Shareholders' Equity

12 Months Ended

Dec. 31, 2013

Shareholders' Equity [Abstract]

Stockholders' Equity

Shareholders' Equity

Citizens Acquisition

As a result of the acquisition of Citizens, 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. Due to a dividend protection clause, which reduces the exercise price on a penny for penny basis for any dividend paid along with a corresponding increase in the amount of shares available to purchase, there are now 2,471,681 shares at an adjusted exercise price of $18.21 associated with the warrant issued to the U.S. Treasury. Additional information about the acquisition is included in Note 2 (Business Combinations).

Preferred Stock

The Corporation has 7,000,000 shares of authorized Preferred Stock and has designated 115,000 shares of its Preferred Stock as 5.875% Non-Cumulative Perpetual Preferred Stock, Series A. On February 4, 2013, the Corporation issued 100,000 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 4^th day of February, May, August and November.

Earnings per Share

The reconciliation between basic and diluted EPS using the two-class method and treasury stock method is presented as follows:

	Year Ended December 31,
	2013		2012		2011
Basic EPS:
Net income	$	183,684	$	134,106	$	119,558
Less:
Cash dividends on 5.875% non-cumulative perpetual series A, preferred stock	5,337		—		—
Income allocated to participating securities	1,545		—		—
Net income attributable to common shareholders	$	176,802	$	134,106	$	119,558
Average Common Stock outstanding used in basic EPS	149,607		109,518		109,102
Basic net income per share	$	1.18	$	1.22	$	1.10
Diluted EPS:
Net income attributable to common shareholders	$	176,802	$	134,106	$	119,558
Average Common Stock outstanding	149,607		109,518		109,102
Add: Common Stock equivalents:
Warrant and stock award plans	814		—		—
Average Common and Common Stock equivalent shares outstanding	150,421		109,518		109,102
Diluted net income per share	$	1.18	$	1.22	$	1.10

Common Stock equivalents consist of employee stock award plans and the common stock warrant. These common stock equivalents do not enter into the calculation of diluted EPS if the impact would be anti-dilutive, that is, increase EPS or reduce a loss per share. There were no antidilutive common stock equivalents for the year ended December 31, 2013, and 1.8 million and 3.4 million antidilutive common stock equivalents for the years ended 2012 and 2011.