Lease Obligations - Lessee
The Bancorp leases certain banking centers, ATM sites, land for owned buildings and equipment. The Bancorp’s lease agreements typically do not contain any residual value guarantees or any material restrictive covenants.

The following table provides a summary of lease assets and lease liabilities as of December 31:
($ in millions)Consolidated Balance Sheets Caption20252024
Assets
Operating lease ROU assetsOther assets$629 526 
Finance lease ROU assetsBank premises and equipment156 146 
Total ROU assets(a)
$785 672 
Liabilities
Operating lease liabilitiesAccrued taxes, interest and expenses$711 606 
Finance lease liabilitiesLong-term debt174 161 
Total lease liabilities$885 767 
(a)Operating and finance lease ROU assets are recorded net of accumulated amortization of $378 and $75, respectively, as of December 31, 2025, and $328 and $54, respectively, as of December 31, 2024.

The following table presents the components of lease costs for the years ended December 31:
($ in millions)Consolidated Statements of Income Caption202520242023
Lease costs:
Amortization of ROU assets
Net occupancy and equipment expense$22 21 19 
Interest on lease liabilitiesInterest on long-term debt6 
Total finance lease costs$28 27 24 
Operating lease costNet occupancy expense$99 89 87 
Short-term lease costNet occupancy expense1 
Variable lease costNet occupancy expense26 30 29 
Sublease incomeNet occupancy expense(3)(3)(2)
Total operating lease costs$123 117 116 
Total lease costs$151 144 140 

The following table presents undiscounted cash flows for both operating leases and finance leases for 2026 through 2030 and thereafter as well as a reconciliation of the undiscounted cash flows to the total lease liabilities:
As of December 31, 2025 ($ in millions)Operating
Leases
Finance
Leases
Total
2026$101 28 129 
202795 28 123 
202887 28 115 
202978 17 95 
203069 11 80 
Thereafter546 101 647 
Total undiscounted cash flows$976 213 1,189 
Less: Difference between undiscounted cash flows and discounted cash flows265 39 304 
Present value of lease liabilities$711 174 885 

The following table presents the weighted-average remaining lease term and weighted-average discount rate as of December 31:
20252024
Weighted-average remaining lease term (years):
Operating leases12.8411.57
Finance leases11.2512.66
Weighted-average discount rate:
Operating leases4.45 %4.08 
Finance leases3.78 3.80 
The following table presents information related to lease transactions for the years ended December 31:
($ in millions)202520242023
Cash paid for amounts included in the measurement of lease liabilities:(a)
Operating cash flows from operating leases$97 95 91 
Operating cash flows from finance leases6 
Financing cash flows from finance leases19 18 16 
Gains on sale-leaseback transactions — 
(a)The cash flows related to short-term and variable lease payments are not included in the amounts presented as they were not included in the measurement of lease liabilities.

Historical Timeline

Fiscal YearFiled
2025Feb 24, 2026Showing above
2024Feb 24, 2025
2023Feb 27, 2024
2022Feb 24, 2023
2021Feb 25, 2022
2020Feb 26, 2021
2018Mar 1, 2019
2017Feb 28, 2018
2016Feb 24, 2017
2015Feb 25, 2016

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.