FirstMerit (FMER) in Akron, Ohio, reported higher second-quarter profit after completing its acquisition of Citizens Republic Bancorp in Flint, Mich.
The $23.5 billion-asset company's earnings rose 58% from a year earlier, to $48.5 million, or 30 cents a share.
Net interest income rose 81% from a year earlier, to $201.6 million. The net interest margin widened by 35 basis points from the second quarter of 2012, to 4.12%. Total deposits rose by $7.5 billion from mid-2012, to $19.1 billion, largely because of Citizens Republic. Interest-earning assets rose 57% from a year earlier, to $21.8 billion.
Noninterest expense rose 59% from a year earlier, to $189.6 million. Integration costs for the Citizens acquisition totaled $29.3 million in the second quarter, including severance payments and legal and professional fees. First Merit has incurred $38.7 million of its projected $79.4 million in total merger expenses; it expects the acquisition to result in $59 million of annual cost savings.
Noninterest income rose 32% from a year earlier, to $72.2 million.
The loan-loss provision fell 40% from the second quarter of 2012, to $7.3 million, and net chargeoffs fell 62%, to $3.3 million.