Attached files
| file | filename |
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| 8-K - 8-K - FIRSTMERIT CORP /OH/ | fmer-8kq12012.htm |
| EX-99.2 - SUPPLEMENTAL INFORMATION PACKAGE - FIRSTMERIT CORP /OH/ | a1q12epsslidedeckapril24.htm |
Exhibit 99.1
FOR IMMEDIATE RELEASE
FirstMerit Corporation
Analysts: Thomas O’Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075
FirstMerit Reports First Quarter 2012 EPS of $0.28 Per Share
Quarterly Highlights include:
• | 52nd consecutive quarter of profitability |
• | Average commercial loan growth of $93.6 million, or 1.85%, from prior quarter |
• | Average core deposit growth of $203.6 million, or 2.13%, from prior quarter |
• | $13.1 million, or 16.18%, decline in nonperforming assets from prior quarter |
• | Net charge-offs to average loans, excluding covered loans, was 0.63%, down from prior quarter level of 0.73% |
• | Strong tangible common equity ratio at 7.86% |
Akron, Ohio (April 24, 2012) - FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2012 net income of $30.3 million, or $0.28 per diluted share. This compares with $30.5 million, or $0.28 per diluted share, for the fourth quarter 2011 and $27.6 million, or $0.25 per diluted share, for the first quarter 2011.
Returns on average common equity (“ROE”) and average assets (“ROA”) for the first quarter 2012 were 7.72% and 0.84%, respectively, compared with 7.70% and 0.83%, respectively, for the fourth quarter 2011 and 7.37% and 0.78% for the first quarter 2011.
“Our first quarter performance reflects continued credit improvements in our already strong asset quality, active loan growth to both businesses and consumers in the markets we serve and sustained increases in core deposits,” said Paul G. Greig, chairman, president and CEO of FirstMerit Corporation. “I am pleased with our solid results in an economic and regulatory environment that continues to challenge. By sticking to sound banking principles, FirstMerit continues to take market share, grow organically and reinforce its reputation as a solid financial resource for our customers and shareholders.”
FirstMerit Corporation Reports First Quarter 2012 EPS Results
Net interest margin was 3.78% for the first quarter of 2012 compared with 3.85% for the fourth quarter of 2011 and 4.01% for the first quarter of 2011. The net interest margin compressed 7 basis points compared with the fourth quarter of 2011 with earning asset yields declining 10 basis points offset by three basis points of improved funding costs. An increase in average noncovered loans and investments along with lower funding costs driven by continued growth of core deposits helped to mitigate downward margin pressure in the first quarter. The decline in net interest margin compared with the first quarter of 2011 is attributed to pressure on earning asset yields throughout the year under an interest rate environment of persistent low rates.
Average loans, not including covered loans, during the first quarter of 2012 increased $107.5 million, or 1.40%, compared with the fourth quarter of 2011 and increased $579.9 million, or 8.05%, compared with the first quarter of 2011. Average commercial loans increased $93.6 million, or 1.85%, compared with the prior quarter, and increased $589.3 million, or 12.94%, compared with the year ago quarter. Commercial loans remain the primary driver in average loan portfolio growth, however, average consumer loans increased moderately for the third consecutive quarter.
Average deposits were $11.5 billion during the first quarter of 2012, an increase of $55.5 million, or 0.49%, compared with the fourth quarter of 2011, and an increase of $152.2 million, or 1.34%, compared with the first quarter of 2011. During the first quarter 2012, average core deposits, which exclude time deposits, increased $203.6 million, or 2.13%, compared with the fourth quarter 2011 and increased $1.1 billion, or 12.45%, compared with the first quarter 2011. During the first quarter of 2012, growth in checking, money market and savings account products continued with less emphasis on renewing maturing certificate of deposit accounts. This strategy to increase the concentration of lower cost deposits within the overall deposit mix was initiated to efficiently fund balance sheet growth and to deepen and extend the length of customer relationships. Average time deposits decreased $148.1 million, or 8.04%, and decreased $930.4 million, or 35.45%, respectively, over prior and year-ago quarters.
Average investments increased $210.3 million, or 6.04%, compared with the fourth quarter of 2011 and increased $271.1 million, or 7.93% compared with the first quarter of 2011. The increase over both time periods reflects the Corporation's continued execution of its previously announced portfolio repositioning.
Net interest income on a fully tax-equivalent (“FTE”) basis was $121.4 million in the first quarter 2012 compared with $123.6 million in the fourth quarter of 2011 and $124.2 million in the first quarter of 2011.
Noninterest income excluding securities transactions for the first quarter of 2012 was $51.5 million, a decrease of $2.5 million, or 4.60%, from the fourth quarter of 2011 and a decrease of $1.3 million, or 2.45%, from the first quarter of 2011. Loans sales and servicing income increased $1.6 million from the fourth quarter of 2011 and $3.9 million from the first quarter of 2011. Other operating income in the first quarter of 2012 decreased $3.0 million, compared with the prior quarter, which included $2.7 million of insurance reimbursement of legal costs incurred and previously expensed. Other operating income in the first quarter of 2012 decreased $1.3 million compared with the prior year quarter, which included $2.9 million in gains on covered loans paid in full.
Other income, net of $0.3 million in securities gains, as a percentage of net revenue for the first quarter of 2012 was 29.77% compared with 30.38% for fourth quarter of 2011 and 29.81% for the first quarter of 2011. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.
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FirstMerit Corporation Reports First Quarter 2012 EPS Results
Noninterest expense for the first quarter of 2012 was $113.8 million, a decrease of $10.1 million, or 8.16%, from the fourth quarter of 2011 and a decrease of $0.7 million, or 0.59%, from the first quarter of 2011. Included in other operating expense in the fourth quarter of 2011 was $4.9 million of fees related to the early termination of repurchase agreements and FHLB advances as part of the Corporation's investment portfolio repositioning strategy and $1.3 million of expense related to an increase in the liability associated with the sale of the Corporation's Visa® Class B shares in 2008.
During the first quarter of 2012, the Corporation reported an efficiency ratio of 65.52%, compared with 69.46% for the fourth quarter of 2011 and 64.37% for the first quarter of 2011. The Corporation will provide an update on its initiative to improve its overall efficiency during today's earnings conference call.
Net charge-offs, excluding covered loans, totaled $12.0 million, or 0.63% of average loans, excluding acquired loans, in the first quarter of 2012, compared with $13.8 million, or 0.73% of average loans, in the fourth quarter 2011 and $17.0 million, or 0.99% of average loans, in the first quarter of 2011.
Nonperforming assets totaled $68.0 million at March 31, 2012, a decrease of $13.1 million, or 16.18%, compared with December 31, 2011 and a decrease of $44.8 million, or 39.72%, compared with March 31, 2011. Nonperforming assets at March 31, 2012 represented 0.87% of period-end loans plus other real estate compared with 1.06% at December 31, 2011 and 1.61% at March 31, 2011.
The allowance for noncovered loan losses totaled $103.8 million at March 31, 2012. At March 31, 2012, the allowance for noncovered loan losses was 1.34% of period-end loans compared with 1.41% at December 31, 2011 and 1.64% at March 31, 2011. The allowance for credit losses is the sum of the allowance for noncovered loan losses and the reserve for unfunded lending commitments. For comparative purposes the allowance for credit losses was 1.41% of period end loans, excluding acquired loans, at March 31, 2012, compared with 1.49% at December 31, 2011 and 1.74% at March 31, 2011. The allowance for credit losses to nonperforming loans was 204.98% at March 31, 2012, compared with 176.50% at December 31, 2011 and 147.38% at March 31, 2011.
The Corporation's total assets at March 31, 2012 were $14.7 billion, an increase of $229.1 million, or 1.59%, compared with December 31, 2011 and an increase of $204.3 million, or 1.41%, compared with March 31, 2011.
Total deposits were $11.6 billion at March 31, 2012, an increase of $216.6 million, or 1.89%, from December 31, 2011 and an increase of $252.2 million, or 2.21%, from March 31, 2011. Core deposits totaled $10.0 billion at March 31, 2012, an increase of $309.7 million, or 3.20% from December 31, 2011 and an increase of $1.1 billion, or 11.97%, from March 31, 2011.
Shareholders' equity was $1.6 billion at March 31, 2012, compared with $1.6 billion at December 31, 2011, and $1.5 billion at March 31, 2011. The Corporation maintained a strong capital position as tangible common equity to assets was 7.86% at March 31, 2012, compared with 7.86% at December 31, 2011 and 7.50% at March 31, 2011. The common cash dividend per share paid in the first quarter 2012 was $0.16.
First Quarter 2012 Conference Call
FirstMerit (Nasdaq: FMER) senior management will host an earnings conference call today at 11:00 a.m. (Eastern Time) to provide an overview of first quarter results and highlights. To participate in
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FirstMerit Corporation Reports First Quarter 2012 EPS Results
the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 70615753. A replay of the conference call will be available at approximately 2:00 p.m. (Eastern Time) on April 24, 2012 through May 7, 2012 by dialing (855) 859-2056, and entering the PIN: 70615753. The Corporation will provide a slide presentation, which management will speak to during the conference call. A copy of the presentation will be available prior to the earnings conference call at https://www.firstmerit.com/personal/investors.aspx; click on the Presentations link to access the slide presentation.
About FirstMerit Corporation
FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of $14.7 billion as of March 31, 2012 and 205 banking offices and 213 ATMs in Ohio, Western Pennsylvania, and Chicago, Illinois areas. 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.
Subsequent Events
The Corporation is required under generally accepted accounting principles to evaluate subsequent events through the filing of the its consolidated financial statements for the year ended March 31, 2012 on Form 10-Q. As a result, the Corporation will continue to evaluate the impact of any subsequent events on critical accounting assumptions and estimates made as of March 31, 2012 and will adjust amounts preliminarily reported, if necessary.
Forward-Looking Statements
This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Corporation, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, continued softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Corporation's business, competitive pressures, changes in accounting, tax or regulatory practices or requirements and those risk factors detailed in the Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.
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FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||||
Consolidated Financial Highlights | ||||||||||||||||
(Unaudited) | Quarters | |||||||||||||||
(Dollars in thousands) | 2012 | 2011 | 2011 | 2011 | 2011 | |||||||||||
1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||||
EARNINGS | ||||||||||||||||
Net interest income FTE (a) | $ | 121,428 | $ | 123,598 | $ | 121,788 | $ | 119,735 | $ | 124,191 | ||||||
Provision for noncovered loan losses | 8,129 | 12,275 | 14,604 | 10,138 | 17,018 | |||||||||||
Provision for covered loan losses | 5,932 | 2,773 | 4,768 | 7,481 | 5,331 | |||||||||||
Other income | 51,726 | 59,737 | 60,772 | 51,491 | 52,756 | |||||||||||
Other expenses | 113,768 | 123,874 | 115,957 | 110,068 | 114,445 | |||||||||||
FTE adjustment (a) | 2,641 | 2,632 | 2,396 | 2,292 | 2,367 | |||||||||||
Net income | 30,344 | 30,496 | 31,737 | 29,763 | 27,560 | |||||||||||
Diluted EPS | 0.28 | 0.28 | 0.29 | 0.27 | 0.25 | |||||||||||
PERFORMANCE RATIOS | ||||||||||||||||
Return on average assets (ROA) | 0.84 | % | 0.83 | % | 0.86 | % | 0.82 | % | 0.78 | % | ||||||
Return on average common equity (ROE) | 7.72 | % | 7.70 | % | 8.02 | % | 7.78 | % | 7.37 | % | ||||||
Net interest margin FTE (a) | 3.78 | % | 3.85 | % | 3.75 | % | 3.77 | % | 4.01 | % | ||||||
Efficiency ratio | 65.52 | % | 69.46 | % | 64.78 | % | 64.30 | % | 64.37 | % | ||||||
Number of full-time equivalent employees | 2,997 | 3,018 | 3,016 | 3,028 | 3,056 | |||||||||||
MARKET DATA | ||||||||||||||||
Book value/common share | $ | 14.51 | $ | 14.33 | $ | 14.38 | $ | 14.19 | $ | 13.98 | ||||||
Period-end common share mkt value | 16.86 | 15.13 | 11.36 | 16.51 | 17.07 | |||||||||||
Market as a % of book | 116 | % | 106 | % | 79 | % | 116 | % | 122 | % | ||||||
Cash dividends/common share | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | $ | 0.16 | ||||||
Common stock dividend payout ratio | 57.14 | % | 57.14 | % | 55.17 | % | 59.26 | % | 64.00 | % | ||||||
Average basic common shares | 109,211 | 109,249 | 109,245 | 109,138 | 108,769 | |||||||||||
Average diluted common shares | 109,211 | 109,249 | 109,246 | 109,139 | 108,770 | |||||||||||
Period end common shares | 109,187 | 109,251 | 109,247 | 109,241 | 108,734 | |||||||||||
Common shares repurchased | 69 | 7 | 10 | 45 | 91 | |||||||||||
Common stock market capitalization | $ | 1,840,893 | $ | 1,652,968 | $ | 1,241,046 | $ | 1,803,569 | $ | 1,856,089 | ||||||
ASSET QUALITY (excluding acquired loans) | ||||||||||||||||
Gross charge-offs | $ | 17,417 | $ | 18,984 | $ | 20,014 | $ | 20,958 | $ | 22,812 | ||||||
Net charge-offs | 11,979 | 13,763 | 14,604 | 15,641 | 17,018 | |||||||||||
Allowance for noncovered loan losses | 103,849 | 107,699 | 109,187 | 109,187 | 114,690 | |||||||||||
Reserve for unfunded lending commitments | 5,410 | 6,373 | 6,360 | 5,799 | 7,202 | |||||||||||
Nonperforming assets (NPAs) (b) | 67,971 | 81,094 | 90,375 | 99,846 | 112,759 | |||||||||||
Net charge-offs/average loans ratio (b) | 0.63 | % | 0.73 | % | 0.79 | % | 0.89 | % | 0.99 | % | ||||||
Allowance for noncovered loan losses/period-end loans (b) | 1.34 | % | 1.41 | % | 1.46 | % | 1.51 | % | 1.64 | % | ||||||
Allowance for credit losses/period-end loans (b) | 1.41 | % | 1.49 | % | 1.55 | % | 1.59 | % | 1.74 | % | ||||||
NPAs/loans and other real estate (b) | 0.87 | % | 1.06 | % | 1.21 | % | 1.38 | % | 1.61 | % | ||||||
Allowance for noncovered loan losses/nonperforming loans | 194.83 | % | 166.64 | % | 160.09 | % | 150.31 | % | 138.67 | % | ||||||
Allowance for credit losses/nonperforming loans | 204.98 | % | 176.50 | % | 169.42 | % | 158.30 | % | 147.38 | % | ||||||
CAPITAL & LIQUIDITY | ||||||||||||||||
Period-end tangible common equity to assets | 7.86 | % | 7.86 | % | 7.75 | % | 7.79 | % | 7.50 | % | ||||||
Average equity to assets | 10.91 | % | 10.75 | % | 10.75 | % | 10.59 | % | 10.62 | % | ||||||
Average equity to total loans (c) | 17.50 | % | 17.40 | % | 17.55 | % | 17.36 | % | 17.14 | % | ||||||
Average total loans to deposits (c) | 78.74 | % | 79.12 | % | 78.18 | % | 77.05 | % | 78.14 | % | ||||||
AVERAGE BALANCES | ||||||||||||||||
Assets | $ | 14,496,937 | $ | 14,623,441 | $ | 14,610,628 | $ | 14,481,208 | $ | 14,270,871 | ||||||
Deposits | 11,472,021 | 11,416,546 | 11,447,682 | 11,464,738 | 11,319,809 | |||||||||||
Loans, excluding acquired loans (c) | 7,677,963 | 7,520,400 | 7,298,446 | 7,080,109 | 6,963,389 | |||||||||||
Acquired loans, including covered loans (c) | 1,355,086 | 1,512,123 | 1,651,559 | 1,753,943 | 1,881,540 | |||||||||||
Earning assets | 12,935,184 | 12,747,868 | 12,878,105 | 12,724,269 | 12,560,913 | |||||||||||
Shareholders' equity | 1,581,009 | 1,572,061 | 1,570,411 | 1,533,855 | 1,516,227 | |||||||||||
ENDING BALANCES | ||||||||||||||||
Assets | $ | 14,670,818 | $ | 14,441,702 | $ | 14,688,278 | $ | 14,347,557 | $ | 14,466,509 | ||||||
Deposits | 11,648,165 | 11,431,609 | 11,396,121 | 11,340,939 | 11,395,946 | |||||||||||
Loans, excluding acquired loans (c) | 7,764,058 | 7,635,776 | 7,453,613 | 7,216,015 | 6,989,973 | |||||||||||
Acquired loans, including covered loans (c) | 1,306,165 | 1,404,644 | 1,604,706 | 1,707,887 | 1,800,525 | |||||||||||
Goodwill | 460,044 | 460,044 | 460,044 | 460,044 | 460,044 | |||||||||||
Intangible assets | 7,757 | 8,239 | 8,782 | 9,325 | 9,868 | |||||||||||
Earning assets | 13,318,202 | 13,011,267 | 12,885,242 | 12,958,324 | 13,129,667 | |||||||||||
Total shareholders' equity | 1,584,105 | 1,565,953 | 1,570,654 | 1,550,387 | 1,519,957 | |||||||||||
NOTES: | ||||||||||||||||
(a) - Net interest income on a fully tax-equivalent ("FTE") basis restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate. Net interest income on an FTE basis is not an accounting principle generally accepted in the United States of America. | ||||||||||||||||
(b) - Acquired loans and other real estate from First Bank, George Washington Savings Bank and Midwest Bank & Trust Company are excluded from the ratio of our allowance for loan and credit losses and NPAs.
(c) - Excludes loss share receivable of $171.1 million, $205.7 million, $220.5 million, $239.4 million and $266.0 million as of March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011, respectively.
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FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||
Consolidated Balance Sheets | ||||||||||||||
(Dollars in thousands) | March 31, | December 31, | March 31, | |||||||||||
(Unaudited, except December 31, 2011, which is derived from the audited financial statements) | 2012 | 2011 | 2011 | |||||||||||
ASSETS | ||||||||||||||
Cash and due from banks | $ | 188,789 | $ | 219,256 | $ | 168,528 | ||||||||
Interest-bearing deposits in banks | 301,196 | 158,063 | 470,253 | |||||||||||
Total cash and cash equivalents | 489,985 | 377,319 | 638,781 | |||||||||||
Investment securities | ||||||||||||||
Held-to-maturity | 100,840 | 82,764 | 65,923 | |||||||||||
Available-for-sale | 3,491,647 | 3,353,553 | 3,362,751 | |||||||||||
Other investments | 140,713 | 140,726 | 160,818 | |||||||||||
Loans held for sale | 42,447 | 30,077 | 13,443 | |||||||||||
Noncovered loans: | ||||||||||||||
Commercial | 5,220,051 | 5,107,747 | 4,565,376 | |||||||||||
Residential mortgage | 428,950 | 413,664 | 399,380 | |||||||||||
Installment | 1,259,930 | 1,263,665 | 1,282,170 | |||||||||||
Home equity | 739,548 | 743,982 | 736,947 | |||||||||||
Credit cards | 140,618 | 146,356 | 141,864 | |||||||||||
Leases | 74,112 | 73,530 | 60,487 | |||||||||||
Total noncovered loans | 7,863,209 | 7,748,944 | 7,186,224 | |||||||||||
Allowance for noncovered loan losses | (103,849 | ) | (107,699 | ) | (114,690 | ) | ||||||||
Net noncovered loans | 7,759,360 | 7,641,245 | 7,071,534 | |||||||||||
Covered loans (includes loss share receivable of $171.1 million, $205.7 million and $266.0 million at March 31, 2012, December 31, 2011 and March 31, 2011, respectively) | 1,378,150 | 1,497,140 | 1,870,255 | |||||||||||
Allowance for covered loan losses | (41,070 | ) | (36,417 | ) | (28,405 | ) | ||||||||
Net covered loans | 1,337,080 | 1,460,723 | 1,841,850 | |||||||||||
Net loans | 9,096,440 | 9,101,968 | 8,913,384 | |||||||||||
Premises and equipment, net | 188,347 | 192,949 | 192,630 | |||||||||||
Goodwill | 460,044 | 460,044 | 460,044 | |||||||||||
Intangible assets | 7,757 | 8,239 | 9,868 | |||||||||||
Covered other real estate (includes loss share receivable of $0.7 million, $1.3 million and $7.9 million at March 31, 2012, December 31, 2011 and March 31, 2011, respectively) | 56,411 | 54,505 | 58,688 | |||||||||||
Accrued interest receivable and other assets | 596,187 | 639,558 | 590,179 | |||||||||||
Total assets | $ | 14,670,818 | $ | 14,441,702 | $ | 14,466,509 | ||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | ||||||||||||||
Deposits: | ||||||||||||||
Noninterest-bearing | $ | 3,136,595 | $ | 3,030,225 | $ | 2,925,088 | ||||||||
Interest-bearing | 1,119,102 | 1,062,896 | 815,593 | |||||||||||
Savings and money market accounts | 5,742,547 | 5,595,409 | 5,188,815 | |||||||||||
Certificates and other time deposits | 1,649,921 | 1,743,079 | 2,466,450 | |||||||||||
Total deposits | 11,648,165 | 11,431,609 | 11,395,946 | |||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 928,760 | 866,265 | 952,995 | |||||||||||
Wholesale borrowings | 176,611 | 203,462 | 325,046 | |||||||||||
Accrued taxes, expenses, and other liabilities | 333,177 | 374,413 | 272,565 | |||||||||||
Total liabilities | 13,086,713 | 12,875,749 | 12,946,552 | |||||||||||
Shareholders' equity: | ||||||||||||||
Preferred stock, without par value: authorized and unissued 7,000,000 shares | — | — | — | |||||||||||
Preferred stock, Series A, without par value: designated 800,000 shares; none outstanding | — | — | — | |||||||||||
Convertible preferred stock, Series B, without par value: designated 220,000 shares; none outstanding | — | — | — | |||||||||||
Common stock, without par value; authorized 300,000,000 shares; issued: March 31, 2012, December 31, 2011 and March 31, 2011 - 115,121,731 shares | 127,937 | 127,937 | 127,937 | |||||||||||
Capital surplus | 484,491 | 479,882 | 488,770 | |||||||||||
Accumulated other comprehensive loss | (22,172 | ) | (23,887 | ) | (25,765 | ) | ||||||||
Retained earnings | 1,144,210 | 1,131,203 | 1,091,160 | |||||||||||
Treasury stock, at cost: March 31, 2012 -5,935,169 shares; December 31, 2011 - 5,870,923 shares; March 31, 2011 - 6,387,924 shares | (150,361 | ) | (149,182 | ) | (162,145 | ) | ||||||||
Total shareholders' equity | 1,584,105 | 1,565,953 | 1,519,957 | |||||||||||
Total liabilities and shareholders' equity | $ | 14,670,818 | $ | 14,441,702 | $ | 14,466,509 | ||||||||
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FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||
Average Consolidated Balance Sheets | |||||||||||||||
Quarterly Periods | |||||||||||||||
(Unaudited) | March 31, | December 31, | September 30, | June 30, | March 31, | ||||||||||
(Dollars in thousands) | 2012 | 2011 | 2011 | 2011 | 2011 | ||||||||||
ASSETS | |||||||||||||||
Cash and due from banks | $ | 378,736 | $ | 621,899 | $ | 517,150 | $ | 588,487 | $ | 520,602 | |||||
Investment securities: | |||||||||||||||
Held-to-maturity | 90,664 | 89,166 | 85,664 | 79,012 | 64,212 | ||||||||||
Available-for-sale | 3,459,439 | 3,231,195 | 3,429,631 | 3,382,943 | 3,194,751 | ||||||||||
Other investments | 140,719 | 160,147 | 160,799 | 160,811 | 160,752 | ||||||||||
Loans held for sale | 26,483 | 24,215 | 24,524 | 18,512 | 22,574 | ||||||||||
Noncovered loans: | |||||||||||||||
Commercial | 5,143,087 | 5,049,479 | 4,876,034 | 4,665,550 | 4,553,777 | ||||||||||
Residential mortgage | 421,648 | 405,329 | 399,228 | 398,702 | 403,758 | ||||||||||
Installment | 1,261,122 | 1,267,952 | 1,264,868 | 1,270,589 | 1,294,156 | ||||||||||
Home equity | 738,154 | 744,326 | 741,497 | 736,117 | 741,596 | ||||||||||
Credit card | 143,794 | 145,560 | 144,796 | 143,528 | 146,526 | ||||||||||
Leases | 73,644 | 61,267 | 56,909 | 58,607 | 61,768 | ||||||||||
Total noncovered loans | 7,781,449 | 7,673,913 | 7,483,332 | 7,273,093 | 7,201,581 | ||||||||||
Covered loans and loss share receivable | 1,436,430 | 1,569,232 | 1,694,155 | 1,809,898 | 1,917,043 | ||||||||||
Total loans | 9,217,879 | 9,243,145 | 9,177,487 | 9,082,991 | 9,118,624 | ||||||||||
Less: allowance for loan losses | 142,628 | 141,360 | 138,441 | 143,721 | 134,064 | ||||||||||
Net loans | 9,075,251 | 9,101,785 | 9,039,046 | 8,939,270 | 8,984,560 | ||||||||||
Total earning assets | 12,935,184 | 12,747,868 | 12,878,105 | 12,724,269 | 12,560,913 | ||||||||||
Premises and equipment, net | 190,669 | 193,219 | 192,218 | 192,584 | 195,296 | ||||||||||
Accrued interest receivable and other assets | 1,134,976 | 1,201,815 | 1,161,596 | 1,119,589 | 1,128,124 | ||||||||||
TOTAL ASSETS | $ | 14,496,937 | $ | 14,623,441 | $ | 14,610,628 | $ | 14,481,208 | $ | 14,270,871 | |||||
LIABILITIES | |||||||||||||||
Deposits: | |||||||||||||||
Noninterest-bearing | $ | 3,036,590 | $ | 3,013,543 | $ | 2,988,521 | $ | 2,998,090 | $ | 2,874,884 | |||||
Interest-bearing | 1,066,132 | 991,456 | 913,252 | 824,125 | 841,545 | ||||||||||
Savings and money market accounts | 5,675,052 | 5,569,213 | 5,446,351 | 5,279,353 | 4,978,773 | ||||||||||
Certificates and other time deposits | 1,694,247 | 1,842,334 | 2,099,558 | 2,363,170 | 2,624,607 | ||||||||||
Total deposits | 11,472,021 | 11,416,546 | 11,447,682 | 11,464,738 | 11,319,809 | ||||||||||
Federal funds purchased and securities sold under agreements to repurchase | 887,715 | 999,639 | 969,020 | 884,244 | 848,169 | ||||||||||
Wholesale borrowings | 184,659 | 225,116 | 320,691 | 325,057 | 325,296 | ||||||||||
Total funds | 12,544,395 | 12,641,301 | 12,737,393 | 12,674,039 | 12,493,274 | ||||||||||
Accrued taxes, expenses and other liabilities | 371,533 | 410,079 | 302,824 | 273,314 | 261,370 | ||||||||||
Total liabilities | 12,915,928 | 13,051,380 | 13,040,217 | 12,947,353 | 12,754,644 | ||||||||||
SHAREHOLDERS' EQUITY | |||||||||||||||
Common stock | 127,937 | 127,937 | 127,937 | 127,937 | 127,937 | ||||||||||
Capital surplus | 481,856 | 479,257 | 477,864 | 479,078 | 486,907 | ||||||||||
Accumulated other comprehensive loss | (19,862 | ) | (15,198 | ) | (2,211 | ) | (16,402 | ) | (26,703 | ) | |||||
Retained earnings | 1,140,953 | 1,129,392 | 1,116,207 | 1,095,270 | 1,089,554 | ||||||||||
Treasury stock | (149,875 | ) | (149,327 | ) | (149,386 | ) | (152,028 | ) | (161,468 | ) | |||||
Total shareholders' equity | 1,581,009 | 1,572,061 | 1,570,411 | 1,533,855 | 1,516,227 | ||||||||||
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY | $ | 14,496,937 | $ | 14,623,441 | $ | 14,610,628 | $ | 14,481,208 | $ | 14,270,871 | |||||
7
FirstMerit Corporation Reports First Quarter 2012 EPS Results
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, 2012 | December 31, 2011 | March 31, 2011 | |||||||||||||||||||||||||||
(Unaudited) | Average | Average | Average | Average | Average | Average | |||||||||||||||||||||||
(Dollars in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||
ASSETS | |||||||||||||||||||||||||||||
Cash and due from banks | 378,736 | $ | 621,899 | $ | 520,602 | ||||||||||||||||||||||||
Investment securities and federal funds sold: | |||||||||||||||||||||||||||||
U.S. Treasury securities and U.S. Government agency obligations (taxable) | 2,882,045 | 19,679 | 2.75 | % | 2,761,042 | 19,028 | 2.73 | % | 2,783,053 | 19,368 | 2.82 | % | |||||||||||||||||
Obligations of states and political subdivisions (tax exempt) | 436,804 | 5,864 | 5.40 | % | 403,405 | 5,568 | 5.48 | % | 357,511 | 5,281 | 5.99 | % | |||||||||||||||||
Other securities and federal funds sold | 371,973 | 2,739 | 2.96 | % | 316,061 | 2,406 | 3.02 | % | 279,151 | 2,117 | 3.08 | % | |||||||||||||||||
Total investment securities and federal funds sold | 3,690,822 | 28,282 | 3.08 | % | 3,480,508 | 27,002 | 3.08 | % | 3,419,715 | 26,766 | 3.17 | % | |||||||||||||||||
Loans held for sale | 26,483 | 283 | 4.30 | % | 24,215 | 266 | 4.36 | % | 22,574 | 274 | 4.92 | % | |||||||||||||||||
Loans, including loss share receivable | 9,217,879 | 103,156 | 4.50 | % | 9,243,145 | 107,612 | 4.62 | % | 9,118,624 | 114,562 | 5.10 | % | |||||||||||||||||
Total earning assets | 12,935,184 | 131,721 | 4.10 | % | 12,747,868 | 134,880 | 4.20 | % | 12,560,913 | 141,602 | 4.57 | % | |||||||||||||||||
Allowance for loan losses | (142,628 | ) | (141,360 | ) | (134,064 | ) | |||||||||||||||||||||||
Other assets | 1,325,645 | 1,395,034 | 1,323,420 | ||||||||||||||||||||||||||
Total assets | $ | 14,496,937 | $ | 14,623,441 | $ | 14,270,871 | |||||||||||||||||||||||
LIABILITIES AND SHAREHOLDERS' EQUITY | |||||||||||||||||||||||||||||
Deposits: | |||||||||||||||||||||||||||||
Noninterest-bearing | $ | 3,036,590 | — | — | % | $ | 3,013,543 | — | — | % | $ | 2,874,884 | — | — | % | ||||||||||||||
Interest-bearing | 1,066,132 | 247 | 0.09 | % | 991,456 | 237 | 0.09 | % | 841,545 | 184 | 0.09 | % | |||||||||||||||||
Savings and money market accounts | 5,675,052 | 5,103 | 0.36 | % | 5,569,213 | 5,998 | 0.43 | % | 4,978,773 | 7,845 | 0.64 | % | |||||||||||||||||
Certificates and other time deposits | 1,694,247 | 3,524 | 0.84 | % | 1,842,334 | 3,201 | 0.69 | % | 2,624,607 | 6,827 | 1.05 | % | |||||||||||||||||
Total deposits | 11,472,021 | 8,874 | 0.31 | % | 11,416,546 | 9,436 | 0.33 | % | 11,319,809 | 14,856 | 0.53 | % | |||||||||||||||||
Securities sold under agreements to repurchase | 887,715 | 268 | 0.12 | % | 999,639 | 512 | 0.20 | % | 848,169 | 915 | 0.44 | % | |||||||||||||||||
Wholesale borrowings | 184,659 | 1,151 | 2.51 | % | 225,116 | 1,334 | 2.35 | % | 325,296 | 1,640 | 2.04 | % | |||||||||||||||||
Total interest bearing liabilities | 9,507,805 | 10,293 | 0.44 | % | 9,627,758 | 11,282 | 0.46 | % | 9,618,390 | 17,411 | 0.73 | % | |||||||||||||||||
Other liabilities | 371,533 | 410,079 | 261,370 | ||||||||||||||||||||||||||
Shareholders' equity | 1,581,009 | 1,572,061 | 1,516,227 | ||||||||||||||||||||||||||
Total liabilities and shareholders' equity | $ | 14,496,937 | $ | 14,623,441 | $ | 14,270,871 | |||||||||||||||||||||||
Net yield on earning assets | $ | 12,935,184 | 121,428 | 3.78 | % | $ | 12,747,868 | 123,598 | 3.85 | % | $ | 12,560,913 | 124,191 | 4.01 | % | ||||||||||||||
Interest rate spread | 3.66 | % | 3.73 | % | 3.84 | % | |||||||||||||||||||||||
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. | |||||||||||||||||||||||||||||
8
FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||
Consolidated Statements of Comprehensive Income | ||||||||||
(Unaudited) | Quarters ended | |||||||||
(Dollars in thousands except per share data) | March 31, | |||||||||
2012 | 2011 | |||||||||
Interest income: | ||||||||||
Loans and loans held for sale | $ | 103,082 | $ | 114,555 | ||||||
Investment securities | ||||||||||
Taxable | 22,418 | 21,485 | ||||||||
Tax-exempt | 3,580 | 3,195 | ||||||||
Total investment securities interest | 25,998 | 24,680 | ||||||||
Total interest income | 129,080 | 139,235 | ||||||||
Interest expense: | ||||||||||
Deposits: | ||||||||||
Interest-bearing | 247 | 184 | ||||||||
Savings and money market accounts | 5,103 | 7,845 | ||||||||
Certificates and other time deposits | 3,524 | 6,827 | ||||||||
Securities sold under agreements to repurchase | 268 | 915 | ||||||||
Wholesale borrowings | 1,151 | 1,640 | ||||||||
Total interest expense | 10,293 | 17,411 | ||||||||
Net interest income | 118,787 | 121,824 | ||||||||
Provision for noncovered loan losses | 8,129 | 17,018 | ||||||||
Provision for covered loan losses | 5,932 | 5,331 | ||||||||
Net interest income after provision for loan losses | 104,726 | 99,475 | ||||||||
Other income: | ||||||||||
Trust department income | 5,627 | 5,514 | ||||||||
Service charges on deposits | 14,409 | 14,910 | ||||||||
Credit card fees | 10,180 | 12,207 | ||||||||
ATM and other service fees | 3,790 | 2,917 | ||||||||
Bank owned life insurance income | 3,056 | 5,241 | ||||||||
Investment services and insurance | 2,247 | 2,447 | ||||||||
Investment securities gains, net | 260 | — | ||||||||
Loan sales and servicing income | 6,691 | 2,785 | ||||||||
Other operating income | 5,466 | 6,735 | ||||||||
Total other income | 51,726 | 52,756 | ||||||||
Other expenses: | ||||||||||
Salaries, wages, pension and employee benefits | 63,973 | 59,871 | ||||||||
Net occupancy expense | 8,592 | 8,594 | ||||||||
Equipment expense | 7,104 | 6,836 | ||||||||
Stationery, supplies and postage | 2,143 | 2,705 | ||||||||
Bankcard, loan processing and other costs | 7,653 | 7,562 | ||||||||
Professional services | 3,352 | 5,793 | ||||||||
Amortization of intangibles | 483 | 543 | ||||||||
FDIC insurance expense | 3,720 | 4,366 | ||||||||
Other operating expense | 16,748 | 18,175 | ||||||||
Total other expenses | 113,768 | 114,445 | ||||||||
Income before income tax expense | 42,684 | 37,786 | ||||||||
Income tax expense | 12,340 | 10,226 | ||||||||
Net income | $ | 30,344 | $ | 27,560 | ||||||
Other comprehensive income, net of taxes | ||||||||||
Changes in unrealized securities' holding gains and losses | $ | 1,884 | $ | 338 | ||||||
Reclassification for realized securities' gains | (169 | ) | — | |||||||
Total other comprehensive gain, net of taxes | 1,715 | 338 | ||||||||
Comprehensive income | $ | 32,059 | $ | 27,898 | ||||||
Net income applicable to common shares | $ | 30,344 | $ | 27,560 | ||||||
Net income used in diluted EPS calculation | $ | 30,344 | $ | 27,560 | ||||||
Weighted average number of common shares outstanding - basic | 109,211 | 108,769 | ||||||||
Weighted average number of common shares outstanding - diluted | 109,211 | 108,770 | ||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.25 | ||||||
Diluted earnings per common share | $ | 0.28 | $ | 0.25 | ||||||
Dividend per common share | $ | 0.16 | $ | 0.16 | ||||||
9
FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||
Consolidated Statements of Comprehensive Income---linked quarters | |||||||||||||||
Quarterly Results | |||||||||||||||
(Unaudited) | 2012 | 2011 | 2011 | 2011 | 2011 | ||||||||||
(Dollars in thousands, except share data) | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | ||||||||||
Loans and loans held for sale | $ | 103,082 | $ | 107,516 | $ | 108,417 | $ | 107,904 | $ | 114,555 | |||||
Investment securities | 25,998 | 24,732 | 25,138 | 25,313 | 24,680 | ||||||||||
Total interest income | 129,080 | 132,248 | 133,555 | 133,217 | 139,235 | ||||||||||
Interest on deposits: | |||||||||||||||
Interest-bearing | 247 | 237 | 218 | 177 | 184 | ||||||||||
Savings and money market accounts | 5,103 | 5,998 | 6,929 | 7,398 | 7,845 | ||||||||||
Certificates and other time deposits | 3,524 | 3,201 | 4,370 | 5,606 | 6,827 | ||||||||||
Securities sold under agreements to repurchase | 268 | 512 | 977 | 940 | 915 | ||||||||||
Wholesale borrowings | 1,151 | 1,334 | 1,669 | 1,653 | 1,640 | ||||||||||
Total interest expense | 10,293 | 11,282 | 14,163 | 15,774 | 17,411 | ||||||||||
Net interest income | 118,787 | 120,966 | 119,392 | 117,443 | 121,824 | ||||||||||
Provision for noncovered loan losses | 8,129 | 12,275 | 14,604 | 10,138 | 17,018 | ||||||||||
Provision for covered loan losses | 5,932 | 2,773 | 4,768 | 7,481 | 5,331 | ||||||||||
Net interest income after provision for loan losses | 104,726 | 105,918 | 100,020 | 99,824 | 99,475 | ||||||||||
Other income: | |||||||||||||||
Trust department income | 5,627 | 5,413 | 5,607 | 5,863 | 5,514 | ||||||||||
Service charges on deposits | 14,409 | 15,622 | 17,838 | 15,712 | 14,910 | ||||||||||
Credit card fees | 10,180 | 10,182 | 13,640 | 13,510 | 12,207 | ||||||||||
ATM and other service fees | 3,790 | 3,920 | 3,801 | 3,063 | 2,917 | ||||||||||
Bank owned life insurance income | 3,056 | 3,381 | 3,182 | 3,015 | 5,241 | ||||||||||
Investment services and insurance | 2,247 | 1,844 | 1,965 | 1,972 | 2,447 | ||||||||||
Investment securities gains, net | 260 | 5,790 | 4,402 | 889 | — | ||||||||||
Loan sales and servicing income | 6,691 | 5,102 | 3,426 | 2,891 | 2,785 | ||||||||||
Other operating income | 5,466 | 8,483 | 6,911 | 4,576 | 6,735 | ||||||||||
Total other income | 51,726 | 59,737 | 60,772 | 51,491 | 52,756 | ||||||||||
Other expenses: | |||||||||||||||
Salaries, wages, pension and employee benefits | 63,973 | 62,546 | 61,232 | 56,713 | 59,871 | ||||||||||
Net occupancy expense | 8,592 | 7,270 | 8,464 | 8,086 | 8,594 | ||||||||||
Equipment expense | 7,104 | 7,234 | 7,073 | 6,816 | 6,836 | ||||||||||
Stationery, supplies and postage | 2,143 | 2,719 | 2,517 | 2,750 | 2,705 | ||||||||||
Bankcard, loan processing and other costs | 7,653 | 7,948 | 8,449 | 8,266 | 7,562 | ||||||||||
Professional services | 3,352 | 5,763 | 5,732 | 5,940 | 5,793 | ||||||||||
Amortization of intangibles | 483 | 543 | 543 | 543 | 543 | ||||||||||
FDIC insurance expense | 3,720 | 5,119 | 3,240 | 4,581 | 4,366 | ||||||||||
Other operating expense | 16,748 | 24,732 | 18,707 | 16,373 | 18,175 | ||||||||||
Total other expenses | 113,768 | 123,874 | 115,957 | 110,068 | 114,445 | ||||||||||
Income before income tax expense | 42,684 | 41,781 | 44,835 | 41,247 | 37,786 | ||||||||||
Income taxes | 12,340 | 11,285 | 13,098 | 11,484 | 10,226 | ||||||||||
Net income | 30,344 | 30,496 | 31,737 | 29,763 | 27,560 | ||||||||||
Other comprehensive income (loss), net of taxes | 1,715 | (19,233 | ) | 4,491 | 16,620 | 338 | |||||||||
Comprehensive income | $ | 32,059 | $ | 11,263 | $ | 36,228 | $ | 46,383 | $ | 27,898 | |||||
Net income applicable to common shares | $ | 30,344 | $ | 30,496 | $ | 31,737 | $ | 29,763 | $ | 27,560 | |||||
Net income used in diluted EPS calculation | $ | 30,344 | $ | 30,496 | $ | 31,737 | $ | 29,763 | $ | 27,560 | |||||
Weighted average common shares - basic | 109,211 | 109,249 | 109,245 | 109,138 | 108,769 | ||||||||||
Weighted average common shares - diluted | 109,211 | 109,249 | 109,246 | 109,139 | 108,770 | ||||||||||
Basic earnings per common share | $ | 0.28 | $ | 0.28 | $ | 0.29 | $ | 0.27 | $ | 0.25 | |||||
Diluted earnings per common share | $ | 0.28 | $ | 0.28 | $ | 0.29 | $ | 0.27 | $ | 0.25 | |||||
10
FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||||||||||
Asset Quality Information (excluding Acquired Assets) | |||||||||||||||||||
(Unaudited, except December 31, 2011 annual period which is derived from the audited financial statements) | |||||||||||||||||||
(Dollars in thousands, except ratios) | |||||||||||||||||||
Quarterly Periods | Annual Period | ||||||||||||||||||
March 31, | December 31, | September 30, | June 30, | March 31, | December 31, | ||||||||||||||
Allowance for Credit Losses | 2012 | 2011 | 2011 | 2011 | 2011 | 2011 | |||||||||||||
Allowance for noncovered loan losses, beginning of period | $ | 107,699 | $ | 109,187 | $ | 109,187 | $ | 114,690 | $ | 114,690 | $ | 114,690 | |||||||
Provision for noncovered loan losses | 8,129 | 12,275 | 14,604 | 10,138 | 17,018 | 54,035 | |||||||||||||
Charge-offs | 17,417 | 18,984 | 20,014 | 20,958 | 22,812 | 82,768 | |||||||||||||
Recoveries | 5,438 | 5,221 | 5,410 | 5,317 | 5,794 | 21,742 | |||||||||||||
Net charge-offs | 11,979 | 13,763 | 14,604 | 15,641 | 17,018 | 61,026 | |||||||||||||
Allowance for noncovered loan losses, end of period | $ | 103,849 | $ | 107,699 | $ | 109,187 | $ | 109,187 | $ | 114,690 | $ | 107,699 | |||||||
Reserve for unfunded lending commitments, beginning of period | $ | 6,373 | $ | 6,360 | $ | 5,799 | $ | 7,202 | $ | 8,849 | $ | 8,849 | |||||||
Provision for/(relief of) credit losses | (963 | ) | 13 | 561 | (1,403 | ) | (1,647 | ) | (2,476 | ) | |||||||||
Reserve for unfunded lending commitments, end of period | $ | 5,410 | $ | 6,373 | $ | 6,360 | $ | 5,799 | $ | 7,202 | $ | 6,373 | |||||||
Allowance for Credit Losses | $ | 109,259 | $ | 114,072 | $ | 115,547 | $ | 114,986 | $ | 121,892 | $ | 114,072 | |||||||
Ratios (a) | |||||||||||||||||||
Provision for loan losses as a % of average loans | 0.43 | % | 0.65 | % | 0.79 | % | 0.57 | % | 0.99 | % | 0.75 | % | |||||||
Provision for credit losses as a % of average loans | — | % | — | % | 0.03 | % | (0.08 | )% | (0.10 | )% | — | % | |||||||
Net charge-offs as a % of average loans | 0.63 | % | 0.73 | % | 0.79 | % | 0.89 | % | 0.99 | % | 0.85 | % | |||||||
Allowance for loan losses as a % of period-end loans | 1.34 | % | 1.41 | % | 1.46 | % | 1.51 | % | 1.64 | % | 1.41 | % | |||||||
Allowance for credit losses as a % of period-end loans | 1.41 | % | 1.49 | % | 1.55 | % | 1.59 | % | 1.74 | % | 1.49 | % | |||||||
Allowance for loan losses as a % of nonperforming loans | 194.83 | % | 166.64 | % | 160.09 | % | 150.31 | % | 138.67 | % | 166.64 | % | |||||||
Allowance for credit losses as a % of nonperforming loans | 204.98 | % | 176.50 | % | 169.42 | % | 158.30 | % | 147.38 | % | 176.50 | % | |||||||
Asset Quality (a) | |||||||||||||||||||
Impaired loans: | |||||||||||||||||||
Nonaccrual | $ | 44,486 | $ | 55,755 | $ | 59,928 | $ | 63,688 | $ | 71,246 | $ | 55,755 | |||||||
Other nonperforming loans: | |||||||||||||||||||
Nonaccrual | 8,815 | 8,876 | 8,275 | 8,951 | 11,460 | 8,876 | |||||||||||||
Total nonperforming loans | 53,301 | 64,631 | 68,203 | 72,639 | 82,706 | 64,631 | |||||||||||||
Other real estate ("ORE") | 14,670 | 16,463 | 22,172 | 27,207 | 30,053 | 16,463 | |||||||||||||
Total nonperforming assets ("NPAs") | $ | 67,971 | $ | 81,094 | $ | 90,375 | $ | 99,846 | $ | 112,759 | $ | 81,094 | |||||||
NPAs as % of period-end loans + ORE | 0.87 | % | 1.06 | % | 1.21 | % | 1.38 | % | 1.61 | % | 1.06 | % | |||||||
Past due 90 days or more & accruing interest | $ | 6,808 | $ | 8,866 | $ | 6,268 | $ | 10,424 | $ | 5,652 | $ | 8,866 | |||||||
(a) Excludes acquired loans and related loss share receivable with a period end balance of $1.5 billion, $1.6 billion, $1.8 billion, $1.9 billion and $2.1 billion and covered ORE and related loss share receivable with a period end balance of $56.4 million, $54.5 million, $61.9 million, $58.5 million and $58.7 million at March 31, 2012, December 31, 2011, September 30, 2011, June 30, 2011 and March 31, 2011.
11
FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | ||||||||||||||||||||
Noninterest Income and Noninterest Expense Detail | ||||||||||||||||||||
(Unaudited) | ||||||||||||||||||||
(Dollars in thousands) | ||||||||||||||||||||
2012 | 2011 | 2011 | 2011 | 2011 | ||||||||||||||||
QUARTERLY OTHER INCOME DETAIL | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Trust department income | $ | 5,627 | $ | 5,413 | $ | 5,607 | $ | 5,863 | $ | 5,514 | ||||||||||
Service charges on deposits | 14,409 | 15,622 | 17,838 | 15,712 | 14,910 | |||||||||||||||
Credit card fees | 10,180 | 10,182 | 13,640 | 13,510 | 12,207 | |||||||||||||||
ATM and other service fees | 3,790 | 3,920 | 3,801 | 3,063 | 2,917 | |||||||||||||||
Bank owned life insurance income | 3,056 | 3,381 | 3,182 | 3,015 | 5,241 | |||||||||||||||
Investment services and insurance | 2,247 | 1,844 | 1,965 | 1,972 | 2,447 | |||||||||||||||
Investment securities gains, net | 260 | 5,790 | 4,402 | 889 | — | |||||||||||||||
Loan sales and servicing income | 6,691 | 5,102 | 3,426 | 2,891 | 2,785 | |||||||||||||||
Other operating income | 5,466 | 8,483 | 6,911 | 4,576 | 6,735 | |||||||||||||||
Total Other Income | $ | 51,726 | $ | 59,737 | $ | 60,772 | $ | 51,491 | $ | 52,756 | ||||||||||
2012 | 2011 | 2011 | 2011 | 2011 | ||||||||||||||||
QUARTERLY OTHER EXPENSES DETAIL | 1st Qtr | 4th Qtr | 3rd Qtr | 2nd Qtr | 1st Qtr | |||||||||||||||
Salaries, wages, pension and employee benefits | $ | 63,973 | $ | 62,546 | $ | 61,232 | $ | 56,713 | $ | 59,871 | ||||||||||
Net occupancy expense | 8,592 | 7,270 | 8,464 | 8,086 | 8,594 | |||||||||||||||
Equipment expense | 7,104 | 7,234 | 7,073 | 6,816 | 6,836 | |||||||||||||||
Taxes, other than income taxes | 1,955 | 1,389 | 1,507 | 922 | 1,960 | |||||||||||||||
Stationery, supplies and postage | 2,143 | 2,719 | 2,517 | 2,750 | 2,705 | |||||||||||||||
Bankcard, loan processing and other costs | 7,653 | 7,948 | 8,449 | 8,266 | 7,562 | |||||||||||||||
Advertising | 1,684 | 2,275 | 2,391 | 2,287 | 2,384 | |||||||||||||||
Professional services | 3,352 | 5,763 | 5,732 | 5,940 | 5,793 | |||||||||||||||
Telephone | 1,398 | 1,525 | 1,570 | 1,462 | 1,486 | |||||||||||||||
Amortization of intangibles | 483 | 543 | 543 | 543 | 543 | |||||||||||||||
FDIC insurance expense | 3,720 | 5,119 | 3,240 | 4,581 | 4,366 | |||||||||||||||
Other operating expense | 11,711 | 19,543 | 13,239 | 11,702 | 12,345 | |||||||||||||||
Total Other Expenses | $ | 113,768 | $ | 123,874 | $ | 115,957 | $ | 110,068 | $ | 114,445 | ||||||||||
12
FirstMerit Corporation Reports First Quarter 2012 EPS Results
FIRSTMERIT CORPORATION AND SUBSIDIARIES | |||||||||||
Allowance for Noncovered Loan Losses - Net Charge-off Detail | |||||||||||
(Unaudited) | Quarters ended | Year ended | |||||||||
(Dollars in thousands) | March 31, | December 31, | |||||||||
2012 | 2011 | 2011 | |||||||||
Allowance for noncovered loan losses - beginning of period | $ | 107,699 | $ | 114,690 | $ | 114,690 | |||||
Loans charged off: | |||||||||||
Commercial | 6,999 | 7,924 | 31,943 | ||||||||
Residential mortgage | 862 | 1,664 | 4,819 | ||||||||
Installment | 5,238 | 8,091 | 25,839 | ||||||||
Home equity | 2,324 | 2,156 | 8,691 | ||||||||
Credit cards | 1,583 | 2,318 | 7,846 | ||||||||
Leases | — | — | 778 | ||||||||
Overdrafts | 411 | 659 | 2,852 | ||||||||
Total | 17,417 | 22,812 | 82,768 | ||||||||
Recoveries: | |||||||||||
Commercial | 694 | 608 | 2,703 | ||||||||
Residential mortgage | 35 | 89 | 221 | ||||||||
Installment | 3,180 | 3,688 | 13,639 | ||||||||
Home equity | 645 | 467 | 1,985 | ||||||||
Credit cards | 630 | 647 | 2,264 | ||||||||
Manufactured housing | 22 | 31 | 119 | ||||||||
Leases | 37 | 32 | 37 | ||||||||
Overdrafts | 195 | 232 | 774 | ||||||||
Total | 5,438 | 5,794 | 21,742 | ||||||||
Net charge-offs | 11,979 | 17,018 | 61,026 | ||||||||
Provision for noncovered loan losses | 8,129 | 17,018 | 54,035 | ||||||||
Allowance for noncovered loan losses - end of period | $ | 103,849 | $ | 114,690 | $ | 107,699 | |||||
Average loans (a) | $ | 7,677,963 | $ | 6,963,389 | $ | 7,217,349 | |||||
Ratio to average loans (a): | |||||||||||
(Annualized) net charge-offs | 0.63 | % | 0.99 | % | 0.85 | % | |||||
Provision for loan losses | 0.43 | % | 0.99 | % | 0.75 | % | |||||
Loans, period-end (a) | $ | 7,764,058 | $ | 6,989,973 | $ | 7,635,776 | |||||
Allowance for credit losses (a): | $ | 109,259 | $ | 121,892 | $ | 114,072 | |||||
As a multiple of (annualized) net charge-offs | 2.27 | 1.77 | 1.87 | ||||||||
Allowance for noncovered loan losses (a): | |||||||||||
As a percent of period-end noncovered loans | 1.34 | % | 1.64 | % | 1.41 | % | |||||
As a multiple of (annualized) net noncovered charge-offs | 2.16 | 1.66 | 1.76 | ||||||||
(a) Excludes acquired loans and loss share receivable. | |||||||||||
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