-----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, SBCokjUL7kgLNJpAk21boR2rilKuGbJOwD5BR22nNB+qRxTO/qEGZfXe3HplRoNu 1dyZgmWuXHCKLAHuSIqo0Q== 0000950152-09-004254.txt : 20090428 0000950152-09-004254.hdr.sgml : 20090428 20090428144834 ACCESSION NUMBER: 0000950152-09-004254 CONFORMED SUBMISSION TYPE: 8-K PUBLIC DOCUMENT COUNT: 4 CONFORMED PERIOD OF REPORT: 20090428 ITEM INFORMATION: Results of Operations and Financial Condition ITEM INFORMATION: Financial Statements and Exhibits FILED AS OF DATE: 20090428 DATE AS OF CHANGE: 20090428 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: 09775277 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 l36277ae8vk.htm FORM 8-K FORM 8-K
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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) April 28, 2009
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, 7th 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))
 
 

 

TABLE OF CONTENTS

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION
ITEM 9.01 FINANCIAL STATEMENTS AND EXHIBITS
SIGNATURES
EX-99.1

Table of Contents

ITEM 2.02 RESULTS OF OPERATIONS AND FINANCIAL CONDITION.
     On April 28, 2009, FirstMerit Corporation (the "Company") announced earnings for the quarter ended March 31, 2009. 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 April 28, 2009.

 

Table of Contents

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: April 28, 2009

 

EX-99.1 2 l36277aexv99w1.htm EX-99.1 EX-99.1
(FIRSTMERIT LOGO)
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 Reports First Quarter 2009 EPS of $0.34 Per Share
Akron, Ohio (April 28, 2009) — FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2009 net income of $29.4 million, or $0.34 per diluted share. This compares with $29.1 million, or $0.36 per diluted share, for the fourth quarter 2008 and $31.4 million, or $0.39 per diluted share, for the first quarter 2008.
     Returns on average common equity (“ROE”) and average assets (“ROA”) for the first quarter 2009 were 11.12% and 1.07%, respectively, compared with 12.47% and 1.08% for the fourth quarter 2008 and 13.56% and 1.22% for the first quarter 2008.
     “FirstMerit is positioned to take advantage of the many opportunities within our footprint while facing the challenges of today’s economy,” said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation. “Execution on our super community bank model continues to generate profitable organic growth in our core markets. Our first quarter performance delivered strong results for our shareholders.”
     Net interest margin was 3.53% for the first quarter of 2009 compared with 3.82% for the fourth quarter of 2008 and 3.60% for the first quarter of 2008, reflecting a rapid decline in market interest rates late in the fourth quarter of 2008 and the impact on rates earned on loans repricing more quickly than the rates paid on interest-bearing deposits.
     Average loans during the first quarter of 2009 increased $14.8 million, or 0.20%, compared to the fourth quarter of 2008 and $357.1 million, or 5.08%, compared with the first quarter of 2008. Increases in the respective periods were due to average commercial loan growth of $64.0 million, or 1.50%, and $395.5 million, or 10.03%.
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FirstMerit Reports First Quarter 2009 EPS Results / Page 2
     Average deposits during the first quarter of 2009 decreased $28.4 million, or 0.37%, compared with the fourth quarter of 2008 and increased $314.0 million, or 4.28%, compared with the first quarter of 2008. During the first quarter of 2009 the Company increased its average core deposits, which excludes time deposits, by $260.5 million, or 5.43%, compared with the fourth quarter of 2008, and $593.4 million, or 13.28%, compared with the first quarter of 2008.
     Average investments increased $283.6 million, or 11.34%, compared with the fourth quarter of 2008 and increased $276.8 million, or 11.04%, over the first quarter of 2008.
     Net interest income on a fully tax-equivalent (“FTE”) basis was $88.6 million in the first quarter 2009 compared with $94.9 million in the fourth quarter of 2008 and $85.7 million in the first quarter of 2008. Compared with the fourth quarter of 2008, average earning assets increased $312.7 million, or 3.17% and $608.1 million or 6.35% compared to the first quarter of 2008.
     Noninterest income net of securities transactions for the first quarter of 2009 was $55.2 million, an increase of $3.9 million, or 7.70%, from the fourth quarter of 2008 and an increase of $2.9 million, or 5.46%, from the first quarter of 2008. Included in noninterest income in the first quarter 2008 was a $7.9 million gain from the partial redemption of Visa, Inc. shares.
     The primary changes in other income for the 2009 first quarter as compared to the first quarter of 2008 were as follows: trust income was $4.8 million, down 12.11% primarily due to declines in the equity markets; service charges on deposits was $14.2 million, down 3.89% primarily attributable to fewer overdraft items and customer preferences to hold larger balances; credit card fees were $11.1 million, down 0.65%; loan sales and servicing income was $2.3 million, an increase of $0.9 million, primarily attributable to refinancing in the current low rate mortgage market environment; bank owned life insurance income was $3.0 million, down 5.81%; and other operating income was $14.3 million, an increase of $11.4 million. Included in other operating income was $9.5 million, due to curtailment of the postretirement medical benefit plan for active employees.
     Other income, net of securities gains, as a percentage of net revenue for the first quarter of 2009 was 38.39% compared with 35.07% for fourth quarter of 2008 and 37.91% for the first quarter of 2008. Net revenue is defined as net interest income, on a FTE basis, plus other income, less gains from securities sales.
     Noninterest expense for the first quarter of 2009 was $83.2 million, a decrease of $5.0 million, or 5.71%, from the fourth quarter of 2008 and an increase of $2.0 million, or 2.42%, from the first quarter of 2008. For the three months ended March 31, 2009, increases in operating expenses compared to the first quarter 2008 were primarily attributable to an increase in professional services. Professional services were $3.5 million, up $1.6 million as compared to first quarter 2008.
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FirstMerit Reports First Quarter 2009 EPS Results / Page 3
     During the first quarter of 2009, the Company improved its efficiency ratio to 57.81%, compared with 60.34% for the fourth quarter of 2008 and 58.69% for the first quarter of 2008.
     “Expense management combined with a focus on revenue growth enhances our operating efficiencies,” commented Mr. Grieg. “For seven consecutive quarters we have increased total revenue over the prior year results.”
     Net charge-offs totaled $15.6 million, or 0.86% of average loans, in the first quarter of 2009 compared with $15.2 million, or 0.82% of average loans, in the fourth quarter 2008 and $11.3 million, or 0.65% of average loans, in the first quarter of 2008.
     Nonperforming assets totaled $76.2 million at March 31, 2009, an increase of $18.7 million, or 32.54%, compared with December 31, 2008 and $40.9 million, or 115.98%, compared with March 31, 2008. Nonperforming assets at March 31, 2009 represented 1.04% of period-end loans plus other real estate compared with 0.77% at December 31, 2008 and 0.50% at March 31, 2009.
     The allowance for loan losses totaled $106.2 million at March 31, 2009, an increase of $2.5 million from December 31, 2008. At March 31, 2009, the allowance for loan losses was 1.45% of period-end loans compared with 1.40% at December 31, 2008 and 1.33% at March 31, 2008. The allowance for credit losses is the sum of the allowance for loan losses and the reserve for unfunded lending commitments. For comparative purposes the allowance for credit losses was 1.53% at March 31, 2009, compared with 1.49% at December 31, 2008 and 1.45% at March 31, 2008. The allowance for credit losses to nonperforming loans was 159.22% at March 31, 2009, compared with 211.38% at December 31, 2008 and 345.59% at March 31, 2008.
     The Company’s total assets at March 31, 2009 were $11.0 billion, a decrease of $127.9 million, or 1.15%, compared with December 31, 2008 and an increase of $455.3 million, or 4.33%, compared with March 31, 2008. Commercial loan growth of $324.8 million, or 8.08%, compared with March, 31, 2008, provided the majority of the overall asset growth. Total loans decreased $74.9 million compared with December 31, 2008 and increased $278.0 million over March 31, 2008.
     Total deposits were $7.7 billion at March 31, 2009, an increase of $80.5 million, or 1.06%, from December 31, 2008 and an increase of $255.5 million, or 3.44%, from March 31, 2008. The increase compared with March 31, 2008 was driven by an overall increase in savings and demand deposits. Core deposits totaled $5.3 billion at March 31, 2009, an increase of $464.6 million, or 9.65%, from December 31, 2008 and an increase of $713.2 million, or 15.61%, from March 31, 2008.
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FirstMerit Reports First Quarter 2009 EPS Results / Page 4
     Shareholders’ equity was $1,084.3 million at March 31, 2009, compared with $937.8 million at December 31, 2008 and $937.4 million at March 31, 2008. The Company increased its strong capital position as tangible common equity to assets was 7.56% at March 31, 2009, compared with 7.27% and 7.68% at December 31, 2008 and March 31, 2008, respectively. The common dividend per share paid in the first quarter 2009 was $0.29.
     On January 9, 2009, the Company completed the sale to the Treasury of $125.0 million of newly issued FirstMerit non-voting preferred shares as part of the Treasury’s Troubled Assets Relief Program Capital Purchase Program. FirstMerit issued and sold to the Treasury for an aggregate purchase price of $125.0 million in cash 125,000 shares of FirstMerit’s Fixed Rate Cumulative Perpetual Preferred Shares, Series A, each without par value and having a liquidation preference of $1,000 per share along with a warrant to purchase 952,260 shares of the Company’s common stock.
     On April 22, 2009, the Company completed the repurchase of all 125,000 shares of its Fixed Rate Cumulative Perpetual Preferred Stock, Series A from the United States Department of the Treasury. The preferred shares were repurchased at a price of approximately $126.2 million, which includes accrued and unpaid dividends of approximately $1.2 million. The repurchase of the preferred stock will result in a charge to the Company’s retained earnings of approximately 4.7 million, representing the unaccreted difference between the carrying value of the preferred stock and the repurchase price. The Company is currently evaluating the repurchase of the warrant and does not anticipate that the repurchase of the warrant will have an impact on the Company’s net income or net income available to common shareholders.
     The Company also announced today that its Board of Directors has declared a quarterly dividend of $0.16 per share on the Company’s common stock payable June 15, 2009 to shareholders of record on June 1, 2009. Shareholders of record on June 1, 2009, will also receive a $0.13 per share dividend of common stock. The change in the composition of the current dividend payment from all-cash will allow FirstMerit to retain as additional equity approximately $10.5 million per quarter, near term, which will serve to enhance the Company’s Tier I and tangible common equity ratios.
     Mr. Greig said, “FirstMerit has a strong capital position, with a tangible common equity to asset ratio of 7.56% at the end of the first quarter. Given the current climate of economic uncertainty, the Board of Directors determined that it would be prudent and in the best interests of FirstMerit’s shareholders to further strengthen its capital position. Changing the composition of the dividend to part cash and part stock will enable us to increase our level of retained earnings in order to add to our already high levels of capital.”
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FirstMerit Reports First Quarter 2009 EPS Results / Page 5
First Quarter 2009 Conference Call
FirstMerit will host an earnings conference call on April 28, 2009, at 2:00 p.m. EDT to provide an overview of first quarter results and highlights. To participate in the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 94237772. A replay of the conference call will be available at approximately 5:00 p.m., on April 28, 2009 through May 6, 2009, by dialing (800) 642-1687, and entering the PIN: 94237772.
About FirstMerit
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $11.0 billion as of March 31, 2009 and 158 banking offices and 172 ATMs in 25 Ohio and Western Pennsylvania counties. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal wholly-owned subsidiaries include: FirstMerit Bank, N.A., FirstMerit Mortgage Corporation, FirstMerit Title Agency, Ltd., and FirstMerit Community Development Corporation.
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 Company, 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 Company’s business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Company’s periodic reports and registration statements filed with the Securities and Exchange Commission. The Company undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
###

 

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited)
(Dollars in thousands) 		  (LOGO)
                                         
    Quarters
    2009   2008   2008   2008   2008
EARNINGS   1st Qtr   4th Qtr   3rd Qtr   2nd Qtr   1st Qtr
 
Net interest income FTE (a)
   $ 88,577     $ 94,855     $ 92,659     $ 88,956     $ 85,695  
Provision for loan losses
     18,065       16,986       15,531       14,565       11,521  
Other income
     55,188       52,795       47,029       48,758       52,854  
Other expenses
     83,203       88,240       80,609       80,550       81,234  
FTE adjustment (a)
     1,683       1,617       1,538       1,425       1,396  
Net income
     29,434       29,136       29,753       29,153       31,443  
Diluted EPS
     0.34       0.36       0.37       0.36       0.39  
 
                                        
PERFORMANCE RATIOS
                                        
Return on average assets (ROA)
     1.07 %     1.08 %     1.12 %     1.11 %     1.22 %
Return on average common equity (ROE)
     11.12 %     12.47 %     12.73 %     12.31 %     13.56 %
Net interest margin FTE (a)
     3.53 %     3.82 %     3.78 %     3.69 %     3.60 %
Efficiency ratio
     57.81 %     60.34 %     57.64 %     58.38 %     58.69 %
Number of full-time equivalent employees
     2,562       2,575       2,614       2,679       2,676  
 
                                        
MARKET DATA
                                        
Book value/common share
   $ 11.78     $ 11.58     $ 11.44     $ 11.43     $ 11.59  
Period-end common share mkt value
     18.20       20.59       21.00       16.31       20.66  
Market as a % of book
     155 %     178 %     184 %     143 %     178 %
Cash dividends/common share
   $ 0.29     $ 0.29     $ 0.29     $ 0.29     $ 0.29  
Common stock dividend payout ratio
     85.29 %     80.56 %     78.38 %     80.56 %     74.36 %
Average basic common shares
     81,293       80,972       80,869       80,855       80,655  
Average diluted common shares
     81,302       80,981       80,896       80,898       80,722  
Period end common shares
     81,417       80,960       80,974       80,846       80,879  
Common shares repurchased
     44,584       18,900       2,623       34,380       5,426  
Common stock market capitalization
   $ 1,481,789     $ 1,666,966     $ 1,700,454     $ 1,318,598     $ 1,670,960  
 
                                        
ASSET QUALITY
                                        
Gross charge-offs
   $ 18,936     $ 17,932     $ 14,957     $ 14,830     $ 14,669  
Net charge-offs
     15,565       15,236       11,763       10,737       11,315  
Allowance for loan losses
     106,257       103,757       102,007       98,239       94,411  
Reserve for unfunded lending commitments
     6,019       6,588       6,493       7,310       7,903  
Nonperforming assets (NPAs)
     76,243       57,526       43,491       41,639       35,301  
Net charge-offs/average loans ratio
     0.86 %     0.82 %     0.64 %     0.60 %     0.65 %
Allowance for loan losses/period-end loans
     1.45 %     1.40 %     1.38 %     1.36 %     1.33 %
Allowance for credit losses/period-end loans
     1.53 %     1.49 %     1.47 %     1.46 %     1.45 %
NPAs/loans and other real estate
     1.04 %     0.77 %     0.59 %     0.57 %     0.50 %
Allowance for loan losses/nonperforming loans
     151.35 %     198.76 %     264.45 %     268.52 %     318.89 %
Allowance for credit losses/nonperforming loans
     159.93 %     211.38 %     281.28 %     288.50 %     345.59 %
 
                                        
CAPITAL & LIQUIDITY
                                        
Period-end tangible common equity to assets
     7.56 %     7.27 %     7.45 %     7.52 %     7.68 %
Average equity to assets
     9.66 %     8.66 %     8.79 %     9.06 %     8.98 %
Average equity to loans
     14.54 %     12.62 %     12.76 %     13.34 %     13.27 %
Average loans to deposits
     96.56 %     96.01 %     99.40 %     97.29 %     95.82 %
 
AVERAGE BALANCES
                                        
Assets
   $ 11,115,042     $ 10,731,029     $ 10,569,496     $ 10,520,469     $ 10,388,359  
Deposits
     7,644,118       7,672,560       7,326,364       7,339,506       7,330,097  
Loans
     7,381,019       7,366,246       7,282,333       7,140,627       7,023,928  
Earning assets
     10,189,233       9,876,488       9,755,812       9,704,252       9,581,121  
Shareholders’ equity
     1,073,276       929,788       929,495       952,769       932,405  
 
                                        
ENDING BALANCES
                                        
Assets
   $ 10,972,176     $ 11,100,026     $ 10,684,845     $ 10,564,752     $ 10,516,828  
Deposits
     7,678,213       7,597,679       7,430,556       7,277,184       7,422,678  
Loans
     7,350,763       7,425,613       7,381,592       7,240,882       7,072,797  
Goodwill
     139,245       139,245       139,245       139,245       139,245  
Intangible assets
     1,316       1,403       1,490       1,577       1,754  
Earning assets
     10,108,403       10,209,602       9,840,951       9,724,859       9,688,270  
Total shareholders’ equity
     1,084,269       937,843       926,078       924,429       937,439  
 
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.

6

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS
(In thousands)
(Unaudited, except December 31, 2008, which is derived from the audited financial statements)
                         
    March 31,     December 31,     March 31,  
    2009     2008     2008  
ASSETS
                        
Cash and due from banks
   $ 179,397     $ 178,406     $ 200,852  
Investment securities (at fair value)
     2,735,232       2,772,848       2,559,729  
Loans held for sale
     22,408       11,141       55,744  
Loans:
                        
Commercial loans
     4,344,915       4,352,730       4,020,155  
Mortgage loans
     524,909       547,125       575,479  
Installment loans
     1,533,885       1,574,587       1,576,517  
Home equity loans
     741,073       733,832       684,064  
Credit card loans
     141,597       149,745       145,747  
Leases
     64,384       67,594       70,835  
 
                  
Total loans
     7,350,763       7,425,613       7,072,797  
Less allowance for loan losses
     (106,257 )     (103,757 )     (94,411 )
 
                  
Net loans
     7,244,506       7,321,856       6,978,386  
Premises and equipment, net
     130,920       133,184       126,273  
Goodwill
     139,245       139,245       139,245  
Intangible assets
     1,316       1,403       1,754  
Accrued interest receivable and other assets
     519,152       541,943       454,845  
 
                  
Total assets
   $ 10,972,176     $ 11,100,026     $ 10,516,828  
 
                  
 
                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                        
Deposits:
                        
Demand-non-interest bearing
   $ 1,848,200     $ 1,637,534       1,498,107  
Demand-interest bearing
     669,789       666,615       703,319  
Savings and money market accounts
     2,763,058       2,512,331       2,366,466  
Certificates and other time deposits
     2,397,166       2,781,199       2,854,786  
 
                  
Total deposits
     7,678,213       7,597,679       7,422,678  
 
                  
Securities sold under agreements to repurchase
     804,525       921,390       1,298,145  
Wholesale borrowings
     1,134,152       1,344,195       653,618  
Accrued taxes, expenses, and other liabilities
     271,017       298,919       204,948  
 
                  
Total liabilities
     9,887,907       10,162,183       9,579,389  
 
                  
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
     —       —       —  
Fixed-Rate Cumulative Perpetual Preferred Stock, Series A, $1,000 liquidation preference; authorized and issued 125,000 shares
     120,622       —       —  
Common stock, without par value:
                        
authorized 300,000,000 shares; issued 92,026,350 at March 31, 2009, December 31, 2008 and March 31, 2008
     127,937       127,937       127,937  
Common stock warrant
     4,582       —       —  
Capital surplus
     84,876       94,802       91,387  
Accumulated other comprehensive loss
     (38,634 )     (54,080 )     (31,576 )
Retained earnings
     1,057,681       1,053,435       1,035,766  
Treasury stock, at cost, 10,609,284, 11,066,108 and 11,147,360
                        
shares at March 31, 2009, December 31, 2008 and March 31, 2008, respectively
     (272,795 )     (284,251 )     (286,075 )
 
                  
Total shareholders’ equity
     1,084,269       937,843       937,439  
 
                  
Total liabilities and shareholders’ equity
   $ 10,972,176     $ 11,100,026     $ 10,516,828  
 
                  

7

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS 		  (LOGO)
(Unaudited)
(Dollars in thousands)
                                         
    Quarterly Periods  
    March 31,     December 31,     September 30,     June 30,     March 31,  
    2009     2008     2008     2008     2008  
ASSETS
                                        
Cash and due from banks
   $ 209,922     $ 192,804     $ 171,370     $ 173,044     $ 171,028  
Investment securities/fed funds sold
     2,784,966       2,501,346       2,461,431       2,515,546       2,508,125  
Loans held for sale
     23,248       8,896       12,048       48,079       49,068  
Loans:
                                        
Commercial loans
     4,337,108       4,273,123       4,168,951       4,069,305       3,941,573  
Mortgage loans
     536,498       555,713       569,293       577,178       584,000  
Installment loans
     1,558,374       1,596,053       1,617,265       1,584,825       1,587,267  
Home equity loans
     736,956       722,466       709,365       692,567       686,603  
Credit card loans
     146,355       150,133       147,924       147,242       150,575  
Leases
     65,728       68,758       69,535       69,510       73,910  
 
                              
Total loans
     7,381,019       7,366,246       7,282,333       7,140,627       7,023,928  
Less allowance for loan losses
     102,533       100,898       98,091       94,002       93,804  
 
                              
 
                                        
Net loans
     7,278,486       7,265,348       7,184,242       7,046,625       6,930,124  
 
                                        
Total earning assets
     10,189,233       9,876,488       9,755,812       9,704,252       9,581,121  
 
                                        
Premises and equipment, net
     132,156       130,511       127,267       126,488       128,185  
Accrued interest receivable and other assets
     686,264       632,124       613,138       610,687       601,829  
 
                              
 
                                        
TOTAL ASSETS
   $ 11,115,042     $ 10,731,029     $ 10,569,496     $ 10,520,469     $ 10,388,359  
 
                              
 
                                        
LIABILITIES
                                        
Deposits:
                                        
Demand-non-interest bearing
   $ 1,767,885     $ 1,607,901     $ 1,545,427     $ 1,518,841     $ 1,446,889  
Demand-interest bearing
     655,279       658,208       678,803       709,922       702,115  
Savings and money market accounts
     2,638,166       2,534,702       2,373,995       2,366,296       2,318,899  
Certificates and other time deposits
     2,582,788       2,871,749       2,728,139       2,744,447       2,862,194  
 
                              
 
                                        
Total deposits
     7,644,118       7,672,560       7,326,364       7,339,506       7,330,097  
 
                                        
Securities sold under agreements to repurchase
     941,112       1,168,438       1,504,011       1,312,436       1,310,364  
Wholesale borrowings
     1,151,777       766,358       634,226       711,132       618,572  
 
                              
 
                                        
Total funds
     9,737,007       9,607,356       9,464,601       9,363,074       9,259,033  
Accrued taxes, expenses and other liabilities
     304,759       193,885       175,400       204,626       196,921  
 
                              
 
                                        
Total liabilities
     10,041,766       9,801,241       9,640,001       9,567,700       9,455,954  
 
                                        
SHAREHOLDERS’ EQUITY
                                        
Preferred stock
     109,807       —       —       —       —  
Common stock
     127,937       127,937       127,937       127,937       127,937  
Common stock warrant
     4,175       —       —       —       —  
Capital surplus
     86,872       93,761       93,381       92,313       96,048  
Accumulated other comprehensive (loss) income
     (49,477 )     (62,018 )     (54,000 )     (40,757 )     (32,170 )
Retained earnings
     1,069,948       1,053,992       1,048,452       1,059,840       1,032,036  
Treasury stock
     (275,986 )     (283,884 )     (286,275 )     (286,564 )     (291,446 )
 
                              
 
                                        
Total shareholders’ equity
     1,073,276       929,788       929,495       952,769       932,405  
 
                              
 
                                        
TOTAL LIABILITIES AND SHAREHOLDERS’ EQUITY
   $ 11,115,042     $ 10,731,029     $ 10,569,496     $ 10,520,469     $ 10,388,359  
 
                              

8

 

AVERAGE CONSOLIDATED BALANCE SHEETS (Unaudited)
Fully-tax Equivalent Interest Rates and Interest Differential
FIRSTMERIT CORPORATION AND
SUBSIDIARIES
(Dollars in thousands)
                                                                         
    Three months ended     Year ended     Three months ended  
    March 31, 2009     December 31, 2008     March 31, 2008  
    Average             Average     Average             Average     Average             Average  
    Balance     Interest     Rate     Balance     Interest     Rate     Balance     Interest     Rate  
     
ASSETS
                                                                        
Cash and due from banks
   $ 209,922                     $ 177,089                     $ 171,028                  
Investment securities and federal funds sold:
                                                                        
U.S. Treasury securities and U.S. Government agency obligations (taxable)
     2,251,028       25,954       4.68 %     1,985,026       94,260       4.75 %     2,004,597       23,295       4.67 %
Obligations of states and political subdivisions (tax exempt)
     320,943       4,914       6.21 %     294,724       17,910       6.08 %     280,919       4,263       6.10 %
Other securities and federal funds sold
     212,995       2,341       4.46 %     216,794       11,326       5.22 %     222,609       3,050       5.51 %
 
                                                            
 
                                                                        
Total investment securities and federal funds sold
     2,784,966       33,209       4.84 %     2,496,544       123,496       4.95 %     2,508,125       30,608       4.91 %
 
                                                                        
Loans held for sale
     23,248       322       5.62 %     29,419       1,602       5.45 %     49,068       672       5.51 %
Loans
     7,381,019       87,508       4.81 %     7,203,946       434,704       6.03 %     7,023,928       115,640       6.62 %
 
                                                            
 
                                                                        
Total earning assets
     10,189,233       121,039       4.82 %     9,729,909       559,802       5.75 %     9,581,121       146,920       6.17 %
 
                                                                        
Allowance for loan losses
     (102,533 )                     (96,714 )                     (93,804 )                
Other assets
     818,420                       739,158                       730,014                  
 
                                                                  
 
                                                                        
Total assets
   $ 11,115,042                     $ 10,549,442                     $ 10,388,359                  
 
                                                                  
 
                                                                        
LIABILITIES AND SHAREHOLDERS’ EQUITY
                                                                        
Deposits:
                                                                        
Demand — non-interest bearing
   $ 1,767,885       —       —     $ 1,530,021       —       —     $ 1,446,889       —       —  
Demand — interest bearing
     655,279       155       0.10 %     687,160       2,514       0.37 %     702,115       964       0.55 %
Savings and money market accounts
     2,638,166       5,377       0.83 %     2,398,778       29,839       1.24 %     2,318,899       9,643       1.67 %
Certificates and other time deposits
     2,582,788       18,588       2.92 %     2,801,623       105,853       3.78 %     2,862,194       31,987       4.49 %
 
                                                            
 
                                                                        
Total deposits
     7,644,118       24,120       1.28 %     7,417,582       138,206       1.86 %     7,330,097       42,594       2.34 %
 
                                                                        
Securities sold under agreements to repurchase
     941,112       999       0.43 %     1,343,441       31,857       2.37 %     1,310,364       11,542       3.54 %
Wholesale borrowings
     1,151,777       7,343       2.59 %     663,109       27,574       4.16 %     618,572       7,089       4.61 %
 
                                                            
 
                                                                        
Total interest bearing liabilities
     7,969,122       32,462       1.65 %     7,894,111       197,637       2.50 %     7,812,144       61,225       3.15 %
 
                                                                        
Other liabilities
     304,759                       189,222                       196,921                  
 
                                                                        
Shareholders’ equity
     1,073,276                       936,088                       932,405                  
 
                                                                  
 
                                                                        
Total liabilities and shareholders’ equity
   $ 11,115,042                     $ 10,549,442                     $ 10,388,359                  
 
                                                                  
 
                                                                        
Net yield on earning assets
   $ 10,189,233       88,577       3.53 %   $ 9,729,909       362,165       3.72 %   $ 9,581,121       85,695       3.60 %
 
                                                      
 
                                                                        
Interest rate spread
                     3.17 %                     3.25 %                     3.02 %
 
                                                                  
 
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.

9

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME
(Unaudited)
(In thousands except per share data)
                 
    Quarters ended  
    March 31,  
    2009     2008  
Interest income:
                
Interest and fees on loans, including held for sale
   $ 87,799     $ 116,288  
Interest and dividends on investment securities and federal funds sold
     31,557       29,236  
 
            
Total interest income
     119,356       145,524  
 
            
Interest expense:
                
Interest on deposits:
                
Demand-interest bearing
     155       964  
Savings and money market accounts
     5,377       9,643  
Certificates and other time deposits
     18,588       31,987  
Interest on securities sold under agreements to repurchase
     999       11,542  
Interest on wholesale borrowings
     7,343       7,089  
 
            
Total interest expense
     32,462       61,225  
 
            
Net interest income
     86,894       84,299  
Provision for loan losses
     18,065       11,521  
 
            
Net interest income after provision for loan losses
     68,829       72,778  
 
            
Other income:
                
Trust department income
     4,790       5,450  
Service charges on deposits
     14,163       14,736  
Credit card fees
     11,084       11,157  
ATM and other service fees
     2,606       2,794  
Bank owned life insurance income
     3,015       3,201  
Investment services and insurance
     2,918       2,865  
Investment securities gains, net
     —       524  
Loan sales and servicing income
     2,335       1,391  
Gain on Visa Inc. redemption
     —       7,898  
Gain on post medical retirement curtailment
     9,543       —  
Other operating income
     4,734       2,838  
 
            
Total other income
     55,188       52,854  
 
            
Other expenses:
                
Salaries, wages, pension and employee benefits
     42,682       43,065  
Net occupancy expense
     6,871       6,754  
Equipment expense
     5,797       6,194  
Stationery, supplies and postage
     2,275       2,325  
Bankcard, loan processing and other costs
     7,842       7,244  
Professional services
     3,480       1,887  
Amortization of intangibles
     87       223  
Other operating expense
     14,169       13,542  
 
            
Total other expenses
     83,203       81,234  
 
            
Income before federal income tax expense
     40,814       44,398  
Federal income tax expense
     11,380       12,955  
 
            
Net income
   $ 29,434     $ 31,443  
 
            
 
                
Other comprehensive income, net of taxes
                
Unrealized securities’ holding (loss) gain, net of taxes
   $ 15,817     $ 11,610  
Unrealized hedging gain (loss), net of taxes
     (94 )     (633 )
Minimum pension liability adjustment, net of taxes
     (277 )     873  
Less: reclassification adjustment for securities’ gain realized in net income, net of taxes
     —       341  
 
            
Total other comprehensive (loss) gain, net of taxes
     15,446       11,509  
 
            
Comprehensive income
   $ 44,880     $ 42,952  
 
            
Net income applicable to common shares
   $ 27,563     $ 31,443  
 
            
Net income used in diluted EPS calculation
   $ 27,563     $ 31,447  
 
            
Weighted average number of common shares outstanding — basic
     81,293       80,655  
 
            
Weighted average number of common shares outstanding — diluted
     81,302       80,722  
 
            
Basic earnings per share
   $ 0.34     $ 0.39  
 
            
Diluted earnings per share
   $ 0.34     $ 0.39  
 
            
Dividend per share
   $ 0.29     $ 0.29  
 
            

10

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME AND COMPREHENSIVE INCOME—LINKED QUARTERS 		  (LOGO)
         
(Unaudited)
(Dollars in thousands, except share data) 		       
                                         
    Quarterly Results  
    2009     2008     2008     2008     2008  
    1st Q     4th Q     3rd Q     2nd Q     1st Q  
Interest and fees on loans, including held for sale
   $ 87,799     $ 105,463     $ 107,927     $ 106,516     $ 116,288  
Interest and dividends — securities and federal funds sold
     31,557       29,918       29,223       29,255       29,236  
 
                              
Total interest income
     119,356       135,381       137,150       135,771       145,524  
 
                              
Interest on deposits:
                                        
Demand-interest bearing
     155       370       589       591       964  
Savings and money market accounts
     5,377       6,764       6,932       6,500       9,643  
Certificates and other time deposits
     18,588       23,816       23,463       26,587       31,987  
Securities sold under agreements to repurchase
     999       3,752       8,244       8,319       11,542  
Wholesale borrowings
     7,343       7,441       6,801       6,243       7,089  
 
                              
Total interest expense
     32,462       42,143       46,029       48,240       61,225  
 
                              
Net interest income
     86,894       93,238       91,121       87,531       84,299  
Provision for loan losses
     18,065       16,986       15,531       14,565       11,521  
 
                              
Net interest income after provision for loan losses
     68,829       76,252       75,590       72,966       72,778  
 
                              
Other income:
                                        
Trust department income
     4,790       5,291       5,562       5,824       5,450  
Service charges on deposits
     14,163       15,450       16,648       16,028       14,736  
Credit card fees
     11,084       11,667       12,084       12,146       11,157  
ATM and other service fees
     2,606       2,613       2,717       2,770       2,794  
Bank owned life insurance income
     3,015       2,451       3,139       3,217       3,201  
Investment services and insurance
     2,918       1,949       2,899       2,790       2,865  
Investment securities gains, net
     —       1,555       —       47       524  
Loan sales and servicing income
     2,335       2,294       1,370       1,885       1,391  
Gain on Visa Inc.
     —       5,768       —       —       7,898  
Other operating income
     14,277       3,757       2,610       4,051       2,838  
 
                              
Total other income
     55,188       52,795       47,029       48,758       52,854  
 
                              
Other expenses:
                                        
Salaries, wages, pension and employee benefits
     42,682       46,991       45,043       44,364       43,065  
Net occupancy expense
     6,871       5,950       5,741       6,204       6,754  
Equipment expense
     5,797       6,139       5,962       5,842       6,194  
Stationery, supplies and postage
     2,275       2,458       2,347       2,242       2,325  
Bankcard, loan processing and other costs
     7,842       7,359       7,497       7,356       7,244  
Professional services
     3,480       3,261       3,966       2,581       1,887  
Amortization of intangibles
     87       87       86       177       223  
Other operating expense
     14,169       15,995       9,967       11,784       13,542  
 
                              
Total other expenses
     83,203       88,240       80,609       80,550       81,234  
 
                              
Income before income tax expense
     40,814       40,807       42,010       41,174       44,398  
Federal income taxes
     11,380       11,671       12,257       12,021       12,955  
 
                              
Net income
   $ 29,434     $ 29,136     $ 29,753     $ 29,153     $ 31,443  
 
                              
Other comprehensive income (loss), net of taxes
     15,446       5,110       (7,756 )     (19,858 )     11,509  
 
                              
Comprehensive income
   $ 44,880     $ 34,246     $ 21,997     $ 9,295     $ 42,952  
 
                              
Net income applicable to common shares
   $ 27,563     $ 29,136     $ 29,753     $ 29,153     $ 31,443  
 
                              
Adjusted net income used in diluted EPS calculation
   $ 27,563     $ 29,136     $ 29,753     $ 29,154     $ 31,447  
 
                              
Weighted-average common shares — basic
     81,293       80,972       80,869       80,855       80,655  
 
                              
Weighted-average common shares — diluted
     81,302       80,981       80,896       80,898       80,722  
 
                              
 
                                        
Basic net income per share
   $ 0.34     $ 0.36     $ 0.37     $ 0.36     $ 0.39  
 
                              
 
                                        
Diluted net income per share
   $ 0.34     $ 0.36     $ 0.37     $ 0.36     $ 0.39  
 
                              

11

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION		   (LOGO)
         
(Unaudited, except December 31, 2008 annual period which        
is derived from the audited financial statements)
(Dollars in thousands, except ratios) 		       
                                                 
    Quarterly Periods     Annual Period  
    Mar 31     Dec 31     Sept 30     Jun 30     Mar 31     Dec 31  
    2009     2008     2008     2008     2008     2008  
Allowance for Credit Losses
                                                
 
                                                
Allowance for loan losses, beginning of period
   $ 103,757     $ 102,007     $ 98,239     $ 94,411     $ 94,205     $ 94,205  
Provision for loan losses
     18,065       16,986       15,531       14,565       11,521       58,603  
Charge-offs
     18,936       17,932       14,957       14,830       14,669       62,388  
Recoveries
     3,371       2,696       3,194       4,093       3,354       13,337  
 
                                    
Net charge-offs
     15,565       15,236       11,763       10,737       11,315       49,051  
 
                                    
Allowance for loan losses, end of period
   $ 106,257     $ 103,757     $ 102,007     $ 98,239     $ 94,411     $ 103,757  
 
                                    
Reserve for unfunded lending commitments, beginning of period
   $ 6,588     $ 6,493     $ 7,310     $ 7,903     $ 7,394     $ 7,394  
Provision for credit losses
     (569 )     95       (817 )     (593 )     509       (806 )
 
                                    
Reserve for unfunded lending commitments, end of period
   $ 6,019     $ 6,588     $ 6,493     $ 7,310     $ 7,903     $ 6,588  
 
                                    
 
                                                
Allowance for Credit Losses
   $ 112,276     $ 110,345     $ 108,500     $ 105,549     $ 102,314     $ 110,345  
 
                                    
 
                                                
Ratios
                                                
 
                                                
Provision for loan losses as a % of average loans
     0.99 %     0.92 %     0.85 %     0.82 %     0.66 %     0.81 %
Provision for credit losses as a % of average loans
     (0.03 )%     0.01 %     (0.04 )%     (0.03 )%     0.03 %     (0.01 )%
Net charge-offs as a % of average loans
     0.86 %     0.82 %     0.64 %     0.60 %     0.65 %     0.68 %
Allowance for loan losses as a % of period-end loans
     1.45 %     1.40 %     1.38 %     1.36 %     1.33 %     1.40 %
Allowance for credit losses as a % of period-end loans
     1.53 %     1.49 %     1.47 %     1.46 %     1.45 %     1.49 %
Allowance for loan losses as a % of nonperforming loans
     151.35 %     198.76 %     264.45 %     268.52 %     318.89 %     198.76 %
Allowance for credit losses as a % of nonperforming loans
     159.93 %     211.38 %     281.28 %     288.50 %     345.59 %     211.38 %
 
                                                
Asset Quality
                                                
 
                                                
Impaired loans:
                                                
Nonaccrual
   $ 54,070     $ 40,195     $ 29,245     $ 26,702     $ 19,777     $ 40,195  
Other nonperforming loans:
                                                
Nonaccrual
     16,134       12,007       9,328       9,884       9,829       12,007  
 
                                    
 
                                                
Total nonperforming loans
     70,204       52,202       38,573       36,586       29,606       52,202  
 
                                                
Other real estate (“ORE”)
     6,039       5,324       4,918       5,053       5,695       5,324  
 
                                    
 
                                                
Total nonperforming assets (“NPAs”)
   $ 76,243     $ 57,526     $ 43,491     $ 41,639     $ 35,301     $ 57,526  
 
                                    
 
                                                
NPAs as % of period-end loans + ORE
     1.04 %     0.77 %     0.59 %     0.57 %     0.50 %     0.77 %
 
                                    
 
                                                
Past due 90 days or more & accruing interest
   $ 18,602     $ 23,928     $ 16,241     $ 10,654     $ 10,931     $ 23,928  
 
                                    

12

 

FIRSTMERIT CORPORATION
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL		   (LOGO)
         
(Unaudited)
(Dollars in thousands) 		       
                                         
    2009     2008     2008     2008     2008  
    1st Qtr     4th Qtr     3rd Qtr     2nd Qtr     1st Qtr  
QUARTERLY OTHER INCOME DETAIL
                                        
 
Trust department income
   $ 4,790     $ 5,291     $ 5,562     $ 5,824     $ 5,450  
Service charges on deposits
     14,163       15,450       16,648       16,028       14,736  
Credit card fees
     11,084       11,667       12,084       12,146       11,157  
ATM and other service fees
     2,606       2,613       2,717       2,770       2,794  
Bank owned life insurance income
     3,015       2,451       3,139       3,217       3,201  
Investment services and insurance
     2,918       1,949       2,899       2,790       2,865  
Investment securities gains, net
     —       1,555       —       47       524  
Loan sales and servicing income
     2,335       2,294       1,370       1,885       1,391  
Gain on Visa Inc.
     —       5,768       —       —       7,898  
Gain on post medical retirement curtailment
     9,543       —       —       —       0  
Other operating income
     4,734       3,757       2,610       4,051       2,838  
 
                              
 
Total Other Income
   $ 55,188     $ 52,795     $ 47,029     $ 48,758     $ 52,854  
 
                              
                                         
    2009     2008     2008     2008     2008  
    1st Qtr     4th Qtr     3rd Qtr     2nd Qtr     1st Qtr  
QUARTERLY OTHER EXPENSES DETAIL
                                        
 
Salaries, wages, pension and employee benefits
   $ 42,682     $ 46,991     $ 45,043     $ 44,364     $ 43,065  
Net occupancy expense
     6,871       5,950       5,741       6,204       6,754  
Equipment expense
     5,797       6,139       5,962       5,842       6,194  
Taxes, other than federal income taxes
     1,626       1,463       1,714       1,701       1,702  
Stationery, supplies and postage
     2,275       2,458       2,347       2,242       2,325  
Bankcard, loan processing and other costs
     7,842       7,359       7,497       7,356       7,244  
Advertising
     1,971       1,863       2,476       2,489       2,666  
Professional services
     3,480       3,261       3,966       2,581       1,887  
Telephone
     1,014       978       956       994       1,019  
Amortization of intangibles
     87       87       86       177       223  
Other operating expense
     9,558       11,691       4,821       6,600       8,155  
 
                              
 
Total Other Expenses
   $ 83,203     $ 88,240     $ 80,609     $ 80,550     $ 81,234  
 
                              

13

 

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR LOAN LOSSES — Net Charge-off Detail 		  (LOGO)
         
(Unaudited)
(Dollars in thousands) 		       
                         
    Quarters ended     Year ended  
    March 31,     December 31,  
    2009     2008     2008  
Allowance for loan losses — beginning of period
   $ 103,757     $ 94,205     $ 94,205  
Loans charged off:
                        
Commercial
     4,554       3,453       16,318  
Mortgage
     923       1,280       4,696  
Installment
     8,438       6,004       24,740  
Home equity
     1,535       1,066       4,153  
Credit cards
     2,967       2,293       9,821  
Leases
     —       —       26  
Overdrafts
     519       573       2,634  
 
                  
Total
     18,936       14,669       62,388  
 
                  
Recoveries:
                        
Commercial
     224       722       2,388  
Mortgage
     26       32       76  
Installment
     2,401       1,742       7,071  
Home equity
     85       100       851  
Credit cards
     387       459       1,831  
Manufactured housing
     53       72       247  
Leases
     5       38       104  
Overdrafts
     190       189       769  
 
                  
Total
     3,371       3,354       13,337  
 
                  
 
                        
Net charge-offs
     15,565       11,315       49,051  
Provision for loan losses
     18,065       11,521       58,603  
 
                  
Allowance for loan losses — end of period
   $ 106,257     $ 94,411     $ 103,757  
 
                  
 
                        
Average loans outstanding
   $ 7,381,019     $ 7,023,928     $ 7,203,946  
 
                  
Ratio to average loans:
                        
(Annualized) net charge-offs
     0.86 %     0.65 %     0.68 %
 
                  
Provision for loan losses
     0.99 %     0.66 %     0.81 %
 
                  
Loans outstanding — period-end
   $ 7,350,763     $ 7,072,797     $ 7,425,613  
 
                  
 
                        
Allowance for credit losses:
   $ 112,276     $ 102,314     $ 110,345  
 
                  
As a multiple of (annualized) net charge-offs
     1.78       2.25       2.25  
 
                  
Allowance for loan losses:
                        
As a percent of period-end loans outstanding
     1.45 %     1.33 %     1.40 %
 
                  
As a multiple of (annualized) net charge-offs
     1.68       2.07       2.12  
 
                  

14

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