First Citizens Reports Earnings for Fourth Quarter 2001

January 28, 2002

RALEIGH, N.C. - First Citizens BancShares Inc. (Nasdaq: FCNCA) reports earnings for the quarter ending Dec. 31, 2001, of $21.3 million compared to $24.0 million for the corresponding period of 2000, a decrease of 11.1 percent, according to Lewis R. Holding, chairman of the board.

Per share income for the fourth quarter 2001 totaled $2.03 compared to $2.28 for the same period a year ago. Ignoring the impact of nonrecurring items, core net income for the fourth quarter of 2001 decreased by 1.4 percent. First Citizens' current quarter results generated an annualized return on average assets of 0.72 percent and a return on average equity of 9.67 percent, compared to respective returns of 0.92 percent and 11.94 percent for the same period of 2000.

For the year ending Dec. 31, 2001, net income was $86.9 million, or $8.27 per share, compared to $98.3 million, or $9.32 per share, earned during 2000. Excluding nonrecurring items from both years, core net income rose 0.6 percent in 2001. Net income for 2001 represented 0.77 percent of average assets and 10.26 percent of average equity. The return on average assets was 0.98 percent in 2000, while the return on average equity was 12.88 percent.

For the fourth quarter and the year, increases in noninterest expense and higher provision for loan losses more than offset the benefit of improved noninterest income. For 2001, noninterest expense was $422.6 million compared to $394.8 million in the previous year, an increase of 7.0 percent. The increase was the result of higher personnel expenses, non-credit charge-offs and credit card processing fees. Provision for loan losses during 2001 was $24.1 million, a 55.8 percent increase over the $15.5 million recognized during 2000. The increase reflects the growth in nonperforming assets and net charge-offs as well as higher loan loss estimates resulting from the weakening economy. Noninterest income was $215.6 million for 2001 compared to $202.2 million during 2000, a 6.6 percent increase. Among core components of noninterest income, BancShares experienced growth in service charge income, credit card income and fees earned from processing services during 2001.

During 2001 and 2000, various nonrecurring items affected operating results. For the fourth quarter of 2001, BancShares recorded nonrecurring income from the mortgage operation and expenses related to branch closings. During the same period of 2000, BancShares recognized a gain on the sale of branch offices and expenses related to branch closings. Ignoring the nonrecurring items from both periods, BancShares recorded net income of $21.4 million during the fourth quarter of 2001 compared to $21.7 million during the fourth quarter of 2000. Excluding nonrecurring items, earnings per share was $2.04 for the fourth quarter of 2001 and $2.06 for the same period of 2000. The annualized return on average assets adjusted for the impact of the nonrecurring items was 0.73 percent for the fourth quarter of 2001 and 0.82 percent for the same period of 2000, while the annualized return on average equity was 9.69 percent and 10.75 percent for the respective periods.

Among the nonrecurring items for the year 2001 were securities gains, non-credit charge-offs and expenses related to branch closings. For the year 2000, nonrecurring events included gains on the sales of mortgage servicing rights and branch offices, securities gains and expenses related to branch closings. Excluding nonrecurring items, net income for 2001 was $84.2 million, compared to $83.6 million for 2000. Net income per share excluding nonrecurring items was $8.01 during 2001, compared to $7.92 in 2000, an improvement of 1.1 percent. Excluding the impact of nonrecurring items, return on average assets was 0.75 percent during 2001 and 0.84 percent during 2000, while the return on average equity was 9.93 percent compared to 10.95 percent.

As of Dec. 31, 2001, First Citizens had total assets of $11.86 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 44 branches in Georgia and Florida. 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 December 31 2001	2000	Three Months Ended December 31 2001	2000
Interest Income	$167,032	$189,328	$715,427	$708,170
Interest expense	74,113	96,754	364,510	342,828
Net interest Income	92,919	92,574	368,917	365,342
Provision for loan losses	7,444	4,857	24,134	15,488
Net interest income after provision for loan losses	85,475	87,717	344,783	349,854
Noninterest Income	55,014	49,384	215,555	202,190
Noninterest expense	106,912	99,287	422,597	394,784
Income before income taxes	33,577	37,814	137,741	157,260
Income taxes	12,260	13,826	50,805	58,949
Net Income	$21,317	$23,988	$86,936	$98,311
Taxable-equivalent net interest income	$93,389	$93,240	$370,857	$368,190
Net income per share	$2.03	$2.28	$8.27	$9.32
Cash dividends per share	0.25	0.25	1.00	1.00
Profitability Information (annualized)
Return on average assets	0.72%	0.92%	0.77%	0.98%
Return on average equity	9.67	11.94	10.26	12.88
Taxable-equivalent net yield on interest-earning assets	3.55	3.97	3.69	4.10

CONDENSED BALANCE SHEETS
(thousand, except share data; unaudited)	December 31 2001	December 31 2000	Change
Cash and due from banks	$758,987	$755,930	0.40%
Investment securities	2,791,296	1,816,720	53.64%
Loans	7,196,177	7,109,692	1.22%
Reserve for loan losses	(107,087)	(102,655)	4.32%
Other assets	1,225,618	1,111,930	10.22%
Total assets	$11,864,991	$10,691,617	10.97%
Deposits	$9,961,605	$8,971,868	11.03%
Other liabilities	1,018,343	909,021	12.03%
Shareholder's equity	885,043	810,728	9.17%
Total liabilities and shareholder's equity	$11,864,991	$10,691,617	10.97%
Book value per shared	$84.42	$77.04	9.58%
Tangible book value per share	73.78	65.76	12.20%

SELECTED AVERAGE BALANCES
(thousand, except shares outstanding; unaudited)	Three Months Ended December 31 2001	2000	Year Ended Decemeber 31 2001	2000
Total assets	$11,674,273	$10,420,204	$11,235,859	$10,005,597
Investment securities	2,684,315	1,747,536	2,196,473	1,618,584
Loans	7,128,818	7,077,991	7,105,915	6,955,772
Interest-earning assets	10,446,364	9,335,530	10,038,074	8,984,878
Deposits	9,742,153	8,693,634	9,405,328	8,390,920
Interest-bearing liabilities	9,142,487	8,126,969	8,798,893	7,772,889
Shareholder's equity	$874,801	$799,234	$847,374	$763,386
Shares Outstanding	10,488,894	10,528,680	10,507,289	10,551,607

ASSET QUALITY
(thousand, unaudited)	December 31 2001	December 31 2000	Change
Nonaccrual loans	$13,983	$15,933	- 12.24%
Other real estate	6,263	1,880	233.14%
Total nonperforming assets	$ 20,246	$17,813	13.66%
Accuring loans 90 days or more past due	$12,981	$6,731	92.85%
Nonperforming assets to gross loans plus foreclosed real estate	0.28%	0.25%
Reserve for loan losses to gross loans	1.49	1.44
Net charge-offs to average total loans(annualized)	0.27	0.17

CAPITAL INFORMATION
(dollars in thousands, unaudited)	December 31 2001	December 31 2000	Change
Tier 1 capital	$1,015,804	$835,678	21.55%
Total capital	1,118,253	940,260	18.93%
Risk-weighted assets	7,771,031	8,057,478	- 3.56%
Tier 1 capital ratio	13.07%	10.37%
Total capital ratio	14.39	11.67
Leverage capital ratio	8.78	8.11
First Citizens BancShares, Inc. and Subsidiaries

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