Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 39

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 1
Chunk 39
---
 While lease liabilities are not remeasured because of these changes, these adjustments are treated as variable lease costs and recognized in the period in which the expense is incurred. Sublease income results from leasing excess building space that BancShares is no longer utilizing under operating leases, which have remaining lease terms of up to 12 years.The following table presents supplemental cash flow information related to leases:Supplemental Cash Flow Informationdollars in millionsThree Months Ended March 31,20252024Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$19 $18 Financing cash flows from finance leases1 — ROU assets obtained in exchange for new operating lease liabilities3 17 ROU assets obtained in exchange for new finance lease liabilities22 — 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.

33

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 INTANG