First Citizens BancShares Inc., in Raleigh, N.C., said third-quarter profit rose 195% from a year ago, boosted in part by its acquisition of a failed bank in Colorado.
The $21 billion-asset company on Tuesday reported net income of $81.9 million, or $7.91 per share, up from $27.7 million a year earlier. The quarter's results included a pre-tax gain of $87.8 million related to its acquisition of the failed Colorado Capital Bank of Castle Rock, Colo.
That deal, as well as First Citizens' January acquisition of United Western Bank in Denver, produced several effects in the quarter, in addition to the pre-tax gain. They included an additional $30.3 million in provisions for loan losses, $69.8 million in interest income from accretion of fair value discounts and $18.9 million of charges to noninterest income arising from adjustments to the FDIC receivable.
For the entire quarter First Citizens' provision for loan losses fell 25.5% to $44.6 million from a year earlier. Net interest income, after the provision, rose 1.5% to $172.6 million. Noninterest expense rose 15.3% to $203.8 million on higher costs for salaries, computer maintenance and foreclosures and loan collections.