First Citizens BancShares, Inc.

Fourth Quarter 2022

Earnings Conference Call

January 26, 2023

2

Agenda

Page(s)

Section I - 2022 Accomplishments and 2023 Strategic Objectives

4

- 6

Section II - Fourth Quarter 2022 Financial Results

7 - 29

Financial Highlights

8

Earnings Highlights

9 - 11

Notable Items

12

Net interest income and margin

13

- 15

Deposit Betas

16

Noninterest income and expense

17

- 19

Balance Sheet Highlights

20

Loans and Leases HFI

21

- 22

Deposits and Funding Mix

23

- 25

ACL and Credit Quality Trends

26

- 27

Capital

28

BOLI Early Surrender

29

Section III - Financial Outlook

30

- 31

Key Earnings Estimate Assumptions

31

Section IV - Appendix

32

- 44

Section V - Non-GAAP Reconciliations

45

- 55

3

Important Notices

Forward Looking Statements

This 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 BancShares, Inc. ("BancShares"). Words such as "anticipates," "believes," "estimates," "expects," "predicts," "forecasts," "intends," "plans," "projects," "targets," "designed," "could," "may," "should," "will," "potential," "continue", "aims" or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on BancShares' current expectations and assumptions regarding BancShares' business, 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 risk factors that are difficult to predict. Many possible events or factors could affect BancShares' future financial results and performance and could cause the actual results, performance or achievements of BancShares to differ materially from any anticipated results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, general competitive, economic, political, geopolitical events (including the military conflict between Russia and Ukraine) and market conditions, the impacts of the global COVID-19 pandemic on BancShares' business and customers, the financial success or changing conditions or strategies of BancShares' customers or vendors, fluctuations in interest rates, actions of government regulators, including the recent and projected interest rate hikes by the Board of Governors of the Federal Reserve Board (the "Federal Reserve"), the potential impact of decisions by the Federal Reserve on BancShares' capital plans, adverse developments with respect to U.S. or global economic conditions, including the significant turbulence in the capital or financial markets, the impact of the current inflationary environment, the impact of implementation and compliance with current or proposed laws, regulations and regulatory interpretations, the availability of capital and personnel, the timing and authorization of any future repurchases of our Class A common under potential share repurchase programs and the failure to realize the anticipated benefits of BancShares' previous acquisition transaction(s), including the recently completed transaction with CIT Group Inc. ("CIT"), which acquisition risks include (1) disruption from the transaction, or recently completed mergers, with customer, supplier or employee relationships, (2) the possibility that the amount of the costs, fees, expenses and charges related to the transaction may be greater than anticipated, including as a result of unexpected or unknown factors, events or liabilities,

  1. reputational risk and the reaction of the parties' customers to the transaction, (4) the risk that the cost savings and any revenue synergies from the transaction may not be realized or take longer than anticipated to be realized, and (5) difficulties experienced in the integration of the businesses.

Except to the extent required by applicable laws or regulations, BancShares disclaims any obligation to update forward-looking statements or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Additional factors which could affect the forward- looking statements can be found in BancShares' Annual Report on Form 10-K for the fiscal year ended December 31, 2021, and its other filings with the Securities and Exchange Commission (the "SEC").

Non-GAAP Measures

Certain measures in this presentation are "Non-GAAP," meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to BancShares. BancShares believes that Non-GAAP financial measures, when reviewed in conjunction with GAAP financial information, can provide transparency about or an alternative means of assessing its operating results and financial position to its investors, analysts and management. Refer to Section V of this presentation for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure.

BancShares completed the acquisition of CIT on January 3, 2022 (the "CIT Merger"). BancShares' financial information presented for the periods ended December 31, 2022 reflects the acquisition of CIT. Certain 2021 financial information referenced as "Combined" in this presentation reflects the combination of BancShares and CIT for historical periods prior to completion of the CIT Merger. Certain financial results referenced as "Adjusted" in this presentation exclude notable items. The Combined and Adjusted financial measures are Non-GAAP. The Combined (Non-GAAP) financial measures are based on the combined historical information as reported by each company and do not constitute "pro forma" measures prepared and presented in accordance with Article 11 of Regulation S-X. Refer to Section V of this presentation for a reconciliation of the Combined (Non-GAAP) to BancShares (GAAP) measures.

2022 Accomplishments and

2023 Strategic Objectives

Section I

5

First Citizens 2022 Accomplishments

2022 was a highly successful year driven by our complementary merger with CIT that positioned us well for continued growth given our diverse products, services and markets.

Integrated

CIT

Distributed

capital

Produced

strong operating

leverage

Focused on

our customers

Upheld our risk culture

  • Merger integration is substantially complete.
  • Focused on capitalizing on opportunities to create positive operating leverage by growing revenues and optimizing operations.
  • Achieved ~$200 million in cost savings in 2022 and expect to recognize the remaining ~$50 million of targeted cost savings in 2023.
  • Repurchased 1.5 million Class A common shares for $1.2 billion during the third and fourth quarters.
  • Repurchase estimated to be ~10% accretive to 2023 EPS with TBV earnback period of ~3 years.
  • Adjusted pre-provision net revenue was up $557 million, or by 45.5% over 2021.
  • Net interest margin expanded driven by strong loan growth and a higher yield on earning assets.
  • Full year operating leverage was 14.7%.
  • Our adjusted efficiency ratio declined from 64.3% in 2021 to 56.4% in 2022. Our fourth quarter ratio was 54.1%.
  • Loans grew by $5.6 billion, or 8.5%, driven by solid performance in both the General and Commercial banks.
  • Despite a challenging environment for deposits driven by unprecedented quantitative tightening, we experienced modest growth in noninterest-bearing accounts and only a slight decline in total deposits.
  • Credit quality remains strong despite economic uncertainty.
  • Risk management practices continue to evolve to position us to meet the requirements of the large financial institution framework.

Note - Pre-provision net revenue, operating leverage and efficiency ratio are adjusted (Non-GAAP). Refer to Section V of this presentation for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure. Changes between periods are calculated as if BancShares and CIT were combined on January 1, 2021. The Combined measures are Non-GAAP. Refer to Section V of this presentation for a reconciliation of the Combined (Non-GAAP) to BancShares (GAAP) measures. For the BancShares 2021 reported data, refer to page 33-35 of the Appendix

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First Citizens BancShares Inc. published this content on 26 January 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 26 January 2023 11:52:04 UTC.