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First Citizens BancShares’ net income soared to $28.6 million in the second quarter as loss-share agreements with the Federal Deposit Insurance Corp. helped the Raleigh-based bank post strong gains in interest revenue while incurring only a slight increase in its provision for loan losses.

In an earnings release issued after the close of trading Monday, First Citizens (Nasdaq: FCNCA) reported a 362 percent gain in second quarter profit – up from $6.2 million in the same quarter last year. On a per-share basis, earnings climbed to $2.54 from 59 cents.

Net interest income jumped 40 percent, to $47.8 million, due for the most part to loans acquired by First Citizens last year when the Raleigh bank acquired failed banks on the Atlantic and Pacific coasts payday loans.

The FDIC brokered those deals and agreed to cover much of the potential loan losses.

First Citizens did raise its provision for loan losses by 53 percent – to $31.8 million – in the quarter ended June 30. But with the FDIC covering nearly 70 percent of the potential loan losses shown on First Citizens’ books, the bank is in solid shape on its bottom line.

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Stocks rallied Thursday after better-than-expected earnings and forecasts from 3M, Caterpillar, AT&T and UPS helped reassure investors about the pace of the economic recovery.

The Dow Jones industrial average (INDU) rose 202 points, or 2%. The S&P 500 (SPX) index jumped 24 points, or 2.3%. The Nasdaq (COMP) composite gained 58 points, or 2.7%.

Stocks slumped Wednesday after Federal Reserve Chairman Ben Bernanke told Congress the outlook for the economy was "unusually uncertain," adding to worries about the pace of the recovery.

But the tone was positive Thursday, on the back of improved earnings, better-than-expected housing market news and a surge in European markets.

After the close, Dow component Microsoft (MSFT, Fortune 500) reported higher quarterly sales and earnings that topped estimates, thanks to strong sales of its Windows 7 and a better personal computer market than in recent months. Shares were barely changed after the close.

Also after the close, Dow component American Express (AXP, Fortune 500) reported higher quarterly sales and earnings that topped expectations. But AmEx’s CEO said the company remains cautious about the economic outlook and shares dipped 1% in after-hours trading.

Quarterly results: Dow component Caterpillar (CAT, Fortune 500) reported higher quarterly sales and earnings that topped estimates due to better sales of gear for the mining, infrastructure and energy industries. Caterpillar also boosted its 2010 profit forecast. Shares gained 1.7%.

Fellow Dow component 3M (MMM, Fortune 500) reported higher quarterly sales and earnings and said that full-year 2010 profit will exceed its earlier targets, thanks to strong demand in both the United States and abroad. The company is seen as a good proxy for the economy due to the breadth of its business, which includes everything from Scotch tape to films for flat-screen TVs. Shares gained 3%.

UPS (UPS, Fortune 500) reported higher quarterly sales and earnings that topped estimates and said that 2010 earnings will surpass its earlier forecasts. The delivery company cited an increase in package revenue in both the United States and abroad. Shares gained 6%. UPS is often seen as an economic bellwether due to the nature of its business.

Dow component AT&T (T, Fortune 500) reported higher quarterly earnings that topped estimates and higher revenue that was shy of estimates. The company also lifted its 2010 forecast, citing cost cutting and a surge in wireless business, thanks to its exclusive iPhone deal with Apple. Shares gained 2.4%.

Late Wednesday, eBay (EBAY, Fortune 500) reported higher quarterly sales and earnings that topped estimates, thanks to strength at its PayPal only payments unit. The online auctioneer also lowered the high end of its full-year 2010 profit forecast, citing the impact of the weaker euro. Shares gained 3.8% Thursday.

Housing: Sales of existing home sales fell 5 no faxing payday loan.1% in June from May levels, according to a report from the National Association of Realtors released Thursday. But the drop was smaller than expected. Sales rose nearly 10% from a year earlier.

Jobs: The House voted to extend jobless claims benefits until November, ending a seven-week old debate between lawmakers that saw federal benefits for the long-term unemployed run out. President Obama is expected to sign the extension shortly.

Earlier, the Department of Labor reported that the number of Americans filing new claims for unemployment rose to 464,000 last week from a two-year low of 427,000 in the prior week. Economists surveyed by Briefing.com thought claims would rise to 445,000.

Continuing claims, a measure of Americans who have been receiving benefits for a week or more, fell to 4,487,000 from 4,710,000 in the previous week. Economists surveyed by Briefing.com expected 4,600,000.

Deals: General Motors said it will buy auto financing firm AmeriCredit (ACP) in a $3.5 billion all-cash deal. The deal gives GM a lending unit after selling its majority stake in GMAC in 2006. The deal was also seen as a key step as GM prepares its initial public offering for later this year, after the government restructured it in bankruptcy. AmeriCredit shares jumped 23%.

Dell: Computer maker Dell (DELL, Fortune 500) agreed to pay $100 million to settle fraud charges with the Securities and Exchange Commission. Chairman Michael Dell and former CEO Kevin Rollins will pay $4 million each. Dell shares finished 2.5% higher.

Leading indicators: The index of leading economic indicators fell 0.2% in June, the Conference Board reported, after rising 0.5% in May. Economists expected the index to have fallen 0.4%.

World markets: European markets rose, with Britain’s FTSE 100 up 1.9%, Germany’s DAX up 2.5% and France’s CAC 40 up 3%.

Asian markets ended mixed. Japan’s Nikkei fell 0.6%, while Hong Kong’s Hang Seng gained 1.1% and the Shanghai Composite gained 0.3%.

Currencies: The euro gained versus the dollar. The dollar rose versus the Japanese yen.

Commodities: U.S. light crude oil for September delivery rose $2.46 to $79.02 a barrel on the New York Mercantile Exchange.

COMEX gold for August delivery rose $2.80 to $1,194.60 an ounce.

Bonds: Treasury prices fell, raising the yield on the 10-year note to 2.93% from 2.89% late Wednesday. Debt prices and yields move in opposite directions.

Market breadth: Breadth was positive. On the New York Stock Exchange, winners beat losers by over six to one on volume of 1.18 billion shares. On the Nasdaq, advancers beat decliners by five to one on volume of 2.28 billion shares. 

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Three internists have left Monroeville-based Premier Medical Associates to join the University of Pittsburgh Medical Center, according to spokesman Paul Wood.

Drs. George Wahal, Andrew Margolis and Kahir Ariff will become UPMC doctors next month, Wood said. The move was in the works before Premier reached agreement July 8 with West Penn Allegheny Health System to accept 30 primary care doctors who were employed by the health system, Wood said.

The West Penn Allegheny-Premier deal followed nine months of negotiations, which will increase Premier’s heft as a medical care provider in the city’s eastern suburbs while helping West Penn Allegheny cut losses associated with its employed physicians’ group. Premier is the biggest independent physicians’ group in the region; UPMC is the dominant hospital network, followed by West Penn Allegheny.

In May, UPMC reported its operating income rose 16 percent year-over-year for the first nine months of 2010. West Penn by contrast, saw an operating loss of $5.2 million between January and March, and announced last month it planned to trim 1,500 jobs and close the emergency room at its hospital in the city's Bloomfield neighborhood.

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Despite BP’s current status as one of the most hateable companies around, shareholders in a little-known biofuels technology company are probably quite pleased with the oil giant at the moment.

Shares of Verenium (VRNM), an industrial enzyme maker, spiked 42% after BP announced plans to buy its cellulosic biofuels business for $98.3 million.

Under the terms of the deal, BP will acquire Verenium facilities in Louisiana and California, as well as rights to its cellulosic biofuels and enzyme technology.

Verenium, which has had a partnership with BP since February 2009, will retain control of its core business and will continue to collaborate with BP on research and development.

Carlos Riva, Verenium’s chief executive, said in a statement that he was pleased with the deal and called BP "the right company" to invest in biofuels technology.

Philip New, chief executive of BP Biofuels, called the company’s existing partnership with Verenium "fruitful" and said the acquisition will help expand BP’s ability to deliver "low cost, low carbon, sustainable biofuels, at scale no faxing payday loans."

"This acquisition demonstrates BP’s intent to be a leader in the cellulosic biofuels industry in the U.S.," he said.

BP, formerly known as British Petroleum, launched a marketing campaign in 2000 with the slogan "beyond petroleum." While BP has been developing ethanol and other alternative fuels for years, BP continues to reap most of its profits from the oil industry, however.

The purchase comes as BP conducts tests on a new cap it placed on a ruptured well in the Gulf of Mexico, which has been leaking oil for nearly three months.

Despite this relatively small deal, BP (BP) is expected to sell more oil assets to cover costs related to the spill. It pledged last month to put $20 billion in an escrow account for liability payments.  

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BuzzLogic Inc. in San Francisco hired John Donahue as chief technology officer.

The online advertising company’s previous CTO, Jean Sini, left the job in 2009 to start a new business called Untangly in Mountain View.

Donahue worked at Omnicom Media Group, part of Omnicom Inc.

BuzzLogic had hired Sini when it bought Activision in 2008; Sini had helped start that company in 2005 payday loan lenders.

John Maley is BuzzLogic’s top executive: he’s chief operating and financial officer.

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Texas Comptroller Susan Combs said Friday that the state collected $1.61 billion in sales tax revenue for the month of June.

This is a 2.2 percent increase compared to June 2009.

“Total sales tax collections have now slightly exceeded year-ago levels for a third consecutive month,” Combs says. “Net collections in the oil and gas and manufacturing sectors expanded, but collections from the all-important retail sector were down from the year-ago level. While overall economic activity is no longer contracting, a resumption of solid growth in sales tax collections is not yet in evidence.”

Next week, Combs will send $442.8 million in sales tax allocations to cities, counties, transit systems and special-purpose taxing districts no checking account payday advance.

San Antonio will receive $17 million from the state for the month of July. This is a 15.8 percent increase over July 2009.

Bexar County does not collect a sales tax. VIA Metropolitan Transit will receive $7.8 million in sales tax revenue from the Comptroller’s Office for July. This is an 18.8 percent increase over July 2009.

The San Antonio Advanced Transportation District will receive $3.3 million from the state for July, an 8 percent increase over July 2009.

State sales tax revenue in June and local sales tax allocations in July represent sales that occurred in May.

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Patterson Cos. Inc. chose S.M. Wilson & Co. to build its new $15 million technology center in Effingham, Ill., about 100 miles northeast of St. Louis.

St. Paul, Minn.-based Patterson (Nasdaq: PDCO) is a distributor serving the dental, veterinary and rehabilitation supply markets.

S.M. Wilson said Monday it would immediately begin work on the 96,700-square-foot, three-level facility, which is slated for completion in mid-2011.

The St. Louis-based construction company is providing design/build services for the project, which is being designed to qualify for LEED (Leadership in Energy and Environmental Design) certification by the U.S. Green Building Council. The architect on the project is Omaha, Neb.-based DLR Group.

The facility’s main level features a showroom, employee training center, offices, conference rooms and support space fast payday loans. The facilities top floor has additional training centers, offices, conference rooms and support space.

The building’s lower level will host a walk-out cafeteria, IT department, equipment testing labs, fitness facility, locker rooms, mechanical rooms, and shipping and receiving departments.

Patterson’s project includes a 450-space parking lot, an outdoor pond and walking trails around the facility. The project is scheduled for completion in mid-2011.

S.M. Wilson is one of the largest privately held companies in St. Louis with $439.1 million in 2009 revenue.

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Frito-Lay North America has received a $1.125 million grant from the Texas Enterprise Fund to launch a long-term project that will install business management software throughout the Plano-based company, creating 125 jobs in the process.

The Texas Enterprise Fund is controlled by the governor and used to recruit companies that want to relocate or expand to Texas.

Aurora Gonzalez, a spokeswoman for Plano-based Frito-Lay North America, said the fund’s interest in Frito-Lay’s IT transformation centers around the project's ability to create more than a hundred jobs.

The software upgrade and IT additions are “significant projects that require specific talents and people to do the work,” Gonzalez added.

The project also will create more than $50 million in business infrastructure, the Office of Governor Rick Perry said Friday when confirming the state’s financial commitment through the TEF fund cash advance flexible payments.

Frito-Lay’s project is the next step in parent company PepsiCo.’s multi-year plan to convert and upgrade the company’s business management software throughout product lines and divisions. The state’s investment will support the team responsible for the software conversion.

In response to the money allotted by the fund, Gonzalez said Friday, “As always we value or partnership with both the state and certainly with the City of Plano. We value their commitment to us, and we remain committed to them.”

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