LEASES (Tables)

3 Months Ended

Mar. 31, 2025

Leases [Abstract]

Schedule of Operating and Finance Lease Assets and Liabilities

The following table presents supplemental balance sheet information and remaining weighted average lease terms and discount rates:

Supplemental Lease Information

dollars in millions	Classification	March 31, 2025			December 31, 2024
Lease assets:
Operating lease ROU assets	Other assets	$	300		$	316
Finance leases	Premises and equipment	35			15
Total lease assets		$	335		$	331
Lease liabilities:
Operating leases	Other liabilities	$	340		$	357
Finance leases	Other borrowings	36			15
Total lease liabilities		$	376		$	372
Weighted-average remaining lease terms:
Operating leases		7.3 years			7.4 years
Finance leases		8.9 years			11.7 years
Weighted-average discount rate:
Operating leases		2.94		%	2.94		%
Finance leases		4.31			3.96

Schedule of Net Lease Cost

The following table presents components of lease cost:

Components of Net Lease Cost

dollars in millions		Three Months Ended March 31,
	Classification	2025		2024
Operating lease cost	Occupancy expense	$	18	$	18
Finance lease ROU asset amortization	Equipment expense	1		1
Variable lease cost (1)	Occupancy expense	7		9
Sublease income	Occupancy expense	(2)		(1)
Net lease cost (1)		$	24	$	27

(1) Includes short-term lease cost.

Schedule of Supplemental Cash Flow Information

The following table presents supplemental cash flow information related to leases:

Supplemental Cash Flow Information

dollars in millions	Three Months Ended March 31,
	2025		2024
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	19	$	18
Financing cash flows from finance leases	1		—
ROU assets obtained in exchange for new operating lease liabilities	3		17
ROU assets obtained in exchange for new finance lease liabilities	22		—

Schedule of Operating Lease Income

The table that follows presents lease income related to BancShares’ operating and finance leases:

Lease Income

dollars in millions	Three Months Ended March 31,
	2025		2024
Lease income – operating leases	$	254	$	237
Variable lease income – operating leases (1)	16		18
Rental income on operating leases	270		255
Interest income – sales type and direct financing leases	43		43
Variable lease income included in other noninterest income (2)	14		16
Interest income – leveraged leases	1		1
Total lease income	$	328	$	315

(1)     Primarily includes per diem railcar operating lease rental income earned on a time or mileage usage basis.

(2) Includes revenue related to insurance coverage on leased equipment and leased equipment property tax reimbursements due from customers.