Abstract]

PREMISES, EQUIPMENT AND SOFTWARE

NOTE 5 - 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)	2025	2024
Land and land improvements	10 - 75	$143	$144
Buildings and leasehold improvements	5 - 60	901	887
Furniture, fixtures and equipment	4 - 20	581	601
Construction in progress		110	53
Total premises and equipment, gross		1,736	1,685
Accumulated depreciation and amortization		(821)	(810)
Total premises and equipment, net		$915	$875

Depreciation charged to noninterest expense totaled $130 million, $132 million, and $115 million for the years ended December 31, 2025, 2024, and 2023, respectively, and is presented in the Consolidated Statements of Operations in either Occupancy or Equipment and software, 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 $2.7 billion and $2.5 billion, and related accumulated amortization of $1.8 billion and $1.7 billion as of December 31, 2025 and 2024, respectively. Amortization expense was $271 million, $268 million, and $254 million for the years ended December 31, 2025, 2024, and 2023, respectively.

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

Year	(dollars in millions)
2026	$232
2027	176
2028	119
2029	63
2030	20
Thereafter	—
Total(1)	$610

(1) Excludes $275 million of in-process software at December 31, 2025.