FIFTH THIRD BANCORP
For the period ended Dec 31, 2023. Filed Feb 27, 2024.
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FY2023 · Filed Feb 27, 2024
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Bank Premises and Equipment
- Bank Premises and Equipment
The following table provides a summary of bank premises and equipment as of December 31:
| ($ in millions) · Estimated Useful Life · 2023 · 2022 | |||||
|---|---|---|---|---|---|
| Equipment | 1 | - | 20 years | $2,578 | 2,492 |
| Buildings(a) | 1 | - | 30 years | 1,742 | 1,699 |
| Leasehold improvements | 1 | - | 30 years | 685 | 568 |
| Land and improvements(a) | 618 | 640 | |||
| Construction in progress(a) | 180 | 124 | |||
| Bank premises and equipment held for sale: | |||||
| Land and improvements | 15 | 17 | |||
| Buildings | 4 | 7 | |||
| Accumulated depreciation and amortization | (3,473) | (3,360) | |||
| Total bank premises and equipment | $2,349 | 2,187 | |||
(a)Buildings, land and improvements and construction in progress included $9 and $27 associated with parcels of undeveloped land intended for future branch expansion at December 31, 2023 and 2022, respectively.
Depreciation and amortization expense related to bank premises and equipment, including amortization of finance lease ROU assets, was $292 million, $273 million and $270 million for the years ended December 31, 2023, 2022 and 2021, respectively.
The Bancorp monitors changing customer preferences associated with the channels it uses for banking transactions to evaluate the efficiency, competitiveness and quality of the customer service experience in its consumer distribution network. As part of this ongoing assessment, the Bancorp may determine that it is no longer fully committed to maintaining full-service banking centers at certain locations. Similarly, the Bancorp may also determine that it is no longer fully committed to building banking centers on certain parcels of land which had previously been held for future branch expansion. As a result, the Bancorp transferred certain parcels of land with a carrying value of $23 million to OREO during the year ended December 31, 2023. Impairment losses of $8 million were recorded for the year ended December 31, 2023 upon transfer to OREO. The Bancorp closed a total of 30 banking centers throughout its footprint during the year ended December 31, 2023.
The Bancorp performs assessments of the recoverability of long-lived assets when events or changes in circumstances indicate that their carrying values may not be recoverable. Impairment losses associated with such assessments and lower of cost or market adjustments were $2 million, $9 million and $7 million for the years ended December 31, 2023, 2022 and 2021, respectively. The recognized impairment losses were recorded in other noninterest income in the Consolidated Statements of Income.
152 Fifth Third Bancorp
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