FirstMerit (FirstMerit) Financial Strength : 0 (As of Jun. 2016)

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What is FirstMerit Financial Strength?

FirstMerit has the Financial Strength Rank of 0.

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors:

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.
2. Debt to revenue ratio. The lower, the better.
3. Altman Z-Score.

GuruFocus does not calculate FirstMerit's interest coverage with the available data. FirstMerit's debt to revenue ratio for the quarter that ended in Jun. 2016 was 0.99. Altman Z-Score does not apply to banks and insurance companies.

FirstMerit Financial Strength Calculation

GuruFocus Financial Strength Rank measures how strong a company's financial situation is. It is based on these factors

A company ranks high with financial strength is likely to withstand any business slowdowns and recessions.

1. The debt burden that the company has as measured by its Interest Coverage (current year). The higher, the better.

Note: If both Interest Expense and Interest Income are empty, while Net Interest Income is negative, then use Net Interest Income as Interest Expense.

Interest Coverage is a ratio that determines how easily a company can pay interest expenses on outstanding debt. It is calculated by dividing a company's Operating Income (EBIT) by its Interest Expense:

FirstMerit's Interest Expense for the months ended in Jun. 2016 was $-15 Mil. Its Operating Income for the months ended in Jun. 2016 was $84 Mil. And its Long-Term Debt & Capital Lease Obligation for the quarter that ended in Jun. 2016 was $995 Mil.

FirstMerit's Interest Coverage for the quarter that ended in Jun. 2016 is

Interest Coverage	=	-1	*	Operating Income (Q: Jun. 2016 )	/	Interest Expense (Q: Jun. 2016 )
	=	-1	*	84.482	/	-15.262
	=	5.54

The higher the ratio, the stronger the company's financial strength is.

2. Debt to revenue ratio. The lower, the better.

FirstMerit's Debt to Revenue Ratio for the quarter that ended in Jun. 2016 is

Debt to Revenue Ratio	=	Total Debt (Q: Jun. 2016 )			/	Revenue
	=	(Short-Term Debt & Capital Lease Obligation	+	Long-Term Debt & Capital Lease Obligation)	/	Revenue
	=	(0	+	994.836)	/	1004.772
	=	0.99

3. Altman Z-Score.

Z-Score model is an accurate forecaster of failure up to two years prior to distress. It can be considered the assessment of the distress of industrial corporations.

The zones of discrimination were as such:

When Z-Score is less than 1.81, it is in Distress Zones.
When Z-Score is greater than 2.99, it is in Safe Zones.
When Z-Score is between 1.81 and 2.99, it is in Grey Zones.

Altman Z-Score does not apply to banks and insurance companies.

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

FirstMerit (NAS:FMER) Financial Strength Explanation

The maximum rank is 10. Companies with rank 7 or higher will be unlikely to fall into distressed situations. Companies with rank of 3 or less are likely in financial distress.

FirstMerit has the Financial Strength Rank of 0.

FirstMerit Financial Strength Related Terms

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FirstMerit (FirstMerit) Business Description

Industry

GURUFOCUS.COM » STOCK LIST » Financial Services » Banks » FirstMerit Corp (NAS:FMER) » Definitions » Financial Strength

Comparable Companies

Traded in Other Exchanges

N/A

Address

Website

http://www.firstmerit.com

Firstmerit Corp was organized in 1981 under the laws of the State of Ohio, It is a bank holding company. It operates through the Bank and its other subsidiaries, providing banking, fiduciary, financial, insurance and investment services to corporate, institutional and individual customers throughout Ohio, Chicago, Illinois, Michigan, Wisconsin and Western Pennsylvania. The Company manages its operations through the following primary lines of business: Commercial, Retail, Wealth and Other. Banking services are provided by the Company's national banking subsidiary, FirstMerit Bank. The Bank's trust department offers wealth management and trust services. The majority of its customers are comprised of consumers and small and medium sized businesses. The Bank has a small international department to service clients in its markets. The Company competes with other local, regional and national providers of financial services such as other bank holding companies, commercial banks, savings associations, credit unions, consumer and commercial finance companies, equipment leasing companies, mortgage banking companies, investment brokers and other brokerage institutions, money market and mutual funds and insurance companies. The Company is subject to extensive regulation, examination and supervision under by federal and state law.

Executives

Lizabeth A Ardisana	director	328 S. SAGINAW ST., FLINT MI 48430
Brian C Williams	officer: See Remarks	III CASCADE PLAZA AKRON OH 44308
Carlton E Langer	officer: See Remarks	III CASCADE PLAZA AKRON OH 44308
Robert S Cubbin	director
Christopher J Maurer	officer: See Remarks	III CASCADE PLAZA AKRON OH 44308
Steve H Baer	director	III CASCADE PLAZA AKRON OH 44308
Philip A Lloyd	director	II CASCADE PLAZA AKRON OH 44308
R Cary Blair	director	II CASCADE PLAZA AKRON OH 44308
Russ M Strobel	director	NICOR INC P O BOX 3014 NAPERVILLE IL 60566-7014
Nancy H Worman	officer: See Remarks	III CASCADE PLAZA AKRON OH 44308
Michael G Robinson	officer: See Remarks	III CASCADE PLAZA AKRON OH 44308
William P Richgels	officer: See Remarks	III CASCADE PLAZA AKRON OH 44308
Mark D Quinlan	officer: See Remarks	200 NORTH ADAMS STREET, GREEN BAY WI 54301
Paul G Greig	director, officer: Chairman, President and CEO	III CASCADE PLAZA, AKRON OH 44308
Karen S Belden	director	II CASCADE PLAZA AKRON OH 44308