Company: FCNCB
Filing Date: 2025-11-07
Form Type: 10-Q
Source: 0000798941-25-000050
Chunk: 305

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-11-07
Form: 10-Q
Item: Item 8
Chunk 305
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 hypothetical scenario; accordingly, this disclosure is not an indication of expected loss. Unconsolidated VIEs Carrying Valuedollars in millionsSeptember 30, 2025December 31, 2024Affordable housing tax credit investments$2,631 $2,357 Other tax credit equity investments41 2 Total tax credit equity investments$2,672 $2,359 Other unconsolidated investments159 157 Total affordable housing tax credit and other unconsolidated investments (maximum loss exposure) (1)$2,831 $2,516 Liabilities for commitments to fund tax credit investments (2)$1,295 $1,214 (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 included in other liabilities.We have investments in qualified affordable housing projects, primarily to support our Community Reinvestment Act (“CRA”) initiatives and obtain tax credits. These investments are accounted for using the PAM and provide tax benefits in the form of tax deductions from operating losses and tax credits. Under the 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.

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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 millionsThree Months Ended September 30,Nine Months Ended September 30,2025202420252024Amortization of affordable housing tax credit investments (1) $63 $58 $197 $176 Tax credits from affordable housing tax credit investments  (66)(58)(201)(173)Other tax benefits from affordable housing tax credit investments  (15)(8)(38)(29)Net income tax benefit from affordable housing tax credit investments (2)$(18)$(8)$(42)$(26)(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