Shareholders' Equity

6 Months Ended

Jun. 30, 2013

Shareholders' Equity [Abstract]

Stockholders' Equity Note Disclosure [Text Block]

On April 12, 2013, the Corporation completed the acquisition of Citizens, which resulted in all of Citizens' common stock being converted into the right to receive 1.37 shares of the Corporation's common stock. The conversion of Citizens' common stock into the Corporation's common stock resulted in the Corporation issuing 55,468,283 shares of its common stock. Additionally, a warrant issued by Citizens to the U.S. Treasury to purchase up to 1,757,812.5 shares of Citizens' common stock has been converted into a warrant issued by the Corporation to the U.S. Treasury to purchase 2,408,203 shares of FirstMerit common stock at an exercise price of $18.69. The warrant qualifies as Tier 1 capital and is exercisable in whole or in part since the execution date of April 12, 2013. The warrant has an expiration date of December 12, 2018. Additional information about the acquisition is included in Note 2Business Combinations.

Preferred Stock

The Corporation has three different types of preferred stock, none of which have any issued or outstanding shares. There are 7,000,000 shares of authorized and unissued shares of no par value, preferred stock; 800,000 designated shares of no par value, preferred stock, series A, with none outstanding; and 220,000 designated shares of no par value convertible preferred stock, series B, with none outstanding.

On February 4, 2013, the Corporation issued100,000 shares of its 5.875% Non-Cumulative Perpetual Preferred Stock, Series A, which began paying cash dividends on May 4, 2013, quarterly in arrears on the 4th day of February, May, August and November.

Earnings Per Share

The Corporation calculates earnings per share using the two-class method. The two-class method allocates net income to each class of common stock and participating security according to the common dividends declared and participation rights in undistributed earnings. Participating securities consist of unvested stock-based payment awards that contain nonforfeitable rights to dividends or dividend equivalents.

The reconciliation between basic and diluted earnings per share using the two-class method is presented as follows:

	Three Months Ended				Six Months Ended
	June 30, 2013		June 30, 2012		June 30, 2013		June 30, 2012
Basic EPS:
Net income	$	48,450	$	30,585	85,796		$	60,929
Less:
Cash dividends on 5.875% non-cumulative perpetual series A, preferred stock	1,469		—		2,399		$	—
Income allocated to participating securities	384		113		813		$	143
Net income attributable to common shareholders	$	46,597	$	30,472	$	82,584	$	60,786
Average common shares outstanding	159,158		110,598		135,204		110,422
Less: participating shares included in average shares outstanding	1,295		1,036		1,295		1,036
Average common shares outstanding used in basic EPS	157,863		109,562		133,909		109,386
Basic net income per share	$	0.30	$	0.28	$	0.62	$	0.56
Diluted EPS:
Income used in diluted earnings per share calculation	$	46,597	$	30,472	$	82,584	$	60,786
Average common shares outstanding	159,158		110,598		135,204		110,422
Add: common stock equivalents:
Stock option plans	119		—		60		—
Less: participating shares included in average shares outstanding	1,295		1,036		1,295		1,036
Average common and common stock equivalent shares outstanding	157,982		109,562		133,969		109,386
Diluted net income per share	$	0.29	$	0.28	$	0.62	$	0.56

Potential common shares consist of employee stock options and the common stock warrant. These potential common shares do not enter into the calculation of diluted earnings per share if the impact would be anti-dilutive, that is, increase earnings per share or reduce a loss per share. Antidilutive potential common shares for the three months ended June 30, 2013 and 2012 totaled 3.9 million and 1.8 million, respectively.