Shareholders' Equity

12 Months Ended

Dec. 31, 2014

Shareholders' Equity [Abstract]

Stockholders' Equity

Shareholders' Equity

Common Stock Warrant

The Corporation has an outstanding warrant previously issued by Citizen’s to the U.S. Treasury to initially purchase 2,408,203 shares of FirstMerit Common Stock. Due to a dividend protection clause, the strike price is reduced by an amount equivalent to the dividend as a percentage of the closing market price on the day prior to the ex-dividend date. The adjusted shares are calculated by dividing the original proceeds by the adjusted strike price. At December 31, 2014, the adjusted strike price is $17.65 with a corresponding adjusted number of shares of 2,549,702 issuable upon exercise of the warrant issued to the U.S. Treasury and currently available for purchase.

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:

	Year Ended December 31,
(In thousands, except per share amounts)	2014		2013		2012
Basic EPS:
Net income	$	237,951	$	183,684	$	134,106
Less:
Cash dividends on 5.875% non-cumulative perpetual series A, preferred stock	5,876		5,337		—
Income allocated to participating securities	1,930		1,545		—
Net income attributable to common shareholders	$	230,145	$	176,802	$	134,106
Weighted average Common Stock outstanding used in basic EPS	165,296		149,607		109,518
Basic net income per common share	$	1.39	$	1.18	$	1.22
Diluted EPS:
Income used in diluted earnings per share calculation	$	230,145	$	176,802	$	134,106
Weighted average Common Stock outstanding used in basic EPS	165,296		149,607		109,518
Add: Common Stock equivalents:
Warrant and stock plans	758		814		—
Weighted average Common and Common Stock equivalent shares outstanding	166,054		150,421		109,518
Diluted net income per common share	$	1.39	$	1.18	$	1.22

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 $0.8 million antidilutive Common Stock equivalents for the year ended December 31, 2014, and $1.4 million and $3.4 million antidilutive Common Stock equivalents for the years ended December 31,2013 and 2012, respectively.