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Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2015
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, 2015, 2014 and 2013, are as follows:
 
Pension Benefits
 
Postretirement Benefits
(In thousands)
2015
 
2014
 
2013
 
2015
 
2014
 
2013
Net periodic cost consists of:
 
 
 
 
 
 
 
 
 
 
 
Service cost
$
830

 
$
728

 
$
2,339

 
$
165

 
$
65

 
$
99

Interest cost
14,069

 
14,337

 
12,814

 
575

 
655

 
563

Expected return on plan assets
(15,607
)
 
(16,035
)
 
(14,938
)
 
—

 
—

 
—

Amortization of prior service cost/(credit)
2,279

 
2,599

 
467

 
(639
)
 
(468
)
 
(468
)
Amortization of actuarial (gains)/losses
4,227

 
2,930

 
4,693

 
325

 
236

 
268

Settlement / curtailment income
—

 
—

 
(524
)
 
—

 
—

 
—

Net periodic cost (benefit)
5,798

 
4,559

 
4,851

 
426

 
488

 
462

Other changes in plan assets and benefit obligations recognized in Other comprehensive income:
 
 
 
 
 
 
 
 
 
 
 
Current year actuarial losses/(gains)
7,987

 
49,488

 
(47,257
)
 
(8,103
)
 
64

 
(682
)
Amortization of actuarial gains/(losses)
(4,227
)
 
(2,930
)
 
(4,169
)
 
(325
)
 
(236
)
 
(268
)
Amortization of prior service (cost)/credit
(2,279
)
 
(2,599
)
 
(467
)
 
639

 
468

 
468

Total recognized in AOCI, before income taxes
1,481

 
43,959

 
(51,893
)
 
(7,789
)
 
296

 
(482
)
Total recognized in net periodic cost and AOCI
$
7,279

 
$
48,518

 
$
(47,042
)
 
$
(7,363
)
 
$
784

 
$
(20
)
 
 
 
 
 
 
 
 
 
 
 
 
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, 2015, and 2014, as well as the change in plan assets for the Corporation’s qualified pension plans:
 
Pension Benefits
 
Postretirement Benefits
(In thousands)
2015
 
2014
 
2015
 
2014
Accumulated benefit obligation, end of year
$
339,661

 
$
354,402

 
 
 
 
Change in projected benefit obligation:
 
 
 
 
 
 
 
Projected benefit obligation, beginning of year
355,642

 
308,834

 
$
15,164

 
$
15,544

  Service cost
830

 
728

 
165

 
65

  Interest cost
14,069

 
14,337

 
575

 
655

  Plan amendments
—

 
—

 
(7,657
)
 
(1,979
)
  Participant contributions
—

 
—

 
1,805

 
1,851

  Actuarial (gains)/losses and change in assumptions
(10,469
)
 
50,115

 
(446
)
 
2,046

  Benefits paid
(19,252
)
 
(18,372
)
 
(2,765
)
 
(3,018
)
Projected benefit obligation, end of year
$
340,820

 
$
355,642

 
$
6,841

 
$
15,164

Change in plan assets, at fair value:
 
 
 
 
 
 
 
Fair value of plan assets, beginning of year
$
257,355

 
$
257,510

 
$
—

 
$
—

  Actual return on plan assets
(2,849
)
 
16,663

 
—

 
—

  Participant contributions
—

 
—

 
1,805

 
1,851

  Employer contributions
1,527

 
1,554

 
960

 
1,167

  Benefits paid
(19,252
)
 
(18,372
)
 
(2,765
)
 
(3,018
)
Fair value of plan assets, end of year
$
236,781

 
$
257,355

 
$
—

 
$
—

Funded status (1)
(104,039
)
 
(98,287
)
 
(6,841
)
 
(15,164
)
Amounts recognized in AOCI before income taxes:
 
 
 
 
 
 
 
Prior service cost (credit)
$
308

 
$
2,587

 
$
(12,389
)
 
$
(5,370
)
Net actuarial loss
103,477

 
99,715

 
4,364

 
5,138

Amount recognized in AOCI
$
103,785

 
$
102,302

 
$
(8,025
)
 
$
(232
)
 
 
 
 
 
 
 
 
(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
2015
 
2014
 
2013
Discount rate
 
 
 
 
 
Qualified pensions
4.57
%
 
4.19
%
 
4.99
%
   Nonqualified pensions
3.99
%
 
3.61
%
 
4.12
%
   Postretirement medical benefits, FirstMerit’s plan
1.76
%
 
3.50
%
 
4.01
%
   Postretirement medical benefits, Citizens’ plan
1.77
%
 
3.61
%
 
3.98
%
   Postretirement life insurance benefits
4.79
%
 
4.36
%
 
5.08
%
Expected long-term rate of return
6.00
%
 
6.50
%
 
6.75
%
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) (2)
 
 
 
 
 
   Initial trend
na

 
7.00
%
 
7.50
%
   Ultimate trend
na

 
5.00
%
 
5.00
%
   Year ultimate trend reached
na

 
2019

 
2019

Assumed health care cost trend rate, post-65 (1) (2)
 
 
 
 
 
   Initial trend
na

 
11.00
%
 
11.50
%
   Ultimate trend
na

 
5.00
%
 
5.00
%
   Year ultimate trend reached
na

 
2027

 
2027

Prescription Drugs (2)
 
 
 
 
 
   Initial trend
na

 
7.00
%
 
7.50
%
   Ultimate trend
na

 
5.00
%
 
5.00
%
   Year ultimate trend reached
na

 
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.
(2) Employer-provided subsidies under the postretirement medical plan will be discontinued after 2018. As a result, a three-year sunset of this subsidized coverage is reflected in the December 31, 2015 disclosures. Since employer subsidies are not expected to change from current levels, health care trend rates no longer have any impact on the accounting liabilities.
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
2015
 
2014
 
2013
Discount rate
 
 
 
 
 
Qualified pension
4.19
%
 
4.99
%
 
4.21
%
   Nonqualified pensions
3.61
%
 
4.12
%
 
4.21
%
   Postretirement medical benefits
3.50
%
 
4.01
%
 
3.18
%
   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 pension
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
11.50
%
 
11.50
%
 
12.00
%
   Ultimate trend
5.00
%
 
5.00
%
 
5.00
%
   Year ultimate trend reached
2027

 
2027

 
2027

Prescription Drugs
 
 
 
 
 
   Initial trend
7.50
%
 
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
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)
$
300

 
$
(2,542
)
 
$
(2,242
)
Actuarial net loss
3,321

 
981

 
4,302

 
 
 
 
 
 
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)
 
 
 
For the year ended December 31,
Pension
 
Postretirement
2016
$
31,328

 
$
982

2017
25,366

 
903

2018
24,653

 
843

2019
21,567

 
225

2020
19,463

 
228

2021 through 2025
95,975

 
1,210

 
 
 
 
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, 2015 and 2014, by asset category, are as follows:
 
 
Percentage of
Plan Assets on
Measurement Date
 
 
December 31,
Asset Category
 
2015
 
2014
Cash and domestic money market funds
 
1.95
%
 
1.49
%
U.S. Treasury obligations
 
2.40
%
 
1.97
%
U.S. Government agencies
 
1.08
%
 
1.12
%
Corporate bonds
 
2.74
%
 
2.79
%
Common stocks
 
14.30
%
 
13.54
%
Equity mutual funds
 
17.61
%
 
18.85
%
Fixed income mutual funds
 
49.62
%
 
50.11
%
Foreign mutual funds
 
10.30
%
 
10.13
%
 
 
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, 2015:
(In thousands)
Level 1
 
Level 2
 
Level 3
 
Total
Domestic money market funds
$
4,620

 
$
—

 
$
—

 
$
4,620

United States government securities
—

 
5,675

 
—

 
5,675

United States government agency issues
—

 
2,588

 
—

 
2,588

Corporate bonds
—

 
6,479

 
—

 
6,479

Common stocks
33,851

 
—

 
—

 
33,851

Equity mutual funds
41,706

 
—

 
—

 
41,706

Fixed income mutual funds
117,485

 
—

 
—

 
117,485

Foreign mutual funds
24,377

 
—

 
—

 
24,377

Total assets at fair value
$
222,039

 
$
14,742

 
$
—

 
$
236,781