After benefiting from the acquisition of a failed bank in 2011, First Citizens BancShares's (FCNCA) first-quarter earnings were down more than 42%, to $35.5 million, from a year earlier.
The $21.1 billion-asset company in Raleigh, N.C., said after the market closed on Wednesday that its earnings per share totaled $3.45, down from $5.92 a year earlier. In the first quarter of 2011, First Citizens recorded a gain of $63.5 million from the acquisition of the assets and liabilities of the failed United Western Bank of Denver.
The bank's noninterest income declined almost 64%, to $46.9 million, year over year after the bank recorded the gain from the acquisition in 2011. The quarter also included a $26.8 million charge from adjustments to Federal Deposit Insurance Corp. receivables for assets covered by loss-share agreements.
Excluding acquisition gains and the effect of post-acquisition adjustments, noninterest income fell almost 4%. Cardholder and merchant services income fell about 16% because of lower interchange fees.
These declines were partially offset by an 8% rise, to $221 million, year over year in the company's net interest income. This increase came from the accretion of fair value discounts and lower rates on interest-bearing liabilities.
Average loans and leases, including those acquired in FDIC-assisted transactions, fell less than 1%, to $13.8 billion from a year earlier. The provision for loans losses totaled $30.7 million, down roughly 31%, from a year earlier, as the company saw a $23 million reduction in the amount of recognized for post-acquisition deterioration of acquired loans covered by FDIC loss-share agreements. Net chargeoffs totaled $28.4 million, down 28% from a year earlier. The quarter included a $5 million loss on a commercial and land development loan.
Noninterest expense fell more than 3%, to $183.3 million, year over year, as FDIC deposit insurance expense decreased because of a new assessment formula.
