Company: FCNCB
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000798941-25-000040
Chunk: 203

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 203
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iation on operating lease equipment increased $2 million, primarily due to fleet additions. Maintenance and other operating lease expenses decreased $3 million. Maintenance and other operating lease expenses tend to be variable due to timing and the number of railcars coming on or off lease as well as asset condition.

77

Rail segment net income for the Current YTD decreased $9 million compared to the Prior YTD, mostly due to lower NII and higher all other noninterest expenses, partially offset by higher net rental income on operating leases. 

•The $17 million decrease in NII was primarily due to higher funding costs.  

•The $11 million increase in all other noninterest expense was primarily due to the previously mentioned vendor dispute.

•The $15 million increase in net rental income on operating lease equipment reflected higher rental income on portfolio growth and strong repricing, partially offset by higher depreciation and maintenance costs. Depreciation on operating lease equipment increased $10 million, primarily due to growth of the rail assets, and maintenance and other operating lease expenses increased $8 million.

Railcar Portfolio

Our fleet is diverse and the average re-pricing of equipment upon lease maturities was 132% of the average prior or expiring lease rate during the Current Quarter. Railcar utilization, including commitments to lease, was 96.9% at June 30, 2025, stable with 97.0% at December 31, 2024. 

Rail segment customers include all of the U.S. and Canadian Class I railroads (i.e., railroads with annual revenues of approximately $500 million and greater) and other railroads, as well as manufacturers and commodity shippers. Our total operating lease fleet at June 30, 2025 consisted of approximately 127,300 railcars and locomotives. 

The following tables reflect the proportion of railcars by type based on units and net investment, and rail operating lease equipment by obligor industry:

Table 19

Operating Lease Railcar Portfolio by Type (units and net investment)

June 30, 2025March 31, 2025December 31, 2024Railcar TypeTotal Owned Fleet - % Total UnitsTotal Owned Fleet - % TotalNet InvestmentTotal Owned Fleet - % Total UnitsTotal Owned Fleet - % TotalNet InvestmentTotal Owned Fleet - % Total UnitsTotal Owned Fleet - % TotalNet InvestmentCovered hoppers45 %41 %45 %41 %45 %42 %Tank cars28