FirstMerit Reports Third Quarter 2013 EPS of $0.23 Per Share

AKRON, Ohio, Oct. 22, 2013 /PRNewswire/ --

Quarterly Highlights include:

Sustained profitability: 58th consecutive quarter of profitability.
Continued organic growth: Average loan growth of $444.0 million, or 3.25% from the prior quarter; average core deposit growth of $1.1 billion or 6.91% from the prior quarter.
Superior credit quality: Net charge-offs to average originated loans decreased to 0.12% from 0.15% in the prior quarter; nonperforming assets as a percent of period end originated loans plus other real estate remained low at 0.57%.
Strong balance sheet: Strong tangible common equity ratio at 7.44%.
Continued integration of Citizens Republic Bancorp: Successful conversion of core systems in October.

FirstMerit Corporation (Nasdaq: FMER) (the "Corporation") reported third quarter 2013 net income of $40.7 million, or $0.23 per diluted share. This compares with $48.5 million, or $0.29 per diluted share, for the second quarter 2013 and $35.0 million, or $0.32 per diluted share, for the third quarter 2012. Included in net income for the third quarter 2013 were $33.4 million of one time pre-tax merger related costs that were recorded as noninterest expense. One time pre-tax merger related costs for the second quarter 2013 totaled $32.1 million of which $2.8 million was recorded as a reduction to noninterest income and $29.3 million was recorded as noninterest expense.

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Returns on average common equity ("ROE") and average assets ("ROA") for the third quarter 2013 were 6.07% and 0.67%, respectively, compared with 7.56% and 0.85%, respectively, for the second quarter 2013 and 8.60% and 0.94%, respectively, for the third quarter 2012.

"Our strong financial results in the third quarter reflect solid performance throughout the company with characteristic focus and dedication at all levels, demonstrated by organic loan and deposit growth. This past weekend, we successfully converted Citizens Republic Bancorp's operating systems onto our platform. We now operate across our five-state footprint as one bank operating with unified systems and procedures from the front of the house to the back. With this last milestone behind us, we are actively working to take market share in all of our markets, grow our business and enhance shareholder value," said Paul Greig, chairman, president and CEO, FirstMerit Corporation.

Except as noted, the Citizens Republic Bancorp ("Citizens") acquisition is primarily contributing to the increases over the prior year period in the income statement and balance sheets. Citizens' results of operations are included in the reported current year to date period results since the date of acquisition, April 12, 2013.

"Acquired loans," as used herein, are those assumed in the Citizens acquisition. (As used herein, "originated loans" refer to loans that have been originated in the normal course of business and "covered loans" refer to loans covered by loss sharing agreements with the FDIC providing considerable protection against credit risk.)

Net Interest Income

Net interest income on a fully tax-equivalent ("FTE") basis was $207.1 million in the third quarter 2013 compared with $201.6 million in the second quarter 2013 and $120.7 million in the third quarter 2012.

Net interest margin was 4.05% for the third quarter 2013 compared with 4.12% for the second quarter 2013 and 3.66% for the third quarter 2012. Third quarter 2013 net interest margin compression compared with the second quarter 2013 was primarily driven by lower yields in the acquired loan portfolio and lower volume from the run off in the covered loan portfolio. Reduced funding costs within average deposits offset additional margin pressure during the quarter.

Average originated loans were $9.4 billion during the third quarter 2013, an increase of $500.1 million, or 5.63%, compared with the second quarter 2013, and an increase of $1.2 billion, or 14.57%, compared with the third quarter 2012. Average originated commercial loans increased $242.5 million, or 4.12%, compared with the prior quarter, and increased $687.7 million, or 12.63%, compared with the year ago quarter.

Average deposits were $19.5 billion during the third quarter 2013, an increase of $1.1 billion, or 6.12%, compared with the second quarter 2013, and an increase of $7.9 billion, or 67.84%, compared with the third quarter 2012. During the third quarter 2013, average core deposits, which exclude time deposits, increased $1.1 billion, or 6.91%, compared with the second quarter 2013 and increased $6.7 billion, or 66.29%, compared with the third quarter 2012. Average time deposits increased $40.6 million, or 1.51%, and increased $1.2 billion, or 78.05%, respectively, over the prior and year-ago quarters. For the third quarter 2013, average core deposits accounted for 86.02% of total average deposits, compared with 85.38% for the second quarter 2013 and 86.82% for the third quarter 2012.

Average investments increased $222.0 million, or 3.74%, compared with the second quarter 2013 and increased $2.5 billion, or 66.55% compared with the third quarter 2012.

Noninterest Income

Noninterest income, excluding gains and losses on securities transactions, for the third quarter 2013 was $71.1 million, a decrease of $1.1 million, or 1.58%, from the second quarter 2013 and an increase of $16.7 million, or 30.75%, from the third quarter 2012. Included in noninterest income in the third quarter 2013, second quarter 2013 and were approximately $1.8 million and $1.0 million. There were no gains on covered loans paid in full in the third quarter 2012.

Other income, excluding net securities gains and losses, as a percentage of net revenue for the third quarter 2013 was 25.56% compared with 26.38% for second quarter 2013 and 31.05% for the third quarter 2012. Net revenue is defined as net interest income, on an FTE basis, plus other income, excluding gains and losses from securities sales.

Noninterest Expense

Noninterest expense for the third quarter 2013 was $211.4 million, an increase of $21.7 million, or 11.46%, from the second quarter 2013 and an increase of $102.8 million, or 94.66%, from the third quarter 2012. Included in noninterest expense in the third quarter 2013 and second quarter 2013 were one time merger related costs associated with the Citizens acquisition of $33.4 million and $29.3 million, respectively. The majority of the merger related costs incurred in the third quarter 2013 are from fees for early termination of existing agreements assumed from the merger and are included within Bankcard, loan processing and other costs in the accompanying consolidated statements of comprehensive income. The majority of the merger related costs incurred in the second quarter of 2013 were associated with severance arrangements and professional and legal services rendered in connection with the merger. The Corporation's efficiency ratio was 74.92% for the third quarter 2013, compared with 68.37% for the second quarter 2013 and 61.75% for the third quarter 2012.

Asset Quality (excluding acquired loans and covered assets)

Due to the impact of business combination accounting and protection against credit risk from FDIC loss sharing agreements, acquired loans and covered assets are excluded from the asset quality discussion to provide for improved comparability to prior periods and better perspective into asset quality trends. Acquired loans are recorded at fair value at the date of acquisition with no allowance brought forward in accordance with business combination accounting. Impaired acquired and covered loans are considered to be performing due to the application of the accretion method under the applicable accounting guidance.

Net charge-offs on originated loans totaled $2.9 million, or 0.12% of average originated loans in the third quarter 2013, compared with $3.3 million, or 0.15% of average originated loans, in the second quarter 2013 and $14.9 million, or 0.72% of average originated loans, in the third quarter 2012.

Nonperforming assets totaled $55.4 million at September 30, 2013, a decrease of $10.8 million, or 16.25%, compared with June 30, 2013 and a decrease of $8.6 million, or 13.47%, compared with September 30, 2012. Nonperforming assets at September 30, 2013 represented 0.57% of period-end originated loans plus other real estate compared with 0.72% at June 30, 2013 and 0.77% at September 30, 2012.

The allowance for originated loan losses totaled $98.3 million at September 30, 2013. At September 30, 2013, the allowance for originated loan losses was 1.00% of period-end originated loans compared with 1.08% at June 30, 2013 and 1.19% at September 30, 2012. The allowance for credit losses is the sum of the allowance for originated loan losses and the reserve for unfunded lending commitments. For comparative purposes, the allowance for credit losses was 1.09% of period end originated loans at September 30, 2013, compared with 1.17% at June 30, 2013 and 1.26% at September 30, 2012. The allowance for credit losses to nonperforming loans was 300.06% at September 30, 2013, compared with 234.82% at June 30, 2013 and 208.11% at September 30, 2012.

Balance Sheet

The Corporation's total assets at September 30, 2013 were $24.1 billion, an increase of $602.9 million, or 2.56%, compared with June 30, 2013 and an increase of $9.5 billion, or 64.98%, compared with September 30, 2012.

Total deposits were $19.5 billion at September 30, 2013, an increase of $369.8 million, or 1.93%, from June 30, 2013 and an increase of $8.0 billion, or 69.00%, from September 30, 2012. Core deposits totaled $16.9 billion at September 30, 2013, an increase of $549.8 million, or 3.37%, from June 30, 2013 and an increase of $6.8 billion, or 67.60%, from September 30, 2012.

Shareholders' equity was $2.7 billion as of September 30, 2013 and June 30, 2013 and $1.6 billion as of September 30, 2012. The increases mainly reflect the addition of $928.3 million in equity from the Citizen acquisition. The Corporation maintained a strong capital position as tangible common equity to assets was 7.44% at September 30, 2013, compared with 7.61% at June 30, 2013 and 8.18% at September 30, 2012. The common cash dividend per share paid in the third quarter 2013 was $0.16.

Integration Update

The integration of Citizens into the Corporation continues to progress as scheduled. Professional consulting groups have been assisting the Corporation with the integration and accounting matters related to the transaction. Core operating systems were converted as of October 20, 2013.

One time merger related costs incurred through September 30, 2013 totaled approximately $72.1 million. Management expects a total of approximately $78.1 million in one time pre-tax merger related costs related to the Citizens acquisition.

Third 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 third 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: 79710266. A replay of the conference call will be available at approximately 2:00 p.m. (Eastern Time) on October 22, 2013 through November 5, 2013 by dialing (855) 859-2056, and entering the PIN: 79710266. 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.

Non-GAAP Measures: This news release contains financial information and performance measures determined by methods other than in accordance with accounting principles generally accepted in the United States of America ("GAAP"). The Corporation's management uses these "non-GAAP" measures in their analysis of the Corporation's performance and the efficiency of its operations. Management believes that these non-GAAP measures provide a greater understanding of ongoing operations of the Corporation and enhance comparability of results with prior periods, and facilitate investors' assessments of business and performance trends in comparison to others in the financial services industry. The Corporation believes that a meaningful analysis of its financial performance requires an understanding of the factors underlying that performance. The Corporation's management believes that investors may use these non-GAAP financial measures to analyze financial performance without the impact of unusual items that may obscure trends in the Corporation's underlying performance. These disclosures should not be viewed as a substitute for financial measures determined in accordance with GAAP, nor are they necessarily comparable to non-GAAP performance measures that may be presented by other companies.

About FirstMerit Corporation

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of approximately $24.1 billion as of September 30, 2013, and 412 banking offices and 440 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 quarter ended September 30, 2013 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 September 30, 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, 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
Analysts: Thomas O'Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075

FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights (a)
(Unaudited)								Quarters
(Dollars in thousands, except per share amounts)	2013			2013			2013			2012			2012
		3rd qtr			2nd qtr			1st qtr			4th qtr			3rd qtr
EARNINGS
Net interest income FTE (b)	$	207,079		$	201,605		$	114,376		$	119,130		$	120,741
FTE adjustment (b)	3,739			3,574			3,027			2,900			2,851
Provision for originated loan losses	2,523			3,151			5,808			7,116			9,965
Provision for acquired loan losses	2,033			—			—			—			—
Provision for covered loan losses	1,823			4,158			4,138			5,146			6,214
Other income	71,090			69,439			57,392			61,652			54,925
Other expenses	211,378			189,640			106,925			112,181			108,587
Net income	40,715			48,450			37,346			38,224			34,953
Diluted EPS (d)	0.23			0.29			0.33			0.35			0.32
PERFORMANCE RATIOS
Return on average assets (ROA)	0.67		%	0.85		%	1.01		%	1.03		%	0.94		%
Return on average equity (ROE)	6.07		%	7.56		%	8.83		%	9.30		%	8.60		%
Return on average tangible common equity (e)	9.29		%	11.49		%	12.76		%	13.01		%	12.10		%
Net interest margin FTE (b)	4.05		%	4.12		%	3.46		%	3.58		%	3.66		%
Efficiency ratio (f)	74.92		%	68.37		%	62.06		%	62.65		%	61.75		%
Number of full-time equivalent employees	4,666			4,619			2,767			2,738			2,733
MARKET DATA
Book value per share	$	16.08		$	16.06		$	15.99		$	15.00		$	14.82
Tangible book value per share (e)	$	10.51		10.47			10.83			10.75			10.56
Period-end common share market value	21.72			20.03			16.54			14.19			14.71
Market as a % of book	135		%	125		%	103		%	95		%	99		%
Cash dividends per common share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
Common stock dividend payout ratio	69.57		%	55.17		%	48.48		%	45.71		%	50.00		%
Average basic common shares	165,044			157,863			109,689			109,652			109,645
Average diluted common shares	168,917			157,982			109,689			109,652			109,645
Period end common shares	165,045			165,045			109,746			109,649			109,653
Common shares repurchased	7			168			26			12			6
Common stock market capitalization	$	3,584,777		$	3,305,851		$	1,815,199		$	1,555,919		$	1,612,996
ASSET QUALITY (excluding acquired and covered loans) (c)
Gross charge-offs	$	8,515		$	10,969		$	10,776		$	12,475		$	20,999
Net charge-offs	2,877			3,349			5,907			7,116			14,872
Allowance for originated loan losses	98,291			98,645			98,843			98,942			98,942
Reserve for unfunded lending commitments	8,493			8,114			4,941			5,433			5,760
Nonperforming assets (NPAs)	55,426			66,177			52,231			50,224			64,055
Net charge-offs to average loans ratio	0.12		%	0.15		%	0.27		%	0.34		%	0.72		%
Allowance for originated loan losses to period-end loans	1.00		%	1.08		%	1.13		%	1.13		%	1.19		%
Allowance for credit losses to period-end loans	1.09		%	1.17		%	1.18		%	1.20		%	1.26		%
NPAs to loans and other real estate	0.57		%	0.72		%	0.59		%	0.57		%	0.77		%
Allowance for originated loan losses to nonperforming loans	276.19		%	216.97		%	242.21		%	269.69		%	196.66		%
Allowance for credit losses to nonperforming loans	300.06		%	234.82		%	254.32		%	284.50		%	208.11		%
CAPITAL & LIQUIDITY
Period-end tangible common equity to assets (e)	7.44		%	7.61		%	8.03		%	8.16		%	8.18		%
Average equity to assets	11.08		%	11.28		%	11.45		%	11.12		%	10.97		%
Average equity to total loans	18.97		%	18.95		%	17.88		%	17.37		%	17.46		%
Average total loans to deposits	72.11		%	74.04		%	81.36		%	81.21		%	79.89		%
AVERAGE BALANCES
Assets	$	24,013,594		$	22,810,702		$	14,983,543		$	14,702,215		$	14,734,016
Deposits	19,456,231			18,334,244			11,789,784			11,595,085			11,591,931
Originated loans	9,377,826			8,877,754			8,735,307			8,444,208			8,185,507
Acquired loans, including covered loans, less loss share receivable	4,652,101			4,696,740			856,875			971,589			1,075,144
Earning assets	20,276,825			19,609,974			13,408,789			13,246,693			13,119,473
Shareholders' equity	2,661,546			2,571,964			1,715,005			1,635,275			1,616,569
ENDING BALANCES
Assets	$	24,134,986		$	23,532,129		$	15,272,484		$	14,913,012		$	14,628,843
Deposits	19,489,533			19,119,722			11,925,767			11,759,425			11,532,426
Originated loans	9,789,139			9,132,625			8,779,970			8,731,659			8,316,420
Acquired loans, including covered loans, less loss share receivable	4,410,041			4,935,218			801,239			905,391			1,043,058
Goodwill	734,883			734,883			460,044			460,044			460,044
Intangible assets	85,447			88,419			6,055			6,373			6,817
Earning assets	21,305,580			20,781,079			13,905,342			13,472,067			13,219,301
Total shareholders' equity	2,654,645			2,650,909			1,754,850			1,645,202			1,624,704
NOTES:

(a) - Effective April 12, 2013, the Corporation acquired Citizens. Citizens' assets and liabilities were included in the consolidated balance sheet on the date of acquisition at fair value. Citizens'

results of operations were included in the consolidated statements of comprehensive income beginning on the date of acquisition.

(b) - Net interest income on a fully tax-equivalent ("FTE") basis is a non-GAAP measure and restates interest on tax-exempt securities and loans as if such interest were subject to federal income tax at the statutory rate.

(c) - Due to the impact of business combination accounting and protection of FDIC loss sharing agreements, which provide considerable protection against credit risk, acquired loans and covered

assets are excluded from this table to provide for improved comparability to prior periods and better perspective into asset quality trends.

(d) - Net income used to determine diluted EPS was reduced by the cash dividends payable on the Corporation's 5.875% Non-Cumulative Perpetual Preferred Stock, Series A of approximately $1.5 million in each of the quarters ended September 30, 2013 and June 30, 2013 and $0.9 million in the quarter ended March 31, 2013.

(e) - Tangible common equity and related ratios are non-GAAP measures and exclude goodwill and other intangibles as well as preferred stock. Management uses these measures to assess the quality of capital and believes that investors may find them useful in their analysis of the Corporation.

(f) - The efficiency ratio excludes securities gains (losses).

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(Dollars in thousands)					September 30,		December 31,		September 30,
(Unaudited, except December 31, 2012, which is derived from the audited financial statements)				2013		2012		2012
ASSETS
	Cash and due from banks			$	505,228	$	244,223	$	201,359
	Interest-bearing deposits in banks			742,039		13,791		37,058
		Total cash and cash equivalents		1,247,267		258,014		238,417
	Investment securities:
		Held-to-maturity		2,749,934		622,121		620,631
		Available-for-sale		3,256,259		2,920,971		2,911,993
		Other investments		270,369		140,717		140,730
	Loans held for sale			17,813		23,683		17,540
	Loans			14,269,166		9,750,784		9,491,349
	Allowance for loan losses			(143,835)		(142,197)		(142,586)
	Net loans			14,125,331		9,608,587		9,348,763
	Premises and equipment, net			324,337		181,149		182,043
	Goodwill			734,883		460,044		460,044
	Intangible assets			85,447		6,373		6,817
	Covered other real estate			70,791		59,855		56,795
	Accrued interest receivable and other assets			1,252,555		631,498		645,070
			Total assets	$	24,134,986	$	14,913,012	$	14,628,843
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits:
		Noninterest-bearing		$	5,461,674	$	3,338,371	$	3,231,500
		Interest-bearing		2,815,681		1,287,674		1,079,913
		Savings and money market accounts		8,575,292		5,758,123		5,744,103
		Certificates and other time deposits		2,636,886		1,375,257		1,476,910
			Total deposits	19,489,533		11,759,425		11,532,426
		Federal funds purchased and securities sold under agreements to repurchase		1,049,801		1,104,525		963,455
		Wholesale borrowings		200,858		136,883		178,083
		Long-term debt		324,425		—		—
		Accrued taxes, expenses, and other liabilities		415,724		266,977		330,175
			Total liabilities	21,480,341		13,267,810		13,004,139
		Shareholders' equity:
			5.875% Non-Cumulative Perpetual Preferred Stock, Series A, without par value: authorized 115,000 shares; 100,000 issued	100,000		—		—
			Common stock warrant	3,000		—		—
			Common stock, without par value; authorized 300,000,000 shares; issued: September 30, 2013 - 170,179,305 shares; December 31, 2012 and September 30, 2012 - 115,121,731 shares	127,937		127,937		127,937
			Capital surplus	1,388,638		475,979		473,781
			Accumulated other comprehensive loss	(83,613)		(16,205)		(13,900)
			Retained earnings	1,248,554		1,195,850		1,175,001
			Treasury stock, at cost: September 30, 2013 - 5,134,681 shares; December 31, 2012 - 5,472,915 shares; September 30, 2012 - 5,468,853 shares	(129,871)		(138,359)		(138,115)
			Total shareholders' equity	2,654,645		1,645,202		1,624,704
			Total liabilities and shareholders' equity	$	24,134,986	$	14,913,012	$	14,628,843

FIRSTMERIT CORPORATION AND SUBSIDIARIES Period End Loans by Product Type (Unaudited) (Dollars in thousands)
		As of September 30, 2013
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	6,420,369	$	1,971,062	$	422,225	$	8,813,656
Mortgage	487,283		467,608		52,796		1,007,687
Installment	1,647,095		1,080,298		6,361		2,733,754
Home equity	889,372		306,783		102,908		1,299,063
Credit card	145,113		—		—		145,113
Leases	199,907		—		—		199,907
Subtotal	9,789,139		3,825,751		584,290		14,199,180
Loss share receivable	—		—		69,986		69,986
Total loans	9,789,139		3,825,751		654,276		14,269,166
Less allowance for loan losses	98,291		—		45,544		143,835
Net loans	$	9,690,848	$	3,825,751	$	608,732	$	14,125,331


		As of June 30, 2013
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,997,812	$	2,275,127	$	505,706	$	8,778,645
Mortgage	462,427		440,394		56,056		958,877
Installment	1,496,663		1,221,060		7,794		2,725,517
Home equity	845,051		322,111		106,970		1,274,132
Credit card	142,319		—		—		142,319
Leases	188,353		—		—		188,353
Subtotal	9,132,625		4,258,692		676,526		14,067,843
Loss share receivable	—		—		83,910		83,910
Total loans	9,132,625		4,258,692		760,436		14,151,753
Less allowance for loan losses	98,645		—		49,069		147,714
Net loans	$	9,033,980	$	4,258,692	$	711,367	$	14,004,039


		As of March 31, 2013
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,888,337	$	—	$	621,188	$	6,509,525
Mortgage	451,522		—		58,627		510,149
Installment	1,322,795		—		8,081		1,330,876
Home equity	812,458		—		113,343		925,801
Credit card	140,721		—		—		140,721
Leases	164,137		—		—		164,137
Subtotal	8,779,970		—		801,239		9,581,209
Loss share receivable	—		—		95,593		95,593
Total loans	8,779,970		—		896,832		9,676,802
Less allowance for loan losses	98,843		—		47,945		146,788
Net loans	$	8,681,127	$	—	$	848,887	$	9,530,014


		As of December 31, 2012
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	5,866,489		$	—	$	718,437	$	6,584,926
Mortgage	445,211		—		61,540		506,751
Installment	1,328,258		—		8,189		1,336,447
Home equity	806,078		—		117,225		923,303
Credit card	146,387		—		—		146,387
Leases	139,236		—		—		139,236
Subtotal	8,731,659		—		905,391		9,637,050
Loss share receivable	—		—		113,734		113,734
Total loans	8,731,659		—		1,019,125		9,750,784
Less allowance for loan losses	98,942		—		43,255		142,197
Net loans	$	8,632,717	$	—	$	975,870	$	9,608,587


		As of September 30, 2012
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,511,678	$	—	$	847,741	$	6,359,419
Mortgage	439,062		—		63,779		502,841
Installment	1,321,081		—		8,360		1,329,441
Home equity	789,743		—		123,178		912,921
Credit card	143,918		—		—		143,918
Leases	110,938		—		—		110,938
Subtotal	8,316,420		—		1,043,058		9,359,478
Loss share receivable	—		—		131,871		131,871
Total loans	8,316,420		—		1,174,929		9,491,349
Less allowance for loan losses	98,942		—		43,644		142,586
Net loans	$	8,217,478	$	—	$	1,131,285	$	9,348,763

(1) Loans assumed from Citizens. No allowance was brought forward on the date of acquisition in accordance with business combination accounting.
(2) Loans which are covered by loss sharing agreements with the FDIC providing considerable protection against credit risk.

FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
		Quarterly Periods
(Unaudited)		September 30,		June 30,		March 31,		December 31,		September 30,
(Dollars in thousands)	2013		2013		2013		2012		2012
ASSETS
Cash and due from banks	$	1,415,430	$	806,129	$	394,896	$	238,366	$	440,231
Investment securities:
Held-to-maturity	2,640,807		1,953,094		637,614		620,154		337,685
Available-for-sale	3,243,173		3,723,002		2,919,636		2,925,938		3,215,203
Other investments	267,743		253,649		140,729		140,723		140,736
Loans held for sale	18,265		17,394		14,884		20,485		23,631
Loans	14,106,837		13,662,835		9,695,926		9,539,393		9,402,218
Less: allowance for loan losses	146,509		146,705		141,735		141,270		145,061
Net loans	13,960,328		13,516,130		9,554,191		9,398,123		9,257,157
Total earning assets	20,276,825		19,609,974		13,408,789		13,246,693		13,119,473
Premises and equipment, net	322,236		299,979		179,381		181,738		184,544
Accrued interest receivable and other assets	2,145,612		2,241,325		1,142,212		1,176,688		1,134,829
TOTAL ASSETS	$	24,013,594	$	22,810,702	$	14,983,543	$	14,702,215	$	14,734,016
LIABILITIES
Deposits:
Noninterest-bearing	$	5,443,800	$	5,095,977	$	3,321,660	$	3,306,444	$	3,236,703
Interest-bearing	2,720,592		2,347,155		1,300,816		1,122,796		1,080,841
Savings and money market accounts	8,570,910		8,210,780		5,835,750		5,743,599		5,746,210
Certificates and other time deposits	2,720,929		2,680,332		1,331,558		1,422,246		1,528,177
Total deposits	19,456,231		18,334,244		11,789,784		11,595,085		11,591,931
Federal funds purchased and securities sold under
agreements to repurchase	1,011,991		927,451		906,717		957,564		1,032,401
Wholesale borrowings	201,012		237,887		136,298		163,405		178,022
Long-term borrowings	324,424		314,597		155,506		—		—
Total funds	20,993,658		19,814,179		12,988,305		12,716,054		12,802,354
Accrued taxes, expenses and other liabilities	358,390		424,559		280,233		350,886		315,093
Total liabilities	21,352,048		20,238,738		13,268,538		13,066,940		13,117,447
SHAREHOLDERS' EQUITY
Preferred stock	100,000		100,000		62,222		—		—
Common stock warrant	3,000		2,637		—		—		—
Common stock	127,937		127,937		127,937		127,937		127,937
Capital surplus	1,386,931		1,274,758		473,943		474,532		472,820
Accumulated other comprehensive income (loss)	(82,598)		(29,033)		(21,247)		(17,666)		(14,627)
Retained earnings	1,256,052		1,225,380		1,209,837		1,188,641		1,168,649
Treasury stock	(129,776)		(129,715)		(137,687)		(138,169)		(138,210)
Total shareholders' equity	2,661,546		2,571,964		1,715,005		1,635,275		1,616,569
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	24,013,594	$	22,810,702	$	14,983,543	$	14,702,215	$	14,734,016

FIRSTMERIT CORPORATION AND SUBSIDIARIES Average Loans by Product Type (Unaudited) (Dollars in thousands)
		Quarter ended September 30, 2013
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	6,131,423	$	2,118,803	$	460,242	$	8,710,468
Mortgage	472,281		448,206		54,403		974,890
Installment	1,570,124		1,145,824		7,180		2,723,128
Home equity	866,001		312,681		104,762		1,283,444
Credit card	143,637		—		—		143,637
Leases	194,360		—		—		194,360
Subtotal	9,377,826		4,025,514		626,587		14,029,927
Loss share receivable	—		—		76,910		76,910
Total loans	9,377,826		4,025,514		703,497		14,106,837
Less allowance for loan losses	97,693		68		48,748		146,509
Net loans	$	9,280,133	$	4,025,446	$	654,749	$	13,960,328


		Quarter ended June 30, 2013
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,888,935	$	2,141,015	$	575,859	$	8,605,809
Mortgage	453,813		408,723		56,825		919,361
Installment	1,388,765		1,107,076		7,912		2,503,753
Home equity	831,243		288,254		111,076		1,230,573
Credit card	141,785		—		—		141,785
Leases	173,213		—		—		173,213
Subtotal	8,877,754		3,945,068		751,672		13,574,494
Loss share receivable	—		—		88,341		88,341
Total loans	8,877,754		3,945,068		840,013		13,662,835
Less allowance for loan losses	99,411		—		47,294		146,705
Net loans	$	8,778,343	$	3,945,068	$	792,719	$	13,516,130


		Quarter Ended March 31, 2013
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,859,818	$	—	$	673,815	$	6,533,633
Mortgage	448,589		—		60,391		508,980
Installment	1,325,016		—		8,118		1,333,134
Home equity	806,936		—		114,551		921,487
Credit card	144,159		—		—		144,159
Leases	150,789		—		—		150,789
Subtotal	8,735,307		—		856,875		9,592,182
Loss share receivable	—		—		103,744		103,744
Total loans	8,735,307		—		960,619		9,695,926
Less allowance for loan losses	98,660		—		43,075		141,735
Net loans	$	8,636,647	$	—	$	917,544	$	9,554,191


		Quarter Ended December 31, 2012
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,600,522	$	—	$	780,904	$	6,381,426
Mortgage	443,542		—		62,382		505,924
Installment	1,331,131		—		8,251		1,339,382
Home equity	798,663		—		120,052		918,715
Credit card	145,050		—		—		145,050
Leases	125,300		—		—		125,300
Subtotal	8,444,208		—		971,589		9,415,797
Loss share receivable	—		—		123,596		123,596
Total loans	8,444,208		—		1,095,185		9,539,393
Less allowance for loan losses	99,461		—		41,809		141,270
Net loans	$	8,344,747	$	—	$	1,053,376	$	9,398,123


		Quarter ended September 30, 2012
		Originated Loans		Acquired Loans ⁽¹⁾		Covered Loans ⁽²⁾		Total Loans
Commercial	$	5,443,712	$	—	$	877,003	$	6,320,715
Mortgage	437,123		—		64,382		501,505
Installment	1,293,054		—		8,388		1,301,442
Home equity	779,087		—		125,371		904,458
Credit card	143,948		—		—		143,948
Leases	88,583		—		—		88,583
Subtotal	8,185,507		—		1,075,144		9,260,651
Loss share receivable	—		—		141,567		141,567
Total loans	8,185,507		—		1,216,711		9,402,218
Less allowance for loan losses	103,511		—		41,550		145,061
Net loans	$	8,081,996	$	—	$	1,175,161	$	9,257,157

(1) Loans assumed from Citizens. No allowance was brought forward on the date of acquisition in accordance with business combination accounting.
(2) Loans which are covered by loss sharing agreements with the FDIC providing considerable protection against credit risk.

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
		September 30, 2013						June 30, 2013						September 30, 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	$	1,415,430					$	806,129					$	440,231
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	4,849,135		$	23,551	1.93	%	4,714,823		$	24,679	2.10	%	2,688,658		$	17,981	2.66	%
Obligations of states and political subdivisions (tax exempt)	712,296		8,890		4.95	%	710,579		9,217		5.20	%	660,143		6,332		3.82	%
Other securities and federal funds sold	590,292		6,215		4.18	%	504,343		4,459		3.55	%	344,823		2,652		3.06	%
Total investment securities and federal funds sold	6,151,723		38,656		2.49	%	5,929,745		38,355		2.59	%	3,693,624		26,965		2.90	%
Loans held for sale	18,265		174		3.78	%	17,394		143		3.30	%	23,631		240		4.04	%
Loans, including loss share receivable	14,106,837		182,406		5.13	%	13,662,835		178,847		5.25	%	9,402,218		103,128		4.36	%
Total earning assets	20,276,825		221,236		4.33	%	19,609,974		217,345		4.45	%	13,119,473		130,333		3.95	%
Allowance for loan losses	(146,509)						(146,705)						(145,061)
Other assets	2,467,848						2,541,304						1,319,373
Total assets	$	24,013,594					$	22,810,702					$	14,734,016
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	5,443,800	—		—	%	$	5,095,977	—		—	%	$	3,236,703	—		—	%
Interest-bearing	2,720,592		809		0.12	%	2,347,155		656		0.11	%	1,080,841		243		0.09	%
Savings and money market accounts	8,570,910		6,495		0.30	%	8,210,780		6,469		0.32	%	5,746,210		5,166		0.36	%
Certificates and other time deposits	2,720,929		1,712		0.25	%	2,680,332		3,374		0.50	%	1,528,177		2,743		0.71	%
Total deposits	19,456,231		9,016		0.18	%	18,334,244		10,499		0.23	%	11,591,931		8,152		0.28	%
Securities sold under agreements to repurchase	1,011,991		306		0.12	%	927,451		329		0.14	%	1,032,401		310		0.12	%
Wholesale borrowings	201,012		936		1.85	%	237,887		1,169		1.97	%	178,022		1,130		2.53	%
Long-term debt	324,424		3,899		4.77	%	314,597		3,743		4.77	%	—		—		—	%
Total interest bearing liabilities	15,549,858		14,157		0.36	%	14,718,202		15,740		0.43	%	9,565,651		9,592		0.40	%
Other liabilities	358,390						424,559						315,093
Shareholders' equity	2,661,546						2,571,964						1,616,569
Total liabilities and shareholders' equity	$	24,013,594					$	22,810,702					$	14,734,016
Net yield on earning assets	$	20,276,825	$	207,079	4.05	%	$	19,609,974	$	201,605	4.12	%	$	13,119,473	$	120,741	3.66	%
Interest rate spread					3.97	%					4.02	%					3.55	%

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 AND SUBIDARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Fully Tax-equivalent Interest Rates and Interest Differential

		Nine months ended						Nine months ended
		September 30, 2013						September 30, 2012
(Unaudited)		Average			Average			Average			Average
(Dollars in thousands)		Balance		Interest	Rate			Balance		Interest	Rate
ASSETS
Cash and due from banks	$	875,890					$	409,944
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	4,125,541		$	64,525	2.09	%	2,797,521		$	56,688	2.71	%
Obligations of states and political subdivisions (tax exempt)	655,257		24,702		5.04	%	526,962		18,450		4.68	%
Other securities and federal funds sold	488,005		13,618		3.73	%	369,639		8,146		2.94	%
Total investment securities and federal funds sold	5,268,803		102,845		2.61	%	3,694,122		83,284		3.01	%
Loans held for sale	16,860		461		3.66	%	24,279		761		4.19	%
Loans, including loss share receivable	12,504,632		460,257		4.92	%	9,295,866		309,530		4.45	%
Total earning assets	17,790,295		563,563		4.24	%	13,014,267		393,575		4.04	%
Allowance for loan losses	(144,954)						(143,756)
Other assets	2,111,427						1,316,071
Total assets	$	20,632,658					$	14,596,526
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	4,628,252	—		—	%	$	3,139,515	—		—	%
Interest-bearing	2,128,055		1,784		0.11	%	1,069,290		726		0.09	%
Savings and money market accounts	7,549,165		18,279		0.32	%	5,717,860		15,302		0.36	%
Certificates and other time deposits	2,249,362		7,149		0.42	%	1,613,270		9,436		0.78	%
Total deposits	16,554,834		27,212		0.22	%	11,539,935		25,464		0.29	%
Securities sold under agreements to repurchase	949,105		949		0.13	%	947,135		854		0.12	%
Wholesale borrowings	191,970		2,955		2.06	%	180,215		3,399		2.52	%
Long-term debt	265,461		9,390		4.73	%	—		—		—	%
Total interest bearing liabilities	13,333,118		40,506		0.41	%	9,527,770		29,717		0.42	%
Other liabilities	351,650						330,254
Shareholders' equity	2,319,638						1,598,987
Total liabilities and shareholders' equity	$	20,632,658					$	14,596,526
Net yield on earning assets	$	17,790,295	$	523,057	3.93	%	$	13,014,267	$	363,858	3.73	%
Interest rate spread					3.83	%					3.62	%

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 AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)					Quarters Ended				Nine Months Ended
(Dollars in thousands except per share data)					September 30,				September 30,
				2013		2012		2013		2012
Interest income:
	Loans and loans held for sale			$	182,107	$	103,005	$	459,313	$	309,213
	Investment securities:
		Taxable		29,766		20,633		78,143		64,834
		Tax-exempt		5,624		3,844		15,767		11,270
		Total investment securities interest		35,390		24,477		93,910		76,104
			Total interest income	217,497		127,482		553,223		385,317
Interest expense:
	Deposits:
		Interest-bearing		809		243		1,784		726
		Savings and money market accounts		6,495		5,166		18,279		15,302
		Certificates and other time deposits		1,712		2,743		7,149		9,436
	Securities sold under agreements to repurchase			306		310		949		854
	Wholesale borrowings			936		1,130		2,955		3,399
	Long-term debt			3,899		—		9,390		—
		Total interest expense		14,157		9,592		40,506		29,717
		Net interest income		203,340		117,890		512,717		355,600
Provision for originated loan losses				2,523		9,965		11,482		26,860
Provision for acquired loan losses				2,033		—		2,033		—
Provision for covered loan losses				1,823		6,214		10,119		15,576
		Total provision		6,379		16,179		23,634		42,436
		Net interest income after provision for loan losses		196,961		101,711		489,083		313,164
Other income:
	Trust department income			9,608		6,124		24,515		17,481
	Service charges on deposits			22,146		14,603		55,315		43,490
	Credit card fees			13,588		11,006		38,128		32,402
	ATM and other service fees			5,216		3,680		13,496		11,360
	Bank owned life insurance income			4,351		3,094		12,889		9,073
	Investment services and insurance			3,403		2,208		9,247		6,843
	Investment securities (losses)/gains, net			—		553		(2,803)		1,361
	Loan sales and servicing income			3,644		7,255		19,492		19,085
	Other operating income			9,134		6,402		27,644		20,857
		Total other income		71,090		54,925		197,923		161,952
Other expenses:
	Salaries, wages, pension and employee benefits			97,390		58,061		260,395		183,632
	Net occupancy expense			13,816		8,077		35,444		24,640
	Equipment expense			11,040		7,143		28,698		21,845
	Stationery, supplies and postage			3,801		2,210		9,304		6,638
	Bankcard, loan processing and other costs			40,786		8,424		61,043		24,935
	Professional services			9,768		4,702		32,322		17,361
	Amortization of intangibles			2,972		456		5,700		1,422
	FDIC insurance expense			4,925		1,832		12,601		9,015
	Other operating expense			26,880		17,682		62,436		51,944
		Total other expenses		211,378		108,587		507,943		341,432
			Income before income tax expense	56,673		48,049		179,063		133,684
Income tax expense				15,958		13,096		52,553		37,802
			Net income	$	40,715	$	34,953	$	126,510	$	95,882
Other comprehensive income, net of taxes
	Changes in unrealized securities' holding gains and (losses), net of taxes of ($6.3) million and $2.4 million for the quarter ended and ($36.3) million and $5.4 million for the nine months ended, respectively			$	(11,716)	$	4,884	$	(69,229)	$	10,872
	Reclassification for realized securities' (gains) and losses, net of taxes of ($0.0) million and $0.19 million for the quarter ended and ($0.98)million and $0.48 million for the nine months ended, respectively			—		(359)		1,822		(885)
	Total other comprehensive gain (loss), net of taxes				(11,716)		4,525		(67,407)		9,987
		Comprehensive income		$	28,999	$	39,478	$	59,103	$	105,869
	Net income attributable to common shareholders			$	38,937	$	34,797	$	121,544	$	95,795
	Net income used in diluted EPS calculation			$	38,939	$	34,797	$	121,549	$	95,795
Weighted average number of common shares outstanding - basic				165,044		109,645		144,402		109,473
Weighted average number of common shares outstanding - diluted				168,917		109,645		147,342		109,473
Basic earnings per common share				$	0.24	$	0.32	$	0.84	$	0.88
Diluted earnings per common share				$	0.23	$	0.32	$	0.82	$	0.88
Dividend per common share				$	0.16	$	0.16	$	0.48	$	0.48

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

		Quarterly Results
(Unaudited)	2013			2013			2013			2012			2012
(Dollars in thousands, except share data)		3rd qtr			2nd qtr			1st qtr			4th qtr			3rd qtr
Loans and loans held for sale	$	182,107		$	178,535		$	98,672		$	101,086		$	103,005
Investment securities	35,390			35,236			23,284			24,280			24,477
Total interest income	217,497			213,771			121,956			125,366			127,482
Interest on deposits:
Interest-bearing	809			656			318			261			243
Savings and money market accounts	6,495			6,469			5,315			5,261			5,166
Certificates and other time deposits	1,712			3,374			2,063			2,287			2,743
Securities sold under agreements to repurchase	306			329			313			303			310
Wholesale borrowings	936		1,169			850			1,024			1,130
Long-term debt	3,899			3,743			1,748			—			—
Total interest expense	14,157			15,740			10,607			9,136			9,592
Net interest income	203,340			198,031			111,349			116,230			117,890
Provision for originated loan losses	2,523			3,151			5,808			7,116			9,965
Provision for acquired loan losses	2,033			—			—			—			—
Provision for covered loan losses	1,823			4,158			4,138			5,146			6,214
Total provision for loan losses	6,379			7,309			9,946			12,262			16,179
Net interest income after provision for loan losses	196,961			190,722			101,403			103,968			101,711
Other income:
Trust department income	9,608			9,167			5,741			5,662			6,124
Service charges on deposits	22,146			20,582			12,585			14,247			14,603
Credit card fees	13,588			14,317			10,222			11,167			11,006
ATM and other service fees	5,216			4,945			3,335			3,432			3,680
Bank owned life insurance income	4,351			3,641			4,897			3,067			3,094
Investment services and insurance	3,403			3,429			2,415			2,147			2,208
Investment securities (losses)/gains, net	—			(2,794)			(9)			2,425			553
Loan sales and servicing income	3,644			7,985			7,863			7,946			7,255
Other operating income	9,134			8,167			10,343			11,559			6,402
Total other income	71,090			69,439			57,392			61,652			54,925
Other expenses:
Salaries, wages, pension and employee benefits	97,390			105,099			57,906			61,560			58,061
Net occupancy expense	13,816			13,346			8,282			7,114			8,077
Equipment expense	11,040			10,309			7,349			7,398			7,143
Stationery, supplies and postage	3,801			3,407			2,096			2,162			2,210
Bankcard, loan processing and other costs	40,786			12,417			7,840			9,260			8,424
Professional services	9,768			17,144			5,410			6,119			4,702
Amortization of intangibles	2,972			2,411			317			444			456
FDIC insurance expense	4,925			4,149			3,526			1,738			1,832
Other operating expense	26,880			21,358			14,199			16,386			17,682
Total other expenses	211,378			189,640			106,925			112,181			108,587
Income before income tax expense	56,673			70,521			51,870			53,439			48,049
Income taxes	15,958			22,071			14,524			15,215			13,096
Net income	40,715			48,450			37,346			38,224			34,953
Other comprehensive income (loss), net of taxes	(11,716)			(47,777)			(7,914)			(2,305)			4,525
Comprehensive income	$	28,999		$	673		$	29,432		$	35,919		$	39,478
Net income attributable to common shareholders	$	38,937		$	46,597		$	36,125		$	38,041		$	34,797
Net income used in diluted EPS calculation	$	38,939		$	46,597		$	36,125		$	38,041		$	34,797
Weighted-average common shares - basic	165,044			157,863			109,689			109,652			109,645
Weighted-average common shares - diluted	168,917			157,982			109,689			109,652			109,645
Basic earnings per common share	$	0.24		$	0.30		$	0.33		$	0.35		$	0.32
Diluted earnings per common share	$	0.23		$	0.29		$	0.33		$	0.35		$	0.32

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION (excluding acquired loans and covered assets) (a)


		(Unaudited)															(Audited)
(Dollars in thousands, except ratios)		Quarterly Periods															Annual Period
		September 30,			June 30,			March 31,			December 31,			September 30,			December 31,
Allowance for Credit Losses	2013			2013			2013			2012			2012			2012
Allowance for originated loan losses, beginning of period	$	98,645		$	98,843		$	98,942		$	98,942		$	103,849		$	107,699
Provision for originated loan losses	2,523			3,151			5,808			7,116			9,965			33,976
Charge-offs	8,515			10,969			10,776			12,475			20,999			65,905
Recoveries	5,638			7,620			4,869			5,359			6,127			23,172
Net charge-offs	2,877			3,349			5,907			7,116			14,872			42,733
Allowance for originated loan losses, end of period	$	98,291		$	98,645		$	98,843		$	98,942		$	98,942		$	98,942
Reserve for unfunded lending commitments,
beginning of period	$	8,114		$	4,941		$	5,433		$	5,760		$	5,666		$	6,373
Provision for (relief of) credit losses	379			3,173			(492)			(327)			94			(940)
Reserve for unfunded lending commitments,
end of period	$	8,493		$	8,114		$	4,941		$	5,433		$	5,760		$	5,433
Allowance for Credit Losses	$	106,784		$	106,759		$	103,784		$	104,375		$	104,702		$	104,375
Ratios
Provision for loan losses to average loans	0.11		%	0.14		%	0.27		%	0.34		%	0.48		%	0.42		%
Provision for credit losses as a % of average loans	0.00		%	0.00		%	0.03		%	(0.08)%			(0.10)%			0.05		%
Net charge-offs to average loans	0.12		%	0.15		%	0.27		%	0.34		%	0.72		%	0.53		%
Allowance for loan losses to period-end loans	1.00		%	1.08		%	1.13		%	1.13		%	1.19		%	1.13		%
Allowance for credit losses to period-end loans	1.09		%	1.17		%	1.18		%	1.20		%	1.26		%	1.20		%
Allowance for loan losses to nonperforming loans	276.19		%	216.97		%	242.21		%	269.69		%	196.66		%	269.69		%
Allowance for credit losses to nonperforming loans	300.06		%	234.82		%	254.32		%	284.50		%	208.11		%	284.50		%
Asset Quality
Impaired originated loans:
Nonaccrual	$	19,140		$	28,935		$	23,843		$	21,766		$	31,492		$	21,766
Other nonperforming loans:
Nonaccrual	16,448			16,529			16,966			14,921			18,819			14,921
Total nonperforming loans	35,588			45,464			40,809			36,687			50,311			36,687
Other real estate ("ORE")	19,838			20,713			11,422			13,537			13,744.00			13,537
Total nonperforming assets ("NPAs")	$	55,426		$	66,177		$	52,231		$	50,224		$	64,055		$	50,224
NPAs to period-end loans + ORE	0.57		%	0.72		%	0.59		%	0.57		%	0.77		%	0.57		%
Accruing originated loans past due 90 days or more	$	6,253		$	11,760		$	12,393		$	9,417		$	9,691		$	9,417
(a) Due to the impact of business combination accounting and protection of FDIC loss sharing agreements, which provide considerable protection against credit risk, acquired and covered loans are excluded from this table to provide for improved comparability to prior periods and better perspective into asset quality trends.

FIRSTMERIT CORPORATION AND SUBSIDIARIES
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL

(Unaudited)
(Dollars in thousands)
	2013		2013		2013		2012		2012
QUARTERLY OTHER INCOME DETAIL		3rd qtr		2nd qtr		1st qtr		4th qtr		3rd qtr
Trust department income	$	9,608	$	9,167	$	5,741	$	5,662	$	6,124
Service charges on deposits	22,146		20,582		12,585		14,247		14,603
Credit card fees	13,588		14,317		10,222		11,167		11,006
ATM and other service fees	5,216		4,945		3,335		3,432		3,680
Bank owned life insurance income	4,351		3,641		4,897		3,067		3,094
Investment services and insurance	3,403		3,429		2,415		2,147		2,208
Investment securities (losses)/gains, net	—		(2,794)		(9)		2,425		553
Loan sales and servicing income	3,644		7,985		7,863		7,946		7,255
Other operating income	9,134		8,167		10,343		11,559		6,402
Total Other Income	$	71,090	$	69,439	$	57,392	$	61,652	$	54,925
	2013		2013		2013		2012		2012
QUARTERLY OTHER EXPENSES DETAIL		3rd qtr		2nd qtr		1st qtr		4th qtr		3rd qtr
Salaries and wages	$	79,369	$	85,680	$	46,391	$	45,988	$	43,806
Pension and employee benefits	18,021		19,419		11,515		15,572		14,255
Net occupancy expense	13,816		13,346		8,282		7,114		8,077
Equipment expense	11,040		10,309		7,349		7,398		7,143
Taxes, other than income taxes	2,785		2,891		1,922		1,924		2,051
Stationery, supplies and postage	3,801		3,407		2,096		2,162		2,210
Bankcard, loan processing and other costs	40,786		12,417		7,840		9,260		8,424
Advertising	4,432		3,745		2,070		2,774		2,472
Professional services	9,768		17,144		5,410		6,119		4,702
Telephone	3,326		2,728		1,177		1,230		1,316
Amortization of intangibles	2,972		2,411		317		444		456
FDIC insurance expense	4,925		4,149		3,526		1,738		1,832
Other operating expense	16,337		11,994		9,030		10,458		11,843
Total Other Expenses	$	211,378	$	189,640	$	106,925	$	112,181	$	108,587

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR ORIGINATED LOAN LOSSES - Net Charge-off Detail (excluding acquired and covered loans) (a)

(Unaudited)		Quarters ended						Nine months ended						Year ended
(Dollars in thousands)		September 30,						September 30,						December 31,
	2013			2012			2013			2012			2012
Allowance for originated loan losses - beginning of period	$	98,645		$	103,849		$	98,942		$	107,699		$	107,699
Loans charged off:
Commercial	1,222.00			9,627			6,644.00			23,567			28,648
Mortgage	501.00			1,691			1,185.00			3,431			3,964
Installment	3,582.00			5,507			11,788.00			14,441			18,029
Home equity	1,396.00			2,319			3,835.00			6,108			7,249
Credit cards	1,367			1,390			4,229			4,618			6,171
Leases	—			—			1,237.00			—			144
Overdrafts	447.00			465			1,342.00			1,265			1,700
Total	8,515			20,999			30,260			53,430			65,905
Recoveries:
Commercial	1,724.00			1,649			6,731.00			4,309			5,626
Mortgage	39.00			100			133.00			191			235
Installment	2,613.00			2,870			7,810.00			9,054			11,635
Home equity	704.00			856			1,537.00			2,094			2,819
Credit cards	438.00			488			1,420.00			1,583			2,138
Manufactured housing	11.00			13			49.00			50			59
Leases	11.00			—			100.00			38			38
Overdrafts	98.00			151			347.00			494			622
Total	5,638			6,127			18,127			17,813			23,172
Net charge-offs	2,877			14,872			12,133			35,617			42,733
Provision for originated loan losses	2,523			9,965			11,482			26,860			33,976
Allowance for originated loan losses-end of period	$	98,291		$	98,942		$	98,291		$	98,942		$	98,942

Average originated loans	$	9,377,826		$	8,185,507		$	8,999,316		$	7,970,157		$	8,089,317
Ratio to average originated loans:
(Annualized) originated net charge-offs	0.12		%	0.72		%	0.18		%	0.60		%	0.53		%
Provision for originated loan losses	0.11		%	0.48		%	0.17		%	0.45		%	0.42		%
Originated Loans, period-end	$	9,789,139		$	8,316,420		$	9,789,139		$	8,316,420		$	8,731,659

Allowance for credit losses:	$	106,784		$	104,702		$	106,784		$	104,702		$	104,375
To (annualized) net charge-offs	9.36			1.77			6.58			2.20			2.44
Allowance for originated loan losses:
To period-end originated loans	1.00		%	1.19		%	1.00		%	1.19		%	1.13		%
To (annualized) net originated charge-offs	8.61			1.67			6.06			2.08			2.32

(a) Due to the impact of business combination accounting and protection of FDIC loss sharing agreements, which provide considerable protection against credit risk, acquired and covered loans are excluded from this table to provide for improved comparability to prior periods and better perspective into asset quality trends.