“Our best-of-breed alliances

                     add customer value.”

- Felice L. Larmer, Senior Vice President, Investment & Insurance Services

s passage of the Financial Modernization Act eliminated barriers that had prevented banks from underwriting insurance and equities, strategic alliances with carefully selected outside partners position FirstMerit for continuing growth as a single-source financial services provider.

In addition to meeting our high standards for cultural compatibility and customer service excellence, our external partners provide FirstMerit with important commission income from the sale of securities and insurance products without associated underwriting exposure. They also give us a stronger voice in how these products are developed, helping shape new offerings that better match our various distribution channels and customer preferences.

By jointly delivering quality business insurance products and service through FirstMerit Commercial Insurance Agency, Inc., we are able to add tremendous value to our commercial relationships without incurring product development costs or assuming underwriting risk. A note on privacy: FirstMerit does not sell customer information to any outside party.

The powerful triumvirate formed by Abell & Associates, FirstMerit Investment Services and FirstMerit Investment Management & Trust drives team-based strategy for our fast-growing wealth services program. Abell - acquired by FirstMerit in 1997 - continued to help us expand financial management support capabilities to businesses and high-income individuals. In 1999, Abell contributed $3,261,000 reflecting a 63% gain in business volume for the year.

Financial Consultants from FirstMerit Investment Services actively call on their relationship customers to build awareness of new opportunities and to monitor ongoing financial progress. Whether an individual is an entry-level investor or a wealth management or Private Banking client, FMIS specialists provide effective investment solutions to match specific objectives. FirstMerit Investment Management & Trust provides equally proactive service to clients who seek active portfolio management.

In 1999, FMIS increased gross commissions from the sale of securities and annuities by 32%, and achieved a 48% increase over 1998 net profits.

“Service means everything in today’s business world. FirstMerit Commercial Insurance has exemplified this by providing top quality service to our organization. They enhanced our previous coverage to meet our ever changing needs.” - Dick Malson, President & CEO - Ramco Specialties, Inc.

“I’ve been a FirstMerit banker for 26 years and thoroughly enjoy helping my customers. I’m looking forward to helping even more with new financial services we’re adding.” - Jacqui Scott, Personal Banking Representative