First Citizens Reports Earnings for First Quarter 2002

April 22, 2002

RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending March 31, 2002, of $23.2 million compared to $22.9 million for the corresponding period of 2001, an increase of 1.5 percent, according to Lewis R. Holding, chairman of the board.

Per share income for the first quarter 2002 totaled $2.21 compared to $2.17 for the same period a year ago. First Citizens' first quarter results generated an annualized return on average assets of 0.81 percent and an annualized return on average equity of 10.52 percent, compared to respective returns of 0.86 percent and 11.32 percent for the same period of 2001.

The growth in net income during the first quarter resulted from higher levels of net interest income and noninterest income. Net interest income increased $4.4 million over the same period of 2001, the result of balance sheet growth that more than offset the impact of lower interest rates. The investment securities portfolio averaged $2.70 billion during the first quarter of 2002, an increase of $849.7 million or 45.8 percent over the same period of 2001. The growth in the investment securities portfolio resulted from increased levels of liquidity from strong deposit growth during 2001.

The taxable-equivalent net yield on interest-earning assets was 3.81 percent during the first quarter of 2002, down from 3.93 percent during the first quarter of 2001. However, compared to the fourth quarter of 2001, the net yield for the first quarter 2002 increased 26 basis points as interest-bearing liabilities repriced downward at a faster pace than interest-earning assets.

Noninterest income was $54.2 million during the first quarter of 2002, a $1.4 million or 2.7 percent increase over the same period of 2001. Service-charge income increased $2.5 million or 15.8 percent over the first quarter of 2001. Income generated by the mortgage division increased $2.0 million during the first quarter of 2002 due to higher mortgage originations. Smaller increases were noted among cardholder and merchant services income and other service charges and fees. Partially offsetting these favorable variances was a $5.1 million reduction in gains on securities transactions.

Noninterest expense was $109.4 million during the first quarter of 2002, an increase of $6.6 million or 6.5 percent. Salary expense increased $3.1 million or 7.1 percent over the same period of 2001. Employee benefits expense increased $1.6 million or 18.4 percent over 2001, the result of higher health insurance expenses and pension costs. As a result of new accounting guidelines for the treatment of goodwill and other intangible assets, BancShares discontinued the amortization of goodwill during the first quarter of 2002. During the first quarter of 2001, BancShares recorded $1.3 million in amortization expense related to goodwill. Concurrent with the adoption of the new accounting standards, BancShares reviewed and adjusted the useful lives of other intangible assets, resulting in a $1.8 million increase in amortization over the same period of 2001.

The provision for loan losses was $6.0 million during the first quarter of 2002, an increase of $304,000 or 5.4 percent over the same period of 2001. The increase in the provision for loan losses is attributed to continued economic pressures and higher levels of nonperforming loans. Net charge-offs during the first quarter of 2002 totaled $4.4 million or 0.25 percent of average loans. During the first quarter of 2001, BancShares recorded net charge-offs of $4.5 million or 0.26 percent of average loans.

As of March 31, 2002, First Citizens had total assets of $11.75 billion. Two of BancShares' major subsidiaries are First Citizens Bank with 348 branches in North Carolina, Virginia and West Virginia, and Atlantic States Bank with 42 branches in Georgia and Florida. Atlantic States Bank recently announced that it will expand into Austin, Texas, in late 2002. For more information visit the First Citizens web site at www.firstcitizens.com.

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CONDENSED STATEMENTS OF INCOME
(thousand, except share data; unaudited)	Three Months Ended March 31 2002	2001
Interest Income	$156,148	$189,026
Interest expense	59,137	96,443
Net interest Income	97,011	92,583
Provision for loan losses	5,980	5,676
Net interest income after provision for loan losses	91,031	86,907
Noninterest Income	54,230	52,811
Noninterest expense	109,437	102,800
Income before income taxes	35,824	36,918
Income taxes	12,626	14,059
Net Income	$23,198	$22,859
Taxable-equivalent net interest income	$97,382	$93,091
Net income per share	$2.21	$2.17
Cash dividends per share	0.25	0.25
Profitability Information (annualized)
Return on average assets	0.81%	0.86%
Return on average equity	10.52	11.32
Taxable-equivalent net yield on interest-earning assets	3.81	3.93

CONDENSED BALANCE SHEETS
(thousand, except share data; unaudited)	March 31 2002	December 31 2001	March 31 2001
Cash and due from banks	$709,757	$758,987	$690,080
Investment securities	2,576,383	2,791,296	1,868,886
Loans	7,248,088	7,196,177	7,124,535
Reserve for loan losses	(108,692)	(107,087)	(103,825)
Other assets	1,320,816	1,225,618	1,566,241
Total assets	$11,746,352	$11,864,991	$11,145,917
Deposits	$9,872,979	$9,961,605	$9,365,356
Other liabilities	967,092	1,018,343	950,426
Shareholder's equity	906,281	885,043	830,135
Total liabilities and shareholder's equity	$11,746,352	$11,864,991	$11,145,917
Book value per shared	$86.47	$84.42	$78.96
Tangible book value per share	76.15	73.78	67.52

SELECTED AVERAGE BALANCES
(thousand, except share data; unaudited)	Three Months Ended March 31 2002	2001
Total assets	$11,664,376	$10,785,178
Investment securities	2,704,077	1,854,401
Loans	7,207,757	7,101,238
Interest-earning assets	10,353,509	9,616,498
Deposits	9,776,690	9,037,155
Interest-bearing liabilities	9,073,637	8,470,303
Shareholder's equity	$894,689	$822,939
Shares Outstanding	10,481,661	10,521,253

ASSET QUALITY
(thousand, unaudited)	March 31 2002	December 31 2001	March 31 2002
Nonaccrual loans	$17,735	$13,983	$12,830
Other real estate	12,461	6,263	3,082
Total nonperforming assets	$30,196	$20,246	$15,912
Accuring loans 90 days or more past due	$15,293	$12,981	$6,413
Nonperforming assets to gross loans plus foreclosed real estate	0.42%	0.28%	0.22%
Reserve for loan losses to gross loans	1.50	1.49	1.46
Net charge-offs to average total loans(annualized)	0.25	0.27	0.26

CAPITAL INFORMATION
(dollars in thousands, unaudited)	March 31 2002	December 31 2001	March 31 2001
Tier 1 capital	$1,038,574	$1,015,804	$850,330
Total capital	1,142,933	1,118,248	959,351
Risk-weighted assets	7,868,529	7,771,031	8,191,608
Tier 1 capital ratio	13.2%	13.07%	10.43%
Total capital ratio	14.53	14.39	11.77
Leverage capital ratio	8.99	8.78	7.97
First Citizens BancShares, Inc. and Subsidiaries

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