Total operating lease payments

[Table of Contents](#iafeb83384c73449bb49e90c3c5b8201e_7)  


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| Fifth Third Bancorp and SubsidiariesNotes to Condensed Consolidated Financial Statements (unaudited) |

7. Bank Premises and EquipmentThe following table provides a summary of bank premises and equipment as of:

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| --- | --- | --- | --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |  |  |  |
| ($ in millions) | June 30,2022 | December 31,2021 |
| Equipment | $ | 2,422  |  | 2,392  |  |
| Buildings(a) | 1,660  |  | 1,668  |  |
| Land and improvements(a) | 648  |  | 645  |  |
| Leasehold improvements | 526  |  | 517  |  |
| Construction in progress(a) | 93  |  | 84  |  |
| Bank premises and equipment held for sale: |  |  |
| Land and improvements | 18  |  | 18  |  |
| Buildings | 6  |  | 6  |  |
|  |  |  |
| Accumulated depreciation and amortization | (3,255) |  | (3,210) |  |
| Total bank premises and equipment | $ | 2,118  |  | 2,120  |  |

(a)Buildings, land and improvements and construction in progress included $33 and $39 associated with parcels of undeveloped land intended for future branch expansion at June 30, 2022 and December 31, 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. The Bancorp closed a total of 41 banking centers throughout its footprint during the six months ended June 30, 2022.   
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 $1 million and $2 million for the three months ended June 30, 2022 and 2021, respectively, and $1 million and $4 million for the six months ended June 30, 2022 and 2021, respectively. The recognized impairment losses were recorded in other noninterest income in the Condensed Consolidated Statements of Income.  
8. Operating Lease EquipmentOperating lease equipment was $600 million and $616 million at June 30, 2022 and December 31, 2021, respectively, net of accumulated depreciation of $328 million and $304 million at June 30, 2022 and December 31, 2021, respectively. The Bancorp recorded lease income of $36 million and $39 million relating to lease payments for operating leases in leasing business revenue in the Condensed Consolidated Statements of Income during the three months ended June 30, 2022 and 2021, respectively, and $72 million and $78 million during the six months ended June 30, 2022 and 2021, respectively. Depreciation expense related to operating lease equipment was $30 million and $31 million during the three months ended June 30, 2022 and 2021, respectively, and $59 million and $64 million during the six months ended June 30, 2022 and 2021, respectively. The Bancorp received payments of $72 million and $80 million related to operating leases during the six months ended June 30, 2022 and 2021, respectively.  
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. As a result of these recoverability assessments, the Bancorp recognized an immaterial amount of impairment losses associated with operating lease assets during both the three months ended June 30, 2022 and 2021, and recognized $2 million and $25 million of impairment losses during the six months ended June 30, 2022 and 2021, respectively. The recognized impairment losses were recorded in leasing business revenue in the Condensed Consolidated Statements of Income.  
The following table presents future lease payments receivable from operating leases for the remainder of 2022 through 2027 and thereafter:

|  |  |  |  |  |  |
| --- | --- | --- | --- | --- | --- |
|  |  |  |  |  |  |
| As of June 30, 2022 ($ in millions) | Undiscounted Cash Flows |
| Remainder of 2022 | $ | 69  |  |
| 2023 | 119  |  |
| 2024 | 83  |  |
| 2025 | 57  |  |
| 2026 | 35  |  |
| 2027 | 15  |  |
| Thereafter | 19  |  |
| Total operating lease payments | $ | 397  |  |

  
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