EX-99.1 3 earningsrelease-finalful.htm EX-99.1
NEWS RELEASE For Immediate Release Contact: Deanna Hart Barbara Thompson January 26, 2023 Investor Relations Corporate Communications 919-716-2137 919-716-2716 FIRST CITIZENS BANCSHARES REPORTS FOURTH QUARTER 2022 EARNINGS RALEIGH, N.C. -- First Citizens BancShares, Inc. (“BancShares”) (NASDAQ: FCNCA) reported earnings for the fourth quarter and year-to-date period ended December 31, 2022. Chairman and CEO Frank B. Holding, Jr. commented on the financial results for the quarter and year ended December 31, 2022: “First Citizens delivered solid financial results in 2022 marked by strong top line growth, low credit losses and well controlled expenses. Since the completion of our merger with CIT on January 3, 2022, we have successfully integrated our two companies and are now focused on capitalizing on opportunities to create positive operating leverage by growing revenues and optimizing our operations. We continued to execute on our capital strategy in the fourth quarter, completing our stock repurchase plan while still exceeding our CET 1 target. Looking ahead, we believe that we will have the ability to resume share buybacks in the second half of this year. We have also remained diligent in positioning ourselves to meet the regulatory requirements of a new large financial institution.” Holding added: “We are pleased with the performance of our lines of business during the year, achieving robust loan growth in the General Bank and in Industry Verticals and Business Capital within the Commercial Bank. Despite a challenging environment for deposits driven by unprecedented quantitative tightening, we experienced modest growth in noninterest checking accounts and only experienced a slight decline in deposits during the year. During the fourth quarter, deposits grew at an annualized rate of 8.4% driven by growth in our Direct Bank.” Holding concluded: “While we acknowledge concerns in the broader economy, and although we experienced an increase in nonaccrual loans during the fourth quarter, overall credit quality remains strong, and we are not seeing signs of significant loan portfolio deterioration. We enter 2023 with solid capital and liquidity positions and we believe that we are well positioned to continue to build customer relationships and grow our balance sheet profitably. And last but not least, I want to thank all of our associates for working so hard in 2022 on merger integration and to support our stockholders, customers and communities.” FINANCIAL HIGHLIGHTS For the fourth quarter, net income available to common stockholders was $243 million, or $16.67 per diluted common share, compared to $303 million, or $19.25 per diluted common share in the third quarter of 2022. Fourth quarter results were impacted by the strategic decision to exit $1.2 billion of Bank Owned Life Insurance policies. The surrender of the policies resulted in a tax charge of $55 million. Favorable market conditions prompted us to exit this long-term, illiquid asset and, as we receive proceeds from the surrender, it increases our capital and liquidity positions while at the same time allowing us to invest in highly liquid assets at higher yields. During the fourth quarter, we repurchased 472,586 shares of Class A common stock for a total cost of $398 million. For the year, we repurchased 1,500,000 shares of Class A common stock for a total cost of $1.2 billion. 1

Fourth quarter adjusted net income available to common stockholders was $306 million, or $20.94 per diluted common share, as compared to $326 million, or $20.77 per diluted common share in the third quarter. The following bullets highlight significant changes in the components of net income and adjusted net income between the third and fourth quarters (see the supporting tables for a reconciliation of GAAP net income to adjusted net income): Net interest income - Reported • Net interest income totaled $802 million compared to $795 million in the third quarter. The $7 million increase was primarily due to a higher yield on earning assets and loan growth, partially offset by higher funding costs and average balances. • Net interest margin was 3.36%, a decrease of 4 basis points compared to the third quarter. The yield on earning assets increased by 49 basis points while the cost of funding them increased by 53 basis points. The cost of funding earning assets increased due to higher rates paid on interest-bearing deposits and borrowings as well as a mix shift between noninterest-bearing and interest-bearing deposits. Noninterest income and expense - Reported • Noninterest income totaled $429 million compared to $433 million in the third quarter, a decrease of $4 million. Rental income on operating lease equipment increased $5 million on a gross basis driven by continued improvement in utilization and a higher lease rate. Noninterest income from fee generating lines of business including service charges on deposit accounts, factoring and insurance commissions, card services and fee income and other service charges increased $8 million. Other noninterest income declined by $17 million, spread among various accounts. • Noninterest expense totaled $760 million for both the third and fourth quarters. While the total was unchanged over the prior quarter, there was a $6 million increase in marketing costs related to the Direct Bank and a $3 million increase in net occupancy expense due to increased repairs and utilities costs. These were offset by a $4 million decline in maintenance and depreciation expense on operating lease equipment, a $4 million decline in merger-related expenses and a $1 million decline in other operating expenses spread among various accounts. Noninterest income and expense - Adjusted • Adjusted noninterest income totaled $290 million compared to $288 million in the third quarter, an increase of $2 million. The combination of higher rental income discussed above and a $4 million decline in depreciation and maintenance expense on operating lease equipment resulted in a $9 million increase in adjusted rental income on operating lease equipment. Noninterest income from fee generating lines of business including service charges on deposit accounts, factoring and insurance commissions, card services and fee income and other service charges increased $8 million. Other noninterest income declined by $15 million, spread among various accounts. • Adjusted noninterest expense totaled $590 million compared to $577 million in the third quarter, an increase of $13 million primarily due to the $6 million increase in marketing costs related to the Direct Bank, the $3 million increase in net occupancy expense noted above and a $4 million increase in other operating expenses spread among various accounts. Credit • Provision for credit losses totaled $79 million compared to $60 million in the third quarter, an increase of $19 million. The increase was primarily due to an increase in net charge-offs and a reserve build in the quarter. The increase in allowance for credit losses over the prior quarter was due to changes in reserves on individually evaluated loans, loan growth and continued deterioration in the economic outlook, partially offset by a change in portfolio mix. • Net charge-offs totaled $24 million or a ratio of 0.14% of average loans, compared to $18 million or a ratio of 0.10% of average loans during the third quarter. 2

• Nonaccrual loans as a percentage of total loans increased this quarter to 0.89% from 0.65%. The increase in nonaccrual loans was driven primarily by our non-owner occupied commercial real estate portfolio and more specifically related to general office exposure in the Commercial Bank segment. Balance Sheet • Loans totaled $70.8 billion, an increase of $1.0 billion, or 5.6% on an annualized basis due to strong growth in our branch network, Mortgage and Business Capital, partially offset by declines in Commercial Services and Real Estate Finance. • Deposits totaled $89.4 billion, an increase of $1.9 billion, or 8.4% on an annualized basis. Interest-bearing deposits increased $3.5 billion driven primarily by the $2.5 billion of growth in the Direct Bank and the addition of $0.7 billion in brokered deposits. • Borrowings decreased $1.7 billion during the quarter, replaced by interest-bearing deposits to support our asset growth. EARNINGS CALL DETAILS BancShares will host a conference call and webcast to discuss the company's financial results on Thursday, January 26, 2023, at 9 a.m. Eastern time. To access this call, dial: United States: 1-844-200-6205 Canada: 1-833-950-0062 All other locations: 1-929-526-1599 Access code: 836216 The fourth quarter 2022 earnings presentation and this news release are available on the company’s website at ir.firstcitizens.com, and the conference call will be webcast live at this same location. A replay of the call will be available until Thursday, February 16, 2023, by calling 1-866-813-9403 (United States), 1-226-828-7578 (Canada) or +44-204-525-0658 (all other locations) and referencing access code 724723. A webcast archive of the conference call will be available through February 16, 2023, at ir.firstcitizens.com. ABOUT FIRST CITIZENS BANCSHARES First Citizens BancShares, Inc. (NASDAQ: FCNCA), a top 20 U.S. financial institution with more than $100 billion in assets, is the financial holding company for First-Citizens Bank & Trust Company (“First Citizens Bank”). First Citizens Bank helps personal, business, commercial and wealth clients build financial strength that lasts. Founded in 1898 and headquartered in Raleigh, N.C., First Citizens is the largest family-controlled bank in the United States, providing a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens Bank offers an array of general banking services including a network of 500-plus branches in 22 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. Discover more at firstcitizens.com. 3

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 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, 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, (3) 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 release and supporting tables, including those referenced as “Adjusted”, are “Non-GAAP”, meaning they are not presented in accordance with generally accepted accounting principles in the U.S. (“GAAP”) 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. Non-GAAP measures should be considered a supplement to, and not a substitute for, financial measures prepared in accordance with GAAP. The Non-GAAP measures are reconciled to the most directly comparable GAAP measure, in the Non-GAAP reconciliation table(s) at the end of this earnings release, and notable items are summarized in a separate table. 4

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 $ 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 429 433 114 2,136 508 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 Adjusted net income available to common stockholders(1) 306 326 126 1,201 509 Pre-tax, pre-provision net revenue (PPNR)(1) 471 468 148 2,007 664 Per Share Information: Diluted earnings per common share (EPS) $ 16.67 19.25 12.09 67.40 53.88 Adjusted diluted earnings per common share (EPS)(1) 20.94 20.77 12.82 77.24 51.88 Book value per common share 605.36 597.75 447.95 605.36 447.95 Tangible book value per common share (TBV)(1) 571.89 564.97 410.74 571.89 410.74 Key Performance Metrics: Return on average assets (ROA) 0.93 % 1.16 % 0.84 % 1.01 % 1.00 % Adjusted ROA(1) 1.15 1.24 0.89 1.15 0.96 PPNR ROA(1) 1.70 1.72 1.01 1.84 1.21 Adjusted PPNR ROA(1) 1.81 1.86 1.08 1.64 1.16 Return on average common equity (ROE) 11.05 12.49 10.96 11.15 12.84 Adjusted ROE(1) 13.89 13.47 11.63 12.78 12.36 Return on average tangible common equity (ROTCE)(1) 11.70 13.17 12.00 11.78 14.12 Adjusted ROTCE(1) 14.71 14.20 12.72 13.50 13.60 Efficiency ratio 61.74 61.91 68.52 60.50 64.98 Adjusted efficiency ratio(1) 54.08 53.32 66.31 56.40 65.11 Net interest margin (NIM)(2) 3.36 3.40 2.58 3.14 2.66 Select Balance Sheet Items at Period End: Total investment securities $ 19,369 18,841 13,110 19,369 13,110 Total loans and leases 70,781 69,790 32,372 70,781 32,372 Total operating lease equipment, net 8,156 7,984 — 8,156 — Total deposits 89,408 87,553 51,406 89,408 51,406 Total borrowings 6,645 8,343 1,784 6,645 1,784 Loan to deposit ratio 79.17 % 79.71 % 62.97 % 79.17 % 62.97 % Noninterest-bearing deposits to total deposits 27.87 % 30.37 % 41.64 % 27.87 % 41.64 % Capital Ratios at Period End: (3) Total risk-based capital ratio 13.18 % 13.46 % 14.35 % 13.18 % 14.35 % Tier 1 risk-based capital ratio 11.06 11.36 12.47 11.06 12.47 Common equity Tier 1 ratio 10.08 10.37 11.50 10.08 11.50 Tier 1 leverage capital ratio 9.06 9.31 7.59 9.06 7.59 Asset Quality at Period End: Nonaccrual loans to total loans and leases 0.89 % 0.65 % 0.37 % 0.89 % 0.37 % Allowance for credit losses (ACL) to loans and leases 1.30 1.26 0.55 1.30 0.55 Net charge-off ratio 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. 5

Dollars in millions, except share and per share data BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD Income Statement (unaudited) 0 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 6

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 7

Dollars in millions, except share per share data BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD Notable Items (1) 12/31/22 9/30/22 12/31/21 12/31/22 12/31/21 Noninterest income Rental income on operating lease equipment (2) $ (135) (139) — (534) — 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) Gain on sale of leasing equipment, net (2) (2) — (15) — Gain on acquisition — — — (431) — Gain on extinguishment of debt — (1) — (7) — Other noninterest income (3) — (5) — (11) — Impact on adjusted noninterest income (139) (145) (3) (995) (67) Noninterest expense Depreciation on operating lease equipment (2) (88) (87) — (345) — Maintenance and other operating lease expenses (2) (47) (52) — (189) — Merger-related expenses (29) (33) (9) (231) (29) Intangible asset amortization (6) (5) (3) (23) (12) Other noninterest expense (4) — (6) — 18 — Impact on adjusted noninterest expense (170) (183) (12) (770) (41) CECL Day 2 provision and reserve for unfunded commitments — — — (513) — Impact on adjusted pre-tax income 31 38 9 288 (26) Income tax impact (5) (6) (32) 15 2 135 (6) Impact on adjusted net income $ 63 23 7 153 (20) Impact on adjusted diluted EPS $ 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. 8

Dollars in millions, except share and per share data Condensed Income Statement (unaudited) - Adjusted for Notable Items (1) BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD 0 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 $ 320 338 130 1,251 527 Preferred stock dividends 14 12 4 50 18 Net income available to common stockholders $ 306 326 126 1,201 509 Basic earnings per common share $ 20.97 20.79 12.82 77.33 51.88 Diluted earnings per common share $ 20.94 20.77 12.82 77.24 51.88 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 (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 9

Dollars in millions BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD Credit Quality & Allowance 12/31/22 9/30/22 12/31/21 12/31/22 12/31/21 Nonaccrual loans $ 627 454 121 627 121 Ratio of nonaccrual loans to total loans 0.89 % 0.65 % 0.37 % 0.89 % 0.37 % Charge-offs $ 39 33 9 146 36 Recoveries (15) (15) (9) (67) (26) Net charge-offs $ 24 18 — 79 10 Net charge-off ratio 0.14 % 0.10 % (0.01) % 0.12 % 0.03 % Allowance for credit losses to loans ratio 1.30 % 1.26 % 0.55 % 1.30 % 0.55 % Allowance for credit losses - beginning $ 882 850 183 178 225 Initial PCD ACL — — — 272 — Day 2 provision, excluding provision for unfunded commitments — — — 454 — Provision (benefit) for credit losses 64 50 (5) 97 (37) Net charge-offs (24) (18) — (79) (10) Allowance for credit losses - ending $ 922 882 178 922 178 10

Dollars in millions Average Balance Sheet BancShares QTD 12/31/22 BancShares QTD 09/30/22 BancShares QTD 12/31/21 Avg Balance Income/ Expense Yield/ Rate Avg Balance Income/ Expense Yield/ Rate Avg Balance Income/ Expense Yield/ Rate Loans and leases (1) (2) $ 69,290 $ 892 5.09 % $ 67,733 $ 785 4.58 % $ 32,488 $ 328 3.98 % Total investment securities 18,876 92 1.95 19,119 90 1.88 11,424 39 1.39 Interest-earning deposits at banks 6,193 56 3.60 5,685 31 2.17 10,690 4 0.15 Total interest-earning assets (2) $ 94,359 $ 1,040 4.36 % $ 92,537 $ 906 3.87 % $ 54,602 $ 371 2.69 % Operating lease equipment, net (including held for sale) $ 8,049 $ 7,981 $ — Cash and due from banks 500 489 337 Allowance for credit losses (886) (851) (184) All other non-interest-earning assets 7,770 7,831 3,361 Total assets $ 109,792 $ 107,987 $ 58,116 Interest-bearing deposits: Checking with interest $ 15,985 $ 13 0.24 % $ 16,160 $ 7 0.14 % $ 11,994 $ 2 0.05 % Money market 21,200 60 1.13 22,993 32 0.55 10,358 3 0.09 Savings 15,831 69 1.73 13,956 28 0.78 4,140 — 0.03 Time deposits 9,516 34 1.42 8,436 11 0.54 2,517 3 0.62 Total interest-bearing deposits 62,532 176 1.12 61,545 78 0.50 29,009 8 0.11 Borrowings: Securities sold under customer repurchase agreements 514 — 0.27 617 1 0.16 650 1 0.16 Short-term FHLB borrowings 2,080 20 3.72 1,188 8 2.57 — — — Short-term borrowings 2,594 20 3.04 1,805 9 1.74 650 1 0.16 Federal Home Loan Bank borrowings 2,818 28 3.85 1,784 11 2.45 645 1 1.28 Senior unsecured borrowings 906 4 2.03 898 5 2.00 — — — Subordinated debt 1,051 9 3.38 1,054 8 3.21 497 3 3.34 Other borrowings 25 1 6.57 67 — 4.51 75 1 1.25 Long-term borrowings 4,800 42 3.42 3,803 24 2.59 1,217 5 2.12 Total borrowings 7,394 62 3.28 5,608 33 2.32 1,867 6 1.44 Total interest-bearing liabilities $ 69,926 $ 238 1.35 % $ 67,153 $ 111 0.65 % $ 30,876 $ 14 0.19 % Noninterest-bearing deposits $ 26,510 $ 26,877 $ 22,229 Credit balances of factoring clients 1,174 1,089 — Other noninterest-bearing liabilities 2,561 2,369 378 Stockholders' equity 9,621 10,499 4,633 Total liabilities and stockholders' equity $ 109,792 $ 107,987 $ 58,116 Net interest income $ 802 $ 795 $ 357 Net interest spread (2) 3.01 % 3.22 % 2.50 % Net interest margin (2) 3.36 % 3.40 % 2.58 % (1) Loans and leases include non-PCD and PCD loans, nonaccrual loans and held for sale. Interest income on loans and leases includes accretion income and loan fees. (2) The balance and rate presented is calculated net of average credit balances of factoring clients. Note: Certain items above do not precisely recalculate as presented due to rounding. 11

Dollars in millions Average Balance Sheet BancShares YTD 12/31/22 BancShares YTD 12/31/21 Avg Balance Income/ Expense Yield/Rate Avg Balance Income/ Expense Yield/Rate Loans and leases (1) (2) $ 66,634 $ 2,953 4.41 % $ 32,860 $ 1,295 3.91 % Total investment securities 19,166 354 1.85 10,611 145 1.37 Interest-earning deposits at banks 7,726 106 1.38 8,349 11 0.13 Total interest-earning assets(2) $ 93,526 $ 3,413 3.63 % $ 51,820 $ 1,451 2.78 % Operating lease equipment, net (including held for sale) $ 7,982 $ — Cash and due from banks 512 350 Allowance for credit losses (875) (202) All other non-interest-earning assets 7,788 3,015 Total assets $ 108,933 $ 54,983 Interest-bearing deposits: Checking with interest $ 16,323 $ 29 0.15 % $ 11,258 $ 6 0.05 % Money market 23,949 125 0.52 9,708 10 0.10 Savings 14,193 117 0.82 3,847 1 0.03 Time deposits 9,133 64 0.70 2,647 16 0.63 Total interest-bearing deposits 63,598 335 0.53 27,460 33 0.12 Borrowings: Securities sold under customer repurchase agreements 590 1 0.19 660 1 0.20 Short-term FHLB borrowings 824 28 3.30 — — — Short-term borrowings 1,414 29 2.00 660 1 0.20 Federal Home Loan Bank borrowings 1,414 43 2.96 648 8 1.28 Senior unsecured borrowings 1,348 25 1.87 — — — Subordinated debt 1,056 33 3.15 498 15 3.35 Other borrowings 64 2 3.22 80 4 1.23 Long-term borrowings 3,882 103 2.64 1,226 27 2.12 Total borrowings 5,296 132 2.47 1,886 28 1.45 Total interest-bearing liabilities $ 68,894 $ 467 0.68 % $ 29,346 $ 61 0.21 % Noninterest-bearing deposits $ 26,318 $ 20,798 Credit balances of factoring clients 1,153 — Other noninterest-bearing liabilities 2,292 378 Stockholders' equity 10,276 4,461 Total liabilities and stockholders' equity $ 108,933 $ 54,983 Net interest income $ 2,946 $ 1,390 Net interest spread (2) 2.95 % 2.57 % Net interest margin (2) 3.14 % 2.66 % (1) Loans and leases include non-PCD and PCD loans, nonaccrual loans and held for sale. Interest income on loans and leases includes accretion income and loan fees. (2) The balance and rate presented is calculated net of average credit balances of factoring clients. Note: Certain items above do not precisely recalculate as presented due to rounding. 12

Dollars in millions, except share and per share data BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD Non-GAAP Reconciliations 12/31/22 9/30/22 12/31/21 12/31/22 12/31/21 Net income and EPS Net income (GAAP) a $ 257 315 123 1,098 547 Preferred stock dividends 14 12 4 50 18 Net income available to common stockholders (GAAP) b 243 303 119 1,048 529 Total notable items, after income tax c 63 23 7 153 (20) Adjusted net income (non-GAAP) d = (a+c) 320 338 130 1,251 527 Adjusted net income available to common stockholders (non-GAAP) e = (b+c) $ 306 326 126 1,201 509 Weighted average common shares outstanding Basic f 14,590,387 15,711,976 9,816,405 15,531,924 9,816,405 Diluted g 14,607,426 15,727,993 9,816,405 15,549,944 9,816,405 EPS (GAAP) Basic b/f $ 16.69 19.27 12.09 67.47 53.88 Diluted b/g 16.67 19.25 12.09 67.40 53.88 Adjusted EPS (non-GAAP) Basic e/f $ 20.97 20.79 12.82 77.33 51.88 Diluted e/g 20.94 20.77 12.82 77.24 51.88 Noninterest income and expense Noninterest income h $ 429 433 114 2,136 508 Impact of notable items, before income tax (139) (145) (3) (995) (67) Adjusted noninterest income i $ 290 288 111 1,141 441 Noninterest expense j $ 760 760 323 3,075 1,234 Impact of notable items, before income tax (170) (183) (12) (770) (41) Adjusted noninterest expense k $ 590 577 311 2,305 1,193 Provision (benefit) for credit losses Provision (benefit) for credit losses $ 79 60 (5) 645 (37) Plus: Day 2 provision for credit losses — — — (513) — Adjusted provision (benefit) for credit losses $ 79 60 (5) 132 (37) PPNR Net income (GAAP) a $ 257 315 123 1,098 547 Plus: Provision (benefit) for credit losses 79 60 (5) 645 (37) Income tax expense (benefit) 135 93 30 264 154 PPNR (non-GAAP) l $ 471 468 148 2,007 664 Plus: total notable items, before income tax 31 38 9 (225) (26) Adjusted PPNR (non-GAAP) m $ 502 506 157 1,782 638 Note: Certain items above do not precisely recalculate as presented due to rounding. 13

Dollars in millions, except share and per share data BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD Non-GAAP Reconciliations (continued) 12/31/22 9/30/22 12/31/21 12/31/22 12/31/21 ROA Net income (GAAP) a $ 257 315 123 1,098 547 Annualized net income n = a annualized 1,020 1,250 488 1,098 547 Adjusted net income (non-GAAP) d 320 338 130 1,251 527 Annualized adjusted net income p = d annualized 1,270 1,341 516 1,251 527 Average assets o 109,792 107,987 58,116 108,933 54,983 ROA n/o 0.93 % 1.16 % 0.84 % 1.01 % 1.00 % Adjusted ROA p/o 1.15 % 1.24 % 0.89 % 1.15 % 0.96 % PPNR ROA PPNR (non-GAAP) l $ 471 468 148 2,007 664 Annualized PPNR q = l annualized 1,868 1,858 589 2,007 664 Adjusted PPNR (non-GAAP) m 502 506 157 1,782 638 Annualized PPNR r = m annualized 1,992 2,009 622 1,782 638 PPNR ROA q/o 1.70 % 1.72 % 1.01 % 1.84 % 1.21 % Adjusted PPNR ROA r/o 1.81 % 1.86 % 1.08 % 1.64 % 1.16 % ROE and ROTCE Annualized net income available to common stockholders s = b annualized $ 964 1,202 472 1,048 529 Annualized adjusted net income available to common stockholders t = e annualized $ 1,214 1,293 500 1,201 509 Average stockholders' equity (GAAP) $ 9,621 10,499 4,633 10,276 4,461 Less: average preferred stock 881 881 340 878 340 Average common stockholders' equity (non-GAAP) u $ 8,740 9,618 4,293 9,398 4,121 Less: average goodwill 346 346 350 346 350 Less: average other intangible assets 143 148 21 156 25 Average tangible common equity (non-GAAP) v $ 8,251 9,124 3,922 8,896 3,746 ROE s/u 11.05 % 12.49 % 10.96 % 11.15 % 12.84 % Adjusted ROE t/u 13.89 % 13.47 % 11.63 % 12.78 % 12.36 % ROTCE s/v 11.70 % 13.17 % 12.00 % 11.78 % 14.12 % Adjusted ROTCE t/v 14.71 % 14.20 % 12.72 % 13.50 % 13.60 % Tangible common equity to tangible assets Stockholders' equity (GAAP) w $ 9,662 9,833 4,738 9,662 4,738 Less: preferred stock 881 881 340 881 340 Common equity (non-GAAP) x $ 8,781 8,952 4,398 8,781 4,398 Less: goodwill 346 346 346 346 346 Less: other intangible assets 140 145 19 140 19 Tangible common equity (non-GAAP) y $ 8,295 8,461 4,033 8,295 4,033 Total assets (GAAP) z 109,298 109,310 58,309 109,298 58,309 Tangible assets (non-GAAP) aa 108,812 108,819 57,944 108,812 57,944 Total equity to total assets w/z 8.84 % 9.00 % 8.13 % 8.84 % 8.13 % Tangible common equity to tangible assets (non-GAAP) y/aa 7.62 % 7.78 % 6.96 % 7.62 % 6.96 % Note: Certain items above do not precisely recalculate as presented due to rounding. 14

Dollars in millions, except share and per share data BancShares BancShares BancShares BancShares BancShares QTD QTD QTD YTD YTD Non-GAAP Reconciliations (continued) 12/31/22 9/30/22 12/31/21 12/31/22 12/31/21 Book value and tangible book value per common share Common shares outstanding at period end bb 14,506,200 14,976,127 9,816,405 14,506,200 9,816,405 Book value per share x/bb $ 605.36 597.75 447.95 605.36 447.95 Tangible book value per share y/bb $ 571.89 564.97 410.74 571.89 410.74 Efficiency ratio Net interest income cc $ 802 795 357 2,946 1,390 Efficiency ratio (GAAP) j / (h + cc) 61.74 % 61.91 % 68.52 % 60.50 % 64.98 % Adjusted efficiency ratio (non-GAAP) k / (i + cc) 54.08 % 53.32 % 66.31 % 56.40 % 65.11 % Rental income on operating lease equipment Rental income on operating lease equipment $ 224 219 — 864 — Less: Depreciation on operating lease equipment 88 87 — 345 — Maintenance and other operating lease expenses 47 52 — 189 — Adjusted rental income on operating lease equipment 89 80 — 330 — Note: Certain items above do not precisely recalculate as presented due to rounding. 15