FirstMerit Reports First Quarter 2013 EPS of $0.33 Per Share

         FirstMerit Reports First Quarter 2013 EPS of $0.33 Per Share

PR Newswire

AKRON, Ohio, April 23, 2013

AKRON, Ohio, April 23, 2013 /PRNewswire/ --

Quarterly Highlights include:

  oSustained profitability: 56th consecutive quarter of profitability.
  oContinued organic growth: Average commercial noncovered loan growth of
    $259.3 million, or 4.63%, from prior quarter; average core deposit growth
    of $285.4 million, or 2.81%, from prior quarter.
  oSuperior credit quality: Net charge-offs to noncovered average loans
    decreased to 0.27% from 0.34% in the prior quarter; nonperforming assets
    as a percent of noncovered period end loans plus other real estate
    remained low at 0.59% compared to 0.57% in the prior quarter.
  oStrong balance sheet: Strong tangible common equity ratio at 8.03%.

FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2013 net income
of $37.3 million, or $0.33 per diluted share. This compares with $38.2
million, or $0.35 per diluted share, for the fourth quarter 2012 and $30.3
million, or $0.28 per diluted share, for the first quarter 2012.

(Logo: http://photos.prnewswire.com/prnh/20070920/CLTU138LOGO )

Returns on average common equity ("ROE") and average assets ("ROA") for the
first quarter 2013 were 8.83% and 1.01%, respectively, compared with 9.30% and
1.03%, respectively, for the fourth quarter 2012 and 7.72% and 0.84% for the
first quarter 2012.

"During the first quarter, FirstMerit continued its trend of strong financial
results. Our solid performance laid the foundation for our execution of the
Citizens Republic Bancorp acquisition that we announced last September and
closed on April 12, 2013. Our most recent quarter was highlighted by
excellent credit quality, additional cost savings generated by our successful
efficiency initiative and robust growth in average noncovered commercial loans
and average core deposits. We are excited to introduce our value proposition
into our newest markets, Michigan and Wisconsin, backed by our exceptional
customer service. We believe FirstMerit's consistent profitability, robust
balance sheet and high capital levels will resonate well with customers as we
capture market share in our new footprint," said Paul Greig, chairman,
president and CEO, FirstMerit Corporation.

Net interest margin was 3.46% for the first quarter 2013 compared with 3.58%
for the fourth quarter 2012 and 3.78% for the first quarter 2012. Increased
borrowing costs, primarily related to the Corporation's issuance of $250
million aggregate principal amount of subordinated notes in an underwritten
public offering completed on February 4, 2013, accounted for six basis points
of compression during the first quarter of 2013.

Average noncovered loans during the first quarter 2013 increased $291.1
million, or 3.45%, compared with the fourth quarter 2012 and also increased
$953.9 million, or 12.26%, compared with the first quarter 2012. Average
noncovered commercial loans increased $259.3 million, or 4.63%, compared with
the prior quarter, and increased $716.7 million, or 13.94%, compared with the
year ago quarter.

Average deposits were $11.8 billion during the first quarter 2013, an increase
of $194.7 million, or 1.68%, compared with the fourth quarter 2012, and an
increase of $317.8 million, or 2.77%, compared with the first quarter 2012.
During the first quarter 2013, average core deposits, which exclude time
deposits, increased $285.4 million, or 2.81%, compared with the fourth quarter
2012 and $680.5 million, or 6.96%, compared with the first quarter 2012.
Average time deposits decreased $90.7 million, or 6.38%, and decreased $362.7
million, or 21.41%, respectively, over prior and year-ago quarters. For the
first quarter 2013, average core deposits accounted for 88.71% of total
average deposits, compared with 87.73% for the fourth quarter 2012 and 85.23%
for the first quarter 2012.

Average investments increased $11.2 million, or 0.30%, compared with the
fourth quarter 2012 and increased $7.2 million, or 0.19% compared with the
first quarter 2012.

Net interest income on a fully tax-equivalent ("FTE") basis was $114.4 million
in the first quarter 2013 compared with $119.1 million in the fourth quarter
2012 and $121.4 million in the first quarter 2012.

Noninterest income, excluding gains on securities transactions, for the first
quarter 2013 was $57.4 million, a decrease of $1.8 million, or 3.08%, from the
fourth quarter 2012 and an increase of $5.9 million, or 11.53%, from the first
quarter 2012. Included in noninterest income in both the first quarter of
2013 and the fourth quarter of 2012 were $5.0 million of gains on covered
loans paid in full.

Other income, net of securities gains, as a percentage of net revenue for the
first quarter 2013 was 33.42% compared with 33.21% for fourth quarter 2012 and
29.77% for the first quarter 2012. Net revenue is defined as net interest
income, on an FTE basis, plus other income, less gains from securities sales.

Noninterest expense for the first quarter 2013 was $106.9 million, a decrease
of $5.3 million, or 4.69%, from the fourth quarter 2012 and a decrease of $6.8
million, or 6.01%, from the first quarter 2012. Included in noninterest
expense in the first quarter of 2013 and fourth quarter of 2012 were
acquisition related costs associated with the Citizens Republic Bancorp merger
of $3.6 million and $2.1 million, respectively. The majority of these
acquisition related costs were from professional and legal services rendered
in connection with the merger. Also included in noninterest expense in the
fourth quarter of 2012 was $2.3 million of fees related to the early
termination of Federal Home Loan Bank advances.

During the first quarter 2013, the Corporation reported an efficiency ratio of
62.06%, compared with 62.65% for the fourth quarter 2012 and 65.52% for the
first quarter 2012.

Net noncovered charge-offs totaled $5.9 million, or 0.27% of average
noncovered loans in the first quarter 2013, compared with $7.1 million, or
0.34% of average noncovered loans, in the fourth quarter 2012 and $12.0
million, or 0.62% of average noncovered loans, in the first quarter 2012.

Nonperforming assets totaled $52.2 million at March31, 2013, a increase of
$2.0 million, or 4.00%, compared with December31, 2012 and a decrease of
$15.7 million, or 23.11%, compared with March31, 2012. Nonperforming assets
at March31, 2013 represented 0.59% of period-end noncovered loans plus other
real estate compared with 0.57% at December31, 2012 and 0.86% at March31,
2012.

The allowance for noncovered loan losses totaled $98.8 million at March31,
2013. At March31, 2013, the allowance for noncovered loan losses was 1.13%
of period-end noncovered loans compared with 1.13% at December31, 2012 and
1.32% at March31, 2012. The allowance for credit losses is the sum of the
allowance for noncovered loan losses and the reserve for unfunded lending
commitments. For comparative purposes, the allowance for credit losses was
1.18% of period end noncovered loans at March31, 2013, compared with 1.20% at
December31, 2012 and 1.39% at March31, 2012. The allowance for credit
losses to nonperforming loans was 254.32% at March31, 2013, compared with
284.50% at December31, 2012 and 205.13% at March31, 2012.

The Corporation's total assets at March31, 2013 were $15.3 billion, an
increase of $359.5 million, or 2.41%, compared with December31, 2012 and an
increase of $601.7 million, or 4.10%, compared with March31, 2012.

Total deposits were $11.9 billion at March31, 2013, an increase of $166.3
million, or 1.41%, from December31, 2012 and an increase of $277.6 million,
or 2.38%, from March31, 2012. Core deposits totaled $10.6 billion at
March31, 2013, an increase of $238.4 million, or 2.30%, from December31,
2012 and an increase of $624.3 million, or 6.24%, from March31, 2012.

Shareholders' equity was $1.8 billion as of March31, 2013 and $1.6 billion as
of December31, 2012 and March31, 2012. On February 4, 2013, the Corporation
issued 4,000,000 depositary shares (each representing a 1/40th interest in a
share of the Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock,
Series A) for total gross proceeds of $100 million. Dividends are payable
quarterly in arrears on the 4th day of February, May, August and November,
beginning May 4, 2013. As of March 31, 2013, $0.9 million of dividends were
accrued and payable on May 4, 2013 and accounted for approximately a one cent
reduction in diluted EPS for the quarter ended March 31, 2013. The
Corporation maintained a strong capital position as tangible common equity to
assets was 8.03% at March31, 2013, compared with 8.16% at December31, 2012
and 7.86% at March31, 2012. The common cash dividend per share paid in the
first quarter 2013 was $0.16.

First Quarter 2013 Conference Call
FirstMerit (Nasdaq: FMER) senior management will host an earnings conference
call today at 11:00 a.m. (Eastern Time) to provide an overview of first
quarter results and highlights. To participate in the conference call, please
dial (888) 693-3477 ten minutes before start time and provide the reservation
number: 41933689. A replay of the conference call will be available at
approximately 2:00 p.m. (Eastern Time) on April23, 2013 through May 7, 2013
by dialing (855) 859-2056, and entering the PIN: 41933689. The Corporation
will provide a slide presentation, which management will speak to during the
conference call. A copy of the presentation will be available at
https://www.firstmerit.com/personal/investors.aspx; click on the Presentations
link to access the slide presentation.

About FirstMerit Corporation
FirstMerit Corporation is a diversified financial services company
headquartered in Akron, Ohio, with assets of approximately $24.5 billion as of
close of business April 12, 2013, and 415 banking offices and 452 ATM
locations in Ohio, Michigan, Wisconsin, Illinois and Pennsylvania. FirstMerit
provides a complete range of banking and other financial services to consumers
and businesses through its core operations. Principal affiliates include:
FirstMerit Bank, N.A., FirstMerit Mortgage Corporation, FirstMerit Title
Agency, Ltd., and FirstMerit Community Development Corporation.

Subsequent Events
The Corporation is required under generally accepted accounting principles to
evaluate subsequent events through the filing of the its consolidated
financial statements for the year ended March31, 2013 on Form 10-K. As a
result, the Corporation will continue to evaluate the impact of any subsequent
events on critical accounting assumptions and estimates made as of March31,
2013 and will adjust amounts preliminarily reported, if necessary.

Forward-Looking Statements
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 Corporation, 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 Corporation's business,
competitive pressures, changes in accounting, tax or regulatory practices or
requirements, the Corporation's ability to realize the synergies and benefits
contemplated by the acquisition of Citizens Republic Bancorp, such as it being
accretive to earnings and expanding the Corporation's geographic presence, in
the time frame anticipated or at all, and those risk factors detailed in the
Corporation's periodic reports and registration statements filed with the
Securities and Exchange Commission. The Corporation undertakes no obligation
to release revisions to these forward-looking statements or reflect events or
circumstances after the date of this release.



FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited)                                  Quarters
(Dollars in
thousands,     2013           2012           2012           2012           2012
except per
share amounts)
               1st qtr        4th qtr        3rd qtr        2nd qtr        1st qtr
EARNINGS
Net interest   $ 114,376      $ 119,130      $ 120,741      $ 121,689      $ 121,428
income FTE (a)
Provision for
noncovered     5,808          7,116          9,965          8,766          8,129
loan losses
Provision for
covered loan   4,138          5,146          6,214          3,430          5,932
losses
Other income   57,392         61,652         54,925         55,301         51,726
Other expenses 106,925        112,181        108,587        119,077        113,768
FTE adjustment 3,027          2,900          2,851          2,766          2,641
(a)
Net income     37,346         38,224         34,953         30,585         30,344
Diluted EPS    0.33           0.35           0.32           0.28           0.28
(d)
PERFORMANCE
RATIOS
Return on
average assets 1.01         % 1.03         % 0.94         % 0.84         % 0.84         %
(ROA)
Return on
average common 8.83         % 9.30         % 8.60         % 7.69         % 7.72         %
equity (ROE)
Net interest   3.46         % 3.58         % 3.66         % 3.77         % 3.78         %
margin FTE (a)
Efficiency     62.06        % 62.65        % 61.75        % 67.21        % 65.52        %
ratio
Number of
full-time      2,767          2,738          2,733          2,789          2,997
equivalent
employees
MARKET DATA
Book value per $ 15.99        $ 15.00        $ 14.82        $ 14.60        $ 14.51
common share
Period-end
common share   16.54          14.19          14.71          16.51          16.86
market value
Market as a %  103          % 95           % 99           % 113          % 116          %
of book
Cash dividends
per common     $ 0.16         $ 0.16         $ 0.16         $ 0.16         $ 0.16
share
Common stock
dividend       48.48        % 45.71        % 50.00        % 57.14        % 57.14        %
payout ratio
Average basic  109,689        109,652        109,645        109,562        109,211
common shares
Average
diluted common 109,689        109,652        109,645        109,562        109,211
shares
Period end     109,746        109,649        109,653        109,641        109,187
common shares
Common shares  26             12             6              111            69
repurchased
Common stock
market         $ 1,815,199    $ 1,555,919    $ 1,612,996    $ 1,810,173    $ 1,840,893
capitalization
ASSET QUALITY
(excluding
covered loans)
Gross          $ 10,776       $ 12,475       $ 20,999       $ 15,014       $ 17,417
charge-offs
Net            5,907          7,116          14,872         8,766          11,979
charge-offs
Allowance for
noncovered     98,843         98,942         98,942         103,849        103,849
loan losses
Reserve for
unfunded       4,941          5,433          5,760          5,666          5,410
lending
commitments
Nonperforming
assets (NPAs)  52,231         50,224         64,055         61,080         67,933
(b)
Net
charge-offs to 0.27         % 0.34         % 0.72         % 0.44         % 0.62         %
average loans
ratio (b)
Allowance for
noncovered
loan losses to 1.13         % 1.13         % 1.19         % 1.28         % 1.32         %
period-end
loans (b)
Allowance for
credit losses  1.18         % 1.20         % 1.26         % 1.35         % 1.39         %
to period-end
loans (b)
NPAs to loans
and other real 0.59         % 0.57         % 0.77         % 0.75         % 0.86         %
estate (b)
Allowance for
noncovered
loan losses to 242.21       % 269.69       % 196.66       % 222.44       % 194.97       %
nonperforming
loans
Allowance for
credit losses
to             254.32       % 284.50       % 208.11       % 234.57       % 205.13       %
nonperforming
loans
CAPITAL &
LIQUIDITY
Period-end
tangible       8.03         % 8.16         % 8.18         % 8.01         % 7.86         %
common equity
to assets
Average equity 11.45        % 11.12        % 10.97        % 10.98        % 10.91        %
to assets
Average equity
to total loans 17.88        % 17.37        % 17.46        % 17.57        % 17.50        %
(c)
Average total
loans to       81.36        % 81.21        % 79.89        % 78.78        % 78.74        %
deposits (c)
AVERAGE
BALANCES
Assets         $ 14,983,543   $ 14,702,215   $ 14,734,016   $ 14,558,514   $ 14,496,937
Deposits       11,789,784     11,595,085     11,591,931     11,555,283     11,472,021
Loans,
excluding      8,681,295      8,389,223      8,121,083      7,857,840      7,677,963
acquired loans
(c)
Acquired
loans,
including      910,887        1,026,574      1,139,568      1,245,246      1,355,086
covered loans
(c)
Earning assets 13,408,789     13,246,693     13,119,473     12,986,988     12,935,184
Shareholders'  1,715,005      1,635,275      1,616,569      1,599,187      1,581,009
equity
ENDING
BALANCES
Assets         $ 15,272,484   $ 14,913,012   $ 14,628,843   $ 14,621,344   $ 14,670,818
Deposits       11,925,767     11,759,425     11,532,426     11,615,841     11,648,165
Loans,
excluding      8,725,839      8,677,501      8,260,426      8,031,998      7,764,058
acquired loans
(c)
Acquired
loans,
including      855,370        959,549        1,099,052      1,187,203      1,306,165
covered loans
(c)
Goodwill       460,044        460,044        460,044        460,044        460,044
Intangible     6,055          6,373          6,817          7,274          7,756
assets
Earning assets 13,905,342     13,472,067     13,219,301     13,212,071     13,318,202
Total
shareholders'  1,754,850      1,645,202      1,624,704      1,600,815      1,584,105
equity
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) - Covered loans and other real estate from George Washington Savings Bank and Midwest
Bank & Trust Company are excluded from the ratio of our allowance for loan and credit
losses and NPAs. Nonperforming assets at March 31, 2013, December 31, 2012, and September
30, 2012 include $10.0 million, $7.7 million, and $10.6 million, respectively, of loans
resulting from consumer loans classified as troubled debt restructurings where the
borrower's obligation to the Corporation has been restructured in bankruptcy.
(c) - Excludes loss share receivable of $95.6 million, $113.7 million, $131.9 million,
$152.6 million and $171.1 million as of March 31, 2013, December 31, 2012, September 30,
2012, June 30, 2012 and March 31, 2012, respectively.
(d) - Net income used to determine diluted EPS for the quarter ended March 31, 2013 was
reduced by the cash dividends of approximately $0.9 million payable on the Corporation's
5.875% Non-Cumulative Perpetual Preferred Stock, Series A.







FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(Dollars in thousands)             March 31,      December 31,   March 31,
(Unaudited, except December 31,
2012, which is derived from the    2013           2012           2012
audited financial statements)
ASSETS
 Cash and due from banks           $ 183,430      $ 244,223      $ 188,789
 Interest-bearing deposits in      163,673        13,791         301,196
 banks
    Total cash and cash            347,103        258,014        489,985
    equivalents
 Investment securities:
    Held-to-maturity               665,589        622,121        100,840
    Available-for-sale             3,243,835      2,920,971      3,491,647
    Other investments              140,984        140,717        140,713
 Loans held for sale               14,459         23,683         42,447
 Noncovered loans:
    Commercial                     5,888,337      5,866,489      5,220,051
    Mortgage                       451,522        445,211        428,950
    Installment                    1,322,795      1,328,258      1,259,930
    Home equity                    812,458        806,078        739,548
    Credit card                    140,721        146,387        140,618
    Leases                         164,137        139,236        74,112
        Total noncovered loans     8,779,970      8,731,659      7,863,209
        Allowance for noncovered   (98,843)       (98,942)       (103,849)
        loan losses
        Net noncovered loans       8,681,127      8,632,717      7,759,360
 Covered loans (includes loss
 share receivable of $95.6
 million, $113.7 million and
 $171.1 million at                 896,832        1,019,125      1,378,150

 March 31, 2013, December 31, 2012
 and March 31, 2012, respectively)
        Allowance for covered loan (47,945)       (43,255)       (41,070)
        losses
        Net covered loans          848,887        975,870        1,337,080
 Net loans                         9,530,014      9,608,587      9,096,440
 Premises and equipment, net       177,137        181,149        188,347
 Goodwill                          460,044        460,044        460,044
 Intangible assets                 6,055          6,373          7,756
 Covered other real estate
 (includes loss share receivable
 of $.04 million, $.05 million,
 and $0.7 million at               70,267         59,855         56,411

 March 31, 2013, December 31, 2012
 and March 31, 2012, respectively)
 Accrued interest receivable and   616,997        631,498        596,188
 other assets
        Total assets               $ 15,272,484   $ 14,913,012   $ 14,670,818
LIABILITIES AND SHAREHOLDERS'
EQUITY
 Deposits:
    Noninterest-bearing            $ 3,360,841    $ 3,338,371    $ 3,136,595
    Interest-bearing               1,371,359      1,287,674      1,119,102
    Savings and money market       5,890,369      5,758,123      5,742,547
    accounts
    Certificates and other time    1,303,198      1,375,257      1,649,921
    deposits
        Total deposits             11,925,767     11,759,425     11,648,165
    Federal funds purchased and
    securities sold under          826,855        1,104,525      928,760
    agreements to repurchase
    Wholesale borrowings           385,924        136,883        176,611
    Accrued taxes, expenses, and   379,088        266,977        333,177
    other liabilities
        Total liabilities          13,517,634     13,267,810     13,086,713
    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
        5.875% Non-Cumulative
        Perpetual Preferred Stock,
        Series A, without par
        value: 115,000             100,000        —              —

        authorized shares; 100,000
        outstanding shares
        Common stock, without par
        value; authorized
        300,000,000 shares;
        issued: March 31, 2013,    127,937        127,937        127,937

        December 31, 2012 and
        March 31, 2012 -
        115,121,731 shares
        Capital surplus            472,975        475,979        484,491
        Accumulated other          (24,119)       (16,205)       (22,172)
        comprehensive loss
        Retained earnings          1,214,889      1,195,850      1,144,210
        Treasury stock, at cost:
        March 31, 2013 - 5,375,905
        shares; December 31, 2012
        - 5,472,915 shares;        (136,832)      (138,359)      (150,361)

        March 31, 2012 -
        5,935,169 shares
        Total shareholders' equity 1,754,850      1,645,202      1,584,105
        Total liabilities and      $ 15,272,484   $ 14,913,012   $ 14,670,818
        shareholders' equity





FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
                    Quarterly Periods
(Unaudited)         March 31,     December 31,  September 30, June 30,      March 31,
(Dollars in         2013          2012          2012          2012          2012
thousands)
ASSETS
Cash and due from   $ 394,896     $ 238,366     $ 440,231     $ 410,533     $ 378,736
banks
Investment
securities:
Held-to-maturity    637,614       620,154       337,685       127,769       90,664
Available-for-sale  2,919,636     2,925,938     3,215,203     3,429,411     3,459,439
Other investments   140,729       140,723       140,736       140,744       140,719
Loans held for sale 14,884        20,485        23,631        22,731        26,483
Noncovered loans:
Commercial          5,859,818     5,600,522     5,443,712     5,274,352     5,143,087
Residential         448,589       443,542       437,123       431,752       421,648
Mortgage
Installment         1,325,016     1,331,131     1,293,054     1,263,013     1,261,122
Home equity         806,936       798,663       779,087       750,859       738,154
Credit card         144,159       145,050       143,948       142,311       143,794
Leases              150,789       125,300       88,583        78,862        73,644
Total noncovered    8,735,307     8,444,208     8,185,507     7,941,149     7,781,449
loans
Covered loans and
loss share          960,619       1,095,185     1,216,711     1,325,184     1,436,430
receivable
Total loans         9,695,926     9,539,393     9,402,218     9,266,333     9,217,879
Less: allowance for 141,735       141,270       145,061       143,565       142,628
loan losses
Net loans           9,554,191     9,398,123     9,257,157     9,122,768     9,075,251
Total earning       13,408,789    13,246,693    13,119,473    12,986,988    12,935,184
assets
Premises and        179,381       181,738       184,544       187,181       190,669
equipment, net
Accrued interest
receivable and      1,142,212     1,176,688     1,134,829     1,117,377     1,134,976
other assets
TOTAL ASSETS        $ 14,983,543  $ 14,702,215  $ 14,734,016  $ 14,558,514  $ 14,496,937


LIABILITIES
Deposits:
Noninterest-bearing $ 3,321,660   $ 3,306,444   $ 3,236,703   $ 3,144,183   $ 3,036,590
Interest-bearing    1,300,816     1,122,796     1,080,841     1,060,771     1,066,132
Savings and money   5,835,750     5,743,599     5,746,210     5,732,007     5,675,052
market accounts
Certificates and    1,331,558     1,422,246     1,528,177     1,618,322     1,694,247
other time deposits
Total deposits      11,789,784    11,595,085    11,591,931    11,555,283    11,472,021
Federal funds
purchased and
securities sold
under
agreements to       906,717       957,564       1,032,401     920,352       887,715
repurchase
Wholesale           291,804       163,405       178,022       177,987       184,659
borrowings
Total funds         12,988,305    12,716,054    12,802,354    12,653,622    12,544,395
Accrued taxes,
expenses and other  280,233       350,886       315,093       305,705       371,533
liabilities
Total liabilities   13,268,538    13,066,940    13,117,447    12,959,327    12,915,928
SHAREHOLDERS'
EQUITY
Preferred stock     62,222        —             —             —             —
Common stock        127,937       127,937       127,937       127,937       127,937
Capital surplus     473,943       474,532       472,820       473,650       481,856
Accumulated other
comprehensive       (21,247)      (17,666)      (14,627)      (18,363)      (19,862)
income (loss)
Retained earnings   1,209,837     1,188,641     1,168,649     1,156,324     1,140,953
Treasury stock      (137,687)     (138,169)     (138,210)     (140,361)     (149,875)
Total shareholders' 1,715,005     1,635,275     1,616,569     1,599,187     1,581,009
equity
TOTAL LIABILITIES
AND SHAREHOLDERS'   $ 14,983,543  $ 14,702,215  $ 14,734,016  $ 14,558,514  $ 14,496,937
EQUITY





FIRSTMERIT CORPORATION AND SUBIDARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Fully Tax-equivalent Interest Rates and Interest Differential
                    Three months ended                  Three months ended                  Three months ended
                    March31, 2013                      December31, 2012                   March 31, 2012
(Unaudited)         Average                    Average  Average                    Average  Average                   Average
(Dollars in         Balance        Interest    Rate     Balance        Interest    Rate     Balance        Interest   Rate
thousands)
ASSETS
Cash and due from   $ 394,896                           $ 238,366                           $ 378,736
banks
Investment
securities and
federal funds sold:
U.S. treasury
securities and U.S.
government agency   2,790,039      $ 16,294    2.37  %  2,794,524      $ 16,767    2.39  %  2,882,045      $ 19,679   2.75  %
obligations
(taxable)
Obligations of
states and
political           541,014        6,595       4.94  %  510,722        6,583       5.13  %  436,804        5,864      5.40  %
subdivisions (tax
exempt)
Other securities
and federal funds   366,926        2,944       3.25  %  381,569        3,429       3.58  %  371,973        2,739      2.96  %
sold
Total investment
securities and      3,697,979      25,833      2.83  %  3,686,815      26,779      2.89  %  3,690,822      28,282     3.08  %
federal funds sold
Loans held for sale 14,884         144         3.92  %  20,485         199         3.86  %  26,483         283        4.30  %
Noncovered loans,
covered loans and   9,695,926      99,006      4.14  %  9,539,393      101,288     4.22  %  9,217,879      103,156    4.50  %
loss share
receivable
Total earning       13,408,789     124,983     3.78  %  13,246,693     128,266     3.85  %  12,935,184     131,721    4.10  %
assets
Allowance for loan  (141,735)                           (141,270)                           (142,628)
losses
Other assets        1,321,593                           1,358,426                           1,325,645
Total assets        $ 14,983,543                        $ 14,702,215                        $ 14,496,937
LIABILITIES AND
SHAREHOLDERS'
EQUITY
Deposits:
Noninterest-bearing $ 3,321,660    —           —     %  $ 3,306,444    —           —     %  $ 3,036,590    —          —     %
Interest-bearing    1,300,816      318         0.10  %  1,122,796      261         0.09  %  1,066,132      247        0.09  %
Savings and money   5,835,750      5,315       0.37  %  5,743,599      5,261       0.36  %  5,675,052      5,103      0.36  %
market accounts
Certificates and    1,331,558      2,063       0.63  %  1,422,246      2,287       0.64  %  1,694,247      3,524      0.84  %
other time deposits
Total deposits      11,789,784     7,696       0.26  %  11,595,085     7,809       0.27  %  11,472,021     8,874      0.31  %
Securities sold
under agreements to 906,717        313         0.14  %  957,564        303         0.13  %  887,715        268        0.12  %
repurchase
Wholesale           291,804        2,598       3.61  %  163,405        1,024       2.49  %  184,659        1,151      2.51  %
borrowings
Total interest      9,666,645      10,607      0.45  %  9,409,610      9,136       0.39  %  9,507,805      10,293     0.44  %
bearing liabilities
Other liabilities   280,233                             350,886                             371,533
Shareholders'       1,715,005                           1,635,275                           1,581,009
equity
Total liabilities
and shareholders'   $ 14,983,543                        $ 14,702,215                        $ 14,496,937
equity
Net yield on        $ 13,408,789   $ 114,376   3.46  %  $ 13,246,693   $ 119,130   3.58  %  $ 12,935,184   $ 121,428  3.78  %
earning assets
Interest rate                                  3.34  %                             3.47  %                            3.66  %
spread
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 COMPREHENSIVE INCOME
(Unaudited)                                           Quarters ended
(Dollars in thousands except per share data)          March 31,
                                                      2013         2012
Interest income:
    Loans and loans held for sale                     $  98,672   $  103,082
    Investment securities:
         Taxable                                      19,239      22,418
         Tax-exempt                                   4,045       3,580
         Total investment securities interest         23,284      25,998
                     Total interest income            121,956     129,080
Interest expense:
    Deposits:
         Interest-bearing                             318         247
         Savings and money market accounts            5,315       5,103
         Certificates and other time deposits         2,063       3,524
    Securities sold under agreements to repurchase    313         268
    Wholesale borrowings                              2,598       1,151
         Total interest expense                       10,607      10,293
         Net interest income                          111,349     118,787
Provision for noncovered loan losses                  5,808       8,129
Provision for covered loan losses                     4,138       5,932
         Net interest income after provision for loan 101,403     104,726
         losses
Other income:
    Trust department income                           5,741       5,627
    Service charges on deposits                       12,585      14,409
    Credit card fees                                  10,222      10,180
    ATM and other service fees                        3,335       3,790
    Bank owned life insurance income                  4,897       3,056
    Investment services and insurance                 2,415       2,247
    Investment securities (losses)/gains, net         (9)         260
    Loan sales and servicing income                   7,863       6,691
    Other operating income                            10,343      5,466
         Total other income                           57,392      51,726
Other expenses:
    Salaries, wages, pension and employee benefits    57,906      63,973
    Net occupancy expense                             8,282       8,592
    Equipment expense                                 7,349       7,104
    Stationery, supplies and postage                  2,096       2,143
    Bankcard, loan processing and other costs         7,840       7,653
    Professional services                             5,410       3,352
    Amortization of intangibles                       317         483
    FDIC insurance expense                            3,526       3,720
    Other operating expense                           14,199      16,748
         Total other expenses                         106,925     113,768
                     Income before income tax expense 51,870      42,684
Income tax expense                                    14,524      12,340
                     Net income                       $  37,346   $  30,344
Other comprehensive income, net of taxes
    Changes in unrealized securities' holding gains
    and (losses), net of taxes of ($4.3) million and  $  (7,920)  $  1,884
    $1.0 million
    Reclassification for realized securities' (gains)
    and losses, net of taxes of ($.003) million and   6           (169)
    $.09 million
    Total other comprehensive gain (loss), net of     (7,914)     1,715
    taxes
         Comprehensive income                         $  29,432   $  32,059
    Net income applicable to common shares            $  36,125   $  30,207
    Net income used in diluted EPS calculation        $  36,125   $  30,207
Weighted average number of common shares outstanding  109,689     109,211
- basic
Weighted average number of common shares outstanding  109,689     109,211
- diluted
Basic earnings per common share                       $  0.33     $  0.28
Diluted earnings per common share                     $  0.33     $  0.28
Dividend per common share                             $  0.16     $  0.16



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME---LINKED QUARTERS
                 Quarterly Results
(Unaudited)      2013                   2012        2012        2012        2012
(Dollars in
thousands,       1st qtr                4th qtr     3rd qtr     2nd qtr     1st qtr
except share
data)
Loans and loans  $              98,672  $  101,086  $  103,005  $  103,126  $  103,082
held for sale
Investment       23,284                 24,280      24,477      25,629      25,998
securities
Total interest   121,956                125,366     127,482     128,755     129,080
income
Interest on
deposits:
Interest-bearing 318                    261         243         236         247
Savings and
money market     5,315                  5,261       5,166       5,033       5,103
accounts
Certificates and
other time       2,063                  2,287       2,743       3,169       3,524
deposits
Securities sold
under agreements 313                    303         310         276         268
to repurchase
Wholesale        2,598                  1,024       1,130       1,118       1,151
borrowings
Total interest   10,607                 9,136       9,592       9,832       10,293
expense
Net interest     111,349                116,230     117,890     118,923     118,787
income
Provision for
noncovered loan  5,808                  7,116       9,965       8,766       8,129
losses
Provision for
covered loan     4,138                  5,146       6,214       3,430       5,932
losses
Net interest
income after     101,403                103,968     101,711     106,727     104,726
provision for
loan losses
Other income:
Trust department 5,741                  5,662       6,124       5,730       5,627
income
Service charges  12,585                 14,247      14,603      14,478      14,409
on deposits
Credit card fees 10,222                 11,167      11,006      11,216      10,180
ATM and other    3,335                  3,432       3,680       3,890       3,790
service fees
Bank owned life  4,897                  3,067       3,094       2,923       3,056
insurance income
Investment
services and     2,415                  2,147       2,208       2,388       2,247
insurance
Investment
securities       (9)                    2,425       553         548         260
gains, net
Loan sales and   7,863                  7,946       7,255       5,139       6,691
servicing income
Other operating  10,343                 11,559      6,402       8,989       5,466
income
Total other      57,392                 61,652      54,925      55,301      51,726
income
Other expenses:
Salaries, wages,
pension and      57,906                 61,560      58,061      61,598      63,973
employee
benefits
Net occupancy    8,282                  7,114       8,077       7,971       8,592
expense
Equipment        7,349                  7,398       7,143       7,598       7,104
expense
Stationery,
supplies and     2,096                  2,162       2,210       2,285       2,143
postage
Bankcard, loan
processing and   7,840                  9,260       8,424       8,858       7,653
other costs
Professional     5,410                  6,119       4,702       9,307       3,352
services
Amortization of  317                    444         456         483         483
intangibles
FDIC insurance  3,526                  1,738       1,832       3,463       3,720
expense
Other operating  14,199                 16,386      17,682      17,514      16,748
expense
Total other      106,925                112,181     108,587     119,077     113,768
expenses
Income before
income tax       51,870                 53,439      48,049      42,951      42,684
expense
Income taxes     14,524                 15,215      13,096      12,366      12,340
Net income       37,346                 38,224      34,953      30,585      30,344
Other
comprehensive    (7,914)                (2,305)     4,525       3,747       1,715
income (loss),
net of taxes
Comprehensive    $              29,432  $  35,919   $  39,478   $  34,332   $  32,059
income
Net income
applicable to    $              36,125  $  38,041   $  34,797   $  30,472   $  30,207
common shares
Net income used
in diluted EPS   $              36,125  $  38,041   $  34,797   $  30,472   $  30,207
calculation
Weighted-average
common shares -  109,689                109,652     109,645     109,562     109,211
basic
Weighted-average
common shares -  109,689                109,652     109,645     109,562     109,211
diluted
Basic earnings   $              0.33    $  0.35     $  0.32     $  0.28     $  0.28
per common share
Diluted earnings $              0.33    $  0.35     $  0.32     $  0.28     $  0.28
per common share





FIRSTMERIT
CORPORATION
AND
SUBSIDIARIES
ASSET QUALITY INFORMATION (excluding Covered Assets)
              (Unaudited)                                                                   (Audited)
(Dollars in
thousands,    Quarterly Periods                                                             Annual
except                                                                                      Period
ratios)
              March 31,                December 31, September    June 30,     March 31,     December 31,
                                                    30,
Allowance for 2013                     2012         2012         2012         2012          2012
Credit Losses
Allowance for
noncovered
loan losses,  $              98,942    $  98,942    $  103,849   $  103,849   $  107,699    $  107,699
beginning of
period
Provision for
noncovered    5,808                    7,116        9,965        8,766        8,129         33,976
loan losses
Charge-offs   10,776                   12,475       20,999       15,014       17,417        65,905
Recoveries    4,869                    5,359        6,127        6,248        5,438         23,172
Net           5,907                    7,116        14,872       8,766        11,979        42,733
charge-offs
Allowance for
noncovered    $              98,843    $  98,942    $  98,942    $  103,849   $  103,849    $  98,942
loan losses,
end of period
Reserve for
unfunded
lending
commitments,
beginning of  $              5,433     $  5,760     $  5,666     $  5,410     $  6,373      $  6,373
period
Provision for
(relief of)   (492)                    (327)        94           256          (963)         (940)
credit losses
Reserve for
unfunded
lending
commitments,
end of period $              4,941     $  5,433     $  5,760     $  5,666     $  5,410      $  5,433
Allowance for $              103,784   $  104,375   $  104,702   $  109,515   $  109,259    $  104,375
Credit Losses


Ratios (a)
Provision for
loan losses   0.27                   % 0.34       % 0.48       % 0.44       % 0.42       %  0.42       %
to average
loans
Net
charge-offs   0.27                   % 0.34       % 0.72       % 0.44       % 0.62       %  0.53       %
to average
loans
Allowance for
loan losses   1.13                   % 1.13       % 1.19       % 1.28       % 1.32       %  1.13       %
to period-end
loans
Allowance for
credit losses 1.18                   % 1.20       % 1.26       % 1.35       % 1.39       %  1.20       %
to period-end
loans
Allowance for
loan losses
to            242.21                 % 269.69     % 196.66     % 222.44     % 194.97     %  269.69     %
nonperforming
loans
Allowance for
credit losses
to            254.32                 % 284.50     % 208.11     % 234.57     % 205.13     %  284.50     %
nonperforming
loans


Asset Quality
(a)
Impaired
noncovered
loans:
Nonaccrual    $              23,843    $  21,766    $  31,492    $  38,381    $  44,546     $  21,766
Other
nonperforming
loans:
Nonaccrual    16,966                   14,921       18,819       8,306        8,717         14,921
(b)
Total
nonperforming 40,809                   36,687       50,311       46,687       53,263        36,687
loans
Other real
estate        11,422                   13,537       13,744       14,393       14,670        13,537
("ORE")
Total
nonperforming $              52,231    $  50,224    $  64,055    $  61,080    $  67,933     $  50,224
assets
("NPAs")
NPAs to
period-end    0.59                   % 0.57       % 0.77       % 0.75       % 0.86       %  0.57       %
loans + ORE
Accruing
noncovered
loans past    $              12,393    $  9,417     $  9,691     $  6,545     $  9,261      $  9,417
due 90 days
or more
(a) Excludes covered loans and related loss share receivable with a period end balance of $0.9 billion,
$1.0 billion, $1.2 billion, $1.3 billion and $1.4 billion and covered ORE and related loss share
receivable with a period end balance of $70.3 million, $59.9 million, $56.8 million, $54.5 million and
$56.4 million at March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31,
2012, respectively.
(b) At March 31, 2013, December 31, 2012 and September 30, 2012, included are $10.0 million, $7.7
million and $10.6 million, respectively, of consumer loans classified as troubled debt restructurings
where the borrower's obligation to the Corporation has been restructured in bankruptcy.







FIRSTMERIT CORPORATION AND
SUBSIDIARIES
NONINTEREST INCOME AND NONINTEREST
EXPENSE DETAIL
(Unaudited)
(Dollars in
thousands)
                   2013     2012         2012         2012         2012
QUARTERLY OTHER    1st qtr  4th qtr      3rd qtr      2nd qtr      1st qtr
INCOME DETAIL
Trust
department       $ 5,741    $  5,662     $  6,124     $  5,730     $  5,627
income
Service charges    12,585   14,247       14,603       14,478       14,409
on deposits
Credit card        10,222   11,167       11,006       11,216       10,180
fees
ATM and other      3,335    3,432        3,680        3,890        3,790
service fees
Bank owned life
insurance          4,897    3,067        3,094        2,923        3,056
income
Investment
services and       2,415    2,147        2,208        2,388        2,247
insurance
Investment
securities         (9)      2,425        553          548          260
gains, net
Loan sales and
servicing          7,863    7,946        7,255        5,139        6,691
income
Other operating    10,343   11,559       6,402        8,989        5,466
income
Total Other      $ 57,392   $  61,652    $  54,925    $  55,301    $  51,726
Income
                   2013     2012         2012         2012         2012
QUARTERLY OTHER    1st qtr  4th qtr      3rd qtr      2nd qtr      1st qtr
EXPENSES DETAIL
Salaries and     $ 46,391   $  45,988    $  43,806    $  48,766    $  45,710
wages
Pension and
employee           11,515   15,572       14,255       12,832       18,263
benefits
Net occupancy      8,282    7,114        8,077        7,971        8,592
expense
Equipment          7,349    7,398        7,143        7,598        7,104
expense
Taxes, other
than income        1,922    1,924        2,051        2,020        1,955
taxes
Stationery,
supplies and       2,096    2,162        2,210        2,285        2,143
postage
Bankcard, loan
processing and     7,840    9,260        8,424        8,858        7,653
other costs
Advertising        2,070    2,774        2,472        2,280        1,684
Professional       5,410    6,119        4,702        9,307        3,352
services
Telephone          1,177    1,230        1,316        1,379        1,398
Amortization of    317      444          456          483          483
intangibles
FDIC insurance     3,526    1,738        1,832        3,463        3,720
expense
Other operating    9,030    10,458       11,843       11,835       11,711
expense
Total Other      $ 106,925  $  112,181   $  108,587   $  119,077   $  113,768
Expenses

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR NONCOVERED LOAN LOSSES - Net Charge-off Detail
(Unaudited)                 Quarters ended                      Year ended
(Dollars in thousands)      March 31,                           December 31,
                            2013                2012            2012
Allowance for noncovered
loan losses - beginning of  $      98,942       $  107,699      $  107,699
period
Loans charged off:
Commercial                  2,672               6,999           28,648
Mortgage                    270                 862             3,964
Installment                 4,594               5,238           18,029
Home equity                 1,306               2,324           7,249
Credit cards                1,403               1,583           6,171
Leases                      —                   —               144
Overdrafts                  531                 411             1,700
Total                       10,776              17,417          65,905
Recoveries:
Commercial                  1,245               694             5,626
Mortgage                    43                  35              235
Installment                 2,469               3,180           11,635
Home equity                 347                 645             2,819
Credit cards                513                 630             2,138
Manufactured housing        27                  22              59
Leases                      89                  37              38
Overdrafts                  136                 195             622
Total                       4,869               5,438           23,172
Net charge-offs             5,907               11,979          42,733
Provision for noncovered    5,808               8,129           33,976
loan losses
Allowance for noncovered    $      98,843       $  103,849      $  98,942
loan losses-end of period
Average noncovered loans    $      8,735,307    $  7,781,449    $  8,089,317
(a)
Ratio to average noncovered
loans (a):
(Annualized) noncovered net 0.27             %  0.62         %  0.53         %
charge-offs
Provision for noncovered    0.27             %  0.42         %  0.42         %
loan losses
Noncovered Loans,           $      8,779,970    $  7,863,209    $  8,731,659
period-end (a)
Allowance for credit losses $      103,784      $  109,259      $  104,375
(a):
To (annualized) net         4.33                2.27            2.44
charge-offs
Allowance for noncovered
loan losses (a):
To period-end noncovered    1.13             %  1.32         %  1.13         %
loans
To (annualized) net         4.13                2.16            2.32
noncovered charge-offs
(a) Excludes covered loans and loss share receivable.



FirstMerit Corporation
Analysts: Thomas O'Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075

SOURCE FirstMerit Corporation

Website: http://www.firstmerit.com
 
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