NEWS RELEASE For Immediate Release Contact: Deanna Hart Barbara Thompson August 3, 2023 Investor Relations Corporate Communications 919-716-2137 919-716-2716 FIRST CITIZENS BANCSHARES REPORTS SECOND QUARTER 2023 EARNINGS RALEIGH, N.C. -- First Citizens BancShares, Inc. (“BancShares”) (Nasdaq: FCNCA) reported earnings for the second quarter ended June 30, 2023. Chairman and CEO Frank B. Holding, Jr. said: “We are proud of our continued strong financial performance in the second quarter as we drove momentum in our legacy business lines and began to realize the long-term strategic and financial value of our combination with SVB. Our performance was supported by the progress we made integrating SVB and our continuing efforts to provide stability and continuity for our clients and associates. We also continue to build on the strengths of our combined team, including leveraging SVB’s deep innovation economy expertise and maintaining their unique approach to serving clients. As we navigate an uncertain macroeconomic environment, we remain focused on maintaining strong capital and liquidity positions as well as delivering long-term stockholder value.” PURCHASE AND ASSUMPTION OF CERTAIN ASSETS AND LIABILITIES OF SILICON VALLEY BRIDGE BANK FROM THE FDIC On March 27, 2023, BancShares announced that through its banking subsidiary, First-Citizens Bank & Trust Company, it assumed all customer deposits and certain other liabilities and acquired substantially all loans and certain other assets of Silicon Valley Bridge Bank, N.A. (the “Acquisition”), as successor to Silicon Valley Bank, from the Federal Deposit Insurance Corporation (the "FDIC"). In connection with the Acquisition, BancShares identified a new business segment (the “SVB segment”) which includes the assets, liabilities and results of operations related to the Acquisition. The Acquisition included total assets with estimated fair values of approximately $107.26 billion and total loans with estimated fair values of approximately $68.46 billion, including Global Fund Banking, Private Bank and the Technology & Life Science and Healthcare loan portfolios, and $35.31 billion in cash and interest-earning deposits at banks. BancShares also assumed approximately $55.90 billion in customer deposits and entered into a five-year note payable to the FDIC (the “Purchase Money Note”) of approximately $36.07 billion, bearing an interest rate of 3.50%. The deposits were acquired without a premium and the assets were acquired at a discount of $16.45 billion. 1
FINANCIAL HIGHLIGHTS Results for the second quarter included a full quarter impact from the Acquisition. Measures referenced as adjusted below are non-GAAP financial measures (refer to the supporting tables for a reconciliation of each non-GAAP measure to the most directly comparable GAAP measure). Net income for the three months ended June 30, 2023, was $682 million compared to $9.52 billion for the three months ended March 31, 2023. Net income available to common stockholders for the three months ended June 30, 2023, was $667 million, or $45.87 per diluted common share, compared to $9.50 billion, or $653.64 per diluted common share in the first quarter of 2023. As a result of the Acquisition, second quarter net income includes an increase to the preliminary gain on acquisition of $55 million (net of tax) as we refined our estimates of the fair value of net assets acquired and liabilities assumed. Adjusted net income available to common stockholders was $765 million, or $52.60 per diluted common share, a $473 million increase from $292 million, or $20.09 per diluted common share, in the first quarter of 2023. Second quarter 2023 results were impacted by the following items which accounted for the difference between reported and adjusted net income described in the preceding paragraph: • Acquisition-related expenses of $205 million, • Additional preliminary gain on acquisition of $55 million (net of tax), • Intangible asset amortization of $18 million, • Unrealized loss on fair value adjustments on marketable equity securities of $10 million, • Gain on sale of leasing equipment of $4 million, and • Benefit for credit losses on investment securities available for sale of $1 million. The following bullets highlight significant changes in the components of net income and adjusted net income between the second quarter of 2023 and the first quarter of 2023: • Net interest income totaled $1.96 billion, up from $850 million in the first quarter. The $1.11 billion increase in net interest income was due to a $1.74 billion increase in interest income, partially offset by a $631 million increase in interest expense. • The $1.74 billion increase in interest income was due to a $1.34 billion increase in interest income on loans and a $393 million increase in interest on overnight investments. A higher average balance, increased loan accretion from the full quarter impact of the Acquisition, a higher yield on loans and loan growth in both the General Bank and Commercial Bank contributed to the increase in interest income on loans. The increase in interest income on overnight investments was due to a higher yield and average balance. • The $631 million increase in interest expense was due to a $344 million increase in borrowing costs primarily due to the Purchase Money Note related to the Acquisition and a $287 million increase in interest expense on deposits due to a higher average balance from the full quarter impact of the Acquisition, growth in the Direct Bank and a higher rate paid. • Net interest margin was 4.10%, an increase of 69 basis points over the first quarter. The yield on interest- earning assets was 6.18%, an increase of 133 basis points over the first quarter. The increase in yield on interest-earning assets was primarily due to a higher yield on earning assets and increased loan accretion resulting from the full quarter impact of the Acquisition. Accretion on loans acquired in the Acquisition was $233 million for the second quarter. The increase in yield on interest-earning assets was partially offset by an increase in the rate paid on interest-bearing deposits. • Noninterest income totaled $658 million compared to $10.26 billion in the first quarter. The decrease was primarily due to a $9.82 billion preliminary gain on acquisition in the first quarter, partially offset by the full quarter impact of the Acquisition. Adjusted noninterest income totaled $462 million compared to $309 million in the first quarter, an increase of $153 million. The increase was primarily due to the full quarter impact of the Acquisition and included a $50 million increase in client investment fees that are earned for managing off-balance sheet client funds and a $28 million increase in international fees related to customer 2
foreign currency transactions. Fee income and other services charges increased $22 million primarily due to unused line of credit fees in the SVB segment. Service charges on deposits and cardholder services income both increased $20 million from higher volume associated with the full quarter impact of the Acquisition. • Noninterest expense totaled $1.57 billion compared to $855 million in the first quarter. Adjusted noninterest expense totaled $1.20 billion compared to $677 million in the first quarter, an increase of $525 million. The increases in noninterest expense and adjusted noninterest expense were primarily due to the full quarter impact of the Acquisition and included higher personnel costs of $355 million, higher equipment expense of $75 million, higher marketing costs of $26 million and higher third-party processing fees of $24 million. The increase in marketing costs were primarily associated with the Direct Bank. BALANCE SHEET SUMMARY • Loans totaled $133.02 billion at June 30, 2023, a decline of $5.27 billion compared to $138.29 billion as of March 31, 2023. The decline was primarily driven by a $7.37 billion decline in the SVB segment mostly concentrated in Global Fund Banking. The decline in the SVB segment was partially offset by $1.37 billion of growth (12.6% annualized) in the General Bank (driven by business and commercial loans) and $749 million of growth (10.4% annualized) in the Commercial Bank (driven by loans in our industry verticals). The yield on loans was 7.06% for the second quarter compared to 5.57% in the first quarter of 2023. The increase was primarily due to variable rate loan resets and accretion on loans acquired in the Acquisition. • Deposits totaled $141.16 billion at June 30, 2023, an increase of $1.11 billion, or by 3.2% on an annualized basis compared to $140.05 billion as of March 31, 2023. The increase was concentrated in Direct Bank deposits, which grew by $10.4 billion, partially offset by an $8.40 billion decline in the SVB segment. Deposits in the SVB segment totaled $40.86 billion at June 30, 2023, and remained relatively stable from the levels previously disclosed ($41.40 billion as of May 5, 2023). Branch Network deposits declined by $1.11 billion primarily due to seasonal tax payments. Noninterest-bearing deposits represented 31.6% of total deposits as of June 30, 2023, compared to 39.0% of total deposits at March 31, 2023. The decline was primarily due to a $9.1 billion decrease in noninterest-bearing deposits in the SVB segment and the previously discussed increase of $10.4 billion in Direct Bank interest-bearing deposits. The cost of average total deposits was 1.68% for the second quarter, up 44 basis points compared to the first quarter of 2023. • Total borrowings decreased $5.96 billion during the quarter, primarily due to the $6.08 billion decline in Federal Home Loan Bank (“FHLB”) borrowings. PROVISION FOR CREDIT LOSSES AND CREDIT QUALITY • Provision for credit losses totaled $151 million compared to $783 million in the first quarter, a decrease of $632 million, primarily related to the Acquisition, which included provisions for credit losses of $462 million for non-PCD loans and $254 million for unfunded commitments in the first quarter of 2023. Adjusted provision for credit losses totaled $152 million compared to $63 million in the first quarter of 2023, an increase of $89 million. The increase was primarily due to higher net charge-offs of $107 million. • Net charge-offs totaled $157 million, representing 0.47% of average loans, compared to $50 million, or 0.27% of average loans during the first quarter of 2023. The increase in net charge offs was primarily due to $97 million of net charge offs in the SVB segment ($85 million of which were reserved for in connection with the Acquisition). • Nonaccrual loans were $929 million, or 0.70% of total loans, at June 30, 2023, compared to $828 million, or 0.60% of total loans at March 31, 2023. The increase is primarily due to an increase in commercial real estate nonaccrual loans at June 30, 2023. • The allowance for credit losses totaled $1.64 billion or 1.23% of total loans at June 30, 2023, an increase of $32 million and 1.16% of total loans at March 31, 2023. The reserve build for the quarter was a result of deteriorating CECL macroeconomic forecasts, specifically related to the CRE index, partially offset by portfolio run-off in the SVB segment. 3
EARNINGS CALL DETAILS BancShares will host a conference call to discuss the company's financial results on Thursday, August 3, 2023, at 9:00 a.m. Eastern time. To access this call, dial: United States: 1-833-470-1428 Canada: 1-833-950-0062 All other locations: 1-929-526-1599 Access code: 109282 The second quarter 2023 earnings presentation and this news release are available on the company’s website at ir.firstcitizens.com. After the event, a replay of the call will be available via webcast at ir.firstcitizens.com. ABOUT FIRST CITIZENS BANCSHARES First Citizens BancShares, Inc., a top 20 U.S. financial institution with more than $200 billion in assets, is the financial holding company for First-Citizens Bank & Trust Company ("First Citizens Bank"). Headquartered in Raleigh, N.C., and now celebrating the 125th anniversary of its founding, First Citizens Bank has built a unique legacy of strength, stability and long-term thinking that has spanned generations. First Citizens offers an array of general banking services including a network of 560 branches and offices in 23 states; commercial banking expertise delivering best-in-class lending, leasing and other financial services coast to coast; and a nationwide direct bank. First Citizens Bank, Member FDIC. Discover more at firstcitizens.com. FORWARD-LOOKING STATEMENTS This communication contains “forward-looking statements” within the meaning of the Private Securities Litigation Reform Act of 1995 regarding the financial condition, results of operations, business plans, asset quality, future performance, and other strategic goals of BancShares. Words such as “anticipates,” “believes,” “estimates,” “expects,” “predicts,” “forecasts,” “intends,” “plans,” “projects,” “targets,” “designed,” “could,” “may,” “should,” “will,” “potential,” “continue”, “aims” or other similar words and expressions are intended to identify these forward-looking statements. These forward-looking statements are based on BancShares’ current expectations and assumptions regarding BancShares’ business, the economy, and other future conditions. Because forward-looking statements relate to future results and occurrences, they are subject to inherent risks, uncertainties, changes in circumstances and other risk factors that are difficult to predict. Many possible events or factors could affect BancShares’ future financial results and performance and could cause the actual results, performance or achievements of BancShares to differ materially from any anticipated results expressed or implied by such forward-looking statements. Such risks and uncertainties include, among others, general competitive, economic, political, geopolitical events (including the military conflict between Russia and Ukraine) and market conditions, including changes in competitive pressures among financial institutions and the impacts related to or resulting from recent bank failures and other volatility, the financial success or changing conditions or strategies of BancShares’ vendors or customers, including changes in demand for deposits, loans and other financial services, fluctuations in interest rates, changes in the quality or composition of BancShares’ loan or investment portfolio, actions of government regulators, including the recent and projected interest rate hikes by the Board of Governors of the Federal Reserve Board (the “Federal Reserve”), changes to estimates of future costs and benefits of actions taken by BancShares, BancShares’ ability to main adequate sources of funding and liquidity, the potential impact of decisions by the Federal Reserve on BancShares’ capital plans, adverse developments with respect to U.S. or global economic conditions, including the significant turbulence in the capital or financial markets, the impact of the current inflationary environment, the impact of implementation and compliance with current or proposed laws, regulations and regulatory interpretations, including the interagency proposed rule on regulatory capital, along with the risk that such laws, regulations and regulatory interpretations may change, the availability of capital and personnel, and the failure to realize the anticipated benefits of BancShares’ previous acquisition transactions, 4
including the Acquisition and the recently completed transaction with CIT Group Inc. (“CIT”), which acquisition risks include (1) disruption from the transactions with customer, supplier or employee relationships, (2) the possibility that the amount of the costs, fees, expenses and charges related to the transaction may be greater than anticipated, including as a result of unexpected or unknown factors, events or liabilities or increased regulatory compliance obligations or oversight, (3) reputational risk and the reaction of the parties’ customers to the transactions, (4) the risk that the cost savings and any revenue synergies from the transactions may not be realized or take longer than anticipated to be realized, (5) difficulties experienced in the integration of the businesses, (6) the ability to retain customers following the transactions and (7) adjustments to BancShares’ estimated purchase accounting impacts of the Acquisition. Except to the extent required by applicable laws or regulations, BancShares disclaims any obligation to update forward-looking statements or to publicly announce the results of any revisions to any of the forward-looking statements included herein to reflect future events or developments. Additional factors which could affect the forward-looking statements can be found in BancShares’ Annual Report on Form 10-K for the fiscal year ended December 31, 2022, its Quarterly Report on Form 10-Q for the period ended March 31, 2023, and its other filings with the Securities and Exchange Commission (the “SEC”). NON-GAAP MEASURES Certain measures in this release and supporting tables, including those referenced as “Adjusted,” are “non-GAAP”, meaning they are not presented in accordance with generally accepted accounting principles in the U.S. and also are not codified in U.S. banking regulations currently applicable to BancShares. BancShares believes that non-GAAP financial measures, when reviewed in conjunction with GAAP financial information, can provide transparency about or an alternative means of assessing its operating results and financial position to its investors, analysts and management. Each non-GAAP measure is reconciled to the most comparable GAAP measure in the non-GAAP reconciliation table below and notable items are summarized in a separate table. 5
Dollars in millions, except per share data YTD YTD Summary Financial Data & Key Metrics 2Q23 1Q23 2Q22 6/30/23 6/30/22 Results of Operations: Net interest income $ 1,961 $ 850 $ 700 2,811 1,349 Provision for credit losses 151 783 42 934 506 Net interest income after provision for credit losses 1,810 67 658 1,877 843 Noninterest income 658 10,259 424 10,917 1,274 Noninterest expense 1,572 855 745 2,427 1,555 Income before income taxes 896 9,471 337 10,367 562 Income tax expense (benefit) 214 (47) 82 167 36 Net income 682 9,518 255 10,200 526 Preferred stock dividends 15 14 17 29 24 Net income available to common stockholders $ 667 $ 9,504 $ 238 10,171 $ 502 Adjusted net income available to common stockholders(1) $ 765 $ 292 $ 270 $ 1,057 $ 569 Pre-tax, pre-provision net revenue (PPNR)(1) $ 1,047 $ 10,254 $ 379 $ 11,301 $ 1,068 Per Share Information: Diluted earnings per common share (EPS) $ 45.87 $ 653.64 $ 14.86 699.53 31.48 Adjusted diluted earnings per common share (EPS)(1) 52.60 20.09 16.86 72.69 35.67 Book value per common share 1,300.93 1,262.76 609.95 1,300.93 609.95 Tangible book value per common share (TBV)(1) 1,253.20 1,213.82 578.92 1,253.20 578.92 Key Performance Metrics: Return on average assets (ROA) 1.31 % 33.23 % 0.95 % 12.62 % 0.97 % Adjusted ROA(1) 1.49 1.07 1.07 1.34 1.10 PPNR ROA(1) 2.00 35.80 1.41 13.98 1.98 Adjusted PPNR ROA(1) 2.34 1.69 1.56 2.11 1.44 Return on average common equity (ROE) 14.35 367.47 9.87 140.82 10.51 Adjusted ROE(1) 16.46 11.30 11.19 14.63 11.91 Return on average tangible common equity (ROTCE)(1) 14.91 386.69 10.40 146.99 11.11 Adjusted ROTCE(1) 17.10 11.89 11.80 15.27 12.58 Efficiency ratio 60.06 7.70 66.34 17.68 59.26 Adjusted efficiency ratio(1) 49.65 58.39 57.55 52.47 59.50 Net interest margin (NIM)(2) 4.10 3.41 3.04 3.86 2.89 Select Balance Sheet Items at Period End: Total investment securities $ 22,171 $ 19,527 $ 19,136 Total loans and leases 133,015 138,288 67,735 Total operating lease equipment, net 8,531 8,331 7,971 Total deposits 141,164 140,050 89,329 Total borrowings 40,139 46,094 4,459 Loan to deposit ratio 94.23 % 98.74 % 75.83 % Noninterest-bearing deposits to total deposits 31.56 39.02 29.75 Capital Ratios at Period End: (3) Total risk-based capital ratio 15.84 % 14.86 % 14.46 % Tier 1 risk-based capital ratio 14.00 13.13 12.37 Common equity Tier 1 ratio 13.38 12.53 11.35 Tier 1 leverage capital ratio 9.50 16.72 9.85 Asset Quality at Period End: Nonaccrual loans to total loans and leases 0.70 % 0.60 % 0.76 % 0.70 % 0.76 % Allowance for credit losses (ACL) to loans and leases 1.23 1.16 1.26 1.23 1.26 Net charge-off ratio 0.47 0.27 0.13 0.39 0.11 (1) Denotes a non-GAAP measure. Refer to the non-GAAP reconciliation subsequently included in these materials for a reconciliation to the most directly comparable GAAP measure. “Adjusted” items exclude the impact of Notable Items. (2) Calculated net of average credit balances of factoring clients. (3) Capital ratios for the current quarter are preliminary pending completion of quarterly regulatory filings. 6
Dollars in millions, except share and per share data YTD YTD Income Statement (unaudited) 2Q23 1Q23 2Q22 6/30/23 6/30/22 Interest income Interest and fees on loans $ 2,353 $ 1,017 $ 655 3,370 1,276 Interest on investment securities 120 107 89 227 172 Interest on deposits at banks 480 87 13 567 19 Total interest income 2,953 1,211 757 4,164 1,467 Interest expense Deposits 575 288 42 863 81 Borrowings 417 73 15 490 37 Total interest expense 992 361 57 1,353 118 Net interest income 1,961 850 700 2,811 1,349 Provision for credit losses 151 783 42 934 506 Net interest income after provision for credit losses 1,810 67 658 1,877 843 Noninterest income Rental income on operating lease equipment 238 233 213 471 421 Fee income and other service charges 69 47 37 116 71 Client investment fees 52 2 — 54 — Wealth management services 51 40 37 91 72 International fees 32 4 2 36 4 Service charges on deposit accounts 44 24 28 68 55 Factoring commissions 20 19 27 39 54 Cardholder services, net 41 21 26 62 51 Merchant services, net 14 10 9 24 19 Insurance commissions 14 13 11 27 23 Realized loss on sale of investment securities available for sale, net — (14) — (14) — Fair value adjustment on marketable equity securities, net (10) (9) (6) (19) (3) Bank-owned life insurance 2 5 9 7 17 Gain on sale of leasing equipment, net 4 4 5 8 11 Gain on acquisition 55 9,824 — 9,879 431 Gain on extinguishment of debt — — — — 6 Other noninterest income 32 36 26 68 42 Total noninterest income 658 10,259 424 10,917 1,274 Noninterest expense Depreciation on operating lease equipment 91 89 89 180 170 Maintenance and other operating lease expenses 56 56 47 112 90 Salaries and benefits 775 420 345 1,195 701 Net occupancy expense 64 50 48 114 96 Equipment expense 133 58 54 191 106 Professional fees 21 11 11 32 23 Third-party processing fees 54 30 26 84 50 FDIC insurance expense 22 18 9 40 21 Marketing expense 41 15 9 56 17 Acquisition-related expenses 205 28 34 233 169 Intangible asset amortization 18 5 6 23 12 Other noninterest expense 92 75 67 167 100 Total noninterest expense 1,572 855 745 2,427 1,555 Income before income taxes 896 9,471 337 10,367 562 Income tax expense (benefit) 214 (47) 82 167 36 Net income $ 682 $ 9,518 $ 255 10,200 526 Preferred stock dividends 15 14 17 29 24 Net income available to common stockholders $ 667 $ 9,504 $ 238 10,171 502 Basic earnings per common share $ 45.90 $ 654.22 $ 14.87 $ 700.10 $ 31.52 Diluted earnings per common share $ 45.87 $ 653.64 $ 14.86 $ 699.53 $ 31.48 Weighted average common shares outstanding (basic) 14,528,134 14,526,693 16,023,613 14,527,417 15,918,978 Weighted average common shares outstanding (diluted) 14,537,938 14,539,709 16,035,090 14,539,176 15,937,826 7
Dollars in millions Balance Sheet (unaudited) June 30, 2023 March 31, 2023 June 30, 2022 Assets Cash and due from banks $ 917 $ 1,598 $ 583 Interest-earning deposits at banks 37,846 38,522 6,476 Securities purchased under agreements to resell 298 — — Investment in marketable equity securities 76 85 94 Investment securities available for sale 11,894 9,061 9,210 Investment securities held to maturity 10,201 10,381 9,832 Assets held for sale 117 94 38 Loans and leases 133,015 138,288 67,735 Allowance for credit losses (1,637) (1,605) (850) Loans and leases, net of allowance for credit losses 131,378 136,683 66,885 Operating lease equipment, net 8,531 8,331 7,971 Premises and equipment, net 1,782 1,743 1,415 Goodwill 346 346 346 Other intangible assets 347 364 150 Other assets 5,769 7,450 4,673 Total assets $ 209,502 $ 214,658 $ 107,673 Liabilities Deposits: Noninterest-bearing $ 44,547 $ 54,649 $ 26,576 Interest-bearing 96,617 85,401 62,753 Total deposits 141,164 140,050 89,329 Credit balances of factoring clients 1,067 1,126 1,070 Borrowings: Short-term borrowings 454 1,009 646 Long-term borrowings 39,685 45,085 3,813 Total borrowings 40,139 46,094 4,459 Other liabilities 7,361 8,172 2,173 Total liabilities $ 189,731 $ 195,442 $ 97,031 Stockholders’ equity Preferred stock 881 881 881 Common stock: Class A - $1 par value 14 14 15 Class B - $1 par value 1 1 1 Additional paid in capital 4,106 4,104 5,345 Retained earnings 15,541 14,885 4,865 Accumulated other comprehensive loss (772) (669) (465) Total stockholders’ equity 19,771 19,216 10,642 Total liabilities and stockholders’ equity $ 209,502 214,658 107,673 8
Dollars in millions, except share per share data YTD YTD Notable Items (1) 2Q23 1Q23 2Q22 6/30/23 6/30/22 Noninterest income Rental income on operating lease equipment (2) $ (147) $ (145) $ (136) (292) (260) Realized gain on sale of investment securities available for sale, net — 14 — 14 — Fair value adjustment on marketable equity securities, net 10 9 6 19 3 Gain on sale of leasing equipment, net (4) (4) (5) (8) (11) Gain on acquisition (55) (9,824) — (9,879) (431) Gain on extinguishment of debt — — — — (6) Other noninterest income (3) — — (6) — (6) Noninterest income - total adjustments $ (196) $ (9,950) $ (141) (10,146) (711) Noninterest expense Depreciation on operating lease equipment (2) (91) (89) (89) (180) (170) Maintenance and other operating lease equipment expense (2) (56) (56) (47) (112) (90) Acquisition-related expenses (205) (28) (34) (233) (169) Intangible asset amortization (18) (5) (6) (23) (12) Other noninterest expense (4) — — (3) — 24 Noninterest expense - total adjustments $ (370) $ (178) $ (179) (548) (417) Day 2 provision, including provision for unfunded commitments — (716) — (716) (513) Provision for credit losses - investment securities available for sale 1 (4) — (3) — Provision for credit losses - total adjustments $ 1 $ (720) $ — (719) (513) Impact of notable items on pre-tax income $ 173 $ (9,052) $ 38 $ (8,879) $ 219 Income tax impact (5) 75 160 6 235 152 Impact of notable items on net income $ 98 $ (9,212) $ 32 (9,114) 67 Impact of notable items on diluted EPS $ 6.73 $ (633.55) $ 2.00 (626.84) 4.19 (1) Notable items include income and expense for infrequent transactions and certain recurring items (typically noncash) that Management believes should be excluded from adjusted measures (Non-GAAP) to enhance understanding of operations and comparability to historical periods. Management utilizes both GAAP and adjusted measures (Non-GAAP) to analyze the Company’s performance. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measures. (2) Depreciation and maintenance and other operating lease expenses are reclassified from noninterest expense to a reduction of rental income on operating lease equipment. There is no net impact to earnings for this notable item as adjusted noninterest income and expense are reduced by the same amount. Adjusted rental income on operating lease equipment (non-GAAP) is net of depreciation and maintenance expense for operating lease equipment. Management believes this measure enhances comparability to banking peers, primarily due to the extent of our rail and other equipment rental activities. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure. (3) Includes gain on sale of the corporate jet acquired from CIT. (4) Includes specific litigation reserve for the HAMP litigation. (5) For the periods presented the income tax impact may include tax discrete items and changes in the estimated annualized effective tax rate. 9
Dollars in millions, except share and per share data Condensed Income Statement (unaudited) - Adjusted for Notable Items (1) YTD YTD 2Q23 1Q23 2Q22 6/30/23 6/30/22 Interest income $ 2,953 $ 1,211 $ 757 4,164 1,467 Interest expense 992 361 57 1,353 118 Net interest income 1,961 850 700 2,811 1,349 Provision (benefit) for credit losses 152 63 42 215 (7) Net interest income after provision for credit losses 1,809 787 658 2,596 1,356 Noninterest income 462 309 283 771 563 Noninterest expense 1,202 677 566 1,879 1,138 Income before income taxes 1,069 419 375 1,488 781 Income tax expense 289 113 88 402 188 Net income $ 780 $ 306 $ 287 1,086 593 Preferred stock dividends 15 14 17 29 24 Net income available to common stockholders $ 765 $ 292 $ 270 1,057 569 Basic earnings per common share $ 52.64 $ 20.11 $ 16.87 72.75 35.71 Diluted earnings per common share $ 52.60 $ 20.09 $ 16.86 72.69 35.67 Weighted average common shares outstanding (basic) 14,528,134 14,526,693 16,023,613 14,527,417 15,918,978 Weighted average common shares outstanding (diluted) 14,537,938 14,539,709 16,035,090 14,539,176 15,937,826 (1) The GAAP income statements and notable items are included previously in this communication. The condensed adjusted income statements above (non-GAAP) exclude the impacts of notable items. Refer to the Non-GAAP reconciliation table(s) at the end of this earnings release for a reconciliation of Non-GAAP measures to the most directly comparable GAAP measure. 10
Dollars in millions Loans & Leases by Class (end of period) June 30, 2023 March 31, 2023 June 30, 2022 Loans & Leases by Class Commercial Commercial construction $ 3,182 $ 2,971 $ 2,783 Owner-occupied commercial mortgages 14,748 14,456 13,795 Non-owner-occupied commercial mortgages 10,733 10,292 9,167 Commercial and industrial 25,376 24,508 23,554 Leases 2,130 2,163 2,178 Total commercial $ 56,169 $ 54,390 $ 51,477 Consumer Residential mortgage $ 14,065 $ 13,727 $ 12,441 Revolving mortgage 1,900 1,916 1,893 Consumer auto 1,425 1,452 1,338 Consumer other 657 632 586 Total consumer $ 18,047 $ 17,727 $ 16,258 SVB Global fund banking $ 29,333 $ 36,097 $ — Investor dependent - early stage 1,840 1,994 — Investor dependent - growth stage 4,052 4,418 — Innovation C&I and cash flow dependent 8,905 9,193 — Private Bank 9,580 9,476 — CRE 2,530 2,444 — Other 2,559 2,549 — Total SVB $ 58,799 $ 66,171 $ — Total loans and leases $ 133,015 $ 138,288 $ 67,735 Less: Allowance for credit losses (1,637) (1,605) (850) Total loans and leases, net of allowance for credit losses $ 131,378 $ 136,683 $ 66,885 Deposits by Type (end of period) June 30, 2023 March 31, 2023 June 30, 2022 Demand $ 44,547 $ 54,649 $ 26,645 Checking with interest 24,809 23,743 16,285 Money market 29,149 30,598 24,699 Savings 26,389 17,932 13,319 Time 16,270 13,128 8,381 Total deposits $ 141,164 $ 140,050 $ 89,329 11
Dollars in millions YTD YTD Credit Quality & Allowance 2Q23 1Q23 2Q22 6/30/23 6/30/22 Nonaccrual loans $ 929 $ 828 $ 513 Ratio of nonaccrual loans to total loans 0.70 % 0.60 % 0.76 % Charge-offs $ (176) $ (62) $ (41) (238) (74) Recoveries 19 12 19 31 37 Net charge-offs $ (157) $ (50) $ (22) (207) (37) Net charge-off ratio 0.47 % 0.27 % 0.13 % 0.39 % 0.11 % Allowance for credit losses to loans ratio 1.23 % 1.16 % 1.26 % 1.23 % 1.26 % Allowance for credit losses - beginning $ 1,605 $ 922 $ 848 922 178 Initial PCD ACL 20 200 (12) 220 272 Day 2 provision, excluding provision for unfunded commitments — 462 — 462 454 Provision (benefit) for credit losses 169 71 36 240 (17) Net charge-offs (157) (50) (22) (207) (37) Allowance for credit losses - ending $ 1,637 $ 1,605 $ 850 1,637 850 12
Dollars in millions Average Balance Sheet 2Q23 1Q23 2Q22 Avg Balance Income/ Expense Yield/ Rate Avg Balance Income/ Expense Yield/ Rate Avg Balance Income/ Expense Yield/ Rate Loans and leases (1)(2) $ 133,528 $ 2,353 7.06 % $ 73,900 $ 1,017 5.57 % $ 65,298 $ 655 4.03 % Investment securities 19,806 117 2.36 19,416 107 2.21 19,185 89 1.85 Securities purchased under agreements to resell 191 3 4.92 — — — — — — Interest-earning deposits at banks 38,014 480 5.07 7,585 87 4.61 7,629 13 0.72 Total interest-earning assets (2) $ 191,539 $ 2,953 6.18 % $ 100,901 $ 1,211 4.85 % $ 92,112 $ 757 3.28 % Operating lease equipment, net (including held for sale) $ 8,405 $ 8,236 $ 7,973 Cash and due from banks 1,161 595 524 Allowance for credit losses (1,600) (936) (849) All other noninterest-earning assets 9,804 7,368 7,815 Total assets $ 209,309 $ 116,164 $ 107,575 Interest-bearing deposits Checking with interest $ 24,164 $ 118 1.92 % $ 16,494 $ 22 0.50 % $ 16,503 $ 4 0.12 % Money Market 29,066 148 2.04 21,216 80 1.53 25,468 18 0.28 Savings 21,979 188 3.44 17,521 110 2.54 13,303 11 0.34 Time deposits 14,958 121 3.24 12,126 76 2.55 8,796 9 0.38 Total interest-bearing deposits 90,167 575 2.56 67,357 288 1.73 64,070 42 0.26 Borrowings: Securities sold under customer repurchase agreements 456 1 0.31 455 — 0.30 627 — 0.16 Short-term FHLB borrowings 110 1 5.17 328 4 4.67 — — — Short-term borrowings 566 2 1.26 783 4 2.13 627 — 0.16 FHLB borrowings 5,558 74 5.35 3,284 40 4.96 386 2 1.64 Senior unsecured borrowings 798 4 2.11 883 5 2.06 894 4 2.05 Subordinated debt 1,045 10 3.59 1,048 9 3.54 1,057 8 3.06 Other borrowings 35,168 327 3.74 1,978 15 2.95 83 1 2.37 Long-term borrowings 42,569 415 3.91 7,193 69 3.84 2,420 15 2.43 Total borrowings 43,135 417 3.88 7,976 73 3.68 3,047 15 1.96 Total interest-bearing liabilities $ 133,302 $ 992 2.98 % $ 75,333 $ 361 1.94 % $ 67,117 $ 57 0.34 % Noninterest-bearing deposits $ 47,241 $ 26,482 $ 26,551 Credit balances of factoring clients 1,168 1,007 1,189 Other noninterest-bearing liabilities 8,077 1,973 2,151 Stockholders' equity 19,521 11,369 10,567 Total liabilities and stockholders’ equity $ 209,309 $ 116,164 $ 107,575 Net interest income $ 1,961 $ 850 $ 700 Net interest spread (2) 3.20 % 2.91 % 2.94 % Net interest margin (2) 4.10 % 3.41 % 3.04 % (1) Loans and leases include non-PCD and PCD loans, nonaccrual loans and held for sale. Interest income on loans and leases includes accretion income and loan fees. (2) The balance and rate presented is calculated net of average credit balances of factoring clients. Note: Certain items above do not precisely recalculate as presented due to rounding. 13
Dollars in millions Average Balance Sheet YTD 6/30/2023 YTD 6/30/2022 Avg Balance Income/ Expense Yield/ Rate Avg Balance Income/ Expense Yield/ Rate Loans and leases (1)(2) $ 103,878 $ 3,370 6.53 % $ 64,724 $ 1,276 3.96 % Investment securities 19,612 224 2.29 19,338 172 1.78 Securities purchased under agreements to resell 96 3 4.92 — — — Interest-earning deposits at banks 22,884 567 4.99 9,542 19 0.40 Total interest-earning assets (2) $ 146,470 $ 4,164 5.72 % $ 93,604 $ 1,467 3.14 % Operating lease equipment, net (including held for sale) $ 8,321 $ 7,949 Cash and due from banks 880 530 Allowance for credit losses (1,270) (882) All other noninterest-earning assets 8,593 7,776 Total assets $ 162,994 $ 108,977 Interest-bearing deposits Checking with interest $ 20,350 $ 140 1.35 % $ 16,578 $ 9 0.11 % Money Market 25,162 228 1.82 25,832 33 0.26 Savings 19,762 298 3.04 13,480 20 0.30 Time deposits 13,550 197 2.93 9,293 19 0.40 Total interest-bearing deposits 78,824 863 2.21 65,183 81 0.25 Borrowings: Securities sold under customer repurchase agreements 456 1 0.31 614 — 0.16 Short-term FHLB borrowings 218 5 4.79 — — — Short-term borrowings 674 6 1.76 614 — 0.16 FHLB borrowings 4,427 114 5.20 513 4 1.41 Senior unsecured borrowings 840 9 2.09 1,801 16 1.80 Subordinated debt 1,047 19 3.57 1,059 16 3.01 Other borrowings 18,665 342 3.70 84 1 2.20 Long-term borrowings 24,979 484 3.90 3,457 37 2.12 Total borrowings 25,653 490 3.85 4,071 37 2.12 Total interest-bearing liabilities $ 104,477 $ 1,353 2.61 % $ 69,254 $ 118 0.34 % Noninterest-bearing deposits $ 36,919 $ 25,936 Credit balances of factoring clients 1,088 1,175 Other noninterest-bearing liabilities 5,065 2,117 Stockholders' equity 15,445 10,495 Total liabilities and stockholders’ equity $ 162,994 $ 108,977 Net interest income $ 2,811 $ 1,349 Net interest spread (2) 3.11 % 2.80 % Net interest margin (2) 3.86 % 2.89 % (1) Loans and leases include non-PCD and PCD loans, nonaccrual loans and held for sale. Interest income on loans and leases includes accretion income and loan fees. (2) The balance and rate presented is calculated net of average credit balances of factoring clients. Note: Certain items above do not precisely recalculate as presented due to rounding. 14
Dollars in millions, except share and per share data YTD YTD Non-GAAP Reconciliations 2Q23 1Q23 2Q22 6/30/2023 6/30/2022 Net income and EPS Net income (GAAP) a $ 682 $ 9,518 $ 255 $ 10,200 $ 526 Preferred stock dividends 15 14 17 29 24 Net income available to common stockholders (GAAP) b 667 9,504 238 10,171 502 Total notable items, after income tax c 98 (9,212) 32 (9,114) 67 Adjusted net income (non-GAAP) d = (a+c) 780 306 287 1,086 593 Adjusted net income available to common stockholders (non-GAAP) e = (b+c) $ 765 $ 292 $ 270 $ 1,057 $ 569 Weighted average common shares outstanding Basic f 14,528,134 14,526,693 16,023,613 14,527,417 15,918,978 Diluted g 14,537,938 14,539,709 16,035,090 14,539,176 15,937,826 EPS (GAAP) Basic b/f $ 45.90 $ 654.22 $ 14.87 $ 700.10 $ 31.52 Diluted b/g 45.87 653.64 14.86 699.53 31.48 Adjusted EPS (non-GAAP) Basic e/f $ 52.64 $ 20.11 $ 16.87 $ 72.75 $ 35.71 Diluted e/g 52.60 20.09 16.86 72.69 35.67 Noninterest income and expense Noninterest income h $ 658 $ 10,259 $ 424 $ 10,917 $ 1,274 Impact of notable items, before income tax (196) (9,950) (141) (10,146) (711) Adjusted or core noninterest income i $ 462 $ 309 $ 283 $ 771 $ 563 Noninterest expense j $ 1,572 $ 855 $ 745 $ 2,427 $ 1,555 Impact of notable items, before income tax (370) (178) (179) (548) (417) Adjusted or core noninterest expense k $ 1,202 $ 677 $ 566 $ 1,879 $ 1,138 Provision (benefit) for credit losses Provision (benefit) for credit losses $ 151 $ 783 $ 42 $ 934 $ 506 Plus: Day 2 provision for credit losses — (716) — (716) (513) Plus: Specific reserve for AFS securities 1 (4) — (3) — Adjusted provision (benefit) for credit losses $ 152 $ 63 $ 42 $ 215 $ (7) PPNR Net income (GAAP) a $ 682 $ 9,518 $ 255 10,200 526 Plus: Provision for credit losses 151 783 42 934 506 Income tax expense (benefit) 214 (47) 82 167 36 PPNR (non-GAAP) l $ 1,047 $ 10,254 $ 379 11,301 1,068 Plus: total notable items, before income tax 174 (9,772) 38 (9,598) (294) Adjusted PPNR (non-GAAP) m $ 1,220 $ 482 $ 417 1,702 774 Note: Certain items above do not precisely recalculate as presented due to rounding. 15
Dollars in millions, except share and per share data YTD YTD Non-GAAP Reconciliations (continued) 2Q23 1Q23 2Q22 6/30/2023 6/30/2022 ROA Net income (GAAP) a $ 682 $ 9,518 $ 255 $ 10,200 $ 526 Annualized net income n = a annualized 2,734 38,602 1,023 20,569 1,061 Adjusted net income (non-GAAP) d 780 306 287 1,086 593 Annualized adjusted net income p = d annualized 3,126 1,244 1,151 2,190 1,195 Average assets o 209,309 116,164 107,575 162,994 108,977 ROA n/o 1.31 % 33.23 % 0.95 % 12.62 % 0.97 % Adjusted ROA p/o 1.49 1.07 1.07 1.34 1.10 PPNR ROA PPNR (non-GAAP) l $ 1,047 $ 10,254 $ 379 $ 11,301 $ 1,068 Annualized PPNR q = l annualized 4,200 41,586 1,519 22,789 2,154 Adjusted PPNR (non-GAAP) m 1,220 482 417 1,702 774 Annualized PPNR r = m annualized 4,893 1,954 1,672 3,432 1,560 PPNR ROA q/o 2.00 % 35.80 % 1.41 % 13.98 % 1.98 % Adjusted PPNR ROA r/o 2.34 1.69 1.56 2.11 1.44 ROE and ROTCE Annualized net income available to common stockholders s = b annualized $ 2,675 $ 38,543 $ 955 $ 20,510 $ 1,012 Annualized adjusted net income available to common stockholders t = e annualized $ 3,067 $ 1,185 $ 1,083 $ 2,131 $ 1,146 Average stockholders' equity (GAAP) $ 19,521 $ 11,369 $ 10,567 $ 15,445 $ 10,495 Less: average preferred stock 881 881 881 881 871 Average common stockholders' equity (non-GAAP) u $ 18,640 $ 10,488 $ 9,686 $ 14,564 $ 9,624 Less: average goodwill 346 346 346 346 346 Less: average other intangible assets 357 175 153 266 168 Average tangible common equity (non-GAAP) v $ 17,937 $ 9,967 $ 9,186 13,952 9,110 ROE s/u 14.35 % 367.47 % 9.87 % 140.82 % 10.51 % Adjusted ROE t/u 16.46 11.30 11.19 14.63 11.91 ROTCE s/v 14.91 386.69 10.40 146.99 11.11 Adjusted ROTCE t/v 17.10 11.89 11.80 15.27 12.58 Tangible common equity to tangible assets Stockholders' equity (GAAP) w $ 19,771 $ 19,216 $ 10,642 19,771 10,642 Less: preferred stock 881 881 881 881 881 Common equity (non-GAAP) x $ 18,890 $ 18,335 $ 9,761 18,890 9,761 Less: goodwill 346 346 346 346 346 Less: other intangible assets 347 364 150 347 150 Tangible common equity (non-GAAP) y $ 18,197 $ 17,625 $ 9,265 18,197 9,265 Total assets (GAAP) z 209,502 214,658 107,673 209,502 107,673 Tangible assets (non-GAAP) aa 208,809 213,948 107,177 208,809 107,177 Total equity to total assets w/z 9.44 % 8.95 % 9.88 % 9.44 % 9.88 % Tangible common equity to tangible assets (non- GAAP) y/aa 8.71 8.24 8.64 8.71 % 8.64 % Note: Certain items above do not precisely recalculate as presented due to rounding. 16
Dollars in millions, except share and per share data YTD YTD Non-GAAP Reconciliations (continued) 2Q23 1Q23 2Q22 6/30/2023 6/30/2022 Book value and tangible book value per common share Common shares outstanding at period end bb 14,520,034 14,519,993 16,002,385 14,520,034 16,002,387 Book value per share x/bb $ 1,300.93 $ 1,262.76 $ 609.95 1,300.93 609.95 Tangible book value per share y/bb 1,253.20 1,213.82 578.92 1,253.20 578.92 Efficiency ratio Net interest income cc $ 1,961 $ 850 $ 700 2,811 1,349 Efficiency ratio (GAAP) j / (h + cc) 60.06 % 7.70 % 66.34 % 17.68 % 59.26 % Adjusted efficiency ratio (non-GAAP)(1) k / (i + cc) 49.65 58.39 57.55 52.47 % 59.50 % Rental income on operating lease equipment Rental income on operating lease equipment $ 238 $ 233 $ 213 $ 471 $ 421 Less: Depreciation on operating lease equipment 91 89 89 180 170 Maintenance and other operating lease expenses 56 56 47 112 90 Adjusted rental income on operating lease equipment $ 91 $ 88 $ 77 $ 179 $ 161 Income tax expense Income tax expense (benefit) $ 214 $ (47) $ 82 $ 167 $ 36 Impact of notable items 75 160 6 235 152 Adjusted income tax expense $ 289 $ 113 $ 88 $ 402 $ 188 Note: Certain items above do not precisely recalculate as presented due to rounding. 17
