First Citizens Bancshares Inc. Files 2023 Annual Report on Form 10-K

TL;DR

<b>First Citizens Bancshares Inc. filed its 2023 10-K report detailing its financial performance and operations.</b>

AI Summary

FIRST CITIZENS BANCSHARES INC /DE/ (FCNCN) filed a Annual Report (10-K) with the SEC on February 23, 2024. Filed Form 10-K for the fiscal year ended December 31, 2023. Company headquarters located at 4300 Six Forks Road, Raleigh, NC. Incorporated in Delaware with fiscal year ending December 31. Filed under the Securities Exchange Act of 1934. Reported under SIC code 6022 for Commercial Banks.

Why It Matters

For investors and stakeholders tracking FIRST CITIZENS BANCSHARES INC /DE/, this filing contains several important signals. This filing provides a comprehensive overview of the company's financial health and strategic positioning for the past fiscal year. Investors and analysts can use this report to assess the company's performance, risks, and future outlook.

Risk Assessment

Risk Level: medium — FIRST CITIZENS BANCSHARES INC /DE/ shows moderate risk based on this filing. The filing is a standard annual report (10-K), which typically contains a broad range of financial and operational information, but lacks specific forward-looking guidance or significant event disclosures that would elevate the risk level.

Analyst Insight

Review the detailed financial statements and risk factors within the 10-K to understand First Citizens Bancshares' performance and potential challenges.

Key Numbers

• 2023-12-31 — Fiscal Year End (Conformed Period of Report)
• 2024-02-23 — Filing Date (Filed as of Date)
• 197 — Public Document Count (Total documents in the filing)

Key Players & Entities

• FIRST CITIZENS BANCSHARES INC /DE/ (company) — Filer
• 0000798941 (company) — Central Index Key
• 6022 (company) — Standard Industrial Classification
• DE (company) — State of Incorporation
• RALEIGH (company) — City
• NC (company) — State
• 001-16715 (company) — SEC File Number
• 24671506 (company) — Film Number

FAQ

Industry Context

First Citizens Bancshares operates within the commercial banking industry, a sector characterized by its sensitivity to interest rates, regulatory oversight, and economic conditions.

Regulatory Implications

As a commercial bank, the company is subject to extensive regulation by federal and state authorities, including the Federal Reserve and state banking departments, governing its operations, capital requirements, and consumer protection.

What Investors Should Do

1. Analyze the company's financial statements for revenue streams, profitability, and asset quality.
2. Review the Management's Discussion and Analysis (MD&A) section for insights into operational performance and strategic initiatives.
3. Examine the risk factors section to understand potential challenges and their impact on the company.

Key Dates

• 2023-12-31: Fiscal Year End — End of the reporting period for the 10-K.
• 2024-02-23: Filing Date — Date the 10-K was officially filed with the SEC.

Year-Over-Year Comparison

This is the initial filing data extracted for the 2023 10-K; comparison to prior filings would require access to those specific documents.

Key Financial Figures

• $1 — stered Class A Common Stock, Par Value $1 FCNCA Nasdaq Global Select Market Dep
• $213.76 billion — Shares had total consolidated assets of $213.76 billion. Throughout its history, the operatio
• $38.48 billion — SVBB Acquisition increased deposits by $38.48 billion as of December 31, 2023, and the CIT Me
• $39.43 billion — ger increased deposits by approximately $39.43 billion at the CIT Merger Date, primarily relat

Filing Documents

• fcnca-20231231.htm (10-K) — 8211KB
• fcnca_exx48xdescriptionofs.htm (EX-4.8) — 90KB
• fcnca_exx21xsignificantsub.htm (EX-21) — 6KB
• fcnca_exx231xkpmgconsent12.htm (EX-23.1) — 2KB
• fcnca_exx24xpowerofattorne.htm (EX-24) — 26KB
• fcnca_exx311x4q2023ceocert.htm (EX-31.1) — 10KB
• fcnca_exx312x4q2023cfocert.htm (EX-31.2) — 10KB
• fcnca_exx321x4q2023ceocert.htm (EX-32.1) — 3KB
• fcnca_exx322x4q2023cfocert.htm (EX-32.2) — 3KB
• fcnca_exx97xpolicyforthere.htm (EX-97) — 32KB
• fcnca-20231231_g1.jpg (GRAPHIC) — 101KB
• 0000798941-24-000018.txt (&nbsp;) — 40531KB
• fcnca-20231231.xsd (EX-101.SCH) — 185KB
• fcnca-20231231_cal.xml (EX-101.CAL) — 382KB
• fcnca-20231231_def.xml (EX-101.DEF) — 1177KB
• fcnca-20231231_lab.xml (EX-101.LAB) — 2062KB
• fcnca-20231231_pre.xml (EX-101.PRE) — 1601KB
• fcnca-20231231_htm.xml (XML) — 9712KB

Item 1 Business

PART I Item 1 Business 4

Risk Factors

Item 1A Risk Factors 22

Unresolved Staff Comments None

Item 1B Unresolved Staff Comments None

Cybersecurity

Item 1C Cybersecurity 43

Properties

Item 2 Properties 45

Legal Proceedings

Item 3 Legal Proceedings 45

Mine Safety Disclosures N/A

Item 4 Mine Safety Disclosures N/A PART II Item 5 Market for Registrant's Common Equity, Related Stockholder Matters and Issuer Purchases of Equity Securities 46

Management's Discussion and Analysis of Financial Condition and Results of Operations

Item 7 Management's Discussion and Analysis of Financial Condition and Results of Operations 47

Quantitative and Qualitative Disclosure about Market Risk

Item 7A Quantitative and Qualitative Disclosure about Market Risk 99

Financial Statements and Supplementary Data

Item 8 Financial Statements and Supplementary Data 100 Report of Independent Registered Public Accounting Firm 100 Report of Independent Registered Public Accounting Firm on Internal Control over Financial Reporting 105 Consolidated Balance Sheets at December 31, 2023 and 2022 107 Consolidated Statements of Income for each of the years in the three-year period ended December 31, 202 3 108 Consolidated Statements of Comprehensive Income for each of the years in the three-year period ended December 31, 202 3 109 Consolidated Statements of Changes in Stockholders' Equity for each of the years in the three-year period ended December 31, 202 3 110 Consolidated Statements of Cash Flows for each of the years in the three-year period ended December 31, 202 3 111

Notes to Consolidated Financial Statements

Notes to Consolidated Financial Statements 113

Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None

Item 9 Changes in and Disagreements with Accountants on Accounting and Financial Disclosure None

Controls and Procedures

Item 9A Controls and Procedures 198 Management's Annual Report on Internal Control over Financial Reporting 198

Other Information

Item 9B Other Information 199

Disclosure Regarding Foreign Jurisdictions that Prevent Inspection None

Item 9C Disclosure Regarding Foreign Jurisdictions that Prevent Inspection None

Item 10 Directors, Executive Officers and Corporate Governance *

PART III Item 10 Directors, Executive Officers and Corporate Governance *

Executive Compensation **

Item 11 Executive Compensation **

Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ***

Item 12 Security Ownership of Certain Beneficial Owners and Management and Related Stockholder Matters ***

Certain Relationships and Related Transactions and Director Independence ****

Item 13 Certain Relationships and Related Transactions and Director Independence ****

Principal Accounting Fees and Services

Item 14 Principal Accounting Fees and Services 199

Item 15 Exhibit and Financial Statement Schedules

PART IV Item 15 Exhibit and Financial Statement Schedules 200 (1) Financial Statements (see Item 8 for reference) (2) All Financial Statement Schedules normally required for Form 10-K are omitted since they are not applicable, except as referred to in Item 8. (3) The Exhibits listed on the Exhibit Index contained in this Form 10-K are filed with or furnished to the Commission or incorporated by reference into this report and are available upon written request.

Form 10-K Summary None

Item 16 Form 10-K Summary None

Signatures

Signatures 202 * Information required by Item 10 is incorporated herein by reference to the information that appears under the headings or captions Proposal 1: Election of Directors,' Corporate Governance —Service on Other Public Company Boards' and —Code of Ethics;' Committees of our Boards—Audit Committee;' Executive Officers' and Beneficial Ownership of Our Equity Securities—Delinquent Section 16(a) Reports from the Registrant's Proxy Statement for the 2024 Annual Meeting of Stockholders ("2024 Proxy Statement"). ** Information required by Item 11 is incorporated herein by reference to the information that appears under the headings or captions Committees of our Board—Compensation Committee Report;' and —Effect of Risk Management on Compensation;' Compensation Discussion and Analysis;' Executive Compensation;' and Director Compensation' of the 2024 Proxy Statement. *** Information required by Item 12 is incorporated herein by reference to the information that appears under the captions Beneficial Ownership of Our Equity Securities—Directors and Executive Officers,' —Pledging Policy—Existing Pledge Arrangements,' and —Principal Stockholders' of the 2024 Proxy Statement. As of December 31, 2023, the Registrant did not have any compensation plans under which equity securities of the Registrant are authorized for issuance to employees or directors to report in the Equity Compensation Plan Information table pursuant to Item 201(d) of Regulation S-K. As of December 31, 2023, the Registrant had restricted stock units ("RSUs") outstanding covering an aggregate of 20,255 shares of its Class A common stock, which RSUs were assumed in Registrant's merger with CIT Group Inc. in 2022. **** Information required by Item 13 is incorporated herein by reference to the information that appears under the headings or captions Corporate Governance—Director Independence' and Transactions with Related Persons' of the 2024 Proxy Statement. 2 GLOSSARY OF ABBREVIATIONS AND ACRONY

Business

Item 1. Business General First Citizens BancShares, Inc. (the "Parent Company" and when including all of its subsidiaries on a consolidated basis, "BancShares," "we," "us," or "our") was incorporated under the laws of Delaware on August 7, 1986, to become the holding company of First-Citizens Bank & Trust Company ("FCB"), its banking subsidiary. FCB opened in 1898 as the Bank of Smithfield in Smithfield, North Carolina, and later changed its name to First-Citizens Bank & Trust Company. BancShares has expanded through de novo branching and acquisitions and as of December 31, 2023, operates a network of more than 600 branches and offices in 30 states, predominantly located in the Southeast, Mid-Atlantic, Midwest and Western United States, providing a broad range of financial services to individuals, businesses and professionals. At December 31, 2023, BancShares had total consolidated assets of $213.76 billion. Throughout its history, the operations of BancShares have been significantly influenced by descendants of Robert P. Holding, who came to control FCB during the 1920s. Robert P. Holding's children and grandchildren have served as members of the Board of Directors (the "Board") of BancShares and of the Board of Directors of FCB (collectively with the Board of BancShares, the "Boards"), as chief executive officers and in other executive management positions and, since BancShares' formation in 1986, have remained stockholders owning a large percentage of its common stock. The Chairman of the Boards and Chief Executive Officer, Frank B. Holding, Jr., is the grandson of Robert P. Holding. Hope Holding Bryant, Vice Chairwoman of the Boards, is Robert P. Holding's granddaughter. Peter M. Bristow, President and member of the Boards, is the brother-in-law of Frank B. Holding, Jr. and Hope Holding Bryant. BancShares provides financial services for a wide range of consumer and commercial clients. This includes retail and mortgage banking, wealth management, small

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View this 10-K filing on SEC EDGAR