First Citizens Reports Earnings For Second Quarter 2010
RALEIGH, N.C., July 26, 2010 (GLOBE NEWSWIRE) -- First Citizens BancShares Inc. (Nasdaq:FCNCA) reports earnings for the quarter ending June 30, 2010, of $28.6 million, compared to $6.2 million for the corresponding period of 2009, according to Frank B. Holding, Jr., chairman of the board. The increase in net income during 2010 was the result of higher net interest income and noninterest income, offset by a higher provision for loan and lease losses and noninterest expense.
Per share income for the second quarter 2010 totaled $2.74, compared to $0.59 for the same period a year ago. First Citizens' current quarter results generated an annualized return on average assets of 0.54 percent and an annualized return on average equity of 6.83 percent, compared to respective returns of 0.14 percent and 1.73 percent for the same period of 2009.
Second quarter net interest income increased $47.8 million, or 40.9 percent, from the same period of 2009, due to a 52 basis point increase in the net yield on interest-earning assets and significantly higher average interest-earning assets. The taxable-equivalent net yield on interest-earning assets improved in each of the past four quarters, primarily due to favorable changes in deposit costs and the positive impact of acquired loans and assumed deposits from FDIC-assisted transactions.Interest-earning assets averaged $18.8 billion during the second quarter of 2010, an increase of $3.05 billion over the second quarter of 2009, due to growth in loans and investment securities. Average loans outstanding increased $2.58 billion, or 22.2 percent, since the second quarter of 2009. As a result of higher loan yields, the taxable-equivalent yield on interest-earning assets grew 7 basis points from 4.59 percent during the second quarter of 2009 to 4.66 percent during the second quarter of 2010. Average interest-bearing liabilities increased by $2.76 billion, or 21.5 percent, during the second quarter of 2010, due to higher levels of deposits, partially offset by lower short-term borrowings. The large deposit increase was caused by strong growth in legacy markets as well as the impact of assumed deposits. The rate on interest-bearing liabilities decreased 52 basis points from 1.87 percent during the second quarter of 2009 to 1.35 percent during the same period of 2010.
Check Out Our Best Services for Investors
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Model portfolio
- Stocks trading below $10
- Intraday trade alerts