Maturities of the Investment Securities at Year-end 1999

*Fully tax-equivalent based upon federal income tax structure applicable at December 31, 1999.

At year-end 1999, Collateralized Mortgage Obligations (“CMOs”) totaled $316.6 million, representing approximately 12.9% of the investment portfolio. The duration of total CMOs is slightly less than the total portfolio. The aggregate book value of all privately issued mortgage-backed securities does not exceed 10% of shareholders’ equity.

The yield on the portfolio was 6.19% in 1999 compared to 6.41% in 1998 and 6.56% in 1997.

Loans

Total loans outstanding at year-ended 1999 increased 10.3% compared to one year ago or were $7.0 billion compared to $6.4 billion at year-end 1998. The following tables breakdown outstanding loans by category and provide a maturity summary of commercial, financial and agricultural loans.

Real estate loans at year-end 1999 totaled $3,672.3 million or 52.4% of total loans outstanding compared to 55.8% one year ago. Residential loans (one-to-four family dwellings) totaled $1,603.1 million, home equity loans $411.5 million, construction loans $311.8 million and commercial real estate loans $1,345.9 million.

Commercial real estate loans include both commercial loans where real estate has been taken as collateral as well as loans for commercial real estate. The majority of commercial real estate loans are to owner occupants where cash flow to service debt is derived from the occupying business cash flow instead of normal building rents. These loans are generally part of an overall relationship with existing customers primarily within northeast Ohio.

Consumer loans or loans to individuals increased 12.9% compared to last year and accounted for 21.5% of total loans compared to 20.9% in 1998.

Commercial, financial, and agricultural loans increased 19.5% during 1999 and constitute 22.3% of total outstanding loans compared to 20.4% last year. The increase in consumer and commercial loans is evidence of FirstMerit’s shifting loan portfolio.

Lease financing loans increased 59.4% during 1999. Auto leases totaled $167.6 million with equipment leasing totaling $100.3 million, leveraged leases were $4.0 million and tax-free leases were $0.5 million at year-end 1999.

There is no concentration of loans in any particular industry or group of industries. Most of the Corporation’s business activity is with customers located within the state of Ohio.