Investment Securities

6 Months Ended

Jun. 30, 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.

		June 30, 2015
(In thousands)		Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
Securities available-for-sale
Debt securities
	U.S. treasury notes & bonds	$	5,004	$	1	$	—		$	5,005
	U.S. government agency debentures	2,500		10		—			2,510
	U.S. states and political subdivisions	203,449		5,191		(1,023		)	207,617
	Residential mortgage-backed securities:
	U.S. government agencies	947,347		18,068		(4,563		)	960,852
	Commercial mortgage-backed securities:
	U.S. government agencies	171,842		643		(2,147		)	170,338
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,968,918		4,779		(24,308		)	1,949,389
	Non-agency	5		—		—			5
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	227,889		1,254		(705		)	228,438
	Asset-backed securities:
	Collateralized loan obligations	259,743		801		(2,463		)	258,081
	Corporate debt securities	61,681		—		(8,231		)	53,450
	Total debt securities	3,848,378		30,747		(43,440		)	3,835,685
Equity securities
	Marketable equity securities	2,824		—		—			2,824
	Non-marketable equity securities	—		—		—			—
	Total equity securities	2,824		—		—			2,824
	Total securities available-for-sale	$	3,851,202	$	30,747	$	(43,440	)	$	3,838,509
Securities held-to-maturity
Debt securities
	U.S. government agency debentures	$	25,000	$	—	$	(323	)	$	24,677
	U.S. states and political subdivisions	529,441		8,104		(1,942		)	535,603
	Residential mortgage-backed securities:
	U.S. government agencies	555,273		6,919		(2,940		)	559,252
	Commercial mortgage-backed securities:
	U.S. government agencies	57,462		412		(219		)	57,655
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,267,321		445		(35,025		)	1,232,741
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	263,741		1,004		(4,523		)	260,222
	Corporate debt securities	89,275		695		—			89,970
	Total securities held-to-maturity	$	2,787,513	$	17,579	$	(44,972	)	$	2,760,120

		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

		June 30, 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	$	233,228	$	8,600	$	(1,023	)	$	240,805
	Residential mortgage-backed securities:
	U.S. government agencies	998,698		24,965		(5,489		)	1,018,174
	Commercial mortgage-backed securities:
	U.S. government agencies	86,870		351		(1,523		)	85,698
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,627,871		5,009		(34,849		)	1,598,031
	Non-agency	8		—		—			8
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	182,151		1,008		(1,126		)	182,033
	Asset-backed securities:
	Collateralized loan obligations	297,334		883		(4,252		)	293,965
	Corporate debt securities	61,624		—		(8,134		)	53,490
	Total debt securities	3,487,784		40,816		(56,396		)	3,472,204
Equity Securities
	Marketable equity securities	2,935		—		—			2,935
	Non-marketable equity securities	3,281		—		—			3,281
	Total equity securities	6,216		—		—			6,216
	Total securities available-for-sale	$	3,494,000	$	40,816	$	(56,396	)	$	3,478,420
Securities held-to-maturity
Debt securities
	U.S. treasury notes & bonds	$	5,000	$	5	$	—		$	5,005
	U.S. government agency debentures	25,000		—		(707		)	24,293
	U.S states and political subdivisions	549,850		10,072		(1,253		)	558,669
	Residential mortgage-backed securities:
	U.S. government agencies	624,605		6,825		(4,933		)	626,497
	Commercial mortgage-backed securities:
	U.S. government agencies	56,020		176		(445		)	55,751
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	1,450,479		114		(54,263		)	1,396,330
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	248,974		641		(7,252		)	242,363
	Corporate debt securities	92,190		768		—			92,958
	Total securities held-to-maturity	$	3,052,118	$	18,601	$	(68,853	)	$	3,001,866

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)	June 30, 2015
U.S. State	# of Issuers	Average Issue Size, Fair Value		Amortized Cost		Fair Value
Ohio	127	$	964	$	121,716	$	122,474
Michigan	153	1,018		152,499		155,712
Illinois	60	1,784		105,581		107,033
Wisconsin	70	585		39,774		40,950
Texas	67	759		50,370		50,877
Pennsylvania	46	1,014		46,547		46,666
Minnesota	34	692		23,267		23,540
Washington	30	939		27,783		28,169
New Jersey	34	720		23,916		24,472
Missouri	15	1,084		15,981		16,265
New York	18	633		11,187		11,392
Other	119	639		75,670		76,040
Total general obligation bonds	773	$	910	$	694,291	$	703,590

(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)	June 30, 2014
U.S. State	# of Issuers	Average Issue Size, Fair Value		Amortized Cost		Fair Value
Ohio	152	$	1,065	$	158,773	$	161,809
Illinois	74	1,578		113,501		116,741
Texas	65	794		50,845		51,632
Pennsylvania	49	972		47,870		47,623
Wisconsin	87	864		72,616		75,155
Minnesota	42	678		27,864		28,468
New Jersey	37	751		26,815		27,805
Michigan	174	862		146,565		150,052
Washington	30	955		28,191		28,660
Missouri	19	1,022		18,855		19,413
New York	21	612		12,627		12,860
Other	123	640		78,100		78,724
Total general obligation bonds	873	$	915	$	782,622	$	798,942

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 June 30, 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)	June 30, 2015		December 31, 2014		June 30, 2014
FRB stock	$	55,853	$	55,681	$	55,435
FHLB stock	91,713		92,547		92,547
Other	401		426		451
Total other investments	$	147,967	$	148,654	$	148,433

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 $3.2 billion, $2.8 billion, and $3.2 billion at June 30, 2015, December 31, 2014, and June 30, 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 June 30,					Six Months Ended June 30,
(In thousands)	2015			2014		2015			2014
Realized gains	$	672		$	80	$	1,064		$	300
Realized losses	(105		)	—		(143		)	(164		)
Net securities (losses)/gains	$	567		$	80	$	921		$	136

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.

		June 30, 2015
		Less than 12 months						12 months or longer						Total
(Dollars 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	$	32,237	$	(587	)	52	$	5,642	$	(436	)	9	$	37,879	$	(1,023	)
	Residential mortgage-backed securities:
	U.S. government agencies	196,219		(2,087		)	15	103,498		(2,476		)	8	299,717		(4,563		)
	Commercial mortgage-backed securities:
	U.S. government agencies	96,573		(1,457		)	14	17,335		(690		)	2	113,908		(2,147		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	596,646		(4,398		)	42	706,376		(19,910		)	53	1,303,022		(24,308		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	46,771		(71		)	5	61,120		(634		)	7	107,891		(705		)
	Asset-backed securities:
	Collateralized loan obligations	84,565		(1,204		)	10	86,082		(1,259		)	11	170,647		(2,463		)
	Corporate debt securities	4,225		(765		)	1	49,225		(7,466		)	7	53,450		(8,231		)
	Total securities available-for-sale	$	1,057,236	$	(10,569	)	139	$	1,029,278	$	(32,871	)	97	$	2,086,514	$	(43,440	)
Securities held-to-maturity
Debt securities
	U.S. government agency debentures	$	—	$	—		—	$	24,677	$	(323	)	1	$	24,677	$	(323	)
	U.S. states and political subdivisions	98,867		(1,872		)	112	4,430		(70		)	6	103,297		(1,942		)
	Residential mortgage-backed securities:
	U.S. government agencies	83,112		(483		)	5	105,289		(2,457		)	6	188,401		(2,940		)
	Commercial mortgage-backed securities:
	U.S. government agencies	7,263		(41		)	1	9,430		(178		)	1	16,693		(219		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	111,360		(835		)	8	1,042,351		(34,190		)	56	1,153,711		(35,025		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	5,025		(2		)	1	142,937		(4,521		)	13	147,962		(4,523		)
	Total securities held-to-maturity	$	305,627	$	(3,233	)	127	$	1,329,114	$	(41,739	)	83	$	1,634,741	$	(44,972	)

		December 31, 2014
		Less than 12 months						12 months or longer						Total
(Dollars 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	)

		June 30, 2014
		Less than 12 months						12 months or longer						Total
(Dollars 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	$	10,988	$	(16	)	14	$	30,271	$	(1,007	)	50	$	41,259	$	(1,023	)
	Residential mortgage-backed securities:
	U.S. government agencies	11,636		(3		)	1	259,470		(5,486		)	19	271,106		(5,489		)
	Commercial mortgage-backed securities:
	U.S. government agencies	5,105		(4		)	1	45,739		(1,519		)	6	50,844		(1,523		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	279,311		(2,358		)	19	904,821		(32,491		)	60	1,184,132		(34,849		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	24,431		(97		)	1	43,212		(1,029		)	6	67,643		(1,126		)
	Asset-backed securities:
	Collateralized loan obligations	141,506		(2,568		)	19	81,749		(1,684		)	12	223,255		(4,252		)
	Corporate debt securities	—		—			—	53,490		(8,134		)	8	53,490		(8,134		)
	Total securities available-for-sale	$	472,977	$	(5,046	)	55	$	1,418,752	$	(51,350	)	161	$	1,891,729	$	(56,396	)
Securities held-to-maturity
Debt securities
	U.S. government agency debentures	$	—	$	—		—	$	24,293	$	(707	)	1	$	24,293	$	(707	)
	U.S. states and political subdivisions	59,958		(334		)	56	66,557		(919		)	90	126,515		(1,253		)
	Residential mortgage-backed securities:
	U.S. government agencies	—		—			—	206,911		(4,933		)	11	206,911		(4,933		)
	Commercial mortgage-backed securities:
	U.S. government agencies	—		—			—	23,977		(445		)	3	23,977		(445		)
	Residential collateralized mortgage-backed securities:
	U.S. government agencies	127,284		(1,100		)	8	1,241,883		(53,163		)	60	1,369,167		(54,263		)
	Commercial collateralized mortgage-backed securities:
	U.S. government agencies	—		—			—	183,957		(7,252		)	17	183,957		(7,252		)
	Corporate debt securities	—		—			—	—		—			—	—		—
	Total securities held-to-maturity	$	187,242	$	(1,434	)	64	$	1,747,578	$	(67,419	)	182	$	1,934,820	$	(68,853	)

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 loss position of $40.1 million at June 30, 2015, compared to a net unrealized loss position of $44.9 million at December 31, 2014 and a net unrealized loss position of $65.8 million at June 30, 2014. Gross unrealized losses were $88.4 million as of June 30, 2015, compared to $102.4 million at December 31, 2014, and $125.2 million at June 30, 2014. As of June 30, 2015, gross unrealized losses are concentrated within agency MBS, CLOs, and corporate debt securities. While the tightening of CLO spreads over the course of the second quarter have benefited the CLOs' valuations, the move to higher interest rates and a steeper yield curve have resulted in a net unrealized loss position for the portfolio as a whole. Corporate debt securities are composed of eight, single issuer, trust preferred securities with stated maturities. Such investments are only 1% of the fair value of the available-for-sale 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 June 30, 2015 and has recognized the total amount of the impairment in OCI, net of tax.

The Corporation also holds $258.1 million of CLOs with a gross unrealized loss position of $2.5 million as of June 30, 2015. The new Volcker Rule, 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 covered funds prohibited by the Volcker Rule regulations and, therefore, expects to be able to hold these investments until their stated maturities.

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 June 30, 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.