UNITED STATES SECURITIES AND EXCHANGE COMMISSION
Washington, D.C. 20549
Form 10-K/A
(Amendment No. 1)
| þ | ANNUAL REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the fiscal year ended December 31, 2006 | ||
| OR | ||
o | TRANSITION REPORT PURSUANT TO SECTION 13 OR 15 (d) OF THE SECURITIES EXCHANGE ACT OF 1934 | |
| For the transition period from to | ||
Commission file number: 0-10161
FirstMerit Corporation
(Exact name of registrant as specified in its charter)
| Ohio | 34-1339938 | |
| (State or other jurisdiction of incorporation or organization) | (I.R.S. Employer Identification No.) | |
| III Cascade Plaza, 7thFloor, Akron Ohio | 44308 | |
| (Address of principal executive offices) | (Zip Code) | |
(330) 996-6300
(Registrant’s telephone number, including area code)
Securities registered pursuant to Section 12(b) of the Exchange Act:
COMMON SHARES, NO PAR VALUE
COMMON SHARES, NO PAR VALUE
Securities registered pursuant to Section 12(g) of the Exchange Act: None
Indicate by check mark if the registrant is a well-known seasoned issuer, as defined in Rule 405 of the Securities Act. Yes þ No o
Indicate by check mark if the registrant is not required to file reports pursuant to Section 13 or Section 15(d) of the Exchange Act. Yes o No þ
Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Exchange Act during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days. Yes þ No o
Indicate by check mark if disclosure of delinquent filers pursuant to Item 405 of Regulation S-K is not contained herein, and will not be contained, to the best of registrant’s knowledge, in definitive proxy or information statements incorporated by reference in Part III of this Form 10-K or any amendment to this Form 10-K. o
Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, or a non-accelerated filer. See definition of “accelerated filer and large accelerated filer” in Rule 12b-2 of the Exchange Act. (Check one):
| Large accelerated filer þ | Accelerated filer o | Non-accelerated filer o |
Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act). Yes o No þ
As of June 30, 2006, the aggregate market value of the registrant’s common stock (the only common equity of the registrant) held by non-affiliates of the registrant was $1,676,421,116 based on the closing sale price as reported on The NASDAQ Stock Market.
Indicate the number of shares outstanding of each of the registrant’s classes of common stock, as of the latest practicable date.
| Class | Outstanding at February 3, 2007 | |
| Common Stock, no par value | 80,102,596 shares |
DOCUMENTS INCORPORATED BY REFERENCE
| Document | Parts Into Which Incorporated | |
| Proxy Statement for the Annual Meeting of Shareholders of FirstMerit Corporation on April 18, 2007 | Part III |
PLAN FINANCIAL STATEMENTS
The undersigned registrant hereby amends the following item of its Annual Report pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 on Form 10-K, as amended, for the fiscal year ended December 31, 2006 for the purpose of furnishing the financial statements of the FirstMerit Corporation and Affiliates Employees’ Salary Savings Retirement Plan.
ITEM 8. FINANCIAL STATEMENTS AND SUPPLEMENTARY DATA
FirstMerit Corporation and
Affiliates Employees’ Salary
Savings Retirement Plan
Financial Statements And Supplemental
Information
December 31, 2006 and 2005
FIRSTMERIT CORPORATION AND AFFILIATES
EMPLOYEES’ SALARY SAVINGS RETIREMENT PLAN
EMPLOYEES’ SALARY SAVINGS RETIREMENT PLAN
FINANCIAL REPORT
DECEMBER 31, 2006 AND 2005
FIRSTMERIT CORPORATION AND AFFILIATES
EMPLOYEES’ SALARY SAVINGS RETIREMENT PLAN
EMPLOYEES’ SALARY SAVINGS RETIREMENT PLAN
CONTENTS
| Page | ||||
| REPORT OF INDEPENDENT REGISTERED PUBLIC ACCOUNTING FIRM | 1 | |||
| FINANCIAL STATEMENTS | ||||
| Statements of net assets available for benefits | 2 | |||
| Statements of changes in net assets available for benefits | 3 | |||
| Notes to financial statements | 4-10 | |||
| SUPPLEMENTAL INFORMATION | ||||
| Schedule of assets (held at end of year) | 11 | |||
| Schedule of reportable transactions | 12 | |||
To the Board of Directors
FirstMerit Corporation
Akron, Ohio
FirstMerit Corporation
Akron, Ohio
Report of Independent Registered Public Accounting Firm
We have audited the accompanying statements of net assets available for benefits of FirstMerit Corporation and Affiliates Employees’ Salary Savings Retirement Plan (the “Plan”) as of December 31, 2006 and 2005, and the related statements of changes in net assets available for benefits for the years then ended. These financial statements are the responsibility of the Plan’s management. Our responsibility is to express an opinion on these financial statements based on our audits.
We conducted our audits in accordance with the auditing standards of the Public Company Accounting Oversight Board (United States). Those standards require that we plan and perform the audit to obtain reasonable assurance about whether the financial statements are free of material misstatement. The Plan is not required to have, nor were we engaged to perform, an audit of internal control over financial reporting. An audit includes consideration of internal control over financial reporting as a basis for designing audit procedures that are appropriate in the circumstances, but not for the purpose of expressing an opinion on the effectiveness of the Plan’s internal control over financial reporting. Accordingly, we express no such opinion. An audit also includes examining, on a test basis, evidence supporting the amounts and disclosures in the financial statements, assessing the accounting principles used and significant estimates made by management, as well as evaluating the overall financial statement presentation. We believe that our audits provide a reasonable basis for our opinion.
In our opinion, the financial statements referred to above present fairly, in all material respects, the net assets available for benefits of the Plan as of December 31, 2006 and 2005, and changes in net assets available for benefits for the years then ended in conformity with U.S. generally accepted accounting principles.
Our audits were performed for the purpose of forming an opinion on the basic financial statements taken as a whole. The supplemental information which includes the schedules of assets (held at end of year) as of December 31, 2006 and reportable transactions for the year ended December 31, 2006 are presented for the purpose of additional analysis and are not a required part of the basic financial statements, but are supplementary information required by the Department of Labor’s Rules and Regulations for Reporting and Disclosure under the Employee Retirement Income Security Act of 1974. This supplemental information is the responsibility of the Plan’s management. The supplemental information has been subjected to the auditing procedures applied in the audits of the basic financial statements and, in our opinion, are fairly stated in all material respects in relation to the basic financial statements taken as a whole.
Cleveland, Ohio
April 25, 2007
April 25, 2007
-1-
 |
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2006 and 2005
SALARY SAVINGS RETIREMENT PLAN
STATEMENTS OF NET ASSETS AVAILABLE FOR BENEFITS
December 31, 2006 and 2005
| 2006 | 2005 | |||||||
ASSETS | ||||||||
| Investments, at fair value: | ||||||||
| Mutual funds | $ | 71,121,945 | $ | 62,098,797 | ||||
| FirstMerit Corporation Common Stock | 53,519,800 | 58,748,334 | ||||||
| Loans to participants | 1,094,307 | 1,115,520 | ||||||
| Total investments | 125,736,052 | 121,962,651 | ||||||
| Receivables: | ||||||||
| Contributions from participants | 296,773 | 295,850 | ||||||
| Contributions from employer | 1,248,557 | 1,278,173 | ||||||
| Investment income | 1,980 | 51,298 | ||||||
| Total receivables | 1,547,310 | 1,625,321 | ||||||
| Total assets | 127,283,362 | 123,587,972 | ||||||
LIABILITIES | — | — | ||||||
| NET ASSETS AVAILABLE FOR BENEFITS | $ | 127,283,362 | $ | 123,587,972 | ||||
The accompanying notes are an integral part of these financial statements.
-2-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
STATEMENTS OF CHANGES IN NET ASSETS AVAILABLE FOR BENEFITS
Years Ended December 31, 2006 and 2005
| 2006 | 2005 | |||||||
| ADDITIONS | ||||||||
| Contributions: | ||||||||
| Participants’ | $ | 7,582,691 | $ | 7,307,485 | ||||
| Employer’s | 5,166,693 | 5,070,728 | ||||||
| Rollovers from participants | 166,942 | 1,152,329 | ||||||
| 12,916,326 | 13,530,542 | |||||||
| Investment income: | ||||||||
| Interest | 56,354 | 58,264 | ||||||
| Dividends | 3,904,993 | 3,423,179 | ||||||
| Net appreciation (depreciation) of investments | 881,934 | (3,921,779 | ) | |||||
| 4,843,281 | (440,336 | ) | ||||||
| Total additions | 17,759,607 | 13,090,206 | ||||||
| DEDUCTIONS | ||||||||
| Benefits paid directly to participants | 14,064,217 | 11,415,061 | ||||||
| Total deductions | 14,064,217 | 11,415,061 | ||||||
| NET INCREASE | 3,695,390 | 1,675,145 | ||||||
| NET ASSETS AVAILABLE FOR BENEFITS - BEGINNING OF YEAR | 123,587,972 | 121,912,827 | ||||||
| END OF YEAR | $ | 127,283,362 | $ | 123,587,972 | ||||
The accompanying notes are an integral part of these financial statements.
-3-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS
Note 1. Description of the Plan
The following brief description of the FirstMerit Corporation and Affiliates (“FirstMerit”) (the “Company”) Employees’ Salary Savings Retirement Plan (the “Plan”) provides only general information. Participants should refer to the Plan Agreement for a more complete description of the Plan’s provisions.
A. General
The Board of Directors of FirstMerit Corporation established this defined contribution plan as of October 1, 1985. The Plan covers all employees of FirstMerit who have six months of service and have attained the age of twenty-one. The Plan is subject to certain provisions of the Employee Retirement Income Security Act of 1974 (“ERISA”), as amended.
B. Contributions
The Plan permits each participant to contribute from 1% to 50% of compensation. Such contributions are known as voluntary pretax employee contributions. A participant’s voluntary pretax contributions and earnings are immediately vested and non-forfeitable. Contributions are subject to certain limitations.
FirstMerit contributes as a matching contribution an amount equal to 50% of the participant’s voluntary pretax contribution. FirstMerit will not make a matching contribution with respect to any portion of a participant voluntary pre-tax contribution that exceeds six percent of the participant’s basic compensation. These employer matching contributions and earnings thereon are immediately vested and non-forfeitable.
The Plan also includes a supplemental matching account whereby FirstMerit makes additional matching contributions equal to 50% of the participant’s voluntary pretax employee contributions which do not exceed three percent of the participant’s basic compensation. These employer supplemental matching contributions and earnings thereon are immediately vested and are non-forfeitable.
For plan years beginning on and after January 1, 2005, FirstMerit may make profit sharing contributions from time to time in such amounts as determined by FirstMerit’s Board of Directors. Such profit sharing contributions will be allocated among those eligible participants in the plan who are employed on the last day of a plan year in the proportion that such participant’s plan compensation for the plan year bears to the total plan compensation of all eligible participants. The profit sharing contribution will be allocated to each participant’s Profit Sharing Contribution Employee Stock Ownership Plan (“ESOP”) account. The profit sharing contribution and earnings thereon for each participant are 100% vested after completing five years of service.
-4-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Note 1.Description of the Plan (Continued)
C. Investments
The following is a summary of investment options (“Investment Funds”) available to participants at December 31, 2006 and 2005:
Aim Short Term Liquid Asset Fund: The fund primarily invests in short-term money market instruments that blend top-tier, high quality obligations including commercial paper, certificates of deposit, promissory notes, municipal securities and repurchase agreements.
American Century Capital Preservation Fund: The fund seeks to provide conservative investors with a high quality portfolio, current income and relative safety. This fund invests in U.S. Treasury, government agency securities and repurchase agreements backed by government securities.
Fidelity Advisor Equity Growth Fund: The fund invests in attractively priced stocks of companies that demonstrate the potential for above-average earnings and revenue growth, a strategy that may translate into strong returns for investors.
Fidelity Balanced Fund: The fund seeks income and capital growth consistent with reasonable risk by investing approximately 60% of the fund’s assets in equities and the remainder in a broadly diversified portfolio of debt securities.
American Funds Growth Fund of America:The fund seeks growth of capital over the long-term by investing primarily in a diversified portfolio of U.S. common stocks of well-known and established companies with a market capitalization of at least $200,000,000.
T. Rowe Price Retirement Funds: These four target retirement funds invest in diversified portfolios of mutual funds consisting of stocks and bonds and become more conservative over time. Each of the four funds has a different time horizon (target retirement years of 2015, 2025, 2035 and 2045).
T. Rowe Price Small-Cap Stock Fund: The fund seeks long-term growth of capital through investment in stock of small companies that are potentially undervalued or have growth prospects.
Vanguard 500 Index Fund Admiral: The fund seeks long-term investment results that correspond with the price and yield performance of the S&P 500 Index. The fund tracks the performance of the S&P 500 Index, which is primarily the stock of large U.S. companies.
FirstMerit Corporation Common Stock: The Plan provides for participants to invest directly in common shares of the Company. Each participant electing to purchase common shares of the Company through the Plan is permitted to vote such common shares in the same manner as any other shareholder and is furnished proxy materials to such effect. Dividends paid by FirstMerit are either reinvested in the Plan or paid quarterly, at the option of the participant.
-5-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Note 1.Description of the Plan (Continued)
C. Investments (Continued)
Dodge & Cox Stock Fund: The fund primarily seeks long-term growth of principal and income, and, secondarily, to achieve reasonable current income. The fund invests in a broadly diversified portfolio of common stocks believed to be undervalued.
Dodge & Cox International Stock Fund: The fund is a value fund that invests primarily in large capital non-U.S. equities. The fund is appropriate for investors with a long-term horizon and risk tolerance for foreign equity investments.
SEI Stable Asset Fund:The fund seeks to preserve principal and earn current income through a diversified portfolio of high quality investments, including wrapped fixed income investments to enhance credit quality and diversification.
Vanguard Mid-Cap Index Fund:The fund seeks to match performance of a benchmark index of mid-capitalization stocks. The fund employs a passive management strategy designed to track performance of the MSCI Mid Cap 450 Index.
Vanguard Total Stock Market Index Fund:The fund seeks to match performance of a benchmark index of the overall stock market. The fund primarily invests in the 1,300 largest U. S. common stocks in the Wilshire 5000 Total Stock Market Index.
PIMCO Total Return Fund:The fund seeks maximum total return, consistent with preservation of capital and prudent investment management. The fund invests primarily in a diversified portfolio of fixed income instruments of various maturities.
During the Plan year ended December 31, 2006, the Fidelity Blue Chip Growth Fund and Templeton Foreign Fund were removed as investment options.
D. Participants’ Accounts
FirstMerit Bank, N.A. (a subsidiary of FirstMerit Corporation), as the trustee for the Plan, maintains separate accounts for each participant. Participants can contribute to one investment or a combination thereof with the minimum investment in any option of 5%. Employer matching, supplemental matching and profit sharing plan contributions are invested solely in FirstMerit Corporation common stock purchased on the open market by the trustee.
E. Payment of Benefits
Distributions to participants are made by one or more of the following methods: (1) a single lump-sum payment, in cash and/or FirstMerit common stock; or (2) payments in equal or nearly equal monthly, quarterly, semiannual, or annual installments over any period not exceeding 10 years or the participant’s life expectancy at the date such payments commence, if less. Benefit distributions are recorded when paid.
-6-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PALN
SALARY SAVINGS RETIREMENT PALN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Note 1.Description of the Plan (Continued)
F. Loans to Participants
The loan feature allows participants to borrow against amounts accumulated in the Plan on their behalf. The Plan Agreement sets forth guidelines as to certain limitations, and permissible interest rates and repayment terms.
G. Administrative Expenses
All expenses associated with administering the Plan, including the trustee’s fees and brokerage commissions on purchases of and transfers between Investment Funds, are paid by FirstMerit.
H. Diversification
Plan participants have the ability to diversify out of the mandatory Company stock investment accounts. As of the first day of the calendar quarter immediately following each participant’s three year service anniversary, participants’ Matching ESOP Accounts will be moved to new Matching Diversification ESOP Accounts, which permit transfer of investments from Company stock to other mutual fund investments. In addition, participants’ future semi-monthly employer matching contributions, including supplemental contributions, may also be directed to any of the available mutual funds, as well as Company stock after attaining three years of service.
Further, if participants have completed at least ten years of participation in the Plan and attained age 55, they are “Qualified Members.” Qualified Members have the right to make an election to direct the investment of a portion of their Supplemental Retirement ESOP Account. Within 90 days after the close of each Plan Year in the six-Plan Year period beginning with the Plan Year in which they first become Qualified Members, they may elect to diversify the investment up to 25% of these accounts. In the last year of the six-Plan Year period, the percentage increases to 50%. The amounts they may elect to diversify may be invested in any of the Investment Funds described above.
Note 2. Summary of Significant Accounting Policies
A. Basis of Presentation
The accompanying financial statements have been prepared on an accrual basis in accordance with accounting principles generally accepted in the United States of America.
-7-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Note 2. Summary of Significant Accounting Policies (Continued)
B. Use of Estimates
The preparation of financial statements in conformity with accounting principles generally accepted in the United States of America requires management to make estimates and assumptions that affect the amounts reported in the financial statements and related notes. Actual results could differ from those estimates.
C. Investments
Investments in FirstMerit common stock and mutual funds are stated at fair value. The fair value of marketable securities is based on quotations obtained from national securities exchanges.
The fair value of the investments in the mutual funds is based upon the number of units held by the Plan at December 31, 2006 and 2005, respectively, and the current value of each unit is based upon the net asset value disclosed by the registered investment company as of the last trading day of the reporting period. Participant loans are stated at their outstanding balances, which approximate fair value.
Securities transactions are recognized on the trade date (the date the order to buy or sell is executed). Interest is recorded on the accrual basis. Dividends are recorded on the ex-dividend date.
The Plan presents in the Statements of Changes in Net Assets Available for Benefits the net appreciation (depreciation) in the fair value of its investments, which consists of the realized gains or losses and the unrealized appreciation (depreciation) on these investments.
D. Risks and Uncertainties
The Plan holds investments in various investment securities. The Plan generates a significant portion of its earnings from investments in domestic and international mutual funds and FirstMerit Corporation common stock. FirstMerit Corporation common stock represents a significant concentration of the Plan’s total investments. Investment securities are exposed to various risks such as interest rate, market, and credit risks. Due to the level of risk associated with certain investment securities, it is at least reasonably possible that changes in the values of investment securities will occur in the near term and that such changes could materially affect participants’ account balances and the amounts reported in the statements of net assets available for benefits.
-8-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Note 3.Investments
| The Plan’s investments are maintained in mutual funds and common stock of the Company, as described in Note 1. The following presents the market value of investments that represent 5% or more of the Plan’s Net Assets Available for Plan Benefits at December 31, 2006 and 2005: |
| 2006 | 2005 | |||||||
| Mutual funds: | ||||||||
| American Funds Growth Fund of America | $ | 10,869,245 | $ | — | ||||
| Fidelity Advisor Equity Growth Fund | 9,877,223 | 10,027,675 | ||||||
| Fidelity Blue Chip Growth Fund | — | 11,064,284 | ||||||
| Dodge & Cox International Stock Fund | 6,800,179 | — | ||||||
| Dodge & Cox Stock Fund | 7,534,408 | — | ||||||
| SEI Stable Asset Fund | 8,370,072 | 9,574,057 | ||||||
| Vanguard 500 Index Fund Admiral | 10,768,532 | 9,584,192 | ||||||
| FirstMerit Corporation Common Stock (non-participant directed, see Note 1.H.) | 53,519,800 | 58,748,334 | ||||||
During 2006 and 2005, the Plan’s investments (including gains and losses on investments bought and sold, as well as held during the year) appreciated (depreciated) in value by $881,934 and $(3,921,779), as follows:
| 2006 | 2005 | |||||||
| Mutual funds | $ | (4,748,008 | ) | $ | 2,426,776 | |||
| FirstMerit Corporation Common Stock | 5,629,942 | (6,348,555 | ) | |||||
| $ | 881,934 | $ | (3,921,779 | ) | ||||
Note 4. Federal Income Taxes
| The Plan and Trust qualify under Section 401 of the Internal Revenue Code and the Trust is exempt from federal income taxes under Section 501(a). | |||
| The Plan obtained its latest determination letter on May 9, 2001, in which the Internal Revenue Service stated that the Plan, as then designed, was in compliance with the applicable requirements of the Internal Revenue Code. The Plan has been amended since receiving the determination letter. However, the Plan administrator and the Plan’s tax counsel believe that the Plan is currently designed and being operated in compliance with the applicable requirements of the Internal Revenue Code. Therefore, no provision for income taxes has been included in the Plan’s financial statements. |
-9-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PALN
SALARY SAVINGS RETIREMENT PALN
NOTES TO FINANCIAL STATEMENTS (CONTINUED)
Note 5. Plan Termination
Although it has not expressed any intent to do so, the Plan may be terminated by unanimous action of the FirstMerit Corporation Board of Directors. In the event the Plan is terminated, FirstMerit will direct the trustee to distribute the assets of the trust fund, after payment of any expenses properly chargeable against the trust fund, to participants in proportion to the value of their total account balances as of the date of termination, in cash or in kind and in such a manner as FirstMerit shall determine.
Note 6. Transactions With Party-In-Interest
Transactions involving participant loans and common stock of FirstMerit Corporation, the Plan’s sponsor, are considered party-in-interest transactions. These transactions are not, however, considered prohibited transactions under 29 CFR 408(b) of the ERISA regulations.
Note 7. Plan Amendments
Plan amendments made during 2005 were as follows: 1) The Plan was amended effective March 28, 2005 to provide that mandatory or involuntary lump-sum distributions in an amount in excess of $1,000, but less than $5,000, shall only be made in the form of an automatic rollover IRA, as provided for by the Plan, and, 2) The Plan was amended effective January 1, 2005 to allow the Company to make discretionary profit sharing contributions.
Note 8. Subsequent Events
The following changes have been made to the Plan effective January 1, 2007:
| 1) | FirstMerit employees are eligible to participate in the Plan on the first January 1, April 1, July 1 or October 1 after completing three months of service and attaining age 21. | ||
| 2) | Additional retirement investment plan contributions of 3% of eligible compensation (includes salary, wages and commissions but excluding incentives and awards) for each plan year will be made for certain participants hired on or after January 1, 2007, or participants hired before January 1, 2007 but not vested, as of January 1, 2007, in the Pension Plan for Employees of FirstMerit Corporation and Affiliates. There is a three year vesting requirement for these contributions. | ||
| 3) | The vesting schedule for participants Profit Sharing Contribution ESOP Accounts and the Retirement Investment Contribution ESOP Accounts is as follows: |
| Year(s) of Services | Vesting Percentage | |
| Less than 3 3 or more | 0% 100% |
-10-
SUPPLEMENTAL INFORMATION
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
SCHEDULE OF ASSETS (HELD AT END OF YEAR)
Schedule H, Line 4(i)
Employer No. 34-1339938
Plan No. 002
Employer No. 34-1339938
Plan No. 002
December 31, 2006
| (a) | (b) | Identity of Party | (c) Description of Investment | (d) Cost | Current (e)Value | |||||||||
| Mutual Funds | ||||||||||||||
| Aim Short Term Liquid Asset Fund | $ | 46 | $ | 46 | ||||||||||
| American Century Capital Preservation Fund | 66,395 | 66,395 | ||||||||||||
| Dodge & Cox International Stock Fund | 6,883,567 | 6,800,179 | ||||||||||||
| Dodge & Cox Stock Fund | 6,633,024 | 7,534,408 | ||||||||||||
| Fidelity Advisor Equity Growth Fund | 8,962,095 | 9,877,223 | ||||||||||||
| American Funds Growth Fund of America | 11,452,292 | 10,869,245 | ||||||||||||
| T. Rowe Price Retirement Fund 2045 | 1,798 | 1,791 | ||||||||||||
| T. Rowe Price Retirement Fund 2035 | 28,027 | 27,972 | ||||||||||||
| T. Rowe Price Retirement Fund 2025 | 7,793 | 7,836 | ||||||||||||
| T. Rowe Price Retirement Fund 2015 | 1,814 | 1,808 | ||||||||||||
| Fidelity Balanced Fund | 3,602,092 | 3,948,028 | ||||||||||||
| SEI Stable Asset Fund | 8,370,072 | 8,370,072 | ||||||||||||
| T. Rowe Price Small-Cap Stock Fund | 3,665,892 | 3,987,582 | ||||||||||||
| Vanguard Mid-Cap Index Fund | 2,474,774 | 2,856,645 | ||||||||||||
| Vanguard Total Stock Market Index Fund | 967,271 | 1,112,920 | ||||||||||||
| Vanguard 500 Index Fund Admiral | 8,861,209 | 10,768,532 | ||||||||||||
| PIMCO Total Return Fund | 4,979,733 | 4,891,263 | ||||||||||||
| 66,957,894 | 71,121,945 | |||||||||||||
| * | FirstMerit Corporation Common Stock | 45,887,264 | 53,519,800 | |||||||||||
| * | Participant Loans | Participant Loans Outstanding Bearing Interest of 3.29 — 11.75% | 1,094,307 | 1,094,307 | ||||||||||
| $ | 113,939,465 | $ | 125,736,052 | |||||||||||
| * | Represents a party-in-interest | |||||||||||||
-11-
FIRSTMERIT CORPORATION AND AFFILIATES EMPLOYEES’
SALARY SAVINGS RETIREMENT PLAN
SALARY SAVINGS RETIREMENT PLAN
SCHEDULE OF REPORTABLE TRANSACTIONS
Schedule H, Line 4(j)
Employer No. 34-1339938
Plan No. 002
Employer No. 34-1339938
Plan No. 002
Year Ended December 31, 2006
| (h) | ||||||||||||||||||||||
| Current | ||||||||||||||||||||||
| Value of | (i) | |||||||||||||||||||||
| (a) | (b) | (c) | (d) | (g) | Asset on | Net | ||||||||||||||||
| Identity of | Description | Purchase | Selling | Cost of | Transaction | Gain or | ||||||||||||||||
| Party | of Asset | Price | Price | Asset | Date | (Loss) | ||||||||||||||||
| Category I: Individual transaction exceeds 5% of value. | ||||||||||||||||||||||
| American Funds Growth Fund Issue: 399874833 | 149,754 shares | $ | 6,620,620 | N/A | N/A | $6,620,620 | N/A | |||||||||||||||
| Fidelity Blue Chip Growth Fund Issue: 316389303 | 246,484 shares | N/A | $ | 10,953,750 | $ | 10,141,418 | 10,953,750 | $ | 812,332 | |||||||||||||
| Templeton Foreign Fund Issue: 880196506 | 482,904 shares | N/A | 6,620,619 | 5,721,986 | 6,620,619 | 898,633 | ||||||||||||||||
| Category III: Series of transactions in same security exceeds 5% of value, excluding individual transactions disclosed above. | ||||||||||||||||||||||
| FirstMerit Corporation Issue: 337915102 | 312,626 shares common stock 33 transactions | 7,424,748 | N/A | N/A | 7,428,748 | N/A | ||||||||||||||||
| FirstMerit Corporation Issue: 337915102 | 305,761 shares common stock 331 transactions | N/A | 7,233,339 | 6,267,187 | 7,233,339 | 966,152 | ||||||||||||||||
| American Century Cap. Pres. Fund Issue: 025081803 | 6,648,217 shares 219 transactions | 6,648,217 | N/A | N/A | 6,648,217 | N/A | ||||||||||||||||
| American Century Cap. Pres. Fund Issue: 025081803 | 6,824,382 shares 100 transactions | N/A | 6,824,382 | 6,824,382 | 6,824,382 | — | ||||||||||||||||
| Dodge & Cox International Stock Fund Issue: 216206103 | 155,860 shares 12 transactions | 6,888,313 | N/A | N/A | 6,888,313 | N/A | ||||||||||||||||
| There were no reportable transactions for Categories II or IV during the year. | ||||||||||||||||||||||
-12-
SIGNATURES
Pursuant to the requirements of Section 13 or 15(d) of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned, thereunto duly authorized, in the City of Akron, State of Ohio, on the 30th day of April, 2007.
| FirstMerit Corporation | ||||
| By: | /s/ TERRENCE E. BICHSEL Terrence E. Bichsel, Executive Vice President and Chief Financial Officer | |||
Exhibit Index
| Exhibit | ||
| Number | ||
| 3.1 | Amended and Restated Articles of Incorporation of FirstMerit Corporation, as amended (incorporated by reference from Exhibit 3.1 to the Form 10-K/A filed by the Registrant on April 29, 1999) | |
| 3.2 | Amended and Restated Code of Regulations of FirstMerit Corporation (incorporated by reference from Exhibit 3(b) to the Form 10-K filed by the registrant on April 9, 1998) | |
| 4.1 | Shareholders Rights Agreement dated October 21, 1993, between FirstMerit Corporation and FirstMerit Bank, N.A., as amended and restated May 20, 1998 (incorporated by reference from Exhibit 4 to the Form 8-A/A filed by the registrant on June 22, 1998) | |
| 4.2 | Supplemental Indenture, dated as of February 12, 1999, between FirstMerit and Firstar Bank Milwaukee, National Association, as Trustee relating to the obligations of the FirstMerit Capital Trust I, fka Signal Capital Trust I (incorporated by reference from Exhibit 4.3 to the Form 10-K filed by the Registrant on March 22, 1999) | |
| 4.3 | Indenture dated as of February 13, 1998 between Firstar Bank Milwaukee, National Association, as trustee and Signal Corp (incorporated by reference from Exhibit 4.1 to the Form S-4 No. 333-52581-01, filed by FirstMerit Capital Trust I, fka Signal Capital Trust I, on May 13, 1998) | |
| 4.4 | Amended and Restated Declaration of Trust of FirstMerit Capital Trust I, fka Signal Capital Trust I, dated as of February 13, 1998 (incorporated by reference from Exhibit 4.5 to the Form S-4 No. 333-52581-01, filed by FirstMerit Capital Trust I, fka Signal Capital Trust I, on May 13, 1998) | |
| 4.5 | Form Capital Security Certificate (incorporated by reference from Exhibit 4.6 to the Form S-4 No. 333-52581-01, filed by FirstMerit Capital Trust I, fka Signal Capital Trust I, on May 13, 1998) | |
| 4.6 | Series B Capital Securities Guarantee Agreement (incorporated by reference from Exhibit 4.7 to the Form S-4 No. 333-52581-01, filed by FirstMerit Capital Trust I, fka Signal Capital Trust I, on May 13, 1998) | |
| 4.7 | Form of 8.67% Junior Subordinated Deferrable Interest Debenture, Series B (incorporated by reference from Exhibit 4.7 to the Form S-4 No. 333-52581-01, filed by FirstMerit Capital Trust I, fka Signal Capital Trust I, on May 13, 1998) |
| Exhibit | ||
| Number | ||
| 10.1 | Amended and Restated 1992 Stock Option Program of FirstMerit Corporation (incorporated by reference from Exhibit 10.1 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.2 | Amended and Restated 1992 Directors Stock Option Program (incorporated by reference from Exhibit 10.2 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.3 | Amended and Restated 1997 Stock Option Plan (incorporated by reference from Exhibit 10.4 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.4 | Amended and Restated 1999 Stock Option Plan (incorporated by reference from Exhibit 10.5 to the Form 10-K/A filed by the registrant on April 30, 2001)* | |
| 10.5 | Amended and Restated 2002 Stock Plan (incorporated by reference from Exhibit 10.6 to the Form 10-K/A filed by the registrant on April 30, 2004)* | |
| 10.6 | 2006 Equity Plan of FirstMerit Corporation (incorporated by reference from Exhibit 10.5 to the Form 10-Q filed by the registrant on August 4, 2006)* | |
| 10.7 | Amended and Restated 1987 Stock Option and Incentive Plan (SF) (incorporated by reference from Exhibit 10.6 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.8 | Amended and Restated 1996 Stock Option and Incentive Plan (SF) (incorporated by reference from Exhibit 10.7 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.9 | Amended and Restated 1994 Stock Option and Incentive Plan (SF) (incorporated by reference from Exhibit 10.8 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.10 | Amended and Restated Stock Option and Incentive Plan (SG) (incorporated by reference from Exhibit 10.10 to the Form 10-K filed by the registrant on March 9. 2001)* | |
| 10.11 | Non-Employee Director Stock Option Plan (SG) (incorporated by reference from Exhibit 4.3 to the Form S-8/A (No. 333-63797) filed by the registrant on February 12, 1999)* | |
| 10.12 | Amended and Restated 1997 Omnibus Incentive Plan (SG) (incorporated by reference from Exhibit 10.12 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.13 | Amended and Restated 1993 Stock Option Plan (FSB) (incorporated by reference from Exhibit 10.13 to the Form 10-K filed by the registrant on March 9, 2001)* | |
| 10.14 | Amended and Restated Executive Deferred Compensation Plan (incorporated by reference from Exhibit 10.14 to the Form 10-K/A filed by the registrant on April 30, 2001)* | |
| 10.15 | Amended and Restated Director Deferred Compensation Plan (incorporated by reference from Exhibit 10.15 to the Form 10-K/A filed by the registrant on April 30, 2001)* | |
| 10.16 | Executive Supplemental Retirement Plan (incorporated by reference from Exhibit 10.16 to the Form 10-K/A filed by the registrant on April 30, 2002)* | |
| 10.17 | Form of Amended and Restated Membership Agreement with respect to the Executive Supplemental Retirement Plan (incorporated by reference from Exhibit 10.39 to the Form 10-K filed by the Registrant on March 22, 1999)* | |
| 10.18 | Unfunded Supplemental Benefit Plan (incorporated by reference from Exhibit 10.19 to the Form 10-K filed by the Registrant on March 6, 2003)* | |
| 10.19 | First Amendment to the Unfunded Supplemental Benefit Plan (incorporated by reference from Exhibit 10.19 to the Form 10-K/A filed by the registrant on April 30, 2002)* |
| Exhibit | ||
| Number | ||
| 10.20 | Executive Insurance Program Summary (incorporated by reference from Exhibit 10.20 to the Form 10-K/A filed by the registrant on April 30, 2002)* | |
| 10.21 | Long Term Disability Plan (incorporated by reference from Exhibit 10.21 to the Form 10-K/A filed by the registrant on April 30, 2002)* | |
| 10.22 | 2007 Executive Annual Incentive Plan (incorporated by reference from Exhibit 99.2 to the Form 8-K filed by the registrant on February 22, 2007)* | |
| 10.23 | Summary of Director Compensation Arrangement (incorporated by reference from Exhibit 10.22 to the Form 10-K filed by the registrant on March 7, 2005)* | |
| 10.24 | Transition Agreement of John R. Cochran (incorporated by reference from Exhibit 99.1 to the Form 8-K filed by the registrant on June 21, 2006)* | |
| 10.25 | Restricted Stock Award Agreement of John R. Cochran dated April 9, 1997 (incorporated by reference from Exhibit 10.28 to the Form 10-K filed by the registrant on March 6. 2003)* | |
| 10.26 | First Amendment to Restricted Stock Award Agreement for John R. Cochran (incorporated by reference from Exhibit 10.29 to the Form 10-K/A filed by the registrant on April 30, 2001)* | |
| 10.27 | Amended and Restated SERP Agreement for John R. Cochran (incorporated by reference from Exhibit 10.30 to the Form 10-K/A filed by the registrant on April 30, 2001)* | |
| 10.28 | Form of FirstMerit Corporation Change in Control Termination Agreement (incorporated by reference from Exhibit 10.1 to the Form 8-K filed by the registrant on November 5, 2004)* | |
| 10.29 | Form of FirstMerit Corporation Displacement Agreement (incorporated by reference from Exhibit 10.2 to the Form 8-K filed by the registrant on November 5, 2004)* | |
| 10.30 | Form of Director and Officer Indemnification Agreement and Undertaking (incorporated by reference from Exhibit 10.35 to the Form 10-K/A filed by the registrant on April 30, 2002) | |
| 10.31 | Credit Agreement between FirstMerit Corporation and CitiBank, N.A. (incorporated by reference from Exhibit 99.1 to the Form 8-K filed by the registrant on December 7, 2006) | |
| 10.32 | Distribution Agreement, by and among FirstMerit Bank, N.A. and the Agents, dated July 15, 1999 (incorporated by reference from Exhibit 10.41 to the Form 10-K filed by the registrant on March 10, 2000) | |
| 10.33 | Accelerated Share Repurchase Master Confirmation (incorporated by reference from Exhibit 99.1 to the Form 8-K filed by the registrant on January 20, 2006 | |
| 10.34 | Employment Agreement of Paul G. Greig dated May 15, 2006 (incorporated by reference from Exhibit 99.1 to the Form 8-K filed by the registrant on May 18, 2006)* | |
| 10.35 | Restricted Stock Award Agreement of Paul G. Greig dated May 15, 2006 (incorporated by reference from Exhibit 10.37 to the Form 10-K filed by the registrant on February 28, 2007)* | |
| 10.36 | Transition Agreement with George P. Paidas October 25, 2006 (incorporated by reference from Exhibit 99.1 to the Form 8-K filed by the registrant on October 27, 2006)* | |
| 10.37 | Retirement Agreement with Robert P. Brecht dated January 12, 2007 (incorporated by reference from Exhibit 10.39 to the Form 10-K filed by the registrant on February 28, 2007)* | |
| 10.38 | Employment Agreement of Terri L. Cable Effective November 1, 2004 (incorporated by reference from Exhibit 10.40 to the Form 10-K filed by the registrant on February 28, 2007)* | |
| 10.39 | Amendment to Employment Agreement of Terri L. Cable Effective November 1, 2005 (incorporated by reference from Exhibit 10.41 to the Form 10-K filed by the registrant on February 28, 2007)* | |
| 21 | Subsidiaries of FirstMerit Corporation (incorporated by reference from Exhibit 21 to the Form 10-K filed by the registrant on February 28, 2007) |
| Exhibit | ||
| Number | ||
| 23 | Consent of Hausser + Taylor LLC | |
| 24 | Power of Attorney (incorporated by reference from Exhibit 24 to the Form 10-K filed by the registrant on February 28, 2007) | |
| 31.1 | Rule 13a-14(a)/Section 302 Certification of John R. Cochran, Chairman and Chief Executive Officer of FirstMerit Corporation | |
| 31.2 | Rule 13a-14(a)/Section 302 Certification of Terrence E. Bichsel, Executive Vice President and Chief Financial Officer of FirstMerit Corporation | |
| 32.1 | Rule 13a-14(b)/Section 906 Certification of John R. Cochran, Chairman and Chief Executive Officer of FirstMerit Corporation | |
| 32.2 | Rule 13a-14(b)/Section 906 Certifications of Terrence E. Bichsel, Executive Vice President and Chief Financial Officer of FirstMerit Corporation |
| * | Indicates management contract or compensatory plan or arrangement |