Company: FCNCB
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000798941-25-000010
Chunk: 160

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 160
---
 a discounted cash flow methodology that considered factors including the type of loan and related collateral, classification status, fixed or variable interest rate, remaining term of loan, credit quality ratings or scores, amortization status and current discount rate. Loans with similar risk characteristics were pooled together and treated in aggregate when applying various valuation techniques. The discount rates used for loans were based on an evaluation of current market rates for new originations of comparable loans and required rates of return for market participants to purchase similar assets, including adjustments for liquidity and credit quality when necessary.BancShares’ accounting methods for acquired Non-PCD and PCD loans and leases are discussed in Note 1—Significant Accounting Policies and Basis of Presentation. The following table presents the UPB and fair value of the loans and leases acquired by BancShares in the SVBB Acquisition as of the SVBB Acquisition Date. The fair value of Non-PCD loans and leases was $66.42 billion, compared to the UPB of $68.72 billion, resulting in a discount of $2.30 billion that is accreted into income over the contractual life of the applicable loan using the effective interest method. Loans and Leases Acquireddollars in millionsLoans and LeasesUPBFair ValueNon-PCD loans and leases$68,719 $66,422 PCD loans and leases2,568 2,046 Total loans and leases, before PCD gross-up$71,287 $68,468 The following table summarizes PCD loans and leases that BancShares acquired in the SVBB Acquisition.PCD Loans and Leasesdollars in millionsTotal PCD Loans from SVBB AcquisitionUPB$2,568 Fair value2,046 Total fair value discount522      Less: discount for loans with $0 fair value at SVBB Acquisition Date26      Less: PCD gross-up220 Non-credit discount (1)$276 (1) The non-credit discount of $276 million is accreted into income over the contractual life of the applicable loan using the effective interest method. Affordable housing tax credit investmentsThe fair values of the affordable housing tax credit investments were determined based on discounted cash flows. The cash flow projections considered tax credits and net cash flows from operating losses and tax depreciation. The discount rate was determined using observable market data points for similar investments. Premises and equipmentFair values for furniture and fixtures, computer software and other equipment were determined using the cost approach. Core deposit int