First Citizens Reports Earnings for Second Quarter 2000

July 24, 2000

RALEIGH, N.C. - First Citizens BancShares, Inc. (Nasdaq: FCNCA) reports increased earnings for the quarter ending June 30, 2000. Earnings for the second quarter totaled $21.5 million compared to $20.3 million for the corresponding period of 1999, an increase of 5.7 percent, according to Lewis R. Holding, chairman of the board.

Per share income for the second quarter 2000 totaled $2.03 compared to $1.91 for the same period a year ago, a 6.3 percent increase. First Citizens' current quarter results generated an annualized return on average assets of 0.88 percent and return on average equity of 11.53 percent.

For the six months ending June 30, 2000, net income was $41.0 million, or $3.88 per share, up 4.1 percent and 4.9 percent, respectively, from the $39.4 million, or $3.70 per share, earned during the first six months of 1999. The year-to-date earnings yielded an annualized return on average assets of 0.85 percent and a return on average equity of 11.11 percent.

Holding attributed the higher net income during 2000 to improvements both in net interest income and noninterest income. Year-to-date net interest income increased 4.3 percent as a result of loan growth and an improved net yield on interest earning assets. For the six-month period ending June 30, 2000, the net yield equaled 4.21 percent, up 11 basis points from the same period in 1999.

During the first six months of 2000, noninterest income was $85.4 million, compared to $77.4 million during the same period of 1999, an increase of 10.3 percent. Noninterest income benefited from higher service charge income, credit card income and fees generated by First Citizens Investor Services.

Noninterest expense for the first six months of 2000 was $194.2 million, compared to $184.6 million for the corresponding period in 1999. Higher personnel and occupancy costs resulting from branch expansion in Georgia and Florida contributed to much of the growth in noninterest expenses in the second quarter of 2000. Additionally, credit card processing costs increased during 2000, the result of higher transaction volume.

As of June 30, 2000, Raleigh, N.C.-based First Citizens had assets of $9.94 billion. Two of BancShares' major subsidiaries are First Citizens Bank with 366 branches in North Carolina, Virginia and West Virgina, and Atlantic States Bank with 30 branches in North Metro Atlanta and Southwest Florida. For more information, visit the First Citizens web site.

CONDENSED STATEMENTS OF INCOME
	Three Months Ended June 30		Six Months Ended June 30
(thousand, except share data; unaudited)	2000	1999	2000	1999
Interest Income	$171,890	$156,960	$335,876	$312,416
Interest expense	80,184	68,821	154,565	138,534
Net interest Income	91,706	88,139	181,311	173,882
Provision for loan losses	2,975	2,178	6,434	4,840
Net interest income after provision for loan losses	88,731	85,961	174,877	169,042
Noninterest Income	44,097	39,271	85,448	77,466
Noninterest expense	97,953	93,387	194,240	184,605
Income before income taxes	34,875	31,845	66,085	61,903
Income taxes	13,421	11,542	25,117	22,552
Net Income	$21,454	$20,303	$40,968	$39,351
Taxable-equivalent net interest income	$92,414	$88,703	$182,788	$175,041
Net income per share	$2.03	$1.91	$3.88	$3.70
Cash dividends per share	0.25	0.25	0.50	0.50
Profitability Information (annualized)
Return on average assets	0.88%	0.85%	0.85%	0.83%
Return on average equity	11.53	11.91	11.11	11.74
Taxable-equivalent net yield on interest-earning assets	4.23	4.11	4.21	4.10

CONDENSED BALANCE SHEETS
	June 30	December 31	June 30
(thousand, except share data; unaudited)	2000	1999	1999
Cash and due from banks	$528,498	$591,605	$453,646
Investment securities	1,543,033	1,371,894	1,975,476
Loans	7,006,824	6,751,039	6,376,372
Reserve for loan losses	(100,515)	(98,690)	(96,765)
Other assets	966,037	1,101,251	919,748
Total assets	$9,943,877	$9,717,099	$9,628,477
Deposits	$8,366,364	$8,173,598	$8,170,433
Other liabilities	818,528	814,744	765,474
Shareholder's equity	758,985	728,757	692,570
Total liabilities and shareholder's equity	$9,943,877	$9,717,099	$9,628,477
Book value per shared	$72.05	$68.68	$65.18
Tangible book value per share	61.92	58.13	54.05

SELECTED AVERAGE BALANCES
	Three Months Ended June 30		Six Months Ended June 30
(thousand, except shares outstanding; unaudited)	2000	1999	2000	1999
Total assets	$9,772,765	$9,605,512	$9,715,508	$9,561,845
Investment securities	1,594,291	2,066,519	1,545,784	2,078,978
Loans	6,917,041	6,289,714	6,853,122	6,235,303
Interest-earning assets	8,788,776	8,659,199	8,727,907	8,618,671
Deposits	8,211,252	8,139,147	8,170,165	8,079,391
Interest-bearing liabilities	7,560,268	7,490,958	7,536,525	7,508,518
Shareholder's equity	$748,648	$683,771	$741,795	$675,883
Shares Outstanding	10,551,766	10,625,559	10,572,072	10,625,559

ASSET QUALITY
	June 30	December 31	June 30
(thousands, unaudited)	2000	1999	1999
Nonaccrual loans	$9,910	$10,720	$11,465
Other real estate	1,249	1,600	2,030
Total nonperforming assets	$11,159	$12,320	$13,495
Accuring loans 90 days or more past due	$6,051	$3,576	$5,181
Nonperforming assets to gross loans plus other real estate	0.16%	0.18%	0.21%
Reserve for loan losses to gross loans	1.43	1.46	1.52
Net charge-offs to average total loans (annualized, year-to-date)	0.14	0.14	0.14

CAPITAL INFORMATION
	June 30	December 31	June 30
(dollars in thousands, unaudited)	2000	1999	1999
Tier 1 capital	$796,516	$760,195	$717,448
Total capital	897,909	859,638	811,511
Risk-weighted assets	7,817,202	7,616,890	7,164,617
Tier 1 capital ratio	10.19%	9.98%	10.01%
Total capital ratio	11.49	11.29	11.33
Leverage capital ratio	8.24	7.91	7.56
First Citizens BancShare, Inc. and Subsidiaries

For more information, contact:
Barbara Thompson
First Citizens BancShares
(919) 716-2716