Company: FCNCB
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000798941-25-000050
Chunk: 302

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 302
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 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 millionsClassificationSeptember 30, 2025December 31, 2024Lease assets:Operating lease ROU assetsOther assets$305 $316 Finance leasesPremises and equipment67 15 Total lease assets$372 $331 Lease liabilities:Operating leasesOther liabilities$342 $357 Finance leasesOther borrowings67 15 Total lease liabilities$409 $372 Weighted-average remaining lease terms:Operating leases7.3 years7.4 yearsFinance leases8.1 years11.7 yearsWeighted-average discount rate:Operating leases3.10 %2.94 %Finance leases4.20 3.96 As of September 30, 2025, there were no leases that have not yet commenced that would have a material impact on BancShares’ consolidated financial statements.The following table presents components of lease cost:Components of Net Lease Costdollars in millionsThree Months Ended September 30,Nine Months Ended September 30,Classification2025202420252024Operating lease costOccupancy expense$18 $19 $54 $56 Finance lease ROU asset amortizationEquipment expense3 — 6 1 Interest on lease liabilitiesInterest expense - other borrowings1 — 2 — Variable lease cost (1)Occupancy expense4 7 16 22 Sublease income Occupancy expense(1)(1)(4)(4)Net lease cost (1)$25 $25 $74 $75 (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.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. 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