Company: FCNCB
Filing Date: 2025-05-09
Form Type: 10-Q
Source: 0000798941-25-000024
Chunk: 312

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-05-09
Form: 10-Q
Item: Item 2
Chunk 312
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 table below.

•The increase in personnel cost of $17 million was mainly due to merit-based compensation increases, net staff additions, and seasonal increases in employee benefits and payroll taxes.

•The increase in marketing expense of $8 million was primarily due to marketing for Direct Bank deposits.

•The increase in third-party processing fees of $6 million was largely a result of higher transaction volume and additional services.

•The decrease in professional fees of $5 million was mostly related to lower consulting costs.

•The increase in FDIC insurance expense of $5 million was largely due to a higher FDIC insurance rate and an increase in average assets. 

•The decrease in depreciation on operating lease equipment of $3 million is discussed in the Commercial Bank and Rail segments in the section entitled “Results by Segment” of this MD&A. 

•The increase in maintenance and other operating lease expenses of $3 million is discussed in the Rail segment in the section entitled “Results by Segment” of this MD&A. 

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The following table presents the major components of acquisition-related expenses:

Table 12

Acquisition-related Expenses

dollars in millionsThree Months EndedMarch 31, 2025December 31, 2024March 31, 2024Personnel cost$15 $21 $29 Professional fees26 32 26 Asset impairment— 7 — Other acquisition-related expense1 2 3 Total acquisition-related expense$42 $62 $58 

Acquisition-related personnel cost primarily includes severance and retention costs for employees associated with business combinations. These amounts are recognized over the requisite service period, if any.

Acquisition-related professional fees mainly include consulting, legal and accounting costs associated 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 13

Income Tax Data

dollars in millionsThree Months EndedMarch 31, 2025December 31, 2024March 31, 2024Income before income taxes$651 $736 $1,004 Income tax expense$168 $36 $273 Effective income tax rate25.8 %4.9 %27.2 %

The effective income tax rate (“ETR”) was 25.8% for the Current Quarter, which is within our projected range for the 2025 ETR, compared to 4.9% for the