Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 178

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 178
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335 $331 Lease liabilities:Operating leasesOther liabilities$340 $357 Finance leasesOther borrowings36 15 Total lease liabilities$376 $372 Weighted-average remaining lease terms:Operating leases7.3 years7.4 yearsFinance leases8.9 years11.7 yearsWeighted-average discount rate:Operating leases2.94 %2.94 %Finance leases4.31 3.96 As of March 31, 2025, there were no leases that have not yet commenced that would have a material impact on BancShares’ consolidated financial statements.

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The following table presents components of lease cost:Components of Net Lease Costdollars in millionsThree Months Ended March 31,Classification20252024Operating lease costOccupancy expense$18 $18 Finance lease ROU asset amortizationEquipment expense1 1 Variable lease cost (1)Occupancy expense7 9 Sublease income Occupancy expense(2)(1)Net lease cost (1)$24 $27 (1) Includes short-term lease cost.Operating lease cost is recognized as a single lease cost on a straight-line basis over the lease term.  For finance leases, the right of use (“ROU”) asset is amortized straight-line over the lease term as equipment expense and interest on the lease liability is recognized separately; however, interest on the lease liability was less than $1 million per year and is therefore not presented in the table above. Variable lease cost includes common area maintenance, property taxes, utilities, and other operating expenses related to leased premises recognized in the period in which the expense was incurred. Certain of our lease agreements also include rental payments adjusted periodically for inflation. While lease liabilities are not remeasured because of these changes, these adjustments are treated as variable lease costs and recognized in the period in which the expense is incurred. Sublease income results from leasing excess building space that BancShares is no longer utilizing under operating leases, which have remaining lease terms of up to 12 years.The following table presents supplemental cash flow information related to leases:Supplemental Cash Flow Informationdollars in millionsThree Months Ended March 31,20252024Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$19 $18 Financing cash flows from finance leases1 — ROU assets obtained in exchange for new operating lease liabilities3 17 ROU assets obtained in exchange for new finance lease liabilities22