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Leases, Premises and Equipment
 12 Months Ended
Dec. 31, 2024
Leases [Abstract]  
Leases, Premises and Equipment Leases, Premises and Equipment
Lessor Arrangements

The Company provides equipment leases through a subsidiary, mainly to large, investment-grade corporate clients. These qualify as direct financing leases which are recorded based upon the lease payments, estimated residual values and direct costs, excluding unearned income and uses the implicit interest rate to determine the value. Lease terms typically range from 24 to 120 months. The Company bases residual value estimates on asset life, market value, and lessee behavior using industry data and third-party appraisals. At the end, the lessee can return, renew, or purchase the equipment at its fair market value. Impairment of residual values occurs if the fair value is less than the carrying amount. The Company reviews its direct financing leases for impairment annually. We utilize residual value insurance for certain of our direct finance leases which, as of December 31, 2024 and 2023, insured residual assets were in place of $262 million and $280 million of our leased assets, respectively.

Interest income on lease financing recorded over the lease term and is recorded in interest income on the Consolidated Statements of (Loss) Income. Interest income of direct finance leases was $136 million, $119 million and $53 million for the years ended December 31, 2024, 2023, and 2022, respectively.

The components of our gross investment in direct financing leases are shown below:

Year Ended December 31,
(in millions)20242023
Direct financing lease - lease payments receivable
$2,039 $3,187 
Direct financing lease - unguaranteed residual assets
285 321 
Total lease payments$2,324 $3,508 

The following table presents the remaining maturity analysis of the undiscounted lease receivables, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:

(in millions)December 31, 2024
2025$471 
2026530 
2027412 
2028270 
2029253 
Thereafter388 
Total lease payments$2,324 
Plus: deferred origination costs9 
Less: unearned income(169)
Less: purchase accounting adjustment(48)
Total lease finance receivables, net$2,116 

Lessee Arrangements
The Company has operating leases for offices, branches, equipment and other items, generally with terms of 20 years or less. Many of our leases contain options to extend or terminate early and we consider these options when evaluating the lease term to determine if they are reasonably certain to be exercised based on all relevant economic and financial factors.

At lease inception, lease liabilities are recognized in other liabilities based on the present value of remaining lease payments, discounted using the Company's incremental borrowing rate if no implicit rate in the lease is available. Right-of-use assets, recognized in other assets, represent the Company’s right to use an underlying asset for the lease term and are initially equal to the lease liability, adjusted for any payments made prior to lease commencement and any lease incentives.
Variable costs such as the proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease costs were $75 million, $86 million, and $28 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Supplemental balance sheet information related to the Company’s operating lease arrangements is presented below for the following periods:

Year Ended December 31,
(in millions, except lease term and discount rate)20242023
Operating Leases:
Operating lease right-of-use assets
$416 $426 
Operating lease liabilities
$463 $446 
Weighted average remaining lease term10.7 years11.2 years
Weighted average discount rate %4.77 %4.71 %
Supplemental cash flow information related to the leases for the following periods:

Year Ended December 31,
(in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$71 $64 $28 



(in millions)		December 31, 2024
Maturities of lease liabilities:
2025$70 
202667 
202760 
202854 
202948 
Thereafter302 
Total lease payments$601 
Less: imputed interest$(138)
Total present value of lease liabilities$463 

Premises and Equipment

Depreciation is included in occupancy and equipment in the Consolidated Statements of (Loss) Income and amounted to $48 million, $39 million, and $18 million, in the years ended December 31, 2024, 2023, and 2022, respectively. Accumulated depreciation as of December 31, 2024 and December 31, 2023 was $569 million and $526 million, respectively. The estimated useful lives for the principal classes of assets are as follows:
Premises and EquipmentUseful Lives
Buildings30
Furniture, fixtures and equipment, and building improvements13.5
Leasehold improvements10
ATMs7
Leases, Premises and Equipment Leases, Premises and Equipment
Lessor Arrangements

The Company provides equipment leases through a subsidiary, mainly to large, investment-grade corporate clients. These qualify as direct financing leases which are recorded based upon the lease payments, estimated residual values and direct costs, excluding unearned income and uses the implicit interest rate to determine the value. Lease terms typically range from 24 to 120 months. The Company bases residual value estimates on asset life, market value, and lessee behavior using industry data and third-party appraisals. At the end, the lessee can return, renew, or purchase the equipment at its fair market value. Impairment of residual values occurs if the fair value is less than the carrying amount. The Company reviews its direct financing leases for impairment annually. We utilize residual value insurance for certain of our direct finance leases which, as of December 31, 2024 and 2023, insured residual assets were in place of $262 million and $280 million of our leased assets, respectively.

Interest income on lease financing recorded over the lease term and is recorded in interest income on the Consolidated Statements of (Loss) Income. Interest income of direct finance leases was $136 million, $119 million and $53 million for the years ended December 31, 2024, 2023, and 2022, respectively.

The components of our gross investment in direct financing leases are shown below:

Year Ended December 31,
(in millions)20242023
Direct financing lease - lease payments receivable
$2,039 $3,187 
Direct financing lease - unguaranteed residual assets
285 321 
Total lease payments$2,324 $3,508 

The following table presents the remaining maturity analysis of the undiscounted lease receivables, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:

(in millions)December 31, 2024
2025$471 
2026530 
2027412 
2028270 
2029253 
Thereafter388 
Total lease payments$2,324 
Plus: deferred origination costs9 
Less: unearned income(169)
Less: purchase accounting adjustment(48)
Total lease finance receivables, net$2,116 

Lessee Arrangements
The Company has operating leases for offices, branches, equipment and other items, generally with terms of 20 years or less. Many of our leases contain options to extend or terminate early and we consider these options when evaluating the lease term to determine if they are reasonably certain to be exercised based on all relevant economic and financial factors.

At lease inception, lease liabilities are recognized in other liabilities based on the present value of remaining lease payments, discounted using the Company's incremental borrowing rate if no implicit rate in the lease is available. Right-of-use assets, recognized in other assets, represent the Company’s right to use an underlying asset for the lease term and are initially equal to the lease liability, adjusted for any payments made prior to lease commencement and any lease incentives.
Variable costs such as the proportionate share of actual costs for utilities, common area maintenance, property taxes and insurance are not included in the lease liability and are recognized in the period in which they are incurred. Operating lease costs were $75 million, $86 million, and $28 million for the years ended December 31, 2024, 2023, and 2022, respectively.

Supplemental balance sheet information related to the Company’s operating lease arrangements is presented below for the following periods:

Year Ended December 31,
(in millions, except lease term and discount rate)20242023
Operating Leases:
Operating lease right-of-use assets
$416 $426 
Operating lease liabilities
$463 $446 
Weighted average remaining lease term10.7 years11.2 years
Weighted average discount rate %4.77 %4.71 %
Supplemental cash flow information related to the leases for the following periods:

Year Ended December 31,
(in millions)202420232022
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases$71 $64 $28 



(in millions)		December 31, 2024
Maturities of lease liabilities:
2025$70 
202667 
202760 
202854 
202948 
Thereafter302 
Total lease payments$601 
Less: imputed interest$(138)
Total present value of lease liabilities$463 

Premises and Equipment

Depreciation is included in occupancy and equipment in the Consolidated Statements of (Loss) Income and amounted to $48 million, $39 million, and $18 million, in the years ended December 31, 2024, 2023, and 2022, respectively. Accumulated depreciation as of December 31, 2024 and December 31, 2023 was $569 million and $526 million, respectively. The estimated useful lives for the principal classes of assets are as follows:
Premises and EquipmentUseful Lives
Buildings30
Furniture, fixtures and equipment, and building improvements13.5
Leasehold improvements10
ATMs7