FirstMerit (FMER) 8-K Firstmerit Reports Third Quarter 2004 Eps of $0.37

EXHIBIT 99.1

For Release: October 21, 2004, 7:30 a.m. EDT

For Information Contact: Analysts: Tom O’Malley (330) 384-7109 Media: Jacque Sir Louis (330) 849-8877

FIRSTMERIT REPORTS THIRD QUARTER
2004 EPS OF $0.37

AKRON, Ohio, October 21, 2004— FirstMerit Corporation (Nasdaq: FMER) today announced third quarter 2004 net income of $31.1 million, or $0.37 per diluted share, compared with $39.3 million, or $0.46 per diluted share for the 2003 third quarter. Net interest income for the quarter was $11.1 million lower than the year ago quarter due to contraction in the net interest margin and a decline in average earning assets.

The sale of manufactured housing loans at the end of 2003 contributed to the current quarter’s comparably lower net interest income. However, the Company realized a more than offsetting $13.6 million reduction in the provision for loan losses from the year ago quarter due to improvement in credit quality and sale of the manufactured housing loans. The Company’s credit quality results have strengthened in part as a result of the sale of the manufactured housing loan portfolio and other select commercial loans sold during the second quarter of this year. The annualized return on average equity (“ROE”) and return on average assets (“ROA”) for the third quarter of 2004 were 12.78% and 1.21%, respectively, compared with 15.99% and 1.46% for the third quarter of 2003.

Year-to-date the Company reported net income of $74.8 million, or $0.88 per diluted share, compared with net income of $114.5 million, or $1.35 per diluted share, over the same time period in 2003. ROE and ROA were 10.16% and 0.96% year-to-date, respectively, compared with 15.68% and 1.44% for the prior-year results.

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“We are pleased with the recovery in our credit quality,” said John R. Cochran, chairman and CEO. “We experienced improvement in almost all of our credit measures.”

Mr. Cochran added, “We remain on track for the sustained strengthening of FirstMerit’s asset quality. Given this outlook we redeployed some of our capital this past quarter and bought back over 560,000 shares of our stock. We have an additional 2.4 million shares left outstanding under our current share repurchase authorization and we anticipate being active in the market over the next few quarters.”

Total operating revenue, which consists of net interest income on a fully-tax equivalent (“FTE”) basis plus non-interest income, but excluding gains from the sale of securities, was $133.2 million for the third quarter of 2004, compared with $155.7 million reported in the third quarter of 2003. FTE net interest income declined 11.1% to $88.1 million, reflecting the impact of a 26 basis point decline in the net interest margin to 3.71% and a 4.7% decline in average earning assets to $9.4 billion.

Non-interest income for the third quarter of 2004 totaled $45.1 million, compared with $57.7 million for the third quarter of 2003. Excluding securities gains and income from a discontinued manufactured housing business, non-interest income was $45.1 million in the third quarter of 2004 and $56.3 million for the same period last year, representing a 19.9% decline. This decline was primarily a result of a $4.7 million reduction in mortgage banking revenues associated with the changing interest rate environment and a $4.8 decline in other income that included a $3.2 million gain on a non-designated derivative associated with mortgage servicing rights in the third quarter of 2003.

Non-interest expense totaled $78.7 million for the third quarter of 2004, compared with $76.2 million for the third quarter of 2003, an increase of 3.3%. The increase resulted primarily from an 8.5% growth in salary and benefits expense, largely due to the net addition of 108 full time equivalent employees (3.4% increase in employees from third quarter 2003).

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“FirstMerit is investing for future revenue gains and improved overall efficiency by hiring new employees and attracting new customers from banks in our market areas that have been affected by recent merger and acquisition activity,” said Mr. Cochran.

Excluding salary expenses, non-interest expense was virtually unchanged compared with the third quarter of 2003. The efficiency ratio for the quarter was 58.9%, compared with 48.8% for the year ago quarter.

As of September 30, 2004, nonperforming assets were $47.8 million, or 0.74% of period-end loans plus other real estate (“ORE”), compared with $48.8 million, or 0.75%, at the end of the second quarter in 2004 and $95.6 million, or 1.32%, one year ago. The lower level of nonperforming assets in the third quarter of 2004 reflects the Company’s sale of non-accrual commercial loans during the second quarter of 2004 and a continued improvement in recent credit quality trends. Net charge-offs for the third quarter of 2004 were $10.4 million, compared with $14.2 million in the second quarter of 2004 and $21.3 million in the prior-year quarter. Annualized net charge-offs for the third quarter of 2004 were 0.64% of average loans compared with 0.87% for the second quarter of 2004 and 1.17% for the third quarter of 2003.

Assets at September 30, 2004 totaled $10.2 billion, down 4.5% from September 30, 2003. This decline primarily reflects the sale of its manufactured housing loans in the fourth quarter of 2003; excluding this business line, the total loan portfolio of $6.5 billion was down 2.2% from the prior year. Mortgage and home equity loans increased 5.2% and 5.1%, respectively, over the past year, providing some offset to a 3.5% decline in commercial loans. Investment securities increased 11.0% from the year ago third quarter, but have decreased 6.1% year to date as the Company has embarked on a balance sheet deleverage strategy. Proceeds from the sale of the manufactured housing business were initially placed in short-term investment securities. The Company is currently not reinvesting the cash flow from the maturing investment portfolio in order to improve its asset/liability position. At the same time the Company is repurchasing its own stock.

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Deposits totaled $7.4 billion at September 30, 2004, a decline of 2.7% over the last twelve months. Time deposits have decreased 9.9% over the past year as the Company shifted its liability mix away from higher cost deposits. Core deposits, defined as demand deposits and non maturity deposits, grew 2.2% over this time period and now account for 62.8% of total deposits as of September 30, 2004 compared with 59.8% at September 30, 2003.

Shareholders’ equity was $979.6 million on September 30, 2004. FirstMerit’s capital position remains strong; tangible equity to assets was 8.34% at the end of the third quarter of 2004 compared with 8.01% at the end of the third quarter of 2003. Common dividends per share were $0.27 for the quarter, a $0.01 increase from the prior-year quarter. Period-end common shares outstanding were 84.3 million, compared with 84.6 million one year ago, in part reflecting the Company repurchases of 562,538 shares during the third quarter 2004.

Third Quarter 2004 Highlights

FirstMerit Names Head of Small Business Banking:FirstMerit’s Board of Directors appointed Michael Benson to lead its small business banking initiatives as senior vice president and business banking segment manager. Benson’s appointment further emphasizes FirstMerit’s commitment to growing its base of ‘owner-managed business’ customers.

Moody’s Investor Service Upgrades FirstMerit’s Financial Strength Rating: Moody’s Investors Service upgraded FirstMerit Bank N.A. credit outlook from negative to stable (A2) based on improvements in its fundamentals arising from the sale of its manufactured housing portfolio at the end of 2003, and improving asset quality in its commercial and consumer loan portfolios. The rating agency added that it expects asset quality to continue to show further improvement, and also noted FirstMerit’s capital adequacy and liquidity profile remain strong.

FirstMerit Enters into Two Year Stock Repurchase Program:At its regular meeting held on July 15, 2004, the Board of Directors of FirstMerit Corporation authorized the repurchase of up to 3,000,000 shares of its currently outstanding common stock. The total authorized share count equates to approximately 3.5 percent of the Company’s outstanding shares. This program supersedes the repurchase program announced May 17, 2001, under which FirstMerit has repurchased shares.

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Conference Call:FirstMerit Corporation will host a conference call today, Thursday, October 21, 2004, at 2:00 p.m., Eastern Time. John R. Cochran, chairman and CEO, Terry Bichsel, executive vice president and CFO, David Lucht, executive vice president and Chief Credit Officer, and Mark DuHamel, senior vice president and Treasurer, will provide an overview of third quarter results and business highlights.

To participate in the conference call, please dial (800) 865-2821 five minutes before start time. No passcode is necessary. If you are unable to participate on the call, a replay will be available beginning approximately 4:30 p.m. on October 21, 2004 through 12:00 a.m. on October 28, 2004, by dialing (800) 642-1687, reservation number 1031703.

The third quarter earnings release will be available at approximately 7:30 a.m. on the Internet at www.firstmerit.com under the Investor Relations portion of the Web site. Any material non-public information that might be disclosed during the conference call will be posted on the web site immediately after the conference call ends.

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $10.2 billion as of September 30, 2004, and 163 banking offices in 24 Ohio and Western Pennsylvania counties. FirstMerit provides a complete range of banking and financial services to consumers and businesses through its wholly-owned subsidiaries which include: FirstMerit Bank, N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd., FirstMerit Credit Life Insurance Company, and FirstMerit Community Development Corporation.

Forward-Looking Statement

This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Company, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, continued softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Company’s business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

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FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Dollars in thousands)
(Unaudited)

							Quarters
	2004			2004			2004			2003			2003
EARNINGS	3rd Qtr			2nd Qtr			1st Qtr			4th Qtr			3rd Qtr
Net interest income FTE (a)	$	88,051			87,782			89,691			95,118			99,022
Provision for loan losses		8,952			14,154			40,984			32,733			22,540
Other income		45,142			46,969			45,867			46,752			57,661
Other expenses		78,687			79,482			77,051			101,167			76,196
FTE adjustment (a)		679			675			689			619			592
After-tax income before cumulative effect of change in accounting principle		31,111			31,028			12,706			7,170			39,278
Cumulative effect of change in accounting principle, net of tax		0			0			0			(688	)		0
Net income		31,111			31,028			12,706			6,482			39,278
Income per diluted share before cumulative effect of change in accounting principle		0.37			0.36			0.15			0.08			0.46
Per share effect of cumulative effect of change in accounting principle		0.00			0.00			0.00			(0.01	)		0.00
Diluted EPS	$	0.37			0.36			0.15			0.07			0.46
PERFORMANCE RATIOS
Return on average assets (ROA)		1.21	%		1.19	%		0.49	%		0.24	%		1.46	%
Return on average common equity (ROE)		12.78	%		12.71	%		5.10	%		2.63	%		15.99	%
Net interest margin FTE (a)		3.71	%		3.66	%		3.74	%		3.86	%		3.97	%
Efficiency ratio		58.92	%		59.44	%		56.70	%		70.46	%		48.80	%
Number of full-time equivalent employees		3,295			3,336			3,235			3,021			3,187
MARKET DATA
Book value/common share	$	11.62			11.28			11.82			11.65			11.64
Period-end common share mkt value		26.31			26.37			26.05			27.11			24.74
Market as a % of book		226	%		234	%		220	%		233	%		213	%
Cash dividends/common share	$	0.27			0.26			0.26			0.26			0.26
Common stock dividend payout ratio		72.97	%		72.22	%		173.33	%		371.43	%		56.52	%
Average basic common shares		84,544			84,809			84,771			84,642			84,505
Average diluted common shares		84,962			85,149			85,186			85,086			84,982
Period end common shares		84,302			84,829			84,802			84,724			84,565
Common shares repurchased		562,538			—			—			—			—
Common stock market capitalization	$	2,217,986			2,236,941			2,209,092			2,296,868			2,092,138
ASSET QUALITY
Gross charge-offs	$	16,119			21,341			23,666			31,896			26,870
Net charge-offs		10,403			14,183			18,276			26,225			21,260
Allowance for loan losses		106,110			107,561			120,261			97,553			120,472
Nonperforming assets (NPAs)		47,789			48,819			88,472			81,166			95,602
Net charge-off/average loans ratio		0.64	%		0.87	%		1.13	%		1.48	%		1.17	%
Allowance for loan losses/period-end loans		1.64	%		1.65	%		1.85	%		1.49	%		1.66	%
NPAs/loans and other real estate		0.74	%		0.75	%		1.36	%		1.24	%		1.32	%
Allowance for loan losses/nonperforming loans		253.45	%		261.67	%		148.09	%		132.47	%		134.34	%
CAPITAL & LIQUIDITY
Period-end tangible equity to assets		8.34	%		7.94	%		8.32	%		8.16	%		8.01	%
Average equity to assets		9.44	%		9.39	%		9.58	%		9.28	%		9.15	%
Average equity to loans		14.96	%		15.02	%		15.34	%		13.91	%		13.53	%
Average loans to deposits		86.79	%		87.95	%		87.68	%		92.55	%		93.75	%
AVERAGE BALANCES
Assets	$	10,262,464			10,465,272			10,456,439			10,531,679			10,646,746
Deposits		7,459,927			7,437,054			7,442,121			7,594,040			7,680,840
Loans		6,474,512			6,540,974			6,525,147			7,027,978			7,200,899
Earning assets		9,441,368			9,658,873			9,651,878			9,771,796			9,903,130
Shareholders’ equity		968,697			982,195			1,001,257			977,429			974,342
ENDING BALANCES
Assets	$	10,164,098			10,378,155			10,450,306			10,473,635			10,648,301
Deposits		7,377,108			7,402,800			7,381,722			7,502,784			7,578,506
Loans		6,461,741			6,520,001			6,507,836			6,551,599			7,241,540
Goodwill		139,245			139,245			139,245			139,245			139,245
Intangible assets		4,869			5,091			5,314			5,536			5,759
Earning assets		9,377,760			9,552,721			9,693,976			9,676,415			9,869,693
Total shareholders’ equity		979,640			957,095			1,002,272			987,175			986,163

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.

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CONSOLIDATED BALANCE SHEETS
FIRSTMERIT CORPORATION AND SUBSIDIARIES
(in thousands)
(Unaudited, except December 31, 2003, which is derived from the
audited financial statements)

	September 30			December 31			September 30
	2004			2003			2003
ASSETS
Cash and due from banks	$	184,428			199,049			218,619
Investment securities (at fair value) and federal funds sold		2,874,878			3,061,497			2,590,456
Loans held for sale		41,141			63,319			37,697
Commercial loans		3,289,907			3,352,014			3,409,925
Mortgage loans		633,545			614,073			602,244
Installment loans		1,631,269			1,668,421			1,670,973
Home equity loans		665,127			637,749			632,758
Credit card loans		140,635			144,514			139,202
Manufactured housing loans		—			—			634,694
Leases		101,258			134,828			151,744
Total loans		6,461,741			6,551,599			7,241,540
Less allowance for loan losses		(106,110	)		(97,553	)		(120,472	)
Net loans		6,355,631			6,454,046			7,121,068
Premises and equipment, net		120,891			119,079			111,452
Goodwill		139,245			139,245			139,245
Intangible assets		4,869			5,536			5,759
Accrued interest receivable and other assets		443,015			431,864			424,005
Total assets	$	10,164,098			10,473,635			10,648,301
LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand-non-interest bearing	$	1,388,745			1,346,574			1,357,835
Demand-interest bearing		814,103			773,514			742,619
Savings and money market accounts		2,430,188			2,461,265			2,431,555
Certificates and other time deposits		2,744,072			2,921,431			3,046,497
Total deposits		7,377,108			7,502,784			7,578,506
Securities sold under agreements to repurchase		1,361,442			1,525,804			1,390,434
Wholesale borrowings		300,784			311,038			542,572
Accrued taxes, expenses, and other liabilities		145,124			146,834			150,626
Total liabilities		9,184,458			9,486,460			9,662,138
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; 0, 0 and 41,011 shares outstanding at September 30, 2004, December 31, 2003 and September 30, 2003, respectively		—			—			987
Common stock, without par value:
authorized 300,000,000 shares; issued 92,026,350 at September 30, 2004, December 31, 2003 and September 30, 2003		127,937			127,937			127,937
Capital surplus		110,296			110,473			112,052
Accumulated other comprehensive loss		(13,385	)		(9,475	)		(25,402	)
Retained earnings		951,319			943,492			959,232
Treasury stock, at cost, 7,724,341, 7,302,057 and 7,461,239 shares at September 30, 2004, December 31, 2003 and September 30, 2003, respectively		(196,527	)		(185,252	)		(188,643	)
Total shareholders’ equity		979,640			987,175			986,163
Total liabilities and shareholders’ equity	$	10,164,098			10,473,635			10,648,301

The accompanying notes are an integral part of the consolidated financial statements.

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FIRSTMERIT CORPORATION AND SUBSIDIARIES
Average Consolidated Balance Sheets
(Unaudited)
(Dollars in thousands)

	Quarterly Periods
	Sept 30,			June 30,			March 31,			Dec 31,			Sept 30,
	2004			2004			2004			2003			2003
ASSETS
Cash and due from banks	$	219,025			226,637			212,358			198,302			197,597
Investment securities/fed funds sold		2,913,395			3,054,655			3,072,724			2,687,500			2,633,880
Loans held for sale		53,461			63,244			54,007			56,318			68,351
Commercial loans		3,286,775			3,368,633			3,355,159			3,395,863			3,408,017
Mortgage loans		637,796			628,381			616,970			619,574			575,100
Installment loans		1,646,826			1,640,665			1,644,343			1,680,752			1,635,420
Home equity loans		654,882			642,369			638,549			632,369			629,465
Credit card loans		141,751			141,460			143,497			141,333			139,931
Manufactured housing loans		—			—			—			413,796			653,538
Leases		106,482			119,466			126,629			144,291			159,428
Total loans		6,474,512			6,540,974			6,525,147			7,027,978			7,200,899
Less allowance for loan losses		107,111			118,808			97,033			110,248			119,466
Net loans		6,367,401			6,422,166			6,428,114			6,917,730			7,081,433
Total earning assets		9,441,368			9,658,873			9,651,878			9,771,796			9,903,130
Premises and equipment, net		121,672			120,798			119,728			120,386			112,996
Accrued interest receivable and other assets		587,510			577,772			569,508			551,443			552,489
TOTAL ASSETS	$	10,262,464			10,465,272			10,456,439			10,531,679			10,646,746
LIABILITIES
Deposits:
Demand-non-interest bearing	$	1,396,593			1,402,273			1,330,056			1,348,374			1,340,484
Demand-interest bearing		809,707			814,718			767,287			755,093			748,646
Savings and money market accounts		2,495,659			2,492,318			2,483,451			2,508,706			2,466,018
Certificates and other time deposits		2,757,968			2,727,745			2,861,327			2,981,867			3,125,692
Total deposits		7,459,927			7,437,054			7,442,121			7,594,040			7,680,840
Securities sold under agreements to repurchase		1,394,398			1,589,014			1,547,575			1,340,204			1,289,908
Wholesale borrowings		300,477			320,222			310,767			462,998			542,171
Total funds		9,154,802			9,346,290			9,300,463			9,397,242			9,512,919
Accrued taxes, expenses and other liabilities		138,965			136,787			154,719			157,008			159,485
Total liabilities		9,293,767			9,483,077			9,455,182			9,554,250			9,672,404
SHAREHOLDERS’ EQUITY
Preferred stock		—			—			—			500			1,006
Common stock		127,937			127,937			127,937			127,937			127,937
Capital surplus		110,297			110,902			110,672			111,219			111,854
Accumulated other comprehensive income		(29,493	)		(13,730	)		(1,457	)		(32,027	)		(27,000	)
Retained earnings		950,094			940,726			948,521			956,770			950,316
Treasury stock		(190,138	)		(183,640	)		(184,416	)		(186,970	)		(189,771	)
Total shareholders’ equity		968,697			982,195			1,001,257			977,429			974,342
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	10,262,464			10,465,272			10,456,439			10,531,679			10,646,746

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CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
FIRSTMERIT CORPORATION AND SUBSIDIARIES
(Unaudited)
(In thousands except per share data)

	Three months ended						Nine months ended
	September 30,						September 30,
	2004			2003			2004			2003
Interest income:
Interest and fees on loans, including held for sale	$	96,374			115,841			287,127			356,713
Interest and dividends on investment securities and federal funds sold		27,454			23,936			84,886			76,542
Total interest income		123,828			139,777			372,013			433,255
Interest expense:
Interest on deposits:
Demand-interest bearing		579			272			1,448			838
Savings and money market accounts		5,009			4,351			13,835			14,508
Certificates and other time deposits		19,848			23,950			61,077			79,922
Interest on securities sold under agreements to repurchase		6,668			4,776			19,077			14,049
Interest on wholesale borrowings		4,352			7,998			13,095			24,824
Total interest expense		36,456			41,347			108,532			134,141
Net interest income		87,372			98,430			263,481			299,114
Provision for loan losses		8,952			22,540			64,090			69,478
Net interest income after provision for loan losses		78,420			75,890			199,391			229,636
Other income:
Trust department income		5,228			5,153			16,280			15,481
Service charges on deposits		15,903			16,823			47,027			47,003
Credit card fees		9,581			10,322			27,791			31,037
ATM and other service fees		3,168			3,124			8,987			9,215
Bank owned life insurance income		2,992			3,238			9,201			9,626
Investment services and insurance		2,931			2,825			10,290			9,259
Manufactured housing income		5			387			155			1,446
Investment securities gains, net		29			992			1,511			6,964
Loan sales and servicing income		2,694			7,415			7,137			18,026
Other operating income		2,611			7,382			9,599			15,337
Total other income		45,142			57,661			137,978			163,394
Other expenses:
Salaries, wages, pension and employee benefits		42,160			38,860			122,391			112,487
Net occupancy expense		5,546			5,274			17,089			16,817
Equipment expense		3,140			3,535			9,998			11,105
Stationery, supplies and postage		2,606			2,801			7,895			8,566
Bankcard, loan processing and other costs		6,261			7,533			17,952			21,334
Professional services		2,780			2,812			9,903			8,173
Amortization of intangibles		222			222			667			666
Other operating expense		15,972			15,159			49,325			46,637
Total other expenses		78,687			76,196			235,220			225,785
Income before income tax expense		44,875			57,355			102,149			167,245
Federal income taxes		13,764			18,077			27,304			52,758
Net income	$	31,111			39,278			74,845			114,487
Other comprehensive income (loss), net of tax expense (benefit):
Unrealized securities’ holding gains (losses), net of tax expense (benefit), arising during period		28,235			(22,132	)		(2,928	)		(24,799	)
Less: reclassification adjustment for securities’ gains (losses) realized in net income, net of tax expense (benefit)		(19	)		(645	)		(982	)		(4,527	)
Net unrealized losses, net of tax expense (benefit)		28,216			(22,777	)		(3,910	)		(29,326	)
Comprehensive income	$	59,327			16,501			70,935			85,161
Net income applicable to common shares	$	31,111			39,261			74,845			114,434
Net income used in diluted EPS calculation		31,119			39,285			74,867			114,511
Weighted average number of common shares outstanding — basic		84,544			84,505			84,707			84,496
Weighted average number of common shares outstanding — diluted		84,962			84,982			85,087			84,883
Basic Earnings per Share	$	0.36			0.46			0.88			1.35
Diluted Earnings per Share	$	0.37			0.46			0.88			1.35
Dividend per Share	$	0.27			0.26			0.79			0.76

The accompanying notes are an integral part of the consolidated financial statements.

PAGE 9

FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Statements of Income and Comprehensive Income
(Dollars in thousands, except share data)
(Unaudited)

	Quarterly Results
	2004		2004			2004		2003			2003
	3rd Q		2nd Q			1st Q		4th Q			3rd Q
Interest and fees on loans, including held for sale	$	96,374		94,126			96,627		109,118			115,841
Interest and dividends — securities and federal funds sold		27,454		28,221			29,211		24,896			23,936
Total interest income		123,828		122,347			125,838		134,014			139,777
Interest on deposits:
Demand-interest bearing		579		503			366		313			272
Savings and money market accounts		5,009		4,512			4,314		4,473			4,351
Certificates and other time deposits		19,848		19,598			21,631		23,033			23,950
Securities sold under agreements to repurchase		6,668		6,271			6,138		4,928			4,776
Wholesale borrowings		4,352		4,356			4,387		6,768			7,998
Total interest expense		36,456		35,240			36,836		39,515			41,347
Net interest income		87,372		87,107			89,002		94,499			98,430
Provision for loan losses		8,952		14,154			40,984		32,733			22,540
Net interest income after provision for loan losses		78,420		72,953			48,018		61,766			75,890
Other income:
Trust department income		5,228		5,696			5,356		5,484			5,153
Service charges on deposits		15,903		15,705			15,419		16,256			16,823
Credit card fees		9,581		9,546			8,664		9,615			10,322
ATM and other service fees		3,168		3,071			2,748		2,905			3,124
Bank owned life insurance income		2,992		3,083			3,126		3,245			3,238
Investment services and insurance		2,931		3,527			3,832		2,930			2,825
Manufactured housing income		5		5			145		346			387
Investment securities gains (losses), net		29		1,412			70		(1,390	)		992
Loan sales and servicing income		2,694		1,584			2,859		2,625			7,415
Other operating income		2,611		3,340			3,648		4,736			7,382
Total other income		45,142		46,969			45,867		46,752			57,661
Other expenses:
Salaries, wages, pension and employee benefits		42,160		40,389			39,842		38,682			38,860
Net occupancy expense		5,546		5,526			6,017		5,301			5,274
Equipment expense		3,140		3,323			3,535		3,377			3,535
Stationery, supplies and postage		2,606		2,577			2,712		2,976			2,801
Bankcard, loan processing and other costs		6,261		5,988			5,703		6,706			7,533
Professional services		2,780		3,977			3,146		3,279			2,812
Amortization of intangibles		222		222			223		222			222
Other operating expenses		15,972		17,480			15,873		40,624			15,159
Total other expenses		78,687		79,482			77,051		101,167			76,196
Income before federal income taxes		44,875		40,440			16,834		7,351			57,355
Federal income taxes		13,764		9,412			4,128		181			18,077
Income after taxes but before cumulative effect of change in accounting principle		31,111		31,028			12,706		7,170			39,278
Cumulative effect of change in accounting principle, net of tax		—		—			—		(688	)		—
Net income	$	31,111		31,028			12,706		6,482			39,278
Other comprehensive income (loss), net of tax expense (benefit)		28,216		(54,954	)		22,828		15,927			(22,777	)
Comprehensive income (loss)	$	59,327		(23,926	)		35,534		22,409			16,501
Net income applicable to common shares		31,111		31,028			12,706		6,465			39,261
Adjusted net income used in diluted EPS calculation		31,119		31,035			12,713		6,489			39,285
Weighted-average common shares — basic		84,544		84,809			84,771		84,642			84,505
Weighted-average common shares — diluted		84,962		85,149			85,186		85,086			84,982
Basic net income per share	$	0.36		0.37			0.15		0.07			0.46
Diluted net income per share	$	0.37		0.36			0.15		0.07			0.46

PAGE 10

FIRSTMERIT CORPORATION AND SUBSIDIARIES
Asset Quality Information
(Dollars in thousands, except ratios)
(Unaudited, except December 31,2003 annual period which
is derived from the audited financial statements)

	Quarterly Periods															Annual Period
	Sep 30			June 30			Mar 31			Dec 31			Sep 30			Dec 31,
Allowance for Loan Losses	2004			2004			2004			2003			2003			2003
Balance at beginning of period	$	107,561			120,261			97,553			120,472			119,192			122,790
Allowance related to loans sold		—			(12,671	)		—			(29,427	)		—			(29,427	)
Provision for loan losses		8,952			14,154			40,984			32,733			22,540			102,211
Charge-offs		16,119			21,341			23,666			31,896			26,870			119,877
Recoveries		5,716			7,158			5,390			5,671			5,610			21,856
Net charge-offs		10,403			14,183			18,276			26,225			21,260			98,021
Balance at end of period	$	106,110			107,561			120,261			97,553			120,472			97,553
Ratios
Provision for loan losses as a % of average loans		0.55	%		0.87	%		2.53	%		1.85	%		1.24	%		1.43	%
Net charge-offs as a % of average loans		0.64	%		0.87	%		1.13	%		1.48	%		1.17	%		1.37	%
Allowance as a % of period-end loans		1.64	%		1.65	%		1.85	%		1.49	%		1.66	%		1.49	%
Allowance as a % of nonperforming loans		253.45	%		261.67	%		148.09	%		132.47	%		134.34	%		132.47	%
Asset Quality
Impaired loans:
Nonaccrual	$	33,812			33,080			71,596			63,388			77,381			63,388
Restructured		—			—			—			35			40			35
Total impaired loans		33,812			33,080			71,596			63,423			77,421			63,423
Other nonperforming loans:
Nonaccrual		8,054			8,025			9,611			10,216			12,253			10,216
Restructured		—			—			—			—			—			—
Total other nonperforming loans		8,054			8,025			9,611			10,216			12,253			10,216
Total nonperforming loans		41,866			41,105			81,207			73,639			89,674			73,639
Other real estate (“ORE”)		5,923			7,714			7,265			7,527			5,928			7,527
Total nonperforming assets (“NPAs”)	$	47,789			48,819			88,472			81,166			95,602			81,166
NPAs as % of period-end loans + ORE		0.74	%		0.75	%		1.36	%		1.24	%		1.32	%		1.24	%
Past due 90 days or more & accruing interest	$	30,882			18,387			20,995			27,515			32,439			27,515

PAGE 11

FIRSTMERIT CORPORATION AND SUBSIDIARIES
(Dollars in thousands) (Unaudited)

	2004		2004		2004		2003			2003
QUARTERLY OTHER INCOME DETAIL	3rd Qtr		2nd Qtr		1st Qtr		4th Qtr			3rd Qtr
Trust department income	$	5,228		5,696		5,356		5,484			5,153
Service charges on deposits		15,903		15,705		15,419		16,256			16,823
Credit card fees		9,581		9,546		8,664		9,615			10,322
ATM and other service fees		3,168		3,071		2,748		2,905			3,124
Bank owned life insurance income		2,992		3,083		3,126		3,245			3,238
Investment services and insurance		2,931		3,527		3,832		2,930			2,825
Manufactured housing income		5		5		145		346			387
Investment securities gains (losses), net		29		1,412		70		(1,390	)		992
Loan sales and servicing income		2,694		1,584		2,859		2,625			7,415
Other operating income		2,611		3,340		3,648		4,736			7,382
Total Other Income	$	45,142		46,969		45,867		46,752			57,661

	2004		2004		2004		2003		2003
QUARTERLY OTHER EXPENSES DETAIL	3rd Qtr		2nd Qtr		1st Qtr		4th Qtr		3rd Qtr
Salaries, wages, pension and employee benefits	$	42,160		40,389		39,842		38,682		38,860
Net occupancy expense		5,546		5,526		6,017		5,301		5,274
Equipment expense		3,140		3,323		3,535		3,377		3,535
Taxes, other than federal income taxes		1,387		1,406		1,448		621		1,613
Stationery, supplies and postage		2,606		2,577		2,712		2,976		2,801
Bankcard, loan processing and other costs		6,261		5,988		5,703		6,706		7,533
Advertising		1,807		1,554		586		1,276		518
Professional services		2,780		3,977		3,146		3,279		2,812
Telephone		1,146		1,221		1,147		1,068		1,001
Amortization of intangibles		222		222		223		222		222
Other operating expense		11,632		13,299		12,692		37,659		12,027
Total Other Expenses	$	78,687		79,482		77,051		101,167		76,196

PAGE 12

FIRSTMERIT CORPORATION AND SUBSIDIARIES
Allowance for Loan Losses — Net Charge-off Detail
(Dollars in thousands)
(Unaudited)

	Quarters ended						Nine months ended
	September 30,						September 30,
	2004			2003			2004			2003
Allowance for loan losses — beginning of period	$	107,561			119,192			97,553			122,790
Loans charged off:
Commercial		2,866			5,532			20,828			22,873
Mortgage		306			456			598			753
Installment		8,540			10,384			26,762			31,025
Home equity		995			1,016			2,322			2,691
Credit cards		3,009			2,972			8,705			9,264
Manufactured housing		130			5,761			443			17,180
Leases		273			749			1,468			4,195
Total		16,119			26,870			61,126			87,981
Recoveries:
Commercial		1,477			521			4,841			1,803
Mortgage		—			3			32			7
Installment		2,747			3,066			8,788			9,049
Home equity		392			361			1,073			855
Credit cards		791			595			2,265			1,532
Manufactured housing		219			920			896			2,463
Leases		90			144			369			476
Total		5,716			5,610			18,264			16,185
Net charge-offs		10,403			21,260			42,862			71,796
Allowance related to loans sold		—			—			(12,671	)		—
Provision for loan losses		8,952			22,540			64,090			69,478
Allowance for loan losses — end of period	$	106,110			120,472			106,110			120,472
Average loans outstanding	$	6,474,512			7,200,899			6,513,403			7,175,975
Ratio to average loans:
(Annualized) net charge-offs		0.64	%		1.17	%		0.88	%		1.34	%
Provision for loan losses		0.55	%		1.24	%		1.31	%		1.29	%
Loans outstanding — period-end	$	6,461,741			7,241,540			6,461,741			7,241,540
Allowance for loan losses:
As a percent of period-end loans outstanding		1.64	%		1.66	%		1.64	%		1.66	%
As a multiple of (annualized) net charge-offs		2.56			1.43			1.85			1.26

PAGE 13