First Citizens Bancshares in Raleigh, N.C., reported an improvement in third-quarter profit thanks to the benefits of M&A and organic growth.
The $31.5 billion-asset company's net income rose 111% to $56 million from a year earlier. The yearly comparisons are skewed by First Citizens' acquisition of First Citizens Bancorp. in Columbia, S.C., which closed in October 2014.
Still, improvement could be seen on a linked-quarter basis:
- First Citizens Bancshares' net income rose 26% from the second quarter. Earnings per share rose 26% to $4.66.
- Net interest income, before the loan-loss provision, rose 2% to $239.4 million. Total loans rose 2.1% to $19.8 billion. The net interest margin shrank 2 basis points to 3.29%.
- Noninterest income rose 2% to $109.8 million, on a $5.4 million increase in securities gains and higher deposit service charges.
- Noninterest expense fell 1.7% to $260.2 million. Expenses benefited from a $2.5 million depreciation adjustment that resulted from converting First Citizens Bancorp's systems to that of First Citizens Bancshares. The efficiency ratio improved 168 basis points to 75.73%.