Company: FCNCB
Filing Date: 2025-02-21
Form Type: 10-K
Source: 0000798941-25-000010
Chunk: 201

Company: FIRST CITIZENS BANCSHARES INC /DE/
Filing Date: 2025-02-21
Form: 10-K
Item: Item 8
Chunk 201
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 agreements and equity warrants.(4)    BancShares accounts for swap contracts cleared by the Chicago Mercantile Exchange and LCH Clearnet as “settled-to-market.” As a result, the derivative asset and liability fair values in the table above are presented net of the variation margin payments. Therefore, the gross derivative assets and liabilities were “netted down” by $83 million and $22 million, respectively, at December 31, 2024, which includes $14 million and $0 million relating to qualifying hedges, respectively. Gross derivative assets and liabilities were “netted down” by $66 million and $37 million, respectively, at December 31, 2023, which includes $4 million and $0 million, respectively, relating to qualifying hedges.(5)    BancShares’ derivative transactions are governed by International Swaps and Derivatives Association (“ISDA”) agreements that allow for net settlements of certain payments as well as offsetting of all contracts with a given counterparty in the event of bankruptcy or default of one of the two parties to the transaction. BancShares believes its ISDA agreements meet the definition of a master netting arrangement or similar agreement for purposes of the above disclosure.(6)    In conjunction with the ISDA agreements described above, BancShares has entered into collateral arrangements with its counterparties, which provide for the exchange of cash depending on the change in the market valuation of the derivative contracts outstanding. Such collateral is available to be applied in settlement of the net balances upon an event of default of one of the counterparties. Collateral pledged or received is included in other assets or deposits, respectively.Fair Value HedgesThe following table presents the impact of fair value hedges recorded in interest expense on the Consolidated Statements of Income:Recognized Gains (Losses) on Fair Value Hedgesdollars in millionsYear Ended December 31,Interest Expense202420232022Gain on hedging instruments - time depositsDeposits$— $— $— (Loss) gain on hedging instruments - borrowingsBorrowings(4)4 — Loss on hedged item - time depositsDeposits(1)— — Gain (loss) on hedged item - borrowingsBorrowings3 (5)— Net loss on fair value hedgesTotal interest expense$(2)$(1)$— 

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The following table presents the carrying value of hedged items and associated cumulative hedging adjustment related to fair