FirstMerit Reports Fourth Quarter 2009 EPS of $0.17 Per Share
Corporation announces:
- Increase in net interest margin to 3.64%
- 6.24% increase in average core deposits over prior quarter
- 21.98% increase in average core deposits over year ago quarter
- Increase in tangible common equity to 8.99%
- Increase in allowance for credit losses to 1.77% of period-end loans
- Increase in net interest margin to 3.64%
- 6.24% increase in average core deposits over prior quarter
- 21.98% increase in average core deposits over year ago quarter
- Increase in tangible common equity to 8.99%
- Increase in allowance for credit losses to 1.77% of period-end loans
AKRON, Ohio, Jan. 26 /PRNewswire-FirstCall/ -- FirstMerit Corporation (Nasdaq: FMER) reported fourth quarter 2009 net income of $14.5 million, or $0.17 per diluted share. This compares with $22.8 million, or $0.27 per diluted share, for the third quarter 2009 and $29.1 million, or $0.35 per diluted share, for the fourth quarter 2008. For the full year 2009, the Corporation reported net income of $82.2 million, or $0.90 per diluted share, compared with $119.5 million, or $1.46 per diluted share in 2008.
Returns on average common equity ("ROE") and average assets ("ROA") for the fourth quarter 2009 were 5.38% and 0.54%, respectively, compared with 8.69% and 0.85%, respectively, for the third quarter 2009 and 12.47% and 1.08% for the fourth quarter 2008. ROE and ROA for the year ended December 31, 2009 were 8.09% and 0.76%, respectively, compared with 12.76% and 1.13%, respectively, for the year ended December 31, 2008.
"We produced solid results in the fourth quarter and throughout all of 2009 despite persistent challenges in the economy. Our financial performance is due to our commitment to sound banking fundamentals and appropriate risk management," said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation.
"In the fourth quarter we grew our core deposits, further strengthened our tangible common equity and expanded our net interest margin. At year-end, FirstMerit maintained robust levels of liquidity, capital and reserves, setting us apart from our industry peers. FirstMerit is well-positioned for the future, both in our existing Ohio and Pennsylvania footprint and in our new Chicago market with our upcoming purchase of 24 First Bank branches. We remain on track to close this acquisition which includes $1.2 billion in deposits and a minimum of $315 million of performing loans in mid-February," Greig said.
On December 16, 2009, the FirstMerit Bank acquired $102.0 million of asset based lending loans ("ABL loans") from First Bank Business Capital, Inc., a wholly owned subsidiary of First Bank pursuant to separate Purchase and Assumption agreement with First Bank Business Capital, Inc. also dated November 11, 2009.
Average loans during the fourth quarter of 2009 decreased $108.0 million, or 1.53%, compared with the third quarter of 2009 and also decreased $417.3 million, or 5.66%, compared with the fourth quarter of 2008. Decreases against the respective periods were due to a reduction in both consumer and commercial demand for borrowing. In the fourth quarter of 2009, average commercial loans decreased $46.9 million, or 1.14%, and $214.3 million, or 5.01%, compared with the third quarter of 2009 and fourth quarter of 2008, respectively. Average consumer loans decreased $62.3 million, or 2.15%, and $194.8 million, or 6.78%, over the same periods.
Average deposits were $7.4 billion during the fourth quarter of 2009, up $13.1 million, or 0.18%, compared with the third quarter of 2009, and a decrease of $275.0 million, or 3.58%, compared with the fourth quarter of 2008. For the fourth quarter 2009, average core deposits (which are defined as checking accounts, savings accounts and money market savings products) increased $344.1 million, or 6.24%, compared with the third quarter 2009 and $1.1 billion, or 21.98%, compared with the fourth quarter 2008. Core deposits represented 79.16% of total average deposits, compared with 74.64% for the third quarter 2009 and 62.57% for the fourth quarter 2008. The Corporation increased average core deposits for the ninth consecutive quarter. Strategic retail and business marketing campaigns, primarily focused on new Reality Checking and Savings deposit products, drove the continued growth which began in the fourth quarter of 2007.
Average investments increased $20.8 million, or 0.76%, compared with the third quarter of 2009 and $248.3 million, or 9.93% compared with the fourth quarter of 2008. The Corporation's investment portfolio yield decreased in the fourth quarter of 2009, to 4.35%, compared with 4.51% in the third quarter of 2009, and decreased from 5.01% in the fourth quarter of 2008, reflective of the declining interest rate environment.
Net interest margin was 3.64% for the fourth quarter of 2009 compared with 3.61% for the third quarter of 2009 and 3.82% for the fourth quarter of 2008, marking a third consecutive quarter of net interest margin expansion. The Corporation's success both migrating existing and attracting new depository accounts into its Reality Checking and Savings products continued to reduce funding costs and positively impact the net interest margin.
Net interest income on a fully tax-equivalent ("FTE") basis was $89.2 million in the fourth quarter 2009 compared with $89.1 million in the third quarter of 2009 and $94.9 million in the fourth quarter of 2008. Declining average loan balances in the fourth quarter of 2009 compared with the third quarter of 2009 offset net interest margin expansion during the quarter.
Noninterest income net of securities transactions for the fourth quarter of 2009 was $50.8 million, an increase of $2.1 million, or 4.37%, from the third quarter of 2009 and a decrease of $0.5 million, or 0.09%, from the fourth quarter of 2008. In the fourth quarter of 2008 the Corporation recorded $5.8 million of other income from the sale of Class B Visa Inc. stock. Noninterest income net of securities transactions as a percentage of net revenue for the fourth quarter of 2009 was 36.28% compared with 35.32% for third quarter of 2009 and 35.07% for the fourth quarter of 2008. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.
Noninterest expense for the fourth quarter of 2009 was $94.9 million, an increase of $10.7 million, or 12.74%, from the third quarter of 2009 and an increase of $6.6 million, or 7.53%, from the fourth quarter of 2008. The fourth quarter of 2009 noninterest expenses included $2.5 million of professional services related to due diligence and acquisition expense, $1.3 million provision for unfunded lending commitments and $3.9 million related to the discontinuation of hedge accounting for a portfolio of interest rate swaps associated with fixed-rate commercial loans. For the fourth quarter of 2009, the efficiency ratio was 67.74%, compared with 61.05% for the third quarter of 2009 and 60.34% for the fourth quarter of 2008.
Net charge-offs totaled $31.2 million, or 1.79% of average loans, in the fourth quarter of 2009 compared with $18.8 million, or 1.05% of average loans, in the third quarter 2009 and $15.2 million, or 0.82% of average loans, in the fourth quarter of 2008.
Nonperforming assets totaled $101.0 million at December 31, 2009, an increase of $12.1 million, or 13.64%, compared with September 30, 2009. Nonperforming assets at December 31, 2009 represented 1.48% of period-end loans plus other real estate compared with 1.26% at September 30, 2009 and 0.77% million at December 31, 2008.
The allowance for loan losses totaled $115.1 million at December 31, 2009. At December 31, 2009, the allowance for loan losses was 1.68% of period-end loans compared with 1.66% at September 30, 2009 and 1.40% at December 31, 2008. The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments. For comparative purposes the allowance for credit losses was 1.77% at December 31, 2009 compared with 1.72% at September 30, 2009 and 1.49% at December 31, 2008. The allowance for credit losses to nonperforming loans was 131.82% at December 31, 2009, compared with 153.27% at September 30, 2009 and 211.38% at December 31, 2008.
The Corporation's total assets at December 31, 2009 were $10.5 billion, a decrease of $222.9 million, or 2.07%, compared with September 30, 2009 and a decrease of $561.5 million, or 5.06%, compared with December 31, 2008. Commercial loans decreased $286.2 million, or 6.58% and installment loans decreased $149.2 million or 9.48%, compared with December 31, 2008, contributing to the majority of asset declines over the prior year period.
Total deposits were $7.5 billion at December 31, 2009, an increase of $244.5 million, or 3.36%, from September 30, 2009 and an increase of $81.9 million, or 1.08%, from December 31, 2008. Core deposits totaled $6.2 billion at December 31, 2009, an increase of $576.5 million, or 10.33%, from September 30, 2009 and an increase of $1.34 billion, or 27.80%, from December 31, 2008.
Shareholders' equity was $1.08 billion at December 31, 2009, compared with $1.06 billion at September 30, 2009, and $937.8 million at December 31, 2008. The Corporation maintained a strong capital position as tangible common equity to assets was 8.99% at December 31, 2009, compared with 8.65% at September 30, 2009 and 7.27% at December 31, 2008. The common cash dividend per share paid in the fourth quarter 2009 was $0.16.
Fourth Quarter 2009 Conference Call
FirstMerit (Nasdaq: FMER) senior management will host an earnings conference call on January 26, 2010 at 2:00 p.m. (Eastern Time) to provide an overview of fourth quarter results and highlights. To participate in the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 49626728. A replay of the conference call will be available at approximately 5:00 p.m. (Eastern Time) on January 26, 2010 through February 2, 2010 by dialing (800) 642-1687, and entering the PIN: 49626728.
About FirstMerit
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $10.5 billion as of December 31, 2009 and 158 banking offices and 172 ATMs in 25 Ohio and Western Pennsylvania counties. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal wholly-owned subsidiaries include: FirstMerit Bank, N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd., and FirstMerit Community Development Corporation.
Subsequent Events The Company is required under generally accepted accounting principles to evaluate subsequent events through the filing of the December 31, 2009 consolidated financial statements on Form 10-K. As a result, the Corporation will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2009 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 Company, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, continued softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Company's business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Company's periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
FirstMerit Corporation |
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Analysts: Thomas O'Malley/Investor Relations Officer |
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Phone: 330.384.7109 |
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Media Contact: Robert Townsend/Media Relations Officer |
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Phone: 330.384.7075 |
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FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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Consolidated Financial Highlights |
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(Unaudited) |
Quarters |
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(Dollars in thousands) |
|||||||||||
2009 |
2009 |
2009 |
2009 |
2008 |
|||||||
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
|||||||
EARNINGS |
|||||||||||
Net interest income FTE (a) |
$ |
89,171 |
$ |
89,079 |
$ |
88,806 |
$ |
88,577 |
$ |
94,855 |
|
Provision for loan losses |
29,960 |
23,887 |
26,521 |
18,065 |
16,986 |
||||||
Other income |
52,701 |
51,567 |
50,845 |
55,188 |
52,795 |
||||||
Other expenses |
94,885 |
84,165 |
90,564 |
83,203 |
88,240 |
||||||
FTE adjustment (a) |
1,793 |
1,702 |
1,691 |
1,683 |
1,617 |
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Net income |
14,478 |
22,763 |
15,495 |
29,434 |
29,136 |
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Diluted EPS (b) |
0.17 |
0.27 |
0.13 |
0.33 |
0.35 |
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PERFORMANCE RATIOS |
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Return on average assets (ROA) |
0.54% |
0.85% |
0.57% |
1.07% |
1.08% |
||||||
Return on average common equity (ROE) |
5.38% |
8.69% |
6.27% |
12.39% |
12.47% |
||||||
Net interest margin FTE (a) |
3.64% |
3.61% |
3.56% |
3.53% |
3.82% |
||||||
Efficiency ratio |
67.74% |
61.05% |
65.34% |
57.81% |
60.34% |
||||||
Number of full-time equivalent employees |
2,495 |
2,522 |
2,540 |
2,562 |
2,575 |
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MARKET DATA |
|||||||||||
Book value/common share |
$ |
12.36 |
$ |
12.34 |
$ |
11.99 |
$ |
11.84 |
$ |
11.58 |
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Period-end common share mkt value |
20.14 |
19.03 |
17.00 |
18.20 |
20.59 |
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Market as a % of book |
163% |
154% |
142% |
154% |
178% |
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Cash dividends/common share |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.29 |
$ |
0.29 |
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Common stock dividend payout ratio |
94.12% |
59.26% |
84.21% |
80.56% |
82.86% |
||||||
Average basic common shares (b) |
86,149 |
85,872 |
84,123 |
82,514 |
82,193 |
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Average diluted common shares (b) |
86,157 |
85,880 |
84,131 |
82,523 |
82,202 |
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Period end common shares |
87,004 |
85,869 |
85,266 |
81,417 |
80,960 |
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Common shares repurchased |
35 |
13 |
61 |
45 |
19 |
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Common stock market capitalization |
$ |
1,752,261 |
$ |
1,634,087 |
$ |
1,449,522 |
$ |
1,481,789 |
$ |
1,666,966 |
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ASSET QUALITY |
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Gross charge-offs |
$ |
34,232 |
$ |
21,819 |
$ |
24,726 |
$ |
18,936 |
$ |
17,932 |
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Net charge-offs |
31,220 |
18,757 |
21,556 |
15,565 |
15,236 |
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Allowance for loan losses |
115,092 |
116,352 |
111,222 |
106,257 |
103,757 |
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Reserve for unfunded lending commitments |
5,751 |
4,470 |
6,054 |
6,019 |
6,588 |
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Nonperforming assets (NPAs) |
101,001 |
88,881 |
73,351 |
76,243 |
57,526 |
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Net charge-offs/average loans ratio * |
1.79% |
1.05% |
1.19% |
0.86% |
0.82% |
||||||
Allowance for loan losses/period-end loans * |
1.68% |
1.66% |
1.56% |
1.45% |
1.40% |
||||||
Allowance for credit losses/period-end loans * |
1.77% |
1.72% |
1.64% |
1.53% |
1.49% |
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NPAs/loans and other real estate * |
1.48% |
1.26% |
1.03% |
1.04% |
0.77% |
||||||
Allowance for loan losses/nonperforming loans |
125.55% |
147.60% |
175.17% |
151.35% |
198.76% |
||||||
Allowance for credit losses/nonperforming loans |
131.82% |
153.27% |
184.71% |
159.93% |
211.38% |
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CAPITAL & LIQUIDITY |
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Period-end tangible common equity to assets |
8.99% |
8.65% |
8.36% |
7.60% |
7.27% |
||||||
Average equity to assets |
10.11% |
9.77% |
9.37% |
9.66% |
8.66% |
||||||
Average equity to loans |
15.37% |
14.72% |
14.07% |
14.54% |
12.62% |
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Average loans to deposits |
93.94% |
95.57% |
95.17% |
96.56% |
96.01% |
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AVERAGE BALANCES |
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Assets |
$ |
10,559,231 |
$ |
10,629,359 |
$ |
10,884,228 |
$ |
11,115,042 |
$ |
10,731,029 |
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Deposits |
7,397,592 |
7,384,507 |
7,614,826 |
7,644,118 |
7,672,560 |
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Loans |
6,948,985 |
7,057,021 |
7,246,752 |
7,381,019 |
7,366,246 |
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Earning assets |
9,714,193 |
9,802,810 |
10,001,266 |
10,189,233 |
9,876,488 |
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Shareholders' equity |
1,068,013 |
1,038,824 |
1,019,628 |
1,073,276 |
929,788 |
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ENDING BALANCES |
|||||||||||
Assets |
$ |
10,538,487 |
$ |
10,761,355 |
$ |
10,696,962 |
$ |
10,972,176 |
$ |
11,100,026 |
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Deposits |
7,515,796 |
7,271,274 |
7,451,220 |
7,678,213 |
7,597,679 |
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Loans |
6,923,489 |
7,029,648 |
7,145,146 |
7,350,763 |
7,425,613 |
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Goodwill |
139,598 |
139,245 |
139,245 |
139,245 |
139,245 |
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Intangible assets |
1,158 |
1,143 |
1,229 |
1,316 |
1,403 |
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Earning assets |
9,685,155 |
9,793,244 |
9,869,183 |
10,108,403 |
10,209,602 |
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Total shareholders' equity |
1,075,050 |
1,059,209 |
1,022,647 |
1,084,269 |
937,843 |
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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) - Average outstanding shares and per share data restated to reflect the effect of stock dividends declared April 28, 2009 and August 20, 2009. * As required by current accounting guidance, the acquired ABL loans from First Bank Business Capital, Inc. were recorded at fair value with no carryover of the related allowances. The ratios of our allowance for loan and credit losses do not include these loans. The ABL loans were acquired on December 16, 2009. |
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FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(In thousands) |
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(Unaudited, except December 31, 2008, which is derived from the |
December 31, |
||||
audited financial statements) |
2009 |
2008 |
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ASSETS |
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Cash and due from banks |
$ |
161,033 |
$ |
178,406 |
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Investment securities |
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Held-to-maturity |
178,895 |
158,273 |
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Available-for-sale |
2,565,943 |
2,614,575 |
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Loans held for sale |
16,828 |
11,141 |
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Loans: |
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Commercial loans |
4,066,522 |
4,352,730 |
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Mortgage loans |
463,416 |
547,125 |
|||
Installment loans |
1,425,373 |
1,574,587 |
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Home equity loans |
753,112 |
733,832 |
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Credit card loans |
153,525 |
149,745 |
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Leases |
61,541 |
67,594 |
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Total loans |
6,923,489 |
7,425,613 |
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Less allowance for loan losses |
(115,092) |
(103,757) |
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Net loans |
6,808,397 |
7,321,856 |
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Premises and equipment, net |
125,205 |
133,184 |
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Goodwill |
139,598 |
139,245 |
|||
Intangible assets |
1,158 |
1,403 |
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Accrued interest receivable and other assets |
541,430 |
541,943 |
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Total assets |
$ |
10,538,487 |
$ |
11,100,026 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
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Deposits: |
|||||
Demand-non-interest bearing |
$ |
2,069,921 |
$ |
1,637,534 |
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Demand-interest bearing |
677,448 |
666,615 |
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Savings and money market accounts |
3,408,109 |
2,512,331 |
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Certificates and other time deposits |
1,360,318 |
2,781,199 |
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Total deposits |
7,515,796 |
7,597,679 |
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Securities sold under agreements to repurchase |
996,345 |
921,390 |
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Wholesale borrowings |
740,105 |
1,344,195 |
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Accrued taxes, expenses, and other liabilities |
211,191 |
298,919 |
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Total liabilities |
9,463,437 |
10,162,183 |
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Commitments and contingencies |
|||||
Shareholders' equity: |
|||||
Preferred stock, without par value: |
|||||
authorized and unissued 7,000,000 shares |
--- |
--- |
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Preferred stock, Series A, without par value: |
|||||
designated 800,000 shares; none outstanding |
--- |
--- |
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Convertible preferred stock, Series B, without par value: |
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designated 220,000 shares; none outstanding |
--- |
--- |
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Fixed-Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference; authorized and issued 125,000 shares |
--- |
--- |
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Common stock, without par value: authorized 300,000,000 shares; issued 93,633,871 and 92,026,350 at December 31, 2009 and 2008, respectively |
127,937 |
127,937 |
|||
Capital surplus |
88,573 |
94,802 |
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Accumulated other comprehensive loss |
(16,036) |
(54,080) |
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Retained earnings |
1,043,625 |
1,053,435 |
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Treasury stock, at cost, 6,629,995 and 11,066,108 shares at December 31, 2009 and 2008, respectively |
(169,049) |
(284,251) |
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Total shareholders' equity |
1,075,050 |
937,843 |
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Total liabilities and shareholders' equity |
$ |
10,538,487 |
$ |
11,100,026 |
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FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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AVERAGE CONSOLIDATED BALANCE SHEETS |
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Quarterly Periods |
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(Unaudited) |
|||||||||||
(Dollars in thousands) |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||
2009 |
2009 |
2009 |
2009 |
2008 |
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ASSETS |
|||||||||||
Cash and due from banks |
$ |
167,608 |
$ |
159,985 |
$ |
194,381 |
$ |
209,922 |
$ |
192,804 |
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Investment securities |
|||||||||||
Held-to-maturity |
171,437 |
160,084 |
156,877 |
161,217 |
160,283 |
||||||
Available-for-sale |
2,577,759 |
2,568,348 |
2,576,994 |
2,623,732 |
2,340,639 |
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Fed funds sold |
5 |
- |
- |
17 |
424 |
||||||
Loans held for sale |
16,007 |
17,357 |
20,643 |
23,248 |
8,896 |
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Loans: |
|||||||||||
Commercial loans |
4,058,851 |
4,105,778 |
4,263,114 |
4,337,108 |
4,273,123 |
||||||
Mortgage loans |
472,829 |
492,089 |
513,982 |
536,498 |
555,713 |
||||||
Installment loans |
1,449,091 |
1,492,019 |
1,512,929 |
1,558,374 |
1,596,053 |
||||||
Home equity loans |
756,478 |
758,353 |
749,097 |
736,956 |
722,466 |
||||||
Credit card loans |
151,233 |
149,460 |
146,589 |
146,355 |
150,133 |
||||||
Leases |
60,503 |
59,322 |
61,041 |
65,728 |
68,758 |
||||||
Total loans |
6,948,985 |
7,057,021 |
7,246,752 |
7,381,019 |
7,366,246 |
||||||
Less allowance for loan losses |
113,438 |
111,073 |
104,864 |
102,533 |
100,898 |
||||||
Net loans |
6,835,547 |
6,945,948 |
7,141,888 |
7,278,486 |
7,265,348 |
||||||
Total earning assets |
9,714,193 |
9,802,810 |
10,001,266 |
10,189,233 |
9,876,488 |
||||||
Premises and equipment, net |
126,073 |
127,096 |
129,433 |
132,156 |
130,511 |
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Accrued interest receivable and other assets |
664,795 |
650,541 |
664,012 |
686,264 |
632,124 |
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TOTAL ASSETS |
$ |
10,559,231 |
$ |
10,629,359 |
$ |
10,884,228 |
$ |
11,115,042 |
$ |
10,731,029 |
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LIABILITIES |
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Deposits: |
|||||||||||
Demand-non-interest bearing |
$ |
2,028,977 |
$ |
1,947,359 |
$ |
1,891,792 |
$ |
1,767,885 |
$ |
1,607,901 |
|
Demand-interest bearing |
651,381 |
647,712 |
671,235 |
655,279 |
658,208 |
||||||
Savings and money market accounts |
3,175,825 |
2,916,980 |
2,810,155 |
2,638,166 |
2,534,702 |
||||||
Certificates and other time deposits |
1,541,409 |
1,872,456 |
2,241,644 |
2,582,788 |
2,871,749 |
||||||
Total deposits |
7,397,592 |
7,384,507 |
7,614,826 |
7,644,118 |
7,672,560 |
||||||
Securities sold under agreements to repurchase |
1,076,199 |
1,087,875 |
945,178 |
941,112 |
1,168,438 |
||||||
Wholesale borrowings |
762,023 |
883,377 |
1,019,786 |
1,151,777 |
766,358 |
||||||
Total funds |
9,235,814 |
9,355,759 |
9,579,790 |
9,737,007 |
9,607,356 |
||||||
Accrued taxes, expenses and other liabilities |
255,404 |
234,776 |
284,810 |
304,759 |
193,885 |
||||||
Total liabilities |
9,491,218 |
9,590,535 |
9,864,600 |
10,041,766 |
9,801,241 |
||||||
SHAREHOLDERS' EQUITY |
|||||||||||
Preferred stock |
- |
- |
27,850 |
109,807 |
- |
||||||
Common stock |
127,937 |
127,937 |
127,937 |
127,937 |
127,937 |
||||||
Common stock warrant |
- |
- |
2,820 |
4,175 |
- |
||||||
Capital surplus |
74,213 |
55,732 |
63,457 |
86,872 |
93,761 |
||||||
Accumulated other comprehensive loss |
(9,266) |
(26,793) |
(35,569) |
(49,477) |
(62,018) |
||||||
Retained earnings |
1,047,097 |
1,050,359 |
1,056,739 |
1,069,948 |
1,053,992 |
||||||
Treasury stock |
(171,968) |
(168,411) |
(223,606) |
(275,986) |
(283,884) |
||||||
Total shareholders' equity |
1,068,013 |
1,038,824 |
1,019,628 |
1,073,276 |
929,788 |
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
10,559,231 |
$ |
10,629,359 |
$ |
10,884,228 |
$ |
11,115,042 |
$ |
10,731,029 |
|
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||||||
Fully-tax Equivalent Interest Rates and Interest Differential |
|||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
Three months ended |
Three months ended |
|||||||||||
(Dollars in thousands) |
December 31, 2009 |
December 31, 2008 |
|||||||||||
Average |
Average |
Average |
Average |
||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ |
167,608 |
$ |
192,804 |
|||||||||
Investment securities and federal funds sold: |
|||||||||||||
U.S. Treasury securities and U.S. Government agency obligations (taxable) |
2,224,704 |
23,348 |
4.16% |
1,971,257 |
23,984 |
4.84% |
|||||||
Obligations of states and political subdivisions (tax exempt) |
331,098 |
5,021 |
6.02% |
316,220 |
4,804 |
6.04% |
|||||||
Other securities and federal funds sold |
193,399 |
1,799 |
3.69% |
213,869 |
2,720 |
5.06% |
|||||||
Total investment securities and federal |
|||||||||||||
funds sold |
2,749,201 |
30,168 |
4.35% |
2,501,346 |
31,508 |
5.01% |
|||||||
Loans held for sale |
16,007 |
204 |
5.06% |
8,896 |
100 |
4.47% |
|||||||
Loans |
6,948,985 |
81,762 |
4.67% |
7,366,246 |
105,390 |
5.69% |
|||||||
Total earning assets |
9,714,193 |
112,134 |
4.58% |
9,876,488 |
136,998 |
5.52% |
|||||||
Allowance for loan losses |
(113,438) |
(100,898) |
|||||||||||
Other assets |
790,868 |
762,635 |
|||||||||||
Total assets |
$ |
10,559,231 |
$ |
10,731,029 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits: |
|||||||||||||
Demand - non-interest bearing |
$ |
2,028,977 |
-- |
-- |
$ |
1,607,901 |
-- |
-- |
|||||
Demand - interest bearing |
651,381 |
149 |
0.09% |
658,208 |
370 |
0.22% |
|||||||
Savings and money market accounts |
3,175,825 |
6,880 |
0.86% |
2,534,702 |
6,764 |
1.06% |
|||||||
Certificates and other time deposits |
1,541,409 |
8,413 |
2.17% |
2,871,749 |
23,816 |
3.30% |
|||||||
Total deposits |
7,397,592 |
15,442 |
0.83% |
7,672,560 |
30,950 |
1.60% |
|||||||
Securities sold under agreements to repurchase |
1,076,199 |
1,268 |
0.47% |
1,168,438 |
3,752 |
1.28% |
|||||||
Wholesale borrowings |
762,023 |
6,253 |
3.26% |
766,358 |
7,441 |
3.86% |
|||||||
Total interest bearing liabilities |
7,206,837 |
22,963 |
1.26% |
7,999,455 |
42,143 |
2.10% |
|||||||
Other liabilities |
255,404 |
193,885 |
|||||||||||
Shareholders' equity |
1,068,013 |
929,788 |
|||||||||||
Total liabilities and shareholders' equity |
$ |
10,559,231 |
$ |
10,731,029 |
|||||||||
Net interest margin |
$ |
9,714,193 |
89,171 |
3.64% |
$ |
9,876,488 |
94,855 |
3.82% |
|||||
Interest rate spread |
3.32% |
3.42% |
|||||||||||
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. |
|||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited) |
|||||||||||||
Fully-tax Equivalent Interest Rates and Interest Differential |
|||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
Twelve months ended |
Twelve months ended |
|||||||||||
(Dollars in thousands) |
December 31, 2009 |
December 31, 2008 |
|||||||||||
Average |
Average |
Average |
Average |
||||||||||
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
||||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ |
183,215 |
$ |
177,089 |
|||||||||
Investment securities and federal funds sold: |
|||||||||||||
U.S. Treasury securities and U.S. Government agency obligations (taxable) |
2,222,771 |
97,871 |
4.40% |
1,985,026 |
94,260 |
4.75% |
|||||||
Obligations of states and political subdivisions (tax exempt) |
321,919 |
19,718 |
6.13% |
294,724 |
17,910 |
6.08% |
|||||||
Other securities and federal funds sold |
204,272 |
8,394 |
4.11% |
216,794 |
11,326 |
5.22% |
|||||||
Total investment securities and federal |
2,748,962 |
125,983 |
4.58% |
2,496,544 |
123,496 |
4.95% |
|||||||
funds sold |
|||||||||||||
Loans held for sale |
19,289 |
1,032 |
5.35% |
29,419 |
1,602 |
5.45% |
|||||||
Loans |
7,156,983 |
339,381 |
4.74% |
7,203,946 |
434,704 |
6.03% |
|||||||
Total earning assets |
9,925,234 |
466,396 |
4.70% |
9,729,909 |
559,802 |
5.75% |
|||||||
Allowance for loan losses |
(108,017) |
(96,714) |
|||||||||||
Other assets |
793,062 |
739,158 |
|||||||||||
Total assets |
$ |
10,793,494 |
$ |
10,549,442 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits: |
|||||||||||||
Demand - non-interest bearing |
$ |
1,910,171 |
-- |
-- |
$ |
1,530,021 |
-- |
-- |
|||||
Demand - interest bearing |
656,367 |
600 |
0.09% |
687,160 |
2,514 |
0.37% |
|||||||
Savings and money market accounts |
2,886,842 |
23,472 |
0.81% |
2,398,778 |
29,839 |
1.24% |
|||||||
Certificates and other time deposits |
2,056,208 |
54,610 |
2.66% |
2,801,623 |
105,853 |
3.78% |
|||||||
Total deposits |
7,509,588 |
78,682 |
1.05% |
7,417,582 |
138,206 |
1.86% |
|||||||
Securities sold under agreements to repurchase |
1,013,167 |
4,764 |
0.47% |
1,343,441 |
31,857 |
2.37% |
|||||||
Wholesale borrowings |
952,979 |
27,317 |
2.87% |
663,109 |
27,574 |
4.16% |
|||||||
Total interest bearing liabilities |
7,565,563 |
110,763 |
1.46% |
7,894,111 |
197,637 |
2.50% |
|||||||
Other liabilities |
267,835 |
189,222 |
|||||||||||
Shareholders' equity |
1,049,925 |
936,088 |
|||||||||||
Total liabilities and shareholders' equity |
$ |
10,793,494 |
$ |
10,549,442 |
|||||||||
Net interest margin |
$ |
9,925,234 |
355,633 |
3.58% |
$ |
9,729,909 |
362,165 |
3.72% |
|||||
Interest rate spread |
3.24% |
3.25% |
|||||||||||
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 |
Twelve months ended |
|||||||
(In thousands except per share data) |
December 31, |
December 31, |
|||||||
2009 |
2008 |
2009 |
2008 |
||||||
Interest income: |
|||||||||
Interest and fees on loans, including held for sale |
$ |
81,907 |
$ |
105,463 |
$ |
340,236 |
$ |
436,194 |
|
Interest and dividends on investment securities and federal funds sold |
28,434 |
29,918 |
119,291 |
117,632 |
|||||
Total interest income |
110,341 |
135,381 |
459,527 |
553,826 |
|||||
Interest expense: |
|||||||||
Interest on deposits: |
|||||||||
Demand-interest bearing |
149 |
370 |
600 |
2,514 |
|||||
Savings and money market accounts |
6,880 |
6,764 |
23,472 |
29,839 |
|||||
Certificates and other time deposits |
8,413 |
23,816 |
54,610 |
105,853 |
|||||
Interest on securities sold under agreements to repurchase |
1,268 |
3,752 |
4,764 |
31,857 |
|||||
Interest on wholesale borrowings |
6,253 |
7,441 |
27,317 |
27,574 |
|||||
Total interest expense |
22,963 |
42,143 |
110,763 |
197,637 |
|||||
Net interest income |
87,378 |
93,238 |
348,764 |
356,189 |
|||||
Provision for loan losses |
29,960 |
16,986 |
98,433 |
58,603 |
|||||
Net interest income after provision for loan losses |
57,418 |
76,252 |
250,331 |
297,586 |
|||||
Other income: |
|||||||||
Trust department income |
5,374 |
5,291 |
20,683 |
22,127 |
|||||
Service charges on deposits |
16,568 |
15,450 |
63,366 |
62,862 |
|||||
Credit card fees |
12,049 |
11,667 |
46,512 |
47,054 |
|||||
ATM and other service fees |
2,730 |
2,613 |
11,110 |
10,894 |
|||||
Bank owned life insurance income |
4,524 |
2,451 |
13,740 |
12,008 |
|||||
Investment services and insurance |
2,322 |
1,949 |
10,008 |
10,503 |
|||||
Investment securities gains, net |
1,934 |
1,555 |
6,037 |
2,126 |
|||||
Loan sales and servicing income |
2,947 |
2,294 |
12,954 |
6,940 |
|||||
Gain on Visa Inc. redemption |
- |
5,768 |
- |
13,666 |
|||||
Gain on post medical retirement curtailment |
- |
- |
9,543 |
- |
|||||
Other operating income |
4,253 |
3,757 |
16,348 |
13,256 |
|||||
Total other income |
52,701 |
52,795 |
210,301 |
201,436 |
|||||
Other expenses: |
|||||||||
Salaries, wages, pension and employee benefits |
45,748 |
46,991 |
175,906 |
179,463 |
|||||
Net occupancy expense |
5,631 |
5,950 |
24,099 |
24,649 |
|||||
Equipment expense |
6,445 |
6,139 |
24,301 |
24,137 |
|||||
Stationery, supplies and postage |
2,414 |
2,458 |
8,907 |
9,372 |
|||||
Bankcard, loan processing and other costs |
8,215 |
7,359 |
31,467 |
29,456 |
|||||
Professional services |
6,098 |
3,261 |
16,414 |
11,695 |
|||||
Amortization of intangibles |
87 |
87 |
347 |
573 |
|||||
Other operating expense |
20,247 |
15,995 |
71,376 |
51,288 |
|||||
Total other expenses |
94,885 |
88,240 |
352,817 |
330,633 |
|||||
Income before federal income tax expense |
15,234 |
40,807 |
107,815 |
168,389 |
|||||
Federal income tax expense |
756 |
11,671 |
25,645 |
48,904 |
|||||
Net income |
$ |
14,478 |
$ |
29,136 |
$ |
82,170 |
$ |
119,485 |
|
Other comprehensive income, net of taxes |
|||||||||
Unrealized securities' holding gain (loss), net of taxes |
$ |
(9,880) |
$ |
30,296 |
$ |
38,994 |
$ |
10,808 |
|
Unrealized hedging gain (loss), net of taxes |
- |
209 |
(94) |
1,342 |
|||||
Minimum pension liability adjustment, net of taxes |
3,899 |
(24,384) |
3,068 |
(21,763) |
|||||
Less: reclassification adjustment for securities' gain realized in net |
|||||||||
income, net of taxes |
2,618 |
1,011 |
3,924 |
1,382 |
|||||
Total other comprehensive gain (loss), net of taxes |
(8,599) |
5,110 |
38,044 |
(10,995) |
|||||
Comprehensive income |
$ |
5,879 |
$ |
34,246 |
$ |
120,214 |
$ |
108,490 |
|
Net income applicable to common shares |
$ |
14,478 |
$ |
29,136 |
$ |
75,799 |
$ |
119,485 |
|
Net income used in diluted EPS calculation |
$ |
14,478 |
$ |
29,136 |
$ |
75,799 |
$ |
119,490 |
|
Weighted average number of common shares outstanding - basic * |
86,149 |
82,193 |
84,615 |
82,060 |
|||||
Weighted average number of common shares outstanding - diluted * |
86,157 |
82,202 |
84,623 |
82,097 |
|||||
Basic earnings per share * |
$ |
0.17 |
$ |
0.35 |
$ |
0.90 |
$ |
1.46 |
|
Diluted earnings per share * |
$ |
0.17 |
$ |
0.35 |
$ |
0.90 |
$ |
1.46 |
|
Stock dividend per share |
- |
- |
$ |
0.73% |
- |
||||
Dividend per share |
$ |
0.16 |
$ |
0.29 |
$ |
0.77 |
$ |
1.16 |
|
* Average outstanding shares and per share data restated to reflect the effect of stock dividends declared April 28, 2009 and August 20, 2009. |
|||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME---LINKED QUARTERS |
|||||||||||
(Unaudited) |
Quarterly Results |
||||||||||
(Dollars in thousands, except share data) |
2009 |
2009 |
2009 |
2009 |
2008 |
||||||
4th Q |
3rd Q |
2nd Q |
1st Q |
4th Q |
|||||||
Interest and fees on loans, including held for sale |
$ |
81,907 |
$ |
84,283 |
$ |
86,247 |
$ |
87,799 |
$ |
105,463 |
|
Interest and dividends - securities and federal funds sold |
28,434 |
29,388 |
29,912 |
31,557 |
29,918 |
||||||
Total interest income |
110,341 |
113,671 |
116,159 |
119,356 |
135,381 |
||||||
Interest on deposits: |
|||||||||||
Demand-interest bearing |
149 |
137 |
159 |
155 |
370 |
||||||
Savings and money market accounts |
6,880 |
5,763 |
5,452 |
5,377 |
6,764 |
||||||
Certificates and other time deposits |
8,413 |
12,284 |
15,325 |
18,588 |
23,816 |
||||||
Securities sold under agreements to repurchase |
1,268 |
1,286 |
1,211 |
999 |
3,752 |
||||||
Wholesale borrowings |
6,253 |
6,824 |
6,897 |
7,343 |
7,441 |
||||||
Total interest expense |
22,963 |
26,294 |
29,044 |
32,462 |
42,143 |
||||||
Net interest income |
87,378 |
87,377 |
87,115 |
86,894 |
93,238 |
||||||
Provision for loan losses |
29,960 |
23,887 |
26,521 |
18,065 |
16,986 |
||||||
Net interest income after provision for loan losses |
57,418 |
63,490 |
60,594 |
68,829 |
76,252 |
||||||
Other income: |
|||||||||||
Trust department income |
5,374 |
5,081 |
5,438 |
4,790 |
5,291 |
||||||
Service charges on deposits |
16,568 |
16,782 |
15,853 |
14,163 |
15,450 |
||||||
Credit card fees |
12,049 |
11,711 |
11,668 |
11,084 |
11,667 |
||||||
ATM and other service fees |
2,730 |
2,935 |
2,839 |
2,606 |
2,613 |
||||||
Bank owned life insurance income |
4,524 |
3,216 |
2,985 |
3,015 |
2,451 |
||||||
Investment services and insurance |
2,322 |
2,498 |
2,270 |
2,918 |
1,949 |
||||||
Investment securities gains, net |
1,934 |
2,925 |
1,178 |
- |
1,555 |
||||||
Loan sales and servicing income |
2,947 |
3,881 |
3,791 |
2,335 |
2,294 |
||||||
Gain on Visa Inc. |
- |
- |
- |
- |
5,768 |
||||||
Gain on post medical retirement curtailment |
- |
- |
- |
9,543 |
- |
||||||
Other operating income |
4,253 |
2,538 |
4,823 |
4,734 |
3,757 |
||||||
Total other income |
52,701 |
51,567 |
50,845 |
55,188 |
52,795 |
||||||
Other expenses: |
|||||||||||
Salaries, wages, pension and employee benefits |
45,748 |
43,351 |
44,125 |
42,682 |
46,991 |
||||||
Net occupancy expense |
5,631 |
5,739 |
5,858 |
6,871 |
5,950 |
||||||
Equipment expense |
6,445 |
5,847 |
6,212 |
5,797 |
6,139 |
||||||
Stationery, supplies and postage |
2,414 |
2,167 |
2,051 |
2,275 |
2,458 |
||||||
Bankcard, loan processing and other costs |
8,215 |
7,548 |
7,862 |
7,842 |
7,359 |
||||||
Professional services |
6,098 |
3,980 |
2,856 |
3,480 |
3,261 |
||||||
Amortization of intangibles |
87 |
86 |
87 |
87 |
87 |
||||||
Other operating expense |
20,247 |
15,447 |
21,513 |
14,169 |
15,995 |
||||||
Total other expenses |
94,885 |
84,165 |
90,564 |
83,203 |
88,240 |
||||||
Income before income tax expense |
15,234 |
30,892 |
20,875 |
40,814 |
40,807 |
||||||
Federal income taxes |
756 |
8,129 |
5,380 |
11,380 |
11,671 |
||||||
Net income |
$ |
14,478 |
$ |
22,763 |
$ |
15,495 |
$ |
29,434 |
$ |
29,136 |
|
Other comprehensive income (loss), net of taxes |
(8,599) |
25,994 |
5,203 |
15,446 |
5,110 |
||||||
Comprehensive income |
$ |
5,879 |
$ |
48,757 |
$ |
20,698 |
$ |
44,880 |
$ |
34,246 |
|
Net income applicable to common shares |
$ |
14,478 |
$ |
22,763 |
$ |
10,995 |
$ |
27,563 |
$ |
29,136 |
|
Adjusted net income used in diluted EPS calculation |
$ |
14,478 |
$ |
22,763 |
$ |
10,995 |
$ |
27,563 |
$ |
29,136 |
|
Weighted-average common shares - basic * |
86,149 |
85,872 |
84,123 |
82,514 |
82,193 |
||||||
Weighted-average common shares - diluted * |
86,157 |
85,880 |
84,131 |
82,523 |
82,202 |
||||||
Basic net income per share * |
$ |
0.17 |
$ |
0.27 |
$ |
0.13 |
$ |
0.33 |
$ |
0.35 |
|
Diluted net income per share * |
$ |
0.17 |
$ |
0.27 |
$ |
0.13 |
$ |
0.33 |
$ |
0.35 |
|
* Average outstanding shares and per share data restated to reflect the effect of stock dividends declared April 28, 2009 and August 20, 2009. |
|||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||
ASSET QUALITY INFORMATION |
|||||||||||||
(Unaudited, except December 31, 2008 annual period which is derived from the audited financial statements) |
|||||||||||||
(Dollars in thousands, except ratios) |
|||||||||||||
Quarterly Periods |
Annual Period |
||||||||||||
Dec 31 |
Sept 30 |
Jun 30 |
Mar 31 |
Dec 31 |
Dec 31 |
||||||||
Allowance for Credit Losses |
2009 |
2009 |
2009 |
2009 |
2008 |
2008 |
|||||||
Allowance for loan losses, beginning of period |
$ |
116,352 |
$ |
111,222 |
$ |
106,257 |
$ |
103,757 |
$ |
102,007 |
$ |
94,205 |
|
Provision for loan losses |
29,960 |
23,887 |
26,521 |
18,065 |
16,986 |
58,603 |
|||||||
Charge-offs |
34,232 |
21,819 |
24,726 |
18,936 |
17,932 |
62,388 |
|||||||
Recoveries |
3,012 |
3,062 |
3,170 |
3,371 |
2,696 |
13,337 |
|||||||
Net charge-offs |
31,220 |
18,757 |
21,556 |
15,565 |
15,236 |
49,051 |
|||||||
Allowance for loan losses, end of period |
$ |
115,092 |
$ |
116,352 |
$ |
111,222 |
$ |
106,257 |
$ |
103,757 |
$ |
103,757 |
|
Reserve for unfunded lending commitments, |
|||||||||||||
beginning of period |
$ |
4,470 |
$ |
6,054 |
$ |
6,019 |
$ |
6,588 |
$ |
6,493 |
$ |
7,394 |
|
Provision for credit losses |
1,281 |
(1,584) |
35 |
(569) |
95 |
(806) |
|||||||
Reserve for unfunded lending commitments, |
|||||||||||||
end of period |
$ |
5,751 |
$ |
4,470 |
$ |
6,054 |
$ |
6,019 |
$ |
6,588 |
$ |
6,588 |
|
Allowance for Credit Losses |
$ |
120,843 |
$ |
120,822 |
$ |
117,276 |
$ |
112,276 |
$ |
110,345 |
$ |
110,345 |
|
Ratios * |
|||||||||||||
Provision for loan losses as a % of average loans |
1.71% |
1.34% |
1.47% |
0.99% |
0.92% |
0.81% |
|||||||
Provision for credit losses as a % of average loans |
0.07% |
(0.09)% |
0.00% |
(0.03)% |
0.01% |
(0.01)% |
|||||||
Net charge-offs as a % of average loans |
1.79% |
1.05% |
1.19% |
0.86% |
0.82% |
0.68% |
|||||||
Allowance for loan losses as a % of period-end loans |
1.68% |
1.66% |
1.56% |
1.45% |
1.40% |
1.40% |
|||||||
Allowance for credit losses as a % of period-end loans |
1.77% |
1.72% |
1.64% |
1.53% |
1.49% |
1.49% |
|||||||
Allowance for loan losses as a % of nonperforming loans |
125.55% |
147.60% |
175.17% |
151.35% |
198.76% |
198.76% |
|||||||
Allowance for credit losses as a % of nonperforming loans |
131.82% |
153.27% |
184.71% |
159.93% |
211.38% |
211.38% |
|||||||
Asset Quality |
|||||||||||||
Impaired loans: |
|||||||||||||
Nonaccrual |
$ |
74,033 |
$ |
63,357 |
$ |
48,563 |
$ |
54,070 |
$ |
40,195 |
$ |
40,195 |
|
Other nonperforming loans: |
|||||||||||||
Nonaccrual |
17,639 |
15,474 |
14,929 |
16,134 |
12,007 |
12,007 |
|||||||
Total nonperforming loans |
91,672 |
78,831 |
63,492 |
70,204 |
52,202 |
52,202 |
|||||||
Other real estate ("ORE") |
9,329 |
10,050 |
9,859 |
6,039 |
5,324 |
5,324 |
|||||||
Total nonperforming assets ("NPAs") |
$ |
101,001 |
$ |
88,881 |
$ |
73,351 |
$ |
76,243 |
$ |
57,526 |
$ |
57,526 |
|
NPAs as % of period-end loans + ORE * |
1.48% |
1.26% |
1.03% |
1.04% |
0.77% |
0.77% |
|||||||
Past due 90 days or more & accruing interest |
$ |
35,025 |
$ |
27,764 |
$ |
22,129 |
$ |
18,602 |
$ |
23,928 |
$ |
23,928 |
|
* As required by current accounting guidance, $88.1 million of acquired ABL loans from First Bank Business Capital, Inc. were recorded at fair value with no carryover of the related allowances. The ratios of our allowance for loan and credit losses do not include these loans. The ABL loans were acquired on December 16, 2009. |
|||||||||||||
FIRSTMERIT CORPORATION |
|||||||||||
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL |
|||||||||||
(Unaudited) |
|||||||||||
(Dollars in thousands) |
|||||||||||
2009 |
2009 |
2009 |
2009 |
2008 |
|||||||
QUARTERLY OTHER INCOME DETAIL |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
||||||
Trust department income |
$ |
5,374 |
$ |
5,081 |
$ |
5,438 |
$ |
4,790 |
$ |
5,291 |
|
Service charges on deposits |
16,568 |
16,782 |
15,853 |
14,163 |
15,450 |
||||||
Credit card fees |
12,049 |
11,711 |
11,668 |
11,084 |
11,667 |
||||||
ATM and other service fees |
2,730 |
2,935 |
2,839 |
2,606 |
2,613 |
||||||
Bank owned life insurance income |
4,524 |
3,216 |
2,985 |
3,015 |
2,451 |
||||||
Investment services and insurance |
2,322 |
2,498 |
2,270 |
2,918 |
1,949 |
||||||
Investment securities gains, net |
1,934 |
2,925 |
1,178 |
- |
1,555 |
||||||
Loan sales and servicing income |
2,947 |
3,881 |
3,791 |
2,335 |
2,294 |
||||||
Gain on Visa Inc. |
- |
- |
- |
- |
5,768 |
||||||
Gain on post medical retirement curtailment |
- |
- |
- |
9,543 |
- |
||||||
Other operating income |
4,253 |
2,538 |
4,823 |
4,734 |
3,757 |
||||||
Total Other Income |
$ |
52,701 |
$ |
51,567 |
$ |
50,845 |
$ |
55,188 |
$ |
52,795 |
|
2009 |
2009 |
2009 |
2009 |
2008 |
|||||||
QUARTERLY OTHER EXPENSES DETAIL |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
||||||
Salaries, wages, pension and employee benefits |
$ |
45,748 |
$ |
43,351 |
$ |
44,125 |
$ |
42,682 |
$ |
46,991 |
|
Net occupancy expense |
5,631 |
5,739 |
5,858 |
6,871 |
5,950 |
||||||
Equipment expense |
6,445 |
5,847 |
6,212 |
5,797 |
6,139 |
||||||
Taxes, other than federal income taxes |
1,593 |
1,646 |
1,631 |
1,626 |
1,463 |
||||||
Stationery, supplies and postage |
2,414 |
2,167 |
2,051 |
2,275 |
2,458 |
||||||
Bankcard, loan processing and other costs |
8,215 |
7,548 |
7,862 |
7,842 |
7,359 |
||||||
Advertising |
1,510 |
1,635 |
1,887 |
1,971 |
1,863 |
||||||
Professional services |
6,098 |
3,980 |
2,856 |
3,480 |
3,261 |
||||||
Telephone |
1,039 |
1,010 |
997 |
1,014 |
978 |
||||||
Amortization of intangibles |
87 |
86 |
87 |
87 |
87 |
||||||
Hedge termination |
3,877 |
- |
- |
- |
- |
||||||
Other operating expense |
12,317 |
11,156 |
16,998 |
9,558 |
11,691 |
||||||
Total Other Expenses |
$ |
94,974 |
$ |
84,165 |
$ |
90,564 |
$ |
83,203 |
$ |
88,240 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||
ALLOWANCE FOR LOAN LOSSES - Net Charge-off Detail |
|||||||||
(Unaudited) |
|||||||||
(Dollars in thousands) |
Quarters ended |
Year ended |
|||||||
December 31, |
December 31, |
||||||||
2009 |
2008 |
2009 |
2008 |
||||||
Allowance for loan losses - beginning of period |
$ |
116,352 |
$ |
102,007 |
$ |
103,757 |
$ |
94,205 |
|
Loans charged off: |
|||||||||
Commercial |
17,793 |
5,591 |
39,685 |
16,318 |
|||||
Mortgage |
1,267 |
1,025 |
4,960 |
4,696 |
|||||
Installment |
8,562 |
7,276 |
31,622 |
24,740 |
|||||
Home equity |
2,257 |
707 |
7,200 |
4,153 |
|||||
Credit cards |
3,511 |
2,506 |
13,558 |
9,821 |
|||||
Leases |
94 |
6 |
97 |
26 |
|||||
Overdrafts |
748 |
821 |
2,591 |
2,634 |
|||||
Total |
34,232 |
17,932 |
99,713 |
62,388 |
|||||
Recoveries: |
|||||||||
Commercial |
369 |
402 |
890 |
2,388 |
|||||
Mortgage |
10 |
35 |
270 |
76 |
|||||
Installment |
1,802 |
1,473 |
8,329 |
7,071 |
|||||
Home equity |
199 |
125 |
494 |
851 |
|||||
Credit cards |
421 |
376 |
1,710 |
1,831 |
|||||
Manufactured housing |
49 |
77 |
171 |
247 |
|||||
Leases |
4 |
7 |
57 |
104 |
|||||
Overdrafts |
158 |
201 |
694 |
769 |
|||||
Total |
3,012 |
2,696 |
12,615 |
13,337 |
|||||
Net charge-offs |
31,220 |
15,236 |
87,098 |
49,051 |
|||||
Provision for loan losses |
29,960 |
16,986 |
98,433 |
58,603 |
|||||
Allowance for loan losses - end of period |
$ |
115,092 |
$ |
103,757 |
$ |
115,092 |
$ |
103,757 |
|
Average loans outstanding |
$ |
6,948,985 |
$ |
7,366,246 |
$ |
7,156,983 |
$ |
7,203,946 |
|
Ratio to average loans: * |
|||||||||
(Annualized) net charge-offs |
1.79% |
0.82% |
1.22% |
0.68% |
|||||
Provision for loan losses |
1.71% |
0.92% |
1.38% |
0.81% |
|||||
Loans outstanding - period-end |
$ |
6,923,489 |
$ |
7,425,613 |
$ |
6,923,489 |
$ |
7,425,613 |
|
Allowance for credit losses: |
$ |
120,843 |
$ |
110,345 |
$ |
120,843 |
$ |
110,345 |
|
As a multiple of (annualized) net charge-offs |
0.98 |
1.82 |
1.39 |
2.25 |
|||||
Allowance for loan losses: * |
|||||||||
As a percent of period-end loans outstanding |
1.68% |
1.40% |
1.68% |
1.40% |
|||||
As a multiple of (annualized) net charge-offs |
0.93 |
1.71 |
1.32 |
2.12 |
|||||
* As required by current accounting guidance, $88.1 million of acquired ABL loans from First Bank Business Capital, Inc. were recorded at fair value with no carryover of the related allowances. The ratios of our allowance for loan and credit losses do not include these loans. The ABL loans were acquired on December 16, 2009. |
|||||||||
SOURCE FirstMerit Corporation
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