FirstMerit Corporation Reports First Quarter 2011 EPS of $0.25 Per Share
AKRON, Ohio, April 26, 2011 /PRNewswire/ --
Quarterly Highlights include:
- 48th consecutive quarter of profitability
- Solid linked-quarter credit trends supported by $10.7 million, or 8.70%, decline in non-performing assets and $4.6 million, or 21.41%, decline in net charge-offs, to 0.99% of average loans
- Annualized average commercial loan growth of 9.86%
- Core deposit growth of $458.8 million
- Strong tangible common equity ratio at 7.50%
FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2011 net income of $27.6 million, or $0.25 per diluted share. This compares with $27.0 million, or $0.25 per diluted share, for the fourth quarter of 2010 and $15.4 million, or $0.18 per diluted share, for the first quarter 2010.
(Logo: http://photos.prnewswire.com/prnh/20070920/CLTU138LOGO )
Returns on average common equity ("ROE") and average assets ("ROA") for the first quarter 2011 were 7.37% and 0.78%, respectively, compared with 7.04% and 0.74% for the fourth quarter of 2010 and 5.71% and 0.55% for the first quarter 2010.
"With our focus on disciplined credit management and underwriting, FirstMerit's credit metrics have been superior throughout the cycle and our performance in the first quarter of 2011 continues to benefit from strong credit quality," said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation. "Our solid financial results this quarter are marked by a number of highlights, including lower net charge-offs and non-performing assets and continued growth in commercial loans and core deposits. Our success is built upon our proven super community bank model, reinforced by our strong, well-capitalized balance sheet."
Net interest margin was 4.00% for the first quarter of 2011 compared with 4.14% for the fourth quarter of 2010 and 3.72% for the first quarter of 2010. The decline in net interest margin compared with the prior quarter was a result of declining average loan balances in the covered loan portfolio. The decline in the covered loan portfolio is to be expected as there were no new acquisitions of loans subject to loss share agreements after the quarter ended June 30, 2010. The covered loan portfolio will continue to decline, through payoffs, charge-offs, termination or expiration of loss share coverage, unless the Corporation acquires additional loans subject to loss share agreements in the future. Expansion in the net interest margin compared with the year ago quarter was driven primarily by the increase in average earning assets as a result of the Midwest acquisition in the quarter ended June 30, 2011.
Average loans, not including covered loans, during the first quarter of 2011 increased $58.3 million, or 0.82%, compared with the fourth quarter of 2010 and increased $179.2 million, or 2.55%, compared with the first quarter of 2010. Compared with the first quarter of 2010, average commercial loans, not including covered loans, increased $356.1 million or 8.48%. Average covered loan balances including the indemnification asset were $1.9 billion, $2.0 billion, and $0.1 billion at March 31, 2011, December 31, 2010, and March 31, 2010, respectively.
The overall mix of deposits improved in the quarter ended March 31, 2011. Average deposits during the first quarter of 2011 decreased $68.6 million, or 0.60%, compared with the fourth quarter of 2010 and increased $3.0 billion, or 35.72%, compared with the first quarter of 2010. The increase year over year was primarily due to the additional deposits assumed in the Midwest acquisition in the quarter ended June 30, 2010. During the first quarter of 2011, the Corporation increased its average core deposits, which excludes time deposits, by $309.7 million, or 3.69%, compared with the fourth quarter of 2010, and $2.2 billion, or 32.88%, compared with the first quarter of 2010. Average time deposits decreased $378.3 million, or 12.60%, from the fourth quarter of 2010 and increased $0.8 million, or 46.03% from the first quarter of 2010. The change in deposit mix over the prior quarter is due to the Corporation's strategy to retain the acquired depository customers and move them from certificate of deposit accounts into core deposit accounts.
Average investments during the first quarter of 2011 increased $181.7 million, or 5.61%, compared with the fourth quarter of 2010 and increased $502.1 million, or 17.21%, over the first quarter of 2010. The increase in the first quarter of 2011 average investments, compared with the fourth quarter of 2010, is due to the purchase of $400.0 million of securities in the first quarter of 2011.
Net interest income on a fully tax-equivalent ("FTE") basis was $123.9 million in the first quarter 2011 compared with $130.0 million in the fourth quarter of 2010 and $92.3 million in the first quarter of 2010. Compared with the fourth quarter of 2010, average earning assets increased $94.3 million, or 0.76%, and increased $2.5 billion, or 24.65%, compared to the first quarter of 2010.
Noninterest income net of securities transactions for the first quarter of 2011 was $52.8 million, a decrease of $1.4 million, or 2.60%, from the fourth quarter of 2010 and an increase of $2.9 million, or 5.72%, from the first quarter of 2010.
The decrease in other income for the first quarter of 2011 compared to the fourth quarter of 2010 was driven by lower mortgage revenue, including loan sales and servicing, down $4.2 million from the prior quarter. In the fourth quarter of 2010, the Corporation experienced significantly high levels of fee income from loan sales and servicing related to increased origination activity in 2010.
Other income, net of securities gains, as a percentage of net revenue for the first quarter of 2011 was 29.86% compared with 29.42% for fourth quarter of 2010 and 35.08% for the first quarter of 2010. Net revenue is defined as net interest income, on a FTE basis, plus other income, less gains from securities sales.
Noninterest expense for the first quarter of 2011 was $114.4 million, a decrease of $8.0 million, or 6.54%, from the fourth quarter of 2010 and an increase of $20.4 million, or 21.73%, from the first quarter of 2010. For the three months ended March 31, 2011, increases in operating expenses compared to the first quarter of 2010 were primarily attributable to increased salary and benefits as a result of the three 2010 acquisitions.
During the first quarter of 2011, the Corporation reported an efficiency ratio of 64.46%, compared with 65.95% for the fourth quarter of 2010 and 65.93% for the first quarter of 2010.
Net charge-offs, excluding acquired loans, totaled $17.0 million, or 0.99% of average loans, excluding acquired loans, in the first quarter of 2011 compared with $21.7 million, or 1.25% of average loans, in the fourth quarter of 2010 and $22.8 million, or 1.36% of average loans, in the first quarter of 2010.
Nonperforming assets totaled $112.8 million at March 31, 2011, a decrease of $10.7 million compared with December 31, 2010 and a decrease of $10.6 million compared with March 31, 2010. Nonperforming assets at March 31, 2011 represented 1.61% of period-end loans plus other real estate, excluding acquired loans, compared with 1.78% at December 31, 2010 and 1.80% at March 31, 2010.
The allowance for noncovered loan losses, totaled $114.7 million at March 31, 2011 and December 31, 2010. At March 31, 2011, the allowance for noncovered loan losses was 1.64% of period-end loans compared with 1.65% at December 31, 2010, and 1.72% at March 31, 2010. The allowance for credit losses is the sum of the allowance for noncovered loan losses, and the reserve for unfunded lending commitments. For comparative purposes the allowance for credit losses was 1.74% of period-end loans, excluding acquired loans, at March 31, 2011, compared with 1.78% at December 31, 2010 and 1.82% at March 31, 2010. The allowance for credit losses to nonperforming loans was 147.38% at March 31, 2011, compared with 118.01% at December 31, 2010 and 110.80% at March 31, 2010.
The Corporation's total assets at March 31, 2011 were $14.5 billion, an increase of $331.8 million, or 2.35%, compared with December 31, 2010 and an increase of $2.1 billion, or 17.38%, compared with March 31, 2010. Total loans, excluding acquired loans, did not significantly change compared with December 31, 2010 and March 31, 2010. The increase in total assets compared with March 31, 2010, is attributed to the three 2010 acquisitions.
Total deposits were $11.4 billion at March 31, 2011, an increase of $127.9 million, or 1.14%, from December 31, 2010 and an increase of $2.0 billion, or 21.62%, from March 31, 2010. The increase in total deposits over March 31, 2010 was driven primarily by deposits acquired in the Midwest acquisition in the quarter ended June 30, 2010. Core deposits totaled $8.9 billion at March 31, 2011, an increase of $0.5 billion, or 5.42%, from December 31, 2010 and an increase of $1.9 billion, or 27.42%, from March 31, 2010. The increase in core deposits over the prior quarter is due to the Corporation's strategy to retain acquired depository customers and move them from certificate of deposit accounts into core deposit products.
Shareholders' equity was $1.5 billion at March 31, 2011 and December 31, 2010 compared with $1.2 billion at March 31, 2010. The Corporation maintained a strong capital position as tangible common equity to assets was 7.50% at March 31, 2011, compared with 7.59% and 7.91% at December 31, 2010 and March 31, 2010, respectively. The common dividend per share paid in the first quarter 2011 was $0.16.
Acquisitions and Integration
The three 2010 acquisitions of First Bank, George Washington and Midwest were considered business combinations and accounted for under FASB Accounting Standard Codification 805, Business Combinations (ASC 805). All acquired assets and liabilities were recorded at their estimated fair values as of the date of acquisition and identifiable intangible assets were recorded at their estimated fair value. Estimated fair values of the acquired assets and liabilities of Midwest are considered preliminary and are subject to change up to one year after the acquisition date. This one year measurement period allows for adjustments to the initial purchase entries if additional information relative to closing date fair values becomes available. The one year measurement period for the First Bank and George Washington acquisitions expired in the quarter ended March 31, 2011. Material adjustments to acquisition date estimated fair values have been recorded in the period in which the acquisition occurred and, as a result, previously reported results are subject to change. Certain reclassifications of prior periods' amounts may also be made to conform to the current period's presentation and would have no effect on previously reported net income amounts.
During the quarter ended March 31, 2011, we obtained additional information that resulted in changes to certain acquisition-data fair value estimates relating to the Midwest acquisition. These purchase accounting adjustments have resulted in a decrease to goodwill of approximately $19.1 million to $272.1 million as of June 30, 2010. Prior period amounts appropriately reflect these adjustments.
First Quarter 2011 Conference Call
FirstMerit Corporation senior management will host an earnings conference call today at 2:00 p.m. (Eastern Time) to provide an overview of first quarter 2011 results and highlights. To participate in the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 59604216. A replay of the conference call will be available at approximately 5:00 p.m. (Eastern Time) on April 26, 2011 through May 10, 2011 by dialing (800) 642-1687, and entering the PIN: 59604216.
About FirstMerit Corporation
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $14.5 billion as of March 31, 2011 and 207 banking offices and 220 ATMs in Ohio, Western Pennsylvania and the Chicago area. FirstMerit Corporation 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.
Subsequent Events
The Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the March 31, 2011 consolidated financial statements on Form 10-Q. As a result, the Corporation will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2011 and will adjust amounts preliminarily reported, if necessary.
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 Corporation, 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 Corporation's business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||
Consolidated Financial Highlights |
|||||||||||
(Unaudited) |
Quarters |
||||||||||
(Dollars in thousands) |
|||||||||||
2011 |
2010 |
2010 |
2010 |
2010 |
|||||||
EARNINGS |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
||||||
Net interest income FTE (a) |
$ |
123,940 |
$ |
129,971 |
$ |
125,514 |
$ |
118,817 |
$ |
92,348 |
|
Provision for noncovered loan losses |
17,018 |
19,816 |
18,108 |
20,366 |
25,493 |
||||||
Provision for covered loan losses |
5,331 |
3,572 |
593 |
267 |
- |
||||||
Other income |
52,756 |
54,311 |
55,135 |
53,209 |
49,900 |
||||||
Other expenses |
114,445 |
122,452 |
120,670 |
105,723 |
94,013 |
||||||
FTE adjustment (a) |
2,116 |
2,107 |
2,021 |
2,050 |
1,954 |
||||||
Net income |
27,560 |
27,030 |
28,996 |
31,493 |
15,390 |
||||||
Diluted EPS |
0.25 |
0.25 |
0.27 |
0.32 |
0.18 |
||||||
PERFORMANCE RATIOS |
|||||||||||
Return on average assets (ROA) |
0.78% |
0.74% |
0.79% |
0.94% |
0.55% |
||||||
Return on average common equity (ROE) |
7.37% |
7.04% |
7.60% |
11.21% |
5.71% |
||||||
Net interest margin FTE (a) |
4.00% |
4.14% |
3.96% |
4.02% |
3.72% |
||||||
Efficiency ratio |
64.46% |
65.95% |
66.26% |
61.30% |
65.93% |
||||||
Number of full-time equivalent employees |
3,056 |
3,058 |
3,093 |
3,095 |
2,723 |
||||||
MARKET DATA |
|||||||||||
Book value/common share |
$ |
13.98 |
$ |
13.86 |
$ |
13.95 |
$ |
13.87 |
$ |
12.69 |
|
Period-end common share mkt value |
17.07 |
19.79 |
18.32 |
17.13 |
21.57 |
||||||
Market as a % of book |
122% |
143% |
131% |
124% |
170% |
||||||
Cash dividends/common share |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
|
Common stock dividend payout ratio |
64.00% |
64.41% |
60.03% |
50.00% |
88.89% |
||||||
Average basic common shares |
108,769 |
108,807 |
108,793 |
98,968 |
87,771 |
||||||
Average diluted common shares |
108,770 |
108,808 |
108,794 |
98,969 |
87,777 |
||||||
Period end common shares |
108,734 |
108,817 |
108,803 |
108,786 |
90,810 |
||||||
Common shares repurchased |
91 |
9 |
4 |
46 |
115 |
||||||
Common stock market capitalization |
$ |
1,856,089 |
$ |
2,153,479 |
$ |
1,993,276 |
$ |
1,863,504 |
$ |
1,958,772 |
|
ASSET QUALITY (excluding acquired loans) |
|||||||||||
Gross charge-offs |
$ |
22,812 |
$ |
27,553 |
$ |
25,817 |
$ |
24,967 |
$ |
26,195 |
|
Net charge-offs |
17,018 |
21,654 |
19,923 |
19,829 |
22,779 |
||||||
Allowance for loan losses noncovered |
114,690 |
114,690 |
116,528 |
118,343 |
117,806 |
||||||
Reserve for unfunded lending commitments |
7,202 |
8,849 |
7,864 |
6,812 |
6,337 |
||||||
Nonperforming assets (NPAs) (b) |
112,759 |
123,502 |
115,267 |
109,781 |
123,320 |
||||||
Net charge-offs/average loans ratio (b) |
0.99% |
1.25% |
1.17% |
1.15% |
1.36% |
||||||
Allowance for noncovered loan losses/period-end loans (b) |
1.64% |
1.65% |
1.72% |
1.75% |
1.72% |
||||||
Allowance for credit losses/period-end loans (b) |
1.74% |
1.78% |
1.84% |
1.85% |
1.82% |
||||||
NPAs/loans and other real estate (b) |
1.61% |
1.78% |
1.70% |
1.62% |
1.80% |
||||||
Allowance for noncovered loan losses/nonperforming loans |
138.67% |
109.56% |
111.00% |
119.62% |
105.14% |
||||||
Allowance for credit losses/nonperforming loans |
147.38% |
118.01% |
118.49% |
126.51% |
110.80% |
||||||
CAPITAL & LIQUIDITY |
|||||||||||
Period-end tangible common equity to assets |
7.50% |
7.59% |
7.54% |
7.35% |
7.91% |
||||||
Average equity to assets |
10.62% |
10.51% |
10.38% |
8.39% |
9.63% |
||||||
Average equity to total loans (c) |
17.14% |
17.15% |
16.93% |
13.68% |
15.39% |
||||||
Average total loans to deposits (c) |
78.14% |
78.00% |
78.25% |
77.73% |
85.18% |
||||||
AVERAGE BALANCES |
|||||||||||
Assets |
$ |
14,270,871 |
$ |
14,493,060 |
$ |
14,587,126 |
$ |
13,426,271 |
$ |
11,357,110 |
|
Deposits |
11,319,809 |
11,388,423 |
11,425,741 |
10,600,401 |
8,340,796 |
||||||
Loans, excluding acquired loans (c) |
6,963,389 |
6,868,222 |
6,781,123 |
6,810,582 |
6,812,647 |
||||||
Acquired loans, including covered loans (c) |
1,881,540 |
2,014,361 |
2,160,075 |
1,429,388 |
291,651 |
||||||
Earning assets |
12,560,913 |
12,466,629 |
12,579,486 |
11,860,439 |
10,076,565 |
||||||
Shareholders' equity |
1,516,227 |
1,523,078 |
1,513,527 |
1,127,017 |
1,093,568 |
||||||
ENDING BALANCES |
|||||||||||
Assets |
$ |
14,466,509 |
$ |
14,134,714 |
$ |
14,354,086 |
$ |
14,521,473 |
$ |
12,324,589 |
|
Deposits |
11,395,946 |
11,268,006 |
11,271,416 |
11,515,171 |
9,370,009 |
||||||
Loans, excluding acquired loans (c) |
6,989,973 |
6,937,142 |
6,776,098 |
6,779,941 |
6,836,451 |
||||||
Acquired loans, including covered loans (c) |
1,800,525 |
1,953,093 |
2,119,504 |
2,244,737 |
533,888 |
||||||
Goodwill |
460,044 |
460,044 |
460,044 |
460,044 |
187,945 |
||||||
Intangible assets |
9,868 |
10,411 |
11,416 |
12,422 |
5,659 |
||||||
Earning assets |
12,659,414 |
12,427,936 |
12,507,979 |
12,680,627 |
10,775,434 |
||||||
Total shareholders' equity |
1,519,957 |
1,507,715 |
1,517,892 |
1,505,345 |
1,152,721 |
||||||
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. (b) - As required by current accounting guidance, the acquired loans and other real estate from First Bank, George Washington Savings Bank and Midwest Bank & Trust Company were recorded at fair value with no carryover of the related allowances. The ratio of our allowance for loan and credit losses and NPAs do not include these loans and other real estate. (c) - Excludes loss share receivable of $266 million, $289 million, $318.4 million, $319.8 million and $88.0 million as of March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. |
|||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||
CONSOLIDATED BALANCE SHEETS |
||||||||||
(Dollars in thousands) |
||||||||||
(Unaudited, except December 31, 2010, which is derived from the |
March 31, |
December 31, |
March 31, |
|||||||
audited financial statements) |
2011 |
2010 |
2010 |
|||||||
ASSETS |
||||||||||
Cash and due from banks |
$ |
168,528 |
$ |
157,415 |
$ |
171,793 |
||||
Interest-bearing deposits in banks |
470,253 |
365,698 |
550,145 |
|||||||
Total cash and cash equivalents |
638,781 |
523,113 |
721,938 |
|||||||
Investment securities |
||||||||||
Held-to-maturity |
65,923 |
59,962 |
67,256 |
|||||||
Available-for-sale |
3,362,751 |
2,987,040 |
3,101,740 |
|||||||
Other investments |
160,818 |
160,752 |
132,043 |
|||||||
Loans held for sale |
13,443 |
41,340 |
16,009 |
|||||||
Noncovered loans: |
||||||||||
Commercial loans |
4,565,376 |
4,527,497 |
4,389,859 |
|||||||
Mortgage loans |
399,380 |
403,843 |
447,575 |
|||||||
Installment loans |
1,282,170 |
1,308,860 |
1,382,522 |
|||||||
Home equity loans |
736,947 |
749,378 |
766,073 |
|||||||
Credit card loans |
141,864 |
149,506 |
145,029 |
|||||||
Leases |
60,487 |
63,004 |
59,464 |
|||||||
Total noncovered loans |
7,186,224 |
7,202,088 |
7,190,522 |
|||||||
Allowance for noncovered loan losses |
(114,690) |
(114,690) |
(117,806) |
|||||||
Net noncovered loans |
7,071,534 |
7,087,398 |
7,072,716 |
|||||||
Covered loans (includes loss share receivable of $266 million) |
1,870,255 |
1,976,754 |
267,864 |
|||||||
Allowance for covered loan losses |
(28,405) |
(13,733) |
- |
|||||||
Net covered loans |
1,841,850 |
1,963,021 |
267,864 |
|||||||
Net loans |
8,913,384 |
9,050,419 |
7,340,580 |
|||||||
Premises and equipment, net |
192,630 |
197,866 |
164,408 |
|||||||
Goodwill |
460,044 |
460,044 |
187,945 |
|||||||
Intangible assets |
9,868 |
10,411 |
5,659 |
|||||||
Other real estate covered by FDIC loss share |
58,688 |
54,710 |
22,754 |
|||||||
Accrued interest receivable and other assets |
590,179 |
589,057 |
564,257 |
|||||||
Total assets |
$ |
14,466,509 |
$ |
14,134,714 |
$ |
12,324,589 |
||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||
Deposits: |
||||||||||
Demand-non-interest bearing |
$ |
2,925,088 |
$ |
2,790,550 |
$ |
2,217,714 |
||||
Demand-interest bearing |
815,593 |
868,404 |
686,503 |
|||||||
Savings and money market accounts |
5,188,815 |
4,811,784 |
4,103,657 |
|||||||
Certificates and other time deposits |
2,466,450 |
2,797,268 |
2,362,135 |
|||||||
Total deposits |
11,395,946 |
11,268,006 |
9,370,009 |
|||||||
Federal funds purchased and securities sold under agreements to repurchase |
952,995 |
777,585 |
896,330 |
|||||||
Wholesale borrowings |
325,046 |
326,007 |
677,715 |
|||||||
Accrued taxes, expenses, and other liabilities |
272,565 |
255,401 |
227,814 |
|||||||
Total liabilities |
12,946,552 |
12,626,999 |
11,171,868 |
|||||||
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 115,121,731, 115,121,731 and |
||||||||||
97,521,571 at March 31, 2011, December 31, 2010 and |
||||||||||
March 31, 2010, respectively |
127,937 |
127,937 |
127,937 |
|||||||
Capital surplus |
488,770 |
485,567 |
171,330 |
|||||||
Accumulated other comprehensive loss |
(25,765) |
(26,103) |
(20,983) |
|||||||
Retained earnings |
1,091,160 |
1,080,900 |
1,045,195 |
|||||||
Treasury stock, at cost, 6,387,924, 6,305,218 and 6,711,936 |
||||||||||
shares at March 31, 2011, December 31, 2010 and March 31, 2010, respectively |
(162,145) |
(160,586) |
(170,758) |
|||||||
Total shareholders' equity |
1,519,957 |
1,507,715 |
1,152,721 |
|||||||
Total liabilities and shareholders' equity |
$ |
14,466,509 |
$ |
14,134,714 |
$ |
12,324,589 |
||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS |
|||||||||||
Quarterly Periods |
|||||||||||
(Unaudited) |
|||||||||||
(Dollars in thousands) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||
2011 |
2010 |
2010 |
2010 |
2010 |
|||||||
ASSETS |
|||||||||||
Cash and cash equivalents |
$ |
520,602 |
$ |
809,828 |
$ |
821,713 |
$ |
762,781 |
$ |
521,666 |
|
Investment securities |
|||||||||||
Held-to-maturity |
64,212 |
64,287 |
63,364 |
64,650 |
56,322 |
||||||
Available-for-sale |
3,194,751 |
3,012,983 |
3,049,056 |
3,131,787 |
2,731,639 |
||||||
Other investments |
160,752 |
160,756 |
158,591 |
179,735 |
129,658 |
||||||
Loans held for sale |
22,574 |
39,174 |
21,659 |
18,827 |
14,538 |
||||||
Noncovered loans: |
|||||||||||
Commercial loans |
4,553,777 |
4,445,691 |
4,336,631 |
4,376,274 |
4,197,663 |
||||||
Mortgage loans |
403,758 |
403,334 |
421,087 |
438,243 |
454,525 |
||||||
Installment loans |
1,294,156 |
1,331,130 |
1,363,248 |
1,377,748 |
1,402,552 |
||||||
Home equity loans |
741,596 |
754,270 |
762,626 |
763,943 |
757,094 |
||||||
Credit card loans |
146,526 |
146,744 |
146,863 |
145,880 |
150,117 |
||||||
Leases |
61,768 |
62,115 |
58,223 |
59,049 |
60,430 |
||||||
Total noncovered loans |
7,201,581 |
7,143,284 |
7,088,678 |
7,161,137 |
7,022,381 |
||||||
Covered loans and loss share receivable |
1,917,043 |
2,046,145 |
2,198,138 |
1,304,303 |
122,027 |
||||||
Total loans |
9,118,624 |
9,189,429 |
9,286,816 |
8,465,440 |
7,144,408 |
||||||
Less: total allowance for loan losses |
134,064 |
119,924 |
113,062 |
116,436 |
115,031 |
||||||
Net loans |
8,984,560 |
9,069,505 |
9,173,754 |
8,349,004 |
7,029,377 |
||||||
Total earning assets |
12,560,913 |
12,466,629 |
12,579,486 |
11,860,439 |
10,076,565 |
||||||
Premises and equipment, net |
195,296 |
195,915 |
172,712 |
167,009 |
141,405 |
||||||
Accrued interest receivable and other assets |
1,128,124 |
1,140,612 |
1,126,277 |
752,478 |
732,505 |
||||||
TOTAL ASSETS |
$ |
14,270,871 |
$ |
14,493,060 |
$ |
14,587,126 |
$ |
13,426,271 |
$ |
11,357,110 |
|
LIABILITIES |
|||||||||||
Deposits: |
|||||||||||
Demand-non-interest bearing |
$ |
2,874,884 |
$ |
2,816,850 |
$ |
2,730,483 |
$ |
2,496,826 |
$ |
2,146,969 |
|
Demand-interest bearing |
841,545 |
857,960 |
858,168 |
775,031 |
687,233 |
||||||
Savings and money market accounts |
4,978,773 |
4,710,682 |
4,502,779 |
4,278,756 |
3,709,246 |
||||||
Certificates and other time deposits |
2,624,607 |
3,002,931 |
3,334,311 |
3,049,788 |
1,797,348 |
||||||
Total deposits |
11,319,809 |
11,388,423 |
11,425,741 |
10,600,401 |
8,340,796 |
||||||
Federal funds purchased and securities sold under |
|||||||||||
agreements to repurchase |
848,169 |
904,163 |
928,607 |
843,652 |
951,927 |
||||||
Wholesale borrowings |
325,296 |
368,397 |
443,890 |
526,963 |
708,414 |
||||||
Total funds |
12,493,274 |
12,660,983 |
12,798,238 |
11,971,016 |
10,001,137 |
||||||
Accrued taxes, expenses and other liabilities |
261,370 |
308,999 |
275,361 |
328,238 |
262,405 |
||||||
Total liabilities |
12,754,644 |
12,969,982 |
13,073,599 |
12,299,254 |
10,263,542 |
||||||
SHAREHOLDERS' EQUITY |
|||||||||||
Common stock |
127,937 |
127,937 |
127,937 |
127,937 |
127,937 |
||||||
Capital surplus |
486,907 |
485,126 |
484,197 |
127,143 |
106,350 |
||||||
Accumulated other comprehensive loss |
(26,703) |
(9,867) |
(2,332) |
(15,913) |
(20,593) |
||||||
Retained earnings |
1,089,554 |
1,080,809 |
1,065,001 |
1,051,308 |
1,049,774 |
||||||
Treasury stock |
(161,468) |
(160,927) |
(161,276) |
(163,458) |
(169,900) |
||||||
Total shareholders' equity |
1,516,227 |
1,523,078 |
1,513,527 |
1,127,017 |
1,093,568 |
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
14,270,871 |
$ |
14,493,060 |
$ |
14,587,126 |
$ |
13,426,271 |
$ |
11,357,110 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS |
|||||||||||||||||||
Fully Tax-equivalent Interest Rates and Interest Differential |
|||||||||||||||||||
(Unaudited) |
|||||||||||||||||||
(Dollars in thousands) |
|||||||||||||||||||
Three months ended |
Year ended |
Three months ended |
|||||||||||||||||
March 31, 2011 |
December 31, 2010 |
March 31, 2010 |
|||||||||||||||||
Average |
Average |
Average |
Average |
Average |
Average |
||||||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|||||||||||
ASSETS |
|||||||||||||||||||
Cash and cash equivalents |
$ |
520,602 |
$ |
728,723 |
$ |
521,666 |
|||||||||||||
Investment securities and federal funds sold: |
|||||||||||||||||||
U.S. Treasury securities and U.S. Government |
|||||||||||||||||||
agency obligations (taxable) |
2,783,053 |
19,368 |
2.82% |
2,554,538 |
87,019 |
3.41% |
2,377,729 |
22,909 |
3.91% |
||||||||||
Obligations of states and political subdivisions (tax |
|||||||||||||||||||
exempt) |
357,511 |
5,030 |
5.71% |
348,832 |
20,505 |
5.88% |
344,899 |
5,139 |
6.04% |
||||||||||
Other securities and federal funds sold |
279,151 |
2,117 |
3.08% |
300,700 |
8,508 |
2.83% |
194,991 |
1,986 |
4.13% |
||||||||||
Total investment securities and federal |
|||||||||||||||||||
funds sold |
3,419,715 |
26,515 |
3.14% |
3,204,070 |
116,032 |
3.62% |
2,917,619 |
30,034 |
4.17% |
||||||||||
Loans held for sale |
22,574 |
274 |
4.92% |
23,612 |
1,162 |
4.92% |
14,538 |
184 |
5.13% |
||||||||||
Noncovered loans, covered loans and loss share |
|||||||||||||||||||
receivable |
9,118,624 |
114,562 |
5.10% |
8,529,303 |
433,308 |
5.08% |
7,144,408 |
83,590 |
4.75% |
||||||||||
Total earning assets |
12,560,913 |
141,351 |
4.56% |
11,756,985 |
550,502 |
4.68% |
10,076,565 |
113,808 |
4.58% |
||||||||||
Total allowance for loan losses |
(134,064) |
(116,118) |
(115,031) |
||||||||||||||||
Other assets |
1,323,420 |
1,154,761 |
869,604 |
||||||||||||||||
Total assets |
$ |
14,270,871 |
$ |
13,524,351 |
$ |
11,352,804 |
|||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||||
Deposits: |
|||||||||||||||||||
Demand - non-interest bearing |
$ |
2,874,884 |
-- |
-- |
$ |
2,550,849 |
-- |
-- |
$ |
2,146,969 |
-- |
-- |
|||||||
Demand - interest bearing |
841,545 |
184 |
0.09% |
794,497 |
751 |
0.09% |
687,233 |
152 |
0.09% |
||||||||||
Savings and money market accounts |
4,978,773 |
7,845 |
0.64% |
4,303,815 |
31,912 |
0.74% |
3,709,246 |
7,601 |
0.83% |
||||||||||
Certificates and other time deposits |
2,624,607 |
6,827 |
1.05% |
2,801,270 |
32,713 |
1.17% |
1,797,348 |
6,406 |
1.45% |
||||||||||
Total deposits |
11,319,809 |
14,856 |
0.53% |
10,450,431 |
65,376 |
0.63% |
8,340,796 |
14,159 |
0.69% |
||||||||||
Securities sold under agreements to repurchase |
848,169 |
915 |
0.44% |
907,015 |
4,477 |
0.49% |
951,927 |
1,127 |
0.48% |
||||||||||
Wholesale borrowings |
325,296 |
1,640 |
2.04% |
510,799 |
13,998 |
2.74% |
708,414 |
6,174 |
3.53% |
||||||||||
Total interest bearing liabilities |
9,618,390 |
17,411 |
0.73% |
9,317,396 |
83,851 |
0.90% |
7,854,168 |
21,460 |
1.11% |
||||||||||
Other liabilities |
261,370 |
340,485 |
262,405 |
||||||||||||||||
Shareholders' equity |
1,516,227 |
1,315,621 |
1,093,568 |
||||||||||||||||
Total liabilities and shareholders' equity |
$ |
14,270,871 |
$ |
13,524,351 |
$ |
11,357,110 |
|||||||||||||
Net yield on earning assets |
$ |
12,560,913 |
123,940 |
4.00% |
$ |
11,756,985 |
466,651 |
3.97% |
$ |
10,076,565 |
92,348 |
3.72% |
|||||||
Interest rate spread |
3.83% |
3.78% |
3.47% |
||||||||||||||||
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. |
|||||||||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
|||||||||
(Unaudited) |
Quarters ended |
||||||||
(Dollars in thousands except per share data) |
March 31, |
||||||||
2011 |
2010 |
||||||||
Interest income: |
|||||||||
Interest and fees on loans, including held for sale |
$ |
114,555 |
$ |
83,645 |
|||||
Investment securities |
|||||||||
Taxable |
21,485 |
24,870 |
|||||||
Tax-exempt |
3,195 |
3,339 |
|||||||
Total investment securities interest |
24,680 |
28,209 |
|||||||
Total interest income |
139,235 |
111,854 |
|||||||
Interest expense: |
|||||||||
Interest on deposits: |
|||||||||
Demand-interest bearing |
184 |
152 |
|||||||
Savings and money market accounts |
7,845 |
7,601 |
|||||||
Certificates and other time deposits |
6,827 |
6,406 |
|||||||
Interest on securities sold under agreements to repurchase |
915 |
1,127 |
|||||||
Interest on wholesale borrowings |
1,640 |
6,174 |
|||||||
Total interest expense |
17,411 |
21,460 |
|||||||
Net interest income |
121,824 |
90,394 |
|||||||
Provision for noncovered loan losses |
17,018 |
25,493 |
|||||||
Provision for covered loan losses |
5,331 |
- |
|||||||
Net interest income after provision for loan losses |
99,475 |
64,901 |
|||||||
Other income: |
|||||||||
Trust department income |
5,514 |
5,281 |
|||||||
Service charges on deposits |
14,910 |
15,366 |
|||||||
Credit card fees |
12,207 |
11,558 |
|||||||
ATM and other service fees |
2,917 |
2,509 |
|||||||
Bank owned life insurance income |
5,241 |
5,652 |
|||||||
Investment services and insurance |
2,447 |
1,928 |
|||||||
Loan sales and servicing income |
5,012 |
3,237 |
|||||||
Gain on George Washington acquisition |
- |
1,041 |
|||||||
Other operating income |
4,508 |
3,328 |
|||||||
Total other income |
52,756 |
49,900 |
|||||||
Other expenses: |
|||||||||
Salaries, wages, pension and employee benefits |
59,871 |
48,156 |
|||||||
Net occupancy expense |
8,594 |
7,140 |
|||||||
Equipment expense |
6,836 |
6,050 |
|||||||
Stationery, supplies and postage |
2,705 |
2,693 |
|||||||
Bankcard, loan processing and other costs |
7,562 |
7,818 |
|||||||
Professional services |
5,793 |
5,237 |
|||||||
Amortization of intangibles |
543 |
234 |
|||||||
FDIC expense |
4,366 |
3,765 |
|||||||
Other operating expense |
18,175 |
12,920 |
|||||||
Total other expenses |
114,445 |
94,013 |
|||||||
Income before federal income tax expense |
37,786 |
20,788 |
|||||||
Federal income tax expense |
10,226 |
5,398 |
|||||||
Net income |
$ |
27,560 |
$ |
15,390 |
|||||
Other comprehensive income, net of taxes |
|||||||||
Unrealized securities' holding gain, net of taxes |
$ |
338 |
$ |
4,476 |
|||||
Unrealized hedging loss, net of taxes |
- |
- |
|||||||
Less: reclassification adjustment for securities' gain realized in |
|||||||||
income, net of taxes |
- |
- |
|||||||
Minimum pension liability adjustment, net of taxes |
- |
- |
|||||||
Total other comprehensive gain, net of taxes |
338 |
4,476 |
|||||||
Comprehensive income |
$ |
27,898 |
$ |
19,866 |
|||||
Net income applicable to common shares |
$ |
27,560 |
$ |
15,390 |
|||||
Net income used in diluted EPS calculation |
$ |
27,560 |
$ |
15,390 |
|||||
Weighted average number of common shares outstanding - basic |
108,769 |
87,771 |
|||||||
Weighted average number of common shares outstanding - diluted |
108,770 |
87,777 |
|||||||
Basic earnings per share |
$ |
0.25 |
$ |
0.18 |
|||||
Diluted earnings per share |
$ |
0.25 |
$ |
0.18 |
|||||
Dividend per share |
$ |
0.16 |
$ |
0.16 |
|||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME---LINKED QUARTERS |
|||||||||||
Quarterly Results |
|||||||||||
(Unaudited) |
2011 |
2010 |
2010 |
2010 |
2010 |
||||||
(Dollars in thousands, except share data) |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
||||||
Interest and fees on loans, including held for sale |
$ |
114,555 |
$ |
121,651 |
$ |
118,543 |
$ |
109,924 |
$ |
83,645 |
|
Interest and dividends - securities and federal funds sold |
24,680 |
24,714 |
26,794 |
28,890 |
28,209 |
||||||
Total interest income |
139,235 |
146,365 |
145,337 |
138,814 |
111,854 |
||||||
Interest on deposits: |
|||||||||||
Demand-interest bearing |
184 |
198 |
252 |
149 |
152 |
||||||
Savings and money market accounts |
7,845 |
8,145 |
8,294 |
7,873 |
7,601 |
||||||
Certificates and other time deposits |
6,827 |
7,209 |
9,588 |
9,510 |
6,406 |
||||||
Securities sold under agreements to repurchase |
915 |
960 |
986 |
1,404 |
1,127 |
||||||
Wholesale borrowings |
1,640 |
1,989 |
2,724 |
3,111 |
6,174 |
||||||
Total interest expense |
17,411 |
18,501 |
21,844 |
22,047 |
21,460 |
||||||
Net interest income |
121,824 |
127,864 |
123,493 |
116,767 |
90,394 |
||||||
Provision for noncovered loan losses |
17,018 |
19,816 |
18,108 |
20,366 |
25,493 |
||||||
Provision for covered loan losses |
5,331 |
3,572 |
593 |
267 |
- |
||||||
Net interest income after provision for loan losses |
99,475 |
104,476 |
104,792 |
96,134 |
64,901 |
||||||
Other income: |
|||||||||||
Trust department income |
5,514 |
5,627 |
5,469 |
5,574 |
5,281 |
||||||
Service charges on deposits |
14,910 |
15,938 |
16,859 |
17,737 |
15,366 |
||||||
Credit card fees |
12,207 |
12,678 |
12,532 |
12,242 |
11,558 |
||||||
ATM and other service fees |
2,917 |
2,910 |
2,996 |
2,844 |
2,509 |
||||||
Bank owned life insurance income |
5,241 |
3,192 |
3,219 |
2,886 |
5,652 |
||||||
Investment services and insurance |
2,447 |
2,300 |
2,688 |
2,535 |
1,928 |
||||||
Investment securities gains, net |
- |
146 |
58 |
651 |
- |
||||||
Loan sales and servicing income |
5,012 |
9,221 |
4,006 |
2,975 |
3,237 |
||||||
Gain on George Washington acquisition |
- |
- |
- |
- |
1,041 |
||||||
Other operating income |
4,508 |
2,299 |
7,308 |
5,765 |
3,328 |
||||||
Total other income |
52,756 |
54,311 |
55,135 |
53,209 |
49,900 |
||||||
Other expenses: |
|||||||||||
Salaries, wages, pension and employee benefits |
59,871 |
62,331 |
58,930 |
51,899 |
48,156 |
||||||
Net occupancy expense |
8,594 |
9,236 |
8,608 |
7,680 |
7,140 |
||||||
Equipment expense |
6,836 |
7,549 |
7,330 |
6,735 |
6,050 |
||||||
Stationery, supplies and postage |
2,705 |
3,183 |
2,865 |
2,696 |
2,693 |
||||||
Bankcard, loan processing and other costs |
7,562 |
7,810 |
8,281 |
7,663 |
7,818 |
||||||
Professional services |
5,793 |
7,731 |
8,544 |
7,845 |
5,237 |
||||||
Amortization of intangibles |
543 |
1,006 |
1,006 |
669 |
234 |
||||||
FDIC expense |
4,366 |
4,342 |
5,267 |
4,416 |
3,765 |
||||||
Other operating expense |
18,175 |
19,264 |
19,839 |
16,120 |
12,920 |
||||||
Total other expenses |
114,445 |
122,452 |
120,670 |
105,723 |
94,013 |
||||||
Income before income tax expense |
37,786 |
36,335 |
39,257 |
43,620 |
20,788 |
||||||
Federal income taxes |
10,226 |
9,305 |
10,261 |
12,127 |
5,398 |
||||||
Net income |
$ |
27,560 |
$ |
27,030 |
$ |
28,996 |
$ |
31,493 |
$ |
15,390 |
|
Other comprehensive income (loss), net of taxes |
338 |
(21,188) |
(398) |
16,466 |
4,476 |
||||||
Comprehensive income |
$ |
27,898 |
$ |
5,842 |
$ |
28,598 |
$ |
47,959 |
$ |
19,866 |
|
Net income applicable to common shares |
$ |
27,560 |
$ |
27,030 |
$ |
28,996 |
$ |
31,493 |
$ |
15,390 |
|
Adjusted net income used in diluted EPS calculation |
$ |
27,560 |
$ |
27,030 |
$ |
28,996 |
$ |
31,493 |
$ |
15,390 |
|
Weighted-average common shares - basic |
108,769 |
108,807 |
108,793 |
98,968 |
87,771 |
||||||
Weighted-average common shares - diluted |
108,770 |
108,808 |
108,794 |
98,969 |
87,777 |
||||||
Basic net income per share |
$ |
0.25 |
$ |
0.25 |
$ |
0.27 |
$ |
0.32 |
$ |
0.18 |
|
Diluted net income per share |
$ |
0.25 |
$ |
0.25 |
$ |
0.27 |
$ |
0.32 |
$ |
0.18 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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ASSET QUALITY INFORMATION (Excluding Acquired Assets) |
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(Unaudited, except December 31, 2010 annual period which |
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is derived from the audited financial statements) |
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(Dollars in thousands, except ratios) |
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Quarterly Periods |
Annual Period |
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March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||||
Allowance for Credit Losses |
2011 |
2010 |
2010 |
2010 |
2010 |
2010 |
|||||||
Allowance for noncovered loan losses, beginning of period |
$ |
114,690 |
$ |
116,528 |
$ |
118,343 |
$ |
117,806 |
$ |
115,092 |
$ |
115,092 |
|
Provision for noncovered loan losses |
17,018 |
19,816 |
18,108 |
20,366 |
25,493 |
83,783 |
|||||||
Charge-offs |
22,812 |
27,553 |
25,817 |
24,967 |
26,195 |
104,532 |
|||||||
Recoveries |
5,794 |
5,899 |
5,894 |
5,138 |
3,416 |
20,347 |
|||||||
Net charge-offs |
17,018 |
21,654 |
19,923 |
19,829 |
22,779 |
84,185 |
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Allowance for noncovered loan losses, end of period |
$ |
114,690 |
$ |
114,690 |
$ |
116,528 |
$ |
118,343 |
$ |
117,806 |
$ |
114,690 |
|
Reserve for unfunded lending commitments, |
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beginning of period |
$ |
8,849 |
$ |
7,864 |
$ |
6,812 |
$ |
6,337 |
$ |
5,751 |
$ |
5,751 |
|
Provision for credit losses |
(1,647) |
985 |
1,052 |
475 |
586 |
3,098 |
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Reserve for unfunded lending commitments, |
|||||||||||||
end of period |
$ |
7,202 |
$ |
8,849 |
$ |
7,864 |
$ |
6,812 |
$ |
6,337 |
$ |
8,849 |
|
Allowance for Credit Losses |
$ |
121,892 |
$ |
123,539 |
$ |
124,392 |
$ |
125,155 |
$ |
124,143 |
$ |
123,539 |
|
Ratios (a) |
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Provision for loan losses as a % of average loans |
0.99% |
1.14% |
1.06% |
1.20% |
1.52% |
1.23% |
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Provision for credit losses as a % of average loans |
-0.10% |
0.06% |
0.06% |
0.03% |
0.03% |
0.05% |
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Net charge-offs as a % of average loans |
0.99% |
1.25% |
1.17% |
1.15% |
1.36% |
1.23% |
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Allowance for loan losses as a % of period-end loans |
1.64% |
1.65% |
1.72% |
1.75% |
1.72% |
1.65% |
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Allowance for credit losses as a % of period-end loans |
1.74% |
1.78% |
1.84% |
1.85% |
1.82% |
1.78% |
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Allowance for loan losses as a % of nonperforming loans |
138.67% |
109.56% |
111.00% |
119.62% |
105.14% |
109.56% |
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Allowance for credit losses as a % of nonperforming loans |
147.38% |
118.01% |
118.49% |
126.51% |
110.80% |
118.01% |
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Asset Quality (a) |
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Impaired loans: |
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Nonaccrual |
$ |
71,246 |
$ |
89,828 |
$ |
91,646 |
$ |
84,535 |
$ |
94,798 |
$ |
89,828 |
|
Other nonperforming loans: |
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Nonaccrual |
11,460 |
14,859 |
13,331 |
14,394 |
17,245 |
14,859 |
|||||||
Total nonperforming loans |
82,706 |
104,687 |
104,977 |
98,929 |
112,043 |
104,687 |
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Other real estate ("ORE") |
30,053 |
18,815 |
10,290 |
10,852 |
11,277 |
18,815 |
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Total nonperforming assets ("NPAs") |
$ |
112,759 |
$ |
123,502 |
$ |
115,267 |
$ |
109,781 |
$ |
123,320 |
$ |
123,502 |
|
NPAs as % of period-end loans + ORE |
1.61% |
1.78% |
1.70% |
1.62% |
1.80% |
1.78% |
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Past due 90 days or more & accruing interest |
$ |
5,652 |
$ |
22,017 |
$ |
36,895 |
$ |
36,932 |
$ |
21,099 |
$ |
22,017 |
|
(a) Excludes acquired loans and loss share receivable with a period end balance of $2.1 billion, $2.3 billion, $2.5 billion, $2.6 billion and $.6 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30,2010 and March 31, 2010, respectively, and ORE covered by an FDIC loss share with a period end balance of $58.7 million, $54.7 million, $53.5 million, $50.5 million and $22.8 million at March 31, 2011, December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively, which, as required by current accounting guidance, were recorded at fair value on the date of acquisition. |
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FIRSTMERIT CORPORATION |
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NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL |
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(Unaudited) |
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(Dollars in thousands) |
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2011 |
2010 |
2010 |
2010 |
2010 |
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QUARTERLY OTHER INCOME DETAIL |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
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Trust department income |
$ |
5,514 |
$ |
5,627 |
$ |
5,469 |
$ |
5,574 |
$ |
5,281 |
|
Service charges on deposits |
14,910 |
15,938 |
16,859 |
17,737 |
15,366 |
||||||
Credit card fees |
12,207 |
12,678 |
12,532 |
12,242 |
11,558 |
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ATM and other service fees |
2,917 |
2,910 |
2,996 |
2,844 |
2,509 |
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Bank owned life insurance income |
5,241 |
3,192 |
3,219 |
2,886 |
5,652 |
||||||
Investment services and insurance |
2,447 |
2,300 |
2,688 |
2,535 |
1,928 |
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Investment securities gains, net |
- |
146 |
58 |
651 |
- |
||||||
Loan sales and servicing income |
5,012 |
9,221 |
4,006 |
2,975 |
3,237 |
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Gain on George Washington acquisition |
- |
- |
- |
- |
1,041 |
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Other operating income |
4,508 |
2,299 |
7,308 |
5,765 |
3,328 |
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Total Other Income |
$ |
52,756 |
$ |
54,311 |
$ |
55,135 |
$ |
53,209 |
$ |
49,900 |
|
2011 |
2010 |
2010 |
2010 |
2010 |
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QUARTERLY OTHER EXPENSES DETAIL |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
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Salaries, wages, pension and employee benefits |
$ |
59,871 |
$ |
62,331 |
$ |
58,930 |
$ |
51,899 |
$ |
48,156 |
|
Net occupancy expense |
8,594 |
9,236 |
8,608 |
7,680 |
7,140 |
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Equipment expense |
6,836 |
7,549 |
7,330 |
6,735 |
6,050 |
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Taxes, other than federal income taxes |
1,960 |
2,021 |
1,680 |
2,236 |
1,938 |
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Stationery, supplies and postage |
2,705 |
3,183 |
2,865 |
2,696 |
2,693 |
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Bankcard, loan processing and other costs |
7,562 |
7,810 |
8,281 |
7,663 |
7,818 |
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Advertising |
2,384 |
3,094 |
2,488 |
2,407 |
1,592 |
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Professional services |
5,793 |
7,731 |
8,544 |
7,845 |
5,237 |
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Telephone |
1,486 |
1,579 |
1,561 |
1,267 |
1,133 |
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Amortization of intangibles |
543 |
1,006 |
1,006 |
669 |
234 |
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FDIC expense |
4,366 |
4,342 |
5,267 |
4,416 |
3,765 |
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Other operating expense |
12,345 |
12,570 |
14,110 |
10,210 |
8,257 |
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Total Other Expenses |
$ |
114,445 |
$ |
122,452 |
$ |
120,670 |
$ |
105,723 |
$ |
94,013 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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ALLOWANCE FOR LOAN LOSSES NONCOVERED - Net Charge-off Detail |
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(Unaudited) |
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(Dollars in thousands) |
Quarters ended |
Year ended |
|||||
March 31, |
December 31, |
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2011 |
2010 |
2010 |
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Allowance for noncovered loan losses - beginning of period |
$ |
114,690 |
$ |
115,092 |
$ |
115,092 |
|
Loans charged off: |
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Commercial |
7,924 |
8,895 |
39,766 |
||||
Mortgage |
1,664 |
1,646 |
5,156 |
||||
Installment |
8,091 |
8,805 |
34,054 |
||||
Home equity |
2,156 |
2,070 |
7,912 |
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Credit cards |
2,318 |
4,168 |
13,577 |
||||
Leases |
- |
20 |
896 |
||||
Overdrafts |
659 |
591 |
3,171 |
||||
Total |
22,812 |
26,195 |
104,532 |
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Recoveries: |
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Commercial |
608 |
372 |
1,952 |
||||
Mortgage |
89 |
25 |
263 |
||||
Installment |
3,688 |
2,017 |
13,047 |
||||
Home equity |
467 |
257 |
1,599 |
||||
Credit cards |
647 |
473 |
2,199 |
||||
Manufactured housing |
31 |
31 |
156 |
||||
Leases |
32 |
9 |
267 |
||||
Overdrafts |
232 |
232 |
864 |
||||
Total |
5,794 |
3,416 |
20,347 |
||||
Net charge-offs |
17,018 |
22,779 |
84,185 |
||||
Provision for noncovered loan losses |
17,018 |
25,493 |
83,783 |
||||
Allowance for noncovered loan losses - end of period |
$ |
114,690 |
$ |
117,806 |
$ |
114,690 |
|
Average loans (a) |
$ |
6,963,389 |
$ |
6,812,647 |
$ |
6,818,962 |
|
Ratio to average loans (a): |
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(Annualized) net noncovered charge-offs |
0.99% |
1.36% |
1.23% |
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Provision for noncovered loan losses |
0.99% |
1.52% |
1.23% |
||||
Noncovered Loans, period-end (excluding acquired loans) (a) |
$ |
6,989,973 |
$ |
6,836,451 |
$ |
6,937,142 |
|
Allowance for credit losses (a): |
$ |
121,892 |
$ |
124,143 |
$ |
123,539 |
|
As a multiple of (annualized) net noncovered charge-offs |
1.77 |
1.34 |
1.47 |
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Allowance for noncovered loan losses (a): |
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As a percent of period-end loans |
1.64% |
1.72% |
1.65% |
||||
As a multiple of (annualized) net noncovered charge-offs |
1.66 |
1.28 |
1.36 |
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(a) Excludes acquired loans and loss share receivable. |
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FirstMerit Corporation
Analyst: Thomas O'Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075
SOURCE FirstMerit Corporation
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