Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 179

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 8
Chunk 179
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 — LessorBancShares leases equipment to commercial end-users under operating lease and finance lease arrangements. The majority of operating lease equipment is long-lived rail equipment, which is typically leased several times over its life. We also lease technology and office equipment, and large and small industrial, medical, and transportation equipment under both operating leases and finance leases.Our Rail operating leases typically do not include purchase options. Many of our finance leases, and other equipment operating leases, offer the lessee the option to purchase the equipment at fair market value or for a nominal fixed purchase option. Many of the leases that do not have a nominal purchase option include renewal provisions resulting in some leases continuing beyond the initial contractual term. Our leases typically do not include early termination options. Continued rent payments are due if leased equipment is not returned at the end of the lease.

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The table that follows presents lease income related to BancShares’ operating and finance leases:Lease Incomedollars in millionsThree Months Ended March 31,20252024Lease income – operating leases$254 $237 Variable lease income – operating leases (1)16 18 Rental income on operating leases270 255 Interest income – sales type and direct financing leases43 43 Variable lease income included in other noninterest income (2)14 16 Interest income – leveraged leases1 1 Total lease income$328 $315 (1)     Primarily includes per diem railcar operating lease rental income earned on a time or mileage usage basis. 

(2) Includes revenue related to insurance coverage on leased equipment and leased equipment property tax reimbursements due from customers. 

 NOTE 7 — GOODWILL AND CORE DEPOSIT INTANGIBLES

GoodwillBancShares had goodwill of $346 million at March 31, 2025 and December 31, 2024. There was no goodwill impairment during the three months ended March 31, 2025 or 2024. Goodwill relates to the General Bank reporting segment. Core Deposit IntangiblesCore deposit intangibles represent the estimated fair value of core deposits and other customer relationships acquired. Core deposit intangibles are being amortized over their estimated useful lives. The following tables summarize the activity for core deposit intangibles:Core Deposit IntangiblesThree Months Ended March 31,dollars in millions2025Balance at beginning of period, net of accumulated amortization $249 Less: amortization for the period15 Balance at