Company: FCNCB
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000798941-25-000010
Chunk: 192

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 192
---
 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.The following table provides the net book value of operating lease equipment (net of accumulated depreciation of $941 million at December 31, 2024, which includes $4 million of impairment on operating lease equipment, and $658 million at December 31, 2023) by equipment type.  Operating Lease Equipmentdollars in millionsDecember 31, 2024December 31, 2023Railcars and locomotives(1)$8,573 $7,966 Other equipment750 780 Total(1)$9,323 $8,746 (1) Includes off-lease rail equipment of $219 million at December 31, 2024 and $253 million at December 31, 2023.

147

The following table presents the components of the finance lease net investment on a discounted basis:Components of Net Investment in Finance Leasesdollars in millionsDecember 31, 2024December 31, 2023Lease receivables$1,764 $1,780 Unguaranteed residual assets235 262 Total net investment in finance leases1,999 2,042 Leveraged lease net investment(1)15 13 Total$2,014 $2,055 (1) Leveraged leases are reported net of non-recourse debt of $2 million at December 31, 2024 and $5 million at December 31, 2023. Our leveraged lease arrangements commenced before the ASC 842, Leases, effective date of January 1, 2019, and continue to be reported under the leveraged lease accounting model. ASC 842 eliminated leveraged lease