Centura Banks Inc. on Wednesday announced second- quarter earnings of $28.8 million, up 14% from a year earlier.
The $8.8 billion-asset company's earnings per share of $1 beat Wall Street estimates by 2 cents.
Cecil W. Sewell, Centura's chairman and chief executive officer, said the company's March 26 acquisition of First Coastal Bankshares of Virginia Beach, Va., was a significant factor in the results.
However, Centura's nonperforming assets jumped by $18 million, to $60 million, during the quarter, largely because of one customer.
Centura decided to declare $23 million of loans to Pluma Inc. as nonperforming because of problems at the Eden, N.C.-based fleece and jersey sportswear manufacturer.
To account for the Pluma loans, Centura set aside $6.4 million as a provision for loan losses, up 74% from the $3.6 million provision it took during the second quarter of 1998.