AKRON, Ohio, Jan. 19 /PRNewswire-FirstCall/ -- FirstMerit Corporation
(Nasdaq: FMER) today announced that its Board of Directors authorized the
repurchase of up to 3,000,000 shares of its currently outstanding common
stock. The total authorized share repurchase equates to approximately 3.6% of
the Company's outstanding shares. The Company had fully utilized its prior
repurchase authorization of 3,000,000 shares authorized in July, 2004.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001220/FIRSTMERITLOGO)
The Board of Directors has also authorized the Company to enter into an
accelerated share repurchase program with Goldman, Sachs & Co. to buy back up
to 2,500,000 shares of the 3,000,000 share authorization. The Company intends
to repurchase 2,500,000 shares of its currently outstanding stock during the
first quarter of 2006 and place those shares into treasury to be used for
general corporate purposes.
Pursuant to the accelerated repurchase program, the shares are expected to
be purchased from Goldman Sachs based on the current market price at the time
of the contract signing. The accelerated share repurchase program allows the
Company to account for the purchase of the shares immediately, while Goldman
Sachs may purchase shares in the market over a purchase period to be agreed
upon, but which is expected to conclude in the first or second quarter of
2006. The repurchased shares will be subject to a future contingent purchase
price adjustment expected to be settled at the end of the purchase period in
the first or second quarter of 2006, based on the volume weighted average
share price during that actual repurchase period.
About FirstMerit Corporation
FirstMerit Corporation (Nasdaq: FMER) is a diversified financial services
company, 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 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.
SOURCE FirstMerit Corporation
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Related links:
http://www.firstmerit.com
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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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