![]() The FirstMerit Opportunity The FirstMerit Opportunity Barclays Capital GLOBAL FINANCIAL SERVICES CONFERENCE SEPTEMBER 13 - 14, 2011 | HILTON NEW YORK, NEW YORK CITY Exhibit 99.1 |
![]() • Strong Platform Solid capital position Strong balance sheet Credit discipline Consistent quarterly profits • Franchise Positioned for Organic Growth Market leadership in core markets Opportunity to expand the franchise Focused on Shareholder Returns The FirstMerit Opportunity 2 |
![]() FirstMerit Overview • Headquarters: Akron, Ohio • Employees (FTE): 3,028 • Founded: 1845 • Assets: $14.3 Billion* 4th largest Ohio bank/ 38th largest U.S. bank • Ticker: FMER (NASDAQ) Source: SNL Financial *Total Assets as of 6/30/11 3 |
![]() Chicago Expansion Chicago Expansion 4 |
![]() • Chicago – provides dense population and positive growth demographics • 3rd largest MSA in U.S. • Favorable competitive dynamics in the small business and middle market banking areas • Senior FirstMerit executives have extensive market knowledge • Follow-on acquisition opportunities exist in greater Chicago 5 Positioning FirstMerit’s Franchise for Long Term Growth |
![]() Assets: $415 mm Deposits: $1.2 bn Branches: 24 February 2010 Assets: $420 mm Deposits: $393 mm Branches: 4 February 2010 Assets: $3.0 bn Deposits: $2.3 bn Branches: 26 May 2010 Premium Paid to Total Deposits 2.2% 8.0% 18.8% Source: SNL Financial. (1) Represents the net premium paid by FirstMerit for its three Chicago area acquisitions. (2) Average of 4 branch transactions in the Chicago MSA since 9/30/04. (3) Average of 40 bank and thrift transactions in the Chicago MSA since 9/30/04 (excludes jumbo deposits). Building a Strategic Franchise in Chicago Attractively priced strategic franchise 6 FirstMerit – Chicago Acquisitions (1) Chicago Branch Transactions (2) Chicago Bank and Thrift Transactions (3) |
![]() Paul Greig, CEO Bill Richgels, CCO Peter Gillespie, Regional President Chicago market experience Years JPMorgan Chase / Bank One / First Chicago NBD American National Bank FNW Bancorp First Midwest Bank Continental Illinois National Bank First Bank JPMorgan Chase / Bank One / First Chicago NBD American National Bank NBD 29 years 25 years 21 years Experienced Leadership Team with Chicago Roots Charter One Bank JPMorgan Chase / Bank One / First Chicago NBD American National Bank 7 |
![]() • Successful conversion completed in early October Seamless conversion of three franchises in 2010 Conversion of Midwest Bank and Trust follows completion of George Washington Savings Bank and First Bank branch acquisitions • Smooth transition from announcement to conversion Midwest Bank and Trust opened for business as usual on Saturday FirstMerit ambassadors in each branch to ensure smooth transition • Dedicated team executed integration process Branch integration Product and sales management Credit risk management Information technology Successful Integration 8 |
![]() Chicago franchise Chicago MSA franchise demographics * Source: SNL Financial. data as of 6/30/10. Positions FirstMerit’s Franchise for Long Term Growth 9 • • Branch network conveniently located Branch network conveniently located across greater Chicago MSA across greater Chicago MSA • • Market provides organic growth Market provides organic growth opportunities opportunities Population 9,756,941 Households 3,500,698 Projected population 2.97% Median household income $66,618 Projected household income 4.83% growth (’09-’14) growth (’09-’14) (2009) (2009) (2009) |
![]() Financial Performance 10 |
![]() 11 History of Superior Performance… History of Superior Performance… Financial Performance 2008 2008 FirstMerit FirstMerit Peers Peers Net Interest Margin 3.72% 3.72% 3.62% 3.62% Net Charge-Offs/ Average Loans 0.68% 0.68% 0.98% 0.98% ROAA 1.13% 1.13% 0.07% 0.07% ROAE 12.76% 12.76% 1.61% 1.61% 2009 2009 FirstMerit FirstMerit Peers Peers 3.58% 3.58% 3.51% 3.51% 1.22% 1.22% 2.00% 2.00% 0.76% 0.76% -0.85% -0.85% 0.85% 8.09% 8.09% -7.13% -7.13% 7.13% Relative to Peers Source: SNL Financial Peer Group Includes: Huntington, Associated, Fulton Financial, TCF Financial, Citizens Banking, Park National, First Commonwealth Financial, Old National, MB Financial and FNB |
![]() 12 ...Continued in 2010 ...Continued in 2010 Financial Performance 2010 2010 FirstMerit FirstMerit Peers Peers 3.97% 3.97% 3.70% 3.70% 1.23% 1.23% 2.29% 2.29% 0.76% 0.76% 0.25% 0.25% 7.82% 7.82% 2.51% 2.51% Relative to Peers 2009 2009 FirstMerit FirstMerit Peers Peers Net Interest Margin 3.58% 3.58% 3.51% 3.51% Net Charge-Offs/ Average Loans 1.22% 1.22% 2.00% 2.00% ROAA 0.76% 0.76% -0.85% -0.85% 0.85% ROAE 8.09% 8.09% -7.13% -7.13% 7.13% Source: SNL Financial Peer Group Includes: Huntington, Associated, Fulton Financial, TCF Financial, Citizens Banking, Park National, First Commonwealth Financial, Old National, MB Financial and FNB |
![]() 13 • • Primary Focus of Entire Primary Focus of Entire Management Team and Management Team and Organization Organization • • Aligned Incentives Aligned Incentives • • Hired Chief Credit Officer and Hired Chief Credit Officer and Added other Key Personnel Added other Key Personnel • • Active Internal Focus on Credit Active Internal Focus on Credit Quality Quality • • Ongoing Comprehensive Internal Ongoing Comprehensive Internal and External Review of Portfolio and External Review of Portfolio • • Implementing Initiatives for Implementing Initiatives for Ongoing Credit Improvement Ongoing Credit Improvement Actions to Sustain Improved Performance Actions to Sustain Improved Performance Credit Quality Initiatives Net charge-offs Lead to Superior Credit Quality Source: SNL Financial Peer Group Includes: Huntington, Associated, Fulton Financial, TCF Financial, Citizens Banking, Park National, First Commonwealth Financial, Old National, MB Financial and FNB 0.40% 0.43% 0.68% 0.98% 1.22% 2.00% 1.23% 2.29% 0.94% 2.13% |
![]() 14 Quarter-end Quarter-end FMER FMER 6/30/11 6/30/11 Peers’ Peers’ 6/30/11 6/30/11 Net charge-offs/ Net charge-offs/ Average Loans Average Loans Allowance for Credit Losses/ Allowance for Credit Losses/ Nonperforming Loans Nonperforming Loans 0.89% 0.89% 158% 158% 1.95% 1.95% 78% 78% Loans/Deposits Loans/Deposits 79% 79% 91% 91% Balance Sheet Strength Balance Sheet Strength Source: SNL Financial Peer Group Includes: Huntington, Associated, Fulton Financial, TCF Financial, Citizens Banking, Park National, First Commonwealth Financial, Old National, MB Financial and FNB |
![]() 15 Margin Historical Performance • • The margin has remained fairly The margin has remained fairly constant throughout interest rate constant throughout interest rate cycle cycle Margin Stability Margin Stability 3.74% 3.66% 3.71% 3.76% 3.73% 3.74% 3.70% 3.73% 3.80% 3.78% 3.68% 3.58% 3.58% 3.62% 3.61% 3.66% 3.60% 3.69% 3.78% 3.82% 3.53% 3.56% 3.61% 3.64% 3.72% 4.02% 3.96% 4.14% 4.00% 3.77% 0% 1% 2% 3% 4% 5% NIM FedFunds |
![]() The FirstMerit Growth Opportunity The FirstMerit Growth Opportunity |
![]() 17 FirstMerit Value Proposition FirstMerit Value Proposition • • Local delivery of relationship banking Local delivery of relationship banking Regional structure supports close client relationship Regional structure supports close client relationship Institutionalization of key relationships with regional CEOs Institutionalization of key relationships with regional CEOs • • Local decision making Local decision making Access to decision makers/senior management Access to decision makers/senior management Credit authority appropriate to regions Credit authority appropriate to regions Enables prompt response on credit decisions Enables prompt response on credit decisions • • Strong sales and service orientation Strong sales and service orientation Motivated and empowered bankers Motivated and empowered bankers • • Consultative, agile and efficient approach to banking Consultative, agile and efficient approach to banking Product parity with larger bank competitors Product parity with larger bank competitors • • Deep community involvement Deep community involvement Local advisory boards Local advisory boards |
![]() 18 • • Strong Management Experience Strong Management Experience (avg. 25 yrs) (avg. 25 yrs) • • Diverse Customer Base Diverse Customer Base • • Strong Customer Service Model Strong Customer Service Model • • Strong Deposit Gathering Abilities Strong Deposit Gathering Abilities • • $6.3bn Loan Portfolio $6.3bn Loan Portfolio • • High ROE Small Business Banking High ROE Small Business Banking Unit Unit • • Middle Market, Business Banking, Middle Market, Business Banking, CRE, Asset Based Lending, Public CRE, Asset Based Lending, Public Funds, Oil and Gas, Card Services- Merchant, Capital Markets, Merchant, Capital Markets, Treasury Management, Skilled Treasury Management, Skilled Care, Dealer Services, SBA Care, Dealer Services, SBA Commercial Banking: Commercial Banking: Superior Service Model Superior Service Model Service Awards and Ratings Overview • Awarded “Outstanding” rating for performance under the Community performance under the Community Reinvestment Act Reinvestment Act – – January, 2010 January, 2010 |
![]() 19 • • Concentrated branch network Concentrated branch network 207 branches in Ohio, 207 branches in Ohio, Western Pa. and Chicago Western Pa. and Chicago #1 Market Share in Akron #1 Market Share in Akron #2 Market Share in Canton #2 Market Share in Canton • • Customer Service Culture Customer Service Culture • • Full Suite of Traditional Retail Full Suite of Traditional Retail Banking Products Banking Products Profitable Merchant, Debit Profitable Merchant, Debit and Credit Card and Credit Card Businesses Businesses Overview Committed to Superior Customer Service Consumer Banking: Consumer Banking: Broad Services and Customer Satisfaction Broad Services and Customer Satisfaction • • Awarded highest customer Awarded highest customer satisfaction in Ohio by satisfaction in Ohio by JD Power & Associates JD Power & Associates in 2011 in 2011 5th consecutive year 5th consecutive year • • Providing Strong Results Providing Strong Results 3 consecutive years of net 3 consecutive years of net DDA household growth DDA household growth 90% retention rate 90% retention rate #1 in Ohio #1 in Ohio |
![]() 20 • Strong Complement with Owner- Managed Business Managed Business • • High ROE Business High ROE Business • • Assets under management and Assets under management and administration: $5.9bn administration: $5.9bn • • Loans: $261mm Loans: $261mm • • Deposits: $637mm Deposits: $637mm • • Expansive Product Suite Expansive Product Suite Investment management Investment management Estate and succession planning Estate and succession planning Private banking (credit/deposit Private banking (credit/deposit services) services) Trust services Trust services Financial and tax planning Financial and tax planning Insurance services Insurance services Brokerage services Brokerage services Employee benefits (401-k, Pension) Wealth Management: Wealth Management: Comprehensive Array of Services Comprehensive Array of Services • Cross-Selling Initiatives with Commercial / Consumer Banking Commercial / Consumer Banking Strong customer retention tool Strong customer retention tool Focused on capturing customer Focused on capturing customer liquidity events liquidity events Wealth Penetration Overview 29.0% 31.7% 37.0% 41.0% 41.1% 2Q08 4Q08 2Q09 4Q10 1Q11 % of commercial customers using wealth management services % of commercial customers using wealth management services Loans, deposits and assets under management at 3/31/11 |
![]() 21 • • Strong platform Strong platform Organizational enhancements Organizational enhancements Improved credit Improved credit Solid capital position Solid capital position • • Franchise positioned for organic growth Franchise positioned for organic growth Market leadership in core markets Market leadership in core markets Opportunity to expand the franchise Opportunity to expand the franchise Focused on Shareholder Returns Focused on Shareholder Returns The FirstMerit Opportunity The FirstMerit Opportunity |