Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 38

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 38
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 all of our lease liabilities relate to United States real estate leases under operating lease arrangements. Our real estate leases have remaining lease terms of up to 33 years. Our lease terms may include options to extend or terminate the lease, and our operating leases have renewal terms that can extend from 1 to 25 years. The options are included in the lease term when it is determined that it is reasonably certain the option will be exercised. The following table presents supplemental balance sheet information and remaining weighted average lease terms and discount rates: Supplemental Lease Informationdollars in millionsClassificationMarch 31, 2025December 31, 2024Lease assets:Operating lease ROU assetsOther assets$300 $316 Finance leasesPremises and equipment35 15 Total lease assets$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.