RALEIGH, N.C., Jan. 21, 2011 (GLOBE NEWSWIRE) -- First Citizens Bank, a subsidiary of Raleigh-headquartered First Citizens BancShares (Nasdaq:FCNCA), announced today that it has entered into an agreement with the Federal Deposit Insurance Corp. (FDIC) to purchase substantially all the assets and assume the majority of the liabilities of United Western Bank, Denver, Colo.
The Office of Thrift Supervision (OTS) closed United Western Bank today and appointed the FDIC as receiver. On Monday, Jan. 24, the United Western Bank branch offices in Colorado will open under the First Citizens Bank name. Depositors will not sustain any losses with respect to those deposits assumed by First Citizens Bank. The announcement today is First Citizens' fifth FDIC-related agreement in the last 18 months.
"We welcome our new clients and associates to First Citizens," said Frank B. Holding Jr., chairman and chief executive officer of First Citizens Bank. "With more than a century of experience serving the financial needs of our clients, we're a bank people trust for strength, stability and a long-term relationship. This agreement will allow us to expand our presence in Colorado."Today's transaction includes eight branches: Boulder, Centennial, Cherry Creek, downtown Denver, Hampden at Interstate 25, Fort Collins, Longmont and Loveland. The purchase complements three Denver area branches currently operated by First Citizens' IronStone Bank division: Aurora, Cherry Creek and Lone Tree. First Citizens Bank was selected to complete this transaction through a competitive bidding process. On Sept. 30, 2010, United Western Bank reported total assets of $2.1 billion, net loans and leases of $1.3 billion and total deposits of $1.7 billion. Under the terms of the agreement, First Citizens Bank has the option to purchase any owned bank premises or to assume the leases on any or all of the banking offices. The loans and other real estate owned by United Western Bank and purchased by First Citizens are covered by a loss-share agreement between the FDIC and First Citizens which provides protection against losses to First Citizens Bank.