Regulatory Matters

12 Months Ended

Dec. 31, 2014

Regulatory Capital Requirements [Abstract]

Regulatory Matters

Regulatory Matters

The Corporation is subject to various regulatory capital requirements administered by the federal banking agencies. Failure to meet minimum capital requirements can initiate certain mandatory – and possibly additional discretionary – actions by regulators that, if undertaken, could have a material effect on the Corporation’s financial statements. Under capital adequacy guidelines and the regulatory framework for prompt corrective action, the Corporation must meet specific capital guidelines that involve quantitative measures of the Corporation’s assets, liabilities, and certain off-balance-sheet items as calculated under regulatory accounting practices. The Corporation’s capital amounts and classification are also subject to quantitative judgments by regulators about components, risk weightings, and other factors.

Quantitative measures established by regulation to ensure capital adequacy require the Corporation to maintain minimum amounts and ratios (set forth in the following table) of total and Tier I capital to risk-weighted assets, and of Tier I capital to average assets. At December 31, 2014 and 2013, Management believes the Corporation meets all capital adequacy requirements to which it is subject. The capital terms used in this note to the consolidated financial statements are defined in the regulations as well as in the “Capital Resources” section of Management’s Discussion and Analysis of Financial Condition and Results of Operations.

(Dollars in thousands)	Consolidated
	Actual					Adequately Capitalized:					Well Capitalized:
As of December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital
(to Risk Weighted Assets)	$	2,653,893	15.26	%	>	$	1,391,282	8.00	%	>	$	1,739,102	10.00	%
Tier I Capital
(to Risk Weighted Assets)	$	2,004,461	11.53	%	>	$	695,641	4.00	%	>	$	1,043,461	6.00	%
Tier I Capital
(to Average Assets)	$	2,004,461	8.43	%	>	$	951,430	4.00	%	>	$	1,189,287	5.00	%
(Dollars in thousands)	Actual					Adequately Capitalized:					Well Capitalized:
As of December 31, 2013	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital
(to Risk Weighted Assets)	$	2,279,891	13.97	%	>	$	1,305,667	8.00	%	>	$	1,632,083	10.00	%
Tier I Capital
(to Risk Weighted Assets)	$	1,880,804	11.52	%	>	$	652,833	4.00	%	>	$	979,250	6.00	%
Tier I Capital
(to Average Assets)	$	1,880,804	8.14	%	>	$	923,887	4.00	%	>	$	1,154,858	5.00	%

At December 31, 2014 and 2013, the most recent notification from the OCC categorized the Bank as well capitalized under the regulatory framework for prompt corrective action. To be categorized as well-capitalized the Bank must maintain minimum total risk-based, Tier I risk-based, and Tier I leverage ratios as set forth in the table. In Management’s opinion, there are no conditions or events since the OCC’s notification that have changed the Bank’s categorization as “well-capitalized.”

	Bank Only
(Dollars in thousands)	Actual					Adequately Capitalized:					Well Capitalized:
As of December 31, 2014	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital
(to Risk Weighted Assets)	$	2,521,412	14.49	%	>	$	1,391,988	8.00	%	>	$	1,739,986	10.00	%
Tier I Capital
(to Risk Weighted Assets)	$	2,127,065	12.22	%	>	$	695,994	4.00	%	>	$	1,043,991	6.00	%
Tier I Capital
(to Average Assets)	$	2,127,065	8.94	%	>	$	951,455	4.00	%	>	$	1,189,319	5.00	%
(Dollars in thousands)	Actual					Adequately Capitalized:					Well Capitalized:
As of December 31, 2013	Amount		Ratio			Amount		Ratio			Amount		Ratio
Total Capital
(to Risk Weighted Assets)	$	2,122,124	13.02	%	>	$	1,303,579	8.00	%	>	$	1,629,473	10.00	%
Tier I Capital
(to Risk Weighted Assets)	$	1,978,140	12.14	%	>	$	651,789	4.00	%	>	$	977,684	6.00	%
Tier I Capital
(to Average Assets)	$	1,978,140	8.58	%	>	$	922,312	4.00	%	>	$	1,152,890	5.00	%

FirstMerit Mortgage Corporation, a subsidiary of the Corporation, is subject to net worth requirements issued by the U.S. Department of Housing and Urban Development (HUD). Failure to meet minimum capital requirements of HUD can result in certain mandatory and possibly additional discretionary actions that, if undertaken, could have a direct material effect on FirstMerit Mortgage Corporation's operations.

The minimum net worth requirement of HUD at December 31, 2014, and 2013, was $1.0 million. FirstMerit Mortgage Corporations’ net worth significantly exceeded the HUD requirements at December 31, 2014, and 2013.