Leases (Tables)

3 Months Ended

Mar. 31, 2022

Leases [Abstract]

Components of Lease Income

The components of lease income were as follows:

(in millions)	For the Three Months Ended March 31, 2022		For the Three Months Ended March 31, 2021
Interest income on lease financing (1)	$	12	$	14

(1)Included in Interest Income – Loans and leases in the Consolidated Statements of Income and Comprehensive Income.

Components of Net Investment in Direct Financing Leases

The components of net investment in direct financing leases, including the carrying amount of the lease receivables, as well as the unguaranteed residual asset were as follows:

(in millions)	March 31, 2022		December 31, 2021
Net investment in the lease - lease payments receivable	$	1,680	$	1,790
Net investment in the lease - unguaranteed residual assets		73		75
Total lease payments	$	1,753	$	1,865

Summary of Remaining Maturity of Undiscounted Lease Receivables

The following table presents the remaining maturity analysis of the undiscounted lease receivables as of March 31, 2022, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:

(in millions)	March 31, 2022
2022	$	10
2023		196
2024		247
2025		344
2026		382
Thereafter		574
Total lease payments		1,753
Plus: deferred origination costs		23
Less: unearned income		(90	)
Total lease finance receivables, net	$	1,686

Summary of Components of Lease Expense

The components of lease expense were as follows:

(in millions)	For the Three Months Ended March 31, 2022		For the Three Months Ended March 31, 2021
Operating lease cost	$	7	$	7
Sublease income		—		—
Total lease cost	$	7	$	7

Summary of Supplemental Cash Flow Information Related to Leases

Supplemental cash flow information related to the leases for the following periods:

(in millions)	For the Three Months Ended March 31, 2022		For the Three Months Ended March 31, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7	$	7

Summary of Supplemental Balance Sheet Information Related to Leases

Supplemental balance sheet information related to the leases for the following periods:

(in millions, except lease term and discount rate)	March 31, 2022			December 31, 2021
Operating Leases:
Operating lease right-of-use assets	$	243		$	249
Operating lease liabilities	$	243		$	249
Weighted average remaining lease term	15 years			16 years
Weighted average discount rate%		3.26	%		3.05	%

Summary of Maturities of Lease Liabilities

(in millions) Maturities of lease liabilities:	March 31, 2022
2022	$	20
2023		26
2024		25
2025		24
2026		23
Thereafter		194
Total lease payments		312
Less: imputed interest		(69	)
Total present value of lease liabilities	$	243