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-----BEGIN PRIVACY-ENHANCED MESSAGE----- Proc-Type: 2001,MIC-CLEAR Originator-Name: webmaster@www.sec.gov Originator-Key-Asymmetric: MFgwCgYEVQgBAQICAf8DSgAwRwJAW2sNKK9AVtBzYZmr6aGjlWyK3XmZv3dTINen TWSM7vrzLADbmYQaionwg5sDW3P6oaM5D3tdezXMm7z1T+B+twIDAQAB MIC-Info: RSA-MD5,RSA, UPRo5iS6lFemh3CQaxywOqCZ/e4QhF03jqYmR2fRmmwwVa4pH6FRCDM8RTyQsSAp 6JxwUKct6HCCGRBNCihhzQ== 0000950123-10-068818.txt : 20100728 0000950123-10-068818.hdr.sgml : 20100728 20100728083924 ACCESSION NUMBER: 0000950123-10-068818 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 7 CONFORMED PERIOD OF REPORT: 20100727 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20100728 DATE AS OF CHANGE: 20100728 FILER: COMPANY DATA: COMPANY CONFORMED NAME: FIRSTMERIT CORP /OH/ CENTRAL INDEX KEY: 0000354869 STANDARD INDUSTRIAL CLASSIFICATION: NATIONAL COMMERCIAL BANKS [6021] IRS NUMBER: 341339938 STATE OF INCORPORATION: OH FISCAL YEAR END: 1231 FILING VALUES: FORM TYPE: 8-K SEC ACT: 1934 Act SEC FILE NUMBER: 000-10161 FILM NUMBER: 10972993 BUSINESS ADDRESS: STREET 1: 111 CASCADE PLAZA STREET 2: 7TH FLOOR CITY: AKRON STATE: OH ZIP: 44308 BUSINESS PHONE: 3309966300 FORMER COMPANY: FORMER CONFORMED NAME: FIRSTMERIT CORP / DATE OF NAME CHANGE: 19980116 FORMER COMPANY: FORMER CONFORMED NAME: FIRSTMERIT CORP DATE OF NAME CHANGE: 19941219 FORMER COMPANY: FORMER CONFORMED NAME: FIRST BANCORPORATION OF OHIO /OH/ DATE OF NAME CHANGE: 19941219 8-K 1 l40331e8vk.htm FORM 8-K e8vk

UNITED STATES
SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934

Date of Report (Date of earliest event reported July 27, 2010

FIRSTMERIT CORPORATION

(Exact name of registrant as specified in its charter)


Ohio	0-10161	34-1339938

(State or other jurisdiction of incorporation)	(Commission File Number)	(IRS Employer Identification No.)


III Cascade Plaza, 7^th Floor Akron, Ohio		44308

(Address of principal executive offices)		(Zip Code)

(330) 996-6300

(Registrant’s telephone number, including area code)

(Former name or former address, if changed since last report)

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions:

o Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)

o Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)

o Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))

o Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.

On July 27, 2010, FirstMerit Corporation announced earnings for the quarter ended June 30, 2010. A copy of the press release and certain financial information for this period is attached as Exhibit 99.1 hereto and incorporated by reference herein.

Pursuant to General Instruction B.2 of Current Report on Form 8-K, the information in this Item 2.02 is being furnished and shall not be deemed to be “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended, or otherwise subject to the liability of that section. Furthermore, the information in this Item 2.02 shall not be deemed to be incorporated by reference into the filings of the Company under the Securities Act of 1933, as amended.

ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS.

(d) Exhibits.


Exhibit Number		Description
99.1		Press Release, dated July 27, 2010.

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.


	FirstMerit Corporation
	By:	/s/ Terrence E. Bichsel
		Terrence E. Bichsel
		Executive Vice President and Chief Financial Officer

Date: July 28, 2010

EX-99.1 2 l40331exv99w1.htm EX-99.1 exv99w1

Exhibit 99.1

FOR IMMEDIATE RELEASE

FirstMerit Corporation
Analysts: Thomas O’Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer

Phone: 330.384.7075

FirstMerit Corporation Reports Second Quarter 2010 EPS of $0.32 Per Share

Quarterly Highlights include:

	•		45^th consecutive quarter of profitability

	•		*Improved credit quality led by $13.5 million, or 10.98%, decline in nonperforming assets*

	•		*Maintained healthy capital levels of 7.34%at June 30, 2010, supported by completion of $320 million capital raise and consistent internal capital generation*

	•		*Continued successful execution of Chicago expansion strategy with Midwest Bank and Trust Company acquisition*

Akron, Ohio (July 27, 2010) — FirstMerit Corporation (Nasdaq: FMER) reported second quarter 2010 net income of $31.5 million, or $0.32 per diluted share. This compares with $18.8 million, or $0.21 per diluted share, for the first quarter 2010 and $15.5 million, or $0.13 per diluted share, for the second quarter 2009.

Returns on average common equity (“ROE”) and average assets (“ROA”) for the second quarter 2010 were 9.61% and 0.94%, respectively, compared with 6.68% and 0.64% for the first quarter 2010 and 6.27% and 0.57% for the second quarter 2009.

“Our solid performance in the second quarter reflects our commitment to sound and fundamental banking practices,” said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation. “Through disciplined organic and acquisition-oriented strategies, continued diligence on expense management and focus on maintaining a fortified balance sheet we produced our 45^th consecutive quarter of profitability and continue to build on our solid foundation of financial strength and stability.”

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FirstMerit Corporation Reports Second Quarter 2010 EPS Results / Page 2

On May 14, 2010, the Corporation acquired, through its subsidiary FirstMerit Bank, N.A., the banking operations of Chicago-based Midwest Bank and Trust Company, the subsidiary bank of Midwest Banc Holdings, Inc. through a purchase and assumption agreement with the Federal Deposit Insurance Corporation (“FDIC”). The Illinois Department of Financial and Professional Regulation, Division of Banking, declared Midwest Bank and Trust closed on May 14, 2010 and appointed the FDIC as receiver. Including the effects of purchase accounting adjustments, FirstMerit Bank, N.A. acquired approximately $2.9 billion in assets and assumed $2.3 billion of the deposits of Midwest Bank and Trust Company. Midwest Bank had 26 branches located throughout the Chicago area.

“Our acquisition strategy for entering the growing Chicago market is on schedule and going very well,” Greig said. “Not only did the Midwest Bank acquisition expand our scale in Chicago, both in balance sheet size and number of branches, it gives us a solid platform to reach our new customers where they live and work. We have successfully transitioned our First Bank and George Washington Savings Bank branches to the FirstMerit brand and look to convert the Midwest Bank branch network in September of this year.”

Net interest margin was 4.04% for the second quarter of 2010 compared with 3.72% for the first quarter of 2010 and 3.56% for the second quarter of 2009. The addition of Midwest Bank and Trust’s balance sheet and the Corporation’s continued emphasis on core deposit gathering and shifting deposit mix away from higher-priced certificate of deposit products drove the expansion over both time periods.

In connection with the Midwest Bank acquisition, FirstMerit Bank, N.A., entered into a loss sharing agreement with the FDIC that collectively covers $2.3 billion of assets including one-to four-family residential mortgage loans, commercial real estate and commercial and industrial loans, and other real estate. FirstMerit Bank N.A., acquired other Midwest Bank assets that are not covered by the loss sharing agreement with the FDIC including investment securities purchased at fair market value and other tangible assets. The FDIC will reimburse the Corporation for losses with respect to certain loans (“covered loans”) and other real estate owned (“OREO”) (collectively, “covered assets”).

Average loans, not including covered loans, during the second quarter of 2010 increased $138.5 million, or 1.97%, compared with the first quarter of 2010 and decreased $85.8 million, or 1.18%, compared with the second quarter of 2009.

The decline in average balances compared with the second quarter of 2009 reflects a reduced level of commercial and consumer credit demand and the focus on debt reduction by the Corporation’s business and retail customer base. At June 30, 2010, average covered loan balances including the indemnification asset were $1.3 billion.

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FirstMerit Corporation Reports Second Quarter 2010 EPS Results / Page 3

Average deposits during the second quarter of 2010 increased $2.2 billion, or 26.43%, compared with the first quarter of 2010 and increased $2.9 billion, or 38.49%, compared with the second quarter of 2009. During the second quarter of 2010, the Corporation increased its average core deposits, which excludes time deposits, by $875.7 million, or 13.38%, compared with the first quarter of 2010, and $2.0 billion, or 38.08%, compared with the second quarter of 2009.

Average investments during the second quarter of 2010 increased $381.7 million, or 13.08%, compared with the first quarter of 2010 and increased $565.4 million, or 20.68%, over the second quarter of 2009. Second quarter of 2010 average investments was impacted by $575.0 million of securities purchased late 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 $118.8 million in the second quarter 2010 compared with $92.3 million in the first quarter of 2010 and $88.8 million in the second quarter of 2009. Compared with the first quarter of 2010, average earning assets increased $1.7 billion, or 16.95%, and increased $1.8 billion, or 17.83%, compared to the second quarter of 2009. The addition of Midwest Bank and Trust’s earning asset base and the incremental margin expansion off those assets was a primary driver of the increases over both periods. Additionally, the Corporation continues to experience net interest margin expansion from successful execution of its core deposit gathering strategies.

Noninterest income net of securities transactions for the second quarter of 2010 was $52.6 million, a decrease of $2.5 million, or 4.60%, from the first quarter of 2010 and an increase of $2.9 million, or 5.82%, from the second quarter of 2009.

The primary changes in other income for the 2010 second quarter as compared to the second quarter of 2009 were as follows: trust income was $5.6 million, an increase of 2.50% primarily due to advances in the equity markets; service charges on deposits were $17.7 million, an increase of 11.88% due to an increase in new accounts; credit card fees were $12.2 million, an increase of 4.92% attributable to the improvement in the economy.

Other income, net of securities gains, as a percentage of net revenue for the second quarter of 2010 was 30.67% compared with 37.37% for first quarter of 2010 and 35.87% for the second quarter of 2009. Net revenue is defined as net interest income, on a FTE basis, plus other income, less gains from securities sales.

Noninterest expense for the second quarter of 2010 was $105.7 million, an increase of $11.7 million, or 12.46%, from the first quarter of 2010 and an increase of $15.2 million, or 16.74%, from the second quarter of 2009. For the three months ended June 30, 2010, increases in operating expenses compared to the second quarter of 2009 were primarily attributable to increased salary and benefits, and professional services. Onetime expenses associated with data processing conversions and related expenses for the acquisitions totaled $4.4 million.

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FirstMerit Corporation Reports Second Quarter 2010 EPS Results / Page 4

During the second quarter of 2010, the Corporation reported an efficiency ratio of 61.30%, compared with 63.61% for the first quarter of 2010 and 65.34% for the second quarter of 2009.

Net charge-offs totaled $20.3 million, or 1.18% of average loans, excluding covered loans, in the second quarter of 2010 compared with $22.8 million, or 1.36% of average loans, in the first quarter 2010 and $21.6 million, or 1.19% of average loans, in the second quarter of 2009.

Nonperforming assets totaled $109.8 million at June 30, 2010, a decrease of $13.5 million compared with March 31, 2010 and an increase of $36.4 million compared with June 30, 2009. Nonperforming assets at June 30, 2010 represented 1.62% of period-end loans plus other real estate, excluding covered loans, compared with 1.80% at March 31, 2010 and 1.03% at June 30, 2009.

The allowance for loan losses, excluding covered loans, totaled $118.3 million at June 30, 2010, an increase of $0.3 million from March 31, 2010. At June 30, 2010, the allowance for loan losses was 1.75% of period-end loans compared with 1.72% at March 31, 2010, and 1.68% at December 31, 2009. The allowance for credit losses is the sum of the allowance for loan losses, excluding covered loans, and the reserve for unfunded lending commitments. For comparative purposes the allowance for credit losses was 1.84% of period-end loans, excluding covered loans, at June 30, 2010, compared with 1.82% at March 31, 2010 and 1.77% at December 31, 2009. The allowance for credit losses to nonperforming loans was 126.31% at June 30, 2010, compared with 110.80% at March 31, 2010 and 131.82% at December 31, 2009.

The Corporation’s total assets at June 30, 2010 were $14.5 billion, an increase of $2.2 billion inclusive of intangible assets, or 17.85%, compared with March 31, 2010 and an increase of $3.8 billion, or 35.77%, compared with June 30, 2009. Total loans, excluding covered loans, did not significantly change compared with March 31, 2010 and June 30, 2009.

Total deposits were $11.5 billion at June 30, 2010, an increase of $2.1 billion, or 22.89%, from March 31, 2010 and an increase of $4.1 billion, or 54.54%, from June 30, 2009. The increase over both periods was largely driven by the continuation of the Corporation’s expansion strategy in Chicago. Core deposits totaled $7.7 billion at June 30, 2010, an increase of $0.7 million, or 9.80%, from March 31, 2010 and an increase of $2.3 billion, or 42.90%, from June 30, 2009.

Shareholders’ equity was $1.5 billion at June 30, 2010, compared with $1.2 billion at March 31, 2010 and $1.0 billion at June 30, 2009. The Corporation maintained a strong capital position as tangible common equity to assets was 7.34% at June 30, 2010, compared with 7.93% and 8.36% at March 31, 2010 and June 30, 2009, respectively. The common dividend per share paid in the second quarter 2010 was $0.16.

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FirstMerit Corporation Reports Second Quarter 2010 EPS Results / Page 5

Mr. Greig said, “FirstMerit continues to maintain healthy capital levels and expects to generate additional internal capital over the next few quarters and will continue to seek to increase tangible capital ratios above those of peers and competitors. Building on this financial strength, we are working to enhance shareholder value.”

On May 21, 2010, the Corporation announced that it closed and completed the sale of a total of 16,578,947 shares of common stock, no par value, to Credit Suisse Securities (USA) LLC, RBC Capital Market Corporation and Sandler O’Neil & Partners, L.P. at $19.00 per share in a public underwritten offering. The net proceeds from the offering were approximately $320.07 million after deducting underwriting discounts and commissions and the estimated expenses of the offering payable by the Corporation. The Corporation intends to use the net proceeds of the offering, which qualify as tangible common equity and Tier 1 capital, for general corporate purposes, including the contribution of all or substantially all of the net proceeds to the capital of FirstMerit Bank, N.A., which may use such amount for its general corporate purposes following the Midwest Bank acquisition.

Integration

On July 10, 2010, FirstMerit successfully completed the operational and technical migration of George Washington Savings Bank which the Corporation acquired from the FDIC on February, 19 2010. FirstMerit expects to complete the conversion of Midwest Bank and Trust in September.

Second Quarter 2010 Conference Call

FirstMerit Corporation senior management will host an earnings conference call today at 2:00 p.m. (Eastern Time) to provide an overview of second quarter 2010 results and highlights. To participate in the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 86358126. A replay of the conference call will be available at approximately 5:00 p.m. (Eastern Time) on July 27, 2010 through August 10, 2010 by dialing (800) 642-1687, and entering the PIN: 86358126.

About FirstMerit Corporation

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $14.5 billion as of June 30, 2010 and 206 banking offices and 224 ATMs in Ohio, Western Pennsylvania and the Chicago area. FirstMerit Corporation 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.

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FirstMerit Corporation Reports Second Quarter 2010 EPS Results / Page 6

Subsequent Events

The Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the June 30, 2010 consolidated financial statements on Form 10-Q. As a result, the Corporation will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of June 30, 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 AND SUBSIDIARIES Consolidated Financial Highlights


	Quarters
(Unaudited)	2010			2010			2009			2009			2009
(Dollars in thousands)	2nd Qtr			1st Qtr			4th Qtr			3rd Qtr			2nd Qtr

EARNINGS
Net interest income FTE (a)	$	118,817		$	92,348		$	89,171		$	89,079		$	88,806
Provision for loan losses		20,633			25,493			29,960			23,887			26,521
Other income		53,209			55,091			52,701			51,567			50,845
Other expenses		105,723			94,013			94,885			84,165			90,564
FTE adjustment (a)		2,050			1,954			1,793			1,702			1,691
Net income		31,493			18,764			14,478			22,763			15,495
Diluted EPS (b)		0.32			0.21			0.17			0.27			0.13

PERFORMANCE RATIOS
Return on average assets (ROA)		0.94	%		0.67	%		0.54	%		0.85	%		0.57	%
Return on average common equity (ROE)		9.61	%		6.96	%		5.38	%		8.69	%		6.27	%
Net interest margin FTE (a)		4.04	%		3.72	%		3.64	%		3.61	%		3.56	%
Efficiency ratio		61.30	%		63.61	%		67.74	%		61.05	%		65.34	%
Number of full-time equivalent employees		3,095			2,723			2,495			2,522			2,540

MARKET DATA
Book value/common share	$	13.87		$	12.72		$	12.25		$	12.34		$	11.99
Period-end common share mkt value		17.13			21.57			20.14			19.03			17.00
Market as a % of book		124	%		170	%		164	%		154	%		142	%
Cash dividends/common share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
Common stock dividend payout ratio		48.48	%		76.19	%		94.12	%		59.26	%		123.08	%
Average basic common shares (b)		98,968			87,771			86,149			85,872			84,123
Average diluted common shares (b)		98,969			87,777			86,157			85,880			84,131
Period end common shares		108,786			90,810			87,004			85,869			85,266
Common shares repurchased		46			115			35			13			61
Common stock market capitalization	$	1,863,504		$	1,958,772		$	1,752,261		$	1,634,087		$	1,449,522

ASSET QUALITY (excluding acquired loans)
Gross charge-offs	$	25,428		$	26,195		$	34,232		$	21,819		$	24,726
Net charge-offs		20,290			22,779			31,220			18,757			21,556
Allowance for loan losses		118,343			117,806			115,092			116,352			111,222
Reserve for unfunded lending commitments		6,812			6,337			5,751			4,470			6,054
Nonperforming assets (NPAs) (c)		109,781			123,320			101,001			88,881			73,351
Net charge-offs/average loans ratio (c)		1.18	%		1.36	%		1.79	%		1.05	%		1.19	%
Allowance for loan losses/period-end loans (c)		1.75	%		1.72	%		1.68	%		1.66	%		1.56	%
Allowance for credit losses/period-end loans (c)		1.84	%		1.82	%		1.77	%		1.72	%		1.64	%
NPAs/loans and other real estate (c)		1.62	%		1.80	%		1.48	%		1.26	%		1.03	%
Allowance for loan losses/nonperforming loans		119.43	%		105.14	%		125.55	%		147.60	%		175.17	%
Allowance for credit losses/nonperforming loans		126.31	%		110.80	%		131.82	%		153.27	%		184.71	%

CAPITAL & LIQUIDITY
Period-end tangible common equity to assets		7.34	%		7.93	%		8.89	%		8.65	%		8.36	%
Average equity to assets		9.76	%		9.63	%		10.11	%		9.77	%		9.37	%
Average equity to total loans (d)		15.91	%		15.39	%		15.37	%		14.72	%		14.07	%
Average total loans to deposits		78.32	%		85.18	%		93.94	%		95.57	%		95.17	%

AVERAGE BALANCES
Assets	$	13,472,179		$	11,357,110		$	10,559,231		$	10,629,359		$	10,884,228
Deposits		10,545,482			8,340,796			7,397,592			7,384,507			7,614,826
Loans, excluding acquired loans (d)		6,810,582			6,812,647			6,932,566			7,057,021			7,246,752
Acquired loans, including covered loans (d)		1,449,140			291,651			16,419			—			—
Earning assets		11,784,967			10,076,565			9,714,193			9,802,810			10,001,266
Shareholders’ equity		1,314,249			1,093,568			1,068,013			1,038,824			1,019,628

ENDING BALANCES
Assets	$	14,522,825		$	12,323,448		$	10,539,902		$	10,761,355		$	10,696,962
Deposits		11,515,171			9,370,009			7,515,796			7,271,274			7,451,220
Loans, excluding acquired loans (d)		6,779,941			6,836,451			6,835,425			7,029,648			7,145,146
Acquired loans, including covered loans (d)		2,288,402			533,888			88,064			—			—
Goodwill		465,648			187,945			139,598			139,245			139,245
Intangible assets		12,422			5,659			1,158			1,143			1,229
Earning assets		12,697,914			10,791,443			9,685,155			9,793,244			9,869,183
Total shareholders’ equity		1,508,719			1,155,353			1,065,627			1,059,209			1,022,647


NOTES:

(a) -		Net interest income on a fully tax-equivalent (“FTE”) basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis is not an accounting principle generally accepted in the United States of America.

(b) -		Average outstanding shares and per share data restated to reflect the effect of stock dividends declared April 28, 2009 and August 20, 2009.

(c) -		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.

(d) -		Excludes loss share receivable

PART I – FINANCIAL INFORMATION

ITEM 1. FINANCIAL STATEMENTS

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS


(In thousands)	June 30,			December 31,			June 30,
(Unaudited, except December 31, 2009, which is derived from the audited financial statements)	2010			2009			2009
ASSETS
Cash and due from banks	$	620,515		$	161,033		$	156,590
Investment securities
Held-to-maturity		65,160			50,686			27,549
Available-for-sale		3,068,614			2,565,264			2,546,939
Other investments		160,222			128,888			128,769
Loans held for sale		24,733			16,828			20,780
Noncovered loans:
Commercial loans		4,335,392			4,066,522			4,181,857
Mortgage loans		430,550			463,416			503,890
Installment loans		1,370,400			1,425,373			1,497,211
Home equity loans		762,288			753,112			754,110
Credit card loans		146,253			153,525			148,104
Leases		58,555			61,541			59,974

Total noncovered loans		7,103,438			6,923,489			7,145,146
Covered loans (includes loss share receivable of $311 million)		2,275,747			—			—

Total loans		9,379,185			6,923,489			7,145,146
Less: allowance for loan losses		(118,343	)		(115,092	)		(111,222	)

Net loans		9,260,842			6,808,397			7,033,924
Premises and equipment, net		169,563			125,205			127,284
Goodwill		465,648			139,598			139,245
Intangible assets		12,422			1,158			1,229
Other real estate covered by FDIC loss share		50,460			—			—
Accrued interest receivable and other assets		624,646			542,845			514,653

Total assets	$	14,522,825		$	10,539,902		$	10,696,962

LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand-non-interest bearing	$	2,621,994		$	2,069,921			1,885,087
Demand-interest bearing		718,891			677,448			648,132
Savings and money market accounts		4,353,579			3,408,109			2,851,236
Certificates and other time deposits		3,820,707			1,360,318			2,066,765

Total deposits		11,515,171			7,515,796			7,451,220

Federal funds purchased and securities sold under agreements to repurchase		744,055			996,345			1,069,945
Wholesale borrowings		474,963			740,105			924,438
Accrued taxes, expenses, and other liabilities		279,917			222,029			228,712

Total liabilities		13,014,106			9,474,275			9,674,315

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, 93,633,871 and 92,026,350 at June 30, 2010, December 31, 2009 and June 30, 2009, respectively		127,937			127,937			127,937
Capital surplus		483,958			88,573			45,674
Accumulated other comprehensive loss		(4,517	)		(25,459	)		(33,431	)
Retained earnings		1,062,792			1,043,625			1,055,283
Treasury stock, at cost, 6,335,809, 6,629,995 and 6,760,676 shares at June 30, 2010, December 31, 2009 and June 30, 2009, respectively		(161,451	)		(169,049	)		(172,816	)

Total shareholders’ equity		1,508,719			1,065,627			1,022,647

Total liabilities and shareholders’ equity	$	14,522,825		$	10,539,902		$	10,696,962


FIRSTMERIT CORPORATION AND SUBSIDIARIES AVERAGE CONSOLIDATED BALANCE SHEETS


	Quarterly Periods
(Unaudited)	June 30,			March 31,			December 31,			September 30,			June 30,
(Dollars in thousands)	2010			2010			2009			2009			2009
ASSETS
Cash and due from banks	$	710,981		$	521,666		$	167,608		$	159,985		$	194,381
Investment securities
Held-to-maturity		64,650			56,322			43,228			32,017			28,821
Available-for-sale		3,088,011			2,731,639			2,577,759			2,568,348			2,576,994
Other investments		146,620			129,658			128,214			128,067			128,056
Loans held for sale		18,827			14,538			16,007			17,357			20,643
Noncovered loans:
Commercial loans		4,376,059			4,197,663			4,058,851			4,105,778			4,263,114
Mortgage loans		438,243			454,525			472,829			492,089			513,982
Installment loans		1,377,748			1,402,552			1,449,091			1,492,019			1,512,929
Home equity loans		763,943			757,094			756,478			758,353			749,097
Credit card loans		145,880			150,117			151,233			149,460			146,589
Leases		59,049			60,430			60,503			59,322			61,041

Total noncovered loans		7,160,922			7,022,381			6,948,985			7,057,021			7,246,752
Covered loans and loss share receivable		1,305,937			122,027			—			—			—

Total loans		8,466,859			7,144,408			6,948,985			7,057,021			7,246,752
Less: allowance for loan losses		116,639			115,031			113,438			111,073			104,864

Net loans		8,350,220			7,029,377			6,835,547			6,945,948			7,141,888
Total earning assets		11,784,967			10,076,565			9,714,193			9,802,810			10,001,266
Premises and equipment, net		167,006			141,405			126,073			127,096			129,433
Accrued interest receivable and other assets		925,864			732,505			664,795			650,541			664,012

TOTAL ASSETS	$	13,472,179		$	11,357,110		$	10,559,231		$	10,629,359		$	10,884,228


LIABILITIES
Deposits:
Demand-non-interest bearing	$	2,492,539		$	2,146,969		$	2,028,977		$	1,947,359		$	1,891,792
Demand-interest bearing		698,261			687,233			651,381			647,712			671,235
Savings and money market accounts		4,228,323			3,709,246			3,175,825			2,916,980			2,810,155
Certificates and other time deposits		3,126,359			1,797,348			1,541,409			1,872,456			2,241,644


Total deposits		10,545,482			8,340,796			7,397,592			7,384,507			7,614,826

Federal funds purchased and securities sold under agreements to repurchase		843,652			951,927			1,076,199			1,087,875			945,178
Wholesale borrowings		526,926			708,414			762,023			883,377			1,019,786


Total funds		11,916,060			10,001,137			9,235,814			9,355,759			9,579,790
Accrued taxes, expenses and other liabilities		241,870			262,405			255,404			234,776			284,810


Total liabilities		12,157,930			10,263,542			9,491,218			9,590,535			9,864,600

SHAREHOLDERS’ EQUITY
Preferred stock		—			—			—			—			27,850
Common stock		127,937			127,937			127,937			127,937			127,937
Common stock warrant		—			—			—			—			2,820
Capital surplus		307,929			106,350			74,213			55,732			63,457
Accumulated other comprehensive loss		(15,913	)		(20,593	)		(9,266	)		(26,793	)		(35,569	)
Retained earnings		1,057,754			1,049,774			1,047,097			1,050,359			1,056,739
Treasury stock		(163,458	)		(169,900	)		(171,968	)		(168,411	)		(223,606	)


Total shareholders’ equity		1,314,249			1,093,568			1,068,013			1,038,824			1,019,628


TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY	$	13,472,179		$	11,357,110		$	10,559,231		$	10,629,359		$	10,884,228

AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited) Fully Tax-equivalent Interest Rates and Interest Differential


	Three months ended								Year ended								Three months ended
	June 30, 2010								December 31, 2009								June 30, 2009
FIRSTMERIT CORPORATION AND SUBSIDIARIES	Average					Average			Average					Average			Average					Average
(Dollars in thousands)	Balance			Interest		Rate			Balance			Interest		Rate			Balance			Interest		Rate

ASSETS
Cash and due from banks	$	710,981							$	183,215							$	194,381
Investment securities and federal funds sold:
U.S. Treasury securities and U.S. Government agency obligations (taxable)		2,736,884			23,462		3.44	%		2,222,771			97,871		4.40	%		2,205,221			24,455		4.45	%
Obligations of states and political subdivisions (tax exempt)		349,424			5,184		5.95	%		321,919			19,718		6.13	%		316,703			4,910		6.22	%
Other securities and federal funds sold		212,973			2,139		4.03	%		204,272			8,394		4.11	%		211,947			2,204		4.17	%

Total investment securities and federal funds sold		3,299,281			30,785		3.74	%		2,748,962			125,983		4.58	%		2,733,871			31,569		4.63	%

Loans held for sale		18,827			239		5.09	%		19,289			1,032		5.35	%		20,643			277		5.38	%
Noncovered loans, covered loans and loss share receivable		8,466,859			109,840		5.20	%		7,156,983			339,381		4.74	%		7,246,752			86,004		4.76	%

Total earning assets		11,784,967			140,864		4.79	%		9,925,234			466,396		4.70	%		10,001,266			117,850		4.73	%
Allowance for loan losses		(116,639	)							(108,017	)							(104,864	)
Other assets		1,092,870								793,062								793,445


Total assets	$	13,472,179							$	10,793,494							$	10,884,228


LIABILITIES AND SHAREHOLDERS’ EQUITY
Deposits:
Demand — non-interest bearing	$	2,492,539			—		—		$	1,910,171			—		—		$	1,891,792			—		—
Demand — interest bearing		698,261			149		0.09	%		656,367			600		0.09	%		671,235			159		0.10	%
Savings and money market accounts		4,228,323			7,873		0.75	%		2,886,842			23,472		0.81	%		2,810,155			5,452		0.78	%
Certificates and other time deposits		3,126,359			9,510		1.22	%		2,056,208			54,610		2.66	%		2,241,644			15,325		2.74	%


Total deposits		10,545,482			17,532		0.67	%		7,509,588			78,682		1.05	%		7,614,826			20,936		1.10	%

Securities sold under agreements to repurchase		843,652			1,404		0.67	%		1,013,167			4,764		0.47	%		945,178			1,211		0.51	%
Wholesale borrowings		526,926			3,111		2.37	%		952,979			27,317		2.87	%		1,019,786			6,897		2.71	%


Total interest bearing liabilities		9,423,521			22,047		0.94	%		7,565,563			110,763		1.46	%		7,687,998			29,044		1.52	%

Other liabilities		241,870								267,835								284,810

Shareholders’ equity		1,314,249								1,049,925								1,019,628


Total liabilities and shareholders’ equity	$	13,472,179							$	10,793,494							$	10,884,228


Net yield on earning assets	$	11,784,967			118,817		4.04	%	$	9,925,234			355,633		3.58	%	$	10,001,266			88,806		3.56	%


Interest rate spread							3.85	%							3.24	%							3.21	%


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


	Quarters ended						Six months ended
(Unaudited)	June 30,						June 30,
(In thousands except per share data)	2010			2009			2010		2009
Interest income:
Interest and fees on loans, including held for sale	$	110,319		$	86,247			193,469		174,046
Investment securities
Taxable		25,602			26,659			50,472		54,954
Tax-exempt		3,288			3,253			6,627		6,515

Total investment securities interest		28,890			29,912			57,099		61,469
Other earning assets		(395	)		—			100		—

Total interest income		138,814			116,159			250,668		235,515

Interest expense:
Interest on deposits:
Demand-interest bearing		149			159			301		314
Savings and money market accounts		7,873			5,452			15,474		10,829
Certificates and other time deposits		9,510			15,325			15,916		33,913
Interest on securities sold under agreements to repurchase		1,404			1,211			2,531		2,210
Interest on wholesale borrowings		3,111			6,897			9,285		14,240

Total interest expense		22,047			29,044			43,507		61,506

Net interest income		116,767			87,115			207,161		174,009
Provision for loan losses		20,633			26,521			46,126		44,586

Net interest income after provision for loan losses		96,134			60,594			161,035		129,423

Other income:
Trust department income		5,574			5,438			10,855		10,228
Service charges on deposits		17,737			15,853			33,103		30,016
Credit card fees		12,242			11,668			23,800		22,752
ATM and other service fees		2,844			2,839			5,353		5,445
Bank owned life insurance income		2,886			2,985			8,538		6,000
Investment services and insurance		2,535			2,270			4,463		5,188
Investment securities gains, net		651			1,178			651		1,178
Loan sales and servicing income		2,975			3,791			6,212		6,126
Gain on George Washington acquistion		—			—			6,232		—
Gain on post medical retirement curtailment		—			—			—		9,543
Other operating income		5,765			4,823			9,093		9,557

Total other income		53,209			50,845			108,300		106,033

Other expenses:
Salaries, wages, pension and employee benefits		51,899			44,125			100,055		86,807
Net occupancy expense		7,680			5,858			14,820		12,729
Equipment expense		6,735			6,212			12,785		12,009
Stationery, supplies and postage		2,696			2,051			5,389		4,326
Bankcard, loan processing and other costs		7,663			7,862			15,481		15,704
Professional services		7,845			2,856			13,082		6,336
Amortization of intangibles		669			87			903		174
FDIC expense		4,416			8,496			8,181		11,052
Other operating expense		16,120			13,017			29,040		24,630

Total other expenses		105,723			90,564			199,736		173,767

Income before federal income tax expense		43,620			20,875			69,599		61,689
Federal income tax expense		12,127			5,380			19,342		16,760

Net income	$	31,493		$	15,495			50,257		44,929


Other comprehensive income, net of taxes
Unrealized securities’ holding gain, net of taxes	$	16,889		$	6,246			21,365		22,063
Unrealized hedging loss, net of taxes		—			—			—		(94	)
Less: reclassification adjustment for securities’ gain realized in income, net of taxes		423			766			423		766
Minimum pension liability adjustment, net of taxes		—			(277	)		—		(554	)

Total other comprehensive gain, net of taxes		16,466			5,203			20,942		20,649

Comprehensive income	$	47,959		$	20,698			71,199		65,578

Net income applicable to common shares	$	31,493		$	10,995			50,257		38,558

Net income used in diluted EPS calculation	$	31,493		$	10,995			50,257		38,558

Weighted average number of common shares outstanding — basic *		98,968			84,123			93,400		83,323

Weighted average number of common shares outstanding — diluted *		98,969			84,131			93,403		83,331

Basic earnings per share *	$	0.32		$	0.13			0.54		0.46

Diluted earnings per share *	$	0.32		$	0.13			0.54		0.46

Dividend per share	$	0.16		$	0.16			0.32		0.45


*		Average outstanding shares and per share data as of June 30, 2009 are restated to reflect the effect of stock dividends declared April 28, 2009 and August 20, 2009.


FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME—LINKED QUARTERS


	Quarterly Results
(Unaudited)	2010			2010		2009			2009		2009
(Dollars in thousands, except share data)	2nd Q			1st Q		4th Q			3rd Q		2nd Q
Interest and fees on loans, including held for sale	$	110,319		$	83,150	$	81,907		$	84,283	$	86,247
Interest and dividends — securities and federal funds sold		28,890			28,209		28,434			29,388		29,912
Other earning assets		(395	)		495		—			—		—

Total interest income		138,814			111,854		110,341			113,671		116,159

Interest on deposits:
Demand-interest bearing		149			152		149			137		159
Savings and money market accounts		7,873			7,601		6,880			5,763		5,452
Certificates and other time deposits		9,510			6,406		8,413			12,284		15,325
Securities sold under agreements to repurchase		1,404			1,127		1,268			1,286		1,211
Wholesale borrowings		3,111			6,174		6,253			6,824		6,897

Total interest expense		22,047			21,460		22,963			26,294		29,044

Net interest income		116,767			90,394		87,378			87,377		87,115
Provision for loan losses		20,633			25,493		29,960			23,887		26,521

Net interest income after provision for loan losses		96,134			64,901		57,418			63,490		60,594

Other income:
Trust department income		5,574			5,281		5,374			5,081		5,438
Service charges on deposits		17,737			15,366		16,568			16,782		15,853
Credit card fees		12,242			11,558		12,049			11,711		11,668
ATM and other service fees		2,844			2,509		2,730			2,935		2,839
Bank owned life insurance income		2,886			5,652		4,524			3,216		2,985
Investment services and insurance		2,535			1,928		2,322			2,498		2,270
Investment securities gains, net		651			—		1,934			2,925		1,178
Loan sales and servicing income		2,975			3,237		2,947			3,881		3,791
Gain on George Washington acquisition		—			6,232		—			—		—
Other operating income		5,765			3,328		4,253			2,538		4,823

Total other income		53,209			55,091		52,701			51,567		50,845

Other expenses:
Salaries, wages, pension and employee benefits		51,899			48,156		45,748			43,351		44,125
Net occupancy expense		7,680			7,140		5,631			5,739		5,858
Equipment expense		6,735			6,050		6,445			5,847		6,212
Stationery, supplies and postage		2,696			2,693		2,414			2,167		2,051
Bankcard, loan processing and other costs		7,663			7,818		8,215			7,548		7,862
Professional services		7,845			5,237		6,098			3,980		2,856
Amortization of intangibles		669			234		87			86		87
FDIC expense		4,416			3,765		3,160			2,298		8,496
Other operating expense		16,120			12,920		17,087			13,149		13,017

Total other expenses		105,723			94,013		94,885			84,165		90,564

Income before income tax expense		43,620			25,979		15,234			30,892		20,875
Federal income taxes		12,127			7,215		756			8,129		5,380

Net income	$	31,493		$	18,764	$	14,478		$	22,763	$	15,495

Other comprehensive income (loss), net of taxes		16,466			4,476		(18,022	)		25,994		5,203

Comprehensive income	$	47,959		$	23,240	$	(3,544	)	$	48,757	$	20,698

Net income applicable to common shares	$	31,493		$	18,764	$	14,478		$	22,763	$	10,995

Adjusted net income used in diluted EPS calculation	$	31,493		$	18,764	$	14,478		$	22,763	$	10,995

Weighted-average common shares — basic *		98,968			87,771		86,149			85,872		84,123

Weighted-average common shares — diluted *		98,969			87,777		86,157			85,880		84,131


Basic net income per share *	$	0.32		$	0.21	$	0.17		$	0.27	$	0.13


Diluted net income per share *	$	0.32		$	0.21	$	0.17		$	0.27	$	0.13


*		Average outstanding shares and per share data restated to reflect the effect of stock dividends declared April 28, 2009 and August 20, 2009.


FIRSTMERIT CORPORATION AND SUBSIDIARIES ASSET QUALITY INFORMATION

(Unaudited, except December 31, 2009 annual period which
is derived from the audited financial statements)
(Dollars in thousands, except ratios)


	Quarterly Periods															Annual Period
	June 30			Mar 31			Dec 31			Sept 30			Jun 30			Dec 31
	2010			2010			2009			2009			2009			2009
Allowance for Credit Losses

Allowance for loan losses, beginning of period	$	117,806		$	115,092		$	116,352		$	111,222		$	106,257		$	103,757
Provision for loan losses		20,633			25,493			29,960			23,887			26,521			98,433
Change in loss share receivable		194			—			—			—			—			—
Charge-offs		25,428			26,195			34,232			21,819			24,726			99,713
Recoveries		5,138			3,416			3,012			3,062			3,170			12,615

Net charge-offs		20,290			22,779			31,220			18,757			21,556			87,098

Allowance for loan losses, end of period	$	118,343		$	117,806		$	115,092		$	116,352		$	111,222		$	115,092

Reserve for unfunded lending commitments, beginning of period	$	6,337		$	5,751		$	4,470		$	6,054		$	6,019		$	6,588
Provision for credit losses		475			586			1,281			(1,584	)		35			(837	)

Reserve for unfunded lending commitments, end of period	$	6,812		$	6,337		$	5,751		$	4,470		$	6,054		$	5,751


Allowance for Credit Losses	$	125,155		$	124,143		$	120,843		$	120,822		$	117,276		$	120,843


Ratios (a)

Provision for loan losses as a % of average loans		1.22	%		1.52	%		1.71	%		1.34	%		1.47	%		1.38	%
Provision for credit losses as a % of average loans		0.03	%		0.03	%		0.07	%		-0.09	%		0.00	%		-0.01	%
Net charge-offs as a % of average loans		1.18	%		1.36	%		1.79	%		1.05	%		1.19	%		1.22	%
Allowance for loan losses as a % of period-end loans		1.75	%		1.72	%		1.68	%		1.66	%		1.56	%		1.58	%
Allowance for credit losses as a % of period-end loans		1.84	%		1.82	%		1.77	%		1.72	%		1.64	%		1.66	%
Allowance for loan losses as a % of nonperforming loans		119.43	%		105.14	%		125.55	%		147.60	%		175.17	%		125.55	%
Allowance for credit losses as a % of nonperforming loans		126.31	%		110.80	%		131.82	%		153.27	%		184.71	%		131.82	%

Asset Quality (a)

Impaired loans:
Nonaccrual	$	84,535		$	94,798		$	74,033		$	63,357		$	48,563		$	74,033
Other nonperforming loans:
Nonaccrual		14,394			17,245			17,639			15,474			14,929			17,639


Total nonperforming loans		98,929			112,043			91,672			78,831			63,492			91,672

Other real estate (“ORE”)		10,852			11,277			9,329			10,050			9,859			9,329


Total nonperforming assets (“NPAs”)	$	109,781		$	123,320		$	101,001		$	88,881		$	73,351		$	101,001


NPAs as % of period-end loans + ORE		1.62	%		1.80	%		1.48	%		1.26	%		1.03	%		1.39	%


Past due 90 days or more & accruing interest	$	36,932		$	21,099		$	35,025		$	27,764		$	22,129		$	35,025


(a)		Excludes acquired loans and loss share receivable with a period end balance of $2.6 billion and $.6 million at June 30,2010 and March 31, 2010, respectively, and ORE covered by an FDIC loss share with a period end balance of $50.5 million and $22.8 million at June 30, 2010 and March 31, 2010, respectively, which, as required by current accounting guidance, were recorded at fair value on the date of acquistion.


FIRSTMERIT CORPORATION
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL

(Unaudited)
(Dollars in thousands)


	2010		2010		2009		2009		2009
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
QUARTERLY OTHER INCOME DETAIL

Trust department income	$	5,574	$	5,281	$	5,374	$	5,081	$	5,438
Service charges on deposits		17,737		15,366		16,568		16,782		15,853
Credit card fees		12,242		11,558		12,049		11,711		11,668
ATM and other service fees		2,844		2,509		2,730		2,935		2,839
Bank owned life insurance income		2,886		5,652		4,524		3,216		2,985
Investment services and insurance		2,535		1,928		2,322		2,498		2,270
Investment securities gains, net		651		—		1,934		2,925		1,178
Loan sales and servicing income		2,975		3,237		2,947		3,881		3,791
Gain on George Washington acquisition		—		6,232		—		—		—
Other operating income		5,765		3,328		4,253		2,538		4,823


Total Other Income	$	53,209	$	55,091	$	52,701	$	51,567	$	50,845


	2010		2010		2009		2009		2009
	2nd Qtr		1st Qtr		4th Qtr		3rd Qtr		2nd Qtr
QUARTERLY OTHER EXPENSES DETAIL

Salaries, wages, pension and employee benefits	$	51,899	$	48,156	$	45,748	$	43,351	$	44,125
Net occupancy expense		7,680		7,140		5,631		5,739		5,858
Equipment expense		6,735		6,050		6,445		5,847		6,212
Taxes, other than federal income taxes		2,236		1,938		1,593		1,646		1,631
Stationery, supplies and postage		2,696		2,693		2,414		2,167		2,051
Bankcard, loan processing and other costs		7,663		7,818		8,215		7,548		7,862
Advertising		2,407		1,592		1,510		1,635		1,887
Professional services		7,845		5,237		6,098		3,980		2,856
Telephone		1,267		1,133		1,039		1,010		997
Amortization of intangibles		669		234		87		86		87
Hedge termination		—		—		3,877		—		—
FDIC expense		4,416		3,765		3,160		2,298		8,496
Other operating expense		10,210		8,257		9,068		8,858		8,502


Total Other Expenses	$	105,723	$	94,013	$	94,885	$	84,165	$	90,564


FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES — Net Charge-off Detail


(Unaudited)
(Dollars in thousands)	Quarters ended						Year ended			Six months ended
	June 30,						December 31,			June 30,
	2010			2009			2009			2010			2009
Allowance for loan losses — beginning of period	$	117,806		$	106,257		$	103,757		$	115,092		$	103,757
Loans charged off:
Commercial		7,183			10,130			39,685			16,078			14,684
Mortgage		1,395			1,315			4,960			3,041			2,238
Installment		8,430			7,487			31,622			17,235			15,925
Home equity		2,761			1,497			7,200			4,831			3,032
Credit cards		4,010			3,696			13,558			8,178			6,663
Leases		617			3			97			637			3
Overdrafts		812			598			2,591			1,403			1,117
Covered loans		220			—			—			220			—

Total		25,428			24,726			99,713			51,623			43,662

Recoveries:
Commercial		430			207			890			802			431
Mortgage		38			193			270			63			219
Installment		3,081			2,022			8,329			5,098			4,423
Home equity		444			111			494			701			196
Credit cards		608			388			1,710			1,081			775
Manufactured housing		55			32			171			86			85
Leases		229			42			57			238			47
Overdrafts		253			175			694			485			365
Covered loans		—			—			—			—			—

Total		5,138			3,170			12,615			8,554			6,541


Net charge-offs		20,290			21,556			87,098			43,069			37,121
Provision for loan losses		20,633			26,521			98,433			46,126			44,586
Change in loss share receivable		194			—			—			194			—

Allowance for loan losses — end of period	$	118,343		$	111,222		$	115,092		$	118,343		$	111,222


Average loans (a)	$	6,810,582		$	7,246,752		$	7,152,845		$	6,810,923		$	7,313,516

Ratio to average loans (a):
(Annualized) net charge-offs		1.18	%		1.19	%		1.22	%		1.27	%		1.02	%

Provision for loan losses		1.22	%		1.47	%		1.38	%		1.37	%		1.23	%

Loans, period-end (excluding acquired loans) (a)	$	6,779,941		$	7,145,146		$	6,835,425		$	6,779,941		$	7,145,146


Allowance for credit losses (a):	$	125,155		$	117,276		$	120,843		$	125,155		$	117,276

As a multiple of (annualized) net charge-offs		1.55			1.36			1.39			1.45			1.57

Allowance for loan losses (a):
As a percent of period-end loans		1.75	%		1.56	%		1.68	%		1.75	%		1.56	%

As a multiple of (annualized) net charge-offs		1.47			1.29			1.32			1.37			1.49


(a)		Excludes acquired losses and loss share receivable.

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