First Citizens Bank announced today a $16 billion community
benefits plan — developed in collaboration with the National
Community Reinvestment Coalition (NCRC) — that builds on its work
to reinvest in low- and moderate-income (LMI) communities and
neighborhoods of color.
Under this plan, First Citizens Bank would support lending and
investing in the areas of affordable housing, small business and
community development over a five-year period from 2021-2025,
following completion of the proposed merger of First Citizens
BancShares, Inc. (“First Citizens”), the parent company of First
Citizens Bank, and CIT Group Inc. (“CIT”).
“We’re pleased to announce a plan to bring additional investment
to our markets and help grow these vibrant and diverse communities
and businesses — at a time when these efforts are truly needed,”
said Frank B. Holding, chairman and chief executive officer of
First Citizens. “We have a legacy of giving back to the cities and
towns we serve, and this plan serves as a testimony to the
commitments and values that will represent our combined company.
We’re glad to establish a new partnership with NCRC and its members
in creating this plan and look to build even stronger relationships
that will last well into the future.”
The $16 billion five-year commitment features the following:
- $6.9 billion for community
development lending and investments, including affordable housing
opportunities and small business lending to nonprofits and small
for-profit developers that support LMI communities;
- $5.9 billion for lending to small
businesses, supporting the growth of companies with less than $1
million in annual revenues and in LMI and majority/minority
geographies; and
- $3.2 billion for home purchase
mortgage loans, focusing on LMI and minority borrowers and/or
minority/majority geographies.
“This community benefits plan expands on the ongoing work that
we’ve already put in place to support affordable home ownership,
small business lending and community development,” Holding said.
“It solidifies our path forward and will accelerate new
opportunities for underserved communities and customers.”
The support provided through the plan will assist communities
that First Citizens Bank will serve across the combined company’s
retail bank footprint.
First Citizens participated in virtual listening sessions late
last year with national and state members of NCRC, an association
of more than 600 community-based organizations that promote access
to basic banking services, affordable housing, entrepreneurship,
job creation and vibrant communities for America’s working
families. The plan is a direct result of input received from those
meetings and was formed in conjunction with the NCRC and its member
organizations.
“We appreciate the leadership and proactive efforts of First
Citizens to collaborate with us and develop a substantial plan that
makes a significant commitment of investments, services and loans
for LMI communities and neighborhoods of color," said NCRC CEO
Jesse Van Tol. “Our members played a critical role and provided
essential input in our discussions. It’s rewarding when
institutions and communities can come together like this to make a
lasting impact.”
In addition, the plan provides $50 million for Community
Reinvestment Act (CRA)-qualified philanthropic giving through 2025.
Also, a community advisory board will provide input and feedback on
the plan’s progress.
In October 2020, First Citizens and CIT announced a proposed
merger, which would create a top 20 U.S. bank based on assets. The
merger is expected to close in the second quarter of 2021, subject
to customary closing conditions, including regulatory approvals.
The combined company will operate under the First Citizens name.
For more information, visit firstcitizens.com.
About First Citizens
First Citizens BancShares, Inc. is the financial holding company
for Raleigh, North Carolina-headquartered First-Citizens Bank &
Trust Company (“First Citizens Bank”). As one of America’s largest
family-controlled banks, First Citizens Bank (Member FDIC, Equal
Housing Lender) is known for building financial strength that lasts
for personal, business, commercial and wealth management clients.
Founded in 1898, First Citizens Bank provides a broad range of
financial products and operates a network of branches in 19 states
that include many high-growth markets. For more information, visit
First Citizens’ website at firstcitizens.com. First Citizens Bank.
Forever First®.
About NCRC
The National Community Reinvestment Coalition
and its grassroots member organizations create opportunities for
people to build wealth. We work with community leaders,
policymakers and financial institutions to champion fairness in
banking, housing and business. NCRC was formed in 1990 by national,
regional and local organizations to increase the flow of private
capital into traditionally underserved communities. NCRC has grown
into an association of more than 600 community-based organizations
in 42 states that promote access to basic banking services,
affordable housing, entrepreneurship, job creation and vibrant
communities for America’s working families. More: www.ncrc.org.
Forward-Looking StatementsThis communication
contains “forward-looking statements” within the meaning of the
Private Securities Litigation Reform Act of 1995 regarding the
financial condition, results of operations, business plans and
future performance of First Citizens and CIT. Words such as
“anticipates, ” “believes,” “estimates,” “expects,” “forecasts,”
“intends,” “plans, ” “projects,” “targets,” “designed,” “could,”
“may,” “should,” “will” or other similar words and expressions are
intended to identify these forward-looking statements. These
forward-looking statements are based on First Citizens’ and CIT's
current expectations and assumptions regarding First Citizens’ and
CIT’s businesses, the economy, and other future conditions.
Because forward-looking statements relate to future results and
occurrences, they are subject to inherent risks, uncertainties,
changes in circumstances and other factors that are difficult to
predict. Many possible events or factors could affect First
Citizens’ and/or CIT’s future financial results and performance and
could cause the actual results, performance or achievements of
First Citizens and/or CIT to differ materially from any anticipated
results expressed or implied by such forward-looking
statements. Such risks and uncertainties include, among
others, (1) the risk that the cost savings, any revenue synergies
and other anticipated benefits of the proposed merger may not be
realized or may take longer than anticipated to be realized,
including as a result of the impact of, or problems arising from,
the integration of the two companies or as a result of the
condition of the economy and competitive factors in areas where
First Citizens and CIT do business, (2) disruption to the parties’
businesses as a result of the announcement and pendency of the
proposed merger and diversion of management’s attention from
ongoing business operations and opportunities, (3) the occurrence
of any event, change or other circumstances that could give rise to
the right of one or both of the parties to terminate the definitive
merger agreement between First Citizens and CIT, (4) the risk that
the integration of First Citizens’ and CIT’s operations will be
materially delayed or will be more costly or difficult than
expected or that First Citizens and CIT are otherwise unable to
successfully integrate their businesses, (5) the outcome of any
legal proceedings that may be or have been instituted against First
Citizens and/or CIT, (6) the failure to obtain required
governmental approvals (and the risk that such approvals may result
in the imposition of conditions that could adversely affect the
combined company or the expected benefits of the proposed
transaction), (7) reputational risk and potential adverse reactions
of First Citizens’ and/or CIT’s customers, suppliers, employees or
other business partners, including those resulting from the
announcement or completion of the proposed merger, (8) the failure
of any of the closing conditions in the definitive merger agreement
to be satisfied on a timely basis or at all, (9) delays in closing
the proposed merger, (10) the possibility that the proposed merger
may be more expensive to complete than anticipated, including as a
result of unexpected factors or events, (11) the dilution caused by
First Citizens’ issuance of additional shares of its capital stock
in connection with the proposed merger, (12) general competitive,
economic, political and market conditions, (13) other factors that
may affect future results of CIT and/or First Citizens including
changes in asset quality and credit risk, the inability to sustain
revenue and earnings growth, changes in interest rates and capital
markets, inflation, customer borrowing, repayment, investment and
deposit practices, the impact, extent and timing of technological
changes, capital management activities, and other actions of the
Federal Reserve Board and legislative and regulatory actions and
reforms, and (14) the impact of the global COVID-19 pandemic on
First Citizens’ and/or CIT’s businesses, the ability to complete
the proposed merger and/or any of the other foregoing risks.
Except to the extent required by applicable law or regulation,
each of First Citizens and CIT disclaims any obligation to update
such factors or to publicly announce the results of any revisions
to any of the forward-looking statements included herein to reflect
future events or developments. Further information regarding
First Citizens, CIT and factors which could affect the
forward-looking statements contained herein can be found in First
Citizens’ Annual Report on Form 10-K for the fiscal year ended
December 31, 2019, its Quarterly Reports on Form 10-Q for the
periods ended March 31, 2020, June 30, 2020 and September 30, 2020,
and its other filings with the Securities and Exchange Commission
(the “SEC”), and in CIT’s Annual Report on Form 10-K for the fiscal
year ended December 31, 2019, its Quarterly Reports on Form 10-Q
for the periods ended March 31, 2020, June 30, 2020 and September
30, 2020, and its other filings with the SEC.
Important Information about the Merger and Where to Find
ItIn connection with the proposed merger between First
Citizens and CIT, First Citizens filed with the SEC a registration
statement on Form S-4 (File No. 333-250131), as amended on December
21, 2020, to register the shares of First Citizens’ capital stock
that will be issued to CIT’s stockholders in connection with the
proposed transaction. The registration statement includes a
joint proxy statement of First Citizens and CIT that also
constitutes a prospectus of First Citizens. The registration
statement was declared effective by the SEC on December 23, 2020,
and the definitive joint proxy statement/prospectus was mailed to
CIT’s and First Citizens’ stockholders of record as of the close of
business on or about December 30, 2020. First Citizens and CIT held
their respective special meeting of stockholders on February 9,
2021.
INVESTORS AND SECURITY HOLDERS ARE URGED TO READ THE
REGISTRATION STATEMENT ON FORM S-4 AND THE JOINT PROXY
STATEMENT/PROSPECTUS INCLUDED WITHIN THE REGISTRATION STATEMENT ON
FORM S-4 (AND ANY OTHER RELEVANT DOCUMENTS FILED WITH THE SEC IN
CONNECTION WITH THE PROPOSED TRANSACTION OR INCORPORATED BY
REFERENCE INTO THE JOINT PROXY STATEMENT/PROSPECTUS) BECAUSE SUCH
DOCUMENTS CONTAIN IMPORTANT INFORMATION REGARDING FIRST CITIZENS,
CIT, THE PROPOSED MERGER AND RELATED MATTERS.
Investors and security holders may obtain free copies of these
documents and other documents filed with the SEC by First Citizens
or CIT through the website maintained by the SEC at
http://www.sec.gov or from First Citizens at its website,
www.firstcitizens.com, or from CIT at its website,
www.cit.com. Documents filed with the SEC by First Citizens
will be available free of charge by accessing the “Investor
Relations” page of First Citizens’ website at www.firstcitizens.com
or, alternatively, by directing a request by telephone or mail to
First Citizens BancShares, Inc., Mail Code: FCC-22, PO Box 27131,
Raleigh, North Carolina 27611-7131, (919) 716-7000, and documents
filed with the SEC by CIT will be available free of charge by
accessing CIT’s website at www.cit.com under the tab “About Us,”
and then under the heading “Investor Relations” or, alternatively,
by directing a request by telephone or mail to CIT Group Inc., One
CIT Drive, Livingston, New Jersey 07039, (866)
542-4847.Contact InformationBarbara Thompson First
Citizens BankDirector of Corporate Communications and Brand
Marketing919-716-2716barbara.thompson@firstcitizens.com
Alyssa WiltseNCRC202-393-8309awiltse@ncrc.org
A photo accompanying this announcement is available at
https://www.globenewswire.com/NewsRoom/AttachmentNg/3c130c0c-f14b-4853-9b1a-226d7918c3bb
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