FIRSTMERIT CORP /OH/ - FORM 8-K - EX-99.1

Attached files

file	filename
8-K - 8-K - FIRSTMERIT CORP /OH/	d230660d8k.htm

The FirstMerit Opportunity

Barclays Capital

GLOBAL FINANCIAL SERVICES CONFERENCE

SEPTEMBER 13 -

14, 2011 | HILTON NEW YORK, NEW YORK CITY

Exhibit 99.1

•

Strong Platform

Solid capital position

Strong balance sheet

Credit discipline

Consistent quarterly profits

•

Franchise Positioned for Organic Growth

Market leadership in core markets

Opportunity to expand the franchise

Focused on Shareholder Returns

The

FirstMerit

Opportunity

FirstMerit Overview

•

Headquarters: Akron, Ohio

•

Employees (FTE): 3,028

•

Founded: 1845

•

Assets: $14.3 Billion*

4th largest Ohio bank/ 38th largest U.S. bank

•

Ticker: FMER (NASDAQ)

Source:

SNL

Financial

*Total Assets as of 6/30/11

Chicago Expansion

•

Chicago

–

provides

dense

population

and

positive growth demographics

•

3rd largest MSA in U.S.

•

Favorable competitive dynamics in the small

business and middle market banking areas

•

Senior

FirstMerit

executives

have

extensive

market knowledge

•

Follow-on acquisition opportunities exist in

greater Chicago

Positioning FirstMerit’s Franchise for Long Term Growth

Assets: $415 mm

Deposits: $1.2 bn

Branches: 24

February 2010

Assets: $420 mm

Deposits: $393 mm

Branches: 4

February 2010

Assets: $3.0 bn

Deposits: $2.3 bn

Branches: 26

May 2010

Premium Paid to

Total Deposits

2.2%

8.0%

18.8%

Source:

SNL

Financial.

(1)

Represents

the

net

premium

paid

FirstMerit

for

its

three

Chicago

area

acquisitions.

(2)

Average of 4 branch transactions in the Chicago MSA since 9/30/04.

(3)

Average of 40 bank and thrift transactions in the Chicago MSA since 9/30/04 (excludes jumbo deposits).

Building a Strategic Franchise in Chicago

Attractively priced strategic franchise

FirstMerit –

Chicago Acquisitions

(1)

Chicago Branch Transactions

(2)

Chicago Bank and Thrift Transactions

(3)

Paul Greig,

CEO

Bill Richgels,

CCO

Peter Gillespie,

Regional

President

Chicago market experience

Years

JPMorgan Chase / Bank One / First Chicago NBD

American National Bank

FNW Bancorp

First Midwest Bank

Continental Illinois National Bank

First Bank

JPMorgan Chase / Bank One / First Chicago NBD

American National Bank

NBD

29 years

25 years

21 years

Experienced Leadership Team with Chicago Roots

Charter One Bank

JPMorgan Chase / Bank One / First Chicago NBD

American National Bank

•

Successful conversion completed in early October

Seamless conversion of three franchises in 2010

Conversion of Midwest Bank and Trust follows completion of George Washington Savings

Bank and First Bank branch acquisitions

•

Smooth transition from announcement to conversion

Midwest Bank and Trust opened for business as usual on Saturday

FirstMerit ambassadors in each branch to ensure smooth transition

•

Dedicated team executed integration process

Branch integration

Product and sales management

Credit risk management

Information technology

Successful Integration

Chicago franchise

Chicago MSA franchise demographics *

Source:

SNL Financial. data as of 6/30/10.

Positions FirstMerit’s Franchise for Long Term Growth

•

Branch network conveniently located

across greater Chicago MSA

•

Market provides organic growth

opportunities

Population

9,756,941

Households

3,500,698

Projected

population

2.97%

Median

household

income

$66,618

Projected

household

income

4.83%

growth (’09-’14)

(2009)

Financial Performance

History of Superior Performance…

Financial Performance

2008

FirstMerit

Peers

Net Interest

Margin

3.72%

3.62%

Net

Charge-Offs/

Average Loans

0.68%

0.98%

ROAA

1.13%

0.07%

ROAE

12.76%

1.61%

2009

FirstMerit

Peers

3.58%

3.51%

1.22%

2.00%

0.76%

-0.85%

-0.85%

0.85%

8.09%

-7.13%

-7.13%

7.13%

Relative to Peers

Source:

SNL Financial

Peer

Group

Includes:

Huntington,

Associated,

Fulton

Financial,

TCF

Financial,

Citizens

Banking,

Park

National,

First Commonwealth Financial, Old National, MB Financial and FNB

...Continued in 2010

Financial Performance

2010

FirstMerit

Peers

3.97%

3.70%

1.23%

2.29%

0.76%

0.25%

7.82%

2.51%

Relative to Peers

2009

FirstMerit

Peers

Net Interest

Margin

3.58%

3.51%

Net Charge-Offs/

Average Loans

1.22%

2.00%

ROAA

0.76%

-0.85%

-0.85%

0.85%

ROAE

8.09%

-7.13%

-7.13%

7.13%

Source:

SNL Financial

Peer

Group

Includes:

Huntington,

Associated,

Fulton

Financial,

TCF

Financial,

Citizens

Banking,

Park

National,

First Commonwealth Financial, Old National, MB Financial and FNB

•

Primary Focus of Entire

Management Team and

Organization

•

Aligned Incentives

•

Hired Chief Credit Officer and

Added other Key Personnel

•

Active Internal Focus on Credit

Quality

•

Ongoing Comprehensive Internal

and External Review of Portfolio

•

Implementing Initiatives for

Ongoing Credit Improvement

Actions to Sustain Improved Performance

Credit Quality Initiatives

Net

charge-offs

Lead to Superior Credit Quality

Source:

SNL Financial

Peer

Group

Includes:

Huntington,

Associated,

Fulton

Financial,

TCF

Financial,

Citizens

Banking,

Park

National,

First Commonwealth Financial, Old National, MB Financial and FNB

0.40%

0.43%

0.68%

0.98%

1.22%

2.00%

1.23%

2.29%

0.94%

2.13%

Quarter-end

FMER

6/30/11

Peers’

6/30/11

Net charge-offs/

Average Loans

Allowance for Credit Losses/

Nonperforming Loans

0.89%

158%

1.95%

78%

Loans/Deposits

79%

91%

Balance Sheet Strength

Source:

SNL Financial

Peer

Group

Includes:

Huntington,

Associated,

Fulton

Financial,

TCF

Financial,

Citizens

Banking,

Park

National,

First Commonwealth Financial, Old National, MB Financial and FNB

Margin Historical Performance

•

The margin has remained fairly

constant throughout interest rate

cycle

Margin Stability

3.74%

3.66%

3.71%

3.76%

3.73%

3.74%

3.70%

3.73%

3.80%

3.78%

3.68%

3.58%

3.62%

3.61%

3.66%

3.60%

3.69%

3.78%

3.82%

3.53%

3.56%

3.61%

3.64%

3.72%

4.02%

3.96%

4.14%

4.00%

3.77%

NIM

FedFunds

The FirstMerit Growth Opportunity

FirstMerit Value Proposition

•

Local delivery of relationship banking

Regional structure supports close client relationship

Institutionalization of key relationships with regional CEOs

•

Local decision making

Access to decision makers/senior management

Credit authority appropriate to regions

Enables prompt response on credit decisions

•

Strong sales and service orientation

Motivated and empowered bankers

•

Consultative, agile and efficient approach to banking

Product parity with larger bank competitors

•

Deep community involvement

Local advisory boards

•

Strong Management Experience

(avg. 25 yrs)

•

Diverse Customer Base

•

Strong Customer Service Model

•

Strong Deposit Gathering Abilities

•

$6.3bn Loan Portfolio

•

High ROE Small Business Banking

Unit

•

Middle Market, Business Banking,

CRE, Asset Based Lending, Public

Funds,

Oil

and

Gas,

Card

Services-

Merchant, Capital Markets,

Treasury Management, Skilled

Care, Dealer Services, SBA

Commercial Banking:

Superior Service Model

Service Awards and Ratings

Overview

•

Awarded

“Outstanding”

rating

for

performance under the Community

Reinvestment Act

–

January, 2010

•

Concentrated branch network

207 branches in Ohio,

Western Pa. and Chicago

#1 Market Share in Akron

#2 Market Share in Canton

•

Customer Service Culture

•

Full Suite of Traditional Retail

Banking Products

Profitable Merchant, Debit

and Credit Card

Businesses

Overview

Committed to Superior Customer Service

Consumer Banking:

Broad Services and Customer Satisfaction

•

Awarded highest customer

satisfaction in Ohio by

JD Power & Associates

in 2011

5th consecutive year

•

Providing Strong Results

3 consecutive years of net

DDA household growth

90% retention rate

#1 in Ohio

•

Strong Complement with Owner-

Managed Business

•

High ROE Business

•

Assets under management and

administration: $5.9bn

•

Loans: $261mm

•

Deposits: $637mm

•

Expansive Product Suite

Investment management

Estate and succession planning

Private banking (credit/deposit

services)

Trust services

Financial and tax planning

Insurance services

Brokerage services

Employee benefits (401-k, Pension)

Wealth Management:

Comprehensive Array of Services

•

Cross-Selling Initiatives with

Commercial / Consumer Banking

Strong customer retention tool

Focused on capturing customer

liquidity events

Wealth Penetration

Overview

29.0%

31.7%

37.0%

41.0%

41.1%

2Q08

4Q08

2Q09

4Q10

1Q11

% of commercial customers using wealth management services

Loans, deposits and assets under management at 3/31/11

•

Strong platform

Organizational enhancements

Improved credit

Solid capital position

•

Franchise positioned for organic growth

Market leadership in core markets

Opportunity to expand the franchise

Focused on Shareholder Returns

The FirstMerit Opportunity

FIRSTMERIT CORP /OH/ - FORM 8-K - EX-99.1 - September 12, 2011

Attached files