FIRSTMERIT CORP /OH/ - FORM 8-K - EX-99 - EXHIBIT 99

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FirstMerit Corporation Reports First Quarter 2016 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 First Quarter 2016 EPS of $0.31 Per Share

Quarterly Highlights include:


•	Profitability sustained: 68^th consecutive quarter of profitability


•	Integration activities progress: Planned merger with Huntington Bancshares Incorporated ("Huntington") on schedule; merger-related costs of $5.5 million


•	Loan growth continued: Total loan growth of $148.5 million, or 0.92% from the prior quarter


•	Credit quality remained solid: Net charge-offs to average originated loans of 0.22%


•	Balance sheet remained strong: Strong tangible common equity ratio¹ at 8.30%

Akron, Ohio (April 26, 2016) - FirstMerit Corporation (Nasdaq: FMER) (the "Corporation") reported first quarter 2016 net income of $54.1 million, or $0.31 per diluted share. Excluding merger-related charges of $5.5 million, or $3.5 million after tax, EPS was $0.34¹ per diluted share. This compares with $56.7 million, or $0.33 per diluted share, for the fourth quarter 2015 and $57.1 million, or $0.33 per diluted share, for the first quarter 2015.

“Our results in the first quarter of 2016 reflect strong performance throughout the organization. We successfully achieved solid loan growth, continued to provide high levels of customer service and remain focused on expense management,” said Paul G. Greig, chairman, president and CEO, FirstMerit Corporation.

“We are actively preparing and planning our merger integration with Huntington. We are pleased with the progress and expect to close on schedule during the third quarter of this year," Greig said.

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

FirstMerit Corporation Reports First Quarter 2016 EPS Results

Earnings Summary




										Change 1Q 2016 vs.
	2016			2015			2015			2015		2015
(Dollars in thousands, except per share amounts)	1st qtr			4th qtr			1st qtr			4th qtr		1st qtr
Net interest income TE ¹	$	189,115		$	188,979		$	189,554		0.07	%	(0.23	)%
Diluted earnings per common share	0.31			0.33			0.33			(6.06	)	(6.06	)
Net interest margin on TE basis¹	3.32		%	3.30		%	3.48		%
Return on average assets	0.84			0.89			0.93
Return on average common equity	7.33			7.65			8.08
Return on average tangible common equity ¹	10.52			11.04			11.85

Net Interest Margin

The net interest margin on a TE basis expanded two basis points compared with the prior quarter, driven by the Corporation’s asset sensitive balance sheet and the increase in short-term market interest rates. During the first quarter 2016, the yield on originated loans increased nine basis points compared with the prior quarter. At March 31, 2016, 81% of the Corporation's commercial loan portfolio is variable or floating rate and will support continued margin expansion in a rising rate environment.

Loans

Average originated loans were $14.2 billion during the first quarter 2016, an increase of $323.9 million, or 2.34%, compared with the fourth quarter 2015, and an increase of $1.5 billion, or 11.80%, compared with the first quarter 2015. The loan growth was balanced between commercial and consumer throughout the footprint. Average originated commercial loans increased $193.0 million, or 2.19%, compared with the prior quarter, and increased $666.7 million, or 7.99%, compared with the year-ago quarter. Average originated installment loans increased $96.8 million, or 3.28%, compared with the prior quarter, and increased $622.8 million, or 25.68%, compared with the year-ago quarter.

Deposits

Average deposits were $20.6 billion during the first quarter 2016, an increase of $632.9 million, or 3.16%, compared with the fourth quarter 2015, and an increase of $846.7 million, or 4.28%, compared with the first quarter 2015. Average core deposits were $18.4 billion during the first quarter 2016, or 89.32% of total average deposits, an increase of $688.7 million, or 3.88%, compared with the fourth quarter 2015 and an increase of $952.3 million, or 5.45%, compared with the first quarter 2015. Deposit growth was strong, reflecting seasonality and increased balances across the footprint. Despite increases 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.

FirstMerit Corporation Reports First Quarter 2016 EPS Results

Noninterest Income




										Change 1Q 2016 vs.
	2016			2015			2015			2015		2015
(Dollars in thousands)	1st qtr			4th qtr			1st qtr			4th qtr		1st qtr
Trust department income	$	10,284		$	10,208		$	10,149		0.74	%	1.33	%
Service charges on deposits	15,586			16,793			15,668			(7.19	)	(0.52	)
Credit card fees	13,578			13,931			12,649			(2.53	)	7.34
ATM and other service fees	6,234			6,626			6,099			(5.92	)	2.21
Bank owned life insurance income	3,696			3,836			3,592			(3.65	)	2.90
Investment services and insurance	3,905			3,816			3,704			2.33		5.43
Investment securities gains/(losses), net	295			(5		)	354			nm		(16.67	)
Loan sales and servicing income	1,852			2,276			1,600			(18.63	)	15.75
Other operating income	11,964			7,662			12,032			56.15		(0.57	)
Total noninterest income	$	67,394		$	65,143		$	65,847		3.46	%	2.35	%

Noninterest income, excluding net securities gains, as a percentage of net revenue¹	26.19		%	25.64		%	25.68		%

nm - Not meaningful

Noninterest income, excluding gains and losses on securities transactions¹, for the first quarter 2016 was $67.1 million, an increase of $2.0 million, or 2.99%, from the fourth quarter 2015 and an increase of $1.6 million, or 2.45%, from the first quarter 2015. The increase in noninterest income as a percentage of net revenue in the first quarter of 2016 compared with the fourth quarter of 2015 and first quarter of 2015 reflects the Corporation’s ongoing success diversifying revenue sources. Other operating income increased $4.3 million, or 56.15%, from the prior quarter due to the denial of four disputed FDIC claims of $6.0 million submitted on the final commercial loss share certificate at June 30, 2015.

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

FirstMerit Corporation Reports First Quarter 2016 EPS Results

Noninterest Expense




										Change 1Q 2016 vs.
	2016			2015			2015			2015		2015
(Dollars in thousands)	1st qtr			4th qtr			1st qtr			4th qtr		1st qtr
Salaries and wages	$	69,410		$	68,151		$	71,914		1.85	%	(3.48	)%
Pension and employee benefits	16,470			18,339			18,612			(10.19	)	(11.51	)
Net occupancy expense	14,774			12,716			15,954			16.18		(7.40	)
Equipment expense	12,408			12,074			11,025			2.77		12.54
Taxes, other than federal income taxes	2,031			2,096			2,014			(3.10	)	0.84
Stationary, supplies and postage	3,619			3,222			3,528			12.32		2.58
Bankcard, loan processing and other costs	11,008			11,146			11,139			(1.24	)	(1.18	)
Advertising	3,260			3,386			2,747			(3.72	)	18.67
Professional services	8,351			5,056			4,010			65.17		108.25
Telephone	2,424			2,530			2,574			(4.19	)	(5.83	)
Amortization of intangibles	2,304			2,598			2,598			(11.32	)	(11.32	)
FDIC expense	5,445			5,252			5,167			3.67		5.38
Other operating expenses	15,459			9,056			9,370			70.70		64.98
Total noninterest expense	$	166,963		$	155,622		$	160,652		7.29	%	3.93	%

Efficiency ratio¹	64.27		%	60.22		%	61.97		%

Noninterest expense for the first quarter 2016 was $167.0 million, an increase of $11.3 million, or 7.29%, from the fourth quarter 2015, and an increase of $6.3 million, or 3.93%, from the first quarter 2015. Included in noninterest expense for the first quarter 2016 was $5.5 million of merger-related costs, or $3.5 million of after tax expense. Professional services expense increased $3.3 million, or 65.17%, from the fourth quarter 2015, and $4.3 million, or 108.25%, from the first quarter 2015 primarily from merger-related costs. Salaries and wages decreased $2.5 million, or 3.48%, compared with the first quarter of 2015, demonstrating expense discipline. Other operating expense experienced an increase of $6.4 million, or 70.70%, from the fourth quarter 2015 primarily due to the favorable re-estimation of certain repurchase reserve liabilities recognized in the prior quarter.

Provision for Income Taxes

The effective tax rate was 30.40% for the first quarter 2016, compared with 30.06% for the fourth quarter 2015, and 30.80% for the first quarter 2015.

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

FirstMerit Corporation Reports First Quarter 2016 EPS Results

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 4Q 2015 vs.
	2016			2015			2015			2015		2015
(Dollars in thousands)	1st qtr			4th qtr			1st qtr			4th qtr		1st qtr
Net charge-offs	$	7,630		$	11,407		$	4,187		(33.11	)%	82.23	%
Net charge-offs on average originated loans	0.22		%	0.33		%	0.13		%
Nonperforming loans at period end	$	73,701		$	44,105		$	44,105		67.10		59.92
Nonperforming assets at period end	112,293			94,498			68,606			18.83		63.68
Allowance for loan losses	102,915			105,135			97,545			(2.11	)	5.51
Allowance for loan losses to nonperforming loans	139.64		%	238.37		%	211.66		%
Provision for originated loan losses	$	5,410		$	12,487		$	6,036		(56.67	)	(10.37	)

Nonperforming assets totaled $112.3 million at March 31, 2016, an increase of $17.8 million, or 18.83%, compared with December 31, 2015 and an increase of $43.7 million, or 63.68%, compared with March 31, 2015. Nonperforming assets at March 31, 2016 represented 0.78% of period-end originated loans plus noncovered other real estate compared with 0.67% at December 31, 2015 and 0.53% at March 31, 2015. Included in nonperforming assets as of March 31, 2016 were $25.5 million of OREO no longer covered by FDIC loss share agreements.

The allowance for originated loan losses totaled $102.9 million at March 31, 2016. At March 31, 2016, the allowance for originated loan losses was 0.72% of period-end originated loans, compared with 0.74% at December 31, 2015, and 0.76% at March 31, 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 March 31, 2016, compared with 0.77% at December 31, 2015, and 0.79% at March 31, 2015. The allowance for credit losses to nonperforming loans was 146.35% at March 31, 2016, compared with 247.60% at December 31, 2015, and 221.06% at March 31, 2015.

Capital

Shareholders’ equity was $3.0 billion at March 31, 2016 and $2.9 billion as of December 31, 2015 and March 31, 2015. The Corporation continued to have a strong capital position as tangible common equity¹ to assets was 8.30% at March 31, 2016, compared with 8.24% at December 31, 2015 and 8.14% at March 31, 2015. The common share cash dividend paid in the first 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.

FirstMerit Corporation Reports First Quarter 2016 EPS Results

At March 31, 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 13.60%, 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 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 branch closing costs. This measure makes it easier to analyze our results by presenting them on a more comparable basis.

FirstMerit Corporation Reports First Quarter 2016 EPS Results

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			2015			2015			2015			2015
(Dollars in thousands)		1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Net interest income (GAAP)		$	185,156		$	185,231		$	185,323		$	185,118		$	185,623
Plus:	Fully taxable-equivalent adjustment	3,959			3,748			3,796			3,900			3,931
Net interest income on a fully taxable-equivalent basis (non-GAAP)		189,115			188,979			189,119			189,018			189,554
Average earning assets		22,890,082			22,747,631			22,548,977			22,352,721			22,100,417
Net interest margin on a fully taxable-equivalent basis (non-GAAP)		3.32		%	3.30		%	3.33		%	3.39		%	3.48		%



Reconciliation of noninterest income and noninterest expense to adjusted noninterest income and adjusted noninterest expense
		Quarters
(unaudited)		2016			2015			2015			2015			2015
(Dollars in thousands)		1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Noninterest expense (GAAP)		$	166,963		$	155,622		$	160,742		$	161,674		$	160,652
Less:	Intangible asset amortization	2,304			2,598			2,598			2,598			2,598
Adjusted noninterest expense (non-GAAP)		164,659			153,024			158,144			159,076			158,054
Noninterest income (GAAP)		67,394			65,143			71,426			66,582			65,847
Less:	Securities gains/(losses)	295			(5		)	41			567			354
Adjusted noninterest income (non-GAAP)		67,099			65,148			71,385			66,015			65,493
Net interest income on a fully taxable-equivalent basis (non-GAAP)		189,115			188,979			189,119			189,018			189,554
Adjusted revenue (non-GAAP)		256,214			254,127			260,504			255,033			255,047
Efficiency ratio (non-GAAP)		64.27		%	60.22		%	60.71		%	62.37		%	61.97		%



Reconciliation of shareholders' equity to tangible common equity, and total assets to tangible assets
		Quarters
(unaudited)		2016			2015			2015			2015			2015
(Dollars in thousands, except per share amounts)		1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Shareholders’ equity (GAAP)		$	2,997,957		$	2,940,095		$	2,937,300		$	2,887,957		$	2,888,786
Less:	Preferred stock	100,000			100,000			100,000			100,000			100,000
Common shareholders' equity (non-GAAP)		2,897,957			2,840,095			2,837,300			2,787,957			2,788,786
Less:	Intangible assets	58,324			60,628			63,226			65,824			68,422
	Goodwill	741,740			741,740			741,740			741,740			741,740
Tangible common equity (non-GAAP)		2,097,893			2,037,727			2,032,334			1,980,393			1,978,624
Total assets (GAAP)		$	26,062,649		$	25,524,604		$	25,246,917		$	25,297,014		$	25,118,120
Less:	Intangible assets	58,324			60,628			63,226			65,824			68,422
	Goodwill	741,740			741,740			741,740			741,740			741,740
Tangible assets (non-GAAP)		$	25,262,585		$	24,722,236		$	24,441,951		$	24,489,450		$	24,307,958
Period end common shares		165,720			165,758			165,759			165,773			165,453
Tangible book value per common share		$	12.66		$	12.29		$	12.26		$	11.95		$	11.96
Tangible common equity to tangible assets ratio (non-GAAP)		8.30		%	8.24		%	8.31		%	8.09		%	8.14		%

FirstMerit Corporation Reports First Quarter 2016 EPS Results



Reconciliation of net income to adjusted net income
		Quarters
(unaudited)		2016			2015			2015			2015			2015
(Dollars in thousands, except per share amounts)		1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
Net income (GAAP)		$	54,136		$	56,749		$	59,012		$	56,584		$	57,139
Net income adjustments
Plus:	Restructure expenses, net of taxes	—			(200		)	—			—			1,149
	Merger-related and branch closure costs, net of taxes	3,546			—			—			1,149			783
	Adjusted net income (non-GAAP)	57,682			56,549			59,012			57,733			59,071
Annualized net income (GAAP)		217,734			225,145			234,124			226,958			231,730
Annualized adjusted net income (non-GAAP)		231,996			224,352			234,124			231,566			239,566
Average assets (GAAP)		25,770,857			25,370,946			25,217,856			25,129,859			24,905,094
Average equity (GAAP)		2,970,167			2,943,268			2,909,660			2,892,432			2,866,362
Average tangible common equity (non-GAAP)		2,068,981			2,039,639			2,003,423			1,983,603			1,954,930
Return on average assets (GAAP)		0.84		%	0.89		%	0.93		%	0.90		%	0.93		%
Adjusted return on average assets (non-GAAP)		0.90		%	0.88		%	0.93		%	0.92		%	0.96		%
Return on average equity (GAAP)		7.33		%	7.65		%	8.05		%	7.85		%	8.08		%
Adjusted return on average equity (non-GAAP)		7.81		%	7.62		%	8.05		%	8.01		%	8.36		%
Return on average tangible common equity (non-GAAP)		10.52		%	11.04		%	11.69		%	11.44		%	11.85		%
	Adjusted return on average tangible common equity (non-GAAP)	11.21		%	11.00		%	11.69		%	11.67		%	12.25		%

Net income used in diluted EPS calculation		$	52,280		$	54,827		$	57,066		$	54,648		$	55,263
Plus:	Restructure expenses, net of taxes	—			(200		)	—			—			1,149
	Merger-related and branch closure costs, net of taxes	3,546			—			—			1,149			783
	Adjusted net income used in diluted EPS calculation (non-GAAP)	55,826			54,627			57,066			55,797			57,195
Weighted average number of common shares outstanding - diluted		166,239			166,222			166,058			166,277			166,003
Diluted earnings per common share		$	0.31		$	0.33		$	0.34		$	0.33		$	0.33
	Adjusted diluted earnings per common share (non-GAAP)	0.34			0.33			0.34			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 three months ended March 31, 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 March 31, 2016 and will adjust amounts preliminarily reported, if necessary.

About FirstMerit Corporation

FirstMerit Corporation is a diversified financial services company headquartered in Akron, Ohio, with assets of approximately $26.1 billion as of March 31, 2016, and 368 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.

FirstMerit Corporation Reports First Quarter 2016 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, 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 Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
Consolidated Financial Highlights
(Unaudited)							Quarters
(Dollars in thousands, except per share amounts)	2016			2015			2015			2015			2015
	1st qtr			4th qtr			3rd qtr			2nd qtr			1st qtr
EARNINGS
Net interest income TE ⁽¹⁾	$	189,115		$	188,979		$	189,119		$	189,018		$	189,554
TE adjustment ⁽¹⁾	3,959			3,748			3,796			3,900			3,931
Provision for originated loan losses	5,410			12,487			10,402			10,809			6,036
Provision/(recapture) for acquired loan losses	1,131			1,503			144			(952		)	2,214
Provision/(recapture) for FDIC acquired loan losses	1,268			(379		)	3,729			(891		)	(2		)
Noninterest income	67,394			65,143			71,426			66,582			65,847
Noninterest expense	166,963			155,622			160,742			161,674			160,652
Net income	54,136			56,749			59,012			56,584			57,139
Diluted EPS ⁽³⁾	0.31			0.33			0.34			0.33			0.33
PERFORMANCE RATIOS
Return on average assets (ROA)	0.84		%	0.89		%	0.93		%	0.90		%	0.93		%
Return on average equity (ROE)	7.33		%	7.65		%	8.05		%	7.85		%	8.08		%
Return on average tangible common equity ⁽¹⁾	10.52		%	11.04		%	11.69		%	11.44		%	11.85		%
Net interest margin TE ⁽¹⁾	3.32		%	3.30		%	3.33		%	3.39		%	3.48		%
Efficiency ratio ⁽¹⁾	64.27		%	60.22		%	60.71		%	62.37		%	61.97		%
Number of full-time equivalent employees	3,949			3,926			3,961			4,017			4,103
MARKET DATA
Book value per common share	$	18.09		$	17.74		$	17.72		$	17.42		$	17.46
Tangible book value per common share ⁽¹⁾	12.66			12.29			12.26			11.95			11.96
Period end common share market value	21.05			18.65			17.67			20.83			19.06
Market as a % of book	116		%	105		%	100		%	120		%	109		%
Cash dividends per common share	$	0.17		$	0.17		$	0.17		$	0.16		$	0.16
Common Stock dividend payout ratio	54.84		%	51.52		%	50.00		%	48.48		%	48.48		%
Average basic common shares	165,745			165,762			165,762			165,736			165,411
Average diluted common shares	166,239			166,222			166,058			166,277			166,003
Period end common shares	165,720			165,758			165,759			165,773			165,453
Common shares repurchased	55			15			20			211			66
Common Stock market capitalization	$	3,488,406		$	3,091,387		$	2,928,962		$	3,453,052		$	3,153,534
ASSET QUALITY (excluding acquired, FDIC acquired loans and covered OREO) ⁽²⁾
Gross charge-offs	$	13,014		$	15,514		$	13,398		$	11,298		$	8,567
Net charge-offs	7,630			11,407			8,029			6,672			4,187
Allowance for originated loan losses	102,915			105,135			104,055			101,682			97,545
Reserve for unfunded lending commitments	4,944			4,068			3,574			3,905			4,330
Nonperforming assets (NPAs)	112,293			94,498			107,058			117,311			68,606
Net charge-offs to average loans ratio	0.22		%	0.33		%	0.24		%	0.20		%	0.13		%
Allowance for originated loan losses to period-end loans	0.72		%	0.74		%	0.76		%	0.76		%	0.76		%
Allowance for credit losses to period-end loans	0.75		%	0.77		%	0.79		%	0.79		%	0.79		%
NPAs to loans and other real estate	0.78		%	0.67		%	0.78		%	0.87		%	0.53		%
Allowance for originated loan losses to nonperforming loans	139.64		%	238.37		%	221.22		%	184.40		%	211.66		%
Allowance for credit losses to nonperforming loans	146.35		%	247.60		%	228.82		%	191.48		%	221.06		%
CAPITAL & LIQUIDITY
Period end tangible common equity to assets ⁽¹⁾	8.30		%	8.24		%	8.31		%	8.09		%	8.14		%
Average equity to assets	11.53		%	11.60		%	11.54		%	11.51		%	11.51		%
Average equity to total loans	18.48		%	18.50		%	18.48		%	18.59		%	18.60		%
Average total loans to deposits	77.87		%	79.54		%	78.91		%	79.06		%	77.86		%
AVERAGE BALANCES
Assets	$	25,770,857		$	25,370,946		$	25,217,856		$	25,129,859		$	24,905,094
Deposits	20,635,665			20,002,793			19,957,586			19,682,662			19,788,925
Originated loans	14,187,793			13,863,910			13,528,268			13,092,972			12,689,791
Acquired loans, including FDIC acquired loans, less loss share receivable	1,881,965			2,047,167			2,219,488			2,468,035			2,717,884
Earning assets	22,890,082			22,747,631			22,548,977			22,352,721			22,100,417
Shareholders' equity	2,970,167			2,943,268			2,909,660			2,892,432			2,866,362
ENDING BALANCES
Assets	$	26,062,649		$	25,524,604		$	25,246,917		$	25,297,014		$	25,118,120
Deposits	21,101,366			20,108,003			19,821,916			19,673,850			19,925,595
Originated loans	14,389,513			14,118,505			13,648,325			13,355,912			12,856,037
Acquired loans, including FDIC acquired loans, less loss share receivable	1,826,501			1,948,493			2,140,029			2,337,378			2,614,847
Goodwill	741,740			741,740			741,740			741,740			741,740
Intangible assets	58,324			60,628			63,226			65,824			68,422
Earning assets	23,525,620			22,955,435			22,661,171			22,599,272			22,395,343
Total shareholders' equity	2,997,957			2,940,095			2,937,300			2,887,957			2,888,786
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

FirstMerit Corporation Reports First Quarter 2016 EPS Results

expired at March 31, 2015 and June 30, 2015, respectively. As of March 31, 2016, $70.7 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 First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED BALANCE SHEETS

(In thousands, except per share amounts)				March 31,			December 31,			March 31,
(Unaudited, except December 31, 2015, which is derived from the audited financial statements)				2016			2015			2015
ASSETS
	Cash and due from banks			$	331,049		$	380,799		$	426,247
	Interest-bearing deposits in banks			428,848			83,018			106,178
		Total cash and cash equivalents		759,897			463,817			532,425
	Investment securities:
		Held-to-maturity		2,613,700			2,674,093			2,855,174
		Available-for-sale		4,104,214			3,967,735			3,791,059
		Other investments		148,159			148,172			148,475
	Loans held for sale			5,249			5,472			3,568
	Loans			16,225,450			16,076,945			15,490,889
	Allowance for loan losses			(151,937		)	(153,691		)	(146,552		)
	Net loans			16,073,513			15,923,254			15,344,337
	Premises and equipment, net			305,764			319,488			320,392
	Goodwill			741,740			741,740			741,740
	Intangible assets			58,324			60,628			68,422
	Covered other real estate			783			2,134			40,231
	Accrued interest receivable and other assets			1,251,306			1,218,071			1,272,297
			Total assets	$	26,062,649		$	25,524,604		$	25,118,120
LIABILITIES AND SHAREHOLDERS' EQUITY
	Deposits:
		Noninterest-bearing		$	6,055,569		$	5,942,248		$	5,666,752
		Interest-bearing		3,641,216			3,476,729			3,277,118
		Savings and money market accounts		9,231,829			8,450,123			8,610,553
		Certificates and other time deposits		2,172,752			2,238,903			2,371,172
			Total deposits	21,101,366			20,108,003			19,925,595
		Federal funds purchased and securities sold under agreements to repurchase		719,850			1,037,075			1,113,371
		Wholesale borrowings		378,996			580,648			316,628
		Long-term debt		519,249			505,173			512,625
		Accrued taxes, expenses, and other liabilities		345,231			353,610			361,115
			Total liabilities	23,064,692			22,584,509			22,229,334
		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
			Common Stock, without par value; authorized 300,000,000 shares; issued: March 31, 2016, December 31, 2015 and March 31, 2015 - 170,183,515 shares	127,937			127,937			127,937
			Capital surplus	1,390,516			1,386,677			1,394,933
			Accumulated other comprehensive loss	(48,341		)	(79,274		)	(49,267		)
			Retained earnings	1,543,976			1,519,438			1,433,926
			Treasury stock, at cost: March 31, 2016 - 4,463,581; December 31, 2015 - 4,425,927; March 31, 2015 - 4,730,374 shares	(116,131		)	(114,683		)	(121,743		)
			Total shareholders' equity	2,997,957			2,940,095			2,888,786
			Total liabilities and shareholders' equity	$	26,062,649		$	25,524,604		$	25,118,120

FirstMerit Corporation Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES Period End Loans by Product Type
(Unaudited)	As of March 31, 2016
(In thousands)	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

FirstMerit Corporation Reports First Quarter 2016 EPS Results



	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


	As of March 31, 2015
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans⁽²⁾			Total Loans
C&I	$	5,317,897		$	420,810		$	42,814		$	5,781,521
CRE	2,133,017			584,072			127,908			2,844,997
Construction	580,978			6,288			8,825			596,091
Leases	388,873			—			—			388,873
Total Commercial	8,420,765			1,011,170			179,547			9,611,482
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
Total Consumer	4,435,272			1,313,709			110,421			5,859,402
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

(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 March 31, 2016, $70.7 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

FirstMerit Corporation Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
AVERAGE CONSOLIDATED BALANCE SHEETS
	Three Months Ended
(Unaudited)	March 31,			December 31,			September 30,			June 30,			March 31,
(In thousands)	2016			2015			2015			2015			2015
ASSETS
Cash and cash equivalents	$	724,095		$	415,756		$	457,317		$	518,820		$	563,265
Investment securities:
Held-to-maturity	2,636,516			2,713,636			2,754,001			2,806,325			2,874,169
Available-for-sale	4,020,701			3,959,051			3,881,959			3,816,827			3,645,057
Other investments	148,165			148,176			147,961			148,577			148,532
Loans held for sale	5,253			5,028			4,929			3,631			5,478
Loans	16,079,447			15,921,740			15,760,127			15,577,361			15,427,181
Allowance for loan losses	(152,600		)	(151,192		)	(147,136		)	(146,558		)	(144,363		)
Net loans	15,926,847			15,770,548			15,612,991			15,430,803			15,282,818
Total earning assets	22,890,082			22,747,631			22,548,977			22,352,721			22,100,417
Premises and equipment, net	313,056			312,771			313,336			320,492			322,431
Accrued interest receivable and other assets	1,996,224			2,045,980			2,045,362			2,084,384			2,063,344
TOTAL ASSETS	$	25,770,857		$	25,370,946		$	25,217,856		$	25,129,859		$	24,905,094
LIABILITIES
Deposits:
Noninterest-bearing	$	5,990,796		$	5,982,186		$	5,897,768		$	5,722,240		$	5,728,763
Interest-bearing	3,590,598			3,352,908			3,353,541			3,203,836			3,209,285
Savings and money market accounts	8,851,135			8,408,703			8,480,682			8,467,845			8,542,154
Certificates and other time deposits	2,203,136			2,258,996			2,225,595			2,288,741			2,308,723
Total deposits	20,635,665			20,002,793			19,957,586			19,682,662			19,788,925
Federal funds purchased and securities sold under
agreements to repurchase	844,290			1,131,659			1,109,924			1,285,920			1,024,863
Wholesale borrowings	473,149			402,679			377,594			393,379			350,991
Long-term debt	505,376			508,954			497,566			508,744			505,275
Total funds	22,458,480			22,046,085			21,942,670			21,870,705			21,670,054
Accrued taxes, expenses and other liabilities	342,210			381,593			365,526			366,722			368,678
Total liabilities	22,800,690			22,427,678			22,308,196			22,237,427			22,038,732
SHAREHOLDERS' EQUITY
Preferred stock	100,000			100,000			100,000			100,000			100,000
Common stock warrant	—			—			—			1,385			3,000
Common stock	127,937			127,937			127,937			127,937			127,937
Capital surplus	1,388,171			1,383,777			1,380,622			1,382,717			1,393,682
Accumulated other comprehensive loss	(61,309		)	(60,821		)	(63,402		)	(51,571		)	(58,025		)
Retained earnings	1,530,545			1,507,069			1,479,181			1,447,195			1,422,067
Treasury stock	(115,177		)	(114,694		)	(114,678		)	(115,231		)	(122,299		)
Total shareholders' equity	2,970,167			2,943,268			2,909,660			2,892,432			2,866,362
TOTAL LIABILITIES AND SHAREHOLDERS' EQUITY	$	25,770,857		$	25,370,946		$	25,217,856		$	25,129,859		$	24,905,094

FirstMerit Corporation Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES Average Loans by Product Type (Unaudited)
(In thousands)	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

FirstMerit Corporation Reports First Quarter 2016 EPS Results



	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


	Three Months Ended March 31, 2015
	Originated Loans			Acquired Loans ⁽¹⁾			FDIC Acquired Loans ⁽²⁾			Total Loans
C&I	$	5,281,194		$	440,103		$	45,307		$	5,766,604
CRE	2,141,764			606,652			142,101			2,890,517
Construction	556,943			6,846			9,013			572,802
Leases	368,025			—			—			368,025
Total Commercial	8,347,926			1,053,601			196,421			9,597,948
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
Total Consumer	4,341,865			1,352,572			115,290			5,809,727
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
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

(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 First Quarter 2016 EPS Results



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
	March 31, 2016							December 31, 2015							March 31, 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	$	724,095						$	415,756						$	563,265
Investment securities and federal funds sold:
U.S. treasury securities and U.S. government agency obligations (taxable)	5,470,079			$	27,763	2.04	%	5,456,888			$	27,744	2.02	%	5,329,725			$	26,760	2.04	%
Obligations of states and political subdivisions (tax exempt)	743,159			8,161		4.42	%	768,288			8,349		4.31	%	733,157			9,147		5.06	%
Other securities and federal funds sold	592,144			5,386		3.66	%	595,687			5,300		3.53	%	604,876			5,190		3.48	%
Total investment securities and federal funds sold	6,805,382			41,310		2.44	%	6,820,863			41,393		2.41	%	6,667,758			41,097		2.50	%
Loans held for sale	5,253			52		3.98	%	5,028			59		4.66	%	5,478			57		4.22	%
Loans, including loss share receivable⁽²⁾	16,079,447			163,285		4.08	%	15,921,740			162,865		4.06	%	15,427,181			162,292		4.27	%
Total earning assets	22,890,082			$	204,647	3.60	%	22,747,631			$	204,317	3.56	%	22,100,417			$	203,446	3.73	%
Total allowance for loan losses	(152,600		)					(151,192		)					(144,363		)
Other assets	2,309,280							2,358,751							2,385,775
Total assets	$	25,770,857						$	25,370,946						$	24,905,094
LIABILITIES AND SHAREHOLDERS' EQUITY
Deposits:
Noninterest-bearing	$	5,990,796		$	—	—	%	$	5,982,186		$	—	—	%	$	5,728,763		$	—	—	%
Interest-bearing	3,590,598			929		0.10	%	3,352,908			754		0.09	%	3,209,285			767		0.10	%
Savings and money market accounts	8,851,135			5,652		0.26	%	8,408,703			5,611		0.26	%	8,542,154			5,547		0.26	%
Certificates and other time deposits	2,203,136			3,289		0.60	%	2,258,996			3,378		0.59	%	2,308,723			2,177		0.38	%
Total deposits	20,635,665			9,870		0.19	%	20,002,793			9,743		0.19	%	19,788,925			8,491		0.17	%
Securities sold under agreements to repurchase	844,290			265		0.13	%	1,131,659			300		0.11	%	1,024,863			243		0.10	%
Wholesale borrowings	473,149			1,234		1.05	%	402,679			1,202		1.18	%	350,991			1,160		1.34	%
Long-term debt	505,376			4,163		3.31	%	508,954			4,093		3.19	%	505,275			3,998		3.21	%
Total interest-bearing liabilities	16,467,684			15,532		0.38	%	16,063,899			15,338		0.38	%	15,941,291			13,892		0.35	%
Other liabilities	342,210							381,593							368,678
Shareholders' equity	2,970,167							2,943,268							2,866,362
Total liabilities and shareholders' equity	$	25,770,857						$	25,370,946						$	24,905,094
Net yield on earning assets	$	22,890,082		$	189,115	3.32	%	$	22,747,631		$	188,979	3.30	%	$	22,100,417		$	189,554	3.48	%
Interest rate spread						3.22	%						3.18	%						3.38	%

(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 $4.0 million, $3.7 million, and $3.9 million for the three months ended March 31, 2016, December 31, 2015, and March 31, 2015, respectively.

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

FirstMerit Corporation Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF INCOME
(Unaudited)				Quarters Ended
(In thousands, except per share amounts)				March 31,
				2016		2015
Interest income:
	Loans and loans held for sale			$	162,278	$	161,539
	Investment securities:
		Taxable		33,149		31,950
		Tax-exempt		5,261		6,026
		Total investment securities interest		38,410		37,976
			Total interest income	200,688		199,515
Interest expense:
	Deposits:
		Interest-bearing		929		767
		Savings and money market accounts		5,652		5,547
		Certificates and other time deposits		3,289		2,177
	Federal funds purchased and securities sold under agreements to repurchase			265		243
	Wholesale borrowings			1,234		1,160
	Long-term debt			4,163		3,998
		Total interest expense		15,532		13,892
		Net interest income		185,156		185,623
	Provision for loan losses			7,809		8,248
		Net interest income after provision for loan losses		177,347		177,375
Noninterest income:
	Trust department income			10,284		10,149
	Service charges on deposits			15,586		15,668
	Credit card fees			13,578		12,649
	ATM and other service fees			6,234		6,099
	Bank owned life insurance income			3,696		3,592
	Investment services and insurance			3,905		3,704
	Investment securities gains/(losses), net			295		354
	Loan sales and servicing income			1,852		1,600
	Other operating income			11,964		12,032
		Total noninterest income		67,394		65,847
Noninterest expense:
	Salaries, wages, pension and employee benefits			85,880		90,526
	Net occupancy expense			14,774		15,954
	Equipment expense			12,408		11,025
	Stationery, supplies and postage			3,619		3,528
	Bankcard, loan processing and other costs			11,008		11,139
	Professional services			8,351		4,010
	Amortization of intangibles			2,304		2,598
	FDIC insurance expense			5,445		5,167
	Other operating expense			23,174		16,705
		Total noninterest expense		166,963		160,652
Income before income tax expense				77,778		82,570
Income tax expense				23,642		25,431
			Net income	$	54,136	$	57,139
Less:			Net income allocated to participating shareholders	387		407
			Preferred stock dividends	1,469		1,469
Net income attributable to common shareholders				$	52,280	$	55,263
Net income used in diluted EPS calculation				$	52,280	$	55,263
Weighted average number of common shares outstanding - basic				165,745		165,411
Weighted average number of common shares outstanding - diluted				166,239		166,003
Basic earnings per common share				$	0.32	$	0.33
Diluted earnings per common share				0.31		0.33
Cash dividends per common share				0.17		0.16

FirstMerit Corporation Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME
(Unaudited)	Quarter Ended
	March 31, 2016
(In thousands)	Pre-tax			Tax			After-tax
Net Income	$	77,778		$	23,642		$	54,136
Other comprehensive income/(loss)
Unrealized gains and losses on securities available for sale:
Changes in unrealized securities' holding gains/(losses)	48,379			17,562			30,817
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity	(1,441		)	(147		)	(1,294		)
Net losses/(gains) realized on sale of securities reclassified to noninterest income	295			107			188
Net change in unrealized gains/(losses) on securities available for sale	47,233			17,522			29,711
Pension plans and other postretirement benefits:
Net gains/(losses) arising during the period	—			—			—
Amortization of actuarial gain	2,168			773			1,395
Amortization of prior service cost reclassified to other noninterest expense	(260		)	(87		)	(173		)
Net change from defined benefit pension plans	1,908			686			1,222
Total other comprehensive gains/(losses)	49,141			18,208			30,933
Comprehensive income	$	126,919		$	41,850		$	85,069



	Quarter Ended
	March 31, 2015
(In thousands)	Pre-tax			Tax			After-tax
Net Income	$	82,570		$	25,431		$	57,139
Other comprehensive income/(loss)
Unrealized gains and losses on securities available for sale:
Changes in unrealized securities' holding gains/(losses)	34,117			11,941			22,176
Changes in unrealized securities' holding gains/(losses) that result from securities being transferred from available-for-sale into held-to-maturity	(504		)	(176		)	(328		)
Net losses/(gains) realized on sale of securities reclassified to noninterest income	(354		)	(124		)	(230		)
Net change in unrealized gains/(losses) on securities available for sale	33,259			11,641			21,618
Pension plans and other postretirement benefits:
Amortization of actuarial gain	1,138			398			740
Amortization of prior service cost reclassified to other noninterest expense	410			143			267
Net change from defined benefit pension plans	1,548			541			1,007
Total other comprehensive gains/(losses)	34,807			12,182			22,625
Comprehensive income	$	117,377		$	37,613		$	79,764

FirstMerit Corporation Reports First Quarter 2016 EPS Results



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

	Quarterly Results
(In thousands, except per share amounts)	2016		2015			2015		2015		2015
(Unaudited)	1st qtr		4th qtr			3rd qtr		2nd qtr		1st qtr
Interest Income:
Loans and loans held for sale	$	162,278	$	162,168		$	162,204	$	161,872	$	161,539
Investment securities	38,410		38,401			37,855		37,502		37,976
Total interest income	200,688		200,569			200,059		199,374		199,515
Interest expense:
Deposits:
Interest-bearing	929		754			750		783		767
Savings and money market accounts	5,652		5,611			5,639		5,588		5,547
Certificates and other time deposits	3,289		3,378			2,757		2,510		2,177
Federal funds purchased and securities sold under agreements to repurchase	265		300			254		329		243
Wholesale borrowings	1,234		1,202			1,171		1,129		1,160
Long-term debt	4,163		4,093			4,165		3,917		3,998
Total interest expense	15,532		15,338			14,736		14,256		13,892
Net interest income	185,156		185,231			185,323		185,118		185,623
Provision for loan losses	7,809		13,611			14,275		8,966		8,248
Net interest income after provision for loan losses	177,347		171,620			171,048		176,152		177,375
Noninterest income:
Trust department income	10,284		10,208			10,948		10,820		10,149
Service charges on deposits	15,586		16,793			17,295		16,704		15,668
Credit card fees	13,578		13,931			13,939		14,124		12,649
ATM and other service fees	6,234		6,626			6,518		6,345		6,099
Bank owned life insurance income	3,696		3,836			4,622		3,697		3,592
Investment services and insurance	3,905		3,816			4,032		3,871		3,704
Investment securities gains/(losses), net	295		(5		)	41		567		354
Loan sales and servicing income	1,852		2,276			2,414		3,276		1,600
Other operating income	11,964		7,662			11,617		7,178		12,032
Total noninterest income	67,394		65,143			71,426		66,582		65,847
Noninterest expense:
Salaries, wages, pension and employee benefits	85,880		86,490			85,772		86,020		90,526
Net occupancy expense	14,774		12,716			13,540		13,727		15,954
Equipment expense	12,408		12,074			12,235		12,592		11,025
Stationery, supplies and postage	3,619		3,222			3,304		3,370		3,528
Bankcard, loan processing and other costs	11,008		11,146			12,335		12,461		11,139
Professional services	8,351		5,056			5,154		5,358		4,010
Amortization of intangibles	2,304		2,598			2,598		2,598		2,598
FDIC insurance expense	5,445		5,252			5,234		5,077		5,167
Other operating expense	23,174		17,068			20,570		20,471		16,705
Total noninterest expense	166,963		155,622			160,742		161,674		160,652
Income before income tax expense	77,778		81,141			81,732		81,060		82,570
Income tax expense	23,642		24,392			22,720		24,476		25,431
Net income	54,136		56,749			59,012		56,584		57,139
Less: Net income allocated to participating shareholders	387		453			477		467		407
Preferred stock dividends	1,469		1,469			1,469		1,469		1,469
Net income attributable to common shareholders	$	52,280	$	54,827		$	57,066	$	54,648	$	55,263
Net income used in diluted EPS calculation	$	52,280	$	54,827		$	57,066	$	54,648	$	55,263
Weighted-average number of common shares outstanding - basic	165,745		165,762			165,762		165,736		165,411
Weighted-average number of common shares outstanding- diluted	166,239		166,222			166,058		166,277		166,003
Basic earnings per common share	$	0.32	$	0.33		$	0.34	$	0.33	$	0.33
Diluted earnings per common share	$	0.31	$	0.33		$	0.34	$	0.33	$	0.33
Cash dividends per common share	$	0.17	$	0.17		$	0.17	$	0.16	$	0.16

FirstMerit Corporation Reports First Quarter 2016 EPS Results



FIRSTMERIT CORPORATION AND SUBSIDIARIES
NONINTEREST INCOME AND NONINTEREST EXPENSE DETAIL

(Unaudited)
(In thousands)
	2016		2015			2015		2015		2015
Noninterest income detail	1st qtr		4th qtr			3rd qtr		2nd qtr		1st qtr
Trust department income	$	10,284	$	10,208		$	10,948	$	10,820	$	10,149
Service charges on deposits	15,586		16,793			17,295		16,704		15,668
Credit card fees	13,578		13,931			13,939		14,124		12,649
ATM and other service fees	6,234		6,626			6,518		6,345		6,099
Bank owned life insurance income	3,696		3,836			4,622		3,697		3,592
Investment services and insurance	3,905		3,816			4,032		3,871		3,704
Investment securities gains/(losses), net	295		(5		)	41		567		354
Loan sales and servicing income	1,852		2,276			2,414		3,276		1,600
Other operating income	11,964		7,662			11,617		7,178		12,032
Total Noninterest Income	$	67,394	$	65,143		$	71,426	$	66,582	$	65,847
	2016		2015			2015		2015		2015
Noninterest expense detail	1st qtr		4th qtr			3rd qtr		2nd qtr		1st qtr
Salaries and wages	$	69,410	$	68,151		$	68,775	$	67,485	$	71,914
Pension and employee benefits	16,470		18,339			16,997		18,535		18,612
Net occupancy expense	14,774		12,716			13,540		13,727		15,954
Equipment expense	12,408		12,074			12,235		12,592		11,025
Taxes, other than federal income taxes	2,031		2,096			2,003		2,032		2,014
Stationery, supplies and postage	3,619		3,222			3,304		3,370		3,528
Bankcard, loan processing and other costs	11,008		11,146			12,335		12,461		11,139
Advertising	3,260		3,386			4,278		3,103		2,747
Professional services	8,351		5,056			5,154		5,358		4,010
Telephone	2,424		2,530			2,480		2,599		2,574
Amortization of intangibles	2,304		2,598			2,598		2,598		2,598
FDIC insurance expense	5,445		5,252			5,234		5,077		5,167
Other operating expense	15,459		9,056			11,809		12,737		9,370
Total Noninterest Expense	$	166,963	$	155,622		$	160,742	$	161,674	$	160,652

FirstMerit Corporation Reports First Quarter 2016 EPS Results



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
	March 31,			December 31,			September 30,			June 30,			March 31,			December 31,
Allowance for Credit Losses	2016			2015			2015			2015			2015			2015
Allowance for originated loan losses, beginning of period	$	105,135		$	104,055		$	101,682		$	97,545		$	95,696		$	95,696
Provision for originated loan losses	5,410			12,487			10,402			10,809			6,036			39,734
Charge-offs	13,014			15,514			13,398			11,298			8,567			48,778
Recoveries	5,384			4,107			5,369			4,626			4,380			18,483
Net charge-offs	7,630			11,407			8,029			6,672			4,187			30,295
Allowance for originated loan losses, end of period	$	102,915		$	105,135		$	104,055		$	101,682		$	97,545		$	105,135
Reserve for unfunded lending commitments,
beginning of period	$	4,068		$	3,574		$	3,905		$	4,330		$	5,848		$	5,848
Provision for (relief of) credit losses	876			494			(331		)	(425		)	(1,518		)	(1,780		)
Reserve for unfunded lending commitments,
end of period	$	4,944		$	4,068		$	3,574		$	3,905		$	4,330		$	4,068
Allowance for Credit Losses	$	107,859		$	109,203		$	107,629		$	105,587		$	101,875		$	109,203
Ratios
Provision for loan losses to average loans	0.15		%	0.36		%	0.31		%	0.33		%	0.19		%	0.30		%
Net charge-offs to average loans	0.22		%	0.33		%	0.24		%	0.20		%	0.13		%	0.23		%
Allowance for loan losses to period-end loans	0.72		%	0.74		%	0.76		%	0.76		%	0.76		%	0.74		%
Allowance for credit losses to period-end loans	0.75		%	0.77		%	0.79		%	0.79		%	0.79		%	0.77		%
Allowance for loan losses to nonperforming loans	139.64		%	238.37		%	221.22		%	184.40		%	211.66		%	238.37		%
Allowance for credit losses to nonperforming loans	146.35		%	247.60		%	228.82		%	191.48		%	221.06		%	247.60		%
Asset Quality
Impaired originated loans:
Commercial loans	$	56,726		$	28,108		$	30,821		$	37,889		$	28,478		$	28,108
Consumer loans	16,975			15,997			16,215			17,253			17,607			15,997
Total nonperforming loans	73,701			44,105			47,036			55,142			46,085			44,105
Other real estate owned ("OREO"), noncovered ⁽²⁾	38,592			50,393			60,022			62,169			22,521			50,393
Total nonperforming assets ("NPAs") ⁽²⁾	$	112,293		$	94,498		$	107,058		$	117,311		$	68,606		$	94,498
NPAs to period-end loans + noncovered OREO ⁽²⁾	0.78		%	0.67		%	0.78		%	0.87		%	0.53		%	0.67		%
Accruing originated loans past due 90 days or more	$	9,361		$	8,022		$	9,888		$	8,009		$	7,914		$	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 March 31, 2016, $70.7 million of FDIC acquired loans remained covered by single family loss share agreements, providing considerable protection against credit risk.

(2) As of March 31, 2016, December 31, 2015, September 30, 2015, and June 30, 2015, $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 Reports First Quarter 2016 EPS Results



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

(Unaudited)	Quarters Ended						Year Ended
(Dollars in thousands)	March 31,						December 31,
	2016			2015			2015
Allowance for originated loan losses - beginning of period	$	105,135		$	95,696		$	95,696
Loans charged off:
Commercial	3,248			685			15,270
Mortgage	450			424			1,443
Installment	6,310			4,605			19,546
Home equity	1,027			911			4,032
Credit cards	1,450			1,452			4,867
Leases	—			—			1,268
Overdrafts	529			490			2,352
Total	13,014			8,567			48,778
Recoveries:
Commercial	535			325			1,798
Mortgage	20			35			257
Installment	3,614			2,868			11,062
Home equity	624			613			2,606
Credit cards	357			366			1,395
Manufactured housing	6			13			31
Leases	19			4			787
Overdrafts	209			156			547
Total	5,384			4,380			18,483
Net charge-offs	7,630			4,187			30,295
Provision for originated loan losses	5,410			6,036			39,734
Allowance for originated loan losses-end of period	$	102,915		$	97,545		$	105,135

Average originated loans	$	14,187,793		$	12,689,791		$	13,297,594
Ratio (annualized) to average originated loans:
Originated net charge-offs	0.22		%	0.13		%	0.23		%
Provision for originated loan losses	0.15		%	0.19		%	0.30		%
Originated Loans, period-end	$	14,389,513		$	12,856,037		$	14,118,505

Allowance for credit losses:	$	107,859		$	101,875		$	109,203
To (annualized) net charge-offs	3.51			6.00			3.60
Allowance for originated loan losses:
To period-end originated loans	0.72		%	0.76		%	0.74		%
To (annualized) net originated charge-offs	3.35			5.74			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 March 31, 2016, $70.7 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 - EXHIBIT 99 - April 26, 2016

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