• | Profitability Sustained: 64th consecutive quarter of profitability. |
• | Loan growth continued: Total loan growth of $164.7 million, or 1.07% from the prior quarter. |
• | Credit quality remained solid: Net charge-offs to average originated loans of 0.13%; nonperforming assets as a percent of period end originated loans plus other real estate at 0.53%. |
• | Balance sheet remained strong: Strong tangible common equity ratio1 at 8.14%. |
Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis | ||||||||||||||||
Quarters | ||||||||||||||||
(unaudited) | 2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||
(Dollars in thousands) | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||
Net interest income (GAAP) | $ | 185,623 | $ | 192,511 | $ | 193,578 | $ | 195,577 | $ | 193,900 | ||||||
Plus: | Fully taxable-equivalent adjustment | 3,931 | 3,998 | 4,066 | 4,089 | 3,954 | ||||||||||
Net interest income on a fully taxable-equivalent basis (non-GAAP) | 189,554 | 196,509 | 197,644 | 199,666 | 197,854 | |||||||||||
Average earning assets | 22,100,417 | 21,920,889 | 21,804,243 | 21,367,496 | 20,903,863 | |||||||||||
Net interest margin on a fully taxable-equivalent basis (non-GAAP) | 3.48 | % | 3.56 | % | 3.60 | % | 3.75 | % | 3.84 | % |
Reconciliation of noninterest income and noninterest expense to adjusted noninterest income and adjusted noninterest expense | ||||||||||||||||
Quarters | ||||||||||||||||
(unaudited) | 2015 | 2014 | 2014 | 2014 | 2014 | |||||||||||
(Dollars in thousands) | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||
Noninterest expense (GAAP) | $ | 160,652 | $ | 165,041 | $ | 163,145 | $ | 167,400 | $ | 169,331 | ||||||
Less: | Intangible asset amortization | 2,598 | 2,933 | 2,933 | 2,933 | 2,936 | ||||||||||
Adjusted noninterest expense (non-GAAP) | 158,054 | 162,108 | 160,212 | 164,467 | 166,395 | |||||||||||
Noninterest income (GAAP) | 65,847 | 71,960 | 69,733 | 72,560 | 67,270 | |||||||||||
Less: | Securities losses/(gains) | 354 | 16 | 14 | 80 | 56 | ||||||||||
Adjusted noninterest income (non-GAAP) | 65,493 | 71,944 | 69,719 | 72,480 | 67,214 | |||||||||||
Net interest income on a fully taxable-equivalent basis (non-GAAP) | 189,554 | 196,509 | 197,644 | 199,666 | 197,854 | |||||||||||
Adjusted revenue (non-GAAP) | 255,047 | 268,453 | 267,363 | 272,146 | 265,068 | |||||||||||
Efficiency ratio (non-GAAP) | 61.97 | % | 60.39 | % | 59.92 | % | 60.43 | % | 62.77 | % |
Reconciliation of shareholders' equity to tangible common equity, and total assets to tangible assets | ||||||||||||||||
Quarters | ||||||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||
(Dollars in thousands, except per share amounts) | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||
Shareholders’ equity (GAAP) | $ | 2,888,786 | $ | 2,834,281 | $ | 2,820,431 | $ | 2,791,738 | $ | 2,742,966 | ||||||
Less: | Preferred stock | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||
Common shareholders' equity (non-GAAP) | 2,788,786 | 2,734,281 | 2,720,431 | 2,691,738 | 2,642,966 | |||||||||||
Less: | Intangible assets | 68,422 | 71,020 | 73,953 | 76,886 | 79,819 | ||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | 741,740 | 741,740 | |||||||||||
Tangible common equity (non-GAAP) | 1,978,624 | 1,921,521 | 1,904,738 | 1,873,112 | 1,821,407 | |||||||||||
Total assets (GAAP) | $ | 25,118,120 | $ | 24,902,347 | $ | 24,608,207 | $ | 24,564,431 | $ | 24,498,661 | ||||||
Less: | Intangible assets | 68,422 | 71,020 | 73,953 | 76,886 | 79,819 | ||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | 741,740 | 741,740 | |||||||||||
Tangible assets (non-GAAP) | $ | 24,307,958 | $ | 24,089,587 | $ | 23,792,514 | $ | 23,745,805 | $ | 23,677,102 | ||||||
Period end common shares | 165,453 | 165,390 | 165,384 | 165,393 | 165,087 | |||||||||||
Tangible book value per common share | $ | 11.96 | $ | 11.62 | $ | 11.52 | $ | 11.33 | $ | 11.03 | ||||||
Tangible common equity to tangible assets ratio (non-GAAP) | 8.14 | % | 7.98 | % | 8.01 | % | 7.89 | % | 7.69 | % |
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||
Consolidated Financial Highlights | |||||||||||||||
(Unaudited) | Quarters | ||||||||||||||
(Dollars in thousands, except per share amounts) | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||
1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||
EARNINGS | |||||||||||||||
Net interest income TE (1) | $ | 189,554 | $ | 196,509 | $ | 197,644 | $ | 199,666 | $ | 197,854 | |||||
TE adjustment (1) | 3,931 | 3,998 | 4,066 | 4,089 | 3,954 | ||||||||||
Provision for originated loan losses | 6,036 | 8,662 | 4,862 | 5,993 | 3,654 | ||||||||||
Provision for acquired loan losses | 2,214 | 3,407 | 4,411 | 5,815 | 7,827 | ||||||||||
Provision/(recapture) for covered loan losses | (2 | ) | 1,228 | (81 | ) | 3,445 | 3,055 | ||||||||
Noninterest income | 65,847 | 71,960 | 69,733 | 72,560 | 67,270 | ||||||||||
Noninterest expense | 160,652 | 165,041 | 163,145 | 167,400 | 169,331 | ||||||||||
Net income | 57,139 | 61,079 | 63,898 | 59,519 | 53,455 | ||||||||||
Diluted EPS (3) | 0.33 | 0.36 | 0.37 | 0.35 | 0.31 | ||||||||||
PERFORMANCE RATIOS | |||||||||||||||
Return on average assets (ROA) | 0.93 | % | 0.98 | % | 1.03 | % | 0.98 | % | 0.90 | % | |||||
Return on average equity (ROE) | 8.08 | % | 8.50 | % | 9.03 | % | 8.62 | % | 7.93 | % | |||||
Return on average tangible common equity (1) | 11.85 | % | 12.52 | % | 13.41 | % | 12.92 | % | 11.98 | % | |||||
Net interest margin TE (1) | 3.48 | % | 3.56 | % | 3.60 | % | 3.75 | % | 3.84 | % | |||||
Efficiency ratio (1) | 61.97 | % | 60.39 | % | 59.92 | % | 60.43 | % | 62.77 | % | |||||
Number of full-time equivalent employees | 4,103 | 4,273 | 4,302 | 4,392 | 4,521 | ||||||||||
MARKET DATA | |||||||||||||||
Book value per common share | $ | 17.46 | $ | 17.14 | $ | 17.05 | $ | 16.88 | $ | 16.62 | |||||
Tangible book value per common share (1) | 11.96 | 11.62 | 11.52 | 11.33 | 11.03 | ||||||||||
Period end common share market value | 19.06 | 18.89 | 17.62 | 19.75 | 20.83 | ||||||||||
Market as a % of book | 109 | % | 110 | % | 103 | % | 117 | % | 125 | % | |||||
Cash dividends per common share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||
Common Stock dividend payout ratio | 48.48 | % | 44.44 | % | 43.24 | % | 45.71 | % | 51.61 | % | |||||
Average basic common shares | 165,411 | 165,395 | 165,389 | 165,335 | 165,060 | ||||||||||
Average diluted common shares | 166,003 | 165,974 | 165,804 | 166,147 | 166,004 | ||||||||||
Period end common shares | 165,453 | 165,390 | 165,384 | 165,393 | 165,087 | ||||||||||
Common shares repurchased | 66 | 15 | 10 | 186 | 51 | ||||||||||
Common Stock market capitalization | $ | 3,153,534 | $ | 3,124,217 | $ | 2,914,066 | $ | 3,266,512 | $ | 3,438,762 | |||||
ASSET QUALITY (excluding acquired, FDIC acquired loans and covered OREO) (2) | |||||||||||||||
Gross charge-offs | $ | 8,567 | $ | 9,205 | $ | 11,410 | $ | 11,148 | $ | 13,160 | |||||
Net charge-offs | 4,187 | 3,849 | 5,929 | 6,159 | 8,022 | ||||||||||
Allowance for originated loan losses | 97,545 | 95,696 | 90,883 | 91,950 | 92,116 | ||||||||||
Reserve for unfunded lending commitments | 4,330 | 5,848 | 6,966 | 7,107 | 7,481 | ||||||||||
Nonperforming assets (NPAs) | 68,606 | 55,038 | 63,119 | 60,922 | 62,711 | ||||||||||
Net charge-offs to average loans ratio | 0.13 | % | 0.12 | % | 0.20 | % | 0.22 | % | 0.31 | % | |||||
Allowance for originated loan losses to period-end loans | 0.76 | % | 0.77 | % | 0.75 | % | 0.80 | % | 0.85 | % | |||||
Allowance for credit losses to period-end loans | 0.79 | % | 0.81 | % | 0.81 | % | 0.86 | % | 0.92 | % | |||||
NPAs to loans and other real estate | 0.53 | % | 0.44 | % | 0.52 | % | 0.53 | % | 0.58 | % | |||||
Allowance for originated loan losses to nonperforming loans | 211.66 | % | 276.44 | % | 231.13 | % | 250.27 | % | 212.01 | % | |||||
Allowance for credit losses to nonperforming loans | 221.06 | % | 293.34 | % | 248.85 | % | 269.61 | % | 229.23 | % | |||||
CAPITAL & LIQUIDITY | |||||||||||||||
Period end tangible common equity to assets (1) | 8.14 | % | 7.98 | % | 8.01 | % | 7.89 | % | 7.69 | % | |||||
Average equity to assets | 11.51 | % | 11.55 | % | 11.42 | % | 11.40 | % | 11.32 | % | |||||
Average equity to total loans | 18.60 | % | 18.67 | % | 18.58 | % | 18.90 | % | 19.04 | % | |||||
Average total loans to deposits | 77.86 | % | 78.47 | % | 77.36 | % | 75.15 | % | 73.11 | % | |||||
AVERAGE BALANCES | |||||||||||||||
Assets | $ | 24,905,094 | $ | 24,664,987 | $ | 24,583,776 | $ | 24,291,276 | $ | 24,144,570 | |||||
Deposits | 19,788,925 | 19,450,647 | 19,531,800 | 19,496,795 | 19,636,506 | ||||||||||
Originated loans | 12,689,791 | 12,306,171 | 11,814,314 | 11,092,101 | 10,448,383 | ||||||||||
Acquired loans, including FDIC acquired loans, less loss share receivable | 2,717,884 | 2,956,867 | 3,295,547 | 3,558,810 | 3,907,802 | ||||||||||
Earning assets | 22,100,417 | 21,920,889 | 21,804,243 | 21,367,496 | 20,903,863 | ||||||||||
Shareholders' equity | 2,866,362 | 2,849,618 | 2,807,886 | 2,768,352 | 2,733,226 | ||||||||||
ENDING BALANCES | |||||||||||||||
Assets | $ | 25,118,120 | $ | 24,902,347 | $ | 24,608,207 | $ | 24,564,431 | $ | 24,498,661 | |||||
Deposits | 19,925,595 | 19,504,665 | 19,366,911 | 19,298,396 | 19,811,674 | ||||||||||
Originated loans | 12,856,037 | 12,493,812 | 12,071,759 | 11,467,193 | 10,826,913 | ||||||||||
Acquired loans, including FDIC acquired loans, less loss share receivable | 2,614,847 | 2,810,302 | 3,139,521 | 3,458,453 | 3,726,952 | ||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | 741,740 | 741,740 | ||||||||||
Intangible assets | 68,422 | 71,020 | 73,953 | 76,886 | 79,819 | ||||||||||
Earning assets | 22,395,343 | 22,153,552 | 21,930,840 | 21,789,773 | 21,715,302 | ||||||||||
Total shareholders' equity | 2,888,786 | 2,834,281 | 2,820,431 | 2,791,738 | 2,742,966 | ||||||||||
NOTES: | |||||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||
CONSOLIDATED BALANCE SHEETS | ||||||||||||||
(In thousands, except per share amounts) | March 31, | December 31, | March 31, | |||||||||||
(Unaudited, except December 31, 2014, which is derived from the audited financial statements) | 2015 | 2014 | 2014 | |||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 426,247 | $ | 480,998 | $ | 520,976 | ||||||||
Interest-bearing deposits in banks | 106,178 | 216,426 | 438,309 | |||||||||||
Total cash and cash equivalents | 532,425 | 697,424 | 959,285 | |||||||||||
Investment securities: | ||||||||||||||
Held-to-maturity | 2,855,174 | 2,903,609 | 3,079,620 | |||||||||||
Available-for-sale | 3,791,059 | 3,545,288 | 3,433,171 | |||||||||||
Other investments | 148,475 | 148,654 | 148,446 | |||||||||||
Loans held for sale | 3,568 | 13,428 | 7,143 | |||||||||||
Loans | 15,490,889 | 15,326,147 | 14,608,613 | |||||||||||
Allowance for loan losses | (146,552 | ) | (143,649 | ) | (145,060 | ) | ||||||||
Net loans | 15,344,337 | 15,182,498 | 14,463,553 | |||||||||||
Premises and equipment, net | 320,392 | 332,297 | 323,335 | |||||||||||
Goodwill | 741,740 | 741,740 | 741,740 | |||||||||||
Intangible assets | 68,422 | 71,020 | 79,819 | |||||||||||
FDIC acquired other real estate | 43,660 | 49,641 | 59,848 | |||||||||||
Accrued interest receivable and other assets | 1,268,868 | 1,216,748 | 1,202,701 | |||||||||||
Total assets | $ | 25,118,120 | $ | 24,902,347 | $ | 24,498,661 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing | $ | 5,666,752 | $ | 5,786,662 | $ | 5,595,899 | ||||||||
Interest-bearing | 3,277,118 | 3,028,888 | 3,081,658 | |||||||||||
Savings and money market accounts | 8,610,553 | 8,399,612 | 8,750,182 | |||||||||||
Certificates and other time deposits | 2,371,172 | 2,289,503 | 2,383,935 | |||||||||||
Total deposits | 19,925,595 | 19,504,665 | 19,811,674 | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 1,113,371 | 1,272,591 | 926,195 | |||||||||||
Wholesale borrowings | 316,628 | 428,071 | 349,277 | |||||||||||
Long-term debt | 512,625 | 505,192 | 324,430 | |||||||||||
Accrued taxes, expenses, and other liabilities | 361,115 | 357,547 | 344,119 | |||||||||||
Total liabilities | 22,229,334 | 22,068,066 | 21,755,695 | |||||||||||
Shareholders' equity: | ||||||||||||||
5.875% Non-Cumulative Perpetual Preferred stock, Series A, without par value: authorized 115,000 shares; 100,000 issued | 100,000 | 100,000 | 100,000 | |||||||||||
Common stock warrant | 3,000 | 3,000 | 3,000 | |||||||||||
Common Stock, without par value; authorized 300,000,000 shares; issued: March 31, 2015, December 31, 2014 and March 31, 2014 - 170,183,540 shares | 127,937 | 127,937 | 127,937 | |||||||||||
Capital surplus | 1,394,933 | 1,393,090 | 1,393,749 | |||||||||||
Accumulated other comprehensive loss | (49,267 | ) | (71,892 | ) | (55,504 | ) | ||||||||
Retained earnings | 1,433,926 | 1,404,717 | 1,303,626 | |||||||||||
Treasury stock, at cost: March 31, 2015 - 4,730,374; December 31, 2014 - 4,793,566 shares; March 31, 2014 - 5,096,157 shares | (121,743 | ) | (122,571 | ) | (129,842 | ) | ||||||||
Total shareholders' equity | 2,888,786 | 2,834,281 | 2,742,966 | |||||||||||
Total liabilities and shareholders' equity | $ | 25,118,120 | $ | 24,902,347 | $ | 24,498,661 | ||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES Period End Loans by Product Type (Unaudited) | |||||||||||||||
(In thousands) | As of March 31, 2015 | ||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
Commercial | $ | 8,031,892 | $ | 1,011,170 | $ | 179,547 | $ | 9,222,609 | |||||||
Mortgage | 639,980 | 378,192 | 40,470 | 1,058,642 | |||||||||||
Installment | 2,500,288 | 717,693 | 4,781 | 3,222,762 | |||||||||||
Home equity | 1,134,238 | 217,824 | 65,170 | 1,417,232 | |||||||||||
Credit card | 160,766 | — | — | 160,766 | |||||||||||
Leases | 388,873 | — | — | 388,873 | |||||||||||
Subtotal | 12,856,037 | 2,324,879 | 289,968 | 15,470,884 | |||||||||||
Loss share receivable | — | — | 20,005 | 20,005 | |||||||||||
Total loans | 12,856,037 | 2,324,879 | 309,973 | 15,490,889 | |||||||||||
Allowance for loan losses | (97,545 | ) | (7,493 | ) | (41,514 | ) | (146,552 | ) | |||||||
Net loans | $ | 12,758,492 | $ | 2,317,386 | $ | 268,459 | $ | 15,344,337 | |||||||
As of December 31, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans | Total Loans | ||||||||||||
Commercial | $ | 7,830,085 | $ | 1,086,899 | $ | 211,607 | $ | 9,128,591 | |||||||
Mortgage | 625,283 | 394,484 | 41,276 | 1,061,043 | |||||||||||
Installment | 2,393,451 | 764,168 | 4,874 | 3,162,493 | |||||||||||
Home equity | 1,110,336 | 233,629 | 73,365 | 1,417,330 | |||||||||||
Credit card | 164,478 | — | — | 164,478 | |||||||||||
Leases | 370,179 | — | — | 370,179 | |||||||||||
Subtotal | 12,493,812 | 2,479,180 | 331,122 | 15,304,114 | |||||||||||
Loss share receivable | — | — | 22,033 | 22,033 | |||||||||||
Total loans | 12,493,812 | 2,479,180 | 353,155 | 15,326,147 | |||||||||||
Allowance for loan losses | (95,696 | ) | (7,457 | ) | (40,496 | ) | (143,649 | ) | |||||||
Net loans | $ | 12,398,116 | $ | 2,471,723 | $ | 312,659 | $ | 15,182,498 | |||||||
As of September 30, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans | Total Loans | ||||||||||||
Commercial | $ | 7,626,166 | $ | 1,272,244 | $ | 262,319 | $ | 9,160,729 | |||||||
Mortgage | 605,998 | 410,065 | 43,672 | 1,059,735 | |||||||||||
Installment | 2,277,533 | 809,820 | 5,148 | 3,092,501 | |||||||||||
Home equity | 1,062,013 | 252,975 | 83,278 | 1,398,266 | |||||||||||
Credit card | 160,113 | — | — | 160,113 | |||||||||||
Leases | 339,936 | — | — | 339,936 | |||||||||||
Subtotal | 12,071,759 | 2,745,104 | 394,417 | 15,211,280 | |||||||||||
Loss share receivable | — | — | 30,746 | 30,746 | |||||||||||
Total loans | 12,071,759 | 2,745,104 | 425,163 | 15,242,026 | |||||||||||
Allowance for loan losses | (90,883 | ) | (6,206 | ) | (42,988 | ) | (140,077 | ) | |||||||
Net loans | $ | 11,980,876 | $ | 2,738,898 | $ | 382,175 | $ | 15,101,949 | |||||||
As of June 30, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans | Total Loans | ||||||||||||
Commercial | $ | 7,365,499 | $ | 1,457,903 | $ | 292,782 | $ | 9,116,184 | |||||||
Mortgage | 580,166 | 425,584 | 46,705 | 1,052,455 | |||||||||||
Installment | 2,051,587 | 872,034 | 5,364 | 2,928,985 | |||||||||||
Home equity | 998,179 | 268,266 | 89,815 | 1,356,260 | |||||||||||
Credit card | 151,967 | — | — | 151,967 | |||||||||||
Leases | 319,795 | — | — | 319,795 | |||||||||||
Subtotal | 11,467,193 | 3,023,787 | 434,666 | 14,925,646 | |||||||||||
Loss share receivable | — | — | 43,981 | 43,981 | |||||||||||
Total loans | 11,467,193 | 3,023,787 | 478,647 | 14,969,627 | |||||||||||
Allowance for loan losses | (91,950 | ) | (4,977 | ) | (45,109 | ) | (142,036 | ) | |||||||
Net loans | $ | 11,375,243 | $ | 3,018,810 | $ | 433,538 | $ | 14,827,591 | |||||||
As of March 31, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans | Total Loans | ||||||||||||
Commercial | $ | 7,083,192 | $ | 1,562,878 | $ | 341,267 | $ | 8,987,337 | |||||||
Mortgage | 555,971 | 446,374 | 49,411 | 1,051,756 | |||||||||||
Installment | 1,835,522 | 943,354 | 5,531 | 2,784,407 | |||||||||||
Home equity | 946,802 | 283,309 | 94,828 | 1,324,939 | |||||||||||
Credit card | 147,917 | — | — | 147,917 | |||||||||||
Leases | 257,509 | — | — | 257,509 | |||||||||||
Subtotal | 10,826,913 | 3,235,915 | 491,037 | 14,553,865 | |||||||||||
Loss share receivable | — | — | 54,748 | 54,748 | |||||||||||
Total loans | 10,826,913 | 3,235,915 | 545,785 | 14,608,613 | |||||||||||
Allowance for loan losses | (92,116 | ) | (2,974 | ) | (49,970 | ) | (145,060 | ) | |||||||
Net loans | $ | 10,734,797 | $ | 3,232,941 | $ | 495,815 | $ | 14,463,553 | |||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS | |||||||||||||||||||
Quarterly Periods | |||||||||||||||||||
(Unaudited) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||||||
(In thousands) | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
ASSETS | |||||||||||||||||||
Cash and cash equivalents | $ | 563,265 | $ | 500,559 | $ | 521,210 | $ | 662,000 | $ | 959,071 | |||||||||
Investment securities: | |||||||||||||||||||
Held-to-maturity | 2,874,169 | 2,966,127 | 3,029,971 | 3,061,711 | 2,983,831 | ||||||||||||||
Available-for-sale | 3,645,057 | 3,499,528 | 3,460,312 | 3,444,830 | 3,332,358 | ||||||||||||||
Other investments | 148,532 | 148,636 | 148,427 | 148,440 | 168,389 | ||||||||||||||
Loans held for sale | 5,478 | 16,708 | 17,433 | 10,196 | 6,804 | ||||||||||||||
Loans | 15,427,181 | 15,289,890 | 15,148,100 | 14,702,319 | 14,412,481 | ||||||||||||||
Less: allowance for loan losses | 144,363 | 138,540 | 140,026 | 146,368 | 138,891 | ||||||||||||||
Net loans | 15,282,818 | 15,151,350 | 15,008,074 | 14,555,951 | 14,273,590 | ||||||||||||||
Total earning assets | 22,100,417 | 21,920,889 | 21,804,243 | 21,367,496 | 20,903,863 | ||||||||||||||
Premises and equipment, net | 322,431 | 321,187 | 317,366 | 323,175 | 327,845 | ||||||||||||||
Accrued interest receivable and other assets | 2,063,344 | 2,060,892 | 2,080,983 | 2,084,973 | 2,092,682 | ||||||||||||||
TOTAL ASSETS | $ | 24,905,094 | $ | 24,664,987 | $ | 24,583,776 | $ | 24,291,276 | $ | 24,144,570 | |||||||||
LIABILITIES | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Noninterest-bearing | $ | 5,728,763 | $ | 5,706,631 | $ | 5,603,104 | $ | 5,515,807 | $ | 5,488,751 | |||||||||
Interest-bearing | 3,209,285 | 3,021,188 | 3,100,904 | 3,066,201 | 3,045,952 | ||||||||||||||
Savings and money market accounts | 8,542,154 | 8,381,548 | 8,492,172 | 8,580,928 | 8,698,817 | ||||||||||||||
Certificates and other time deposits | 2,308,723 | 2,341,280 | 2,335,620 | 2,333,859 | 2,402,986 | ||||||||||||||
Total deposits | 19,788,925 | 19,450,647 | 19,531,800 | 19,496,795 | 19,636,506 | ||||||||||||||
Federal funds purchased and securities sold under | |||||||||||||||||||
agreements to repurchase | 1,024,863 | 1,241,948 | 1,182,507 | 1,024,598 | 884,065 | ||||||||||||||
Wholesale borrowings | 350,991 | 450,587 | 438,941 | 373,213 | 276,324 | ||||||||||||||
Long-term debt | 505,275 | 350,535 | 320,387 | 324,431 | 324,428 | ||||||||||||||
Total funds | 21,670,054 | 21,493,717 | 21,473,635 | 21,219,037 | 21,121,323 | ||||||||||||||
Accrued taxes, expenses and other liabilities | 368,678 | 321,652 | 302,255 | 303,887 | 290,021 | ||||||||||||||
Total liabilities | 22,038,732 | 21,815,369 | 21,775,890 | 21,522,924 | 21,411,344 | ||||||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||||||
Preferred stock | 100,000 | 100,000 | 100,000 | 100,000 | 100,000 | ||||||||||||||
Common stock warrant | 3,000 | 3,000 | 3,000 | 3,000 | 3,000 | ||||||||||||||
Common stock | 127,937 | 127,937 | 127,937 | 127,937 | 127,937 | ||||||||||||||
Capital surplus | 1,393,682 | 1,391,189 | 1,388,423 | 1,386,497 | 1,391,695 | ||||||||||||||
Accumulated other comprehensive loss | (58,025 | ) | (38,827 | ) | (41,963 | ) | (44,952 | ) | (52,940 | ) | |||||||||
Retained earnings | 1,422,067 | 1,388,661 | 1,352,867 | 1,319,515 | 1,293,379 | ||||||||||||||
Treasury stock | (122,299 | ) | (122,342 | ) | (122,378 | ) | (123,645 | ) | (129,845 | ) | |||||||||
Total shareholders' equity | 2,866,362 | 2,849,618 | 2,807,886 | 2,768,352 | 2,733,226 | ||||||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 24,905,094 | $ | 24,664,987 | $ | 24,583,776 | $ | 24,291,276 | $ | 24,144,570 | |||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES Average Loans by Product Type (Unaudited) | |||||||||||||||
(In thousands) | Quarter ended March 31, 2015 | ||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
Commercial | $ | 7,979,901 | $ | 1,053,601 | $ | 196,421 | $ | 9,229,923 | |||||||
Mortgage | 631,761 | 386,033 | 40,800 | 1,058,594 | |||||||||||
Installment | 2,424,956 | 742,095 | 4,822 | 3,171,873 | |||||||||||
Home equity | 1,122,988 | 224,444 | 69,668 | 1,417,100 | |||||||||||
Credit card | 162,160 | — | — | 162,160 | |||||||||||
Leases | 368,025 | — | — | 368,025 | |||||||||||
Subtotal | 12,689,791 | 2,406,173 | 311,711 | 15,407,675 | |||||||||||
Loss share receivable | — | — | 19,506 | 19,506 | |||||||||||
Total loans | 12,689,791 | 2,406,173 | 331,217 | 15,427,181 | |||||||||||
Less allowance for loan losses | 95,952 | 8,287 | 40,124 | 144,363 | |||||||||||
Net loans | $ | 12,593,839 | $ | 2,397,886 | $ | 291,093 | $ | 15,282,818 | |||||||
Quarter ended December 31, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
Commercial | $ | 7,734,881 | $ | 1,170,536 | $ | 231,531 | $ | 9,136,948 | |||||||
Mortgage | 617,803 | 401,173 | 42,409 | 1,061,385 | |||||||||||
Installment | 2,353,599 | 785,035 | 4,944 | 3,143,578 | |||||||||||
Home equity | 1,087,123 | 242,878 | 78,361 | 1,408,362 | |||||||||||
Credit card | 161,543 | — | — | 161,543 | |||||||||||
Leases | 351,222 | — | — | 351,222 | |||||||||||
Subtotal | 12,306,171 | 2,599,622 | 357,245 | 15,263,038 | |||||||||||
Loss share receivable | — | — | 26,852 | 26,852 | |||||||||||
Total loans | 12,306,171 | 2,599,622 | 384,097 | 15,289,890 | |||||||||||
Less allowance for loan losses | 91,178 | 6,203 | 41,159 | 138,540 | |||||||||||
Net loans | $ | 12,214,993 | $ | 2,593,419 | $ | 342,938 | $ | 15,151,350 | |||||||
Quarter Ended September 30, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
Commercial | $ | 7,534,848 | $ | 1,373,103 | $ | 271,299 | $ | 9,179,250 | |||||||
Mortgage | 594,258 | 416,417 | 44,672 | 1,055,347 | |||||||||||
Installment | 2,171,246 | 838,687 | 5,278 | 3,015,211 | |||||||||||
Home equity | 1,030,256 | 259,867 | 86,224 | 1,376,347 | |||||||||||
Credit card | 156,866 | — | — | 156,866 | |||||||||||
Leases | 326,840 | — | — | 326,840 | |||||||||||
Subtotal | 11,814,314 | 2,888,074 | 407,473 | 15,109,861 | |||||||||||
Loss share receivable | — | — | 38,239 | 38,239 | |||||||||||
Total loans | 11,814,314 | 2,888,074 | 445,712 | 15,148,100 | |||||||||||
Less allowance for loan losses | 91,888 | 6,088 | 42,050 | 140,026 | |||||||||||
Net loans | $ | 11,722,426 | $ | 2,881,986 | $ | 403,662 | $ | 15,008,074 | |||||||
Quarter Ended June 30, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
Commercial | $ | 7,185,060 | $ | 1,492,139 | $ | 303,721 | $ | 8,980,920 | |||||||
Mortgage | 565,703 | 434,936 | 48,258 | 1,048,897 | |||||||||||
Installment | 1,939,802 | 907,069 | 5,445 | 2,852,316 | |||||||||||
Home equity | 969,592 | 275,387 | 91,855 | 1,336,834 | |||||||||||
Credit card | 149,903 | — | — | 149,903 | |||||||||||
Leases | 282,041 | — | — | 282,041 | |||||||||||
Subtotal | 11,092,101 | 3,109,531 | 449,279 | 14,650,911 | |||||||||||
Loss share receivable | — | — | 51,408 | 51,408 | |||||||||||
Total loans | 11,092,101 | 3,109,531 | 500,687 | 14,702,319 | |||||||||||
Less allowance for loan losses | 94,063 | 3,034 | 49,271 | 146,368 | |||||||||||
Net loans | $ | 10,998,038 | $ | 3,106,497 | $ | 451,416 | $ | 14,555,951 | |||||||
Quarter ended March 31, 2014 | |||||||||||||||
Originated Loans | Acquired Loans (1) | FDIC Acquired Loans (2) | Total Loans | ||||||||||||
Commercial | $ | 6,819,522 | $ | 1,678,267 | $ | 357,033 | $ | 8,854,822 | |||||||
Mortgage | 538,151 | 459,842 | 49,921 | 1,047,914 | |||||||||||
Installment | 1,771,434 | 972,711 | 6,012 | 2,750,157 | |||||||||||
Home equity | 929,362 | 288,529 | 95,487 | 1,313,378 | |||||||||||
Credit card | 147,265 | — | — | 147,265 | |||||||||||
Leases | 242,649 | — | — | 242,649 | |||||||||||
Subtotal | 10,448,383 | 3,399,349 | 508,453 | 14,356,185 | |||||||||||
Loss share receivable | — | — | 56,296 | 56,296 | |||||||||||
Total loans | 10,448,383 | 3,399,349 | 564,749 | 14,412,481 | |||||||||||
Less allowance for loan losses | 96,789 | (617 | ) | 42,719 | 138,891 | ||||||||||
Net loans | $ | 10,351,594 | $ | 3,399,966 | $ | 522,030 | $ | 14,273,590 | |||||||
(1) Loans assumed from Citizens. No allowance was brought forward on the date of acquisition in accordance with business combination accounting. | |||||||||||||||
(2) Loans acquired in an FDIC-assisted transaction. Includes non-single family loans for which the loss share agreement expired on March 31, 2015. |
FIRSTMERIT CORPORATION AND SUBIDARIES | ||||||||||||||||||||||||||||||||
AVERAGE CONSOLIDATED BALANCE SHEETS | ||||||||||||||||||||||||||||||||
Fully Tax-equivalent Interest Rates and Interest Differential | ||||||||||||||||||||||||||||||||
Three months ended | Three months ended | Three months ended | ||||||||||||||||||||||||||||||
March 31, 2015 | December 31, 2014 | March 31, 2014 | ||||||||||||||||||||||||||||||
(Unaudited) | Average | Average | Average | Average | Average | Average | ||||||||||||||||||||||||||
(Dollars in thousands) | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | Balance | Interest (1) | Rate | |||||||||||||||||||||||
ASSETS | ||||||||||||||||||||||||||||||||
Cash and cash equivalents | $ | 563,265 | $ | 500,559 | $ | 959,071 | ||||||||||||||||||||||||||
Investment securities and federal funds sold: | ||||||||||||||||||||||||||||||||
U.S. treasury securities and U.S. government agency obligations (taxable) | 5,329,725 | $ | 26,760 | 2.04 | % | 5,257,657 | $ | 26,803 | 2.02 | % | 5,151,341 | $ | 25,910 | 2.04 | % | |||||||||||||||||
Obligations of states and political subdivisions (tax exempt) | 733,157 | 9,147 | 5.06 | % | 767,026 | 8,636 | 4.47 | % | 739,875 | 8,613 | 4.72 | % | ||||||||||||||||||||
Other securities and federal funds sold | 604,876 | 5,190 | 3.48 | % | 589,608 | 5,213 | 3.51 | % | 593,362 | 6,113 | 4.18 | % | ||||||||||||||||||||
Total investment securities and federal funds sold | 6,667,758 | 41,097 | 2.50 | % | 6,614,291 | 40,652 | 2.44 | % | 6,484,578 | 40,636 | 2.54 | % | ||||||||||||||||||||
Loans held for sale | 5,478 | 57 | 4.22 | % | 16,708 | 145 | 3.44 | % | 6,804 | 59 | 3.53 | % | ||||||||||||||||||||
Loans, including loss share receivable (2) | 15,427,181 | 162,292 | 4.27 | % | 15,289,890 | 169,302 | 4.39 | % | 14,412,481 | 171,135 | 4.82 | % | ||||||||||||||||||||
Total earning assets | 22,100,417 | $ | 203,446 | 3.73 | % | 21,920,889 | $ | 210,099 | 3.80 | % | 20,903,863 | $ | 211,830 | 4.11 | % | |||||||||||||||||
Total allowance for loan losses | (144,363 | ) | (138,540 | ) | (138,891 | ) | ||||||||||||||||||||||||||
Other assets | 2,385,775 | 2,382,079 | 2,420,527 | |||||||||||||||||||||||||||||
Total assets | $ | 24,905,094 | $ | 24,664,987 | $ | 24,144,570 | ||||||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||||||||||||||||||||
Deposits: | ||||||||||||||||||||||||||||||||
Noninterest-bearing | $ | 5,728,763 | $ | — | — | % | $ | 5,706,631 | $ | — | — | % | $ | 5,488,751 | $ | — | — | % | ||||||||||||||
Interest-bearing | 3,209,285 | 767 | 0.10 | % | 3,021,188 | 727 | 0.10 | % | 3,045,952 | 737 | 0.10 | % | ||||||||||||||||||||
Savings and money market accounts | 8,542,154 | 5,547 | 0.26 | % | 8,381,548 | 5,496 | 0.26 | % | 8,698,817 | 5,559 | 0.26 | % | ||||||||||||||||||||
Certificates and other time deposits | 2,308,723 | 2,177 | 0.38 | % | 2,341,280 | 2,525 | 0.43 | % | 2,402,986 | 2,464 | 0.42 | % | ||||||||||||||||||||
Total deposits | 19,788,925 | 8,491 | 0.17 | % | 19,450,647 | 8,748 | 0.18 | % | 19,636,506 | 8,760 | 0.18 | % | ||||||||||||||||||||
Securities sold under agreements to repurchase | 1,024,863 | 243 | 0.10 | % | 1,241,948 | 294 | 0.09 | % | 884,065 | 197 | 0.09 | % | ||||||||||||||||||||
Wholesale borrowings | 350,991 | 2,340 | 2.70 | % | 450,587 | 2,360 | 2.08 | % | 276,324 | 1,129 | 1.66 | % | ||||||||||||||||||||
Long-term debt | 505,275 | 2,818 | 2.26 | % | 350,535 | 2,188 | 2.48 | % | 324,428 | 3,890 | 4.86 | % | ||||||||||||||||||||
Total interest-bearing liabilities | 15,941,291 | 13,892 | 0.35 | % | 15,787,086 | 13,590 | 0.34 | % | 15,632,572 | 13,976 | 0.36 | % | ||||||||||||||||||||
Other liabilities | 368,678 | 321,652 | 290,021 | |||||||||||||||||||||||||||||
Shareholders' equity | 2,866,362 | 2,849,618 | 2,733,226 | |||||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 24,905,094 | $ | 24,664,987 | $ | 24,144,570 | ||||||||||||||||||||||||||
Net yield on earning assets | $ | 22,100,417 | $ | 189,554 | 3.48 | % | $ | 21,920,889 | $ | 196,509 | 3.56 | % | $ | 20,903,863 | $ | 197,854 | 3.84 | % | ||||||||||||||
Interest rate spread | 3.38 | % | 3.46 | % | 3.75 | % | ||||||||||||||||||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||
CONSOLIDATED STATEMENTS OF INCOME | |||||||||||
(In thousands, except per share amounts) | Quarters Ended | ||||||||||
(Unaudited) | March 31, | ||||||||||
2015 | 2014 | ||||||||||
Interest income: | |||||||||||
Loans and loans held for sale | $ | 161,539 | $ | 170,514 | |||||||
Investment securities: | |||||||||||
Taxable | 31,950 | 32,022 | |||||||||
Tax-exempt | 6,026 | 5,340 | |||||||||
Total investment securities interest | 37,976 | 37,362 | |||||||||
Total interest income | 199,515 | 207,876 | |||||||||
Interest expense: | |||||||||||
Deposits: | |||||||||||
Interest-bearing | 767 | 737 | |||||||||
Savings and money market accounts | 5,547 | 5,559 | |||||||||
Certificates and other time deposits | 2,177 | 2,464 | |||||||||
Federal funds purchased and securities sold under agreements to repurchase | 243 | 197 | |||||||||
Wholesale borrowings | 2,340 | 1,129 | |||||||||
Long-term debt | 2,818 | 3,890 | |||||||||
Total interest expense | 13,892 | 13,976 | |||||||||
Net interest income | 185,623 | 193,900 | |||||||||
Provision for loan losses | 8,248 | 14,536 | |||||||||
Net interest income after provision for loan losses | 177,375 | 179,364 | |||||||||
Noninterest income: | |||||||||||
Trust department income | 10,149 | 9,748 | |||||||||
Service charges on deposits | 15,668 | 16,648 | |||||||||
Credit card fees | 12,649 | 12,152 | |||||||||
ATM and other service fees | 6,099 | 5,819 | |||||||||
Bank owned life insurance income | 3,592 | 3,582 | |||||||||
Investment services and insurance | 3,704 | 3,516 | |||||||||
Investment securities gains/(losses), net | 354 | 56 | |||||||||
Loan sales and servicing income | 1,600 | 3,730 | |||||||||
Other operating income | 12,032 | 12,019 | |||||||||
Total noninterest income | 65,847 | 67,270 | |||||||||
Noninterest expenses: | |||||||||||
Salaries, wages, pension and employee benefits | 90,526 | 89,013 | |||||||||
Net occupancy expense | 15,954 | 17,014 | |||||||||
Equipment expense | 11,025 | 11,911 | |||||||||
Stationery, supplies and postage | 3,528 | 4,108 | |||||||||
Bankcard, loan processing and other costs | 11,139 | 10,834 | |||||||||
Professional services | 4,010 | 5,359 | |||||||||
Amortization of intangibles | 2,598 | 2,936 | |||||||||
FDIC insurance expense | 5,167 | 5,971 | |||||||||
Other operating expense | 16,705 | 22,185 | |||||||||
Total noninterest expenses | 160,652 | 169,331 | |||||||||
Income before income tax expense | 82,570 | 77,303 | |||||||||
Income tax expense | 25,431 | 23,848 | |||||||||
Net income | $ | 57,139 | $ | 53,455 | |||||||
Less: | Net income allocated to participating shareholders | 407 | 380 | ||||||||
Preferred stock dividends | 1,469 | 1,469 | |||||||||
Net income attributable to common shareholders | $ | 55,263 | $ | 51,606 | |||||||
Net income used in diluted EPS calculation | $ | 55,263 | $ | 51,606 | |||||||
Weighted average number of common shares outstanding - basic | 165,411 | 165,060 | |||||||||
Weighted average number of common shares outstanding - diluted | 166,003 | 166,004 | |||||||||
Basic earnings per common share | $ | 0.33 | $ | 0.31 | |||||||
Diluted earnings per common share | $ | 0.33 | $ | 0.31 | |||||||
Cash dividends per common share | $ | 0.16 | $ | 0.16 | |||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME | ||||||||||||
(Unaudited) | Quarter Ended | |||||||||||
(In thousands) | March 31, 2015 | |||||||||||
Pre-tax | Tax | After-tax | ||||||||||
Net Income | $ | 82,570 | $ | 25,431 | $ | 57,139 | ||||||
Other comprehensive income/(loss) | ||||||||||||
Unrealized gains and losses on securities available for sale: | ||||||||||||
Changes in unrealized securities' holding gains/(losses) | 34,117 | 11,941 | 22,176 | |||||||||
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred into available-for-sale from held-to-maturity | (504 | ) | (176 | ) | (328 | ) | ||||||
Net losses/(gains) realized on sale of securities reclassified to noninterest income | (354 | ) | (124 | ) | (230 | ) | ||||||
Net change in unrealized gains/(losses) on securities available for sale | 33,259 | 11,641 | 21,618 | |||||||||
Pension plans and other postretirement benefits: | ||||||||||||
Amortization of actuarial gain | 1,138 | 398 | 740 | |||||||||
Amortization of prior service cost reclassified to other noninterest expense | 410 | 143 | 267 | |||||||||
Net change from defined benefit pension plans | 1,548 | 541 | 1,007 | |||||||||
Total other comprehensive gains/(losses) | 34,807 | 12,182 | 22,625 | |||||||||
Comprehensive income | $ | 117,377 | $ | 37,613 | $ | 79,764 |
(Unaudited) | Quarter Ended | |||||||||||
(In thousands) | March 31, 2014 | |||||||||||
Pre-tax | Tax | After-tax | ||||||||||
Net Income | $ | 77,303 | $ | 23,848 | $ | 53,455 | ||||||
Other comprehensive income/(loss) | ||||||||||||
Unrealized gains and losses on securities available for sale: | ||||||||||||
Changes in unrealized securities' holding gains/(losses) | 18,044 | 6,315 | 11,729 | |||||||||
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred into available-for-sale from held-to-maturity | (494 | ) | (173 | ) | (321 | ) | ||||||
Net losses/(gains) realized on sale of securities reclassified to noninterest income | (56 | ) | (20 | ) | (36 | ) | ||||||
Net change in unrealized gains/(losses) on securities available for sale | 17,494 | 6,122 | 11,372 | |||||||||
Total other comprehensive gains/(losses) | 17,494 | 6,122 | 11,372 | |||||||||
Comprehensive income | $ | 94,797 | $ | 29,970 | $ | 64,827 | ||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
CONSOLIDATED STATEMENTS OF INCOME---LINKED QUARTERS | |||||||||||||||||||
Quarterly Results | |||||||||||||||||||
(In thousands, except per share amounts) | 2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||
(Unaudited) | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | ||||||||||||||
Interest Income: | |||||||||||||||||||
Loans and loans held for sale | $ | 161,539 | $ | 168,650 | $ | 170,648 | $ | 172,517 | $ | 170,514 | |||||||||
Investment securities | 37,976 | 37,451 | 37,549 | 37,808 | 37,362 | ||||||||||||||
Total interest income | 199,515 | 206,101 | 208,197 | 210,325 | 207,876 | ||||||||||||||
Interest expense: | |||||||||||||||||||
Deposits: | |||||||||||||||||||
Interest-bearing | 767 | 727 | 755 | 745 | 737 | ||||||||||||||
Savings and money market accounts | 5,547 | 5,496 | 5,570 | 5,477 | 5,559 | ||||||||||||||
Certificates and other time deposits | 2,177 | 2,525 | 2,846 | 3,009 | 2,464 | ||||||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 243 | 294 | 268 | 233 | 197 | ||||||||||||||
Wholesale borrowings | 2,340 | 2,360 | 1,397 | 1,391 | 1,129 | ||||||||||||||
Long-term debt | 2,818 | 2,188 | 3,783 | 3,893 | 3,890 | ||||||||||||||
Total interest expense | 13,892 | 13,590 | 14,619 | 14,748 | 13,976 | ||||||||||||||
Net interest income | 185,623 | 192,511 | 193,578 | 195,577 | 193,900 | ||||||||||||||
Provision for loan losses | 8,248 | 13,297 | 9,192 | 15,253 | 14,536 | ||||||||||||||
Net interest income after provision for loan losses | 177,375 | 179,214 | 184,386 | 180,324 | 179,364 | ||||||||||||||
Noninterest income: | |||||||||||||||||||
Trust department income | 10,149 | 9,831 | 10,300 | 10,070 | 9,748 | ||||||||||||||
Service charges on deposits | 15,668 | 17,597 | 18,684 | 18,528 | 16,648 | ||||||||||||||
Credit card fees | 12,649 | 13,305 | 13,754 | 13,455 | 12,152 | ||||||||||||||
ATM and other service fees | 6,099 | 6,181 | 6,182 | 5,996 | 5,819 | ||||||||||||||
Bank owned life insurance income | 3,592 | 7,337 | 4,218 | 4,040 | 3,582 | ||||||||||||||
Investment services and insurance | 3,704 | 4,171 | 3,606 | 3,852 | 3,516 | ||||||||||||||
Investment securities gains/(losses), net | 354 | 16 | 14 | 80 | 56 | ||||||||||||||
Loan sales and servicing income | 1,600 | 3,112 | 4,740 | 4,462 | 3,730 | ||||||||||||||
Other operating income | 12,032 | 10,410 | 8,235 | 12,077 | 12,019 | ||||||||||||||
Total noninterest income | 65,847 | 71,960 | 69,733 | 72,560 | 67,270 | ||||||||||||||
Noninterest expenses: | |||||||||||||||||||
Salaries, wages, pension and employee benefits | 90,526 | 89,899 | 90,593 | 89,465 | 89,013 | ||||||||||||||
Net occupancy expense | 15,954 | 14,188 | 13,887 | 14,347 | 17,014 | ||||||||||||||
Equipment expense | 11,025 | 12,133 | 12,188 | 12,267 | 11,911 | ||||||||||||||
Stationery, supplies and postage | 3,528 | 3,767 | 3,723 | 3,990 | 4,108 | ||||||||||||||
Bankcard, loan processing and other costs | 11,139 | 11,830 | 11,151 | 11,810 | 10,834 | ||||||||||||||
Professional services | 4,010 | 6,440 | 5,270 | 4,745 | 5,359 | ||||||||||||||
Amortization of intangibles | 2,598 | 2,933 | 2,933 | 2,933 | 2,936 | ||||||||||||||
FDIC insurance expense | 5,167 | 5,989 | 2,988 | 5,533 | 5,971 | ||||||||||||||
Other operating expense | 16,705 | 17,862 | 20,412 | 22,310 | 22,185 | ||||||||||||||
Total noninterest expenses | 160,652 | 165,041 | 163,145 | 167,400 | 169,331 | ||||||||||||||
Income before income tax expense | 82,570 | 86,133 | 90,974 | 85,484 | 77,303 | ||||||||||||||
Income tax expense | 25,431 | 25,054 | 27,076 | 25,965 | 23,848 | ||||||||||||||
Net income | 57,139 | 61,079 | 63,898 | 59,519 | 53,455 | ||||||||||||||
Less: Net income allocated to participating shareholders | 407 | 496 | 519 | 489 | 380 | ||||||||||||||
Preferred stock dividends | 1,469 | 1,469 | 1,469 | 1,469 | 1,469 | ||||||||||||||
Net income attributable to common shareholders | $ | 55,263 | $ | 59,114 | $ | 61,910 | $ | 57,561 | $ | 51,606 | |||||||||
Net income used in diluted EPS calculation | $ | 55,263 | $ | 59,114 | $ | 61,910 | $ | 57,561 | $ | 51,606 | |||||||||
Weighted-average number of common shares outstanding - basic | 165,411 | 165,395 | 165,389 | 165,335 | 165,060 | ||||||||||||||
Weighted-average number of common shares outstanding- diluted | 166,003 | 165,974 | 165,804 | 166,147 | 166,004 | ||||||||||||||
Basic earnings per common share | $ | 0.33 | $ | 0.36 | $ | 0.37 | $ | 0.35 | $ | 0.31 | |||||||||
Diluted earnings per common share | $ | 0.33 | $ | 0.36 | $ | 0.37 | $ | 0.35 | $ | 0.31 | |||||||||
Cash dividends per common share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | |||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||||||
ASSET QUALITY INFORMATION (excluding acquired loans, FDIC acquired loans, and covered OREO) (1) | |||||||||||||||||||||||
(Unaudited) | (Unaudited) | (Audited) | |||||||||||||||||||||
(Dollars in thousands) | Quarterly Periods | Annual Period | |||||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||||||
Allowance for Credit Losses | 2015 | 2014 | 2014 | 2014 | 2014 | 2014 | |||||||||||||||||
Allowance for originated loan losses, beginning of period | $ | 95,696 | $ | 90,883 | $ | 91,950 | $ | 92,116 | $ | 96,484 | $ | 96,484 | |||||||||||
Provision for originated loan losses | 6,036 | 8,662 | 4,862 | 5,993 | 3,654 | 23,171 | |||||||||||||||||
Charge-offs | 8,567 | 9,205 | 11,410 | 11,148 | 13,160 | 44,923 | |||||||||||||||||
Recoveries | 4,380 | 5,356 | 5,481 | 4,989 | 5,138 | 20,964 | |||||||||||||||||
Net charge-offs | 4,187 | 3,849 | 5,929 | 6,159 | 8,022 | 23,959 | |||||||||||||||||
Allowance for originated loan losses, end of period | $ | 97,545 | $ | 95,696 | $ | 90,883 | $ | 91,950 | $ | 92,116 | $ | 95,696 | |||||||||||
Reserve for unfunded lending commitments, | |||||||||||||||||||||||
beginning of period | $ | 5,848 | $ | 6,966 | $ | 7,107 | $ | 7,481 | $ | 7,907 | $ | 7,907 | |||||||||||
Provision for (relief of) credit losses | (1,518 | ) | (1,118 | ) | (141 | ) | (374 | ) | (426 | ) | (2,059 | ) | |||||||||||
Reserve for unfunded lending commitments, | |||||||||||||||||||||||
end of period | $ | 4,330 | $ | 5,848 | $ | 6,966 | $ | 7,107 | $ | 7,481 | $ | 5,848 | |||||||||||
Allowance for Credit Losses | $ | 101,875 | $ | 101,544 | $ | 97,849 | $ | 99,057 | $ | 99,597 | $ | 101,544 | |||||||||||
Ratios | |||||||||||||||||||||||
Provision for loan losses to average loans | 0.19 | % | 0.28 | % | 0.16 | % | 0.22 | % | 0.14 | % | 0.20 | % | |||||||||||
Net charge-offs to average loans | 0.13 | % | 0.12 | % | 0.20 | % | 0.22 | % | 0.31 | % | 0.21 | % | |||||||||||
Allowance for loan losses to period-end loans | 0.76 | % | 0.77 | % | 0.75 | % | 0.80 | % | 0.85 | % | 0.77 | % | |||||||||||
Allowance for credit losses to period-end loans | 0.79 | % | 0.81 | % | 0.81 | % | 0.86 | % | 0.92 | % | 0.81 | % | |||||||||||
Allowance for loan losses to nonperforming loans | 211.66 | % | 276.44 | % | 231.13 | % | 250.27 | % | 212.01 | % | 276.44 | % | |||||||||||
Allowance for credit losses to nonperforming loans | 221.06 | % | 293.34 | % | 248.85 | % | 269.61 | % | 229.23 | % | 293.34 | % | |||||||||||
Asset Quality | |||||||||||||||||||||||
Impaired originated loans: | |||||||||||||||||||||||
Commercial loans | $ | 28,478 | $ | 17,147 | $ | 22,347 | $ | 21,072 | $ | 27,122 | $ | 17,147 | |||||||||||
Consumer loans | 17,607 | 17,470 | 16,974 | 15,669 | 16,326 | 17,470 | |||||||||||||||||
Total nonperforming loans | 46,085 | 34,617 | 39,321 | 36,741 | 43,448 | 34,617 | |||||||||||||||||
Other real estate owned ("OREO") (2) | 22,521 | 20,421 | 23,798 | 24,181 | 19,263 | 20,421 | |||||||||||||||||
Total nonperforming assets ("NPAs") (2) | $ | 68,606 | $ | 55,038 | $ | 63,119 | $ | 60,922 | $ | 62,711 | $ | 55,038 | |||||||||||
NPAs to period-end loans + OREO (2) | 0.53 | % | 0.44 | % | 0.52 | % | 0.53 | % | 0.58 | % | 0.44 | % | |||||||||||
Accruing originated loans past due 90 days or more | $ | 7,914 | $ | 12,156 | $ | 8,538 | $ | 15,643 | $ | 11,860 | $ | 12,156 | |||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(In thousands) | ||||||||||||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||
Noninterest income detail | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||||||
Trust department income | $ | 10,149 | $ | 9,831 | $ | 10,300 | $ | 10,070 | $ | 9,748 | ||||||||||
Service charges on deposits | 15,668 | 17,597 | 18,684 | 18,528 | 16,648 | |||||||||||||||
Credit card fees | 12,649 | 13,305 | 13,754 | 13,455 | 12,152 | |||||||||||||||
ATM and other service fees | 6,099 | 6,181 | 6,182 | 5,996 | 5,819 | |||||||||||||||
Bank owned life insurance income | 3,592 | 7,337 | 4,218 | 4,040 | 3,582 | |||||||||||||||
Investment services and insurance | 3,704 | 4,171 | 3,606 | 3,852 | 3,516 | |||||||||||||||
Investment securities gains/(losses), net | 354 | 16 | 14 | 80 | 56 | |||||||||||||||
Loan sales and servicing income | 1,600 | 3,112 | 4,740 | 4,462 | 3,730 | |||||||||||||||
Other operating income | 12,032 | 10,410 | 8,235 | 12,077 | 12,019 | |||||||||||||||
Total Noninterest Income | $ | 65,847 | $ | 71,960 | $ | 69,733 | $ | 72,560 | $ | 67,270 | ||||||||||
2015 | 2014 | 2014 | 2014 | 2014 | ||||||||||||||||
Noninterest expense detail | 1st qtr | 4th qtr | 3rd qtr | 2nd qtr | 1st qtr | |||||||||||||||
Salaries and wages | $ | 71,914 | $ | 71,638 | $ | 71,769 | $ | 69,892 | $ | 71,669 | ||||||||||
Pension and employee benefits | 18,612 | 18,261 | 18,824 | 19,573 | 17,344 | |||||||||||||||
Net occupancy expense | 15,954 | 14,188 | 13,887 | 14,347 | 17,014 | |||||||||||||||
Equipment expense | 11,025 | 12,133 | 12,188 | 12,267 | 11,911 | |||||||||||||||
Taxes, other than federal income taxes | 2,014 | 1,661 | 1,286 | 2,576 | 2,774 | |||||||||||||||
Stationery, supplies and postage | 3,528 | 3,767 | 3,723 | 3,990 | 4,108 | |||||||||||||||
Bankcard, loan processing and other costs | 11,139 | 11,830 | 11,151 | 11,810 | 10,834 | |||||||||||||||
Advertising | 2,747 | 3,586 | 3,942 | 3,801 | 3,516 | |||||||||||||||
Professional services | 4,010 | 6,440 | 5,270 | 4,745 | 5,359 | |||||||||||||||
Telephone | 2,574 | 2,779 | 2,831 | 2,857 | 2,908 | |||||||||||||||
Amortization of intangibles | 2,598 | 2,933 | 2,933 | 2,933 | 2,936 | |||||||||||||||
FDIC insurance expense | 5,167 | 5,989 | 2,988 | 5,533 | 5,971 | |||||||||||||||
Other operating expense | 9,370 | 9,836 | 12,353 | 13,076 | 12,987 | |||||||||||||||
Total Noninterest Expense | $ | 160,652 | $ | 165,041 | $ | 163,145 | $ | 167,400 | $ | 169,331 | ||||||||||
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||
ALLOWANCE FOR ORIGINATED LOAN LOSSES - Net Charge-off Detail (excluding acquired and FDIC acquired loans) (1) | |||||||||||
(Unaudited) | Quarters Ended | Year Ended | |||||||||
(Dollars in thousands) | March 31, | December 31, | |||||||||
2015 | 2014 | 2014 | |||||||||
Allowance for originated loan losses - beginning of period | $ | 95,696 | $ | 96,484 | $ | 96,484 | |||||
Loans charged off: | |||||||||||
Commercial | 685 | 5,153 | 12,701 | ||||||||
Mortgage | 424 | 559 | 2,031 | ||||||||
Installment | 4,605 | 4,584 | 17,932 | ||||||||
Home equity | 911 | 838 | 4,831 | ||||||||
Credit cards | 1,452 | 1,455 | 4,604 | ||||||||
Leases | — | — | — | ||||||||
Overdrafts | 490 | 571 | 2,824 | ||||||||
Total | 8,567 | 13,160 | 44,923 | ||||||||
Recoveries: | |||||||||||
Commercial | 325 | 1,029 | 4,332 | ||||||||
Mortgage | 35 | 38 | 318 | ||||||||
Installment | 2,868 | 2,738 | 10,513 | ||||||||
Home equity | 613 | 699 | 2,940 | ||||||||
Credit cards | 366 | 418 | 1,716 | ||||||||
Manufactured housing | 13 | 11 | 87 | ||||||||
Leases | 4 | — | 379 | ||||||||
Overdrafts | 156 | 205 | 679 | ||||||||
Total | 4,380 | 5,138 | 20,964 | ||||||||
Net charge-offs | 4,187 | 8,022 | 23,959 | ||||||||
Provision for originated loan losses | 6,036 | 3,654 | 23,171 | ||||||||
Allowance for originated loan losses-end of period | $ | 97,545 | $ | 92,116 | $ | 95,696 | |||||
Average originated loans | $ | 12,689,791 | $ | 10,448,383 | $ | 11,421,426 | |||||
Ratio (annualized) to average originated loans: | |||||||||||
Originated net charge-offs | 0.13 | % | 0.31 | % | 0.21 | % | |||||
Provision for originated loan losses | 0.19 | % | 0.14 | % | 0.20 | % | |||||
Originated Loans, period-end | $ | 12,856,037 | $ | 10,826,913 | $ | 12,493,812 | |||||
Allowance for credit losses: | $ | 101,875 | $ | 99,597 | $ | 101,544 | |||||
To (annualized) net charge-offs | 6.00 | 3.06 | 4.24 | ||||||||
Allowance for originated loan losses: | |||||||||||
To period-end originated loans | 0.76 | % | 0.85 | % | 0.77 | % | |||||
To (annualized) net originated charge-offs | 5.74 | 2.83 | 3.99 | ||||||||