First Citizens BancShares, Inc. is a bank holding company, which engages in the provision of retail and commercial banking services through its subsidiary. It operates through the following business lines: Card Holder and Merchant Services; Services Charges on Deposit Accounts; Wealth Management Services; Other Service Charges and Fees; Insurance Commissions; ATM Income; and Other. The Card Holder and Merchant Services business lines include interchange fees from customer debut and credit card transactions. The Services Charges on Deposit Accounts business line represent monthly account maintenance and transaction-based service fees. The Wealth Management Services business line comprises sales commissions on various product offerings, transaction fees, and trust and asset management fees. The Other Service Charges and Fees business line encompasses check cashing fees, international banking fees, internet banking fees, wire transfer fees and safe deposit fees. The Insurance Commissions business line focuses in the commissions earned on the issuance of insurance products and services. The ATM income covers customers and non-customers for engaging in an ATM transaction. The Other business line composes several forms of recurring revenue such as FHLB dividends and income earned on changes in the cash surrender value of bank-owned life insurance. The company was founded on August 7, 1986 and is headquartered in Raleigh, NC.
The year-to-date taxable-equivalent net interest margin for 2019 was 3.77%, compared to 3.69% during 2018. The margin increase was primarily due to improved yields on loans and investments. This increase was partially offset by higher deposit costs. During 2019, yields on loans, investment securities and overnight investments increased 19 basis points to 4.58%, 19 basis points to 2.33% and 32 basis points to 2.03%, respectively.
Net interest income was $1.31 billion for the year ended December 31, 2019, an increase of $102.7 million, or 8.5%, compared to 2018. Interest income increased $158.4 million primarily due to increased average loans, coupled with increased yields on loans and investments. Interest expense increased by $55.8 million primarily due to an increase in rates paid on deposit accounts.
Interest income from loans and leases was $1.22 billion during 2019, an increase of $144.1 million compared to 2018. The increase was primarily due to increased average loans in the commercial, business and residential loan portfolios as well as increased yields, primarily on commercial and business loans and equity lines.