First Citizens BancShares Inc. in Raleigh, N.C., reported a decline in second-quarter earnings after its loan-loss provision jumped.
The $21 billion-asset company's earnings fell 25.5% from a year earlier, to $21.3 million. The provision rose 70% from a year earlier, to $54 million, and the company said that nearly half of that amount was tied to "higher levels of post-acquisition deterioration" from loans acquired through loss-sharing agreements with the Federal Deposit Insurance Corp.
First Citizens has been an aggressive participant in FDIC sales of failed banks. In January, it bought the assets of United Western Bank of Denver. Last month, it bought the failed Colorado Capital Bank of Castle Rock, Colo.
Net interest income, excluding the provision, rose 25.8% from a year earlier, to $207.4 million.
