Shareholders Equity (Notes)

6 Months Ended

Jun. 30, 2014

Earnings Per Share [Abstract]

Stockholders' Equity Note Disclosure

Shareholders' Equity

Common Stock Warrant

The Corporation has an outstanding warrant issued to the U.S. Treasury to initially 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, the U.S. Treasury can purchase up to 2,515,892 shares at an adjusted exercise price of $17.89 as of June 30,2014.

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

Basic net income per common share is calculated using the two-class method to determine income attributable to common shareholders. Net income attributable to Common Stock is then divided by the weighted-average number of Common Stock outstanding during the period.

Diluted net income per common share is calculated under the more dilutive of either the treasury method or two-class method. Adjustments to the weighted-average number of shares of Common Stock outstanding are made only when such adjustments will dilute earnings per common share. Net income attributable to Common Stock is then divided by the weighted-average number of Common Stock and Common Stock equivalents outstanding during the period.

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

	Three Months Ended June 30,				Six Months Ended June 30,
(In thousands)	2014		2013		2014		2013
Basic EPS:
Net income	$	59,519	$	48,450	$	112,974	$	85,796
Less:
Cash dividends on 5.875% non-cumulative perpetual series A, Preferred Stock	1,469		1,469		2,938		2,399
Income allocated to participating securities	489		383		926		813
Net income attributable to common shareholders	$	57,561	$	46,598	$	109,110	$	82,584
Weighted average Common Stock outstanding used in basic EPS	165,335		157,863		165,198		133,909
Basic net income per common share	$	0.35	$	0.30	$	0.66	$	0.62
Diluted EPS:
Income used in diluted earnings per share calculation	$	57,561	$	46,598	$	109,110	$	82,584
Weighted average Common Stock outstanding used in basic EPS	165,335		157,863		165,198		133,909
Add: Common Stock equivalents:
Warrant and stock plans	812		527		854		497
Weighted average Common and Common Stock equivalent shares outstanding	166,147		158,390		166,052		134,406
Diluted net income per share	$	0.35	$	0.29	$	0.66	$	0.61

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. Antidilutive potential Common Stock for the six months endedJune 30,2014 and 2013 totaled 1.0 million and 1.5 million, respectively.