First Citizens Approved for Financial Holding Company Status

June 16, 2000

RALEIGH, N.C. - First Citizens BancShares Inc. has received approval from the Federal Reserve to convert from a bank holding company structure to a financial holding company under the Financial Modernization Act.

The recently enacted Gramm-Leach-Bliley Financial Modernization Act allows bank holding companies to register as financial holding companies. Companies operating under the new designation may engage in a broad range of complementary services, including insurance and securities.

The conversion will allow the bank to offer its customers expanded and more convenient financial services, according to James B. Hyler Jr., vice chairman of First Citizens.

As a financial holding company, First Citizens plans to shift its American Guaranty Insurance Company from a subsidiary of First Citizens Bank to a direct subsidiary of the holding company. American Guaranty would then be able to expand its underwriting services to offer its customers an improved line of convenient insurance products.

To be treated as a financial holding company under the new act, bank holding companies must have satisfactory ratings under the Community Reinvestment Act and demonstrate that they are well capitalized and well managed.

As of March 31, 2000, First Citizens BancShares had assets of $9.88 billion. Two of BancShares' major subsidiaries are First Citizens Bank with 364 branches in more than 200 communities in North Carolina, Virginia and West Virginia, and Atlantic States Bank with 30 branches in North Metro Atlanta and Southwest Florida. First Citizens provides superior financial services to individual customers and small to mid-sized businesses. For more information, visit our web site.

For more information, contact:
Barbara Thompson (919) 716-2716
Noel McLaughlin (919) 716-2793
First Citizens Bank