Investment Securities

3 Months Ended

Mar. 31, 2015

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following tables provide the amortized cost and fair value for the major categories of held-to-maturity and available-for-sale securities. Held-to-maturity securities are carried at amortized cost, which reflects historical cost, adjusted for amortization of premiums and accretion of discounts. Available-for-sale securities are carried at fair value with net unrealized gains or losses reported on an after tax basis as a component of OCI in shareholders' equity.

		March 31, 2015
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale
Debt securities
	U.S. treasury notes & bonds	$	—	$	—	$	—		$	—
	U.S. government agency debentures	2,500		13		—			2,513
	U.S. states and political subdivisions	208,800		6,750		(386		)	215,164
	Residential mortgage-backed securities:
	U.S. government agencies	924,453		24,799		(1,949		)	947,303
	Commercial mortgage-backed securities:
	U.S. government agencies	139,789		1,231		(661		)	140,359
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,895,112		11,305		(13,857		)	1,892,560
	Non-agency	6		—		—			6
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	241,839		2,602		(382		)	244,059
	Asset-backed securities:
	Collateralized loan obligations	297,506		587		(4,131		)	293,962
	Corporate debt securities	61,668		—		(9,404		)	52,264
	Total debt securities	3,771,673		47,287		(30,770		)	3,788,190
Equity securities
	Marketable equity securities	2,869		—		—			2,869
	Non-marketable equity securities	—		—		—			—
	Total equity securities	2,869		—		—			2,869
	Total securities available-for-sale	$	3,774,542	$	47,287	$	(30,770	)	$	3,791,059
Securities held-to-maturity
Debt securities
	U.S. treasury notes & bonds	$	5,000	$	—	$	—		$	5,000
	U.S. government agency debentures	25,000		—		(178		)	24,822
	U.S. states and political subdivisions	523,501		8,864		(1,147		)	531,218
	Residential mortgage-backed securities:
	U.S. government agencies	577,278		10,745		(1,677		)	586,346
	Commercial mortgage-backed securities:
	U.S. government agencies	57,818		765		(108		)	58,475
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,320,215		1,959		(24,846		)	1,297,328
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	256,352		1,659		(3,377		)	254,634
	Corporate debt securities	90,010		1,079		—			91,089
	Total securities held-to-maturity	$	2,855,174	$	25,071	$	(31,333	)	$	2,848,912

		December 31, 2014
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale
Debt securities
	U.S. government agency debentures	$	2,500	$	—	$	(18	)	$	2,482
	U.S. states and political subdivisions	221,052		6,756		(466		)	227,342
	Residential mortgage-backed securities:
	U.S. government agencies	951,839		22,377		(3,218		)	970,998
	Commercial mortgage-backed securities:
	U.S. government agencies	104,176		598		(1,371		)	103,403
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,698,015		4,777		(26,225		)	1,676,567
	Non-agency	7		—		—			7
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	222,876		863		(1,405		)	222,334
	Asset-backed securities:
	Collateralized loan obligations	297,446		11		(9,613		)	287,844
	Corporate debt securities	61,652		—		(10,315		)	51,337
	Total debt securities	3,559,563		35,382		(52,631		)	3,542,314
Equity securities
	Marketable equity securities	2,974		—		—			2,974
	Total equity securities	2,974		—		—			2,974
	Total securities available-for-sale	$	3,562,537	$	35,382	$	(52,631	)	$	3,545,288
Securities held-to-maturity
Debt securities
	U.S. treasury notes & bonds	$	5,000	$	—	$	—		$	5,000
	U.S. government agency debentures	25,000		—		(537		)	24,463
	U.S. states and political subdivisions	517,824		12,645		(191		)	530,278
	Residential mortgage-backed securities:
	U.S. government agencies	580,727		7,495		(3,045		)	585,177
	Commercial mortgage-backed securities:
	U.S. government agencies	58,143		281		(329		)	58,095
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,368,534		718		(38,875		)	1,330,377
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	257,642		557		(6,768		)	251,431
	Corporate debt securities	90,739		412		(52		)	91,099
	Total securities held-to-maturity	$	2,903,609	$	22,108	$	(49,797	)	$	2,875,920

		March 31, 2014
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale
Debt securities
	U.S. states and political subdivisions	$	245,534	$	7,541	$	(2,095	)	$	250,980
	Residential mortgage-backed securities:
	U.S. government agencies	1,013,085		21,415		(10,506		)	1,023,994
	Commercial mortgage-backed securities:
	U.S. government agencies	87,258		36		(2,161		)	85,133
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,586,051		3,857		(41,804		)	1,548,104
	Non-agency	8		—		—			8
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	173,951		331		(1,813		)	172,469
	Asset-backed securities:
	Collateralized loan obligations	297,293		958		(3,692		)	294,559
	Corporate debt securities	61,610		—		(10,022		)	51,588
	Total debt securities	3,464,790		34,138		(72,093		)	3,426,835
Equity Securities
	Marketable equity securities	3,055		—		—			3,055
	Non-marketable equity securities	3,281		—		—			3,281
	Total equity securities	6,336		—		—			6,336
	Total securities available-for-sale	$	3,471,126	$	34,138	$	(72,093	)	$	3,433,171
Securities held-to-maturity
Debt securities
	U.S. treasury notes & bonds	$	4,999	$	6	$	—		$	5,005
	U.S. government agency debentures	25,000		—		(1,117		)	23,883
	U.S states and political subdivisions	517,221		159		(7,186		)	510,194
	Residential mortgage-backed securities:
	U.S. government agencies	644,820		2,311		(8,584		)	638,547
	Commercial mortgage-backed securities:
	U.S. government agencies	56,339		32		(877		)	55,494
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,488,641		—		(64,734		)	1,423,907
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	249,688		138		(9,749		)	240,077
	Corporate debt securities	92,912		437		(295		)	93,054
	Total securities held-to-maturity	$	3,079,620	$	3,083	$	(92,542	)	$	2,990,161

The Corporation's U.S. states and political subdivisions portfolio is composed of general obligation bonds issued by a highly diversified number of states, cities, counties, and school districts. The amortized cost and fair value of the Corporation's portfolio of general obligation bonds are summarized by U.S. state in the tables below. As illustrated in the tables below, the aggregate fair value of the Corporation's general obligation bonds was greater than $10.0 million in eleven of the thirty-seven U.S. states in which it holds investments.

(Dollars in thousands)	March 31, 2015
U.S. State	# of Issuers	Average Issue Size, Fair Value		Amortized Cost		Fair Value
Ohio	136	$	925	$	124,908	$	125,864
Michigan	164	857		138,091		140,620
Illinois	62	1,841		111,649		114,150
Wisconsin	73	760		53,877		55,497
Texas	63	784		48,388		49,396
Pennsylvania	46	1,018		46,085		46,816
Minnesota	35	697		23,821		24,405
Washington	31	930		28,194		28,836
New Jersey	37	747		26,724		27,623
Missouri	15	1,098		16,032		16,472
New York	19	629		11,646		11,948
Other	121	639		76,127		77,365
Total general obligation bonds	802	$	896	$	705,542	$	718,992

(Dollars in thousands)	December 31, 2014
U.S. State	# of Issuers	Average Issue Size, Fair Value		Amortized Cost		Fair Value
Ohio	137	$	979	$	130,741	$	134,127
Michigan	169	842		138,325		142,292
Illinois	66	1,897		121,560		125,169
Wisconsin	77	841		62,543		64,776
Texas	64	801		50,307		51,293
Pennsylvania	45	1,000		44,443		45,006
Minnesota	42	674		27,740		28,326
Washington	30	952		27,987		28,558
New Jersey	37	746		26,755		27,612
Missouri	19	1,011		18,764		19,207
New York	19	628		11,659		11,929
Other	120	650		76,849		78,020
Total general obligation bonds	825	$	917	$	737,673	$	756,315

(Dollars in thousands)	March 31, 2014
U.S. State	# of Issuers	Average Issue Size, Fair Value		Amortized Cost		Fair Value
Ohio	153	$	1,033	$	159,883	$	158,074
Illinois	72	1,496		107,451		107,717
Texas	68	779		52,807		52,941
Pennsylvania	51	969		50,579		49,428
Wisconsin	87	683		58,635		59,428
Minnesota	42	672		27,925		28,213
New Jersey	37	744		26,844		27,518
Michigan	171	789		135,588		134,965
Washington	30	940		28,292		28,210
Missouri	19	1,012		18,904		19,232
New York	22	594		13,046		13,075
Other	129	634		82,317		81,807
Total general obligation bonds	881	$	863	$	762,271	$	760,608

The Corporation's investment policy states that municipal securities purchased are to be investment grade and allows for a 20% maximum portfolio concentration in municipal securities with a combined individual state to total municipal outstanding equal to or less than 25%. A municipal security is investment grade if (1) the security has a low risk of default by the obligor and (2) the full and timely payment of principal and interest is expected over the anticipated life of the instrument. The fact that a municipal security is rated by one nationally recognized credit rating agency is indicative, but not sufficient evidence, that a municipal security is investment grade. In all cases, the Corporation considers and documents within a security pre-purchase analysis factors such as capacity to pay, market and economic data, and such other factors as are available and relevant to the security or issuer. Factors to be considered in the ongoing monitoring of municipal securities and in the pre-purchase analysis include soundness of budgetary position and sources of revenue, financial strength, and stability of tax or enterprise revenues. The Corporation also considers spreads to U.S. Treasuries on comparable bonds of similar credit quality, in addition to the above analysis, to assess whether municipal securities are investment grade. The Corporation performs a risk analysis for any security that is downgraded below investment grade to determine if the security should be retained or sold. This risk analysis includes, but is not limited to, discussions with the Corporation's credit department as well as third-party municipal credit analysts and review of the nationally recognized credit rating agency's analysis describing the downgrade.

The Corporation's evaluation of its municipal bond portfolio at March 31, 2015 did not uncover any facts or circumstances resulting in significantly different credit ratings than those assigned by a nationally recognized credit rating agency.

FRB and FHLB stock constitutes the majority of other investments on the Consolidated Balance Sheets.

(In thousands)	March 31, 2015		December 31, 2014		March 31, 2014
FRB stock	$	55,681	$	55,681	$	55,435
FHLB stock	92,381		92,547		92,547
Other	413		426		464
Total other investments	$	148,475	$	148,654	$	148,446

FRB and FHLB stock is classified as a restricted investment, carried at cost and valued based on the ultimate recoverability of par value. Cash and stock dividends received on the stock are reported as interest income. There are no identified events or changes in circumstances that may have a significant adverse effect on these investments carried at cost.

Securities with a carrying value of $3.5 billion, $2.8 billion, and $3.4 billion at March 31, 2015, December 31, 2014, and March 31, 2014, respectively, were pledged to secure trust and public deposits and securities sold under agreements to repurchase and for other purposes required or permitted by law.

Realized Gains and Losses

The following table presents the gross realized gains and losses on the sales of those securities that have been included in earnings as a result of those sales. Gains or losses on the sales of available-for-sale securities are recognized upon sale and are determined using the specific identification method.

	Three Months Ended March 31,
(In thousands)	2015			2014
Realized gains	$	392		$	220
Realized losses	(38		)	(164		)
Net securities (losses)/gains	$	354		$	56

Gross Unrealized Losses and Fair Value

The following table presents the gross unrealized losses and fair value of securities by length of time that individual securities had been in a continuous loss position by major categories of available-for-sale and held-to-maturity securities.

		March 31, 2015
		Less than 12 months						12 months or longer						Total
(In thousands)		Fair Value		Unrealized Losses			Number Impaired Securities	Fair Value		Unrealized Losses			Number Impaired Securities	Fair Value		Unrealized Losses
Securities available-for-sale
Debt securities
	U.S. treasury notes & bonds	$	—	$	—		0	$	—	$	—		0	$	—	$	—
	U.S. states and political subdivisions	14,380		(117		)	23	6,004		(269		)	10	20,384		(386		)
	Residential mortgage-backed securities:
	U.S. government agencies	74,517		(360		)	5	108,052		(1,589		)	8	182,569		(1,949		)
	Commercial mortgage-backed securities:
	U.S. government agencies	49,129		(175		)	7	17,690		(486		)	2	66,819		(661		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	70,574		(762		)	6	745,621		(13,095		)	53	816,195		(13,857		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	13,206		(24		)	2	61,132		(358		)	6	74,338		(382		)
	Asset-backed securities:
	Collateralized loan obligations	24,087		(209		)	3	181,498		(3,922		)	27	205,585		(4,131		)
	Corporate debt securities	—		—			0	52,263		(9,404		)	8	52,263		(9,404		)
	Total securities available-for-sale	$	245,893	$	(1,647	)	46	$	1,172,260	$	(29,123	)	114	$	1,418,153	$	(30,770	)
Securities held-to-maturity
Debt securities
	U.S. treasury notes & bonds	$	5,000	$	—		1	$	—	$	—		0	$	5,000	$	—
	U.S. government agency debentures	$	—	$	—		0	$	24,822	$	(178	)	1	$	24,822	$	(178	)
	U.S. states and political subdivisions	38,202		(1,093		)	26	4,448		(54		)	6	42,650		(1,147		)
	Residential mortgage-backed securities:
	U.S. government agencies	28,386		(123		)	2	110,329		(1,554		)	6	138,715		(1,677		)
	Commercial mortgage-backed securities:
	U.S. government agencies	—		—			0	9,554		(108		)	1	9,554		(108		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	19,016		(71		)	1	1,095,375		(24,775		)	56	1,114,391		(24,846		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	—		—			0	144,970		(3,377		)	13	144,970		(3,377		)
	Collateralized loan obligations:
	Non-agency	—		—			0	—		—			0	—		—
	Corporate debt securities	—		—			0	—		—			0	—		—
	Total securities held-to-maturity	$	90,604	$	(1,287	)	30	$	1,389,498	$	(30,046	)	83	$	1,480,102	$	(31,333	)

		December 31, 2014
		Less than 12 months						12 months or longer						Total
(In thousands)		Fair Value		Unrealized Losses			Number Impaired Securities	Fair Value		Unrealized Losses			Number Impaired Securities	Fair Value		Unrealized Losses
Securities available-for-sale
Debt securities:
	U.S. government agency debentures	$	2,482	$	(18	)	1	$	—	$	—		—	$	2,482	$	(18	)
	U.S. states and political subdivisions	5,637		(11		)	11	22,528		(455		)	36	28,165		(466		)
	Residential mortgage-backed securities:
	U.S. government agencies	50,126		(182		)	5	199,773		(3,036		)	14	249,899		(3,218		)
	Commercial mortgage-backed securities:
	U.S. government agencies	12,284		(55		)	2	45,485		(1,316		)	6	57,769		(1,371		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	243,970		(906		)	15	905,478		(25,319		)	64	1,149,448		(26,225		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	31,375		(229		)	4	67,169		(1,176		)	7	98,544		(1,405		)
	Asset-backed securities:
	Collateralized loan obligations	79,042		(1,406		)	15	193,687		(8,207		)	27	272,729		(9,613		)
	Corporate debt securities	—		—			—	51,338		(10,315		)	8	51,338		(10,315		)
	Total securities available-for-sale	$	424,916	$	(2,807	)	53	$	1,485,458	$	(49,824	)	162	$	1,910,374	$	(52,631	)
Securities held-to-maturity
Debt securities:
	U.S. government agency debentures	$	—	$	—		—	$	24,463	$	(537	)	1	$	24,463	$	(537	)
	U.S. states and political subdivisions	9,085		(17		)	9	18,371		(174		)	21	27,456		(191		)
	Residential mortgage-backed securities:
	U.S. government agencies	—		—			—	185,361		(3,045		)	10	185,361		(3,045		)
	Commercial mortgage-backed securities:
	U.S. government agencies	9,950		(4		)	2	16,735		(325		)	2	26,685		(329		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	28,333		(149		)	3	1,161,297		(38,726		)	58	1,189,630		(38,875		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	41,474		(55		)	3	171,570		(6,713		)	16	213,044		(6,768		)
	Corporate debt securities	36,933		(52		)	13	—		—			—	36,933		(52		)
	Total securities held-to-maturity	$	125,775	$	(277	)	30	$	1,577,797	$	(49,520	)	108	$	1,703,572	$	(49,797	)

		March 31, 2014
		Less than 12 months						12 months or longer						Total
(In thousands)		Fair Value		Unrealized Losses			Number Impaired Securities	Fair Value		Unrealized Losses			Number Impaired Securities	Fair Value		Unrealized Losses
Securities available-for-sale
Debt securities
	U.S. states and political subdivisions	$	32,307	$	(937	)	53	$	17,231	$	(1,158	)	29	$	49,538	$	(2,095	)
	Residential mortgage-backed securities:
	U.S. government agencies	399,152		(9,543		)	28	15,013		(963		)	3	414,165		(10,506		)
	Commercial mortgage-backed securities:
	U.S. government agencies	63,129		(1,206		)	8	16,891		(955		)	2	80,020		(2,161		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	966,458		(28,054		)	62	273,543		(13,750		)	18	1,240,001		(41,804		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	90,804		(1,475		)	8	6,014		(338		)	2	96,818		(1,813		)
	Asset-backed securities:
	Collateralized loan obligations	201,854		(3,692		)	28	—		—			—	201,854		(3,692		)
	Corporate debt securities	—		—			—	51,588		(10,022		)	8	51,588		(10,022		)
	Total securities available-for-sale	$	1,753,704	$	(44,907	)	187	$	380,281	$	(27,186	)	63	$	2,133,985	$	(72,093	)
Securities held-to-maturity
Debt securities
	U.S. government agency debentures	$	23,883	$	(1,117	)	1	$	—	$	—		—	$	23,883	$	(1,117	)
	U.S. states and political subdivisions	476,766		(6,833		)	735	15,544		(353		)	14	492,310		(7,186		)
	Residential mortgage-backed securities:
	U.S. government agencies	295,148		(7,471		)	16	19,730		(1,113		)	1	314,878		(8,584		)
	Commercial mortgage-backed securities:
	U.S. government agencies	50,533		(877		)	8	—		—			—	50,533		(877		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	865,651		(36,384		)	42	558,256		(28,350		)	27	1,423,907		(64,734		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	200,487		(8,507		)	18	19,459		(1,242		)	2	219,946		(9,749		)
	Corporate debt securities	62,051		(295		)	22	—		—			—	62,051		(295		)
	Total securities held-to-maturity	$	1,974,519	$	(61,484	)	842	$	612,989	$	(31,058	)	44	$	2,587,508	$	(92,542	)

At least quarterly, the Corporation conducts a comprehensive security-level impairment assessment on all securities in an unrealized loss position to determine if OTTI exists. An unrealized loss exists when the current fair value of an individual security is less than its amortized cost basis. An OTTI loss must be recognized for a debt security in an unrealized loss position if the Corporation intends to sell the security or it is more likely than not that the Corporation will be required to sell the security before recovery of its amortized cost basis. In this situation, the amount of loss recognized in income is equal to the difference between the fair value and the amortized cost basis of the security. Even if the Corporation does not expect to sell the security, the Corporation must evaluate the expected cash flows to be received to determine if a credit loss has occurred. In the event of a credit loss, only the amount of impairment associated with the credit loss is recognized in income. The portion of the unrealized loss relating to other factors, such as liquidity conditions in the market or changes in market interest rates, is recorded in OCI. Equity securities are also evaluated to determine whether the unrealized loss is expected to be recoverable based on whether evidence exists to support a realizable value equal to or greater than the amortized cost basis. If it is probable that the Corporation will not recover the amortized cost basis, taking into consideration the estimated recovery period and its ability to hold the equity security until recovery, OTTI is recognized.

The security-level assessment is performed on each security, regardless of the classification of the security as available for sale or held to maturity. The assessments are based on the nature of the securities, the financial condition of the issuer, the extent and duration of the securities, the extent and duration of the loss and whether Management intends to sell or it is more likely than not that it will be required to sell a security before recovery of its amortized cost basis, which may be maturity. For those securities which the assessment shows the Corporation will recover the entire cost basis, Management does not intend to sell these securities and it is not more likely than not that the Corporation will be required to sell them before the anticipated recovery of the amortized cost basis, the gross unrealized losses are recognized in OCI, net of tax.

The investment securities portfolio was in a net unrealized gain position of $10.3 million at March 31, 2015, compared to a net unrealized loss position of $44.9 million at December 31, 2014 and a net unrealized loss position of $127.4 million at March 31, 2014. Gross unrealized losses were $62.1 million as of March 31, 2015, compared to $102.4 million at December 31, 2014, and $164.6 million at March 31, 2014. As of March 31, 2015, gross unrealized losses are concentrated within agency MBS, CLOs, and corporate debt securities. Lower term interest rates have positively impacted MBS prices quarter to date while a favorable macro economy and belief that oil and gas related losses are well contained have resulted in tighter CLO spreads. Corporate debt securities are composed of eight, single issuer, trust preferred securities with stated maturities. Such investments are less than 1% of the fair value of the entire investment portfolio. None of the corporate issuers have deferred paying dividends on their issued trust preferred shares in which the Corporation is invested. The fair values of these investments have been impacted by the market conditions which have caused risk premiums to increase, resulting in the decline in the fair value of the trust preferred securities.

Management believes the Corporation will fully recover the cost of these agency MBSs, CLOs, and corporate debt securities, and it does not intend to sell these securities and it is not more likely than not that it will be required to sell them before the anticipated recovery of the remaining amortized cost basis, which may be maturity. As a result, Management concluded that these securities were not other-than-temporarily impaired at March 31, 2015 and has recognized the total amount of the impairment in OCI, net of tax.

The Corporation also holds $294.0 million of CLOs with a gross unrealized loss position of $4.1 million as of March 31, 2015. The new Volcker regulations, as originally adopted, may affect the Corporation's ability to hold these CLOs. Management believes that its holdings of CLOs are not ownership interests in a covered fund prohibited by the Volcker regulations and, therefore, expects to be able to hold these investments until their stated maturities with no restriction.

Contractual Maturity of Debt Securities

The following table shows the remaining contractual maturities and contractual yields of debt securities held-to-maturity and available-for-sale as of March 31, 2015. Estimated lives on MBSs may differ from contractual maturities as issuers may have the right to call or prepay obligations with or without call or prepayment penalties.