Leases (Tables)

9 Months Ended

Sep. 30, 2022

Leases [Abstract]

Components of Lease Income

The components of lease income were as follows:

(in millions)	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022		For the Three Months Ended September 30, 2021		For the Nine Months Ended September 30, 2021
Interest income on lease financing (1)	$	14	$	38	$	13	$	41

(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)	September 30, 2022		December 31, 2021
Net investment in the lease - lease payments receivable	$	1,722	$	1,790
Net investment in the lease - unguaranteed residual assets		59		75
Total lease payments	$	1,781	$	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 September 30, 2022, as well as the reconciliation to the total amount of receivables recognized in the Consolidated Statements of Condition:

(in millions)	September 30, 2022
2022	$	3
2023		86
2024		186
2025		375
2026		373
Thereafter		758
Total lease payments		1,781
Plus: deferred origination costs		20
Less: unearned income		(84	)
Total lease finance receivables, net	$	1,717

Summary of Components of Lease Expense

The components of lease expense were as follows:

(in millions)	For the Three Months Ended September 30, 2022		For the Nine Months Ended September 30, 2022		For the Three Months Ended September 30, 2021		For the Nine Months Ended September 30, 2021
Operating lease cost	$	7	$	21	$	7	$	20
Sublease income		—		—		—		—
Total lease cost	$	7	$	21	$	7	$	20

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 September 30, 2022		For the Nine Months Ended September 30, 2022		For the Three Months Ended September 30, 2021		For the Nine Months Ended September 30, 2021
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	7	$	21	$	7	$	20

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)	September 30, 2022			December 31, 2021
Operating Leases:
Operating lease right-of-use assets	$	227		$	249
Operating lease liabilities	$	227		$	249
Weighted average remaining lease term	13 years			16 years
Weighted average discount rate%		3.23	%		3.05	%

Summary of Maturities of Lease Liabilities

(in millions) Maturities of lease liabilities:	September 30, 2022
2022	$	7
2023		27
2024		26
2025		25
2026		24
Thereafter		171
Total lease payments		280
Less: imputed interest		(53	)
Total present value of lease liabilities	$	227