Shareholders' Equity

12 Months Ended

Dec. 31, 2015

Stockholders' Equity Note [Abstract]

Stockholders' Equity

Shareholders' Equity

Common Stock Warrant

On May 13, 2015, the Corporation repurchased a warrant previously issued by Citizens to the U.S. Treasury. The warrant, which entitled the U.S. Treasury to purchase 2,571,998 shares of FirstMerit Common Stock at an adjusted strike price of $17.50, was purchased for $12.2 million. The Corporation recorded a reduction to capital surplus in the amount of $9.2 million in conjunction with this warrant repurchase that reflected the excess amount paid over the previously stated amount.

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)	2015		2014		2013
Basic EPS:
Net income	$	229,484	$	237,951	$	183,684
Less:
Cash dividends on 5.875% non-cumulative perpetual series A, preferred stock	5,876		5,876		5,337
Income allocated to participating securities	1,836		1,930		1,545
Net income attributable to common shareholders	$	221,772	$	230,145	$	176,802
Weighted average Common Stock outstanding used in basic EPS	165,669		165,296		149,607
Basic net income per common share	$	1.34	$	1.39	$	1.18
Diluted EPS:
Income used in diluted earnings per share calculation	$	221,772	$	230,145	$	176,802
Weighted average Common Stock outstanding used in basic EPS	165,669		165,296		149,607
Add: Common Stock equivalents:
Employee stock award plans	458		758		814
Weighted average Common and Common Stock equivalent shares outstanding	166,127		166,054		150,421
Diluted net income per common share	$	1.33	$	1.39	$	1.18

Common Stock equivalents consist of employee stock award plans. 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, 2015, and $0.8 million and $1.4 million antidilutive Common Stock equivalents for the years ended December 31,2014 and 2013, respectively.