FirstMerit Reports Fourth Quarter 2010 EPS of $0.25 Per Share
AKRON, Ohio, Feb. 1, 2011 /PRNewswire/ --
Quarterly Highlights include:
- 47th consecutive quarter of profitability
- Commercial loan growth of $182.7 million compared with prior quarter
- Net interest margin expansion to 4.14%
- Core deposit growth of $407.3 million compared with prior quarter
- Increase in tangible common equity to 7.46%
FirstMerit Corporation (Nasdaq: FMER) reported fourth quarter 2010 net income of $27.0 million, or $0.25 per diluted share. This compares with $29.0 million, or $0.27 per diluted share, for the third quarter 2010 and $14.5 million, or $0.17 per diluted share, for the fourth quarter 2009. For the full year 2010, the Corporation reported net income of $102.9 million, or $1.02 per diluted share, compared with $82.2 million, or $0.90 per diluted share in 2009.
(Logo: http://photos.prnewswire.com/prnh/20070920/CLTU138LOGO )
Returns on average common equity ("ROE") and average assets ("ROA") for the fourth quarter 2010 were 7.04% and 0.74%, respectively, compared with 7.60% and 0.79%, respectively, for the third quarter 2010 and 5.38% and 0.54% for the fourth quarter 2009. ROE and ROA for the year ended December 31, 2010 were 7.82% and 0.76% respectively, compared with 8.09% and 0.76%, respectively, for the year ended December 31, 2009.
"Our continued focus on the fundamentals of sound banking drove FirstMerit's solid and profitable performance in the fourth quarter and throughout 2010," said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation. "During the fourth quarter we produced our 47th consecutive profitable quarter; successfully converted our Midwest Bank and Trust acquisition in Chicago; continued the integration of three Chicago acquisitions into the FirstMerit franchise; and further penetrated the Chicago and Northeast Ohio markets, taking advantage of the opportunities created by market disruption in both regions. We achieved these results by leveraging our strong balance sheet, our rich culture built around our superior customer service and disciplined growth strategies which support the execution of our super community bank model."
Net interest margin was 4.14% for the fourth quarter of 2010 compared with 3.96% for the third quarter of 2010 and 3.64% for the fourth quarter of 2009. Expansion in the net interest margin in both the prior and year-ago quarters were driven primarily by increased loan volume and lower certificate of deposit product balances. The Corporation continues to successfully execute its strategy of increasing core deposits while shifting the deposit mix away from high-cost certificate of deposit products. Lower yields on average investment securities compared with both prior and year-ago quarters partly offset the respective, 18 and 50 basis point expansion in net interest margin over those periods. During the quarter, the Corporation reinvested maturing securities into shorter-duration investments to maintain balance sheet liquidity.
Average loans, not including covered loans, during the fourth quarter of 2010 increased $54.6 million, or 0.77%, compared with the third quarter of 2010 and also increased $194.3 million, or 2.80%, compared with the fourth quarter of 2009. Average commercial loans, not including covered loans, drove the growth over both time periods, increasing $109.1 million, or 2.51%, compared with the prior quarter, and $386.8 million, or 9.53%, compared with the fourth quarter of 2009. Average covered loan balances including the indemnification assets were $2.0 billion during the fourth quarter of 2010.
Average deposits were $11.4 billion during the fourth quarter of 2010, down $37.3 million, or 0.33%, compared with the third quarter of 2010, and up $4.0 billion, or 53.95%, compared with the fourth quarter of 2009. During the fourth quarter 2010, average core deposits, which excludes time deposits, increased $294.1 million, or 3.63%, compared with the third quarter 2010 and $2.5 billion, or 43.19%, compared with the fourth quarter 2009. Average time deposits decreased $331.4 million, or 9.94%, and increased $1.5 billion, or 94.8%, respectively, over prior and year-ago quarters, demonstrating the Corporation's success in shifting the deposit mix and lowering funding costs.
Average investments decreased $33.0 million, or 1.01%, compared with the third quarter of 2010 and increased $488.8 million, or 17.78% compared with the fourth quarter of 2009. The increase in the fourth quarter of 2010 average investments compared with the year-ago quarter, is due to the purchase of $575.0 million of securities in the first quarter of 2010 as a result of the First Bank acquisition.
Net interest income on a fully tax-equivalent ("FTE") basis was $130.0 million in the fourth quarter 2010 compared with $125.5 million in the third quarter of 2010 and $89.2 million in the fourth quarter of 2009.
Noninterest income net of securities transactions for the fourth quarter of 2010 was $54.2 million, a decrease of $0.9 million, or 1.66%, from the third quarter of 2010 and an increase of $3.4 million, or 6.69%, from the fourth quarter of 2009.
Other income, net of securities gains, as a percentage of net revenue for the fourth quarter of 2010 was 29.42% compared with 30.50% for third quarter of 2010 and 36.28% for the fourth quarter of 2009. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.
Noninterest expense for the fourth quarter of 2010 was $122.5 million, an increase of $1.8 million, or 1.48%, from the third quarter of 2010 and an increase of $27.6 million, or 29.05%, from the fourth quarter of 2009. One-time expenses associated with data processing conversions and related expenses for acquisitions totaled $3.7 million in the fourth quarter of 2010.
During the fourth quarter of 2010, the Corporation reported an efficiency ratio of 65.95%, compared with 66.26% for the third quarter of 2010 and 67.74% for the fourth quarter of 2009.
Net charge-offs totaled $21.7 million, or 1.25% of average loans in the fourth quarter of 2010, excluding acquired loans, compared with $19.9 million, or 1.17% of average loans, in the third quarter 2010 and $31.2 million, or 1.79% of average loans, in the fourth quarter of 2009.
Nonperforming assets totaled $123.5 million at December 31, 2010, an increase of $8.2 million, or 7.14%, compared with September 30, 2010. Nonperforming assets at December 31, 2010 represented 1.78% of period-end loans plus other real estate compared with 1.70% at September 30, 2010 and 1.48% at December 31, 2009.
The allowance for noncovered loan losses totaled $114.7 million at December 31, 2010. At December 31, 2010, the allowance for noncovered loan losses was 1.65% of period-end loans compared with 1.72% at September 30, 2010 and 1.68% at December 31, 2009. 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 1.78% at December 31, 2010 compared with 1.84% at September 30, 2010 and 1.77% at December 31, 2009. The allowance for credit losses to nonperforming loans was 118.01% at December 31, 2010, compared with 118.49% at September 30, 2010 and 131.82% at December 31, 2009.
The Corporation's total assets at December 31, 2010 were $14.1 billion, a decrease of $216.6 million, or 1.51%, compared with September 30, 2010 and an increase of $3.6 billion, or 34.13%, compared with December 31, 2009. The primary increase in total assets compared with December 31, 2009 is attributed to the three 2010 acquisitions that increased total loans, including a loss share receivable of $288.6 million, by $2.8 billion as of December 31, 2010.
Total deposits were $11.3 billion at December 31, 2010, a decrease of $3.4 million, or 0.03%, from September 30, 2010 and an increase of $3.8 billion, or 49.92%, from December 31, 2009. The increase in total deposits over December 31, 2009 was driven by the Corporation's expansion strategy in Chicago. Core deposits totaled $8.5 billion at December 31, 2010, an increase of $407.3 million, or 5.05% from September 30, 2010 and an increase of $2.3 billion, or 37.61%, from December 31, 2009. Deposit retention rates for the three acquired Chicago institutions at December 31, 2010, are as follows: First Bank, 94.9%; George Washington, 96.8%; and Midwest, 91.1% (excluding brokered certificate of deposits, Certificate of Deposit Account Registry Services balances and internet certificate of deposits).
Shareholders' equity was $1.51 billion at December 31, 2010, compared with $1.52 billion at September 30, 2010, and $1.07 billion at December 31, 2009. The Corporation maintained a strong capital position as tangible common equity to assets was 7.46% at December 31, 2010, compared with 7.41% at September 30, 2010 and 8.89% at December 31, 2009. The common cash dividend per share paid in the fourth quarter 2010 was $0.16.
Mr. Greig said, "Our dedication to disciplined capital management has allowed us to maintain one of the strongest balance sheets in the industry and has provided us with the ability to generate positive returns for our shareholders throughout the economic downturn."
Acquisitions and Integration
The First Bank, George Washington and Midwest acquisitions were considered business combinations and accounted for under FASB Accounting Standard Codification 805, Business Combinations (ASC 805). All acquired assets and liabilities were recorded at their estimated fair values as of the date of acquisition and identifiable intangible assets were recorded at their estimated fair value. Estimated fair values are considered preliminary and, in accordance with ASC 805, are subject to change up to one year after the acquisition date. This allows for adjustments to the initial purchase entries if additional information relative to closing date fair values becomes available, and we continue to analyze our estimates of the fair values of the assets acquired and the liabilities assumed. Material adjustments to acquisition date estimated fair values are recorded in the period in which the acquisition occurred and, as a result, previously reported results are subject to change. Certain reclassifications of prior periods' amounts may also be made to conform to the current period's presentation and would have no effect on previously reported net income amounts.
During the quarter ended December 31, 2010, we obtained additional information that resulted in changes to certain acquisition-data fair value estimates relating to the Midwest acquisition. These purchase accounting adjustments have resulted in an increase to goodwill of approximately $18.7 million which was recognized for the Midwest acquisition in the quarter ended June 30, 2010. Prior period amounts appropriately reflect these adjustments.
Fourth Quarter 2010 Conference Call
FirstMerit (Nasdaq: FMER) senior management will host an earnings conference call on February 1, 2011 at 2:00 p.m. (Eastern Time) to provide an overview of fourth quarter results and highlights. To participate in the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 39868207. A replay of the conference call will be available at approximately 5:00 p.m. (Eastern Time) on February 1, 2011 through February 14, 2011 by dialing (800) 642-1687, and entering the PIN: 39868207.
About FirstMerit Corporation
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $14.1 billion as of December 31, 2010 and 207 banking offices and 220 ATMs in Ohio, Western Pennsylvania, and Chicago areas. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal wholly-owned subsidiaries include: FirstMerit Bank, N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd., and FirstMerit Community Development Corporation.
Subsequent Events
The Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the December 31, 2010 consolidated financial statements on Form 10-K. As a result, the Corporation will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of December 31, 2010 and will adjust amounts preliminarily reported, if necessary.
Forward-Looking Statement
This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Corporation, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, continued softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Corporation's business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
FirstMerit Corporation |
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Analysts: Thomas O'Malley/Investor Relations Officer |
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Phone: 330.384.7109 |
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Media Contact: Robert Townsend/Media Relations Officer |
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Phone: 330.384.7075 |
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FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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Consolidated Financial Highlights |
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(Unaudited) |
Quarters |
|||||||||||
(Dollars in thousands) |
||||||||||||
2010 |
2010 |
2010 |
2010 |
2009 |
||||||||
EARNINGS |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
|||||||
Net interest income FTE (a) |
$ |
129,971 |
$ |
125,514 |
$ |
118,817 |
$ |
92,348 |
$ |
89,171 |
||
Provision for noncovered loan losses |
19,816 |
18,108 |
20,366 |
25,493 |
29,960 |
|||||||
Provision for covered loan losses |
3,572 |
593 |
- |
- |
- |
|||||||
Other income |
54,311 |
55,135 |
53,209 |
49,900 |
52,701 |
|||||||
Other expenses |
122,452 |
120,670 |
105,723 |
94,013 |
94,885 |
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FTE adjustment (a) |
2,107 |
2,021 |
2,050 |
1,954 |
1,793 |
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Net income |
27,030 |
28,996 |
31,493 |
15,390 |
14,478 |
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Diluted EPS |
0.25 |
0.27 |
0.32 |
0.18 |
0.17 |
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PERFORMANCE RATIOS |
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Return on average assets (ROA) |
0.74% |
0.79% |
0.94% |
0.55% |
0.54% |
|||||||
Return on average common equity (ROE) |
7.04% |
7.60% |
11.21% |
5.71% |
5.38% |
|||||||
Net interest margin FTE (a) |
4.14% |
3.96% |
4.02% |
3.72% |
3.64% |
|||||||
Efficiency ratio |
65.95% |
66.26% |
61.30% |
65.93% |
67.74% |
|||||||
Number of full-time equivalent employees |
3,058 |
3,093 |
3,095 |
2,723 |
2,495 |
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MARKET DATA |
||||||||||||
Book value/common share |
$ |
13.86 |
$ |
13.95 |
$ |
13.87 |
$ |
12.69 |
$ |
12.25 |
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Period-end common share mkt value |
19.79 |
18.32 |
17.13 |
21.57 |
20.14 |
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Market as a % of book |
143% |
131% |
124% |
170% |
164% |
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Cash dividends/common share |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
$ |
0.16 |
||
Common stock dividend payout ratio |
64.41% |
60.03% |
50.00% |
88.89% |
94.12% |
|||||||
Average basic common shares |
108,807 |
108,793 |
98,968 |
87,771 |
86,149 |
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Average diluted common shares |
108,808 |
108,794 |
98,969 |
87,777 |
86,157 |
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Period end common shares |
108,817 |
108,803 |
108,786 |
90,810 |
87,004 |
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Common shares repurchased |
9 |
4 |
46 |
115 |
35 |
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Common stock market capitalization |
$ |
2,153,479 |
$ |
1,993,276 |
$ |
1,863,504 |
$ |
1,958,772 |
$ |
1,752,261 |
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ASSET QUALITY (excluding acquired loans) |
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Gross charge-offs |
$ |
27,553 |
$ |
25,817 |
$ |
24,967 |
$ |
26,195 |
$ |
34,232 |
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Net charge-offs |
21,654 |
19,923 |
19,829 |
22,779 |
31,220 |
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Allowance for noncovered loan losses |
114,690 |
116,528 |
118,343 |
117,806 |
115,092 |
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Reserve for unfunded lending commitments |
8,849 |
7,864 |
6,812 |
6,337 |
5,751 |
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Nonperforming assets (NPAs) (b) |
123,502 |
115,267 |
109,781 |
123,320 |
101,001 |
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Net charge-offs/average loans ratio (b) |
1.25% |
1.17% |
1.15% |
1.36% |
1.79% |
|||||||
Allowance for noncovered loan losses/period-end loans (b) |
1.65% |
1.72% |
1.75% |
1.72% |
1.68% |
|||||||
Allowance for credit losses/period-end loans (b) |
1.78% |
1.84% |
1.85% |
1.82% |
1.77% |
|||||||
NPAs/loans and other real estate (b) |
1.78% |
1.70% |
1.62% |
1.80% |
1.48% |
|||||||
Allowance for noncovered loan losses/nonperforming loans |
109.56% |
111.00% |
119.62% |
105.14% |
125.55% |
|||||||
Allowance for credit losses/nonperforming loans |
118.01% |
118.49% |
126.51% |
110.80% |
131.82% |
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CAPITAL & LIQUIDITY |
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Period-end tangible common equity to assets |
7.46% |
7.41% |
7.23% |
7.91% |
8.89% |
|||||||
Average equity to assets |
10.51% |
10.38% |
8.40% |
9.63% |
10.11% |
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Average equity to total loans (c) |
17.15% |
16.93% |
13.68% |
15.39% |
15.37% |
|||||||
Average total loans to deposits (c) |
78.00% |
78.25% |
77.73% |
85.18% |
93.94% |
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AVERAGE BALANCES |
||||||||||||
Assets |
$ |
14,492,149 |
$ |
14,586,207 |
$ |
13,424,825 |
$ |
11,357,110 |
$ |
10,559,231 |
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Deposits |
11,388,423 |
11,425,740 |
10,600,401 |
8,340,796 |
7,397,592 |
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Loans, excluding acquired loans (c) |
6,868,222 |
6,781,123 |
6,810,582 |
6,812,647 |
6,932,566 |
|||||||
Acquired loans, including covered loans (c) |
2,014,361 |
2,160,075 |
1,429,388 |
291,651 |
16,419 |
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Earning assets |
12,466,629 |
12,579,486 |
11,860,439 |
10,076,565 |
9,714,193 |
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Shareholders' equity |
1,523,078 |
1,513,527 |
1,127,017 |
1,093,568 |
1,068,013 |
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ENDING BALANCES |
||||||||||||
Assets |
$ |
14,136,908 |
$ |
14,353,515 |
$ |
14,520,554 |
$ |
12,324,589 |
$ |
10,539,902 |
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Deposits |
11,268,006 |
11,271,416 |
11,515,171 |
9,370,009 |
7,515,796 |
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Loans, excluding acquired loans (c) |
6,937,142 |
6,776,098 |
6,779,941 |
6,836,451 |
6,835,425 |
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Acquired loans, including covered loans (c) |
1,953,093 |
2,119,504 |
2,244,737 |
533,888 |
88,064 |
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Goodwill |
479,099 |
479,099 |
479,099 |
187,945 |
139,598 |
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Intangible assets |
10,411 |
11,416 |
12,422 |
5,659 |
1,158 |
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Earning assets |
12,427,936 |
12,507,979 |
12,680,627 |
10,775,434 |
9,685,155 |
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Total shareholders' equity |
1,507,715 |
1,517,892 |
1,505,345 |
1,152,721 |
1,065,627 |
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NOTES: |
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(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. |
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(b) - As required by current accounting guidance, the acquired loans and other real estate from First Bank, George Washington Savings Bank and Midwest Bank & Trust Company were recorded at fair value with no carryover of the related allowances. The ratio of our allowance for loan and credit losses and NPAs do not include these loans and other real estate. |
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(c) - Excludes loss share receivable of $289 million, $318.4 million, $319.8 million and $88.0 million as of December 31, 2010, September 30, 2010, June 30, 2010 and March 31, 2010, respectively. |
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FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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CONSOLIDATED BALANCE SHEETS |
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(Dollars in thousands) |
December 31, |
|||||||
(Unaudited, except December 31, 2009, which is derived from the audited financial statements) |
2010 |
2009 |
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ASSETS |
||||||||
Cash and due from banks |
$ |
523,113 |
$ |
161,033 |
||||
Investment securities |
||||||||
Held-to-maturity |
59,962 |
50,686 |
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Available-for-sale |
2,987,040 |
2,565,264 |
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Other investments |
160,752 |
128,888 |
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Loans held for sale |
41,340 |
16,828 |
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Noncovered loans: |
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Commercial loans |
4,527,497 |
4,066,522 |
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Mortgage loans |
403,843 |
463,416 |
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Installment loans |
1,308,860 |
1,425,373 |
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Home equity loans |
749,378 |
753,112 |
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Credit card loans |
149,506 |
153,525 |
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Leases |
63,004 |
61,541 |
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Total noncovered loans |
7,202,088 |
6,923,489 |
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Allowance for noncovered loan losses |
(114,690) |
(115,092) |
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Net noncovered loans |
7,087,398 |
6,808,397 |
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Covered loans (includes loss share receivable of $289 million) |
1,976,754 |
- |
||||||
Allowance for covered loan losses |
(13,733) |
- |
||||||
Net loans covered |
1,963,021 |
- |
||||||
Net loans |
9,050,419 |
6,808,397 |
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Premises and equipment, net |
197,866 |
125,205 |
||||||
Goodwill |
479,099 |
139,598 |
||||||
Intangible assets |
10,411 |
1,158 |
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Other real estate covered by FDIC loss share |
54,710 |
- |
||||||
Accrued interest receivable and other assets |
572,196 |
542,845 |
||||||
Total assets |
$ |
14,136,908 |
$ |
10,539,902 |
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LIABILITIES AND SHAREHOLDERS' EQUITY |
||||||||
Deposits: |
||||||||
Demand-non-interest bearing |
$ |
2,790,550 |
$ |
2,069,921 |
||||
Demand-interest bearing |
868,404 |
677,448 |
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Savings and money market accounts |
4,811,784 |
3,408,109 |
||||||
Certificates and other time deposits |
2,797,268 |
1,360,318 |
||||||
Total deposits |
11,268,006 |
7,515,796 |
||||||
Federal funds purchased and securities sold under agreements to repurchase |
777,585 |
996,345 |
||||||
Wholesale borrowings |
326,007 |
740,105 |
||||||
Accrued taxes, expenses, and other liabilities |
257,595 |
222,029 |
||||||
Total liabilities |
12,629,193 |
9,474,275 |
||||||
Commitments and contingencies |
||||||||
Shareholders' equity: |
||||||||
Preferred stock, without par value: |
||||||||
authorized and unissued 7,000,000 shares |
- |
- |
||||||
Preferred stock, Series A, without par value: |
||||||||
designated 800,000 shares; none outstanding |
- |
- |
||||||
Convertible preferred stock, Series B, without par value: |
||||||||
designated 220,000 shares; none outstanding |
- |
- |
||||||
Common stock, without par value; authorized 300,000,000 shares; issued 115,121,731 and 93,633,871 at December 31, 2010 and 2009, respectively |
127,937 |
127,937 |
||||||
Capital surplus |
485,567 |
88,573 |
||||||
Accumulated other comprehensive loss |
(26,103) |
(25,459) |
||||||
Retained earnings |
1,080,900 |
1,043,625 |
||||||
Treasury stock, at cost, 6,305,218 and 6,629,995 shares, at December 31, 2010 and 2009, respectively |
(160,586) |
(169,049) |
||||||
Total shareholders' equity |
1,507,715 |
1,065,627 |
||||||
Total liabilities and shareholders' equity |
$ |
14,136,908 |
$ |
10,539,902 |
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FIRSTMERIT CORPORATION AND SUBSIDIARIES |
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AVERAGE CONSOLIDATED BALANCE SHEETS |
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Quarterly Periods |
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(Unaudited) |
|||||||||||
(Dollars in thousands) |
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
||||||
2010 |
2010 |
2010 |
2010 |
2009 |
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ASSETS |
|||||||||||
Cash and due from banks |
$ |
809,828 |
$ |
821,713 |
$ |
762,781 |
$ |
521,666 |
$ |
167,608 |
|
Investment securities |
|||||||||||
Held-to-maturity |
64,287 |
63,364 |
64,650 |
56,322 |
43,228 |
||||||
Available-for-sale |
3,012,983 |
3,049,056 |
3,131,787 |
2,731,639 |
2,577,759 |
||||||
Other investments |
160,756 |
158,591 |
179,735 |
129,658 |
128,214 |
||||||
Loans held for sale |
39,174 |
21,659 |
18,827 |
14,538 |
16,007 |
||||||
Noncovered loans: |
|||||||||||
Commercial loans |
4,445,691 |
4,336,631 |
4,376,274 |
4,197,663 |
4,058,851 |
||||||
Mortgage loans |
403,334 |
421,087 |
438,243 |
454,525 |
472,829 |
||||||
Installment loans |
1,331,130 |
1,363,248 |
1,377,748 |
1,402,552 |
1,449,091 |
||||||
Home equity loans |
754,270 |
762,626 |
763,943 |
757,094 |
756,478 |
||||||
Credit card loans |
146,744 |
146,863 |
145,880 |
150,117 |
151,233 |
||||||
Leases |
62,115 |
58,223 |
59,049 |
60,430 |
60,503 |
||||||
Total noncovered loans |
7,143,284 |
7,088,678 |
7,161,137 |
7,022,381 |
6,948,985 |
||||||
Covered loans and loss share receivable |
2,046,145 |
2,198,138 |
1,304,303 |
122,027 |
- |
||||||
Total loans |
9,189,429 |
9,286,816 |
8,465,440 |
7,144,408 |
6,948,985 |
||||||
Less: allowance for loan losses |
119,924 |
113,062 |
116,436 |
115,031 |
113,438 |
||||||
Net loans |
9,069,505 |
9,173,754 |
8,349,004 |
7,029,377 |
6,835,547 |
||||||
Total earning assets |
12,466,629 |
12,579,486 |
11,860,439 |
10,076,565 |
9,714,193 |
||||||
Premises and equipment, net |
195,915 |
172,712 |
167,009 |
141,405 |
126,073 |
||||||
Accrued interest receivable and other assets |
1,139,701 |
1,125,358 |
751,032 |
732,505 |
664,795 |
||||||
TOTAL ASSETS |
$ |
14,492,149 |
$ |
14,586,207 |
$ |
13,424,825 |
$ |
11,357,110 |
$ |
10,559,231 |
|
LIABILITIES |
|||||||||||
Deposits: |
|||||||||||
Demand-non-interest bearing |
$ |
2,816,850 |
$ |
2,730,483 |
$ |
2,496,826 |
$ |
2,146,969 |
$ |
2,028,977 |
|
Demand-interest bearing |
857,960 |
858,168 |
775,031 |
687,233 |
651,381 |
||||||
Savings and money market accounts |
4,710,682 |
4,502,779 |
4,278,756 |
3,709,246 |
3,175,825 |
||||||
Certificates and other time deposits |
3,002,931 |
3,334,311 |
3,049,788 |
1,797,348 |
1,541,409 |
||||||
Total deposits |
11,388,423 |
11,425,741 |
10,600,401 |
8,340,796 |
7,397,592 |
||||||
Federal funds purchased and securities sold under agreements to repurchase |
904,163 |
928,607 |
843,652 |
951,927 |
1,076,199 |
||||||
Wholesale borrowings |
368,397 |
443,890 |
526,963 |
708,414 |
762,023 |
||||||
Total funds |
12,660,983 |
12,798,238 |
11,971,016 |
10,001,137 |
9,235,814 |
||||||
Accrued taxes, expenses and other liabilities |
308,088 |
274,442 |
326,792 |
262,405 |
255,404 |
||||||
Total liabilities |
12,969,071 |
13,072,680 |
12,297,808 |
10,263,542 |
9,491,218 |
||||||
SHAREHOLDERS' EQUITY |
|||||||||||
Preferred stock |
- |
- |
- |
- |
- |
||||||
Common stock |
127,937 |
127,937 |
127,937 |
127,937 |
127,937 |
||||||
Common stock warrant |
- |
- |
- |
- |
- |
||||||
Capital surplus |
485,126 |
484,197 |
127,143 |
106,350 |
74,213 |
||||||
Accumulated other comprehensive loss |
(9,867) |
(2,332) |
(15,913) |
(20,593) |
(9,266) |
||||||
Retained earnings |
1,080,809 |
1,065,001 |
1,051,308 |
1,049,774 |
1,047,097 |
||||||
Treasury stock |
(160,927) |
(161,276) |
(163,458) |
(169,900) |
(171,968) |
||||||
Total shareholders' equity |
1,523,078 |
1,513,527 |
1,127,017 |
1,093,568 |
1,068,013 |
||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY |
$ |
14,492,149 |
$ |
14,586,207 |
$ |
13,424,825 |
$ |
11,357,110 |
$ |
10,559,231 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS |
|||||||||||||
Fully Tax-equivalent Interest Rates and Interest Differential |
|||||||||||||
Three months ended |
Three months ended |
||||||||||||
December 31, 2010 |
December 31, 2009 |
||||||||||||
(Unaudited) |
Average |
Average |
Average |
Average |
|||||||||
(Dollars in thousands) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ |
809,828 |
$ |
167,608 |
|||||||||
Investment securities and federal funds sold: |
|||||||||||||
U.S. Treasury securities and U.S. Government |
|||||||||||||
agency obligations (taxable) |
2,579,880 |
19,337 |
2.97% |
2,224,704 |
23,348 |
4.16% |
|||||||
Obligations of states and political subdivisions (tax |
|||||||||||||
exempt) |
352,330 |
5,073 |
5.71% |
331,098 |
5,021 |
6.02% |
|||||||
Other securities and federal funds sold |
305,816 |
2,158 |
2.80% |
193,399 |
1,799 |
3.69% |
|||||||
Total investment securities and federal |
|||||||||||||
funds sold |
3,238,026 |
26,568 |
3.26% |
2,749,201 |
30,168 |
4.35% |
|||||||
Loans held for sale |
39,174 |
470 |
4.76% |
16,007 |
204 |
5.06% |
|||||||
Noncovered loans, covered loans and loss share |
|||||||||||||
receivable |
9,189,429 |
121,434 |
5.24% |
6,948,985 |
81,762 |
4.67% |
|||||||
Total earning assets |
12,466,629 |
148,472 |
4.72% |
9,714,193 |
112,134 |
4.58% |
|||||||
Allowance for loan losses |
(119,924) |
(113,438) |
|||||||||||
Other assets |
1,335,616 |
790,868 |
|||||||||||
Total assets |
$ |
14,492,149 |
$ |
10,559,231 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits: |
|||||||||||||
Demand - non-interest bearing |
$ |
2,816,850 |
- |
- |
$ |
2,028,977 |
- |
- |
|||||
Demand - interest bearing |
857,960 |
198 |
0.09% |
651,381 |
149 |
0.09% |
|||||||
Savings and money market accounts |
4,710,682 |
8,145 |
0.69% |
3,175,825 |
6,880 |
0.86% |
|||||||
Certificates and other time deposits |
3,002,931 |
7,209 |
0.95% |
1,541,409 |
8,413 |
2.17% |
|||||||
Total deposits |
11,388,423 |
15,552 |
0.54% |
7,397,592 |
15,442 |
0.83% |
|||||||
Securities sold under agreements to repurchase |
904,163 |
960 |
0.42% |
1,076,199 |
1,268 |
0.47% |
|||||||
Wholesale borrowings |
368,397 |
1,989 |
2.14% |
762,023 |
6,253 |
3.26% |
|||||||
Total interest bearing liabilities |
9,844,133 |
18,501 |
0.75% |
7,206,837 |
22,963 |
1.26% |
|||||||
Other liabilities |
308,088 |
255,404 |
|||||||||||
Shareholders' equity |
1,523,078 |
1,068,013 |
|||||||||||
Total liabilities and shareholders' equity |
$ |
14,492,149 |
$ |
10,559,231 |
|||||||||
Net yield on earning assets |
$ |
12,466,629 |
129,971 |
4.14% |
$ |
9,714,193 |
89,171 |
3.64% |
|||||
Interest rate spread |
3.98% |
3.32% |
|||||||||||
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. |
|||||||||||||
FIRST MERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS |
|||||||||||||
Fully Tax-equivalent Interest Rates and Interest Differential |
|||||||||||||
Twelve months ended |
Twelve months ended |
||||||||||||
December 31, 2010 |
December 31, 2009 |
||||||||||||
(Unaudited) |
Average |
Average |
Average |
Average |
|||||||||
(Dollars in thousands) |
Balance |
Interest |
Rate |
Balance |
Interest |
Rate |
|||||||
ASSETS |
|||||||||||||
Cash and due from banks |
$ |
728,723 |
$ |
183,215 |
|||||||||
Investment securities and federal funds sold: |
|||||||||||||
U.S. Treasury securities and U.S. Government agency obligations (taxable) |
2,554,538 |
87,019 |
3.41% |
2,222,771 |
97,871 |
4.40% |
|||||||
Obligations of states and political subdivisions (tax |
|||||||||||||
exempt) |
348,832 |
20,505 |
5.88% |
321,919 |
19,718 |
6.13% |
|||||||
Other securities and federal funds sold |
300,700 |
8,508 |
2.83% |
204,272 |
8,394 |
4.11% |
|||||||
Total investment securities and federal |
|||||||||||||
funds sold |
3,204,070 |
116,032 |
3.62% |
2,748,962 |
125,983 |
4.58% |
|||||||
Loans held for sale |
23,612 |
1,162 |
4.92% |
19,289 |
1,032 |
5.35% |
|||||||
Noncovered loans, covered loans and loss share receivable |
8,529,303 |
433,308 |
5.08% |
7,156,983 |
339,381 |
4.74% |
|||||||
Total earning assets |
11,756,985 |
550,502 |
4.68% |
9,925,234 |
466,396 |
4.70% |
|||||||
Allowance for loan losses |
(116,118) |
(108,017) |
|||||||||||
Other assets |
1,153,192 |
793,062 |
|||||||||||
Total assets |
$ |
13,522,782 |
$ |
10,793,494 |
|||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY |
|||||||||||||
Deposits: |
|||||||||||||
Demand - non-interest bearing |
$ |
2,550,849 |
- |
0.00% |
$ |
1,910,171 |
- |
0.00% |
|||||
Demand - interest bearing |
794,497 |
751 |
0.09% |
656,367 |
600 |
0.09% |
|||||||
Savings and money market accounts |
4,303,815 |
31,912 |
0.74% |
2,886,842 |
23,472 |
0.81% |
|||||||
Certificates and other time deposits |
2,801,270 |
32,713 |
1.17% |
2,056,208 |
54,610 |
2.66% |
|||||||
Total deposits |
10,450,431 |
65,376 |
0.63% |
7,509,588 |
78,682 |
1.05% |
|||||||
Securities sold under agreements to repurchase |
907,015 |
4,477 |
0.49% |
1,013,167 |
4,764 |
0.47% |
|||||||
Wholesale borrowings |
510,799 |
13,998 |
2.74% |
952,979 |
27,317 |
2.87% |
|||||||
Total interest bearing liabilities |
9,317,396 |
83,851 |
0.90% |
7,565,563 |
110,763 |
1.46% |
|||||||
Other liabilities |
338,916 |
267,835 |
|||||||||||
Shareholders' equity |
1,315,621 |
1,049,925 |
|||||||||||
Total liabilities and shareholders' equity |
$ |
13,522,782 |
$ |
10,793,494 |
|||||||||
Net yield on earning assets |
$ |
11,756,985 |
466,651 |
3.97% |
$ |
9,925,234 |
355,633 |
3.58% |
|||||
Interest rate spread |
3.78% |
3.24% |
|||||||||||
Note: Interest income on tax-exempt securities and loans has been adjusted to a fully-taxable equivalent basis. |
|||||||||||||
Nonaccrual loans have been included in the average balances. |
|||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME |
|||||||||||||||
(Unaudited) |
Quarters ended |
Twelve months ended |
|||||||||||||
(Dollars in thousands except per share data) |
December 31, |
December 31, |
|||||||||||||
2010 |
2009 |
2010 |
2009 |
||||||||||||
Interest income: |
|||||||||||||||
Interest and fees on loans, including held for sale |
$ |
121,651 |
$ |
81,907 |
$ |
433,763 |
$ |
340,236 |
|||||||
Investment securities |
|||||||||||||||
Taxable |
21,495 |
25,146 |
95,527 |
106,265 |
|||||||||||
Tax-exempt |
3,219 |
3,288 |
13,080 |
13,026 |
|||||||||||
Total investment securities interest |
24,714 |
28,434 |
108,607 |
119,291 |
|||||||||||
Total interest income |
146,365 |
110,341 |
542,370 |
459,527 |
|||||||||||
Interest expense: |
|||||||||||||||
Interest on deposits: |
|||||||||||||||
Demand-interest bearing |
198 |
149 |
751 |
600 |
|||||||||||
Savings and money market accounts |
8,145 |
6,880 |
31,912 |
23,472 |
|||||||||||
Certificates and other time deposits |
7,209 |
8,413 |
32,713 |
54,610 |
|||||||||||
Interest on securities sold under agreements to repurchase |
960 |
1,268 |
4,477 |
4,764 |
|||||||||||
Interest on wholesale borrowings |
1,989 |
6,253 |
13,998 |
27,317 |
|||||||||||
Total interest expense |
18,501 |
22,963 |
83,851 |
110,763 |
|||||||||||
Net interest income |
127,864 |
87,378 |
458,519 |
348,764 |
|||||||||||
Provision for noncovered loan losses |
19,816 |
29,960 |
83,783 |
98,433 |
|||||||||||
Provision for covered loan losses |
3,572 |
- |
4,432 |
- |
|||||||||||
Net interest income after provision for loan losses |
104,476 |
57,418 |
370,304 |
250,331 |
|||||||||||
Other income: |
|||||||||||||||
Trust department income |
5,627 |
5,374 |
21,951 |
20,683 |
|||||||||||
Service charges on deposits |
15,938 |
16,568 |
65,900 |
63,366 |
|||||||||||
Credit card fees |
12,678 |
12,049 |
49,010 |
46,512 |
|||||||||||
ATM and other service fees |
2,910 |
2,730 |
11,259 |
11,110 |
|||||||||||
Bank owned life insurance income |
3,192 |
4,524 |
14,949 |
13,740 |
|||||||||||
Investment services and insurance |
2,300 |
2,322 |
9,451 |
10,008 |
|||||||||||
Investment securities gains, net |
146 |
1,934 |
855 |
6,037 |
|||||||||||
Loan sales and servicing income |
9,221 |
2,947 |
19,440 |
12,954 |
|||||||||||
Gain on George Washington acquisition |
- |
- |
1,041 |
- |
|||||||||||
Gain on post medical retirement curtailment |
- |
- |
- |
9,543 |
|||||||||||
Other operating income |
2,299 |
4,253 |
18,700 |
16,348 |
|||||||||||
Total other income |
54,311 |
52,701 |
212,556 |
210,301 |
|||||||||||
Other expenses: |
|||||||||||||||
Salaries, wages, pension and employee benefits |
62,331 |
45,748 |
221,316 |
175,906 |
|||||||||||
Net occupancy expense |
9,236 |
5,631 |
32,665 |
24,099 |
|||||||||||
Equipment expense |
7,549 |
6,445 |
27,664 |
24,301 |
|||||||||||
Stationery, supplies and postage |
3,183 |
2,414 |
11,438 |
8,907 |
|||||||||||
Bankcard, loan processing and other costs |
7,810 |
8,215 |
31,572 |
31,467 |
|||||||||||
Professional services |
7,731 |
6,098 |
29,357 |
16,414 |
|||||||||||
Amortization of intangibles |
1,006 |
87 |
2,914 |
347 |
|||||||||||
FDIC expense |
4,342 |
3,160 |
17,790 |
16,510 |
|||||||||||
Other operating expense |
19,264 |
17,087 |
68,144 |
54,866 |
|||||||||||
Total other expenses |
122,452 |
94,885 |
442,860 |
352,817 |
|||||||||||
Income before federal income tax expense |
36,335 |
15,234 |
140,000 |
107,815 |
|||||||||||
Federal income tax expense |
9,305 |
756 |
37,091 |
25,645 |
|||||||||||
Net income |
$ |
27,030 |
$ |
14,478 |
$ |
102,909 |
$ |
82,170 |
|||||||
Other comprehensive income, net of taxes |
|||||||||||||||
Unrealized securities' holding gain (loss), net of taxes |
$ |
(21,560) |
$ |
(9,880) |
$ |
(555) |
$ |
38,994 |
|||||||
Unrealized hedging loss, net of taxes |
- |
- |
- |
(94) |
|||||||||||
Less: reclassification adjustment for securities' gain realized in |
|||||||||||||||
income, net of taxes |
95 |
2,618 |
556 |
3,924 |
|||||||||||
Minimum pension liability adjustment, net of taxes |
467 |
3,899 |
467 |
3,068 |
|||||||||||
Total other comprehensive gain (loss), net of taxes |
(21,188) |
(8,599) |
(644) |
38,044 |
|||||||||||
Comprehensive income |
$ |
5,842 |
$ |
5,879 |
$ |
102,265 |
$ |
120,214 |
|||||||
Net income applicable to common shares |
$ |
27,030 |
$ |
14,478 |
$ |
102,909 |
$ |
75,799 |
|||||||
Net income used in diluted EPS calculation |
$ |
27,030 |
$ |
14,478 |
$ |
102,909 |
$ |
75,799 |
|||||||
Weighted average number of common shares outstanding - basic |
108,807 |
86,149 |
101,163 |
84,678 |
|||||||||||
Weighted average number of common shares outstanding - diluted |
108,808 |
86,157 |
101,165 |
84,686 |
|||||||||||
Basic earnings per share |
$ |
0.25 |
$ |
0.17 |
$ |
1.02 |
$ |
0.90 |
|||||||
Diluted earnings per share |
$ |
0.25 |
$ |
0.17 |
$ |
1.02 |
$ |
0.90 |
|||||||
Stock dividend per share |
0.00% |
0.00% |
0.00% |
0.73% |
|||||||||||
Dividend per share |
$ |
0.16 |
$ |
0.16 |
$ |
0.64 |
$ |
0.77 |
|||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME---LINKED QUARTERS |
|||||||||||
Quarterly Results |
|||||||||||
(Unaudited) |
2010 |
2010 |
2010 |
2010 |
2009 |
||||||
(Dollars in thousands, except share data) |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
||||||
Interest and fees on loans, including held for sale |
$ |
121,651 |
$ |
118,543 |
$ |
109,924 |
$ |
83,645 |
$ |
81,907 |
|
Interest and dividends - securities and federal funds sold |
24,714 |
26,794 |
28,890 |
28,209 |
28,434 |
||||||
Total interest income |
146,365 |
145,337 |
138,814 |
111,854 |
110,341 |
||||||
Interest on deposits: |
|||||||||||
Demand-interest bearing |
198 |
252 |
149 |
152 |
149 |
||||||
Savings and money market accounts |
8,145 |
8,294 |
7,873 |
7,601 |
6,880 |
||||||
Certificates and other time deposits |
7,209 |
9,588 |
9,510 |
6,406 |
8,413 |
||||||
Securities sold under agreements to repurchase |
960 |
986 |
1,404 |
1,127 |
1,268 |
||||||
Wholesale borrowings |
1,989 |
2,724 |
3,111 |
6,174 |
6,253 |
||||||
Total interest expense |
18,501 |
21,844 |
22,047 |
21,460 |
22,963 |
||||||
Net interest income |
127,864 |
123,493 |
116,767 |
90,394 |
87,378 |
||||||
Provision for noncovered loan losses |
19,816 |
18,108 |
20,366 |
25,493 |
29,960 |
||||||
Provision for covered loan losses |
3,572 |
593 |
267 |
- |
- |
||||||
Net interest income after provision for loan losses |
104,476 |
104,791 |
96,134 |
64,901 |
57,418 |
||||||
Other income: |
|||||||||||
Trust department income |
5,627 |
5,469 |
5,574 |
5,281 |
5,374 |
||||||
Service charges on deposits |
15,938 |
16,859 |
17,737 |
15,366 |
16,568 |
||||||
Credit card fees |
12,678 |
12,532 |
12,242 |
11,558 |
12,049 |
||||||
ATM and other service fees |
2,910 |
2,996 |
2,844 |
2,509 |
2,730 |
||||||
Bank owned life insurance income |
3,192 |
3,219 |
2,886 |
5,652 |
4,524 |
||||||
Investment services and insurance |
2,300 |
2,688 |
2,535 |
1,928 |
2,322 |
||||||
Investment securities gains, net |
146 |
58 |
651 |
- |
1,934 |
||||||
Loan sales and servicing income |
9,221 |
4,006 |
2,975 |
3,237 |
2,947 |
||||||
Gain on George Washington acquisition |
- |
- |
- |
1,041 |
- |
||||||
Other operating income |
2,299 |
7,308 |
5,765 |
3,328 |
4,253 |
||||||
Total other income |
54,311 |
55,135 |
53,209 |
49,900 |
52,701 |
||||||
Other expenses: |
|||||||||||
Salaries, wages, pension and employee benefits |
62,331 |
58,930 |
51,899 |
48,156 |
45,748 |
||||||
Net occupancy expense |
9,236 |
8,608 |
7,680 |
7,140 |
5,631 |
||||||
Equipment expense |
7,549 |
7,330 |
6,735 |
6,050 |
6,445 |
||||||
Stationery, supplies and postage |
3,183 |
2,865 |
2,696 |
2,693 |
2,414 |
||||||
Bankcard, loan processing and other costs |
7,810 |
8,281 |
7,663 |
7,818 |
8,215 |
||||||
Professional services |
7,731 |
8,544 |
7,845 |
5,237 |
6,098 |
||||||
Amortization of intangibles |
1,006 |
1,006 |
669 |
234 |
87 |
||||||
FDIC expense |
4,342 |
5,267 |
4,416 |
3,765 |
3,160 |
||||||
Other operating expense |
19,264 |
19,840 |
16,120 |
12,920 |
17,087 |
||||||
Total other expenses |
122,452 |
120,670 |
105,723 |
94,013 |
94,885 |
||||||
Income before income tax expense |
36,335 |
39,257 |
43,620 |
20,788 |
15,234 |
||||||
Federal income taxes |
9,305 |
10,261 |
12,127 |
5,398 |
756 |
||||||
Net income |
$ |
27,030 |
$ |
28,996 |
$ |
31,493 |
$ |
15,390 |
$ |
14,478 |
|
Other comprehensive income (loss), net of taxes |
(21,188) |
(398) |
16,466 |
4,476 |
(18,022) |
||||||
Comprehensive income |
$ |
5,842 |
$ |
28,598 |
$ |
47,959 |
$ |
19,866 |
$ |
(3,544) |
|
Net income applicable to common shares |
$ |
27,030 |
$ |
28,996 |
$ |
31,493 |
$ |
15,390 |
$ |
14,478 |
|
Adjusted net income used in diluted EPS calculation |
$ |
27,030 |
$ |
28,996 |
$ |
31,493 |
$ |
15,390 |
$ |
14,478 |
|
Weighted-average common shares - basic |
108,807 |
108,793 |
98,968 |
87,771 |
86,149 |
||||||
Weighted-average common shares - diluted |
108,808 |
108,794 |
98,969 |
87,777 |
86,157 |
||||||
Basic net income per share |
$ |
0.25 |
$ |
0.27 |
$ |
0.32 |
$ |
0.18 |
$ |
0.17 |
|
Diluted net income per share |
$ |
0.25 |
$ |
0.27 |
$ |
0.32 |
$ |
0.18 |
$ |
0.17 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||||
ASSET QUALITY INFORMATION |
|||||||||||||
(Unaudited, except December 31, 2009 annual period which |
|||||||||||||
is derived from the audited financial statements) |
|||||||||||||
(Dollars in thousands, except ratios) |
Quarterly Periods |
Annual Period |
|||||||||||
December 31, |
September 30, |
June 30, |
March 31, |
December 31, |
December 31, |
||||||||
2010 |
2010 |
2010 |
2010 |
2009 |
2009 |
||||||||
Allowance for Credit Losses |
|||||||||||||
Allowance for noncovered loan losses, beginning of period |
$ |
116,528 |
$ |
118,343 |
$ |
117,806 |
$ |
115,092 |
$ |
116,352 |
$ |
103,757 |
|
Provision for noncovered loan losses |
19,816 |
18,108 |
20,366 |
25,493 |
29,960 |
98,433 |
|||||||
Charge-offs |
27,553 |
25,817 |
24,967 |
26,195 |
34,232 |
99,713 |
|||||||
Recoveries |
5,899 |
5,894 |
5,138 |
3,416 |
3,012 |
12,615 |
|||||||
Net charge-offs |
21,654 |
19,923 |
19,829 |
22,779 |
31,220 |
87,098 |
|||||||
Allowance for noncovered loan losses, end of period |
$ |
114,690 |
$ |
116,528 |
$ |
118,343 |
$ |
117,806 |
$ |
115,092 |
$ |
115,092 |
|
Reserve for unfunded lending commitments, |
|||||||||||||
beginning of period |
$ |
7,864 |
$ |
6,812 |
$ |
6,337 |
$ |
5,751 |
$ |
4,470 |
$ |
6,588 |
|
Provision for credit losses |
985 |
1,052 |
475 |
586 |
1,281 |
(837) |
|||||||
Reserve for unfunded lending commitments, |
|||||||||||||
end of period |
$ |
8,849 |
$ |
7,864 |
$ |
6,812 |
$ |
6,337 |
$ |
5,751 |
$ |
5,751 |
|
Allowance for Credit Losses |
$ |
123,539 |
$ |
124,392 |
$ |
125,155 |
$ |
124,143 |
$ |
120,843 |
$ |
120,843 |
|
Ratios (a) |
|||||||||||||
Provision for loan losses as a % of average loans |
1.14% |
1.06% |
1.20% |
1.52% |
1.71% |
1.38% |
|||||||
Provision for credit losses as a % of average loans |
0.06% |
0.06% |
0.03% |
0.03% |
0.07% |
-0.01% |
|||||||
Net charge-offs as a % of average loans |
1.25% |
1.17% |
1.15% |
1.36% |
1.79% |
1.22% |
|||||||
Allowance for loan losses as a % of period-end loans |
1.65% |
1.72% |
1.75% |
1.72% |
1.68% |
1.58% |
|||||||
Allowance for credit losses as a % of period-end loans |
1.78% |
1.84% |
1.85% |
1.82% |
1.77% |
1.66% |
|||||||
Allowance for loan losses as a % of nonperforming loans |
109.56% |
111.00% |
119.62% |
105.14% |
125.55% |
125.55% |
|||||||
Allowance for credit losses as a % of nonperforming loans |
118.01% |
118.49% |
126.51% |
110.80% |
131.82% |
131.82% |
|||||||
Asset Quality (a) |
|||||||||||||
Impaired loans: |
|||||||||||||
Nonaccrual |
$ |
89,828 |
$ |
91,646 |
$ |
84,535 |
$ |
94,798 |
$ |
74,033 |
$ |
74,033 |
|
Other nonperforming loans: |
|||||||||||||
Nonaccrual |
14,859 |
13,331 |
14,394 |
17,245 |
17,639 |
17,639 |
|||||||
Total nonperforming loans |
104,687 |
104,977 |
98,929 |
112,043 |
91,672 |
91,672 |
|||||||
Other real estate ("ORE") |
18,815 |
10,290 |
10,852 |
11,277 |
9,329 |
9,329 |
|||||||
Total nonperforming assets ("NPAs") |
$ |
123,502 |
$ |
115,267 |
$ |
109,781 |
$ |
123,320 |
$ |
101,001 |
$ |
101,001 |
|
NPAs as % of period-end loans + ORE |
1.78% |
1.70% |
1.62% |
1.80% |
1.48% |
1.39% |
|||||||
Past due 90 days or more & accruing interest |
$ |
22,017 |
$ |
36,895 |
$ |
36,932 |
$ |
21,099 |
$ |
35,025 |
$ |
35,025 |
|
(a) Excludes acquired loans and loss share receivable with a period end balance of $2.3 billion, $2.5 billion, $2.6 billion and $.6 million at December 31, 2010, September 30, 2010, June 30,2010 and March 31, 2010, respectively, and ORE covered by an FDIC loss share with a period end balance of $54.7 million, $53.5 million, $50.5 million and $22.8 million at December 31, 2010, September 30, 2010, June 30, 2010, and March 31, 2010, respectively, which, as required by current accounting guidance, were recorded at fair value on the date of acquisition. |
|||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||||
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL |
|||||||||||
(Unaudited) |
|||||||||||
(Dollars in thousands) |
|||||||||||
2010 |
2010 |
2010 |
2010 |
2009 |
|||||||
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
|||||||
QUARTERLY OTHER INCOME DETAIL |
|||||||||||
Trust department income |
$ |
5,627 |
$ |
5,469 |
$ |
5,574 |
$ |
5,281 |
$ |
5,374 |
|
Service charges on deposits |
15,938 |
16,859 |
17,737 |
15,366 |
16,568 |
||||||
Credit card fees |
12,678 |
12,532 |
12,242 |
11,558 |
12,049 |
||||||
ATM and other service fees |
2,910 |
2,996 |
2,844 |
2,509 |
2,730 |
||||||
Bank owned life insurance income |
3,192 |
3,219 |
2,886 |
5,652 |
4,524 |
||||||
Investment services and insurance |
2,300 |
2,688 |
2,535 |
1,928 |
2,322 |
||||||
Investment securities gains, net |
146 |
58 |
651 |
- |
1,934 |
||||||
Loan sales and servicing income |
9,221 |
4,006 |
2,975 |
3,237 |
2,947 |
||||||
Gain on George Washington acquisition |
- |
- |
- |
1,041 |
- |
||||||
Other operating income |
2,299 |
7,308 |
5,765 |
3,328 |
4,253 |
||||||
Total Other Income |
$ |
54,311 |
$ |
55,135 |
$ |
53,209 |
$ |
49,900 |
$ |
52,701 |
|
2010 |
2010 |
2010 |
2010 |
2009 |
|||||||
QUARTERLY OTHER EXPENSES DETAIL |
4th Qtr |
3rd Qtr |
2nd Qtr |
1st Qtr |
4th Qtr |
||||||
Salaries, wages, pension and employee benefits |
$ |
62,331 |
$ |
58,930 |
$ |
51,899 |
$ |
48,156 |
$ |
45,748 |
|
Net occupancy expense |
9,236 |
8,608 |
7,680 |
7,140 |
5,631 |
||||||
Equipment expense |
7,549 |
7,330 |
6,735 |
6,050 |
6,445 |
||||||
Taxes, other than federal income taxes |
2,021 |
1,680 |
2,236 |
1,938 |
1,593 |
||||||
Stationery, supplies and postage |
3,183 |
2,865 |
2,696 |
2,693 |
2,414 |
||||||
Bankcard, loan processing and other costs |
7,810 |
8,281 |
7,663 |
7,818 |
8,215 |
||||||
Advertising |
3,094 |
2,488 |
2,407 |
1,592 |
1,510 |
||||||
Professional services |
7,731 |
8,544 |
7,845 |
5,237 |
6,098 |
||||||
Telephone |
1,579 |
1,561 |
1,267 |
1,133 |
1,039 |
||||||
Amortization of intangibles |
1,006 |
1,006 |
669 |
234 |
87 |
||||||
Hedge termination |
- |
- |
- |
- |
3,877 |
||||||
FDIC expense |
4,342 |
5,267 |
4,416 |
3,765 |
3,160 |
||||||
Other operating expense |
12,570 |
14,110 |
10,210 |
8,257 |
9,068 |
||||||
Total Other Expenses |
$ |
122,452 |
$ |
120,670 |
$ |
105,723 |
$ |
94,013 |
$ |
94,885 |
|
FIRSTMERIT CORPORATION AND SUBSIDIARIES |
|||||||||
ALLOWANCE FOR LOAN LOSSES NONCOVERED - Net Charge-off Detail |
|||||||||
(Unaudited) |
|||||||||
(Dollars in thousands) |
Quarters ended |
Year ended |
|||||||
December 31, |
December 31, |
||||||||
2010 |
2009 |
2010 |
2009 |
||||||
Allowance for noncovered loan losses - beginning of period |
$ |
116,528 |
$ |
116,352 |
$ |
115,092 |
$ |
103,757 |
|
Loans charged off: |
|||||||||
Commercial |
13,225 |
17,793 |
39,766 |
39,685 |
|||||
Mortgage |
962 |
1,267 |
5,156 |
4,960 |
|||||
Installment |
8,665 |
8,562 |
34,054 |
31,622 |
|||||
Home equity |
1,158 |
2,257 |
7,912 |
7,200 |
|||||
Credit cards |
2,497 |
3,511 |
13,577 |
13,558 |
|||||
Leases |
204 |
94 |
896 |
97 |
|||||
Overdrafts |
842 |
748 |
3,171 |
2,591 |
|||||
Total |
27,553 |
34,232 |
104,532 |
99,713 |
|||||
Recoveries: |
|||||||||
Commercial |
647 |
369 |
1,952 |
890 |
|||||
Mortgage |
62 |
10 |
263 |
270 |
|||||
Installment |
4,003 |
1,802 |
13,047 |
8,329 |
|||||
Home equity |
417 |
199 |
1,599 |
494 |
|||||
Credit cards |
518 |
421 |
2,199 |
1,710 |
|||||
Manufactured housing |
34 |
49 |
156 |
171 |
|||||
Leases |
27 |
4 |
267 |
57 |
|||||
Overdrafts |
191 |
158 |
864 |
694 |
|||||
Total |
5,899 |
3,012 |
20,347 |
12,615 |
|||||
Net charge-offs |
21,654 |
31,220 |
84,185 |
87,098 |
|||||
Provision for noncovered loan losses |
19,816 |
29,960 |
83,783 |
98,433 |
|||||
Allowance for noncovered loan losses-end of period |
$ |
114,690 |
$ |
115,092 |
$ |
114,690 |
$ |
115,092 |
|
Average loans (a) |
$ |
6,868,222 |
$ |
6,932,566 |
$ |
6,818,962 |
$ |
7,152,845 |
|
Ratio to average loans (a): |
|||||||||
(Annualized) net charge-offs |
1.25% |
1.79% |
1.23% |
1.22% |
|||||
Provision for loan losses |
1.14% |
1.71% |
1.23% |
1.38% |
|||||
Loans, period-end (a) |
$ |
6,937,142 |
$ |
6,835,425 |
6,937,142 |
$ |
6,835,425 |
||
Allowance for credit losses (a): |
$ |
123,539 |
$ |
120,843 |
$ |
123,539 |
$ |
120,843 |
|
As a multiple of (annualized) net charge-offs |
1.44 |
0.98 |
1.47 |
1.39 |
|||||
Allowance for noncovered loan losses (a): |
|||||||||
As a percent of period-end noncovered loans |
1.65% |
1.68% |
1.65% |
1.68% |
|||||
As a multiple of (annualized) net noncovered charge-offs |
1.34 |
0.93 |
1.36 |
1.32 |
|||||
(a) Excludes acquired loans and loss share receivable. |
|||||||||
SOURCE FirstMerit Corporation
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