FIRST CITIZENS BANCSHARES INC /DE/FCNCA
FIRST CITIZENS BANCSHARES INC /DE/ Segments Disclosure
NOTE 21 — SEGMENT INFORMATION
Effective January 1, 2025, we made changes to the composition of our reportable segments as further discussed in Note 1—Significant Accounting Policies and Basis of Presentation, and the segment disclosures below for 2024 and 2023 were recast to conform with those segment composition changes.
BancShares’ segments include the General Bank, the Commercial Bank, and Rail. All other financial information not included in the segments is reported in the Corporate section of the segment disclosures. We do not aggregate multiple operating segments into a reportable segment. Therefore, each of our operating segments are reportable segments.
Under our segment expense allocation methodology, allocated expenses increase noninterest expense of the applicable segment(s), with an offsetting decrease to Corporate noninterest expense. “All other noninterest expense” in the segment reporting tables below includes the effect of allocated expenses, resulting in a reduction to expense (or “Contra Expense”) for Corporate.
General Bank
The General Bank segment delivers products and services to consumer and small business clients through our extensive network of branches and various digital channels. We offer a full suite of deposit products, loans (primarily residential mortgages and business and commercial loans), cash management, private banking, wealth management, payment services, and treasury services. We offer conforming and jumbo residential mortgage loans throughout the United States that are primarily originated through branches and retail referrals, employee referrals, internet leads, direct marketing and a correspondent lending channel, as well as through our private banking teams. Our wealth and private banking business offers a customized suite of products and services to individuals and institutional clients, as well as private equity and venture capital professionals and executive leaders of the innovation companies they support. Offerings include brokerage, investment advisory, private stock loans, other secured and unsecured lending products and vineyard development loans, as well as planning-based financial strategies, family office, financial planning, tax planning and trust services. The General Bank segment also includes a community association bank business that supports deposit, cash management and lending to homeowner associations and property management companies.
Revenue is primarily generated from interest income on loans and leases. Noninterest income is primarily generated from fees for banking and advisory services, including lending-related fees, most of the deposit fees and service charges and cardholder services, along with essentially all of the wealth management services income. We primarily originate loans by utilizing our branch network and industry referrals, as well as direct digital marketing efforts. We derive our SBA loans through a network of SBA originators. We periodically purchase loans on a whole-loan basis. We also invest in community development that supports the construction of affordable housing in our communities in line with our CRA initiatives.
Commercial Bank
The Commercial Bank segment provides a range of lending, leasing, capital markets, asset management, and other financial and advisory services, primarily tailored to commercial and middle market companies in a wide range of industries, including energy, healthcare, technology media and telecommunications, maritime, and aerospace and defense. Loans offered are primarily senior secured loans collateralized by accounts receivable, inventory, machinery and equipment, transportation equipment, and/or intangibles, and are often used for working capital, plant expansion, acquisitions, or recapitalizations. These loans include revolving lines of credit and term loans and, depending on the nature of the collateral, may be referred to as collateral-backed loans, asset-based loans or cash flow loans. We provide senior secured loans to developers and other commercial real estate professionals. Additionally, we provide business loans and leases, including both capital and operating leases, through a highly automated credit approval, documentation and funding process.
As disclosed in Note 1—Significant Accounting Policies and Basis of Presentation, Commercial Bank now includes products and services offered to commercial clients and investors across stages, sectors and regions in the innovation ecosystem, as well as private equity and venture capital firms. Loan products are offered through Global Fund Banking and Technology and Healthcare Banking and consist of capital call lines of credit, investor dependent loans, and commercial and industrial loans made primarily to technology, life science and healthcare companies.
We also provide factoring, receivable management, supply chain financing, and secured financing to businesses that operate in several industries. These include apparel, textile, furniture, home furnishings, and consumer electronics. Factoring entails the assumption of credit risk with respect to trade accounts receivable arising from the sale of goods from our factoring clients to their customers that have been factored (i.e., sold or assigned to the factor). Our factoring clients, which are generally manufacturers or importers of goods, are the counterparties on factoring, financing or receivables purchasing agreements to sell trade receivables to us. Our factoring clients’ customers, which are generally retailers, are the account debtors and obligors on trade accounts receivable that have been factored.
Revenue is primarily generated from interest income on loans and leases. Noninterest income is mostly generated from rental income on operating lease equipment, lending-related fees, including most of the capital market fees and international fees, essentially all of the client investment fees, and other revenue from banking services. Noninterest income also includes all of the commissions earned on factoring-related activities. We derive our commercial lending business through direct marketing to borrowers, lessees, manufacturers, vendors, and distributors, as well as through our private equity and venture capital relationships. We also utilize referrals as a source for commercial lending business and may periodically buy participations or syndications of loans and lines of credit, or purchase loans on a whole-loan basis.
Rental income and depreciation expense on operating lease equipment is related to small and large ticket equipment we own and lease to others. Rental income is generally influenced by the size of the operating lease portfolio. Operating lease equipment is subject to depreciation expense over the useful life of the small and large ticket equipment, which is generally 3-10 years.
We offer a full suite of commercial deposit products and services through online and mobile banking platforms, as well as physical locations.
Rail
The Rail segment offers customized leasing and financing solutions on a fleet of railcars and locomotives to railroads and shippers throughout North America. Railcar types include covered hopper cars used to ship grain and agricultural products, plastic pellets, sand, and cement; tank cars for energy products and chemicals; gondolas for coal, steel coil and mill service products; open-top hopper cars for coal and aggregates; boxcars for paper and auto parts; and centerbeams and flat cars for lumber. Revenue is generated primarily from rental income on operating lease equipment, which is included in noninterest income, and to a lesser extent, gains on sale of leasing equipment. Rental income is generally influenced by the size of the operating lease portfolio, utilization of the railcars, re-pricing of equipment renewed upon lease maturities, and pricing on new leases. Re-pricing refers to the rental rate in the renewed equipment contract compared to the prior contract.
Operating lease equipment is subject to depreciation expense over the useful life of the rail equipment, which is generally longer in duration, 40-50 years. The Rail segment leases railcars, primarily pursuant to full-service lease contracts under which we, as lessor, are responsible for railcar maintenance and repair. Maintenance and other operating lease expenses relate to equipment ownership and leasing costs associated with the railcar portfolio and tend to be variable due to timing and the number of railcars coming on or off lease as well as asset condition.
Corporate
All other financial information not included in the segments is reported in Corporate. Corporate contains BancShares’ centralized treasury function, which manages the investment security portfolio, interest-earning deposits at banks and corporate/wholesale funding (e.g., borrowings, Direct Bank deposits and brokered deposits). Corporate deposits are primarily comprised of Direct Bank deposits.
Corporate includes interest income on investment securities and interest-earning deposits at banks; interest expense for borrowings, Direct Bank deposits, and brokered deposits; as well as funds transfer pricing allocations. Noninterest income includes gains or losses on sales of investment securities, fair value adjustments on marketable equity securities, and income from bank owned life insurance. Personnel cost in Corporate includes the personnel costs not allocated to the operating segments. Corporate includes acquisition-related expenses and certain items related to accounting for business combinations, such as gains on acquisitions, Day 2 Provision for Credit Losses and discount accretion income for certain acquired loans. Corporate also includes the offsetting impacts of Allocated Expenses as discussed above.
Segment Results and Select Period End Balances
The following tables present the condensed income statements by segment and include the significant segment expenses and measure of segment profit or loss.
| dollars in millions | Year Ended December 31, 2025 | ||||||||||||||||||||||||||||
| General Bank | Commercial Bank | Rail | Corporate (1) | BancShares (2) | |||||||||||||||||||||||||
| Net interest income (expense) | $ | 3,299 | $ | 3,205 | $ | (213) | $ | 523 | $ | 6,814 | |||||||||||||||||||
| Rental income on operating lease equipment | — | 219 | 877 | — | 1,096 | ||||||||||||||||||||||||
| All other noninterest income | 664 | 906 | 16 | 45 | 1,631 | ||||||||||||||||||||||||
| Total noninterest income | 664 | 1,125 | 893 | 45 | 2,727 | ||||||||||||||||||||||||
| Total revenue | 3,963 | 4,330 | 680 | 568 | 9,541 | ||||||||||||||||||||||||
| Depreciation on operating lease equipment | — | 175 | 223 | — | 398 | ||||||||||||||||||||||||
| Maintenance and other operating lease expenses | — | — | 244 | — | 244 | ||||||||||||||||||||||||
| Personnel cost | 838 | 737 | 26 | 1,693 | 3,294 | ||||||||||||||||||||||||
| Acquisition-related expenses | — | — | — | 141 | 141 | ||||||||||||||||||||||||
All other noninterest expense (3) | 1,493 | 1,686 | 72 | (1,272) | 1,979 | ||||||||||||||||||||||||
| Total noninterest expense | 2,331 | 2,598 | 565 | 562 | 6,056 | ||||||||||||||||||||||||
| Provision for credit losses | 77 | 437 | — | — | 514 | ||||||||||||||||||||||||
| Income before income taxes | 1,555 | 1,295 | 115 | 6 | 2,971 | ||||||||||||||||||||||||
| Income tax expense | 380 | 320 | 28 | 37 | 765 | ||||||||||||||||||||||||
| Net income (loss) | $ | 1,175 | $ | 975 | $ | 87 | $ | (31) | $ | 2,206 | |||||||||||||||||||
| Select Period End Balances | |||||||||||||||||||||||||||||
| Loans and leases | $ | 64,958 | $ | 82,910 | $ | 62 | $ | — | $ | 147,930 | |||||||||||||||||||
| Operating lease equipment, net | — | 739 | 8,882 | — | 9,621 | ||||||||||||||||||||||||
| Investment securities | — | — | — | 41,564 | 41,564 | ||||||||||||||||||||||||
| Deposits | 74,796 | 41,532 | 2 | 45,248 | 161,578 | ||||||||||||||||||||||||
(1) Corporate includes all other financial information that is not included in the reportable segments. | |||||||||||||||||||||||||||||
(2) In the segment reporting table above, there are no reconciling differences between BancShares and the aggregate of all reportable segments and Corporate. | |||||||||||||||||||||||||||||
(3) All other noninterest expense represents “other segment items” under ASC 280 and primarily includes Allocated Expenses, net occupancy expense, equipment expense, professional fees, third-party processing fees, FDIC insurance expense, marketing expense, and intangible amortization. All other noninterest expense is presented net of Allocated Expenses in the segment reporting table above, resulting in Contra Expense for Corporate as further discussed above. | |||||||||||||||||||||||||||||
| Year Ended December 31, 2024 | |||||||||||||||||||||||||||||
| General Bank | Commercial Bank | Rail | Corporate (1) | BancShares (2) | |||||||||||||||||||||||||
| Net interest income (expense) | $ | 2,951 | $ | 3,403 | $ | (186) | $ | 975 | $ | 7,143 | |||||||||||||||||||
| Rental income on operating lease equipment | — | 227 | 821 | — | 1,048 | ||||||||||||||||||||||||
| All other noninterest income | 612 | 882 | 14 | 59 | 1,567 | ||||||||||||||||||||||||
| Total noninterest income | 612 | 1,109 | 835 | 59 | 2,615 | ||||||||||||||||||||||||
| Total revenue | 3,563 | 4,512 | 649 | 1,034 | 9,758 | ||||||||||||||||||||||||
| Depreciation on operating lease equipment | — | 185 | 209 | — | 394 | ||||||||||||||||||||||||
| Maintenance and other operating lease expenses | — | — | 219 | — | 219 | ||||||||||||||||||||||||
| Personnel cost | 783 | 741 | 25 | 1,529 | 3,078 | ||||||||||||||||||||||||
| Acquisition-related expenses | — | — | — | 210 | 210 | ||||||||||||||||||||||||
All other noninterest expense (3) | 1,342 | 1,626 | 59 | (1,193) | 1,834 | ||||||||||||||||||||||||
| Total noninterest expense | 2,125 | 2,552 | 512 | 546 | 5,735 | ||||||||||||||||||||||||
| Provision for credit losses | 135 | 296 | — | — | 431 | ||||||||||||||||||||||||
| Income before income taxes | 1,303 | 1,664 | 137 | 488 | 3,592 | ||||||||||||||||||||||||
| Income tax expense | 362 | 442 | 36 | (25) | 815 | ||||||||||||||||||||||||
| Net income | $ | 941 | $ | 1,222 | $ | 101 | $ | 513 | $ | 2,777 | |||||||||||||||||||
| Select Period End Balances | |||||||||||||||||||||||||||||
| Loans and leases | $ | 64,887 | $ | 75,272 | $ | 62 | $ | — | $ | 140,221 | |||||||||||||||||||
| Operating lease equipment, net | — | 750 | 8,573 | — | 9,323 | ||||||||||||||||||||||||
| Investment securities | — | — | — | 44,090 | 44,090 | ||||||||||||||||||||||||
| Deposits | 72,956 | 40,026 | 18 | 42,229 | 155,229 | ||||||||||||||||||||||||
| dollars in millions | Year Ended December 31, 2023 | ||||||||||||||||||||||||||||
| General Bank | Commercial Bank | Rail | Corporate (1) | BancShares (2) | |||||||||||||||||||||||||
| Net interest income (expense) | $ | 2,560 | $ | 2,682 | $ | (141) | $ | 1,611 | $ | 6,712 | |||||||||||||||||||
| Rental income on operating lease equipment | — | 231 | 740 | — | 971 | ||||||||||||||||||||||||
| All other noninterest income | 526 | 756 | 5 | 9,817 | 11,104 | ||||||||||||||||||||||||
| Total noninterest income | 526 | 987 | 745 | 9,817 | 12,075 | ||||||||||||||||||||||||
| Total revenue | 3,086 | 3,669 | 604 | 11,428 | 18,787 | ||||||||||||||||||||||||
| Depreciation on operating lease equipment | — | 179 | 192 | — | 371 | ||||||||||||||||||||||||
| Maintenance and other operating lease expenses | — | — | 222 | — | 222 | ||||||||||||||||||||||||
| Personnel cost | 734 | 599 | 22 | 1,281 | 2,636 | ||||||||||||||||||||||||
| Acquisition-related expenses | — | — | — | 470 | 470 | ||||||||||||||||||||||||
All other noninterest expense (3) | 1,259 | 1,468 | 50 | (1,141) | 1,636 | ||||||||||||||||||||||||
| Total noninterest expense | 1,993 | 2,246 | 486 | 610 | 5,335 | ||||||||||||||||||||||||
| Provision for credit losses | 53 | 606 | — | 716 | 1,375 | ||||||||||||||||||||||||
| Income before income taxes | 1,040 | 817 | 118 | 10,102 | 12,077 | ||||||||||||||||||||||||
| Income tax expense | 279 | 213 | 31 | 88 | 611 | ||||||||||||||||||||||||
| Net income | $ | 761 | $ | 604 | $ | 87 | $ | 10,014 | $ | 11,466 | |||||||||||||||||||
| Select Period End Balances | |||||||||||||||||||||||||||||
| Loans and leases | $ | 61,245 | $ | 72,034 | $ | 23 | $ | — | $ | 133,302 | |||||||||||||||||||
| Operating lease equipment, net | — | 780 | 7,966 | — | 8,746 | ||||||||||||||||||||||||
| Investment securities | — | — | — | 29,999 | 29,999 | ||||||||||||||||||||||||
| Deposits | 68,507 | 38,179 | 13 | 39,155 | 145,854 | ||||||||||||||||||||||||
(1) Corporate includes all other financial information that is not included in the reportable segments. | |||||||||||||||||||||||||||||
(2) In the segment reporting table above, there are no reconciling differences between BancShares and the aggregate of all reportable segments and Corporate. | |||||||||||||||||||||||||||||
(3) All other noninterest expense represents “other segment items” under ASC 280 and primarily includes Allocated Expenses, net occupancy expense, equipment expense, professional fees, third-party processing fees, FDIC insurance expense, marketing expense, and intangible amortization. All other noninterest expense is presented net of Allocated Expenses in the segment reporting table above, resulting in Contra Expense for Corporate as further discussed above. | |||||||||||||||||||||||||||||
Historical Timeline
| Fiscal Year | Filed | |
|---|---|---|
| 2025 | Feb 24, 2026 | Showing above |
| 2024 | Feb 21, 2025 | |
| 2023 | Feb 23, 2024 | |
| 2022 | Feb 24, 2023 | |
About Segments Disclosures
Segment disclosures break a company into its reportable operating units, revealing revenue, profit, and asset allocation that consolidated financial statements obscure. Under ASC 280, segments must match how the chief operating decision maker views the business, providing a window into internal management structure and resource allocation priorities.
Key signals: compare segment margins to identify which units drive profitability and which destroy value. Watch for changes in the number of reportable segments — segment aggregation or disaggregation often coincides with strategic shifts or attempts to obscure declining performance. Intersegment elimination patterns reveal internal pricing practices. The reconciliation between segment totals and consolidated figures exposes corporate overhead allocation and unallocated items. Geographic revenue concentration highlights regulatory and currency exposure. Compare segment-level capital expenditure against segment revenue to assess where management is investing for future growth versus harvesting existing assets.