First Citizens 3Q profit jumps on 2 bank takeovers
The Associated PressFirst Citizens Bancshares Inc. on Thursday said its third-quarter profit more than quadrupled after it took over the assets of two failed banks.
For the three months ended Sept. 30, the parent of First Citizens and IronStone banks said it earned $82.5 million, or $7.90 per share, compared with $19.6 million, or $1.87 per share, in the year-ago period.
The latest quarter's results include gains of $63.9 million, or $6.12 per share, related to the government-assisted takeovers of two failed banks, Temecula Valley Bank in Temecula, Calif., and Venture Bank in Lacey, Wash.
First Citizens received cash, investment securities, loans, foreclosed real estate, deposits and borrowings in the transactions. The foreclosed real estate and loans are covered by loss-sharing agreements with the Federal Deposit Insurance Corp.
Net interest income, or earnings from deposits, rose 6 percent to $135.3 million, compared with $127.3 million last year.
Noninterest income, or money earned from fees and charges, totaled $77.7 million, edging up from $77.5 million last year.
First Citizens cut its provision for loan losses, or money set aside to cover bad loans, 9 percent to $18.3 million from $20 million. While many banks have been increasing these provisions, First Citizens said it was able to trim back because of lower internal loan growth.
Non-performing assets, or loans that are past due, quintupled to $311.4 million from $62.2 million. The bank said 66 percent of the total, or $205.1 million, is covered by the FDIC loss-sharing agreements. The remaining $106.3 million represents a 71 percent increase over last year
Net charge-offs, or loans written off as unpaid, rose to $15.3 million from $11.6 million.
First Citizens shares added 42 cents to $150 in light afternoon trading.