Fourth Quarter Highlights
- Diluted earnings per share of $0.38
- Net income of $31.2 million
- Return on average common equity of 12.98%
- Return on average assets of 1.21%
AKRON, Ohio, Jan. 19 /PRNewswire-FirstCall/ -- FirstMerit Corporation
(Nasdaq: FMER) today announced full year 2005 net income of $134.0 million, or
$1.60 per diluted share. This compares with $103.2 million, or $1.21 per
diluted share, for 2004. For the fourth quarter of 2005, the Company reported
net income of $31.2 million, or $0.38 per diluted share, compared with $28.4
million, or $0.33 per share, for the prior-year quarter.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001220/FIRSTMERITLOGO )
Returns on average common equity ("ROE") and average assets ("ROA") for
the full year were 13.86% and 1.31%, respectively, compared with 10.49% and
1.00% for 2004. Fourth quarter ROE and ROA were 12.98% and 1.21%,
respectively, compared with 11.49% and 1.12% for the prior-year quarter.
"In 2005 we moved forward on five major initiatives to enhance the value
of the franchise," said John R. Cochran, chairman and CEO. "Progress in
credit quality is reflected in the $10.0 million reduction, or 17.97%
decrease, in net charge-offs. In light of the flurry of increased charge-offs
experienced at the end of the year due to changes in bankruptcy legislation, I
am confident that we will advance further on our credit quality goals in 2006.
Our focus on restoring asset quality did not impede our success regenerating
revenue production. Revenue growth over the prior year was supported by solid
gains in fee income from measures taken over this past year combined with the
effect of longer-term investments in the development of our strong sales and
service culture. I am also pleased with the course we have taken in de-
leveraging our balance sheet. The ongoing restructuring of our earning asset
mix has been vital to expanding our net interest margin and insulating it from
volatility given the interest rate environment this past year."
Mr. Cochran continued, "Diligence in expense management was demonstrated
by an improved efficiency ratio including restraint on operating expenses,
which grew less than 1% in 2005. Finally, the Company was resourceful with
its capital management program this past year, highlighted by the repurchase
of over 2.4 million shares from the previously authorized 3.0 million share
buyback program."
Total revenue, defined as net interest income on a fully tax-equivalent
("FTE") basis plus noninterest income net of securities transactions, totaled
$540.2 million for 2005, compared with $530.8 million reported in 2004. FTE
net interest income was $351.6 million for 2005, a decline of 0.54% from
$353.5 million in 2004, slightly offset by the impact of a 2 basis point
increase in the net interest margin to 3.73%. The execution of the Company's
balance sheet de-leverage strategy was instrumental in the expansion of the
net interest margin. In 2005, the Company reduced its reliance on investment
securities revenue, shrinking the average investment portfolio balance by
$195.9 million, or 6.60%. During this time average loans grew $117.0 million,
or 1.80%. The resulting $81.3 million decline in average earning assets in
2005 was closely matched with declines in higher cost time deposit accounts.
For the fourth quarter of 2005, FTE net interest income was $88.2 million,
compared with $88.0 million in the fourth quarter of 2004. In the fourth
quarter of 2005, the average investment portfolio was $2.6 billion, down
$212.0 million, or 7.49%, from the fourth quarter of 2004. Over that same time
period, average loans increased $265.9 million, or 4.13%. Average
investments accounted for 25.65% of average total assets in the quarter,
compared with 27.98% for the fourth quarter of 2004, further reflecting the
Company's shift to a higher-yielding mix of earning assets.
Noninterest income excluding securities transactions totaled $188.5
million for 2005, compared with $177.3 million in 2004, an increase of $11.3
million, or 6.35%. Service charge on deposits increased $6.9 million, or
11.10%, while credit card fees increased $3.2 million, or 8.6%, acting as the
primary drivers of the increase in annual noninterest income. For the fourth
quarter of 2005, noninterest income, excluding securities transactions, was
$47.5 million, an increase of $3.6 million, or 8.28%, compared with the fourth
quarter of 2004. The increase was primarily due to the $3.8 million after tax
other-than-temporary impairment charge for Federal National Mortgage
Association and Federal Home Loan Mortgage Corporation perpetual preferred
stock taken in the fourth quarter of 2004 and recorded in investment
securities losses.
Noninterest expense totaled $313.5 million for 2005, compared with $311.9
million for 2004. The Company executed on its expense management initiative,
holding operating expense growth to slightly under $1.6 million, or 0.5%, for
the year and improving its efficiency ratio to 57.88%, compared with 58.60%
for 2004. Noninterest expense totaled $79.3 million for the fourth quarter of
2005, compared with $80.3 million for the fourth quarter of 2004, a decrease
of $1.0 million, or 1.25%. The efficiency ratio for the quarter was 58.26%,
compared with 60.69% for the fourth quarter of 2004.
Net charge-offs totaled $45.5 million in 2005, compared with $55.4 million
for 2004, or 0.69% and 0.85% of average loans, respectively. The $10.0
million, or 17.97%, reduction in net charge-offs reflects consecutive years of
progress on the Company's initiative for improving credit quality. During the
fourth quarter of 2005, net charge-offs totaled $13.4 million, or 0.79% of
average loans, compared with $12.6 million, or 0.78% of average loans for the
fourth quarter of 2004. The increase in net charge-offs during the fourth
quarter of 2005 resulted from $4.8 million in accelerated consumer bankruptcy
filings. As of December 31, 2005, nonperforming assets were $60.7 million, or
0.91% of period-end loans plus other real estate ("ORE"), compared with $45.9
million, or 0.71%, at December 31, 2004. The increase in nonperforming assets
resulted from higher levels of ORE and a rise in nonaccrual loans due to
deterioration in a small number of commercial credits during the fourth
quarter of 2005, for which the Company has provided the appropriate reserves.
The Company recorded $38.4 million of loan loss provision expense in 2005,
compared with loan loss provision expense of $73.9 million in 2004.
Significant improvement in criticized commercial assets resulted in a decrease
in required reserves. At December 31, 2005, criticized commercial assets
accounted for 7.81% of total commercial loans, compared with criticized
commercial asset levels of 9.64% at December 31, 2004, reflective of a $45.0
million decrease in criticized commercial assets. In the fourth quarter of
2005, loan loss provision expense was $10.9 million, compared with $9.4
million in the fourth quarter of 2004.
At December 31, 2005, the allowance for loan losses was 1.35% of loans,
compared with 1.51% at December 31, 2004. The allowance for credit losses is
the sum of the allowance for loan losses and the reserve for unfunded lending
commitments. For comparative purposes, the allowance for credit losses was
1.44% at December 31, 2005, compared with 1.47% at September 30, 2005, and
1.60% at December 31, 2004.
Assets at December 31, 2005 totaled $10.2 billion, compared with $10.1
billion at year-end 2004, representing an increase of $44.0 million, or 0.43%.
Period-end loan growth of $253.2 million, or 3.94%, resulted primarily from
growth in the commercial portfolio which increased $247.6 million, or 7.52%.
Home equity loans increased $102.5 million, or 15.15%, offsetting targeted
reductions in the Company's installment and lease portfolios.
Deposits totaled $7.2 billion at December 31, 2005, a decline of 1.79%
from $7.4 billion at December 31, 2004. Noninterest bearing demand deposit
accounts ("DDA") increased $53.2 million, or 3.62%, in 2005, easing pressure
on the Company's funding costs during a period of rising interest rates. For
the fourth quarter of 2005, average deposits declined $147.8 million, or
1.99%, compared with the fourth quarter of 2004. During that time, increased
noninterest bearing DDA partly offset decreasing levels in other core deposit
categories. Average core deposits now account for 63.72% of deposits,
compared to 62.86% at December 31, 2004.
Shareholders' equity was $941.1 million at December 31, 2005. The
Company's capital position remains strong as tangible equity to assets was
7.96% at quarter-end. The common dividend per share paid in 2005 was $1.10, a
$0.04 increase from 2004. The Company repurchased 2,368,516 shares in 2005,
completing a 3,000,0000 share repurchase program authorized by the Board of
Directors in July 2004.
Fourth Quarter 2005 Highlights
The Board of Directors of FirstMerit Corporation declared a quarterly cash
dividend of $0.28 per share on the Corporation's Common Stock, payable
December 19, 2005, to shareholders of record on November 28, 2005.
FirstMerit Bank ushered in a new group of relationship-based, interest-
bearing retail checking accounts to help customers earn more on their
balances. The bank's new FirstMerit Gold Checking(SM) and FirstMerit Diamond
Checking(SM) complement its free checking account. The new products give
customers an opportunity to earn interest and waive fees based on balances,
account activity and loan relationships with the bank.
FirstMerit Bank announces the availability of a Mini Check & Cash Card(R)
for customers on-the-go. The new card is a miniature version of the Bank's
Check & Cash Card(R) and works the same as the original version, deducting
money from the customer's checking account each time they make a purchase.
Conference Call Information:
FirstMerit's senior management will host an earnings conference call on
January 19, 2006, at 2:00 p.m. Eastern time to provide an overview of fourth
quarter and full year results and highlights. To participate in the conference
call, please dial (800) 322-0079 ten minutes before start time and provide the
reservation number: 6925846.
A replay of the conference call will be available at approximately 4:30
p.m., on January 19, 2006 through February 19, 2006, by dialing (877) 519-
4471, and entering the PIN: 6925846.
The fourth quarter earnings release will be available at approximately
7:30 a.m. on the Internet at http://www.firstmerit.com under the Investor
Relations portion of the Web site. Any material non-public information that
might be disclosed during the conference call will be posted on the Web site
immediately after the conference call ends.
FirstMerit Corporation is a diversified financial services company
headquartered in Akron, Ohio, with assets of $10.2 billion as of December 31,
2005 and 160 banking offices in 24 Ohio and Western Pennsylvania counties.
FirstMerit provides a complete range of banking and other financial services
to consumers and businesses through its core operations. Principal wholly-
owned subsidiaries include: FirstMerit Bank, N.A., FirstMerit Mortgage
Corporation, FirstMerit Title Agency, Ltd., FirstMerit Credit Life Insurance
Company, and FirstMerit Community Development Corporation.
Forward-Looking Statement
This release contains forward-looking statements relating to present or
future trends or factors affecting the banking industry, and specifically the
financial condition and results of operations, including without limitation,
statements relating to the earnings outlook of the Company, as well as its
operations, markets and products. Actual results could differ materially from
those indicated. Among the important factors that could cause results to
differ materially are interest rate changes, continued softening in the
economy, which could materially impact credit quality trends and the ability
to generate loans, changes in the mix of the Company's business, competitive
pressures, changes in accounting, tax or regulatory practices or requirements
and those risk factors detailed in the Company's periodic reports and
registration statements filed with the Securities and Exchange Commission. The
Company undertakes no obligation to release revisions to these forward-looking
statements or reflect events or circumstances after the date of this release.
Analysts: Tom O'Malley Media: Jacque Sir Louis
(330) 384-7109 (330) 849-8877
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited) Quarters
(Dollars in thousands)
2005 2005 2005
EARNINGS 4th Qtr 3rd Qtr 2nd Qtr
Net interest income FTE (a) $88,152 88,347 88,432
Provision for loan losses 10,860 9,974 5,972
Other income 47,586 47,846 50,095
Other expenses 79,274 78,926 79,397
FTE adjustment (a) 650 641 655
Net income 31,166 36,594 36,145
Diluted EPS 0.38 0.43 0.43
PERFORMANCE RATIOS
Return on average assets (ROA) 1.21% 1.41% 1.40%
Return on average common equity (ROE) 12.98% 14.90% 15.07%
Net interest margin FTE (a) 3.73% 3.70% 3.74%
Efficiency ratio 58.26% 57.81% 57.14%
Number of full-time equivalent employees 3,057 3,073 3,078
MARKET DATA
Book value/common share $11.43 11.65 11.69
Period-end common share mkt value 25.91 26.79 26.11
Market as a % of book 227% 230% 223%
Cash dividends/common share $0.28 0.28 0.27
Common stock dividend payout ratio 73.68% 65.12% 62.79%
Average basic common shares 82,786 83,489 83,603
Average diluted common shares 83,082 83,978 83,890
Period end common shares 82,335 83,442 83,522
Common shares repurchased 1,228,293 178,872 145,143
Common stock market capitalization $2,133,300 2,235,411 2,180,759
ASSET QUALITY
Gross charge-offs $17,736 14,207 15,422
Net charge-offs 13,379 10,002 10,278
Allowance for loan losses (b) 90,261 92,780 92,808
Reserve for unfunded lending
commitments (b) 6,072 5,857 5,785
Nonperforming assets (NPAs) 60,715 51,398 53,985
Net charge-off/average loans ratio 0.79% 0.60% 0.62%
Allowance for loan losses/period-end loans 1.35% 1.39% 1.40%
Allowance for credit losses/period-
end loans (c) 1.44% 1.47% 1.49%
NPAs/loans and other real estate 0.91% 0.77% 0.82%
Allowance for loan
losses/nonperforming loans 177.96% 221.46% 208.74%
Allowance for credit
losses/nonperforming loans (c) 189.93% 235.44% 221.76%
CAPITAL & LIQUIDITY
Period-end tangible equity to assets 7.96% 8.17% 8.19%
Average equity to assets 9.33% 9.46% 9.32%
Average equity to loans 14.22% 14.66% 14.58%
Average loans to deposits 92.11% 91.73% 90.16%
AVERAGE BALANCES
Assets (b) $10,211,619 10,295,827 10,329,167
Deposits 7,273,980 7,245,562 7,321,860
Loans 6,699,997 6,646,112 6,601,204
Earning assets 9,368,139 9,465,288 9,489,431
Shareholders' equity 952,715 974,147 962,239
ENDING BALANCES
Assets (b) $10,166,577 10,290,243 10,314,268
Deposits 7,233,650 7,352,026 7,173,857
Loans 6,686,243 6,695,290 6,611,011
Goodwill 139,245 139,245 139,245
Intangible assets 3,756 3,978 4,200
Earning assets 9,275,305 9,429,183 9,492,583
Total shareholders' equity 941,090 972,348 976,016
NOTES:
(a) - Net interest income on a fully tax-equivalent ("FTE") basis restates
interest on tax-exempt securities and loans as if such interest were
subject to federal income tax at the statutory rate. Net interest income
on an FTE basis is not an accounting principle generally accepted in the
United States of America.
(b) - As of December 31, 2004, the reserve for unfunded lending
commitments has been reclassified from the allowance for loan losses to
other liabilities. Amounts presented prior to December 31, 2004, have been
reclassified to conform to the current presentation.
(c) - The allowance for credit losses is the sum of the allowance for loan
losses and the reserve for unfunded lending commitments.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited) Quarters
(Dollars in thousands)
2005 2004
EARNINGS 1st Qtr 4th Qtr
Net interest income FTE (a) 86,685 87,993
Provision for loan losses 11,614 9,358
Other income 44,939 39,402
Other expenses 75,911 80,279
FTE adjustment (a) 675 669
Net income 30,088 28,369
Diluted EPS 0.36 0.33
PERFORMANCE RATIOS
Return on average assets (ROA) 1.19% 1.12%
Return on average common equity (ROE) 12.48% 11.49%
Net interest margin FTE (a) 3.73% 3.76%
Efficiency ratio 58.33% 60.69%
Number of full-time equivalent employees 3,081 3,158
MARKET DATA
Book value/common share 11.32 11.66
Period-end common share mkt value 26.76 28.49
Market as a % of book 236% 244%
Cash dividends/common share 0.27 0.27
Common stock dividend payout ratio 75.00% 81.82%
Average basic common shares 84,097 84,286
Average diluted common shares 84,497 84,777
Period end common shares 83,612 84,191
Common shares repurchased 816,208 197,235
Common stock market capitalization 2,237,457 2,398,602
ASSET QUALITY
Gross charge-offs 16,740 17,873
Net charge-offs 11,795 12,553
Allowance for loan losses (b) 97,115 97,296
Reserve for unfunded lending commitments (b) 6,479 5,774
Nonperforming assets (NPAs) 46,703 45,891
Net charge-off/average loans ratio 0.74% 0.78%
Allowance for loan losses/period-end loans 1.49% 1.51%
Allowance for credit losses/period-
end loans (c) 1.59% 1.60%
NPAs/loans and other real estate 0.71% 0.71%
Allowance for loan
losses/nonperforming loans 235.71% 240.14%
Allowance for credit
losses/nonperforming loans (c) 251.44% 254.39%
CAPITAL & LIQUIDITY
Period-end tangible equity to assets 7.93% 8.39%
Average equity to assets 9.56% 9.70%
Average equity to loans 15.06% 15.26%
Average loans to deposits 88.27% 86.69%
AVERAGE BALANCES
Assets (b) 10,226,765 10,120,109
Deposits 7,354,689 7,421,815
Loans 6,492,044 6,434,115
Earning assets 9,421,693 9,314,744
Shareholders' equity 977,888 982,147
ENDING BALANCES
Assets (b) 10,274,154 10,122,627
Deposits 7,324,551 7,365,447
Loans 6,530,546 6,433,083
Goodwill 139,245 139,245
Intangible assets 4,424 4,647
Earning assets 9,453,738 9,343,491
Total shareholders' equity 946,731 981,257
NOTES:
(a) - Net interest income on a fully tax-equivalent ("FTE") basis restates
interest on tax-exempt securities and loans as if such interest were
subject to federal income tax at the statutory rate. Net interest income
on an FTE basis is not an accounting principle generally accepted in the
United States of America.
(b) - As of December 31, 2004, the reserve for unfunded lending
commitments has been reclassified from the allowance for loan losses to
other liabilities. Amounts presented prior to December 31, 2004, have been
reclassified to conform to the current presentation.
(c) - The allowance for credit losses is the sum of the allowance for loan
losses and the reserve for unfunded lending commitments.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited, except December 31, 2004,
which is derived from the audited December 31, December 31,
financial statements) 2005 2004
ASSETS
Cash and due from banks $225,953 169,052
Investment securities (at fair
value) and federal funds sold 2,546,496 2,862,015
Loans held for sale 42,566 48,393
Loans:
Commercial loans 3,538,399 3,290,819
Mortgage loans 628,581 639,715
Installment loans 1,524,355 1,592,781
Home equity loans 778,697 676,230
Credit card loans 145,592 145,042
Leases 70,619 88,496
Total loans 6,686,243 6,433,083
Less allowance for loan losses (90,261) (97,296)
Net loans 6,595,982 6,335,787
Premises and equipment, net 120,420 121,198
Goodwill 139,245 139,245
Intangible assets 3,756 4,647
Accrued interest receivable and
other assets 492,159 442,290
Total assets $10,166,577 10,122,627
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand-non-interest bearing $1,523,731 1,470,543
Demand-interest bearing 830,248 841,595
Savings and money market accounts 2,304,177 2,384,510
Certificates and other time deposits 2,575,494 2,668,799
Total deposits 7,233,650 7,365,447
Securities sold under agreements to
repurchase 1,426,037 1,336,471
Wholesale borrowings 401,104 300,220
Accrued taxes, expenses, and other
liabilities 164,696 139,232
Total liabilities 9,225,487 9,141,370
Commitments and contingencies
Shareholders' equity:
Preferred stock, without par value:
authorized and unissued
7,000,000 shares -- --
Preferred stock, Series A,
without par value: designated
800,000 shares; none outstanding -- --
Convertible preferred stock,
Series B, without par value:
designated 220,000 shares; none
outstanding -- --
Common stock, without par value:
authorized 300,000,000 shares;
issued 92,026,350 at December 31,
2005 and December 31, 2004 127,937 127,937
Capital surplus 108,210 110,513
Accumulated other comprehensive loss (42,850) (14,208)
Retained earnings 997,997 956,802
Treasury stock, at cost, 9,691,424 and
7,835,399 shares at December 31, 2005,
December 31, 2004, respectively (250,204) (199,787)
Total shareholders' equity 941,090 981,257
Total liabilities and shareholders' equity $10,166,577 10,122,627
The accompanying notes are an integral part of the consolidated financial
statements.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Quarterly Periods
(Unaudited)
(Dollars in thousands) December 31, September 30, June 30,
2005 2005 2005
ASSETS
Cash and due from banks $192,189 197,412 197,548
Investment securities/fed funds sold 2,619,248 2,764,724 2,833,818
Loans held for sale 48,894 54,452 54,409
Loans:
Commercial loans 3,519,807 3,441,231 3,434,946
Mortgage loans 637,877 641,532 641,865
Installment loans 1,556,212 1,594,801 1,601,775
Home equity loans 772,757 754,492 704,054
Credit card loans 142,743 140,873 137,919
Leases 70,601 73,183 80,645
Total loans 6,699,997 6,646,112 6,601,204
Less allowance for loan losses (a) 91,916 91,852 96,342
Net loans 6,608,081 6,554,260 6,504,862
Total earning assets 9,368,139 9,465,288 9,489,431
Premises and equipment, net 117,387 117,471 118,392
Accrued interest receivable and other
assets 625,820 607,508 620,138
TOTAL ASSETS $10,211,619 10,295,827 10,329,167
LIABILITIES
Deposits:
Demand-non-interest bearing $1,488,679 1,457,487 1,470,673
Demand-interest bearing 817,009 838,549 834,708
Savings and money market accounts 2,332,528 2,333,331 2,370,280
Certificates and other time deposits 2,635,764 2,616,195 2,646,199
Total deposits 7,273,980 7,245,562 7,321,860
Securities sold under agreements to
repurchase 1,443,740 1,478,857 1,385,644
Wholesale borrowings 375,167 442,035 498,088
Total funds 9,092,887 9,166,454 9,205,592
Accrued taxes, expenses and other
liabilities (a) 166,017 155,226 161,336
Total liabilities 9,258,904 9,321,680 9,366,928
SHAREHOLDERS' EQUITY
Preferred stock - - -
Common stock 127,937 127,937 127,937
Capital surplus 108,303 108,564 108,559
Accumulated other comprehensive
(loss) income (39,834) (25,682) (26,883)
Retained earnings 994,301 982,419 968,408
Treasury stock (237,992) (219,091) (215,782)
Total shareholders' equity 952,715 974,147 962,239
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $10,211,619 10,295,827 10,329,167
(a) As of December 31, 2004, the reserve for unfunded lending commitments
has been reclassified from the allowance for loan losses. Amounts
presented prior to December 31, 2004 have been reclassified to conform to
the current presentation.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Quarterly Periods
(Unaudited)
(Dollars in thousands) March 31, December 31,
2005 2004
ASSETS
Cash and due from banks 190,740 198,077
Investment securities/fed funds sold 2,876,415 2,831,253
Loans held for sale 53,234 49,376
Loans:
Commercial loans 3,346,425 3,272,545
Mortgage loans 646,528 642,569
Installment loans 1,598,953 1,612,132
Home equity loans 674,913 670,366
Credit card loans 141,440 141,953
Leases 83,785 94,550
Total loans 6,492,044 6,434,115
Less allowance for loan losses (a) 96,438 99,675
Net loans 6,395,606 6,334,440
Total earning assets 9,421,693 9,314,744
Premises and equipment, net 119,916 121,147
Accrued interest receivable and other
assets 590,854 585,816
TOTAL ASSETS 10,226,765 10,120,109
LIABILITIES
Deposits:
Demand-non-interest bearing 1,447,226 1,462,830
Demand-interest bearing 820,974 829,650
Savings and money market accounts 2,392,023 2,423,790
Certificates and other time deposits 2,694,466 2,705,545
Total deposits 7,354,689 7,421,815
Securities sold under agreements to
repurchase 1,326,242 1,262,156
Wholesale borrowings 412,149 300,550
Total funds 9,093,080 8,984,521
Accrued taxes, expenses and other
liabilities (a) 155,797 153,441
Total liabilities 9,248,877 9,137,962
SHAREHOLDERS' EQUITY
Preferred stock - -
Common stock 127,937 127,937
Capital surplus 108,478 110,217
Accumulated other comprehensive (loss) income (16,998) (12,559)
Retained earnings 960,740 953,566
Treasury stock (202,269) (197,014)
Total shareholders' equity 977,888 982,147
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY 10,226,765 10,120,109
(a) As of December 31, 2004, the reserve for unfunded lending commitments
has been reclassified from the allowance for loan losses. Amounts
presented prior to December 31, 2004 have been reclassified to conform to
the current presentation.
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Three months ended
(Dollars in thousands) December 31, 2005
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks $192,189
Investment securities and federal
funds sold:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,266,774 21,651 3.79%
Obligations of states and political
subdivisions (tax exempt) 97,395 1,633 6.65%
Other securities and federal funds sold 255,079 3,437 5.35%
Total investment securities and
federal funds sold 2,619,248 26,721 4.05%
Loans held for sale 48,894 762 6.18%
Loans 6,699,997 115,126 6.82%
Total earning assets 9,368,139 142,609 6.04%
Allowance for loan losses (91,916)
Other assets 743,207
Total assets $10,211,619
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing $1,488,679 -- --
Demand - interest bearing 817,009 1,953 0.95%
Savings and money market accounts 2,332,528 10,352 1.76%
Certificates and other time deposits 2,635,764 23,831 3.59%
Total deposits 7,273,980 36,136 1.97%
Securities sold under agreements to
repurchase 1,443,740 13,423 3.69%
Wholesale borrowings 375,167 4,898 5.18%
Total interest bearing liabilities 7,604,208 54,457 2.84%
Other liabilities 166,017
Shareholders' equity 952,715
Total liabilities and shareholders'
equity $10,211,619
Net yield on earning assets $9,368,139 88,152 3.73%
Interest rate spread 3.20%
Notes: Interest income on tax-exempt securities and loans have been
adjusted to a fully-taxable equivalent basis. Net interest income on a
fully tax-equivalent ("FTE") basis restates interest on tax-exempt
securities and loans as if such interest were subject to federal income
tax at the statutory rate. Net interest income on an FTE basis
basis is not an accounting principle generally accepted in the United
States of America. Nonaccrual loans have been included in the average
balances.
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Three months ended
(Dollars in thousands) September 30, 2005
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks 197,412
Investment securities and federal
funds sold:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,408,219 22,621 3.73%
Obligations of states and political
subdivisions (tax exempt) 99,273 1,638 6.55%
Other securities and federal funds sold 257,232 3,056 4.71%
Total investment securities and
federal funds sold 2,764,724 27,315 3.92%
Loans held for sale 54,452 660 4.81%
Loans 6,646,112 110,535 6.60%
Total earning assets 9,465,288 138,510 5.81%
Allowance for loan losses (91,852)
Other assets 724,979
Total assets 10,295,827
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing 1,457,487 -- --
Demand - interest bearing 838,549 1,732 0.82%
Savings and money market accounts 2,333,331 8,700 1.48%
Certificates and other time deposits 2,616,195 21,637 3.28%
Total deposits 7,245,562 32,069 1.76%
Securities sold under agreements to
repurchase 1,478,857 12,535 3.36%
Wholesale borrowings 442,035 5,559 4.99%
Total interest bearing liabilities 7,708,967 50,163 2.58%
Other liabilities 155,226
Shareholders' equity 974,147
Total liabilities and shareholders'
equity 10,295,827
Net yield on earning assets 9,465,288 88,347 3.70%
Interest rate spread 3.22%
Notes: Interest income on tax-exempt securities and loans have been
adjusted to a fully-taxable equivalent basis. Net interest income on a
fully tax-equivalent ("FTE") basis restates interest on tax-exempt
securities and loans as if such interest were subject to federal income
tax at the statutory rate. Net interest income on an FTE basis
basis is not an accounting principle generally accepted in the United
States of America. Nonaccrual loans have been included in the average
balances.
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Three months ended
(Dollars in thousands) June 30, 2005
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks 197,548
Investment securities and federal
funds sold:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,478,319 23,722 3.84%
Obligations of states and political
subdivisions (tax exempt) 99,756 1,673 6.73%
Other securities and federal funds sold 255,743 3,037 4.76%
Total investment securities and
federal funds sold 2,833,818 28,432 4.02%
Loans held for sale 54,409 804 5.93%
Loans 6,601,204 105,196 6.39%
Total earning assets 9,489,431 134,432 5.68%
Allowance for loan losses (96,342)
Other assets 738,530
Total assets 10,329,167
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing 1,470,673 -- --
Demand - interest bearing 834,708 1,230 0.59%
Savings and money market accounts 2,370,280 7,517 1.27%
Certificates and other time deposits 2,646,199 20,696 3.14%
Total deposits 7,321,860 29,443 1.61%
Securities sold under agreements to
repurchase 1,385,644 10,624 3.08%
Wholesale borrowings 498,088 5,933 4.78%
Total interest bearing liabilities 7,734,919 46,000 2.39%
Other liabilities 161,336
Shareholders' equity 962,239
Total liabilities and shareholders'
equity 10,329,167
Net yield on earning assets 9,489,431 88,432 3.74%
Interest rate spread 3.30%
Notes: Interest income on tax-exempt securities and loans have been
adjusted to a fully-taxable equivalent basis. Net interest income on a
fully tax-equivalent ("FTE") basis restates interest on tax-exempt
securities and loans as if such interest were subject to federal income
tax at the statutory rate. Net interest income on an FTE basis
basis is not an accounting principle generally accepted in the United
States of America. Nonaccrual loans have been included in the average
balances.
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Three months ended
(Dollars in thousands) March 31, 2005
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks 190,740
Investment securities and federal
funds sold:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,518,784 23,818 3.83%
Obligations of states and political
subdivisions (tax exempt) 101,571 1,763 7.04%
Other securities and federal funds sold 256,060 2,763 4.38%
Total investment securities and
federal funds sold 2,876,415 28,344 4.00%
Loans held for sale 53,234 627 4.78%
Loans 6,492,044 99,546 6.22%
Total earning assets 9,421,693 128,517 5.53%
Allowance for loan losses (96,438)
Other assets 710,770
Total assets 10,226,765
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing 1,447,226 -- --
Demand - interest bearing 820,974 956 0.47%
Savings and money market accounts 2,392,023 6,375 1.08%
Certificates and other time deposits 2,694,466 20,600 3.10%
Total deposits 7,354,689 27,931 1.54%
Securities sold under agreements to
repurchase 1,326,242 8,841 2.70%
Wholesale borrowings 412,149 5,059 4.98%
Total interest bearing liabilities 7,645,854 41,831 2.22%
Other liabilities 155,797
Shareholders' equity 977,888
Total liabilities and shareholders'
equity 10,226,765
Net yield on earning assets 9,421,693 86,686 3.73%
Interest rate spread 3.31%
Notes: Interest income on tax-exempt securities and loans have been
adjusted to a fully-taxable equivalent basis. Net interest income on a
fully tax-equivalent ("FTE") basis restates interest on tax-exempt
securities and loans as if such interest were subject to federal income
tax at the statutory rate. Net interest income on an FTE basis
basis is not an accounting principle generally accepted in the United
States of America. Nonaccrual loans have been included in the average
balances.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Quarters Twelve months
(Unaudited) ended ended
(In thousands except per share data) December 31, December 31,
2005 2004 2005 2004
Interest income:
Interest and fees on loans,
including held for sale $115,850 98,792 433,143 385,919
Interest and dividends on
investment securities and federal
funds sold 26,109 26,590 108,303 111,476
Total interest income 141,959 125,382 541,446 497,395
Interest expense:
Interest on deposits:
Demand-interest bearing 1,953 704 5,871 2,152
Savings and money market accounts 10,352 5,310 32,944 19,145
Certificates and other time
deposits 23,831 20,463 86,764 81,540
Interest on securities sold under
agreements to repurchase 13,423 7,182 45,423 26,259
Interest on wholesale borrowings 4,898 4,399 21,449 17,494
Total interest expense 54,457 38,058 192,451 146,590
Net interest income 87,502 87,324 348,995 350,805
Provision for loan losses 10,860 9,358 38,420 73,923
Net interest income after
provision for loan losses 76,642 77,966 310,575 276,882
Other income:
Trust department income 5,430 5,315 22,134 21,595
Service charges on deposits 17,884 15,135 69,065 62,162
Credit card fees 10,601 9,937 40,972 37,728
ATM and other service fees 3,157 2,892 12,867 11,879
Bank owned life insurance income 3,092 3,113 12,264 12,314
Investment services and insurance 2,696 2,560 10,608 12,850
Manufactured housing income 3 10 148 165
Investment securities gains, net 39 (4,508) 1,926 (2,997)
Loan sales and servicing income 1,668 2,033 6,397 6,075
Other operating income 3,016 2,915 14,085 12,514
Total other income 47,586 39,402 190,466 174,285
Other expenses:
Salaries, wages, pension and
employee benefits 40,790 40,756 163,683 160,052
Net occupancy expense 5,746 5,468 23,730 22,557
Equipment expense 4,152 3,347 13,301 13,345
Stationery, supplies and postage 2,546 2,821 10,050 10,716
Bankcard, loan processing and other
costs 7,042 6,355 24,012 24,307
Professional services 3,389 3,785 12,014 13,688
Amortization of intangibles 222 222 889 889
Other operating expense 15,387 17,525 65,829 66,375
Total other expenses 79,274 80,279 313,508 311,929
Income before income tax
expense 44,954 37,089 187,533 139,238
Federal income taxes 13,788 8,720 53,540 36,024
Net income $31,166 28,369 133,993 103,214
Other comprehensive income (loss),
net of taxes
Unrealized securities' holding
gains (losses), net of taxes (5,736) (3,751) (24,041) (6,679)
Minimum pension liability
adjustment, net of taxes (3,166) (2) (3,349) (2)
Less: reclassification adjustment
for securities' gains (losses)
realized in net income,
net of taxes 25 845 1,252 (1,948)
Total other comprehensive income
(loss), net of taxes (8,927) (4,598) (28,642) (4,733)
Comprehensive income $22,239 23,771 105,351 98,481
Net income applicable to common
shares $31,166 28,369 133,993 103,214
Net income used in diluted EPS
calculation $31,169 28,377 134,011 103,244
Weighted average number of common
shares outstanding - basic 82,786 84,286 83,490 84,601
Weighted average number of common
shares outstanding - diluted 83,082 84,777 83,844 84,996
Basic earnings per share $0.38 0.34 1.60 1.22
Diluted earnings per share $0.38 0.33 1.60 1.21
Dividend per share $0.28 0.27 1.10 1.06
Note: Certain prior year balances have been reclassified to conform to
the current year presentation.
The accompanying notes are an integral part of the consolidated financial
statements.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME---LINKED
QUARTERS
(Unaudited) Quarterly Results
(Dollars in thousands,
except share data) 2005 2005 2005 2005 2004
4th Q 3rd Q 2nd Q 1st Q 4th Q
Interest and fees on loans,
including held for sale $115,850 111,169 105,975 100,149 98,792
Interest and dividends -
securities and federal
funds sold 26,109 26,700 27,802 27,692 26,590
Total interest income 141,959 137,869 133,777 127,841 125,382
Interest on deposits:
Demand-interest bearing 1,953 1,732 1,230 956 704
Savings and money market
accounts 10,352 8,700 7,517 6,375 5,310
Certificates and other
time deposits 23,831 21,637 20,696 20,600 20,463
Securities sold under
agreements to repurchase 13,423 12,535 10,624 8,841 7,182
Wholesale borrowings 4,898 5,559 5,933 5,059 4,399
Total interest expense 54,457 50,163 46,000 41,831 38,058
Net interest income 87,502 87,706 87,777 86,010 87,324
Provision for loan losses 10,860 9,974 5,972 11,614 9,358
Net interest income after
provision for loan
losses 76,642 77,732 81,805 74,396 77,966
Other income:
Trust department income 5,430 5,515 5,684 5,505 5,315
Service charges on deposits 17,884 18,561 17,800 14,820 15,135
Credit card fees 10,601 10,437 10,523 9,411 9,937
ATM and other service fees 3,157 3,453 3,298 2,959 2,892
Bank owned life insurance
income 3,092 3,074 3,024 3,074 3,113
Investment services and
insurance 2,696 2,226 2,828 2,858 2,560
Manufactured housing income 3 3 40 102 10
Investment securities
gains (losses), net 39 40 (25) 1,872 (4,508)
Loan sales and servicing
income 1,668 2,076 1,520 1,133 2,033
Other operating income 3,016 2,461 5,403 3,205 2,915
Total other income 47,586 47,846 50,095 44,939 39,402
Other expenses:
Salaries, wages, pension
and employee benefits 40,790 42,149 41,351 39,393 40,756
Net occupancy expense 5,746 5,567 5,881 6,536 5,468
Equipment expense 4,152 2,962 3,002 3,185 3,347
Stationery, supplies and
postage 2,546 2,559 2,484 2,461 2,821
Bankcard, loan processing
and other costs 7,042 5,802 5,444 5,724 6,355
Professional services 3,389 2,632 3,843 2,150 3,785
Amortization of intangibles 222 222 222 223 222
Other operating expense 15,387 17,033 17,170 16,239 17,525
Total other expenses 79,274 78,926 79,397 75,911 80,279
Income before income tax
expense 44,954 46,652 52,503 43,424 37,089
Federal income taxes 13,788 10,058 16,358 13,336 8,720
Net income $31,166 36,594 36,145 30,088 28,369
Other comprehensive income
(loss), net of taxes (8,927) (14,272) 18,540 (23,983) (823)
Comprehensive income $22,239 22,322 54,685 6,105 27,546
Net income applicable to
common shares 31,166 36,594 36,145 30,088 28,369
Adjusted net income used in
diluted EPS calculation 31,169 36,601 36,152 30,095 28,377
Weighted-average common
shares - basic 82,786 83,489 83,603 84,097 84,286
Weighted-average common
shares - diluted 83,082 83,978 83,890 84,497 84,777
Basic net income per share $0.38 0.44 0.43 0.36 0.34
Diluted net income per share $0.38 0.43 0.43 0.36 0.33
Note: Certain prior year balances have been reclassified to conform to
the current year presentation.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited, except December 31, 2004 annual period which
is derived from the audited financial statements)
(Dollars in thousands, except ratios)
Quarterly Periods
Dec 31 Sep 30 June 30 Mar 31
Allowance for Credit Losses (a) 2005 2005 2005 2005
Allowance for loan losses,
beginning of period (b) $92,780 92,808 97,115 97,296
Allowance related to loans sold - - - -
Provision for loan losses 10,860 9,974 5,971 11,614
Charge-offs 17,736 14,207 15,422 16,740
Recoveries 4,357 4,205 5,144 4,945
Net charge-offs 13,379 10,002 10,278 11,795
Allowance for loan losses, end
of period $90,261 92,780 92,808 97,115
Reserve for unfunded lending
commitments, beginning of
period (b) $5,857 5,785 6,479 5,774
Provision for credit losses 215 72 (694) 705
Reserve for unfunded lending
commitments, end of period $6,072 5,857 5,785 6,479
Allowance for Credit Losses $96,333 98,637 98,593 103,594
Ratios (a) (b)
Provision for loan losses as a
% of average loans 0.64% 0.60% 0.36% 0.73%
Provision for credit losses as
a % of average loans 0.01% 0.00% -0.04% 0.04%
Net charge-offs as a % of
average loans 0.79% 0.60% 0.62% 0.74%
Allowance for loan losses as a
% of period-end loans 1.35% 1.39% 1.40% 1.49%
Allowance for credit losses as
a % of period-end loans 1.44% 1.47% 1.49% 1.59%
Allowance for loan losses as a
% of nonperforming loans 177.96% 221.46% 208.74% 235.71%
Allowance for credit losses as
a % of nonperforming loans 189.93% 235.44% 221.76% 251.44%
Asset Quality
Impaired loans:
Nonaccrual $42,634 34,144 38,124 34,207
Other nonperforming loans:
Nonaccrual 8,086 7,751 6,336 6,994
Total nonperforming loans 50,720 41,895 44,460 41,201
Other real estate ("ORE") 9,995 9,503 9,525 5,502
Total nonperforming assets
("NPAs") $60,715 51,398 53,985 46,703
NPAs as % of period-end loans
+ ORE 0.91% 0.77% 0.82% 0.71%
Past due 90 days or more &
accruing interest $17,931 21,451 17,969 22,899
(a) The allowance for credit losses is the sum of the allowance for loan
losses and the reserve for unfunded lending commitments.
(b) As of December 31, 2004, the reserve for unfunded lending commitments
has been reclassified from the allowance for loan losses. Amounts
presented prior to December 31, 2004 have been reclassified to conform
to the current presentation.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited, except December 31, 2004 annual period which
is derived from the audited financial statements)
(Dollars in thousands, except ratios)
Quarterly Annual
Periods Period
Dec 31 Dec 31
Allowance for Credit Losses (a) 2004 2004
Allowance for loan losses, beginning
of period (b) 100,491 91,459
Allowance related to loans sold - (12,671)
Provision for loan losses 9,358 73,923
Charge-offs 17,873 78,999
Recoveries 5,320 23,584
Net charge-offs 12,553 55,415
Allowance for loan losses, end of period 97,296 97,296
Reserve for unfunded lending commitments,
beginning of period (b) 5,619 6,094
Provision for credit losses 155 (320)
Reserve for unfunded lending commitments,
end of period 5,774 5,774
Allowance for Credit Losses 103,070 103,070
Ratios (a) (b)
Provision for loan losses as a % of
average loans 0.58% 1.13%
Provision for credit losses as a % of
average loans 0.01% 0.00%
Net charge-offs as a % of average loans 0.78% 0.85%
Allowance for loan losses as a % of
period-end loans 1.51% 1.51%
Allowance for credit losses as a % of
period-end loans 1.60% 1.60%
Allowance for loan losses as a % of
nonperforming loans 240.14% 240.14%
Allowance for credit losses as a % of
nonperforming loans 254.39% 254.39%
Asset Quality
Impaired loans:
Nonaccrual 33,831 33,831
Other nonperforming loans:
Nonaccrual 6,685 6,685
Total nonperforming loans 40,516 40,516
Other real estate ("ORE") 5,375 5,375
Total nonperforming assets ("NPAs") 45,891 45,891
NPAs as % of period-end loans + ORE 0.71% 0.71%
Past due 90 days or more & accruing interest 20,703 20,703
(a) The allowance for credit losses is the sum of the allowance for loan
losses and the reserve for unfunded lending commitments.
(b) As of December 31, 2004, the reserve for unfunded lending commitments
has been reclassified from the allowance for loan losses. Amounts
presented prior to December 31, 2004 have been reclassified to conform
to the current presentation.
Average loans 6,434,115 6,525,147
Period-end loans 6,433,083 6,433,083
FIRSTMERIT CORPORATION
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL
(Unaudited)
(Dollars in thousands)
2005 2005 2005 2005 2004
QUARTERLY OTHER INCOME DETAIL 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
Trust department income $5,430 5,515 5,684 5,505 5,315
Service charges on deposits 17,884 18,561 17,800 14,820 15,135
Credit card fees 10,601 10,437 10,523 9,411 9,937
ATM and other service fees 3,157 3,453 3,298 2,959 2,892
Bank owned life insurance income 3,092 3,074 3,024 3,074 3,113
Investment services and insurance 2,696 2,226 2,828 2,858 2,560
Manufactured housing income 3 3 40 102 10
Investment securities gains
(losses), net 39 40 (25) 1,872 (4,508)
Loan sales and servicing income 1,668 2,076 1,520 1,133 2,033
Other operating income 3,016 2,461 5,403 3,205 2,915
Total Other Income $47,586 47,846 50,095 44,939 39,402
2005 2005 2005 2005 2004
QUARTERLY OTHER EXPENSES DETAIL 4th Qtr 3 Qtr 2nd Qtr 1st Qtr 4th Qtr
Salaries, wages, pension and
employee benefits $40,790 42,149 41,351 39,393 40,756
Net occupancy expense 5,746 5,567 5,881 6,536 5,468
Equipment expense 4,152 2,962 3,002 3,185 3,347
Taxes, other than federal income
taxes 1,578 849 880 735 908
Stationery, supplies and postage 2,546 2,559 2,484 2,461 2,821
Bankcard, loan processing and
other costs 7,042 5,802 5,444 5,724 6,355
Advertising 1,415 1,863 3,182 1,244 2,984
Professional services 3,389 2,632 3,843 2,150 3,785
Telephone 1,136 1,206 1,095 1,119 1,204
Amortization of intangibles 222 222 222 223 222
Other operating expense 11,258 13,115 12,013 13,141 12,429
Total Other Expenses $79,274 78,926 79,397 75,911 80,279
Note: Certain prior year balances have been reclassified to conform to
the current year presentation.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES - Net Charge-off Detail
(Unaudited)
(Dollars in thousands) Quarters ended Year ended
December 31, December 31,
2005 2004 2005 2004
Allowance for loan
losses - beginning of
period (a) $92,780 100,491 97,296 91,459
Loans charged off:
Commercial 2,890 4,245 14,349 25,073
Mortgage 639 576 1,721 1,174
Installment 9,063 9,196 29,307 35,958
Home equity 1,099 763 4,340 3,085
Credit cards 3,587 2,549 11,320 11,254
Manufactured housing - - - 443
Leases 458 544 3,068 2,012
Total 17,736 17,873 64,105 78,999
Recoveries:
Commercial 1,256 1,227 4,166 6,068
Mortgage 13 - 190 42
Installment 1,878 2,757 9,495 11,545
Home equity 374 357 1,302 1,430
Credit cards 489 655 2,348 2,920
Manufactured housing 203 192 710 1,088
Leases 144 122 439 491
Total 4,357 5,320 18,650 23,584
Net charge-offs 13,379 12,553 45,455 55,415
Allowance related to
loans sold - - - (12,671)
Provision for loan
losses 10,860 9,358 38,420 73,923
Allowance for loan
losses - end of period $90,261 97,296 90,261 97,296
Average loans
outstanding $6,699,997 6,434,115 6,610,509 6,493,472
Ratio to average loans:
(Annualized) net
charge-offs 0.79% 0.78% 0.69% 0.85%
Provision for loan
losses 0.64% 0.58% 0.58% 1.14%
Loans outstanding -
period-end $6,686,243 6,433,083 6,686,243 6,433,083
Allowance for loan
losses:
As a percent of
period-end loans
outstanding 1.35% 1.51% 1.35% 1.51%
As a multiple of
(annualized) net
charge-offs 1.70 1.95 1.99 1.76
As a multiple of
(annualized) net
charge-offs and
allowance related
to loans sold 1.70 1.95 1.99 1.43
(a) As of December 31, 2004, the reserve for unfunded lending commitments
has been reclassified from the allowance for loan losses to other
liabilities. Amounts presented prior to December 31, 2004 have been
reclassified to conform to the current presentation.
SOURCE FirstMerit Corporation
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http://www.firstmerit.com
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AP Archive: http://photoarchive.ap.org
PRN Photo Desk, photodesk@prnewswire.com
CONTACT:
Analysts, Tom O'Malley, +1-330-384-7109, or
Media, Jacque Sir Louis, +1-330-849-8877, both of FirstMerit
Corporation
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