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

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FirstMerit Corporation Reports Second Quarter 2015 EPS Results

Exhibit 99.1

FOR IMMEDIATE RELEASE

FirstMerit Corporation

Analyst: Thomas O’Malley/Investor Relations Officer

Phone: 330.384.7109

Media Contact: Robert Townsend/Media Relations Officer

Phone: 330.384.7075

FirstMerit Reports Second Quarter 2015 EPS of $0.33 Per Share

Quarterly Highlights include:


•	Profitability Sustained: 65^th consecutive quarter of profitability.


•	Loan growth continued: Total loan growth of $214.2 million, or 1.38% from the prior quarter.


•	Credit quality remained solid: Net charge-offs to average originated loans of 0.20%.


•	Balance sheet remained strong: Strong tangible common equity ratio¹ at 8.09%.

Akron, Ohio (July 28, 2015) - FirstMerit Corporation (Nasdaq: FMER) (the "Corporation") reported second quarter 2015 net income of $56.6 million, or $0.33 per diluted share. This compares with $57.1 million, or $0.33 per diluted share, for the first quarter 2015 and $59.5 million, or $0.35 per diluted share, for the second quarter 2014.

Returns on average common equity (“ROE”) and average assets (“ROA”) for the second quarter 2015 were 7.85% and 0.90%, respectively, compared with 8.08% and 0.93%, respectively, for the first quarter 2015 and 8.62% and 0.98%, respectively, for the second quarter 2014.

“Our financial performance this quarter reflected continuing execution of our productivity and profitability initiatives. During the quarter we produced solid loan growth and achieved operating expense levels within our longer term cost reduction goals. Our strong capital levels supported solid balance sheet expansion which was augmented by solid credit quality. ” said Paul Greig, Chairman, President and CEO of FirstMerit Corporation.

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

FirstMerit Corporation Reports Second Quarter 2015 EPS Results

Net Interest Income

Net interest income on a fully tax-equivalent (“TE”)¹ basis was $189.0 million in the second quarter 2015 compared with $189.6 million in the first quarter 2015 and $199.7 million in the second quarter 2014.

Net interest margin on TE basis¹ was 3.39% for the second quarter 2015 compared with 3.48% for the first quarter 2015 and 3.75% for the second quarter 2014. Net interest margin compression in the second quarter, compared with the prior quarter, resulted from anticipated lower accretion from the acquired and FDIC acquired loan portfolios due to the continued decline in the loan balances and lower yields on the investment portfolio.

Average originated loans were $13.1 billion during the second quarter 2015, an increase of $403.2 million, or 3.18%, compared with the first quarter 2015, and an increase of $2.0 billion, or 18.04%, compared with the second quarter 2014. Average originated commercial loans increased $118.8 million, or 1.49%, compared with the prior quarter, and increased $913.6 million, or 12.72%, compared with the year-ago quarter.

Average deposits were $19.7 billion during the second quarter 2015, a decrease of $106.3 million, or 0.54%, compared with the first quarter 2015, and an increase of $185.9 million, or 0.95%, compared with the second quarter 2014. During the second quarter 2015, average core deposits, which exclude time deposits, decreased $86.3 million, or 0.49%, compared with the first quarter 2015 and increased $231.0 million, or 1.35%, compared with the second quarter 2014. Average time deposits decreased $20.0 million, or 0.87%, and decreased $45.1 million, or 1.93%, respectively, over the prior and year-ago quarters. For the second quarter 2015, average core deposits accounted for 88.37% of total average deposits, compared with 88.33% for the first quarter 2015 and 88.03% for the second quarter 2014.

Average investments increased $104.0 million, or 1.56%, compared with the first quarter 2015 and increased $116.7 million, or 1.75%, compared with the second quarter 2014.

Noninterest Income

Noninterest income, excluding gains and losses on securities transactions¹, for the second quarter 2015 was $66.0 million, an increase of $0.5 million, or 0.80%, from the first quarter 2015 and a decrease of $6.5 million or 8.92% from the second quarter 2014. Included in noninterest income this quarter were costs of $1.8 million associated with branch closures.

Noninterest income, excluding net securities gains and losses, as a percentage of net revenue¹ for the second quarter 2015 was 25.88% compared with 25.68% for first quarter 2015 and 26.63% for the second quarter 2014.

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

FirstMerit Corporation Reports Second Quarter 2015 EPS Results

Noninterest Expense

Noninterest expense for the second quarter 2015 was $161.7 million, an increase of $1.0 million, or 0.64%, from the first quarter 2015 and a decrease of $5.7 million, or 3.42%, from the second quarter 2014. The Corporation's efficiency ratio¹ was 62.37% for the second quarter 2015, compared with 61.97% for the first quarter 2015 and 60.43% for the second quarter 2014.

The effective tax rate was 30.19% for the second quarter 2015 compared with 30.80% for the first quarter 2015 and 30.37% for the second quarter 2014.

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 $6.7 million in the second quarter 2015, compared to $4.2 million in the first quarter 2015, and $6.2 million in the second quarter 2014. Net charge-offs on originated loans were 0.20% of average originated loans at June 30, 2015, compared to 0.13% at March 31, 2015 and 0.22% at June 30, 2014.

Nonperforming assets totaled $117.3 million at June 30, 2015, an increase of $48.7 million, or 70.99%, compared with March 31, 2015 and an increase of $56.4 million, or 92.56%, compared with June 30, 2014. Nonperforming assets at June 30, 2015 represented 0.87% of period-end originated loans plus noncovered other real estate compared with 0.53% at March 31, 2015 and 0.53% at June 30, 2014. The increase in nonperforming assets is primarily attributable to other real estate owned ("OREO") no longer covered by FDIC loss share agreements. Included in nonperforming assets as of June 30, 2015 were $42.0 million of OREO no longer covered by FDIC loss share agreements.

The allowance for originated loan losses totaled $101.7 million at June 30, 2015. At June 30, 2015, the allowance for originated loan losses was 0.76% of period-end originated loans, compared with 0.76% at March 31, 2015 and 0.80% at June 30, 2014. The allowance for originated loan losses at June 30, 2015 compared to March 31, 2015 increased by $4.1 million. 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 0.79% of period end originated loans at June 30, 2015, compared with 0.79% at March 31, 2015 and 0.86% at June 30, 2014. The allowance for credit losses to nonperforming loans was 191.48% at June 30, 2015, compared with 221.06% at March 31, 2015 and 269.61% at June 30, 2014.

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

FirstMerit Corporation Reports Second Quarter 2015 EPS Results

Balance Sheet

The Corporation’s total assets at June 30, 2015 were $25.3 billion, an increase of $178.9 million, or 0.71%, compared with March 31, 2015 and an increase of $732.6 million, or 2.98%, compared with June 30, 2014. Total gross loans (originated, acquired, and FDIC acquired) and total deposits were $15.7 billion and $19.7 billion, respectively, at June 30, 2015, $15.5 billion and $19.9 billion, respectively, at March 31, 2015 and $15.0 billion and $19.3 billion, respectively, at June 30, 2014. Core deposits totaled $17.4 billion at June 30, 2015, a decrease of $104.9 million, or 0.60%, from March 31, 2015 and an increase of $419.5 million, or 2.46%, from June 30, 2014.

Shareholders’ equity was $2.9 billion, $2.9 billion and $2.8 billion as of June 30, 2015, March 31, 2015, and June 30, 2014. During the quarter, the Corporation repurchased 2.6 million common stock warrants issued by Citizens Republic Bancorp Inc. under the U.S. Treasury's Capital Purchase Program at a cost of $12.2 million which reduced tangible book value per share by $0.07. The Corporation maintained a strong capital position as tangible common equity¹ to assets was 8.09% at June 30, 2015, compared with 8.14% at March 31, 2015 and 7.89% at June 30, 2014. The common share cash dividend paid in the second quarter 2015 was $0.16 per share.

On January 1, 2015, the Corporation became subject to the Basel III capital framework and standardized approach for calculating risk-weighted assets. At June 30, 2015, Basel III capital ratios on a transitional basis remain well in excess of applicable regulatory requirements, with a total risk-based capital ratio of 13.62%, and a common equity tier 1 risk-based capital ratio of 10.48%.

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 analyses (i.e., efficiency ratios) on a fully taxable-equivalent basis. To derive the fully taxable-equivalent basis,

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

FirstMerit Corporation Reports Second Quarter 2015 EPS Results

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.

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)		2015			2015			2014			2014			2014
(Dollars in thousands)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Net interest income (GAAP)		$	185,118		$	185,623		$	192,511		$	193,578		$	195,577
Plus:	Fully taxable-equivalent adjustment	3,900			3,931			3,998			4,066			4,089
Net interest income on a fully taxable-equivalent basis (non-GAAP)		189,018			189,554			196,509			197,644			199,666
Average earning assets		22,352,721			22,100,417			21,920,889			21,804,243			21,367,496
Net interest margin on a fully taxable-equivalent basis (non-GAAP)		3.39		%	3.48		%	3.56		%	3.60		%	3.75		%



Reconciliation of noninterest income and noninterest expense to adjusted noninterest income and adjusted noninterest expense
		Quarters
(unaudited)		2015			2015			2014			2014			2014
(Dollars in thousands)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Noninterest expense (GAAP)		$	161,674		$	160,652		$	165,041		$	163,145		$	167,400
Less:	Intangible asset amortization	2,598			2,598			2,933			2,933			2,933
Adjusted noninterest expense (non-GAAP)		159,076			158,054			162,108			160,212			164,467
Noninterest income (GAAP)		66,582			65,847			71,960			69,733			72,560
Less:	Securities gains/(losses)	567			354			16			14			80
Adjusted noninterest income (non-GAAP)		66,015			65,493			71,944			69,719			72,480
Net interest income on a fully taxable-equivalent basis (non-GAAP)		189,018			189,554			196,509			197,644			199,666
Adjusted revenue (non-GAAP)		255,033			255,047			268,453			267,363			272,146
Efficiency ratio (non-GAAP)		62.37		%	61.97		%	60.39		%	59.92		%	60.43		%

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



Reconciliation of shareholders' equity to tangible common equity, and total assets to tangible assets
		Quarters
		2015			2015			2014			2014			2014
(Dollars in thousands, except per share amounts)		2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
Shareholders’ equity (GAAP)		$	2,887,957		$	2,888,786		$	2,834,281		$	2,820,431		$	2,791,738
Less:	Preferred stock	100,000			100,000			100,000			100,000			100,000
Common shareholders' equity (non-GAAP)		2,787,957			2,788,786			2,734,281			2,720,431			2,691,738
Less:	Intangible assets	65,824			68,422			71,020			73,953			76,886
	Goodwill	741,740			741,740			741,740			741,740			741,740
Tangible common equity (non-GAAP)		1,980,393			1,978,624			1,921,521			1,904,738			1,873,112
Total assets (GAAP)		$	25,297,014		$	25,118,120		$	24,902,347		$	24,608,207		$	24,564,431
Less:	Intangible assets	65,824			68,422			71,020			73,953			76,886
	Goodwill	741,740			741,740			741,740			741,740			741,740
Tangible assets (non-GAAP)		$	24,489,450		$	24,307,958		$	24,089,587		$	23,792,514		$	23,745,805
Period end common shares		165,773			165,453			165,390			165,384			165,393
Tangible book value per common share		$	11.95		$	11.96		$	11.62		$	11.52		$	11.33
Tangible common equity to tangible assets ratio (non-GAAP)		8.09		%	8.14		%	7.98		%	8.01		%	7.89		%

Subsequent Events

The Corporation is required under GAAP to evaluate subsequent events through the filing of its consolidated financial statements for the quarter ended June 30, 2015 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, 2015 and will adjust amounts preliminarily reported, if necessary.

Second Quarter 2015 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 second 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: 82737799.

A replay of the conference call will be available at approximately 2:00 p.m. (Eastern Time) on July 28, 2015 through August 11, 2015 by dialing (855) 859-2056, and entering the PIN: 82737799. 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/about-us/investors/index.html; click on the Presentations link to access the slide presentation.

About FirstMerit Corporation

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of approximately $25.3 billion as of June 30, 2015, and 367 banking offices and 399 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.

FirstMerit Corporation Reports Second Quarter 2015 EPS Results

Forward-Looking Statements

This release contains forward-looking statements relating to present or future trends or factors affecting the banking industry, and specifically the financial condition and results of operations, including without limitation, statements relating to the earnings outlook of the Corporation, as well as its operations, markets and products. Actual results could differ materially from those indicated. Among the important factors that could cause results to differ materially are interest rate changes, continued softening in the economy, which could materially impact credit quality trends and the ability to generate loans, changes in the mix of the Corporation's business, competitive pressures, changes in accounting, tax or regulatory practices or requirements, and those risk factors detailed in the Corporation's periodic reports filed with the Securities and Exchange Commission. The Corporation undertakes no obligation to release revisions to these forward-looking statements or reflect events or circumstances after the date of this release.

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited)							Quarters
(Dollars in thousands, except per share amounts)	2015			2015			2014			2014			2014
	2nd qtr			1st qtr			4th qtr			3rd qtr			2nd qtr
EARNINGS
Net interest income TE ⁽¹⁾	$	189,018		$	189,554		$	196,509		$	197,644		$	199,666
TE adjustment ⁽¹⁾	3,900			3,931			3,998			4,066			4,089
Provision for originated loan losses	10,809			6,036			8,662			4,862			5,993
Provision for acquired loan losses	(952		)	2,214			3,407			4,411			5,815
Provision/(recapture) for covered loan losses	(891		)	(2		)	1,228			(81		)	3,445
Noninterest income	66,582			65,847			71,960			69,733			72,560
Noninterest expense	161,674			160,652			165,041			163,145			167,400
Net income	56,584			57,139			61,079			63,898			59,519
Diluted EPS ⁽³⁾	0.33			0.33			0.36			0.37			0.35
PERFORMANCE RATIOS
Return on average assets (ROA)	0.90		%	0.93		%	0.98		%	1.03		%	0.98		%
Return on average equity (ROE)	7.85		%	8.08		%	8.50		%	9.03		%	8.62		%
Return on average tangible common equity ⁽¹⁾	11.44		%	11.85		%	12.52		%	13.41		%	12.92		%
Net interest margin TE ⁽¹⁾	3.39		%	3.48		%	3.56		%	3.60		%	3.75		%
Efficiency ratio ⁽¹⁾	62.37		%	61.97		%	60.39		%	59.92		%	60.43		%
Number of full-time equivalent employees	4,017			4,103			4,273			4,302			4,392
MARKET DATA
Book value per common share	$	17.42		$	17.46		$	17.14		$	17.05		$	16.88
Tangible book value per common share ⁽¹⁾	11.95			11.96			11.62			11.52			11.33
Period end common share market value	20.83			19.06			18.89			17.62			19.75
Market as a % of book	120		%	109		%	110		%	103		%	117		%
Cash dividends per common share	$	0.16		$	0.16		$	0.16		$	0.16		$	0.16
Common Stock dividend payout ratio	48.48		%	48.48		%	44.44		%	43.24		%	45.71		%
Average basic common shares	165,736			165,411			165,395			165,389			165,335
Average diluted common shares	166,277			166,003			165,974			165,804			166,147
Period end common shares	165,773			165,453			165,390			165,384			165,393
Common shares repurchased	211			66			15			10			186
Common Stock market capitalization	$	3,453,052		$	3,153,534		$	3,124,217		$	2,914,066		$	3,266,512
ASSET QUALITY (excluding acquired, FDIC acquired loans and covered OREO) ⁽²⁾
Gross charge-offs	$	11,298		$	8,567		$	9,205		$	11,410		$	11,148
Net charge-offs	6,672			4,187			3,849			5,929			6,159
Allowance for originated loan losses	101,682			97,545			95,696			90,883			91,950
Reserve for unfunded lending commitments	3,905			4,330			5,848			6,966			7,107
Nonperforming assets (NPAs)	117,311			68,606			55,038			63,119			60,922
Net charge-offs to average loans ratio	0.20		%	0.13		%	0.12		%	0.20		%	0.22		%
Allowance for originated loan losses to period-end loans	0.76		%	0.76		%	0.77		%	0.75		%	0.80		%
Allowance for credit losses to period-end loans	0.79		%	0.79		%	0.81		%	0.81		%	0.86		%
NPAs to loans and other real estate	0.87		%	0.53		%	0.44		%	0.52		%	0.53		%
Allowance for originated loan losses to nonperforming loans	184.40		%	211.66		%	276.44		%	231.13		%	250.27		%
Allowance for credit losses to nonperforming loans	191.48		%	221.06		%	293.34		%	248.85		%	269.61		%
CAPITAL & LIQUIDITY
Period end tangible common equity to assets ⁽¹⁾	8.09		%	8.14		%	7.98		%	8.01		%	7.89		%
Average equity to assets	11.51		%	11.51		%	11.55		%	11.42		%	11.40		%
Average equity to total loans	18.59		%	18.60		%	18.67		%	18.58		%	18.90		%
Average total loans to deposits	79.06		%	77.86		%	78.47		%	77.36		%	75.15		%
AVERAGE BALANCES
Assets	$	25,129,859		$	24,905,094		$	24,664,987		$	24,583,776		$	24,291,276
Deposits	19,682,662			19,788,925			19,450,647			19,531,800			19,496,795
Originated loans	13,092,972			12,689,791			12,306,171			11,814,314			11,092,101
Acquired loans, including FDIC acquired loans, less loss share receivable	2,468,035			2,717,884			2,956,867			3,295,547			3,558,810
Earning assets	22,352,721			22,100,417			21,920,889			21,804,243			21,367,496
Shareholders' equity	2,892,432			2,866,362			2,849,618			2,807,886			2,768,352
ENDING BALANCES
Assets	$	25,297,014		$	25,118,120		$	24,902,347		$	24,608,207		$	24,564,431
Deposits	19,673,850			19,925,595			19,504,665			19,366,911			19,298,396
Originated loans	13,355,912			12,856,037			12,493,812			12,071,759			11,467,193
Acquired loans, including FDIC acquired loans, less loss share receivable	2,337,378			2,614,847			2,810,302			3,139,521			3,458,453
Goodwill	741,740			741,740			741,740			741,740			741,740
Intangible assets	65,824			68,422			71,020			73,953			76,886
Earning assets	22,599,272			22,395,343			22,153,552			21,930,840			21,789,773
Total shareholders' equity	2,887,957			2,888,786			2,834,281			2,820,431			2,791,738
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, 2015, $95.9 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 Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)				June 30,			December 31,			June 30,
(Unaudited, except December 31, 2014, which is derived from the audited financial statements)				2015			2014			2014
ASSETS
	Cash and due from banks			$	472,848		$	480,998		$	523,027
	Interest-bearing deposits in banks			114,741			216,426			119,543
		Total cash and cash equivalents		587,589			697,424			642,570
	Investment securities:
		Held-to-maturity		2,787,513			2,903,609			3,052,118
		Available-for-sale		3,838,509			3,545,288			3,478,420
		Other investments		147,967			148,654			148,433
	Loans held for sale			5,432			13,428			21,632
	Loans			15,705,110			15,326,147			14,969,627
	Allowance for loan losses			(148,259		)	(143,649		)	(142,036		)
	Net loans			15,556,851			15,182,498			14,827,591
	Premises and equipment, net			313,819			332,297			315,770
	Goodwill			741,740			741,740			741,740
	Intangible assets			65,824			71,020			76,886
	Covered other real estate			1,065			49,641			51,072
	Accrued interest receivable and other assets			1,250,705			1,216,748			1,208,199
			Total assets	$	25,297,014		$	24,902,347		$	24,564,431
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits:
		Noninterest-bearing		$	5,725,850		$	5,786,662		$	5,525,484
		Interest-bearing		3,304,969			3,028,888			3,028,479
		Savings and money market accounts		8,418,716			8,399,612			8,476,096
		Certificates and other time deposits		2,224,315			2,289,503			2,268,337
			Total deposits	19,673,850			19,504,665			19,298,396
		Federal funds purchased and securities sold under agreements to repurchase		1,519,250			1,272,591			1,218,855
		Wholesale borrowings		366,074			428,071			649,021
		Long-term debt		497,393			505,192			324,433
		Accrued taxes, expenses, and other liabilities		352,490			357,547			281,988
			Total liabilities	22,409,057			22,068,066			21,772,693
		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	—			3,000			3,000
			Common Stock, without par value; authorized 300,000,000 shares; issued: June 30, 2015, December 31, 2014 and June 30, 2014 - 170,183,540 shares	127,937			127,937			127,937
			Capital surplus	1,379,194			1,393,090			1,387,253
			Accumulated other comprehensive loss	(67,621		)	(71,892		)	(39,507		)
			Retained earnings	1,462,859			1,404,717			1,335,371
			Treasury stock, at cost: June 30, 2015 - 4,410,939; December 31, 2014 - 4,793,566 shares; June 30, 2014 - 4,790,517 shares	(114,412		)	(122,571		)	(122,316		)
			Total shareholders' equity	2,887,957			2,834,281			2,791,738
			Total liabilities and shareholders' equity	$	25,297,014		$	24,902,347		$	24,564,431

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES Period End Loans by Product Type (Unaudited)
(In thousands)	As of June 30, 2015
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans ⁽²⁾			Total Loans
Commercial	$	8,196,630		$	877,598		$	145,821		$	9,220,049
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
Leases	436,702			—			—			436,702
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


	As of March 31, 2015
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans ⁽²⁾			Total Loans
Commercial	$	8,031,892		$	1,011,170		$	179,547		$	9,222,609
Mortgage	639,980			378,192			40,470			1,058,642
Installment	2,500,288			717,693			4,781			3,222,762
Home equity	1,134,238			217,824			65,170			1,417,232
Credit card	160,766			—			—			160,766
Leases	388,873			—			—			388,873
Subtotal	12,856,037			2,324,879			289,968			15,470,884
Loss share receivable	—			—			20,005			20,005
Total loans	12,856,037			2,324,879			309,973			15,490,889
Allowance for loan losses	(97,545		)	(7,493		)	(41,514		)	(146,552		)
Net loans	$	12,758,492		$	2,317,386		$	268,459		$	15,344,337


	As of December 31, 2014
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans ⁽²⁾			Total Loans
Commercial	$	7,830,085		$	1,086,899		$	211,607		$	9,128,591
Mortgage	625,283			394,484			41,276			1,061,043
Installment	2,393,451			764,168			4,874			3,162,493
Home equity	1,110,336			233,629			73,365			1,417,330
Credit card	164,478			—			—			164,478
Leases	370,179			—			—			370,179
Subtotal	12,493,812			2,479,180			331,122			15,304,114
Loss share receivable	—			—			22,033			22,033
Total loans	12,493,812			2,479,180			353,155			15,326,147
Allowance for loan losses	(95,696		)	(7,457		)	(40,496		)	(143,649		)
Net loans	$	12,398,116		$	2,471,723		$	312,659		$	15,182,498


	As of September 30, 2014
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans ⁽²⁾			Total Loans
Commercial	$	7,626,166		$	1,272,244		$	262,319		$	9,160,729
Mortgage	605,998			410,065			43,672			1,059,735
Installment	2,277,533			809,820			5,148			3,092,501
Home equity	1,062,013			252,975			83,278			1,398,266
Credit card	160,113			—			—			160,113
Leases	339,936			—			—			339,936
Subtotal	12,071,759			2,745,104			394,417			15,211,280
Loss share receivable	—			—			30,746			30,746
Total loans	12,071,759			2,745,104			425,163			15,242,026
Allowance for loan losses	(90,883		)	(6,206		)	(42,988		)	(140,077		)
Net loans	$	11,980,876		$	2,738,898		$	382,175		$	15,101,949

FirstMerit Corporation Reports Second Quarter 2015 EPS Results




	As of June 30, 2014
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans ⁽²⁾			Total Loans
Commercial	$	7,365,499		$	1,457,903		$	292,782		$	9,116,184
Mortgage	580,166			425,584			46,705			1,052,455
Installment	2,051,587			872,034			5,364			2,928,985
Home equity	998,179			268,266			89,815			1,356,260
Credit card	151,967			—			—			151,967
Leases	319,795			—			—			319,795
Subtotal	11,467,193			3,023,787			434,666			14,925,646
Loss share receivable	—			—			43,981			43,981
Total loans	11,467,193			3,023,787			478,647			14,969,627
Allowance for loan losses	(91,950		)	(4,977		)	(45,109		)	(142,036		)
Net loans	$	11,375,243		$	3,018,810		$	433,538		$	14,827,591

(1) Loans assumed from Citizens.

(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, 2015, $95.9 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
	Three Months Ended
(Unaudited)	June 30,			March 31,			December 31,			September 30,			June 30,
(In thousands)	2015			2015			2014			2014			2014
ASSETS
Cash and cash equivalents	$	518,820		$	563,265		$	500,559		$	521,210		$	662,000
Investment securities:
Held-to-maturity	2,806,325			2,874,169			2,966,127			3,029,971			3,061,711
Available-for-sale	3,816,827			3,645,057			3,499,528			3,460,312			3,444,830
Other investments	148,577			148,532			148,636			148,427			148,440
Loans held for sale	3,631			5,478			16,708			17,433			10,196
Loans	15,577,361			15,427,181			15,289,890			15,148,100			14,702,319
Less: allowance for loan losses	146,558			144,363			138,540			140,026			146,368
Net loans	15,430,803			15,282,818			15,151,350			15,008,074			14,555,951
Total earning assets	22,352,721			22,100,417			21,920,889			21,804,243			21,367,496
Premises and equipment, net	320,492			322,431			321,187			317,366			323,175
Accrued interest receivable and other assets	2,084,384			2,063,344			2,060,892			2,080,983			2,084,973
TOTAL ASSETS	$	25,129,859		$	24,905,094		$	24,664,987		$	24,583,776		$	24,291,276
LIABILITIES
Deposits:
Noninterest-bearing	$	5,722,240		$	5,728,763		$	5,706,631		$	5,603,104		$	5,515,807
Interest-bearing	3,203,836			3,209,285			3,021,188			3,100,904			3,066,201
Savings and money market accounts	8,467,845			8,542,154			8,381,548			8,492,172			8,580,928
Certificates and other time deposits	2,288,741			2,308,723			2,341,280			2,335,620			2,333,859
Total deposits	19,682,662			19,788,925			19,450,647			19,531,800			19,496,795
Federal funds purchased and securities sold under
agreements to repurchase	1,285,920			1,024,863			1,241,948			1,182,507			1,024,598
Wholesale borrowings	393,379			350,991			450,587			438,941			373,213
Long-term debt	508,744			505,275			350,535			320,387			324,431
Total funds	21,870,705			21,670,054			21,493,717			21,473,635			21,219,037
Accrued taxes, expenses and other liabilities	366,722			368,678			321,652			302,255			303,887
Total liabilities	22,237,427			22,038,732			21,815,369			21,775,890			21,522,924
SHAREHOLDERS' EQUITY
Preferred stock	100,000			100,000			100,000			100,000			100,000
Common stock warrant	1,385			3,000			3,000			3,000			3,000
Common stock	127,937			127,937			127,937			127,937			127,937
Capital surplus	1,382,717			1,393,682			1,391,189			1,388,423			1,386,497
Accumulated other comprehensive loss	(51,571		)	(58,025		)	(38,827		)	(41,963		)	(44,952		)
Retained earnings	1,447,195			1,422,067			1,388,661			1,352,867			1,319,515
Treasury stock	(115,231		)	(122,299		)	(122,342		)	(122,378		)	(123,645		)
Total shareholders' equity	2,892,432			2,866,362			2,849,618			2,807,886			2,768,352
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	25,129,859		$	24,905,094		$	24,664,987		$	24,583,776		$	24,291,276

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES Average Loans by Product Type (Unaudited)
(In thousands)	Three Months Ended June 30, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
Commercial	$	8,098,653	$	937,480	$	162,217	$	9,198,350
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
Leases	408,384		—		—		408,384
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
Less 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


	Three Months ended March 31, 2015
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
Commercial	$	7,979,901	$	1,053,601	$	196,421	$	9,229,923
Mortgage	631,761		386,033		40,800		1,058,594
Installment	2,424,956		742,095		4,822		3,171,873
Home equity	1,122,988		224,444		69,668		1,417,100
Credit card	162,160		—		—		162,160
Leases	368,025		—		—		368,025
Subtotal	12,689,791		2,406,173		311,711		15,407,675
Loss share receivable	—		—		19,506		19,506
Total loans	12,689,791		2,406,173		331,217		15,427,181
Less allowance for loan losses	95,952		8,287		40,124		144,363
Net loans	$	12,593,839	$	2,397,886	$	291,093	$	15,282,818


	Three Months Ended December 31, 2014
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
Commercial	$	7,734,881	$	1,170,536	$	231,531	$	9,136,948
Mortgage	617,803		401,173		42,409		1,061,385
Installment	2,353,599		785,035		4,944		3,143,578
Home equity	1,087,123		242,878		78,361		1,408,362
Credit card	161,543		—		—		161,543
Leases	351,222		—		—		351,222
Subtotal	12,306,171		2,599,622		357,245		15,263,038
Loss share receivable	—		—		26,852		26,852
Total loans	12,306,171		2,599,622		384,097		15,289,890
Less allowance for loan losses	91,178		6,203		41,159		138,540
Net loans	$	12,214,993	$	2,593,419	$	342,938	$	15,151,350


	Three Months Ended September 30, 2014
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
Commercial	$	7,534,848	$	1,373,103	$	271,299	$	9,179,250
Mortgage	594,258		416,417		44,672		1,055,347
Installment	2,171,246		838,687		5,278		3,015,211
Home equity	1,030,256		259,867		86,224		1,376,347
Credit card	156,866		—		—		156,866
Leases	326,840		—		—		326,840
Subtotal	11,814,314		2,888,074		407,473		15,109,861
Loss share receivable	—		—		38,239		38,239
Total loans	11,814,314		2,888,074		445,712		15,148,100
Less allowance for loan losses	91,888		6,088		42,050		140,026
Net loans	$	11,722,426	$	2,881,986	$	403,662	$	15,008,074

FirstMerit Corporation Reports Second Quarter 2015 EPS Results




	Three Months Ended June 30, 2014
	Originated Loans		Acquired Loans ⁽¹⁾		FDIC Acquired Loans ⁽²⁾		Total Loans
Commercial	$	7,185,060	$	1,492,139	$	303,721	$	8,980,920
Mortgage	565,703		434,936		48,258		1,048,897
Installment	1,939,802		907,069		5,445		2,852,316
Home equity	969,592		275,387		91,855		1,336,834
Credit card	149,903		—		—		149,903
Leases	282,041		—		—		282,041
Subtotal	11,092,101		3,109,531		449,279		14,650,911
Loss share receivable	—		—		51,408		51,408
Total loans	11,092,101		3,109,531		500,687		14,702,319
Less allowance for loan losses	94,063		3,034		49,271		146,368
Net loans	$	10,998,038	$	3,106,497	$	451,416	$	14,555,951

(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. Includes non-single family loans for which the loss share agreement expired on March 31, 2015 and June 30, 2015.

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



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

	Three months ended							Three months ended							Three months ended
	June 30, 2015							March 31, 2015							June 30, 2014
(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	$	518,820						$	563,265						$	662,000
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	5,452,598			$	27,098	1.99	%	5,329,725			$	26,760	2.04	%	5,303,645			$	26,751	2.02	%
Obligations of states and political subdivisions (tax exempt)	724,653			8,443		4.67	%	733,157			9,147		5.06	%	767,731			8,753		4.57	%
Other securities and federal funds sold	594,478			5,077		3.43	%	604,876			5,190		3.48	%	583,605			5,501		3.78	%
Total investment securities and federal funds sold	6,771,729			40,618		2.41	%	6,667,758			41,097		2.50	%	6,654,981			41,005		2.47	%
Loans held for sale	3,631			46		5.08	%	5,478			57		4.22	%	10,196			89		3.51	%
Loans, including loss share receivable⁽²⁾	15,577,361			162,610		4.19	%	15,427,181			162,292		4.27	%	14,702,319			173,320		4.73	%
Total earning assets	22,352,721			$	203,274	3.65	%	22,100,417			$	203,446	3.73	%	21,367,496			$	214,414	4.02	%
Total allowance for loan losses	(146,558		)					(144,363		)					(146,368		)
Other assets	2,404,876							2,385,775							2,408,148
Total assets	$	25,129,859						$	24,905,094						$	24,291,276
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	5,722,240		$	—	—	%	$	5,728,763		$	—	—	%	$	5,515,807		$	—	—	%
Interest-bearing	3,203,836			783		0.10	%	3,209,285			767		0.10	%	3,066,201			745		0.10	%
Savings and money market accounts	8,467,845			5,588		0.26	%	8,542,154			5,547		0.26	%	8,580,928			5,477		0.26	%
Certificates and other time deposits	2,288,741			2,510		0.44	%	2,308,723			2,177		0.38	%	2,333,859			3,009		0.52	%
Total deposits	19,682,662			8,881		0.18	%	19,788,925			8,491		0.17	%	19,496,795			9,231		0.19	%
Securities sold under agreements to repurchase	1,285,920			329		0.10	%	1,024,863			243		0.10	%	1,024,598			233		0.09	%
Wholesale borrowings	393,379			2,351		2.40	%	350,991			2,340		2.70	%	373,213			1,391		1.49	%
Long-term debt	508,744			2,695		2.12	%	505,275			2,818		2.26	%	324,431			3,893		4.81	%
Total interest-bearing liabilities	16,148,465			14,256		0.35	%	15,941,291			13,892		0.35	%	15,703,230			14,748		0.38	%
Other liabilities	366,722							368,678							303,887
Shareholders' equity	2,892,432							2,866,362							2,768,352
Total liabilities and shareholders' equity	$	25,129,859						$	24,905,094						$	24,291,276
Net yield on earning assets	$	22,352,721		$	189,018	3.39	%	$	22,100,417		$	189,554	3.48	%	$	21,367,496		$	199,666	3.75	%
Interest rate spread						3.30	%						3.38	%						3.65	%

(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 $3.9 million, $3.9 million, and $4.1 million for the three months ended June 30, 2015, March 31, 2015, and June 30, 2014, respectively.

(2) Nonaccrual loans have been included in the average balances.

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



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

	Six Months Ended							Six Months Ended
	June 30, 2015							June 30, 2014
(Unaudited)	Average					Average		Average					Average
(Dollars in thousands)	Balance			Interest ⁽¹⁾		Rate		Balance			Interest ⁽¹⁾		Rate
ASSETS
Cash and cash equivalents	$	540,920						$	809,715
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	5,391,501			$	53,858	2.01	%	5,227,913			$	52,661	2.03	%
Obligations of states and political subdivisions (tax exempt)	728,882			17,590		4.87	%	753,880			17,365		4.65	%
Other securities and federal funds sold	599,648			10,267		3.45	%	588,457			11,614		3.98	%
Total investment securities and federal funds sold	6,720,031			81,715		2.45	%	6,570,250			81,640		2.51	%
Loans held for sale	4,550			103		4.56	%	8,510			148		3.52	%
Loans, including loss share receivable ⁽²⁾	15,502,686			324,902		4.23	%	14,558,200			344,453		4.77	%
Total earning assets	22,227,267			$	406,720	3.69	%	21,136,960			$	426,241	4.07	%
Total allowance for loan losses	(145,467		)					(142,649		)
Other assets	2,393,014							2,412,433
Total assets	$	25,015,734						$	24,216,459
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	5,725,483		$	—	—	%	$	5,502,354		$	—	—	%
Interest-bearing	3,206,545			1,550		0.10	%	3,056,132			1,481		0.10	%
Savings and money market accounts	8,504,794			11,135		0.26	%	8,639,547			11,035		0.26	%
Certificates and other time deposits	2,298,677			4,687		0.41	%	2,368,231			5,473		0.47	%
Total deposits	19,735,499			17,372		0.18	%	19,566,264			17,989		0.19	%
Securities sold under agreements to repurchase	1,156,113			572		0.10	%	954,719			429		0.09	%
Wholesale borrowings	372,302			4,691		2.54	%	325,036			2,520		1.56	%
Long-term debt	505,125			5,513		2.20	%	324,430			7,783		4.84	%
Total interest-bearing liabilities	16,043,556			28,148		0.35	%	15,668,095			28,721		0.37	%
Other liabilities	367,226							295,124
Shareholders' equity	2,879,469							2,750,886
Total liabilities and shareholders' equity	$	25,015,734						$	24,216,459
Net yield on earning assets	$	22,227,267		$	378,572	3.43	%	$	21,136,960		$	397,520	3.79	%
Interest rate spread						3.34	%						3.70	%

⁽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 $8.0 million for the six months ended June 30, 2015 and 2014, respectively.

⁽²⁾ Nonaccrual loans have been included in the average balances.

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(In thousands, except per share amounts)				Three Months Ended				Six Months Ended
(Unaudited)				June 30,				June 30,
				2015		2014		2015		2014
Interest income:
	Loans and loans held for sale			$	161,872	$	172,517	$	323,411	$	343,030
	Investment securities:
		Taxable		32,175		32,253		64,125		64,275
		Tax-exempt		5,327		5,555		11,353		10,895
		Total investment securities interest		37,502		37,808		75,478		75,170
			Total interest income	199,374		210,325		398,889		418,200
Interest expense:
	Deposits:
		Interest-bearing		783		745		1,550		1,481
		Savings and money market accounts		5,588		5,477		11,135		11,035
		Certificates and other time deposits		2,510		3,009		4,687		5,473
	Federal funds purchased and securities sold under agreements to repurchase			329		233		572		429
	Wholesale borrowings			2,351		1,391		4,691		2,520
	Long-term debt			2,695		3,893		5,513		7,783
		Total interest expense		14,256		14,748		28,148		28,721
		Net interest income		185,118		195,577		370,741		389,479
	Provision for loan losses			8,966		15,253		17,214		29,790
		Net interest income after provision for loan losses		176,152		180,324		353,527		359,689
Noninterest income:
	Trust department income			10,820		10,070		20,969		19,818
	Service charges on deposits			16,704		18,528		32,372		35,176
	Credit card fees			14,124		13,455		26,773		25,607
	ATM and other service fees			6,345		5,996		12,444		11,816
	Bank owned life insurance income			3,697		4,040		7,289		7,622
	Investment services and insurance			3,871		3,852		7,575		7,368
	Investment securities gains/(losses), net			567		80		921		136
	Loan sales and servicing income			3,276		4,462		4,876		8,192
	Other operating income			7,178		12,077		19,210		24,096
		Total noninterest income		66,582		72,560		132,429		139,831
Noninterest expenses:
	Salaries, wages, pension and employee benefits			86,020		89,465		176,546		178,478
	Net occupancy expense			13,727		14,347		29,681		31,361
	Equipment expense			12,592		12,267		23,617		24,178
	Stationery, supplies and postage			3,370		3,990		6,898		8,097
	Bankcard, loan processing and other costs			12,461		11,810		23,600		22,644
	Professional services			5,358		4,745		9,368		10,103
	Amortization of intangibles			2,598		2,933		5,196		5,869
	FDIC insurance expense			5,077		5,533		10,244		11,504
	Other operating expense			20,471		22,310		37,176		44,499
		Total noninterest expenses		161,674		167,400		322,326		336,733
Income before income tax expense				81,060		85,484		163,630		162,787
Income tax expense				24,476		25,965		49,907		49,813
			Net income	$	56,584	$	59,519	$	113,723	$	112,974
Less:			Net income allocated to participating shareholders	467		489		937		926
			Preferred stock dividends	1,469		1,469		2,938		2,938
Net income attributable to common shareholders				$	54,648	$	57,561	$	109,848	$	109,110
Net income used in diluted EPS calculation				$	54,648	$	57,561	$	109,848	$	109,110
Weighted average number of common shares outstanding - basic				165,736		165,335		165,574		165,198
Weighted average number of common shares outstanding - diluted				166,277		166,147		166,089		166,052
Basic earnings per common share				$	0.33	$	0.35	$	0.66	$	0.66
Diluted earnings per common share				$	0.33	$	0.35	$	0.66	$	0.66
Cash dividends per common share				$	0.16	$	0.16	$	0.32	$	0.32

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)	Three Months Ended									Six Months Ended
(In thousands)	June 30, 2015									June 30, 2015
	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



(Unaudited)	Three Months Ended									Six Months Ended
(In thousands)	June 30, 2014									June 30, 2014
	Pre-tax			Tax			After-tax			Pre-tax			Tax			After-tax
Net Income	$	85,484		$	25,965		$	59,519		$	162,787		$	49,813		$	112,974
Other comprehensive income/(loss)
Unrealized gains and losses on securities available for sale:
Changes in unrealized securities' holding gains/(losses)	22,456			7,860			14,596			40,500			14,175			26,325
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity	(494		)	(173		)	(321		)	(988		)	(346		)	(642		)
Net losses/(gains) realized on sale of securities reclassified to noninterest income	(80		)	(28		)	(52		)	(136		)	(48		)	(88		)
Net change in unrealized gains/(losses) on securities available for sale	21,882			7,659			14,223			39,376			13,781			25,595
Pension plans and other postretirement benefits:
Amortization of actuarial gain	1,631			571			1,060			1,631			571			1,060
Amortization of prior service cost reclassified to other noninterest expense	1,097			383			714			1,097			383			714
Net change from defined benefit pension plans	2,728			954			1,774			2,728			954			1,774
Total other comprehensive gains/(losses)	24,610			8,613			15,997			42,104			14,735			27,369
Comprehensive income	$	110,094		$	34,578		$	75,516		$	204,891		$	64,548		$	140,343

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



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

	Quarterly Results
(In thousands, except per share amounts)	2015		2015		2014		2014		2014
(Unaudited)	2nd qtr		1st qtr		4th qtr		3rd qtr		2nd qtr
Interest Income:
Loans and loans held for sale	$	161,872	$	161,539	$	168,650	$	170,648	$	172,517
Investment securities	37,502		37,976		37,451		37,549		37,808
Total interest income	199,374		199,515		206,101		208,197		210,325
Interest expense:
Deposits:
Interest-bearing	783		767		727		755		745
Savings and money market accounts	5,588		5,547		5,496		5,570		5,477
Certificates and other time deposits	2,510		2,177		2,525		2,846		3,009
Federal funds purchased and securities sold under agreements to repurchase	329		243		294		268		233
Wholesale borrowings	2,351		2,340		2,360		1,397		1,391
Long-term debt	2,695		2,818		2,188		3,783		3,893
Total interest expense	14,256		13,892		13,590		14,619		14,748
Net interest income	185,118		185,623		192,511		193,578		195,577
Provision for loan losses	8,966		8,248		13,297		9,192		15,253
Net interest income after provision for loan losses	176,152		177,375		179,214		184,386		180,324
Noninterest income:
Trust department income	10,820		10,149		9,831		10,300		10,070
Service charges on deposits	16,704		15,668		17,597		18,684		18,528
Credit card fees	14,124		12,649		13,305		13,754		13,455
ATM and other service fees	6,345		6,099		6,181		6,182		5,996
Bank owned life insurance income	3,697		3,592		7,337		4,218		4,040
Investment services and insurance	3,871		3,704		4,171		3,606		3,852
Investment securities gains/(losses), net	567		354		16		14		80
Loan sales and servicing income	3,276		1,600		3,112		4,740		4,462
Other operating income	7,178		12,032		10,410		8,235		12,077
Total noninterest income	66,582		65,847		71,960		69,733		72,560
Noninterest expenses:
Salaries, wages, pension and employee benefits	86,020		90,526		89,899		90,593		89,465
Net occupancy expense	13,727		15,954		14,188		13,887		14,347
Equipment expense	12,592		11,025		12,133		12,188		12,267
Stationery, supplies and postage	3,370		3,528		3,767		3,723		3,990
Bankcard, loan processing and other costs	12,461		11,139		11,830		11,151		11,810
Professional services	5,358		4,010		6,440		5,270		4,745
Amortization of intangibles	2,598		2,598		2,933		2,933		2,933
FDIC insurance expense	5,077		5,167		5,989		2,988		5,533
Other operating expense	20,471		16,705		17,862		20,412		22,310
Total noninterest expenses	161,674		160,652		165,041		163,145		167,400
Income before income tax expense	81,060		82,570		86,133		90,974		85,484
Income tax expense	24,476		25,431		25,054		27,076		25,965
Net income	56,584		57,139		61,079		63,898		59,519
Less: Net income allocated to participating shareholders	467		407		496		519		489
Preferred stock dividends	1,469		1,469		1,469		1,469		1,469
Net income attributable to common shareholders	$	54,648	$	55,263	$	59,114	$	61,910	$	57,561
Net income used in diluted EPS calculation	$	54,648	$	55,263	$	59,114	$	61,910	$	57,561
Weighted-average number of common shares outstanding - basic	165,736		165,411		165,395		165,389		165,335
Weighted-average number of common shares outstanding- diluted	166,277		166,003		165,974		165,804		166,147
Basic earnings per common share	$	0.33	$	0.33	$	0.36	$	0.37	$	0.35
Diluted earnings per common share	$	0.33	$	0.33	$	0.36	$	0.37	$	0.35
Cash dividends per common share	$	0.16	$	0.16	$	0.16	$	0.16	$	0.16

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL

(Unaudited)
(In thousands)
	2015		2015		2014		2014		2014
Noninterest income detail	2nd qtr		1st qtr		4th qtr		3rd qtr		2nd qtr
Trust department income	$	10,820	$	10,149	$	9,831	$	10,300	$	10,070
Service charges on deposits	16,704		15,668		17,597		18,684		18,528
Credit card fees	14,124		12,649		13,305		13,754		13,455
ATM and other service fees	6,345		6,099		6,181		6,182		5,996
Bank owned life insurance income	3,697		3,592		7,337		4,218		4,040
Investment services and insurance	3,871		3,704		4,171		3,606		3,852
Investment securities gains/(losses), net	567		354		16		14		80
Loan sales and servicing income	3,276		1,600		3,112		4,740		4,462
Other operating income	7,178		12,032		10,410		8,235		12,077
Total Noninterest Income	$	66,582	$	65,847	$	71,960	$	69,733	$	72,560
	2015		2015		2014		2014		2014
Noninterest expense detail	2nd qtr		1st qtr		4th qtr		3rd qtr		2nd qtr
Salaries and wages	$	67,485	$	71,914	$	71,638	$	71,769	$	69,892
Pension and employee benefits	18,535		18,612		18,261		18,824		19,573
Net occupancy expense	13,727		15,954		14,188		13,887		14,347
Equipment expense	12,592		11,025		12,133		12,188		12,267
Taxes, other than federal income taxes	2,032		2,014		1,661		1,286		2,576
Stationery, supplies and postage	3,370		3,528		3,767		3,723		3,990
Bankcard, loan processing and other costs	12,461		11,139		11,830		11,151		11,810
Advertising	3,103		2,747		3,586		3,942		3,801
Professional services	5,358		4,010		6,440		5,270		4,745
Telephone	2,599		2,574		2,779		2,831		2,857
Amortization of intangibles	2,598		2,598		2,933		2,933		2,933
FDIC insurance expense	5,077		5,167		5,989		2,988		5,533
Other operating expense	12,737		9,370		9,836		12,353		13,076
Total Noninterest Expense	$	161,674	$	160,652	$	165,041	$	163,145	$	167,400

FirstMerit Corporation Reports Second Quarter 2015 EPS Results



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


(Unaudited)	(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	2015			2015			2014			2014			2014			2014
Allowance for originated loan losses, beginning of period	$	97,545		$	95,696		$	90,883		$	91,950		$	92,116		$	96,484
Provision for originated loan losses	10,809			6,036			8,662			4,862			5,993			23,171
Charge-offs	11,298			8,567			9,205			11,410			11,148			44,923
Recoveries	4,626			4,380			5,356			5,481			4,989			20,964
Net charge-offs	6,672			4,187			3,849			5,929			6,159			23,959
Allowance for originated loan losses, end of period	$	101,682		$	97,545		$	95,696		$	90,883		$	91,950		$	95,696
Reserve for unfunded lending commitments,
beginning of period	$	4,330		$	5,848		$	6,966		$	7,107		$	7,481		$	7,907
Provision for (relief of) credit losses	(425		)	(1,518		)	(1,118		)	(141		)	(374		)	(2,059		)
Reserve for unfunded lending commitments,
end of period	$	3,905		$	4,330		$	5,848		$	6,966		$	7,107		$	5,848
Allowance for Credit Losses	$	105,587		$	101,875		$	101,544		$	97,849		$	99,057		$	101,544
Ratios
Provision for loan losses to average loans	0.33		%	0.19		%	0.28		%	0.16		%	0.22		%	0.20		%
Net charge-offs to average loans	0.20		%	0.13		%	0.12		%	0.20		%	0.22		%	0.21		%
Allowance for loan losses to period-end loans	0.76		%	0.76		%	0.77		%	0.75		%	0.80		%	0.77		%
Allowance for credit losses to period-end loans	0.79		%	0.79		%	0.81		%	0.81		%	0.86		%	0.81		%
Allowance for loan losses to nonperforming loans	184.40		%	211.66		%	276.44		%	231.13		%	250.27		%	276.44		%
Allowance for credit losses to nonperforming loans	191.48		%	221.06		%	293.34		%	248.85		%	269.61		%	293.34		%
Asset Quality
Impaired originated loans:
Commercial loans	$	37,889		$	28,478		$	17,147		$	22,347		$	21,072		$	17,147
Consumer loans	17,253			17,607			17,470			16,974			15,669			17,470
Total nonperforming loans	55,142			46,085			34,617			39,321			36,741			34,617
Other real estate owned ("OREO"), noncovered ⁽²⁾	62,169			22,521			20,421			23,798			24,181			20,421
Total nonperforming assets ("NPAs") ⁽²⁾	$	117,311		$	68,606		$	55,038		$	63,119		$	60,922		$	55,038
NPAs to period-end loans + noncovered OREO ⁽²⁾	0.87		%	0.53		%	0.44		%	0.52		%	0.53		%	0.44		%
Accruing originated loans past due 90 days or more	$	8,009		$	7,914		$	12,156		$	8,538		$	15,643		$	12,156

(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, 2015, $95.9 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

(2) As of June 30, 2015, $42.0 million of OREO was no longer covered by a FDIC loss share agreement, 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 Reports Second Quarter 2015 EPS Results



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,
	2015			2014			2015			2014			2014
Allowance for originated loan losses - beginning of period	$	97,545		$	92,116		$	95,696		$	96,484		$	96,484
Loans charged off:
Commercial	3,577			3,057			4,262			8,210			12,701
Mortgage	373			834			797			1,393			2,031
Installment	4,621			4,076			9,226			8,660			17,932
Home equity	971			1,204			1,882			2,042			4,831
Credit cards	1,209			1,311			2,661			2,766			4,604
Leases	—			—			—			—			—
Overdrafts	547			666			1,037			1,237			2,824
Total	11,298			11,148			19,865			24,308			44,923
Recoveries:
Commercial	448			404			773			1,433			4,332
Mortgage	89			67			124			105			318
Installment	2,716			2,728			5,584			5,466			10,513
Home equity	839			820			1,452			1,519			2,940
Credit cards	358			439			724			857			1,716
Manufactured housing	6			13			19			24			87
Leases	3			372			7			372			379
Overdrafts	167			146			323			351			679
Total	4,626			4,989			9,006			10,127			20,964
Net charge-offs	6,672			6,159			10,859			14,181			23,959
Provision for originated loan losses	10,809			5,993			16,845			9,647			23,171
Allowance for originated loan losses-end of period	$	101,682		$	91,950		$	101,682		$	91,950		$	95,696

Average originated loans	$	13,092,972		$	11,092,101		$	12,892,495		$	10,772,020		$	11,421,426
Ratio (annualized) to average originated loans:
Originated net charge-offs	0.20		%	0.22		%	0.17		%	0.27		%	0.21		%
Provision for originated loan losses	0.33		%	0.22		%	0.26		%	0.18		%	0.20		%
Originated Loans, period-end	$	13,355,912		$	11,467,193		$	13,355,912		$	11,467,193		$	12,493,812

Allowance for credit losses:	$	105,587		$	99,057		$	105,587		$	99,057		$	101,544
To (annualized) net charge-offs	3.95			4.01			4.82			3.46			4.24
Allowance for originated loan losses:
To period-end originated loans	0.76		%	0.80		%	0.76		%	0.80		%	0.77		%
To (annualized) net originated charge-offs	3.80			3.72			4.64			3.22			3.99

(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. As of June 30, 2015, $95.9 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

FIRSTMERIT CORP /OH/ - FORM 8-K - EX-99.1 - EXHIBIT 99.1 - July 28, 2015

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