Document

Chairman and CEO Frank B. Holding, Jr. said: “We are pleased with our solid financial performance in the first quarter, marked by continued momentum across all our lines of business. Since the completion of our acquisition of certain assets and liabilities of Silicon Valley Bridge Bank, N.A. on March 27, 2023, we have made strides to integrate our two companies, including meaningful engagement with key Silicon Valley Bank leaders and clients. Building on the considerable strengths Silicon Valley Bank brings to the business, including exceptional talent and expertise, significant scale, geographic diversity, and meaningful solutions for customers, we are confident we will continue to deliver long-term value for our shareholders. In an environment of macroeconomic challenges and uncertainties, we continue to operate with solid capital and liquidity positions. We remain encouraged by the resiliency of our clients in the face of elevated inflation and rising interest rates and we look forward to continuing to support them.”

•On March 27, 2023, BancShares announced that through its banking subsidiary, First-Citizens Bank & Trust Company, it assumed all customer deposits and certain other liabilities and acquired substantially all loans and certain other assets of Silicon Valley Bridge Bank, N.A. (the “Acquisition”), as successor to Silicon Valley Bank from the Federal Deposit Insurance Corporation (the "FDIC"). In connection with the Acquisition, BancShares identified a new business segment (the “SVB segment”) which includes the assets, liabilities and results of operations related to the Acquisition.

•The Acquisition included total assets with estimated fair values of approximately $106.60 billion and total loans with estimated fair values of approximately $68.50 billion, including Global Fund Banking, Private Bank, and the Technology & Life Science and Healthcare loan portfolios and $35.28 billion in cash and interest-earning deposits at banks. BancShares also assumed approximately $55.96 billion in customer deposits and entered into a five-year note payable to the FDIC (the “Purchase Money Note”) of approximately $35.15 billion, bearing an interest rate of 3.50%. The deposits were acquired without a premium and the assets were acquired at a discount of $16.45 billion.

The results for the first quarter include the Acquisition. Measures referenced as adjusted below are non-GAAP financial measures (refer to the supporting tables for a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure). Net income for the three months ended March 31, 2023, was $9.52 billion compared to $257 million for the three months ended December 31, 2022. Net income available to common stockholders for the three months ended March 31, 2023, was $9.50 billion, or $653.64 per diluted common share, compared to $243 million, or $16.67 per diluted common share in the fourth quarter of 2022.

•Noninterest income totaled $10.26 billion compared to $429 million in the fourth quarter. The increase was primarily due to a $9.82 billion gain on acquisition. Adjusted noninterest income totaled $309 million compared to $290 million in the fourth quarter, an increase of $19 million. The increase was primarily due a $14 million gain on customer derivative positions, a $7 million increase in wealth management services due to increased brokerage transactions and higher assets under management, a $4 million increase in fee income associated with higher capital markets fees, and a $8 million increase spread among various items, partially offset by a $7 million decline in factoring commissions, a $5 million decrease in cardholder services, and a $2 million decline in income from bank-owned life insurance.

•Deposits totaled $140.05 billion, an increase of $50.64 billion compared to $89.41 billion as of December 31, 2022. The increase is primarily due to SVB segment deposits of $49.26 billion as of March 31, 2023. The remaining $1.26 billion increase was due to a $2.32 billion increase in time deposits and a $1.3 billion increase in savings account balances, partially offset by a $914 million decrease in money market deposits, a $472 million decrease in checking with interest accounts, and a $817 million decline in noninterest bearing deposits driven by a reduction in commercial deposit balances. Noninterest-bearing deposits represented 39.0% of total deposits as of March 31, 2023, compared to 27.9% of total deposits at December 31, 2022. The cost of average total deposits was 1.24% for the first quarter, up 46 basis points compared to the fourth quarter of 2022.

•Provision for credit losses totaled $783 million compared to $79 million in the fourth quarter, an increase of $704 million. The increase was primarily related to the Acquisition, which included provisions for credit losses of $462 million for non-PCD loans and $254 million for unfunded commitments. Adjusted provision for credit losses totaled $63 million compared to $79 million in the fourth quarter of 2022, a decrease of $16 million. The decrease was due to a $23 million decrease in the reserve for unfunded commitments and a $19 million decrease in reserve build (from $40 million in the fourth quarter of 2022 to $21 million in the first quarter of 2023), partially offset by a $26 million increase in net charge-offs. The $21 million reserve build for the quarter was a result of loan growth and deterioration in credit quality, partially offset by portfolio mix and CECL macroeconomic forecasts. Net charge-offs totaled $50 million, or a ratio of 0.27% of average loans, compared to $24 million, or a ratio of 0.14% of average loans, during the fourth quarter of 2022.

•The allowance for credit losses totaled $1.6 billion, or 1.16% of total loans at March 31, 2023, an increase of $683 million from December 31, 2022. The Acquisition resulted in a $662 million increase in the allowance for credit losses, which included $200 million related to PCD loans and $462 million related to non-PCD loans. The remaining $21 million increase was primarily related to portfolio growth, mild credit quality deterioration, and higher specific reserves partially offset by improvement in the macroeconomic forecasts.

First Citizens BancShares, Inc., a top 20 U.S. financial institution with more than $200 billion in assets, is the financial holding company for First-Citizens Bank & Trust Company ("First Citizens Bank"). Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens Bank has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of more than 550 branches and offices in 23 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. First Citizens Bank, Member FDIC. Discover more at firstcitizens.com.

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, asset quality, future performance, and other strategic goals 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, including changes in competitive pressures among financial institutions and the impacts related to or resulting from recent bank failures and other volatility, the financial success or changing conditions or strategies of BancShares’ vendors or customers, including changes in demand for deposits, loans and other financial services, fluctuations in interest rates, changes in the quality or composition of BancShares’ loan or investment portfolio, 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”), changes to estimates of future costs and benefits of actions taken by BancShares, BancShares’ ability to main adequate sources of funding and liquidity, 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, including the risk that such laws, regulations and regulatory interpretations may change, the availability of capital and personnel, and the failure to realize the anticipated benefits of BancShares’ previous acquisition transactions, including the Acquisition and the recently completed transaction with CIT, which acquisition risks include (1) disruption from the transactions 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 or increased regulatory compliance obligations or oversight, (3) reputational risk and the reaction of the parties’ customers to the transactions, (4) the risk that the cost savings and any revenue synergies from the transactions may not be realized or take longer than anticipated to be realized, (5) difficulties experienced in the integration of the businesses, (6) the ability to retain customers following the transactions and (7) adjustments to BancShares’ estimated purchase accounting impacts of the Acquisition.

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, 2022, and its other filings with the Securities and Exchange Commission (the “SEC”).

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. 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. Each non-GAAP measure is reconciled to the most comparable GAAP measure in the non-GAAP reconciliation table below and notable items are summarized in a separate table.


Dollars in millions, except per share data


Summary Financial Data & Key Metrics	1Q23			4Q22			1Q22
Results of Operations:
Net interest income	$	850		$	802		$	649
Provision for credit losses	783			79			464
Net interest income after provision for credit losses	67			723			185
Noninterest income	10,259			429			850
Noninterest expense	855			760			810
Income before income taxes	9,471			392			225
Income tax (benefit) expense	(47)			135			(46)
Net income	9,518			257			271
Preferred stock dividends	14			14			7
Net income available to common stockholders	$	9,504		$	243		$	264
Adjusted net income available to common stockholders(1)	$	292		$	306		$	299
Pre-tax, pre-provision net revenue (PPNR)(1)	$	10,254		$	471		$	689

Per Share Information:
Diluted earnings per common share (EPS)	$	653.64		$	16.67		$	16.70
Adjusted diluted earnings per common share (EPS)(1)	20.09			20.94			18.95
Book value per common share	1,262.76			605.36			605.48
Tangible book value per common share (TBV)(1)	1,213.82			571.89			574.09

Key Performance Metrics:
Return on average assets (ROA)	33.23		%	0.93		%	1.00		%
Adjusted ROA(1)	1.07			1.15			1.12
PPNR ROA(1)	35.80			1.70			2.54
Adjusted PPNR ROA(1)	1.69			1.81			1.31
Return on average common equity (ROE)	367.47			11.05			11.18
Adjusted ROE(1)	11.30			13.89			12.67
Return on average tangible common equity (ROTCE)(1)	386.69			11.70			11.83
Adjusted ROTCE(1)	11.89			14.71			13.41
Efficiency ratio	7.70			61.74			53.95
Adjusted efficiency ratio(1)	58.39			54.08			61.57
Net interest margin (NIM)(2)	3.41			3.36			2.73

Select Balance Sheet Items at Period End:
Total investment securities	$	19,527		$	19,369		$	19,469
Total loans and leases	138,288			70,781			65,524
Total operating lease equipment, net	8,331			8,156			7,972
Total deposits	140,050			89,408			91,597
Total borrowings	46,094			6,645			3,292
Loan to deposit ratio	98.74		%	79.17		%	71.53		%
Noninterest-bearing deposits to total deposits	39.02			27.87			28.24

Capital Ratios at Period End: (3)
Total risk-based capital ratio	14.86		%	13.18		%	14.47		%
Tier 1 risk-based capital ratio	13.13			11.06			12.39
Common equity Tier 1 ratio	12.53			10.08			11.34
Tier 1 leverage capital ratio	16.72			8.99			9.55

Asset Quality at Period End:
Nonaccrual loans to total loans and leases	0.60		%	0.89		%	0.82		%
Allowance for credit losses (ACL) to loans and leases	1.16			1.30			1.29
Net charge-off ratio	0.27			0.14			0.09

(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.


Dollars in millions, except share and per share data


Income Statement (unaudited)	1Q23		4Q22		1Q22
Interest income
Interest and fees on loans	$	1,017	$	892	$	621
Interest on investment securities	107		92		83
Interest on deposits at banks	87		56		6
Total interest income	1,211		1,040		710
Interest expense
Deposits	288		176		39
Borrowings	73		62		22
Total interest expense	361		238		61
Net interest income	850		802		649
Provision for credit losses	783		79		464
Net interest income after provision for credit losses	67		723		185
Noninterest income
Rental income on operating lease equipment	233		224		208
Fee income and other service charges	50		46		36
Wealth management services	42		35		35
Service charges on deposit accounts	24		22		27
Factoring commissions	19		26		27
Cardholder services, net	21		26		25
Merchant services, net	10		8		10
Insurance commissions	13		13		12
Realized loss on sale of investment securities available for sale, net	(14)		—		—
Fair value adjustment on marketable equity securities, net	(9)		2		3
Bank-owned life insurance	5		7		8
Gain on sale of leasing equipment, net	4		2		6
Gain on acquisition	9,824		—		431
Gain on extinguishment of debt	—		—		6
Other noninterest income	37		18		16
Total noninterest income	10,259		429		850
Noninterest expense
Depreciation on operating lease equipment	89		88		81
Maintenance and other operating lease expenses	56		47		43
Salaries and benefits	420		354		356
Net occupancy expense	50		48		48
Equipment expense	58		55		52
Professional fees	12		11		12
Third-party processing fees	29		26		24
FDIC insurance expense	18		5		12
Marketing expense	15		21		8
Acquisition-related expenses	28		29		135
Intangible asset amortization	5		6		6
Other noninterest expense	75		70		33
Total noninterest expense	855		760		810
Income before income taxes	9,471		392		225
Income tax (benefit) expense	(47)		135		(46)
Net income	$	9,518	$	257	$	271
Preferred stock dividends	14		14		7
Net income available to common stockholders	$	9,504	$	243	$	264

Basic earnings per common share	$	654.22	$	16.69	$	16.70
Diluted earnings per common share	$	653.64	$	16.67	$	16.70
Weighted average common shares outstanding (basic)	14,526,693		14,590,387		15,779,153
Weighted average common shares outstanding (diluted)	14,539,709		14,607,426		15,779,153


Dollars in millions

Balance Sheet (unaudited)	March 31, 2023		December 31, 2022		March 31, 2022
Assets
Cash and due from banks	$	1,598	$	518	$	523
Interest-earning deposits at banks	38,522		5,025		9,285
Securities purchased under agreements to resell	—		—		—
Investment in marketable equity securities	85		95		100
Investment securities available for sale	9,061		8,995		9,295
Investment securities held to maturity	10,381		10,279		10,074
Assets held for sale	94		60		83
Loans and leases	138,288		70,781		65,524
Allowance for credit losses	(1,605)		(922)		(848)
Loans and leases, net of allowance for credit losses	136,683		69,859		64,676
Operating lease equipment, net	8,331		8,156		7,972
Premises and equipment, net	1,743		1,456		1,431
Goodwill	346		346		346
Other intangible assets	364		140		156
Other assets	7,450		4,369		4,656
Total assets	$	214,658	$	109,298	$	108,597

Liabilities
Deposits:
Noninterest-bearing	$	54,649	$	24,922	$	25,867
Interest-bearing	85,401		64,486		65,730
Total deposits	140,050		89,408		91,597
Credit balances of factoring clients	1,126		995		1,150
Borrowings:


Short-term borrowings	1,009		2,186		616




Long-term borrowings	45,085		4,459		2,676
Total borrowings	46,094		6,645		3,292
Other liabilities	8,172		2,588		1,988
Total liabilities	$	195,442	$	99,636	$	98,027

Stockholders’ equity
Preferred stock	881		881		881
Common stock:
Class A - $1 par value	14		14		15
Class B - $1 par value	1		1		1
Additional paid in capital	4,104		4,109		5,344
Retained earnings	14,885		5,392		4,634
Accumulated other comprehensive loss	(669)		(735)		(305)
Total stockholders’ equity	19,216		9,662		10,570
Total liabilities and stockholders’ equity	$	214,658	109,298		108,597


Dollars in millions, except share per share data


Notable Items (1)	1Q23		4Q22		1Q22
Noninterest income
Rental income on operating lease equipment (2)	$	(145)	$	(135)	$	(124)
Realized loss on sale of investment securities available for sale, net	14		—		—
Fair value adjustment on marketable equity securities, net	9		(2)		(3)
Gain on sale of leasing equipment, net	(4)		(2)		(6)
Gain on acquisition	(9,824)		—		(431)
Gain on extinguishment of debt	—		—		(6)


Noninterest income - total adjustments	$	(9,950)	$	(139)	$	(570)
Noninterest expense
Depreciation on operating lease equipment (2)	(89)		(88)		(81)
Maintenance and other operating lease equipment expense (2)	(56)		(47)		(43)
Acquisition-related expenses	(28)		(29)		(135)
Intangible asset amortization	(5)		(6)		(6)

Other noninterest expense (3)	—		—		27
Noninterest expense - total adjustments	$	(178)	$	(170)	$	(238)

Day 2 provision, including provision for unfunded commitments	(716)		—		(513)
Provision for credit losses - investment securities available for sale	(4)		—		—
Provision for credit losses - total adjustments	$	(720)	$	—	$	(513)
Impact of notable items on pre-tax income	$	(9,052)	$	31	$	181
Income tax impact (4) (5)	160		(32)		146
Impact of notable items on net income	$	(9,212)	$	63	$	35
Impact of notable items on diluted EPS	$	(633.55)	$	4.27	$	2.25

(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.


Dollars in millions, except share and per share data

Condensed Income Statement (unaudited) - Adjusted for Notable Items (1)
	1Q23		4Q22		1Q22




Interest income	$	1,211	$	1,040	$	710



Interest expense	361		238		61
Net interest income	850		802		649
Provision (benefit) for credit losses	63		79		(49)
Net interest income after provision for credit losses	787		723		698
















Noninterest income	309		290		280













Noninterest expense	677		590		572
Income before income taxes	419		423		406
Income tax expense	113		103		100
Net income	$	306	$	320	$	306
Preferred stock dividends	14		14		7
Net income available to common stockholders	$	292	$	306	$	299

Basic earnings per common share	$	20.11	$	20.97	$	18.95
Diluted earnings per common share	$	20.09	$	20.94	$	18.95
Weighted average common shares outstanding (basic)	14,526,693		14,590,387		15,779,153
Weighted average common shares outstanding (diluted)	14,539,709		14,607,426		15,779,153


Dollars in millions

Loans & Leases by Class (end of period)	March 31, 2023		December 31, 2022		March 31, 2022
Loans & Leases by Class
Commercial
Commercial construction	$	2,971	$	2,804	$	2,633
Owner-occupied commercial mortgages	14,456		14,473		13,553
Non-owner-occupied commercial mortgages	10,292		9,902		9,293
Commercial and industrial	24,508		24,105		22,402
Leases	2,163		2,171		2,220
Total commercial	$	54,390	$	53,455	$	50,101

Consumer
Residential mortgage	$	13,727	$	13,309	$	11,711
Revolving mortgage	1,916		1,951		1,840
Consumer auto	1,452		1,414		1,320
Consumer other	632		652		552
Total consumer	$	17,727	$	17,326	$	15,423

SVB
Global fund banking	$	36,097	$	—	$	—
Investor dependent - early stage	1,994		—		—
Investor dependent - growth stage	4,418		—		—
Innovation C&I and cash flow dependent	9,193		—		—
Private Bank	9,476		—		—
CRE	2,444		—		—
Other	2,549		—		—
Total SVB	$	66,171	$	—	$	—
Total loans and leases	$	138,288	$	70,781	$	65,524
Less: Allowance for credit losses	(1,605)		(922)		(848)
Total loans and leases, net of allowance for credit losses	$	136,683	$	69,859	$	64,676




Deposits by Type (end of period)	March 31, 2023		December 31, 2022		March 31, 2022
Demand	$	54,649	$	24,922	$	25,898
Checking with interest	23,743		16,202		16,702
Money market	30,598		21,040		26,249
Savings	17,932		16,634		13,506
Time	13,128		10,610		9,242
Total deposits	$	140,050	$	89,408	$	91,597


Dollars in millions


Credit Quality & Allowance	1Q23			4Q22			1Q22
Nonaccrual loans	$	828		$	627		$	538
Ratio of nonaccrual loans to total loans	0.60		%	0.89		%	0.82		%

Charge-offs	$	(62)		$	(39)		$	(33)
Recoveries	12			15			18
Net charge-offs	$	(50)		$	(24)		$	(15)
Net charge-off ratio	0.27		%	0.14		%	0.09		%


Allowance for credit losses to loans ratio	1.16		%	1.30		%	1.29		%

Allowance for credit losses - beginning	$	922		$	882		$	178
Initial PCD ACL	200			—			284
Day 2 provision, excluding provision for unfunded commitments	462			—			454
Provision (benefit) for credit losses	71			64			(53)
Net charge-offs	(50)			(24)			(15)
Allowance for credit losses - ending	$	1,605		$	922		$	848


Dollars in millions
Average Balance Sheet	1Q23						4Q22						1Q22
	Avg Balance		Income/Expense		Yield/Rate		Avg Balance		Income/Expense		Yield/Rate		Avg Balance		Income/Expense		Yield/Rate
Loans and leases (1)(2)	$	73,900	$	1,017	5.57	%	$	69,290	$	892	5.10	%	$	64,144	$	621	3.92	%
Total investment securities	19,416		107		2.21		18,876		92		1.95		19,492		83		1.71

Interest-earning deposits at banks	7,585		87		4.61		6,193		56		3.60		11,476		6		0.19
Total interest-earning assets (2)	$	100,901	$	1,211	4.85	%	$	94,359	$	1,040	4.37	%	$	95,112	$	710	3.02	%

Operating lease equipment, net (including held for sale)	$	8,236					$	8,049					$	7,924
Cash and due from banks	595						500						536
Allowance for credit losses	(936)						(886)						(914)
All other noninterest-earning assets	7,368						7,770						7,736
Total assets	$	116,164					$	109,792					$	110,394
Interest-bearing deposits:
Checking with interest	$	16,499	$	22	0.50	%	$	15,985	$	13	0.24	%	$	16,614	$	5	0.10	%
Money market	21,216		80		1.53		21,200		60		1.13		26,199		15		0.24
Savings	17,521		110		2.54		15,831		69		1.73		13,659		9		0.26
Time deposits	12,126		76		2.55		9,516		34		1.42		9,794		10		0.43
Total interest-bearing deposits	67,362		288		1.73		62,532		176		1.12		66,266		39		0.24
Borrowings:
Securities sold under customer repurchase agreements	455		—		0.30		514		—		0.27		600		—		0.16
Short-term FHLB Borrowings	323		4		4.67		2,080		20		3.77		—		—		—
Short-term borrowings	778		4		2.23		2,594		20		3.04		600		—		0.16
Federal Home Loan Bank borrowings	3,284		40		4.96		2,818		28		3.90		641		2		1.29
Senior unsecured borrowings	883		5		2.06		906		4		2.08		2,719		12		1.71
Subordinated debt	1,048		9		3.54		1,051		9		3.38		1,060		8		2.96
Other borrowings	1,978		15		2.95		25		1		5.76		85		—		1.85
Long-term borrowings	7,193		69		3.84		4,800		42		3.45		4,505		22		1.95
Total borrowings	7,971		73		3.68		7,394		62		3.32		5,105		22		1.74
Total interest-bearing liabilities	$	75,333	$	361	1.94	%	$	69,926	$	238	1.35	%	$	71,371	$	61	0.35	%

Noninterest-bearing deposits	$	26,482					$	26,510					$	25,354
Credit balances of factoring clients	1,007						1,174						1,160
Other noninterest-bearing liabilities	1,973						2,561						2,086
Stockholders' equity	11,369						9,621						10,423
Total liabilities and stockholders’ equity	$	116,164					$	109,792					$	110,394

Net interest income			$	850					$	802					$	649
Net interest spread (2)					2.91	%					3.02	%					2.67	%
Net interest margin (2)					3.41	%					3.36	%					2.73	%

(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.


Dollars in millions, except share and per share data


Non-GAAP Reconciliations		1Q23		4Q22		1Q22

Net income and EPS
Net income (GAAP)	a	$	9,518	$	257	$	271
Preferred stock dividends		14		14		7
Net income available to common stockholders (GAAP)	b	9,504		243		264
Total notable items, after income tax	c	(9,212)		63		35
Adjusted net income (non-GAAP)	d = (a+c)	306		320		306
Adjusted net income available to common stockholders (non-GAAP)	e = (b+c)	$	292	$	306	$	299
Weighted average common shares outstanding
Basic	f	14,526,693		14,590,387		15,779,153
Diluted	g	14,539,709		14,607,426		15,779,153
EPS (GAAP)
Basic	b/f	$	654.22	$	16.69	$	16.70
Diluted	b/g	653.64		16.67		16.70
Adjusted EPS (non-GAAP)
Basic	e/f	$	20.11	$	20.97	$	18.95
Diluted	e/g	20.09		20.94		18.95

Noninterest income and expense
Noninterest income	h	$	10,259	$	429	$	850
Impact of notable items, before income tax		(9,950)		(139)		(570)
Adjusted or core noninterest income	i	$	309	$	290	$	280

Noninterest expense	j	$	855	$	760	$	810
Impact of notable items, before income tax		(178)		(170)		(238)
Adjusted or core noninterest expense	k	$	677	$	590	$	572

Provision (benefit) for credit losses
Provision (benefit) for credit losses		$	783	$	79	$	464
Plus: Day 2 provision for credit losses		(716)		—		(513)
Plus: Specific reserve for AFS securities		(4)		—		—
Adjusted provision (benefit) for credit losses		$	63	$	79	$	(49)

PPNR
Net income (GAAP)	a	$	9,518	$	257	$	271
Plus:
Provision for credit losses		783		79		464
Income tax expense (benefit)		(47)		135		(46)
PPNR (non-GAAP)	l	$	10,254	$	471	$	689
Plus: total notable items, before income tax		(9,772)		31		(332)
Adjusted PPNR (non-GAAP)	m	$	482	$	502	$	357



Note: Certain items above do not precisely recalculate as presented due to rounding.


Dollars in millions, except share and per share data



Non-GAAP Reconciliations (continued)		1Q23			4Q22			1Q22

ROA
Net income (GAAP)	a	$	9,518		$	257		$	271
Annualized net income	n = a annualized	38,602			1,020			1,099
Adjusted net income (non-GAAP)	d	306			320			306
Annualized adjusted net income	p = d annualized	1,244			1,270			1,242
Average assets	o	116,164			109,792			110,394
ROA	n/o	33.23		%	0.93		%	1.00		%
Adjusted ROA	p/o	1.07			1.15			1.12

PPNR ROA
PPNR (non-GAAP)	l	$	10,254		$	471		$	689
Annualized PPNR	q = l annualized	41,586			1,868			2,796
Adjusted PPNR (non-GAAP)	m	482			502			357
Annualized PPNR	r = m annualized	1,954			1,992			1,452
PPNR ROA	q/o	35.80		%	1.70		%	2.54		%
Adjusted PPNR ROA	r/o	1.69			1.81			1.31

ROE and ROTCE
Annualized net income available to common shareholders	s = b annualized	$	38,543		$	964		$	1,071
Annualized adjusted net income available to common shareholders	t = e annualized	$	1,185		$	1,214		$	1,214
Average stockholders' equity (GAAP)		$	11,369		$	9,621		$	10,423
Less: average preferred stock		881			881			863
Average common stockholders' equity (non-GAAP)	u	$	10,488		$	8,740		$	9,560
Less: average goodwill		346			346			346
Less: average other intangible assets		175			143			182
Average tangible common equity (non-GAAP)	v	$	9,967		$	8,251		$	9,032
ROE	s/u	367.47		%	11.05		%	11.18		%
Adjusted ROE	t/u	11.30			13.89			12.67
ROTCE	s/v	386.69			11.70			11.83
Adjusted ROTCE	t/v	11.89			14.71			13.41

Tangible common equity to tangible assets
Stockholders' equity (GAAP)	w	$	19,216		$	9,662		$	10,570
Less: preferred stock		881			881			881
Common equity (non-GAAP)	x	$	18,335		$	8,781		$	9,689
Less: goodwill		346			346			346
Less: other intangible assets		364			140			156
Tangible common equity (non-GAAP)	y	$	17,625		$	8,295		$	9,187
Total assets (GAAP)	z	214,658			109,298			108,597
Tangible assets (non-GAAP)	aa	213,948			108,812			108,095
Total equity to total assets	w/z	8.95		%	8.84		%	9.73		%
Tangible common equity to tangible assets (non-GAAP)	y/aa	8.24			7.62			8.50

Note: Certain items above do not precisely recalculate as presented due to rounding.


Dollars in millions, except share and per share data



Non-GAAP Reconciliations (continued)		1Q23			4Q22			1Q22

Book value and tangible book value per common share
Common shares outstanding at period end	bb	14,519,993			14,506,200			16,001,508
Book value per share	x/bb	$	1,262.76		$	605.36		$	605.48
Tangible book value per share	y/bb	1,213.82			571.89			574.09

Efficiency ratio
Net interest income	cc	$	850		$	802		$	649
Efficiency ratio (GAAP)	j / (h + cc)	7.70		%	61.74		%	53.95		%
Adjusted efficiency ratio (non-GAAP)(1)	k / (i + cc)	58.39			54.08			61.57


























Rental income on operating lease equipment
Rental income on operating lease equipment		$	233		$	224		$	208
Less:
Depreciation on operating lease equipment		89			88			81
Maintenance and other operating lease expenses		56			47			43
Adjusted rental income on operating lease equipment		$	88		$	89		$	84


Note: Certain items above do not precisely recalculate as presented due to rounding.