Exhibit 99.1
FOR IMMEDIATE RELEASE
FirstMerit Corporation
Analysts: Thomas O’Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075
FirstMerit Reports Fourth Quarter and 2008 Full Year Results
4Q08 EPS of $0.36 and 2008 EPS of $1.48 Per Share
Akron, Ohio (January 27, 2009) — FirstMerit Corporation (Nasdaq: FMER) today announced fourth quarter 2008 net income of $29.1 million, or $0.36 per diluted share. This compares with $29.8 million, or $0.37 per diluted share, for the third quarter 2008 and $31.5 million, or $0.39 per diluted share, for the fourth quarter 2007. For the full year 2008, the Company reported net income of $119.5 million, or $1.48 per diluted share, compared with $123.0 million, or $1.53 per diluted share in 2007.
Returns on average common equity (“ROE”) and average assets (“ROA”) for the fourth quarter 2008 were 12.47% and 1.08%, respectively, compared with 12.73% and 1.12%, respectively, for the third quarter 2008 and 13.87% and 1.21% for the fourth quarter 2007.
“The fourth quarter and full year 2008 financial results reflect the measured steps we have taken to profitably grow our franchise and maintain the strengths of our balance sheet and integrity of our risk management processes,” said Paul G. Greig, Chairman and Chief Executive Officer of FirstMerit Corporation. “FirstMerit employees are incented to pursue organic growth opportunities and develop business relationships aligned with our highest standards of credit quality. We have also managed our business to ensure our future growth is supported with ample liquidity and capital levels in the face of uncertain challenges in today’s economy.”
Mr. Greig said, “Our bankers took advantage of growth opportunities in 2008 stemming from severe market disruption in Northeast Ohio and generated robust commercial loan growth. The 11.3% increase in average commercial loans at the end of the fourth quarter of 2008 compared with the prior year quarter was matched with 9.2% growth in our average core deposits for the same time period, highlighting our ability to execute on the super community banking model and to develop deep and profitable banking relationships with new and existing customers.”
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FirstMerit Reports Fourth Quarter 2008 EPS Results/ Page 2
Average loans during the fourth quarter of 2008 increased $83.9 million, or 1.15%, compared with the third quarter of 2008 and increased $414.7 million, or 5.97%, compared with the fourth quarter of 2007. Increases in the respective periods were due to average commercial loan growth of $104.2 million, or 2.50%, and $433.9 million, or 11.30%.
Average deposits were $7.7 billion during the fourth quarter of 2008, up $346.2 million, or 4.73%, compared with the third quarter of 2008, and an increase of $332.7 million, or 4.53%, compared with the fourth quarter of 2007. For the fourth quarter 2008, average core deposits (which are defined as checking accounts, savings accounts and money market savings products) increased $202.6 million, or 4.41%, compared with the third quarter 2008 and $403.0 million, or 9.16%, compared with the fourth quarter 2007. Core deposits represented 62.57% of total average deposits, compared with 62.76% for the third quarter 2008 and 59.92% for the fourth quarter 2007. The increase in both periods reflects success stemming from strategic retail and business marketing campaigns for core deposits within the Company’s regional banking areas.
The Company’s investment portfolio yield increased in the fourth quarter of 2008, to 5.01%, compared with 4.97% in the third quarter of 2008, and increased from 4.99% in the fourth quarter of 2007. The increased investment portfolio yields contributed to net interest margin expansion in both periods.
Net interest margin was 3.82% for the fourth quarter of 2008 compared with 3.78% for the third quarter of 2008 and 3.66% for the fourth quarter of 2007. Lower funding costs supported margin expansion over both periods.
Net interest income on a fully tax-equivalent (“FTE”) basis was $94.9 million in the fourth quarter 2008 compared with $92.7 million in the third quarter of 2008 and $87.6 million in the fourth quarter of 2007. The increases in FTE net interest income compared with those two periods resulted from expansion in the net interest margin due to decreased liability costs.
Noninterest income net of securities transactions for the fourth quarter of 2008 was $51.2 million, an increase of $4.2 million, or 8.95%, from the third quarter of 2008 and an increase of $2.4 million, or 4.85%, from the fourth quarter of 2007. In the fourth quarter of 2008 the Company recorded $5.8 million of other income from the sale of Class B Visa Inc. stock. Noninterest income, net of securities gains, as a percentage of net revenue for the fourth quarter of 2008 was 35.07% compared with 33.67% for third quarter of 2008 and 35.80% for the fourth quarter of 2007. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.
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FirstMerit Reports Fourth Quarter 2008 EPS Results/ Page 3
Noninterest expense for the fourth quarter of 2008 was $88.2 million, an increase of $7.6 million, or 9.47%, from the third quarter of 2008 and an increase of $4.9 million, or 5.94%, from the fourth quarter of 2007. In the fourth quarter of 2008 the Company recorded $4.0 million of other expense related to an accrual for litigation, $0.4 million in severance cost from a reduction in force during the quarter and $1.1 million related to foreclosed property. For 2008, operating expenses increased $0.4 million, or 0.12%, compared with 2007, reflecting the success of the Company’s strategy to fully rationalize costs throughout the organization. For the fourth quarter of 2008, the efficiency ratio was 60.34%, compared with 57.64% for the third quarter of 2008 and 60.85% for the fourth quarter of 2007.
Net charge-offs totaled $15.2 million, or 0.82% of average loans, in the fourth quarter of 2008 compared with $11.8 million, or 0.64% of average loans, in the third quarter 2008 and $8.9 million, or 0.51% of average loans, in the fourth quarter of 2007.
Nonperforming assets totaled $57.5 million at December 31, 2008, an increase of $14.0 million, or 32.27%, compared with September 30, 2008. Nonperforming assets at December 31, 2008 represented 0.77% of period-end loans plus other real estate compared with 0.59% at September 30, 2008.
The allowance for loan losses totaled $103.8 million at December 31, 2008, an increase of $1.8 million from September 30, 2008. At December 31, 2008, the allowance for loan losses was 1.40% of period-end loans compared with 1.38% at September 30, 2008. 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 1.49% at December 31, 2008 compared with 1.47% at September 30, 2008. The allowance for credit losses to nonperforming loans was 211.38% at December 31, 2008, compared with 281.28% at September 30, 2008.
FirstMerit’s total assets at December 31, 2008 were $11.1 billion, an increase of $415.2 million, or 3.89%, compared with September 30, 2008 and an increase of $699.4 million, or 6.72%, compared with December 31, 2007. Investment securities increased $322.6 million, or 13.17%, and commercial loans increased $79.7 million, or 1.86%, compared with September 30, 2008. Commercial loans increased $446.3 million, or 11.42%, compared with December 31, 2007, contributing to the majority of asset growth over the prior year period.
Total deposits were $7.6 billion at December 31, 2008, an increase of $167.1 million, or 2.25%, from September 30, 2008 and an increase of $265.9 million, or 3.63%, from December 31, 2007. Core deposits totaled $4.8 billion at December 31, 2008, an increase of $225.6 million, or 4.91%, from September 30, 2008 and an increase of $310.9 million, or 6.90%, from December 31, 2007.
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FirstMerit Reports Fourth Quarter 2008 EPS Results/ Page 4
Shareholders’ equity was $937.8 million at December 31, 2008, compared with $926.1 million at September 30, 2008, and $917.0 million at December 31, 2007. The Company maintained a strong capital position as tangible common equity to assets was 7.27% at December 31, 2008, compared with 7.45% at September 30, 2008 and 7.56% at December 31, 2007. The common dividend per share paid in the fourth quarter 2008 was $0.29.
On January 9, 2009, FirstMerit completed the sale to the United States Department of the Treasury (the “Treasury”) of $125.0 million of newly issued FirstMerit non-voting preferred shares as part of the Treasury’s Troubled Assets Relief Program Capital Purchase Program (“CPP”). All of the proceeds from this sale of the Series A Preferred Shares and the Warrant by FirstMerit to the Treasury will qualify as Tier I capital for regulatory purposes. The additional capital would have increased its Tier 1 capital ratio to 11.49% at December 31, 2008, and increased its total capital ratio to 13.09% at December 31, 2008.
Fourth quarter 2008 Conference Call
FirstMerit will host an earnings conference call today at 2:00 p.m. (Eastern Time) to provide an overview of fourth quarter results and highlights. To participate in the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 79853842. A replay of the conference call will be available at approximately 5:00 p.m. (Eastern Time), on January 27, 2009 through February 4, 2009, by dialing (800) 642-1687, and entering the PIN: 79853842.
About FirstMerit
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $11.1 billion as of December 31, 2008 and 160 banking offices and 182 ATMs in 25 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., 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
(Unaudited)
(Dollars in thousands) | |  |
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarters |
| | | 2008 | | 2008 | | 2008 | | 2008 | | 2007 |
| EARNINGS | | 4th Qtr | | 3rd Qtr | | 2nd Qtr | | 1st Qtr | | 4th Qtr |
| |
| Net interest income FTE (a) | | $ | 94,855 | | | $ | 92,659 | | | $ | 88,956 | | | $ | 85,695 | | | $ | 87,647 | |
| Provision for loan losses | | | 16,986 | | | | 15,531 | | | | 14,565 | | | | 11,521 | | | | 9,334 | |
| Other income | | | 52,795 | | | | 47,029 | | | | 48,758 | | | | 52,854 | | | | 49,993 | |
| Other expenses | | | 88,240 | | | | 80,609 | | | | 80,550 | | | | 81,234 | | | | 83,295 | |
| FTE adjustment (a) | | | 1,617 | | | | 1,538 | | | | 1,425 | | | | 1,396 | | | | 1,486 | |
| Net income | | | 29,136 | | | | 29,753 | | | | 29,153 | | | | 31,443 | | | | 31,459 | |
| Diluted EPS | | | 0.36 | | | | 0.37 | | | | 0.36 | | | | 0.39 | | | | 0.39 | |
| | | | | | | | | | | | | | | | | | | | | |
| PERFORMANCE RATIOS | | | | | | | | | | | | | | | | | | | | |
| Return on average assets (ROA) | | | 1.08 | % | | | 1.12 | % | | | 1.11 | % | | | 1.22 | % | | | 1.21 | % |
| Return on average common equity (ROE) | | | 12.47 | % | | | 12.73 | % | | | 12.31 | % | | | 13.56 | % | | | 13.87 | % |
| Net interest margin FTE (a) | | | 3.82 | % | | | 3.78 | % | | | 3.69 | % | | | 3.60 | % | | | 3.66 | % |
| Efficiency ratio | | | 60.34 | % | | | 57.64 | % | | | 58.38 | % | | | 58.69 | % | | | 60.85 | % |
| Number of full-time equivalent employees | | | 2,575 | | | | 2,614 | | | | 2,679 | | | | 2,676 | | | | 2,688 | |
| | | | | | | | | | | | | | | | | | | | | |
| MARKET DATA | | | | | | | | | | | | | | | | | | | | |
| Book value/common share | | $ | 11.58 | | | $ | 11.44 | | | $ | 11.43 | | | $ | 11.59 | | | $ | 11.39 | |
| Period-end common share mkt value | | | 20.59 | | | | 21.00 | | | | 16.31 | | | | 20.66 | | | | 20.01 | |
| Market as a % of book | | | 178 | % | | | 184 | % | | | 143 | % | | | 178 | % | | | 176 | % |
| Cash dividends/common share | | $ | 0.29 | | | $ | 0.29 | | | $ | 0.29 | | | $ | 0.29 | | | $ | 0.29 | |
| Common stock dividend payout ratio | | | 80.56 | % | | | 78.38 | % | | | 80.56 | % | | | 74.36 | % | | | 74.36 | % |
| Average basic common shares | | | 80,972 | | | | 80,869 | | | | 80,855 | | | | 80,655 | | | | 80,477 | |
| Average diluted common shares | | | 80,981 | | | | 80,896 | | | | 80,898 | | | | 80,722 | | | | 80,595 | |
| Period end common shares | | | 80,960 | | | | 80,974 | | | | 80,846 | | | | 80,879 | | | | 80,482 | |
| Common shares repurchased | | | 61,329 | | | | 42,429 | | | | 34,380 | | | | 5,426 | | | | 6,066 | |
| Common stock market capitalization | | $ | 1,666,966 | | | $ | 1,700,454 | | | $ | 1,318,598 | | | $ | 1,670,960 | | | $ | 1,610,445 | |
| | | | | | | | | | | | | | | | | | | | | |
| ASSET QUALITY | | | | | | | | | | | | | | | | | | | | |
| Gross charge-offs | | $ | 17,932 | | | $ | 14,957 | | | $ | 14,830 | | | $ | 14,669 | | | $ | 11,768 | |
| Net charge-offs | | | 15,236 | | | | 11,763 | | | | 10,737 | | | | 11,315 | | | | 8,940 | |
| Allowance for loan losses | | | 103,757 | | | | 102,007 | | | | 98,239 | | | | 94,411 | | | | 94,205 | |
| Reserve for unfunded lending commitments | | | 6,588 | | | | 6,493 | | | | 7,310 | | | | 7,903 | | | | 7,394 | |
| Nonperforming assets (NPAs) | | | 57,526 | | | | 43,491 | | | | 41,639 | | | | 35,301 | | | | 37,262 | |
| Net charge-offs/average loans ratio | | | 0.82 | % | | | 0.64 | % | | | 0.60 | % | | | 0.65 | % | | | 0.51 | % |
| Allowance for loan losses/period-end loans | | | 1.40 | % | | | 1.38 | % | | | 1.36 | % | | | 1.33 | % | | | 1.35 | % |
| Allowance for credit losses/period-end loans | | | 1.49 | % | | | 1.47 | % | | | 1.46 | % | | | 1.45 | % | | | 1.45 | % |
| NPAs/loans and other real estate | | | 0.77 | % | | | 0.59 | % | | | 0.57 | % | | | 0.50 | % | | | 0.53 | % |
| Allowance for loan losses/nonperforming loans | | | 198.76 | % | | | 264.45 | % | | | 268.52 | % | | | 318.89 | % | | | 299.70 | % |
| Allowance for credit losses/nonperforming loans | | | 211.38 | % | | | 281.28 | % | | | 288.50 | % | | | 345.59 | % | | | 323.22 | % |
| | | | | | | | | | | | | | | | | | | | | |
| CAPITAL & LIQUIDITY | | | | | | | | | | | | | | | | | | | | |
| Period-end tangible equity to assets | | | 7.27 | % | | | 7.45 | % | | | 7.52 | % | | | 7.68 | % | | | 7.56 | % |
| Average equity to assets | | | 8.66 | % | | | 8.79 | % | | | 9.06 | % | | | 8.98 | % | | | 8.72 | % |
| Average equity to loans | | | 12.62 | % | | | 12.76 | % | | | 13.34 | % | | | 13.27 | % | | | 12.94 | % |
| Average loans to deposits | | | 96.01 | % | | | 99.40 | % | | | 97.29 | % | | | 95.82 | % | | | 94.71 | % |
| | | | | | | | | | | | | | | | | | | | | |
| AVERAGE BALANCES | | | | | | | | | | | | | | | | | | | | |
| Assets | | $ | 10,731,029 | | | $ | 10,569,496 | | | $ | 10,520,469 | | | $ | 10,388,359 | | | $ | 10,313,707 | |
| Deposits | | | 7,672,560 | | | | 7,326,364 | | | | 7,339,506 | | | | 7,330,097 | | | | 7,339,827 | |
| Loans | | | 7,366,246 | | | | 7,282,333 | | | | 7,140,627 | | | | 7,023,928 | | | | 6,951,544 | |
| Earning assets | | | 9,876,488 | | | | 9,755,812 | | | | 9,704,252 | | | | 9,581,121 | | | | 9,493,271 | |
| Shareholders’ equity | | | 929,788 | | | | 929,495 | | | | 952,769 | | | | 932,405 | | | | 899,624 | |
| | | | | | | | | | | | | | | | | | | | | |
| ENDING BALANCES | | | | | | | | | | | | | | | | | | | | |
| Assets | | $ | 11,100,026 | | | $ | 10,684,845 | | | $ | 10,564,752 | | | $ | 10,516,828 | | | $ | 10,400,666 | |
| Deposits | | | 7,597,679 | | | | 7,430,556 | | | | 7,277,184 | | | | 7,422,678 | | | | 7,331,739 | |
| Loans | | | 7,425,613 | | | | 7,381,592 | | | | 7,240,882 | | | | 7,072,797 | | | | 7,001,886 | |
| Goodwill | | | 139,245 | | | | 139,245 | | | | 139,245 | | | | 139,245 | | | | 139,245 | |
| Intangible assets | | | 1,403 | | | | 1,490 | | | | 1,577 | | | | 1,754 | | | | 1,977 | |
| Earning assets | | | 10,209,602 | | | | 9,840,951 | | | | 9,724,859 | | | | 9,688,270 | | | | 9,509,680 | |
| Total shareholders’ equity | | | 937,843 | | | | 926,078 | | | | 924,429 | | | | 937,439 | | | | 916,977 | |
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. |
5
CONSOLIDATED BALANCE SHEETS
FIRSTMERIT CORPORATION AND SUBSIDIARIES
| | | | | | | | | |
| | | December 31, | |
| | | 2008 | | | 2007 | |
| | | (In thousands) | |
ASSETS | | | | | | | | |
| Cash and due from banks | | $ | 178,406 | | | $ | 207,335 | |
| Investment securities (at market value) and federal funds sold | | | 2,772,848 | | | | 2,460,453 | |
| Loans held for sale | | | 11,141 | | | | 47,341 | |
| Loans: | | | | | | | | |
| Commercial loans | | | 4,352,730 | | | | 3,906,448 | |
| Mortgage loans | | | 547,125 | | | | 577,219 | |
| Installment loans | | | 1,574,587 | | | | 1,598,832 | |
| Home equity loans | | | 733,832 | | | | 691,922 | |
| Credit card loans | | | 149,745 | | | | 153,732 | |
| Leases | | | 67,594 | | | | 73,733 | |
| | | | | | | |
| Total loans | | | 7,425,613 | | | | 7,001,886 | |
| Allowance for loan losses | | | (103,757 | ) | | | (94,205 | ) |
| | | | | | | |
| Net loans | | | 7,321,856 | | | | 6,907,681 | |
| Premises and equipment, net | | | 133,184 | | | | 130,469 | |
| Goodwill | | | 139,245 | | | | 139,245 | |
| Other intangible assets | | | 1,403 | | | | 1,977 | |
| Accrued interest receivable and other assets | | | 541,943 | | | | 506,165 | |
| | | | | | | |
| Total assets | | $ | 11,100,026 | | | $ | 10,400,666 | |
| | | | | | | |
| | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | |
| | | | | | | | | |
| Deposits: | | | | | | | | |
| Demand-non-interest bearing | | $ | 1,637,534 | | | $ | 1,482,480 | |
| Demand-interest bearing | | | 666,615 | | | | 727,966 | |
| Savings and money market accounts | | | 2,512,331 | | | | 2,295,147 | |
| Certificates and other time deposits | | | 2,781,199 | | | | 2,826,146 | |
| | | | | | | |
| Total deposits | | | 7,597,679 | | | | 7,331,739 | |
| | | | | | | |
| Securities sold under agreements to repurchase | | | 921,390 | | | | 1,256,080 | |
| Wholesale borrowings | | | 1,344,195 | | | | 705,121 | |
| Accrued taxes, expenses, and other liabilities | | | 298,919 | | | | 190,749 | |
| | | | | | | |
| Total liabilities | | | 10,162,183 | | | | 9,483,689 | |
| | | | | | | |
| | | | | | | | | |
| 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 December 31, 2008 and 2007 | | | 127,937 | | | | 127,937 | |
| Capital surplus | | | 94,802 | | | | 100,028 | |
| Accumulated other comprehensive loss | | | (54,080 | ) | | | (43,085 | ) |
| Retained earnings | | | 1,053,435 | | | | 1,027,775 | |
| Treasury stock, at cost, 11,066,108 and 11,543,882 shares, at December 31, 2008 and 2007, respectively | | | (284,251 | ) | | | (295,678 | ) |
| | | | | | | |
| | | | | | | | | |
| Total shareholders’ equity | | | 937,843 | | | | 916,977 | |
| | | | | | | |
| | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 11,100,026 | | | $ | 10,400,666 | |
| | | | | | | |
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| | |
FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
(Unaudited)
(Dollars in thousands) | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | Quarterly Periods | |
| | | December 31, | | | September 30, | | | June 30, | | | March 31, | | | December 31, | |
| | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 192,804 | | | $ | 171,370 | | | $ | 173,044 | | | $ | 171,028 | | | $ | 175,164 | |
| Investment securities/fed funds sold | | | 2,501,346 | | | | 2,461,431 | | | | 2,515,546 | | | | 2,508,125 | | | | 2,494,975 | |
| Loans held for sale | | | 8,896 | | | | 12,048 | | | | 48,079 | | | | 49,068 | | | | 46,752 | |
| Loans: | | | | | | | | | | | | | | | | | | | | |
| Commercial loans | | | 4,273,123 | | | | 4,168,951 | | | | 4,069,305 | | | | 3,941,573 | | | | 3,839,242 | |
| Mortgage loans | | | 555,713 | | | | 569,293 | | | | 577,178 | | | | 584,000 | | | | 581,370 | |
| Installment loans | | | 1,596,053 | | | | 1,617,265 | | | | 1,584,825 | | | | 1,587,267 | | | | 1,615,035 | |
| Home equity loans | | | 722,466 | | | | 709,365 | | | | 692,567 | | | | 686,603 | | | | 696,259 | |
| Credit card loans | | | 150,133 | | | | 147,924 | | | | 147,242 | | | | 150,575 | | | | 149,466 | |
| Leases | | | 68,758 | | | | 69,535 | | | | 69,510 | | | | 73,910 | | | | 70,172 | |
| | | | | | | | | | | | | | | | |
| Total loans | | | 7,366,246 | | | | 7,282,333 | | | | 7,140,627 | | | | 7,023,928 | | | | 6,951,544 | |
| Less allowance for loan losses | | | 100,898 | | | | 98,091 | | | | 94,002 | | | | 93,804 | | | | 92,667 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Net loans | | | 7,265,348 | | | | 7,184,242 | | | | 7,046,625 | | | | 6,930,124 | | | | 6,858,877 | |
| | | | | | | | | | | | | | | | | | | | | |
| Total earning assets | | | 9,876,488 | | | | 9,755,812 | | | | 9,704,252 | | | | 9,581,121 | | | | 9,493,271 | |
| | | | | | | | | | | | | | | | | | | | | |
| Premises and equipment, net | | | 130,511 | | | | 127,267 | | | | 126,488 | | | | 128,185 | | | | 132,129 | |
| Accrued interest receivable and other assets | | | 632,124 | | | | 613,138 | | | | 610,687 | | | | 601,829 | | | | 605,810 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
TOTAL ASSETS | | $ | 10,731,029 | | | $ | 10,569,496 | | | $ | 10,520,469 | | | $ | 10,388,359 | | | $ | 10,313,707 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
LIABILITIES | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand-non-interest bearing | | $ | 1,607,901 | | | $ | 1,545,427 | | | $ | 1,518,841 | | | $ | 1,446,889 | | | $ | 1,435,358 | |
| Demand-interest bearing | | | 658,208 | | | | 678,803 | | | | 709,922 | | | | 702,115 | | | | 699,675 | |
| Savings and money market accounts | | | 2,534,702 | | | | 2,373,995 | | | | 2,366,296 | | | | 2,318,899 | | | | 2,262,818 | |
| Certificates and other time deposits | | | 2,871,749 | | | | 2,728,139 | | | | 2,744,447 | | | | 2,862,194 | | | | 2,941,976 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | | 7,672,560 | | | | 7,326,364 | | | | 7,339,506 | | | | 7,330,097 | | | | 7,339,827 | |
| | | | | | | | | | | | | | | | | | | | | |
| Securities sold under agreements to repurchase | | | 1,168,438 | | | | 1,504,011 | | | | 1,312,436 | | | | 1,310,364 | | | | 1,517,241 | |
| Wholesale borrowings | | | 766,358 | | | | 634,226 | | | | 711,132 | | | | 618,572 | | | | 369,685 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total funds | | | 9,607,356 | | | | 9,464,601 | | | | 9,363,074 | | | | 9,259,033 | | | | 9,226,753 | |
| Accrued taxes, expenses and other liabilities | | | 193,885 | | | | 175,400 | | | | 204,626 | | | | 196,921 | | | | 187,330 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total liabilities | | | 9,801,241 | | | | 9,640,001 | | | | 9,567,700 | | | | 9,455,954 | | | | 9,414,083 | |
| | | | | | | | | | | | | | | | | | | | | |
SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | |
| Preferred stock | | | — | | | | — | | | | — | | | | — | | | | — | |
| Common stock | | | 127,937 | | | | 127,937 | | | | 127,937 | | | | 127,937 | | | | 127,937 | |
| Capital surplus | | | 93,761 | | | | 93,381 | | | | 92,313 | | | | 96,048 | | | | 99,749 | |
| Accumulated other comprehensive (loss) income | | | (62,018 | ) | | | (54,000 | ) | | | (40,757 | ) | | | (32,170 | ) | | | (60,430 | ) |
| Retained earnings | | | 1,053,992 | | | | 1,048,452 | | | | 1,059,840 | | | | 1,032,036 | | | | 1,028,170 | |
| Treasury stock | | | (283,884 | ) | | | (286,275 | ) | | | (286,564 | ) | | | (291,446 | ) | | | (295,802 | ) |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total shareholders’ equity | | | 929,788 | | | | 929,495 | | | | 952,769 | | | | 932,405 | | | | 899,624 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY | | $ | 10,731,029 | | | $ | 10,569,496 | | | $ | 10,520,469 | | | $ | 10,388,359 | | | $ | 10,313,707 | |
| | | | | | | | | | | | | | | | |
7
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| FIRSTMERIT CORPORATION AND | | | | | | | | | |
| SUBSIDIARIES | | Three months ended | | | Year ended | | | Three months ended | |
| (Dollars in thousands) | | December 31, 2008 | | | December 31, 2007 | | | December 31, 2007 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 192,804 | | | | | | | | | | | $ | 178,164 | | | | | | | | | | | $ | 175,164 | | | | | | | | | |
| Investment securities and federal funds sold: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Treasury securities and U.S. | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Government agency obligations (taxable) | | | 1,971,257 | | | | 23,984 | | | | 4.84 | % | | | 1,955,049 | | | | 85,544 | | | | 4.38 | % | | | 1,977,627 | | | | 22,949 | | | | 4.60 | % |
| Obligations of states and political subdivisions (tax exempt) | | | 316,220 | | | | 4,804 | | | | 6.04 | % | | | 255,461 | | | | 15,595 | | | | 6.10 | % | | | 276,989 | | | | 4,249 | | | | 6.09 | % |
| Other securities and federal funds sold | | | 213,869 | | | | 2,720 | | | | 5.06 | % | | | 244,749 | | | | 17,127 | | | | 7.00 | % | | | 240,359 | | | | 4,154 | | | | 6.86 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total investment securities and federal funds sold | | | 2,501,346 | | | | 31,508 | | | | 5.01 | % | | | 2,455,259 | | | | 118,266 | | | | 4.82 | % | | | 2,494,975 | | | | 31,352 | | | | 4.99 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans held for sale | | | 8,896 | | | | 100 | | | | 4.47 | % | | | 56,036 | | | | 3,050 | | | | 5.44 | % | | | 46,752 | | | | 760 | | | | 6.45 | % |
| Loans | | | 7,366,246 | | | | 105,390 | | | | 5.69 | % | | | 6,971,464 | | | | 521,172 | | | | 7.48 | % | | | 6,951,544 | | | | 127,343 | | | | 7.27 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total earning assets | | | 9,876,488 | | | | 136,998 | | | | 5.52 | % | | | 9,482,759 | | | | 642,488 | | | | 6.78 | % | | | 9,493,271 | | | | 159,455 | | | | 6.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (100,898 | ) | | | | | | | | | | | (92,662 | ) | | | | | | | | | | | (92,667 | ) | | | | | | | | |
| Other assets | | | 762,635 | | | | | | | | | | | | 750,527 | | | | | | | | | | | | 737,939 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 10,731,029 | | | | | | | | | | | $ | 10,318,788 | | | | | | | | | | | $ | 10,313,707 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand — non-interest bearing | | $ | 1,607,901 | | | | — | | | | — | | | $ | 1,408,726 | | | | — | | | | — | | | $ | 1,435,358 | | | | — | | | | — | |
| Demand — interest bearing | | | 658,208 | | | | 370 | | | | 0.22 | % | | | 733,410 | | | | 6,824 | | | | 0.93 | % | | | 699,675 | | | | 1,352 | | | | 0.77 | % |
| Savings and money market accounts | | | 2,534,702 | | | | 6,764 | | | | 1.06 | % | | | 2,266,070 | | | | 54,166 | | | | 2.39 | % | | | 2,262,818 | | | | 12,667 | | | | 2.22 | % |
| Certificates and other time deposits | | | 2,871,749 | | | | 23,816 | | | | 3.30 | % | | | 3,045,715 | | | | 146,559 | | | | 4.81 | % | | | 2,941,976 | | | | 35,290 | | | | 4.76 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | | 7,672,560 | | | | 30,950 | | | | 1.60 | % | | | 7,453,921 | | | | 207,549 | | | | 2.78 | % | | | 7,339,827 | | | | 49,309 | | | | 2.67 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Securities sold under agreements to repurchase | | | 1,168,438 | | | | 3,752 | | | | 1.28 | % | | | 1,471,785 | | | | 71,298 | | | | 4.84 | % | | | 1,517,241 | | | | 16,994 | | | | 4.44 | % |
| Wholesale borrowings | | | 766,358 | | | | 7,441 | | | | 3.86 | % | | | 326,460 | | | | 20,601 | | | | 6.31 | % | | | 369,685 | | | | 5,505 | | | | 5.91 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest bearing liabilities | | | 7,999,455 | | | | 42,143 | | | | 2.10 | % | | | 7,843,440 | | | | 299,448 | | | | 3.82 | % | | | 7,791,395 | | | | 71,808 | | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Other liabilities | | | 193,885 | | | | | | | | | | | | 191,096 | | | | | | | | | | | | 187,330 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ equity | | | 929,788 | | | | | | | | | | | | 875,526 | | | | | | | | | | | | 899,624 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 10,731,029 | | | | | | | | | | | $ | 10,318,788 | | | | | | | | | | | $ | 10,313,707 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Net yield on earning assets | | $ | 9,876,488 | | | | 94,855 | | | | 3.82 | % | | $ | 9,482,759 | | | | 343,040 | | | | 3.62 | % | | $ | 9,493,271 | | | | 87,647 | | | | 3.66 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | | | | | | | | 3.42 | % | | | | | | | | | | | 2.96 | % | | | | | | | | | | | 3.00 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | | |
Note: Interest income on tax-exempt securities and loans has been adjusted to a fully-taxable equivalent basis.
Nonaccrual loans have been included in the average balances.
8
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
| | | | | | | | | | | | | | | | | | | | | | | | | |
| FIRSTMERIT CORPORATION AND SUBSIDIARIES | | Twelve months ended | | | Twelve months ended | |
| (Dollars in thousands) | | December 31, 2008 | | | December 31, 2007 | |
| | | Average | | | | | | | Average | | | Average | | | | | | | Average | |
| | | Balance | | | Interest | | | Rate | | | Balance | | | Interest | | | Rate | |
| | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
ASSETS | | | | | | | | | | | | | | | | | | | | | | | | |
| Cash and due from banks | | $ | 177,089 | | | | | | | | | | | | 178,164 | | | | | | | | | |
| Investment securities and federal funds sold: | | | | | | | | | | | | | | | | | | | | | | | | |
| U.S. Treasury securities and U.S. Government agency obligations (taxable) | | | 1,985,026 | | | | 94,260 | | | | 4.75 | % | | | 1,955,049 | | | | 85,544 | | | | 4.38 | % |
| Obligations of states and political subdivisions (tax exempt) | | | 294,724 | | | | 17,910 | | | | 6.08 | % | | | 255,461 | | | | 15,595 | | | | 6.10 | % |
| Other securities and federal funds sold | | | 216,794 | | | | 11,326 | | | | 5.22 | % | | | 244,749 | | | | 17,127 | | | | 7.00 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total investment securities and federal | | | 2,496,544 | | | | 123,496 | | | | 4.95 | % | | | 2,455,259 | | | | 118,266 | | | | 4.82 | % |
| funds sold | | | | | | | | | | | | | | | | | | | | | | | | |
| Loans held for sale | | | 29,419 | | | | 1,602 | | | | 5.45 | % | | | 56,036 | | | | 3,050 | | | | 5.44 | % |
| Loans | | | 7,203,946 | | | | 434,704 | | | | 6.03 | % | | | 6,971,464 | | | | 521,172 | | | | 7.48 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total earning assets | | | 9,729,909 | | | | 559,802 | | | | 5.75 | % | | | 9,482,759 | | | | 642,488 | | | | 6.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses | | | (96,714 | ) | | | | | | | | | | | (92,662 | ) | | | | | | | | |
| Other assets | | | 739,158 | | | | | | | | | | | | 750,527 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total assets | | $ | 10,549,442 | | | | | | | | | | | | 10,318,788 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
LIABILITIES AND SHAREHOLDERS’ EQUITY | | | | | | | | | | | | | | | | | | | | | | | | |
| Deposits: | | | | | | | | | | | | | | | | | | | | | | | | |
| Demand — non-interest bearing | | $ | 1,530,021 | | | | — | | | | — | | | | 1,408,726 | | | | — | | | | — | |
| Demand — interest bearing | | | 687,160 | | | | 2,514 | | | | 0.37 | % | | | 733,410 | | | | 6,824 | | | | 0.93 | % |
| Savings and money market accounts | | | 2,398,778 | | | | 29,839 | | | | 1.24 | % | | | 2,266,070 | | | | 54,166 | | | | 2.39 | % |
| Certificates and other time deposits | | | 2,801,623 | | | | 105,853 | | | | 3.78 | % | | | 3,045,715 | | | | 146,559 | | | | 4.81 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total deposits | | | 7,417,582 | | | | 138,206 | | | | 1.86 | % | | | 7,453,921 | | | | 207,549 | | | | 2.78 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Securities sold under agreements to repurchase | | | 1,343,441 | | | | 31,857 | | | | 2.37 | % | | | 1,471,785 | | | | 71,298 | | | | 4.84 | % |
| Wholesale borrowings | | | 663,109 | | | | 27,574 | | | | 4.16 | % | | | 326,460 | | | | 20,601 | | | | 6.31 | % |
| | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total interest bearing liabilities | | | 7,894,111 | | | | 197,637 | | | | 2.50 | % | | | 7,843,440 | | | | 299,448 | | | | 3.82 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Other liabilities | | | 189,222 | | | | | | | | | | | | 191,096 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Shareholders’ equity | | | 936,088 | | | | | | | | | | | | 875,526 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total liabilities and shareholders’ equity | | $ | 10,549,442 | | | | | | | | | | | | 10,318,788 | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Net yield on earning assets | | $ | 9,729,909 | | | | 362,165 | | | | 3.72 | % | | | 9,482,759 | | | | 343,040 | | | | 3.62 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Interest rate spread | | | | | | | | | | | 3.25 | % | | | | | | | | | | | 2.96 | % |
| | | | | | | | | | | | | | | | | | | | | | | |
Note: Interest income on tax-exempt securities and loans has been adjusted to a fully-taxable equivalent basis.
Nonaccrual loans have been included in the average balances.
9
FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
| | | | | | | | | | | | | | | | | |
| (Unaudited) | | Quarters ended | | | Twelve months ended | |
| (In thousands except per share data) | | December 31, | | | December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| | | | | | | | | | | | | | | | | |
| Interest income: | | | | | | | | | | | | | | | | |
| Interest and fees on loans, including held for sale | | $ | 105,463 | | | $ | 128,078 | | | $ | 436,194 | | | $ | 524,103 | |
| Interest and dividends on investment securities and federal funds sold | | | 29,918 | | | | 29,891 | | | | 117,632 | | | | 112,891 | |
| | | | | | | | | | | | | |
| Total interest income | | | 135,381 | | | | 157,969 | | | | 553,826 | | | | 636,994 | |
| | | | | | | | | | | | | |
| Interest expense: | | | | | | | | | | | | | | | | |
| Interest on deposits: | | | | | | | | | | | | | | | | |
| Demand-interest bearing | | | 370 | | | | 1,352 | | | | 2,514 | | | | 6,824 | |
| Savings and money market accounts | | | 6,764 | | | | 12,667 | | | | 29,839 | | | | 54,166 | |
| Certificates and other time deposits | | | 23,816 | | | | 35,290 | | | | 105,853 | | | | 146,559 | |
| Interest on securities sold under agreements to repurchase | | | 3,752 | | | | 16,994 | | | | 31,857 | | | | 71,298 | |
| Interest on wholesale borrowings | | | 7,441 | | | | 5,505 | | | | 27,574 | | | | 20,601 | |
| | | | | | | | | | | | | |
| Total interest expense | | | 42,143 | | | | 71,808 | | | | 197,637 | | | | 299,448 | |
| | | | | | | | | | | | | |
| Net interest income | | | 93,238 | | | | 86,161 | | | | 356,189 | | | | 337,546 | |
| Provision for loan losses | | | 16,986 | | | | 9,334 | | | | 58,603 | | | | 30,835 | |
| | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 76,252 | | | | 76,827 | | | | 297,586 | | | | 306,711 | |
| | | | | | | | | | | | | |
| Other income: | | | | | | | | | | | | | | | | |
| Trust department income | | | 5,291 | | | | 5,896 | | | | 22,127 | | | | 23,245 | |
| Service charges on deposits | | | 15,450 | | | | 17,067 | | | | 62,862 | | | | 67,374 | |
| Credit card fees | | | 11,667 | | | | 12,012 | | | | 47,054 | | | | 46,502 | |
| ATM and other service fees | | | 2,613 | | | | 3,055 | | | | 10,894 | | | | 12,621 | |
| Bank owned life insurance income | | | 2,451 | | | | 3,283 | | | | 12,008 | | | | 13,476 | |
| Investment services and insurance | | | 1,949 | | | | 3,121 | | | | 10,503 | | | | 11,241 | |
| Investment securities gains, net | | | 1,555 | | | | 1,122 | | | | 2,126 | | | | 1,123 | |
| Loan sales and servicing income | | | 2,294 | | | | 1,551 | | | | 6,940 | | | | 10,311 | |
| Gain on Visa Inc. | | | 5,768 | | | | — | | | | 13,666 | | | | — | |
| Other operating income | | | 3,757 | | | | 2,886 | | | | 13,256 | | | | 11,030 | |
| | | | | | | | | | | | | |
| Total other income | | | 52,795 | | | | 49,993 | | | | 201,436 | | | | 196,923 | |
| | | | | | | | | | | | | |
| Other expenses: | | | | | | | | | | | | | | | | |
| Salaries, wages, pension and employee benefits | | | 46,991 | | | | 43,087 | | | | 179,463 | | | | 170,457 | |
| Net occupancy expense | | | 5,950 | | | | 6,284 | | | | 24,649 | | | | 25,679 | |
| Equipment expense | | | 6,139 | | | | 6,239 | | | | 24,137 | | | | 25,401 | |
| Stationery, supplies and postage | | | 2,458 | | | | 2,388 | | | | 9,372 | | | | 9,436 | |
| Bankcard, loan processing and other costs | | | 7,359 | | | | 7,482 | | | | 29,456 | | | | 29,781 | |
| Professional services | | | 3,261 | | | | 3,588 | | | | 11,695 | | | | 15,865 | |
| Amortization of intangibles | | | 87 | | | | 222 | | | | 573 | | | | 889 | |
| Other operating expense | | | 15,995 | | | | 14,005 | | | | 51,288 | | | | 52,718 | |
| | | | | | | | | | | | | |
| Total other expenses | | | 88,240 | | | | 83,295 | | | | 330,633 | | | | 330,226 | |
| | | | | | | | | | | | | |
| Income before federal income tax expense | | | 40,807 | | | | 43,525 | | | | 168,389 | | | | 173,408 | |
| Federal income tax expense | | | 11,671 | | | | 12,066 | | | | 48,904 | | | | 50,381 | |
| | | | | | | | | | | | | |
| Net income | | $ | 29,136 | | | $ | 31,459 | | | $ | 119,485 | | | $ | 123,027 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Other comprehensive income, net of taxes | | | | | | | | | | | | | | | | |
| Unrealized securities’ holding gain, net of taxes | | $ | 30,296 | | | $ | 11,271 | | | $ | 10,808 | | | $ | 22,716 | |
| Unrealized hedging gain (loss), net of taxes | | | 209 | | | | (340 | ) | | | 1,342 | | | | (1,249 | ) |
| Minimum pension liability adjustment, net of taxes | | | (24,384 | ) | | | 13,065 | | | | (21,763 | ) | | | 15,686 | |
| Less: reclassification adjustment for securities’ gain realized in net income, net of taxes | | | 1,011 | | | | 729 | | | | 1,382 | | | | 730 | |
| | | | | | | | | | | | | |
| Total other comprehensive income (loss), net of taxes | | | 5,110 | | | | 23,267 | | | | (10,995 | ) | | | 36,423 | |
| | | | | | | | | | | | | |
| Comprehensive income | | $ | 34,246 | | | $ | 54,726 | | | $ | 108,490 | | | $ | 159,450 | |
| | | | | | | | | | | | | |
| Net income applicable to common shares | | $ | 29,136 | | | $ | 31,459 | | | $ | 119,485 | | | $ | 123,027 | |
| | | | | | | | | | | | | |
| Net income used in diluted EPS calculation | | $ | 29,136 | | | $ | 31,463 | | | $ | 119,490 | | | $ | 123,043 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares outstanding — basic | | | 80,972 | | | | 80,477 | | | | 80,839 | | | | 80,372 | |
| | | | | | | | | | | | | |
| Weighted average number of common shares outstanding — diluted | | | 80,981 | | | | 80,595 | | | | 80,876 | | | | 80,510 | |
| | | | | | | | | | | | | |
| Basic earnings per share | | $ | 0.36 | | | $ | 0.39 | | | $ | 1.48 | | | $ | 1.53 | |
| | | | | | | | | | | | | |
| Diluted earnings per share | | $ | 0.36 | | | $ | 0.39 | | | $ | 1.48 | | | $ | 1.53 | |
| | | | | | | | | | | | | |
| Dividend per share | | $ | 0.29 | | | $ | 0.29 | | | $ | 1.16 | | | $ | 1.16 | |
| | | | | | | | | | | | | |
10
| | | |
FIRSTMERIT CORPORATION AND SUBSIDIARIES CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME—LINKED QUARTERS | | |
| | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | Quarterly Results | |
| (Dollars in thousands, except share data) | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| | | 4th Q | | | 3rd Q | | | 2nd Q | | | 1st Q | | | 4th Q | |
| | | | | | | | | | | | | | | | | | | | | |
| Interest and fees on loans, including held for sale | | $ | 105,463 | | | $ | 107,927 | | | $ | 106,516 | | | $ | 116,288 | | | $ | 128,078 | |
| Interest and dividends — securities and federal funds sold | | | 29,918 | | | | 29,223 | | | | 29,255 | | | | 29,236 | | | | 29,891 | |
| | | | | | | | | | | | | | | | |
| Total interest income | | | 135,381 | | | | 137,150 | | | | 135,771 | | | | 145,524 | | | | 157,969 | |
| | | | | | | | | | | | | | | | |
| Interest on deposits: | | | | | | | | | | | | | | | | | | | | |
| Demand-interest bearing | | | 370 | | | | 589 | | | | 591 | | | | 964 | | | | 1,352 | |
| Savings and money market accounts | | | 6,764 | | | | 6,932 | | | | 6,500 | | | | 9,643 | | | | 12,667 | |
| Certificates and other time deposits | | | 23,816 | | | | 23,463 | | | | 26,587 | | | | 31,987 | | | | 35,290 | |
| Securities sold under agreements to repurchase | | | 3,752 | | | | 8,244 | | | | 8,319 | | | | 11,542 | | | | 16,994 | |
| Wholesale borrowings | | | 7,441 | | | | 6,801 | | | | 6,243 | | | | 7,089 | | | | 5,505 | |
| | | | | | | | | | | | | | | | |
| Total interest expense | | | 42,143 | | | | 46,029 | | | | 48,240 | | | | 61,225 | | | | 71,808 | |
| | | | | | | | | | | | | | | | |
| Net interest income | | | 93,238 | | | | 91,121 | | | | 87,531 | | | | 84,299 | | | | 86,161 | |
| Provision for loan losses | | | 16,986 | | | | 15,531 | | | | 14,565 | | | | 11,521 | | | | 9,334 | |
| | | | | | | | | | | | | | | | |
| Net interest income after provision for loan losses | | | 76,252 | | | | 75,590 | | | | 72,966 | | | | 72,778 | | | | 76,827 | |
| | | | | | | | | | | | | | | | |
| Other income: | | | | | | | | | | | | | | | | | | | | |
| Trust department income | | | 5,291 | | | | 5,562 | | | | 5,824 | | | | 5,450 | | | | 5,896 | |
| Service charges on deposits | | | 15,450 | | | | 16,648 | | | | 16,028 | | | | 14,736 | | | | 17,067 | |
| Credit card fees | | | 11,667 | | | | 12,084 | | | | 12,146 | | | | 11,157 | | | | 12,012 | |
| ATM and other service fees | | | 2,613 | | | | 2,717 | | | | 2,770 | | | | 2,794 | | | | 3,055 | |
| Bank owned life insurance income | | | 2,451 | | | | 3,139 | | | | 3,217 | | | | 3,201 | | | | 3,283 | |
| Investment services and insurance | | | 1,949 | | | | 2,899 | | | | 2,790 | | | | 2,865 | | | | 3,121 | |
| Investment securities gains (losses), net | | | 1,555 | | | | — | | | | 47 | | | | 524 | | | | 1,122 | |
| Loan sales and servicing income | | | 2,294 | | | | 1,370 | | | | 1,885 | | | | 1,391 | | | | 1,551 | |
| Gain on Visa Inc. | | | 5,768 | | | | — | | | | — | | | | 7,898 | | | | — | |
| Other operating income | | | 3,757 | | | | 2,610 | | | | 4,051 | | | | 2,838 | | | | 2,886 | |
| | | | | | | | | | | | | | | | |
| Total other income | | | 52,795 | | | | 47,029 | | | | 48,758 | | | | 52,854 | | | | 49,993 | |
| | | | | | | | | | | | | | | | |
| Other expenses: | | | | | | | | | | | | | | | | | | | | |
| Salaries, wages, pension and employee benefits | | | 46,991 | | | | 45,043 | | | | 44,364 | | | | 43,065 | | | | 43,087 | |
| Net occupancy expense | | | 5,950 | | | | 5,741 | | | | 6,204 | | | | 6,754 | | | | 6,284 | |
| Equipment expense | | | 6,139 | | | | 5,962 | | | | 5,842 | | | | 6,194 | | | | 6,239 | |
| Stationery, supplies and postage | | | 2,458 | | | | 2,347 | | | | 2,242 | | | | 2,325 | | | | 2,388 | |
| Bankcard, loan processing and other costs | | | 7,359 | | | | 7,497 | | | | 7,356 | | | | 7,244 | | | | 7,482 | |
| Professional services | | | 3,261 | | | | 3,966 | | | | 2,581 | | | | 1,887 | | | | 3,588 | |
| Amortization of intangibles | | | 87 | | | | 86 | | | | 177 | | | | 223 | | | | 222 | |
| Other operating expense | | | 15,995 | | | | 9,967 | | | | 11,784 | | | | 13,542 | | | | 14,005 | |
| | | | | | | | | | | | | | | | |
| Total other expenses | | | 88,240 | | | | 80,609 | | | | 80,550 | | | | 81,234 | | | | 83,295 | |
| | | | | | | | | | | | | | | | |
| Income before income tax expense | | | 40,807 | | | | 42,010 | | | | 41,174 | | | | 44,398 | | | | 43,525 | |
| Federal income taxes | | | 11,671 | | | | 12,257 | | | | 12,021 | | | | 12,955 | | | | 12,066 | |
| | | | | | | | | | | | | | | | |
| Net income | | $ | 29,136 | | | $ | 29,753 | | | $ | 29,153 | | | $ | 31,443 | | | $ | 31,459 | |
| | | | | | | | | | | | | | | | |
| Other comprehensive income (loss), net of taxes | | | 5,110 | | | | (7,756 | ) | | | (19,858 | ) | | | 11,509 | | | | 23,267 | |
| | | | | | | | | | | | | | | | |
| Comprehensive income | | $ | 34,246 | | | $ | 21,997 | | | $ | 9,295 | | | $ | 42,952 | | | $ | 54,726 | |
| | | | | | | | | | | | | | | | |
| Net income applicable to common shares | | $ | 29,136 | | | $ | 29,753 | | | $ | 29,153 | | | $ | 31,443 | | | $ | 31,459 | |
| | | | | | | | | | | | | | | | |
| Adjusted net income used in diluted EPS calculation | | $ | 29,136 | | | $ | 29,753 | | | $ | 29,154 | | | $ | 31,447 | | | $ | 31,463 | |
| | | | | | | | | | | | | | | | |
| Weighted-average common shares — basic | | | 80,972 | | | | 80,869 | | | | 80,855 | | | | 80,655 | | | | 80,477 | |
| | | | | | | | | | | | | | | | |
| Weighted-average common shares — diluted | | | 80,981 | | | | 80,896 | | | | 80,898 | | | | 80,722 | | | | 80,595 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Basic net income per share | | $ | 0.36 | | | $ | 0.37 | | | $ | 0.36 | | | $ | 0.39 | | | $ | 0.39 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Diluted net income per share | | $ | 0.36 | | | $ | 0.37 | | | $ | 0.36 | | | $ | 0.39 | | | $ | 0.39 | |
| | | | | | | | | | | | | | | | |
11
| | | |
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| (Unaudited, except December 31, 2007 annual period which | | | | | | |
| is derived from the audited financial statements) | | | | | | |
| (Dollars in thousands, except ratios) | | | | | | |
| | | Quarterly Periods | | | Annual Period | |
| | | Dec 31 | | | Sept 30 | | | Jun 30 | | | Mar 31 | | | Dec 31 | | | Dec 31 | |
| | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | | | 2007 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Allowance for Credit Losses | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses, beginning of period | | $ | 102,007 | | | $ | 98,239 | | | $ | 94,411 | | | $ | 94,205 | | | $ | 93,811 | | | $ | 91,342 | |
| Provision for loan losses | | | 16,986 | | | | 15,531 | | | | 14,565 | | | | 11,521 | | | | 9,334 | | | | 30,835 | |
| Charge-offs | | | 17,932 | | | | 14,957 | | | | 14,830 | | | | 14,669 | | | | 11,768 | | | | 44,148 | |
| Recoveries | | | 2,696 | | | | 3,194 | | | | 4,093 | | | | 3,354 | | | | 2,828 | | | | 16,176 | |
| | | | | | | | | | | | | | | | | | | |
| Net charge-offs | | | 15,236 | | | | 11,763 | | | | 10,737 | | | | 11,315 | | | | 8,940 | | | | 27,972 | |
| | | | | | | | | | | | | | | | | | | |
| Allowance for loan losses, end of period | | $ | 103,757 | | | $ | 102,007 | | | $ | 98,239 | | | $ | 94,411 | | | $ | 94,205 | | | $ | 94,205 | |
| | | | | | | | | | | | | | | | | | | |
| Reserve for unfunded lending commitments, beginning of period | | $ | 6,493 | | | $ | 7,310 | | | $ | 7,903 | | | $ | 7,394 | | | $ | 7,409 | | | $ | 6,294 | |
| Provision for credit losses | | | 95 | | | | (817 | ) | | | (593 | ) | | | 509 | | | | (15 | ) | | | 1,100 | |
| | | | | | | | | | | | | | | | | | | |
| Reserve for unfunded lending commitments, end of period | | $ | 6,588 | | | $ | 6,493 | | | $ | 7,310 | | | $ | 7,903 | | | $ | 7,394 | | | $ | 7,394 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Allowance for Credit Losses | | $ | 110,345 | | | $ | 108,500 | | | $ | 105,549 | | | $ | 102,314 | | | $ | 101,599 | | | $ | 101,599 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Ratios | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Provision for loan losses as a % of average loans | | | 0.92 | % | | | 0.85 | % | | | 0.82 | % | | | 0.66 | % | | | 0.53 | % | | | 0.44 | % |
| Provision for credit losses as a % of average loans | | | 0.01 | % | | | -0.04 | % | | | -0.03 | % | | | 0.03 | % | | | 0.00 | % | | | 0.02 | % |
| Net charge-offs as a % of average loans | | | 0.82 | % | | | 0.64 | % | | | 0.60 | % | | | 0.65 | % | | | 0.51 | % | | | 0.40 | % |
| Allowance for loan losses as a % of period-end loans | | | 1.40 | % | | | 1.38 | % | | | 1.36 | % | | | 1.33 | % | | | 1.35 | % | | | 1.35 | % |
| Allowance for credit losses as a % of period-end loans | | | 1.49 | % | | | 1.47 | % | | | 1.46 | % | | | 1.45 | % | | | 1.45 | % | | | 1.45 | % |
| Allowance for loan losses as a % of nonperforming loans | | | 198.76 | % | | | 264.45 | % | | | 268.52 | % | | | 318.89 | % | | | 299.70 | % | | | 299.70 | % |
| Allowance for credit losses as a % of nonperforming loans | | | 211.38 | % | | | 281.28 | % | | | 288.50 | % | | | 345.59 | % | | | 323.22 | % | | | 323.22 | % |
| | | | | | | | | | | | | | | | | | | | | | | | | |
Asset Quality | | | | | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Impaired loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual | | $ | 40,195 | | | $ | 29,245 | | | $ | 26,702 | | | $ | 19,777 | | | $ | 21,513 | | | $ | 21,513 | |
| Other nonperforming loans: | | | | | | | | | | | | | | | | | | | | | | | | |
| Nonaccrual | | | 12,007 | | | | 9,328 | | | | 9,884 | | | | 9,829 | | | | 9,920 | | | | 9,920 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming loans | | | 52,202 | | | | 38,573 | | | | 36,586 | | | | 29,606 | | | | 31,433 | | | | 31,433 | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Other real estate (“ORE”) | | | 5,324 | | | | 4,918 | | | | 5,053 | | | | 5,695 | | | | 5,829 | | | | 5,829 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Total nonperforming assets (“NPAs”) | | $ | 57,526 | | | $ | 43,491 | | | $ | 41,639 | | | $ | 35,301 | | | $ | 37,262 | | | $ | 37,262 | |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| NPAs as % of period-end loans + ORE | | | 0.77 | % | | | 0.59 | % | | | 0.57 | % | | | 0.50 | % | | | 0.53 | % | | | 0.53 | % |
| | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | | | | | |
| Past due 90 days or more & accruing interest | | $ | 23,928 | | | $ | 16,241 | | | $ | 10,654 | | | $ | 10,931 | | | $ | 11,702 | | | $ | 11,702 | |
| | | | | | | | | | | | | | | | | | | |
12
| | | |
FIRSTMERIT CORPORATION
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL | | |
| | | | | | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | | | | | | | | | | |
| (Dollars in thousands) | | | | | | | | | | | | | | | |
| | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| | | 4th Qtr | | | 3rd Qtr | | | 2nd Qtr | | | 1st Qtr | | | 4th Qtr | |
| | | | | | | | | | | | | | | | | | | | | |
QUARTERLY OTHER INCOME DETAIL | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Trust department income | | $ | 5,291 | | | $ | 5,562 | | | $ | 5,824 | | | $ | 5,450 | | | $ | 5,896 | |
| Service charges on deposits | | | 15,450 | | | | 16,648 | | | | 16,028 | | | | 14,736 | | | | 17,067 | |
| Credit card fees | | | 11,667 | | | | 12,084 | | | | 12,146 | | | | 11,157 | | | | 12,012 | |
| ATM and other service fees | | | 2,613 | | | | 2,717 | | | | 2,770 | | | | 2,794 | | | | 3,055 | |
| Bank owned life insurance income | | | 2,451 | | | | 3,139 | | | | 3,217 | | | | 3,201 | | | | 3,283 | |
| Investment services and insurance | | | 1,949 | | | | 2,899 | | | | 2,790 | | | | 2,865 | | | | 3,121 | |
| Investment securities gains (losses), net | | | 1,555 | | | | — | | | | 47 | | | | 524 | | | | 1,122 | |
| Loan sales and servicing income | | | 2,294 | | | | 1,370 | | | | 1,885 | | | | 1,391 | | | | 1,551 | |
| Gain on Visa Inc. | | | 5,768 | | | | — | | | | — | | | | 7,898 | | | | — | |
| Other operating income | | | 3,757 | | | | 2,610 | | | | 4,051 | | | | 2,838 | | | | 2,886 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Other Income | | $ | 52,795 | | | $ | 47,029 | | | $ | 48,758 | | | $ | 52,854 | | | $ | 49,993 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| | | 2008 | | | 2008 | | | 2008 | | | 2008 | | | 2007 | |
| | | 4th Qtr | | | 3rd Qtr | | | 2nd Qtr | | | 1st Qtr | | | 4th Qtr | |
| | | | | | | | | | | | | | | | | | | | | |
QUARTERLY OTHER EXPENSES DETAIL | | | | | | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Salaries, wages, pension and employee benefits | | $ | 46,991 | | | $ | 45,043 | | | $ | 44,364 | | | $ | 43,065 | | | $ | 43,087 | |
| Net occupancy expense | | | 5,950 | | | | 5,741 | | | | 6,204 | | | | 6,754 | | | | 6,284 | |
| Equipment expense | | | 6,139 | | | | 5,962 | | | | 5,842 | | | | 6,194 | | | | 6,239 | |
| Taxes, other than federal income taxes | | | 1,463 | | | | 1,714 | | | | 1,701 | | | | 1,702 | | | | 1,274 | |
| Stationery, supplies and postage | | | 2,458 | | | | 2,347 | | | | 2,242 | | | | 2,325 | | | | 2,388 | |
| Bankcard, loan processing and other costs | | | 7,359 | | | | 7,497 | | | | 7,356 | | | | 7,244 | | | | 7,482 | |
| Advertising | | | 1,863 | | | | 2,476 | | | | 2,489 | | | | 2,666 | | | | 2,989 | |
| Professional services | | | 3,261 | | | | 3,966 | | | | 2,581 | | | | 1,887 | | | | 3,588 | |
| Telephone | | | 978 | | | | 956 | | | | 994 | | | | 1,019 | | | | 1,006 | |
| Amortization of intangibles | | | 87 | | | | 86 | | | | 177 | | | | 223 | | | | 222 | |
| Other operating expense | | | 11,691 | | | | 4,821 | | | | 6,600 | | | | 8,155 | | | | 8,736 | |
| | | | | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | | | | | |
| Total Other Expenses | | $ | 88,240 | | | $ | 80,609 | | | $ | 80,550 | | | $ | 81,234 | | | $ | 83,295 | |
| | | | | | | | | | | | | | | | |
13
| | | |
FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES — Net Charge-off Detail | | |
| | | | | | | | | | | | | | | | | |
| (Unaudited) | | | | | | |
| (Dollars in thousands) | | Quarters ended | | | Year ended | |
| | | December 31, | | | December 31, | |
| | | 2008 | | | 2007 | | | 2008 | | | 2007 | |
| Allowance for loan losses — beginning of period | | $ | 102,007 | | | $ | 93,811 | | | $ | 94,205 | | | $ | 91,342 | |
| Loans charged off: | | | | | | | | | | | | | | | | |
| Commercial | | | 5,591 | | | | 2,969 | | | | 16,318 | | | | 7,856 | |
| Mortgage | | | 1,025 | | | | 958 | | | | 4,696 | | | | 5,026 | |
| Installment | | | 7,276 | | | | 4,745 | | | | 24,740 | | | | 18,343 | |
| Home equity | | | 707 | | | | 758 | | | | 4,153 | | | | 4,151 | |
| Credit cards | | | 2,506 | | | | 2,104 | | | | 9,821 | | | | 8,497 | |
| Leases | | | 6 | | | | — | | | | 26 | | | | 41 | |
| Overdrafts | | | 821 | | | | 234 | | | | 2,634 | | | | 234 | |
| | | | | | | | | | | | | |
| Total | | | 17,932 | | | | 11,768 | | | | 62,388 | | | | 44,148 | |
| | | | | | | | | | | | | |
| Recoveries: | | | | | | | | | | | | | | | | |
| Commercial | | | 402 | | | | 357 | | | | 2,388 | | | | 4,351 | |
| Mortgage | | | 35 | | | | 36 | | | | 76 | | | | 44 | |
| Installment | | | 1,473 | | | | 1,705 | | | | 7,071 | | | | 8,021 | |
| Home equity | | | 125 | | | | 182 | | | | 851 | | | | 1,265 | |
| Credit cards | | | 376 | | | | 390 | | | | 1,831 | | | | 1,842 | |
| Manufactured housing | | | 77 | | | | 71 | | | | 247 | | | | 323 | |
| Leases | | | 7 | | | | 43 | | | | 104 | | | | 286 | |
| Overdrafts | | | 201 | | | | 44 | | | | 769 | | | | 44 | |
| | | | | | | | | | | | | |
| Total | | | 2,696 | | | | 2,828 | | | | 13,337 | | | | 16,176 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Net charge-offs | | | 15,236 | | | | 8,940 | | | | 49,051 | | | | 27,972 | |
| Provision for loan losses | | | 16,986 | | | | 9,334 | | | | 58,603 | | | | 30,835 | |
| | | | | | | | | | | | | |
| Allowance for loan losses — end of period | | $ | 103,757 | | | $ | 94,205 | | | $ | 103,757 | | | $ | 94,205 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Average loans outstanding | | $ | 7,366,246 | | | $ | 6,951,544 | | | $ | 7,203,946 | | | $ | 6,971,464 | |
| | | | | | | | | | | | | |
| Ratio to average loans: | | | | | | | | | | | | | | | | |
| (Annualized) net charge-offs | | | 0.82 | % | | | 0.51 | % | | | 0.68 | % | | | 0.40 | % |
| | | | | | | | | | | | | |
| Provision for loan losses | | | 0.92 | % | | | 0.53 | % | | | 0.81 | % | | | 0.44 | % |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Loans outstanding — period-end | | $ | 7,425,613 | | | $ | 7,001,886 | | | $ | 7,425,613 | | | $ | 7,001,886 | |
| | | | | | | | | | | | | |
| | | | | | | | | | | | | | | | | |
| Allowance for credit losses: | | $ | 110,345 | | | $ | 101,599 | | | $ | 110,345 | | | $ | 101,599 | |
| | | | | | | | | | | | | |
| As a multiple of (annualized) net charge-offs | | | 1.82 | | | | 2.86 | | | | 2.25 | | | | 3.63 | |
| | | | | | | | | | | | | |
| Allowance for loan losses: | | | | | | | | | | | | | | | | |
| As a percent of period-end loans outstanding | | | 1.40 | % | | | 1.35 | % | | | 1.40 | % | | | 1.35 | % |
| | | | | | | | | | | | | |
| As a multiple of (annualized) net charge-offs | | | 1.71 | | | | 2.66 | | | | 2.12 | | | | 3.37 | |
| | | | | | | | | | | | | |
14
