354869--2/18/2009--FIRSTMERIT_CORP

related topics

{condition, economic, financial}

{stock, price, share}

{acquisition, growth, future}

{regulation, change, law}

{financial, litigation, operation}

{loss, insurance, financial}

{competitive, industry, competition}

{operation, natural, condition}

{interest, director, officer}

{personnel, key, retain}

{loan, real, estate}

{capital, credit, financial}

Difficult economic conditions and market volatility have adversely impacted the banking industry and financial markets generally and may significantly affect our business, financial condition, or results of operation. Our profitability depends significantly on economic conditions in the geographic region in which we operate The strength and stability of other financial institutions may adversely affect our business. Current levels of market volatility are unprecedented. Changes in interest rates could have a material adverse effect on our financial condition and results of operations. Our earnings are significantly affected by the fiscal and monetary policies of the federal government and its agencies. Terrorism, acts of war or international conflicts could have a material adverse effect on our financial condition and results of operations. The primary source of our income from which we pay dividends is the receipt of dividends from FirstMerit Bank. Because of our participation in the CPP under EESA, we are subject to several restrictions including restrictions on our ability to declare or pay dividends and repurchase our shares, as well as restrictions on compensation paid to our executive officers. Future sales of our common shares or other securities may dilute the value of our common shares, which may adversely affect the market price of our common shares or the Series A Preferred Shares. If our actual loan losses exceed our allowance for credit losses, our net income will decrease. We depend upon the accuracy and completeness of information about customers and counterparties. Our organizational documents and our regulated industry may have the effect of discouraging a third party from making an acquisition of FirstMerit by means of a tender offer, proxy contest or otherwise. Government regulation can result in limitations on our operations. We are subject to examinations and challenges by tax authorities. Environmental liability associated with commercial lending could have a material adverse effect on our business, financial condition and results of operations. Our business strategy includes significant growth plans. Our financial condition and results of operations could be negatively affected if we fail to grow or fail to manage our growth effectively. We face risks with respect to future expansion. We operate in an extremely competitive market, and our business will suffer if we are unable to compete effectively. Consumers may decide not to use banks to complete their financial transactions. Loss of key employees may disrupt relationships with certain customers.

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354869--2/18/2009--FIRSTMERIT_CORP_/OH/