 Investor Presentation Fourth Quarter 2012 Exhibit 99.1 |
 2 Safe Harbor Statement Discussions and statements in this presentation that are not statements of historical fact (including without limitation statements that include terms such as “will,” “may,” “should,” “believe,” “expect,” “anticipate,” “estimate,” “project”, “intend,” and “plan”) and statements regarding Citizens’ future financial and operating results, plans, objectives, expectations and intentions, are forward- looking statements that involve risks and uncertainties, many of which are beyond Citizens’ control or are subject to change. No forward–looking statement is a guarantee of future performance and actual results could differ materially. Factors that could cause or contribute to such differences include, without limitation, risks and uncertainties detailed from time to time in Citizens’ filings with the Securities and Exchange Commission. Other factors not currently anticipated may also materially and adversely affect Citizens’ results of operations, cash flows, financial position and prospects. There can be no assurance that future results will meet expectations. While Citizens believes that the forward-looking statements in this presentation are reasonable, you should not place undue reliance on any forward-looking statement. In addition, these statements speak only as of the date made. Citizens does not undertake, and expressly disclaims any obligation to update or alter any statements, whether as a result of new information, future events or otherwise, except as required by applicable law. |
 Who We Are |
 4 Who We Are Established in 1871 58 largest bank holding company in the U.S. ranked by assets – $9.6 billion assets and $7.2 billion deposits – Presence in 3 Upper Midwest states with 219 branches and 248 ATMs Increased market share in 49% of our counties since 2008 Grew number of new clients by 10% 85% of revenue is Michigan based Pending merger with FirstMerit, expect to close 2Q13 Company Overview 219 Branches / 248 ATMs th |
 5 How We Deliver Our Service Core Banking 87% of revenue Retail consumer Commercial clients up to $5 million loan size Treasury Management: 31% of commercial clients use TM services Public Funds: focus on generating lasting relationships rather than temporary deposits Preferred SBA Lender: dedicated specialists to fast track process. Expertise in other state and local loan programs. Mortgage: accommodate and sell Indirect marine and RV lending Investment Center: introduce single service CD clients to financial consultants Corporate Banking 9% of revenue Asset Based Lending Corporate Specialty healthcare focus in assisted living & skilled nursing Wealth Management 4% of revenue Personal Trust Employee Benefits Institutional Trust |
 Local Delivery of Service Local teams focus on delivery of : Client service Closing pipeline opportunities Referring business 6 Client |
 Where We’ve Been |
 8 Strategically Managed Through Cycle Acquired Michigan-based bank with heavy real estate concentrations in late 2006 Economic downturn and challenging Michigan economy resulted in elevated credit costs Employed strategies to reduce balance sheet risk Enhanced capital – suspended dividend (1Q08) – $200 million common equity raise (3Q08) – $300 million TARP issuance (4Q08) – exchanged sub debt & trust preferred for $200 million of common equity (3Q09) |
 9 Successful Leaders in Key Roles Name Title Held Position Since Cathy Nash Chief Executive Officer Feb. 09 Lisa McNeely Chief Financial Officer Aug. 10 Mark Widawski Chief Credit Officer Feb. 09 Brian Boike Treasurer Oct. 09 Judi Klawinski Director of Core Banking Oct. 09 Ray Green Director of Corporate Banking May 10 Joe Czopek Controller Oct. 09 Ken Duetsch Director of Wealth Management Aug. 11 |
 Since 2009, focused on clients/revenue while working through credit issues 10 $26.6 $20.6 $29.6 $33.1 $34.7 $34.5 $36.2 $32.1 $30.7 $32.8 $37.8 $36.9 $31.7 $31.7 $33.0 $31.8 $0 $10 $20 $30 $40 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Pre-tax Pre-provision Profit* Revenue Focus Problem Asset Resolution Focus Strengthened franchise value Eliminated uncertainty around credit 0% 1% 2% 3% 4% 5% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q112 2Q12 3Q12 4Q12 NPAs / Assets % CRBC Peer Median** Regional Peer Median** (in millions) * Non-GAAP measure, as defined by management, represents net income (loss) excluding income tax provision (benefit) provision for loan losses, securities (gains)/losses, and any impairment charges (including goodwill, credit write downs and fair-value adjustments) caused by this economic cycle. ** Source: SNL Financial MRQ data |
 Strategy from 2009 – 2010 1. Preserved capital by managing assets 2. Grew and maintained reserve levels in recognition of portfolio risk 11 |
 Strategy from 2009 – 2010 3. Aggressively and actively worked out of problem assets 4. Carefully managed capital levels to allow execution of problem asset reduction 12 Dec. 31, 2009 Dec. 31, 2010 Dec. 31, 2011 Dec. 31, 2012* Leverage ratio 9.21% 7.71% 8.45% 9.95% Tier 1 capital ratio 12.52 12.11 13.51 15.67 Total capital ratio 13.93 13.51 14.84 16.93 Tier 1 common equity (non-GAAP) 8.47 6.62 7.24 9.24 * Estimate |
 Focused on Growth |
 Continue to Provide Top Tier Client Service 14 * Surveys conducted by Prime Performance ™ 76 78 80 82 84 86 88 90 Sep 07 Sep 08 Sep 09 Sep 10 Sep 11 Sep 12 Likelihood to Recommend * Citizens' Score PPI Industry Average |
 Rebuild Loan Portfolio Focused on proven competencies – Business owner lending – Corporate lending – structured finance, ABL, healthcare expertise – Indirect marine and RV 15 $8,625 $8,302 $8,097 $7,788 $7,439 $7,138 $6,888 $6,217 $5,704 $5,628 $5,672 $5,530 $5,528 $5,522 $5,431 $5,259 $4,000 $6,000 $8,000 $10,000 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Loan Portfolio Balances (in millions) |
 Mitigate Expected Margin Pressure 16 2.74% 2.75% 3.13% 3.14% 3.35% 3.32% 3.42% 3.53% 3.56% 3.63% 3.62% 3.56% 3.60% 3.57% 3.50% 2.00% 2.50% 3.00% 3.50% 4.00% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Net Interest Margin (FTE) Continue focus on core deposits Reduce single service CD clients Manage liquidity levels to reflect improved credit trends 10,000 12,000 14,000 16,000 18,000 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12 Single Service CD Clients Fed Funds Sold (average) (in millions) |
 Reserve Reductions Follow Improved Metrics 17 Reserve model is historical looking; future modeling will continue to reflect significantly improved credit metrics Ensure reserves reflect reduced portfolio risk and support growth initiatives 0% 1% 2% 3% 4% 5% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Loan Loss Reserves / Loans % CRBC Peer Median* Regional Peer Median* * Source: SNL Financial MRQ data |
 Report Consistent Profits 18 * Excludes discontinued operations Reprice and add new fee income streams to replace lost revenue from regulatory changes * Non-GAAP measure. See Appendix for reconciliation. Continue prudent expense management while adding key revenue generating positions Income (Loss) before Tax* |
 19 4Q12 Highlights Reported consistent quarterly profit from banking operations – Consistent net interest margin at 3.50% – Fee income from core banking services remained solid – Maintained control over operating expenses Loan growth in focused areas of expertise – 7% growth in C&I portfolio since last year – 11% growth in Indirect portfolio since last year – Strong origination and pipeline activity in C&I and Indirect Continued strong credit metrics and core deposit funding base have created a lower risk profile balance sheet |
 Solid Core Earnings 20 2.90% 3.31% 3.58% 3.56% 2.00% 2.20% 2.40% 2.60% 2.80% 3.00% 3.20% 3.40% 3.60% 3.80% 2009 2010 2011 2012 Net Interest Margin (FTE) |
 Maintained Expense Control 21 70.2% 76.8% 79.2% 70.9% 68.4% 70.4% 64.2% 68.2% 67.1% 63.9% 59.9% 61.4% 65.2% 66.0% 65.2% 66.7% 50% 55% 60% 65% 70% 75% 80% 85% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Quarterly Efficiency Ratio 74.21% 67.73% 63.05% 65.75% 50% 55% 60% 65% 70% 75% 80% 2009 2010 2011 2012 Annual Efficiency Ratio |
    Organically Growing Strong Capital Position 0% 2% 4% 6% 8% 10% 12% 14% 16% 18% 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Total Capital Tier 1 Capital Tier 1 Common (non-GAAP) 22 Accelerated resolution of over $920 million of problem assets |
 23 Positioned for Growth Successfully managed through credit cycle with a strategic focus on revenue generation and problem asset resolutions Strategically focused into 2013 to – Continue providing top tier client service – Rebuild loan portfolio – Mitigate expected margin pressure – Evaluate reserve levels – Report consistent profitability Pending merger with FirstMerit Corporation (NASDAQ: FMER) expected to close 2Q13 |
 24 Appendix |
 25 Upper Midwest Franchise MSA Rank Number of Branches Total Deposits ($000) % of Franchise % Market Share Michigan: Flint, MI 1 21 1,413,395 19.2 37.84 Detroit-Warren-Livonia, MI 11 31 1,155,621 15.7 1.19 Saginaw-Saginaw Township North, 1 15 614,662 8.4 30.60 Lansing-East Lansing, MI 3 14 527,318 7.2 10.13 Jackson, MI 2 8 372,527 5.1 23.76 Bay City, MI 3 5 216,496 2.9 20.69 Ann Arbor, MI 12 6 211,446 2.9 3.17 Cadillac, MI 1 7 192,242 2.6 36.30 Owosso, MI 3 6 139,177 1.9 20.48 Sturgis, MI 3 4 101,110 1.4 15.27 Total Michigan 8 156 5,923,119 80.7 3.55 Non-Michigan: Green Bay, WI 5 10 286,993 3.9 4.85 Cleveland-Elyria-Mentor, OH 18 12 279,794 3.8 0.56 Appleton, WI 12 5 105,395 1.4 2.77 Stevens Point, WI 5 2 88,627 1.2 6.89 Platteville, WI 9 4 70,793 1.0 6.02 Total Non-Michigan 60 1,419,936 19.3 Source: SNL Financial as of 6/30/12 |
 26 Continued Stabilization and Diversification in Michigan’s Economy Source: U.S. Bureau of Labor Statistics Michigan Nonfarm Employment Michigan Employment by Industry Nov. 2012 Nov. 2002 $000s % $000s % Trade, Transportation, and Utilities 663.5 16.5% 763.3 16.8% Government 630.3 15.6% 717.9 15.8% Professional Services 578.1 14.3% 606.7 13.4% Health Care 554.9 13.8% 477.8 10.5% Other Manufacturing 391.4 9.7% 479.0 10.6% Leisure and Hospitality 366.3 9.1% 391.1 8.6% Motor Vehicle 211.1 5.2% 362.0 8.0% Financial Activities 198.0 4.9% 213.8 4.7% Other Services 168.7 4.2% 179.2 3.9% Construction 124.2 3.1% 201.7 4.4% Education Services 82.8 2.1% 68.2 1.5% Information 52.5 1.3% 69.1 1.5% Mining and Logging 7.3 0.2% 8.8 0.2% Total Nonfarm 4,029.1 4,538.6 Total Manufacturing 602.5 15.0% 841.0 18.5% in thousands |
 27 Continued Stabilization and Diversification in Michigan’s Economy Source: U.S. Bureau of Labor Statistics and Freddie Mac Unemployment Trends |
 28 Core Earnings Strength (1) Non-GAAP measure, as defined by management, represents total revenue (total net interest income and non-interest income) excluding any securities gains/losses, fair value adjustments on loans held for sale, interest rate swaps, and bank owned life insurance, less non-interest expense excluding any goodwill impairment charges, credit write downs, fair value adjustments and special assessments. Pre-Tax Pre-Provision Profit (non-GAAP) (in millions) 1Q12 2Q12 3Q12 4Q12 Income(loss) from continuing operations $24.9 $303.2 $21.0 $23.2 Income tax (benefit) provision - (276.8) 1.3 2.5 Provision for loan losses 8.4 5.3 5.2 4.3 Investment securities (gains) losses - - - - Net losses (gains) on LHFS (0.9) (0.0) 0.2 1.7 (Gains) losses on ORE (0.4) (0.2) 0.9 (0.6) Merger related expenses - - 4.4 0.6 Fair-value adjustment on BOLI (0.2) 0.1 (0.0) 0.0 Fair-value adjustment on swaps (0.1) 0.1 0.1 (0.1) Pre-Tax Pre-Provision Profit (1) $31.7 $31.7 $33.0 $31.8 Last 12 Months $128.2 |
 29 (in millions) 2009 2010 2011 2012 Income (loss) from continuing operations ($505.7) ($289.1) $6.7 $372.3 Income tax (benefit) provision (29.6) 12.9 (20.2) (273.0) Provision for loan losses 323.8 392.9 138.8 23.2 Goodwill impairment charge 256.3 - - - Net loss on debt extinguishment 15.9 - - - Investment securities (gains) losses (0.0) (13.9) 1.3 - FDIC special assessment 5.4 - - - Net losses (gains) on LHFS 20.1 20.6 (1.8) 1.0 Losses (gains) on ORE 23.3 13.4 12.8 (0.2) Merger related expenses - - - 5.0 Fair-value adjustment on BOLI (0.1) (0.1) 0.2 (0.1) Fair-value adjustment on swaps 0.6 0.8 0.4 0.0 Pre-Tax Pre-Provision Profit (1) $109.9 $137.5 $138.2 $128.2 Core Earnings Strength Pre-Tax Pre-Provision Profit (non-GAAP) (1) Non-GAAP measure, as defined by management, represents total revenue (total net interest income and non-interest income) excluding any securities gains/losses, fair value adjustments on loans held for sale, interest rate swaps, and bank owned life insurance, less non-interest expense excluding any goodwill impairment charges, credit write downs, fair value adjustments and special assessments. |
 30 Quarterly Non-Interest Income Trends (in thousands) 4Q 11 1Q12 2Q12 3Q12 4Q12 Service charges on deposit accounts $9,724 $8,985 $9,355 $9,554 $9,414 Trust fees 3,747 3,602 3,582 3,635 3,782 Mortgage and other loan income 2,705 1,858 1,952 2,028 2,265 Brokerage and investment fees 1,243 1,324 1,331 1,831 1,569 Card-based and other nondeposit fees 4,305 4,265 4,444 4,431 4,367 Net (losses) gains on loans held for sale (217) 916 6 (184) (1,723) Investment securities gains (losses) 38 - - - - Other income 2,818 3,290 1,675 2,415 2,350 Total Non-Interest Income (GAAP) $24,363 $24,240 $22,345 $23,710 $22,024 Investment securities gains (losses) (38) $ - $ - $ - $ - $ Net (losses) gains on loans held for sale 217 (916) (6) 184 1,723 Fair value adjustment on BOLI (100) (205) 118 (31) 47 Fair value adjustment on swaps (46) (61) 74 83 (85) Operating Non-interest Income (Non-GAAP) $24,396 $23,058 $22,531 $23,946 $23,709 |
 31 Annual Non-Interest Income Trends (in thousands) 2009 2010 2011 2012 Service charges on deposit accounts $42,116 $40,336 $39,268 $37,308 Trust fees 14,784 15,603 15,103 14,601 Mortgage and other loan income 12,393 10,486 9,620 8,104 Brokerage and investment fees 5,194 4,579 5,072 6,055 Card-based and other nondeposit fees 6,283 7,057 17,167 17,507 Bankcard fees 7,714 8,859 Net (losses) gains on loans held for sale (20,086) (20,617) 1,808 (984) Net loss on debt extinguishment (15,929) - - - Investment securities gains (losses) 5 13,896 (1,336) - Other income 10,659 14,460 8,555 9,729 Total Non-Interest Income (GAAP) $63,133 $94,659 $95,257 $92,320 Net loss on debt extinguishment $15,929 - $ - $ - $ Investment securities gains (losses) (5) (13,896) 1,336 - Net (losses) gains on loans held for sale 20,086 20,617 (1,808) 984 Fair value adjustment on BOLI (144) (67) 233 (71) Fair value adjustment on swaps 606 782 413 11 Operating Non-interest Income (Non-GAAP) $99,605 $102,095 $95,431 $93,244 |
 32 Quarterly Non-Interest Expense Trends (in thousands) 4Q 11 1Q12 2Q12 3Q12 4Q12 Salaries and employee benefits $30,952 $33,298 $32,801 $33,589 $33,163 Occupancy 6,326 6,696 6,140 6,129 6,031 Professional services * 2,311 2,023 2,465 6,806 2,478 Equipment 3,326 3,303 2,904 2,937 2,858 Data processing services 3,709 4,048 3,721 4,427 4,521 Advertising and public relations 1,298 1,335 1,708 1,847 1,014 Postage and delivery 1,165 1,099 1,119 1,157 1,081 Other loan expenses 3,497 3,186 3,266 3,121 3,650 Losses on other real estate (ORE) 1,081 (385) (173) 941 (596) ORE expenses 995 450 266 323 220 Intangible asset amortization 688 578 545 513 484 Other expense 11,292 11,470 11,577 10,265 10,224 Total Non-Interest Expense (GAAP) $66,640 $67,101 $66,339 $72,055 $65,128 Merger related expenses - - - 4,411 597 Losses (gains) on ORE 1,081 (385) (173) 941 (596) Operating Non-Interest Expense (Non-GAAP) $65,559 $67,486 $66,512 $66,703 $65,127 * Includes merger related expenses |
 33 Annual Non-Interest Expense Trends (in thousands) 2009 2010 2011 2012 Salaries and employee benefits $135,389 $126,384 $123,514 $132,850 Occupancy 26,723 26,963 26,059 24,997 Professional services 11,877 10,550 9,331 13,772 Equipment 11,714 12,482 12,136 12,001 Data processing services 17,692 18,734 16,131 16,717 Advertising and public relations 7,113 6,530 5,848 5,904 Postage and delivery 5,525 4,571 4,543 4,456 Other loan expenses 24,553 20,311 16,007 13,224 Losses on other real estate (ORE) 23,312 13,438 12,768 (214) ORE expenses 4,389 4,970 4,322 1,259 Intangible asset amortization 7,036 3,923 3,027 2,120 Goodwill impairment 256,272 - - - Other expense 53,544 58,231 49,464 43,536 Total Non-Interest Expense (GAAP) $585,139 $307,087 $283,150 $270,622 Goodwill impairment 256,272 $ - $ - $ - $ FDIC Special Assessment 5,351 - - - Merger-related expenses - - - 5,008 Fair-value adjustment on ORE 23,312 13,438 12,768 (214) Operating Non-Interest Expense (Non-GAAP) $300,204 $293,649 $270,382 $265,828 |
 34 ($ in millions) Market % of Credit Rating Value Total Gov't & Agency 2,711 $ 91.0% AAA 15 0.5% AA 137 4.6% A 34 1.2% BAA1, BAA2 & BAA3 51 1.7% BA1 & Lower 14 0.5% Non-rated 18 0.6% Total 2,980 $ 100.0% • Over $2.2 billion in unpledged securities • No OTTI concerns • Over 70% of portfolio are GNMA securities purchased over the last 2 – 3 years ($ in millions) Book Market TEY* Duration Type Value Value (%) (years) MBS Agency 893 $ 933 $ 2.61% 1.46 CMO - Agency 594 601 1.82% 3.54 CMO - Non-agency 60 61 3.43% 2.52 Municipals 97 103 6.21% 2.50 Total Available for Sale 1,644 $ 1,698 $ 2.57% 2.31 MBS Agency 844 $ 883 $ 2.99% 2.18 CMO - Agency 283 293 1.96% 1.22 Municipals 99 106 6.00% 3.54 Total Held to Maturity 1,226 $ 1,282 $ 2.99% 2.07 Total Investment Securities 2,870 $ 2,980 $ 2.75% 2.21 Investment Portfolio at December 31, 2012 * Taxable equivalent yield, except for Municipal yields which are before tax effect Effective Management of Securities Portfolio Provides Source of Liquidity |
 35 ($ in millions) 12/31/09 12/31/10 3/31/11 6/30/11 9/30/11 12/31/11 3/31/12 6/30/12 9/30/12 12/31/12** Tier 1 capital $ 1,067 $ 777 $ 706 $ 727 $ 758 $ 773 $ 795 $ 860 $ 878 $ 892 Qualifying LLR 109 83 76 74 75 73 74 74 73 72 Qualifying capital securities 10 7 3 3 3 3 - - - - Total risk-based capital $ 1,186 $ 867 $ 785 $ 805 $ 836 $ 850 $ 869 $ 934 $ 951 $ 964 Tier 1 capital $ 1,067 $ 777 $ 706 $ 727 $ 758 $ 773 $ 795 $ 860 $ 878 $ 892 Qualifying capital securities (74) (74) (74) (74) (74) (74) (74) (74) (74) (74) Preferred stock (272) (278) (280) (282) (283) (285) (287) (289) (291) (292) Tier 1 common equity $ 721 $ 425 $ 352 $ 371 $ 401 $ 415 $ 435 $ 497 $ 514 $ 526 Total Capital Ratio 13.93% 13.51% 13.24% 13.77% 14.14% 14.84% 14.97% 15.96% 16.35% 16.93% Tier 1 Capital Ratio 12.52% 12.11% 11.90% 12.43% 12.81% 13.51% 13.70% 14.70% 15.09% 15.67% Tier 1 Leverage Ratio 9.21% 7.71% 7.39% 7.83% 8.21% 8.45% 8.71% 9.77% 9.66% 9.95% Tier 1 Common Ratio * 8.47% 6.62% 5.93% 6.36% 6.77% 7.24% 7.49% 8.50% 8.83% 9.24% TCE to TA * 6.16% 4.20% 3.59% 4.05% 4.31% 4.47% 4.68% 7.73% 7.91% 8.15% ** Estimate TA - tangible assets * Non-GAAP TCE - tangible common equity Maintaining Strong Capital Levels |
 36 Non-GAAP Common Equity Ratios ($ in thousands) 4Q11 1Q12 2Q12 3Q12 4Q12* Total assets $9,463 $9,577 $9,670 $9,725 $9,587 Goodwill (318) (318) (318) (318) (318) Other intangible assets (7) (7) (6) (6) (5) Tangible assets $9,137 $9,252 $9,346 $9,401 $9,263 Total shareholders' equity $1,020 $1,045 $1,336 $1,358 $1,371 Goodwill (318) (318) (318) (318) (318) Other intangible assets (7) (7) (6) (6) (5) Tangible equity $694 $720 $1,011 $1,034 $1,047 Preferred stock (285) (287) (289) (291) (292) Tangible common equity $409 $433 $723 $744 $755 Total shareholders' equity $1,020 $1,045 $1,336 $1,358 $1,371 Qualifying capital securities 74 74 74 74 74 Goodwill (318) (318) (318) (318) (318) Disallowed tax assets - - (236) (235) (242) Accumulated other comprehensive income 6 2 10 6 13 Other assets (7) (7) (6) (6) (5) Total Tier 1 capital (regulatory) $773 $795 $860 $878 $892 Qualifying capital securities (74) (74) (74) (74) (74) Preferred stock (285) (287) (289) (291) (292) Total Tier 1 common equity (non-GAAP) $415 $435 $497 $514 $526 Net risk-weighted assets (regulatory) $5,723 $5,804 $5,852 $5,822 $5,695 Tangible common equity to tangible assets ratio 4.47% 4.68% 7.73% 7.91% 8.15% Tier 1 common equity ratio (non-GAAP) 7.24% 7.49% 8.50% 8.83% 9.24% (1) Other assets deducted from Tier 1 capital and risk-weighted assets consist of intangible assets (excluding goodwill) * Estimate (¹) (1) |
 $0 $20 $40 $60 $80 $100 $120 $140 $160 $180 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 37 Proactive Credit Management $0 $50 $100 $150 $200 $250 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 30-89 Day Past Due Portfolio Balances Non-Performing Loans ($ in millions) $0 $50 $100 $150 $200 $250 $300 $350 $400 $450 $500 $550 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Net Charge-Offs $0 $2,000 $4,000 $6,000 $8,000 $10,000 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 |
 $0 $5 $10 $15 $20 $25 $30 $35 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 $0 $20 $40 $60 $80 $100 $120 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 $0 $10 $20 $30 $40 $50 $60 1Q092Q093Q094Q091Q102Q103Q104Q101Q112Q113Q114Q111Q122Q123Q124Q12 38 Commercial & Industrial Portfolio $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 30-89 Day Past Due Portfolio Balances ($ in millions) Non-Performing Loans Net Charge-Offs |
 39 Commercial Portfolio Size Characteristics < $5 million $5 - $10 million > $10 million Total Total Commercial Portfolio Total (millions) 1,823 $ 515 $ 561 $ 2,899 $ # of loans 6,791 74 37 6,902 Average loan size $268,000 $6,954,000 $15,162,000 $420,000 Delinquencies Total (millions) 4 $ - $ - $ 4 $ # of loans 33 - - 33 Average loan size $125,000 - $ - $ $125,000 Nonperforming Loans Total (millions) 27 $ - $ - $ 27 $ # of loans 162 - - 162 Average loan size $164,000 - $ - $ $164,000 Loan size category: |
 $0 $40 $80 $120 $160 $200 $240 $280 $320 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 $0 $20 $40 $60 $80 $100 $120 $140 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 40 Commercial Real Estate Portfolio $0 $400 $800 $1,200 $1,600 $2,000 $2,400 $2,800 $3,200 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 30-89 Day Past Due Portfolio Balances ($ in millions) Non-Performing Loans $0 $20 $40 $60 $80 $100 $120 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 Net Charge-Offs |
 41 Commercial Real Estate Portfolio 35% 42% 14% 4% 5% Southeast Michigan Greater Michigan Ohio Wisconsin Other 22% 23% 16% 13% 5% 3% 2% 2% 1% 11% Retail Medical Warehouse/ Industrial Office Multi-Family Hotel Mixed Use Gas Station/ C.Store Residential Other (<1%) By Collateral By Region |
 $0 $20 $40 $60 $80 $100 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 42 Consumer Portfolio $0 $20 $40 $60 $80 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 30-89 Day Past Due * Portfolio Balances Non-Performing Loans * Net Charge-Offs * $0 $500 $1,000 $1,500 $2,000 $2,500 $3,000 $3,500 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 ($ in millions) $0 $20 $40 $60 $80 $100 $120 $140 $160 1Q09 2Q09 3Q09 4Q09 1Q10 2Q10 3Q10 4Q10 1Q11 2Q11 3Q11 4Q11 1Q12 2Q12 3Q12 4Q12 * Other direct included with Home Equity |
 43 Consumer Portfolio Profiles Home Equity $35,900 avg loan size Indirect (1) $24,300 avg loan size (1) Indirect loans are RV and marine only (no auto) Consumer Portfolio Strong refreshed FICO scores 741 Home Equity 742 Indirect 728 Other Direct 45% of home equity is first lien position Indirect NPLs have been less than $2.6 million, or 0.33% of total, throughout the cycle Other Direct $19,500 avg loan size Residential Mortgage Portfolio $162,000 average loan size 717 refreshed FICO score 67% average original LTV Seasoned portfolio – 52% originated 2004 or earlier Foreclosures are handled by PHH; Michigan does not follow a judicial foreclosure process Michigan 84% Ohio 6% Wisconsin 4% Other 6% |
 44 Non-Performing Loans Commercial Real Estate $20.5 34.7% Commercial $6.2 10.4% Residential Mortgage $17.5 29.7% ($ in millions) Direct Consumer $12.7 21.6% $59.0 million or 1.12% of portfolio Indirect Consumer $2.1 3.5% Loans 90+ Accruing $0.01 Loan loss reserve = $110.4 million Allowance for loan losses to NPLs = 187.2% |
 45 (in millions) 1Q12 2Q12 3Q12 4Q12 Beginning NPAs $102.2 $90.6 $94.0 $86.2 Commercial: Additions 14.0 23.8 4.6 4.8 Payments (5.1) (12.0) (21.0) (7.9) Returned to accruing status (3.9) (0.5) (1.3) - Charge-Offs/ OREO writedown (13.1) (6.0) (6.2) (5.8) Consumer - net change (3.9) 3.4 3.6 4.1 Held For Sale - net change 0.9 (2.4) 15.8 (13.5) OREO - net change (0.6) (3.0) (3.1) 0.1 Ending NPAs $90.6 $94.0 $86.2 $68.0 Aggressive Non-Performing Asset Management Quarterly Non-Performing Asset Activity * * 2Q12 inflows and 3Q12 outflows include a single $14 million relationship * |
 46 Peer Groups Company Name Ticker Company Name Ticker Associated Banc-Corp ASBC Huntington Bancshares Incorporated HBAN Comerica Incorporated CMA KeyCorp KEY Commerce Bancshares, Inc. CBSH MB Financial, Inc. MBFI Fifth Third Bancorp FITB Old National Bancorp ONB First Midwest Bancorp, Inc. FMBI PNC Financial Services Group, Inc. PNC FirstMerit Corporation FMER TCF Financial Corporation TCB Flagstar Bancorp, Inc. FBC Wintrust Financial Corporation WTFC Company Name Ticker Company Name Ticker Associated Banc-Corp ASBC MB Financial, Inc. MBFI BancorpSouth, Inc. BXS National Penn Bancshares, Inc. NPBC Chemical Financial Corporation CHFC Old National Bancorp ONB Commerce Bancshares, Inc. CBSH Park National Corporation PRK Cullen/Frost Bankers, Inc. CFR Sterling Financial Corporation STSA F.N.B. Corporation FNB Susquehanna Bancshares, Inc. SUSQ First Citizens BancShares, Inc. FCNCA TFS Financial Corporation (MHC) TFSL First Midwest Bancorp, Inc. FMBI Trustmark Corporation TRMK FirstMerit Corporation FMER UMB Financial Corporation UMBF Flagstar Bancorp, Inc. FBC Valley National Bancorp VLY Fulton Financial Corporation FULT Wintrust Financial Corporation WTFC Regional Peers Selected Peers |
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