Citing improved credit quality, FirstMerit Corp. of Akron said Tuesday that its fourth-quarter earnings more than quadrupled from a year earlier, to $31.5 million.
Earnings per share also more than quadrupled, to 39 cents, beating the average of analysts' estimates by a penny, according to Thomson Financial.
Paul G. Greig, the $10.4 billion-asset FirstMerit's chairman and chief executive officer, said in a press release that over the past year the company has strengthened its portfolio management practices, restructured its credit department, and adjusted its incentives to reward high credit quality.
The loan-loss provision dropped 79% from a year earlier, to $9.3 million.
Nonperforming assets fell 41.9%, to $37.3 million as of Dec. 31. Net chargeoffs fell 52.2%, to $8.9 million, or 0.51% of average loans.
By Tuesday afternoon FirstMerit's stock had jumped 9.6%, to $18.76 a share.
