-
Citizens Republic had been rumored to be on the block for several weeks. Analysts are also calling the deal significant, but pricey, for FirstMerit.
September 13 -
FirstMerit (FMER) of Akron, Ohio, has chosen a veteran banker in the upper Midwest to manage its newly acquired business in Michigan.
January 9
FirstMerit (FMER) in Akron, Ohio, posted stronger quarterly results largely because of higher fee income and lower expenses.
The $14.9 billion-asset company's earnings rose 25% from a year earlier, to $38.2 million. Earnings per share of 35 cents surpassed the average analysts' estimate by 3 cents, according to Bloomberg.
Net interest income fell 4% from a year earlier, to $116.2 million. The net interest margin compressed 27 basis points from a year earlier, to 3.58%. Noninterest income rose 3% from a year earlier, to $61.6 million.
Noninterest expense fell 10% from a year earlier, to $112.1million, because of a lack of charges tied to mortgage-repurchase agreements and lower Federal Deposit Insurance Corp. premiums. FirstMerit's efficiency ratio of 62.65% was an improvement from 69.46% a year earlier.
FirstMerit's loan book grew 13% from a year earlier, to $8.7 billion, after it originated more commercial and home equity loans.
The loan-loss provision fell 8.1% from a year earlier, to $98.9 million. Net chargeoffs fell by roughly half from a year earlier, to $7.1 million.
FirstMerit announced in September that it would
"While the low-interest rate environment and slow economic recovery continue to challenge the banking industry, I am pleased to report that FirstMerit again performed well and grew our business," Paul Greig, FirstMerit's chief executive, said in a press release Tuesday.
Separately, Citizens Republic on Tuesday also reported stronger results on lower expenses. Earnings at the $9.5 billion-asset company rose 38% from a year earlier, to $17 million. Noninterest expense fell 2.2% from a year earlier, to $65.1 million, following a recovery in the value of foreclosed-upon real estate. The loan-loss provision fell 71% from a year earlier, to $4.3 million.