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

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8-K - 8-K - FIRSTMERIT CORP /OH/	a8kq12013.htm
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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 2013 EPS of $0.33 Per Share

Quarterly Highlights include:


•	Sustained profitability: 56th consecutive quarter of profitability.


•	Continued organic growth: Average commercial noncovered loan growth of $259.3 million, or 4.63%, from prior quarter; average core deposit growth of $285.4 million, or 2.81%, from prior quarter.


•	Superior credit quality: Net charge-offs to noncovered average loans decreased to 0.27% from 0.34% in the prior quarter; nonperforming assets as a percent of noncovered period end loans plus other real estate remained low at 0.59% compared to 0.57% in the prior quarter.


•	Strong balance sheet: Strong tangible common equity ratio at 8.03%.

Akron, Ohio (April 23, 2013) - FirstMerit Corporation (Nasdaq: FMER) reported first quarter 2013 net income of $37.3 million, or $0.33 per diluted share. This compares with $38.2 million, or $0.35 per diluted share, for the fourth quarter 2012 and $30.3 million, or $0.28 per diluted share, for the first quarter 2012.

Returns on average common equity (“ROE”) and average assets (“ROA”) for the first quarter 2013 were 8.83% and 1.01%, respectively, compared with 9.30% and 1.03%, respectively, for the fourth quarter 2012 and 7.72% and 0.84% for the first quarter 2012.

"During the first quarter, FirstMerit continued its trend of strong financial results. Our solid performance laid the foundation for our execution of the Citizens Republic Bancorp acquisition that we announced last September and closed on April 12, 2013. Our most recent quarter was highlighted by excellent credit quality, additional cost savings generated by our successful efficiency initiative and robust growth in average noncovered commercial loans and average core deposits. We are excited to introduce our value proposition into our newest markets, Michigan and Wisconsin, backed by our exceptional customer service. We believe FirstMerit’s consistent profitability, robust balance sheet and high capital levels will resonate well with customers as we capture market share in our new footprint," said Paul Greig, chairman, president and CEO, FirstMerit Corporation.

FirstMerit Corporation Reports First Quarter 2013 EPS Results

Net interest margin was 3.46% for the first quarter 2013 compared with 3.58% for the fourth quarter 2012 and 3.78% for the first quarter 2012. Increased borrowing costs, primarily related to the Corporation's issuance of $250 million aggregate principal amount of subordinated notes in an underwritten public offering completed on February 4, 2013, accounted for six basis points of compression during the first quarter of 2013.

Average noncovered loans during the first quarter 2013 increased $291.1 million, or 3.45%, compared with the fourth quarter 2012 and also increased $953.9 million, or 12.26%, compared with the first quarter 2012. Average noncovered commercial loans increased $259.3 million, or 4.63%, compared with the prior quarter, and increased $716.7 million, or 13.94%, compared with the year ago quarter.

Average deposits were $11.8 billion during the first quarter 2013, an increase of $194.7 million, or 1.68%, compared with the fourth quarter 2012, and an increase of $317.8 million, or 2.77%, compared with the first quarter 2012. During the first quarter 2013, average core deposits, which exclude time deposits, increased $285.4 million, or 2.81%, compared with the fourth quarter 2012 and $680.5 million, or 6.96%, compared with the first quarter 2012. Average time deposits decreased $90.7 million, or 6.38%, and decreased $362.7 million, or 21.41%, respectively, over prior and year-ago quarters. For the first quarter 2013, average core deposits accounted for 88.71% of total average deposits, compared with 87.73% for the fourth quarter 2012 and 85.23% for the first quarter 2012.

Average investments increased $11.2 million, or 0.30%, compared with the fourth quarter 2012 and increased $7.2 million, or 0.19% compared with the first quarter 2012.

Net interest income on a fully tax-equivalent (“FTE”) basis was $114.4 million in the first quarter 2013 compared with $119.1 million in the fourth quarter 2012 and $121.4 million in the first quarter 2012.

Noninterest income, excluding gains on securities transactions, for the first quarter 2013 was $57.4 million, a decrease of $1.8 million, or 3.08%, from the fourth quarter 2012 and an increase of $5.9 million, or 11.53%, from the first quarter 2012. Included in noninterest income in both the first quarter of 2013 and the fourth quarter of 2012 were $5.0 million of gains on covered loans paid in full.

Other income, net of securities gains, as a percentage of net revenue for the first quarter 2013 was 33.42% compared with 33.21% for fourth quarter 2012 and 29.77% for the first quarter 2012. Net revenue is defined as net interest income, on an FTE basis, plus other income, less gains from securities sales.

Noninterest expense for the first quarter 2013 was $106.9 million, a decrease of $5.3 million, or 4.69%, from the fourth quarter 2012 and a decrease of $6.8 million, or 6.01%, from the first quarter 2012. Included in noninterest expense in the first quarter of 2013 and fourth quarter of 2012 were acquisition related costs associated with the Citizens Republic Bancorp merger of $3.6 million and $2.1 million, respectively. The majority of these acquisition related costs were from professional and legal services rendered in connection with the merger. Also included in noninterest expense in the fourth quarter of 2012 was $2.3 million of fees related to the early termination of Federal Home Loan Bank advances.

During the first quarter 2013, the Corporation reported an efficiency ratio of 62.06%, compared with 62.65% for the fourth quarter 2012 and 65.52% for the first quarter 2012.

Net noncovered charge-offs totaled $5.9 million, or 0.27% of average noncovered loans in the first quarter 2013, compared with $7.1 million, or 0.34% of average noncovered loans, in the fourth quarter 2012 and $12.0 million, or 0.62% of average noncovered loans, in the first quarter 2012.

FirstMerit Corporation Reports First Quarter 2013 EPS Results

Nonperforming assets totaled $52.2 million at March 31, 2013, a increase of $2.0 million, or 4.00%, compared with December 31, 2012 and a decrease of $15.7 million, or 23.11%, compared with March 31, 2012. Nonperforming assets at March 31, 2013 represented 0.59% of period-end noncovered loans plus other real estate compared with 0.57% at December 31, 2012 and 0.86% at March 31, 2012.

The allowance for noncovered loan losses totaled $98.8 million at March 31, 2013. At March 31, 2013, the allowance for noncovered loan losses was 1.13% of period-end noncovered loans compared with 1.13% at December 31, 2012 and 1.32% at March 31, 2012. 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 1.18% of period end noncovered loans at March 31, 2013, compared with 1.20% at December 31, 2012 and 1.39% at March 31, 2012. The allowance for credit losses to nonperforming loans was 254.32% at March 31, 2013, compared with 284.50% at December 31, 2012 and 205.13% at March 31, 2012.

The Corporation’s total assets at March 31, 2013 were $15.3 billion, an increase of $359.5 million, or 2.41%, compared with December 31, 2012 and an increase of $601.7 million, or 4.10%, compared with March 31, 2012.

Total deposits were $11.9 billion at March 31, 2013, an increase of $166.3 million, or 1.41%, from December 31, 2012 and an increase of $277.6 million, or 2.38%, from March 31, 2012. Core deposits totaled $10.6 billion at March 31, 2013, an increase of $238.4 million, or 2.30%, from December 31, 2012 and an increase of $624.3 million, or 6.24%, from March 31, 2012.

Shareholders’ equity was $1.8 billion as of March 31, 2013 and $1.6 billion as of December 31, 2012 and March 31, 2012. On February 4, 2013, the Corporation issued 4,000,000 depositary shares (each representing a 1/40th interest in a share of the Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series A) for total gross proceeds of $100 million. Dividends are payable quarterly in arrears on the 4th day of February, May, August and November, beginning May 4, 2013. As of March 31, 2013, $0.9 million of dividends were accrued and payable on May 4, 2013 and accounted for approximately a one cent reduction in diluted EPS for the quarter ended March 31, 2013. The Corporation maintained a strong capital position as tangible common equity to assets was 8.03% at March 31, 2013, compared with 8.16% at December 31, 2012 and 7.86% at March 31, 2012. The common cash dividend per share paid in the first quarter 2013 was $0.16.

First Quarter 2013 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 the conference call, please dial (888) 693-3477 ten minutes before start time and provide the reservation number: 41933689. A replay of the conference call will be available at approximately 2:00 p.m. (Eastern Time) on April 23, 2013 through May 7, 2013 by dialing (855) 859-2056, and entering the PIN: 41933689. The Corporation will provide a slide presentation, which management will speak to during the conference call. A copy of the presentation will be available at https://www.firstmerit.com/personal/investors.aspx; click on the Presentations link to access the slide presentation.

FirstMerit Corporation Reports First Quarter 2013 EPS Results

About FirstMerit Corporation

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of approximately $24.5 billion as of close of business April 12, 2013, and 415 banking offices and 452 ATM locations in Ohio, Michigan, Wisconsin, Illinois and Pennsylvania. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal affiliates 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, 2013 on Form 10-K. 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, 2013 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, the Corporation's ability to realize the synergies and benefits contemplated by the acquisition of Citizens Republic Bancorp, such as it being accretive to earnings and expanding the Corporation's geographic presence, in the time frame anticipated or at all, and those risk factors detailed in the Corporation's periodic reports and registration statements filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

FirstMerit Corporation Reports First Quarter 2013 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited)							Quarters
(Dollars in thousands, except per share amounts)	2013			2012			2012			2012			2012
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
EARNINGS
Net interest income FTE (a)	$	114,376		$	119,130		$	120,741		$	121,689		$	121,428
Provision for noncovered loan losses	5,808			7,116			9,965			8,766			8,129
Provision for covered loan losses	4,138			5,146			6,214			3,430			5,932
Other income	57,392			61,652			54,925			55,301			51,726
Other expenses	106,925			112,181			108,587			119,077			113,768
FTE adjustment (a)	3,027			2,900			2,851			2,766			2,641
Net income	37,346			38,224			34,953			30,585			30,344
Diluted EPS (d)	0.33			0.35			0.32			0.28			0.28
PERFORMANCE RATIOS
Return on average assets (ROA)	1.01		%	1.03		%	0.94		%	0.84		%	0.84		%
Return on average common equity (ROE)	8.83		%	9.30		%	8.60		%	7.69		%	7.72		%
Net interest margin FTE (a)	3.46		%	3.58		%	3.66		%	3.77		%	3.78		%
Efficiency ratio	62.06		%	62.65		%	61.75		%	67.21		%	65.52		%
Number of full-time equivalent employees	2,767			2,738			2,733			2,789			2,997
MARKET DATA
Book value per common share	$	15.99		$	15.00		$	14.82		$	14.60		$	14.51
Period-end common share market value	16.54			14.19			14.71			16.51			16.86
Market as a % of book	103		%	95		%	99		%	113		%	116		%
Cash dividends per common share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
Common stock dividend payout ratio	48.48		%	45.71		%	50.00		%	57.14		%	57.14		%
Average basic common shares	109,689			109,652			109,645			109,562			109,211
Average diluted common shares	109,689			109,652			109,645			109,562			109,211
Period end common shares	109,746			109,649			109,653			109,641			109,187
Common shares repurchased	26			12			6			111			69
Common stock market capitalization	$	1,815,199		$	1,555,919		$	1,612,996		$	1,810,173		$	1,840,893
ASSET QUALITY (excluding covered loans)
Gross charge-offs	$	10,776		$	12,475		$	20,999		$	15,014		$	17,417
Net charge-offs	5,907			7,116			14,872			8,766			11,979
Allowance for noncovered loan losses	98,843			98,942			98,942			103,849			103,849
Reserve for unfunded lending commitments	4,941			5,433			5,760			5,666			5,410
Nonperforming assets (NPAs) (b)	52,231			50,224			64,055			61,080			67,933
Net charge-offs to average loans ratio (b)	0.27		%	0.34		%	0.72		%	0.44		%	0.62		%
Allowance for noncovered loan losses to period-end loans (b)	1.13		%	1.13		%	1.19		%	1.28		%	1.32		%
Allowance for credit losses to period-end loans (b)	1.18		%	1.20		%	1.26		%	1.35		%	1.39		%
NPAs to loans and other real estate (b)	0.59		%	0.57		%	0.77		%	0.75		%	0.86		%
Allowance for noncovered loan losses to nonperforming loans	242.21		%	269.69		%	196.66		%	222.44		%	194.97		%
Allowance for credit losses to nonperforming loans	254.32		%	284.50		%	208.11		%	234.57		%	205.13		%
CAPITAL & LIQUIDITY
Period-end tangible common equity to assets	8.03		%	8.16		%	8.18		%	8.01		%	7.86		%
Average equity to assets	11.45		%	11.12		%	10.97		%	10.98		%	10.91		%
Average equity to total loans (c)	17.88		%	17.37		%	17.46		%	17.57		%	17.50		%
Average total loans to deposits (c)	81.36		%	81.21		%	79.89		%	78.78		%	78.74		%
AVERAGE BALANCES
Assets	$	14,983,543		$	14,702,215		$	14,734,016		$	14,558,514		$	14,496,937
Deposits	11,789,784			11,595,085			11,591,931			11,555,283			11,472,021
Loans, excluding acquired loans (c)	8,681,295			8,389,223			8,121,083			7,857,840			7,677,963
Acquired loans, including covered loans (c)	910,887			1,026,574			1,139,568			1,245,246			1,355,086
Earning assets	13,408,789			13,246,693			13,119,473			12,986,988			12,935,184
Shareholders' equity	1,715,005			1,635,275			1,616,569			1,599,187			1,581,009
ENDING BALANCES
Assets	$	15,272,484		$	14,913,012		$	14,628,843		$	14,621,344		$	14,670,818
Deposits	11,925,767			11,759,425			11,532,426			11,615,841			11,648,165
Loans, excluding acquired loans (c)	8,725,839			8,677,501			8,260,426			8,031,998			7,764,058
Acquired loans, including covered loans (c)	855,370			959,549			1,099,052			1,187,203			1,306,165
Goodwill	460,044			460,044			460,044			460,044			460,044
Intangible assets	6,055			6,373			6,817			7,274			7,756
Earning assets	13,905,342			13,472,067			13,219,301			13,212,071			13,318,202
Total shareholders' equity	1,754,850			1,645,202			1,624,704			1,600,815			1,584,105
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) - Covered loans and other real estate from George Washington Savings Bank and Midwest Bank & Trust Company are excluded from the ratio of our allowance for loan and credit losses and NPAs. Nonperforming assets at March 31, 2013, December 31, 2012, and September 30, 2012 include $10.0 million, $7.7 million, and $10.6 million, respectively, of loans resulting from consumer loans classified as troubled debt restructurings where the borrower's obligation to the Corporation has been restructured in bankruptcy.

(c) - Excludes loss share receivable of $95.6 million, $113.7 million, $131.9 million, $152.6 million and $171.1 million as of March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively.

(d) - Net income used to determine diluted EPS for the quarter ended March 31, 2013 was reduced by the cash dividends of approximately $0.9 million payable on the Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series A.

FirstMerit Corporation Reports First Quarter 2013 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)				March 31,			December 31,			March 31,
(Unaudited, except December 31, 2012, which is derived from the audited financial statements)				2013			2012			2012
ASSETS
	Cash and due from banks			$	183,430		$	244,223		$	188,789
	Interest-bearing deposits in banks			163,673			13,791			301,196
		Total cash and cash equivalents		347,103			258,014			489,985
	Investment securities:
		Held-to-maturity		665,589			622,121			100,840
		Available-for-sale		3,243,835			2,920,971			3,491,647
		Other investments		140,984			140,717			140,713
	Loans held for sale			14,459			23,683			42,447
	Noncovered loans:
		Commercial		5,888,337			5,866,489			5,220,051
		Mortgage		451,522			445,211			428,950
		Installment		1,322,795			1,328,258			1,259,930
		Home equity		812,458			806,078			739,548
		Credit card		140,721			146,387			140,618
		Leases		164,137			139,236			74,112
			Total noncovered loans	8,779,970			8,731,659			7,863,209
			Allowance for noncovered loan losses	(98,843		)	(98,942		)	(103,849		)
			Net noncovered loans	8,681,127			8,632,717			7,759,360
	Covered loans (includes loss share receivable of $95.6 million, $113.7 million and $171.1 million at March 31, 2013, December 31, 2012 and March 31, 2012, respectively)			896,832			1,019,125			1,378,150
			Allowance for covered loan losses	(47,945		)	(43,255		)	(41,070		)
			Net covered loans	848,887			975,870			1,337,080
	Net loans			9,530,014			9,608,587			9,096,440
	Premises and equipment, net			177,137			181,149			188,347
	Goodwill			460,044			460,044			460,044
	Intangible assets			6,055			6,373			7,756
	Covered other real estate (includes loss share receivable of $.04 million, $.05 million, and $0.7 million at March 31, 2013, December 31, 2012 and March 31, 2012, respectively)			70,267			59,855			56,411
	Accrued interest receivable and other assets			616,997			631,498			596,188
			Total assets	$	15,272,484		$	14,913,012		$	14,670,818
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits:
		Noninterest-bearing		$	3,360,841		$	3,338,371		$	3,136,595
		Interest-bearing		1,371,359			1,287,674			1,119,102
		Savings and money market accounts		5,890,369			5,758,123			5,742,547
		Certificates and other time deposits		1,303,198			1,375,257			1,649,921
			Total deposits	11,925,767			11,759,425			11,648,165
		Federal funds purchased and securities sold under agreements to repurchase		826,855			1,104,525			928,760
		Wholesale borrowings		385,924			136,883			176,611
		Accrued taxes, expenses, and other liabilities		379,088			266,977			333,177
			Total liabilities	13,517,634			13,267,810			13,086,713
		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	—			—			—
			5.875% Non-Cumulative Perpetual Preferred Stock, Series A, without par value: 115,000 authorized shares; 100,000 outstanding shares	100,000			—			—
			Common stock, without par value; authorized 300,000,000 shares; issued: March 31, 2013, December 31, 2012 and March 31, 2012 - 115,121,731 shares	127,937			127,937			127,937
			Capital surplus	472,975			475,979			484,491
			Accumulated other comprehensive loss	(24,119		)	(16,205		)	(22,172		)
			Retained earnings	1,214,889			1,195,850			1,144,210
			Treasury stock, at cost: March 31, 2013 - 5,375,905 shares; December 31, 2012 - 5,472,915 shares; March 31, 2012 - 5,935,169 shares	(136,832		)	(138,359		)	(150,361		)
			Total shareholders' equity	1,754,850			1,645,202			1,584,105
			Total liabilities and shareholders' equity	$	15,272,484		$	14,913,012		$	14,670,818

FirstMerit Corporation Reports First Quarter 2013 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)	2013			2012			2012			2012			2012
ASSETS
Cash and due from banks	$	394,896		$	238,366		$	440,231		$	410,533		$	378,736
Investment securities:
Held-to-maturity	637,614			620,154			337,685			127,769			90,664
Available-for-sale	2,919,636			2,925,938			3,215,203			3,429,411			3,459,439
Other investments	140,729			140,723			140,736			140,744			140,719
Loans held for sale	14,884			20,485			23,631			22,731			26,483
Noncovered loans:
Commercial	5,859,818			5,600,522			5,443,712			5,274,352			5,143,087
Residential Mortgage	448,589			443,542			437,123			431,752			421,648
Installment	1,325,016			1,331,131			1,293,054			1,263,013			1,261,122
Home equity	806,936			798,663			779,087			750,859			738,154
Credit card	144,159			145,050			143,948			142,311			143,794
Leases	150,789			125,300			88,583			78,862			73,644
Total noncovered loans	8,735,307			8,444,208			8,185,507			7,941,149			7,781,449
Covered loans and loss share receivable	960,619			1,095,185			1,216,711			1,325,184			1,436,430
Total loans	9,695,926			9,539,393			9,402,218			9,266,333			9,217,879
Less: allowance for loan losses	141,735			141,270			145,061			143,565			142,628
Net loans	9,554,191			9,398,123			9,257,157			9,122,768			9,075,251
Total earning assets	13,408,789			13,246,693			13,119,473			12,986,988			12,935,184
Premises and equipment, net	179,381			181,738			184,544			187,181			190,669
Accrued interest receivable and other assets	1,142,212			1,176,688			1,134,829			1,117,377			1,134,976
TOTAL ASSETS	$	14,983,543		$	14,702,215		$	14,734,016		$	14,558,514		$	14,496,937
LIABILITIES
Deposits:
Noninterest-bearing	$	3,321,660		$	3,306,444		$	3,236,703		$	3,144,183		$	3,036,590
Interest-bearing	1,300,816			1,122,796			1,080,841			1,060,771			1,066,132
Savings and money market accounts	5,835,750			5,743,599			5,746,210			5,732,007			5,675,052
Certificates and other time deposits	1,331,558			1,422,246			1,528,177			1,618,322			1,694,247
Total deposits	11,789,784			11,595,085			11,591,931			11,555,283			11,472,021
Federal funds purchased and securities sold under
agreements to repurchase	906,717			957,564			1,032,401			920,352			887,715
Wholesale borrowings	291,804			163,405			178,022			177,987			184,659
Total funds	12,988,305			12,716,054			12,802,354			12,653,622			12,544,395
Accrued taxes, expenses and other liabilities	280,233			350,886			315,093			305,705			371,533
Total liabilities	13,268,538			13,066,940			13,117,447			12,959,327			12,915,928
SHAREHOLDERS' EQUITY
Preferred stock	62,222			—			—			—			—
Common stock	127,937			127,937			127,937			127,937			127,937
Capital surplus	473,943			474,532			472,820			473,650			481,856
Accumulated other comprehensive income (loss)	(21,247		)	(17,666		)	(14,627		)	(18,363		)	(19,862		)
Retained earnings	1,209,837			1,188,641			1,168,649			1,156,324			1,140,953
Treasury stock	(137,687		)	(138,169		)	(138,210		)	(140,361		)	(149,875		)
Total shareholders' equity	1,715,005			1,635,275			1,616,569			1,599,187			1,581,009
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	14,983,543		$	14,702,215		$	14,734,016		$	14,558,514		$	14,496,937

FirstMerit Corporation Reports First Quarter 2013 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, 2013							December 31, 2012							March 31, 2012
(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	$	394,896						$	238,366						$	378,736
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	2,790,039			$	16,294	2.37	%	2,794,524			$	16,767	2.39	%	2,882,045			$	19,679	2.75	%
Obligations of states and political subdivisions (tax exempt)	541,014			6,595		4.94	%	510,722			6,583		5.13	%	436,804			5,864		5.40	%
Other securities and federal funds sold	366,926			2,944		3.25	%	381,569			3,429		3.58	%	371,973			2,739		2.96	%
Total investment securities and federal funds sold	3,697,979			25,833		2.83	%	3,686,815			26,779		2.89	%	3,690,822			28,282		3.08	%
Loans held for sale	14,884			144		3.92	%	20,485			199		3.86	%	26,483			283		4.30	%
Noncovered loans, covered loans and loss share receivable	9,695,926			99,006		4.14	%	9,539,393			101,288		4.22	%	9,217,879			103,156		4.50	%
Total earning assets	13,408,789			124,983		3.78	%	13,246,693			128,266		3.85	%	12,935,184			131,721		4.10	%
Allowance for loan losses	(141,735		)					(141,270		)					(142,628		)
Other assets	1,321,593							1,358,426							1,325,645
Total assets	$	14,983,543						$	14,702,215						$	14,496,937
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	3,321,660		—		—	%	$	3,306,444		—		—	%	$	3,036,590		—		—	%
Interest-bearing	1,300,816			318		0.10	%	1,122,796			261		0.09	%	1,066,132			247		0.09	%
Savings and money market accounts	5,835,750			5,315		0.37	%	5,743,599			5,261		0.36	%	5,675,052			5,103		0.36	%
Certificates and other time deposits	1,331,558			2,063		0.63	%	1,422,246			2,287		0.64	%	1,694,247			3,524		0.84	%
Total deposits	11,789,784			7,696		0.26	%	11,595,085			7,809		0.27	%	11,472,021			8,874		0.31	%
Securities sold under agreements to repurchase	906,717			313		0.14	%	957,564			303		0.13	%	887,715			268		0.12	%
Wholesale borrowings	291,804			2,598		3.61	%	163,405			1,024		2.49	%	184,659			1,151		2.51	%
Total interest bearing liabilities	9,666,645			10,607		0.45	%	9,409,610			9,136		0.39	%	9,507,805			10,293		0.44	%
Other liabilities	280,233							350,886							371,533
Shareholders' equity	1,715,005							1,635,275							1,581,009
Total liabilities and shareholders' equity	$	14,983,543						$	14,702,215						$	14,496,937
Net yield on earning assets	$	13,408,789		$	114,376	3.46	%	$	13,246,693		$	119,130	3.58	%	$	12,935,184		$	121,428	3.78	%
Interest rate spread						3.34	%						3.47	%						3.66	%

Note: Interest income on tax-exempt securities and loans has been adjusted to a fully-taxable equivalent basis.
Nonaccrual loans have been included in the average balances.

FirstMerit Corporation Reports First Quarter 2013 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME

(Unaudited)				Quarters ended
(Dollars in thousands except per share data)				March 31,
				2013			2012
Interest income:
	Loans and loans held for sale			$	98,672		$	103,082
	Investment securities:
		Taxable		19,239			22,418
		Tax-exempt		4,045			3,580
		Total investment securities interest		23,284			25,998
			Total interest income	121,956			129,080
Interest expense:
	Deposits:
		Interest-bearing		318			247
		Savings and money market accounts		5,315			5,103
		Certificates and other time deposits		2,063			3,524
	Securities sold under agreements to repurchase			313			268
	Wholesale borrowings			2,598			1,151
		Total interest expense		10,607			10,293
		Net interest income		111,349			118,787
Provision for noncovered loan losses				5,808			8,129
Provision for covered loan losses				4,138			5,932
		Net interest income after provision for loan losses		101,403			104,726
Other income:
	Trust department income			5,741			5,627
	Service charges on deposits			12,585			14,409
	Credit card fees			10,222			10,180
	ATM and other service fees			3,335			3,790
	Bank owned life insurance income			4,897			3,056
	Investment services and insurance			2,415			2,247
	Investment securities (losses)/gains, net			(9		)	260
	Loan sales and servicing income			7,863			6,691
	Other operating income			10,343			5,466
		Total other income		57,392			51,726
Other expenses:
	Salaries, wages, pension and employee benefits			57,906			63,973
	Net occupancy expense			8,282			8,592
	Equipment expense			7,349			7,104
	Stationery, supplies and postage			2,096			2,143
	Bankcard, loan processing and other costs			7,840			7,653
	Professional services			5,410			3,352
	Amortization of intangibles			317			483
	FDIC insurance expense			3,526			3,720
	Other operating expense			14,199			16,748
		Total other expenses		106,925			113,768
			Income before income tax expense	51,870			42,684
Income tax expense				14,524			12,340
			Net income	$	37,346		$	30,344
Other comprehensive income, net of taxes
	Changes in unrealized securities' holding gains and (losses), net of taxes of ($4.3) million and $1.0 million			$	(7,920	)	$	1,884
	Reclassification for realized securities' (gains) and losses, net of taxes of ($.003) million and $.09 million			6			(169		)
	Total other comprehensive gain (loss), net of taxes			(7,914		)	1,715
		Comprehensive income		$	29,432		$	32,059
	Net income attributable to common shareholders			$	36,125		$	30,207
	Net income used in diluted EPS calculation			$	36,125		$	30,207
Weighted average number of common shares outstanding - basic				109,689			109,211
Weighted average number of common shares outstanding - diluted				109,689			109,211
Basic earnings per common share				$	0.33		$	0.28
Diluted earnings per common share				$	0.33		$	0.28
Dividend per common share				$	0.16		$	0.16

FirstMerit Corporation Reports First Quarter 2013 EPS Results



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

	Quarterly Results
(Unaudited)	2013			2012			2012		2012		2012
(Dollars in thousands, except share data)	1st qtr			4th qtr			3rd qtr		2nd qtr		1st qtr
Loans and loans held for sale	$	98,672		$	101,086		$	103,005	$	103,126	$	103,082
Investment securities	23,284			24,280			24,477		25,629		25,998
Total interest income	121,956			125,366			127,482		128,755		129,080
Interest on deposits:
Interest-bearing	318			261			243		236		247
Savings and money market accounts	5,315			5,261			5,166		5,033		5,103
Certificates and other time deposits	2,063			2,287			2,743		3,169		3,524
Securities sold under agreements to repurchase	313			303			310		276		268
Wholesale borrowings	2,598			1,024			1,130		1,118		1,151
Total interest expense	10,607			9,136			9,592		9,832		10,293
Net interest income	111,349			116,230			117,890		118,923		118,787
Provision for noncovered loan losses	5,808			7,116			9,965		8,766		8,129
Provision for covered loan losses	4,138			5,146			6,214		3,430		5,932
Net interest income after provision for loan losses	101,403			103,968			101,711		106,727		104,726
Other income:
Trust department income	5,741			5,662			6,124		5,730		5,627
Service charges on deposits	12,585			14,247			14,603		14,478		14,409
Credit card fees	10,222			11,167			11,006		11,216		10,180
ATM and other service fees	3,335			3,432			3,680		3,890		3,790
Bank owned life insurance income	4,897			3,067			3,094		2,923		3,056
Investment services and insurance	2,415			2,147			2,208		2,388		2,247
Investment securities gains, net	(9		)	2,425			553		548		260
Loan sales and servicing income	7,863			7,946			7,255		5,139		6,691
Other operating income	10,343			11,559			6,402		8,989		5,466
Total other income	57,392			61,652			54,925		55,301		51,726
Other expenses:
Salaries, wages, pension and employee benefits	57,906			61,560			58,061		61,598		63,973
Net occupancy expense	8,282			7,114			8,077		7,971		8,592
Equipment expense	7,349			7,398			7,143		7,598		7,104
Stationery, supplies and postage	2,096			2,162			2,210		2,285		2,143
Bankcard, loan processing and other costs	7,840			9,260			8,424		8,858		7,653
Professional services	5,410			6,119			4,702		9,307		3,352
Amortization of intangibles	317			444			456		483		483
FDIC insurance expense	3,526			1,738			1,832		3,463		3,720
Other operating expense	14,199			16,386			17,682		17,514		16,748
Total other expenses	106,925			112,181			108,587		119,077		113,768
Income before income tax expense	51,870			53,439			48,049		42,951		42,684
Income taxes	14,524			15,215			13,096		12,366		12,340
Net income	37,346			38,224			34,953		30,585		30,344
Other comprehensive income (loss), net of taxes	(7,914		)	(2,305		)	4,525		3,747		1,715
Comprehensive income	$	29,432		$	35,919		$	39,478	$	34,332	$	32,059
Net income attributable to common shareholders	$	36,125		$	38,041		$	34,797	$	30,472	$	30,207
Net income used in diluted EPS calculation	$	36,125		$	38,041		$	34,797	$	30,472	$	30,207
Weighted-average common shares - basic	109,689			109,652			109,645		109,562		109,211
Weighted-average common shares - diluted	109,689			109,652			109,645		109,562		109,211
Basic earnings per common share	$	0.33		$	0.35		$	0.32	$	0.28	$	0.28
Diluted earnings per common share	$	0.33		$	0.35		$	0.32	$	0.28	$	0.28

FirstMerit Corporation Reports First Quarter 2013 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION (excluding Covered Assets)


	(Unaudited)															(Audited)
(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	2013			2012			2012			2012			2012			2012
Allowance for noncovered loan losses, beginning of period	$	98,942		$	98,942		$	103,849		$	103,849		$	107,699		$	107,699
Provision for noncovered loan losses	5,808			7,116			9,965			8,766			8,129			33,976
Charge-offs	10,776			12,475			20,999			15,014			17,417			65,905
Recoveries	4,869			5,359			6,127			6,248			5,438			23,172
Net charge-offs	5,907			7,116			14,872			8,766			11,979			42,733
Allowance for noncovered loan losses, end of period	$	98,843		$	98,942		$	98,942		$	103,849		$	103,849		$	98,942
Reserve for unfunded lending commitments,
beginning of period	$	5,433		$	5,760		$	5,666		$	5,410		$	6,373		$	6,373
Provision for (relief of) credit losses	(492		)	(327		)	94			256			(963		)	(940		)
Reserve for unfunded lending commitments,
end of period	$	4,941		$	5,433		$	5,760		$	5,666		$	5,410		$	5,433
Allowance for Credit Losses	$	103,784		$	104,375		$	104,702		$	109,515		$	109,259		$	104,375
Ratios (a)
Provision for loan losses to average loans	0.27		%	0.34		%	0.48		%	0.44		%	0.42		%	0.42		%
Net charge-offs to average loans	0.27		%	0.34		%	0.72		%	0.44		%	0.62		%	0.53		%
Allowance for loan losses to period-end loans	1.13		%	1.13		%	1.19		%	1.28		%	1.32		%	1.13		%
Allowance for credit losses to period-end loans	1.18		%	1.20		%	1.26		%	1.35		%	1.39		%	1.20		%
Allowance for loan losses to nonperforming loans	242.21		%	269.69		%	196.66		%	222.44		%	194.97		%	269.69		%
Allowance for credit losses to nonperforming loans	254.32		%	284.50		%	208.11		%	234.57		%	205.13		%	284.50		%
Asset Quality (a)
Impaired noncovered loans:
Nonaccrual	$	23,843		$	21,766		$	31,492		$	38,381		$	44,546		$	21,766
Other nonperforming loans:
Nonaccrual (b)	16,966			14,921			18,819			8,306			8,717			14,921
Total nonperforming loans	40,809			36,687			50,311			46,687			53,263			36,687
Other real estate ("ORE")	11,422			13,537			13,744			14,393			14,670			13,537
Total nonperforming assets ("NPAs")	$	52,231		$	50,224		$	64,055		$	61,080		$	67,933		$	50,224
NPAs to period-end loans + ORE	0.59		%	0.57		%	0.77		%	0.75		%	0.86		%	0.57		%
Accruing noncovered loans past due 90 days or more	$	12,393		$	9,417		$	9,691		$	6,545		$	9,261		$	9,417

(a) Excludes covered loans and related loss share receivable with a period end balance of $0.9 billion, $1.0 billion, $1.2 billion, $1.3 billion and $1.4 billion and covered ORE and related loss share receivable with a period end balance of $70.3 million, $59.9 million, $56.8 million, $54.5 million and $56.4 million at March 31, 2013, December 31, 2012, September 30, 2012, June 30, 2012 and March 31, 2012, respectively.

(b) At March 31, 2013, December 31, 2012 and September 30, 2012, included are $10.0 million, $7.7 million and $10.6 million, respectively, of consumer loans classified as troubled debt restructurings where the borrower's obligation to the Corporation has been restructured in bankruptcy.

FirstMerit Corporation Reports First Quarter 2013 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL

(Unaudited)
(Dollars in thousands)
	2013			2012		2012		2012		2012
QUARTERLY OTHER INCOME DETAIL	1st qtr			4th qtr		3rd qtr		2nd qtr		1st qtr
Trust department income	$	5,741		$	5,662	$	6,124	$	5,730	$	5,627
Service charges on deposits	12,585			14,247		14,603		14,478		14,409
Credit card fees	10,222			11,167		11,006		11,216		10,180
ATM and other service fees	3,335			3,432		3,680		3,890		3,790
Bank owned life insurance income	4,897			3,067		3,094		2,923		3,056
Investment services and insurance	2,415			2,147		2,208		2,388		2,247
Investment securities gains, net	(9		)	2,425		553		548		260
Loan sales and servicing income	7,863			7,946		7,255		5,139		6,691
Other operating income	10,343			11,559		6,402		8,989		5,466
Total Other Income	$	57,392		$	61,652	$	54,925	$	55,301	$	51,726
	2013			2012		2012		2012		2012
QUARTERLY OTHER EXPENSES DETAIL	1st qtr			4th qtr		3rd qtr		2nd qtr		1st qtr
Salaries and wages	$	46,391		$	45,988	$	43,806	$	48,766	$	45,710
Pension and employee benefits	11,515			15,572		14,255		12,832		18,263
Net occupancy expense	8,282			7,114		8,077		7,971		8,592
Equipment expense	7,349			7,398		7,143		7,598		7,104
Taxes, other than income taxes	1,922			1,924		2,051		2,020		1,955
Stationery, supplies and postage	2,096			2,162		2,210		2,285		2,143
Bankcard, loan processing and other costs	7,840			9,260		8,424		8,858		7,653
Advertising	2,070			2,774		2,472		2,280		1,684
Professional services	5,410			6,119		4,702		9,307		3,352
Telephone	1,177			1,230		1,316		1,379		1,398
Amortization of intangibles	317			444		456		483		483
FDIC insurance expense	3,526			1,738		1,832		3,463		3,720
Other operating expense	9,030			10,458		11,843		11,835		11,711
Total Other Expenses	$	106,925		$	112,181	$	108,587	$	119,077	$	113,768

FirstMerit Corporation Reports First Quarter 2013 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,
	2013			2012			2012
Allowance for noncovered loan losses - beginning of period	$	98,942		$	107,699		$	107,699
Loans charged off:
Commercial	2,672			6,999			28,648
Mortgage	270			862			3,964
Installment	4,594			5,238			18,029
Home equity	1,306			2,324			7,249
Credit cards	1,403			1,583			6,171
Leases	—			—			144
Overdrafts	531			411			1,700
Total	10,776			17,417			65,905
Recoveries:
Commercial	1,245			694			5,626
Mortgage	43			35			235
Installment	2,469			3,180			11,635
Home equity	347			645			2,819
Credit cards	513			630			2,138
Manufactured housing	27			22			59
Leases	89			37			38
Overdrafts	136			195			622
Total	4,869			5,438			23,172
Net charge-offs	5,907			11,979			42,733
Provision for noncovered loan losses	5,808			8,129			33,976
Allowance for noncovered loan losses-end of period	$	98,843		$	103,849		$	98,942

Average noncovered loans (a)	$	8,735,307		$	7,781,449		$	8,089,317
Ratio to average noncovered loans (a):
(Annualized) noncovered net charge-offs	0.27		%	0.62		%	0.53		%
Provision for noncovered loan losses	0.27		%	0.42		%	0.42		%
Noncovered Loans, period-end (a)	$	8,779,970		$	7,863,209		$	8,731,659

Allowance for credit losses (a):	$	103,784		$	109,259		$	104,375
To (annualized) net charge-offs	4.33			2.27			2.44
Allowance for noncovered loan losses (a):
To period-end noncovered loans	1.13		%	1.32		%	1.13		%
To (annualized) net noncovered charge-offs	4.13			2.16			2.32

(a) Excludes covered loans and loss share receivable.

FIRSTMERIT CORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT - April 23, 2013

Attached files