First Citizens in N.C. Posts Higher Profit on One-Time Gains

First Citizens BancShares in Raleigh, N.C., reported higher quarterly profit that reflected a couple of one-time gains.

The $32.2 billion-asset company said in a press release Wednesday that second-quarter profit rose 55% from a year earlier to $69.3 million, or $5.77 a share.

Noninterest income, excluding gains from buying the failed North Milwaukee State Bank and First CornerStone Bank, rose 27.4%, to $136.9 million. The results included $12.4 million in securities gains and $16.6 million tied to early termination of several loss-share agreements with the Federal Deposit Insurance Corp.

Net interest income fell 1% to $232.1 million. Total loans rose 6% to $20.7 billion, and the net interest margin compressed by 18 basis points to 3.13. The loan-loss provision fell 5.8% to $4.5 million.

Noninterest expense decreased by 2.3% to $258.3 million because of a $8.2 million decline in personnel expenses and a $3.2 million decrease in merger-related expenses.

First Citizens in May agreed to buy the $348 million-asset Cordia Bancorp in Midlothian, Va., for $37.1 million in cash. The deal is expected to close in the fourth quarter.

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