First Citizens has huge quarter

The corporate parent of First Citizens Bank reported dramatically higher net income thanks to a windfall stemming from the acquisition of two failed banks.

Raleigh-based First Citizens BancShares reported a first-quarter net income of $107.6 million, or $10.31 per share, up from $8.7 million a year ago.

Its acquisitions of First Regional Bank of Los Angeles and Sun American Bank of Boca Raton, Fla., produced a gain of $137.6 million, or $83.7 million after taxes. First Citizens has acquired four failed banks in the past nine months; all the deals were orchestrated by the Federal Deposit Insurance Corp.

Even without those acquisition-related gains, First Citizens' net income more than doubled.

Net interest income increased $35.2 million, or 30 percent, from a year ago.

First Citizens' provision for loan and lease losses totaled $16.9 million in the first quarter, a decrease of $1.8 million. Charge-offs fell 2.5 percent to $13.6 million.

First Citizens BancShares is the corporate parent of First Citizens Bank and IronStone Bank, which together have 447 branches. The two banks had total assets of $21.2 billion as of March 31.