FirstMerit Corp. (FMER, Financial) filed Quarterly Report for the period ended 2009-03-31.
FirstMerit Corporation is a financial services company. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal wholly-owned subsidiaries include FirstMerit Bank N.A. FirstMerit Mortgage Corporation FirstMerit Credit Life Insurance Company FirstMerit Community Development Corporation and Mobile Consultants Inc. (Company Press Release) FirstMerit Corp. has a market cap of $1.62 billion; its shares were traded at around $19.93 with a P/E ratio of 13.5 and P/S ratio of 2.2. The dividend yield of FirstMerit Corp. stocks is 5.7%. FirstMerit Corp. had an annual average earning growth of 6.4% over the past 5 years.
The primary changes in other income for the 2009 first quarter as compared to the first quarter of 2008, were as follows: trust department income was $4.8 million, down 12.11% primarily due to declines in the equity markets; service charges on deposits was $14.2 million, down 3.89% primarily attributable to fewer overdraft items and customer preferences to hold larger balances; credit card fees were $11.1 million, down 0.65%; loan sales and servicing income was $2.3 million, an increase of $0.9 million, primarily attributable refinancing the current low rate mortgage market environment; bank owned life insurance income was $3.0 million, down 5.81%; and other operating income was $14.3 million, an increase of $11.4 million. Included in other operating income was a $9.5 million adjustment due to the curtailment of the postretirment medical benefit plan for active employees.
The Corporations total assets at March 31, 2009 were $11.0 billion, a decrease of $127.9 million, or 1.15%, compared with December 31, 2008 and an increase of $455.3 million, or 4.33%, compared with March 31, 2008. Commercial loan growth of $324.8 million, or 8.08%, compared with March, 31, 2008, provided the majority of the overall asset growth. Total loans decreased $74.9 million compared with December 31, 2008 and increased $278.0 million over March 31, 2008.
Total deposits were $7.7 billion at March 31, 2009, an increase of $80.5 million, or 1.06%, from December 31, 2008 and an increase of $255.5 million, or 3.44%, from March 31, 2008. The increase compared with March 31, 2008 was driven by an overall increase in savings and demand deposits. Core deposits totaled $5.3 billion at March 31, 2009, an increase of $464.6 million, or 9.65%, from December 31, 2008 and an increase of $713.2 million, or 15.61%, from March 31, 2008.
FTE net interest income for the quarter ended March 31, 2009 was $88.6 million compared to $85.7 million for the three months ended March 31, 2008. The $2.9 million increase in FTE net interest income occurred because the $25.9 million decrease in interest income, compared to the same quarter last year, was less than the $28.8 million decrease in interest expense during the same period.
Specific changes in average loans outstanding, compared to the first quarter 2008, were as follows: commercial loans were up $395.5 million or 10.03%; home equity loans were up $50.4 million or 7.33%; mortgage loans were down $47.5 million or 8.13%; installment loans, both direct and indirect declined $28.9 million or 1.82%; credit card loans declined $4.2 million or 2.80%; and leases decreased $8.2 million or 11.07%. The majority of fixed-rate mortgage loan originations are sold to investors through the secondary mortgage loan market. Average outstanding loans for the 2009 and 2008 first quarters equaled 72.44% and 73.31% of average earning assets, respectively.
Read the The complete ReportFMER is in the portfolios of David Dreman of Dreman Value Management.
FirstMerit Corporation is a financial services company. FirstMerit provides a complete range of banking and other financial services to consumers and businesses through its core operations. Principal wholly-owned subsidiaries include FirstMerit Bank N.A. FirstMerit Mortgage Corporation FirstMerit Credit Life Insurance Company FirstMerit Community Development Corporation and Mobile Consultants Inc. (Company Press Release) FirstMerit Corp. has a market cap of $1.62 billion; its shares were traded at around $19.93 with a P/E ratio of 13.5 and P/S ratio of 2.2. The dividend yield of FirstMerit Corp. stocks is 5.7%. FirstMerit Corp. had an annual average earning growth of 6.4% over the past 5 years.
Highlight of Business Operations:
FirstMerit Corporation reported first quarter 2009 net income of $29.4 million, or $0.34 per diluted share. This compares with $29.1 million, or $0.36 per diluted share, for the fourth quarter 2008 and $31.4 million, or $0.39 per diluted share, for the first quarter 2008.The primary changes in other income for the 2009 first quarter as compared to the first quarter of 2008, were as follows: trust department income was $4.8 million, down 12.11% primarily due to declines in the equity markets; service charges on deposits was $14.2 million, down 3.89% primarily attributable to fewer overdraft items and customer preferences to hold larger balances; credit card fees were $11.1 million, down 0.65%; loan sales and servicing income was $2.3 million, an increase of $0.9 million, primarily attributable refinancing the current low rate mortgage market environment; bank owned life insurance income was $3.0 million, down 5.81%; and other operating income was $14.3 million, an increase of $11.4 million. Included in other operating income was a $9.5 million adjustment due to the curtailment of the postretirment medical benefit plan for active employees.
The Corporations total assets at March 31, 2009 were $11.0 billion, a decrease of $127.9 million, or 1.15%, compared with December 31, 2008 and an increase of $455.3 million, or 4.33%, compared with March 31, 2008. Commercial loan growth of $324.8 million, or 8.08%, compared with March, 31, 2008, provided the majority of the overall asset growth. Total loans decreased $74.9 million compared with December 31, 2008 and increased $278.0 million over March 31, 2008.
Total deposits were $7.7 billion at March 31, 2009, an increase of $80.5 million, or 1.06%, from December 31, 2008 and an increase of $255.5 million, or 3.44%, from March 31, 2008. The increase compared with March 31, 2008 was driven by an overall increase in savings and demand deposits. Core deposits totaled $5.3 billion at March 31, 2009, an increase of $464.6 million, or 9.65%, from December 31, 2008 and an increase of $713.2 million, or 15.61%, from March 31, 2008.
FTE net interest income for the quarter ended March 31, 2009 was $88.6 million compared to $85.7 million for the three months ended March 31, 2008. The $2.9 million increase in FTE net interest income occurred because the $25.9 million decrease in interest income, compared to the same quarter last year, was less than the $28.8 million decrease in interest expense during the same period.
Specific changes in average loans outstanding, compared to the first quarter 2008, were as follows: commercial loans were up $395.5 million or 10.03%; home equity loans were up $50.4 million or 7.33%; mortgage loans were down $47.5 million or 8.13%; installment loans, both direct and indirect declined $28.9 million or 1.82%; credit card loans declined $4.2 million or 2.80%; and leases decreased $8.2 million or 11.07%. The majority of fixed-rate mortgage loan originations are sold to investors through the secondary mortgage loan market. Average outstanding loans for the 2009 and 2008 first quarters equaled 72.44% and 73.31% of average earning assets, respectively.
Read the The complete ReportFMER is in the portfolios of David Dreman of Dreman Value Management.
