First Citizens Reports Earnings for Third Quarter 2002

October 28, 2002

RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending Sept. 30, 2002, of $22.1 million compared to $20.8 million for the corresponding period of 2001, an increase of 6.6 percent, according to Lewis R. Holding, chairman of the board.

Per share income for the third quarter 2002 totaled $2.11 compared to $1.98 for the same period a year ago. First Citizens' results generated an annualized return on average assets of 0.74 percent for the third quarters of 2002 and 2001. The annualized return on average equity was 9.38 percent during the current quarter, compared to 9.82 percent for the same period of 2001.

During the third quarter, increases in net interest income and noninterest income more than exceeded the increase in noninterest expense. During the third quarter of 2002, net interest income increased $3.4 million or 3.7 percent over the same period of 2001. The increase in net interest income reflects the combined result of moderate growth among interest-earning assets and the unfavorable impact of lower interest rates. Total interest-earning assets increased $465.8 million or 4.6 percent during the third quarter of 2002 when compared to the same period of 2001. However, the taxable-equivalent net yield on interest-earning assets fell 4 basis points to 3.60 percent during the third quarter of 2002 when compared to the same period of 2001.

Noninterest income increased 4.1 percent during the third quarter, the result of higher cardholder and merchant services revenues and service charge income, partially offset by higher losses from securities transactions and lower mortgage and trust income. Noninterest expense increased $3.9 million or 3.7 percent during the third quarter of 2002, the result of higher personnel-related and equipment expenses.

The provision for loan losses decreased 0.5 percent from the third quarter of 2001 to the same period of 2002, the result of a slight reduction in charge-offs during 2002. Net charge-offs were $4.5 million during the third quarter of 2002, compared to $4.9 million during the same period of 2001.

For the nine-month period ending Sept. 30, 2002, net income was $68.4 million, or $6.53 per share, compared to $65.6 million, or $6.24 per share earned during the same period of 2001. Annualized net income for 2002 represents 0.78 percent of average assets and 10.00 percent of average equity. The annualized return on average assets was 0.79 percent for the same period of 2001, while the return on average equity was 10.47 percent.

Year-to-date net interest income for 2002 increased $13.4 million or 4.8 percent over the same period of 2001. During 2002, the favorable impact of healthy growth among interest-earning assets was partially offset by the negative impact of lower interest rates. Average interest-earning assets increased $579.6 million or 5.9 percent during the first nine months of 2002, when compared to the same period of 2001.

Noninterest income increased $4.2 million or 2.6 percent during the first nine months of 2002, the result of improved service charge income, cardholder and merchant services income and commission-based income. These items were partially offset by a $7.6 million reduction in income from securities transactions during 2002 and slight declines in mortgage and trust revenues. Noninterest expense increased $13.0 million or 4.1 percent during the first nine months of 2002, primarily the result of higher salary and employee benefit and equipment expenses.

For the nine-month period ending Sept. 30, 2002, the provision for loan losses was $19.4 million, compared to $16.7 million for the same period of 2001. The increase in the provision for loan losses resulted from continued economic weakness and higher levels of net charge-offs and nonperforming assets. Net charge-offs were $14.9 million during 2002 compared to $12.8 million during the respective nine-month period of 2001, an increase of $2.1 million or 16.5 percent.

As of Sept. 30, 2002, First Citizens had total assets of $12.08 billion. Two of BancShares' major subsidiaries are First Citizens Bank with 341 branches in North Carolina, Virginia and West Virginia, and Atlantic States Bank with 39 branches in Georgia and Florida. Atlantic States' western division, IronStone Bank, recently opened its first branch in Texas and has plans for branches in Arizona and California. For more information, visit the First Citizens Web site at firstcitizens.com.

CONDENSED STATEMENTS OF INCOME
(thousand, except share data; unaudited)	Three Months Ended September 30 2002	2001	Nine Months Ended September 30 2002	2001
Interest Income	$142,742	$176,709	$455,661	$548,395
Interest expense	$52,127	$84,482	$166,306	$272,397
Net interest Income	$95,615	$92,227	$289,335	$275,998
Provision for loan losses	$5,592	$5,620	$19,394	$16,690
Net interest income after provision for loan losses	$90,023	$86,607	$269,961	$259,308
Noninterest Income	$55,282	$53,089	$164,771	$160,541
Noninterest expense	$110,912	$106,963	$328,641	$315,685
Income before income taxes	$34,393	$32,733	$106,091	$104,164
Income taxes	$12,275	$11,977	$37,645	$38,545
Net Income	$22,118	$20,756	$68,446	$65,619
Taxable-equivalent net interest income	$95,932	$92,698	$290,388	$277,468
Net income per share	$2.11	$1.98	$6.53	$6.24
Cash dividends per share	0.25	0.25	0.75	0.75
Profitability Information (annualized)
Return on average assets	0.74%	0.74%	0.78%	0.79%
Return on average equity	9.38	9.82	10.00	10.47
Taxable-equivalent net yield on interest-earning assets	3.60	3.64	3.70	3.75

CONDENSED BALANCE SHEETS
(thousand, except share data; unaudited)	September 30 2002	December 31 2001	September 30 2001
Cash and due from banks	$801,450	$758,987	$691,594
Investment securities	2,502,0226	2,791,296	2,482,123
Loans	$7,521,834	$7,196,177	$7,109,584
Reserve for loan losses	(111,577)	(107,087)	(105,775)
Other assets	1,368,450	1,225,618	1,344,999
Total assets	$12,082,183	$11,864,991	$11,522,525
Deposits	$10,286,825	$9,961,605	$9,645,226
Other liabilities	850,456	1,018,343	1,011,336
Shareholder's equity	944,902	885,043	865,963
Total liabilities and shareholder's equity	$12,082,183	$11,864,991	$11,522,525
Book value per shared	$90.20	$84.42	$82.55
Tangible book value per share	80.49	73.78	71.64

SELECTED AVERAGE BALANCES
(thousand, except share data; unaudited)	Three Months Ended September 30 2002	2001	Nine Months Ended September 30 2002	2001
Total assets	$11,871,334	$11,333,123	$11,764,711	$11,083,960
Investment securities	2,553,957	2,195,064	2,632,761	2,032,072
Loans	7,450,271	7,054,247	7,324,359	7,098,197
Interest-earning assets	10,592,386	10,126,568	10,480,111	9,900,481
Deposits	10,060,785	9,496,699	9,925,071	9,291,841
Interest-bearing liabilities	9,131,569	8,851,916	9,093,797	8,863,102
Shareholder's equity	$935,735	$857,417	$915,387	$838,262
Shares Outstanding	10,477,886	10,508,330	10,480,011	10,513,488

ASSET QUALITY
(thousand, unaudited)	September 30 2002	December 31 2001	September 30 2001
Nonaccrual loans	$14,944	$13,983	$13,349
Other real estate	12,092	6,263	4,242
Total nonperforming assets	$27,036	$20,246	$17,591
Accuring loans 90 days or more past due	$8,928	$12,981	$14,993
Nonperforming assets to gross loans plus foreclosed real estate	0.36%	0.28%	0.25%
Reserve for loan losses to gross loans	1.48	1.49	1.49
Net charge-offs to average total loans(annualized, year-to-date)	0.27	0.27	0.24

CAPITAL INFORMATION
(dollars in thousands, unaudited)	September 30 2002	December 31 2001	September 30 2001
Tier 1 capital	$1,084,714	$1,015,804	$894,881
Total capital	1,191,150	1,118,248	994,965
Risk-weighted assets	8,086,739	7,771,031	7,642,325
Tier 1 capital ratio	13.41%	13.07%	11.71%
Total capital ratio	14.73	14.39	13.02
Leverage capital ratio	9.22	8.78	7.98
First Citizens BancShare, Inc. and Subsidiaries

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