FirstMerit Corp. of Akron restated its fourth-quarter and full-year earnings Wednesday to reflect a $3.5 million addition to its loan-loss reserves.
The $10.1 billion-asset company said in a press release that it decided to make the revision after it learned additional details about a problem credit last month.
As a result, its net income was $27.7 million, not $31.2 million, for the fourth quarter, and $130.5 million, not $134 million, for all of 2005.
FirstMerit said it reviewed the problem credit in late January and realized that the borrower's financial condition was significantly worse than it had previously disclosed.
The company said it would provide additional details about the credit in its annual report, scheduled for release March 2.
It also restated its nonperforming assets, reporting a total of $72.3 million, or 1.08% of loans and repossessed property. That total is $11.6 million more than it reported in its original fourth-quarter earnings report on Jan. 19.
FirstMerit's stock fell nearly 2% on the news, to $24.30.
Separately, First Merit announced last week that it had formed a unit to lend to independent energy companies in the Midwest.
