Company: FCNCB
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000798941-25-000050
Chunk: 378

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 378
---
7)— 8,709 8,419 290 3 Deposits2 3 14 (1)(28)2 14 (12)(86)

(1)    Net rental income on operating lease equipment; noninterest income, net of depreciation and maintenance; noninterest expense, net of depreciation and maintenance; revenue, net of depreciation and maintenance; and PPNR are non-GAAP measures. Refer to the “Non-GAAP Financial Measurements” section of this MD&A for a reconciliation from the most comparable GAAP measure to the non-GAAP measure.  

(2) Total noninterest income includes rental income on operating lease equipment and all other noninterest income. 

(3) Total noninterest expense includes depreciation on operating lease equipment. 

79

Rail segment net income for the current quarter decreased $2 million compared to the linked quarter, mostly due to higher maintenance and other operating lease expenses, partially offset by lower all other noninterest expense, largely due to the linked quarter including an accrual for the previously discussed vendor dispute.

Rail segment net income for the current YTD decreased $12 million compared to the prior YTD, mostly due to lower NII and higher total noninterest expense, partially offset by higher rental income on operating lease equipment. 

•The $24 million decrease in NII was primarily due to higher funding costs, reflective of the increase in operating lease equipment.  

•The $13 million increase in all other noninterest expense was primarily due to the previously mentioned vendor dispute.

•Depreciation on operating lease equipment increased $13 million, reflective of growth in operating lease equipment, and maintenance and other operating lease expenses increased $16 million.

•The $47 million increase in rental income on operating lease equipment reflected higher rental income on portfolio growth and strong repricing.

•The $8 million decrease in income tax expense reflected the decrease in income before income taxes.

Railcar Portfolio

Our fleet is diverse and the average re-pricing of equipment upon lease maturities was 118% of the average prior or expiring lease rate during the current quarter. Railcar utilization, including commitments to lease, was 96.8% at September 30, 2025, compared to 97.6% 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