FirstMerit Corp. is getting bigger.
Shareholders in the Akron banking company Friday morning approved the purchase of Michigan-based Citizens Republic Bancorp along with all other items on the agenda for FirstMerit’s annual shareholders meeting.
Citizens Republic shareholders were also expected to approve the acquisition in a separate vote Friday in Flint, Mich. Citizens Republic is not affiliated with Citizens Bank, which owns Charter One Bank. The Flint Journal newspaper reported that shareholders there declined comment on the Citizens Republic vote following a half-hour meeting; the bank was expected to release vote details later today.
Once shareholder approval is officially ratified, the $912 million purchase, using stock, is expected to close shortly. It’s FirstMerit’s first acquisition since 2010.
The deal expands FirstMerit’s geographic footprint into Michigan and Wisconsin, Paul Greig, chairman, president and chief executive officer, told shareholders.
“This is the biggest acquisition in FirstMerit’s history,” he said.
The merger means FirstMerit will have $24.5 billion in assets, $15 billion in loans, almost $19 billion in deposits and more than 5,000 employees, he said. Citizens Republic has 219 offices in Michigan, Wisconsin and Ohio; all will be rebranded as FirstMerit offices.
Friday’s meeting, which lasted about half an hour, was held in a seventh floor conference room at FirstMerit Tower in downtown Akron. It marked the first time that the annual shareholders meeting has not been in the John S. Knight Center. More than 60 people attended, including shareholders and FirstMerit employees and board members, filling about half the available seats.
FirstMerit ended 2012 in a strong position and weathered the Great Recession of 2008-2010 in better shape than many other financial institutions, Greig said. FirstMerit has been profitable for 55 consecutive quarters and continued to pay a dividend through the deep financial downturn, he said.
FirstMerit’s expansion into the Chicago area has been a tremendous source of growth, Greig said.
FirstMerit will take what it learned from its Chicago experience and apply that to the Citizens Republic purchase, he said.
Citizens Republic is a compelling and attractive acquisition because FirstMerit will be getting a banking company with a similar business model and customer base, he said.
“We have a proven track record on integration,” Greig said.
Also Friday, shareholders approved:
• On an advisory basis, executive compensation and potential payments related to the merger.
• The election of 13 directors.
• Ernst & Young as the bank’s accounting firm.
• On an advisory basis, compensation for FirstMerit’s top officers.
.• A 2013 annual incentive plan.
Jim Mackinnon can be reached at 330-996-3544 or jmackinnon@thebeaconjournal.com.