Company: FCNCB
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000798941-25-000010
Chunk: 196

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 196
---
3 Total tax credit equity investments$2,359 $1,890 Other unconsolidated investments157 162 Total affordable housing tax credit and other unconsolidated investments (maximum loss exposure) (1)$2,516 $2,052 Liabilities for commitments to fund tax credit investments (2)$1,214 $947 (1) Included in other assets. (2)    Represents commitments to invest in qualified affordable housing investments and other investments qualifying for community reinvestment tax credits. These commitments are payable on demand and are included in other liabilities.We have investments in qualified affordable housing projects, primarily to support our CRA initiatives and obtain tax credits. These investments are accounted for using PAM and provide tax benefits in the form of tax deductions from operating losses and tax credits. Under PAM, the initial cost of the investment is amortized in proportion to the tax credits and other tax benefits received, and the net investment performance is recognized on the Consolidated Statements of Income as a component of income tax expense.The table below summarizes the amortization of our affordable housing tax credit investments and the related tax credits and other tax benefits that are recognized in income tax expense on the Consolidated Statements of Income.Tax Credit Investments Recognized in Income Tax Expensedollars in millionsYear Ended December 31,202420232022Amortization of affordable housing tax credit investments (1) $237 $169 $60 Tax credits from affordable housing tax credit investments  (231)(157)(60)Other tax benefits from affordable housing tax credit investments  (56)(29)(17)Net income tax benefit from affordable housing tax credit investments (2)$(50)$(17)$(17)(1) Amortization is included in depreciation, amortization, and accretion, net as an adjustment to reconcile net income to net cash provided by operating activities on the Consolidated Statements of Cash Flows. (2) Net income tax benefit impact is included in net income in cash flows from operating activities on the Consolidated Statements of Cash Flows. Changes in income taxes payable are reported in the net change in other liabilities as an adjustment to reconcile net income to net cash provided by operating activities. Refer to Note 1—Significant Accounting Policies and Basis of Presentation for additional information on accounting for VIEs, including PAM.

151

NOTE 10 — OTHER ASSETSThe following table includes the components of other assets: Other Assetsdollars in millionsDecember 31, 2024