Company to Accelerate Disposition of Problem Assets
Intends to Sell $80.9 Million of Commercial Assets During First Quarter of
2007
AKRON, Ohio, Jan. 23 /PRNewswire-FirstCall/ -- FirstMerit Corporation
(Nasdaq: FMER) today announced fourth quarter 2006 net income of $6.1
million, or $0.07 per diluted share. This compares with $27.7 million, or
$0.34 per diluted share, for the prior-year quarter. For the full year
2006, the Company reported net income of $94.9 million, or $1.18 per
diluted share, compared with $130.5 million, or $1.56 per share in 2005.
(Logo: http://www.newscom.com/cgi-bin/prnh/20001220/FIRSTMERITLOGO )
Both fourth quarter and full year 2006 results were affected by the
Company's decision in December 2006 to sell $80.9 million of commercial
assets in a transaction to be completed during the first quarter of 2007.
FirstMerit intends to sell $73.7 million of commercial loans and $7.2
million of other real estate during the first quarter of 2007.
Approximately two-thirds of the assets to be sold are loans originated
before June 2003. These assets have been reclassified as "held-for-sale" on
the Company's balance sheet at December 31, 2006. The allowance associated
with the loans held for sale is $23.1 million and an additional reserve of
$2.2 million for other real estate. Of the $64.2 million of nonperforming
assets (0.93% of period-end loans and other real estate) at December 31,
2006, $31.0 million are held-for-sale. These held-for-sale nonperforming
assets are expected to be sold before March 31, 2007.
Returns on average common equity ("ROE") and average assets ("ROA") for
the fourth quarter 2006 were 2.66% and 0.24%, respectively, compared with
11.52% and 1.07% for the prior-year quarter.
"One of my top priorities since joining FirstMerit has been to improve
credit quality," said Paul G. Greig, Chairman and Chief Executive Officer
of FirstMerit. "We recently completed an internal review of our entire
commercial loan portfolio, going above and beyond the type of periodic
review normally performed. This analysis was augmented by third party
reviews of our larger commercial lending relationships and a number of
business banking credits, as well as an evaluation of our lending and
credit management processes. These reviews validated many of the
improvements that had already been made through a series of credit
enhancements implemented beginning in 2003. We were pleased to have
confirmed that our portfolio of loans originated since that time is well
seasoned and of sound quality. However, this recent assessment also
identified areas to further strengthen portfolio management practices and
procedures and we are implementing those changes. We believe the actions
announced today, once complete, will significantly improve our credit
quality and overall asset quality metric comparisons with our peers. A
significantly improved credit profile will allow us to focus more closely
on executing our business model. We look forward to delivering to our
shareholders a higher quality and enhanced stream of earnings and realizing
the full earnings potential of our franchise."
Net interest margin was 3.58% for the fourth quarter of 2006 compared
with 3.68% for the third quarter of 2006 and 3.73% for the fourth quarter
of 2005. The decrease in net interest margin compared with the third
quarter of 2006 resulted from an increase in deposit costs attributed to
shifts in the deposit portfolio from lower-cost transaction products to
time deposits. The decrease in net interest margin compared with the fourth
quarter of 2005 reflected a similar shift in consumer preference for
higher-yielding deposit products as well as increased pricing pressure from
a rising interest rate environment. For the full year 2006, net interest
margin declined to 3.71% compared with 3.73% for 2005, as the Company's
flexibly structured balance sheet provided opportunity to mitigate rising
interest rates by shifting a portion of the investment portfolio into
higher-yielding loans and paying off higher-cost borrowings.
Net interest income on a fully tax-equivalent ("FTE") basis was $84.5
million in the fourth quarter 2006 compared with $85.9 million in the third
quarter of 2006 and $88.2 million in the fourth quarter of 2005. The
decrease in FTE net interest income compared with the third quarter 2006
resulted from net interest margin pressure, partially offset by an increase
in average earning assets. The increase in earning assets was driven by
loan growth in the commercial portfolio and the Company's decision to
increase the size of the investment portfolio given the higher interest
rate environment. The decrease in FTE net interest income compared with the
fourth quarter of 2005 resulted from lower net interest margin. FTE net
interest income for the full year 2006 was $343.3 million, down from the
$351.6 million in 2005. The Company executed a balance sheet restructuring
initiative preventing additional margin pressure during the year. Average
earning assets decreased $173.4 million during 2006, resulting from a
$355.9 million reduction in the average investment portfolio. The majority
of run-off in the securities portfolio was used to fund loan growth;
average loans increased $187.8 million. The Company also used proceeds from
maturing investments to pay down higher-cost borrowings.
Noninterest income net of securities transactions for the fourth
quarter of 2006 was $48.3 million, a decrease of $1.0 million or 2.0% from
the third quarter of 2006 and an increase of $0.8 million or 1.7% from the
fourth quarter of 2005. For the full year 2006, noninterest income net of
securities transactions totaled $195.1 million, an increase of $6.6 million
or 3.5% from the $188.5 million in the same period of 2005. The increase
from the prior year was primarily the result of higher service charges and
credit card fees. Other income, net of securities gains, as a percentage of
net revenue for the fourth quarter of 2006 was 36.39% compared with 36.50%
for third quarter of 2006 and 35.04% for the fourth quarter of 2005. For
the full year 2006, other income, net of securities gains, as a percentage
of net revenue was 36.24% compared with 34.90% for 2005. Net revenue is
defined as net interest income, on a FTE basis, plus other income, less
gains from securities sales.
Noninterest expense for the fourth quarter of 2006 was $84.0 million,
an increase of $7.0 million or 9.1% from the third quarter of 2006 and an
increase of $4.7 million or 5.9% from the fourth quarter of 2005. For the
full year 2006, noninterest expenses totaled $328.1 million, an increase of
$14.6 million or 4.7% from $313.5 million for the same period of 2005. This
increase is the result of higher salaries, wages, pension and employee
benefits as well as higher professional services.
Net charge-offs totaled $18.6 million or 1.06% of average portfolio
loans in the fourth quarter of 2006 compared with $11.6 million or 0.67% of
average portfolio loans in the third quarter 2006 and $18.4 million or
1.09% of average portfolio loans in the fourth quarter of 2005.
Additionally the allowance for loan losses was reduced by $23.1 million or
1.32% of average portfolio loans; the amount related to loans classified as
held for sale.
Nonperforming assets totaled $64.2 million at December 31, a decrease
of $8.3 million or 11.4% compared with September 30, 2006 and a decrease of
$8.1 million or 11.2% compared with December 31, 2005. Nonperforming assets
at December 31, 2006 and September 30, 2006 include loans held for sale of
$26.1 million and $7.1 million, respectively. Nonperforming assets at
December 31, 2006 represented 0.93% of period-end loans plus other real
estate compared with 1.05% at September 30, 2006 and 1.08% at December 31,
2005.
The provision for loan losses increased to $44.2 million in the fourth
quarter of 2006 compared with $12.6 million in the third quarter of 2006
and $16.3 million in the fourth quarter of 2005. For the full year of 2006,
the provision for loan losses was $76.1 million, compared with $43.8
million for 2005. The increases are primarily related to the Company's
intention to sell $73.7 million of commercial loans during the first
quarter of 2007, as previously discussed.
The allowance for loan losses totaled $91.3 million at December 31,
2006, an increase of $2.6 million and $0.7 million from September 30, 2006
and December 31, 2005, respectively. At December 31, 2006, the allowance
for loan losses was 1.33% of period-end loans compared with 1.28% at
September 30, 2006 and 1.36% at December 31, 2005. 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 1.42% at December 31, 2006 compared with 1.37% at
September 30, 2006 and 1.45% at December 31, 2005. The allowance for credit
losses to nonperforming loans increased to 179.60% at December 31, 2006
compared with 153.94% on September 30, 2006 and 155.36% on December 31,
2005.
FirstMerit's total assets at December 31, 2006 were $10.3 billion, an
increase of $34.6 million or 0.34% compared with September 30, 2006 and an
increase of $98.2 million or 0.97% compared with December 31, 2005. The
increase from September 30, 2006 was principally due to an increase in
commercial loans and in the investment securities portfolio. The increase
over December 31, 2005 was due to growth in portfolio loans, primarily in
the commercial portfolio of $174.6 million, or 4.96%. The majority of the
loan growth over that time period was funded by cash flow from the
Company's maturing investment securities portfolio as part of a strategy to
shift the mix of earning assets into higher yield categories.
Total deposits were $7.5 billion at December 31, 2006, an increase of
$109.3 million or 1.48% from September 30, 2006 an increase of $265.3
million or 3.67% from December 31, 2005. Core deposits, which exclude all
time deposits, totaled $4.5 billion at December 31, 2006, an increase of
$102.4 million or 2.32% from September 30, 2006 and a decrease of $135.8
million or 2.92% from December 31, 2005. Compared with September 30, 2006,
the increase reflects new pricing initiatives aimed at capturing new
transaction account balances. Compared with December 31, 2005, the decrease
reflects a shift in customer preference for time deposit accounts with
higher yields.
Shareholders' equity was $846.1 million at December 31, 2006 and the
Company's capital position remains strong as tangible equity to assets was
6.96%. The adoption of the new accounting pronouncement for "Employers'
Accounting for Defined Benefit Pension and Other Postretirement Plans"
reduced other comprehensive income, a component of shareholders' equity, by
$46.4 million. The common dividend per share paid in the fourth quarter
2006 was $0.29. For the full year 2006, the common dividend per share paid
was $1.14 compared with $1.10 for the same period of 2005, an increase per
share of $0.04, or 3.64%.
Executive Changes
Today FirstMerit also announced the following executive changes.
Julie Anne Robbins has been appointed executive vice president of
retail, effective January 22, 2007. Prior to joining FirstMerit, Robbins
was senior vice president, retail strategy and development at Washington
Mutual in Seattle, Washington. Prior to joining Washington Mutual, she was
senior vice president, chief financial officer of retail at Charter One
Bank in Cleveland, Ohio. Ms. Robbins' experience includes: sales, customer
service, business strategy development, marketing, product development and
compliance. She has a BS, Business (Finance and Economics) from Indiana
University's Kelley School of Business. "Julie brings a solid banking and
financial background to FirstMerit. We look forward to having her on our
team and leading the overall performance and success of FirstMerit's retail
line of business," said Mr. Greig.
Ms. Robbins replaces Robert P. Brecht, senior executive vice president
and retail manager, who is retiring February 1, 2007 after 21 years of
service with FirstMerit. Mr. Brecht joined FirstMerit in 1986 as manager,
Commercial Loans and eventually assumed responsibility for all commercial
and retail regional banking as senior executive vice president. In June of
2006, Brecht was reassigned to head FirstMerit's retail line of business,
which included retail marketing, pricing and product development along with
branch operations and sales.
Fourth Quarter 2006 Conference Call
FirstMerit will host an earnings conference call on January 23, 2007,
at 2:00 p.m. Eastern time to provide an overview of fourth quarter results
and highlights. To participate in the conference call, please dial (877)
493-9121 ten minutes before start time and provide the reservation number:
8309116. A replay of the conference call will be available at approximately
4:30 p.m., on January 23, 2007 through February 6, 2007, by dialing (877)
519-4471, and entering the PIN: 8309116.
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 (http://www.firstmerit.com).
FirstMerit Corporation is a diversified financial services company
headquartered in Akron, Ohio, with assets of $10.3 billion as of December
31, 2006 and 161 banking offices and 176 ATMs 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., 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
(330) 384-7109
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited) Quarters
(Dollars in thousands)
2006 2006 2006
EARNINGS 4th Qtr 3rd Qtr 2nd Qtr
Net interest income FTE (a) $ 84,502 85,850 86,377
Provision for loan losses 44,235 12,612 13,159
Other income 48,332 49,341 52,078
Other expenses 83,987 76,983 85,218
FTE adjustment (a) 919 763 647
Net income 6,117 31,204 27,661
Diluted EPS 0.07 0.39 0.35
PERFORMANCE RATIOS
Return on average assets (ROA) 0.24% 1.22% 1.10%
Return on average common equity (ROE) 2.66% 13.93% 12.75%
Net interest margin FTE (a) 3.58% 3.68% 3.78%
Efficiency ratio 63.06% 56.78% 61.39%
Number of full-time equivalent
employees 2,755 2,769 2,986
MARKET DATA
Book value/common share $ 10.56 11.28 10.88
Period-end common share mkt value 24.14 23.17 20.94
Market as a % of book 229% 205% 193%
Cash dividends/common share $ 0.29 0.29 0.28
Common stock dividend payout ratio 414.29% 74.36% 80.00%
Average basic common shares 80,091 80,066 79,983
Average diluted common shares 80,316 80,262 80,203
Period end common shares 80,101 80,072 80,058
Common shares repurchased 15,876 0 1,329
Common stock market capitalization $ 1,933,638 1,855,268 1,676,415
ASSET QUALITY
Gross charge-offs $ 22,323 15,453 18,038
Net charge-offs 18,559 11,584 13,021
Allowance for loan losses 91,342 88,755 87,727
Reserve for unfunded lending
commitments 6,294 6,307 5,716
Nonperforming assets (NPAs) 64,177 72,464 58,786
Net charge-offs/average loans ratio 1.06% 0.67% 0.78%
Net charge-offs and allowance related
to loans held for sale/average loans
ratio 1.40% 0.67% 0.78%
Allowance for loan losses/period-end
loans 1.33% 1.28% 1.29%
Allowance for credit losses/period-
end loans 1.42% 1.37% 1.37%
NPAs/loans and other real estate 0.93% 1.05% 0.86%
Allowance for loan
losses/nonperforming loans 168.03% 143.73% 174.80%
Allowance for credit
losses/nonperforming loans 179.60% 153.94% 186.19%
CAPITAL & LIQUIDITY
Period-end tangible equity to assets 6.96% 7.55% 7.20%
Average equity to assets 8.91% 8.77% 8.66%
Average equity to loans 13.17% 12.99% 12.93%
Average loans to deposits 92.97% 93.05% 90.63%
AVERAGE BALANCES
Assets $ 10,227,154 10,138,856 10,051,623
Deposits 7,440,331 7,355,877 7,426,029
Loans 6,917,572 6,844,593 6,730,531
Earning assets 9,374,223 9,249,769 9,174,008
Shareholders' equity 911,348 888,841 870,234
ENDING BALANCES
Assets $ 10,252,572 10,217,968 10,254,773
Deposits 7,498,921 7,389,633 7,402,239
Loans 6,878,873 6,917,347 6,804,769
Goodwill 139,245 139,245 139,245
Intangible assets 2,865 3,088 3,311
Earning assets 9,382,033 9,344,841 9,315,062
Total shareholders' equity 846,111 903,383 870,698
FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited) Quarters
(Dollars in thousands)
2006 2005
EARNINGS 1st Qtr 4th Qtr
Net interest income FTE (a) $ 86,563 88,152
Provision for loan losses 6,106 16,260
Other income 45,397 47,586
Other expenses 81,899 79,274
FTE adjustment (a) 590 650
Net income 29,964 27,656
Diluted EPS 0.37 0.34
PERFORMANCE RATIOS
Return on average assets (ROA) 1.20% 1.07%
Return on average common equity (ROE) 13.67% 11.52%
Net interest margin FTE (a) 3.80% 3.73%
Efficiency ratio 61.90% 58.26%
Number of full-time equivalent
employees 3,104 3,057
MARKET DATA
Book value/common share $ 10.91 11.39
Period-end common share mkt value 24.66 25.91
Market as a % of book 226% 228%
Cash dividends/common share $ 0.28 0.28
Common stock dividend payout ratio 75.68% 82.35%
Average basic common shares 80,374 82,786
Average diluted common shares 80,648 83,082
Period end common shares 79,766 82,335
Common shares repurchased 2,618,588 1,228,293
Common stock market capitalization $ 1,967,030 2,133,300
ASSET QUALITY
Gross charge-offs $ 14,914 22,736
Net charge-offs 9,178 18,379
Allowance for loan losses 87,589 90,661
Reserve for unfunded lending
commitments 5,853 6,072
Nonperforming assets (NPAs) 72,941 72,257
Net charge-offs/average loans ratio 0.56% 1.09%
Net charge-offs and allowance related
to loans held for sale/average loans
ratio 0.56% 1.09%
Allowance for loan losses/period-end
loans 1.31% 1.36%
Allowance for credit losses/period-
end loans 1.40% 1.45%
NPAs/loans and other real estate 1.09% 1.08%
Allowance for loan
losses/nonperforming loans 136.22% 145.61%
Allowance for credit
losses/nonperforming loans 145.32% 155.36%
CAPITAL & LIQUIDITY
Period-end tangible equity to assets 7.31% 7.94%
Average equity to assets 8.79% 9.33%
Average equity to loans 13.27% 14.22%
Average loans to deposits 91.58% 92.11%
AVERAGE BALANCES
Assets $ 10,111,553 10,211,619
Deposits 7,313,509 7,273,980
Loans 6,697,732 6,699,997
Earning assets 9,245,882 9,368,139
Shareholders' equity 888,818 952,715
ENDING BALANCES
Assets $ 10,100,717 10,154,359
Deposits 7,510,562 7,233,650
Loans 6,672,102 6,667,327
Goodwill 139,245 139,245
Intangible assets 3,533 3,756
Earning assets 9,193,741 9,256,389
Total shareholders' equity 870,552 937,580
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.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited, except December 31, 2005,
which is derived from the December 31, December 31,
audited financial statements) 2006 2005
ASSETS
Cash and due from banks $ 200,204 225,953
Investment securities (at fair
value) 2,407,888 2,546,496
Loans held for sale 95,272 42,566
Loans:
Commercial loans 3,694,121 3,519,483
Mortgage loans 608,008 628,581
Installment loans 1,619,747 1,524,355
Home equity loans 731,473 778,697
Credit card loans 147,553 145,592
Leases 77,971 70,619
Total loans 6,878,873 6,667,327
Less allowance for loan losses (91,342) (90,661)
Net loans 6,787,531 6,576,666
Premises and equipment, net 122,954 120,420
Goodwill 139,245 139,245
Intangible assets 2,865 3,756
Accrued interest receivable and
other assets 496,613 499,257
Total assets $ 10,252,572 10,154,359
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing $ 1,455,097 1,523,731
Demand - interest bearing 799,571 830,248
Savings and money market accounts 2,267,686 2,304,177
Certificates and other time
deposits 2,976,567 2,575,494
Total deposits 7,498,921 7,233,650
Securities sold under agreements to
repurchase 1,261,821 1,426,037
Wholesale borrowings 464,227 401,104
Accrued taxes, expenses, and other
liabilities 181,492 155,988
Total liabilities 9,406,461 9,216,779
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, 2006 and December 31, 2005 127,937 127,937
Capital surplus 106,916 108,210
Accumulated other comprehensive
loss (79,508) (42,850)
Retained earnings 998,079 994,487
Treasury stock, at cost,
11,925,803 and 9,691,424
shares at December 31, 2006
and December 31, 2005,
respectively (307,313) (250,204)
Total shareholders' equity 846,111 937,580
Total liabilities and shareholders'
equity $ 10,252,572 10,154,359
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,
2006 2006 2006
ASSETS
Cash and due from banks $ 175,735 185,628 188,915
Investment securities/fed funds sold 2,410,879 2,360,494 2,392,208
Loans held for sale 45,772 44,682 51,269
Loans:
Commercial loans 3,730,110 3,674,988 3,603,083
Mortgage loans 614,204 619,542 626,476
Installment loans 1,625,962 1,592,917 1,526,094
Home equity loans 738,630 755,044 772,196
Credit card loans 144,351 139,117 137,545
Leases 64,315 62,985 65,137
Total loans 6,917,572 6,844,593 6,730,531
Less allowance for loan losses (a) 88,175 87,127 86,583
Net loans 6,829,397 6,757,466 6,643,948
Total earning assets 9,374,223 9,249,769 9,174,008
Premises and equipment, net 121,956 120,088 119,666
Accrued interest receivable and
other assets 643,415 670,498 655,617
TOTAL ASSETS $10,227,154 10,138,856 10,051,623
LIABILITIES
Deposits:
Demand - non-interest bearing $ 1,413,682 1,407,653 1,455,229
Demand - interest bearing 767,430 794,886 865,563
Savings and money market accounts 2,267,268 2,246,386 2,280,657
Certificates and other time
deposits 2,991,951 2,906,952 2,824,580
Total deposits 7,440,331 7,355,877 7,426,029
Securities sold under agreements to
repurchase 1,269,873 1,357,746 1,212,470
Wholesale borrowings 446,950 367,640 371,309
Total funds 9,157,154 9,081,263 9,009,808
Accrued taxes, expenses and other
liabilities (a) 158,652 168,752 171,581
Total liabilities 9,315,806 9,250,015 9,181,389
SHAREHOLDERS' EQUITY
Preferred stock - - -
Common stock 127,937 127,937 127,937
Capital surplus 106,339 105,587 104,477
Accumulated other comprehensive
(loss) income (36,045) (52,601) (54,132)
Retained earnings 1,020,518 1,015,749 1,001,647
Treasury stock (307,401) (307,831) (309,695)
Total shareholders' equity 911,348 888,841 870,234
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $10,227,154 10,138,856 10,051,623
FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Quarterly Periods
(Unaudited)
(Dollars in thousands) March 31, December 31,
2006 2005
ASSETS
Cash and due from banks $ 194,042 192,189
Investment securities/fed funds sold 2,500,021 2,619,248
Loans held for sale 48,129 48,894
Loans:
Commercial loans 3,567,263 3,519,807
Mortgage loans 630,702 637,877
Installment loans 1,513,938 1,556,212
Home equity loans 775,728 772,757
Credit card loans 141,821 142,743
Leases 68,280 70,601
Total loans 6,697,732 6,699,997
Less allowance for loan losses (a) 90,229 91,916
Net loans 6,607,503 6,608,081
Total earning assets 9,245,882 9,368,139
Premises and equipment, net 120,155 117,387
Accrued interest receivable and other
assets 641,703 625,820
TOTAL ASSETS $ 10,111,553 10,211,619
LIABILITIES
Deposits:
Demand - non-interest bearing $ 1,462,671 1,488,679
Demand - interest bearing 848,209 817,009
Savings and money market accounts 2,292,865 2,332,528
Certificates and other time
deposits 2,709,764 2,635,764
Total deposits 7,313,509 7,273,980
Securities sold under agreements to
repurchase 1,295,178 1,443,740
Wholesale borrowings 433,257 375,167
Total funds 9,041,944 9,092,887
Accrued taxes, expenses and other
liabilities (a) 180,791 166,017
Total liabilities 9,222,735 9,258,904
SHAREHOLDERS' EQUITY
Preferred stock - -
Common stock 127,937 127,937
Capital surplus 108,330 108,303
Accumulated other comprehensive
(loss) income (44,150) (39,834)
Retained earnings 998,173 994,301
Treasury stock (301,472) (237,992)
Total shareholders' equity 888,818 952,715
TOTAL LIABILITIES AND SHAREHOLDERS'
EQUITY $ 10,111,553 10,211,619
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, 2006
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks $ 175,735
Investment securities and federal
funds sold:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 1,996,290 20,246 4.02%
Obligations of states and political
subdivisions (tax exempt) 163,815 2,448 5.93%
Other securities and federal funds
sold 250,774 3,987 6.31%
Total investment securities and
federal funds sold 2,410,879 26,681 4.39%
Loans held for sale 45,772 743 6.44%
Loans 6,917,572 130,973 7.51%
Total earning assets 9,374,223 158,397 6.70%
Allowance for loan losses (88,175)
Other assets 765,371
Total assets $ 10,227,154
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing $ 1,413,682 -- --
Demand - interest bearing 767,430 2,031 1.05%
Savings and money market accounts 2,267,268 14,068 2.46%
Certificates and other time deposits 2,991,951 35,569 4.72%
Total deposits 7,440,331 51,668 2.76%
Securities sold under agreements to
repurchase 1,269,873 15,393 4.81%
Wholesale borrowings 446,950 6,834 6.07%
Total interest bearing liabilities 7,743,472 73,895 3.79%
Other liabilities 158,652
Shareholders' equity 911,348
Total liabilities and shareholders'
equity $ 10,227,154
Net yield on earning assets $ 9,374,223 84,502 3.58%
Interest rate spread 2.92%
FIRSTMERIT CORPORATION AND
SUBSIDIARIES Year ended
(Dollars in thousands) December 31, 2005
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks $ 194,485
Investment securities and federal
funds sold:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,416,360 91,814 3.80%
Obligations of states and political
subdivisions (tax exempt) 99,487 6,707 6.74%
Other securities and federal funds
sold 255,568 12,291 4.81%
Total investment securities and
federal funds sold 2,771,415 110,812 4.00%
Loans held for sale 52,740 2,854 5.41%
Loans 6,610,509 430,402 6.51%
Total earning assets 9,434,664 544,068 5.77%
Allowance for loan losses (94,118)
Other assets 729,398
Total assets $ 10,264,429
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing $ 1,466,106 -- --
Demand - interest bearing 827,829 5,871 0.71%
Savings and money market accounts 2,356,813 32,944 1.40%
Certificates and other time deposits 2,647,908 86,764 3.28%
Total deposits 7,298,656 125,579 1.72%
Securities sold under agreements to
repurchase 1,409,135 45,423 3.22%
Wholesale borrowings 431,787 21,449 4.97%
Total interest bearing liabilities 7,673,472 192,451 2.51%
Other liabilities 158,125
Shareholders' equity 966,726
Total liabilities and shareholders'
equity $ 10,264,429
Net yield on earning assets $ 9,434,664 351,617 3.73%
Interest rate spread 3.26%
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 and loans have been adjusted to a
fully-taxable equivalent basis.
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 Twelve months ended
(Dollars in thousands) December 31, 2006
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks $ 186,029
Investment securities:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,050,736 81,207 3.96%
Obligations of states and political
subdivisions (tax exempt) 114,548 7,390 6.45%
Other securities 250,221 15,264 6.10%
Total investment securities and
federal funds sold 2,415,505 103,861 4.30%
Loans held for sale 47,449 3,153 6.65%
Loans 6,798,338 499,746 7.35%
Total earning assets 9,261,292 606,760 6.55%
Allowance for loan losses (88,020)
Other assets 770,714
Total assets $ 10,130,015
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing $ 1,434,539 -- --
Demand - interest bearing 818,735 9,217 1.13%
Savings and money market accounts 2,271,654 50,083 2.20%
Certificates and other time deposits 2,859,218 123,877 4.33%
Total deposits 7,384,146 183,177 2.48%
Securities sold under agreements to
repurchase 1,283,951 56,151 4.37%
Wholesale borrowings 404,723 24,140 5.96%
Total interest bearing liabilities 7,638,281 263,468 3.45%
Other liabilities 167,266
Shareholders' equity 889,929
Total liabilities and shareholders'
equity $ 10,130,015
Net yield on earning assets $ 9,261,292 343,292 3.71%
Interest rate spread 3.10%
FIRSTMERIT CORPORATION AND
SUBSIDIARIES Twelve months ended
(Dollars in thousands) December 31, 2005
Average Average
Balance Interest Rate
ASSETS
Cash and due from banks $ 194,485
Investment securities:
U.S. Treasury securities and U.S.
Government agency obligations
(taxable) 2,416,360 91,814 3.80%
Obligations of states and political
subdivisions (tax exempt) 99,487 6,707 6.74%
Other securities 255,568 12,291 4.81%
Total investment securities and
federal funds sold 2,771,415 110,812 4.00%
Loans held for sale 52,740 2,854 5.41%
Loans 6,610,509 430,402 6.51%
Total earning assets 9,434,664 544,068 5.77%
Allowance for loan losses (94,118)
Other assets 729,398
Total assets $ 10,264,429
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand - non-interest bearing $ 1,466,106 -- --
Demand - interest bearing 827,829 5,871 0.71%
Savings and money market accounts 2,356,813 32,944 1.40%
Certificates and other time deposits 2,647,908 86,764 3.28%
Total deposits 7,298,656 125,579 1.72%
Securities sold under agreements to
repurchase 1,409,135 45,423 3.22%
Wholesale borrowings 431,787 21,449 4.97%
Total interest bearing liabilities 7,673,472 192,451 2.51%
Other liabilities 158,125
Shareholders' equity 966,726
Total liabilities and shareholders'
equity $ 10,264,429
Net yield on earning assets $ 9,434,664 351,617 3.73%
Interest rate spread 3.26%
Note: Interest income on tax-exempt securities and loans has been
adjusted to a fully-taxable equivalent basis.
Nonaccrual loans have been included in the average balances.
FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
Quarters ended Twelve months ended
(Unaudited) December 31, December 31,
(In thousands except per share data)
2006 2005 2006 2005
Interest income:
Interest and fees on loans,
including held for sale $ 131,683 115,850 502,763 433,143
Interest and dividends on
investment securities and federal
funds sold 25,795 26,109 101,078 108,303
Total interest income 157,478 141,959 603,841 541,446
Interest expense:
Interest on deposits:
Demand - interest bearing 2,031 1,953 9,217 5,871
Savings and money market accounts 14,068 10,352 50,083 32,944
Certificates and other time
deposits 35,569 23,831 123,877 86,764
Interest on securities sold under
agreements to repurchase 15,393 13,423 56,151 45,423
Interest on wholesale borrowings 6,834 4,898 24,140 21,449
Total interest expense 73,895 54,457 263,468 192,451
Net interest income 83,583 87,502 340,373 348,995
Provision for loan losses 44,235 16,260 76,112 43,820
Net interest income after
provision for loan losses 39,348 71,242 264,261 305,175
Other income:
Trust department income 5,794 5,430 22,653 22,134
Service charges on deposits 18,198 17,884 71,524 69,065
Credit card fees 11,325 10,601 44,725 40,972
ATM and other service fees 3,135 3,157 12,817 12,867
Bank owned life insurance income 3,001 3,092 14,339 12,264
Investment services and insurance 2,011 2,696 9,820 10,608
Investment securities gains, net - 39 22 1,926
Loan sales and servicing income 1,504 1,668 7,513 6,397
Other operating income 3,364 3,019 11,735 14,233
Total other income 48,332 47,586 195,148 190,466
Other expenses:
Salaries, wages, pension and
employee benefits 43,700 40,790 176,700 163,683
Net occupancy expense 6,143 5,746 24,814 23,730
Equipment expense 3,030 4,152 11,999 13,301
Stationery, supplies and postage 2,633 2,546 9,912 10,050
Bankcard, loan processing and other
costs 7,508 7,042 28,211 24,012
Professional services 5,000 3,389 16,971 12,014
Amortization of intangibles 222 222 889 889
Other operating expense 15,751 15,387 58,591 65,829
Total other expenses 83,987 79,274 328,087 313,508
Income before federal income
tax expense 3,693 39,554 131,322 182,133
Federal income tax expense (2,424) 11,898 36,376 51,650
Net income $ 6,117 27,656 94,946 130,483
Other comprehensive income (loss),
net of taxes
Unrealized securities' holding gain
(loss), net of taxes 2,516 (5,632) 7,984 (24,788)
Unrealized hedging gain (loss), net
of taxes - (104) (747) 747
Minimum pension liability
adjustment, net of taxes (43,881) (3,166) (43,881) (3,349)
Less: reclassification adjustment
for securities' gains losses
realized in net income,
net of taxes - 25 14 1,252
Total other comprehensive income
(loss), net of taxes (41,365) (8,927) (36,658) (28,642)
Comprehensive income $ (35,248) 18,729 58,288 101,841
Net income applicable to common
shares $ 6,117 27,656 94,946 130,483
Net income used in diluted EPS
calculation $ 6,121 27,653 94,964 130,501
Weighted average number of common
shares outstanding - basic 80,091 82,786 80,128 83,490
Weighted average number of common
shares outstanding - diluted 80,316 83,082 80,352 83,844
Basic earnings per share $ 0.07 0.33 1.18 1.56
Diluted earnings per share $ 0.07 0.34 1.18 1.56
Dividend per share $ 0.29 0.28 1.14 1.10
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) 2006 2006 2006 2006 2005
4th Q 3rd Q 2nd Q 1st Q 4th Q
Interest and fees on
loans, including held for
sale $131,683 129,890 123,450 117,740 115,850
Interest and dividends -
securities and federal
funds sold 25,795 25,131 24,820 25,332 26,109
Total interest income 157,478 155,021 148,270 143,072 141,959
Interest on deposits:
Demand-interest bearing 2,031 2,241 2,583 2,362 1,953
Savings and money market
accounts 14,068 13,188 12,079 10,748 10,352
Certificates and other
time deposits 35,569 32,881 29,326 26,101 23,831
Securities sold under
agreements to
repurchase 15,393 15,878 12,957 11,923 13,423
Wholesale borrowings 6,834 5,746 5,595 5,965 4,898
Total interest expense 73,895 69,934 62,540 57,099 54,457
Net interest income 83,583 85,087 85,730 85,973 87,502
Provision for loan losses 44,235 12,612 13,159 6,106 16,260
Net interest income
after provision for
loan losses 39,348 72,475 72,571 79,867 71,242
Other income:
Trust department income 5,794 5,721 5,744 5,394 5,430
Service charges on
deposits 18,198 19,250 18,010 16,066 17,884
Credit card fees 11,325 11,251 11,478 10,671 10,601
ATM and other service fees 3,135 3,301 3,273 3,108 3,157
Bank owned life insurance
income 3,001 3,042 5,310 2,986 3,092
Investment services and
insurance 2,011 2,631 2,581 2,597 2,696
Investment securities
gains (losses), net - 2 4 16 39
Loan sales and servicing
income 1,504 1,731 2,833 1,445 1,668
Other operating income 3,364 2,412 2,845 3,114 3,019
Total other income 48,332 49,341 52,078 45,397 47,586
Other expenses:
Salaries, wages, pension
and employee benefits 43,700 43,248 46,721 43,031 40,790
Net occupancy expense 6,143 6,002 6,120 6,549 5,746
Equipment expense 3,030 3,097 2,914 2,958 4,152
Stationery, supplies and
postage 2,633 2,423 2,403 2,453 2,546
Bankcard, loan processing
and other costs 7,508 7,459 7,417 5,827 7,042
Professional services 5,000 5,470 3,738 2,763 3,389
Amortization of
intangibles 222 222 222 223 222
Other operating expense 15,751 9,062 15,683 18,095 15,387
Total other expenses 83,987 76,983 85,218 81,899 79,274
Income before income tax
expense 3,693 44,833 39,431 43,365 39,554
Federal income taxes (2,424) 13,629 11,770 13,401 11,898
Net income $6,117 31,204 27,661 29,964 27,656
Other comprehensive income
(loss), net of taxes (41,365) 23,870 (8,618) (10,545) (8,927)
Comprehensive income $(35,248) 55,074 19,043 19,419 18,729
Net income applicable to
common shares 6,117 31,204 27,661 29,964 27,656
Adjusted net income used in
diluted EPS calculation 6,121 31,209 27,666 29,968 27,653
Weighted-average common
shares - basic 80,091 80,066 79,983 80,374 82,786
Weighted-average common
shares - diluted 80,316 80,262 80,203 80,648 83,082
Basic net income per share $0.07 0.39 0.35 0.37 0.33
Diluted net income per share $0.07 0.39 0.35 0.37 0.34
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited, except December 31, 2005 annual period which
is derived from the audited financial statements)
(Dollars in thousands, except ratios)
Quarterly
Periods
Dec 31 Sep 30 June 30
Allowance for Credit Losses 2006 2006 2006
Allowance for loan losses, beginning
of period $ 88,755 87,727 87,589
Allowance related to loans held for
sale (23,089) - -
Provision for loan losses 44,235 12,612 13,159
Charge-offs 22,323 15,453 18,038
Recoveries 3,764 3,869 5,017
Net charge-offs 18,559 11,584 13,021
Allowance for loan losses, end of
period $ 91,342 88,755 87,727
Reserve for unfunded lending
commitments, beginning of period $ 6,307 5,716 5,853
Provision for credit losses (13) 591 (137)
Reserve for unfunded lending
commitments, end of period $ 6,294 6,307 5,716
Allowance for Credit Losses $ 97,636 95,062 93,443
Ratios
Provision for loan losses as a % of
average loans 2.54% 0.73% 0.78%
Provision for credit losses as a % of
average loans 0.00% 0.03% -0.01%
Net charge-offs as a % of average
loans 1.06% 0.67% 0.78%
Net charge-offs and allowance related
to loans held for sale as a % of
average loans 1.40% 0.67% 0.78%
Allowance for loan losses as a % of
period-end loans 1.33% 1.28% 1.29%
Allowance for credit losses as a % of
period-end loans 1.42% 1.37% 1.37%
Allowance for loan losses as a % of
nonperforming loans 168.03% 143.73% 174.80%
Allowance for credit losses as a % of
nonperforming loans 179.60% 153.94% 186.19%
Asset Quality
Impaired loans:
Nonaccrual $ 45,045 52,621 41,927
Other nonperforming loans:
Nonaccrual 9,317 9,132 8,261
Total nonperforming loans 54,362 61,753 50,188
Other real estate ("ORE") 9,815 10,711 8,598
Total nonperforming assets ("NPAs") $ 64,177 72,464 58,786
NPAs as % of period-end loans + ORE 0.93% 1.05% 0.86%
Past due 90 days or more & accruing
interest $ 16,860 15,311 16,483
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION
(Unaudited, except December 31, 2005 annual period which
is derived from the audited financial statements)
(Dollars in thousands, except ratios)
Annual
Period
Mar 31 Dec 31 Dec 31
Allowance for Credit Losses 2006 2005 2005
Allowance for loan losses, beginning
of period $ 90,661 92,780 97,296
Allowance related to loans held for
sale - - -
Provision for loan losses 6,106 16,260 43,820
Charge-offs 14,914 22,736 69,105
Recoveries 5,736 4,357 18,650
Net charge-offs 9,178 18,379 50,455
Allowance for loan losses, end of
period $ 87,589 90,661 90,661
Reserve for unfunded lending
commitments, beginning of period $ 6,072 5,857 5,774
Provision for credit losses (219) 215 298
Reserve for unfunded lending
commitments, end of period $ 5,853 6,072 6,072
Allowance for Credit Losses $ 93,442 96,733 96,733
Ratios
Provision for loan losses as a % of
average loans 0.37% 0.96% 0.66%
Provision for credit losses as a % of
average loans -0.01% 0.01% 0.00%
Net charge-offs as a % of average
loans 0.56% 1.09% 0.76%
Net charge-offs and allowance related
to loans held for sale as a % of
average loans 0.56% 1.09% 0.76%
Allowance for loan losses as a % of
period-end loans 1.31% 1.36% 1.36%
Allowance for credit losses as a % of
period-end loans 1.40% 1.45% 1.45%
Allowance for loan losses as a % of
nonperforming loans 136.22% 145.61% 145.61%
Allowance for credit losses as a % of
nonperforming loans 145.32% 155.36% 155.36%
Asset Quality
Impaired loans:
Nonaccrual $ 56,258 54,176 54,176
Other nonperforming loans:
Nonaccrual 8,044 8,086 8,086
Total nonperforming loans 64,302 62,262 62,262
Other real estate ("ORE") 8,639 9,995 9,995
Total nonperforming assets ("NPAs") $ 72,941 72,257 72,257
NPAs as % of period-end loans + ORE 1.09% 1.08% 1.08%
Past due 90 days or more & accruing
interest $ 18,640 17,931 17,931
FIRSTMERIT CORPORATION
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL
(Unaudited)
(Dollars in thousands)
2006 2006 2006 2006 2005
QUARTERLY OTHER INCOME DETAIL 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
Trust department income $5,794 5,721 5,744 5,394 5,430
Service charges on deposits 18,198 19,250 18,010 16,066 17,884
Credit card fees 11,325 11,251 11,478 10,671 10,601
ATM and other service fees 3,135 3,301 3,273 3,108 3,157
Bank owned life insurance income 3,001 3,042 5,310 2,986 3,092
Investment services and insurance 2,011 2,631 2,581 2,597 2,696
Investment securities gains
(losses), net - 2 4 16 39
Loan sales and servicing income 1,504 1,731 2,833 1,445 1,668
Other operating income 3,364 2,412 2,845 3,114 3,019
Total Other Income $48,332 49,341 52,078 45,397 47,586
2006 2006 2006 2006 2005
QUARTERLY OTHER EXPENSES DETAIL 4th Qtr 3rd Qtr 2nd Qtr 1st Qtr 4th Qtr
Salaries, wages, pension and
employee benefits $43,700 43,248 46,721 43,031 40,790
Net occupancy expense 6,143 6,002 6,120 6,549 5,746
Equipment expense 3,030 3,097 2,914 2,958 4,152
Taxes, other than federal income
taxes 1,753 (7,703) 1,802 1,819 1,578
Stationery, supplies and postage 2,633 2,423 2,403 2,453 2,546
Bankcard, loan processing and
other costs 7,508 7,459 7,417 5,827 7,042
Advertising 798 1,152 2,369 2,766 1,415
Professional services 5,000 5,470 3,738 2,763 3,389
Telephone 1,362 1,138 1,094 1,128 1,136
Amortization of intangibles 222 222 222 223 222
Other operating expense 11,838 14,475 10,418 12,382 11,258
Total Other Expenses $83,987 76,983 85,218 81,899 79,274
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES - Net Charge-off Detail
(Unaudited)
(Dollars in thousands) Quarters ended Year ended
December 31, December 31,
2006 2005 2006 2005
Allowance for loan
losses - beginning of
period $ 88,755 92,780 90,661 97,296
Loans charged off:
Commercial 9,745 7,891 32,628 19,349
Mortgage 513 639 1,670 1,721
Installment 5,296 9,063 20,682 29,307
Home equity 969 1,099 3,847 4,340
Credit cards 2,254 3,586 8,294 11,320
Leases 3,546 458 3,607 3,068
Total 22,323 22,736 70,728 69,105
Recoveries:
Commercial 786 1,256 3,734 4,166
Mortgage 47 13 142 190
Installment 2,010 1,878 10,340 9,495
Home equity 275 374 1,293 1,302
Credit cards 504 489 2,123 2,348
Manufactured housing 79 203 451 710
Leases 63 144 303 439
Total 3,764 4,357 18,386 18,650
Net charge-offs 18,559 18,379 52,342 50,455
Provision for loan
losses 44,235 16,260 76,112 43,820
Allowance related to
loans held for sale (23,089) - (23,089) -
Allowance for loan
losses - end of period $ 91,342 90,661 91,342 90,661
Average loans
outstanding $6,917,572 6,699,997 6,798,338 6,610,509
Ratio to average loans:
(Annualized) net
charge-offs 1.06% 1.09% 0.77% 0.76%
(Annualized) net
charge-offs and
allowance related to
loans held for sale 1.40% 1.09% 1.11% 0.76%
Provision for loan
losses 2.54% 0.96% 1.12% 0.66%
Loans outstanding -
period-end $6,878,873 6,667,327 6,878,873 6,667,327
Allowance for credit
losses: 97,636 96,733 97,636 96,733
As a multiple of
(annualized) net
charge-offs 1.33 1.33 1.87 1.92
As a multiple of
(annualized) net
charge-offs and
allowance related to
loans held for sale 1.01 1.33 1.29 1.92
Allowance for loan
losses:
As a percent of
period-end loans
outstanding 1.33% 1.36% 1.33% 1.36%
As a multiple of
(annualized) net
charge-offs 1.24 1.24 1.75 1.80
As a multiple of
(annualized) net
charge-offs and
allowance related to
loans held for sale 0.94 1.24 1.21 1.80
SOURCE FirstMerit Corporation
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