Company: FCNCB
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000798941-25-000040
Chunk: 31

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 31
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 with business combinations and the related integration, optimization, and business process reengineering, including enhancements to technology. These amounts are expensed as incurred. 

Income Taxes

Table 14

Income Tax Data

dollars in millionsThree Months EndedIncrease (Decrease) from Linked QuarterSix Months EndedIncrease (Decrease)Year to DateJune 30, 2025March 31, 2025June 30, 2024June 30, 2025June 30, 2024Income before income taxes$758 $651 $979 $107 17 %$1,409 $1,983 $(574)(29)%Income tax expense$183 $168 $272 $15 9 %$351 $545 $(194)(36)%Effective income tax rate24.1 %25.8 %27.8 %24.9 %27.5 %

The ETR was 24.1% for the Current Quarter compared to 25.8% for the Linked Quarter. The lower ETR for the Current Quarter was mostly due to the revaluation of the deferred tax liability due to a change in state law enacted in the Current Quarter. The ETR was 24.9% for the Current YTD compared to 27.5% for the Prior YTD. The decrease for the Current YTD ETR compared to the Prior YTD was primarily due to a reduction in the state and local income tax rate.  

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.

Refer to the “Executive Overview—Recent Events” for a brief discussion on tax reform legislation enacted on July 4, 2025.

RESULTS BY SEGMENT

We made changes to the composition of our reportable segments during the first quarter of 2025 as