UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-Q ____________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended September 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-16715 | --- | --- | --- | |----------------------------------- ...

First Citizens BancShares, Inc. (NASDAQ:FCNCA) Q3 2022 Earnings Conference Call October 27, 2022 8:30 AM ET Company Participants Deanna Hart – Senior Vice President-Investor Relations Frank Holding – Chairman and Chief Executive Officer Craig Nix – Chief Financial Officer Tom Eklund – Treasurer Marisa Harney – Chief Credit Officer Conference Call Participants Brady Gailey – KBW Stephen Scouten – Piper Sandler Brian Foran – Autonomous Christopher Marinac – Janney Operator Ladies and gentlemen, thank you for ...

First Citizens BancShares, Inc. Third Quarter 2022 Earnings Conference Call October 27, 2022 2 Agenda | --- | --- | |-----------------------------------------------------|---------| | | Page(s) | | Section I – Third Quarter 2022 Overview | 4 – 6 | | Section II – Third Quarter 2022 Financial Results | 7 – 27 | | Financial Highlights | 8 | | Earnings Highlights | 9 – 10 | | Notable Items | 11 | | Net interest income and margin 12 – 14 | | | Deposit Betas | 15 | | Noninterest income and expense 16 – 18 | | | B ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 ____________________________________________________ FORM 10-Q ____________________________________________________ ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the quarterly period ended June 30, 2022 or ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 Commission File Number: 001-16715 | --- | --- | --- | |---------------------------------------- ...

Financial Data and Key Metrics Changes - The company reported a GAAP net income of $255 million, or $14.86 per share, with adjusted net income of $287 million, or $16.86 per share, yielding an annualized ROE of 11.9% and an ROA of 1.07% [35][36] - Pre-provision net revenue (PPNR) grew by 17.1% over the linked quarter and by 38.5% year-over-year, with positive operating leverage of 6.9% and 12.8% for the linked and comparable quarters respectively [30][31] - Net interest income increased by 7.9% over the linked quarter and by 14.4% year-over-year, with net interest margin expanding by 31 basis points from 2.73% to 3.04% [31][40] Business Line Data and Key Metrics Changes - The Commercial Bank saw strong performance with loan growth at an annualized rate of 8.4%, driven by business and commercial loans [62] - The General Bank experienced an annualized loan growth rate of 18.4%, primarily from the branch network [61] - The leasing organization, Business Capital, reported strong originations and portfolio performance, despite economic uncertainty [18] Market Data and Key Metrics Changes - Total loans increased by $2.2 billion over the linked quarter, or by 13.5% on an annualized basis, exceeding mid-single-digit guidance [61] - Deposits declined by $2.3 billion, or 9.9% on an annualized basis, primarily due to a reduction in interest-bearing deposits [65] - Noninterest-bearing deposits grew by $747 million, or an 11.6% annualized rate, attributed to strong client relationships [66] Company Strategy and Development Direction - The company is focused on optimizing processes and operations post-merger, with a target of achieving $250 million in cost savings by the end of 2023 [11][12] - A share repurchase program was approved, allowing the company to repurchase up to 1.5 million shares, representing approximately 9.4% of total common shares outstanding [9] - The company aims to enhance its capabilities across various business lines to recognize revenue synergies as a combined entity [11] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about the company's direction despite economic uncertainties, noting that customer portfolios are performing well [8] - The outlook for loan growth is expected to moderate in the third quarter, with a forecast of mid-single-digit growth due to rising interest rates [72] - Management remains confident in credit quality, with net charge-offs projected to return to pre-pandemic levels [75] Other Important Information - The company completed the merger integration with CIT Group and is now focusing on optimizing operations [10] - The efficiency ratio improved to 57.55%, indicating strong net revenue growth and recognition of merger cost savings [58] - The company expects to continue facing inflationary pressures, particularly in wages and professional services, but aims to offset these through cost savings [59] Q&A Session Summary Question: When does the company expect to begin the share repurchase plan? - The company plans to start the share repurchase program on August 1 [82] Question: What led to the change in deposit guidance to a low to mid single-digit decline? - The deposit runoff in the second quarter was slightly above projections, influenced by seasonal factors and higher cost deposits [83][84] Question: How did loan growth perform across legacy markets versus new markets? - Loan growth was strong across the board, with significant contributions from commercial and business loans, as well as the branch network [86]

Part One — Financial Information [Financial Statements](index=5&type=section&id=Item%201.%20Financial%20Statements) The first quarter 2022 financial statements reflect the significant impact of the CIT Group Inc. merger, nearly doubling total assets and increasing net income due to an acquisition gain offset by a substantial provision for credit losses Consolidated Balance Sheet Highlights (Unaudited) | Metric | March 31, 2022 (in millions) | December 31, 2021 (in millions) | Change | | :--- | :--- | :--- | :--- | | Total Assets | $108,597 | $58,309 | +86.2% | | Loans and leases, net | $64,676 | $32,194 | +100.9% | | Total Deposits | $91,597 | $51,406 | +78.2% | | Total Stockholders' Equity | $10,570 | $4,738 | +123.1% | Consolidated Income Statement Highlights (Unaudited) | Metric | Three Months Ended March 31, 2022 (in millions) | Three Months Ended March 31, 2021 (in millions) | Change | | :--- | :--- | :--- | :--- | | Net Interest Income | $649 | $340 | +90.9% | | Provision for Credit Losses | $464 | $(11) | N/A | | Noninterest Income | $850 | $137 | +520.4% | | Net Income | $271 | $147 | +84.4% | | Diluted EPS | $16.70 | $14.53 | +14.9% | - The significant increase in assets, liabilities, and equity is primarily due to the completion of the merger with CIT Group Inc. on January 3, 2022, with Q1 2022 results reflecting the combined entity's activity[33](index=33&type=chunk) - A preliminary non-taxable gain on acquisition of **$431 million** was recognized in noninterest income, representing the excess of the fair value of net assets acquired from CIT over the purchase price[13](index=13&type=chunk)[82](index=82&type=chunk) [Note 2 — Business Combinations](index=17&type=section&id=Note%202%20%E2%80%94%20Business%20Combinations) BancShares completed its merger with CIT Group Inc. on January 3, 2022, with a **$5.95 billion** purchase price, resulting in a **$431 million** preliminary non-taxable gain due to acquired net assets exceeding the consideration - The merger with CIT Group Inc. was completed on January 3, 2022, with each share of CIT common stock converted into 0.062 shares of BancShares Class A Common Stock, resulting in the issuance of approximately **6.1 million** shares valued at **$5.3 billion**[76](index=76&type=chunk) Preliminary Purchase Price Allocation (in millions) | Component | Amount | | :--- | :--- | | **Purchase Price Consideration** | **$5,952** | | Common stock consideration | $5,279 | | Preferred stock consideration | $541 | | Stock-based compensation & other | $132 | | **Assets Acquired** | **$53,775** | | Loans and leases | $32,714 | | Operating lease equipment | $7,838 | | Investment securities | $6,561 | | **Liabilities Assumed** | **$47,392** | | Deposits | $39,428 | | Borrowings | $4,536 | | **Fair value of net assets acquired** | **$6,383** | | **Preliminary gain on acquisition** | **$431** | - Key assets acquired included **$32.7 billion** in loans and leases, **$7.8 billion** in operating lease equipment (primarily rail), and **$6.6 billion** in investment securities, while key liabilities assumed included **$39.4 billion** in deposits[82](index=82&type=chunk) [Note 4 — Loans and Leases](index=30&type=section&id=Note%204%20%E2%80%94%20Loans%20and%20Leases) Total loans and leases increased to **$65.5 billion** at March 31, 2022, primarily due to the **$32.7 billion** portfolio acquired from CIT, with non-accrual loans also rising to **$538 million** Loan and Lease Composition (in millions) | Loan Class | March 31, 2022 | December 31, 2021 | | :--- | :--- | :--- | | **Total Commercial** | **$50,101** | **$22,586** | | Commercial and industrial | $22,402 | $5,937 | | Owner occupied commercial mortgage | $13,553 | $12,099 | | Non-owner occupied commercial mortgage | $9,293 | $3,041 | | Leases | $2,220 | $271 | | Commercial construction | $2,633 | $1,238 | | **Total Consumer** | **$15,423** | **$9,786** | | Residential mortgage | $11,711 | $6,088 | | Revolving mortgage | $1,840 | $1,818 | | Consumer auto | $1,320 | $1,332 | | Consumer other | $552 | $548 | | **Total Loans and Leases** | **$65,524** | **$32,372** | - Non-accrual loans and leases increased to **$538 million** as of March 31, 2022, from **$121 million** at December 31, 2021, with the increase largely attributable to the CIT merger[134](index=134&type=chunk) [Note 5 — Allowance for Credit Losses](index=40&type=section&id=Note%205%20%E2%80%94%20Allowance%20for%20Credit%20Losses) The Allowance for Credit Losses (ACL) significantly increased to **$848 million** due to the CIT merger, which included establishing an initial ACL of **$284 million** for PCD loans and a **$454 million** provision for non-PCD loans ACL Roll-Forward for Loans and Leases (Q1 2022, in millions) | Description | Amount | | :--- | :--- | | **Balance at Dec 31, 2021** | **$178** | | Initial PCD ACL (from CIT Merger) | $284 | | Provision for credit losses | $401 | | Net Charge-offs | $(15) | | **Balance at March 31, 2022** | **$848** | - The provision for credit losses for the quarter included a **$454 million** initial provision for non-PCD loans acquired from CIT and a **$59 million** provision for acquired unfunded commitments[167](index=167&type=chunk)[368](index=368&type=chunk) - The ACL as a percentage of total loans and leases increased to **1.29%** at March 31, 2022, from **0.55%** at December 31, 2021, reflecting the merger[453](index=453&type=chunk)[459](index=459&type=chunk) [Note 22 — Business Segment Information](index=69&type=section&id=Note%2022%20%E2%80%94%20Business%20Segment%20Information) Following the CIT merger, BancShares transitioned to three new operating segments: General Banking, Commercial Banking, and Rail, with Q1 2022 net income of **$126 million**, **$121 million**, and **$32 million** respectively - BancShares transitioned from a single-segment structure to four segments in Q1 2022: General Banking, Commercial Banking, Rail, and Corporate, with Commercial Banking and Rail primarily consisting of operations acquired in the CIT Merger[304](index=304&type=chunk) Segment Net Income (Loss) for Q1 2022 (in millions) | Segment | Net Income (Loss) | | :--- | :--- | | General Banking | $126 | | Commercial Banking | $121 | | Rail | $32 | | Corporate | $(8) | | **Total BancShares** | **$271** | [Management's Discussion and Analysis of Financial Condition and Results of Operations](index=76&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management's discussion highlights the transformative impact of the CIT merger, driving an **84%** increase in net income to **$271 million** for Q1 2022, alongside significant provisions, acquisition gains, and merger-related costs - The financial data for periods prior to the CIT Merger are not directly comparable to the three months ended March 31, 2022, due to the significant scale and scope added by the acquisition[340](index=340&type=chunk) Key Financial Impacts of CIT Merger in Q1 2022 - **CECL Provision**: **$513 million** pre-tax provision for acquired loans and unfunded commitments[355](index=355&type=chunk) - **Gain on Acquisition**: **$431 million** non-taxable preliminary gain[355](index=355&type=chunk) - **Merger Expenses**: **$135 million** in merger-related costs[355](index=355&type=chunk) - **Debt Redemption Gain**: **$6 million** gain from redeeming **$2.9 billion** of assumed CIT debt[355](index=355&type=chunk) - Net interest margin (NIM) decreased by **6 basis points** to **2.73%** compared to Q1 2021, reflecting the impact of lower SBA-PPP income and higher rates on acquired deposits, which offset higher yields on the investment portfolio[364](index=364&type=chunk) - Total deposits increased by **$40.2 billion** to **$91.6 billion**, and total loans and leases increased by **$32.5 billion** to **$65.5 billion** from December 31, 2021, primarily reflecting the CIT merger[355](index=355&type=chunk) [Quantitative and Qualitative Disclosures about Market Risk](index=98&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20about%20Market%20Risk) The company's market risk profile has changed since December 31, 2021, primarily due to the CIT Merger, with detailed discussion provided in the Risk Management section of the MD&A - As of March 31, 2022, BancShares' market risk profile has changed since December 31, 2021, primarily due to the CIT Merger[579](index=579&type=chunk) [Controls and Procedures](index=99&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded that disclosure controls and procedures were effective as of March 31, 2022, with changes in internal control primarily related to the ongoing integration of CIT's operations - The principal executive officer and principal financial officer concluded that disclosure controls and procedures were effective as of March 31, 2022[581](index=581&type=chunk) - Changes in internal control over financial reporting during the quarter were mainly due to the acquisition of CIT, with the evaluation and integration of its controls, processes, and systems currently underway[582](index=582&type=chunk) Part Two — Other Information [Legal Proceedings](index=99&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, including a lawsuit assumed from the CIT merger related to HAMP, which has reached an agreement in principle to settle for **$18.5 million** - As part of the CIT Merger, BancShares assumed a lawsuit related to OneWest Bank's participation in HAMP, which on May 5, 2022, reached an agreement in principle to settle all claims for **$18.5 million**, materially consistent with existing accruals[323](index=323&type=chunk)[326](index=326&type=chunk) [Risk Factors](index=99&type=section&id=Item%201A.%20Risk%20Factors) No material changes to the risk factors disclosed in the company's 2021 Annual Report on Form 10-K have occurred, as previously disclosed risks already contemplated the anticipated effects of the CIT Merger - No material changes in risk factors have occurred since those reported in the 2021 Annual Report, which had already considered the anticipated effects of the CIT Merger[585](index=585&type=chunk) [Unregistered Sales of Equity Securities and Use of Proceeds](index=99&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%20and%20Use%20of%20Proceeds) The company did not repurchase any of its common stock during the quarter ended March 31, 2022 - There were no repurchases of common stock during the first quarter of 2022[586](index=586&type=chunk) [Other Information](index=99&type=section&id=Item%205.%20Other%20Information) On May 5, 2022, the company adopted the First-Citizens Bank & Trust Company Merger Performance Plan to incentivize employees involved in merger integration based on achieving specific milestones - On May 5, 2022, the company adopted a Merger Performance Plan to provide cash-based incentive awards to key employees involved in merger integration, based on achieving conversion and financial milestones[587](index=587&type=chunk)

Merger and Integration - First Citizens anticipates finalizing CIT merger conversions by the second half of 2023[31] - Merger cost savings are expected to be fully realized by the end of 2023[33] - The CIT to FCB payroll conversion was completed[12] Financial Performance (Q1 2022) - Net interest income increased by $30 million compared to 4Q21 and $42 million compared to 1Q21[43, 46] - Noninterest income increased by $16 million compared to 4Q21 and $36 million compared to 1Q21[44, 46] - Pre-provision net revenue grew by $315 million (84%) compared to 4Q21 and $228 million (49%) compared to 1Q21[40] - The net interest margin (NIM) expanded to 2.73% in 1Q22[38] Balance Sheet - Total deposits were $91.6 billion, an increase of $833 million (0.9%) from 4Q21 and $2.2 billion (2.5%) from 1Q21[77, 88] - Loans and leases totaled $65.5 billion, increasing by $313 million (0.5%) compared to 4Q21[77] - Borrowings decreased by $2.743 billion (45.5%) from 4Q21 to $3.292 billion[77] Credit Quality and Capital - The net charge-off ratio was 0.09%[38] - The allowance for credit losses (ACL) to total loans and leases was 1.29%[78] - The common equity Tier 1 (CET1) capital ratio was 11.34%[78] Financial Outlook - The company expects mid-single-digit percentage loan growth for 2022[118] - The company anticipates low to mid-teens percentage growth in net interest income for 2022[118]

Financial Data and Key Metrics - Core deposit growth was strong with noninterest-bearing deposits growing by $1.2 billion since year-end, an annualized growth rate of 20% [17] - Net interest margin expanded by 17 basis points over the linked-quarter, with only 6 basis points attributable to purchase accounting [17] - Pre-provision net revenue increased by 8% over the linked quarter and by 18% over the comparable quarter a year ago [19] - GAAP net income was $264 million or $16.70 per share, yielding an annualized ROE of 11.18% and an ROA of 1% [22] - Adjusted net income was $299 million or $18.95 per share, yielding an annualized ROE of 12.68% and an ROA of 1.12% [22] Business Line Performance - Loan portfolio grew due to strong growth in the branch network and residential mortgages [17] - Positive momentum in fee income-producing lines of business such as rail, card, merchant, and wealth [18] - Core noninterest income increased by $16 million or about 6% over the linked-quarter, driven by higher rental income on operating leases and card/merchant income [37] - Mortgage income was negatively impacted by higher interest rates and reduced refinance activity [38] Market Performance - Total loans increased by $313 million over the linked-quarter or by 1.9% on an annualized basis [45] - Deposits grew at an annualized rate of approximately 4% or about $833 million, driven by a $1.2 billion increase in noninterest-bearing checking accounts [48] - Cost of deposits declined to 17 basis points during the quarter, down 6 basis points from the linked-quarter and 16 basis points from the first quarter of last year [48] Company Strategy and Industry Competition - Focus on timely and successful integration with CIT, with $200 million in cost savings expected to be in the run rate by the end of the year [12] - Shift from integration focus to execution, capturing synergistic value from the CIT merger on both revenue and expense sides [14] - Expect mid-single-digit percentage increase in loans for the full year 2022, with growth led by the branch network [47] Management Commentary on Operating Environment and Future Outlook - Despite geopolitical and macroeconomic uncertainties, the company remains optimistic about growth prospects [14] - Expect net interest margin to continue expanding, with loan growth and fee income generating lines of business showing momentum [9] - Inflation and wage pressures are being felt, but cost savings initiatives are expected to help neutralize expense growth [43] Other Important Information - Credit quality remained strong with a net charge-off ratio of 9 basis points [20] - The company ended the quarter with strong capital and liquidity, supporting the resumption of share repurchases in the second half of the year [20] - The combined ACL was $890 million at the end of 2021, with a day 1 combined ACL of $916 million post-CIT merger [52] Q&A Session Summary Question: Share Repurchase Plan - The company plans a robust stock repurchase plan in the second half of the year, with excess capital estimated at $1.1 billion at the end of Q1 and $1.6 billion by year-end [66][67] Question: Excess Liquidity Deployment - The company aims to redeploy excess liquidity into loans, which could be accretive to margin by 10 to 15 basis points and boost net interest income by $95 million to $143 million [69] Question: PPP Fees and Accretable Yield - SBA-PPP income in Q1 was $9.5 million, with $6 million in fee income [72] Question: Legacy CIT Portfolio and CECL Modeling - The legacy CIT portfolio is performing well, with credit quality back to or better than pre-pandemic levels [76][78] - The ACL is conservative, with 14.3 times coverage of annualized net charge-offs [53] Question: Investment Strategy - The company prioritizes lending over investing in securities, focusing on shorter-duration government-backed or sponsored mortgage-backed securities to reduce volatility in a rising rate environment [81][83] Question: Regional Performance and Customer Behavior - Strong markets across the country, with larger metropolitan areas showing more robust growth [85] - Loan rates are expected to stabilize and increase as higher-rate loans replace lower-rate ones [87]

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K ☒ ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 OR ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 Commission File Number: 001-16715 ____________________________________________________ FIRST CITIZENS BANCSHARES, INC. (Exact name of Registrant as specified in its charter) _______________________________ ...

Financial Data and Key Metrics - Q4 2021 net income was $123.3 million, down $800,000 from Q3 2021 and $14.8 million from Q4 2020 [16] - Return on average assets (ROAA) was 0.84% and return on average equity (ROAE) was 10.96% for Q4 2021 [16] - Full-year 2021 net income was $547.5 million, an 11.3% increase from 2020, with ROAA of 1% and ROAE of 12.84% [18] - Net interest income increased by 3% in Q4 2021, driven by higher SBA-PPP income and loan/investment balances, partially offset by lower yields [19] - Net interest margin declined by 3 basis points in Q4 2021 due to excess liquidity [21] - Noninterest income in Q4 2021 was $114.3 million, down $8.7 million from Q3 2021 and $12.5 million from Q4 2020 [26] Business Line Performance - Excluding PPP loans, organic loan growth was 5.7% annualized in Q4 2021, driven by commercial and industrial loans and owner-occupied commercial real estate loans [20][32] - Wealth management and payments-related businesses showed strong performance, with higher assets under management and increased service charges and card income [26] - Mortgage income declined due to higher mortgage rates and reduced refinance activity [26] - Service charge revenue is expected to decline by 35%-40% due to changes in NSF and overdraft fees, with a 2022 impact estimated at $15 million-$20 million [27][28] Market and Regional Performance - Deposit growth was strong in Q4 2021, with an annualized growth rate of 10.6% and year-over-year growth of 18.4% [36] - Over two-thirds of 2021 deposit growth came from core checking accounts, indicating strong customer retention and acquisition [37] - The company expects deposit growth to moderate in 2022 but remain elevated, supporting the balance sheet and margin even as interest rates rise [37] Strategic Direction and Industry Competition - The merger with CIT creates a top 20 U.S. financial institution with over $110 billion in assets, positioning the company for long-term growth and value creation [6][7] - The company is focused on integrating CIT, with OneWest Bank conversion expected in Q3 2022 and legacy Mutual of Omaha in Q4 2022 [12] - Strategic priorities include optimizing the balance sheet, reducing higher debt costs, and leveraging excess cash from deposit growth [24][25] - The company is investing in digital transformation and expanding its sales force in wealth management and high-growth markets [30] Management Commentary on Operating Environment and Outlook - Management highlighted strong credit quality, with a net recovery of 1 basis point in Q4 2021 and a nonperforming assets ratio of 0.50%, the lowest since Q2 2019 [34] - Macroeconomic improvements led to a $45.8 million reserve release in 2021, compared to a $35.9 million reserve build in 2020 [17][35] - The company expects net interest income ex-PPP to grow in 2022, but net interest margin may decline moderately due to excess liquidity and reduced SBA-PPP income [25] - Low single-digit percentage growth in core noninterest income is expected in 2022, driven by wealth and payments businesses offsetting lower mortgage and service charge income [28] Other Important Information - The company plans to redeem $2.9 billion of senior unsecured debt assumed in the CIT merger, with a weighted average coupon rate of 5% [24] - Changes to NSF and overdraft fees will reduce service charge revenue, with a full impact estimated at $35 million-$40 million annually [27][28] - The CET1 ratio was 11.50% and the total risk-based capital ratio was 14.35% at the end of Q4 2021, with strong earnings offsetting deposit growth impacts [38] Q&A Session Summary Question: Plans for deploying excess liquidity and increasing the securities portfolio [48] - The company plans to redeploy excess cash into investments and loans, targeting higher-cost deposits for replacement with lower-cost core deposits [49] Question: Timing for share buybacks post-merger integration [50] - Share buybacks will resume after demonstrating successful integration and building capital, with no specific timeframe provided [51] Question: Updates on the combined company's financial forecast and integration progress [53] - Pro forma financial information will be shared by early March 2022, with credit quality improvements being a key positive factor [54] Question: Impact of potential Fed rate hikes on net interest margin [55] - The company expects margin improvement in the second half of 2022 as rate hikes take effect, with PPP-adjusted net interest income bottoming out in Q1 2022 [56] Question: Share buyback strategy and capital ratio targets [59] - The company aims to remain active in buybacks but will consider price sensitivity and tangible book value payback periods [60] - The target CET1 ratio remains 9%-11%, with significant excess capital expected post-merger [61][63] Question: Loan growth expectations for the combined company [63] - Mid-single-digit loan growth is aspirational but challenging for the combined company, with further analysis needed on CIT's business units [64]