Operating Leases
The Company leases branch locations, corporate office space, and equipment under non-cancelable operating leases. Liabilities to make future lease payments are recorded in other liabilities, while right-of-use assets are recorded in other assets on the Company's Consolidated Balance Sheets.
The following table presents the balance sheet information related to leases as of December 31, 2025 and 2024: | | | | | | | | | | | | | | |
| (in millions) | | December 31, 2025 | | December 31, 2024 |
| Leases | | |
| Operating lease right-of-use assets | | $ | 154 | | | $ | 111 | |
| Operating lease liabilities | | $ | 166 | | | $ | 126 | |
The following table presents the weighted-average operating lease term and weighted-average discount rate as of December 31, 2025 and 2024: | | | | | | | | | | | | | | |
| | December 31, 2025 | | December 31, 2024 |
| Weighted-average remaining lease term (years) | | 5.4 | | 5.8 |
| Weighted-average discount rate | | 4.17 | % | | 4.23 | % |
The following table presents the components of lease expense for the years ended December 31, 2025, 2024, and 2023: | | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | |
| Lease Costs | | 2025 | | 2024 | | 2023 |
| Operating lease costs | | $ | 37 | | | $ | 33 | | | $ | 37 | |
| Short-term lease costs | | 1 | | | 1 | | | 1 | |
| | | | | | |
| Sublease income | | (2) | | | (3) | | | (3) | |
| Net lease costs | | $ | 36 | | | $ | 31 | | | $ | 35 | |
The Company performs impairment assessments for ROU assets when events or changes in circumstances indicate that their carrying values may not be recoverable. For the years ended December 31, 2025 and 2024, there were no ROU asset impairments. For the year ended December 31, 2023, there were $3 million in ROU asset impairments recorded in other expenses. The impairments were due to the closures or consolidations of leased locations.
The following table presents the supplemental cash flow information related to leases for the years ended December 31, 2025, 2024, and 2023:
| | | | | | | | | | | | | | | | | | | | |
| (in millions) | | | | | | |
Cash Flows | | 2025 | | 2024 | | 2023 |
| Cash paid for amounts included in the measurement of lease liabilities: | | | | | | |
| Operating cash flows from operating leases | | $ | 38 | | | $ | 33 | | | $ | 38 | |
| Right of use assets obtained in exchange for new operating lease liabilities | | $ | 72 | | | $ | 23 | | | $ | 73 | |
The following table presents the maturities of lease liabilities as of December 31, 2025: | | | | | |
| (in millions) | Operating |
| Year | Leases |
| 2026 | $ | 47 | |
| 2027 | 38 | |
| 2028 | 32 | |
| 2029 | 24 | |
| 2030 | 16 | |
| Thereafter | 30 | |
| Total lease payments | 187 | |
| Less: imputed interest | (21) | |
| Present value of lease liabilities | $ | 166 | |
About Leases Disclosures
Lease disclosures under ASC 842 provide a comprehensive view of a company's leased asset portfolio, including the split between operating and finance leases, discount rates used to present-value future payments, and the maturity schedule of lease obligations. This section reveals a significant source of off-balance-sheet commitments that were largely hidden before the current standard.
Key signals: the weighted-average discount rate affects the size of recorded lease liabilities — a higher rate reduces the reported obligation, so compare the chosen rate against the company's incremental borrowing rate. The operating versus finance lease mix affects both EBITDA and operating income presentation. Watch the maturity table for concentration risk: large payment cliffs in specific years may create cash flow pressure. Variable lease payments excluded from the liability measurement represent real obligations that do not appear on the balance sheet. Compare total lease costs against prior-year operating lease expense to assess the true economic burden.