FirstMerit Reports Second Quarter 2012 EPS of $0.28 Per Share
AKRON, Ohio, July 24, 2012 /PRNewswire/ --
Quarterly Highlights include:
- Consistent profits: 53rd consecutive quarter of profitability
- Robust organic growth: Average commercial loan growth of $131.3 million, or 2.55%, from prior quarter; average core deposit growth of $159.2 million, or 1.63%, from prior quarter
- Superior credit quality: Nonperforming assets as a percent of period end loans declined 10.14% from 0.87% to 0.76%; net charge-offs to average loans, excluding acquired loans, decreased to 0.45% from 0.63% in the prior quarter.
- Solid balance sheet: Strong tangible common equity ratio at 8.01%
FirstMerit Corporation (Nasdaq: FMER) reported second quarter 2012 net income of $30.6 million, or $0.28 per diluted share. This compares with $30.3 million, or $0.28 per diluted share, for the first quarter 2012 and $29.8 million, or $0.27 per diluted share, for the second quarter 2011.
Returns on average common equity ("ROE") and average assets ("ROA") for the second quarter 2012 were 7.69% and 0.84%, respectively, compared with 7.72% and 0.84%, respectively, for the first quarter 2012 and 7.78% and 0.82% for the second quarter 2011.
"Our solid performance in the second quarter reflects the Corporation's strength in the face of a persistently lagging economy, a low interest rate environment and additional costs of complying with federal legislation affecting the banking industry," said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation. "Despite these challenges, we have continued to grow organically, focus on our operating efficiencies and lower our funding costs. These accomplishments position us to increase our value to customers and shareholders."
Net interest margin was 3.77% for the second quarter of 2012 compared with 3.78% for the first quarter of 2012 and 3.77% for the second quarter of 2011. The net interest margin compressed one basis point compared with first quarter of 2012 with earning asset yields declining three basis points offset by two basis points of improved funding costs. The decline in funding costs in the quarter resulted from the Corporation's continued execution on its strategy of core deposit growth through new customer acquisition and transitioning certificates of deposit customers into lower cost deposits. The net interest margin was unchanged from the second quarter of 2011.
Average loans, not including covered loans, during the second quarter of 2012 increased $159.7 million, or 2.05%, compared with the first quarter of 2012 and increased $668.1 million, or 9.19%, compared with the second quarter of 2011. Average commercial loans, excluding covered loans, increased $131.3 million, or 2.55%, compared with the prior quarter, and increased $608.8 million, or 13.05%, compared with the year ago quarter. While commercial loans were the primary driver of overall average loan growth, the Corporation has experienced increased average consumer loans for four consecutive quarters.
Average deposits were $11.6 billion during the second quarter of 2012, an increase of $83.3 million, or 0.73%, compared with the first quarter of 2012, and an increase of $90.5 million, or 0.79%, compared with the second quarter of 2011. During the second quarter 2012, average core deposits, which exclude time deposits, increased $159.2 million, or 1.63%, compared with the first quarter 2012 and increased $835.4 million, or 9.18%, compared with the second quarter 2011. Average time deposits decreased $75.9 million, or 4.48%, and decreased $744.8 million, or 31.52%, respectively, over prior and year-ago quarters. The Corporation continues to emphasize growth in lower cost core deposit products and decrease its reliance on certificates of deposit accounts to support balance sheet growth. For the second quarter of 2012, average core deposits accounted for 85.99% of total average deposits, compared with 85.23% for the first quarter of 2012 and 79.39% for the second quarter of 2011.
Average investments increased $7.1 million, or 0.19%, compared with the first quarter of 2012 and increased $75.2 million, or 2.07% compared with the second quarter of 2011.
Net interest income on a fully tax-equivalent ("FTE") basis was $121.7 million in the second quarter 2012 compared with $121.4 million in the first quarter of 2012 and $119.7 million in the second quarter of 2011.
During the quarter ended June 30, 2012, management announced its implementation plan to enhance the operating efficiency and profitability of the Corporation (the "Efficiency Initiative") and as a result recognized $8.9 million in one-time charges primarily consisting of employee separation costs and professional services fees. The Efficiency Initiative is a long-term plan to optimize service channels and lower the overall cost structure. It includes the elimination of assistant branch manager positions and closing of eight full service branches. All branch closures are expected to occur in the quarter ended September 30, 2012.
Noninterest income, excluding gains on securities transactions of $0.5 million, for the second quarter of 2012 was $54.8 million, an increase of $3.3 million, or 6.39%, from the first quarter of 2012 and an increase of $4.2 million, or 8.20%, from the second quarter of 2011. Loan sales and servicing income decreased $1.6 million from the first quarter of 2012, which included a change in the valuation of mortgage servicing rights of $2.6 million, and increased $2.2 million from the second quarter of 2011. Other operating income in the second quarter of 2012 increased $3.5 million compared with the prior quarter and increased $4.4 million compared with the prior year quarter. Other operating income in the second quarter of 2012 included $2.6 million in gains on covered loans paid in full.
Other income, net of $0.5 million in securities gains, as a percentage of net revenue for the second quarter of 2012 was 31.03% compared with 29.77% for first quarter of 2012 and 29.71% for the second quarter of 2011. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.
Noninterest expense for the second quarter of 2012 was $119.1 million, an increase of $5.3 million, or 4.67%, from the first quarter of 2012 and an increase of $9.0 million, or 8.18%, from the second quarter of 2011. Excluding the $8.9 million in one-time charges from implementation of the Efficiency Initiative in the second quarter of 2012, the Corporation has displayed significant progress in reducing operating expenses in response to the challenging industry environment. Of the total one-time charges, $3.3 million was related to employee separation costs and $5.2 million was related to professional services fees.
During the second quarter of 2012, the Corporation reported an efficiency ratio of 67.21%, compared with 65.52% for the first quarter of 2012 and 64.30% for the second quarter of 2011. Excluding the $8.9 million in one-time charges related to the Efficiency Initiative, the reported efficiency ratio for the second quarter of 2012 would be 62.15%.
Net charge-offs, excluding covered loans, totaled $8.8 million, or 0.45% of average loans, excluding acquired loans, in the second quarter of 2012, compared with $12.0 million, or 0.63% of average loans, in the first quarter 2012 and $15.6 million, or 0.89% of average loans, in the second quarter of 2011.
Nonperforming assets totaled $61.1 million at June 30, 2012, a decrease of $6.9 million, or 10.14%, compared with March 31, 2012 and a decrease of $38.8 million, or 38.83%, compared with June 30, 2011. Nonperforming assets at June 30, 2012 represented 0.76% of period-end loans plus other real estate compared with 0.87% at March 31, 2012 and 1.38% at June 30, 2011.
The allowance for noncovered loan losses totaled $103.8 million at June 30, 2012. At June 30, 2012, the allowance for noncovered loan losses was 1.29% of period-end loans compared with 1.34% at March 31, 2012 and 1.51% at June 30, 2011. 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 1.36% of period end loans, excluding acquired loans, at June 30, 2012, compared with 1.41% at March 31, 2012 and 1.59% at June 30, 2011. The allowance for credit losses to nonperforming loans was 234.57% at June 30, 2012, compared with 204.98% at March 31, 2012 and 158.30% at June 30, 2011.
The Corporation's total assets at June 30, 2012 were $14.6 billion, a decrease of $49.5 million, or 0.34%, compared with March 31, 2012 and an increase of $273.8 million, or 1.91%, compared with June 30, 2011.
Total deposits were $11.6 billion at June 30, 2012, a decrease of $32.3 million, or 0.28%, from March 31, 2012 and an increase of $274.9 million, or 2.42%, from June 30, 2011. Core deposits totaled $10.0 billion at June 30, 2012, an increase of $39.0 million, or 0.39% from March 31, 2012 and an increase of $945.2 million, or 10.40%, from June 30, 2011.
Shareholders' equity was $1.6 billion at June 30, 2012, compared with $1.6 billion at March 31, 2012, and $1.6 billion at June 30, 2011. The Corporation maintained a strong capital position as tangible common equity to assets was 8.01% at June 30, 2012, compared with 7.86% at March 31, 2012 and 7.79% at June 30, 2011. The common cash dividend per share paid in the second quarter 2012 was $0.16.
Second Quarter 2012 Conference Call
FirstMerit (Nasdaq: FMER) senior management will host an earnings conference call today at 11:00 a.m. (Eastern Time) to provide an overview of second 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: 99505861. A replay of the conference call will be available at approximately 2:00 p.m. (Eastern Time) on July 24, 2012 through August 7, 2012 by dialing (855) 859-2056, and entering the PIN: 99505861. The Corporation will provide a slide presentation, which management will speak to during the conference call. A copy of the presentation will be available prior to the earnings conference call at https://www.firstmerit.com/personal/investors.aspx; click on the Presentations link to access the slide presentation.
About FirstMerit Corporation
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $14.6 billion as of June 30, 2012 and 205 banking offices and 213 ATM locations in Ohio, Western Pennsylvania, and Chicago, Illinois areas. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal affiliates 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 its consolidated financial statements for the quarter ended June 30, 2012 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 June 30, 2012 and will adjust amounts preliminarily reported, if necessary.
Forward-Looking Statements
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, success of the Corporation's efforts to reduce operating expenses, 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
Analysts: Thomas O'Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||
| Consolidated Financial Highlights |
|||||
| (Unaudited) |
|||||
| (Dollars in thousands) |
|||||
| Quarters |
|||||
| 2012 |
2012 |
2011 |
2011 |
2011 |
|
| 2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
|
| EARNINGS |
|||||
| Net interest income FTE (a) |
$ 121,689 |
$ 121,428 |
$ 123,598 |
$ 121,788 |
$ 119,735 |
| Provision for noncovered loan losses |
8,766 |
8,129 |
12,275 |
14,604 |
10,138 |
| Provision for covered loan losses |
3,430 |
5,932 |
2,773 |
4,768 |
7,481 |
| Other income |
55,301 |
51,726 |
59,737 |
60,772 |
51,491 |
| Other expenses |
119,077 |
113,768 |
123,874 |
115,957 |
110,068 |
| FTE adjustment (a) |
2,766 |
2,641 |
2,632 |
2,396 |
2,292 |
| Net income |
30,585 |
30,344 |
30,496 |
31,737 |
29,763 |
| Diluted EPS |
0.28 |
0.28 |
0.28 |
0.29 |
0.27 |
| PERFORMANCE RATIOS |
|||||
| Return on average assets (ROA) |
0.84% |
0.84% |
0.83% |
0.86% |
0.82% |
| Return on average common equity (ROE) |
7.69% |
7.72% |
7.70% |
8.02% |
7.78% |
| Net interest margin FTE (a) |
3.77% |
3.78% |
3.85% |
3.75% |
3.77% |
| Efficiency ratio |
67.21% |
65.52% |
69.46% |
64.78% |
64.30% |
| Number of full-time equivalent employees |
2,789 |
2,997 |
3,018 |
3,016 |
3,028 |
| MARKET DATA |
|||||
| Book value/common share |
$ 14.60 |
$ 14.51 |
$ 14.33 |
$ 14.38 |
$ 14.19 |
| Period-end common share mkt value |
16.51 |
16.86 |
15.13 |
11.36 |
16.51 |
| Market as a % of book |
113% |
116% |
106% |
79% |
116% |
| Cash dividends/common share |
$ 0.16 |
$ 0.16 |
$ 0.16 |
$ 0.16 |
$ 0.16 |
| Common stock dividend payout ratio |
57.14% |
57.14% |
57.14% |
55.17% |
59.26% |
| Average basic common shares |
109,562 |
109,211 |
109,249 |
109,245 |
109,138 |
| Average diluted common shares |
109,562 |
109,211 |
109,249 |
109,246 |
109,139 |
| Period end common shares |
109,641 |
109,187 |
109,251 |
109,247 |
109,241 |
| Common shares repurchased |
111 |
69 |
7 |
10 |
45 |
| Common stock market capitalization |
$ 1,810,173 |
$ 1,840,893 |
$ 1,652,968 |
$ 1,241,046 |
$ 1,803,569 |
| ASSET QUALITY (excluding acquired loans) |
|||||
| Gross charge-offs |
$ 15,014 |
$ 17,417 |
$ 18,984 |
$ 20,014 |
$ 20,958 |
| Net charge-offs |
8,766 |
11,979 |
13,763 |
14,604 |
15,641 |
| Allowance for noncovered loan losses |
103,849 |
103,849 |
107,699 |
109,187 |
109,187 |
| Reserve for unfunded lending commitments |
5,666 |
5,410 |
6,373 |
6,360 |
5,799 |
| Nonperforming assets (NPAs) (b) |
61,080 |
67,971 |
81,094 |
90,375 |
99,846 |
| Net charge-offs/average loans ratio (b) |
0.45% |
0.63% |
0.73% |
0.79% |
0.89% |
| Allowance for noncovered loan losses/period-end loans (b) |
1.29% |
1.34% |
1.41% |
1.46% |
1.51% |
| Allowance for credit losses/period-end loans (b) |
1.36% |
1.41% |
1.49% |
1.55% |
1.59% |
| NPAs/loans and other real estate (b) |
0.76% |
0.87% |
1.06% |
1.21% |
1.38% |
| Allowance for noncovered loan losses/nonperforming loans |
222.44% |
194.83% |
166.64% |
160.09% |
150.31% |
| Allowance for credit losses/nonperforming loans |
234.57% |
204.98% |
176.50% |
169.42% |
158.30% |
| CAPITAL & LIQUIDITY |
|||||
| Period-end tangible common equity to assets |
8.01% |
7.86% |
7.86% |
7.75% |
7.79% |
| Average equity to assets |
10.98% |
10.91% |
10.75% |
10.75% |
10.59% |
| Average equity to total loans (c) |
17.57% |
17.50% |
17.40% |
17.55% |
17.36% |
| Average total loans to deposits (c) |
78.78% |
78.74% |
79.12% |
78.18% |
77.05% |
| AVERAGE BALANCES |
|||||
| Assets |
$14,558,514 |
$14,496,937 |
$14,623,441 |
$14,610,628 |
$14,481,208 |
| Deposits |
11,555,283 |
11,472,021 |
11,416,546 |
11,447,682 |
11,464,738 |
| Loans, excluding acquired loans (c) |
7,857,840 |
7,677,963 |
7,520,400 |
7,298,446 |
7,080,109 |
| Acquired loans, including covered loans (c) |
1,245,246 |
1,355,086 |
1,512,123 |
1,651,559 |
1,753,943 |
| Earning assets |
12,986,988 |
12,935,184 |
12,747,868 |
12,878,105 |
12,724,269 |
| Shareholders' equity |
1,599,187 |
1,581,009 |
1,572,061 |
1,570,411 |
1,533,855 |
| ENDING BALANCES |
|||||
| Assets |
$14,621,344 |
$14,670,818 |
$14,441,702 |
$14,688,278 |
$14,347,557 |
| Deposits |
11,615,841 |
11,648,165 |
11,431,609 |
11,396,121 |
11,340,939 |
| Loans, excluding acquired loans (c) |
8,031,998 |
7,764,058 |
7,635,776 |
7,453,613 |
7,216,015 |
| Acquired loans, including covered loans (c) |
1,187,203 |
1,306,165 |
1,404,644 |
1,604,706 |
1,707,887 |
| Goodwill |
460,044 |
460,044 |
460,044 |
460,044 |
460,044 |
| Intangible assets |
7,274 |
7,756 |
8,239 |
8,782 |
9,325 |
| Earning assets |
13,212,071 |
13,318,202 |
13,011,267 |
12,885,242 |
12,958,324 |
| Total shareholders' equity |
1,600,815 |
1,584,105 |
1,565,953 |
1,570,654 |
1,550,387 |
| 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) - Acquired loans and other real estate from First Bank, George Washington Savings Bank and Midwest Bank & Trust Company are excluded from the ratio of our allowance for loan and credit losses and NPAs. |
|||||
| (c)- Excludes loss share receivable of $152.6 million, $171.1 million, $205.7 million, $220.5 million and $239.4 million as of June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011 and June 30, 2011, respectively. |
|||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||
| Consolidated Balance Sheets |
|||||||||
| (Dollars in thousands ) |
|||||||||
| (Unaudited, except December 31, 2011, which is derived from the audited financial statements) |
|||||||||
| June 30, |
December 31, |
June 30, |
|||||||
| 2012 |
2011 |
2011 |
|||||||
| ASSETS |
|||||||||
| Cash and due from banks |
$ 226,026 |
$ 219,256 |
$ 191,965 |
||||||
| Interest-bearing deposits in banks |
111,909 |
158,063 |
32,113 |
||||||
| Total cash and cash equivalents |
337,935 |
377,319 |
224,078 |
||||||
| Investment securities |
|||||||||
| Held-to-maturity |
352,221 |
82,764 |
80,857 |
||||||
| Available-for-sale |
3,216,365 |
3,353,553 |
3,498,272 |
||||||
| Other investments |
140,742 |
140,726 |
160,805 |
||||||
| Loans held for sale |
19,018 |
30,077 |
22,951 |
||||||
| Noncovered loans: |
|||||||||
| Commercial |
5,404,971 |
5,107,747 |
4,808,305 |
||||||
| Residential mortgage |
438,147 |
413,664 |
400,661 |
||||||
| Installment |
1,262,877 |
1,263,665 |
1,259,072 |
||||||
| Home equity |
766,840 |
743,982 |
738,719 |
||||||
| Credit cards |
142,586 |
146,356 |
143,828 |
||||||
| Leases |
84,507 |
73,530 |
57,634 |
||||||
| Total noncovered loans |
8,099,928 |
7,748,944 |
7,408,219 |
||||||
| Allowance for noncovered loan losses |
(103,849) |
(107,699) |
(109,187) |
||||||
| Net noncovered loans |
7,996,079 |
7,641,245 |
7,299,032 |
||||||
| Covered loans (includes loss share receivable of $152.6 million, $205.7 million and $239.4 million at June 30, 2012, December 31, 2011 and June 30, 2011, respectively) |
1,271,888 |
1,497,140 |
1,755,107 |
||||||
| Allowance for covered loan losses |
(42,606) |
(36,417) |
(33,360) |
||||||
| Net covered loans |
1,229,282 |
1,460,723 |
1,721,747 |
||||||
| Net loans |
9,225,361 |
9,101,968 |
9,020,779 |
||||||
| Premises and equipment, net |
184,851 |
192,949 |
191,674 |
||||||
| Goodwill |
460,044 |
460,044 |
460,044 |
||||||
| Intangible assets |
7,274 |
8,239 |
9,325 |
||||||
| Covered other real estate (includes loss share receivable of $0.3 million, $1.3 million and $5.1 million at June 30, 2012, December 31, 2011 and June 30, 2011, respectively) |
54,549 |
54,505 |
58,502 |
||||||
| Accrued interest receivable and other assets |
622,984 |
639,558 |
620,270 |
||||||
| Total assets |
$ 14,621,344 |
$ 14,441,702 |
$ 14,347,557 |
||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||
| Deposits: |
|||||||||
| Noninterest-bearing |
$ 3,227,819 |
$ 3,030,225 |
$ 2,944,117 |
||||||
| Interest-bearing |
1,080,790 |
1,062,896 |
842,280 |
||||||
| Savings and money market accounts |
5,728,598 |
5,595,409 |
5,305,584 |
||||||
| Certificates and other time deposits |
1,578,634 |
1,743,079 |
2,248,958 |
||||||
| Total deposits |
11,615,841 |
11,431,609 |
11,340,939 |
||||||
| Federal funds purchased and securities sold under agreements to repurchase |
896,910 |
866,265 |
809,570 |
||||||
| Wholesale borrowings |
178,135 |
203,462 |
325,133 |
||||||
| Accrued taxes, expenses, and other liabilities |
329,643 |
374,413 |
321,528 |
||||||
| Total liabilities |
13,020,529 |
12,875,749 |
12,797,170 |
||||||
| 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: June 30, 2012, December 31, 2011 and June 30, 2011 - 115,121,731 shares |
127,937 |
127,937 |
127,937 |
||||||
| Capital surplus |
472,138 |
479,882 |
477,449 |
||||||
| Accumulated other comprehensive loss |
(18,425) |
(23,887) |
(9,145) |
||||||
| Retained earnings |
1,157,422 |
1,131,203 |
1,103,608 |
||||||
| Treasury stock, at cost: June 30, 2012 -5,481,058 shares; December 31, 2011 - 5,870,923 shares; June 30, 2011 - 5,880,692 shares |
(138,257) |
(149,182) |
(149,462) |
||||||
| Total shareholders' equity |
1,600,815 |
1,565,953 |
1,550,387 |
||||||
| Total liabilities and shareholders' equity |
$ 14,621,344 |
$ 14,441,702 |
$ 14,347,557 |
||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||
| Average Consolidated Balance Sheets |
|||||||||
| Quarterly Periods |
|||||||||
| (Unaudited) |
June 30, |
March 31, |
December 30, |
September 30, |
June 30, |
||||
| (Dollars in thousands) |
2012 |
2012 |
2011 |
2011 |
2011 |
||||
| ASSETS |
|||||||||
| Cash and due from banks |
$ 410,533 |
$ 378,736 |
$ 621,899 |
$ 517,150 |
$ 588,487 |
||||
| Investment securities: |
|||||||||
| Held-to-maturity |
127,769 |
90,664 |
89,166 |
85,664 |
79,012 |
||||
| Available-for-sale |
3,429,411 |
3,459,439 |
3,231,195 |
3,429,631 |
3,382,943 |
||||
| Other investments |
140,744 |
140,719 |
160,147 |
160,799 |
160,811 |
||||
| Loans held for sale |
22,731 |
26,483 |
24,215 |
24,524 |
18,512 |
||||
| Noncovered loans: |
|||||||||
| Commercial |
5,274,352 |
5,143,087 |
5,049,479 |
4,876,034 |
4,665,550 |
||||
| Residential mortgage |
431,752 |
421,648 |
405,329 |
399,228 |
398,702 |
||||
| Installment |
1,263,013 |
1,261,122 |
1,267,952 |
1,264,868 |
1,270,589 |
||||
| Home equity |
750,859 |
738,154 |
744,326 |
741,497 |
736,117 |
||||
| Credit card |
142,311 |
143,794 |
145,560 |
144,796 |
143,528 |
||||
| Leases |
78,862 |
73,644 |
61,267 |
56,909 |
58,607 |
||||
| Total noncovered loans |
7,941,149 |
7,781,449 |
7,673,913 |
7,483,332 |
7,273,093 |
||||
| Covered loans and loss share receivable |
1,325,184 |
1,436,430 |
1,569,232 |
1,694,155 |
1,809,898 |
||||
| Total loans |
9,266,333 |
9,217,879 |
9,243,145 |
9,177,487 |
9,082,991 |
||||
| Less: allowance for loan losses |
143,565 |
142,628 |
141,360 |
138,441 |
143,721 |
||||
| Net loans |
9,122,768 |
9,075,251 |
9,101,785 |
9,039,046 |
8,939,270 |
||||
| Total earning assets |
12,986,988 |
12,935,184 |
12,747,868 |
12,878,105 |
12,724,269 |
||||
| Premises and equipment, net |
187,181 |
190,669 |
193,219 |
192,218 |
192,584 |
||||
| Accrued interest receivable and other assets |
1,117,377 |
1,134,976 |
1,201,815 |
1,161,596 |
1,119,589 |
||||
| TOTAL ASSETS |
$ 14,558,514 |
$ 14,496,937 |
$ 14,623,441 |
$ 14,610,628 |
$ 14,481,208 |
||||
| LIABILITIES |
|||||||||
| Deposits: |
|||||||||
| Noninterest-bearing |
$ 3,144,183 |
$ 3,036,590 |
$ 3,013,543 |
$ 2,988,521 |
$ 2,998,090 |
||||
| Interest-bearing |
1,060,771 |
1,066,132 |
991,456 |
913,252 |
824,125 |
||||
| Savings and money market accounts |
5,732,007 |
5,675,052 |
5,569,213 |
5,446,351 |
5,279,353 |
||||
| Certificates and other time deposits |
1,618,322 |
1,694,247 |
1,842,334 |
2,099,558 |
2,363,170 |
||||
| Total deposits |
11,555,283 |
11,472,021 |
11,416,546 |
11,447,682 |
11,464,738 |
||||
| Federal funds purchased and securities sold under agreements to repurchase |
920,352 |
887,715 |
999,639 |
969,020 |
884,244 |
||||
| Wholesale borrowings |
177,987 |
184,659 |
225,116 |
320,691 |
325,057 |
||||
| Total funds |
12,653,622 |
12,544,395 |
12,641,301 |
12,737,393 |
12,674,039 |
||||
| Accrued taxes, expenses and other liabilities |
305,705 |
371,533 |
410,079 |
302,824 |
273,314 |
||||
| Total liabilities |
12,959,327 |
12,915,928 |
13,051,380 |
13,040,217 |
12,947,353 |
||||
| SHAREHOLDERS' EQUITY |
|||||||||
| Common stock |
127,937 |
127,937 |
127,937 |
127,937 |
127,937 |
||||
| Capital surplus |
473,650 |
481,856 |
479,257 |
477,864 |
479,078 |
||||
| Accumulated other comprehensive loss |
(18,363) |
(19,862) |
(15,198) |
(2,211) |
(16,402) |
||||
| Retained earnings |
1,156,324 |
1,140,953 |
1,129,392 |
1,116,207 |
1,095,270 |
||||
| Treasury stock |
(140,361) |
(149,875) |
(149,327) |
(149,386) |
(152,028) |
||||
| Total shareholders' equity |
1,599,187 |
1,581,009 |
1,572,061 |
1,570,411 |
1,533,855 |
||||
| TOTAL LIABILITIES AND SHAREHOLDER'S EQUITY |
$ 14,558,514 |
$ 14,496,937 |
$ 14,623,441 |
$ 14,610,628 |
$ 14,481,208 |
||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||||
| Average Consolidated Balance Sheets |
|||||||||||||||||
| Fully Tax-equivalent Interest Rates and Interest Differential |
|||||||||||||||||
| Three months ended |
Three months ended |
Three months ended |
|||||||||||||||
| (Unaudited) |
June 30, 2012 |
March 31, 2012 |
June 30, 2011 |
||||||||||||||
| (Dollars in thousands) |
Average |
Average |
Average |
Average |
Average |
Average |
|||||||||||
| Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|||||||||
| ASSETS |
|||||||||||||||||
| Cash and due from banks |
$ 410,533 |
$ 378,736 |
$ 588,487 |
||||||||||||||
| Investment securities and federal funds sold: |
|||||||||||||||||
| U.S. Treasury securities and U.S. Government agency obligations (taxable) |
2,823,055 |
19,028 |
2.71% |
2,882,045 |
19,679 |
2.75% |
2,958,993 |
19,942 |
2.70% |
||||||||
| Obligations of states and political subdivisions (tax exempt) |
482,475 |
6,254 |
5.21% |
436,804 |
5,864 |
5.40% |
368,790 |
5,155 |
5.61% |
||||||||
| Other securities and federal funds sold |
392,394 |
2,756 |
2.82% |
371,973 |
2,739 |
2.96% |
294,983 |
2,235 |
3.04% |
||||||||
| Total investment securities and federal funds sold |
3,697,924 |
28,038 |
3.05% |
3,690,822 |
28,282 |
3.08% |
3,622,766 |
27,332 |
3.03% |
||||||||
| Loans held for sale |
22,731 |
238 |
4.21% |
26,483 |
283 |
4.30% |
18,512 |
221 |
4.79% |
||||||||
| Loans, including loss share receivable |
9,266,333 |
103,245 |
4.48% |
9,217,879 |
103,156 |
4.50% |
9,082,991 |
107,956 |
4.77% |
||||||||
| Total earning assets |
12,986,988 |
131,521 |
4.07% |
12,935,184 |
131,721 |
4.10% |
12,724,269 |
135,509 |
4.27% |
||||||||
| Allowance for loan losses |
(143,565) |
(142,628) |
(143,721) |
||||||||||||||
| Other assets |
1,304,558 |
1,325,645 |
1,312,173 |
||||||||||||||
| Total assets |
$ 14,558,514 |
$ 14,496,937 |
$ 14,481,208 |
||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||||||
| Deposits: |
|||||||||||||||||
| Noninterest-bearing |
$ 3,144,183 |
— |
—% |
$ 3,036,590 |
— |
—% |
$ 2,998,090 |
— |
—% |
||||||||
| Interest-bearing |
1,060,771 |
236 |
0.09% |
1,066,132 |
247 |
0.09% |
824,125 |
177 |
0.09% |
||||||||
| Savings and money market accounts |
5,732,007 |
5,033 |
0.35% |
5,675,052 |
5,103 |
0.36% |
5,279,353 |
7,398 |
0.56% |
||||||||
| Certificates and other time deposits |
1,618,322 |
3,169 |
0.79% |
1,694,247 |
3,524 |
0.84% |
2,363,170 |
5,606 |
0.95% |
||||||||
| Total deposits |
11,555,283 |
8,438 |
0.29% |
11,472,021 |
8,874 |
0.31% |
11,464,738 |
13,181 |
0.46% |
||||||||
| Securities sold under agreements to repurchase |
920,352 |
276 |
0.12% |
887,715 |
268 |
0.12% |
884,244 |
940 |
0.43% |
||||||||
| Wholesale borrowings |
177,987 |
1,118 |
2.53% |
184,659 |
1,151 |
2.51% |
325,057 |
1,653 |
2.04% |
||||||||
| Total interest bearing liabilities |
9,509,439 |
9,832 |
0.42% |
9,507,805 |
10,293 |
0.44% |
9,675,949 |
15,774 |
0.65% |
||||||||
| Other liabilities |
305,705 |
371,533 |
273,314 |
||||||||||||||
| Shareholders' equity |
1,599,187 |
1,581,009 |
1,533,855 |
||||||||||||||
| Total liabilities and shareholders' equity |
$ 14,558,514 |
$ 14,496,937 |
$ 14,481,208 |
||||||||||||||
| Net yield on earning assets |
$ 12,986,988 |
121,689 |
3.77% |
$ 12,935,184 |
121,428 |
3.78% |
$ 12,724,269 |
119,735 |
3.77% |
||||||||
| Interest rate spread |
3.66% |
3.66% |
3.62% |
||||||||||||||
| 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 |
|||||||||||
| Average Consolidated Balance Sheets |
|||||||||||
| Fully Tax-equivalent Interest Rates and Interest Differential |
|||||||||||
| Six Months Ended |
Six Months Ended |
||||||||||
| June 30, 2012 |
June 30, 2011 |
||||||||||
| (Unaudited) |
Average |
Average |
Average |
Average |
|||||||
| (Dollars in thousands) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|||||
| ASSETS |
|||||||||||
| Cash and due from banks |
$ 394,634 |
$ 554,732 |
|||||||||
| Investment securities and federal funds sold: |
|||||||||||
| U.S. Treasury securities and U.S. Government agency obligations (taxable) |
2,852,550 |
38,707 |
2.73% |
2,871,510 |
39,309 |
2.76% |
|||||
| Obligations of states and political subdivisions (tax exempt) |
459,640 |
12,118 |
5.30% |
363,182 |
10,436 |
5.79% |
|||||
| Other securities and federal funds sold |
382,184 |
5,494 |
2.89% |
287,111 |
4,352 |
3.06% |
|||||
| Total investment securities and federal funds sold |
3,694,374 |
56,319 |
3.07% |
3,521,803 |
54,097 |
3.10% |
|||||
| Loans held for sale |
24,607 |
522 |
4.27% |
20,532 |
494 |
4.85% |
|||||
| Loans, including loss share receivable |
9,242,105 |
206,400 |
4.49% |
9,100,729 |
222,520 |
4.93% |
|||||
| Total earning assets |
12,961,086 |
263,241 |
4.08% |
12,643,064 |
277,111 |
4.42% |
|||||
| Allowance for loan losses |
(143,096) |
(138,920) |
|||||||||
| Other assets |
1,314,888 |
1,316,576 |
|||||||||
| Total assets |
$ 14,527,512 |
$ 14,375,452 |
|||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||
| Deposits: |
|||||||||||
| Noninterest-bearing |
$ 3,090,386 |
— |
—% |
$ 2,936,827 |
— |
—% |
|||||
| Interest-bearing |
1,063,451 |
483 |
0.09% |
832,787 |
361 |
0.09% |
|||||
| Savings and money market accounts |
5,703,530 |
10,136 |
0.36% |
5,129,894 |
15,243 |
0.60% |
|||||
| Certificates and other time deposits |
1,656,284 |
6,693 |
0.81% |
2,493,167 |
12,433 |
1.01% |
|||||
| Total deposits |
11,513,651 |
17,312 |
0.30% |
11,392,675 |
28,037 |
0.50% |
|||||
| Securities sold under agreements to repurchase |
904,033 |
544 |
0.12% |
866,306 |
1,855 |
0.43% |
|||||
| Wholesale borrowings |
181,323 |
2,269 |
2.52% |
325,197 |
3,292 |
2.04% |
|||||
| Total interest bearing liabilities |
9,508,621 |
20,125 |
0.43% |
9,647,351 |
33,184 |
0.65% |
|||||
| Other liabilities |
338,408 |
266,184 |
|||||||||
| Shareholders' equity |
1,590,097 |
1,525,090 |
|||||||||
| Total liabilities and shareholders' equity |
$ 14,527,512 |
$ 14,375,452 |
|||||||||
| Net yield on earning assets |
$ 12,961,086 |
243,116 |
3.77% |
$ 12,643,064 |
243,927 |
3.89% |
|||||
| Interest rate spread |
3.66% |
3.72% |
|||||||||
| 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 Comprehensive Income |
| Quarters ended |
Six Months Ended |
||||||||||
| (Unaudited) |
June 30, |
June 30, |
|||||||||
| (Dollars and shares in thousands, except per share data) |
2012 |
2011 |
2012 |
2011 |
|||||||
| Interest income: |
|||||||||||
| Loans and loans held for sale |
$ 103,126 |
$ 107,904 |
$ 206,208 |
$ 222,460 |
|||||||
| Investment securities |
|||||||||||
| Taxable |
21,783 |
22,176 |
44,201 |
43,661 |
|||||||
| Tax-exempt |
3,846 |
3,137 |
7,426 |
6,332 |
|||||||
| Total investment securities interest |
25,629 |
25,313 |
51,627 |
49,993 |
|||||||
| Total interest income |
128,755 |
133,217 |
257,835 |
272,453 |
|||||||
| Interest expense: |
|||||||||||
| Deposits: |
|||||||||||
| Interest-bearing |
236 |
177 |
483 |
361 |
|||||||
| Savings and money market accounts |
5,033 |
7,398 |
10,136 |
15,243 |
|||||||
| Certificates and other time deposits |
3,169 |
5,606 |
6,693 |
12,433 |
|||||||
| Securities sold under agreements to repurchase |
276 |
940 |
544 |
1,855 |
|||||||
| Wholesale borrowings |
1,118 |
1,653 |
2,269 |
3,292 |
|||||||
| Total interest expense |
9,832 |
15,774 |
20,125 |
33,184 |
|||||||
| Net interest income |
118,923 |
117,443 |
237,710 |
239,269 |
|||||||
| Provision for noncovered loan losses |
8,766 |
10,138 |
16,895 |
27,156 |
|||||||
| Provision for covered loan losses |
3,430 |
7,481 |
9,362 |
12,812 |
|||||||
| Net interest income after provision for loan losses |
106,727 |
99,824 |
211,453 |
199,301 |
|||||||
| Other income: |
|||||||||||
| Trust department income |
5,730 |
5,863 |
11,357 |
11,377 |
|||||||
| Service charges on deposits |
14,478 |
15,712 |
28,887 |
30,622 |
|||||||
| Credit card fees |
11,216 |
13,510 |
21,396 |
25,717 |
|||||||
| ATM and other service fees |
3,890 |
3,063 |
7,680 |
5,980 |
|||||||
| Bank owned life insurance income |
2,923 |
3,015 |
5,979 |
8,256 |
|||||||
| Investment services and insurance |
2,388 |
1,972 |
4,635 |
4,419 |
|||||||
| Investment securities gains, net |
548 |
889 |
808 |
889 |
|||||||
| Loan sales and servicing income |
5,139 |
2,891 |
11,830 |
5,676 |
|||||||
| Other operating income |
8,989 |
4,576 |
14,455 |
11,311 |
|||||||
| Total other income |
55,301 |
51,491 |
107,027 |
104,247 |
|||||||
| Other expenses: |
|||||||||||
| Salaries, wages, pension and employee benefits |
61,598 |
56,713 |
125,571 |
116,583 |
|||||||
| Net occupancy expense |
7,971 |
8,086 |
16,563 |
16,680 |
|||||||
| Equipment expense |
7,598 |
6,816 |
14,702 |
13,652 |
|||||||
| Stationery, supplies and postage |
2,285 |
2,750 |
4,428 |
5,455 |
|||||||
| Bankcard, loan processing and other costs |
8,858 |
8,266 |
16,511 |
15,829 |
|||||||
| Professional services |
9,307 |
5,940 |
12,659 |
11,734 |
|||||||
| Amortization of intangibles |
483 |
543 |
966 |
1,086 |
|||||||
| FDIC insurance expense |
3,463 |
4,581 |
7,183 |
8,947 |
|||||||
| Other operating expense |
17,514 |
16,373 |
34,262 |
34,548 |
|||||||
| Total other expenses |
119,077 |
110,068 |
232,845 |
224,514 |
|||||||
| Income before income tax expense |
42,951 |
41,247 |
85,635 |
79,034 |
|||||||
| Income tax expense |
12,366 |
11,484 |
24,706 |
21,710 |
|||||||
| Net income |
30,585 |
29,763 |
60,929 |
57,324 |
|||||||
| Other comprehensive income, net of taxes |
|||||||||||
| Changes in unrealized securities' holding gains and losses |
$ 4,103 |
$ 17,198 |
$ 5,987 |
$ 17,536 |
|||||||
| Reclassification for realized securities' gains |
(356) |
(578) |
(525) |
(578) |
|||||||
| Total other comprehensive gain, net of taxes |
3,747 |
16,620 |
5,462 |
16,958 |
|||||||
| Comprehensive income |
$ 34,332 |
$ 46,383 |
$ 66,391 |
$ 74,282 |
|||||||
| Net income applicable to common shares |
$ 30,585 |
$ 29,763 |
$ 60,929 |
$ 57,324 |
|||||||
| Net income used in diluted EPS calculation |
$ 30,585 |
$ 29,763 |
$ 60,929 |
$ 57,324 |
|||||||
| Weighted average number of common shares outstanding - basic |
109,562 |
109,138 |
109,386 |
108,954 |
|||||||
| Weighted average number of common shares outstanding - diluted |
109,562 |
109,139 |
109,386 |
108,955 |
|||||||
| Basic earnings per common share |
$ 0.28 |
$ 0.27 |
$ 0.56 |
$ 0.53 |
|||||||
| Diluted earnings per common share |
$ 0.28 |
$ 0.27 |
$ 0.56 |
$ 0.53 |
|||||||
| Dividend per common share |
$ 0.16 |
$ 0.16 |
$ 0.32 |
$ 0.32 |
|||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||
| Consolidated Statements of Comprehensive Income---Linked Quarters |
||||||||||
| Quarterly Results |
||||||||||
| (Unaudited) |
2012 |
2012 |
2011 |
2011 |
2011 |
|||||
| (Dollars in thousands, except per share data) |
2nd Qtr |
1st Qtr |
4th Qtr |
3rd Qtr |
2nd Qtr |
|||||
| Loans and loans held for sale |
$ 103,126 |
$ 103,082 |
$ 107,516 |
$ 108,417 |
$ 107,904 |
|||||
| Investment securities |
25,629 |
25,998 |
24,732 |
25,138 |
25,313 |
|||||
| Total interest income |
128,755 |
129,080 |
132,248 |
133,555 |
133,217 |
|||||
| Interest on deposits: |
||||||||||
| Interest-bearing |
236 |
247 |
237 |
218 |
177 |
|||||
| Savings and money market accounts |
5,033 |
5,103 |
5,998 |
6,929 |
7,398 |
|||||
| Certificates and other time deposits |
3,169 |
3,524 |
3,201 |
4,370 |
5,606 |
|||||
| Securities sold under agreements to repurchase |
276 |
268 |
512 |
977 |
940 |
|||||
| Wholesale borrowings |
1,118 |
1,151 |
1,334 |
1,669 |
1,653 |
|||||
| Total interest expense |
9,832 |
10,293 |
11,282 |
14,163 |
15,774 |
|||||
| Net interest income |
118,923 |
118,787 |
120,966 |
119,392 |
117,443 |
|||||
| Provision for noncovered loan losses |
8,766 |
8,129 |
12,275 |
14,604 |
10,138 |
|||||
| Provision for covered loan losses |
3,430 |
5,932 |
2,773 |
4,768 |
7,481 |
|||||
| Net interest income after provision for loan losses |
106,727 |
104,726 |
105,918 |
100,020 |
99,824 |
|||||
| Other income: |
||||||||||
| Trust department income |
5,730 |
5,627 |
5,413 |
5,607 |
5,863 |
|||||
| Service charges on deposits |
14,478 |
14,409 |
15,622 |
17,838 |
15,712 |
|||||
| Credit card fees |
11,216 |
10,180 |
10,182 |
13,640 |
13,510 |
|||||
| ATM and other service fees |
3,890 |
3,790 |
3,920 |
3,801 |
3,063 |
|||||
| Bank owned life insurance income |
2,923 |
3,056 |
3,381 |
3,182 |
3,015 |
|||||
| Investment services and insurance |
2,388 |
2,247 |
1,844 |
1,965 |
1,972 |
|||||
| Investment securities gains, net |
548 |
260 |
5,790 |
4,402 |
889 |
|||||
| Loan sales and servicing income |
5,139 |
6,691 |
5,102 |
3,426 |
2,891 |
|||||
| Other operating income |
8,989 |
5,466 |
8,483 |
6,911 |
4,576 |
|||||
| Total other income |
55,301 |
51,726 |
59,737 |
60,772 |
51,491 |
|||||
| Other expenses: |
||||||||||
| Salaries, wages, pension and employee benefits |
61,598 |
63,973 |
62,546 |
61,232 |
56,713 |
|||||
| Net occupancy expense |
7,971 |
8,592 |
7,270 |
8,464 |
8,086 |
|||||
| Equipment expense |
7,598 |
7,104 |
7,234 |
7,073 |
6,816 |
|||||
| Stationery, supplies and postage |
2,285 |
2,143 |
2,719 |
2,517 |
2,750 |
|||||
| Bankcard, loan processing and other costs |
8,858 |
7,653 |
7,948 |
8,449 |
8,266 |
|||||
| Professional services |
9,307 |
3,352 |
5,763 |
5,732 |
5,940 |
|||||
| Amortization of intangibles |
483 |
483 |
543 |
543 |
543 |
|||||
| FDIC expense |
3,463 |
3,720 |
5,119 |
3,240 |
4,581 |
|||||
| Other operating expense |
17,514 |
16,748 |
24,732 |
18,707 |
16,373 |
|||||
| Total other expenses |
119,077 |
113,768 |
123,874 |
115,957 |
110,068 |
|||||
| Income before income tax expense |
42,951 |
42,684 |
41,781 |
44,835 |
41,247 |
|||||
| Income taxes |
12,366 |
12,340 |
11,285 |
13,098 |
11,484 |
|||||
| Net income |
30,585 |
30,344 |
30,496 |
31,737 |
29,763 |
|||||
| Other comprehensive income (loss), net of taxes |
3,747 |
1,715 |
(19,233) |
4,491 |
16,620 |
|||||
| Comprehensive income |
$ 34,332 |
$ 32,059 |
$ 11,263 |
$ 36,228 |
$ 46,383 |
|||||
| Net income applicable to common shares |
$ 30,585 |
$ 30,344 |
$ 30,496 |
$ 31,737 |
$ 29,763 |
|||||
| Net income used in diluted EPS calculation |
$ 30,585 |
$ 30,344 |
$ 30,496 |
$ 31,737 |
$ 29,763 |
|||||
| Weighted-average common shares outstanding - basic |
109,562 |
109,211 |
109,249 |
109,245 |
109,138 |
|||||
| Weighted-average common shares outstanding - diluted |
109,562 |
109,211 |
109,249 |
109,246 |
109,139 |
|||||
| Basic earnings per common share |
$ 0.28 |
$ 0.28 |
$ 0.28 |
$ 0.29 |
$ 0.27 |
|||||
| Diluted earnings per common share |
$ 0.28 |
$ 0.28 |
$ 0.28 |
$ 0.29 |
$ 0.27 |
|||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||||
| Asset Quality Information (Excluding Acquired Assets) |
||||||||||||
| (Unaudited, except December 31, 2011 annual period which is derived from the audited financial statements) |
||||||||||||
| (Dollars in thousands, except ratios) |
||||||||||||
| Quarterly Periods |
Annual Period |
|||||||||||
| June 30, |
March 31, |
December 31, |
September 30, |
June 30, |
December 31, |
|||||||
| Allowance for Credit Losses |
2012 |
2012 |
2011 |
2011 |
2011 |
2011 |
||||||
| Allowance for noncovered loan losses, beginning of period |
$ 103,849 |
$ 107,699 |
$ 109,187 |
$ 109,187 |
$ 114,690 |
$ 114,690 |
||||||
| Provision for noncovered loan losses |
8,766 |
8,129 |
12,275 |
14,604 |
10,138 |
54,035 |
||||||
| Charge-offs |
15,014 |
17,417 |
18,984 |
20,014 |
20,958 |
82,768 |
||||||
| Recoveries |
6,248 |
5,438 |
5,221 |
5,410 |
5,317 |
21,742 |
||||||
| Net charge-offs |
8,766 |
11,979 |
13,763 |
14,604 |
15,641 |
61,026 |
||||||
| Allowance for noncovered loan losses, end of period |
$ 103,849 |
$ 103,849 |
$ 107,699 |
$ 109,187 |
$ 109,187 |
$ 107,699 |
||||||
| Reserve for unfunded lending commitments, beginning of period |
$ 5,410 |
$ 6,373 |
$ 6,360 |
$ 5,799 |
$ 7,202 |
$ 8,849 |
||||||
| Provision for/(relief of) credit losses |
256 |
(963) |
13 |
561 |
(1,403) |
(2,476) |
||||||
| Reserve for unfunded lending commitments, end of period |
5,666 |
5,410 |
6,373 |
6,360 |
5,799 |
6,373 |
||||||
| Allowance for Credit Losses |
$ 109,515 |
$ 109,259 |
$ 114,072 |
$ 115,547 |
$ 114,986 |
$ 114,072 |
||||||
| Ratios (a) |
||||||||||||
| Provision for loan losses as a % of average loans |
0.45% |
0.43% |
0.65% |
0.79% |
0.57% |
0.75% |
||||||
| Net charge-offs as a % of average loans |
0.45% |
0.63% |
0.73% |
0.79% |
0.89% |
0.85% |
||||||
| Allowance for loan losses as a % of period-end loans |
1.29% |
1.34% |
1.41% |
1.46% |
1.51% |
1.41% |
||||||
| Allowance for credit losses as a % of period-end loans |
1.36% |
1.41% |
1.49% |
1.55% |
1.59% |
1.49% |
||||||
| Allowance for loan losses as a % of nonperforming loans |
222.44% |
194.83% |
166.64% |
160.09% |
150.31% |
166.64% |
||||||
| Allowance for credit losses as a % of nonperforming loans |
234.57% |
204.98% |
176.50% |
169.42% |
158.30% |
176.50% |
||||||
| Asset Quality (a) |
||||||||||||
| Impaired loans: |
||||||||||||
| Nonaccrual |
$ 38,381 |
$ 44,486 |
$ 55,755 |
$ 59,928 |
$ 63,688 |
$ 55,755 |
||||||
| Other nonperforming loans: |
||||||||||||
| Nonaccrual |
8,306 |
8,815 |
8,876 |
8,275 |
8,951 |
8,876 |
||||||
| Total nonperforming loans |
46,687 |
53,301 |
64,631 |
68,203 |
72,639 |
64,631 |
||||||
| Other real estate ("ORE") |
14,393 |
14,670 |
16,463 |
22,172 |
27,207 |
16,463 |
||||||
| Total nonperforming assets ("NPAs") |
$ 61,080 |
$ 67,971 |
$ 81,094 |
$ 90,375 |
$ 99,846 |
$ 81,094 |
||||||
| NPAs as % of period-end loans + ORE |
0.76% |
0.87% |
1.06% |
1.21% |
1.38% |
1.06% |
||||||
| Past due 90 days or more & accruing interest |
$ 2,690 |
$ 5,839 |
$ 8,285 |
$ 4,402 |
$ 10,424 |
$ 8,285 |
||||||
| (a) Excludes acquired loans and related loss share receivable with a period end balance of $1.3 billion, $1.5 billion, $1.6 billion, $1.8 billion, and $1.9 billion and covered ORE and related loss share receivable with a period end balance of $54.5 million, $56.4 million, $54.5 million, $61.9 million,and $58.5 million at June 30, 2012, March 31, 2012, December 31, 2011, September 30, 2011, and June 30, 2011. |
||||||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||
| Noninterest Income and Noninterest Expense Detail |
|||||||||
| (Unaudited) |
|||||||||
| (Dollars in thousands) |
|||||||||
| QUARTERLY OTHER INCOME DETAIL |
2012 |
2012 |
2011 |
2011 |
2011 |
||||
| Trust department income |
$ 5,730 |
$ 5,627 |
$ 5,413 |
$ 5,607 |
$ 5,863 |
||||
| Service charges on deposits |
14,478 |
14,409 |
15,622 |
17,838 |
15,712 |
||||
| Credit card fees |
11,216 |
10,180 |
10,182 |
13,640 |
13,510 |
||||
| ATM and other service fees |
3,890 |
3,790 |
3,920 |
3,801 |
3,063 |
||||
| Bank owned life insurance income |
2,923 |
3,056 |
3,381 |
3,182 |
3,015 |
||||
| Investment services and insurance |
2,388 |
2,247 |
1,844 |
1,965 |
1,972 |
||||
| Investment securities gains, net |
548 |
260 |
5,790 |
4,402 |
889 |
||||
| Loan sales and servicing income |
5,139 |
6,691 |
5,102 |
3,426 |
2,891 |
||||
| Other operating income |
8,989 |
5,466 |
8,483 |
6,911 |
4,576 |
||||
| Total Other Income |
$ 55,301 |
$ 51,726 |
$ 59,737 |
$ 60,772 |
$ 51,491 |
||||
| QUARTERLY OTHER EXPENSES DETAIL |
2012 |
2012 |
2011 |
2011 |
2011 |
||||
| Salaries, wages, pension and employee benefits |
$ 61,598 |
$ 63,973 |
$ 62,546 |
$ 61,232 |
$ 56,713 |
||||
| Net occupancy expense |
7,971 |
8,592 |
7,270 |
8,464 |
8,086 |
||||
| Equipment expense |
7,598 |
7,104 |
7,234 |
7,073 |
6,816 |
||||
| Taxes, other than income taxes |
2,020 |
1,955 |
1,389 |
1,507 |
922 |
||||
| Stationery, supplies and postage |
2,285 |
2,143 |
2,719 |
2,517 |
2,750 |
||||
| Bankcard, loan processing and other costs |
8,858 |
7,653 |
7,948 |
8,449 |
8,266 |
||||
| Advertising |
2,280 |
1,684 |
2,275 |
2,391 |
2,287 |
||||
| Professional services |
9,307 |
3,352 |
5,763 |
5,732 |
5,940 |
||||
| Telephone |
1,379 |
1,398 |
1,525 |
1,570 |
1,462 |
||||
| Amortization of intangibles |
483 |
483 |
543 |
543 |
543 |
||||
| FDIC insurance expense |
3,463 |
3,720 |
5,119 |
3,240 |
4,581 |
||||
| Other operating expense |
11,835 |
11,711 |
19,543 |
13,239 |
11,702 |
||||
| Total Other Expenses |
$ 119,077 |
$ 113,768 |
$ 123,874 |
$ 115,957 |
$ 110,068 |
||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||
| Allowance for Noncovered Loan Losses - Net Charge-off Detail |
||||||||||
| Quarters ended |
Six Months Ended |
Year Ended |
||||||||
| (Unaudited) |
June 30, |
June 30, |
December 31, |
|||||||
| (Dollars in thousands) |
2012 |
2011 |
2012 |
2011 |
2011 |
|||||
| Allowance for noncovered loan losses - beginning of period |
$ 103,849 |
$ 114,690 |
$ 107,699 |
$ 114,690 |
$ 114,690 |
|||||
| Loans charged off: |
||||||||||
| Commercial |
6,941 |
8,219 |
13,940 |
16,143 |
31,943 |
|||||
| Residential mortgage |
878 |
1,351 |
1,740 |
3,015 |
4,819 |
|||||
| Installment |
3,696 |
6,202 |
8,934 |
14,293 |
25,839 |
|||||
| Home equity |
1,465 |
2,115 |
3,789 |
4,271 |
8,691 |
|||||
| Credit cards |
1,645 |
2,297 |
3,228 |
4,615 |
7,846 |
|||||
| Leases |
— |
127 |
- |
127 |
778 |
|||||
| Overdrafts |
389 |
647 |
800 |
1,306 |
2,852 |
|||||
| Total |
15,014 |
20,958 |
32,431 |
43,770 |
82,768 |
|||||
| Recoveries: |
||||||||||
| Commercial |
1,966 |
528 |
2,660 |
1,136 |
2,703 |
|||||
| Residential mortgage |
56 |
29 |
91 |
118 |
221 |
|||||
| Installment |
3,004 |
3,700 |
6,184 |
7,388 |
13,639 |
|||||
| Home equity |
593 |
322 |
1,238 |
789 |
1,985 |
|||||
| Credit cards |
465 |
557 |
1,095 |
1,204 |
2,264 |
|||||
| Manufactured housing |
15 |
18 |
37 |
49 |
119 |
|||||
| Leases |
1 |
2 |
38 |
34 |
37 |
|||||
| Overdrafts |
148 |
161 |
343 |
393 |
774 |
|||||
| Total |
6,248 |
5,317 |
11,686 |
11,111 |
21,742 |
|||||
| Net charge-offs |
8,766 |
15,641 |
20,745 |
32,659 |
61,026 |
|||||
| Provision for noncovered loan losses |
8,766 |
10,138 |
16,895 |
27,156 |
54,035 |
|||||
| Allowance for noncovered loan losses - end of period |
$ 103,849 |
$ 109,187 |
$ 103,849 |
$ 109,187 |
$ 107,699 |
|||||
| Average loans (a) |
$ 7,857,840 |
$ 7,080,109 |
$ 7,767,901 |
$ 7,022,092 |
$ 7,217,349 |
|||||
| Ratio to average loans (a): |
||||||||||
| (Annualized) net charge-offs |
0.45% |
0.89% |
0.54% |
0.94% |
0.85% |
|||||
| Provision for loan losses |
0.45% |
0.57% |
0.44% |
0.78% |
0.75% |
|||||
| Loans, period-end (a) |
$ 8,031,998 |
$ 7,216,015 |
$ 8,031,998 |
$ 7,216,015 |
$ 7,635,776 |
|||||
| Allowance for credit losses (a): |
$ 109,515 |
$ 114,986 |
$ 109,515 |
$ 114,986 |
$ 114,072 |
|||||
| As a multiple of (annualized) net charge-offs |
3.11 |
1.83 |
2.63 |
1.75 |
1.87 |
|||||
| Allowance for noncovered loan losses (a): |
||||||||||
| As a percent of period-end noncovered loans |
1.29% |
1.51% |
1.29% |
1.51% |
1.41% |
|||||
| As a multiple of (annualized) net noncovered charge-offs |
2.95 |
1.74 |
2.49 |
1.66 |
1.76 |
|||||
| (a) Excludes acquired loans and loss share receivable. |
||||||||||
SOURCE FirstMerit Corporation
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