Company: FCNCB
Filing Date: 2025-08-08
Form Type: 10-Q
Source: 0000798941-25-000040
Chunk: 40

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-08-08
Form: 10-Q
Item: Item 2
Chunk 40
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8,716 8,640 8,178 76 1 8,716 8,178 538 7 Deposits3 12 10 (9)(77)3 10 (7)(73)

(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. 

Rail segment net income for the Current Quarter decreased $3 million compared to the Linked Quarter, mostly due to higher all other noninterest expense, partially offset by higher net rental income. 

•The $12 million increase in all other noninterest expense was primarily due to the previously mentioned vendor dispute.

•The $5 million increase in net rental income on operating lease equipment reflected higher rental income, mainly the result of fleet additions and strong repricing of renewed equipment. Depreciation 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