Shareholders' Equity

3 Months Ended

Mar. 31, 2015

Earnings Per Share [Abstract]

Stockholders' Equity Note Disclosure

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 March 31, 2015, the adjusted strike price is $17.50 with a corresponding adjusted number of 2,571,998 shares 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, of which 100,000 shares were issued. The Preferred Stock pays cash dividends 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 March 31,
(Dollars in thousands, except per share amounts)	2015		2014
Basic EPS:
Net income	$	57,139	$	53,455
Less:
Cash dividends on 5.875% non-cumulative perpetual series A, Preferred Stock	1,469		1,469
Income allocated to participating securities	407		380
Net income attributable to common shareholders	$	55,263	$	51,606
Weighted average Common Stock outstanding used in basic EPS	165,411		165,060
Basic net income per common share	$	0.33	$	0.31
Diluted EPS:
Income used in diluted earnings per common share calculation	$	55,263	$	51,606
Weighted average Common Stock outstanding used in basic EPS	165,411		165,060
Add: Common Stock equivalents:
Warrant and stock plans	592		944
Weighted average Common and Common Stock equivalent shares outstanding	166,003		166,004
Diluted net income per common share	$	0.33	$	0.31

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 three months endedMarch 31,2015 and 2014 totaled 0.8 million and 1.0 million, respectively.