The merger of Signal Corp, completed February 1999, brought another successful community banking franchise under the FirstMerit umbrella while adding $1.4 billion in deposits and extending our franchise into Pennsylvania. At year end 1999, FirstMerit ranked first in deposits in five Northeast Ohio counties. In 15 counties we rank between first and fourth, with a 24% share of deposits overall. In other markets, such as Cleveland, FirstMerit focuses primarily on the small and mid-size business segment, an area where we excel. In fact, one-quarter of all businesses in the Cleveland market have at least one account relationship with FirstMerit.

Investor recognition expands.

During 1999, FirstMerit was selected for a place in the S&P Midcap 400 Index, a group of 400 domestic stocks chosen for their market size, liquidity and market representation. This recognition caps a year of expanded trading volume and performance, and we are pleased to participate in this benchmark index.

Bank stock performance has been disappointing relative to other sectors of the economy, and our stock price has lagged as well. However, FirstMerit, in particular, continues with growth and profitability strategies that have proven the test of time. In turn, we enjoy continuing support from long-term value investors who recognize a well-run company such as FirstMerit.

Increasing deposits to fund growth.

1999 was a record year. Our markets are thriving and demand for FirstMerit’s quality services is growing. With the introduction last fall of our indexed money market accounts for retail and commercial customers, FirstMerit addressed our customers’ demands for products competitive with market returns. These money market investment products were structured to reflect the breadth and strength of our customers’ relationships with FirstMerit. As their relationships with FirstMerit expand, customers can earn a higher rate. In turn, FirstMerit gains core long-term deposits.

1999 Performance Highlights

•Acquisition of Signal Corp added $1.4 billion in deposits

•Ranked #1 in deposits in five NE Ohio counties

•24% overall share of deposits in our core 15 counties

•25% of all businesses in the competitive Cleveland market have a relationship with FirstMerit

•Placed in the S&P Midcap 400 Index