FirstMerit Reports First Quarter 2013 EPS of $0.33 Per Share
AKRON, Ohio, April 23, 2013 /PRNewswire/ --
Quarterly Highlights include:
- Sustained profitability: 56th consecutive quarter of profitability.
- Continued organic growth: Average commercial noncovered loan growth of $259.3 million, or 4.63%, from prior quarter; average core deposit growth of $285.4 million, or 2.81%, from prior quarter.
- Superior credit quality: Net charge-offs to noncovered average loans decreased to 0.27% from 0.34% in the prior quarter; nonperforming assets as a percent of noncovered period end loans plus other real estate remained low at 0.59% compared to 0.57% in the prior quarter.
- Strong balance sheet: Strong tangible common equity ratio at 8.03%.
FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2013 net income of $37.3 million, or $0.33 per diluted share. This compares with $38.2 million, or $0.35 per diluted share, for the fourth quarter 2012 and $30.3 million, or $0.28 per diluted share, for the first quarter 2012.
(Logo: http://photos.prnewswire.com/prnh/20070920/CLTU138LOGO )
Returns on average common equity ("ROE") and average assets ("ROA") for the first quarter 2013 were 8.83% and 1.01%, respectively, compared with 9.30% and 1.03%, respectively, for the fourth quarter 2012 and 7.72% and 0.84% for the first quarter 2012.
"During the first quarter, FirstMerit continued its trend of strong financial results. Our solid performance laid the foundation for our execution of the Citizens Republic Bancorp acquisition that we announced last September and closed on April 12, 2013. Our most recent quarter was highlighted by excellent credit quality, additional cost savings generated by our successful efficiency initiative and robust growth in average noncovered commercial loans and average core deposits. We are excited to introduce our value proposition into our newest markets, Michigan and Wisconsin, backed by our exceptional customer service. We believe FirstMerit's consistent profitability, robust balance sheet and high capital levels will resonate well with customers as we capture market share in our new footprint," said Paul Greig, chairman, president and CEO, FirstMerit Corporation.
Net interest margin was 3.46% for the first quarter 2013 compared with 3.58% for the fourth quarter 2012 and 3.78% for the first quarter 2012. Increased borrowing costs, primarily related to the Corporation's issuance of $250 million aggregate principal amount of subordinated notes in an underwritten public offering completed on February 4, 2013, accounted for six basis points of compression during the first quarter of 2013.
Average noncovered loans during the first quarter 2013 increased $291.1 million, or 3.45%, compared with the fourth quarter 2012 and also increased $953.9 million, or 12.26%, compared with the first quarter 2012. Average noncovered commercial loans increased $259.3 million, or 4.63%, compared with the prior quarter, and increased $716.7 million, or 13.94%, compared with the year ago quarter.
Average deposits were $11.8 billion during the first quarter 2013, an increase of $194.7 million, or 1.68%, compared with the fourth quarter 2012, and an increase of $317.8 million, or 2.77%, compared with the first quarter 2012. During the first quarter 2013, average core deposits, which exclude time deposits, increased $285.4 million, or 2.81%, compared with the fourth quarter 2012 and $680.5 million, or 6.96%, compared with the first quarter 2012. Average time deposits decreased $90.7 million, or 6.38%, and decreased $362.7 million, or 21.41%, respectively, over prior and year-ago quarters. For the first quarter 2013, average core deposits accounted for 88.71% of total average deposits, compared with 87.73% for the fourth quarter 2012 and 85.23% for the first quarter 2012.
Average investments increased $11.2 million, or 0.30%, compared with the fourth quarter 2012 and increased $7.2 million, or 0.19% compared with the first quarter 2012.
Net interest income on a fully tax-equivalent ("FTE") basis was $114.4 million in the first quarter 2013 compared with $119.1 million in the fourth quarter 2012 and $121.4 million in the first quarter 2012.
Noninterest income, excluding gains on securities transactions, for the first quarter 2013 was $57.4 million, a decrease of $1.8 million, or 3.08%, from the fourth quarter 2012 and an increase of $5.9 million, or 11.53%, from the first quarter 2012. Included in noninterest income in both the first quarter of 2013 and the fourth quarter of 2012 were $5.0 million of gains on covered loans paid in full.
Other income, net of securities gains, as a percentage of net revenue for the first quarter 2013 was 33.42% compared with 33.21% for fourth quarter 2012 and 29.77% for the first quarter 2012. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.
Noninterest expense for the first quarter 2013 was $106.9 million, a decrease of $5.3 million, or 4.69%, from the fourth quarter 2012 and a decrease of $6.8 million, or 6.01%, from the first quarter 2012. Included in noninterest expense in the first quarter of 2013 and fourth quarter of 2012 were acquisition related costs associated with the Citizens Republic Bancorp merger of $3.6 million and $2.1 million, respectively. The majority of these acquisition related costs were from professional and legal services rendered in connection with the merger. Also included in noninterest expense in the fourth quarter of 2012 was $2.3 million of fees related to the early termination of Federal Home Loan Bank advances.
During the first quarter 2013, the Corporation reported an efficiency ratio of 62.06%, compared with 62.65% for the fourth quarter 2012 and 65.52% for the first quarter 2012.
Net noncovered charge-offs totaled $5.9 million, or 0.27% of average noncovered loans in the first quarter 2013, compared with $7.1 million, or 0.34% of average noncovered loans, in the fourth quarter 2012 and $12.0 million, or 0.62% of average noncovered loans, in the first quarter 2012.
Nonperforming assets totaled $52.2 million at March 31, 2013, a increase of $2.0 million, or 4.00%, compared with December 31, 2012 and a decrease of $15.7 million, or 23.11%, compared with March 31, 2012. Nonperforming assets at March 31, 2013 represented 0.59% of period-end noncovered loans plus other real estate compared with 0.57% at December 31, 2012 and 0.86% at March 31, 2012.
The allowance for noncovered loan losses totaled $98.8 million at March 31, 2013. At March 31, 2013, the allowance for noncovered loan losses was 1.13% of period-end noncovered loans compared with 1.13% at December 31, 2012 and 1.32% at March 31, 2012. 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 1.18% of period end noncovered loans at March 31, 2013, compared with 1.20% at December 31, 2012 and 1.39% at March 31, 2012. The allowance for credit losses to nonperforming loans was 254.32% at March 31, 2013, compared with 284.50% at December 31, 2012 and 205.13% at March 31, 2012.
The Corporation's total assets at March 31, 2013 were $15.3 billion, an increase of $359.5 million, or 2.41%, compared with December 31, 2012 and an increase of $601.7 million, or 4.10%, compared with March 31, 2012.
Total deposits were $11.9 billion at March 31, 2013, an increase of $166.3 million, or 1.41%, from December 31, 2012 and an increase of $277.6 million, or 2.38%, from March 31, 2012. Core deposits totaled $10.6 billion at March 31, 2013, an increase of $238.4 million, or 2.30%, from December 31, 2012 and an increase of $624.3 million, or 6.24%, from March 31, 2012.
Shareholders' equity was $1.8 billion as of March 31, 2013 and $1.6 billion as of December 31, 2012 and March 31, 2012. On February 4, 2013, the Corporation issued 4,000,000 depositary shares (each representing a 1/40th interest in a share of the Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series A) for total gross proceeds of $100 million. Dividends are payable quarterly in arrears on the 4th day of February, May, August and November, beginning May 4, 2013. As of March 31, 2013, $0.9 million of dividends were accrued and payable on May 4, 2013 and accounted for approximately a one cent reduction in diluted EPS for the quarter ended March 31, 2013. The Corporation maintained a strong capital position as tangible common equity to assets was 8.03% at March 31, 2013, compared with 8.16% at December 31, 2012 and 7.86% at March 31, 2012. The common cash dividend per share paid in the first quarter 2013 was $0.16.
First Quarter 2013 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 first 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: 41933689. A replay of the conference call will be available at approximately 2:00 p.m. (Eastern Time) on April 23, 2013 through May 7, 2013 by dialing (855) 859-2056, and entering the PIN: 41933689. The Corporation will provide a slide presentation, which management will speak to during the conference call. A copy of the presentation will be available 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 approximately $24.5 billion as of close of business April 12, 2013, and 415 banking offices and 452 ATM locations in Ohio, Michigan, Wisconsin, Illinois and Pennsylvania. 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 the its consolidated financial statements for the year ended March 31, 2013 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 March 31, 2013 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, competitive pressures, changes in accounting, tax or regulatory practices or requirements, the Corporation's ability to realize the synergies and benefits contemplated by the acquisition of Citizens Republic Bancorp, such as it being accretive to earnings and expanding the Corporation's geographic presence, in the time frame anticipated or at all, and those risk factors detailed in the Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||
| Consolidated Financial Highlights |
|||||||||||||||
| (Unaudited) |
Quarters |
||||||||||||||
| (Dollars in thousands, except per share amounts) |
2013 |
2012 |
2012 |
2012 |
2012 |
||||||||||
| 1st qtr |
4th qtr |
3rd qtr |
2nd qtr |
1st qtr |
|||||||||||
| EARNINGS |
|||||||||||||||
| Net interest income FTE (a) |
$ |
114,376 |
$ |
119,130 |
$ |
120,741 |
$ |
121,689 |
$ |
121,428 |
|||||
| Provision for noncovered loan losses |
5,808 |
7,116 |
9,965 |
8,766 |
8,129 |
||||||||||
| Provision for covered loan losses |
4,138 |
5,146 |
6,214 |
3,430 |
5,932 |
||||||||||
| Other income |
57,392 |
61,652 |
54,925 |
55,301 |
51,726 |
||||||||||
| Other expenses |
106,925 |
112,181 |
108,587 |
119,077 |
113,768 |
||||||||||
| FTE adjustment (a) |
3,027 |
2,900 |
2,851 |
2,766 |
2,641 |
||||||||||
| Net income |
37,346 |
38,224 |
34,953 |
30,585 |
30,344 |
||||||||||
| Diluted EPS (d) |
0.33 |
0.35 |
0.32 |
0.28 |
0.28 |
||||||||||
| PERFORMANCE RATIOS |
|||||||||||||||
| Return on average assets (ROA) |
1.01 |
% |
1.03 |
% |
0.94 |
% |
0.84 |
% |
0.84 |
% |
|||||
| Return on average common equity (ROE) |
8.83 |
% |
9.30 |
% |
8.60 |
% |
7.69 |
% |
7.72 |
% |
|||||
| Net interest margin FTE (a) |
3.46 |
% |
3.58 |
% |
3.66 |
% |
3.77 |
% |
3.78 |
% |
|||||
| Efficiency ratio |
62.06 |
% |
62.65 |
% |
61.75 |
% |
67.21 |
% |
65.52 |
% |
|||||
| Number of full-time equivalent employees |
2,767 |
2,738 |
2,733 |
2,789 |
2,997 |
||||||||||
| MARKET DATA |
|||||||||||||||
| Book value per common share |
$ |
15.99 |
$ |
15.00 |
$ |
14.82 |
$ |
14.60 |
$ |
14.51 |
|||||
| Period-end common share market value |
16.54 |
14.19 |
14.71 |
16.51 |
16.86 |
||||||||||
| Market as a % of book |
103 |
% |
95 |
% |
99 |
% |
113 |
% |
116 |
% |
|||||
| Cash dividends per common share |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
|||||
| Common stock dividend payout ratio |
48.48 |
% |
45.71 |
% |
50.00 |
% |
57.14 |
% |
57.14 |
% |
|||||
| Average basic common shares |
109,689 |
109,652 |
109,645 |
109,562 |
109,211 |
||||||||||
| Average diluted common shares |
109,689 |
109,652 |
109,645 |
109,562 |
109,211 |
||||||||||
| Period end common shares |
109,746 |
109,649 |
109,653 |
109,641 |
109,187 |
||||||||||
| Common shares repurchased |
26 |
12 |
6 |
111 |
69 |
||||||||||
| Common stock market capitalization |
$ |
1,815,199 |
$ |
1,555,919 |
$ |
1,612,996 |
$ |
1,810,173 |
$ |
1,840,893 |
|||||
| ASSET QUALITY (excluding covered loans) |
|||||||||||||||
| Gross charge-offs |
$ |
10,776 |
$ |
12,475 |
$ |
20,999 |
$ |
15,014 |
$ |
17,417 |
|||||
| Net charge-offs |
5,907 |
7,116 |
14,872 |
8,766 |
11,979 |
||||||||||
| Allowance for noncovered loan losses |
98,843 |
98,942 |
98,942 |
103,849 |
103,849 |
||||||||||
| Reserve for unfunded lending commitments |
4,941 |
5,433 |
5,760 |
5,666 |
5,410 |
||||||||||
| Nonperforming assets (NPAs) (b) |
52,231 |
50,224 |
64,055 |
61,080 |
67,933 |
||||||||||
| Net charge-offs to average loans ratio (b) |
0.27 |
% |
0.34 |
% |
0.72 |
% |
0.44 |
% |
0.62 |
% |
|||||
| Allowance for noncovered loan losses to period-end loans (b) |
1.13 |
% |
1.13 |
% |
1.19 |
% |
1.28 |
% |
1.32 |
% |
|||||
| Allowance for credit losses to period-end loans (b) |
1.18 |
% |
1.20 |
% |
1.26 |
% |
1.35 |
% |
1.39 |
% |
|||||
| NPAs to loans and other real estate (b) |
0.59 |
% |
0.57 |
% |
0.77 |
% |
0.75 |
% |
0.86 |
% |
|||||
| Allowance for noncovered loan losses to nonperforming loans |
242.21 |
% |
269.69 |
% |
196.66 |
% |
222.44 |
% |
194.97 |
% |
|||||
| Allowance for credit losses to nonperforming loans |
254.32 |
% |
284.50 |
% |
208.11 |
% |
234.57 |
% |
205.13 |
% |
|||||
| CAPITAL & LIQUIDITY |
|||||||||||||||
| Period-end tangible common equity to assets |
8.03 |
% |
8.16 |
% |
8.18 |
% |
8.01 |
% |
7.86 |
% |
|||||
| Average equity to assets |
11.45 |
% |
11.12 |
% |
10.97 |
% |
10.98 |
% |
10.91 |
% |
|||||
| Average equity to total loans (c) |
17.88 |
% |
17.37 |
% |
17.46 |
% |
17.57 |
% |
17.50 |
% |
|||||
| Average total loans to deposits (c) |
81.36 |
% |
81.21 |
% |
79.89 |
% |
78.78 |
% |
78.74 |
% |
|||||
| AVERAGE BALANCES |
|||||||||||||||
| Assets |
$ |
14,983,543 |
$ |
14,702,215 |
$ |
14,734,016 |
$ |
14,558,514 |
$ |
14,496,937 |
|||||
| Deposits |
11,789,784 |
11,595,085 |
11,591,931 |
11,555,283 |
11,472,021 |
||||||||||
| Loans, excluding acquired loans (c) |
8,681,295 |
8,389,223 |
8,121,083 |
7,857,840 |
7,677,963 |
||||||||||
| Acquired loans, including covered loans (c) |
910,887 |
1,026,574 |
1,139,568 |
1,245,246 |
1,355,086 |
||||||||||
| Earning assets |
13,408,789 |
13,246,693 |
13,119,473 |
12,986,988 |
12,935,184 |
||||||||||
| Shareholders' equity |
1,715,005 |
1,635,275 |
1,616,569 |
1,599,187 |
1,581,009 |
||||||||||
| ENDING BALANCES |
|||||||||||||||
| Assets |
$ |
15,272,484 |
$ |
14,913,012 |
$ |
14,628,843 |
$ |
14,621,344 |
$ |
14,670,818 |
|||||
| Deposits |
11,925,767 |
11,759,425 |
11,532,426 |
11,615,841 |
11,648,165 |
||||||||||
| Loans, excluding acquired loans (c) |
8,725,839 |
8,677,501 |
8,260,426 |
8,031,998 |
7,764,058 |
||||||||||
| Acquired loans, including covered loans (c) |
855,370 |
959,549 |
1,099,052 |
1,187,203 |
1,306,165 |
||||||||||
| Goodwill |
460,044 |
460,044 |
460,044 |
460,044 |
460,044 |
||||||||||
| Intangible assets |
6,055 |
6,373 |
6,817 |
7,274 |
7,756 |
||||||||||
| Earning assets |
13,905,342 |
13,472,067 |
13,219,301 |
13,212,071 |
13,318,202 |
||||||||||
| Total shareholders' equity |
1,754,850 |
1,645,202 |
1,624,704 |
1,600,815 |
1,584,105 |
||||||||||
| 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) - Covered loans and other real estate from George Washington Savings Bank and Midwest Bank & Trust Company are excluded from the ratio of our allowance for loan and credit losses and NPAs. Nonperforming assets at March 31, 2013, December 31, 2012, and September 30, 2012 include $10.0 million, $7.7 million, and $10.6 million, respectively, of loans resulting from consumer loans classified as troubled debt restructurings where the borrower's obligation to the Corporation has been restructured in bankruptcy. |
|||||||||||||||
| (c) - Excludes loss share receivable of $95.6 million, $113.7 million, $131.9 million, $152.6 million and $171.1 million as of March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively. |
|||||||||||||||
| (d) - Net income used to determine diluted EPS for the quarter ended March 31, 2013 was reduced by the cash dividends of approximately $0.9 million payable on the Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series A. |
|||||||||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||||||
| CONSOLIDATED BALANCE SHEETS |
||||||||||||||
| (Dollars in thousands) |
March 31, |
December 31, |
March 31, |
|||||||||||
| (Unaudited, except December 31, 2012, which is derived from the audited financial statements) |
2013 |
2012 |
2012 |
|||||||||||
| ASSETS |
||||||||||||||
| Cash and due from banks |
$ |
183,430 |
$ |
244,223 |
$ |
188,789 |
||||||||
| Interest-bearing deposits in banks |
163,673 |
13,791 |
301,196 |
|||||||||||
| Total cash and cash equivalents |
347,103 |
258,014 |
489,985 |
|||||||||||
| Investment securities: |
||||||||||||||
| Held-to-maturity |
665,589 |
622,121 |
100,840 |
|||||||||||
| Available-for-sale |
3,243,835 |
2,920,971 |
3,491,647 |
|||||||||||
| Other investments |
140,984 |
140,717 |
140,713 |
|||||||||||
| Loans held for sale |
14,459 |
23,683 |
42,447 |
|||||||||||
| Noncovered loans: |
||||||||||||||
| Commercial |
5,888,337 |
5,866,489 |
5,220,051 |
|||||||||||
| Mortgage |
451,522 |
445,211 |
428,950 |
|||||||||||
| Installment |
1,322,795 |
1,328,258 |
1,259,930 |
|||||||||||
| Home equity |
812,458 |
806,078 |
739,548 |
|||||||||||
| Credit card |
140,721 |
146,387 |
140,618 |
|||||||||||
| Leases |
164,137 |
139,236 |
74,112 |
|||||||||||
| Total noncovered loans |
8,779,970 |
8,731,659 |
7,863,209 |
|||||||||||
| Allowance for noncovered loan losses |
(98,843) |
(98,942) |
(103,849) |
|||||||||||
| Net noncovered loans |
8,681,127 |
8,632,717 |
7,759,360 |
|||||||||||
| Covered loans (includes loss share receivable of $95.6 million, $113.7 million and $171.1 million at March 31, 2013, December 31, 2012 and March 31, 2012, respectively) |
896,832 |
1,019,125 |
1,378,150 |
|||||||||||
| Allowance for covered loan losses |
(47,945) |
(43,255) |
(41,070) |
|||||||||||
| Net covered loans |
848,887 |
975,870 |
1,337,080 |
|||||||||||
| Net loans |
9,530,014 |
9,608,587 |
9,096,440 |
|||||||||||
| Premises and equipment, net |
177,137 |
181,149 |
188,347 |
|||||||||||
| Goodwill |
460,044 |
460,044 |
460,044 |
|||||||||||
| Intangible assets |
6,055 |
6,373 |
7,756 |
|||||||||||
| Covered other real estate (includes loss share receivable of $.04 million, $.05 million, and $0.7 million at March 31, 2013, December 31, 2012 and March 31, 2012, respectively) |
70,267 |
59,855 |
56,411 |
|||||||||||
| Accrued interest receivable and other assets |
616,997 |
631,498 |
596,188 |
|||||||||||
| Total assets |
$ |
15,272,484 |
$ |
14,913,012 |
$ |
14,670,818 |
||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||
| Deposits: |
||||||||||||||
| Noninterest-bearing |
$ |
3,360,841 |
$ |
3,338,371 |
$ |
3,136,595 |
||||||||
| Interest-bearing |
1,371,359 |
1,287,674 |
1,119,102 |
|||||||||||
| Savings and money market accounts |
5,890,369 |
5,758,123 |
5,742,547 |
|||||||||||
| Certificates and other time deposits |
1,303,198 |
1,375,257 |
1,649,921 |
|||||||||||
| Total deposits |
11,925,767 |
11,759,425 |
11,648,165 |
|||||||||||
| Federal funds purchased and securities sold under agreements to repurchase |
826,855 |
1,104,525 |
928,760 |
|||||||||||
| Wholesale borrowings |
385,924 |
136,883 |
176,611 |
|||||||||||
| Accrued taxes, expenses, and other liabilities |
379,088 |
266,977 |
333,177 |
|||||||||||
| Total liabilities |
13,517,634 |
13,267,810 |
13,086,713 |
|||||||||||
| 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 |
— |
— |
— |
|||||||||||
| 5.875% Non-Cumulative Perpetual Preferred Stock, Series A, without par value: 115,000 authorized shares; 100,000 outstanding shares |
100,000 |
— |
— |
|||||||||||
| Common stock, without par value; authorized 300,000,000 shares; issued: March 31, 2013, December 31, 2012 and March 31, 2012 - 115,121,731 shares |
127,937 |
127,937 |
127,937 |
|||||||||||
| Capital surplus |
472,975 |
475,979 |
484,491 |
|||||||||||
| Accumulated other comprehensive loss |
(24,119) |
(16,205) |
(22,172) |
|||||||||||
| Retained earnings |
1,214,889 |
1,195,850 |
1,144,210 |
|||||||||||
| Treasury stock, at cost: March 31, 2013 - 5,375,905 shares; December 31, 2012 - 5,472,915 shares; March 31, 2012 - 5,935,169 shares |
(136,832) |
(138,359) |
(150,361) |
|||||||||||
| Total shareholders' equity |
1,754,850 |
1,645,202 |
1,584,105 |
|||||||||||
| Total liabilities and shareholders' equity |
$ |
15,272,484 |
$ |
14,913,012 |
$ |
14,670,818 |
||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||
| AVERAGE CONSOLIDATED BALANCE SHEETS |
|||||||||||||||
| Quarterly Periods |
|||||||||||||||
| (Unaudited) |
March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
||||||||||
| (Dollars in thousands) |
2013 |
2012 |
2012 |
2012 |
2012 |
||||||||||
| ASSETS |
|||||||||||||||
| Cash and due from banks |
$ |
394,896 |
$ |
238,366 |
$ |
440,231 |
$ |
410,533 |
$ |
378,736 |
|||||
| Investment securities: |
|||||||||||||||
| Held-to-maturity |
637,614 |
620,154 |
337,685 |
127,769 |
90,664 |
||||||||||
| Available-for-sale |
2,919,636 |
2,925,938 |
3,215,203 |
3,429,411 |
3,459,439 |
||||||||||
| Other investments |
140,729 |
140,723 |
140,736 |
140,744 |
140,719 |
||||||||||
| Loans held for sale |
14,884 |
20,485 |
23,631 |
22,731 |
26,483 |
||||||||||
| Noncovered loans: |
|||||||||||||||
| Commercial |
5,859,818 |
5,600,522 |
5,443,712 |
5,274,352 |
5,143,087 |
||||||||||
| Residential Mortgage |
448,589 |
443,542 |
437,123 |
431,752 |
421,648 |
||||||||||
| Installment |
1,325,016 |
1,331,131 |
1,293,054 |
1,263,013 |
1,261,122 |
||||||||||
| Home equity |
806,936 |
798,663 |
779,087 |
750,859 |
738,154 |
||||||||||
| Credit card |
144,159 |
145,050 |
143,948 |
142,311 |
143,794 |
||||||||||
| Leases |
150,789 |
125,300 |
88,583 |
78,862 |
73,644 |
||||||||||
| Total noncovered loans |
8,735,307 |
8,444,208 |
8,185,507 |
7,941,149 |
7,781,449 |
||||||||||
| Covered loans and loss share receivable |
960,619 |
1,095,185 |
1,216,711 |
1,325,184 |
1,436,430 |
||||||||||
| Total loans |
9,695,926 |
9,539,393 |
9,402,218 |
9,266,333 |
9,217,879 |
||||||||||
| Less: allowance for loan losses |
141,735 |
141,270 |
145,061 |
143,565 |
142,628 |
||||||||||
| Net loans |
9,554,191 |
9,398,123 |
9,257,157 |
9,122,768 |
9,075,251 |
||||||||||
| Total earning assets |
13,408,789 |
13,246,693 |
13,119,473 |
12,986,988 |
12,935,184 |
||||||||||
| Premises and equipment, net |
179,381 |
181,738 |
184,544 |
187,181 |
190,669 |
||||||||||
| Accrued interest receivable and other assets |
1,142,212 |
1,176,688 |
1,134,829 |
1,117,377 |
1,134,976 |
||||||||||
| TOTAL ASSETS |
$ |
14,983,543 |
$ |
14,702,215 |
$ |
14,734,016 |
$ |
14,558,514 |
$ |
14,496,937 |
|||||
|
LIABILITIES |
|||||||||||||||
| Deposits: |
|||||||||||||||
| Noninterest-bearing |
$ |
3,321,660 |
$ |
3,306,444 |
$ |
3,236,703 |
$ |
3,144,183 |
$ |
3,036,590 |
|||||
| Interest-bearing |
1,300,816 |
1,122,796 |
1,080,841 |
1,060,771 |
1,066,132 |
||||||||||
| Savings and money market accounts |
5,835,750 |
5,743,599 |
5,746,210 |
5,732,007 |
5,675,052 |
||||||||||
| Certificates and other time deposits |
1,331,558 |
1,422,246 |
1,528,177 |
1,618,322 |
1,694,247 |
||||||||||
| Total deposits |
11,789,784 |
11,595,085 |
11,591,931 |
11,555,283 |
11,472,021 |
||||||||||
| Federal funds purchased and securities sold under |
|||||||||||||||
| agreements to repurchase |
906,717 |
957,564 |
1,032,401 |
920,352 |
887,715 |
||||||||||
| Wholesale borrowings |
291,804 |
163,405 |
178,022 |
177,987 |
184,659 |
||||||||||
| Total funds |
12,988,305 |
12,716,054 |
12,802,354 |
12,653,622 |
12,544,395 |
||||||||||
| Accrued taxes, expenses and other liabilities |
280,233 |
350,886 |
315,093 |
305,705 |
371,533 |
||||||||||
| Total liabilities |
13,268,538 |
13,066,940 |
13,117,447 |
12,959,327 |
12,915,928 |
||||||||||
| SHAREHOLDERS' EQUITY |
|||||||||||||||
| Preferred stock |
62,222 |
— |
— |
— |
— |
||||||||||
| Common stock |
127,937 |
127,937 |
127,937 |
127,937 |
127,937 |
||||||||||
| Capital surplus |
473,943 |
474,532 |
472,820 |
473,650 |
481,856 |
||||||||||
| Accumulated other comprehensive income (loss) |
(21,247) |
(17,666) |
(14,627) |
(18,363) |
(19,862) |
||||||||||
| Retained earnings |
1,209,837 |
1,188,641 |
1,168,649 |
1,156,324 |
1,140,953 |
||||||||||
| Treasury stock |
(137,687) |
(138,169) |
(138,210) |
(140,361) |
(149,875) |
||||||||||
| Total shareholders' equity |
1,715,005 |
1,635,275 |
1,616,569 |
1,599,187 |
1,581,009 |
||||||||||
| TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
14,983,543 |
$ |
14,702,215 |
$ |
14,734,016 |
$ |
14,558,514 |
$ |
14,496,937 |
|||||
| FIRSTMERIT CORPORATION AND SUBIDARIES |
||||||||||||||||||||||||||||||||
| AVERAGE CONSOLIDATED BALANCE SHEETS |
||||||||||||||||||||||||||||||||
| Fully Tax-equivalent Interest Rates and Interest Differential |
||||||||||||||||||||||||||||||||
| Three months ended |
Three months ended |
Three months ended |
||||||||||||||||||||||||||||||
| March 31, 2013 |
December 31, 2012 |
March 31, 2012 |
||||||||||||||||||||||||||||||
| (Unaudited) |
Average |
Average |
Average |
Average |
Average |
Average |
||||||||||||||||||||||||||
| (Dollars in thousands) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|||||||||||||||||||||||
| ASSETS |
||||||||||||||||||||||||||||||||
| Cash and due from banks |
$ |
394,896 |
$ |
238,366 |
$ |
378,736 |
||||||||||||||||||||||||||
| Investment securities and federal funds sold: |
||||||||||||||||||||||||||||||||
| U.S. treasury securities and U.S. government agency obligations (taxable) |
2,790,039 |
$ |
16,294 |
2.37 |
% |
2,794,524 |
$ |
16,767 |
2.39 |
% |
2,882,045 |
$ |
19,679 |
2.75 |
% |
|||||||||||||||||
| Obligations of states and political subdivisions (tax exempt) |
541,014 |
6,595 |
4.94 |
% |
510,722 |
6,583 |
5.13 |
% |
436,804 |
5,864 |
5.40 |
% |
||||||||||||||||||||
| Other securities and federal funds sold |
366,926 |
2,944 |
3.25 |
% |
381,569 |
3,429 |
3.58 |
% |
371,973 |
2,739 |
2.96 |
% |
||||||||||||||||||||
| Total investment securities and federal funds sold |
3,697,979 |
25,833 |
2.83 |
% |
3,686,815 |
26,779 |
2.89 |
% |
3,690,822 |
28,282 |
3.08 |
% |
||||||||||||||||||||
| Loans held for sale |
14,884 |
144 |
3.92 |
% |
20,485 |
199 |
3.86 |
% |
26,483 |
283 |
4.30 |
% |
||||||||||||||||||||
| Noncovered loans, covered loans and loss share receivable |
9,695,926 |
99,006 |
4.14 |
% |
9,539,393 |
101,288 |
4.22 |
% |
9,217,879 |
103,156 |
4.50 |
% |
||||||||||||||||||||
| Total earning assets |
13,408,789 |
124,983 |
3.78 |
% |
13,246,693 |
128,266 |
3.85 |
% |
12,935,184 |
131,721 |
4.10 |
% |
||||||||||||||||||||
| Allowance for loan losses |
(141,735) |
(141,270) |
(142,628) |
|||||||||||||||||||||||||||||
| Other assets |
1,321,593 |
1,358,426 |
1,325,645 |
|||||||||||||||||||||||||||||
| Total assets |
$ |
14,983,543 |
$ |
14,702,215 |
$ |
14,496,937 |
||||||||||||||||||||||||||
| LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||||||||||||||||||||||||||
| Deposits: |
||||||||||||||||||||||||||||||||
| Noninterest-bearing |
$ |
3,321,660 |
— |
— |
% |
$ |
3,306,444 |
— |
— |
% |
$ |
3,036,590 |
— |
— |
% |
|||||||||||||||||
| Interest-bearing |
1,300,816 |
318 |
0.10 |
% |
1,122,796 |
261 |
0.09 |
% |
1,066,132 |
247 |
0.09 |
% |
||||||||||||||||||||
| Savings and money market accounts |
5,835,750 |
5,315 |
0.37 |
% |
5,743,599 |
5,261 |
0.36 |
% |
5,675,052 |
5,103 |
0.36 |
% |
||||||||||||||||||||
| Certificates and other time deposits |
1,331,558 |
2,063 |
0.63 |
% |
1,422,246 |
2,287 |
0.64 |
% |
1,694,247 |
3,524 |
0.84 |
% |
||||||||||||||||||||
| Total deposits |
11,789,784 |
7,696 |
0.26 |
% |
11,595,085 |
7,809 |
0.27 |
% |
11,472,021 |
8,874 |
0.31 |
% |
||||||||||||||||||||
| Securities sold under agreements to repurchase |
906,717 |
313 |
0.14 |
% |
957,564 |
303 |
0.13 |
% |
887,715 |
268 |
0.12 |
% |
||||||||||||||||||||
| Wholesale borrowings |
291,804 |
2,598 |
3.61 |
% |
163,405 |
1,024 |
2.49 |
% |
184,659 |
1,151 |
2.51 |
% |
||||||||||||||||||||
| Total interest bearing liabilities |
9,666,645 |
10,607 |
0.45 |
% |
9,409,610 |
9,136 |
0.39 |
% |
9,507,805 |
10,293 |
0.44 |
% |
||||||||||||||||||||
| Other liabilities |
280,233 |
350,886 |
371,533 |
|||||||||||||||||||||||||||||
| Shareholders' equity |
1,715,005 |
1,635,275 |
1,581,009 |
|||||||||||||||||||||||||||||
| Total liabilities and shareholders' equity |
$ |
14,983,543 |
$ |
14,702,215 |
$ |
14,496,937 |
||||||||||||||||||||||||||
| Net yield on earning assets |
$ |
13,408,789 |
$ |
114,376 |
3.46 |
% |
$ |
13,246,693 |
$ |
119,130 |
3.58 |
% |
$ |
12,935,184 |
$ |
121,428 |
3.78 |
% |
||||||||||||||
| Interest rate spread |
3.34 |
% |
3.47 |
% |
3.66 |
% |
||||||||||||||||||||||||||
| 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 |
|||||||||||||||||||
| (Unaudited) |
Quarters ended |
||||||||||||||||||
| (Dollars in thousands except per share data) |
March 31, |
||||||||||||||||||
| 2013 |
2012 |
||||||||||||||||||
| Interest income: |
|||||||||||||||||||
| Loans and loans held for sale |
$ |
98,672 |
$ |
103,082 |
|||||||||||||||
| Investment securities: |
|||||||||||||||||||
| Taxable |
19,239 |
22,418 |
|||||||||||||||||
| Tax-exempt |
4,045 |
3,580 |
|||||||||||||||||
| Total investment securities interest |
23,284 |
25,998 |
|||||||||||||||||
| Total interest income |
121,956 |
129,080 |
|||||||||||||||||
| Interest expense: |
|||||||||||||||||||
| Deposits: |
|||||||||||||||||||
| Interest-bearing |
318 |
247 |
|||||||||||||||||
| Savings and money market accounts |
5,315 |
5,103 |
|||||||||||||||||
| Certificates and other time deposits |
2,063 |
3,524 |
|||||||||||||||||
| Securities sold under agreements to repurchase |
313 |
268 |
|||||||||||||||||
| Wholesale borrowings |
2,598 |
1,151 |
|||||||||||||||||
| Total interest expense |
10,607 |
10,293 |
|||||||||||||||||
| Net interest income |
111,349 |
118,787 |
|||||||||||||||||
| Provision for noncovered loan losses |
5,808 |
8,129 |
|||||||||||||||||
| Provision for covered loan losses |
4,138 |
5,932 |
|||||||||||||||||
| Net interest income after provision for loan losses |
101,403 |
104,726 |
|||||||||||||||||
| Other income: |
|||||||||||||||||||
| Trust department income |
5,741 |
5,627 |
|||||||||||||||||
| Service charges on deposits |
12,585 |
14,409 |
|||||||||||||||||
| Credit card fees |
10,222 |
10,180 |
|||||||||||||||||
| ATM and other service fees |
3,335 |
3,790 |
|||||||||||||||||
| Bank owned life insurance income |
4,897 |
3,056 |
|||||||||||||||||
| Investment services and insurance |
2,415 |
2,247 |
|||||||||||||||||
| Investment securities (losses)/gains, net |
(9) |
260 |
|||||||||||||||||
| Loan sales and servicing income |
7,863 |
6,691 |
|||||||||||||||||
| Other operating income |
10,343 |
5,466 |
|||||||||||||||||
| Total other income |
57,392 |
51,726 |
|||||||||||||||||
| Other expenses: |
|||||||||||||||||||
| Salaries, wages, pension and employee benefits |
57,906 |
63,973 |
|||||||||||||||||
| Net occupancy expense |
8,282 |
8,592 |
|||||||||||||||||
| Equipment expense |
7,349 |
7,104 |
|||||||||||||||||
| Stationery, supplies and postage |
2,096 |
2,143 |
|||||||||||||||||
| Bankcard, loan processing and other costs |
7,840 |
7,653 |
|||||||||||||||||
| Professional services |
5,410 |
3,352 |
|||||||||||||||||
| Amortization of intangibles |
317 |
483 |
|||||||||||||||||
| FDIC insurance expense |
3,526 |
3,720 |
|||||||||||||||||
| Other operating expense |
14,199 |
16,748 |
|||||||||||||||||
| Total other expenses |
106,925 |
113,768 |
|||||||||||||||||
| Income before income tax expense |
51,870 |
42,684 |
|||||||||||||||||
| Income tax expense |
14,524 |
12,340 |
|||||||||||||||||
| Net income |
$ |
37,346 |
$ |
30,344 |
|||||||||||||||
| Other comprehensive income, net of taxes |
|||||||||||||||||||
| Changes in unrealized securities' holding gains and (losses), net of taxes of ($4.3) million and $1.0 million |
$ |
(7,920) |
$ |
1,884 |
|||||||||||||||
| Reclassification for realized securities' (gains) and losses, net of taxes of ($.003) million and $.09 million |
6 |
(169) |
|||||||||||||||||
| Total other comprehensive gain (loss), net of taxes |
(7,914) |
1,715 |
|||||||||||||||||
| Comprehensive income |
$ |
29,432 |
$ |
32,059 |
|||||||||||||||
| Net income applicable to common shares |
$ |
36,125 |
$ |
30,207 |
|||||||||||||||
| Net income used in diluted EPS calculation |
$ |
36,125 |
$ |
30,207 |
|||||||||||||||
| Weighted average number of common shares outstanding - basic |
109,689 |
109,211 |
|||||||||||||||||
| Weighted average number of common shares outstanding - diluted |
109,689 |
109,211 |
|||||||||||||||||
| Basic earnings per common share |
$ |
0.33 |
$ |
0.28 |
|||||||||||||||
| Diluted earnings per common share |
$ |
0.33 |
$ |
0.28 |
|||||||||||||||
| Dividend per common share |
$ |
0.16 |
$ |
0.16 |
|||||||||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||||||||||||||||||||||||||||||||
| CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME---LINKED QUARTERS |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Quarterly Results |
|||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) |
2013 |
2012 |
2012 |
2012 |
2012 |
||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except share data) |
1st qtr |
4th qtr |
3rd qtr |
2nd qtr |
1st qtr |
||||||||||||||||||||||||||||||||||||||||||||
| Loans and loans held for sale |
$ |
98,672 |
$ |
101,086 |
$ |
103,005 |
$ |
103,126 |
$ |
103,082 |
|||||||||||||||||||||||||||||||||||||||
| Investment securities |
23,284 |
24,280 |
24,477 |
25,629 |
25,998 |
||||||||||||||||||||||||||||||||||||||||||||
| Total interest income |
121,956 |
125,366 |
127,482 |
128,755 |
129,080 |
||||||||||||||||||||||||||||||||||||||||||||
| Interest on deposits: |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Interest-bearing |
318 |
261 |
243 |
236 |
247 |
||||||||||||||||||||||||||||||||||||||||||||
| Savings and money market accounts |
5,315 |
5,261 |
5,166 |
5,033 |
5,103 |
||||||||||||||||||||||||||||||||||||||||||||
| Certificates and other time deposits |
2,063 |
2,287 |
2,743 |
3,169 |
3,524 |
||||||||||||||||||||||||||||||||||||||||||||
| Securities sold under agreements to repurchase |
313 |
303 |
310 |
276 |
268 |
||||||||||||||||||||||||||||||||||||||||||||
| Wholesale borrowings |
2,598 |
1,024 |
1,130 |
1,118 |
1,151 |
||||||||||||||||||||||||||||||||||||||||||||
| Total interest expense |
10,607 |
9,136 |
9,592 |
9,832 |
10,293 |
||||||||||||||||||||||||||||||||||||||||||||
| Net interest income |
111,349 |
116,230 |
117,890 |
118,923 |
118,787 |
||||||||||||||||||||||||||||||||||||||||||||
| Provision for noncovered loan losses |
5,808 |
7,116 |
9,965 |
8,766 |
8,129 |
||||||||||||||||||||||||||||||||||||||||||||
| Provision for covered loan losses |
4,138 |
5,146 |
6,214 |
3,430 |
5,932 |
||||||||||||||||||||||||||||||||||||||||||||
| Net interest income after provision for loan losses |
101,403 |
103,968 |
101,711 |
106,727 |
104,726 |
||||||||||||||||||||||||||||||||||||||||||||
| Other income: |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Trust department income |
5,741 |
5,662 |
6,124 |
5,730 |
5,627 |
||||||||||||||||||||||||||||||||||||||||||||
| Service charges on deposits |
12,585 |
14,247 |
14,603 |
14,478 |
14,409 |
||||||||||||||||||||||||||||||||||||||||||||
| Credit card fees |
10,222 |
11,167 |
11,006 |
11,216 |
10,180 |
||||||||||||||||||||||||||||||||||||||||||||
| ATM and other service fees |
3,335 |
3,432 |
3,680 |
3,890 |
3,790 |
||||||||||||||||||||||||||||||||||||||||||||
| Bank owned life insurance income |
4,897 |
3,067 |
3,094 |
2,923 |
3,056 |
||||||||||||||||||||||||||||||||||||||||||||
| Investment services and insurance |
2,415 |
2,147 |
2,208 |
2,388 |
2,247 |
||||||||||||||||||||||||||||||||||||||||||||
| Investment securities gains, net |
(9) |
2,425 |
553 |
548 |
260 |
||||||||||||||||||||||||||||||||||||||||||||
| Loan sales and servicing income |
7,863 |
7,946 |
7,255 |
5,139 |
6,691 |
||||||||||||||||||||||||||||||||||||||||||||
| Other operating income |
10,343 |
11,559 |
6,402 |
8,989 |
5,466 |
||||||||||||||||||||||||||||||||||||||||||||
| Total other income |
57,392 |
61,652 |
54,925 |
55,301 |
51,726 |
||||||||||||||||||||||||||||||||||||||||||||
| Other expenses: |
|||||||||||||||||||||||||||||||||||||||||||||||||
| Salaries, wages, pension and employee benefits |
57,906 |
61,560 |
58,061 |
61,598 |
63,973 |
||||||||||||||||||||||||||||||||||||||||||||
| Net occupancy expense |
8,282 |
7,114 |
8,077 |
7,971 |
8,592 |
||||||||||||||||||||||||||||||||||||||||||||
| Equipment expense |
7,349 |
7,398 |
7,143 |
7,598 |
7,104 |
||||||||||||||||||||||||||||||||||||||||||||
| Stationery, supplies and postage |
2,096 |
2,162 |
2,210 |
2,285 |
2,143 |
||||||||||||||||||||||||||||||||||||||||||||
| Bankcard, loan processing and other costs |
7,840 |
9,260 |
8,424 |
8,858 |
7,653 |
||||||||||||||||||||||||||||||||||||||||||||
| Professional services |
5,410 |
6,119 |
4,702 |
9,307 |
3,352 |
||||||||||||||||||||||||||||||||||||||||||||
| Amortization of intangibles |
317 |
444 |
456 |
483 |
483 |
||||||||||||||||||||||||||||||||||||||||||||
| FDIC insurance expense |
3,526 |
1,738 |
1,832 |
3,463 |
3,720 |
||||||||||||||||||||||||||||||||||||||||||||
| Other operating expense |
14,199 |
16,386 |
17,682 |
17,514 |
16,748 |
||||||||||||||||||||||||||||||||||||||||||||
| Total other expenses |
106,925 |
112,181 |
108,587 |
119,077 |
113,768 |
||||||||||||||||||||||||||||||||||||||||||||
| Income before income tax expense |
51,870 |
53,439 |
48,049 |
42,951 |
42,684 |
||||||||||||||||||||||||||||||||||||||||||||
| Income taxes |
14,524 |
15,215 |
13,096 |
12,366 |
12,340 |
||||||||||||||||||||||||||||||||||||||||||||
| Net income |
37,346 |
38,224 |
34,953 |
30,585 |
30,344 |
||||||||||||||||||||||||||||||||||||||||||||
| Other comprehensive income (loss), net of taxes |
(7,914) |
(2,305) |
4,525 |
3,747 |
1,715 |
||||||||||||||||||||||||||||||||||||||||||||
| Comprehensive income |
$ |
29,432 |
$ |
35,919 |
$ |
39,478 |
$ |
34,332 |
$ |
32,059 |
|||||||||||||||||||||||||||||||||||||||
| Net income applicable to common shares |
$ |
36,125 |
$ |
38,041 |
$ |
34,797 |
$ |
30,472 |
$ |
30,207 |
|||||||||||||||||||||||||||||||||||||||
| Net income used in diluted EPS calculation |
$ |
36,125 |
$ |
38,041 |
$ |
34,797 |
$ |
30,472 |
$ |
30,207 |
|||||||||||||||||||||||||||||||||||||||
| Weighted-average common shares - basic |
109,689 |
109,652 |
109,645 |
109,562 |
109,211 |
||||||||||||||||||||||||||||||||||||||||||||
| Weighted-average common shares - diluted |
109,689 |
109,652 |
109,645 |
109,562 |
109,211 |
||||||||||||||||||||||||||||||||||||||||||||
| Basic earnings per common share |
$ |
0.33 |
$ |
0.35 |
$ |
0.32 |
$ |
0.28 |
$ |
0.28 |
|||||||||||||||||||||||||||||||||||||||
| Diluted earnings per common share |
$ |
0.33 |
$ |
0.35 |
$ |
0.32 |
$ |
0.28 |
$ |
0.28 |
|||||||||||||||||||||||||||||||||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| ASSET QUALITY INFORMATION (excluding Covered Assets) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| (Unaudited) |
(Audited) |
|||||||||||||||||||||||||||||||||||||||||||||||||||
| (Dollars in thousands, except ratios) |
Quarterly Periods |
Annual Period |
||||||||||||||||||||||||||||||||||||||||||||||||||
| March 31, |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
|||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses |
2013 |
2012 |
2012 |
2012 |
2012 |
2012 |
||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for noncovered loan losses, beginning of period |
$ |
98,942 |
$ |
98,942 |
$ |
103,849 |
$ |
103,849 |
$ |
107,699 |
$ |
107,699 |
||||||||||||||||||||||||||||||||||||||||
| Provision for noncovered loan losses |
5,808 |
7,116 |
9,965 |
8,766 |
8,129 |
33,976 |
||||||||||||||||||||||||||||||||||||||||||||||
| Charge-offs |
10,776 |
12,475 |
20,999 |
15,014 |
17,417 |
65,905 |
||||||||||||||||||||||||||||||||||||||||||||||
| Recoveries |
4,869 |
5,359 |
6,127 |
6,248 |
5,438 |
23,172 |
||||||||||||||||||||||||||||||||||||||||||||||
| Net charge-offs |
5,907 |
7,116 |
14,872 |
8,766 |
11,979 |
42,733 |
||||||||||||||||||||||||||||||||||||||||||||||
| Allowance for noncovered loan losses, end of period |
$ |
98,843 |
$ |
98,942 |
$ |
98,942 |
$ |
103,849 |
$ |
103,849 |
$ |
98,942 |
||||||||||||||||||||||||||||||||||||||||
| Reserve for unfunded lending commitments, |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| beginning of period |
$ |
5,433 |
$ |
5,760 |
$ |
5,666 |
$ |
5,410 |
$ |
6,373 |
$ |
6,373 |
||||||||||||||||||||||||||||||||||||||||
| Provision for (relief of) credit losses |
(492) |
(327) |
94 |
256 |
(963) |
(940) |
||||||||||||||||||||||||||||||||||||||||||||||
| Reserve for unfunded lending commitments, |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| end of period |
$ |
4,941 |
$ |
5,433 |
$ |
5,760 |
$ |
5,666 |
$ |
5,410 |
$ |
5,433 |
||||||||||||||||||||||||||||||||||||||||
| Allowance for Credit Losses |
$ |
103,784 |
$ |
104,375 |
$ |
104,702 |
$ |
109,515 |
$ |
109,259 |
$ |
104,375 |
||||||||||||||||||||||||||||||||||||||||
|
Ratios (a) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Provision for loan losses to average loans |
0.27 |
% |
0.34 |
% |
0.48 |
% |
0.44 |
% |
0.42 |
% |
0.42 |
% |
||||||||||||||||||||||||||||||||||||||||
| Net charge-offs to average loans |
0.27 |
% |
0.34 |
% |
0.72 |
% |
0.44 |
% |
0.62 |
% |
0.53 |
% |
||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to period-end loans |
1.13 |
% |
1.13 |
% |
1.19 |
% |
1.28 |
% |
1.32 |
% |
1.13 |
% |
||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to period-end loans |
1.18 |
% |
1.20 |
% |
1.26 |
% |
1.35 |
% |
1.39 |
% |
1.20 |
% |
||||||||||||||||||||||||||||||||||||||||
| Allowance for loan losses to nonperforming loans |
242.21 |
% |
269.69 |
% |
196.66 |
% |
222.44 |
% |
194.97 |
% |
269.69 |
% |
||||||||||||||||||||||||||||||||||||||||
| Allowance for credit losses to nonperforming loans |
254.32 |
% |
284.50 |
% |
208.11 |
% |
234.57 |
% |
205.13 |
% |
284.50 |
% |
||||||||||||||||||||||||||||||||||||||||
|
Asset Quality (a) |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Impaired noncovered loans: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual |
$ |
23,843 |
$ |
21,766 |
$ |
31,492 |
$ |
38,381 |
$ |
44,546 |
$ |
21,766 |
||||||||||||||||||||||||||||||||||||||||
| Other nonperforming loans: |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| Nonaccrual (b) |
16,966 |
14,921 |
18,819 |
8,306 |
8,717 |
14,921 |
||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming loans |
40,809 |
36,687 |
50,311 |
46,687 |
53,263 |
36,687 |
||||||||||||||||||||||||||||||||||||||||||||||
| Other real estate ("ORE") |
11,422 |
13,537 |
13,744 |
14,393 |
14,670 |
13,537 |
||||||||||||||||||||||||||||||||||||||||||||||
| Total nonperforming assets ("NPAs") |
$ |
52,231 |
$ |
50,224 |
$ |
64,055 |
$ |
61,080 |
$ |
67,933 |
$ |
50,224 |
||||||||||||||||||||||||||||||||||||||||
| NPAs to period-end loans + ORE |
0.59 |
% |
0.57 |
% |
0.77 |
% |
0.75 |
% |
0.86 |
% |
0.57 |
% |
||||||||||||||||||||||||||||||||||||||||
| Accruing noncovered loans past due 90 days or more |
$ |
12,393 |
$ |
9,417 |
$ |
9,691 |
$ |
6,545 |
$ |
9,261 |
$ |
9,417 |
||||||||||||||||||||||||||||||||||||||||
| (a) Excludes covered loans and related loss share receivable with a period end balance of $0.9 billion, $1.0 billion, $1.2 billion, $1.3 billion and $1.4 billion and covered ORE and related loss share receivable with a period end balance of $70.3 million, $59.9 million, $56.8 million, $54.5 million and $56.4 million at March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively. |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| (b) At March 31, 2013, December 31, 2012 and September 30, 2012, included are $10.0 million, $7.7 million and $10.6 million, respectively, of consumer loans classified as troubled debt restructurings where the borrower's obligation to the Corporation has been restructured in bankruptcy. |
||||||||||||||||||||||||||||||||||||||||||||||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||||||||||||||||||||
| NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL |
|||||||||||||||||||||||||||||||||
| (Unaudited) |
|||||||||||||||||||||||||||||||||
| (Dollars in thousands) |
|||||||||||||||||||||||||||||||||
| 2013 |
2012 |
2012 |
2012 |
2012 |
|||||||||||||||||||||||||||||
| QUARTERLY OTHER INCOME DETAIL |
1st qtr |
4th qtr |
3rd qtr |
2nd qtr |
1st qtr |
||||||||||||||||||||||||||||
| Trust department income |
$ |
5,741 |
$ |
5,662 |
$ |
6,124 |
$ |
5,730 |
$ |
5,627 |
|||||||||||||||||||||||
| Service charges on deposits |
12,585 |
14,247 |
14,603 |
14,478 |
14,409 |
||||||||||||||||||||||||||||
| Credit card fees |
10,222 |
11,167 |
11,006 |
11,216 |
10,180 |
||||||||||||||||||||||||||||
| ATM and other service fees |
3,335 |
3,432 |
3,680 |
3,890 |
3,790 |
||||||||||||||||||||||||||||
| Bank owned life insurance income |
4,897 |
3,067 |
3,094 |
2,923 |
3,056 |
||||||||||||||||||||||||||||
| Investment services and insurance |
2,415 |
2,147 |
2,208 |
2,388 |
2,247 |
||||||||||||||||||||||||||||
| Investment securities gains, net |
(9) |
2,425 |
553 |
548 |
260 |
||||||||||||||||||||||||||||
| Loan sales and servicing income |
7,863 |
7,946 |
7,255 |
5,139 |
6,691 |
||||||||||||||||||||||||||||
| Other operating income |
10,343 |
11,559 |
6,402 |
8,989 |
5,466 |
||||||||||||||||||||||||||||
| Total Other Income |
$ |
57,392 |
$ |
61,652 |
$ |
54,925 |
$ |
55,301 |
$ |
51,726 |
|||||||||||||||||||||||
| 2013 |
2012 |
2012 |
2012 |
2012 |
|||||||||||||||||||||||||||||
| QUARTERLY OTHER EXPENSES DETAIL |
1st qtr |
4th qtr |
3rd qtr |
2nd qtr |
1st qtr |
||||||||||||||||||||||||||||
| Salaries and wages |
$ |
46,391 |
$ |
45,988 |
$ |
43,806 |
$ |
48,766 |
$ |
45,710 |
|||||||||||||||||||||||
| Pension and employee benefits |
11,515 |
15,572 |
14,255 |
12,832 |
18,263 |
||||||||||||||||||||||||||||
| Net occupancy expense |
8,282 |
7,114 |
8,077 |
7,971 |
8,592 |
||||||||||||||||||||||||||||
| Equipment expense |
7,349 |
7,398 |
7,143 |
7,598 |
7,104 |
||||||||||||||||||||||||||||
| Taxes, other than income taxes |
1,922 |
1,924 |
2,051 |
2,020 |
1,955 |
||||||||||||||||||||||||||||
| Stationery, supplies and postage |
2,096 |
2,162 |
2,210 |
2,285 |
2,143 |
||||||||||||||||||||||||||||
| Bankcard, loan processing and other costs |
7,840 |
9,260 |
8,424 |
8,858 |
7,653 |
||||||||||||||||||||||||||||
| Advertising |
2,070 |
2,774 |
2,472 |
2,280 |
1,684 |
||||||||||||||||||||||||||||
| Professional services |
5,410 |
6,119 |
4,702 |
9,307 |
3,352 |
||||||||||||||||||||||||||||
| Telephone |
1,177 |
1,230 |
1,316 |
1,379 |
1,398 |
||||||||||||||||||||||||||||
| Amortization of intangibles |
317 |
444 |
456 |
483 |
483 |
||||||||||||||||||||||||||||
| FDIC insurance expense |
3,526 |
1,738 |
1,832 |
3,463 |
3,720 |
||||||||||||||||||||||||||||
| Other operating expense |
9,030 |
10,458 |
11,843 |
11,835 |
11,711 |
||||||||||||||||||||||||||||
| Total Other Expenses |
$ |
106,925 |
$ |
112,181 |
$ |
108,587 |
$ |
119,077 |
$ |
113,768 |
|||||||||||||||||||||||
| FIRSTMERIT CORPORATION AND SUBSIDIARIES |
||||||||||||||||||||||||||||||
| ALLOWANCE FOR NONCOVERED LOAN LOSSES - Net Charge-off Detail |
||||||||||||||||||||||||||||||
| (Unaudited) |
Quarters ended |
Year ended |
||||||||||||||||||||||||||||
| (Dollars in thousands) |
March 31, |
December 31, |
||||||||||||||||||||||||||||
| 2013 |
2012 |
2012 |
||||||||||||||||||||||||||||
| Allowance for noncovered loan losses - beginning of period |
$ |
98,942 |
$ |
107,699 |
$ |
107,699 |
||||||||||||||||||||||||
| Loans charged off: |
||||||||||||||||||||||||||||||
| Commercial |
2,672 |
6,999 |
28,648 |
|||||||||||||||||||||||||||
| Mortgage |
270 |
862 |
3,964 |
|||||||||||||||||||||||||||
| Installment |
4,594 |
5,238 |
18,029 |
|||||||||||||||||||||||||||
| Home equity |
1,306 |
2,324 |
7,249 |
|||||||||||||||||||||||||||
| Credit cards |
1,403 |
1,583 |
6,171 |
|||||||||||||||||||||||||||
| Leases |
— |
— |
144 |
|||||||||||||||||||||||||||
| Overdrafts |
531 |
411 |
1,700 |
|||||||||||||||||||||||||||
| Total |
10,776 |
17,417 |
65,905 |
|||||||||||||||||||||||||||
| Recoveries: |
||||||||||||||||||||||||||||||
| Commercial |
1,245 |
694 |
5,626 |
|||||||||||||||||||||||||||
| Mortgage |
43 |
35 |
235 |
|||||||||||||||||||||||||||
| Installment |
2,469 |
3,180 |
11,635 |
|||||||||||||||||||||||||||
| Home equity |
347 |
645 |
2,819 |
|||||||||||||||||||||||||||
| Credit cards |
513 |
630 |
2,138 |
|||||||||||||||||||||||||||
| Manufactured housing |
27 |
22 |
59 |
|||||||||||||||||||||||||||
| Leases |
89 |
37 |
38 |
|||||||||||||||||||||||||||
| Overdrafts |
136 |
195 |
622 |
|||||||||||||||||||||||||||
| Total |
4,869 |
5,438 |
23,172 |
|||||||||||||||||||||||||||
| Net charge-offs |
5,907 |
11,979 |
42,733 |
|||||||||||||||||||||||||||
| Provision for noncovered loan losses |
5,808 |
8,129 |
33,976 |
|||||||||||||||||||||||||||
| Allowance for noncovered loan losses-end of period |
$ |
98,843 |
$ |
103,849 |
$ |
98,942 |
||||||||||||||||||||||||
| Average noncovered loans (a) |
$ |
8,735,307 |
$ |
7,781,449 |
$ |
8,089,317 |
||||||||||||||||||||||||
| Ratio to average noncovered loans (a): |
||||||||||||||||||||||||||||||
| (Annualized) noncovered net charge-offs |
0.27 |
% |
0.62 |
% |
0.53 |
% |
||||||||||||||||||||||||
| Provision for noncovered loan losses |
0.27 |
% |
0.42 |
% |
0.42 |
% |
||||||||||||||||||||||||
| Noncovered Loans, period-end (a) |
$ |
8,779,970 |
$ |
7,863,209 |
$ |
8,731,659 |
||||||||||||||||||||||||
| Allowance for credit losses (a): |
$ |
103,784 |
$ |
109,259 |
$ |
104,375 |
||||||||||||||||||||||||
| To (annualized) net charge-offs |
4.33 |
2.27 |
2.44 |
|||||||||||||||||||||||||||
| Allowance for noncovered loan losses (a): |
||||||||||||||||||||||||||||||
| To period-end noncovered loans |
1.13 |
% |
1.32 |
% |
1.13 |
% |
||||||||||||||||||||||||
| To (annualized) net noncovered charge-offs |
4.13 |
2.16 |
2.32 |
|||||||||||||||||||||||||||
| (a) Excludes covered loans and loss share receivable. |
||||||||||||||||||||||||||||||
FirstMerit Corporation
Analysts: Thomas O'Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075
SOURCE FirstMerit Corporation
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