8-KOther EventsExhibits & Filings

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Corporate Update (May 10, 2017)

Filed May 10, 2017For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens Bancshares Inc. (FCNCA) announced on May 10, 2017, through an 8-K filing, that its subsidiary, First-Citizens Bank & Trust Company (FCB), entered into an agreement with the Federal Deposit Insurance Corporation (FDIC) on May 5, 2017. This agreement pertains to the purchase of certain assets and assumption of certain liabilities from Guaranty Bank of Milwaukee, Wisconsin, for which the FDIC is acting as Receiver. While the final figures are pending, the acquired assets are estimated to represent less than 3.0 percent of FCNCA's consolidated assets. This transaction is an opportunistic acquisition, likely aimed at expanding market presence or diversifying the loan portfolio in a cost-effective manner, given the FDIC receivership context. Investors should refer to the attached news release (Exhibit 99.1) for more detailed information on the transaction.

Key Highlights

  • 1First Citizens Bancshares Inc. (FCNCA) subsidiary, First-Citizens Bank & Trust Company (FCB), is acquiring assets and assuming liabilities from Guaranty Bank of Milwaukee.
  • 2The transaction is an agreement with the Federal Deposit Insurance Corporation (FDIC), acting as Receiver for Guaranty Bank.
  • 3The acquisition date was May 5, 2017, with the announcement made on May 10, 2017.
  • 4The estimated value of acquired assets is less than 3.0% of FCNCA's consolidated assets, indicating a relatively small scale of the transaction.
  • 5The filing does not provide exact financial figures for the acquisition, noting that the amount of assets acquired has not yet been determined.
  • 6Further details about the transaction are available in FCB's news release dated May 5, 2017, attached as Exhibit 99.1 to the filing.

Frequently Asked Questions

This is an 8-K Current Report filing by First Citizens Bancshares Inc. (FCNCA) to disclose a material event. Specifically, it reports on an agreement entered into by its subsidiary, First-Citizens Bank & Trust Company (FCB), with the FDIC to acquire assets and assume liabilities of Guaranty Bank of Milwaukee.

The acquisition is relatively small in scale. The assets acquired are estimated to be less than 3.0 percent of FCNCA's consolidated assets. This suggests it's an opportunistic move rather than a transformative one.

The FDIC is involved because it is acting as the Receiver for Guaranty Bank of Milwaukee, which has presumably failed or is being resolved. The FDIC often facilitates the sale of assets and assumption of liabilities of failed institutions to minimize losses and ensure continuity of services.

More detailed information is expected to be found in the news release issued by FCB on May 5, 2017, which is attached as Exhibit 99.1 to this 8-K filing.