CINCINNATI (AP) — Regional banker Fifth Third Bancorp reported Thursday that fourth-quarter net income jumped 28 percent, helped by improving credit conditions.

The Cincinnati-based company earned $390 million, or 43 cents per share, for the period ended Dec. 31. That compares with $305 million, or 33 cents per share, a year ago, and topped analysts’ estimates for of 41 cents per share.

Net charge-offs of bad loans dropped to $147 million from $239 million, which Fifth Third said Thursday was the lowest level since 2007’s third quarter. Total delinquencies fell 4 percent from the third quarter, the lowest since 2004’s second quarter.

CEO Kevin T. Kabat called the results “strong,” and cited double-digit mortgage banking and corporate banking revenue growth among other highlights.

“Credit trends continue to be favorable, with full year net charge-offs down 40 percent from 2011 and nonperforming assets declining 29 percent, both the lowest levels reported since 2007,” Kabat said in a statement.

Non-interest income, which includes revenue from fees and other sources, surged 60 percent to $880 million. This included a $157 million gain on the sale of shares of payment processor Vantiv Inc.

Net interest income declined 2 percent to $903 million from $920 million.

Net interest income combines interest on loans that the bank collects and interest on deposits and debt that the bank pays out. It is a measure of the bank’s ability to profit from its lending.

For the full year, Fifth Third reported net income of $1.6 billion, up from $1.3 billion in 2011. Earnings available to common shareholders were $1.66 per share, up from $1.18 per share in 2011. Kabat said it was the second-highest yearly net income level in company history.

Fifth Third’s business has rebounded in the aftermath of the nation’s financial and housing crisis that hit particularly hard in key markets in Florida and Michigan. In September, Fifth Third raised its third-quarter dividend to 10 cents per share. Its dividend had been cut to 1 cent per share in late 2008.

Fifth Third has more than 1,300 banks in 12 states.

Shares rose 43 cents, or 2.9 percent, to $16 about 10 minutes before the market opened. They peaked for the past year at $16.16 in October. They traded as low as $12.04 in June.