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What is the composition and rate of FirstMerit's recently announced dividend?

On August 20, 2009, FirstMerit's Board of Directors declared a quarterly dividend of $0.16 per share on the Company's common stock to shareholders of record on August 31, 2009. Shareholders will also receive a $0.13 per share dividend of common stock, which will be converted into shares based on the closing price of common stock on August 31, 2009, for a conversion ratio of .0072343 per share of common stock. FirstMerit will distribute its part-cash, part-stock dividend on September 21, 2009.

How will I receive my stock dividend?

At present, FirstMerit anticipates that all stock dividend shares (including any fractional shares) will be issued electronically and distributed to shareholders of record in book-entry form through FirstMerit's transfer agent, American Stock Transfer & Trust Co. FirstMerit anticipates that stock dividend shares will be distributed in book-entry form to offer a convenient, safe, efficient and cost-effective means of distributing stock dividend shares to shareholders. In the event that stock dividend shares are issued in book-form, registered shareholders will receive stock dividend shares in book-entry form directly from American Stock Transfer & Trust Co. If you are a registered shareholder who participates in the Dividend Reinvestment Plan, your dividend will be issued directly as stock dividend shares and will be deposited into your Dividend Reinvestment account, except for any fractional shares, which will be paid by check, and unless you also have non-DR shares in your account, in which case such will receive stock dividend shares with respect to such shares which will not be credited to your Dividend Reinvestment account. Finally, if you hold your shares through a broker/dealer in "street name," you will receive your stock dividend shares through your broker/dealer account. Please contact your broker/dealer directly for more information regarding how you will receive your stock dividend shares.

What is my cost basis in the stock dividend shares and what is the potential tax treatment of the upcoming stock dividend?

Each shareholder's tax consequences with respect to the upcoming stock dividend are unique, and, therefore, we are unable to provide specific tax advice. Generally, U.S. federal income tax law provides that a shareholder who receives a stock dividend must allocate existing cost basis pro rata between the shareholder's old shares and the new stock dividend shares (including any fractional shares). Furthermore, a shareholder's receipt of common shares in the stock dividend should not result in taxable income to the shareholder for U.S. federal income tax purposes unless the shares are sold. However, FirstMerit advises each shareholder to consult with a tax professional regarding the shareholder's particular tax consequences under U.S. federal, state, local, and/or foreign tax laws of the upcoming stock dividend.

What if I have additional questions regarding FirstMerit's dividend that have not been answered?

Shareholders may contact FirstMerit's Investor Relations by calling 330-849-8772.

IRS CIRCULAR 230 DISCLOSURE: In order to ensure compliance with requirements imposed by the U.S. Internal Revenue Service, we inform you that any federal tax information contained in this communication (including any attachments) is not intended or written to be used, and it cannot be used, by any taxpayer for the purpose of avoiding penalties that may be imposed under the U.S. Internal Revenue Code. In addition, the foregoing information was written to support the promotion or marketing of the transaction(s) or matter(s) addressed herein. Each taxpayer should seek advice based on the taxpayer's particular circumstances from an independent tax advisor.