First State Bancorp of Albuquerque said a higher loan-loss provision and costs associated with two recent acquisitions dampened first-quarter profits.
Earnings were flat with a year earlier, at $4.3 million, and per-share earnings dropped 14.3%, to 24 cents, the $2.5 billion-asset company said Monday.
First State recorded a $2.7 million provision for loan losses, more than twice the year-earlier figure. It attributed the jump to a 24% increase in organic loan growth and an additional allowance on loans it acquired when it bought Access Anytime Bancorp Inc. of Albuquerque and New Mexico Financial Corp. of Belen. Both deals closed in January.
First State said expenses related to the acquisitions, including for system conversions and name and signage changes, were $825,000.
Net interest income jumped 41.5%, to $27.3 million. The company attributed the gain to the acquisitions and increased loan volume made possible by a boost in deposits. Its net interest margin rose 24 basis points, to 4.85%.
