About First Citizens BancShares

First Citizens BancShares, Inc. (BancShares) operates as the bank holding company for First-Citizens Bank & Trust Company (FCB) that provides a broad range of financial services to individuals, businesses and professionals. BancShares has expanded through de novo branching and acquisitions and operates a network of branches and offices in 30 states, predominantly located in the Southeast, Mid-Atlantic, the Midwest and Western United States. BancShares provides financial services for a wide range of consumer and commercial clients. This includes retail and mortgage banking, wealth management, small and middle market banking, factoring and leasing. BancShares provides commercial factoring, receivables management and secured financing services to businesses (generally manufacturers or importers of goods) that operate in various industries, including apparel, textile, furniture, home furnishings and consumer electronics. BancShares also provides deposit, cash management and lending to homeowner associations and property management companies. In addition, BancShares owns a fleet of railcars and locomotives that are leased to railroads and shippers. In addition to the company's banking operations, the company provides various investment products and services through FCB's wholly owned subsidiaries, including First Citizens Investor Services, Inc. ('FCIS') and First Citizens Asset Management, Inc. ('FCAM'), and a non-bank subsidiary First Citizens Capital Securities, LLC ('FCCS'). As a registered broker-dealer, FCIS provides a full range of investment products, including annuities, brokerage services and third-party mutual funds. As registered investment advisors, FCIS and FCAM provide investment management services and advice. FCCS is a broker dealer that also provides underwriting and private placement services. BancShares delivers products and services to its customers through an extensive branch network and additionally operates a nationwide digital bank. Services offered at most branches include accepting deposits, cashing checks and providing for consumer and commercial cash needs. Consumer and business customers may also conduct banking transactions through various digital channels. On March 27, 2023 (the 'SVBB Acquisition Date'), FCB acquired substantially all loans and certain other assets and assumed all customer deposits and certain other liabilities, of Silicon Valley Bridge Bank, N.A. ('SVBB') from the Federal Deposit Insurance Corporation (the 'FDIC') pursuant to the terms of a purchase and assumption agreement (the 'SVBB Purchase Agreement') by and among FCB, the FDIC, and the FDIC, as receiver of SVBB (the 'SVBB Acquisition'). SVBB was established following the closure of the former Silicon Valley Bank. BancShares maintains the Silicon Valley Bank brand as Silicon Valley Bank, a division of FCB. Business Segments As of December 31, 2022, BancShares managed its business and reported its financial results in General Banking, Commercial Banking, and Rail segments. General Banking The General Banking segment delivers products and services to consumers and businesses through the company's extensive network of branches and various digital channels. The company offers a full suite of deposit products, loans (primarily residential mortgages and business and commercial loans), cash management, wealth management, payment services, and treasury services. The company's wealth management products and services to individuals and institutional clients include brokerage, investment advisory, and trust services. The company offers conforming and jumbo residential mortgage loans throughout the United States which are primarily originated through branches and retail referrals, employee referrals, internet leads, direct marketing and a correspondent lending channel. The General Banking segment offers nationwide digital banking, which is largely consisted of the company's internet banking platform (the 'Direct Bank'), that delivers deposit products to consumers. The General Banking segment also includes a community association bank channel that supports deposit, cash management, and lending to homeowner associations and property management companies. Revenue is generated from interest earned on loans and from fees for banking and advisory services. The company primarily originates loans by utilizing the company's branch network and industry referrals, as well as direct digital marketing efforts. The company derives its Small Business Administration ('SBA') loans through a network of SBA originators. The company periodically purchases loans on a whole-loan basis. The company also invests in community development that supports the construction of affordable housing in the company's communities in line with the company's Community Reinvestment Act of 1977 ('CRA') initiatives. Commercial Banking The Commercial Banking segment provides a range of lending, leasing, capital markets, asset management and other financial and advisory services, primarily to small and middle market companies in a wide range of industries, including energy; healthcare; tech media and telecom; asset-backed lending; capital finance; maritime; corporate banking; aerospace and defense; and sponsor finance. Loans offered are primarily senior secured loans collateralized by accounts receivable, inventory, machinery and equipment, transportation equipment and/or intangibles, and are often used for working capital, plant expansion, acquisitions, or recapitalizations. These loans include revolving lines of credit and term loans, and depending on the nature of the collateral, may be referred to as collateral-backed loans, asset-based loans or cash flow loans. The company provides senior secured loans to developers and other commercial real estate ('CRE') professionals. Additionally, the company provides small business loans and leases, including both capital and operating leases, through a highly automated credit approval, documentation and funding process. The company provides factoring, receivable management, and secured financing to businesses that operate in several industries. These include: apparel, textile, furniture, home furnishings, and consumer electronics. Factoring entails the assumption of credit risk with respect to trade accounts receivable arising from the sale of goods from the company's factoring clients to their customers that have been factored (i.e., sold or assigned to the factor). The company's factoring clients, which are generally manufacturers or importers of goods, are the counterparties on factoring, financing, or receivables purchasing agreements to sell trade receivables to the company. The company's factoring clients' customers, which are generally retailers, are the account debtors and obligors on trade accounts receivable that have been factored. Revenue is generated from: interest and fees on loans; rental income on operating lease equipment; fee income and other revenue from banking services and capital markets transactions; and commissions earned on factoring-related activities. The company derives most of its commercial lending business through direct marketing to borrowers, lessees, manufacturers, vendors, and distributors. The company also utilizes referrals as a source for commercial lending business. The company may periodically buy participations or syndications of loans and lines of credit and purchase loans on a whole-loan basis. Silicon Valley Banking+ The SVB segment offers products and services to commercial clients in key innovation markets, such as healthcare and technology industries, as well as to private equity and venture capital firms. The segment provides solutions to the financial needs of commercial clients through credit, treasury management, foreign exchange, trade finance and other services including capital call lines of credit. In addition, the segment offers private banking and wealth management and provides a range of personal financial solutions for consumers. Private banking and wealth management clients consist of private equity and venture capital professionals and executive leaders of the innovation companies they support and premium wine clients. The segment offers a customized suite of private banking services, including mortgages, home equity lines of credit, restricted and private stock loans, other secured and unsecured lending products and vineyard development loans, as well as planning-based financial strategies, wealth management, family office, financial planning, tax planning and trust services. Revenue is primarily generated from interest earned on loans, and fees and other revenue from lending activities and banking services. Deposit products include business and analysis checking accounts, money market accounts, multi-currency accounts, bank accounts, sweep accounts and positive pay services. Services are provided through online and mobile banking platforms, as well as branch locations. Rail The Rail segment offers customized leasing and financing solutions on a fleet of railcars and locomotives to railroads and shippers throughout North America. Railcar types include covered hopper cars used to ship grain and agricultural products, plastic pellets, sand, and cement; tank cars for energy products and chemicals; gondolas for coal, steel coil and mill service products; open-top hopper cars for coal and aggregates; boxcars for paper and auto parts; and centerbeams and flat cars for lumber. Revenue is generated primarily from rental income on operating lease equipment. Geographic Locations As of December 31, 2023, BancShares operated branches in Arizona, California, Colorado, Florida, Georgia, Hawaii, Kansas, Maryland, Massachusetts, Missouri, Nebraska, New Mexico, Nevada, North Carolina, Oklahoma, Oregon, South Carolina, Tennessee, Texas, Virginia, Washington, West Virginia, and Wisconsin. Investment Securities The company's portfolio of investment securities available for sale consists of mortgage-backed securities issued by government agencies and government sponsored entities, the U.S. Treasury securities, unsecured bonds issued by government agencies and government sponsored entities, corporate bonds, and municipal bonds. Regulatory Considerations Certain subsidiaries of the company and FCB are subject to regulation, supervision, and examination by the Securities and Exchange Commission (SEC), the Financial Industry Regulatory Authority (FINRA), state regulatory agencies, and other regulatory authorities as 'regulated entities'. FCB's insurance activities are subject to licensing and regulation by state insurance regulatory agencies. BancShares is subject to certain enhanced prudential standards and enhanced oversight under the applicable transition provisions of the Dodd-Frank Wall Street Reform and Consumer Protection Act (the 'Dodd-Frank Act') by the Federal Reserve Board (Federal Reserve or FRB), and the FDIC with respect to FCB. FCB's wholly-owned subsidiary, FC International, Inc. (FC International), is subject to supervision and regulation by the Federal Reserve, including examination, reporting, capital, and Bank Secrecy Act of 1970 (BSA) and anti-money laundering (AML) requirements, pursuant to the Edge Act and the Federal Reserve's Regulation K. As a bank holding company registered under the BHCA, the company is subject to supervision, regulation and examination by the Federal Reserve. The company is also registered under the bank holding company laws of North Carolina and is subject to supervision, regulation and examination by the North Carolina Commissioner of Banks (NCCOB). FCB is a state-chartered bank, subject to supervision and examination by, and the regulations and reporting requirements of, the FDIC and the NCCOB. Pursuant to Sections 23A and 23B of the Federal Reserve Act, Regulation W and Regulation O, the authority of FCB to engage in transactions with related parties or 'affiliates' or to make loans to insiders is limited. FCB is subject to the requirements of the Community Reinvestment Act of 1977 (CRA). An institution subject to the BSA, such as FCB (and FC International), in addition to maintaining a written BSA/AML compliance program, must also provide AML training to employees, designate an AML compliance officer and annually audit the AML program to assess its effectiveness. FCB has implemented a program designed to facilitate compliance with the full extent of the applicable BSA and OFAC related laws, regulations and related sanctions. FCB is also subject to certain laws and regulations designed to protect consumers in transactions with banks. These laws include the Truth in Lending Act (TILA), the Truth in Savings Act, the Electronic Funds Transfer Act, the Expedited Funds Availability Act, the Equal Credit Opportunity Act, Real Estate Settlement Procedures Act, Home Mortgage Disclosure Act, the Fair Credit Reporting Act, the Fair Debt Collection Practices Act, the Fair Housing Act, and the Servicemembers Civil Relief Act. FCB is subject to the CFPB's supervisory and enforcement authorities. The company is subject to a number of the U.S. federal, state, local and foreign laws and regulations relating to consumer privacy and data protection. Under privacy protection provisions of the Gramm-Leach-Bliley Act of 1999 (GLBA) and its implementing regulations and guidance, the company is limited in its ability to disclose certain non-public information about consumers to nonaffiliated third parties. The company's compensation practices are subject to oversight by the Federal Reserve, and with respect to some of the company's subsidiaries, by other financial regulatory agencies. Certain subsidiaries of the company and FCB are subject to regulation, supervision, and examination by the SEC, FINRA, state regulatory agencies, and other regulatory authorities as 'regulated entities'. History First Citizens BancShares, Inc. was founded in 1898. The company was incorporated under the laws of Delaware in 1986.