First Citizens in N.C. Reports Higher Profit on Loss-Share Adjustment

First Citizens BancShares (FCNCA) in Raleigh, N.C., received an earnings boost from improved credit quality and a favorable adjustment to loss-share agreements with the Federal Deposit Insurance Corp.

The $212 billion-asset company's fourth-quarter earnings rose 25% from a year earlier, to $27.2 million, or $2.83 a share.

The increase was largely because of noninterest income, which more than doubled from a year earlier, to $69.2 million. The increase included a favorable $33 million adjustment to FDIC receivable for loss-share agreements.

First Citizens' net interest income fell 33% from a year earlier, to $86.4 million, as loan repayments shrank its acquired-loan portfolio. An increase in originated loans, particularly commercial mortgage loans, partially offset the decline.

Noninterest expense dipped 1% from a year earlier, to $196.3 million, primarily because of lower foreclosure-related expenses.

The loan-loss provision shrank 89% from a year earlier, to $7.3 million. Net chargeoffs fell 48% from the fourth quarter of 2012, to $11.7 million.