8-KOther EventsExhibits & Filings

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Corporate Update (Jul 14, 2011)

Filed July 14, 2011For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens BancShares, Inc. (FCNCA) announced a significant strategic move through its wholly-owned subsidiary, First-Citizens Bank & Trust Company (FCB), entering into an agreement with the FDIC on July 8, 2011. This agreement involves the purchase of substantially all assets and the assumption of the majority of liabilities of Colorado Capital Bank, a distressed institution based in Castle Rock, Colorado. The transaction is structured to be accretive, with FCB acquiring these assets at a discount of $154.9 million, notably without paying any premium for the deposits.

Key Highlights

  • 1Acquisition of substantially all assets and majority of liabilities of Colorado Capital Bank.
  • 2Transaction structured with a discount of $154.9 million, indicating a favorable purchase price.
  • 3No deposit premium was paid for the acquired deposits.
  • 4The FDIC is acting as Receiver for Colorado Capital Bank.
  • 5Acquired loans and other real estate are covered by FDIC loss share agreements, mitigating potential losses for FCB.
  • 6Colorado Capital Bank had total assets of $717.5 million as of March 31, 2011.
  • 7The filing includes the Purchase and Assumption Agreement and a related press release as exhibits.

Frequently Asked Questions

The main purpose of this 8-K filing is to announce that First Citizens BancShares' subsidiary, First-Citizens Bank & Trust Company, has entered into an agreement with the FDIC to acquire assets and assume liabilities from Colorado Capital Bank.

First-Citizens Bank & Trust Company will purchase substantially all assets and assume the majority of liabilities of Colorado Capital Bank at a discount of $154.9 million, with no deposit premium. This indicates a potentially accretive transaction for First Citizens.

The acquired loans and other real estate are subject to loss share agreements with the FDIC. Under these agreements, the FDIC will cover certain losses incurred by First-Citizens Bank & Trust Company on these assets, significantly de-risking the acquisition for the bank.

As of March 31, 2011, Colorado Capital Bank reported total assets of $717.5 million, including $598.7 million in loans and leases, and total deposits of $672.7 million.