First Citizens' earnings increases 4 percent
11/07/2013 4:29 PM
11/07/2013 4:30 PM
The corporate parent of First Citizens Bank reported that its net income rose 4 percent to $41 million in the third quarter thanks to a lower provision for losses from loans.
Raleigh-based First Citizens Bancshares reported that its provision for loan losses improved $25.3 million compared to a year ago, primarily because of unexpected payoffs of loans that the bank had acquired that were previously considered problem loans. The bank recorded a $7.7 million credit to its provision for loan losses in the latest quarter, compared to a provision expense of $17.6 million a year earlier.
That positive swing was partially offset by a decline in net interest income.
Net interest income fell 16.8 percent to $36.2 million due to “shrinkage” of acquired loans, the bank said. Acquired loans totaled $1.19 billion at the end of the third quarter, down from $1.81 billion a year ago.
Loans originated by First Citizens totaled $11.88 billion at the end of the third quarter, up 2.7 percent from a year ago.
Between 2009 and 2011 First Citizens acquired six failed banks with the assistance of the Federal Deposit Insurance Corp.
First Citizens has more than 400 branches in 17 states and the District of Columbia.
The company’s shares closed Thursday at $208.50, down 88 cents. Its shares have risen 28 percent this years.
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