Ohio | 001-11267 | 34-1339938 | ||
(State or Other Jurisdiction of Incorporation) | (Commission File Number) | (IRS Employer Identification No.) |
III Cascade Plaza, 7th Floor Akron, Ohio | 44308 | |||
(Address of Principal Executive Offices) | (Zip Code) |
(330) 996-6300 |
• | Profitability Sustained: 66th consecutive quarter of profitability. |
• | Loan growth continued: Total loan growth of $94.2 million, or 0.60% from the prior quarter. |
• | Credit quality remained solid: Net charge-offs to average originated loans of 0.24%. |
• | Balance sheet remained strong: Strong tangible common equity ratio1 at 8.31%. |
Change 3Q 2015 vs. | |||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
(Dollars in thousands, except per share amounts) | 3rd qtr | 2nd qtr | 3rd qtr | 2nd qtr | 3rd qtr | ||||||||
Net interest income TE 1 | $ | 189,119 | $ | 189,018 | $ | 197,644 | 0.05 | % | (4.31 | )% | |||
Diluted earnings per common share | 0.34 | 0.33 | 0.37 | 3.03 | (8.11 | ) | |||||||
Net interest margin on TE basis1 | 3.33 | % | 3.39 | % | 3.60 | % | |||||||
Return on average assets | 0.93 | 0.90 | 1.03 | ||||||||||
Return on average common equity | 8.05 | 7.85 | 9.03 | ||||||||||
Return on average tangible common equity 1 | 11.69 | 11.44 | 13.41 | ||||||||||
Change 3Q 2015 vs. | |||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
(Dollars in thousands) | 3rd qtr | 2nd qtr | 3rd qtr | 2nd qtr | 3rd qtr | ||||||||
Trust department income | $ | 10,948 | $ | 10,820 | $ | 10,300 | 1.18 | % | 6.29 | % | |||
Service charges on deposits | 17,295 | 16,704 | 18,684 | 3.54 | (7.43 | ) | |||||||
Credit card fees | 13,939 | 14,124 | 13,754 | (1.31 | ) | 1.35 | |||||||
ATM and other service fees | 6,518 | 6,345 | 6,182 | 2.73 | 5.44 | ||||||||
Bank owned life insurance income | 4,622 | 3,697 | 4,218 | 25.02 | 9.58 | ||||||||
Investment services and insurance | 4,032 | 3,871 | 3,606 | 4.16 | 11.81 | ||||||||
Investment securities gains/(losses), net | 41 | 567 | 14 | (92.77 | ) | 192.86 | |||||||
Loan sales and servicing income | 2,414 | 3,276 | 4,740 | (26.31 | ) | (49.07 | ) | ||||||
Other operating income | 11,617 | 7,178 | 8,235 | 61.84 | 41.07 | ||||||||
Total noninterest income | $ | 71,426 | $ | 66,582 | $ | 69,733 | 7.28 | % | 2.43 | % | |||
Noninterest income, excluding net securities gains, as a percentage of net revenue1 | 27.40 | % | 25.88 | % | 26.08 | % | |||||||
Change 3Q 2015 vs. | |||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
(Dollars in thousands) | 3rd qtr | 2nd qtr | 3rd qtr | 2nd qtr | 3rd qtr | ||||||||
Salaries and wages | $ | 68,775 | $ | 67,485 | $ | 71,769 | 1.91 | % | (4.17 | )% | |||
Pension and employee benefits | 16,997 | 18,535 | 18,824 | (8.30 | )% | (9.71 | )% | ||||||
Net occupancy expense | 13,540 | 13,727 | 13,887 | (1.36 | )% | (2.50 | )% | ||||||
Equipment expense | 12,235 | 12,592 | 12,188 | (2.84 | )% | 0.39 | % | ||||||
Taxes, other than federal income taxes | 2,003 | 2,032 | 1,286 | (1.43 | )% | 55.75 | % | ||||||
Stationary, supplies and postage | 3,304 | 3,370 | 3,723 | (1.96 | )% | (11.25 | )% | ||||||
Bankcard, loan processing and other costs | 12,335 | 12,461 | 11,151 | (1.01 | )% | 10.62 | % | ||||||
Advertising | 4,278 | 3,103 | 3,942 | 37.87 | % | 8.52 | % | ||||||
Professional services | 5,154 | 5,358 | 5,270 | (3.81 | )% | (2.20 | )% | ||||||
Telephone | 2,480 | 2,599 | 2,831 | (4.58 | )% | (12.40 | )% | ||||||
Amortization of intangibles | 2,598 | 2,598 | 2,933 | — | % | (11.42 | )% | ||||||
FDIC expense | 5,234 | 5,077 | 2,988 | 3.09 | % | 75.17 | % | ||||||
Other operating expenses | 11,809 | 12,737 | 12,353 | (7.29 | )% | (4.40 | )% | ||||||
Total noninterest expense | $ | 160,742 | $ | 161,674 | $ | 163,145 | (0.58 | )% | (1.47 | )% | |||
Efficiency ratio1 | 60.71 | % | 62.37 | % | 59.92 | % | |||||||
Change 3Q 2015 vs. | |||||||||||||
2015 | 2015 | 2014 | 2015 | 2014 | |||||||||
(Dollars in thousands) | 3rd qtr | 2nd qtr | 3rd qtr | 2nd qtr | 3rd qtr | ||||||||
Net charge-offs | $ | 8,029 | $ | 6,672 | $ | 5,929 | 20.34 | % | 35.42 | % | |||
Net charge-offs on average originated loans | 0.24 | % | 0.20 | % | 0.20 | % | |||||||
Nonperforming loans at period end | $ | 47,036 | $ | 55,142 | $ | 34,617 | (14.70 | )% | 19.62 | % | |||
Nonperforming assets at period end | $ | 107,058 | $ | 117,311 | $ | 63,119 | (8.74 | )% | 69.61 | % | |||
Allowance for loan losses | 104,055 | 101,682 | 90,883 | 2.33 | % | 14.49 | % | ||||||
Allowance for loan losses to nonperforming loans | 221.22 | % | 184.40 | % | 231.13 | % | |||||||
Provision for originated loan losses | $ | 10,402 | $ | 10,809 | $ | 4,862 | (3.77 | )% | 113.94 | % | |||
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | ||||||||||||||||
Quarters | ||||||||||||||||
(unaudited) | 2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
(Dollars in thousands) | 3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | |||||||||||
Net interest income (GAAP) | $ | 185,323 | $ | 185,118 | $ | 185,623 | $ | 192,511 | $ | 193,578 | ||||||
Plus: | Fully taxable-equivalent adjustment | 3,796 | 3,900 | 3,931 | 3,998 | 4,066 | ||||||||||
Net interest income on a fully taxable-equivalent basis (non-GAAP) | 189,119 | 189,018 | 189,554 | 196,509 | 197,644 | |||||||||||
Average earning assets | 22,548,977 | 22,352,721 | 22,100,417 | 21,920,889 | 21,804,243 | |||||||||||
Net interest margin on a fully taxable-equivalent basis (non-GAAP) | 3.33 | % | 3.39 | % | 3.48 | % | 3.56 | % | 3.60 | % |
Reconciliation of noninterest income and noninterest expense to adjusted noninterest income and adjusted noninterest expense | ||||||||||||||||
Quarters | ||||||||||||||||
(unaudited) | 2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
(Dollars in thousands) | 3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | |||||||||||
Noninterest expense (GAAP) | $ | 160,742 | $ | 161,674 | $ | 160,652 | $ | 165,041 | $ | 163,145 | ||||||
Less: | Intangible asset amortization | 2,598 | 2,598 | 2,598 | 2,933 | 2,933 | ||||||||||
Adjusted noninterest expense (non-GAAP) | 158,144 | 159,076 | 158,054 | 162,108 | 160,212 | |||||||||||
Noninterest income (GAAP) | 71,426 | 66,582 | 65,847 | 71,960 | 69,733 | |||||||||||
Less: | Securities gains/(losses) | 41 | 567 | 354 | 16 | 14 | ||||||||||
Adjusted noninterest income (non-GAAP) | 71,385 | 66,015 | 65,493 | 71,944 | 69,719 | |||||||||||
Net interest income on a fully taxable-equivalent basis (non-GAAP) | 189,119 | 189,018 | 189,554 | 196,509 | 197,644 | |||||||||||
Adjusted revenue (non-GAAP) | 260,504 | 255,033 | 255,047 | 268,453 | 267,363 | |||||||||||
Efficiency ratio (non-GAAP) | 60.71 | % | 62.37 | % | 61.97 | % | 60.39 | % | 59.92 | % |
Reconciliation of shareholders' equity to tangible common equity, and total assets to tangible assets | ||||||||||||||||
Quarters | ||||||||||||||||
(unaudited) | 2015 | 2015 | 2015 | 2014 | 2014 | |||||||||||
(Dollars in thousands, except per share amounts) | 3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | |||||||||||
Shareholders’ equity (GAAP) | $ | 2,937,300 | $ | 2,887,957 | $ | 2,888,786 | $ | 2,834,281 | $ | 2,820,431 | ||||||
Less: | Preferred stock | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||
Common shareholders' equity (non-GAAP) | 2,837,300 | 2,787,957 | 2,788,786 | 2,734,281 | 2,720,431 | |||||||||||
Less: | Intangible assets | 63,226 | 65,824 | 68,422 | 71,020 | 73,953 | ||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | 741,740 | 741,740 | |||||||||||
Tangible common equity (non-GAAP) | 2,032,334 | 1,980,393 | 1,978,624 | 1,921,521 | 1,904,738 | |||||||||||
Total assets (GAAP) | $ | 25,246,917 | $ | 25,297,014 | $ | 25,118,120 | $ | 24,902,347 | $ | 24,608,207 | ||||||
Less: | Intangible assets | 63,226 | 65,824 | 68,422 | 71,020 | 73,953 | ||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | 741,740 | 741,740 | |||||||||||
Tangible assets (non-GAAP) | $ | 24,441,951 | $ | 24,489,450 | $ | 24,307,958 | $ | 24,089,587 | $ | 23,792,514 | ||||||
Period end common shares | 165,759 | 165,773 | 165,453 | 165,390 | 165,384 | |||||||||||
Tangible book value per common share | $ | 12.26 | $ | 11.95 | $ | 11.96 | $ | 11.62 | $ | 11.52 | ||||||
Tangible common equity to tangible assets ratio (non-GAAP) | 8.31 | % | 8.09 | % | 8.14 | % | 7.98 | % | 8.01 | % |
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | Quarters | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||
3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | |||||||||||
EARNINGS | |||||||||||||||
Net interest income TE (1) | $ | 189,119 | $ | 189,018 | $ | 189,554 | $ | 196,509 | $ | 197,644 | |||||
TE adjustment (1) | 3,796 | 3,900 | 3,931 | 3,998 | 4,066 | ||||||||||
Provision for originated loan losses | 10,402 | 10,809 | 6,036 | 8,662 | 4,862 | ||||||||||
Provision/(recapture) for acquired loan losses | 144 | (952 | ) | 2,214 | 3,407 | 4,411 | |||||||||
Provision/(recapture) for FDIC acquired loan losses | 3,729 | (891 | ) | (2 | ) | 1,228 | (81 | ) | |||||||
Noninterest income | 71,426 | 66,582 | 65,847 | 71,960 | 69,733 | ||||||||||
Noninterest expense | 160,742 | 161,674 | 160,652 | 165,041 | 163,145 | ||||||||||
Net income | 59,012 | 56,584 | 57,139 | 61,079 | 63,898 | ||||||||||
Diluted EPS (3) | 0.34 | 0.33 | 0.33 | 0.36 | 0.37 | ||||||||||
PERFORMANCE RATIOS | |||||||||||||||
Return on average assets (ROA) | 0.93 | % | 0.90 | % | 0.93 | % | 0.98 | % | 1.03 | % | |||||
Return on average equity (ROE) | 8.05 | % | 7.85 | % | 8.08 | % | 8.50 | % | 9.03 | % | |||||
Return on average tangible common equity (1) | 11.69 | % | 11.44 | % | 11.85 | % | 12.52 | % | 13.41 | % | |||||
Net interest margin TE (1) | 3.33 | % | 3.39 | % | 3.48 | % | 3.56 | % | 3.60 | % | |||||
Efficiency ratio (1) | 60.71 | % | 62.37 | % | 61.97 | % | 60.39 | % | 59.92 | % | |||||
Number of full-time equivalent employees | 3,961 | 4,017 | 4,103 | 4,273 | 4,302 | ||||||||||
MARKET DATA | |||||||||||||||
Book value per common share | $ | 17.72 | $ | 17.42 | $ | 17.46 | $ | 17.14 | $ | 17.05 | |||||
Tangible book value per common share (1) | 12.26 | 11.95 | 11.96 | 11.62 | 11.52 | ||||||||||
Period end common share market value | 17.67 | 20.83 | 19.06 | 18.89 | 17.62 | ||||||||||
Market as a % of book | 100 | % | 120 | % | 109 | % | 110 | % | 103 | % | |||||
Cash dividends per common share | $ | 0.17 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||
Common Stock dividend payout ratio | 50.00 | % | 48.48 | % | 48.48 | % | 44.44 | % | 43.24 | % | |||||
Average basic common shares | 165,762 | 165,736 | 165,411 | 165,395 | 165,389 | ||||||||||
Average diluted common shares | 166,058 | 166,277 | 166,003 | 165,974 | 165,804 | ||||||||||
Period end common shares | 165,759 | 165,773 | 165,453 | 165,390 | 165,384 | ||||||||||
Common shares repurchased | 20 | 211 | 66 | 15 | 10 | ||||||||||
Common Stock market capitalization | $ | 2,928,962 | $ | 3,453,052 | $ | 3,153,534 | $ | 3,124,217 | $ | 2,914,066 | |||||
ASSET QUALITY (excluding acquired, FDIC acquired loans and covered OREO) (2) | |||||||||||||||
Gross charge-offs | $ | 13,398 | $ | 11,298 | $ | 8,567 | $ | 9,205 | $ | 11,410 | |||||
Net charge-offs | 8,029 | 6,672 | 4,187 | 3,849 | 5,929 | ||||||||||
Allowance for originated loan losses | 104,055 | 101,682 | 97,545 | 95,696 | 90,883 | ||||||||||
Reserve for unfunded lending commitments | 3,574 | 3,905 | 4,330 | 5,848 | 6,966 | ||||||||||
Nonperforming assets (NPAs) | 107,058 | 117,311 | 68,606 | 55,038 | 63,119 | ||||||||||
Net charge-offs to average loans ratio | 0.24 | % | 0.20 | % | 0.13 | % | 0.12 | % | 0.20 | % | |||||
Allowance for originated loan losses to period-end loans | 0.76 | % | 0.76 | % | 0.76 | % | 0.77 | % | 0.75 | % | |||||
Allowance for credit losses to period-end loans | 0.79 | % | 0.79 | % | 0.79 | % | 0.81 | % | 0.81 | % | |||||
NPAs to loans and other real estate | 0.78 | % | 0.87 | % | 0.53 | % | 0.44 | % | 0.52 | % | |||||
Allowance for originated loan losses to nonperforming loans | 221.22 | % | 184.40 | % | 211.66 | % | 276.44 | % | 231.13 | % | |||||
Allowance for credit losses to nonperforming loans | 228.82 | % | 191.48 | % | 221.06 | % | 293.34 | % | 248.85 | % | |||||
CAPITAL & LIQUIDITY | |||||||||||||||
Period end tangible common equity to assets (1) | 8.31 | % | 8.09 | % | 8.14 | % | 7.98 | % | 8.01 | % | |||||
Average equity to assets | 11.54 | % | 11.51 | % | 11.51 | % | 11.55 | % | 11.42 | % | |||||
Average equity to total loans | 18.48 | % | 18.59 | % | 18.60 | % | 18.67 | % | 18.58 | % | |||||
Average total loans to deposits | 78.91 | % | 79.06 | % | 77.86 | % | 78.47 | % | 77.36 | % | |||||
AVERAGE BALANCES | |||||||||||||||
Assets | $ | 25,217,856 | $ | 25,129,859 | $ | 24,905,094 | $ | 24,664,987 | $ | 24,583,776 | |||||
Deposits | 19,957,586 | 19,682,662 | 19,788,925 | 19,450,647 | 19,531,800 | ||||||||||
Originated loans | 13,528,268 | 13,092,972 | 12,689,791 | 12,306,171 | 11,814,314 | ||||||||||
Acquired loans, including FDIC acquired loans, less loss share receivable | 2,219,488 | 2,468,035 | 2,717,884 | 2,956,867 | 3,295,547 | ||||||||||
Earning assets | 22,548,977 | 22,352,721 | 22,100,417 | 21,920,889 | 21,804,243 | ||||||||||
Shareholders' equity | 2,909,660 | 2,892,432 | 2,866,362 | 2,849,618 | 2,807,886 | ||||||||||
ENDING BALANCES | |||||||||||||||
Assets | $ | 25,246,917 | $ | 25,297,014 | $ | 25,118,120 | $ | 24,902,347 | $ | 24,608,207 | |||||
Deposits | 19,821,916 | 19,673,850 | 19,925,595 | 19,504,665 | 19,366,911 | ||||||||||
Originated loans | 13,648,325 | 13,355,912 | 12,856,037 | 12,493,812 | 12,071,759 | ||||||||||
Acquired loans, including FDIC acquired loans, less loss share receivable | 2,140,029 | 2,337,378 | 2,614,847 | 2,810,302 | 3,139,521 | ||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | 741,740 | 741,740 | ||||||||||
Intangible assets | 63,226 | 65,824 | 68,422 | 71,020 | 73,953 | ||||||||||
Earning assets | 22,661,171 | 22,599,272 | 22,395,343 | 22,153,552 | 21,930,840 | ||||||||||
Total shareholders' equity | 2,937,300 | 2,887,957 | 2,888,786 | 2,834,281 | 2,820,431 | ||||||||||
NOTES: | |||||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(In thousands, except per share amounts) | September 30, | December 31, | September 30, | |||||||||||
(Unaudited, except December 31, 2014, which is derived from the audited financial statements) | 2015 | 2014 | 2014 | |||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 357,397 | $ | 480,998 | $ | 429,699 | ||||||||
Interest-bearing deposits in banks | 54,190 | 216,426 | 55,629 | |||||||||||
Total cash and cash equivalents | 411,587 | 697,424 | 485,328 | |||||||||||
Investment securities: | ||||||||||||||
Held-to-maturity | 2,728,638 | 2,903,609 | 3,002,262 | |||||||||||
Available-for-sale | 3,925,724 | 3,545,288 | 3,462,990 | |||||||||||
Other investments | 147,955 | 148,654 | 148,421 | |||||||||||
Loans held for sale | 5,384 | 13,428 | 19,512 | |||||||||||
Loans | 15,799,280 | 15,326,147 | 15,242,026 | |||||||||||
Allowance for loan losses | (153,450 | ) | (143,649 | ) | (140,077 | ) | ||||||||
Net loans | 15,645,830 | 15,182,498 | 15,101,949 | |||||||||||
Premises and equipment, net | 311,129 | 332,297 | 318,690 | |||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | |||||||||||
Intangible assets | 63,226 | 71,020 | 73,953 | |||||||||||
Covered other real estate | 1,986 | 49,641 | 51,434 | |||||||||||
Accrued interest receivable and other assets | 1,263,718 | 1,216,748 | 1,201,928 | |||||||||||
Total assets | $ | 25,246,917 | $ | 24,902,347 | $ | 24,608,207 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing | $ | 5,865,255 | $ | 5,786,662 | $ | 5,535,886 | ||||||||
Interest-bearing | 3,335,190 | 3,028,888 | 3,043,952 | |||||||||||
Savings and money market accounts | 8,380,921 | 8,399,612 | 8,396,064 | |||||||||||
Certificates and other time deposits | 2,240,550 | 2,289,503 | 2,391,009 | |||||||||||
Total deposits | 19,821,916 | 19,504,665 | 19,366,911 | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,208,275 | 1,272,591 | 1,273,290 | |||||||||||
Wholesale borrowings | 381,299 | 428,071 | 608,463 | |||||||||||
Long-term debt | 508,947 | 505,192 | 249,933 | |||||||||||
Accrued taxes, expenses, and other liabilities | 389,180 | 357,547 | 289,179 | |||||||||||
Total liabilities | 22,309,617 | 22,068,066 | 21,787,776 | |||||||||||
Shareholders' equity: | ||||||||||||||
5.875% Non-Cumulative Perpetual Preferred stock, Series A, without par value: authorized 115,000 shares; 100,000 issued | 100,000 | 100,000 | 100,000 | |||||||||||
Common stock warrant | — | 3,000 | 3,000 | |||||||||||
Common Stock, without par value; authorized 300,000,000 shares; issued: September 30, 2015, December 31, 2014 and September 30, 2014 - 170,183,515 shares | 127,937 | 127,937 | 127,937 | |||||||||||
Capital surplus | 1,382,714 | 1,393,090 | 1,390,207 | |||||||||||
Accumulated other comprehensive loss | (50,766 | ) | (71,892 | ) | (49,583 | ) | ||||||||
Retained earnings | 1,492,245 | 1,404,717 | 1,371,453 | |||||||||||
Treasury stock, at cost: September 30, 2015 - 4,424,712; December 31, 2014 - 4,793,566 shares; September 30, 2014 - 4,799,239 shares | (114,830 | ) | (122,571 | ) | (122,583 | ) | ||||||||
Total shareholders' equity | 2,937,300 | 2,834,281 | 2,820,431 | |||||||||||
Total liabilities and shareholders' equity | $ | 25,246,917 | $ | 24,902,347 | $ | 24,608,207 | ||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES Period End Loans by Product Type | |||||||||||||||
(Unaudited) | As of September 30, 2015 | ||||||||||||||
(In thousands) | Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | |||||||||||
C&I | $ | 5,521,955 | $ | 274,552 | $ | 38,787 | $ | 5,835,294 | |||||||
CRE | 2,089,533 | 497,690 | 94,531 | 2,681,754 | |||||||||||
Construction | 619,569 | 6,172 | 5,859 | 631,600 | |||||||||||
Leases | 461,642 | — | — | 461,642 | |||||||||||
Total Commercial | 8,692,699 | 778,414 | 139,177 | 9,610,290 | |||||||||||
Mortgage | 673,591 | 341,278 | 36,362 | 1,051,231 | |||||||||||
Installment | 2,899,559 | 611,061 | 2,156 | 3,512,776 | |||||||||||
Home equity | 1,212,084 | 184,211 | 47,370 | 1,443,665 | |||||||||||
Credit card | 170,392 | — | — | 170,392 | |||||||||||
Total Consumer | 4,955,626 | 1,136,550 | 85,888 | 6,178,064 | |||||||||||
Subtotal | 13,648,325 | 1,914,964 | 225,065 | 15,788,354 | |||||||||||
Loss share receivable | — | — | 10,926 | 10,926 | |||||||||||
Total loans | 13,648,325 | 1,914,964 | 235,991 | 15,799,280 | |||||||||||
Allowance for loan losses | (104,055 | ) | (4,199 | ) | (45,196 | ) | (153,450 | ) | |||||||
Net loans | $ | 13,544,270 | $ | 1,910,765 | $ | 190,795 | $ | 15,645,830 | |||||||
As of June 30, 2015 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,471,363 | $ | 337,423 | $ | 38,138 | $ | 5,846,924 | |||||||
CRE | 2,138,373 | 533,945 | 101,808 | 2,774,126 | |||||||||||
Construction | 586,894 | 6,230 | 5,875 | 598,999 | |||||||||||
Leases | 436,702 | — | — | 436,702 | |||||||||||
Total Commercial | 8,633,332 | 877,598 | 145,821 | 9,656,751 | |||||||||||
Mortgage | 653,143 | 358,559 | 38,029 | 1,049,731 | |||||||||||
Installment | 2,720,059 | 659,348 | 2,299 | 3,381,706 | |||||||||||
Home equity | 1,180,802 | 200,179 | 55,545 | 1,436,526 | |||||||||||
Credit card | 168,576 | — | — | 168,576 | |||||||||||
Total Consumer | 4,722,580 | 1,218,086 | 95,873 | 6,036,539 | |||||||||||
Subtotal | 13,355,912 | 2,095,684 | 241,694 | 15,693,290 | |||||||||||
Loss share receivable | — | — | 11,820 | 11,820 | |||||||||||
Total loans | 13,355,912 | 2,095,684 | 253,514 | 15,705,110 | |||||||||||
Allowance for loan losses | (101,682 | ) | (4,950 | ) | (41,627 | ) | (148,259 | ) | |||||||
Net loans | $ | 13,254,230 | $ | 2,090,734 | $ | 211,887 | $ | 15,556,851 | |||||||
As of March 31, 2015 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,317,897 | $ | 420,810 | $ | 42,814 | $ | 5,781,521 | |||||||
CRE | 2,133,017 | 584,072 | 127,908 | 2,844,997 | |||||||||||
Construction | 580,978 | 6,288 | 8,825 | 596,091 | |||||||||||
Leases | 388,873 | — | — | 388,873 | |||||||||||
Total Commercial | 8,420,765 | 1,011,170 | 179,547 | 9,611,482 | |||||||||||
Mortgage | 639,980 | 378,192 | 40,470 | 1,058,642 | |||||||||||
Installment | 2,500,288 | 717,693 | 4,781 | 3,222,762 | |||||||||||
Home equity | 1,134,238 | 217,824 | 65,170 | 1,417,232 | |||||||||||
Credit card | 160,766 | — | — | 160,766 | |||||||||||
Total Consumer | 4,435,272 | 1,313,709 | 110,421 | 5,859,402 | |||||||||||
Subtotal | 12,856,037 | 2,324,879 | 289,968 | 15,470,884 | |||||||||||
Loss share receivable | — | — | 20,005 | 20,005 | |||||||||||
Total loans | 12,856,037 | 2,324,879 | 309,973 | 15,490,889 | |||||||||||
Allowance for loan losses | (97,545 | ) | (7,493 | ) | (41,514 | ) | (146,552 | ) | |||||||
Net loans | $ | 12,758,492 | $ | 2,317,386 | $ | 268,459 | $ | 15,344,337 | |||||||
As of December 31, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,175,201 | $ | 449,254 | $ | 48,837 | $ | 5,673,292 | |||||||
CRE | 2,117,118 | 630,674 | 153,508 | 2,901,300 | |||||||||||
Construction | 537,766 | 6,971 | 9,262 | 553,999 | |||||||||||
Leases | 370,179 | — | — | 370,179 | |||||||||||
Total Commercial | 8,200,264 | 1,086,899 | 211,607 | 9,498,770 | |||||||||||
Mortgage | 625,283 | 394,484 | 41,276 | 1,061,043 | |||||||||||
Installment | 2,393,451 | 764,168 | 4,874 | 3,162,493 | |||||||||||
Home equity | 1,110,336 | 233,629 | 73,365 | 1,417,330 | |||||||||||
Credit card | 164,478 | — | — | 164,478 | |||||||||||
Total Consumer | 4,293,548 | 1,392,281 | 119,515 | 5,805,344 | |||||||||||
Subtotal | 12,493,812 | 2,479,180 | 331,122 | 15,304,114 | |||||||||||
Loss share receivable | — | — | 22,033 | 22,033 | |||||||||||
Total loans | 12,493,812 | 2,479,180 | 353,155 | 15,326,147 | |||||||||||
Allowance for loan losses | (95,696 | ) | (7,457 | ) | (40,496 | ) | (143,649 | ) | |||||||
Net loans | $ | 12,398,116 | $ | 2,471,723 | $ | 312,659 | $ | 15,182,498 | |||||||
As of September 30, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,039,320 | $ | 551,489 | $ | 56,076 | $ | 5,646,885 | |||||||
CRE | 2,119,734 | 710,495 | 192,746 | 3,022,975 | |||||||||||
Construction | 467,112 | 10,260 | 13,497 | 490,869 | |||||||||||
Leases | 339,936 | — | — | 339,936 | |||||||||||
Total Commercial | 7,966,102 | 1,272,244 | 262,319 | 9,500,665 | |||||||||||
Mortgage | 605,998 | 410,065 | 43,672 | 1,059,735 | |||||||||||
Installment | 2,277,533 | 809,820 | 5,148 | 3,092,501 | |||||||||||
Home equity | 1,062,013 | 252,975 | 83,278 | 1,398,266 | |||||||||||
Credit card | 160,113 | — | — | 160,113 | |||||||||||
Total Consumer | 4,105,657 | 1,472,860 | 132,098 | 5,710,615 | |||||||||||
Subtotal | 12,071,759 | 2,745,104 | 394,417 | 15,211,280 | |||||||||||
Loss share receivable | — | — | 30,746 | 30,746 | |||||||||||
Total loans | 12,071,759 | 2,745,104 | 425,163 | 15,242,026 | |||||||||||
Allowance for loan losses | (90,883 | ) | (6,206 | ) | (42,988 | ) | (140,077 | ) | |||||||
Net loans | $ | 11,980,876 | $ | 2,738,898 | $ | 382,175 | $ | 15,101,949 | |||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
Three Months Ended | |||||||||||||||||||
(Unaudited) | September 30, | June 30, | March 31, | December 31, | September 30, | ||||||||||||||
(In thousands) | 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 457,317 | $ | 518,820 | $ | 563,265 | $ | 500,559 | $ | 521,210 | |||||||||
Investment securities: | |||||||||||||||||||
Held-to-maturity | 2,754,001 | 2,806,325 | 2,874,169 | 2,966,127 | 3,029,971 | ||||||||||||||
Available-for-sale | 3,881,959 | 3,816,827 | 3,645,057 | 3,499,528 | 3,460,312 | ||||||||||||||
Other investments | 147,961 | 148,577 | 148,532 | 148,636 | 148,427 | ||||||||||||||
Loans held for sale | 4,929 | 3,631 | 5,478 | 16,708 | 17,433 | ||||||||||||||
Loans | 15,760,127 | 15,577,361 | 15,427,181 | 15,289,890 | 15,148,100 | ||||||||||||||
Less: allowance for loan losses | 147,136 | 146,558 | 144,363 | 138,540 | 140,026 | ||||||||||||||
Net loans | 15,612,991 | 15,430,803 | 15,282,818 | 15,151,350 | 15,008,074 | ||||||||||||||
Total earning assets | 22,548,977 | 22,352,721 | 22,100,417 | 21,920,889 | 21,804,243 | ||||||||||||||
Premises and equipment, net | 313,336 | 320,492 | 322,431 | 321,187 | 317,366 | ||||||||||||||
Accrued interest receivable and other assets | 2,045,362 | 2,084,384 | 2,063,344 | 2,060,892 | 2,080,983 | ||||||||||||||
TOTAL ASSETS | $ | 25,217,856 | $ | 25,129,859 | $ | 24,905,094 | $ | 24,664,987 | $ | 24,583,776 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | $ | 5,897,768 | $ | 5,722,240 | $ | 5,728,763 | $ | 5,706,631 | $ | 5,603,104 | |||||||||
Interest-bearing | 3,353,541 | 3,203,836 | 3,209,285 | 3,021,188 | 3,100,904 | ||||||||||||||
Savings and money market accounts | 8,480,682 | 8,467,845 | 8,542,154 | 8,381,548 | 8,492,172 | ||||||||||||||
Certificates and other time deposits | 2,225,595 | 2,288,741 | 2,308,723 | 2,341,280 | 2,335,620 | ||||||||||||||
Total deposits | 19,957,586 | 19,682,662 | 19,788,925 | 19,450,647 | 19,531,800 | ||||||||||||||
Federal funds purchased and securities sold under | |||||||||||||||||||
agreements to repurchase | 1,109,924 | 1,285,920 | 1,024,863 | 1,241,948 | 1,182,507 | ||||||||||||||
Wholesale borrowings | 377,594 | 393,379 | 350,991 | 450,587 | 438,941 | ||||||||||||||
Long-term debt | 497,566 | 508,744 | 505,275 | 350,535 | 320,387 | ||||||||||||||
Total funds | 21,942,670 | 21,870,705 | 21,670,054 | 21,493,717 | 21,473,635 | ||||||||||||||
Accrued taxes, expenses and other liabilities | 365,526 | 366,722 | 368,678 | 321,652 | 302,255 | ||||||||||||||
Total liabilities | 22,308,196 | 22,237,427 | 22,038,732 | 21,815,369 | 21,775,890 | ||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||
Preferred stock | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||
Common stock warrant | — | 1,385 | 3,000 | 3,000 | 3,000 | ||||||||||||||
Common stock | 127,937 | 127,937 | 127,937 | 127,937 | 127,937 | ||||||||||||||
Capital surplus | 1,380,622 | 1,382,717 | 1,393,682 | 1,391,189 | 1,388,423 | ||||||||||||||
Accumulated other comprehensive loss | (63,402 | ) | (51,571 | ) | (58,025 | ) | (38,827 | ) | (41,963 | ) | |||||||||
Retained earnings | 1,479,181 | 1,447,195 | 1,422,067 | 1,388,661 | 1,352,867 | ||||||||||||||
Treasury stock | (114,678 | ) | (115,231 | ) | (122,299 | ) | (122,342 | ) | (122,378 | ) | |||||||||
Total shareholders' equity | 2,909,660 | 2,892,432 | 2,866,362 | 2,849,618 | 2,807,886 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 25,217,856 | $ | 25,129,859 | $ | 24,905,094 | $ | 24,664,987 | $ | 24,583,776 | |||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES Average Loans by Product Type (Unaudited) | |||||||||||||||
(In thousands) | Three Months Ended September 30, 2015 | ||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,503,191 | $ | 291,727 | $ | 38,332 | $ | 5,833,250 | |||||||
CRE | 2,139,943 | 516,945 | 96,739 | 2,753,627 | |||||||||||
Construction | 599,652 | 6,200 | 5,916 | 611,768 | |||||||||||
Leases | 441,513 | — | — | 441,513 | |||||||||||
Total Commercial | 8,684,299 | 814,872 | 140,987 | 9,640,158 | |||||||||||
Mortgage | 662,909 | 348,863 | 36,809 | 1,048,581 | |||||||||||
Installment | 2,817,221 | 632,789 | 2,227 | 3,452,237 | |||||||||||
Home equity | 1,194,165 | 190,947 | 51,994 | 1,437,106 | |||||||||||
Credit card | 169,674 | — | — | 169,674 | |||||||||||
Total Consumer | 4,843,969 | 1,172,599 | 91,030 | 6,107,598 | |||||||||||
Subtotal | 13,528,268 | 1,987,471 | 232,017 | 15,747,756 | |||||||||||
Loss share receivable | — | — | 12,371 | 12,371 | |||||||||||
Total loans | 13,528,268 | 1,987,471 | 244,388 | 15,760,127 | |||||||||||
Less allowance for loan losses | 102,153 | 4,143 | 40,840 | 147,136 | |||||||||||
Net loans | $ | 13,426,115 | $ | 1,983,328 | $ | 203,548 | $ | 15,612,991 | |||||||
Three Months ended June 30, 2015 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,362,893 | $ | 376,541 | $ | 42,100 | $ | 5,781,534 | |||||||
CRE | 2,156,511 | 554,681 | 112,035 | 2,823,227 | |||||||||||
Construction | 579,249 | 6,258 | 8,082 | 593,589 | |||||||||||
Leases | 408,384 | — | — | 408,384 | |||||||||||
Total Commercial | 8,507,037 | 937,480 | 162,217 | 9,606,734 | |||||||||||
Mortgage | 647,418 | 367,871 | 39,438 | 1,054,727 | |||||||||||
Installment | 2,618,297 | 688,465 | 3,823 | 3,310,585 | |||||||||||
Home equity | 1,156,019 | 209,185 | 59,556 | 1,424,760 | |||||||||||
Credit card | 164,201 | — | — | 164,201 | |||||||||||
Total Consumer | 4,585,935 | 1,265,521 | 102,817 | 5,954,273 | |||||||||||
Subtotal | 13,092,972 | 2,203,001 | 265,034 | 15,561,007 | |||||||||||
Loss share receivable | — | — | 16,354 | 16,354 | |||||||||||
Total loans | 13,092,972 | 2,203,001 | 281,388 | 15,577,361 | |||||||||||
Less allowance for loan losses | 98,529 | 7,434 | 40,595 | 146,558 | |||||||||||
Net loans | $ | 12,994,443 | $ | 2,195,567 | $ | 240,793 | $ | 15,430,803 | |||||||
Three Months Ended March 31, 2015 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,281,194 | $ | 440,103 | $ | 45,307 | $ | 5,766,604 | |||||||
CRE | 2,141,764 | 606,652 | 142,101 | 2,890,517 | |||||||||||
Construction | 556,943 | 6,846 | 9,013 | 572,802 | |||||||||||
Leases | 368,025 | — | — | 368,025 | |||||||||||
Total Commercial | 8,347,926 | 1,053,601 | 196,421 | 9,597,948 | |||||||||||
Mortgage | 631,761 | 386,033 | 40,800 | 1,058,594 | |||||||||||
Installment | 2,424,956 | 742,095 | 4,822 | 3,171,873 | |||||||||||
Home equity | 1,122,988 | 224,444 | 69,669 | 1,417,100 | |||||||||||
Credit card | 162,160 | — | — | 162,160 | |||||||||||
Total Consumer | 4,341,865 | 1,352,572 | 115,291 | 5,809,727 | |||||||||||
Subtotal | 12,689,791 | 2,406,173 | 311,711 | 15,407,675 | |||||||||||
Loss share receivable | — | — | 19,506 | 19,506 | |||||||||||
Total loans | 12,689,791 | 2,406,173 | 331,217 | 15,427,181 | |||||||||||
Less allowance for loan losses | 95,952 | 8,287 | 40,124 | 144,363 | |||||||||||
Net loans | $ | 12,593,839 | $ | 2,397,886 | $ | 291,093 | $ | 15,282,818 | |||||||
Three Months Ended December 31, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 5,112,469 | $ | 491,419 | $ | 49,902 | $ | 5,653,790 | |||||||
CRE | 2,131,879 | 672,099 | 172,327 | 2,976,305 | |||||||||||
Construction | 490,533 | 7,018 | 9,302 | 506,853 | |||||||||||
Leases | 351,222 | — | — | 351,222 | |||||||||||
Total Commercial | 8,086,103 | 1,170,536 | 231,531 | 9,488,170 | |||||||||||
Mortgage | 617,803 | 401,173 | 42,409 | 1,061,385 | |||||||||||
Installment | 2,353,599 | 785,035 | 4,944 | 3,143,578 | |||||||||||
Home equity | 1,087,123 | 242,878 | 78,361 | 1,408,362 | |||||||||||
Credit card | 161,543 | — | — | 161,543 | |||||||||||
Total Consumer | 4,220,068 | 1,429,086 | 125,714 | 5,774,868 | |||||||||||
Subtotal | 12,306,171 | 2,599,622 | 357,245 | 15,263,038 | |||||||||||
Loss share receivable | — | — | 26,852 | 26,852 | |||||||||||
Total loans | 12,306,171 | 2,599,622 | 384,097 | 15,289,890 | |||||||||||
Less allowance for loan losses | 91,178 | 6,203 | 41,159 | 138,540 | |||||||||||
Net loans | $ | 12,214,993 | $ | 2,593,419 | $ | 342,938 | $ | 15,151,350 | |||||||
Three Months Ended September 30, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
C&I | $ | 4,983,014 | $ | 610,765 | $ | 54,075 | $ | 5,647,854 | |||||||
CRE | 2,115,834 | 750,808 | 202,781 | 3,069,423 | |||||||||||
Construction | 436,000 | 11,530 | 14,443 | 461,973 | |||||||||||
Leases | 326,840 | — | — | 326,840 | |||||||||||
Total Commercial | 7,861,688 | 1,373,103 | 271,299 | 9,506,090 | |||||||||||
Mortgage | 594,258 | 416,417 | 44,672 | 1,055,347 | |||||||||||
Installment | 2,171,246 | 838,687 | 5,278 | 3,015,211 | |||||||||||
Home equity | 1,030,256 | 259,867 | 86,224 | 1,376,347 | |||||||||||
Credit card | 156,866 | — | — | 156,866 | |||||||||||
Total Consumer | 3,952,626 | 1,514,971 | 136,174 | 5,603,771 | |||||||||||
Subtotal | 11,814,314 | 2,888,074 | 407,473 | 15,109,861 | |||||||||||
Loss share receivable | — | — | 38,239 | 38,239 | |||||||||||
Total loans | 11,814,314 | 2,888,074 | 445,712 | 15,148,100 | |||||||||||
Less allowance for loan losses | 91,888 | 6,088 | 42,050 | 140,026 | |||||||||||
Net loans | $ | 11,722,426 | $ | 2,881,986 | $ | 403,662 | $ | 15,008,074 | |||||||
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 | ||||||||||||||||||||||||||||||
September 30, 2015 | June 30, 2015 | September 30, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 457,317 | $ | 518,820 | $ | 521,210 | ||||||||||||||||||||||||||
Investment securities and federal funds sold: | ||||||||||||||||||||||||||||||||
U.S. treasury securities and U.S. government agency obligations (taxable) | 5,474,222 | $ | 27,507 | 1.99 | % | 5,452,598 | $ | 27,098 | 1.99 | % | 5,276,354 | $ | 26,502 | 1.99 | % | |||||||||||||||||
Obligations of states and political subdivisions (tax exempt) | 737,323 | 8,245 | 4.44 | % | 724,653 | 8,443 | 4.67 | % | 776,376 | 8,734 | 4.46 | % | ||||||||||||||||||||
Other securities and federal funds sold | 572,376 | 5,134 | 3.56 | % | 594,478 | 5,077 | 3.43 | % | 585,980 | 5,571 | 3.77 | % | ||||||||||||||||||||
Total investment securities and federal funds sold | 6,783,921 | 40,886 | 2.39 | % | 6,771,729 | 40,618 | 2.41 | % | 6,638,710 | 40,807 | 2.44 | % | ||||||||||||||||||||
Loans held for sale | 4,929 | 66 | 5.31 | % | 3,631 | 46 | 5.08 | % | 17,433 | 154 | 3.50 | % | ||||||||||||||||||||
Loans, including loss share receivable (2) | 15,760,127 | 162,903 | 4.10 | % | 15,577,361 | 162,610 | 4.19 | % | 15,148,100 | 171,302 | 4.49 | % | ||||||||||||||||||||
Total earning assets | 22,548,977 | $ | 203,855 | 3.59 | % | 22,352,721 | $ | 203,274 | 3.65 | % | 21,804,243 | $ | 212,263 | 3.86 | % | |||||||||||||||||
Total allowance for loan losses | (147,136 | ) | (146,558 | ) | (140,026 | ) | ||||||||||||||||||||||||||
Other assets | 2,358,698 | 2,404,876 | 2,398,349 | |||||||||||||||||||||||||||||
Total assets | $ | 25,217,856 | $ | 25,129,859 | $ | 24,583,776 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Noninterest-bearing | $ | 5,897,768 | $ | — | — | % | $ | 5,722,240 | $ | — | — | % | $ | 5,603,104 | $ | — | — | % | ||||||||||||||
Interest-bearing | 3,353,541 | 750 | 0.09 | % | 3,203,836 | 783 | 0.10 | % | 3,100,904 | 755 | 0.10 | % | ||||||||||||||||||||
Savings and money market accounts | 8,480,682 | 5,639 | 0.26 | % | 8,467,845 | 5,588 | 0.26 | % | 8,492,172 | 5,570 | 0.26 | % | ||||||||||||||||||||
Certificates and other time deposits | 2,225,595 | 2,757 | 0.49 | % | 2,288,741 | 2,510 | 0.44 | % | 2,335,620 | 2,846 | 0.48 | % | ||||||||||||||||||||
Total deposits | 19,957,586 | 9,146 | 0.18 | % | 19,682,662 | 8,881 | 0.18 | % | 19,531,800 | 9,171 | 0.19 | % | ||||||||||||||||||||
Securities sold under agreements to repurchase | 1,109,924 | 254 | 0.09 | % | 1,285,920 | 329 | 0.10 | % | 1,182,507 | 268 | 0.09 | % | ||||||||||||||||||||
Wholesale borrowings | 377,594 | 1,171 | 1.23 | % | 393,379 | 1,129 | 1.15 | % | 438,941 | 1,397 | 1.26 | % | ||||||||||||||||||||
Long-term debt | 497,566 | 4,165 | 3.32 | % | 508,744 | 3,917 | 3.09 | % | 320,387 | 3,783 | 4.68 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 16,044,902 | 14,736 | 0.36 | % | 16,148,465 | 14,256 | 0.35 | % | 15,870,531 | 14,619 | 0.37 | % | ||||||||||||||||||||
Other liabilities | 365,526 | 366,722 | 302,255 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,909,660 | 2,892,432 | 2,807,886 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 25,217,856 | $ | 25,129,859 | $ | 24,583,776 | ||||||||||||||||||||||||||
Net yield on earning assets | $ | 22,548,977 | $ | 189,119 | 3.33 | % | $ | 22,352,721 | $ | 189,018 | 3.39 | % | $ | 21,804,243 | $ | 197,644 | 3.60 | % | ||||||||||||||
Interest rate spread | 3.23 | % | 3.30 | % | 3.50 | % | ||||||||||||||||||||||||||
FIRSTMERIT CORPORATION AND SUBIDARIES | |||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||||
Fully Tax-equivalent Interest Rates and Interest Differential | |||||||||||||||||||||
Nine Months Ended | Nine Months Ended | ||||||||||||||||||||
September 30, 2015 | September 30, 2014 | ||||||||||||||||||||
(Unaudited) | Average | Average | Average | Average | |||||||||||||||||
(Dollars in thousands) | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | |||||||||||||||
ASSETS | |||||||||||||||||||||
Cash and cash equivalents | $ | 512,746 | $ | 712,490 | |||||||||||||||||
Investment securities and federal funds sold: | |||||||||||||||||||||
U.S. treasury securities and U.S. government agency obligations (taxable) | 5,419,377 | $ | 81,365 | 2.01 | % | 5,244,238 | $ | 79,162 | 2.02 | % | |||||||||||
Obligations of states and political subdivisions (tax exempt) | 731,726 | 25,835 | 4.72 | % | 761,461 | 26,100 | 4.58 | % | |||||||||||||
Other securities and federal funds sold | 590,458 | 15,401 | 3.49 | % | 587,622 | 17,185 | 3.91 | % | |||||||||||||
Total investment securities and federal funds sold | 6,741,561 | 122,601 | 2.43 | % | 6,593,321 | 122,447 | 2.48 | % | |||||||||||||
Loans held for sale | 4,678 | 169 | 4.83 | % | 11,517 | 302 | 3.51 | % | |||||||||||||
Loans, including loss share receivable (2) | 15,589,444 | 487,805 | 4.18 | % | 14,756,994 | 515,757 | 4.67 | % | |||||||||||||
Total earning assets | 22,335,683 | $ | 610,575 | 3.65 | % | 21,361,832 | $ | 638,506 | 4.00 | % | |||||||||||
Total allowance for loan losses | (146,029 | ) | (141,766 | ) | |||||||||||||||||
Other assets | 2,381,209 | 2,405,097 | |||||||||||||||||||
Total assets | $ | 25,083,609 | $ | 24,337,653 | |||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||
Deposits: | |||||||||||||||||||||
Noninterest-bearing | $ | 5,783,542 | $ | — | — | % | $ | 5,536,306 | $ | — | — | % | |||||||||
Interest-bearing | 3,256,082 | 2,300 | 0.09 | % | 3,071,220 | 2,236 | 0.10 | % | |||||||||||||
Savings and money market accounts | 8,496,668 | 16,774 | 0.26 | % | 8,589,882 | 16,605 | 0.26 | % | |||||||||||||
Certificates and other time deposits | 2,274,049 | 7,444 | 0.44 | % | 2,357,241 | 8,319 | 0.47 | % | |||||||||||||
Total deposits | 19,810,341 | 26,518 | 0.18 | % | 19,554,649 | 27,160 | 0.19 | % | |||||||||||||
Securities sold under agreements to repurchase | 1,140,547 | 826 | 0.10 | % | 1,031,483 | 697 | 0.09 | % | |||||||||||||
Wholesale borrowings | 374,085 | 3,459 | 1.24 | % | 363,422 | 3,917 | 1.44 | % | |||||||||||||
Long-term debt | 502,578 | 12,081 | 3.21 | % | 323,068 | 11,566 | 4.79 | % | |||||||||||||
Total interest-bearing liabilities | 16,044,009 | 42,884 | 0.36 | % | 15,736,316 | 43,340 | 0.37 | % | |||||||||||||
Other liabilities | 366,414 | 294,936 | |||||||||||||||||||
Shareholders' equity | 2,889,644 | 2,770,095 | |||||||||||||||||||
Total liabilities and shareholders' equity | $ | 25,083,609 | $ | 24,337,653 | |||||||||||||||||
Net yield on earning assets | $ | 22,335,683 | $ | 567,691 | 3.40 | % | $ | 21,361,832 | $ | 595,166 | 3.73 | % | |||||||||
Interest rate spread | 3.29 | % | 3.63 | % | |||||||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME | ||||||||||||||||||
(Unaudited) | Three Months Ended | Nine Months Ended | ||||||||||||||||
(In thousands, except per share amounts) | September 30, | September 30, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | |||||||||||||||
Interest income: | ||||||||||||||||||
Loans and loans held for sale | $ | 162,204 | $ | 170,648 | $ | 485,615 | $ | 513,678 | ||||||||||
Investment securities: | ||||||||||||||||||
Taxable | 32,641 | 32,072 | 96,766 | 96,347 | ||||||||||||||
Tax-exempt | 5,214 | 5,477 | 16,567 | 16,372 | ||||||||||||||
Total investment securities interest | 37,855 | 37,549 | 113,333 | 112,719 | ||||||||||||||
Total interest income | 200,059 | 208,197 | 598,948 | 626,397 | ||||||||||||||
Interest expense: | ||||||||||||||||||
Deposits: | ||||||||||||||||||
Interest-bearing | 750 | 755 | 2,300 | 2,236 | ||||||||||||||
Savings and money market accounts | 5,639 | 5,570 | 16,774 | 16,605 | ||||||||||||||
Certificates and other time deposits | 2,757 | 2,846 | 7,444 | 8,319 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 254 | 268 | 826 | 697 | ||||||||||||||
Wholesale borrowings | 1,171 | 1,397 | 3,459 | 3,917 | ||||||||||||||
Long-term debt | 4,165 | 3,783 | 12,081 | 11,566 | ||||||||||||||
Total interest expense | 14,736 | 14,619 | 42,884 | 43,340 | ||||||||||||||
Net interest income | 185,323 | 193,578 | 556,064 | 583,057 | ||||||||||||||
Provision for loan losses | 14,275 | 9,192 | 31,489 | 38,982 | ||||||||||||||
Net interest income after provision for loan losses | 171,048 | 184,386 | 524,575 | 544,075 | ||||||||||||||
Noninterest income: | ||||||||||||||||||
Trust department income | 10,948 | 10,300 | 31,917 | 30,118 | ||||||||||||||
Service charges on deposits | 17,295 | 18,684 | 49,667 | 53,860 | ||||||||||||||
Credit card fees | 13,939 | 13,754 | 40,712 | 39,361 | ||||||||||||||
ATM and other service fees | 6,518 | 6,182 | 18,962 | 17,998 | ||||||||||||||
Bank owned life insurance income | 4,622 | 4,218 | 11,911 | 11,840 | ||||||||||||||
Investment services and insurance | 4,032 | 3,606 | 11,607 | 10,974 | ||||||||||||||
Investment securities gains/(losses), net | 41 | 14 | 962 | 150 | ||||||||||||||
Loan sales and servicing income | 2,414 | 4,740 | 7,290 | 12,932 | ||||||||||||||
Other operating income | 11,617 | 8,235 | 30,827 | 32,331 | ||||||||||||||
Total noninterest income | 71,426 | 69,733 | 203,855 | 209,564 | ||||||||||||||
Noninterest expenses: | ||||||||||||||||||
Salaries, wages, pension and employee benefits | 85,772 | 90,593 | 262,318 | 269,071 | ||||||||||||||
Net occupancy expense | 13,540 | 13,887 | 43,221 | 45,248 | ||||||||||||||
Equipment expense | 12,235 | 12,188 | 35,852 | 36,366 | ||||||||||||||
Stationery, supplies and postage | 3,304 | 3,723 | 10,202 | 11,820 | ||||||||||||||
Bankcard, loan processing and other costs | 12,335 | 11,151 | 35,935 | 33,795 | ||||||||||||||
Professional services | 5,154 | 5,270 | 14,522 | 15,373 | ||||||||||||||
Amortization of intangibles | 2,598 | 2,933 | 7,794 | 8,802 | ||||||||||||||
FDIC insurance expense | 5,234 | 2,988 | 15,478 | 14,492 | ||||||||||||||
Other operating expense | 20,570 | 20,412 | 57,746 | 64,911 | ||||||||||||||
Total noninterest expenses | 160,742 | 163,145 | 483,068 | 499,878 | ||||||||||||||
Income before income tax expense | 81,732 | 90,974 | 245,362 | 253,761 | ||||||||||||||
Income tax expense | 22,720 | 27,076 | 72,627 | 76,889 | ||||||||||||||
Net income | $ | 59,012 | $ | 63,898 | $ | 172,735 | $ | 176,872 | ||||||||||
Less: | Net income allocated to participating shareholders | 477 | 519 | 1,401 | 1,433 | |||||||||||||
Preferred stock dividends | 1,469 | 1,469 | 4,407 | 4,407 | ||||||||||||||
Net income attributable to common shareholders | $ | 57,066 | $ | 61,910 | $ | 166,927 | $ | 171,032 | ||||||||||
Net income used in diluted EPS calculation | $ | 57,066 | $ | 61,910 | $ | 166,927 | $ | 171,032 | ||||||||||
Weighted average number of common shares outstanding - basic | 165,762 | 165,389 | 165,638 | 165,263 | ||||||||||||||
Weighted average number of common shares outstanding - diluted | 166,058 | 165,804 | 165,939 | 165,916 | ||||||||||||||
Basic earnings per common share | $ | 0.34 | $ | 0.37 | $ | 1.01 | $ | 1.03 | ||||||||||
Diluted earnings per common share | 0.34 | 0.37 | 1.01 | 1.03 | ||||||||||||||
Cash dividends per common share | 0.17 | 0.16 | 0.49 | 0.48 | ||||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | |||||||||||||||||||||||
(Unaudited) | Three Months Ended | Nine Months Ended | |||||||||||||||||||||
(In thousands) | September 30, 2015 | September 30, 2015 | |||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||
Net Income | $ | 81,732 | $ | 22,720 | $ | 59,012 | $ | 245,362 | $ | 72,627 | $ | 172,735 | |||||||||||
Other comprehensive income/(loss) | |||||||||||||||||||||||
Unrealized gains and losses on securities available for sale: | |||||||||||||||||||||||
Changes in unrealized securities' holding gains/(losses) | 25,691 | 8,991 | 16,700 | 31,166 | 10,908 | 20,258 | |||||||||||||||||
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity | (1,266 | ) | (442 | ) | (824 | ) | (2,345 | ) | (821 | ) | (1,524 | ) | |||||||||||
Net losses/(gains) realized on sale of securities reclassified to noninterest income | (41 | ) | (14 | ) | (27 | ) | (962 | ) | (336 | ) | (626 | ) | |||||||||||
Net change in unrealized gains/(losses) on securities available for sale | 24,384 | 8,535 | 15,849 | 27,859 | 9,751 | 18,108 | |||||||||||||||||
Pension plans and other postretirement benefits: | |||||||||||||||||||||||
Amortization of actuarial gain | 1,138 | 399 | 739 | 3,414 | 1,195 | 2,219 | |||||||||||||||||
Amortization of prior service cost reclassified to other noninterest expense | 410 | 144 | 266 | 1,230 | 431 | 799 | |||||||||||||||||
Net change from defined benefit pension plans | 1,548 | 543 | 1,005 | 4,644 | 1,626 | 3,018 | |||||||||||||||||
Total other comprehensive gains/(losses) | 25,932 | 9,078 | 16,854 | 32,503 | 11,377 | 21,126 | |||||||||||||||||
Comprehensive income | $ | 107,664 | $ | 31,798 | $ | 75,866 | $ | 277,865 | $ | 84,004 | $ | 193,861 |
Three Months Ended | Nine Months Ended | ||||||||||||||||||||||
September 30, 2014 | September 30, 2014 | ||||||||||||||||||||||
Pre-tax | Tax | After-tax | Pre-tax | Tax | After-tax | ||||||||||||||||||
Net Income | $ | 90,974 | $ | 27,076 | $ | 63,898 | $ | 253,761 | $ | 76,889 | $ | 176,872 | |||||||||||
Other comprehensive income/(loss) | |||||||||||||||||||||||
Unrealized gains and losses on securities available for sale: | |||||||||||||||||||||||
Changes in unrealized securities' holding gains/(losses) | (16,207 | ) | (5,672 | ) | (10,535 | ) | 24,293 | 8,503 | 15,790 | ||||||||||||||
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity | (563 | ) | (197 | ) | (366 | ) | (1,551 | ) | (543 | ) | (1,008 | ) | |||||||||||
Net losses/(gains) realized on sale of securities reclassified to noninterest income | (14 | ) | (5 | ) | (9 | ) | (150 | ) | (53 | ) | (97 | ) | |||||||||||
Net change in unrealized gains/(losses) on securities available for sale | (16,784 | ) | (5,874 | ) | (10,910 | ) | 22,592 | 7,907 | 14,685 | ||||||||||||||
Pension plans and other postretirement benefits: | |||||||||||||||||||||||
Amortization of actuarial gain | 768 | 269 | 499 | 2,398 | 839 | 1,559 | |||||||||||||||||
Amortization of prior service cost reclassified to other noninterest expense | 516 | 181 | 335 | 1,614 | 565 | 1,049 | |||||||||||||||||
Net change from defined benefit pension plans | 1,284 | 450 | 834 | 4,012 | 1,404 | 2,608 | |||||||||||||||||
Total other comprehensive gains/(losses) | (15,500 | ) | (5,424 | ) | (10,076 | ) | 26,604 | 9,311 | 17,293 | ||||||||||||||
Comprehensive income | $ | 75,474 | $ | 21,652 | $ | 53,822 | $ | 280,365 | $ | 86,200 | $ | 194,165 | |||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME---LINKED QUARTERS | |||||||||||||||||||
Quarterly Results | |||||||||||||||||||
(In thousands, except per share amounts) | 2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||
(Unaudited) | 3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | ||||||||||||||
Interest Income: | |||||||||||||||||||
Loans and loans held for sale | $ | 162,204 | $ | 161,872 | $ | 161,539 | $ | 168,650 | $ | 170,648 | |||||||||
Investment securities | 37,855 | 37,502 | 37,976 | 37,451 | 37,549 | ||||||||||||||
Total interest income | 200,059 | 199,374 | 199,515 | 206,101 | 208,197 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Interest-bearing | 750 | 783 | 767 | 727 | 755 | ||||||||||||||
Savings and money market accounts | 5,639 | 5,588 | 5,547 | 5,496 | 5,570 | ||||||||||||||
Certificates and other time deposits | 2,757 | 2,510 | 2,177 | 2,525 | 2,846 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 254 | 329 | 243 | 294 | 268 | ||||||||||||||
Wholesale borrowings | 1,171 | 1,129 | 1,160 | 1,292 | 1,397 | ||||||||||||||
Long-term debt | 4,165 | 3,917 | 3,998 | 3,256 | 3,783 | ||||||||||||||
Total interest expense | 14,736 | 14,256 | 13,892 | 13,590 | 14,619 | ||||||||||||||
Net interest income | 185,323 | 185,118 | 185,623 | 192,511 | 193,578 | ||||||||||||||
Provision for loan losses | 14,275 | 8,966 | 8,248 | 13,297 | 9,192 | ||||||||||||||
Net interest income after provision for loan losses | 171,048 | 176,152 | 177,375 | 179,214 | 184,386 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Trust department income | 10,948 | 10,820 | 10,149 | 9,831 | 10,300 | ||||||||||||||
Service charges on deposits | 17,295 | 16,704 | 15,668 | 17,597 | 18,684 | ||||||||||||||
Credit card fees | 13,939 | 14,124 | 12,649 | 13,305 | 13,754 | ||||||||||||||
ATM and other service fees | 6,518 | 6,345 | 6,099 | 6,181 | 6,182 | ||||||||||||||
Bank owned life insurance income | 4,622 | 3,697 | 3,592 | 7,337 | 4,218 | ||||||||||||||
Investment services and insurance | 4,032 | 3,871 | 3,704 | 4,171 | 3,606 | ||||||||||||||
Investment securities gains/(losses), net | 41 | 567 | 354 | 16 | 14 | ||||||||||||||
Loan sales and servicing income | 2,414 | 3,276 | 1,600 | 3,112 | 4,740 | ||||||||||||||
Other operating income | 11,617 | 7,178 | 12,032 | 10,410 | 8,235 | ||||||||||||||
Total noninterest income | 71,426 | 66,582 | 65,847 | 71,960 | 69,733 | ||||||||||||||
Noninterest expenses: | |||||||||||||||||||
Salaries, wages, pension and employee benefits | 85,772 | 86,020 | 90,526 | 89,899 | 90,593 | ||||||||||||||
Net occupancy expense | 13,540 | 13,727 | 15,954 | 14,188 | 13,887 | ||||||||||||||
Equipment expense | 12,235 | 12,592 | 11,025 | 12,133 | 12,188 | ||||||||||||||
Stationery, supplies and postage | 3,304 | 3,370 | 3,528 | 3,767 | 3,723 | ||||||||||||||
Bankcard, loan processing and other costs | 12,335 | 12,461 | 11,139 | 11,830 | 11,151 | ||||||||||||||
Professional services | 5,154 | 5,358 | 4,010 | 6,440 | 5,270 | ||||||||||||||
Amortization of intangibles | 2,598 | 2,598 | 2,598 | 2,933 | 2,933 | ||||||||||||||
FDIC insurance expense | 5,234 | 5,077 | 5,167 | 5,989 | 2,988 | ||||||||||||||
Other operating expense | 20,570 | 20,471 | 16,705 | 17,862 | 20,412 | ||||||||||||||
Total noninterest expenses | 160,742 | 161,674 | 160,652 | 165,041 | 163,145 | ||||||||||||||
Income before income tax expense | 81,732 | 81,060 | 82,570 | 86,133 | 90,974 | ||||||||||||||
Income tax expense | 22,720 | 24,476 | 25,431 | 25,054 | 27,076 | ||||||||||||||
Net income | 59,012 | 56,584 | 57,139 | 61,079 | 63,898 | ||||||||||||||
Less: Net income allocated to participating shareholders | 477 | 467 | 407 | 496 | 519 | ||||||||||||||
Preferred stock dividends | 1,469 | 1,469 | 1,469 | 1,469 | 1,469 | ||||||||||||||
Net income attributable to common shareholders | $ | 57,066 | $ | 54,648 | $ | 55,263 | $ | 59,114 | $ | 61,910 | |||||||||
Net income used in diluted EPS calculation | $ | 57,066 | $ | 54,648 | $ | 55,263 | $ | 59,114 | $ | 61,910 | |||||||||
Weighted-average number of common shares outstanding - basic | 165,762 | 165,736 | 165,411 | 165,395 | 165,389 | ||||||||||||||
Weighted-average number of common shares outstanding- diluted | 166,058 | 166,277 | 166,003 | 165,974 | 165,804 | ||||||||||||||
Basic earnings per common share | $ | 0.34 | $ | 0.33 | $ | 0.33 | $ | 0.36 | $ | 0.37 | |||||||||
Diluted earnings per common share | $ | 0.34 | $ | 0.33 | $ | 0.33 | $ | 0.36 | $ | 0.37 | |||||||||
Cash dividends per common share | $ | 0.17 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Noninterest income detail | 3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | |||||||||||||||
Trust department income | $ | 10,948 | $ | 10,820 | $ | 10,149 | $ | 9,831 | $ | 10,300 | ||||||||||
Service charges on deposits | 17,295 | 16,704 | 15,668 | 17,597 | 18,684 | |||||||||||||||
Credit card fees | 13,939 | 14,124 | 12,649 | 13,305 | 13,754 | |||||||||||||||
ATM and other service fees | 6,518 | 6,345 | 6,099 | 6,181 | 6,182 | |||||||||||||||
Bank owned life insurance income | 4,622 | 3,697 | 3,592 | 7,337 | 4,218 | |||||||||||||||
Investment services and insurance | 4,032 | 3,871 | 3,704 | 4,171 | 3,606 | |||||||||||||||
Investment securities gains/(losses), net | 41 | 567 | 354 | 16 | 14 | |||||||||||||||
Loan sales and servicing income | 2,414 | 3,276 | 1,600 | 3,112 | 4,740 | |||||||||||||||
Other operating income | 11,617 | 7,178 | 12,032 | 10,410 | 8,235 | |||||||||||||||
Total Noninterest Income | $ | 71,426 | $ | 66,582 | $ | 65,847 | $ | 71,960 | $ | 69,733 | ||||||||||
2015 | 2015 | 2015 | 2014 | 2014 | ||||||||||||||||
Noninterest expense detail | 3rd qtr | 2nd qtr | 1st qtr | 4th qtr | 3rd qtr | |||||||||||||||
Salaries and wages | $ | 68,775 | $ | 67,485 | $ | 71,914 | $ | 71,638 | $ | 71,769 | ||||||||||
Pension and employee benefits | 16,997 | 18,535 | 18,612 | 18,261 | 18,824 | |||||||||||||||
Net occupancy expense | 13,540 | 13,727 | 15,954 | 14,188 | 13,887 | |||||||||||||||
Equipment expense | 12,235 | 12,592 | 11,025 | 12,133 | 12,188 | |||||||||||||||
Taxes, other than federal income taxes | 2,003 | 2,032 | 2,014 | 1,661 | 1,286 | |||||||||||||||
Stationery, supplies and postage | 3,304 | 3,370 | 3,528 | 3,767 | 3,723 | |||||||||||||||
Bankcard, loan processing and other costs | 12,335 | 12,461 | 11,139 | 11,830 | 11,151 | |||||||||||||||
Advertising | 4,278 | 3,103 | 2,747 | 3,586 | 3,942 | |||||||||||||||
Professional services | 5,154 | 5,358 | 4,010 | 6,440 | 5,270 | |||||||||||||||
Telephone | 2,480 | 2,599 | 2,574 | 2,779 | 2,831 | |||||||||||||||
Amortization of intangibles | 2,598 | 2,598 | 2,598 | 2,933 | 2,933 | |||||||||||||||
FDIC insurance expense | 5,234 | 5,077 | 5,167 | 5,989 | 2,988 | |||||||||||||||
Other operating expense | 11,809 | 12,737 | 9,370 | 9,836 | 12,353 | |||||||||||||||
Total Noninterest Expense | $ | 160,742 | $ | 161,674 | $ | 160,652 | $ | 165,041 | $ | 163,145 | ||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
ASSET QUALITY INFORMATION (excluding acquired loans, FDIC acquired loans, and covered OREO) (1) | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
(Dollars in thousands) | Quarterly Periods | Annual Period | |||||||||||||||||||||
September 30, | June 30, | March 31, | December 31, | September 30, | December 31, | ||||||||||||||||||
Allowance for Credit Losses | 2015 | 2015 | 2015 | 2014 | 2014 | 2014 | |||||||||||||||||
Allowance for originated loan losses, beginning of period | $ | 101,682 | $ | 97,545 | $ | 95,696 | $ | 90,883 | $ | 91,950 | $ | 96,484 | |||||||||||
Provision for originated loan losses | 10,402 | 10,809 | 6,036 | 8,662 | 4,862 | 23,171 | |||||||||||||||||
Charge-offs | 13,398 | 11,298 | 8,567 | 9,205 | 11,410 | 44,923 | |||||||||||||||||
Recoveries | 5,369 | 4,626 | 4,380 | 5,356 | 5,481 | 20,964 | |||||||||||||||||
Net charge-offs | 8,029 | 6,672 | 4,187 | 3,849 | 5,929 | 23,959 | |||||||||||||||||
Allowance for originated loan losses, end of period | $ | 104,055 | $ | 101,682 | $ | 97,545 | $ | 95,696 | $ | 90,883 | $ | 95,696 | |||||||||||
Reserve for unfunded lending commitments, | |||||||||||||||||||||||
beginning of period | $ | 3,905 | $ | 4,330 | $ | 5,848 | $ | 6,966 | $ | 7,107 | $ | 7,907 | |||||||||||
Provision for (relief of) credit losses | (331 | ) | (425 | ) | (1,518 | ) | (1,118 | ) | (141 | ) | (2,059 | ) | |||||||||||
Reserve for unfunded lending commitments, | |||||||||||||||||||||||
end of period | $ | 3,574 | $ | 3,905 | $ | 4,330 | $ | 5,848 | $ | 6,966 | $ | 5,848 | |||||||||||
Allowance for Credit Losses | $ | 107,629 | $ | 105,587 | $ | 101,875 | $ | 101,544 | $ | 97,849 | $ | 101,544 | |||||||||||
Ratios | |||||||||||||||||||||||
Provision for loan losses to average loans | 0.31 | % | 0.33 | % | 0.19 | % | 0.28 | % | 0.16 | % | 0.20 | % | |||||||||||
Net charge-offs to average loans | 0.24 | % | 0.20 | % | 0.13 | % | 0.12 | % | 0.20 | % | 0.21 | % | |||||||||||
Allowance for loan losses to period-end loans | 0.76 | % | 0.76 | % | 0.76 | % | 0.77 | % | 0.75 | % | 0.77 | % | |||||||||||
Allowance for credit losses to period-end loans | 0.79 | % | 0.79 | % | 0.79 | % | 0.81 | % | 0.81 | % | 0.81 | % | |||||||||||
Allowance for loan losses to nonperforming loans | 221.22 | % | 184.40 | % | 211.66 | % | 276.44 | % | 231.13 | % | 276.44 | % | |||||||||||
Allowance for credit losses to nonperforming loans | 228.82 | % | 191.48 | % | 221.06 | % | 293.34 | % | 248.85 | % | 293.34 | % | |||||||||||
Asset Quality | |||||||||||||||||||||||
Impaired originated loans: | |||||||||||||||||||||||
Commercial loans | $ | 30,821 | $ | 37,889 | $ | 28,478 | $ | 17,147 | $ | 22,347 | $ | 17,147 | |||||||||||
Consumer loans | 16,215 | 17,253 | 17,607 | 17,470 | 16,974 | 17,470 | |||||||||||||||||
Total nonperforming loans | 47,036 | 55,142 | 46,085 | 34,617 | 39,321 | 34,617 | |||||||||||||||||
Other real estate owned ("OREO"), noncovered (2) | 60,022 | 62,169 | 22,521 | 20,421 | 23,798 | 20,421 | |||||||||||||||||
Total nonperforming assets ("NPAs") (2) | $ | 107,058 | $ | 117,311 | $ | 68,606 | $ | 55,038 | $ | 63,119 | $ | 55,038 | |||||||||||
NPAs to period-end loans + noncovered OREO (2) | 0.78 | % | 0.87 | % | 0.53 | % | 0.44 | % | 0.52 | % | 0.44 | % | |||||||||||
Accruing originated loans past due 90 days or more | $ | 9,888 | $ | 8,009 | $ | 7,914 | $ | 12,156 | $ | 8,538 | $ | 12,156 | |||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
ALLOWANCE FOR ORIGINATED LOAN LOSSES - Net Charge-off Detail (excluding acquired and FDIC acquired loans) (1) | |||||||||||||||||||
(Unaudited) | Three Months Ended | Nine Months Ended | Year Ended | ||||||||||||||||
(Dollars in thousands) | September 30, | September 30, | December 31, | ||||||||||||||||
2015 | 2014 | 2015 | 2014 | 2014 | |||||||||||||||
Allowance for originated loan losses - beginning of period | $ | 101,682 | $ | 91,950 | $ | 95,696 | $ | 96,484 | $ | 96,484 | |||||||||
Loans charged off: | |||||||||||||||||||
Commercial | 4,476 | 4,046 | 8,738 | 12,256 | 12,701 | ||||||||||||||
Mortgage | 409 | 91 | 1,206 | 1,484 | 2,031 | ||||||||||||||
Installment | 4,456 | 4,323 | 13,682 | 12,983 | 17,932 | ||||||||||||||
Home equity | 940 | 1,361 | 2,822 | 3,403 | 4,831 | ||||||||||||||
Credit cards | 1,173 | 778 | 3,834 | 3,544 | 4,604 | ||||||||||||||
Leases | 1,268 | — | 1,268 | — | — | ||||||||||||||
Overdrafts | 676 | 811 | 1,713 | 2,048 | 2,824 | ||||||||||||||
Total | 13,398 | 11,410 | 33,263 | 35,718 | 44,923 | ||||||||||||||
Recoveries: | |||||||||||||||||||
Commercial | 759 | 1,287 | 1,532 | 2,720 | 4,332 | ||||||||||||||
Mortgage | 80 | 114 | 204 | 219 | 318 | ||||||||||||||
Installment | 2,774 | 2,729 | 8,358 | 8,195 | 10,513 | ||||||||||||||
Home equity | 564 | 708 | 2,016 | 2,227 | 2,940 | ||||||||||||||
Credit cards | 331 | 403 | 1,055 | 1,260 | 1,716 | ||||||||||||||
Manufactured housing | 7 | 54 | 26 | 78 | 87 | ||||||||||||||
Leases | 730 | 2 | 737 | 374 | 379 | ||||||||||||||
Overdrafts | 124 | 184 | 447 | 535 | 679 | ||||||||||||||
Total | 5,369 | 5,481 | 14,375 | 15,608 | 20,964 | ||||||||||||||
Net charge-offs | 8,029 | 5,929 | 18,888 | 20,110 | 23,959 | ||||||||||||||
Provision for originated loan losses | 10,402 | 4,862 | 27,247 | 14,509 | 23,171 | ||||||||||||||
Allowance for originated loan losses-end of period | $ | 104,055 | $ | 90,883 | $ | 104,055 | $ | 90,883 | $ | 95,696 | |||||||||
Average originated loans | $ | 13,528,268 | $ | 11,814,314 | $ | 13,106,749 | $ | 11,123,269 | $ | 11,421,426 | |||||||||
Ratio (annualized) to average originated loans: | |||||||||||||||||||
Originated net charge-offs | 0.24 | % | 0.20 | % | 0.19 | % | 0.24 | % | 0.21 | % | |||||||||
Provision for originated loan losses | 0.31 | % | 0.16 | % | 0.28 | % | 0.17 | % | 0.20 | % | |||||||||
Originated Loans, period-end | $ | 13,648,325 | $ | 12,071,759 | $ | 13,648,325 | $ | 12,071,759 | $ | 12,493,812 | |||||||||
Allowance for credit losses: | $ | 107,629 | $ | 97,849 | $ | 107,629 | $ | 97,849 | $ | 101,544 | |||||||||
To (annualized) net charge-offs | 3.38 | 4.16 | 4.26 | 3.64 | 4.24 | ||||||||||||||
Allowance for originated loan losses: | |||||||||||||||||||
To period-end originated loans | 0.76 | % | 0.75 | % | 0.76 | % | 0.75 | % | 0.77 | % | |||||||||
To (annualized) net originated charge-offs | 3.27 | 3.86 | 4.12 | 3.38 | 3.99 | ||||||||||||||
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