Transitioning from LIBOR to SOFR

What you need to know about the LIBOR transition

A rate change is coming soon

The London Interbank Offered Rate, or LIBOR, is scheduled to be discontinued as an interest rate benchmark on June 30, 2023, by the Financial Conduct Authority, or FCA. This is a worldwide industry shift that's not unique to First Citizens.

As part of the transition away from LIBOR, First Citizens is actively monitoring and remains engaged with marketplace activities. We're committed to continuing to offer competitive loan rates and making the transition from LIBOR as smooth as possible. For additional guidance, you can call us or reach out directly to your First Citizens banker.


People often ask us

According to regulators, the rate-setting process for LIBOR has become unreliable and subject to manipulation. As a result, many regulators around the world are actively advocating that markets move away from LIBOR to a more reliable index.

The Secured Overnight Financing Rate, or SOFR, is the leading alternative to replace LIBOR in the US. First Citizens is already offering SOFR as an available rate index. Issuance of products using LIBOR will end on December 31, 2021. First Citizens will continue to monitor any legislative and industry developments as they arise.

The Secured Overnight Financing Rate, or SOFR, is a transaction-based and nearly risk-free reference rate. It broadly measures the cost of borrowing cash overnight collateralized by US Treasury securities. The New York Federal Reserve administers and publishes the 30-Day SOFR Average on its website daily. It's calculated using daily compounding and incorporates all SOFR values starting 30 calendar days prior to its publication. First Citizens doesn't calculate or modify the 30-Day Average SOFR in any form.

As part of the transition away from LIBOR, First Citizens will provide further updates and keep you apprised of any action required on your part.

For more information about LIBOR and the transition to SOFR, you can visit these websites:

You can contact your banker at First Citizens for additional guidance through this transition.

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