Company: FCNCB
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000798941-25-000040
Chunk: 129

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 1
Chunk 129
---
18 $19 $36 $37 Finance lease ROU asset amortizationEquipment expense2 — 3 1 Interest on lease liabilitiesInterest expense - other borrowings1 — 1 — Variable lease cost (1)Occupancy expense5 6 12 15 Sublease income Occupancy expense(1)(2)(3)(3)Net lease cost (1)$25 $23 $49 $50 (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 longer utilizing under operating leases, which have remaining lease terms of up to 11 years.

31

The following table presents supplemental cash flow information related to leases:Supplemental Cash Flow Informationdollars in millionsSix Months Ended June 30,20252024Cash paid for amounts included in the measurement of lease liabilities:Operating cash flows from operating leases$40 $37 Operating cash flows from finance leases1 — Financing cash flows from finance leases2 1 ROU assets obtained in exchange for new operating lease liabilities41 22 ROU assets obtained in exchange for new finance lease liabilities48 — 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