First Citizens BancShares reported that first-quarter earnings fell, mostly because the Raleigh-based bank had a smaller after-tax gain related to its takeover of other failed banks.
First Citizens is one of the Triangle's largest community banks, with 440 branches.
In recent years, it's been expanding through takeovers orchestrated with the Federal Deposit Insurance Corp. Those deals allow First Citizens to increase its business with minimal risk since loan losses are typically covered by the FDIC.
During the first quarter of 2010, the company had an after-tax gain of $82.7 million from its acquisition of failed banks in California and Florida. In the latest quarter, the gain was $39.9 million, tied to the takeover of a Colorado bank.
That led to total quarterly earnings of $62.7 million for the first three months of this year, down from $106.6 million a year earlier, the company reported today.
As with other lenders, First Citizens has been hit as the recession hurt borrowers' ability to repay loans.
As of March 31, nonperforming assets not covered by agreements with the FDIC rose to $206.8 million, from $159.6 million a year earlier.
The company's shares fell $2.63 to $197.94 today. The stock is down about 4 percent in the past year.