FirstMerit 8K 2006 Financial Information Second Quarter | FMER 21 Jul 06

Exhibit 99.1

2006 Financial Information Second Quarter

Table of Contents


Earnings Release		Pages 1-4

Consolidated Financial Highlights		Page 5

Consolidated Balance Sheets		Page 6

Average Consolidated Balance Sheets		Page 7

Average Consolidated Balance Sheets		Page 8
(Fully-tax Equivalent Interest Rates and Interest Differential)

Consolidated Statements of Income and Comprehensive Income		Page 9

Consolidated Statements of Income and Comprehensive Income		Page 10
(Linked Quarters)

Asset Quality Information		Page 11

Non Interest Income and Non Interest Expense Detail		Page 12

Allowance for Loan Losses – Net Charge-off Detail		Page 13


		FirstMerit Corporation
		III Cascade Plaza
		Akron, Ohio 44308

		Investor Relations:
		Tom O’Malley
		p. 330-384-7109


		For Release July 20, 2006, 7:30 a.m. EST

		Analysts: Tom O’Malley
		(330) 384-7109

FirstMerit Reports Second Quarter
2006 Earnings of $0.35 Per Share

Second Quarter Highlights

	•		Diluted earnings per share of $0.35

	•		Net income of $27.7 million

	•		Return on average common equity of 12.75%

	•		Return on average assets of 1.10%

AKRON, Ohio, — July 20, 2006 —FirstMerit Corporation (Nasdaq: FMER) today announced second quarter 2006 net income of $27.7 million, or $0.35 per diluted share. This compares with $36.1 million, or $0.43 per diluted share, for the second quarter 2005. Returns on average common equity (“ROE”) and average assets (“ROA”) for second quarter were 12.75% and 1.10%, respectively, compared with 15.07% and 1.40% for the second quarter 2005.

For the first six months of 2006, the Company reported net income of $57.6 million, or $0.72 per diluted share, compared with $66.2 million, or $0.79 per diluted share, for the first six months of 2005.

Paul G. Greig, President and Chief Executive Officer, said, “During my first two months, at FirstMerit I visited all of our regions, met with all of our people and a significant number of our customers. I am extremely impressed with our high level of customer service which is essential to the successful execution of our super community banking model. Building on the foundation I saw, we have undertaken a number of actions to make us a stronger company, enhance our relationships with customers, and improve revenue growth and efficiency. The major change was reorganizing around business segments, with business segment leaders reporting to me. This increases our company’s focus on commercial banking and better supports commercial and small business revenue generation. We also realigned the structure of our retail branch system, placing profitability and service responsibility on branch managers and incenting them on those key measures.”

In commenting on the quarter, Greig said, “In addition to absorbing costs associated with the organizational improvements, we also experienced higher credit-related costs driven by a single $4.6 million after-tax charge-off. Given the underlying credit indicators for the quarter, we believe this charge-off to be more of an anomaly than indicative of future

trends. Over the past few years FirstMerit has delivered on its commitment to restoring credit quality and lowering net charge-offs and I expect overall progress to continue in 2006.”

Total revenue, defined as net interest income on a fully tax-equivalent (“FTE”) basis plus noninterest income net of securities transactions, totaled $138.5 million for the second quarter 2006, compared with $138.6 million reported in the second quarter 2005. FTE net interest income was $86.4 million for the second quarter 2006, a decline of $2.1 million, or 2.32%, compared with the year-ago quarter. During the quarter the net interest margin expanded 4 basis points to 3.78%, compared with the second quarter 2005.

The Company expanded its net interest margin amidst a challenging interest rate environment by taking advantage of opportunities within its flexibly structured investment portfolio. For the second quarter 2006, average investment securities accounted for 23.80% of average assets, compared with 27.44% for the second quarter 2005. The $441.6 million, or 15.58%, reduction in the securities portfolio supported a $300.0 million, or 15.92%, reduction of average borrowed funds, along with $129.3 million, or 1.96%, growth in the average loan portfolio. Average commercial loan growth of $168.1 million, or 4.89%, and average home equity loan growth of $68.1 million, or 9.68%, offset declining average balances in the mortgage, installment and lease portfolios.

Noninterest income excluding securities transactions totaled $52.1 million for the second quarter 2006, compared with $50.1 million for the second quarter 2005, an increase of $2.0 million, or 3.90%. Credit card fees increased $1.0 million, or 9.08%, and service charges increased $0.2 million, or 1.18%. Compared with the first quarter 2006, credit card fees increased $0.8 million, or 7.56%, and deposit service charges rose $1.9 million, or 12.10%.

Noninterest expense totaled $85.2 million for the second quarter 2006, compared with $79.4 million for the second quarter 2005. Salary, wages, pension and employee benefits increased $5.4 million, or 12.99%, driven primarily by share-based compensation expense of $3.4 million. Additionally, expenses related to organizational restructurings also increased overall non interest expense during the quarter. The organizational changes are part of the Company’s initiatives to improve efficiency and generate revenue through a realigned and streamlined business structure.

Net charge-offs totaled $13.0 million in the second quarter 2006, compared with $10.3 million for the second quarter 2005, or 0.78% and 0.62% of average loans, respectively. The Company’s longer term trend of improving charge-off levels was interrupted by costs related to a credit relationship that accounted for $6.6 million of the quarter’s total net charge-offs. The Company expects to return to its trend of lower charge-off levels for the balance of 2006. As of June 30, 2006, nonperforming assets were $58.8 million, or 0.86%, of period-end loans plus other real estate, compared with $54.0 million, or 0.82%, at June 30, 2005. Nonperforming assets declined $14.2 million, or 19.41%, from March 31, 2006.

The Company recorded $13.2 million of loan loss provision in the second quarter 2006, compared with loan loss provision of $6.0 million in the second quarter 2005. On June 30, 2006, criticized commercial assets accounted for 6.93% of total commercial loans, compared with criticized commercial asset levels of 7.59% on June 30, 2005.

At June 30 2006, the allowance for loan losses was 1.29% of loans, compared with 1.36% at December 31, 2005. The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments. For comparative purposes the allowance for credit losses was 1.37% at June 30, 2006, compared with 1.45% at December 31, 2005.

Assets at June 30, 2006, totaled $10.3 billion, equivalent to $10.3 billion total at June 30, 2005. Period-end loan growth of $194.4 million, or 2.94%, was driven by a $236.9 million, or 6.90% increase in the commercial lending portfolio, offsetting declines in the mortgage, installment and leasing portfolios.

Deposits totaled $7.4 billion at June 30, 2006, an increase of $228.4 million, or 3.18% from June 30, 2005. Non interest bearing demand deposit accounts (DDA) increased $26.8 million, or 1.86% over that time. For the second quarter of 2006, average deposits increased $104.2 million, or 1.42%, compared with the second quarter of 2005.

Shareholders’ equity was $870.7 million at June 30, 2006. The Company’s capital position remains strong as tangible equity to assets was 7.20% at quarter-end. The common dividend per share paid in the second quarter 2006 was $0.28, a $0.01 increase from the second quarter 2005.

Second Quarter 2006

Conference Call:FirstMerit Corporation will host a conference call today, July 20, 2006, at 2P.M. EST.

To participate in the conference, please dial (877) 493-9121 ten minutes before start time and provide the reservation number 7617207.

The 2006 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 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 $10.3 billion as of June 30, 2006 and 160 banking offices in 24 Ohio and Western Pennsylvania counties. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal wholly-owned subsidiaries include: FirstMerit Bank, N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd., 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.


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


	Quarters
	2006			2006			2005			2005			2005
EARNINGS	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr
Net interest income FTE (a)	$	86,377			86,563			88,152			88,347			88,432
Provision for loan losses		13,159			6,106			16,260			9,974			5,972
Other income		52,078			45,397			47,586			47,846			50,095
Other expenses		85,218			81,899			79,274			78,926			79,397
FTE adjustment (a)		647			590			650			641			655
Net income		27,661			29,964			27,656			36,594			36,145
Diluted EPS		0.35			0.37			0.34			0.43			0.43

PERFORMANCE RATIOS
Return on average assets (ROA)		1.10	%		1.20	%		1.07	%		1.41	%		1.40	%
Return on average common equity (ROE)		12.75	%		13.67	%		11.52	%		14.90	%		15.07	%
Net interest margin FTE (a)		3.78	%		3.80	%		3.73	%		3.70	%		3.74	%
Efficiency ratio		61.39	%		61.90	%		58.26	%		57.81	%		57.14	%
Number of full-time equivalent employees		2,986			3,104			3,057			3,073			3,078

MARKET DATA
Book value/common share	$	10.88			10.91			11.39			11.65			11.69
Period-end common share mkt value		20.94			24.66			25.91			26.79			26.11
Market as a % of book		193	%		226	%		228	%		230	%		223	%
Cash dividends/common share	$	0.28			0.28			0.28			0.28			0.27
Common stock dividend payout ratio		80.00	%		75.68	%		82.35	%		65.12	%		62.79	%
Average basic common shares		79,983			80,374			82,786			83,489			83,603
Average diluted common shares		80,203			80,648			83,082			83,978			83,890
Period end common shares		80,058			79,766			82,335			83,442			83,522
Common shares repurchased		1,329			2,618,588			1,228,293			178,872			145,143
Common stock market capitalization	$	1,676,415			1,967,030			2,133,300			2,235,411			2,180,759

ASSET QUALITY
Gross charge-offs	$	18,038			14,914			22,736			14,207			15,422
Net charge-offs		13,021			9,178			18,379			10,002			10,278
Allowance for loan losses		87,727			87,589			90,661			92,780			92,808
Reserve for unfunded lending commitments		5,716			5,853			6,072			5,857			5,785
Nonperforming assets (NPAs)		58,786			72,941			72,257			51,398			53,985
Net charge-off/average loans ratio		0.78	%		0.56	%		1.09	%		0.60	%		0.62	%
Allowance for loan losses/period-end loans		1.29	%		1.31	%		1.36	%		1.39	%		1.40	%
Allowance for credit losses/period-end loans		1.37	%		1.40	%		1.45	%		1.47	%		1.49	%
NPAs/loans and other real estate		0.86	%		1.09	%		1.08	%		0.77	%		0.82	%
Allowance for loan losses/nonperforming loans		174.80	%		136.22	%		145.61	%		221.46	%		208.74	%
Allowance for credit losses/nonperforming loans		186.19	%		145.32	%		155.36	%		235.44	%		221.76	%

CAPITAL & LIQUIDITY
Period-end tangible equity to assets		7.20	%		7.31	%		7.94	%		8.18	%		8.19	%
Average equity to assets		8.66	%		8.79	%		9.33	%		9.46	%		9.32	%
Average equity to loans		12.93	%		13.27	%		14.22	%		14.66	%		14.58	%
Average loans to deposits		90.63	%		91.58	%		92.11	%		91.73	%		90.16	%

AVERAGE BALANCES
Assets	$	10,051,623			10,111,553			10,211,619			10,295,827			10,329,167
Deposits		7,426,029			7,313,509			7,273,980			7,245,562			7,321,860
Loans		6,730,531			6,697,732			6,699,997			6,646,112			6,601,204
Earning assets		9,174,008			9,245,882			9,368,139			9,465,288			9,489,431
Shareholders’ equity		870,234			888,818			952,715			974,147			962,239

ENDING BALANCES
Assets	$	10,254,773			10,100,717			10,154,359			10,285,329			10,313,955
Deposits		7,402,239			7,510,562			7,233,650			7,352,026			7,173,857
Loans		6,804,769			6,672,102			6,667,327			6,685,462			6,610,385
Goodwill		139,245			139,245			139,245			139,245			139,245
Intangible assets		3,311			3,533			3,756			3,978			4,200
Earning assets		9,315,062			9,193,741			9,256,389			9,419,355			9,491,957
Total shareholders’ equity		870,698			870,552			937,580			972,348			976,016

NOTES:

(a) — Net interest income on a fully tax-equivalent (“FTE”) basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis is not an accounting principle generally accepted in the United States of America.


FIRSTMERIT CORPORATION AND SUBSIDIARIES CONSOLIDATED BALANCE SHEETS (In thousands) (Unaudited, except December 31, 2005, which is derived from the audited financial statements)


	June 30,			December 31,			June 30,
	2006			2005			2005
ASSETS
Cash and due from banks	$	228,690			225,953			201,240
Investment securities (at fair value)		2,436,086			2,546,496			2,828,127
Federal funds sold		25,000			—			890
Loans held for sale		49,207			42,566			52,555
Loans:
Commercial loans		3,659,687			3,519,483			3,422,758
Mortgage loans		618,560			628,581			634,777
Installment loans		1,561,757			1,524,355			1,601,022
Home equity loans		763,585			778,697			737,207
Credit card loans		136,966			145,592			138,335
Leases		64,214			70,619			76,286

Total loans		6,804,769			6,667,327			6,610,385
Less allowance for loan losses		(87,727	)		(90,661	)		(92,808	)

Net loans		6,717,042			6,576,666			6,517,577
Premises and equipment, net		119,233			120,420			118,038
Goodwill		139,245			139,245			139,245
Intangible assets		3,311			3,756			4,200
Accrued interest receivable and other assets		536,959			499,257			452,083

Total assets	$	10,254,773			10,154,359			10,313,955


LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand-non-interest bearing	$	1,466,628			1,523,731			1,439,800
Demand-interest bearing		842,354			830,248			834,315
Savings and money market accounts		2,261,557			2,304,177			2,350,829
Certificates and other time deposits		2,831,700			2,575,494			2,548,913

Total deposits		7,402,239			7,233,650			7,173,857

Securities sold under agreements to repurchase		1,156,346			1,426,037			1,699,337
Wholesale borrowings		658,720			401,104			333,627
Accrued taxes, expenses, and other liabilities		166,770			155,988			131,118

Total liabilities		9,384,075			9,216,779			9,337,939

Commitments and contingencies
Shareholders’ equity:
Preferred stock, without par value: authorized and unissued 7,000,000 shares		—			—			—
Preferred stock, Series A, without par value: designated 800,000 shares; none outstanding		—			—			—
Convertible preferred stock, Series B, without par value: designated 220,000 shares; none outstanding		—			—			—
Common stock, without par value: authorized 300,000,000 shares; issued 92,026,350 at June 30, 2006, December 31, 2005 and June 30, 2005		127,937			127,937			127,937
Capital surplus		105,397			108,210			108,736
Accumulated other comprehensive loss		(62,013	)		(42,850	)		(19,651	)
Retained earnings		1,007,346			994,487			977,052
Treasury stock, at cost, 11,968,035, 9,691,424 and 8,504,487 shares at June 30, 2006, December 31, 2005 and June 30, 2005, respectively		(307,969	)		(250,204	)		(218,058	)

Total shareholders’ equity		870,698			937,580			976,016

Total liabilities and shareholders’ equity	$	10,254,773			10,154,359			10,313,955

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


FIRSTMERIT CORPORATION AND SUBSIDIARIES AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited) (Dollars in thousands)


	Quarterly Periods
	June 30,			March 31,			December 31,			September 30,			June 30,
	2006			2006			2005			2005			2005
ASSETS
Cash and due from banks	$	188,915			194,042			192,189			197,412			197,548
Investment securities/fed funds sold		2,392,208			2,500,021			2,619,248			2,764,724			2,833,818
Loans held for sale		51,269			48,129			48,894			54,452			54,409
Loans:
Commercial loans		3,603,083			3,567,263			3,519,807			3,441,231			3,434,946
Mortgage loans		626,476			630,702			637,877			641,532			641,865
Installment loans		1,526,094			1,513,938			1,556,212			1,594,801			1,601,775
Home equity loans		772,196			775,728			772,757			754,492			704,054
Credit card loans		137,545			141,821			142,743			140,873			137,919
Leases		65,137			68,280			70,601			73,183			80,645

Total loans		6,730,531			6,697,732			6,699,997			6,646,112			6,601,204
Less allowance for loan losses (a)		86,583			90,229			91,916			91,852			96,342


Net loans		6,643,948			6,607,503			6,608,081			6,554,260			6,504,862

Total earning assets		9,174,008			9,245,882			9,368,139			9,465,288			9,489,431

Premises and equipment, net		119,666			120,155			117,387			117,471			118,392
Accrued interest receivable and other assets		655,617			641,703			625,820			607,508			620,138


TOTAL ASSETS	$	10,051,623			10,111,553			10,211,619			10,295,827			10,329,167


LIABILITIES
Deposits:
Demand-non-interest bearing	$	1,455,229			1,462,671			1,488,679			1,457,487			1,470,673
Demand-interest bearing		865,563			848,209			817,009			838,549			834,708
Savings and money market accounts		2,280,657			2,292,865			2,332,528			2,333,331			2,370,280
Certificates and other time deposits		2,824,580			2,709,764			2,635,764			2,616,195			2,646,199


Total deposits		7,426,029			7,313,509			7,273,980			7,245,562			7,321,860

Securities sold under agreements to repurchase		1,212,470			1,295,178			1,443,740			1,478,857			1,385,644
Wholesale borrowings		371,309			433,257			375,167			442,035			498,088


Total funds		9,009,808			9,041,944			9,092,887			9,166,454			9,205,592
Accrued taxes, expenses and other liabilities (a)		171,581			180,791			166,017			155,226			161,336


Total liabilities		9,181,389			9,222,735			9,258,904			9,321,680			9,366,928

SHAREHOLDERS’ EQUITY
Preferred stock		—			—			—			—			—
Common stock		127,937			127,937			127,937			127,937			127,937
Capital surplus		104,477			108,330			108,303			108,564			108,559
Accumulated other comprehensive (loss) income		(54,132	)		(44,150	)		(39,834	)		(25,682	)		(26,883	)
Retained earnings		1,001,647			998,173			994,301			982,419			968,408
Treasury stock		(309,695	)		(301,472	)		(237,992	)		(219,091	)		(215,782	)


Total shareholders’ equity		870,234			888,818			952,715			974,147			962,239


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	10,051,623			10,111,553			10,211,619			10,295,827			10,329,167

AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential

FIRSTMERIT CORPORATION AND SUBSIDIARIES
(Dollars in thousands)


	Three months ended								Year ended								Three months ended
	June 30, 2006								December 31, 2005								June 30, 2005
	Average					Average			Average					Average			Average					Average
	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate
ASSETS
Cash and due from banks	$	188,915								194,485								197,548
Investment securities and federal funds sold:
U.S. Treasury securities and U.S. Government agency obligations (taxable)		2,054,338			20,102		3.92	%		2,416,360			91,814		3.80	%		2,478,319			23,722		3.84	%
Obligations of states and political subdivisions (tax exempt)		88,144			1,490		6.78	%		99,487			6,707		6.74	%		99,756			1,673		6.73	%
Other securities and federal funds sold		249,726			3,823		6.14	%		255,568			12,291		4.81	%		255,743			3,037		4.76	%

Total investment securities and federal funds sold		2,392,208			25,415		4.26	%		2,771,415			110,812		4.00	%		2,833,818			28,432		4.02	%
Loans held for sale		51,269			512		4.01	%		52,740			2,854		5.41	%		54,409			804		5.93	%
Loans		6,730,531			122,990		7.33	%		6,610,509			430,402		6.51	%		6,601,204			105,196		6.39	%

Total earning assets		9,174,008			148,917		6.51	%		9,434,664			544,068		5.77	%		9,489,431			134,432		5.68	%
Allowance for loan losses		(86,583	)							(94,118	)							(96,342	)
Other assets		775,283								729,398								738,530

Total assets	$	10,051,623								10,264,429								10,329,167


LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand — non-interest bearing	$	1,455,229			—		—			1,466,106			—		—			1,470,673			—		—
Demand — interest bearing		865,563			2,583		1.20	%		827,829			5,871		0.71	%		834,708			1,230		0.59	%
Savings and money market accounts		2,280,657			12,079		2.12	%		2,356,813			32,944		1.40	%		2,370,280			7,517		1.27	%
Certificates and other time deposits		2,824,580			29,326		4.16	%		2,647,908			86,764		3.28	%		2,646,199			20,696		3.14	%

Total deposits		7,426,029			43,988		2.38	%		7,298,656			125,579		1.72	%		7,321,860			29,443		1.61	%

Securities sold under agreements to repurchase		1,212,470			12,957		4.29	%		1,409,135			45,423		3.22	%		1,385,644			10,624		3.08	%
Wholesale borrowings		371,309			5,595		6.04	%		431,787			21,449		4.97	%		498,088			5,933		4.78	%

Total interest bearing liabilities		7,554,579			62,540		3.32	%		7,673,472			192,451		2.51	%		7,734,919			46,000		2.39	%
Other liabilities		171,581								158,125								161,336

Shareholders’ equity		870,234								966,726								962,239

Total liabilities and shareholders’ equity	$	10,051,623								10,264,429								10,329,167


Net yield on earning assets	$	9,174,008			86,377		3.78	%		9,434,664			351,617		3.73	%		9,489,431			88,432		3.74	%


Interest rate spread							3.19	%							3.26	%							3.30	%


Notes:		Interest income on tax-exempt securities and loans have been adjusted to a fully-taxable equivalent basis. Nonaccrual loans have been included in the average balances.

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


	Quarters ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Interest income:
Interest and fees on loans, including held for sale	$	123,450			105,975			241,190			206,124
Interest and dividends on investment securities and federal funds sold		24,820			27,802			50,152			55,494

Total interest income		148,270			133,777			291,342			261,618

Interest expense:
Interest on deposits:
Demand-interest bearing		2,583			1,230			4,945			2,186
Savings and money market accounts		12,079			7,517			22,827			13,892
Certificates and other time deposits		29,326			20,696			55,427			41,296
Interest on securities sold under agreements to repurchase		12,957			10,624			24,880			19,465
Interest on wholesale borrowings		5,595			5,933			11,560			10,992

Total interest expense		62,540			46,000			119,639			87,831

Net interest income		85,730			87,777			171,703			173,787
Provision for loan losses		13,159			5,972			19,265			17,586

Net interest income after provision for loan losses		72,571			81,805			152,438			156,201

Other income:
Trust department income		5,744			5,684			11,138			11,189
Service charges on deposits		18,010			17,800			34,076			32,620
Credit card fees		11,478			10,523			22,149			19,934
ATM and other service fees		3,273			3,298			6,381			6,257
Bank owned life insurance income		5,310			3,024			8,296			6,098
Investment services and insurance		2,581			2,828			5,178			5,686
Manufactured housing income		35			40			38			142
Investment securities gains, net		4			(25	)		20			1,847
Loan sales and servicing income		2,833			1,520			4,278			2,653
Other operating income		2,810			5,403			5,921			8,608

Total other income		52,078			50,095			97,475			95,034

Other expenses:
Salaries, wages, pension and employee benefits		46,721			41,351			89,752			80,744
Net occupancy expense		6,120			5,881			12,669			12,417
Equipment expense		2,914			3,002			5,872			6,187
Stationery, supplies and postage		2,403			2,484			4,856			4,945
Bankcard, loan processing and other costs		7,417			5,444			13,244			11,168
Professional services		3,738			3,843			6,501			5,993
Amortization of intangibles		222			222			445			445
Other operating expense		15,683			17,170			33,778			33,409

Total other expenses		85,218			79,397			167,117			155,308

Income before federal income tax expense		39,431			52,503			82,796			95,927
Federal income tax expense		11,770			16,358			25,171			29,694

Net income	$	27,661			36,145			57,625			66,233


Other comprehensive income (loss), net of taxes
Unrealized securities’ holding losses, net of taxes		(8,652	)		18,111			(18,400	)		(4,493	)
Unrealized hedging gain (loss), net of taxes		37			538			(750	)		556
Minimum pension liability adjustment, net of taxes		—			(122	)		—			(305	)
Less: reclassification adjustment for securities’ gains losses realized in net income, net of taxes		3			(16	)		13			1,201

Total other comprehensive income (loss), net of taxes		(8,618	)		18,543			(19,163	)		(5,443	)

Comprehensive income	$	19,043			54,688			38,462			60,790

Net income applicable to common shares	$	27,661			36,145			57,625			66,233

Net income used in diluted EPS calculation	$	27,666			36,152			57,635			66,247

Weighted average number of common shares outstanding — basic		79,983			83,603			80,177			83,849

Weighted average number of common shares outstanding — diluted		80,203			83,890			80,420			84,187

Basic earnings per share	$	0.35			0.43			0.72			0.79

Diluted earnings per share	$	0.35			0.43			0.72			0.79

Dividend per share	$	0.28			0.27			0.56			0.54

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


FIRSTMERIT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME—LINKED QUARTERS (Unaudited) (Dollars in thousands, except share data)


	Quarterly Results
	2006			2006			2005			2005			2005
	2nd Q			1st Q			4th Q			3rd Q			2nd Q
Interest and fees on loans, including held for sale	$	123,450			117,740			115,850			111,169			105,975
Interest and dividends — securities and federal funds sold		24,820			25,332			26,109			26,700			27,802

Total interest income		148,270			143,072			141,959			137,869			133,777

Interest on deposits:
Demand-interest bearing		2,583			2,362			1,953			1,732			1,230
Savings and money market accounts		12,079			10,748			10,352			8,700			7,517
Certificates and other time deposits		29,326			26,101			23,831			21,637			20,696
Securities sold under agreements to repurchase		12,957			11,923			13,423			12,535			10,624
Wholesale borrowings		5,595			5,965			4,898			5,559			5,933

Total interest expense		62,540			57,099			54,457			50,163			46,000

Net interest income		85,730			85,973			87,502			87,706			87,777
Provision for loan losses		13,159			6,106			16,260			9,974			5,972

Net interest income after provision for loan losses		72,571			79,867			71,242			77,732			81,805

Other income:
Trust department income		5,744			5,394			5,430			5,515			5,684
Service charges on deposits		18,010			16,066			17,884			18,561			17,800
Credit card fees		11,478			10,671			10,601			10,437			10,523
ATM and other service fees		3,273			3,108			3,157			3,453			3,298
Bank owned life insurance income		5,310			2,986			3,092			3,074			3,024
Investment services and insurance		2,581			2,597			2,696			2,226			2,828
Manufactured housing income		35			3			3			3			40
Investment securities gains (losses), net		4			16			39			40			(25	)
Loan sales and servicing income		2,833			1,445			1,668			2,076			1,520
Other operating income		2,810			3,111			3,016			2,461			5,403

Total other income		52,078			45,397			47,586			47,846			50,095

Other expenses:
Salaries, wages, pension and employee benefits		46,721			43,031			40,790			42,149			41,351
Net occupancy expense		6,120			6,549			5,746			5,567			5,881
Equipment expense		2,914			2,958			4,152			2,962			3,002
Stationery, supplies and postage		2,403			2,453			2,546			2,559			2,484
Bankcard, loan processing and other costs		7,417			5,827			7,042			5,802			5,444
Professional services		3,738			2,763			3,389			2,632			3,843
Amortization of intangibles		222			223			222			222			222
Other operating expense		15,683			18,095			15,387			17,033			17,170

Total other expenses		85,218			81,899			79,274			78,926			79,397

Income before income tax expense		39,431			43,365			39,554			46,652			52,503
Federal income taxes		11,770			13,401			11,898			10,058			16,358

Net income	$	27,661			29,964			27,656			36,594			36,145

Other comprehensive income (loss), net of taxes		(8,618	)		(10,545	)		(8,927	)		(14,272	)		18,540

Comprehensive income	$	19,043			19,419			18,729			22,322			54,685

Net income applicable to common shares		27,661			29,964			27,656			36,594			36,145

Adjusted net income used in diluted EPS calculation		27,666			29,969			27,659			36,601			36,152

Weighted-average common shares — basic		79,983			80,374			82,786			83,489			83,603

Weighted-average common shares — diluted		80,203			80,648			83,082			83,978			83,890


Basic net income per share	$	0.35			0.37			0.33			0.44			0.43


Diluted net income per share	$	0.35			0.37			0.34			0.43			0.43

Note: Certain prior year balances have been reclassified to conform to the current year presentation.


FIRSTMERIT CORPORATION AND SUBSIDIARIES ASSET QUALITY INFORMATION (Unaudited, except December 31, 2005 annual period which is derived from the audited financial statements) (Dollars in thousands, except ratios)


	Quarterly Periods															Annual Period
	June 30			Mar 31			Dec 31			Sep 30			June 30			Dec 31
	2006			2006			2005			2005			2005			2005
Allowance for Credit Losses

Allowance for loan losses, beginning of period	$	87,589			90,661			92,780			92,808			97,115			97,296
Allowance related to loans sold		—			—			—			—			—			—
Provision for loan losses		13,159			6,106			16,260			9,974			5,971			43,820
Charge-offs		18,038			14,914			22,736			14,207			15,422			69,105
Recoveries		5,017			5,736			4,357			4,205			5,144			18,650

Net charge-offs		13,021			9,178			18,379			10,002			10,278			50,455

Allowance for loan losses, end of period	$	87,727			87,589			90,661			92,780			92,808			90,661

Reserve for unfunded lending commitments, beginning of period	$	5,853			6,072			5,857			5,785			6,479			5,774
Provision for credit losses		(137	)		(219	)		215			72			(694	)		298

Reserve for unfunded lending commitments, end of period	$	5,716			5,853			6,072			5,857			5,785			6,072


Allowance for Credit Losses	$	93,443			93,442			96,733			98,637			98,593			96,733


Ratios

Provision for loan losses as a % of average loans		0.78	%		0.37	%		0.96	%		0.60	%		0.36	%		0.66	%
Provision for credit losses as a % of average loans		-0.01	%		-0.01	%		0.01	%		0.00	%		-0.04	%		0.00	%
Net charge-offs as a % of average loans		0.78	%		0.56	%		1.09	%		0.60	%		0.62	%		0.76	%
Allowance for loan losses as a % of period-end loans		1.29	%		1.31	%		1.36	%		1.39	%		1.40	%		1.36	%
Allowance for credit losses as a % of period-end loans		1.37	%		1.40	%		1.45	%		1.48	%		1.49	%		1.45	%
Allowance for loan losses as a % of nonperforming loans		174.80	%		136.22	%		145.61	%		221.46	%		208.74	%		145.61	%
Allowance for credit losses as a % of nonperforming loans		186.19	%		145.32	%		155.36	%		235.44	%		221.76	%		155.36	%

Asset Quality

Impaired loans:
Nonaccrual	$	41,927			56,258			54,176			34,144			38,124			54,176
Other nonperforming loans:
Nonaccrual		8,261			8,044			8,086			7,751			6,336			8,086


Total nonperforming loans		50,188			64,302			62,262			41,895			44,460			62,262

Other real estate (“ORE”)		8,598			8,639			9,995			9,503			9,525			9,995


Total nonperforming assets (“NPAs”)	$	58,786			72,941			72,257			51,398			53,985			72,257


NPAs as % of period-end loans + ORE		0.86	%		1.09	%		1.08	%		0.77	%		0.82	%		1.08	%


Past due 90 days or more & accruing interest	$	16,483			18,640			17,931			21,451			17,969			17,931


FIRSTMERIT CORPORATION NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL (Unaudited) (Dollars in thousands)


	2006		2006		2005		2005		2005
QUARTERLY OTHER INCOME DETAIL	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
Trust department income	$	5,744		5,394		5,430		5,515		5,684
Service charges on deposits		18,010		16,066		17,884		18,561		17,800
Credit card fees		11,478		10,671		10,601		10,437		10,523
ATM and other service fees		3,273		3,108		3,157		3,453		3,298
Bank owned life insurance income		5,310		2,986		3,092		3,074		3,024
Investment services and insurance		2,581		2,597		2,696		2,226		2,828
Manufactured housing income		35		3		3		3		40
Investment securities gains (losses), net		4		16		39		40		(25	)
Loan sales and servicing income		2,833		1,445		1,668		2,076		1,520
Other operating income		2,810		3,111		3,016		2,461		5,403


Total Other Income	$	52,078		45,397		47,586		47,846		50,095


	2006		2006		2005		2005		2005
QUARTERLY OTHER EXPENSES DETAIL	2nd Qtr		1st Qtr		4th Qtr		3 Qtr		2nd Qtr
Salaries, wages, pension and employee benefits	$	46,721		43,031		40,790		42,149		41,351
Net occupancy expense		6,120		6,549		5,746		5,567		5,881
Equipment expense		2,914		2,958		4,152		2,962		3,002
Taxes, other than federal income taxes		1,802		1,819		1,578		849		880
Stationery, supplies and postage		2,403		2,453		2,546		2,559		2,484
Bankcard, loan processing and other costs		7,417		5,827		7,042		5,802		5,444
Advertising		2,369		2,766		1,415		1,863		3,182
Professional services		3,738		2,763		3,389		2,632		3,843
Telephone		1,094		1,128		1,136		1,206		1,095
Amortization of intangibles		222		223		222		222		222
Other operating expense		10,418		12,382		11,258		13,115		12,013


Total Other Expenses	$	85,218		81,899		79,274		78,926		79,397


FIRSTMERIT CORPORATION AND SUBSIDIARIES ALLOWANCE FOR LOAN LOSSES — Net Charge-off Detail (Unaudited) (Dollars in thousands)


	Quarters ended						Six months ended
	June 30,						June 30,
	2006			2005			2006			2005
Allowance for loan losses — beginning of period	$	87,589			97,115			90,661			97,296
Loans charged off:
Commercial		10,086			4,502			16,152			8,653
Mortgage		325			415			698			682
Installment		4,524			6,514			10,554			14,057
Home equity		1,146			571			1,766			1,323
Credit cards		1,951			2,662			3,725			5,082
Leases		6			758			57			2,365

Total		18,038			15,422			32,952			32,162

Recoveries:
Commercial		945			1,184			2,382			2,212
Mortgage		30			52			86			107
Installment		2,965			2,580			6,111			5,305
Home equity		307			318			685			611
Credit cards		585			734			1,034			1,310
Manufactured housing		84			147			185			355
Leases		101			129			270			189

Total		5,017			5,144			10,753			10,089


Net charge-offs		13,021			10,278			22,199			22,073
Provision for loan losses		13,159			5,971			19,265			17,585

Allowance for loan losses — end of period	$	87,727			92,808			87,727			92,808


Average loans outstanding	$	6,730,531			6,601,204			6,714,222			6,546,926

Ratio to average loans:
(Annualized) net charge-offs		0.78	%		0.62	%		0.67	%		0.68	%

Provision for loan losses		0.78	%		0.36	%		0.58	%		0.54	%

Loans outstanding — period-end	$	6,804,769			6,610,385			6,804,769			6,610,385


Allowance for credit losses:		93,443			98,593			93,443			98,593

As a multiple of (annualized) net charge-offs		1.79			2.39			2.09			2.21

Allowance for loan losses:
As a percent of period-end loans outstanding		1.29	%		1.40	%		1.29	%		1.40	%

As a multiple of (annualized) net charge-offs		1.68			2.25			1.96			2.09

FirstMerit (FMER) Inactive 8-K2006 Financial Information Second Quarter