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SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
FORM 10-Q/A
(X) QUARTERLY REPORT UNDER SECTION 13 OR 15 (d)
OF THE SECURITIES EXCHANGE ACT OF 1934
FOR THE QUARTERLY PERIOD ENDED
JUNE 30, 1998
COMMISSION FILE NUMBER 0-10161
FIRSTMERIT CORPORATION
(Exact name of registrant as specified in its charter)
OHIO 34-1339938
(State or other jurisdiction of (IRS Employer Identification
incorporation or organization) Number)
III CASCADE PLAZA, 7TH FLOOR, AKRON, OHIO 44308-1103
(Address of principal Executive Offices)
(330) 996-6300
(Telephone Number)
OUTSTANDING SHARES OF COMMON STOCK, AS OF JUNE 30, 1998
65,202,418
Indicate by check mark whether the registrant (1) has filed all reports
required to be filed by Section 13 or 15 (d) of the Securities Exchange Act of
1934 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 X NO
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FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
- ---------------------------------------
(In thousands)
-----------------------------------
(Unaudited) (Unaudited)
June 30 December 31 June 30
-----------------------------------
1998 1997 1997
- -------------------------------------------------------------------------------------------------------------
ASSETS
Investment securities $ 1,327,598 1,116,787 1,072,734
Federal funds sold 10,600 33,100 3,590
Commercial loans 1,870,582 1,553,707 1,508,604
Mortgage loans 896,694 852,482 931,530
Installment loans 1,000,146 922,227 953,256
Home equity loans 280,670 250,513 230,274
Bankcard loans 92,672 103,041 89,426
Tax-free loans 10,161 8,947 12,908
Leases 145,008 143,958 151,687
-------------------------------------
Loans less unearned income 4,295,933 3,834,875 3,877,685
Less allowance for possible loan losses 65,749 53,774 50,893
-------------------------------------
Net loans 4,230,184 3,781,101 3,826,792
-------------------------------------
Total earning assets 5,568,382 4,930,988 4,903,116
Cash and due from banks 216,443 166,742 203,276
Premises and equipment, net 118,120 99,765 100,320
Accrued interest receivable and other assets 276,445 109,966 110,406
-------------------------------------
$ 6,179,390 5,307,461 5,317,118
=====================================
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Demand-non-interest bearing $ 889,032 769,187 747,964
Demand-interest bearing 545,864 470,601 448,137
Savings 1,485,925 1,278,933 1,285,563
Certificates and other time deposits 1,958,061 1,736,490 1,721,152
-------------------------------------
Total deposits 4,878,882 4,255,211 4,202,816
Securities sold under agreements to repurchase
and other borrowings 547,368 441,755 514,680
-------------------------------------
Total funds 5,426,250 4,696,966 4,717,496
Accrued taxes, expenses, and other liabilities 107,127 80,159 82,462
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Total liabilities 5,533,377 4,777,125 4,799,958
Shareholders' equity:
Series preferred stock, without par value:
authorized and unissued 7,000,000 shares - - -
Common stock, without par value:
authorized 160,000,000 shares; issued 68,142,674
68,127,314 and 67,941,344 shares, respectively 110,197 110,069 109,752
Treasury stock, 2,940,256, 6,159,845 and 5,675,024 shares,
respectively (43,720) (108,734) (90,956)
Capital Surplus 25,919 - -
Net unrealized holding gains (losses)
on available for sale securities 3,059 3,246 (2,143)
Retained earnings 550,558 525,755 500,507
-------------------------------------
Total shareholders' equity 646,013 530,336 517,160
-------------------------------------
$ 6,179,390 5,307,461 5,317,118
=====================================
See accompanying notes to consolidated financial statements.
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FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY
- ------------------------------------------------------------------------
Year Ended December 31, 1997 and
Six Months Ended June 30, 1998
(In Thousands)
---------------------------------------------------------------------------
Accumulated
Other Total
Common Treasury Capital Comprehensive Retained Shareholders'
Stock Stock Surplus Income Earnings Equity
-------- ---------- ------------ --------------- ---------- -------------
Balance at December 31, 1996 $107,343 (59,258) (2,217) 477,839 523,707
Net Income - - - 86,363 86,363
Cash dividends ($0.61 per share) - - - (38,447) (38,447)
Stock options exercised 2,726 - - - 2,726
Treasury shares purchased - (49,476) - - (49,476)
Market adjustment investment
securities - - 5,463 - 5,463
-------- ---------- ------------ --------------- ---------- -------------
Balance at December 31, 1997 $110,069 (108,734) 3,246 525,755 530,336
======== ========== ============ =============== ========== =============
Net Income - - - - 46,110 46,110
Cash dividends ($0.32 per share) - - - - (21,307) (21,307)
Stock options exercised 128 - - - - 128
Treasury shares purchased - (26,037) - - - (26,037)
Treasury shares reissued -
Acquisition - 89,286 25,919 - - 115,205
Treasury shares reissued - 1,765 - - - 1,765
Market adjustment investment
securities - - - (187) - (187)
-------- ---------- ------------ --------------- ---------- -------------
Balance at June 30, 1998 - Unaudited $110,197 (43,720) 25,919 3,059 550,558 646,013
======== ========== ============ =============== ========== =============
See accompanying notes to consolidated financial statements.
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ITEM 6. EXHIBITS AND REPORTS ON FORM 8-K
(A) EXHIBITS
2(a) Agreement of Affiliation and Plan of Merger dated August 10,
1998 by and between FirstMerit Corporation and Signal Corp
(incorporated by reference from Exhibit 2(a) to the Form 8-K
filed by the registrant on August 18, 1998)
2(b) Signal Corp Stock Purchase Option dated August 11, 1998
(incorporated by reference from Exhibit 2(b) to the Form 8-K
filed by the registrant on August 18, 1998)
3(a) Amended and Restated Articles of Incorporation of FirstMerit
Corporation (Incorporated by reference from Exhibit 3(a) to the
Form 8-K filed by the registrant on April 9, 1998)
3(b) Amended and Restated Code of Regulations of FirstMerit
Corporation (incorporated by reference from Exhibit 3(b) to the
Form 8-K filed by the registrant on April 9, 1998)
4 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)
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(B) Form 8-K
On June 22, 1998, FirstMerit Corporation filed a Form 8-K to
report the amendment of the FirstMerit Corporation Shareholders
Rights Plan.
On May 22, 1998, FirstMerit Corporation filed a Form 8-K to
report the completion of its acquisition of CoBancorp, Inc.
On April 9, 1998, FirstMerit Corporation filed a Form 8-K to
report:
(a) The approval by the shareholders increasing the
authorized Common Stock of FirstMerit from 80,000,000 to
160,000,000 shares and the amendment of FirstMerit's
Amended and Restated Code of Regulations to add Article XI
making the Ohio Control Share Act inapplicable to
FirstMerit, and
(b) Announcing on April 5, 1998, Security First Corp., a
Delaware corporation, and FirstMerit Corporation had
entered into an Agreement of Affiliation and Plan of
Merger.
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SIGNATURES
Pursuant to the requirements 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.
FIRSTMERIT CORPORATION
By:/s/JACK R. GRAVO
---------------------------------------
Jack R. Gravo, Executive Vice President
Finance and Administration
Date: August 26, 1998
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