First Citizens Reports Earnings for Fourth Quarter 2000

January 22, 2001

RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending Dec. 31, 2000, of $24.0 million compared to $19.3 million for the corresponding period of 1999, an increase of 24.2 percent, according to Lewis R. Holding, chairman of the board.

The increase is attributed to higher net interest and noninterest income and $2.3 million in nonrecurring items, which was primarily the result of gains on branch sales. Ignoring the impact of the nonrecurring items, core net income for the fourth quarter of 2000 was $21.7 million, compared to $19.3 million during 1999, an increase of 12.1 percent.

Per share income for the fourth quarter 2000 totaled $2.28 compared to $1.82 for the same period a year ago. First Citizens' current quarter results generated an annualized return on average assets of 0.92 percent and a return on average equity of 11.94 percent. Core net income per share was $2.06 during the fourth quarter of 2000. The core annualized return on average assets was 0.83 percent for the fourth quarter of 2000, and the core return on average shareholders' equity was 10.78 percent. There were no material nonrecurring gains recorded for the fourth quarter of 1999.

For the year ending Dec. 31, 2000, net income was $98.3 million, up 20.2 percent from the $81.8 million earned during 1999. Net income per share was $9.32, compared to $7.70 per share in 1999, an increase of 21.0 percent. Earnings for the year yielded a return on average assets of 0.98 percent and a return on average equity of 12.88 percent, compared to 0.85 percent and 11.79 percent, respectively, for the year ending Dec. 31, 1999.

The after-tax impact of all nonrecurring items was a net gain of $14.7 million during 2000 and a net gain of $2.6 million during 1999. In addition to the gains on branch sales, BancShares recognized $12.1 million in gains on the sale of its mortgage servicing rights in 2000. Adjusting for the impact of nonrecurring items, core net income was $83.6 million during 2000 and $79.2 million during 1999, a 5.6 percent increase in 2000. Core net income per share was $7.93 for 2000 and $7.45 for 1999. The core annualized return on average assets and average equity was 0.84 percent and 10.96 percent, respectively, for the year ending Dec. 31, 2000, and 0.82 percent and 11.42 percent, respectively, for the year ending Dec. 31, 1999.

Although net interest income improved during 2000 when compared to 1999, Holding noted a slowdown in loan demand late in 2000. As a result, net interest income during the fourth quarter increased by only $1.1 million from the third quarter of 2000, or 1.2 percent, to $92.6 million. Funding costs continued to rise from 4.62 percent of interest-bearing liabilities during the third quarter to 4.73 percent during the fourth quarter, causing the net yield on earning assets to decrease from 3.99 percent during the third quarter to 3.90 percent during the fourth quarter.

The provision for loan losses during the fourth quarter of 2000 was $4.9 million, compared to $4.2 million during the third quarter of 2000. The 15.7 percent increase is the result of moderately higher levels of charge-offs. Net charge-offs increased from $3.1 million during the third quarter of 2000 to $3.8 million during the fourth quarter of 2000. Provision for loan losses for the year 2000 totaled $15.5 million, compared to $11.7 million during 1999, an increase of 32.7 percent. Net charge-offs increased 26.7 percent during 2000, and continued loan growth required additional loan loss reserves. Net charge-offs during 2000 represent 0.17 percent of average loans outstanding, compared to 0.14 percent for 1999.

In addition to the gains from nonrecurring items, Holding attributed the higher net income during 2000 to improvements in both net interest income and noninterest income. Year-to-date net interest income increased 4.3 percent as a result of balance sheet growth. For the year ending Dec. 31, 2000, the net yield on earning assets equaled 4.10 percent, unchanged from 1999.

During 2000, noninterest income was $202.2 million, compared to the $165.3 million during the same period in 1999, an increase of 22.3 percent. In addition to nonrecurring gains, noninterest income benefited from increases in service charge income, credit card income and fees from processing services.

Noninterest expense was $394.8 million and $375.6 million in 2000 and 1999, respectively. Higher personnel and occupancy costs resulting from further branch expansion in Georgia and Florida contributed to much of the growth in noninterest expenses in the fourth quarter of 2000.

As of Dec. 31, 2000, Raleigh, N.C.-based First Citizens had assets of $10.69 billion. Two of BancShares' major subsidiaries are First Citizens Bank with more than 360 branches in North Carolina, Virginia and West Virgina, and Atlantic States Bank with 40 branches in North Metro Atlanta and Southwest and North Florida. For more information, visit the First Citizens web site.

---

CONDENSED STATEMENTS OF INCOME
(thousand, except share data; unaudited)	Three Months Ended December 31 2000	1999	Year Months Ended December 31 2000	1999
Interest Income	$189,328	$161,251	$708,170	$$633,891
Interest expense	96,754	72,511	342,828	281,542
Net interest Income	92,574	88,740	365,342	352,349
Provision for loan losses	4,857	3,503	15,488	11,672
Net interest income after provision for loan losses	87,717	85,237	349,854	340,677
Noninterest Income	49,384	41,975	202,190	165,339
Noninterest expense	99,287	95,911	394,784	375,620
Income before income taxes	37,814	31,301	157,260	130,396
Income taxes	13,826	11,984	58,949	48,596
Net Income	$23,988	$19,317	$98,311	$81,800
Taxable-equivalent net interest income	$93,240	$89,267	$368,190	$354,566
Net income per share	$2.28	$1.82	$9.32	$7.70
Cash dividends per share	0.25	0.25	1.00	1.00
Profitability Information (annualized)
Return on average assets	0.92%	0.79%	0.98%	0.85%
Return on average equity	11.94	10.64	12.88	11.79
Taxable-equivalent net yield on interest-earning assets	3.97	4.10	4.10	4.10

CONDENSED BALANCE SHEETS
(thousand, except share data; unaudited)	Decemeber 30 2000	December 31 1999	Change
Cash and due from banks	$755,930	$591,605	27.78%
Investment securities	1,816,720	1,371,894	32.42%
Loans	7,109,692	6,751,039	5.31%
Reserve for loan losses	(102,655)	(98,690)	4.02%
Other assets	1,111,930	1,101,251	0.97%
Total assets	$10,691,617	$9,717,099	10.03%
Deposits	$8,971,869	$8,173,598	9.77%
Other liabilities	909,021	814,744	11.57%
Shareholder's equity	810,727	728,757	11.25%
Total liabilities and shareholder's equity	$10,691,617	$9,717,099	10.03%
Book value per shared	$77.04	$68.68	12.17%
Tangible book value per share	65.76	58.13	13.13%

SELECTED AVERAGE BALANCES
(thousand, except share data; unaudited)	Three Months Ended December 30 2000	1999	Year Ended December 31 200	1999
Total assets	$10,420,204	$9,721,360	$10,005,597	$9,622,774
Investment securities	1,747,536	1,583,216	1,618,584	1,908,300
Loans	7,077,991	6,646,312	6,955,772	6,399,114
Interest-earning assets	9,335,530	8,627,990	8,984,878	8,638,698
Deposits	8,693,634	8,140,962	8,390,920	8,105,443
Interest-bearing liabilities	8,126,969	7,533,727	7,772,889	7,517,483
Shareholder's equity	$799,234	$720,617	$763,386	$693,559
Shares Outstanding	10,528,679	10,625,208	10,551,607	10,625,457

ASSET QUALITY
(dollars in thousand, unaudited)	December 30 2000	December 31 1999	Change
Nonaccrual loans	$15,933	$10,720	48.63%
Other real estate	1,880	1,600	17.50%
Total nonperforming assets	$17,813	$12,320	44.59%
Accuring loans 90 days or more past due	$6,731	$3,576	88.23%
Nonperforming assets to gross loans plus other real estate	0.25%	0.18%
Reserve for loan losses to gross loans	1.44	1.46
Net charge-offs (year-to-date)	0.17	0.14

CAPITAL INFORMATION
(dollars in thousands, unaudited)	December 31 2000	December 31 1999	Change
Tier 1 capital	$835,678	$760,195	9.93%
Total capital	940,260	859,638	9.38%
Risk-weighted assets	8,057,478	7,616,890	5.78%
Tier 1 capital ratio	10.37%	9.98%
Total capital ratio	11.67	11.29
Leverage capital ratio	8.11	7.91
First Citizens BancShares, Inc. and Subsidiaries

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