8-KOther EventsExhibits & Filings

FIRST CITIZENS BANCSHARES INC /DE/ 8-K Report, Corporate Update (Apr 20, 2020)

Filed April 20, 2020For Securities:FCNCAFCNCPFCNCBFCNCOFCNCN

Summary

First Citizens BancShares Inc. (FCNCA) announced the completion of a divestiture of three branches in Western North Carolina. This transaction, involving its subsidiary First-Citizens Bank & Trust Company, saw the sale of these branches to Select Bank & Trust Company. Select Bank assumed deposits and acquired a majority of the assets, including loans, property, and equipment, related to the former Entegra Bank locations in Franklin, Sylva, and Highlands, NC. This divestiture was a requirement stemming from regulatory approval of the merger between Entegra Bank and First Citizens Bank, which was finalized on December 31, 2019. The U.S. Department of Justice and the Federal Reserve Board mandated this sale to address antitrust concerns. While not a significant strategic shift, this action demonstrates the company's commitment to adhering to regulatory requirements post-merger.

Key Highlights

  • 1First Citizens BancShares Inc. divested three Western North Carolina branches.
  • 2The transaction was completed by its subsidiary, First-Citizens Bank & Trust Company.
  • 3Select Bank & Trust Company acquired the branches, including deposits and a majority of assets.
  • 4The divestiture fulfills requirements set by the U.S. Department of Justice and the Federal Reserve Board.
  • 5This action is a condition of the Entegra Bank merger finalized in December 2019.
  • 6The branches were located in Franklin, Sylva, and Highlands, North Carolina.
  • 7The filing also includes an exhibit for the Interactive Data File.

Frequently Asked Questions

The divestiture was a condition set by the U.S. Department of Justice, Antitrust Division, and the Federal Reserve Board as part of the regulatory approval process for the merger of Entegra Bank into First Citizens Bank, completed on December 31, 2019. This was done to address potential antitrust concerns.

Three former Entegra Bank branches in Western North Carolina were sold. Select Bank & Trust Company assumed the deposits and purchased a majority of the loans, property, equipment, and other selected assets associated with these branches.

The filing does not provide specific financial details or the purchase price for this divestiture. However, it is presented as a required regulatory action rather than a strategic decision to exit a market, suggesting its impact is primarily related to fulfilling merger conditions.

These branches are being transferred to Select Bank & Trust Company. Select Bank is assuming the operations, including deposits and a majority of the assets, of these former Entegra Bank locations.