FirstMerit Announces First Quarter EPS of $0.45

Apr 19, 2001, 01:00 ET from FirstMerit Corporation

    AKRON, Ohio, April 19 /PRNewswire/ -- FirstMerit Corporation
 (Nasdaq: FMER) today announced first quarter 2001 net income of $39.2 million,
 or $0.45 per diluted share.  The first quarter 2001 results include an after-
 tax gain of $3.7 million related to the sale of a partnership interest.  This
 compares with net income of $39.7 million, or $0.45 per diluted share,
 reported in the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001220/FIRSTMERITLOGO )
     For the first quarter 2001, including the gain on the partnership sale,
 returns on average assets and average common equity were 1.57% and 17.40%,
 respectively, compared with 1.56% and 19.27% for the prior year.
     Commenting on first quarter results, John R. Cochran, Chairman and CEO,
 remarked, "We are pleased to see lower interest rates having a favorable
 effect on our net interest margin.  The decline in funding costs, combined
 with the steps we took during 2000 to strengthen the margin, is contributing
 to this improvement.  We have offset the impact of the weaker economy with
 gains in non-interest income and continued cost control disciplines.
     "We continue to invest to improve the customer experience.  Our
 relationship banking strategy depends on the highest level of personal
 service, combined with the latest improvements in technology.  The completion
 of the ALLTEL conversion of our core banking application systems is an
 important milestone in our progress along the technology curve, advancing
 FirstMerit's goal of seamless integration through all delivery channels."
     Net interest income on a fully tax-equivalent basis was $91.2 million for
 the first quarter of 2001 compared to $93.1 million in the fourth quarter of
 2000 and $97.5 million for the prior year quarter.  The net interest margin
 was 3.97% this quarter, a 13 basis point increase from the fourth quarter of
 2000.  The first quarter 2000 net interest margin was 4.10%.  Average earning
 assets declined 2.4% from the year ago quarter.
     Excluding gains/losses from the sale of securities and the gain on sale of
 a partnership interest (recorded in the other operating income category), non-
 interest income was $41.1 million, 3.8% above the $39.6 million reported a
 year ago.  Growth was strong in manufactured housing income, up 126% and
 credit card fees, up 15.2%.  Adjusted first quarter 2001 fees accounted for
 31.1% of net revenues compared to 28.9% in 2000.
     Non-interest expense totaled $67.6 million in the first quarter of this
 year, up a modest 2.2% from prior year. Improvement was experienced in nearly
 every category, with the exception of other operating expenses, bankcard
 processing and professional services.  The efficiency ratio, without the
 benefit from the partnership sale, was 49.3% for this quarter compared to
 49.9% in the fourth quarter of 2000 and 46.3% in the year ago quarter.
     Period-end assets were $10.1 billion, down 2.7% from the prior year
 quarter.  Earning assets were down 4.6%, with loans up 1.2% and investment
 securities down 20.1%.  Proceeds from investment securities sales and
 maturities have largely been used to pay down higher cost funding sources.
 Consistent with prior periods and FirstMerit's desired loan mix, credit card,
 home equity and commercial loans all experienced solid growth from the year
 ago quarter while installment, manufactured housing and mortgage loans
 declined.
     Total deposits at period end were $7.5 billion, an increase of 3.5% above
 2000 levels, with time deposits, up 5.0%, and savings and money market
 accounts, up 4.2%, accounting for the majority of growth.
     First quarter loan loss provision was $11.8 million, nearly unchanged from
 the first quarter 2000 provision of $11.7 million.  Net charge-offs for the
 quarter were $10.0 million, or 0.55% of average loans outstanding on an
 annualized basis, compared to 0.47% a year ago.  The allowance stands at 1.50%
 of period-end loans, unchanged from the prior year quarter.  Non-performing
 assets as a percent of loans and ORE were 0.52%  this first quarter, compared
 with 0.46% a year ago.  Reserve coverage of non-performing assets was 3.6
 times, substantially unchanged from last year.
     Shareholders' equity was $912.4 million at quarter end.  Average equity to
 assets for the 2001 quarter was 9.06% compared to 8.11% last year.  Common
 stock dividends paid were $0.23 per share, representing a 51.1% payout ratio.
 At quarter end, there were 85.8 million common shares outstanding.
 
     FIRST QUARTER HIGHLIGHTS
     Completion of ALLTEL Conversion -- FirstMerit and ALLTEL Information
 Services completed the conversion of the bank's core application systems
 within a 72-hour time period on the weekend of February 17-19, 2001,
 culminating an 18-month project involving more than 150,000 hours of planning
 and preparation.  FirstMerit now operates ALLTEL's demand deposit, savings and
 time deposit, commercial lending, consumer lending, Internet banking, on-site
 teller applications and is currently implementing ALLTEL's call center
 offering.  The ALLTEL Service Delivery System provides real-time data-sharing
 that allows FirstMerit to integrate customer data across all delivery
 channels, helping us to advance our strategy of relationship banking.
     Financials available on our Website and Conference Call Information - Full
 financial statements are available at www.firstmerit.com/quarterlies .  A
 conference call will be held TODAY, 10:30 AM, EST.  Call 877-871-4065 by 10:25
 AM.  If you are unable to participate on the call, a replay will be available
 beginning 12:30 PM on April 19, 2001, through 12:30 PM on April 29, 2001, by
 dialing 1-800-633-8284, reservation #18618410.
     FirstMerit is a financial services company headquartered in Akron, Ohio,
 with assets of $10.1 billion and 161 banking offices in 22 Ohio and western
 Pennsylvania counties.  FirstMerit provides a complete range of banking and
 other financial services to consumers and businesses through its core
 operations.  Principal wholly-owned subsidiaries include FirstMerit Bank,
 N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd.,
 FirstMerit Credit Life Insurance Company, Mobile Consultants, Inc., and
 FirstMerit Community Development Corporation.  FirstMerit has reported five
 consecutive years of record earnings.
 
     FIRSTMERIT CORPORATION
     CONSOLIDATED FINANCIAL HIGHLIGHTS
     (Dollars in thousands)
 
     Quarterly information is UNAUDITED
                                                 2001         2000       2000
     EARNINGS                                   1st Qtr     4th Qtr     3rd Qtr
 
     Net interest income FTE (a) (b)            $91,191      93,072     93,281
     Provision for loan losses                   11,816       7,201      5,447
     Other income                                47,184      43,744     42,071
     Other expenses                              67,557      70,282     70,104
     FTE adjustment (a)                             834         894        955
     Income before extraordinary charge          39,193      40,047     40,065
     Extraordinary charge, net of tax               ---         ---        ---
     Net income                                 $39,193      40,047     40,065
     Net income per share - diluted               $0.45        0.45       0.45
 
     PERFORMANCE RATIOS
 
     Return on average assets (ROA)                1.57%       1.54%      1.52%
     Return on average common equity (ROE)        17.40%      17.84%     18.29%
     Net interest margin FTE                       3.97%       3.84%      3.79%
     Efficiency ratio                             49.26%      49.88%     49.88%
     Number of full-time equivalent
      employees                                   3,271       3,213      3,359
 
     MARKET DATA
 
     Book value/common share                     $10.60       10.48      10.15
     Period-end common share mkt value            26.00       26.72      22.94
     Market as a % of book                          245%        255%       226%
     Cash dividends/common share                  $0.23        0.22       0.22
     Common stock dividend payout ratio          51.11%      48.89%     48.89%
     Average basic common shares                 86,694      87,585     88,252
     Average diluted common shares               87,508      88,344     89,008
     Period end common shares                    85,835      87,032     88,109
     Common shares repurchased                1,295,000   1,121,500    339,000
     Common stock market capitalization      $2,231,701   2,325,503  2,020,999
 
     ASSET QUALITY
 
     Gross charge-offs                          $14,861      12,542     12,402
     Net charge-offs                              9,959       7,492      6,960
     Allowance for loan losses                  110,142     108,285    108,576
     Nonperforming assets (NPAs)                 38,155      36,391     31,103
     Net charge-off ratio                          0.55%       0.41%      0.38%
     Allowance/loans                               1.50%       1.50%      1.50%
     NPA to loans + other real estate              0.52%       0.50%      0.43%
     Allowance to NPLs                           358.96%     357.09%    407.35%
 
     CAPITAL & LIQUIDITY
 
     Period-end tangible equity to assets          7.70%       7.58%      7.26%
     Average equity to assets                      9.06%       8.66%      8.33%
     Average equity to loans                      12.54%      12.34%     11.84%
     Average loans to deposits                    97.94%      95.61%     95.83%
 
     AVERAGE BALANCES
 
     Assets                                 $10,108,819  10,342,825 10,492,811
     Deposits                                 7,459,008   7,594,784  7,700,137
     Loans                                    7,305,459   7,261,085  7,379,222
     Earning assets                           9,325,445   9,650,502  9,798,571
     Shareholders' equity                       915,832     895,809    873,927
 
     ENDING BALANCES
 
     Assets                                 $10,096,134  10,215,203 10,372,214
     Deposits                                 7,453,473   7,587,282  7,630,881
     Loans                                    7,329,688   7,237,085  7,261,824
     Intangible assets                          145,962     152,107    154,676
     Earning assets                           9,169,455   9,383,229  9,678,926
     Total shareholders' equity                 912,435     914,889    896,918
 
 
     FIRSTMERIT CORPORATION
     CONSOLIDATED FINANCIAL HIGHLIGHTS
     (Dollars in thousands)
 
     Quarterly information is UNAUDITED
                                                     2000              2000
     EARNINGS                                       2nd Qtr           1st Qtr
 
     Net interest income FTE (a) (b)                 96,272            97,461
     Provision for loan losses                        8,346            11,714
     Other income                                    39,188            38,888
     Other expenses                                  68,717            66,089
     FTE adjustment (a)                                 930             1,010
     Income before extraordinary charge              39,976            39,699
     Extraordinary charge, net of tax                   ---               ---
     Net income                                      39,976            39,699
     Net income per share - diluted                    0.45              0.45
 
     PERFORMANCE RATIOS
 
     Return on average assets (ROA)                    1.55%             1.56%
     Return on average common equity (ROE)            19.09%            19.27%
     Net interest margin FTE                           4.00%             4.10%
     Efficiency ratio                                 48.79%            46.26%
     Number of full-time equivalent
      employees                                       3,436             3,424
 
     MARKET DATA
 
     Book value/common share                           9.78              9.51
     Period-end common share mkt value                21.38             18.44
     Market as a % of book                              219%              194%
     Cash dividends/common share                       0.22              0.20
     Common stock dividend payout ratio               48.89%            44.44%
     Average basic common shares                     88,341            88,388
     Average diluted common shares                   89,019            89,147
     Period end common shares                        88,348            88,401
     Common shares repurchased                      150,000               ---
     Common stock market capitalization           1,888,446         1,629,885
 
     ASSET QUALITY
 
     Gross charge-offs                               11,421            13,063
     Net charge-offs                                  6,548             8,320
     Allowance for loan losses                      110,089           108,291
     Nonperforming assets (NPAs)                     29,514            33,465
     Net charge-off ratio                              0.36%             0.47%
     Allowance/loans                                   1.49%             1.50%
     NPA to loans + other real estate                  0.40%             0.46%
     Allowance to NPLs                               433.56%           365.64%
 
     CAPITAL & LIQUIDITY
 
     Period-end tangible equity to assets              6.87%             6.70%
     Average equity to assets                          8.14%             8.11%
     Average equity to loans                          11.52%            11.65%
     Average loans to deposits                        99.48%           102.39%
 
     AVERAGE BALANCES
 
     Assets                                      10,391,625        10,261,950
     Deposits                                     7,381,983         6,977,971
     Loans                                        7,343,730         7,144,579
     Earning assets                               9,680,509         9,559,240
     Shareholders' equity                           845,779           832,457
 
     ENDING BALANCES
 
     Assets                                      10,482,009        10,375,088
     Deposits                                     7,753,196         7,202,346
     Loans                                        7,409,211         7,242,946
     Intangible assets                              157,284           159,743
     Earning assets                               9,752,290         9,614,434
     Total shareholders' equity                     866,796           844,421
 
 
     FIRSTMERIT CORPORATION
     CONSOLIDATED FINANCIAL HIGHLIGHTS
     (Dollars in thousands)
 
     Quarterly information is UNAUDITED                 Core (b)    Reported
                                              2000        1999        1999
     EARNINGS                                Annual      Annual      Annual
 
     Net interest income FTE (a) (b)          380,086     388,237     388,237
     Provision for loan losses                 32,708      27,230      37,430
     Other income                             163,891     154,710     154,710
     Other expenses                           275,192     282,885     316,506
     FTE adjustment (a)                         3,842       4,251       4,251
     Income before extraordinary charge       159,787     157,981     125,717
     Extraordinary charge, net of tax             ---         ---      (5,847)
     Net income                               159,787     157,981     119,870
     Net income per share - diluted              1.80        1.73        1.32
 
     PERFORMANCE RATIOS
 
     Return on average assets (ROA)              1.54%       1.66%       1.26%
     Return on average common equity (ROE)      18.60%      18.02%      13.68%
     Net interest margin FTE                     3.93%       4.41%       4.41%
     Efficiency ratio                           48.69%      50.86%      55.07%
     Number of full-time equivalent
      employees                                 3,213       3,360       3,360
 
     MARKET DATA
 
     Book value/common share                    10.48        9.39        9.39
     Period-end common share mkt value          26.72       23.00       23.00
     Market as a % of book                        255%        245%        245%
     Cash dividends/common share                 0.86        0.76        0.76
     Common stock dividend payout ratio         47.78%      43.93%      57.58%
     Average basic common shares               87,585      90,320      90,320
     Average diluted common shares             88,344      91,523      91,523
     Period end common shares                  87,032      88,375      88,375
     Common shares repurchased              1,610,500   3,163,000   3,163,000
     Common stock market capitalization     2,325,503   2,032,631   2,032,631
 
     ASSET QUALITY
 
     Gross charge-offs                         49,428      47,836      47,836
     Net charge-offs                           29,320      29,710      29,710
     Allowance for loan losses                108,285     104,897     104,897
     Nonperforming assets (NPAs)               36,391      25,284      25,284
     Net charge-off ratio                        0.40%       0.43%       0.43%
     Allowance/loans                             1.50%       1.50%       1.50%
     NPA to loans + other real estate            0.50%       0.36%       0.36%
     Allowance to NPLs                         357.09%     474.41%     474.41%
 
     CAPITAL & LIQUIDITY
 
     Period-end tangible equity to assets        7.58%       6.74%       6.74%
     Average equity to assets                    8.31%       9.27%       9.27%
     Average equity to loans                    11.85%      12.82%      12.82%
     Average loans to deposits                  98.11%     100.98%     100.98%
 
     AVERAGE BALANCES
 
     Assets                                10,368,637   9,493,047   9,493,047
     Deposits                               7,415,010   6,798,681   6,798,681
     Loans                                  7,275,036   6,865,330   6,865,330
     Earning assets                         9,664,251   8,797,597   8,797,597
     Shareholders' equity                     862,109     880,124     880,124
 
     ENDING BALANCES
 
     Assets                                10,215,203  10,116,877  10,116,877
     Deposits                               7,587,282   6,860,147   6,860,147
     Loans                                  7,237,085   7,014,181   7,014,181
     Intangible assets                        152,107     162,374     162,374
     Earning assets                         9,383,229   9,479,320   9,479,320
     Total shareholders' equity               914,889     833,575     833,575
 
     NOTES:
     (a) - FTE defined as fully tax-equivalent.
     (b) - All amounts indicated as "Core" exclude merger, extraordinary and
           other material unusual charges.
 
     Certain previously reported amounts may have been reclassified to conform
     to current reporting presentation.
 
 

SOURCE FirstMerit Corporation
    AKRON, Ohio, April 19 /PRNewswire/ -- FirstMerit Corporation
 (Nasdaq: FMER) today announced first quarter 2001 net income of $39.2 million,
 or $0.45 per diluted share.  The first quarter 2001 results include an after-
 tax gain of $3.7 million related to the sale of a partnership interest.  This
 compares with net income of $39.7 million, or $0.45 per diluted share,
 reported in the first quarter of 2000.
     (Photo:  http://www.newscom.com/cgi-bin/prnh/20001220/FIRSTMERITLOGO )
     For the first quarter 2001, including the gain on the partnership sale,
 returns on average assets and average common equity were 1.57% and 17.40%,
 respectively, compared with 1.56% and 19.27% for the prior year.
     Commenting on first quarter results, John R. Cochran, Chairman and CEO,
 remarked, "We are pleased to see lower interest rates having a favorable
 effect on our net interest margin.  The decline in funding costs, combined
 with the steps we took during 2000 to strengthen the margin, is contributing
 to this improvement.  We have offset the impact of the weaker economy with
 gains in non-interest income and continued cost control disciplines.
     "We continue to invest to improve the customer experience.  Our
 relationship banking strategy depends on the highest level of personal
 service, combined with the latest improvements in technology.  The completion
 of the ALLTEL conversion of our core banking application systems is an
 important milestone in our progress along the technology curve, advancing
 FirstMerit's goal of seamless integration through all delivery channels."
     Net interest income on a fully tax-equivalent basis was $91.2 million for
 the first quarter of 2001 compared to $93.1 million in the fourth quarter of
 2000 and $97.5 million for the prior year quarter.  The net interest margin
 was 3.97% this quarter, a 13 basis point increase from the fourth quarter of
 2000.  The first quarter 2000 net interest margin was 4.10%.  Average earning
 assets declined 2.4% from the year ago quarter.
     Excluding gains/losses from the sale of securities and the gain on sale of
 a partnership interest (recorded in the other operating income category), non-
 interest income was $41.1 million, 3.8% above the $39.6 million reported a
 year ago.  Growth was strong in manufactured housing income, up 126% and
 credit card fees, up 15.2%.  Adjusted first quarter 2001 fees accounted for
 31.1% of net revenues compared to 28.9% in 2000.
     Non-interest expense totaled $67.6 million in the first quarter of this
 year, up a modest 2.2% from prior year. Improvement was experienced in nearly
 every category, with the exception of other operating expenses, bankcard
 processing and professional services.  The efficiency ratio, without the
 benefit from the partnership sale, was 49.3% for this quarter compared to
 49.9% in the fourth quarter of 2000 and 46.3% in the year ago quarter.
     Period-end assets were $10.1 billion, down 2.7% from the prior year
 quarter.  Earning assets were down 4.6%, with loans up 1.2% and investment
 securities down 20.1%.  Proceeds from investment securities sales and
 maturities have largely been used to pay down higher cost funding sources.
 Consistent with prior periods and FirstMerit's desired loan mix, credit card,
 home equity and commercial loans all experienced solid growth from the year
 ago quarter while installment, manufactured housing and mortgage loans
 declined.
     Total deposits at period end were $7.5 billion, an increase of 3.5% above
 2000 levels, with time deposits, up 5.0%, and savings and money market
 accounts, up 4.2%, accounting for the majority of growth.
     First quarter loan loss provision was $11.8 million, nearly unchanged from
 the first quarter 2000 provision of $11.7 million.  Net charge-offs for the
 quarter were $10.0 million, or 0.55% of average loans outstanding on an
 annualized basis, compared to 0.47% a year ago.  The allowance stands at 1.50%
 of period-end loans, unchanged from the prior year quarter.  Non-performing
 assets as a percent of loans and ORE were 0.52%  this first quarter, compared
 with 0.46% a year ago.  Reserve coverage of non-performing assets was 3.6
 times, substantially unchanged from last year.
     Shareholders' equity was $912.4 million at quarter end.  Average equity to
 assets for the 2001 quarter was 9.06% compared to 8.11% last year.  Common
 stock dividends paid were $0.23 per share, representing a 51.1% payout ratio.
 At quarter end, there were 85.8 million common shares outstanding.
 
     FIRST QUARTER HIGHLIGHTS
     Completion of ALLTEL Conversion -- FirstMerit and ALLTEL Information
 Services completed the conversion of the bank's core application systems
 within a 72-hour time period on the weekend of February 17-19, 2001,
 culminating an 18-month project involving more than 150,000 hours of planning
 and preparation.  FirstMerit now operates ALLTEL's demand deposit, savings and
 time deposit, commercial lending, consumer lending, Internet banking, on-site
 teller applications and is currently implementing ALLTEL's call center
 offering.  The ALLTEL Service Delivery System provides real-time data-sharing
 that allows FirstMerit to integrate customer data across all delivery
 channels, helping us to advance our strategy of relationship banking.
     Financials available on our Website and Conference Call Information - Full
 financial statements are available at www.firstmerit.com/quarterlies .  A
 conference call will be held TODAY, 10:30 AM, EST.  Call 877-871-4065 by 10:25
 AM.  If you are unable to participate on the call, a replay will be available
 beginning 12:30 PM on April 19, 2001, through 12:30 PM on April 29, 2001, by
 dialing 1-800-633-8284, reservation #18618410.
     FirstMerit is a financial services company headquartered in Akron, Ohio,
 with assets of $10.1 billion and 161 banking offices in 22 Ohio and western
 Pennsylvania counties.  FirstMerit provides a complete range of banking and
 other financial services to consumers and businesses through its core
 operations.  Principal wholly-owned subsidiaries include FirstMerit Bank,
 N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd.,
 FirstMerit Credit Life Insurance Company, Mobile Consultants, Inc., and
 FirstMerit Community Development Corporation.  FirstMerit has reported five
 consecutive years of record earnings.
 
     FIRSTMERIT CORPORATION
     CONSOLIDATED FINANCIAL HIGHLIGHTS
     (Dollars in thousands)
 
     Quarterly information is UNAUDITED
                                                 2001         2000       2000
     EARNINGS                                   1st Qtr     4th Qtr     3rd Qtr
 
     Net interest income FTE (a) (b)            $91,191      93,072     93,281
     Provision for loan losses                   11,816       7,201      5,447
     Other income                                47,184      43,744     42,071
     Other expenses                              67,557      70,282     70,104
     FTE adjustment (a)                             834         894        955
     Income before extraordinary charge          39,193      40,047     40,065
     Extraordinary charge, net of tax               ---         ---        ---
     Net income                                 $39,193      40,047     40,065
     Net income per share - diluted               $0.45        0.45       0.45
 
     PERFORMANCE RATIOS
 
     Return on average assets (ROA)                1.57%       1.54%      1.52%
     Return on average common equity (ROE)        17.40%      17.84%     18.29%
     Net interest margin FTE                       3.97%       3.84%      3.79%
     Efficiency ratio                             49.26%      49.88%     49.88%
     Number of full-time equivalent
      employees                                   3,271       3,213      3,359
 
     MARKET DATA
 
     Book value/common share                     $10.60       10.48      10.15
     Period-end common share mkt value            26.00       26.72      22.94
     Market as a % of book                          245%        255%       226%
     Cash dividends/common share                  $0.23        0.22       0.22
     Common stock dividend payout ratio          51.11%      48.89%     48.89%
     Average basic common shares                 86,694      87,585     88,252
     Average diluted common shares               87,508      88,344     89,008
     Period end common shares                    85,835      87,032     88,109
     Common shares repurchased                1,295,000   1,121,500    339,000
     Common stock market capitalization      $2,231,701   2,325,503  2,020,999
 
     ASSET QUALITY
 
     Gross charge-offs                          $14,861      12,542     12,402
     Net charge-offs                              9,959       7,492      6,960
     Allowance for loan losses                  110,142     108,285    108,576
     Nonperforming assets (NPAs)                 38,155      36,391     31,103
     Net charge-off ratio                          0.55%       0.41%      0.38%
     Allowance/loans                               1.50%       1.50%      1.50%
     NPA to loans + other real estate              0.52%       0.50%      0.43%
     Allowance to NPLs                           358.96%     357.09%    407.35%
 
     CAPITAL & LIQUIDITY
 
     Period-end tangible equity to assets          7.70%       7.58%      7.26%
     Average equity to assets                      9.06%       8.66%      8.33%
     Average equity to loans                      12.54%      12.34%     11.84%
     Average loans to deposits                    97.94%      95.61%     95.83%
 
     AVERAGE BALANCES
 
     Assets                                 $10,108,819  10,342,825 10,492,811
     Deposits                                 7,459,008   7,594,784  7,700,137
     Loans                                    7,305,459   7,261,085  7,379,222
     Earning assets                           9,325,445   9,650,502  9,798,571
     Shareholders' equity                       915,832     895,809    873,927
 
     ENDING BALANCES
 
     Assets                                 $10,096,134  10,215,203 10,372,214
     Deposits                                 7,453,473   7,587,282  7,630,881
     Loans                                    7,329,688   7,237,085  7,261,824
     Intangible assets                          145,962     152,107    154,676
     Earning assets                           9,169,455   9,383,229  9,678,926
     Total shareholders' equity                 912,435     914,889    896,918
 
 
     FIRSTMERIT CORPORATION
     CONSOLIDATED FINANCIAL HIGHLIGHTS
     (Dollars in thousands)
 
     Quarterly information is UNAUDITED
                                                     2000              2000
     EARNINGS                                       2nd Qtr           1st Qtr
 
     Net interest income FTE (a) (b)                 96,272            97,461
     Provision for loan losses                        8,346            11,714
     Other income                                    39,188            38,888
     Other expenses                                  68,717            66,089
     FTE adjustment (a)                                 930             1,010
     Income before extraordinary charge              39,976            39,699
     Extraordinary charge, net of tax                   ---               ---
     Net income                                      39,976            39,699
     Net income per share - diluted                    0.45              0.45
 
     PERFORMANCE RATIOS
 
     Return on average assets (ROA)                    1.55%             1.56%
     Return on average common equity (ROE)            19.09%            19.27%
     Net interest margin FTE                           4.00%             4.10%
     Efficiency ratio                                 48.79%            46.26%
     Number of full-time equivalent
      employees                                       3,436             3,424
 
     MARKET DATA
 
     Book value/common share                           9.78              9.51
     Period-end common share mkt value                21.38             18.44
     Market as a % of book                              219%              194%
     Cash dividends/common share                       0.22              0.20
     Common stock dividend payout ratio               48.89%            44.44%
     Average basic common shares                     88,341            88,388
     Average diluted common shares                   89,019            89,147
     Period end common shares                        88,348            88,401
     Common shares repurchased                      150,000               ---
     Common stock market capitalization           1,888,446         1,629,885
 
     ASSET QUALITY
 
     Gross charge-offs                               11,421            13,063
     Net charge-offs                                  6,548             8,320
     Allowance for loan losses                      110,089           108,291
     Nonperforming assets (NPAs)                     29,514            33,465
     Net charge-off ratio                              0.36%             0.47%
     Allowance/loans                                   1.49%             1.50%
     NPA to loans + other real estate                  0.40%             0.46%
     Allowance to NPLs                               433.56%           365.64%
 
     CAPITAL & LIQUIDITY
 
     Period-end tangible equity to assets              6.87%             6.70%
     Average equity to assets                          8.14%             8.11%
     Average equity to loans                          11.52%            11.65%
     Average loans to deposits                        99.48%           102.39%
 
     AVERAGE BALANCES
 
     Assets                                      10,391,625        10,261,950
     Deposits                                     7,381,983         6,977,971
     Loans                                        7,343,730         7,144,579
     Earning assets                               9,680,509         9,559,240
     Shareholders' equity                           845,779           832,457
 
     ENDING BALANCES
 
     Assets                                      10,482,009        10,375,088
     Deposits                                     7,753,196         7,202,346
     Loans                                        7,409,211         7,242,946
     Intangible assets                              157,284           159,743
     Earning assets                               9,752,290         9,614,434
     Total shareholders' equity                     866,796           844,421
 
 
     FIRSTMERIT CORPORATION
     CONSOLIDATED FINANCIAL HIGHLIGHTS
     (Dollars in thousands)
 
     Quarterly information is UNAUDITED                 Core (b)    Reported
                                              2000        1999        1999
     EARNINGS                                Annual      Annual      Annual
 
     Net interest income FTE (a) (b)          380,086     388,237     388,237
     Provision for loan losses                 32,708      27,230      37,430
     Other income                             163,891     154,710     154,710
     Other expenses                           275,192     282,885     316,506
     FTE adjustment (a)                         3,842       4,251       4,251
     Income before extraordinary charge       159,787     157,981     125,717
     Extraordinary charge, net of tax             ---         ---      (5,847)
     Net income                               159,787     157,981     119,870
     Net income per share - diluted              1.80        1.73        1.32
 
     PERFORMANCE RATIOS
 
     Return on average assets (ROA)              1.54%       1.66%       1.26%
     Return on average common equity (ROE)      18.60%      18.02%      13.68%
     Net interest margin FTE                     3.93%       4.41%       4.41%
     Efficiency ratio                           48.69%      50.86%      55.07%
     Number of full-time equivalent
      employees                                 3,213       3,360       3,360
 
     MARKET DATA
 
     Book value/common share                    10.48        9.39        9.39
     Period-end common share mkt value          26.72       23.00       23.00
     Market as a % of book                        255%        245%        245%
     Cash dividends/common share                 0.86        0.76        0.76
     Common stock dividend payout ratio         47.78%      43.93%      57.58%
     Average basic common shares               87,585      90,320      90,320
     Average diluted common shares             88,344      91,523      91,523
     Period end common shares                  87,032      88,375      88,375
     Common shares repurchased              1,610,500   3,163,000   3,163,000
     Common stock market capitalization     2,325,503   2,032,631   2,032,631
 
     ASSET QUALITY
 
     Gross charge-offs                         49,428      47,836      47,836
     Net charge-offs                           29,320      29,710      29,710
     Allowance for loan losses                108,285     104,897     104,897
     Nonperforming assets (NPAs)               36,391      25,284      25,284
     Net charge-off ratio                        0.40%       0.43%       0.43%
     Allowance/loans                             1.50%       1.50%       1.50%
     NPA to loans + other real estate            0.50%       0.36%       0.36%
     Allowance to NPLs                         357.09%     474.41%     474.41%
 
     CAPITAL & LIQUIDITY
 
     Period-end tangible equity to assets        7.58%       6.74%       6.74%
     Average equity to assets                    8.31%       9.27%       9.27%
     Average equity to loans                    11.85%      12.82%      12.82%
     Average loans to deposits                  98.11%     100.98%     100.98%
 
     AVERAGE BALANCES
 
     Assets                                10,368,637   9,493,047   9,493,047
     Deposits                               7,415,010   6,798,681   6,798,681
     Loans                                  7,275,036   6,865,330   6,865,330
     Earning assets                         9,664,251   8,797,597   8,797,597
     Shareholders' equity                     862,109     880,124     880,124
 
     ENDING BALANCES
 
     Assets                                10,215,203  10,116,877  10,116,877
     Deposits                               7,587,282   6,860,147   6,860,147
     Loans                                  7,237,085   7,014,181   7,014,181
     Intangible assets                        152,107     162,374     162,374
     Earning assets                         9,383,229   9,479,320   9,479,320
     Total shareholders' equity               914,889     833,575     833,575
 
     NOTES:
     (a) - FTE defined as fully tax-equivalent.
     (b) - All amounts indicated as "Core" exclude merger, extraordinary and
           other material unusual charges.
 
     Certain previously reported amounts may have been reclassified to conform
     to current reporting presentation.
 
 SOURCE  FirstMerit Corporation

RELATED LINKS

http://fmer.com