First Citizens BancShares in Raleigh, N.C. reported a significant decline in quarterly earnings due to a higher loan-loss provision and increased operating costs.
The $22 billion-asset company said its third-quarter profit fell 36% from a year earlier, to $26.4 million, or $2.74 a share.
The decline was primarily due to $1.5 million provision, compared to a $7.7 million reserve release a year earlier. Other credit quality metrics improved, with net chargeoffs declining 58%, to $3.5 million, and nonperforming assets falling by 19%, to $157 million.
Net interest income rose 7%, to $166.2 million. Total loans rose 6%, to $13.8 billion, while the nhe net interest margin compressed by 41 basis points, to 3.26%.
Noninterest income rose 8%, to $77.4 million, largely because of increased processing service fees.
Noninterest expenses increased 5%, to $201.8 million.