This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
TheStreet Open House

3 Top Picks in Regional Banks: Oppenheimer

FMER Chart FMER data by YCharts

3. FirstMerit

Shares of FirstMerit (FMER) of Akron, Ohio, closed at $17.04 Monday, returning 21% this year, following a 2% decline during 2012. The shares trade for 1.6 times tangible book value, according to Thomson Reuters Bank Insight, and for 12.0 times the consensus 2014 earnings estimate of $1.42 a share. The consensus 2013 EPS estimate is $1.29.

Based on a quarterly payout of 16 cents, the shares have a dividend yield of 3.76%.

FirstMerit on April 12 completed its acquisition of Citizens Republic Bancorp of Flint, Mich., bringing on over $9.5 billion in assets and over 170 branches. The company had a total of 415 branches in Ohio, Michigan, Wisconsin, Illinois and Pennsylvania as of March 31, with $15.3 billion in total assets.

FirstMerit reported first-quarter earnings of $37.3 million, or 33 cents a share, compared to $38.3 million, or 35 cents a share, in the fourth quarter, and $35.0 million, or 32 cents a share, in the first quarter of 2012.

Net interest income declined to $114.4 million in the first quarter from $119.2 million the previous quarter and $120.7 million a year earlier, however, the sequential decline was more than offset by a decline in expenses.

Noninterest expenses totaled $106.9 million in the first quarter, declining from $112.2 million in the fourth quarter and $119.1 million in the first quarter of 2012.

The company's first-quarter return on average assets was 1.01% and its return on average common equity was 8.83%.

McEvoy said in a report on April 23 that "we see potential upside to earnings from the recently closed acquisition of Citizens Republic as the Michigan economy grows, and feel confident in management's ability to integrate the two companies."

The analyst's 12-to-18-month price target for FirstMerit is $18, and he estimates the company will earn $1.38 a share this year, with EPS rising to $1.40 in 2014.

Interested in more on FirstMerit? See TheStreet Ratings' report card for this stock.

2 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!
DOW 16,987.51 -61.49 -0.36%
S&P 500 1,985.54 -11.91 -0.60%
NASDAQ 4,567.5980 -24.2080 -0.53%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs