Summary
This Form 8-K filing from First Citizens BancShares, Inc. (FCNCA), dated September 15, 2008, addresses inquiries from various stakeholders regarding its investments in Fannie Mae (FNMA) and Freddie Mac (FHLMC). The company clarifies that its investment in FNMA common stock amounts to a mere $8,353, which is deemed immaterial to its consolidated financial statements. Consequently, this investment will be fully written off in the third quarter of 2008. Importantly, the filing states that First Citizens BancShares holds no common stock in Freddie Mac. This disclosure aims to provide transparency and manage investor concerns amidst broader market volatility and specific sector issues related to these government-sponsored enterprises.
Key Highlights
- 1First Citizens BancShares (FCNCA) received shareholder, customer, and media inquiries concerning investments in FNMA and FHLMC.
- 2The company's investment in Federal National Mortgage Association (FNMA) common stock is $8,353.
- 3This FNMA investment is not material to FCNCA's consolidated financial statements.
- 4The $8,353 investment in FNMA will be written off entirely in the third quarter of 2008.
- 5First Citizens BancShares does not own any common stock of the Federal Home Loan Mortgage Corporation (FHLMC).
- 6The filing aims to clarify the company's limited exposure to these specific entities.
Frequently Asked Questions
The total investment in FNMA common stock is $8,353.
No, the filing explicitly states that the $8,353 investment is not material to First Citizens BancShares' consolidated financial statements. The company will write it off in the third quarter of 2008.
No, First Citizens BancShares states that it does not own any common stock of the Federal Home Loan Mortgage Corporation (FHLMC).
The company is filing this Form 8-K to address multiple inquiries received from shareholders, customers, and the media regarding its investments in FNMA and FHLMC, likely due to market concerns surrounding these entities at the time.