Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 92

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 92
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 Taxes

Table 13

Income Tax Data

dollars in millionsThree Months EndedMarch 31, 2025December 31, 2024March 31, 2024Income before income taxes$651 $736 $1,004 Income tax expense$168 $36 $273 Effective income tax rate25.8 %4.9 %27.2 %

The effective income tax rate (“ETR”) was 25.8% for the Current Quarter, which is within our projected range for the 2025 ETR, compared to 4.9% for the Linked Quarter. The lower income tax expense and ETR for the Linked Quarter was primarily driven by the revaluation of the deferred tax liability due to a change in the state tax rate applied in the Linked Quarter.  The tax rate applied in the Linked Quarter declined after we filed our first income tax returns that included the SVBB Acquisition.  

The ETR is impacted by a number of factors, including the relative mix of domestic and international earnings, effects of changes in enacted tax laws, adjustments to valuation allowances, and discrete items. The ETR in future periods may vary from the Current Quarter ETR due to changes in these factors.

BancShares monitors and evaluates the potential impact of current events on the estimates used to establish income tax expense and income tax liabilities. On a periodic basis, we evaluate our income tax positions based on current tax law and positions taken by various tax auditors within the jurisdictions where BancShares is required to file income tax returns, as well as potential or pending audits or assessments by tax auditors. Refer to Note 15—Income Taxes for additional information.

RESULTS BY SEGMENT

We made changes to the composition of our reportable segments during the first quarter of 2025 as further discussed in Note 1—Significant Accounting Policies and Basis of Presentation and briefly summarized in the “Recent Events” section earlier in this MD&A. Segment disclosures for 2024 periods included in this Form 10-Q were recast to reflect the changes.

BancShares’ segments include the General Bank, the Commercial Bank, SVB Commercial, and Rail. All other financial information not included in the segments is reported in the Corporate section of the segment disclosures. Certain noninterest expenses are directly incurred by a segment, while others are not. Noninterest expenses not directly incurred by a segment are included in Corporate unless allocated to a segment (“Allocated Expenses”). Under our segment expense allocation methodology, Allocated Expenses