FirstMerit Reports Second Quarter 2016 EPS of $0.34 Per Share

Share Name	Share Symbol	Market	Type
Firstmerit Corp. (MM)	NASDAQ:FMER	NASDAQ	Common Stock

	Price Change	% Change	Share Price	Bid Price	Offer Price	High Price	Low Price	Open Price	Shares Traded	Last Trade
	0.00	0.00%	21.61	21.77	199,999.99				0	00:00:00

Firstmerit (NASDAQ:FMER)
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AKRON, Ohio, July 26, 2016 /PRNewswire/ --

Quarterly Highlights include:

Profitability sustained: 69^th consecutive quarter of profitability
Integration activities progress: Planned merger with Huntington Bancshares Incorporated ("Huntington") on schedule; merger-related costs of $2.5 million
Strategic branch consolidations: $4.1 million nonmerger-related real estate write-downs primarily due to 9 branch consolidations
Loan growth continued: Total loan growth of $118.2 million, or 0.73% from the prior quarter
Credit quality remained solid: Net charge-offs to average originated loans of 0.13%
Balance sheet remained strong: Strong common equity ratio (GAAP) 11.27% and tangible common equity ratio (non-GAAP)¹ at 8.48%

FirstMerit Corporation (Nasdaq: FMER) (the "Corporation") reported second quarter 2016 net income of $58.3 million, or $0.34 per diluted share. Excluding merger-related charges and nonmerger-related real estate write-downs primarily due to branch consolidations of $6.6 million, or $4.3 million after tax, EPS was $0.36¹ per diluted share. This compares with $54.1 million, or $0.31 per diluted share, for the first quarter 2016 and $56.6 million, or $0.33 per diluted share, for the second quarter 2015.

FirstMerit Corporation. (PRNewsFoto/FirstMerit Corporation)

On June 13, 2016, the respective shareholders of Huntington and FirstMerit approved the proposed merger of FirstMerit into Huntington during special meetings held in Akron, Ohio by FirstMerit and in Columbus, Ohio by Huntington.

"FirstMerit's results in the second quarter of 2016 reflect the hard work and dedication of our employees across the organization. We continue to focus on our up coming merger with Huntington and expect to close in the third quarter, as planned, creating one of the strongest regional banks in the country," said Paul G. Greig, Chairman, President and CEO, FirstMerit Corporation.

¹ - See Non-GAAP Financial Measures section of this release for a reconciliation to financial measures as defined by GAAP.

Earnings Summary


										Change 2Q 2016 vs.
	2016			2016			2015			2016		2015
(Dollars in thousands, except per share amounts)	2nd qtr			1st qtr			2nd qtr			1st qtr		2nd qtr
Net interest income TE ¹	$	189,897		$	189,115		$	189,018		0.41	%	0.47	%
Diluted earnings per common share	0.34			0.31			0.33			9.68		3.03
Net interest margin on TE basis¹	3.30		%	3.32		%	3.39		%
Return on average assets	0.90			0.84			0.90
Return on average common equity (GAAP)	7.79			7.33			7.85
Return on average tangible common equity (non-GAAP) ¹	11.10			10.52			11.44

Net Interest Margin

The net interest margin on a TE basis decreased two basis points compared with the prior quarter, due to the amortization of higher yielding covered and acquired loans offset by higher balances and higher yields on originated loans. During the second quarter 2016, the yield on originated loans increased three basis points compared with the prior quarter. At June 30, 2016, 81% of the Corporation's commercial loan portfolio is variable or floating rate and will support margin expansion in a rising rate environment. Yields in acquired and FDIC acquired loans decreased compared with the prior quarter, while yields on interest-bearing liabilities remained consistent with the prior quarter.

Loans

Average originated loans were $14.5 billion during the second quarter 2016, an increase of $302.1 million, or 2.13%, compared with the first quarter 2016, and an increase of $1.4 billion, or 10.67%, compared with the second quarter 2015. Originated loans grew in both the commercial and consumer portfolios across the footprint, predominantly in Michigan and Chicago as we continue to penetrate those markets. Average originated commercial loans increased $65.6 million, or 0.73%, compared with the prior quarter, and increased $573.2 million, or 6.74%, compared with the year-ago quarter. Average originated installment loans increased $206.0 million, or 6.76%, compared with the prior quarter, and increased $635.4 million, or 24.27%, compared with the year-ago quarter.

Deposits

Average deposits were $21.0 billion during the second quarter 2016, an increase of $331.8 million, or 1.61%, compared with the first quarter 2016, and an increase of $1.3 billion, or 6.53%, compared with the second quarter 2015. Average core deposits were $18.9 billion during the second quarter 2016, or 89.95% of total average deposits, an increase of $428.6 million, or 2.33%, compared with the first quarter 2016 and an increase of $1.5 billion, or 8.44%, compared with the second quarter 2015. Deposit growth continued to be strong, reflecting seasonality and increased balances across the footprint. Despite decreases in short-term interest rates, deposit costs remained unchanged from the prior quarter.

¹ - See Non-GAAP Financial Measures section of this release for a reconciliation to financial measures as defined by GAAP.

Noninterest Income


										Change 2Q 2016 vs.
	2016			2016			2015			2016		2015
(Dollars in thousands)	2nd qtr			1st qtr			2nd qtr			1st qtr		2nd qtr
Trust department income	$	11,167		$	10,284		$	10,820		8.59	%	3.21	%
Service charges on deposits	16,263			15,586			16,704			4.34		(2.64)
Credit card fees	14,942			13,578			14,124			10.05		5.79
ATM and other service fees	6,427			6,234			6,345			3.10		1.29
Bank owned life insurance income	4,186			3,696			3,697			13.26		13.23
Investment services and insurance	3,851			3,905			3,871			(1.38)		(0.52)
Investment securities gains/(losses), net	2,164			295			567			633.56		281.66
Loan sales and servicing income	1,995			1,852			3,276			7.72		(39.10)
Other operating income	4,120			11,964			7,178			(65.56)		(42.60)
Total noninterest income	$	65,115		$	67,394		$	66,582		(3.38)%		(2.20)%

Noninterest income, excluding net securities gains, as a percentage of net revenue¹	24.90		%	26.19		%	25.88		%

Noninterest income, excluding gains and losses on securities transactions¹, for the second quarter 2016 was $63.0 million, a decrease of $4.1 million, or 6.18%, from the first quarter 2016 and a decrease of $3.1 million, or 4.64%, from the second quarter 2015. The decrease in noninterest income as a percentage of net revenue in the second quarter of 2016 compared with the first quarter of 2016 and first quarter of 2015 reflects $4.1 million of nonmerger-related real estate write-downs primarily due to branch consolidations, or $2.7 million of costs after tax expense which are included in Other operating income.

¹ - See Non-GAAP Financial Measures section of this release for a reconciliation to financial measures as defined by GAAP.

Noninterest Expense


										Change 2Q 2016 vs.
	2016			2016			2015			2016	2015
(Dollars in thousands)	2nd qtr			1st qtr			2nd qtr			1st qtr	2nd qtr
Salaries and wages	$	68,752		$	69,410		$	67,485		(0.95)%	1.88	%
Pension and employee benefits	18,037			16,470			18,535			9.51	(2.69)
Net occupancy expense	13,466			14,774			13,727			(8.85)	(1.90)
Equipment expense	12,078			12,408			12,592			(2.66)	(4.08)
Taxes, other than federal income taxes	1,922			2,031			2,032			(5.37)	(5.41)
Stationary, supplies and postage	2,945			3,619			3,370			(18.62)	(12.61)
Bankcard, loan processing and other costs	12,269			11,008			12,461			11.46	(1.54)
Advertising	3,685			3,260			3,103			13.04	18.76
Professional services	4,467			8,351			5,358			(46.51)	(16.63)
Telephone	2,115			2,424			2,599			(12.75)	(18.62)
Amortization of intangibles	2,304			2,304			2,598			—	(11.32)
FDIC expense	5,192			5,445			5,077			(4.65)	2.27
Other operating expenses	13,088			15,459			12,737			(15.34)	2.76
Total noninterest expense	$	160,320		$	166,963		$	161,674		(3.98)%	(0.84)%

Efficiency ratio¹	62.49		%	64.27		%	62.37		%

Noninterest expense for the second quarter 2016 was $160.3 million, a decrease of $6.6 million, or 3.98%, from the first quarter 2016, and a decrease of $1.4 million, or 0.84%, from the second quarter 2015. Included in noninterest expense for the second quarter 2016 was $2.5 million of merger-related costs, or $1.6 million of after tax expense. Professional services expense decreased $3.9 million, or 46.51%, from the first quarter 2016, and $0.9 million, or 16.63%, from the second quarter 2015 primarily from merger-related costs. Salaries and wages decreased 0.7 million, or 0.95%, compared with the first quarter of 2016, demonstrating expense discipline. Other operating expense experienced a decrease of $2.4 million, or 15.34%, from the first quarter 2016 primarily due to a decrease in expense for the reserve for unfunded lending commitments, gain on sale of other real estate owned, which were offset by an increase in the expense for the FDIC true-up liability.

Provision for Income Taxes

The effective tax rate was 30.98% for the second quarter 2016, compared with 30.40% for the first quarter 2016, and 30.19% for the second quarter 2015.

¹ - See Non-GAAP Financial Measures section of this release for a reconciliation to financial measures as defined by GAAP.

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.


										Change 2Q 2016 vs.
	2016			2016			2015			2016	2015
(Dollars in thousands)	2nd qtr			1st qtr			2nd qtr			1st qtr	2nd qtr
Net charge-offs	$	4,687		$	7,630		$	6,672		(38.57)%	(29.75)%
Net charge-offs on average originated loans	0.13		%		0.22	%	0.20		%
Nonperforming loans at period end	$	84,297		$	73,701		$	55,142		14.38	52.87
Nonperforming assets at period end	115,653			112,293			117,311			2.99	(1.41)
Allowance for loan losses	105,175			102,915			101,682			2.20	3.44
Allowance for loan losses to nonperforming loans	124.77		%	139.64		%	184.40		%
Provision for originated loan losses	$	6,947		$	5,410		$	10,809		28.41	(35.73)

Nonperforming loans totaled $84.3 million at June 30, 2016, an increase of $10.6 million, or 14.38%, compared with March 31, 2016 and an increase of $29.2 million, or 52.87%, compared with June 30, 2015 due to two notes, approximating $12.2 million, with the remaining principal balances being paid off in full subsequent to June 30, 2016.

Nonperforming assets totaled $115.7 million at June 30, 2016, an increase of $3.4 million, or 2.99%, compared with March 31, 2016 and a decrease of $1.7 million, or 1.41%, compared with June 30, 2015. Nonperforming assets at June 30, 2016 represented 0.79% of period-end originated loans plus noncovered other real estate compared with 0.78% at March 31, 2016 and 0.87% at June 30, 2015. Included in nonperforming assets as of June 30, 2016 were $19.0 million of OREO no longer covered by FDIC loss share agreements.

The allowance for originated loan losses totaled $105.2 million at June 30, 2016. At June 30, 2016, the allowance for originated loan losses was 0.72% of period-end originated loans, compared with 0.72% at March 31, 2016, and 0.76% at June 30, 2015. The allowance for credit losses is the sum of the allowance for originated loan losses and the reserve for unfunded lending commitments. The allowance for credit losses was 0.75% of period end originated loans at June 30, 2016, compared with 0.75% at March 31, 2016, and 0.79% at June 30, 2015. The allowance for credit losses to nonperforming loans was 129.65% at June 30, 2016, compared with 146.35% at March 31, 2016, and 191.48% at June 30, 2015.

Capital

Shareholders' equity was $3.0 billion at June 30, 2016 and March 31, 2016, and $2.9 billion as of June 30, 2015. The Corporation continued to have a strong capital position as tangible common equity¹ to assets was 8.48% at June 30, 2016, compared with 8.30% at March 31, 2016 and 8.09% at June 30, 2015. The common share cash dividend paid in the second quarter 2016 was $0.17 per share.

¹ - See Non-GAAP Financial Measures section of this release for a reconciliation to financial measures as defined by GAAP.

At June 30, 2016, Basel III capital ratios on a transitional basis remain well in excess of applicable regulatory requirements, with a total risk-based capital ratio of 13.94%, and a common equity tier 1 risk-based capital ratio of 10.75%.

Non-GAAP Financial Measures

In addition to results presented in accordance with U.S. generally accepted accounting principles ("GAAP"), this news release contains certain non-GAAP financial information and performance measures. The Corporation's management uses these non-GAAP financial measures in their analysis of the Corporation's performance and the efficiency of its operations. Management believes that these non-GAAP financial 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.

The Corporation evaluates its net interest income on a fully taxable-equivalent basis, a non-GAAP financial measure. The Corporation believes managing the business with net interest income on a fully taxable-equivalent basis provides a more accurate picture of the interest margin for comparative purposes. Total revenue, net of interest expense, includes net interest income on a fully taxable-equivalent basis and noninterest income excluding gains and losses on the sale of securities. The Corporation views related ratios and analysis (i.e., efficiency ratios) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis, net interest income is adjusted to reflect tax-exempt income on an equivalent before-tax basis with a corresponding increase in income tax expense. For purposes of this calculation, the Corporation uses the federal statutory tax rate of 35 percent. This measure ensures comparability of net interest income arising from taxable and tax-exempt sources.

The Corporation also evaluates its business based on the following ratios that utilize tangible equity, a non-GAAP financial measure. Tangible equity represents an adjusted shareholders' equity or common shareholders' equity amount which has been reduced by goodwill and intangible assets. Return on average tangible common shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average common shareholders' equity. The tangible common equity ratio represents adjusted ending common shareholders' equity divided by total assets less goodwill and intangible assets. Return on average tangible shareholders' equity measures the Corporation's earnings contribution as a percentage of adjusted average total shareholders' equity. The tangible equity ratio represents adjusted ending shareholders' equity divided by total assets less goodwill and intangible assets. Tangible book value per common share represents adjusted ending common shareholders' equity divided by ending common shares outstanding. These measures are used to evaluate the Corporation's use of equity. In addition, profitability, relationship and investment models all use return on average tangible shareholders' equity as key measures to support our overall growth goals.

Adjusted net income, a non-GAAP financial measure, eliminates the effects of restructure, merger-related, and nonmerger-related real estate due to branch consolidation costs. This measure makes it easier to analyze our results by presenting them on a more comparable basis.

The following tables provide reconciliations of these non-GAAP measures to financial measures defined by GAAP.

Reconciliation of net interest income to net interest income on a fully taxable-equivalent basis
		Quarters
(unaudited)		2016			2016			2015			2015			2015
(Dollars in thousands)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Net interest income (GAAP)		$	186,078		$	185,156		$	185,231		$	185,323		$	185,118
Plus:	Fully taxable-equivalent adjustment	3,819			3,959			3,748			3,796			3,900
Net interest income on a fully taxable-equivalent basis (non-GAAP)		189,897			189,115			188,979			189,119			189,018
Average earning assets		23,121,303			22,890,082			22,747,631			22,548,977			22,352,721
Net interest margin on a fully taxable-equivalent basis (non-GAAP)		3.30		%	3.32		%	3.30		%	3.33		%	3.39		%

Reconciliation of noninterest income and noninterest expense to adjusted noninterest income and adjusted noninterest expense
		Quarters
(unaudited)		2016			2016			2015			2015			2015
(Dollars in thousands)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Noninterest expense (GAAP)		$	160,320		$	166,963		$	155,622		$	160,742		$	161,674
Less:	Intangible asset amortization	2,304			2,304			2,598			2,598			2,598
Adjusted noninterest expense (non-GAAP)		158,016			164,659			153,024			158,144			159,076
Noninterest income (GAAP)		65,115			67,394			65,143			71,426			66,582
Less:	Securities gains/(losses)	2,164			295			(5)			41			567
Adjusted noninterest income (non-GAAP)		62,951			67,099			65,148			71,385			66,015
Net interest income on a fully taxable-equivalent basis (non-GAAP)		189,897			189,115			188,979			189,119			189,018
Adjusted revenue (non-GAAP)		252,848			256,214			254,127			260,504			255,033
Efficiency ratio (non-GAAP)		62.49		%	64.27		%	60.22		%	60.71		%	62.37		%

Reconciliation of shareholders' equity to tangible common equity, and total assets to tangible assets
		Quarters
(unaudited)		2016			2016			2015			2015			2015
(Dollars in thousands, except per share amounts)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Shareholders' equity (GAAP)		$	3,047,159		$	2,997,957		$	2,940,095		$	2,937,300		$	2,887,957
Less:	Preferred stock	100,000			100,000			100,000			100,000			100,000
Common shareholders' equity (non-GAAP)		2,947,159			2,897,957			2,840,095			2,837,300			2,787,957
Less:	Intangible assets	56,020			58,324			60,628			63,226			65,824
	Goodwill	741,740			741,740			741,740			741,740			741,740
Tangible common equity (non-GAAP)		2,149,399			2,097,893			2,037,727			2,032,334			1,980,393
Total assets (GAAP)		$	26,150,587		$	26,062,649		$	25,524,604		$	25,246,917		$	25,297,014
Less:	Intangible assets	56,020			58,324			60,628			63,226			65,824
	Goodwill	741,740			741,740			741,740			741,740			741,740
Tangible assets (non-GAAP)		$	25,352,827		$	25,262,585		$	24,722,236		$	24,441,951		$	24,489,450
Period end common shares		166,169			165,720			165,758			165,759			165,773
Tangible book value per common share		$	12.94		$	12.66		$	12.29		$	12.26		$	11.95
Common equity to total assets ratio (GAAP)		11.27		%	11.12		%	11.13		%	11.24		%	11.02		%
Tangible common equity to tangible assets ratio (non-GAAP)		8.48		%	8.30		%	8.24		%	8.31		%	8.09		%

Reconciliation of net income to adjusted net income
		Quarters
(unaudited)		2016			2016			2015			2015			2015
(Dollars in thousands, except per share amounts)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Net income (GAAP)		$	58,309		$	54,136		$	56,749		$	59,012		$	56,584
Net income adjustments
Plus:	Merger-related personnel, and restructure expenses, net of taxes	813			332			(200)			—			—
	Merger-related nonpersonnel expenses, net of taxes	799			3,214			—			—			—
	Real estate write-downs due to branch consolidation costs, net of taxes	2,679			—			—			—			1,149
	Adjusted net income (non-GAAP)	62,600			57,682			56,549			59,012			57,733
Annualized net income (GAAP)		234,518			217,734			225,145			234,124			226,958
Annualized adjusted net income (non-GAAP)		251,776			231,996			224,352			234,124			231,566
Average assets (GAAP)		25,923,566			25,770,857			25,370,946			25,217,856			25,129,859
Average equity (GAAP)		3,012,218			2,970,167			2,943,268			2,909,660			2,892,432
Average tangible common equity (non-GAAP)		2,113,336			2,068,981			2,039,639			2,003,423			1,983,603
Return on average assets (GAAP)		0.90		%	0.84		%	0.89		%	0.93		%	0.90		%
Adjusted return on average assets (non-GAAP)		0.97		%	0.90		%	0.88		%	0.93		%	0.92		%
Return on average equity (GAAP)		7.79		%	7.33		%	7.65		%	8.05		%	7.85		%
Adjusted return on average equity (non-GAAP)		8.36		%	7.81		%	7.62		%	8.05		%	8.01		%
Return on average tangible common equity (non-GAAP)		11.10		%	10.52		%	11.04		%	11.69		%	11.44		%
	Adjusted return on average tangible common equity (non-GAAP)	11.91		%	11.21		%	11.00		%	11.69		%	11.67		%

Net income used in diluted EPS calculation		$	56,344		$	52,280		$	54,827		$	57,066		$	54,648
Plus:	Merger-related personnel costs, and restructure costs, net of taxes	813			332			(200)			—			—
	Merger-related nonpersonnel costs, net of taxes	799			3,214			—			—			—
	Real estate write-downs due to branch consolidation costs, net of taxes	2,679			—			—			—			1,149
	Adjusted net income used in diluted EPS calculation (non-GAAP)	60,635			55,826			54,627			57,066			55,797
Weighted average number of common shares outstanding - diluted		166,807			166,239			166,222			166,058			166,277
Diluted earnings per common share		$	0.34		$	0.31		$	0.33		$	0.34		$	0.33
	Adjusted diluted earnings per common share (non-GAAP)	0.36			0.34			0.33			0.34			0.34

Subsequent Events

The Corporation is required under GAAP to evaluate subsequent events through the filing of its consolidated financial statements for the six months ended June 30, 2016 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 June 30, 2016 and will adjust amounts preliminarily reported, if necessary.

On July 8, 2016, the Corporation consummated the sale of 4 branches, located in Wisconsin, for a gain of approximately $1.2 million, after tax.

As previously disclosed, on July 13, 2016, Huntington and FirstMerit have reached an agreement with the U.S. Department of Justice to divest 13 FirstMerit branches and associated assets, deposits and employees located in Ohio.

About FirstMerit Corporation

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of approximately $26.2 billion as of June 30, 2016, and 359 banking offices and 400 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. and FirstMerit Mortgage Corporation.

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, the ability to complete the proposed merger with Huntington in a timely manner, if at all, the possibility that the anticipated benefits of the merger with Huntington are not realized when expected or at all, competitive pressures, changes in accounting, tax or regulatory practices or requirements, and those risk factors detailed in the Corporation's periodic reports 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 AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited)							Quarters
(Dollars in thousands, except per share amounts)	2016			2016			2015			2015			2015
	2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
EARNINGS
Net interest income TE ⁽¹⁾	$	189,897		$	189,115		$	188,979		$	189,119		$	189,018
TE adjustment ⁽¹⁾	3,819			3,959			3,748			3,796			3,900
Provision for originated loan losses	6,947			5,410			12,487			10,402			10,809
Provision/(recapture) for acquired loan losses	(341)			1,131			1,503			144			(952)
Provision/(recapture) for FDIC acquired loan losses	(215)			1,268			(379)			3,729			(891)
Noninterest income	65,115			67,394			65,143			71,426			66,582
Noninterest expense	160,320			166,963			155,622			160,742			161,674
Net income	58,309			54,136			56,749			59,012			56,584
Diluted EPS ⁽³⁾	0.34			0.31			0.33			0.34			0.33
PERFORMANCE RATIOS
Return on average assets (ROA)	0.90		%	0.84		%	0.89		%	0.93		%	0.90		%
Return on average equity (ROE)	7.79		%	7.33		%	7.65		%	8.05		%	7.85		%
Return on average tangible common equity ⁽¹⁾	11.10		%	10.52		%	11.04		%	11.69		%	11.44		%
Net interest margin TE ⁽¹⁾	3.30		%	3.32		%	3.30		%	3.33		%	3.39		%
Efficiency ratio ⁽¹⁾	62.49		%	64.27		%	60.22		%	60.71		%	62.37		%
Number of full-time equivalent employees	3,844			3,949			3,926			3,961			4,017
MARKET DATA
Book value per common share	$	18.34		$	18.09		$	17.74		$	17.72		$	17.42
Tangible book value per common share ⁽¹⁾	12.94			12.66			12.29			12.26			11.95
Period end common share market value	20.27			21.05			18.65			17.67			20.83
Market as a % of book	111		%	116		%	105		%	100		%	120		%
Cash dividends per common share	$	0.17		$	0.17		$	0.17		$	0.17		$	0.16
Common Stock dividend payout ratio	50.00		%	54.84		%	51.52		%	50.00		%	48.48		%
Average basic common shares	166,188			165,745			165,762			165,762			165,736
Average diluted common shares	166,807			166,239			166,222			166,058			166,277
Period end common shares	166,169			165,720			165,758			165,759			165,773
Common shares repurchased	167			55			15			20			211
Common Stock market capitalization	$	3,368,246		$	3,488,406		$	3,091,387		$	2,928,962		$	3,453,052
ASSET QUALITY (excluding acquired, FDIC acquired loans and covered OREO) ⁽²⁾
Gross charge-offs	$	10,798		$	13,014		$	15,514		$	13,398		$	11,298
Net charge-offs	4,687			7,630			11,407			8,029			6,672
Allowance for originated loan losses	105,175			102,915			105,135			104,055			101,682
Reserve for unfunded lending commitments	4,112			4,944			4,068			3,574			3,905
Nonperforming assets (NPAs)	115,653			112,293			94,498			107,058			117,311
Net charge-offs to average loans ratio	0.13		%	0.22		%	0.33		%	0.24		%	0.20		%
Allowance for originated loan losses to period-end loans	0.72		%	0.72		%	0.74		%	0.76		%	0.76		%
Allowance for credit losses to period-end loans	0.75		%	0.75		%	0.77		%	0.79		%	0.79		%
NPAs to loans and other real estate	0.79		%	0.78		%	0.67		%	0.78		%	0.87		%
Allowance for originated loan losses to nonperforming loans	124.77		%	139.64		%	238.37		%	221.22		%	184.40		%
Allowance for credit losses to nonperforming loans	129.65		%	146.35		%	247.60		%	228.82		%	191.48		%
CAPITAL & LIQUIDITY
Period end tangible common equity to assets ⁽¹⁾	8.48		%	8.30		%	8.24		%	8.31		%	8.09		%
Average equity to assets	11.62		%	11.53		%	11.60		%	11.54		%	11.51		%
Average equity to total loans	18.56		%	18.48		%	18.50		%	18.48		%	18.59		%
Average total loans to deposits	77.42		%	77.87		%	79.54		%	78.91		%	79.06		%
AVERAGE BALANCES
Assets	$	25,923,566		$	25,770,857		$	25,370,946		$	25,217,856		$	25,129,859
Deposits	20,967,450			20,635,665			20,002,793			19,957,586			19,682,662
Originated loans	14,489,924			14,187,793			13,863,910			13,528,268			13,092,972
Acquired loans, including FDIC acquired loans, less loss share receivable	1,743,799			1,881,965			2,047,167			2,219,488			2,468,035
Earning assets	23,121,303			22,890,082			22,747,631			22,548,977			22,352,721
Shareholders' equity	3,012,218			2,970,167			2,943,268			2,909,660			2,892,432
ENDING BALANCES
Assets	$	26,150,587		$	26,062,649		$	25,524,604		$	25,246,917		$	25,297,014
Deposits	20,952,643			21,101,366			20,108,003			19,821,916			19,673,850
Originated loans	14,665,631			14,389,513			14,118,505			13,648,325			13,355,912
Acquired loans, including FDIC acquired loans, less loss share receivable	1,669,420			1,826,501			1,948,493			2,140,029			2,337,378
Goodwill	741,740			741,740			741,740			741,740			741,740
Intangible assets	56,020			58,324			60,628			63,226			65,824
Earning assets	23,432,253			23,525,620			22,955,435			22,661,171			22,599,272
Total shareholders' equity	3,047,159			2,997,957			2,940,095			2,937,300			2,887,957
NOTES:

(1) Represents a non-GAAP financial measure. Refer to the Non-GAAP Financial Measures section of this press release for a reconciliation to GAAP financial measures.
(2) Due to the impact of business combination accounting and protection of FDIC loss sharing agreements, which provide considerable protection against credit risk, acquired and FDIC acquired loans and covered OREO are excluded from this table to provide for improved comparability to prior periods and better perspective into asset quality trends. George Washington and Midwest non-single family loss share agreements with the FDIC expired at March 31, 2015 and June 30, 2015, respectively. As of June 30, 2016, $65.0 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.
(3) 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 presented.

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)				June 30,		December 31,		June 30,
(Unaudited, except December 31, 2015, which is derived from the audited financial statements)				2016		2015		2015
ASSETS
	Cash and due from banks			$	420,818	$	380,799	$	472,848
	Interest-bearing deposits in banks			103,469		83,018		114,741
		Total cash and cash equivalents		524,287		463,817		587,589
	Investment securities:
		Held-to-maturity		2,514,161		2,674,093		2,787,513
		Available-for-sale		4,318,688		3,967,735		3,838,509
		Other investments		148,367		148,172		147,967
	Loans held for sale			3,962		5,472		5,432
	Loans			16,343,606		16,076,945		15,705,110
	Allowance for loan losses			(149,649)		(153,691)		(148,259)
	Net loans			16,193,957		15,923,254		15,556,851
	Premises and equipment, net			293,209		319,488		313,819
	Goodwill			741,740		741,740		741,740
	Intangible assets			56,020		60,628		65,824
	Covered other real estate			940		2,134		1,065
	Accrued interest receivable and other assets			1,355,256		1,218,071		1,250,705
			Total assets	$	26,150,587	$	25,524,604	$	25,297,014
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits:
		Noninterest-bearing		$	6,011,531	$	5,942,248	$	5,725,850
		Interest-bearing		3,477,483		3,476,729		3,304,969
		Savings and money market accounts		9,354,868		8,450,123		8,418,716
		Certificates and other time deposits		2,108,761		2,238,903		2,224,315
			Total deposits	20,952,643		20,108,003		19,673,850
		Federal funds purchased and securities sold under agreements to repurchase		686,890		1,037,075		1,519,250
		Wholesale borrowings		468,447		580,648		366,074
		Long-term debt		526,389		505,173		497,393
		Accrued taxes, expenses, and other liabilities		469,059		353,610		352,490
			Total liabilities	23,103,428		22,584,509		22,409,057
		Shareholders' equity:
			5.875% Non-Cumulative Perpetual Preferred stock, Series A, without par value: authorized 115,000 shares; 100,000 issued	100,000		100,000		100,000
			Common stock warrant	—		—		—
			Common Stock, without par value; authorized 300,000,000 shares; issued: June 30, 2016, December 31, 2015 and June 30, 2015 - 170,183,515 shares	127,937		127,937		127,937
			Capital surplus	1,383,266		1,386,677		1,379,194
			Accumulated other comprehensive loss	(29,473)		(79,274)		(67,621)
			Retained earnings	1,572,681		1,519,438		1,462,859
			Treasury stock, at cost: June 30, 2016 - 4,014,513; December 31, 2015 - 4,425,927; June 30, 2015 - 4,410,939 shares	(107,252)		(114,683)		(114,412)
			Total shareholders' equity	3,047,159		2,940,095		2,887,957
			Total liabilities and shareholders' equity	$	26,150,587	$	25,524,604	$	25,297,014

FIRSTMERIT CORPORATION AND SUBSIDIARIES Period End Loans by Product Type
(Unaudited)	As of June 30, 2016
(In thousands)	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,882,994	$	181,503	$	31,274	$	6,095,771
CRE	2,035,498		368,800		79,888		2,484,186
Construction	705,340		4,111		4,631		714,082
Leases	508,534		—		—		508,534
Total Commercial	9,132,366		554,414		115,793		9,802,573
Mortgage	728,534		292,877		33,370		1,054,781
Installment	3,353,084		494,429		1,808		3,849,321
Home equity	1,276,661		146,916		29,813		1,453,390
Credit card	174,986		—		—		174,986
Total Consumer	5,533,265		934,222		64,991		6,532,478
Subtotal	14,665,631		1,488,636		180,784		16,335,051
Loss share receivable	—		—		8,555		8,555
Total loans	14,665,631		1,488,636		189,339		16,343,606
Allowance for loan losses	(105,175)		(4,256)		(40,218)		(149,649)
Net loans	$	14,560,456	$	1,484,380	$	149,121	$	16,193,957


	As of March 31, 2016
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans⁽²⁾		Total Loans
C&I	$	5,837,315	$	230,700	$	31,930	$	6,099,945
CRE	2,079,662		391,863		85,304		2,556,829
Construction	670,825		5,467		4,889		681,181
Leases	512,929		—		—		512,929
Total Commercial	9,100,731		628,030		122,123		9,850,884
Mortgage	700,138		308,618		34,594		1,043,350
Installment	3,154,912		539,313		1,942		3,696,167
Home equity	1,254,709		157,745		34,136		1,446,590
Credit card	179,023		—		—		179,023
Total Consumer	5,288,782		1,005,676		70,672		6,365,130
Subtotal	14,389,513		1,633,706		192,795		16,216,014
Loss share receivable	—		—		9,436		9,436
Total loans	14,389,513		1,633,706		202,231		16,225,450
Allowance for loan losses	(102,915)		(4,423)		(44,599)		(151,937)
Net loans	$	14,286,598	$	1,629,283	$	157,632	$	16,073,513


	As of December 31, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,793,408	$	240,145	$	35,466	$	6,069,019
CRE	2,077,344		430,891		87,774		2,596,009
Construction	645,337		6,113		5,869		657,319
Leases	491,741		—		—		491,741
Total Commercial	9,007,830		677,149		129,109		9,814,088
Mortgage	689,045		324,008		35,568		1,048,621
Installment	2,990,349		573,372		2,077		3,565,798
Home equity	1,248,438		168,542		38,668		1,455,648
Credit card	182,843		—		—		182,843
Total Consumer	5,110,675		1,065,922		76,313		6,252,910
Subtotal	14,118,505		1,743,071		205,422		16,066,998
Loss share receivable	—		—		9,947		9,947
Total loans	14,118,505		1,743,071		215,369		16,076,945
Allowance for loan losses	(105,135)		(3,877)		(44,679)		(153,691)
Net loans	$	14,013,370	$	1,739,194	$	170,690	$	15,923,254


	As of September 30, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans⁽²⁾		Total Loans
C&I	$	5,521,955	$	274,552	$	38,787	$	5,835,294
CRE	2,089,533		497,690		94,531		2,681,754
Construction	619,569		6,172		5,859		631,600
Leases	461,642		—		—		461,642
Total Commercial	8,692,699		778,414		139,177		9,610,290
Mortgage	673,591		341,278		36,362		1,051,231
Installment	2,899,559		611,061		2,156		3,512,776
Home equity	1,212,084		184,211		47,370		1,443,665
Credit card	170,392		—		—		170,392
Total Consumer	4,955,626		1,136,550		85,888		6,178,064
Subtotal	13,648,325		1,914,964		225,065		15,788,354
Loss share receivable	—		—		10,926		10,926
Total loans	13,648,325		1,914,964		235,991		15,799,280
Allowance for loan losses	(104,055)		(4,199)		(45,196)		(153,450)
Net loans	$	13,544,270	$	1,910,765	$	190,795	$	15,645,830


	As of June 30, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans⁽²⁾		Total Loans
C&I	$	5,471,363	$	337,423	$	38,138	$	5,846,924
CRE	2,138,373		533,945		101,808		2,774,126
Construction	586,894		6,230		5,875		598,999
Leases	436,702		—		—		436,702
Total Commercial	8,633,332		877,598		145,821		9,656,751
Mortgage	653,143		358,559		38,029		1,049,731
Installment	2,720,059		659,348		2,299		3,381,706
Home equity	1,180,802		200,179		55,545		1,436,526
Credit card	168,576		—		—		168,576
Total Consumer	4,722,580		1,218,086		95,873		6,036,539
Subtotal	13,355,912		2,095,684		241,694		15,693,290
Loss share receivable	—		—		11,820		11,820
Total loans	13,355,912		2,095,684		253,514		15,705,110
Allowance for loan losses	(101,682)		(4,950)		(41,627)		(148,259)
Net loans	$	13,254,230	$	2,090,734	$	211,887	$	15,556,851

(1) Loans assumed from Citizens. No allowance was brought forward on the date of acquisition in accordance with business combination accounting.
(2) Loans acquired in an FDIC-assisted transaction. Certain non-single family loss share agreements with the FDIC expired at March 31, 2015 and June 30, 2015. As of June 30, 2016, $65.0 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
	Three Months Ended
(Unaudited)	June 30,		March 31,		December 31,		September 30,		June 30,
(In thousands)	2016		2016		2015		2015		2015
ASSETS
Cash and cash equivalents	$	622,355	$	724,095	$	415,756	$	457,317	$	518,820
Investment securities:
Held-to-maturity	2,562,583		2,636,516		2,713,636		2,754,001		2,806,325
Available-for-sale	4,163,822		4,020,701		3,959,051		3,881,959		3,816,827
Other investments	148,344		148,165		148,176		147,961		148,577
Loans held for sale	3,652		5,253		5,028		4,929		3,631
Loans	16,242,902		16,079,447		15,921,740		15,760,127		15,577,361
Allowance for loan losses	(151,267)		(152,600)		(151,192)		(147,136)		(146,558)
Net loans	16,091,635		15,926,847		15,770,548		15,612,991		15,430,803
Total earning assets	23,121,303		22,890,082		22,747,631		22,548,977		22,352,721
Premises and equipment, net	301,717		313,056		312,771		313,336		320,492
Accrued interest receivable and other assets	2,029,458		1,996,224		2,045,980		2,045,362		2,084,384
TOTAL ASSETS	$	25,923,566	$	25,770,857	$	25,370,946	$	25,217,856	$	25,129,859
LIABILITIES
Deposits:
Noninterest-bearing	$	6,035,959	$	5,990,796	$	5,982,186	$	5,897,768	$	5,722,240
Interest-bearing	3,601,589		3,590,598		3,352,908		3,353,541		3,203,836
Savings and money market accounts	9,223,623		8,851,135		8,408,703		8,480,682		8,467,845
Certificates and other time deposits	2,106,279		2,203,136		2,258,996		2,225,595		2,288,741
Total deposits	20,967,450		20,635,665		20,002,793		19,957,586		19,682,662
Federal funds purchased and securities sold under
agreements to repurchase	689,279		844,290		1,131,659		1,109,924		1,285,920
Wholesale borrowings	376,838		473,149		402,679		377,594		393,379
Long-term debt	519,376		505,376		508,954		497,566		508,744
Total funds	22,552,943		22,458,480		22,046,085		21,942,670		21,870,705
Accrued taxes, expenses and other liabilities	358,405		342,210		381,593		365,526		366,722
Total liabilities	22,911,348		22,800,690		22,427,678		22,308,196		22,237,427
SHAREHOLDERS' EQUITY
Preferred stock	100,000		100,000		100,000		100,000		100,000
Common stock warrant	—		—		—		—		1,385
Common stock	127,937		127,937		127,937		127,937		127,937
Capital surplus	1,381,423		1,388,171		1,383,777		1,380,622		1,382,717
Accumulated other comprehensive loss	(48,020)		(61,309)		(60,821)		(63,402)		(51,571)
Retained earnings	1,557,784		1,530,545		1,507,069		1,479,181		1,447,195
Treasury stock	(106,906)		(115,177)		(114,694)		(114,678)		(115,231)
Total shareholders' equity	3,012,218		2,970,167		2,943,268		2,909,660		2,892,432
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	25,923,566	$	25,770,857	$	25,370,946	$	25,217,856	$	25,129,859

FIRSTMERIT CORPORATION AND SUBSIDIARIES Average Loans by Product Type
(Unaudited)
(In thousands)	Three Months Ended June 30, 2016
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,809,398	$	199,284	$	32,235	$	6,040,917
CRE	2,082,740		382,614		83,582		2,548,936
Construction	677,802		5,061		4,682		687,545
Leases	510,273		—		—		510,273
Total Commercial	9,080,213		586,959		120,499		9,787,671
Mortgage	708,899		299,414		34,047		1,042,360
Installment	3,253,720		517,193		1,874		3,772,787
Home equity	1,270,307		152,556		31,257		1,454,120
Credit card	176,785		—		—		176,785
Total Consumer	5,409,711		969,163		67,178		6,446,052
Subtotal	14,489,924		1,556,122		187,677		16,233,723
Loss share receivable	—		—		9,179		9,179
Total loans	14,489,924		1,556,122		196,856		16,242,902
Allowance for loan losses	(103,889)		(4,121)		(43,257)		(151,267)
Net loans	$	14,386,035	$	1,552,001	$	153,599	$	16,091,635


	Three Months Ended March 31, 2016
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,778,863	$	225,036	$	33,090	$	6,036,989
CRE	2,082,698		415,678		86,816		2,585,192
Construction	660,967		5,604		5,207		671,778
Leases	492,124		—		—		492,124
Total Commercial	9,014,652		646,318		125,113		9,786,083
Mortgage	694,598		316,722		34,942		1,046,262
Installment	3,047,754		557,826		1,985		3,607,565
Home equity	1,251,696		162,930		36,129		1,450,755
Credit card	179,093		—		—		179,093
Total Consumer	5,173,141		1,037,478		73,056		6,283,675
Subtotal	14,187,793		1,683,796		198,169		16,069,758
Loss share receivable	—		—		9,689		9,689
Total loans	14,187,793		1,683,796		207,858		16,079,447
Allowance for loan losses	(104,468)		(3,970)		(44,162)		(152,600)
Net loans	$	14,083,325	$	1,679,826	$	163,696	$	15,926,847


	Three Months Ended December 31, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,640,987	$	263,937	$	36,903	$	5,941,827
CRE	2,090,700		463,379		91,944		2,646,023
Construction	628,139		6,143		5,858		640,140
Leases	461,798		—		—		461,798
Total Commercial	8,821,624		733,459		134,705		9,689,788
Mortgage	682,185		331,283		35,919		1,049,387
Installment	2,950,953		590,352		2,108		3,543,413
Home equity	1,232,035		175,827		43,514		1,451,376
Credit card	177,113		—		—		177,113
Total Consumer	5,042,286		1,097,462		81,541		6,221,289
Subtotal	13,863,910		1,830,921		216,246		15,911,077
Loss share receivable	—		—		10,663		10,663
Total loans	13,863,910		1,830,921		226,909		15,921,740
Allowance for loan losses	(102,524)		(2,750)		(45,918)		(151,192)
Net loans	$	13,761,386	$	1,828,171	$	180,991	$	15,770,548


	Three Months Ended September 30, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,503,191	$	291,727	$	38,332	$	5,833,250
CRE	2,139,943		516,945		96,739		2,753,627
Construction	599,652		6,200		5,916		611,768
Leases	441,513		—		—		441,513
Total Commercial	8,684,299		814,872		140,987		9,640,158
Mortgage	662,909		348,863		36,809		1,048,581
Installment	2,817,221		632,789		2,227		3,452,237
Home equity	1,194,165		190,947		51,994		1,437,106
Credit card	169,674		—		—		169,674
Total Consumer	4,843,969		1,172,599		91,030		6,107,598
Subtotal	13,528,268		1,987,471		232,017		15,747,756
Loss share receivable	—		—		12,371		12,371
Total loans	13,528,268		1,987,471		244,388		15,760,127
Allowance for loan losses	(102,153)		(4,143)		(40,840)		(147,136)
Net loans	$	13,426,115	$	1,983,328	$	203,548	$	15,612,991


	Three Months Ended June 30, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
C&I	$	5,362,893	$	376,541	$	42,100	$	5,781,534
CRE	2,156,511		554,681		112,035		2,823,227
Construction	579,249		6,258		8,082		593,589
Leases	408,384		—		—		408,384
Total Commercial	8,507,037		937,480		162,217		9,606,734
Mortgage	647,418		367,871		39,438		1,054,727
Installment	2,618,297		688,465		3,823		3,310,585
Home equity	1,156,019		209,185		59,556		1,424,760
Credit card	164,201		—		—		164,201
Total Consumer	4,585,935		1,265,521		102,817		5,954,273
Subtotal	13,092,972		2,203,001		265,034		15,561,007
Loss share receivable	—		—		16,354		16,354
Total loans	13,092,972		2,203,001		281,388		15,577,361
Allowance for loan losses	(98,529)		(7,434)		(40,595)		(146,558)
Net loans	$	12,994,443	$	2,195,567	$	240,793	$	15,430,803

FIRSTMERIT CORPORATION AND SUBSIDARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Fully Tax-equivalent Interest Rates and Interest Differential

	Three months ended						Three months ended						Three months ended
	June 30, 2016						March 31, 2016						June 30, 2015
(Unaudited)	Average				Average		Average				Average		Average				Average
(Dollars in thousands)	Balance		Interest ⁽¹⁾		Rate		Balance		Interest ⁽¹⁾		Rate		Balance		Interest ⁽¹⁾		Rate
ASSETS
Cash and cash equivalents	$	622,355					$	724,095					$	518,820
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	5,558,522		$	28,018	2.03	%	5,470,079		$	27,763	2.04	%	5,452,598		$	27,098	1.99	%
Obligations of states and political subdivisions (tax exempt)	702,550		7,755		4.44	%	743,159		8,161		4.42	%	724,653		8,443		4.67	%
Other securities and federal funds sold	613,677		5,331		3.49	%	592,144		5,386		3.66	%	594,478		5,077		3.43	%
Total investment securities and federal funds sold	6,874,749		41,104		2.40	%	6,805,382		41,310		2.44	%	6,771,729		40,618		2.41	%
Loans held for sale	3,652		33		3.63	%	5,253		52		3.98	%	3,631		46		5.08	%
Loans, including loss share receivable⁽²⁾	16,242,902		164,022		4.06	%	16,079,447		163,285		4.08	%	15,577,361		162,610		4.19	%
Total earning assets	23,121,303		$	205,159	3.57	%	22,890,082		$	204,647	3.60	%	22,352,721		$	203,274	3.65	%
Total allowance for loan losses	(151,267)						(152,600)						(146,558)
Other assets	2,331,175						2,309,280						2,404,876
Total assets	$	25,923,566					$	25,770,857					$	25,129,859
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	6,035,959	$	—	—	%	$	5,990,796	$	—	—	%	$	5,722,240	$	—	—	%
Interest-bearing	3,601,589		1,013		0.11	%	3,590,598		929		0.10	%	3,203,836		783		0.10	%
Savings and money market accounts	9,223,623		5,641		0.25	%	8,851,135		5,652		0.26	%	8,467,845		5,588		0.26	%
Certificates and other time deposits	2,106,279		3,116		0.60	%	2,203,136		3,289		0.60	%	2,288,741		2,510		0.44	%
Total deposits	20,967,450		9,770		0.19	%	20,635,665		9,870		0.19	%	19,682,662		8,881		0.18	%
Securities sold under agreements to repurchase	689,279		109		0.06	%	844,290		265		0.13	%	1,285,920		329		0.10	%
Wholesale borrowings	376,838		1,121		1.20	%	473,149		1,234		1.05	%	393,379		1,129		1.15	%
Long-term debt	519,376		4,262		3.30	%	505,376		4,163		3.31	%	508,744		3,917		3.09	%
Total interest-bearing liabilities	16,516,984		15,262		0.37	%	16,467,684		15,532		0.38	%	16,148,465		14,256		0.35	%
Other liabilities	358,405						342,210						366,722
Shareholders' equity	3,012,218						2,970,167						2,892,432
Total liabilities and shareholders' equity	$	25,923,566					$	25,770,857					$	25,129,859
Net yield on earning assets	$	23,121,303	$	189,897	3.30	%	$	22,890,082	$	189,115	3.32	%	$	22,352,721	$	189,018	3.39	%
Interest rate spread					3.20	%					3.22	%					3.30	%

(1) The net yield on earning assets is calculated as annualized taxable-equivalent net interest income divided by average earning assets. The interest income earned on certain earning assets is completely or partially exempt from federal and/or state income taxes. As such, these tax-exempt securities typically yield lower returns than taxable securities. To provide more meaningful comparisons of net interest margins for all earning assets, net interest income on a taxable-equivalent basis is used in calculating net interest margin by increasing the interest earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under U.S. generally accepted accounting principles in the Consolidated Statements of Income. The taxable-equivalent adjustments to net interest income were $3.8 million, $4.0 million, and $3.9 million for the three months ended June 30, 2016, March 31, 2016, and June 30, 2015, respectively.
(2) Nonaccrual loans have been included in the average balances.

FIRSTMERIT CORPORATION AND SUBSIDARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
Fully Tax-equivalent Interest Rates and Interest Differential

	Six Months Ended						Six Months Ended
	June 30, 2016						June 30, 2015
(Unaudited)	Average				Average		Average				Average
(Dollars in thousands)	Balance		Interest ⁽¹⁾		Rate		Balance		Interest ⁽¹⁾		Rate
ASSETS
Cash and cash equivalents	$	673,225					$	540,920
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	5,514,302		$	55,782	2.03	%	5,391,501		$	53,858	2.01	%
Obligations of states and political subdivisions (tax exempt)	722,854		15,916		4.43	%	728,882		17,590		4.87	%
Other securities and federal funds sold	602,910		10,717		3.57	%	599,648		10,267		3.45	%
Total investment securities and federal funds sold	6,840,066		82,415		2.42	%	6,720,031		81,715		2.45	%
Loans held for sale	4,453		85		3.84	%	4,550		103		4.56	%
Loans, including loss share receivable ⁽²⁾	16,161,173		327,306		4.07	%	15,502,686		324,902		4.23	%
Total earning assets	23,005,692		$	409,806	3.58	%	22,227,267		$	406,720	3.69	%
Total allowance for loan losses	(151,935)						(145,467)
Other assets	2,319,665						2,393,014
Total assets	$	25,846,647					$	25,015,734
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	6,013,378	$	—	—	%	$	5,725,483	$	—	—	%
Interest-bearing	3,596,094		1,942		0.11	%	3,206,545		1,550		0.10	%
Savings and money market accounts	9,037,379		11,293		0.25	%	8,504,794		11,135		0.26	%
Certificates and other time deposits	2,154,708		6,405		0.60	%	2,298,677		4,687		0.41	%
Total deposits	20,801,559		19,640		0.19	%	19,735,499		17,372		0.18	%
Securities sold under agreements to repurchase	766,785		374		0.10	%	1,156,113		572		0.10	%
Wholesale borrowings	424,993		2,355		1.11	%	372,302		2,289		1.24	%
Long-term debt	512,376		8,425		3.31	%	505,125		7,915		3.16	%
Total interest-bearing liabilities	16,492,335		30,794		0.38	%	16,043,556		28,148		0.35	%
Other liabilities	349,744						367,226
Shareholders' equity	2,991,190						2,879,469
Total liabilities and shareholders' equity	$	25,846,647					$	25,015,734
Net yield on earning assets	$	23,005,692	$	379,012	3.31	%	$	22,227,267	$	378,572	3.43	%
Interest rate spread					3.20	%					3.34	%

⁽¹⁾The net yield on earning assets is calculated as annualized taxable-equivalent net interest income divided by average earning assets. The interest income earned on certain earning assets is completely or partially exempt from federal and/or state income taxes. As such, these tax-exempt securities typically yield lower returns than taxable securities. To provide more meaningful comparisons of net interest margins for all earning assets, net interest income on a taxable-equivalent basis is used in calculating net interest margin by increasing the interest earned on tax-exempt assets to make it fully equivalent to interest income earned on taxable investments. This adjustment is not permitted under generally accepted accounting principles in the Consolidated Statements of Income. The taxable-equivalent adjustments to net interest income were $7.8 million and $7.8 million for the six months ended June 30, 2016 and 2015, respectively.
⁽²⁾ Nonaccrual loans have been included in the average balances.

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)				Three Months Ended				Six Months Ended
(In thousands, except per share amounts)				June 30,				June 30,
				2016		2015		2016		2015
Interest income:
	Loans and loans held for sale			$	162,977	$	161,872	$	325,255	$	323,411
	Investment securities:
		Taxable		33,350		32,175		66,499		64,125
		Tax-exempt		5,013		5,327		10,274		11,353
		Total investment securities interest		38,363		37,502		76,773		75,478
			Total interest income	201,340		199,374		402,028		398,889
Interest expense:
	Deposits:
		Interest-bearing		1,013		783		1,942		1,550
		Savings and money market accounts		5,641		5,588		11,293		11,135
		Certificates and other time deposits		3,116		2,510		6,405		4,687
	Federal funds purchased and securities sold under agreements to repurchase			109		329		374		572
	Wholesale borrowings			1,121		1,129		2,355		2,289
	Long-term debt			4,262		3,917		8,425		7,915
		Total interest expense		15,262		14,256		30,794		28,148
		Net interest income		186,078		185,118		371,234		370,741
	Provision for loan losses			6,391		8,966		14,200		17,214
		Net interest income after provision for loan losses		179,687		176,152		357,034		353,527
Noninterest income:
	Trust department income			11,167		10,820		21,451		20,969
	Service charges on deposits			16,263		16,704		31,849		32,372
	Credit card fees			14,942		14,124		28,520		26,773
	ATM and other service fees			6,427		6,345		12,661		12,444
	Bank owned life insurance income			4,186		3,697		7,882		7,289
	Investment services and insurance			3,851		3,871		7,756		7,575
	Investment securities gains/(losses), net			2,164		567		2,459		921
	Loan sales and servicing income			1,995		3,276		3,847		4,876
	Other operating income			4,120		7,178		16,084		19,210
		Total noninterest income		65,115		66,582		132,509		132,429
Noninterest expense:
	Salaries, wages, pension and employee benefits			86,789		86,020		172,669		176,546
	Net occupancy expense			13,466		13,727		28,240		29,681
	Equipment expense			12,078		12,592		24,486		23,617
	Stationery, supplies and postage			2,945		3,370		6,564		6,898
	Bankcard, loan processing and other costs			12,269		12,461		23,277		23,600
	Professional services			4,467		5,358		12,818		9,368
	Amortization of intangibles			2,304		2,598		4,608		5,196
	FDIC insurance expense			5,192		5,077		10,637		10,244
	Other operating expense			20,810		20,471		43,984		37,176
		Total noninterest expense		160,320		161,674		327,283		322,326
Income before income tax expense				84,482		81,060		162,260		163,630
Income tax expense				26,173		24,476		49,815		49,907
			Net income	$	58,309	$	56,584	$	112,445	$	113,723
Less:			Net income allocated to participating shareholders	496		467		955		937
			Preferred stock dividends	1,469		1,469		2,938		2,938
Net income attributable to common shareholders				$	56,344	$	54,648	$	108,552	$	109,848
Net income used in diluted EPS calculation				$	56,344	$	54,648	$	108,552	$	109,848
Weighted average number of common shares outstanding - basic				166,188		165,736		165,966		165,574
Weighted average number of common shares outstanding - diluted				166,807		166,277		166,563		166,089
Basic earnings per common share				$	0.34	$	0.33	$	0.65	$	0.66
Diluted earnings per common share				0.34		0.33		0.65		0.66
Cash dividends per common share				0.17		0.16		0.34		0.32

FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)	Three Months Ended						Six Months Ended
	June 30, 2016						June 30, 2016
(In thousands)	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Net Income	$	84,482	$	26,173	$	58,309	$	162,260	$	49,815	$	112,445
Other comprehensive income/(loss)
Unrealized gains and losses on securities available for sale:
Changes in unrealized securities' holding gains/(losses)	31,489		11,431		20,058		79,868		28,994		50,874
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity	(4,549)		(1,651)		(2,898)		(5,990)		(1,799)		(4,191)
Net losses/(gains) realized on sale of securities reclassified to noninterest income	2,164		786		1,378		2,459		893		1,566
Net change in unrealized gains/(losses) on securities available for sale	29,104		10,566		18,538		76,337		28,088		48,249
Pension plans and other postretirement benefits:
Amortization of actuarial gain	1,076		390		686		3,244		1,163		2,081
Amortization of prior service cost reclassified to other noninterest expense	(560)		(204)		(356)		(820)		(291)		(529)
Net change from defined benefit pension plans	516		186		330		2,424		872		1,552
Total other comprehensive gains/(losses)	29,620		10,752		18,868		78,761		28,960		49,801
Comprehensive income	$	114,102	$	36,925	$	77,177	$	241,021	$	78,775	$	162,246

	Three Months Ended						Six Months Ended
	June 30, 2015						June 30, 2015
(In thousands)	Pre-tax		Tax		After-tax		Pre-tax		Tax		After-tax
Net Income	$	81,060	$	24,476	$	56,584	$	163,630	$	49,907	$	113,723
Other comprehensive income/(loss)
Unrealized gains and losses on securities available for sale:
Changes in unrealized securities' holding gains/(losses)	(28,642)		(10,024)		(18,618)		5,475		1,916		3,559
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity	(575)		(203)		(372)		(1,079)		(378)		(701)
Net losses/(gains) realized on sale of securities reclassified to noninterest income	(567)		(198)		(369)		(921)		(322)		(599)
Net change in unrealized gains/(losses) on securities available for sale	(29,784)		(10,425)		(19,359)		3,475		1,216		2,259
Pension plans and other postretirement benefits:
Amortization of actuarial gain	1,138		399		739		2,276		797		1,479
Amortization of prior service cost reclassified to other noninterest expense	410		144		266		820		287		533
Net change from defined benefit pension plans	1,548		543		1,005		3,096		1,084		2,012
Total other comprehensive gains/(losses)	(28,236)		(9,882)		(18,354)		6,571		2,300		4,271
Comprehensive income	$	52,824	$	14,594	$	38,230	$	170,201	$	52,207	$	117,994

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

	Quarterly Results
(In thousands, except per share amounts)	2016		2016		2015		2015		2015
(Unaudited)	2nd qtr		1st qtr		4th qtr		3rd qtr		2nd qtr
Interest Income:
Loans and loans held for sale	$	162,977	$	162,278	$	162,168	$	162,204	$	161,872
Investment securities	38,363		38,410		38,401		37,855		37,502
Total interest income	201,340		200,688		200,569		200,059		199,374
Interest expense:
Deposits:
Interest-bearing	1,013		929		754		750		783
Savings and money market accounts	5,641		5,652		5,611		5,639		5,588
Certificates and other time deposits	3,116		3,289		3,378		2,757		2,510
Federal funds purchased and securities sold under agreements to repurchase	109		265		300		254		329
Wholesale borrowings	1,121		1,234		1,202		1,171		1,129
Long-term debt	4,262		4,163		4,093		4,165		3,917
Total interest expense	15,262		15,532		15,338		14,736		14,256
Net interest income	186,078		185,156		185,231		185,323		185,118
Provision for loan losses	6,391		7,809		13,611		14,275		8,966
Net interest income after provision for loan losses	179,687		177,347		171,620		171,048		176,152
Noninterest income:
Trust department income	11,167		10,284		10,208		10,948		10,820
Service charges on deposits	16,263		15,586		16,793		17,295		16,704
Credit card fees	14,942		13,578		13,931		13,939		14,124
ATM and other service fees	6,427		6,234		6,626		6,518		6,345
Bank owned life insurance income	4,186		3,696		3,836		4,622		3,697
Investment services and insurance	3,851		3,905		3,816		4,032		3,871
Investment securities gains/(losses), net	2,164		295		(5)		41		567
Loan sales and servicing income	1,995		1,852		2,276		2,414		3,276
Other operating income	4,120		11,964		7,662		11,617		7,178
Total noninterest income	65,115		67,394		65,143		71,426		66,582
Noninterest expense:
Salaries, wages, pension and employee benefits	86,789		85,880		86,490		85,772		86,020
Net occupancy expense	13,466		14,774		12,716		13,540		13,727
Equipment expense	12,078		12,408		12,074		12,235		12,592
Stationery, supplies and postage	2,945		3,619		3,222		3,304		3,370
Bankcard, loan processing and other costs	12,269		11,008		11,146		12,335		12,461
Professional services	4,467		8,351		5,056		5,154		5,358
Amortization of intangibles	2,304		2,304		2,598		2,598		2,598
FDIC insurance expense	5,192		5,445		5,252		5,234		5,077
Other operating expense	20,810		23,174		17,068		20,570		20,471
Total noninterest expense	160,320		166,963		155,622		160,742		161,674
Income before income tax expense	84,482		77,778		81,141		81,732		81,060
Income tax expense	26,173		23,642		24,392		22,720		24,476
Net income	58,309		54,136		56,749		59,012		56,584
Less: Net income allocated to participating shareholders	496		387		453		477		467
Preferred stock dividends	1,469		1,469		1,469		1,469		1,469
Net income attributable to common shareholders	$	56,344	$	52,280	$	54,827	$	57,066	$	54,648
Net income used in diluted EPS calculation	$	56,344	$	52,280	$	54,827	$	57,066	$	54,648
Weighted-average number of common shares outstanding - basic	166,188		165,745		165,762		165,762		165,736
Weighted-average number of common shares outstanding- diluted	166,807		166,239		166,222		166,058		166,277
Basic earnings per common share	$	0.34	$	0.32	$	0.33	$	0.34	$	0.33
Diluted earnings per common share	$	0.34	$	0.31	$	0.33	$	0.34	$	0.33
Cash dividends per common share	$	0.17	$	0.17	$	0.17	$	0.17	$	0.16

FIRSTMERIT CORPORATION AND SUBSIDIARIES
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL

(Unaudited)
(In thousands)
	2016		2016		2015		2015		2015
Noninterest income detail	2nd qtr		1st qtr		4th qtr		3rd qtr		2nd qtr
Trust department income	$	11,167	$	10,284	$	10,208	$	10,948	$	10,820
Service charges on deposits	16,263		15,586		16,793		17,295		16,704
Credit card fees	14,942		13,578		13,931		13,939		14,124
ATM and other service fees	6,427		6,234		6,626		6,518		6,345
Bank owned life insurance income	4,186		3,696		3,836		4,622		3,697
Investment services and insurance	3,851		3,905		3,816		4,032		3,871
Investment securities gains/(losses), net	2,164		295		(5)		41		567
Loan sales and servicing income	1,995		1,852		2,276		2,414		3,276
Other operating income	4,120		11,964		7,662		11,617		7,178
Total Noninterest Income	$	65,115	$	67,394	$	65,143	$	71,426	$	66,582
	2016		2016		2015		2015		2015
Noninterest expense detail	2nd qtr		1st qtr		4th qtr		3rd qtr		2nd qtr
Salaries and wages	$	68,752	$	69,410	$	68,151	$	68,775	$	67,485
Pension and employee benefits	18,037		16,470		18,339		16,997		18,535
Net occupancy expense	13,466		14,774		12,716		13,540		13,727
Equipment expense	12,078		12,408		12,074		12,235		12,592
Taxes, other than federal income taxes	1,922		2,031		2,096		2,003		2,032
Stationery, supplies and postage	2,945		3,619		3,222		3,304		3,370
Bankcard, loan processing and other costs	12,269		11,008		11,146		12,335		12,461
Advertising	3,685		3,260		3,386		4,278		3,103
Professional services	4,467		8,351		5,056		5,154		5,358
Telephone	2,115		2,424		2,530		2,480		2,599
Amortization of intangibles	2,304		2,304		2,598		2,598		2,598
FDIC insurance expense	5,192		5,445		5,252		5,234		5,077
Other operating expense	13,088		15,459		9,056		11,809		12,737
Total Noninterest Expense	$	160,320	$	166,963	$	155,622	$	160,742	$	161,674

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ASSET QUALITY INFORMATION (excluding acquired loans, FDIC acquired loans, and covered OREO) ⁽¹⁾


	(Unaudited)															(Audited)
(Dollars in thousands)	Quarterly Periods															Annual Period
	June 30,			March 31,			December 31,			September 30,			June 30,			December 31,
Allowance for Credit Losses	2016			2016			2015			2015			2015			2015
Allowance for originated loan losses, beginning of period	$	102,915		$	105,135		$	104,055		$	101,682		$	97,545		$	95,696
Provision for originated loan losses	6,947			5,410			12,487			10,402			10,809			39,734
Charge-offs	10,798			13,014			15,514			13,398			11,298			48,778
Recoveries	6,111			5,384			4,107			5,369			4,626			18,483
Net charge-offs	4,687			7,630			11,407			8,029			6,672			30,295
Allowance for originated loan losses, end of period	$	105,175		$	102,915		$	105,135		$	104,055		$	101,682		$	105,135
Reserve for unfunded lending commitments,
beginning of period	$	4,944		$	4,068		$	3,574		$	3,905		$	4,330		$	5,848
Provision for (relief of) credit losses	(832)			876			494			(331)			(425)			(1,780)
Reserve for unfunded lending commitments,
end of period	$	4,112		$	4,944		$	4,068		$	3,574		$	3,905		$	4,068
Allowance for Credit Losses	$	109,287		$	107,859		$	109,203		$	107,629		$	105,587		$	109,203
Ratios
Provision for loan losses to average loans	0.19		%	0.15		%	0.36		%	0.31		%	0.33		%	0.30		%
Net charge-offs to average loans	0.13		%	0.22		%	0.33		%	0.24		%	0.20		%	0.23		%
Allowance for loan losses to period-end loans	0.72		%	0.72		%	0.74		%	0.76		%	0.76		%	0.74		%
Allowance for credit losses to period-end loans	0.75		%	0.75		%	0.77		%	0.79		%	0.79		%	0.77		%
Allowance for loan losses to nonperforming loans	124.77		%	139.64		%	238.37		%	221.22		%	184.40		%	238.37		%
Allowance for credit losses to nonperforming loans	129.65		%	146.35		%	247.60		%	228.82		%	191.48		%	247.60		%
Asset Quality
Impaired originated loans:
Commercial loans	$	66,942		$	56,726		$	28,108		$	30,821		$	37,889		$	28,108
Consumer loans	17,355			16,975			15,997			16,215			17,253			15,997
Total nonperforming loans	84,297			73,701			44,105			47,036			55,142			44,105
Other real estate owned ("OREO"), noncovered ⁽²⁾	31,356			38,592			50,393			60,022			62,169			50,393
Total nonperforming assets ("NPAs") ⁽²⁾	$	115,653		$	112,293		$	94,498		$	107,058		$	117,311		$	94,498
NPAs to period-end loans + noncovered OREO ⁽²⁾	0.79		%	0.78		%	0.67		%	0.78		%	0.87		%	0.67		%
Accruing originated loans past due 90 days or more	$	8,008		$	9,361		$	8,022		$	9,888		$	8,009		$	8,022

(1) Due to the impact of business combination accounting and the protection afforded by FDIC loss sharing agreements, which provide considerable protection against credit risk, acquired loans and FDIC acquired loans, and covered OREO are excluded from this table to provide for improved comparability to prior periods and better perspective into asset quality trends. George Washington and Midwest non-single family loss share agreements with the FDIC expired at March 31, 2015 and June 30, 2015. As of June 30, 2016, $65.0 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.
(2) As of June 30, 2016, March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, $19.0 million, $25.5 million, $33.5 million, $40.0 million, and $42.0 million respectively, of OREO was no longer covered by FDIC loss share agreements, and therefore, was included in NPAs. OREO that remains covered by FDIC loss share agreements has considerable protection against credit risk and is not reported as NPAs.

FIRSTMERIT CORPORATION AND SUBSIDIARIES
ALLOWANCE FOR ORIGINATED LOAN LOSSES - Net Charge-off Detail (excluding acquired and FDIC acquired loans) ⁽¹⁾

(Unaudited)	Three Months Ended						Six Months Ended						Year Ended
(Dollars in thousands)	June 30,						June 30,						December 31,
	2016			2015			2016			2015			2015
Allowance for originated loan losses - beginning of period	$	102,915		$	97,545		$	105,135		$	95,696		$	95,696
Loans charged off:
Commercial	2,634			3,577			5,882			4,262			15,270
Mortgage	708			373			1,158			797			1,443
Installment	4,548			4,621			10,858			9,226			19,546
Home equity	937			971			1,964			1,882			4,032
Credit cards	1,031			1,209			2,484			2,661			4,867
Leases	—			—			—			—			1,268
Overdrafts	940			547			1,468			1,037			2,352
Total	10,798			11,298			23,814			19,865			48,778
Recoveries:
Commercial	1,509			448			2,045			773			1,798
Mortgage	45			89			65			124			257
Installment	3,337			2,716			6,951			5,584			11,062
Home equity	499			839			1,123			1,452			2,606
Credit cards	421			358			778			724			1,395
Manufactured housing	4			6			10			19			31
Leases	29			3			49			7			787
Overdrafts	267			167			476			323			547
Total	6,111			4,626			11,497			9,006			18,483
Net charge-offs	4,687			6,672			12,317			10,859			30,295
Provision for originated loan losses	6,947			10,809			12,357			16,845			39,734
Allowance for originated loan losses-end of period	$	105,175		$	101,682		$	105,175		$	101,682		$	105,135

Average originated loans	$	14,489,924		$	13,092,972		$	14,338,858		$	12,892,495		$	13,297,594
Ratio (annualized) to average originated loans:
Originated net charge-offs	0.13		%	0.20		%	0.17		%	0.17		%	0.23		%
Provision for originated loan losses	0.19		%	0.33		%	0.17		%	0.26		%	0.30		%
Originated Loans, period-end	$	14,665,631		$	13,355,912		$	14,665,631		$	13,355,912		$	14,118,505

Allowance for credit losses:	$	109,287		$	105,587		$	109,287		$	105,587		$	109,203
To (annualized) net charge-offs	5.80			3.95			4.41			4.82			3.60
Allowance for originated loan losses:
To period-end originated loans	0.72		%	0.76		%	0.72		%	0.76		%	0.74		%
To (annualized) net originated charge-offs	5.58			3.80			4.25			4.64			3.47

(1) Due to the impact of business combination accounting and protection of FDIC loss sharing agreements, which provide considerable protection against credit risk, acquired and FDIC acquired loans are excluded from this table to provide for improved comparability to prior periods and better perspective into asset quality trends. George Washington and Midwest non-single family loss share agreements with the FDIC expired at March 31, 2015 and June 30, 2015, respectively. As of June 30, 2016, $65.0 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

FirstMerit Corporation
Analyst: Thomas O'Malley/Investor Relations Officer
Phone: 330.384.7109
Media Contact: Robert Townsend/Media Relations Officer
Phone: 330.384.7075

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SOURCE FirstMerit Corporation

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