First Citizens BancShares : Financial Highlights Q4 2022

Dollars in millions, except per share data

	BancShares	BancShares	BancShares	BancShares	BancShares
	QTD	QTD	QTD	YTD	YTD
Summary Financial Data & Key Metrics	12/31/22	9/30/22	12/31/21	12/31/22	12/31/21

Results of Operations:

Net interest income	$
Provision (benefit) for credit losses
Net interest income after provision for credit losses
Noninterest income
Noninterest expense
Income before income taxes
Income tax expense
Net income
Preferred stock dividends
Net income available to common stockholders	$
Adjusted net income available to common stockholders(1)
Pre-tax,pre-provision net revenue (PPNR)(1)
Per Share Information:
Diluted earnings per common share (EPS)	$
Adjusted diluted earnings per common share (EPS)(1)
Book value per common share
Tangible book value per common share (TBV)(1)
Key Performance Metrics:
Return on average assets (ROA)
Adjusted ROA(1)
PPNR ROA(1)
Adjusted PPNR ROA(1)
Return on average common equity (ROE)
Adjusted ROE(1)
Return on average tangible common equity (ROTCE)(1)
Adjusted ROTCE(1)
Efficiency ratio
Adjusted efficiency ratio(1)
Net interest margin (NIM)(2)
Select Balance Sheet Items at Period End:
Total investment securities	$
Total loans and leases
Total operating lease equipment, net
Total deposits
Total borrowings
Loan to deposit ratio
Noninterest-bearing deposits to total deposits
Capital Ratios at Period End: (3)
Total risk-based capital ratio
Tier 1 risk-based capital ratio
Common equity Tier 1 ratio
Tier 1 leverage capital ratio
Asset Quality at Period End:
Nonaccrual loans to total loans and leases
Allowance for credit losses (ACL) to loans and leases
Net charge-off ratio

802	795	357	2,946	1,390
79	60	(5)	645	(37)
723	735	362	2,301	1,427
429	433	114	2,136	508
760	760	323	3,075	1,234
392	408	153	1,362	701
135	93	30	264	154
257	315	123	1,098	547
14	12	4	50	18
243	303	119	1,048	529
306	326	126	1,201	509
471	468	148	2,007	664
16.67	19.25	12.09	67.40	53.88
20.94	20.77	12.82	77.24	51.88
605.36	597.75	447.95	605.36	447.95
571.89	564.97	410.74	571.89	410.74
0.93 %	1.16 %	0.84 %	1.01 %	1.00 %
1.15	1.24	0.89	1.15	0.96
1.70	1.72	1.01	1.84	1.21
1.81	1.86	1.08	1.64	1.16
11.05	12.49	10.96	11.15	12.84
13.89	13.47	11.63	12.78	12.36
11.70	13.17	12.00	11.78	14.12
14.71	14.20	12.72	13.50	13.60
61.74	61.91	68.52	60.50	64.98
54.08	53.32	66.31	56.40	65.11
3.36	3.40	2.58	3.14	2.66
19,369	18,841	13,110	19,369	13,110
70,781	69,790	32,372	70,781	32,372
8,156	7,984	-	8,156	-
89,408	87,553	51,406	89,408	51,406
6,645	8,343	1,784	6,645	1,784
79.17 %	79.71 %	62.97 %	79.17 %	62.97 %
27.87 %	30.37 %	41.64 %	27.87 %	41.64 %
13.18 %	13.46 %	14.35 %	13.18 %	14.35 %
11.06	11.36	12.47	11.06	12.47
10.08	10.37	11.50	10.08	11.50
9.06	9.31	7.59	9.06	7.59
0.89 %	0.65 %	0.37 %	0.89 %	0.37 %
1.30	1.26	0.55	1.30	0.55
0.14	0.10	(0.01)	0.12	0.03

1. Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure. "Adjusted" items exclude the impact of Notable Items.
2. Calculated net of average credit balances of factoring clients.
3. Capital ratios for the current quarter are preliminary pending completion of quarterly regulatory filings.

1

Dollars in millions, except share and per share data

		BancShares	BancShares	BancShares	BancShares	BancShares
Income Statement (unaudited)	0	QTD	QTD	QTD	YTD	YTD
12/31/22	9/30/22	12/31/21	12/31/22	12/31/21
Interest income
Interest and fees on loans	$	892	785	328	2,953	1,295
Interest on investment securities		92	90	39	354	145
Interest on deposits at banks		56	31	4	106	11
Total interest income		1,040	906	371	3,413	1,451
Interest expense
Deposits		176	78	8	335	33
Borrowings		62	33	6	132	28
Total interest expense		238	111	14	467	61
Net interest income		802	795	357	2,946	1,390
Provision (benefit) for credit losses		79	60	(5)	645	(37)
Net interest income after provision for credit losses		723	735	362	2,301	1,427
Noninterest income
Rental income on operating lease equipment		224	219	-	864	-
Fee income and other service charges		45	44	11	163	42
Wealth management services		35	35	33	142	129
Service charges on deposit accounts		23	21	26	100	95
Factoring commissions		26	24	-	104	-
Cardholder services, net		26	25	22	102	87
Merchant services, net		8	8	7	35	33
Insurance commissions		13	11	4	47	16
Realized gain on sale of investment securities available for sale, net		-	-	-	-	33
Fair value adjustment on marketable equity securities, net		2	(2)	3	(3)	34
Bank-owned life insurance		7	8	1	32	3
Gain on sale of leasing equipment, net		2	2	-	15	-
Gain on acquisition		-	-	-	431	-
Gain on extinguishment of debt		-	1	-	7	-
Other noninterest income		18	37	7	97	36
Total noninterest income		429	433	114	2,136	508
Noninterest expense
Depreciation on operating lease equipment		88	87	-	345	-
Maintenance and other operating lease expenses		47	52	-	189	-
Salaries and benefits		352	351	193	1,396	759
Net occupancy expense		50	47	30	194	117
Equipment expense		55	55	30	216	119
Professional fees		13	13	7	57	20
Third-party processing fees		26	27	16	103	60
FDIC insurance expense		5	5	4	31	14
Marketing		21	15	3	53	10
Merger-related expenses		29	33	9	231	29
Intangible asset amortization		6	5	3	23	12
Other noninterest expense		68	70	28	237	94
Total noninterest expense		760	760	323	3,075	1,234
Income before income taxes		392	408	153	1,362	701
Income tax expense		135	93	30	264	154
Net income	$	257	315	123	1,098	547
Preferred stock dividends		14	12	4	50	18
Net income available to common stockholders	$	243	303	119	1,048	529
Basic earnings per common share	$	16.69	19.27	12.09	67.47	53.88
Diluted earnings per common share	$	16.67	19.25	12.09	67.40	53.88
Weighted average common shares outstanding (basic)		14,590,387	15,711,976	9,816,405	15,531,924	9,816,405
Weighted average common shares outstanding (diluted)		14,607,426	15,727,993	9,816,405	15,549,944	9,816,405

2

Dollars in millions

		BancShares	BancShares	BancShares
Balance Sheet (unaudited)		12/31/22	9/30/22	12/31/21
Assets
Cash and due from banks	$	518	481	338
Interest-earning deposits at banks		5,025	6,172	9,115
Investment in marketable equity securities		95	92	98
Investment securities available for sale		8,995	9,088	9,203
Investment securities held to maturity		10,279	9,661	3,809
Assets held for sale		60	21	99
Loans and leases		70,781	69,790	32,372
Allowance for credit losses		(922)	(882)	(178)
Loans and leases, net of allowance for credit losses		69,859	68,908	32,194
Operating lease equipment, net		8,156	7,984	-
Premises and equipment, net		1,456	1,410	1,233
Goodwill		346	346	346
Other intangible assets		140	145	19
Other assets		4,369	5,002	1,855
Total assets	$	109,298	109,310	58,309
Liabilities
Deposits:
Noninterest-bearing	$	24,922	26,587	21,405
Interest-bearing		64,486	60,966	30,001
Total deposits		89,408	87,553	51,406
Credit balances of factoring clients		995	1,147	-
Borrowings:
Short-term borrowings		2,186	3,128	589
Long-term borrowings		4,459	5,215	1,195
Total borrowings		6,645	8,343	1,784
Other liabilities		2,588	2,434	381
Total liabilities		99,636	99,477	53,571
Stockholders' equity
Preferred stock		881	881	340
Common stock:
Class A - $1 par value		14	14	9
Class B - $1 par value		1	1	1
Additional paid in capital		4,109	4,506	-
Retained earnings		5,392	5,160	4,378
Accumulated other comprehensive loss		(735)	(729)	10
Total stockholders' equity		9,662	9,833	4,738
Total liabilities and stockholders' equity	$	109,298	109,310	58,309

3

Dollars in millions, except share per share data

	BancShares BancShares BancShares BancShares BancShares
Notable Items (1)	QTD	QTD	QTD	YTD	YTD
12/31/22	9/30/22	12/31/21	12/31/22	12/31/21
Noninterest income

Rental income on operating lease equipment (2)	$
Realized gain on sale of investment securities available for sale, net
Fair value adjustment on marketable equity securities, net
Gain on sale of leasing equipment, net
Gain on acquisition
Gain on extinguishment of debt
Other noninterest income (3)
Impact on adjusted noninterest income
Noninterest expense
Depreciation on operating lease equipment (2)
Maintenance and other operating lease expenses (2)
Merger-related expenses
Intangible asset amortization
Other noninterest expense (4)
Impact on adjusted noninterest expense
CECL Day 2 provision and reserve for unfunded commitments
Impact on adjusted pre-tax income
Income tax impact (5) (6)
Impact on adjusted net income	$
Impact on adjusted diluted EPS	$

(135)	(139)	-	(534)	-
-	-	-	-	(33)
(2)	2	(3)	3	(34)
(2)	(2)	-	(15)	-
-	-	-	(431)	-
-	(1)	-	(7)	-
-	(5)	-	(11)	-
(139)	(145)	(3)	(995)	(67)
(88)	(87)	-	(345)	-
(47)	(52)	-	(189)	-
(29)	(33)	(9)	(231)	(29)
(6)	(5)	(3)	(23)	(12)
-	(6)	-	18	-
(170)	(183)	(12)	(770)	(41)
-	-	-	(513)	-
31	38	9	288	(26)
(32)	15	2	135	(6)
63	23	7	153	(20)
4.27	1.52	0.73	9.84	(2.00)

1. Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that Management believes should be excluded from adjusted measures (non-GAAP) to enhance understanding of operations and comparability to historical periods. Management utilizes both GAAP and adjusted measures (non-GAAP) to analyze the Company's performance. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measures.
2. Depreciation and maintenance and other operating lease expenses are reclassified from noninterest expense to a reduction of rental income on operating lease equipment. There is no net impact to earnings for this notable item as adjusted noninterest income and expense are reduced by the same amount. Adjusted rental income on operating lease equipment (non-GAAP) is net of depreciation and maintenance expense for operating lease equipment. Management believes this measure enhances comparability to banking peers, primarily due to the extent of our rail and other equipment rental activities. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure.
3. Primarily includes the following: 3Q22- contract settlement with a rail customer; YTD22- contract settlement with rail customer and gain on sale of other assets.
4. Primarily includes the following: 3Q22- impairment of a call center facility; YTD22- impairment of a call center facility and termination of two post retirement benefit plans.
5. Includes $55 million of tax expense related to the early surrender of BOLI policies. During 4Q22, management decided to early surrender $1.2 billion of BOLI policies. This triggered a taxable gain of $160 million and resulted in tax expense of $55 million.
6. The income tax impact includes tax discrete items and changes in the estimated annualized effective tax rate.

4

Dollars in millions, except share and per share data

		BancShares BancShares BancShares BancShares BancShares
Condensed Income Statement (unaudited) - Adjusted for Notable	0	QTD	QTD	QTD	YTD	YTD
Items (1)	12/31/22	9/30/22	12/31/21	12/31/22	12/31/21
Interest income	$	1,040	906	371	3,413	1,451
Interest expense		238	111	14	467	61
Net interest income		802	795	357	2,946	1,390
Provision (benefit) for credit losses		79	60	(5)	132	(37)
Net interest income after provision for credit losses		723	735	362	2,814	1,427
Noninterest income		290	288	111	1,141	441
Noninterest expense		590	577	311	2,305	1,193
Income before income taxes		423	446	162	1,650	675
Income tax expense		103	108	32	399	148

Net income	$
Preferred stock dividends
Net income available to common stockholders	$
Basic earnings per common share	$
Diluted earnings per common share	$
Weighted average common shares outstanding (basic)
Weighted average common shares outstanding (diluted)

320	338	130	1,251	527
14	12	4	50	18
306	326	126	1,201	509
20.97	20.79	12.82	77.33	51.88
20.94	20.77	12.82	77.24	51.88
14,590,387	15,711,976	9,816,405	15,531,924	9,816,405
14,607,426	15,727,993	9,816,405	15,549,944	9,816,405

1. The GAAP income statements and notable items are included previously in this communication. The condensed adjusted income statements above (non-GAAP) exclude the impacts of notable items. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure.

Dollars in millions

		BancShares	BancShares	BancShares
Loans & Leases by Class (end of period)		12/31/22	9/30/22	12/31/21
Loans & Leases by Class
Commercial
Commercial construction	$	2,804	2,752	1,238
Owner-occupied commercial mortgages		14,473	14,053	12,099
Non-owner-occupied commercial mortgages		9,902	9,683	3,041
Commercial and industrial		24,105	24,288	5,937
Leases		2,171	2,184	271
Total commercial	$	53,455	52,960	22,586
Consumer
Residential mortgage	$	13,309	12,910	6,088
Revolving mortgage		1,951	1,923	1,818
Consumer auto		1,414	1,385	1,332
Consumer other		652	612	548
Total consumer	$	17,326	16,830	9,786
Total loans and leases	$	70,781	69,790	32,372
Less: Allowance for credit losses		(922)	(882)	(178)
Total loans and leases, net of allowance for credit losses	$	69,859	68,908	32,194
		BancShares	BancShares	BancShares
Deposits by Type (end of period)		12/31/22	9/30/22	12/31/21
Noninterest-bearing demand	$	24,922	26,587	21,405
Checking with interest		16,202	16,118	12,694
Money market		21,040	21,818	10,590
Savings		16,634	14,722	4,236
Time		10,610	8,308	2,481
Total deposits	$	89,408	87,553	51,406

5