First Citizens BancShares reported a sharp decline in quarterly profit that largely reflected merger-related costs and the Raleigh, N.C., company's exit from loss-sharing agreements.
The $33 billion-asset company said in a press release Wednesday that its third-quarter earnings fell 25% from a year earlier, to $51.4 million, or $4.28 a share.
First Citizens completed its $37 million purchase of Cordia Bancorp in Midlothian, Va., in September. The company added $241 million in loans and $292 million in deposits.
Noninterest expense rose 3.4% to $267.2 million. In addition to merger-related expenses, the company reported higher health insurance costs and an uptick in foreclosure-related expenses.
Noninterest income, excluding gains from acquisitions, fell 15% to $117.8 million, mostly because of the termination of loss-share agreements with the Federal Deposit Insurance Corp. Lower securities gains also played a role.
Net interest income rose 1.5% to $235.8 million. Total loans rose 1.9% to $21 billion, while the net interest margin compressed by 3 basis points to 3.10%.