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Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2014
Compensation and Retirement Disclosure [Abstract]  
Schedule of Net Benefit Costs
The combined components of net periodic pension and postretirement benefits and other amounts recognized in AOCI for the Corporation's pension and postretirement benefit plans as of December 31, 2014, 2013 and 2012, are as follows:
 
Pension Benefits
 
Postretirement Benefits
(In thousands)
2014
 
2013
 
2012
 
2014
 
2013
 
2012
Net periodic cost consists of:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
728

 
$
2,339

 
$
7,194

 
$
65

 
$
99

 
$
77

Interest cost
14,337

 
12,814

 
11,862

 
655

 
563

 
697

Expected return on plan assets
(16,035
)
 
(14,938
)
 
(12,136
)
 
—

 
—

 
—

Amortization of prior service cost/(credit)
2,599

 
467

 
388

 
(468
)
 
(468
)
 
(468
)
Amortization of actuarial (gains)/losses
2,930

 
4,693

 
10,371

 
236

 
268

 
288

Settlement / curtailment income
—

 
(524
)
 
(142
)
 
—

 
—

 
—

Net periodic cost (benefit)
4,559

 
4,851

 
17,537

 
488

 
462

 
594

Other changes in plan assets and benefit obligations recognized in Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
Current year actuarial losses/(gains)
49,488

 
(47,257
)
 
1,281

 
64

 
(682
)
 
(57
)
Amortization of actuarial gains/(losses)
(2,930
)
 
(4,169
)
 
(10,229
)
 
(236
)
 
(268
)
 
(288
)
Amortization of prior service (cost)/credit
(2,599
)
 
(467
)
 
(388
)
 
468

 
468

 
468

Total recognized in AOCI, before income taxes
43,959

 
(51,893
)
 
(9,336
)
 
296

 
(482
)
 
123

Total recognized in net periodic cost and AOCI
$
48,518

 
$
(47,042
)
 
$
8,201

 
$
784

 
$
(20
)
 
$
717

 
 
 
 
 
 
 
 
 
 
 
 
Schedule of Net Funded Status
The following table sets forth a reconciliation of the changes in the projected benefit obligation for the Corporation’s pension and postretirement benefit plans as of December 31, 2014, and 2013, as well as the change in plan assets for the Corporation’s qualified pension plans:
 
Pension Benefits
 
Postretirement Benefits
(In thousands)
2014
 
2013
 
2014
 
2013
Accumulated benefit obligation, end of year
$
354,402

 
$
307,739

 
 
 
 
Change in projected benefit obligation:
 
 
 
 
 
 
 
Projected benefit obligation, beginning of year
308,834

 
259,428

 
$
15,544

 
$
14,771

Citizens acquisition
—

 
85,483

 
—

 
2,062

  Service cost
728

 
2,339

 
65

 
99

  Interest cost
14,337

 
12,814

 
655

 
563

  Plan amendments
—

 
3,927

 
(1,979
)
 
—

  Participant contributions
—

 
—

 
1,851

 
1,538

  Actuarial (gains)/losses and change in assumptions
50,115

 
(35,984
)
 
2,046

 
(682
)
  Benefits paid
(18,372
)
 
(19,172
)
 
(3,018
)
 
(2,808
)
Projected benefit obligation, end of year
$
355,642

 
$
308,834

 
$
15,164

 
$
15,544

Change in plan assets, at fair value:
 
 
 
 
 
 
 
Fair value of plan assets, beginning of year
$
257,510

 
$
174,385

 
$
—

 
$
—

Citizens acquisition
—

 
68,304

 
—

 
—

  Actual return on plan assets
16,663

 
30,298

 
—

 
—

  Participant contributions
—

 
—

 
1,851

 
1,538

  Employer contributions
1,554

 
3,695

 
1,167

 
1,270

  Benefits paid
(18,372
)
 
(19,172
)
 
(3,018
)
 
(2,808
)
Fair value of plan assets, end of year
$
257,355

 
$
257,510

 
$
—

 
$
—

Funded status (1)
(98,287
)
 
(51,324
)
 
(15,164
)
 
(15,544
)
Amounts recognized in AOCI before income taxes:
 
 
 
 
 
 
 
Prior service cost (credit)
$
2,587

 
$
5,121

 
$
(5,370
)
 
$
(3,858
)
Net actuarial loss
99,715

 
53,061

 
5,138

 
3,329

Amount recognized in AOCI
$
102,302

 
$
58,182

 
$
(232
)
 
$
(529
)
 
 
 
 
 
 
 
 
(1) The Corporation recognizes the underfunded status of the plans in accrued taxes, expenses and other liabilities on the Consolidated Balance Sheet.
Schedule of Assumptions Used
The actuarial assumptions used to determine year end obligations for the Corporation’s pension and postretirement plans were as follows:
Weighted-average assumptions for year end obligations
2014
 
2013
 
2012
Discount rate
 
 
 
 
 
Qualified pensions
4.19
%
 
4.99
%
 
4.21
%
   Nonqualified pensions
3.61
%
 
4.12
%
 
4.21
%
   Postretirement medical benefits, FirstMerit’s plan
3.50
%
 
4.01
%
 
3.18
%
   Postretirement medical benefits, Citizens’ plan
3.61
%
 
3.98
%
 
na

   Postretirement life insurance benefits
4.36
%
 
5.08
%
 
4.30
%
Expected long-term rate of return
6.50
%
 
6.75
%
 
7.00
%
Rate of compensation increase
 
 
 
 
 
   Qualified pensions
na

 
na

 
na

   Nonqualified pensions
3.75
%
 
3.75
%
 
3.75
%
Assumed health care cost trend rate, pre-65 (1)
 
 
 
 
 
   Initial trend
7.00
%
 
7.50
%
 
8.00
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2019

 
2019

 
2019

Assumed health care cost trend rate, post-65 (1)
 
 
 
 
 
   Initial trend
11.00
%
 
11.50
%
 
12.00
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2027

 
2027

 
2027

Prescription Drugs
 
 
 
 
 
   Initial trend
7.00
%
 
7.50
%
 
8.00
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2019

 
2019

 
2019

 
 
 
 
 
 
(1) The health care cost trend assumptions relate only to the postretirement benefit plans. Increasing or decreasing the assumed health care cost trend rates by one percentage point each future year would not have a material impact on total service and interest cost or the year end benefit obligation.


The actuarial assumptions used as of the beginning of the year to determine the net periodic costs for the Corporation’s pension and postretirement plans were as follows:
Weighted-average assumptions for benefit cost at beginning of year
2014
 
2013
 
2012
Discount rate
 
 
 
 
 
Qualified pension
4.99
%
 
4.21
%
 
5.04
%
   Nonqualified pensions
4.12
%
 
4.21
%
 
5.04
%
   Postretirement medical benefits
4.01
%
 
3.18
%
 
4.23
%
   Postretirement life insurance benefits
5.08
%
 
4.30
%
 
5.03
%
Expected long-term rate of return
6.75
%
 
7.00
%
 
7.25
%
Rate of compensation increase
 
 
 
 
 
Qualified pension
na

 
na

 
5.22
%
   Nonqualified pensions
3.75
%
 
3.75
%
 
3.75
%
Assumed health care cost trend rate, pre-65 (1)
 
 
 
 
 
   Initial trend
7.50
%
 
8.00
%
 
8.50
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2019

 
2019

 
2019

Assumed health care cost trend rate, post-65 (1)
 
 
 
 
 
   Initial trend
11.50
%
 
12.00
%
 
12.50
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2027

 
2027

 
2027

Prescription Drugs
 
 
 
 
 
   Initial trend
7.50
%
 
8.00
%
 
8.50
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2019

 
2019

 
2019

 
 
 
 
 
 
(1) The health care cost trend assumptions relate only to the postretirement benefit plans. Increasing or decreasing the assumed health care cost trend rates by one percentage point each future year would not have a material impact on total service and interest cost or the year end benefit obligation
Schedule of Amounts in Accumulated Other Comprehensive Income (Loss) to be Recognized over Next Fiscal Year
The amounts in accumulated other comprehensive loss that are expected to be recognized as components of net periodic benefit cost (credit) during the next fiscal year are as follows:
(In thousands)
Pension
 
Postretirement
 
Total
Prior service cost/(credit)
$
2,279

 
$
(639
)
 
$
1,640

Actuarial net loss
4,224

 
325

 
4,549

 
 
 
 
 
 
Schedule of Expected Benefit Payments
The expected benefits were estimated using the same assumptions as those used to calculate the benefit obligations in the preceding tables and includes benefits attributable to estimated future employee service.
(In thousands)
Pension
 
Postretirement
2015
$
26,555

 
$
1,247

2016
26,420

 
1,137

2017
22,162

 
1,063

2018
21,858

 
1,004

2019
20,239

 
951

2020 through 2024
93,104

 
4,331

 
 
 
 
Investment Allocation Strategy
As the plan’s funded ratio status improves, the allocation to liability-hedging assets will increase.
Dynamic Investment Policy Schedule
Return-Seeking (and Diversification) Allocation Strategy
Funded Ratio
Minimum
Target
Maximum
≤97%
36%
40%
44%
98%
34%
38%
42%
99%
31%
35%
39%
100%
30%
33%
36%
101%
28%
31%
34%
102%
26%
29%
32%
103%
23%
26%
29%
104%
21%
24%
27%
105%
18%
21%
24%
106%
16%
18%
20%
107%
12%
14%
16%
≥108%
8%
10%
12%
 
 
 
 
Schedule of Allocation of Plan Assets
The weighted-average allocations for the FirstMerit Pension Plan as of December 31, 2014 and 2013, by asset category, are as follows:
 
 
Percentage of
Plan Assets on
Measurement Date
 
 
December 31,
Asset Category
 
2014
 
2013
Cash and domestic money market funds
 
1.49
%
 
1.92
%
U.S. Treasury obligations
 
1.97
%
 
1.76
%
U.S. Government agencies
 
1.12
%
 
0.95
%
Corporate bonds
 
2.79
%
 
3.12
%
Common stocks
 
13.54
%
 
11.24
%
Equity mutual funds
 
18.85
%
 
27.62
%
Fixed income mutual funds
 
50.11
%
 
36.56
%
Foreign mutual funds
 
10.13
%
 
16.83
%
 
 
100.00
%
 
100.00
%
 
 
 
 
 
Schedule of Defined Benefit Plans Disclosure
The following table sets forth by level, within the fair value hierarchy, the FirstMerit Pension Plan’s assets at fair value as of December 31, 2014:
(In thousands)
Level 1
 
Level 2
 
Level 3
 
Total
Domestic money market funds
$
3,836

 
$
—

 
$
—

 
$
3,836

United States government securities
—

 
5,067

 
—

 
5,067

United States government agency issues
—

 
2,897

 
—

 
2,897

Corporate bonds
—

 
7,177

 
—

 
7,177

Common stocks
34,835

 
—

 
—

 
34,835

Equity mutual funds
48,518

 
—

 
—

 
48,518

Fixed income mutual funds
128,951

 
—

 
—

 
128,951

Foreign mutual funds
26,074

 
—

 
—

 
26,074

Total assets at fair value
$
242,214

 
$
15,141

 
$
—

 
$
257,355