1999 Performance Highlights

•Each employee generated over $47,000 in net income, up 13.5% for the year and $12,000 above the industry norm

•We set the stage for full-function Internet banking

•97,000 new households added in 1999 through strategic acquisitions and internal growth

Employee productivity is key These business referral examples are representative of productivity gains that saw retail sales per banker grow from 6.8 to 8.1 sales per day. Every FirstMerit employee generated more than $47,000 of net income for 1999, up 13.5% from 1998 and far in excess of the $35,000 norm for our industry.

Alliances open doors and cut costs.

We have forged strategic alliances with some of the best mutual fund and life and property insurance providers available. These enhance our broad product line and keep FirstMerit at the forefront of competition while minimizing new product development costs. This strategy has been particularly successful with our Wealth Services Group, which includes FirstMerit Investment and Insurance Services, FirstMerit Investment Management & Trust Services, and Abell & Associates, our provider to the wealth services market.

The Internet has now matured to the point that FirstMerit customers are looking to this new distribution channel. We have completed preparations that will allow on-line access to key banking services in the second quarter of 2000. This service will provide our customers access to their account information, integrated bill payment, access to their FirstMerit 401(k) accounts, and other business as well as retail applications around the clock via their personal computer. We expect our commitment to Internet banking to expand the meaning of relationship banking for FirstMerit customers.

The Financial Modernization Act has opened access to new lines of business by allowing banks to underwrite insurance and equities, which provides opportunities for us to pursue expanded customer relationships with high quality, time-tested financial products and partners.

FirstMerit focuses on communities with a strong and growing base of customers.

Our communities represent the opportunity for FirstMerit to expand multiple-account relationships with its customers. In 1999, we added over 97,000 new households to the FirstMerit family through a combination of strategic acquisitions and internal growth. Each new customer represents an opportunity for further growth as we build full-time, multi-faceted relationships.