FIRST CITIZENS BANCSHARES INC /DE/ Q3 FY2024 earnings call

• Delivered strong financial results with adjusted EPS of $45.87. Net interest margin was resilient despite accretion income declines. • Deposit base stable with continued growth in General Bank and modest growth in SVB Commercial. • Loans declined mainly in Global Fund Banking, but pipeline remained strong and average loan outstandings up from second quarter. • Net charge-offs ticked up slightly but credit remained in good shape, concentrated in specific portfolios. • Capital and liquidity positions strong; repurchased over 350,000 shares of Class A common stock for ~$700M. • Committed to supporting communities affected by Hurricanes Helene and Milton by reopening operations for rebuilding efforts.

Loans declined during the quarter, predominantly in the Global Fund Banking portfolio. Deposits saw continued growth in the General Bank and SVB Commercial balances were up modestly. Adjusted earnings per share was $45.87. Net interest margin was resilient despite accretion income declines. Loans in the General and Commercial banks had mid and upper single-digit annualized percentage growth respectively. The rail segment's profitability remained on track with added railcars and solid re-pricing/utilization trends.

• Net interest income: Fourth quarter expected low to mid-single digits percentage decline; full year $7.1B-$7.2B (down from previous guide). • Loans: Expected to end 2024 in $138B-$140B range, mid-single digit growth. • Deposits: Expected to end 2024 in $150B-$153B range, low to mid-single digit growth. • Net charge-offs: Fourth quarter near/slightly above third quarter, full year range 35-40 basis points. • Noninterest income: Fourth quarter in line to down low single digits; full year $1.89B-$1.91B (higher than previous). • Noninterest expense: Fourth quarter flat; full year $4.76B-$4.79B. • Tax rate: 27%-28% for fourth quarter and full year 2024.

• Economic uncertainties that could impact credit quality. • Deposit costs still under pressure despite peaking in third quarter. • Credit risks in general office, investor-dependent, and small-ticket leasing portfolios. • Potential losses from larger credits in the fourth quarter.

Q: Chris McGratty on SVB loan decline and near term growth A: Craig and Marc discuss average loan balances being a better indicator than period end, with investment activity muted and average loan growth positive Q: Unidentified Analyst on SVB deposits and client additions A: Marc states new client acquisition continues despite market downturn headwinds Q: Samuel Vaga on floating rate loans and deposit betas A: Craig provides loan variable/fixed split (64% variable, 36% fixed) and deposit beta expectations for fourth quarter and next year Q: David Long on SVB deposit balances A: Marc attributes flat deposits in third quarter to diminished venture investment activity, cash burn, and multiple bank accounts for clients Q: Ryan Nash on net interest income trough and asset sensitivity A: Craig and Tom discuss net interest income and margin trough expected in second half of 2025, and asset sensitivity actions including mitigating with liquidity and swap options Q: Christopher Marinac on buyback and liquidity A: Craig mentions plan to use entire $3.5B buyback and potential for another plan in second half of 2025; Tom discusses excess liquidity of ~$7B-$10B that could be redeployed