First Citizens Bancshares, Inc. · NASDAQ:FCNCA
First Citizens Bancshares — Q1 2023 Earnings Presentation
74 slides from First Citizens Bancshares's earnings presentation, May 10, 2023
Slide 1: First Quarter 2023 Earnings Conference Call
First Citizens BancShares, Inc. First Quarter 2023 Earnings Conference Call May 10, 2023
Slide 2: Agenda
2 Agenda Pages Section I – A Momentous First Quarter & Strategic Priorities 4–6 Section II – SVB Acquisition: Areas of Focus 7 – 14 Section III – SVB Acquisition: Purchase Accounting 15 – 22 Section IV – First Quarter 2023 Financial Results 23 – 41 Section V – Financial Areas of Focus 42 – 52 Sectio
Slide 3: Important Notices
3 Important Notices Forward Looking Statements This presentation 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, and future performance and other
Slide 4: A Momentous First Quarter & Strategic Priorities
A Momentous First Quarter & Strategic Priorities Section I
Slide 5: First Quarter 2023 Snapshot
5 First Quarter 2023 Snapshot First quarter results reflected a transformational acquisition, a strong balance sheet and continued long-term strategic focus. FCB and SVB (combined company): Combined Company Highlights (1) : ■ Acquired substantially all loans and assumed all customer TBV accretion (2
Slide 6: Strategic Priorities
6 Strategic Priorities Grow Core Lines of Business • Allocate capital and investments to grow lines of business with the highest returns and opportunity. Optimize Capital & Core Funding • Continue to optimize core funding by growing lower cost deposits. • Use innovation to facilitate growth, expand
Slide 7: SVB Acquisition: Areas of Focus
SVB Acquisition: Areas of Focus Section II
Slide 8: First Citizens and SVB - A Powerful Combination
8 First Citizens and SVB - A Powerful Combination Creating valuable scale, enhancing product offerings and bolstering presence in attractive markets. Acquisition expands growth opportunities, while leveraging our shared approach to relationship banking Advances our capabilities and expertise in the
Slide 9: SVB Commercial Bank and Private Bank Overview
9 SVB Commercial Bank and Private Bank Overview Deep expertise in attractive markets, a client-focused model and proven capabilities. Attractive markets • Nationwide franchise in high growth, resilient geographies (e.g., California, Northeastern U.S.) • Comprehensive suite of banking and investment
Slide 10: Complementary Business Segments
10 Complementary Business Segments Together with SVB, First Citizens business segments provide a broad set of products, services and expertise organized around a client-centric model. Segment FCB Commercial Bank FCB General Bank SVB Rail Business Segment • Focused on the needs of our • Expansive reg
Slide 11: Current Integration Initiatives
11 Current Integration Initiatives First Citizens has a proven track record of successful integrations while ensuring smooth transitions for clients and associates. We are committed to continue running SVB business lines ensuring clients are supported with the same level of service to which they are
Slide 12: Loan portfolios are well-diversified limiting concentration risk
12 Loan portfolios are well-diversified limiting concentration risk March 31, 2023 Total Commercial Services CRE Other Commercial Services CRE Other General Bank Equipment Finance Private Bank Global Equipment 4% Other Finance 5% 4%3% Real Estate Finance 4%2%2% Fund 4% Banking 7% Branch 14% 5% 26% N
Slide 13: Credit Risk of Acquired SVB Loans is Low Overall
13 Credit Risk of Acquired SVB Loans is Low Overall (Percentages represent percent of total acquired loan portfolio as of March 31, 2023) Expect continued strong Watching portfolio- More sensitive to credit performance specific risks market correction 55% Global Fund Banking • Primarily PE/VC capita
Slide 14: Expanding First Citizens' deposit base
14 Expanding First Citizens’ deposit base March 31, 2023 Total Time Deposits Time Deposits Time Deposits Checking with 1% Money market 14% 9% interest 16% 21% & savings Checking with Money market & savings Checking Money market interest with interest & savings 17% 35% 17% 42% $91 B $49 B $140 B 27%
Slide 15: SVB Acquisition: Purchase Accounting
SVB Acquisition: Purchase Accounting Section III
Slide 16: Purchase Accounting Process
16 Purchase Accounting Process Valuation Overview Valuation Focus Areas Valuation led by leading firm with Business Partners extensive banking valuation experience Loan portfolio • Global fund banking • Business leaders and internal • Investor dependent specialists engaged throughout the valuation p
Slide 17: Acquired certain assets and assumed certain liabilities of Silicon Valley Bridge Bank
17 Acquired certain assets and assumed certain liabilities of Silicon Valley Bridge Bank, N.A. from the FDIC ($ in millions) Acquired Balance Sheet at 3/27/23 Acquired Balance Sheet Acquired Balance Sheet Purchase Accounting Impacts After Purchase Accounting Assets Assets Assets Cash $ 35,279 Cash $
Slide 18: Pro Forma Tangible Book Value Per Share Walk-Forward
18 Pro Forma Tangible Book Value Per Share (TBV) Walk-Forward Significant TBV Accretion +112% Cumulative impact +106% relative to 3/31/23 TBV +100% $660.73 $1,250.76 $1,213.82 Individual component $1,180.37 impact $(36.94) $(33.45) (6%) (6%) $590.03 1Q23 TBV before Impact of bargain Pro forma TBV -
Slide 19: Preliminary Acquisition Consideration and Gain on Acquisition
19 Preliminary Acquisition Consideration and Gain on Acquisition Positive marks (excluding the establishment of intangibles) are accretive to tangible book value (TBV) and negative marks (shown in brackets) are dilutive to TBV. Tangible Common Common share TBV per Equity ($ MM) count common share ($
Slide 20: Estimated Purchase Accounting Impacts
20 Estimated Purchase Accounting Impacts First Citizens estimated impact of fair value marks. Weighted 2023 estimated impact on: 2024 estimated impact on: Estimated Fair Average Value Maturity ($ in millions, except per share Adjustment Net int. Nonint. Net int. Nonint. (years) amounts) EPS NIM inc.
Slide 21: Estimated Purchase Accounting Impacts - Loans
21 Estimated Purchase Accounting Impacts - Loans ($ in millions) Estimated Purchase Accounting Impacts - Legacy SVB Loans Highlights March 27, 2023 Beginning Fair Value PCD Ending ($ in millions) Balance % of Total Adjustments Gross-Up Balance • $2.6 billion accretion of Non-PCD loans $ 68,733 96.4
Slide 22: Maintaining a Fortress Balance Sheet
22 Maintaining a Fortress Balance Sheet Strong Capital Position Strong Liquidity Position Ratio Target Range 1Q23 Liquid assets 1Q23 CET1 RBC 9% - 10% 12.53% Available cash $ 37,670 $131 B High quality liquid securities (HQLS) 13,745 Total on-balance sheet liquidity $ 51,415 Total Tier 1 RBC 10.5% -
Slide 23: First Quarter 2023 Financial Results
First Quarter 2023 Financial Results Section IV
Slide 24: 1Q23 Financial Results - Takeaways
24 1Q23 Financial Results - Takeaways 1 Strong reported and adjusted earnings. 7 Strong loan growth (legacy FCB). Reported results boosted by bargain Strong deposit growth (legacy FCB). Added 2 purchase gain, partially offset by Day 2 8 to liquidity position during the quarter. CECL. Adjusted PPNR g
Slide 25: 1Q23 Financial Highlights
25 1Q23 Financial Highlights Quarter-to-date Mar 23 Dec 22 Mar 22 Reported Adjusted Reported Adjusted Reported Adjusted (Non-GAAP) (Non-GAAP) (Non-GAAP) EPS $ 653.64 $ 20.09 $ 16.67 $ 20.94 $ 16.70 $ 18.95 ROE 367.47 % 11.30 % 11.05 % 13.89 % 11.18 % 12.67 % ROTCE 386.69 % 11.89 % 11.70 % 14.71 % 11
Slide 26: Quarter-to-Date Earnings Highlights
26 Quarter-to-Date Earnings Highlights ($ in millions) Increase (decrease) Highlights Reported QTD 4Q22 1Q22 1Q23 4Q22 1Q22 $ % $ % Net interest income $ 850 $ 802 $ 649 $ 48 6.0 % $ 201 31.1 % Note: The commentary below relates to “Reported (GAAP)” Noninterest income 10,259 429 850 9,830 2294.4 9,4
Slide 27: Quarter-to-Date Earnings Highlights (Adjusted)
27 Quarter-to-Date Earnings Highlights ($ in millions) Highlights Increase (decrease) Reported QTD 4Q22 1Q22 Note: The commentary below relates to “Adjusted (Non- 1Q23 4Q22 1Q22 $ % $ % GAAP)” income statements. Net interest income $ 850 $ 802 $ 649 $ 48 6.0 % $ 201 31.1 % 1Q23 vs. 4Q22 Noninterest
Slide 28: Notable Items
28 (1) Notable Items ($ in millions, except per share data) 1Q23 4Q22 1Q22 (2) Rental income on operating lease equipment $ (145) $ (135) $ (124) Realized gain on sale of investment securities available for sale, net 14 — — Fair value adjustment on marketable equity securities, net 9 (2) (3) Gain on
Slide 29: Net interest income and margin (NIM)
29 Net interest income and margin (NIM) ($ in millions) & +5 bps $48 million $850 $795 $802 $65 $700 $649 $785 3.40% 3.36% 3.41% 2.73% 3.04% 1Q22 2Q22 3Q22 4Q22 1Q23 NII SVB contribution NIM Highlights 1Q23 vs 4Q22 1Q23 vs 1Q22 Net interest income increased by $48 million due to a $171 million incre
Slide 30: NIM Rollforward
30 NIM Rollforward 4Q22 to 1Q23 (+5 bps) 0.05% 0.03% 0.10% 0.10% 0.29% 3.41% 3.36% (0.41)% (0.04)% (0.04)% (0.03)% 4Q22 Loan yield Yield on SVB (1) Debt Loan Deposit Deposit Debt rate Purchase 1Q23 investments impact volume growth rate growth accounting & FFS 1Q22 to 1Q23 (+68 bps) 0.25% 0.10% 0.37%
Slide 31: Noninterest income
31 Noninterest income ($ in millions) $10,259 $9,950 - $850 total $9,824 notable items $570 - $431 total notable $424 $433 $429 items $126 $145 $139 $14 $139 $141 $309 - total adjusted $280 $283 $288 $290 $295 (Non-GAAP) (1) 1Q22 2Q22 3Q22 4Q22 1Q23 (1) Adjusted (Non-GAAP) SVB contribution Notable i
Slide 32: Noninterest expense
32 Noninterest expense ($ in millions) $855 $810 $745 $760 $760 $178 $238 $183 $170 $33 $179 $677 - total adjusted $644 $572 $566 $577 $590 (Non-GAAP) (1) 1Q22 2Q22 3Q22 4Q22 1Q23 Adjusted (Non-GAAP) (1) SVB contribution Notable items Highlights 1Q23 vs 4Q22 1Q23 vs 1Q22 Noninterest expense increase
Slide 33: 1Q23 Noninterest income and expense composition
33 1Q23 Noninterest income and expense composition ($ in millions) Adjusted noninterest income (Non-GAAP) Adjusted noninterest expense (Non-GAAP) Adjusted rental income on operating lease equipment ($88) Personnel ($420) Fee income and other service charges ($50) 4% 4% 6% Wealth management services
Slide 34: Balance Sheet Highlights
34 Balance Sheet Highlights ($ in millions, except per share data) Increase (decrease) 1Q23 vs 4Q22 (1) 1Q23 vs 1Q22 (1) SELECT BALANCES 1Q23 4Q22 1Q22 $ % $ % Interest-earning deposits at banks $ 38,522 $ 5,025 $ 9,285 $ 33,497 2666.7 % $ 29,237 314.9 % Investment securities 19,527 19,369 19,469 15
Slide 35: Loans and Leases HFI
35 Loans and Leases HFI ($ in millions) Highlights $138,288 1Q23 vs 4Q22 $14,469 • Loans totaled $138.3 billion at March 31, 2023. • $66.2 billion of loans were acquired in the SVB acquisition. • The remaining $1.3 billion in growth (7.7% annualized) was broad-based from various $66,171 business lin
Slide 36: Deposits
36 Deposits ($ in millions) Highlights $140,050 1Q23 vs. 4Q22 $30,544 • Deposits totaled $140.1 billion at March 31, 2023. • $49.3 billion of deposits were acquired in the $49,259 SVB acquisition. 124 bps • The remaining $1.4 billion in growth (6.3% annualized) was driven primarily by growth in inte
Slide 37: 1Q23 Deposit Composition
37 1Q23 Deposit Composition ($ in billions, except average account size) Type Segment General Banking: Noninterest-bearing demand ($54.7) Branch Network, Wealth & Other ($59.6) 9% Direct Bank ($18.8) 17% 39% Money market & savings ($48.5) 35% 43% Community Association Banking ($7.6) Commercial Banki
Slide 38: Funding Mix
38 Funding Mix ($ in millions) QTD Change Linked Prior Year 1Q23 4Q22 3Q22 2Q22 1Q22 Quarter Quarter Total deposits $ 140,050 75.2 % $ 89,408 93.1 % $ 87,553 91.3 % $ 89,329 95.2 % $ 91,597 96.5 % $ 50,642 $ 48,453 Securities sold under customer repurchase agreements 509 0.3 436 0.5 578 0.6 646 0.7
Slide 39: ACL and Credit Quality Trends
39 ACL and Credit Quality Trends ($ in millions) Net charge-offs (NCO) & NCO ratio Provision (benefit) for credit losses $60 $100 $79 $50 $60 $63 $50 $50 $42 $40 $30 $0 $22 $24 $20 $18 0.27% $15 $(50) $(49) $10 0.13% 0.14% 0.09% 0.10% $(100) (1) (2) $0 1Q22 2Q22 3Q22 4Q22 1Q23 1Q22 2Q22 3Q22 4Q22 1Q
Slide 40: Allowance for credit losses (ACL)
40 Allowance for credit losses (ACL) ($ in millions) 4Q22 to 1Q23 $462 $12 $8 $6 $1,605 $(5) $200 $922 4Q22 Day 1 PCD Day 2 non Loan growth Credit quality Change in Economic 1Q23 gross up - PCD and portfolio specific outlook SVB acq. provision - mix reserves SVB acq. Highlights ACL Coverage 14.3x 12
Slide 41: Capital
41 Capital Risk-based capital ratios Capital ratio rollforward Risk-Based Capital Tier 1 Total Tier 1 CET1 Leverage (1) December 31, 2022 13.18% 11.06% 10.08% 8.99% 14.47% 14.46% 14.86% Net income 0.31% 0.32% 0.32% 0.25% 13.46% 13.18% 13.13% 12.39% 12.37% Change in risk-weighted/average assets -0.13
Slide 42: Financial Areas of Focus
Financial Areas of Focus Section V
Slide 43: Balanced Deposit Portfolio
43 Balanced Deposit Portfolio Total deposits as of March 31, 2023 Legacy FCB Legacy SVB General Bank SVB Branch Network & Wealth, CAB and Other Total deposits $ 49.3 B Total deposits $ 67.2 B NIB % 62 % # of accounts 136,675 $49.3 B NIB % 33 % # of accounts 1,977,952 Average balance $ 360,407 Averag
Slide 44: Deposit Trends Since SVB Acquisition Date
44 Deposit Trends Since SVB Acquisition Date ($ in billions) $100.0 Highlights $92.4 $93.4 $91.3 $92.1 $92.1 Legacy FCB $90.7 $90.8 $90.0 • Deposit trends are strong. • Deposits increased ~ $2.6 B since ~ $2.6 B in net deposit growth since 1Q23 quarter end as we are using our $80.0 Direct Bank chann
Slide 45: Estimated Liquidity Available for Uninsured Deposits
45 Estimated Liquidity Available for Uninsured Deposits ($ in millions) March 31, 2023 April 30, 2023 Total deposits $ 140,050 $ 134,303 Less insured and/or collaterized deposits 74,081 74,422 Total deposits - uninsured $ 65,969 $ 59,881 Estimated liquidity available for uninsured deposits: Availabl
Slide 46: Commercial Real Estate (CRE) Portfolio
46 Commercial Real Estate (CRE) Portfolio ($ in billions) Total Loans FCB’s Commercial Real Estate (CRE) Portfolio as of 3/31/23 $ billions 3/31/23 % of Total Loans Multi-Family $4.0 B 2.9% General Office 2.8 B 2.1% Medical Office 2.8 B 2.0% Total Loans Industrial / Warehouse 2.1 B 1.5% Other CRE $1
Slide 47: General Office CRE Portfolio
47 General Office CRE Portfolio (as of March 31, 2023) Geographic Diversification General Office Portfolio Metrics SC The top 5 MSAs include: VA 4% Other % of total loans 2.1% 26% Los Angeles $326 MM 6% NY 6% Phoenix $201 MM Total % of CRE loans 17.3% MA General 6% Boston $200 MM Office AZ $2.8 B Av
Slide 48: Investment Securities Portfolio: High Quality and Short Duration
48 Investment Securities Portfolio: High Quality and Short Duration Securities Balances Securities Portfolio Highlights $19.5 $18.9 $19.4 ■ Core portfolio strategy targets a shorter duration profile to soften interest rate risk, both in up and down rate environments, to best position the portfolio f
Slide 49: High Quality, Diverse Investment Portfolio
49 High Quality, Diverse Investment Portfolio ($ in millions) Composition of Debt Securities Portfolio (1) as of 3/31/23 48% Avg Duration QTD - March 31, 2023 yield (yrs.) U.S. Treasury 1.17 % 2.2 3% 2% Government agency 1.85 % 3.7 Total Commercial MBS 2.89 % 3.1 Portfolio $19.4 B 12% Residential MB
Slide 50: Investment Securities Portfolio: AOCI Accretion Expected Moving Forward
50 Investment Securities Portfolio: AOCI Accretion Expected Moving Forward ($ in millions) Cumulative Securities Projected Runoff (1) Projected AOCI Accretion Over the Next 7 Quarters Over the Next 7 Quarters $894 (3)% $730 ~39% Burn Down (6)% $544 (9)% (11)% (15)% (19)% (22)% 2Q23 3Q23 4Q23 1Q24 2Q
Slide 51: Net interest income and margin rate sensitivity
51 Net interest income and margin rate sensitivity 1Q23 Interest Rate Sensitivity Highlights 25.0% 22.0% • BancShares continues to have an asset sensitive 20.0% interest rate risk profile. The magnitude of asset 15.0% 11.1% sensitivity increased with the SVB acquisition primarily due to: 10.0% 11.4%
Slide 52: Historical and Forecasted Cumulative Deposit Beta
52 Historical and Forecasted Cumulative Deposit Beta Historical Forecast Terminal beta 31% 30% 28% 173 22% bps 169 bps 158 bps 14% 124 bps 6% 78 bps 35 bps 3Q22 4Q22 1Q23 2Q23 3Q23 4Q23 Actual cumulative beta Expected cumulative beta Rate paid on deposits Highlights 41% 42% • Expect cumulative depos
Slide 53: Financial Outlook
Financial Outlook Section VI
Slide 54: Key Earnings Estimate Assumptions
54 Key Earnings Estimate Assumptions Metric 1Q23 2Q23 - Projected FY23 - Projected Loans and leases $138.3 billion $133 billion - $136 billion $132 billion - $135 billion Deposits $140.1 billion $132 billion - $137 billion $132 billion - $137 billion 3 cuts in the back half of the year Interest rate
Slide 55: Estimated 2023 Earnings Per Share
55 Estimated 2023 Earnings Per Share Pro forma excludes acquisition-related costs +67% - 89% (1, 4, 5) $31 $(2) $150 - $161 $9 - $11 $27 - $31 $112 - $121 $85 - $90 (1) (2) (3) First Citizens Impact of base Base Cost synergies Purchase Intangible First Citizens stand-alone EPS combination combinatio
Slide 56: Appendix
A First Citizens BancShares’ Appendix Section VII
Slide 57: BancShares Balance Sheets (unaudited)
57 BancShares Balance Sheets (unaudited) ($ in millions) 1Q23 4Q22 3Q22 2Q22 1Q22 ASSETS Cash and due from banks $ 1,598 $ 518 $ 481 $ 583 $ 523 Interest-earning deposits at banks 38,522 5,025 6,172 6,476 9,285 Securities purchased under agreements to resell — — — — — Investment in marketable equity
Slide 58: BancShares Income Statements (unaudited)
58 BancShares Income Statements (unaudited) ($ in millions) 1Q23 4Q22 3Q22 2Q22 1Q22 INTEREST INCOME Interest and fees on loans $ 1,017 $ 892 $ 785 $ 655 $ 621 Interest on investment securities 107 92 90 89 83 Interest on deposits at banks 87 56 31 13 6 Total interest income 1,211 1,040 906 757 710
Slide 59: Noninterest income
59 Noninterest income ($ in millions) 1Q23 Change vs Quarter-to-date 4Q22 $ % 1Q23 4Q22 3Q22 2Q22 1Q22 Rental income on operating lease equipment $ 233 $ 224 $ 219 $ 213 $ 208 $ 9 3.9 % Fee income and other service charges 50 46 44 39 36 4 9.1 Wealth management services 42 35 35 37 35 7 19.6 Service
Slide 60: Noninterest expense
60 Noninterest expense ($ in millions) 1Q23 Change vs Quarter-to-date 4Q22 $ % 1Q23 4Q22 3Q22 2Q22 1Q22 Depreciation on operating lease equipment $ 89 $ 88 $ 87 $ 89 $ 81 $ 1 1.5 % Maintenance and other operating lease expenses 56 47 52 47 43 9 17.1 Salaries and benefits 420 354 353 345 356 66 18.7
Slide 61: Debt Securities Overview
61 Debt Securities Overview (1) 1Q23 (1) Duration Carrying Value (2) % of Portfolio Yield (3) (Years) ($ in millions) AFS Portfolio U.S. Treasury $ 1,979 10 % 1.12 % 1.8 Government agency 149 1 5.56 0.4 Commercial mortgage-backed securities 1,585 8 3.59 2.3 Residential mortgage-backed securities 4,8
Slide 62: Average Balances and Yields
62 Average Balances and Yields ($ in millions) Change vs. 1Q23 4Q22 1Q22 4Q22 1Q22 Avg. Income / Yield / Avg. Income / Yield / Avg. Income / Yield / Avg. Income / Yield / Avg. Income / Yield / Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate Balance Expense Rate Lo
Slide 63: Commercial Banking Segment
63 Commercial Banking Segment Highlights (Actual balances; $ in millions) 1Q23 4Q22 1Q22 • The Commercial Banking segment saw strong loan Income Statement growth largely driven by lower prepayments in Commercial Finance and Real Estate Finance. Net interest income $ 240 $ 244 $ 207 Commercial Servic
Slide 64: General Banking Segment
64 General Banking Segment Highlights (Actual balances; $ in millions) 1Q23 4Q22 1Q22 Income Statement • The General Banking segment has had continued loan growth with the primary drivers being branch Net interest income $ 560 $ 546 $ 437 network growth in business/commercial, mortgage Noninterest i
Slide 65: Silicon Valley Banking Segment
65 Silicon Valley Banking Segment Highlights (Actual balances; $ in millions) 1Q23 Income Statement • The Silicon Valley Banking segment was acquired on March 27 and represents earnings from March 27 Net interest income $ 65 through March 31. Noninterest income 14 • Net interest income of $65 millio
Slide 66: Rail Segment
66 Rail Segment Highlights (Actual balances ; $ in millions) 1Q23 4Q22 1Q22 Income Statement • Fleet utilization increased to 97.9% in the first quarter from 97.7% in the linked quarter. Rental income on operating lease equipment $ 176 $ 168 $ 159 • Favorable renewal repricing trends continued for t
Slide 67: Purchase accounting marks
67 Purchase accounting marks ($ in millions) March 31, 2023 December 31, 2022 September 30, 2022 June 30, 2022 March 31, 2022 Loans and leases (1) Beginning balance - unamortized fair value mark $ (117) $ (131) $ (146) $ (145) $ (40) Additions - Merger with CIT Group Inc. — — — — (389) Additions - A
Slide 68: Credit Ratings
68 Credit Ratings First Citizens BancShares, Inc. First-Citizens Bank & Trust Company S&P Moody’s S&P Moody’s Outlook Negative Negative Outlook Negative Negative Issuer BBB Baa2 Issuer BBB + Baa2 Senior unsecured No rating Baa2 Senior unsecured BBB + Baa2 Subordinated No rating Baa2 Subordinated BBB
Slide 69: Non-GAAP Reconciliations
Non-GAAP Reconciliations Section VIII
Slide 70: Notable Items
70 (1) Notable Items ($ in millions, except per share data) 1Q23 4Q22 1Q22 (2) Rental income on operating lease equipment $ (145) $ (135) $ (124) Realized gain on sale of investment securities available for sale, net 14 — — Fair value adjustment on marketable equity securities, net 9 (2) (3) Gain on
Slide 71: Non-GAAP Reconciliations
71 Non-GAAP Reconciliations ($ in millions, except share and per share data) QTD QTD QTD Non-GAAP Reconciliations 3/31/2023 12/31/2022 3/31/2022 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
Slide 72: Non-GAAP Reconciliations
72 Non-GAAP Reconciliations ($ in millions, except share and per share data) QTD QTD QTD Non-GAAP Reconciliations 3/31/2023 12/31/2022 3/31/2022 PPNR Net income (GAAP) a $ 9,518 257 271 Plus: Provision (benefit) for credit losses 783 79 464 Income tax expense (benefit) (47) 135 (46) PPNR (non-GAAP)
Slide 73: Non-GAAP Reconciliations
73 Non-GAAP Reconciliations ($ in millions, except share and per share data) QTD QTD QTD Non-GAAP Reconciliations 3/31/2023 12/31/2022 3/31/2022 ROE and ROTCE Annualized net income available to common stockholders s = b annualized $ 38,543 964 1,071 Annualized adjusted net income available to common
Slide 74: Non-GAAP Reconciliations
74 Non-GAAP Reconciliations ($ in millions, except share and per share data) QTD QTD QTD Non-GAAP Reconciliations 3/31/2023 12/31/2022 3/31/2022 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 $
First Citizens BancShares — Q1 2023 Earnings Presentation on 6ix