8-KOther Events

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Corporate Update (Nov 3, 2008)

Filed November 3, 2008For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens Bancshares Inc. (FCNCA) has announced its decision to waive its right to participate in the Troubled Asset Relief Program's (TARP) Capital Purchase Program. This decision reflects the company's strong capital position as of September 30, 2008, which the company states is adequate to support its growth initiatives for the foreseeable future. Investors should view this as a sign of the company's financial stability and confidence in its organic growth prospects, rather than a reliance on government intervention during a challenging economic period.

Key Highlights

  • 1First Citizens Bancshares Inc. (FCNCA) has elected to opt out of the TARP Capital Purchase Program.
  • 2The company stated it is well-capitalized as of September 30, 2008.
  • 3FCNCA believes its current capital levels are sufficient for future growth opportunities.
  • 4Detailed capital ratios as of September 30, 2008, are provided, showing significant buffers above minimum and 'well-capitalized' requirements.
  • 5Tier 1 risk-based capital was 13.01%, well above the 5.00% 'well-capitalized' threshold.
  • 6Total risk-based capital was 15.33%, exceeding the 10.00% 'well-capitalized' threshold.
  • 7Tier 1 leverage capital was 10.01%, significantly higher than the 6.00% 'well-capitalized' requirement.

Frequently Asked Questions

The company waived its right because it believes it is well-capitalized and has sufficient capital to fund future growth without needing government assistance through the Capital Purchase Program.

Being 'well-capitalized' refers to meeting higher capital ratio thresholds set by regulators, indicating a stronger financial buffer to absorb potential losses and maintain stability, especially during economic downturns. First Citizens Bancshares significantly exceeds these 'well-capitalized' requirements across key metrics.

As of September 30, 2008, the company reported strong capital ratios. For example, its Tier 1 risk-based capital was 13.01%, substantially higher than the 5.00% required to be considered 'well-capitalized'.

No, the company explicitly stated that its current capital is adequate for growth opportunities for the foreseeable future, implying that opting out of TARP does not hinder their expansion strategies.