Adjustments for Non-Cash Items (USD, millions)

Stock-Based Compensation (USD, millions)

Changes in Working Capital (USD, millions)

Capital Expenditures (CapEx) (USD, millions)

Proceeds from / Repayments of Debt (USD, millions)

Share Repurchases (USD, millions)

Dividend Payments (USD, millions)

Net Change in Cash (USD, millions)

16ecbcda7d0ae7a939945480b23e48ea1819ce8ffa19f6adf2d7a5b896bb0193

4ecd2664a52c33839e69735944262e30e6446f4066df078c0f36a7d41f10b7b4

General Bank Segment

Net Interest Income

Noninterest Income

Total Revenue

Commercial Bank Segment

SVB Commercial Segment

Rail Segment

Corporate Segment

0275c951f0003ff35276af6d2230b9d738e6e794f1e02cd3cacd4f2b6dfef9a4

First Citizens BancShares, Inc. (FCNCA) is a financial holding company headquartered in Raleigh, North Carolina. It operates through its banking subsidiary, First-Citizens Bank & Trust Company, providing a wide range of financial services across the United States. The company offers consumer and commercial banking services, wealth management, digital banking, and specialized financial services, catering to both individual and business clients  **[0000798941-24-000042_fcnca-20240814_d2.htm:1]** **[0000798941-24-000018_fcnca-20231231.htm:6]** .

1. **General Banking** - Offers consumer and business banking products and services through branches and digital channels, including deposit products, loans, cash management, and wealth management  **[0000798941-24-000018_fcnca-20231231.htm:249]** **[0000798941-24-000042_fcnca-20240814_d2.htm:5]** .
2. **Commercial Banking** - Provides lending, leasing, capital markets, and asset management services to small and middle-market companies across various industries  **[0000798941-24-000042_fcnca-20240814_d2.htm:6]** **[0000798941-24-000018_fcnca-20231231.htm:11]** **[0000798941-24-000042_fcnca-20240814_d2.htm:195]** .
3. **SVB Commercial** - Serves commercial clients and investors in the innovation ecosystem, focusing on technology, life sciences, and healthcare companies, as well as private equity and venture capital firms  **[0000798941-24-000042_fcnca-20240814_d2.htm:6]** **[0000798941-24-000042_fcnca-20240814_d2.htm:195]** .
4. **Rail** - Provides leasing and financing solutions for railcars and locomotives, generating revenue primarily from rental income  **[0000798941-24-000031_fcnca-20240331.htm:58]** **[0000798941-24-000018_fcnca-20231231.htm:12]** .
5. **Corporate** - Includes financial activities not allocated to other segments, such as interest income on investment securities and acquisition-related expenses  **[0000798941-24-000031_fcnca-20240331.htm:58]** **[0000798941-24-000018_fcnca-20231231.htm:251]** .

e8b8a6bf77d82b501faca31f048af84ab1a0ab3e11beee545f9509219275d0e6

| Name                  | Position                                                   | Start Date         | Short Bio                                                                                                                                                                                                 |
|-----------------------|------------------------------------------------------------|--------------------|----------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------------|
| Frank B. Holding, Jr. | Chairman and Chief Executive Officer                       | 1983               | Frank B. Holding, Jr. has been with FCNCA since **1983**. He became President in **1994**, CEO in **2008**, and Chairman in **2009**. He has over **39 years** of experience with the company  **[0001193125-24-069198_d539844ddef14a.htm:77]** **[0001193125-23-048721_d405406dpre14a.htm:17]** .                                          |
| Hope H. Bryant        | Vice Chairwoman                                            | 1986               | Hope H. Bryant has been with FCB since **1986** and Vice Chairwoman since **January 2011**. She was previously Executive Vice President from 2002 to 2011  **[0001193125-24-069198_d539844ddef14a.htm:77]** **[0001193125-24-069198_d539844ddef14a.htm:17]** .                                                                               |
| Peter M. Bristow      | President                                                  | November 2014      | Peter M. Bristow has been President of FCNCA since **November 2014**. He has over 31 years of experience in the banking industry  **[0001193125-24-069198_d539844ddef14a.htm:77]** **[0001193125-24-069198_d539844ddef14a.htm:17]** **[0001193125-23-069150_d405406ddef14a.htm:14]** **[0001193125-23-048721_d405406dpre14a.htm:14]** .                                                                                                  |
| Craig L. Nix          | Chief Financial Officer                                    | November 2014      | Craig L. Nix has been CFO of FCNCA since **November 2014**. He was previously CFO of First Citizens Bancorporation, Inc. from 2001 to 2014  **[0001193125-24-069198_d539844ddef14a.htm:77]** .                                                                                                 |
| Gregory L. Smith      | Chief Information & Operations Officer                     | January 9, 2024    | Gregory L. Smith was appointed as Chief Information & Operations Officer effective **January 9, 2024**. He previously worked at TD Bank Financial Group  **[0000798941-24-000003_fcnca-20240116.htm:1]** **[0000798941-24-000005_fcnca-20240116.htm:0]** **[0000798941-24-000003_gregsmithnewsrelease-fin.htm:0]** .                                                                              |
| Lorie K. Rupp         | Chief Risk Officer                                         | March 2017         | Lorie K. Rupp has been Chief Risk Officer since **March 2017**. She was previously Chief Accounting Officer from 2013 to 2017  **[0001193125-24-069198_d539844ddef14a.htm:77]** .                                                                                                              |
| Jeffery L. Ward       | Chief Strategy Officer                                     | October 2014       | Jeffery L. Ward has been Chief Strategy Officer since **October 2014**. He has been with FCB since **1992**  **[0001193125-24-069198_d539844ddef14a.htm:77]** **[0001193125-23-069150_d405406ddef14a.htm:61]** **[0001193125-23-048721_d405406dpre14a.htm:61]** .                                                                                                                          |
| Andrew Giangrave      | Chief Credit Officer – Commercial Bank                     | April 2022         | Andrew Giangrave has been Chief Credit Officer – Commercial Bank since **April 2022**. He joined FCNCA in January 2022  **[0001193125-24-069198_d539844ddef14a.htm:77]** **[0001193125-23-069150_d405406ddef14a.htm:61]** .                                                                                                                  |
| Randolph R. Martin    | Chief Credit Officer – General Bank                        | June 2022          | Randolph R. Martin has been Chief Credit Officer – General Bank since **June 2022**. He has been with FCB since **2016**  **[0001193125-24-069198_d539844ddef14a.htm:77]** .                                                                                                                   |
| West Ludwig           | Executive Vice President, Chief Human Resources Officer    | 2018               | West Ludwig has been EVP and Chief Human Resources Officer since **2018**. He was previously with MZ, Inc. and Fidelity Investments  **[0001193125-23-069150_d405406ddef14a.htm:61]** **[0001193125-23-048721_d405406dpre14a.htm:61]** **[0001193125-22-070550_d312058ddef14a.htm:60]** .                                                                                                 |
| Matthew G. T. Martin  | Chief Counsel and Corporate Secretary                      | June 2021          | Matthew G. T. Martin has been Chief Counsel and Corporate Secretary since **June 2021**. He was previously the U.S. Attorney for the Middle District of North Carolina  **[0001193125-23-069150_d405406ddef14a.htm:61]** **[0001193125-23-048721_d405406dpre14a.htm:61]** .                                                                 |
| Matt Snow             | Director, Member of the Audit Committee and Trust Committee| January 2, 2025    | Matt Snow will join the Board of Directors effective **January 2, 2025**. He is a partner at Forvis Mazars, LLP and has served as Chairman of its Governing Board since June 2022  **[0000798941-24-000050_fcnca-20241211.htm:1]** **[0000798941-24-000050_ex_991xpressreleasexnewbod.htm:0]** .                                                    |

a3b796d5af1c039b327eeaf4afa5d4624cfb71ecd0e9a809879396421d30f3cb

1. Given the continued stress and anticipated elevated losses in your general office commercial real estate portfolio into 2024 and 2025, what specific strategies are you implementing to mitigate these risks, and how confident are you in your reserve levels to absorb potential future losses?

2. Your net interest margin has faced headwinds due to asset sensitivity in the current rate environment, and you expect further pressure with anticipated Fed rate cuts. What measures are you taking to manage this asset sensitivity, and how will these actions impact your net interest income and overall profitability moving forward?

3. Despite efforts to attract new clients and bring back former ones, SVB Commercial deposits were relatively flat in the third quarter, and venture investment activity remains muted. What are the principal challenges inhibiting deposit growth in this segment, and how do you plan to accelerate growth amidst a competitive landscape and subdued investment environment?

4. Noninterest expenses have increased due to investments in risk and technology capabilities and strategic hires, impacting your efficiency ratio. How do you plan to balance necessary investments with cost management to meet your efficiency targets, and what are your expectations for expense growth in 2025?

5. You have repurchased approximately 28% of your Board-approved $3.5 billion share repurchase authorization. Given the regulatory requirements as you approach Category 3 status and the need to maintain strong capital ratios, how do you justify this capital allocation strategy, and what implications might it have on your capital position amid potential economic or regulatory challenges?

3feba3e2c311dd7a11f77bca5a795c0e50e32063095cc069fe0d6080dc47a092

- The bank could experience an upside if interest rates remain higher for longer, given that **net interest income is over 80% of net revenues**.  **[FCNCA_3413230_1]**
- The focus on improving operational efficiency aims to reduce the adjusted efficiency ratio to the **mid-50%** over time, enhancing profitability.  **[FCNCA_3413230_18]**
- Plans to continue the share repurchase program, with potential for another repurchase plan in the second half of the year, could **enhance shareholder value**.  **[FCNCA_3413230_15]**

dc7c2f711770902fc65e8ade79879961f8dc6a5cbc9ba3fcd57e46bf1f54de5a

- **First Citizens anticipates ongoing expenses related to regulatory compliance as it approaches Category 3 status, which may continue to pressure profitability.** Management states they are investing in risk and technology capabilities to meet regulatory expectations for Category 3 status, and these expenses are reflected in their run rate.  **[FCNCA_3413230_17]** **[FCNCA_3413230_14]**
- **Net interest income is highly sensitive to interest rate cuts, and further reductions could negatively impact earnings.** The bank's net interest income guidance ranges from $6.6 billion to $7 billion, depending on the magnitude and timing of rate cuts, with lower rates leading to lower net interest income.  **[FCNCA_3413230_13]** **[FCNCA_3413230_9]**
- **An economic slowdown could negatively impact loan and deposit growth, representing a downside risk to the bank's performance.** Management acknowledges that if the economy slows, it could adversely affect both loan and deposit growth, negatively impacting their financial results.  **[FCNCA_3413230_13]**

90187e4c8cc1808dd1a38af8e6d40eb5f0b93d34b1161466960989d1d12f7a96

1. **Net Interest Income Outlook**  
   **Q:** What are the assumptions behind the 2025 NII range?  
   **A:** The bank's baseline forecast assumes **two rate cuts** in 2025, but the net interest income range of **$6.6 billion to $7 billion** contemplates anywhere between **zero and four rate cuts**. The exact net interest income and margin will depend on the **magnitude and timing of those rate cuts**. For the first quarter of 2025 compared to the fourth quarter of 2024, they expect net interest income to be **anywhere from up to down 1% sequentially**. By the fourth quarter of 2025, anchoring two rate cuts, headline net interest income is expected to be up **low single digits**, and net interest margin (NIM) in the **low 3.20s**, with ex accretion NIM in the **low 3.10s**.  **[FCNCA_3413230_9]** 

2. **Share Buyback Plans**  
   **Q:** What are the plans regarding share buybacks in 2025?  
   **A:** Managing to a capital ratio range of **10.5% to 11%**, the bank contemplates instituting another **share repurchase plan in the second half of this year**. The current plan is expected to be completed over the next **two to three quarters**. Depending on projected earnings trajectories and stress testing results, they would consider another plan in the second half of 2025. The impact of the loss share agreement is expected to shrink to around **10 basis points**, down from **66 basis points this quarter**, reducing its impact on capital throughout the remainder of the year.  **[FCNCA_3413230_15]** 

3. **Credit Quality Trends**  
   **Q:** Are there any general trends on criticized and classified loans?  
   **A:** There are **no material trends** in criticized and classified loans beyond the information provided about SVB. Credit is considered **well contained**, with perhaps a **slight uptick** but nothing of concern.  **[FCNCA_3413230_16]** 

4. **Risks to Guidance**  
   **Q:** What are the biggest upside potentials and downside risks to the guidance?  
   **A:** The biggest upside would be if **interest rates are higher for longer**, especially on the zero rate cuts end of the range, as net interest income constitutes over **80% of net revenues**. Additional upside could come if **net charge-offs** fall to the lower end of the range, implying less provisioning next year. The biggest downside risk is if the **economy slows**, negatively impacting both **loan and deposit growth**.  **[FCNCA_3413230_13]** 

5. **M&A Outlook**  
   **Q:** What are your latest thoughts on future M&A activity?  
   **A:** The bank is **not projecting any material M&A activity in 2025**, though they remain an **opportunistic crowd** but are not making any projections in that area.  **[FCNCA_3413230_12]** 

6. **SVB Client Funds Growth**  
   **Q:** Can you provide more color on SVB's total client fund growth?  
   **A:** In the fourth quarter, the **$75 billion** invested included a significant portion from very large deals; roughly **one-third** of that total came from **three very large financings**, and almost half were rounds of over **$1 billion**. Early-stage investment (sub-$1 billion) was **roughly flat** quarter-over-quarter. The bank is **pleased with the growth**, signaling continued execution despite a **mixed environment** for investments and higher interest rates. They are **cautious about growth expectations** for SVB in 2025, expecting potential improvement in the second half of the year.  **[FCNCA_3413230_11]** 

7. **Expense Outlook and Regulatory Readiness**  
   **Q:** Will potential regulatory changes affect investment plans over the next few years?  
   **A:** The bank recognizes that regulatory policy priorities could change, but they remain **steadfast** in their goal to meet regulatory expectations for **Category 3** standards. They do not anticipate significant regulatory changes in the near term and are focused on this going into **2025 and 2026**. Expenses associated with Category 3 readiness are **reflected in the run rate**.  **[FCNCA_3413230_17]** ,  **[FCNCA_3413230_14]** 

8. **Sustainable ROTCE Outlook**  
   **Q:** How are you thinking about sustainable ROTCE over the medium term?  
   **A:** Having **quadrupled in size** over the last three years, the bank is investing significantly in technology and risk management. Their goal is to **improve and simplify processes** to better meet regulatory expectations and enhance customer experience. While improvements won't happen immediately, over the long term, they aim to operate with an adjusted efficiency ratio in the **mid-50% range**, down from the **upper 50% range** currently. Interest rates will also impact operating efficiency, with improvements expected over time.  **[FCNCA_3413230_18]** 

9. **Additional SVB Acquisition Synergies**  
   **Q:** Are there additional acquisition-related synergies from SVB in the 2025 guidance?  
   **A:** The bank does not anticipate any **material or significant** cost or revenue synergies from SVB beyond what has already been achieved. They have **achieved the cost synergies estimate** laid out at the beginning of the acquisition and do not expect further impact on expenses in the guidance.  **[FCNCA_3413230_10]** 

93696bff9c2023e41b1bd64c7202a99c0a737df89f4e9f92efe2087920a25ca6

701c4183dd143d35355ec5ff62854a79f6ceda93bc1643966427f02667c8df6b

FCNCA’s Q4 2024 results show net interest income—80% of net revenues—is set to rise if rates stay higher for longer. The bank targets an efficiency ratio in the mid-50% range, with a 2025 NII outlook of $6.6B–$7B. Regulatory costs remain a headwind.

8c4cb96b910dcaddf9b2fd46ae05eb48f68e2ecf95de070de67eb75b3f0df5ca

- **Declining net interest income due to anticipated rate cuts and higher deposit costs, impacting profitability in 2024.** Additionally, the future issuance of **$8-$11 billion** in long-term debt to meet regulatory requirements will create a headwind for net interest income moving forward.  **[FCNCA_3370975_19]** **[FCNCA_3370975_10]**
- **Elevated asset sensitivity from outsized cash position at 17% of earning assets**, posing risk in a declining rate environment as rates fall. The company aims to reduce cash levels to **10%-12%**, but may not achieve this by end of 2024.  **[FCNCA_3370975_11]** **[FCNCA_3370975_10]**
- **Credit quality concerns with expected elevated net charge-offs in the innovation, general office, and equipment finance portfolios in 2024.** Elevated criticized loans in sponsor finance and project finance portfolios may indicate further credit deterioration.  **[FCNCA_3370975_20]** **[FCNCA_3370975_21]**

f34c20c2b0db1c3c6293a3053b80b277f54adee9adb46b1e771717c34a939134

- **First Citizens BancShares has a substantial cash position (17% of earning assets), which they plan to gradually deploy into higher-yielding assets, potentially boosting net interest income and mitigating asset sensitivity over time.**  **[FCNCA_3370975_10]**
- **The Global Fund Banking segment's loan pipeline increased by $1.5 billion in the fourth quarter, indicating potential growth opportunities as they re-engage more fully with clients and market activities improve.**  **[FCNCA_3370975_14]**
- **Management is bullish on the growth prospects of the SVB segment, expecting that loan growth will lead to increased deposit growth, enhancing overall bank earnings in the long term.**  **[FCNCA_3370975_14]**

b87a0ffff48d7868b98aeb2fc148fb7855ab8df8d12b1efb5957329e178b33e2

- The company plans to **return $3.5 billion to shareholders through share repurchases**, aiming to manage the adjusted CET1 ratio down to **10.5%** by the end of **2025**.  **[FCNCA_3394720_10]**
- The company is **proactively managing interest rate risk** by reducing asset sensitivity from **20%** to **14%**, with a goal of **10%-12%**, including adding **$2.5 billion** in cash flow hedges during the quarter, bringing total hedges to **$4 billion**.  **[FCNCA_3394720_12]**
- The company is **improving its loan-to-deposit ratio**, reducing it from **99%** to **92%**, with a target of the mid-**80%** range over the next **3.5 years**, enhancing balance sheet strength and liquidity.  **[FCNCA_3394720_11]**

f222eb53a860cfc817b9a953f351d24b0072f57ee91d9b822851c64b917b53b3

- **First Citizens plans to fully utilize their $3.5 billion share repurchase authorization and may consider additional buybacks in 2025**, indicating strong capital generation and shareholder returns.  **[FCNCA_3403743_16]** **[FCNCA_3403743_9]**
- **Despite a downturn in target markets, the SVB unit continues to acquire new clients and maintain deposit stability**, positioning the company to benefit when investment activity rebounds.  **[FCNCA_3403743_8]** **[FCNCA_3403743_12]** **[FCNCA_3403743_6]**
- **A substantial amount of venture capital "dry powder" ($328 billion) is waiting to be invested**, and as investment activity picks up, **First Citizens is well-positioned to capture growth in loans and deposits** through its SVB franchise.  **[FCNCA_3403743_15]**

2ca5c5203487aa2c7f4687737ce709077a120598909380fc3c89f5ad9b459a7a

1. **Net Interest Income Outlook**  
   **Q:** Can you discuss NII guidance and accretion outlook?  
   **A:** Accretion income will continue to decrease as shorter-term loans pay off. In Q3, net interest margin benefited from accretion by **20 basis points**  **[FCNCA_3403743_7]** , down **8 basis points** from the prior quarter.  **[FCNCA_3403743_7]**  Accretion income dropped from **$140 million to $101 million**  **[FCNCA_3403743_7]** , expected to be around **$90 million** in Q4.  **[FCNCA_3403743_7]**  We anticipate net interest income ex accretion to decline mid- to high single digits in the low scenario and mid- to low single digits in the high scenario by the end of Q4 '24.  **[FCNCA_3403743_7]**  Net interest margin is expected to drop from **3.33%** to the low **3.20%s** in the high scenario and to the low **3.10%s** in the low scenario.  **[FCNCA_3403743_7]** 

2. **Share Buyback Plans**  
   **Q:** Will the elevated pace of buybacks continue?  
   **A:** We plan to utilize the entire **$3.5 billion** buyback authorization.  **[FCNCA_3403743_9]**  Through the end of the year, you can assume a similar pace to what you've seen so far, then slowing down next year to reach that amount by Q3.  **[FCNCA_3403743_9]**  If earnings continue to outstrip risk-weighted asset growth, we would consider an additional repurchase plan in the back half of **2025**.  **[FCNCA_3403743_16]** 

3. **Timing of NII and NIM Bottoming**  
   **Q:** When will NII and NIM bottom and begin growing?  
   **A:** We expect net interest income and margin to trough in the second half of **2025**, regardless of the rate scenario.  **[FCNCA_3403743_13]**  This depends heavily on both the magnitude and timing of rate cuts and balance sheet growth.  **[FCNCA_3403743_13]** 

4. **SVB Loan Growth Prospects**  
   **Q:** What is the outlook for SVB loan growth?  
   **A:** As the market recovers, we anticipate loans and deposits will grow at SVB.  **[FCNCA_3403743_6]**  Lower rates and the expectation of lower rates could be a catalyst for growth.  **[FCNCA_3403743_6]**  There's nothing structural causing the decline; it was related to payoffs towards the end of the quarter.  **[FCNCA_3403743_6]**  Average loan balances were higher than last quarter.  **[FCNCA_3403743_6]** 

5. **Competitiveness in Capital Call Lending**  
   **Q:** Are higher repayments due to competition?  
   **A:** Swings in capital call lending balances are due to borrowers keeping advances out for shorter durations in a higher rate environment and muted investment activity.  **[FCNCA_3403743_14]**  Average balance growth continues to trend positive.  **[FCNCA_3403743_14]**  While there are new entrants, we remain confident due to our long-standing fund banking practice and experienced team.  **[FCNCA_3403743_14]** 

6. **SVB Deposit Trends and Outlook**  
   **Q:** Do you expect SVB deposit flows to pick up?  
   **A:** Deposit balances were flat due to diminished venture investment activity, roughly **$38 billion** in the quarter  **[FCNCA_3403743_12]** , and increased cash burn.  **[FCNCA_3403743_12]**  With the first **50 basis point** rate cut and potential for more, we hope this will unstick the market, unlocking the substantial **$328 billion** in "dry powder" waiting to be invested.  **[FCNCA_3403743_15]**  We remain well-positioned for when investment activity picks up.  **[FCNCA_3403743_15]** 

7. **Floating Rate Loan Exposure**  
   **Q:** What is the exact percentage of floating-rate loans?  
   **A:** In the total loan portfolio, **64%** is variable and **36%** is fixed.  **[FCNCA_3403743_10]**  The majority of variable loans are tied to SOFR with a spot rate around **6.90%**.  **[FCNCA_3403743_11]** 

8. **Excess Liquidity Redeployment**  
   **Q:** Is there excess liquidity that could be redeployed?  
   **A:** We have approximately **$7 billion to $10 billion** in excess liquidity  **[FCNCA_3403743_17]**  that we could potentially redeploy to pay down debt or invest in earning assets.  **[FCNCA_3403743_17]**  We manage liquidity conservatively and will look to take advantage in the future.  **[FCNCA_3403743_17]** 

51ec7932fea8053ff774f7570ea3c4296a2c25313387a5baa331b149f43297d1

- **First Citizens BancShares (FCNCA) has stabilized the SVB franchise, achieving stable deposit balances and winning new clients, which bodes well for future growth.**  **[FCNCA_3380695_15]** **[FCNCA_3380695_18]**
- **The company has excess capital (approximately 190 basis points of CET1 above their target) and plans to methodically use share repurchases to manage capital levels, indicating strong financial confidence.**  **[FCNCA_3380695_17]**
- **Net Interest Income (NII) outlook has improved, with projected NII for 2024 in the range of $7.1 billion to $7.3 billion, up from previous guidance of $6.9 billion to $7.1 billion, due to expectations of higher-for-longer interest rates.**  **[FCNCA_3380695_11]** **[FCNCA_3380695_7]**

0700c44b3b8fa3bf86bdc2373a33fdf5686d0e355f931f214c83862c6aab420d

- **8% of loans are in stress portfolios, representing 61% of charge-offs,** highlighting significant credit risk exposure.  **[FCNCA_3380695_10]**
- **Persistent cash burn and losses to competitors in the SVB segment remain fairly consistent,** indicating challenges in maintaining deposit balances.  **[FCNCA_3380695_15]**
- **The bank is holding a higher than optimal cash position at around 15%,** which may suggest inefficiencies in asset deployment.  **[FCNCA_3380695_9]**

7f03f738c938d1cd51318a8ce124b3614b921ff8ce2854fe5f41225560337264

- **Net interest income and net interest margin are expected to bottom in the second half of 2025, regardless of rate scenarios, due to the bank's asset sensitivity and pressures from rate cuts.**  **[FCNCA_3403743_13]**
- **The SVB segment is facing headwinds from diminished venture investment activity and increased cash burn among clients, leading to flat deposits and muted loan growth, with uncertainty about when conditions will improve.**  **[FCNCA_3403743_12]** **[FCNCA_3403743_15]** **[FCNCA_3403743_6]**
- **A high proportion (around 64%) of variable rate loans exposes the bank to rate declines, and managing asset sensitivity is challenging due to a 3.5% fixed-rate purchase money note constituting about 20% of total funding, creating a "kink" in asset sensitivity.**  **[FCNCA_3403743_10]** **[FCNCA_3403743_13]**

7b6733cb2a8844982f53ef0ad238ee6a92b93b4804ff29f710b1ab9b6300d0ad

- **Significant exposure to falling interest rates could lead to a substantial decline in net interest income, with a projected $1 billion reduction for a 200 basis point rate cut**.  **[FCNCA_3394720_12]** **[FCNCA_3394720_9]**
- **Plans to reduce the Common Equity Tier 1 (CET1) ratio to 10.5% by the end of 2025 through substantial share repurchases may decrease capital buffers, potentially increasing financial risk**.  **[FCNCA_3394720_10]** **[FCNCA_3394720_7]**
- **Uncertainty in the venture capital market could negatively impact deposit growth and the performance of the SVB Commercial segment, limiting the company's ability to achieve loan-to-deposit ratio targets**.  **[FCNCA_3394720_10]** **[FCNCA_3394720_11]**

bf48f90a7843cf89b15aadfea4bb1979fce726a5097aced205ab7e4d84afead8

First Citizens BancShares Inc (Delaware) (FCNCA)

Financials