FirstMerit Corp., Akron, Ohio, reported third-quarter earnings of $31.7 million, up about 9% year over year, thanks to increased commercial lending activity and fewer problem assets.
Earnings per share rose 7%, to 29 cents, beating analysts’ estimates by a penny.
The $14.7 billion-asset company said that the 5.6% increase in average loans not covered by loss-sharing agreements with the Federal Deposit Insurance Corp. was driven entirely by a 12% rise in commercial loans year over year, to $4.9 billion.
Meanwhile, nonperforming assets declined 22% year over year and 9% from the second quarter, to $90.4 million. The allowance for noncovered loan losses totaled $109.2 million, down 6% from a year ago.
Daily Briefing | Wednesday, October 26, 2011
Bank of America Loses Yet Another Top LO This Time to Wells
Top residential loan officers working for Bank of America are continuing to flee the troubled lender with its latest casualty being David Macke, who ranks first among all purchase money LOs at the bank.
Bad News for Existing HARP Borrowers: Only One Refi Allowed
The nearly 900,000 borrowers who already refinanced through the HARP program will not get another chance to lower their mortgage rates under the White House’s newly revised initiative.
Greenlight Will Launch Wholesale Effort in Early 2012
Greenlight Financial Services, Irvine, Calif., Wednesday announced that it will enter the wholesale channel and hopes to fund its first loan some time early next year.
Freddie Sees a Jump in Secondary Market Purchases
Freddie Mac acquired $32.3 billion of mortgages from its seller/servicers during September, up 16% on a sequential basis, and its best purchase month since February, according to new figures released by the GSE.
Flagstar Posts Smaller Loss in 3Q, Originations Spike
Flagstar Bancorp, the nation’s sixth largest wholesale originator, lost just $14 million in the third quarter, a sign that it may finally be headed toward the black after years of losses.
Mortgage Applications On the Rise Again
Residential application volume increased 4.9% on a seasonally adjusted basis for the week ending October 21, as purchase loans recovered from a 15-year low, according to new figures compiled by the Mortgage Bankers Association.
A Ray of Hope: New Home Sales Increase
New home sales rose 5.7% in September thanks to strong purchase activity in the South and West, according to government figures released Wednesday morning.
Earnings Down, But LPS Still Posts $40.5MM Profit
Lender Processing Services posted net earnings of $40.5 million in the third quarter, down 49% from a year ago as increased revenue from its technology and analytics unit couldn’t compensate for higher costs in its loan transaction services unit.