10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

WASHINGTON, D. C. 20549

FORM 10-Q

(Mark One)

ý QUARTERLY REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the quarterly period ended June 30, 2017, or

¨ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934

For the transition period fromto

Commission File No. 0-10587

FULTON FINANCIAL CORPORATION

(Exact name of registrant as specified in its charter)

PENNSYLVANIA	23-2195389
(State or other jurisdiction of incorporation or organization)	(I.R.S. Employer Identification No.)
One Penn Square, P.O. Box 4887, Lancaster, Pennsylvania	17604
(Address of principal executive offices)	(Zip Code)

(717) 291-2411

(Registrant’s telephone number, including area code)

Indicate by checkmark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ý    No  ¨

Indicate by checkmark whether the registrant has submitted electronically and posted on its corporate Web site, if any, every Interactive Data File required to be submitted and posted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit and post such files).    Yes  ý    No  ¨

Indicate by checkmark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, or a smaller reporting company. See the definitions of "large accelerated filer," "accelerated filer" and "smaller reporting company" in Rule 12b-2 of the Exchange Act.

Large accelerated filer	ý	Accelerated filer	¨
Non-accelerated filer	¨	Smaller reporting company	¨
		Emerging growth company	¨
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act.			¨

Indicate by checkmark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ¨    No  ý

APPLICABLE ONLY TO CORPORATE ISSUERS: Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date:

Common Stock, $2.50 Par Value –174,941,000 shares outstanding as of July 28, 2017.

1

FULTON FINANCIAL CORPORATION

FORM 10-Q FOR THE THREE AND SIX MONTHS ENDED JUNE 30, 2017

INDEX

Description		Page
PART I. FINANCIAL INFORMATION
Item 1. Financial Statements (Unaudited):
(a)	Consolidated Balance Sheets - June 30, 2017 and December 31, 2016	3
(b)	Consolidated Statements of Income - Three and six months ended June 30, 2017 and 2016	4
(c)	Consolidated Statements of Comprehensive Income - Three and six months ended June 30, 2017 and 2016	5
(d)	Consolidated Statements of Shareholders’ Equity - Six months ended June 30, 2017 and 2016	6
(e)	Consolidated Statements of Cash Flows - Six months ended June 30, 2017 and 2016	7
(f)	Notes to Consolidated Financial Statements	8
Item 2. Management's Discussion and Analysis of Financial Condition and Results of Operations		41
Item 3. Quantitative and Qualitative Disclosures about Market Risk		66
Item 4. Controls and Procedures		70
PART II. OTHER INFORMATION
Item 1. Legal Proceedings		71
Item 1A. Risk Factors		71
Item 2. Unregistered Sales of Equity Securities and Use of Proceeds		71
Item 3. Defaults Upon Senior Securities - (not applicable)
Item 4. Mine Safety Disclosures - (not applicable)
Item 5. Other Information - (none to be reported)
Item 6. Exhibits		71
Signatures		72
Exhibit Index		73

2

Item 1. Financial Statements

CONSOLIDATED BALANCE SHEETS

(in thousands, except per-share data)

	June 30, 2017			December 31, 2016
	(unaudited)
ASSETS
Cash and due from banks	$	94,938		$	118,763
Interest-bearing deposits with other banks	322,514			233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328			57,489
Loans held for sale	62,354			28,697
Available for sale investment securities	2,488,699			2,559,227
Loans, net of unearned income	15,346,617			14,699,272
Less: Allowance for loan losses	(172,342		)	(168,679		)
Net Loans	15,174,275			14,530,593
Premises and equipment	217,558			217,806
Accrued interest receivable	47,603			46,294
Goodwill and intangible assets	531,556			531,556
Other assets	637,610			620,059
Total Assets	$	19,647,435		$	18,944,247
LIABILITIES
Deposits:
Noninterest-bearing	$	4,574,619		$	4,376,137
Interest-bearing	10,782,742			10,636,727
Total Deposits	15,357,361			15,012,864
Short-term borrowings:
Federal funds purchased	206,269			278,570
Other short-term borrowings	488,590			262,747
Total Short-Term Borrowings	694,859			541,317
Accrued interest payable	7,804			9,632
Other liabilities	357,680			329,916
Federal Home Loan Bank advances and other long-term debt	1,037,961			929,403
Total Liabilities	17,455,665			16,823,132
SHAREHOLDERS’ EQUITY
Common stock, $2.50 par value, 600 million shares authorized, 220.8 million shares issued in 2017 and 219.9 million shares issued in 2016	551,936			549,707
Additional paid-in capital	1,473,549			1,467,602
Retained earnings	782,541			732,099
Accumulated other comprehensive loss	(24,875		)	(38,449		)
Treasury stock, at cost, 45.9 million shares in 2017 and 45.8 million shares in 2016	(591,381		)	(589,844		)
Total Shareholders’ Equity	2,191,770			2,121,115
Total Liabilities and Shareholders’ Equity	$	19,647,435		$	18,944,247
See Notes to Consolidated Financial Statements

3

CONSOLIDATED STATEMENTS OF INCOME (UNAUDITED)

(in thousands, except per-share data)	Three months ended June 30				Six months ended June 30
	2017		2016		2017		2016
INTEREST INCOME
Loans, including fees	$	148,440	$	134,643	$	291,006	$	268,722
Investment securities:
Taxable	11,474		11,159		23,388		23,162
Tax-exempt	2,856		2,320		5,705		4,360
Dividends	109		135		238		295
Loans held for sale	201		188		388		319
Other interest income	801		864		1,643		1,762
Total Interest Income	163,881		149,309		322,368		298,620
INTEREST EXPENSE
Deposits	12,884		10,887		24,685		21,614
Short-term borrowings	974		217		1,829		485
Federal Home Loan Bank advances and other long-term debt	8,460		9,289		16,712		18,551
Total Interest Expense	22,318		20,393		43,226		40,650
Net Interest Income	141,563		128,916		279,142		257,970
Provision for credit losses	6,700		2,511		11,500		4,041
Net Interest Income After Provision for Credit Losses	134,863		126,405		267,642		253,929
NON-INTEREST INCOME
Other service charges and fees	14,342		12,983		26,779		23,733
Service charges on deposit accounts	12,914		12,896		25,314		25,454
Investment management and trust services	12,132		11,247		23,940		22,235
Mortgage banking income	6,141		3,897		10,737		7,927
Investment securities gains, net	1,436		76		2,542		1,023
Other	5,406		5,038		9,732		8,902
Total Non-Interest Income	52,371		46,137		99,044		89,274
NON-INTEREST EXPENSE
Salaries and employee benefits	74,496		70,029		143,732		139,401
Net occupancy expense	12,316		11,811		24,979		24,031
Other outside services	7,708		5,508		13,254		11,564
Data processing	4,619		5,476		8,905		10,876
Software	4,435		3,953		9,128		7,874
Amortization of tax credit investments	3,151		—		4,149		—
Equipment expense	3,034		2,872		6,393		6,243
Professional fees	2,931		3,353		5,668		5,686
FDIC insurance expense	2,366		2,960		4,424		5,909
Marketing	2,234		1,916		4,220		3,540
Other	15,405		13,759		30,118		26,926
Total Non-Interest Expense	132,695		121,637		254,970		242,050
Income Before Income Taxes	54,539		50,905		111,716		101,153
Income taxes	9,072		11,155		22,869		23,146
Net Income	$	45,467	$	39,750	$	88,847	$	78,007
PER SHARE:
Net Income (Basic)	$	0.26	$	0.23	$	0.51	$	0.45
Net Income (Diluted)	0.26		0.23		0.51		0.45
Cash Dividends	0.11		0.10		0.22		0.19
See Notes to Consolidated Financial Statements

4

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (UNAUDITED)

(in thousands)

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
Net Income	$	45,467		$	39,750		$	88,847		$	78,007
Other Comprehensive Income, net of tax:
Unrealized gain on securities	10,268			12,839			14,541			29,865
Reclassification adjustment for securities gains included in net income	(932		)	(49		)	(1,651		)	(665		)
Amortization of unrealized loss on derivative financial instruments	—			4			—			8
Amortization of net unrecognized pension and postretirement items	341			32			684			498
Other Comprehensive Income	9,677			12,826			13,574			29,706
Total Comprehensive Income	$	55,144		$	52,576		$	102,421		$	107,713
See Notes to Consolidated Financial Statements

5

CONSOLIDATED STATEMENTS OF SHAREHOLDERS’ EQUITY (UNAUDITED)

SIX MONTHS ENDED JUNE 30, 2017 AND 2016

(in thousands, except per-share data)

	Common Stock						Retained Earnings						Treasury Stock			Total
	Shares Outstanding		Amount		Additional Paid-in Capital					Accumulated Other Comprehensive Income (Loss)
Balance at December 31, 2016	174,040		$	549,707	$	1,467,602	$	732,099		$	(38,449	)	$	(589,844	)	$	2,121,115
Net income							88,847									88,847
Other comprehensive income										13,574						13,574
Stock issued	877		2,229		4,178								(1,537		)	4,870
Stock-based compensation awards					1,769											1,769
Common stock cash dividends - $0.22 per share							(38,405		)							(38,405		)
Balance at June 30, 2017	174,917		$	551,936	$	1,473,549	$	782,541		$	(24,875	)	$	(591,381	)	$	2,191,770
Balance at December 31, 2015	174,176		$	547,141	$	1,450,690	$	641,588		$	(22,017	)	$	(575,508	)	$	2,041,894
Net income							78,007									78,007
Other comprehensive loss										29,706						29,706
Stock issued, including related tax benefits	273		389		1,405								1,554			3,348
Stock-based compensation awards					3,256											3,256
Acquisition of treasury stock	(1,310	)											(16,254		)	(16,254		)
Common stock cash dividends - $0.19 per share							(32,960		)							(32,960		)
Balance at June 30, 2016	173,139		$	547,530	$	1,455,351	$	686,635		$	7,689		$	(590,208	)	$	2,106,997
See Notes to Consolidated Financial Statements

6

CONSOLIDATED STATEMENTS OF CASH FLOWS (UNAUDITED)

(in thousands)

	Six months ended June 30
	2017			2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$	88,847		$	78,007
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	11,500			4,041
Depreciation and amortization of premises and equipment	13,974			13,804
Net amortization of investment securities premiums	4,775			4,647
Investment securities gains, net	(2,542		)	(1,023		)
Gain on sales of mortgage loans held for sale	(6,562		)	(7,110		)
Proceeds from sales of mortgage loans held for sale	283,251			304,516
Originations of mortgage loans held for sale	(281,356		)	(314,850		)
Amortization of issuance costs on long-term debt	382			193
Stock-based compensation	1,769			3,256
Excess tax benefits from stock-based compensation	—			(28		)
Increase in accrued interest receivable	(1,309		)	(549		)
Increase in other assets	(26,610		)	(18,268		)
Decrease in accrued interest payable	(1,828		)	(2,388		)
(Decrease) increase in other liabilities	(9,327		)	9,866
Total adjustments	(13,883		)	(3,893		)
Net cash provided by operating activities	74,964			74,114
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available for sale	29,518			84,972
Proceeds from principal repayments and maturities of securities available for sale	225,788			282,832
Purchase of securities available for sale	(158,078		)	(355,220		)
Increase in short-term investments	(101,590		)	(115,570		)
Net increase in loans	(655,172		)	(326,902		)
Net purchases of premises and equipment	(13,726		)	(17,130		)
Net cash used in investing activities	(673,260		)	(447,018		)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand and savings deposits	351,329			202,552
Net decrease in time deposits	(6,832		)	(42,305		)
Increase in short-term borrowings	153,542			224,551
Additions to long-term debt	223,251			16,000
Repayments of long-term debt	(115,075		)	(183		)
Net proceeds from issuance of common stock	4,870			3,320
Excess tax benefits from stock-based compensation	—			28
Dividends paid	(36,614		)	(31,278		)
Acquisition of treasury stock	—			(16,254		)
Net cash provided by financing activities	574,471			356,431
Net Decrease in Cash and Due From Banks	(23,825		)	(16,473		)
Cash and Due From Banks at Beginning of Period	118,763			101,120
Cash and Due From Banks at End of Period	$	94,938		$	84,647
Supplemental Disclosures of Cash Flow Information:
Cash paid during the period for:
Interest	$	45,054		$	43,038
Income taxes	7,016			9,087
Supplemental schedule of certain noncash activities:
Transfer of student loans to loans held for sale	$	28,990		$	—
See Notes to Consolidated Financial Statements

7

FULTON FINANCIAL CORPORATION

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED)

NOTE 1 – Basis of Presentation

The accompanying unaudited consolidated financial statements of Fulton Financial Corporation (the "Corporation") have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The Corporation evaluates subsequent events through the date of filing of this Form 10-Q with the Securities and Exchange Commission ("SEC").

Recently Issued Accounting Standards

In May 2014, the FASB issued ASC Update 2014-09, "Revenue from Contracts with Customers." This standards update establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle prescribed by this standards update is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard applies to all contracts with customers, except those that are within the scope of other topics in the FASB ASC. The standard also requires significantly expanded disclosures about revenue recognition. During 2016, the FASB issued amendments to this standard (ASC Updates 2016-08, 2016-10, 2016-11 and 2016-12). These amendments provide further clarification to the standard. For public business entities, ASC Update 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is not permitted. For the Corporation, this standards update is effective with its March 31, 2018 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2014-09 on its consolidated financial statements.

In January 2016, the FASB issued ASC Update 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." ASC Update 2016-01 provides guidance regarding the income statement impact of equity investments held by an entity and the recognition of changes in fair value of financial liabilities when the fair value option is elected. This standard will require equity investments to be measured at fair value, with changes recorded in net income. ASC Update 2016-01 is effective for public business entities' annual and interim reporting periods beginning after December 15, 2017, with earlier adoption permitted.The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-01 to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASC Update 2016-02, "Leases." This standards update states that a lessee should recognize the assets and liabilities that arise from all leases with a term greater than 12 months. The core principle requires the lessee to recognize a liability to make lease payments and a "right-of-use" asset. The accounting applied by the lessor is relatively unchanged. The standards update also requires expanded qualitative and quantitative disclosures. For public business entities, ASC Update 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. ASC Update 2016-02 mandates a modified retrospective transition for all entities, which requires restatement of all comparative periods in the year of adoption. Early adoption is permitted. For the Corporation, this standards update is effective with its March 31, 2019 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2016-02 on its consolidated financial statements. The Corporation currently operates a number of branches that are leased, with the leases accounted for as operating leases that are not recognized on the consolidated balance sheet. Under ASC Update 2016-02, right-of-use assets and lease liabilities will need to be recognized on the consolidated balance sheet for these branches. The recognition of operating leases on the consolidated balance sheet is expected to be the most significant impact of the adoption of this standards update.

In June 2016, the FASB issued ASC Update 2016-13, "Financial Instruments - Credit Losses." The new impairment model prescribed by this standards update is a single impairment model for all financial assets (i.e., loans and investments). The recognition of credit losses would be based on an entity’s current estimate of expected losses (referred to as the Current Expected Credit Loss

8

model, or "CECL"), as opposed to recognition of losses only when they are probable under current U.S. GAAP. ASC Update 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2020 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2016-13 on its consolidated financial statements.

In August 2016, the FASB issued ASC Update 2016-15, "Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments." This standards update provides guidance regarding the presentation of certain cash receipts and cash payments in the statement of cash flows, addressing eight specific cash flow classification issues, in order to reduce existing diversity in practice. ASC Update 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-15 to have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASC Update 2016-18, "Statement of Cash Flows - Restricted Cash." This standards update provides guidance regarding the presentation of restricted cash in the statement of cash flows. The updaterequires companies to include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. It also requires an entity to disclose the nature of the restrictions on cash and cash equivalents. ASC Update 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-18 to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASC Update 2017-04, "Intangibles - Goodwill and Other." This standards update eliminates Step 2 of the goodwill impairment test which measures the impairment amount. Identifying and measuring impairment will take place in a single quantitative step. In addition, no separate qualitative assessment for reporting units with zero or negative carrying amount is required. Entities must disclose the existence of these reporting units and the amount of goodwill allocated to them. This update should be applied on a prospective basis, and an entity is required to disclose the nature of and reason for the change in accounting principle upon transition. ASC Update 2017-04 is effective for annual or interim goodwill impairment tests in reporting periods beginning after December 15, 2019. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its 2020 goodwill impairment test and does not expect the adoption of ASC Update 2017-04 to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued ASC Update 2017-07, "Improving the Presentation of Net Periodic Pension Costs and Net Periodic Benefit Cost." This standards update requires a company to present service cost separately from the other components of net benefit cost. In addition, the update provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASC Update 2017-07 is effective for annual or interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and is currently evaluating the impact of the adoption of ASC Update 2017-07 on its consolidated financial statements.

In March 2017, the FASB issued ASC Update 2017-08, "Premium Amortization on Purchased Callable Debt Securities." This standards update requires that a company amortize the premium on callable debt securities to the earliest call date versus current U.S. GAAP which requires amortization over the contractual life of the securities. The amortization period for callable debt securities purchased at a discount would not be impacted by the new accounting standards update. This amendment is to be adopted on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. ASC Update 2017-08 is effective for annual or interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2019 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2017-08 to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASC Update 2017-09, "Scope of Modification Accounting." This standards update provides clarity and reduces both (1) diversity in practice and (2) cost and complexity, when applying the guidance in the stock compensation standard, to a change to the terms or conditions of a share-based payment award. ASC Update 2017-09 is effective for annual or interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2017-09 to have a material impact on its consolidated financial statements.

9

Reclassifications

Certain amounts in the 2016 consolidated financial statements and notes have been reclassified to conform to the 2017 presentation.

NOTE 2 – Net Income Per Share

Basic net income per share is calculated as net income divided by the weighted average number of shares outstanding. Diluted net income per share is calculated as net income divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivalents consist of outstanding stock options, restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). PSUs are required to be included in weighted average shares outstanding if performance measures, as defined in each PSU award agreement, are met as of the end of the period.

A reconciliation of weighted average shares outstanding used to calculate basic net income per share and diluted net income per share follows:

	Three months ended June 30		Six months ended June 30
	2017	2016	2017	2016
	(in thousands)
Weighted average shares outstanding (basic)	174,597	173,394	174,375	173,363
Impact of common stock equivalents	935	924	1,179	1,004
Weighted average shares outstanding (diluted)	175,532	174,318	175,554	174,367

For the three and six months ended June 30, 2016, 802,000 and 844,000 stock options, respectively, were excluded from the diluted net income per share computation as their effect would have been anti-dilutive. There were no stock options excluded for the three and six months ended June 30, 2017.

10

NOTE 3 – Accumulated Other Comprehensive Income

The following table presents changes in other comprehensive income:

	Before-Tax Amount			Tax Effect			Net of Tax Amount
	(in thousands)
Three months ended June 30, 2017
Unrealized gain on securities	$	15,798		$	(5,530	)	$	10,268
Reclassification adjustment for securities gains included in net income (1)	(1,436		)	504			(932		)
Amortization of net unrecognized pension and postretirement items (3)	522			(181		)	341
Total Other Comprehensive Income	$	14,884		$	(5,207	)	$	9,677
Three months ended June 30, 2016
Unrealized gain on securities	$	19,753		$	(6,914	)	$	12,839
Reclassification adjustment for securities gains included in net income (1)	(76		)	27			(49		)
Amortization of unrealized loss on derivative financial instruments(2)	6			(2		)	4
Amortization of net unrecognized pension and postretirement items (3)	49			(17		)	32
Total Other Comprehensive Income	$	19,732		$	(6,906	)	$	12,826
Six months ended June 30, 2017
Unrealized gain on securities	$	22,374		$	(7,833	)	$	14,541
Reclassification adjustment for securities gains included in net income (1)	(2,542		)	891			(1,651		)
Amortization of net unrecognized pension and postretirement items (3)	1,051			(367		)	684
Total Other Comprehensive Income	$	20,883		$	(7,309	)	$	13,574
Six months ended June 30, 2016
Unrealized gain on securities	$	45,946		$	(16,081	)	$	29,865
Reclassification adjustment for securities gains included in net income (1)	(1,023		)	358			(665		)
Amortization of unrealized loss on derivative financial instruments (2)	12			(4		)	8
Amortization of net unrecognized pension and postretirement items (3)	766			(268		)	498
Total Other Comprehensive Income	$	45,701		$	(15,995	)	$	29,706

(1) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Investment securities gains, net" on the consolidated statements of income. See Note 4, "Investment Securities," for additional details.

(2) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Interest expense" on the consolidated statements of income.

(3) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Salaries and employee benefits" on the consolidated statements of income. See Note 8, "Employee Benefit Plans," for additional details.

11

The following table presents changes in each component of accumulated other comprehensive income (loss), net of tax:

	Unrealized Gains (Losses) on Investment Securities Not Other-Than-Temporarily Impaired			Unrealized Non-Credit Gains (Losses) on Other-Than-Temporarily Impaired Debt Securities		Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps			Unrecognized Pension and Postretirement Plan Income (Costs)			Total
	(in thousands)
Three months ended June 30, 2017
Balance at March 31, 2017	$	(19,493	)	$	273	$	—		$	(15,332	)	$	(34,552	)
Other comprehensive income before reclassifications	10,268			—		—			—			10,268
Amounts reclassified from accumulated other comprehensive income (loss)	(932		)	—		—			341			(591		)
Balance at June 30, 2017	$	(10,157	)	$	273	$	—		$	(14,991	)	$	(24,875	)
Three months ended June 30, 2016
Balance at March 31, 2016	$	9,911		$	458	$	(11	)	$	(15,495	)	$	(5,137	)
Other comprehensive income before reclassifications	12,839			—		—			—			12,839
Amounts reclassified from accumulated other comprehensive income (loss)	(49		)	—		4			32			(13		)
Balance at June 30, 2016	$	22,701		$	458	$	(7	)	$	(15,463	)	$	7,689
Six months ended June 30, 2017
Balance at December 31, 2016	$	(23,047	)	$	273	$	—		$	(15,675	)	$	(38,449	)
Other comprehensive income before reclassifications	14,541			—		—			—			14,541
Amounts reclassified from accumulated other comprehensive income (loss)	(1,651		)	—		—			684			(967		)
Balance at June 30, 2017	$	(10,157	)	$	273	$	—		$	(14,991	)	$	(24,875	)
Six months ended June 30, 2016
Balance at December 31, 2015	$	(6,499	)	$	458	$	(15	)	$	(15,961	)	$	(22,017	)
Other comprehensive income before reclassifications	29,865			—		—			—			29,865
Amounts reclassified from accumulated other comprehensive income (loss)	(665		)	—		8			498			(159		)
Balance at June 30, 2016	$	22,701		$	458	$	(7	)	$	(15,463	)	$	7,689

12

NOTE 4 – Investment Securities

The following table presents the amortized cost and estimated fair values of investment securities, which were all classified as available for sale:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
June 30, 2017
U.S. Government sponsored agency securities	$	5,960	$	94	$	—		$	6,054
State and municipal securities	405,035		3,726		(7,125		)	401,636
Corporate debt securities	88,887		2,531		(2,426		)	88,992
Collateralized mortgage obligations	546,847		1,399		(9,739		)	538,507
Residential mortgage-backed securities	1,218,257		5,782		(10,974		)	1,213,065
Commercial mortgage-backed securities	121,012		390		(335		)	121,067
Auction rate securities	107,410		—		(9,487		)	97,923
Total debt securities	2,493,408		13,922		(40,086		)	2,467,244
Equity securities	10,487		10,968		—			21,455
Total	$	2,503,895	$	24,890	$	(40,086	)	$	2,488,699

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
December 31, 2016
U.S. Government sponsored agency securities	$	132	$	2	$	—		$	134
State and municipal securities	405,274		2,043		(15,676		)	391,641
Corporate debt securities	112,016		1,978		(4,585		)	109,409
Collateralized mortgage obligations	604,095		1,943		(12,178		)	593,860
Residential mortgage-backed securities	1,328,192		6,546		(16,900		)	1,317,838
Commercial mortgage-backed securities	25,100		—		(537		)	24,563
Auction rate securities	107,215		—		(9,959		)	97,256
Total debt securities	2,582,024		12,512		(59,835		)	2,534,701
Equity securities	12,231		12,295		—			24,526
Total	$	2,594,255	$	24,807	$	(59,835	)	$	2,559,227

Securities carried at $1.7 billion and $1.8 billion as of June 30, 2017 and December 31, 2016, respectively, were pledged as collateral to secure public and trust deposits and customer repurchase agreements.

Equity securities include common stocks of publicly traded financial institutions (estimated fair value of $20.5 million at June 30, 2017 and $23.5 million at December 31, 2016) and other equity investments (estimated fair value of $1.0 million at both June 30, 2017 and December 31, 2016).

As of June 30, 2017, the financial institutions stock portfolio had a cost basis of $9.7 million and an estimated fair value of $20.5 million, including an investment in a single financial institution with a cost basis of $4.3 million and an estimated fair value of $8.8 million. The estimated fair value of this investment accounted for 42.9% of the estimated fair value of the Corporation's investments in the common stocks of publicly traded financial institutions. No other investment in a single financial institution in the financial institutions stock portfolio exceeded 10% of the portfolio's estimated fair value.

13

The amortized cost and estimated fair values of debt securities as of June 30, 2017, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities as certain investment securities are subject to call or prepayment with or without call or prepayment penalties.

		Amortized Cost		Estimated Fair Value
	(in thousands)
Due in one year or less		$	20,103	$	20,336
Due from one year to five years		27,967		28,335
Due from five years to ten years		111,883		113,050
Due after ten years		447,339		432,884
		607,292		594,605
Residential mortgage-backed securities		1,218,257		1,213,065
Commercial mortgage-backed securities		121,012		121,067
Collateralized mortgage obligations		546,847		538,507
Total debt securities		$	2,493,408	$	2,467,244

The following table presents information related to the gross realized gains and losses on the sales of equity and debt securities:

	Gross Realized Gains		Gross Realized Losses			Net Gains (Losses)
Three months ended June 30, 2017	(in thousands)
Equity securities	$	1,305	$	—		$	1,305
Debt securities	145		(14		)	131
Total	$	1,450	$	(14	)	$	1,436
Three months ended June 30, 2016
Equity securities	$	4	$	(10	)	$	(6	)
Debt securities	108		(26		)	82
Total	$	112	$	(36	)	$	76
Six months ended June 30, 2017
Equity securities	$	2,350	$	—		$	2,350
Debt securities	206		(14		)	192
Total	$	2,556	$	(14	)	$	2,542
Six months ended June 30, 2016
Equity securities	$	737	$	(10	)	$	727
Debt securities	322		(26		)	296
Total	$	1,059	$	(36	)	$	1,023

The cumulative balance of credit related other-than-temporary impairment charges, previously recognized as components of earnings, for debt securities held by the Corporation at June 30, 2017 and June 30, 2016 was $10.0 million. There were no other-than-temporary impairment charges recognized for the three and six months ended June 30, 2017 and June 30, 2016.

14

The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016:

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
June 30, 2017	(in thousands)
State and municipal securities	$	214,497	$	(7,125	)	$	—	$	—		$	214,497	$	(7,125	)
Corporate debt securities	4,020		(9		)	32,148		(2,417		)	36,168		(2,426		)
Collateralized mortgage obligations	144,523		(3,057		)	231,936		(6,682		)	376,459		(9,739		)
Residential mortgage-backed securities	896,206		(10,974		)	—		—			896,206		(10,974		)
Commercial mortgage-backed securities	68,546		(335		)	—		—			68,546		(335		)
Auction rate securities	—		—			97,923		(9,487		)	97,923		(9,487		)
Total debt securities	$	1,327,792	$	(21,500	)	$	362,007	$	(18,586	)	$	1,689,799	$	(40,086	)

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
December 31, 2016	(in thousands)
State and municipal securities	$	247,509	$	(15,676	)	$	—	$	—		$	247,509	$	(15,676	)
Corporate debt securities	11,922		(110		)	34,629		(4,475		)	46,551		(4,585		)
Collateralized mortgage obligations	166,905		(3,899		)	258,237		(8,279		)	425,142		(12,178		)
Residential mortgage-backed securities	1,112,947		(16,900		)	—		—			1,112,947		(16,900		)
Commercial mortgage-backed securities	24,563		(537		)	—		—			24,563		(537		)
Auction rate securities	—		—			97,256		(9,959		)	97,256		(9,959		)
Total debt securities	$	1,563,846	$	(37,122	)	$	390,122	$	(22,713	)	$	1,953,968	$	(59,835	)

The change in fair value of these securities is attributable to changes in interest rates and not credit quality, and the Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. Therefore, the Corporation does not consider these investments to be other-than-temporarily impaired as of June 30, 2017.

As of June 30, 2017, all of the auction rate securities (auction rate certificates, or "ARCs"), were rated above investment grade. All of the loans underlying the ARCs have principal payments which are guaranteed by the federal government. As of June 30, 2017, all ARCs were current and making scheduled interest payments, and based on management’s evaluations, were not subject to any other-than-temporary impairment charges as of June 30, 2017. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

The majority of the Corporation's available for sale corporate debt securities are issued by financial institutions. The following table presents the amortized cost and estimated fair value of corporate debt securities:

	June 30, 2017				December 31, 2016
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
	(in thousands)
Single-issuer trust preferred securities	$	43,795	$	42,478	$	43,746	$	39,829
Subordinated debt	29,069		29,697		46,231		46,723
Senior debt	12,035		12,407		18,037		18,433
Pooled trust preferred securities	—		422		—		422
Corporate debt securities issued by financial institutions	84,899		85,004		108,014		105,407
Other corporate debt securities	3,988		3,988		4,002		4,002
Available for sale corporate debt securities	$	88,887	$	88,992	$	112,016	$	109,409

15

Single-issuer trust preferred securities had an unrealized loss of $1.3 million at June 30, 2017. Six of the 19 single-issuer trust preferred securities, with an amortized cost of $11.6 million and an estimated fair value of $10.9 million at June 30, 2017, were rated below investment grade by at least one ratings agency. All of the single-issuer trust preferred securities rated below investment grade were rated "BB" and "Ba". Two single-issuer trust preferred securities with an amortized cost of $3.8 million and an estimated fair value of $2.8 million at June 30, 2017 were not rated by any ratings agency.

Based on management’s evaluations, no corporate debt securities were subject to any other-than-temporary impairment charges as of June 30, 2017. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

NOTE 5 – Loans and Allowance for Credit Losses

Loans, Net of Unearned Income

Loans, net of unearned income are summarized as follows:

	June 30, 2017			December 31, 2016
	(in thousands)
Real-estate - commercial mortgage	$	6,262,008		$	6,018,582
Commercial - industrial, financial and agricultural	4,245,849			4,087,486
Real-estate - residential mortgage	1,784,712			1,601,994
Real-estate - home equity	1,579,739			1,625,115
Real-estate - construction	938,900			843,649
Consumer	283,156			291,470
Leasing and other	269,787			246,704
Overdrafts	4,435			3,662
Loans, gross of unearned income	15,368,586			14,718,662
Unearned income	(21,969		)	(19,390		)
Loans, net of unearned income	$	15,346,617		$	14,699,272

Allowance for Credit Losses

The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheets. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans evaluated for impairment under FASB ASC Section 310-10-35; and (2) allowances calculated for pools of loans measured for impairment under FASB ASC Subtopic 450-20.

The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. Commercial loans include both secured and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect vehicle loans.

16

The following table presents the components of the allowance for credit losses:

	June 30, 2017		December 31, 2016
	(in thousands)
Allowance for loan losses	$	172,342	$	168,679
Reserve for unfunded lending commitments	2,656		2,646
Allowance for credit losses	$	174,998	$	171,325

The following table presents the activity in the allowance for credit losses:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Balance at beginning of period	$	172,647		$	166,065		$	171,325		$	171,412
Loans charged off	(8,715		)	(10,746		)	(18,122		)	(21,901		)
Recoveries of loans previously charged off	4,366			7,278			10,295			11,556
Net loans charged off	(4,349		)	(3,468		)	(7,827		)	(10,345		)
Provision for credit losses	6,700			2,511			11,500			4,041
Balance at end of period	$	174,998		$	165,108		$	174,998		$	165,108

The Corporation has historically maintained an unallocated allowance for credit losses for factors and conditions that exist at the balance sheet date, but are not specifically identifiable, and to recognize the inherent imprecision in estimating and measuring loss exposure. During the second quarter of 2017, enhancements were made to allow for the impact of these factors and conditions to be quantified in the allowance allocation process. Accordingly, an unallocated allowance for credit losses is no longer necessary.

17

The following table presents the activity in the allowance for loan losses by portfolio segment:

	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing, other and overdrafts			Unallocated			Total
	(in thousands)
Three months ended June 30, 2017
Balance at March 31, 2017	$	47,373		$	55,309		$	23,821		$	22,018		$	7,501		$	3,031		$	3,268		$	7,755		$	170,076
Loans charged off	(242		)	(5,353		)	(592		)	(124		)	(774		)	(430		)	(1,200		)	—			(8,715		)
Recoveries of loans previously charged off	934			1,974			215			151			373			470			249			—			4,366
Net loans charged off	692			(3,379		)	(377		)	27			(401		)	40			(951		)	—			(4,349		)
Provision for loan losses (1)	9,307			15,712			(5,988		)	(5,606		)	2,434			(1,277		)	(212		)	(7,755		)	6,615
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Three months ended June 30, 2016
Balance at March 31, 2016	$	48,311		$	54,333		$	22,524		$	19,928		$	6,282		$	2,324		$	2,974		$	7,165		$	163,841
Loans charged off	(1,474		)	(4,625		)	(1,045		)	(340		)	(742		)	(569		)	(1,951		)	—			(10,746		)
Recoveries of loans previously charged off	1,367			2,931			350			420			1,563			539			108			—			7,278
Net loans charged off	(107		)	(1,694		)	(695		)	80			821			(30		)	(1,843		)	—			(3,468		)
Provision for loan losses (1)	(4,464		)	(884		)	4,341			1,218			(1,331		)	690			1,387			1,216			2,173
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546
Six months ended June 30, 2017
Balance at December 31, 2016	$	46,842		$	54,353		$	26,801		$	22,929		$	6,455		$	3,574		$	3,192		$	4,533		$	168,679
Loans charged off	(1,466		)	(10,880		)	(1,290		)	(340		)	(1,021		)	(1,286		)	(1,839		)	—			(18,122		)
Recoveries of loans previously charged off	1,384			6,165			352			381			921			706			386			—			10,295
Net loans charged off	(82		)	(4,715		)	(938		)	41			(100		)	(580		)	(1,453		)	—			(7,827		)
Provision for loan losses (1)	10,612			18,004			(8,407		)	(6,531		)	3,179			(1,200		)	366			(4,533		)	11,490
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Six months ended June 30, 2016
Balance at December 31, 2015	$	47,866		$	57,098		$	22,405		$	21,375		$	6,529		$	2,585		$	2,468		$	8,728		$	169,054
Loans charged off	(2,056		)	(10,813		)	(2,586		)	(1,408		)	(1,068		)	(1,576		)	(2,394		)	—			(21,901		)
Recoveries of loans previously charged off	2,192			5,250			688			556			1,946			735			189			—			11,556
Net loans charged off	136			(5,563		)	(1,898		)	(852		)	878			(841		)	(2,205		)	—			(10,345		)
Provision for loan losses (1)	(4,262		)	220			5,663			703			(1,635		)	1,240			2,255			(347		)	3,837
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546

(1) The provision for loan losses excluded an $85,000 and a $10,000 increase, respectively, in the reserve for unfunded lending commitments for the three and six months ended June 30, 2017 and a $338,000 and $204,000 increase, respectively, in the reserve for unfunded lending commitments for the three and    six months ended June 30, 2016.

18

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:

	Real Estate - Commercial Mortgage		Commercial - Industrial, Financial and Agricultural		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Leasing, other and overdrafts		Unallocated		Total
	(in thousands)
Allowance for loan losses at June 30, 2017:
Measured for impairment under FASB ASC Subtopic 450-20	$	49,055	$	57,341	$	7,607	$	6,013	$	5,370	$	1,773	$	2,105	$	—	$	129,264
Evaluated for impairment under FASB ASC Section 310-10-35	8,317		10,301		9,849		10,426		4,164		21		—		N/A		43,078
	$	57,372	$	67,642	$	17,456	$	16,439	$	9,534	$	1,794	$	2,105	$	—	$	172,342
Loans, net of unearned income at June 30, 2017:
Measured for impairment under FASB ASC Subtopic 450-20	$	6,212,998	$	4,189,676	$	1,557,989	$	1,741,404	$	921,839	$	283,123	$	252,253	N/A		$	15,159,282
Evaluated for impairment under FASB ASC Section 310-10-35	49,010		56,173		21,750		43,308		17,061		33		—		N/A		187,335
	$	6,262,008	$	4,245,849	$	1,579,739	$	1,784,712	$	938,900	$	283,156	$	252,253	N/A		$	15,346,617
Allowance for loan losses at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	32,861	$	40,945	$	17,089	$	9,044	$	4,004	$	2,971	$	2,518	$	8,381	$	117,813
Evaluated for impairment under FASB ASC Section 310-10-35	10,879		10,810		9,081		12,182		1,768		13		—		N/A		44,733
	$	43,740	$	51,755	$	26,170	$	21,226	$	5,772	$	2,984	$	2,518	$	8,381	$	162,546
Loans, net of unearned income at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,582,027	$	4,057,883	$	1,629,443	$	1,399,399	$	841,193	$	278,053	$	194,254	N/A		$	13,982,252
Evaluated for impairment under FASB ASC Section 310-10-35	53,320		41,294		17,876		47,893		12,506		18		—		N/A		172,907
	$	5,635,347	$	4,099,177	$	1,647,319	$	1,447,292	$	853,699	$	278,071	$	194,254	N/A		$	14,155,159

N/A - Not applicable.

Impaired Loans

A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings ("TDRs"). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total outstanding commitments greater than or equal to $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total outstanding commitments less than $1.0 million are pooled and measured for impairment collectively.

All loans individually evaluated for impairment under FASB ASC Section 310-10-35 are measured for losses on a quarterly basis. As of June 30, 2017 and December 31, 2016, substantially all of the Corporation’s individually evaluated impaired loans with total outstanding balances greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real property.

As of June 30, 2017 and 2016, approximately 87% and 89%, respectively, of impaired loans with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value of the collateral using state certified third-party appraisals that had been updated in the preceding 12 months.

When updated appraisals are not obtained for loans evaluated for impairment under FASB ASC Section 310-10-35 that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and, in the opinion of the Corporation's internal credit administration staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans, generally less than 70%.

19

The following table presents total impaired loans by class segment:

	June 30, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	25,219	$	22,396	$	—	$	28,757	$	25,447	$	—
Commercial - secured	43,206		36,036		—		29,296		25,526		—
Real estate - residential mortgage	4,629		4,629		—		4,689		4,689		—
Construction - commercial residential	10,054		8,044		—		6,271		4,795		—
Construction - commercial	598		590		—		—		—		—
	83,706		71,695				69,013		60,457
With a related allowance recorded:
Real estate - commercial mortgage	34,131		26,614		8,317		37,132		29,446		10,162
Commercial - secured	23,576		19,479		9,947		27,767		22,626		13,198
Commercial - unsecured	912		658		354		1,122		823		455
Real estate - home equity	25,753		21,750		9,849		23,971		19,205		9,511
Real estate - residential mortgage	45,300		38,679		10,426		48,885		41,359		11,897
Construction - commercial residential	10,479		7,210		3,725		10,103		4,206		1,300
Construction - commercial	186		126		45		681		435		145
Construction - other	1,096		1,091		394		1,096		1,096		423
Consumer - direct	18		18		12		21		21		14
Consumer - indirect	16		15		9		19		19		12
	141,467		115,640		43,078		150,797		119,236		47,117
Total	$	225,173	$	187,335	$	43,078	$	219,810	$	179,693	$	47,117

As of June 30, 2017 and December 31, 2016, there were $71.7 million and $60.5 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or they were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

20

The following table presents average impaired loans by class segment:

	Three months ended June 30								Six months ended June 30
	2017				2016				2017				2016
	Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	22,316	$	71	$	22,762	$	72	$	23,360	$	141	$	22,707	141
Commercial - secured	30,829		46		15,182		20		29,061		82		14,688		36
Real estate - residential mortgage	4,643		26		6,191		33		4,658		52		5,724		63
Construction - commercial residential	6,368		4		6,421		16		5,844		6		7,236		35
Construction - commercial	597		—		—		—		398		—		—		—
	64,753		147		50,556		141		63,321		281		50,355		275
With a related allowance recorded:
Real estate - commercial mortgage	27,710		88		33,042		104		28,288		173		33,927		212
Commercial - secured	20,675		31		25,919		33		21,325		63		28,489		71
Commercial - unsecured	712		—		929		1		749		—		893		2
Real estate - home equity	20,352		117		17,950		70		19,969		212		17,222		127
Real estate - residential mortgage	39,500		225		41,928		226		40,119		455		43,164		461
Construction - commercial residential	7,248		4		5,566		14		6,234		7		5,807		29
Construction - commercial	104		—		548		—		214		—		578		—
Construction - other	1,094		—		513		—		1,094		—		406		—
Consumer - direct	19		—		10		—		19		—		16		—
Consumer - indirect	17		—		15		—		17		—		11		—
Leasing, other and overdrafts	—		—		711		—		475		—		949		—
	117,431		465		127,131		448		118,503		910		131,462		902
Total	$	182,184	$	612	$	177,687	$	589	$	181,824	$	1,191	$	181,817	1,177

(1) All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three and six months ended June 30, 2017 and 2016 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets

The following is a summary of the Corporation's internal risk rating categories:

• Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.

• Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.

• Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

21

The following table presents internal credit risk ratings for the indicated loan class segments:

	Pass						Special Mention						Substandard or Lower						Total
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - commercial mortgage	$	6,004,958		$	5,763,122		$	119,534		$	132,484		$	137,516		$	122,976		$	6,262,008		$	6,018,582
Commercial - secured	3,813,864			3,686,152			119,119			128,873			169,602			118,527			4,102,585			3,933,552
Commercial - unsecured	134,455			145,922			6,264			4,481			2,545			3,531			143,264			153,934
Total commercial - industrial, financial and agricultural	3,948,319			3,832,074			125,383			133,354			172,147			122,058			4,245,849			4,087,486
Construction - commercial residential	131,115			113,570			9,789			15,447			16,387			13,172			157,291			142,189
Construction - commercial	718,702			635,963			4,727			3,412			5,220			5,115			728,649			644,490
Total construction (excluding Construction - other)	849,817			749,533			14,516			18,859			21,607			18,287			885,940			786,679
	$	10,803,094		$	10,344,729		$	259,433		$	284,697		$	331,270		$	263,321		$	11,393,797		$	10,892,747
% of Total	94.8		%	95.0		%	2.3		%	2.6		%	2.9		%	2.4		%	100.0		%	100.0		%

The risk rating process allows management to identify credits that potentially carry more risk in a timely manner and to allocate resources to managing troubled accounts. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented above. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide an independent assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan.

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and lease receivables. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the allowance for credit losses methodology for those loans, which bases the probability of default on this migration.

The following table presents a summary of performing, delinquent and non-performing loans for the indicated loan class segments:

	Performing						Delinquent (1)						Non-performing (2)						Total
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - home equity	$	1,557,629		$	1,602,687		$	10,223		$	9,274		$	11,887		$	13,154		$	1,579,739		$	1,625,115
Real estate - residential mortgage	1,746,977			1,557,995			15,889			20,344			21,846			23,655			1,784,712			1,601,994
Construction - other	51,869			55,874			—			—			1,091			1,096			52,960			56,970
Consumer - direct	55,825			93,572			1,761			1,752			1,143			1,563			58,729			96,887
Consumer - indirect	222,380			190,656			1,921			3,599			126			328			224,427			194,583
Total consumer	278,205			284,228			3,682			5,351			1,269			1,891			283,156			291,470
Leasing	251,050			229,591			922			1,068			281			317			252,253			230,976
	$	3,885,730		$	3,730,375		$	30,716		$	36,037		$	36,374		$	40,113		$	3,952,820		$	3,806,525
% of Total	98.3		%	98.0		%	0.8		%	0.9		%	0.9		%	1.1		%	100.0		%	100.0		%

(1) Includes all accruing loans 30 days to 89 days past due.

(2) Includes all accruing loans 90 days or more past due and all non-accrual loans.

22

The following table presents non-performing assets:

	June 30, 2017		December 31, 2016
	(in thousands)
Non-accrual loans	$	122,600	$	120,133
Loans 90 days or more past due and still accruing	13,143		11,505
Total non-performing loans	135,743		131,638
Other real estate owned (OREO)	11,432		12,815
Total non-performing assets	$	147,175	$	144,453

The following tables present past due status and non-accrual loans by portfolio segment and class segment:

	June 30, 2017
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	8,259	$	676	$	309	$	32,267	$	32,576	$	41,511	$	6,220,497	$	6,262,008
Commercial - secured	6,411		2,425		3,135		47,489		50,624		59,460		4,043,125		4,102,585
Commercial - unsecured	430		57		98		598		696		1,183		142,081		143,264
Total commercial - industrial, financial and agricultural	6,841		2,482		3,233		48,087		51,320		60,643		4,185,206		4,245,849
Real estate - home equity	8,103		2,120		2,167		9,720		11,887		22,110		1,557,629		1,579,739
Real estate - residential mortgage	12,640		3,249		4,906		16,940		21,846		37,735		1,746,977		1,784,712
Construction - commercial residential	538		20		978		13,779		14,757		15,315		141,976		157,291
Construction - commercial	—		—		—		716		716		716		727,933		728,649
Construction - other	—		—		—		1,091		1,091		1,091		51,869		52,960
Total real estate - construction	538		20		978		15,586		16,564		17,122		921,778		938,900
Consumer - direct	1,054		707		1,143		—		1,143		2,904		55,825		58,729
Consumer - indirect	1,708		213		126		—		126		2,047		222,380		224,427
Total consumer	2,762		920		1,269		—		1,269		4,951		278,205		283,156
Leasing, other and overdrafts	671		251		281		—		281		1,203		251,050		252,253
Total	$	39,814	$	9,718	$	13,143	$	122,600	$	135,743	$	185,275	$	15,161,342	$	15,346,617

23

	December 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	6,254	$	1,622	$	383	$	38,936	$	39,319	$	47,195	$	5,971,387	$	6,018,582
Commercial - secured	6,660		2,616		959		41,589		42,548		51,824		3,881,728		3,933,552
Commercial - unsecured	898		35		152		760		912		1,845		152,089		153,934
Total commercial - industrial, financial and agricultural	7,558		2,651		1,111		42,349		43,460		53,669		4,033,817		4,087,486
Real estate - home equity	6,596		2,678		2,543		10,611		13,154		22,428		1,602,687		1,625,115
Real estate - residential mortgage	15,600		4,744		5,224		18,431		23,655		43,999		1,557,995		1,601,994
Construction - commercial residential	233		51		36		8,275		8,311		8,595		133,594		142,189
Construction - commercial	743		—		—		435		435		1,178		643,312		644,490
Construction - other	—		—		—		1,096		1,096		1,096		55,874		56,970
Total real estate - construction	976		51		36		9,806		9,842		10,869		832,780		843,649
Consumer - direct	1,211		541		1,563		—		1,563		3,315		93,572		96,887
Consumer - indirect	3,200		399		328		—		328		3,927		190,656		194,583
Total consumer	4,411		940		1,891		—		1,891		7,242		284,228		291,470
Leasing, other and overdrafts	543		525		317		—		317		1,385		229,591		230,976
Total	$	41,938	$	13,211	$	11,505	$	120,133	$	131,638	$	186,787	$	14,512,485	$	14,699,272

The following table presents TDRs, by class segment:

	June 30, 2017		December 31, 2016
	(in thousands)
Real-estate - residential mortgage	$	26,368	$	27,617
Real-estate - commercial mortgage	13,772		15,957
Real estate - home equity	12,031		8,594
Commercial	8,086		6,627
Construction	1,475		726
Consumer	33		39
Total accruing TDRs	61,765		59,560
Non-accrual TDRs (1)	29,373		27,850
Total TDRs	$	91,138	$	87,410

(1) Included in non-accrual loans in the preceding table detailing non-performing assets.

As of June 30, 2017 and December 31, 2016, there were $2.6 million and $3.6 million of commitments, respectively, to lend additional funds to borrowers whose loans were modified under TDRs.

24

The following table presents TDRs, by class segment and type of concession for loans that were modified during the three and six months ended June 30, 2017 and 2016:

		Three months ended June 30						Six months ended June 30
		2017			2016			2017			2016
		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment
		(dollars in thousands)
Real estate – residential mortgage:
	Extend maturity without rate concession	—	$	—	2	$	315	2	$	337	2	$	315
	Bankruptcy	1	157		1	373		2	335		1	373
Real estate - commercial mortgage:
	Extend maturity without rate concession	3	663		—	—		4	981		—	$	—
	Bankruptcy	1	12		—	—		1	12		—	$	—
Real estate - home equity:
	Extend maturity without rate concession	17	1,275		18	738		33	2,559		39	$	1,995
	Bankruptcy	10	1,063		5	231		17	1,516		22	$	1,716
Commercial:
	Extend maturity without rate concession	4	2,567		4	1,146		8	5,693		6	1,976
	Bankruptcy	1	490		—	—		1	490		—	—
Commercial – unsecured:
	Extend maturity without rate concession	1	33		—	—		1	33		2	103
Construction - commercial residential:
	Extend maturity without rate concession	1	1,204		—	—		1	1,204		—	—
Consumer - indirect:
	Bankruptcy	—	—		—	—		—	—		1	2
Total		39	$	7,464	30	$	2,803	70	$	13,160	73	$	6,480

The following table presents TDRs, by class segment, as of June 30, 2017 and 2016, that were modified in the previous 12 months and had a post-modification payment default during the six months ended June 30, 2017 and 2016. The Corporation defines a payment default as a single missed payment.

	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - residential mortgage	7	$	1,911	5	$	972
Real estate - commercial mortgage	3	674		2	132
Real estate - home equity	16	922		22	1,448
Commercial	5	2,772		5	1,123
Consumer	1	16		—	—
Total	32	$	6,295	34	$	3,675

25

NOTE 6 – Mortgage Servicing Rights

The following table summarizes the changes in mortgage servicing rights ("MSRs"), which are included in other assets on the consolidated balance sheets:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Amortized cost:
Balance at beginning of period	$	38,543		$	40,195		$	38,822		$	40,944
Originations of mortgage servicing rights	1,203			1,508			2,386			2,428
Amortization	(1,566		)	(1,829		)	(3,028		)	(3,498		)
Balance at end of period	$	38,180		$	39,874		$	38,180		$	39,874
Valuation allowance:
Balance at beginning of period	$	(1,291	)	$	—		$	(1,291	)	$	—
(Additions) reductions to valuation allowance	1,291			(1,721		)	1,291			(1,721		)
Balance at end of period	$	—		$	(1,721	)	$	—		$	(1,721	)
Net MSRs at end of period	$	38,180		$	38,153		$	38,180		$	38,153

MSRs represent the economic value of existing contractual rights to service mortgage loans that have been sold. Accordingly, actual and expected prepayments of the underlying mortgage loans can impact the value of MSRs. The Corporation accounts for MSRs at the lower of amortized cost or fair value.

The fair value of MSRs is estimated by discounting the estimated cash flows from servicing income, net of expense, over the expected life of the underlying loans at a discount rate commensurate with the risk associated with these assets. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. Based on its fair value analysis, the Corporation determined that a reduction to the valuation allowance of $1.3 million was appropriate for the three and six months ended June 30, 2017. An addition to the valuation allowance of $1.7 million was determined to be necessary for the three and six months ended June 30, 2016. Additions and reductions to the valuation allowance are recorded as decreases and increases, respectively, to "mortgage banking income" on the consolidated statements of income.

NOTE 7 – Stock-Based Compensation

The Corporation grants equity awards to employees, consisting of stock options, restricted stock, RSUs and PSUs under its Amended and Restated Equity and Cash Incentive Compensation Plan ("Employee Equity Plan"). In addition, employees may purchase stock under the Corporation’s Employee Stock Purchase Plan. The fair value of equity awards granted to employees is recognized as compensation expense over the period during which employees are required to provide service in exchange for such awards. Compensation expense for PSUs is also recognized over the period during which employees are required to provide service in exchange for such awards, however, compensation expense may vary based on the expectations for actual performance relative to defined performance measures.

The Corporation also grants equity awards to non-employee members of its board of directors under the 2011 Directors’ Equity Participation Plan ("Directors’ Plan"). Under the Directors’ Plan, the Corporation can grant equity awards to non-employee holding company and subsidiary bank directors in the form of stock options, restricted stock or common stock.

Equity awards issued under the Employee Equity Plan are generally granted annually and become fully vested over or after a three-year vesting period. The vesting period for non-performance-based awards represents the period during which employees are required to provide service in exchange for such awards. Equity awards under the Directors' Plan generally vest immediately upon grant. Certain events, as defined in the Employee Equity Plan and the Directors' Plan, result in the acceleration of the vesting of equity awards.

26

The following table presents compensation (benefit) expense and the related tax benefits for equity awards recognized in the consolidated statements of income:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Stock-based compensation expense	$	1,035		$	1,820		$	1,769		$	3,256
Tax benefit	(1,940		)	(642		)	(2,684		)	(1,075		)
Stock-based compensation expense, net of tax benefit	$	(905	)	$	1,178		$	(915	)	$	2,181

For the three and six months endedJune 30, 2017, the tax benefit exceeded the stock-based compensation expense as a result of excess tax benefits arising from corporate stock price levels, stock option exercises and vesting restricted stock, RSUs and PSUs during these periods, which were recorded as reductions to income tax expense as required under ASU 2016-09.

Stock option fair values are estimated through the use of the Black-Scholes valuation methodology as of the date of grant. Stock options carry terms of up to ten years. Fair values for restricted stock, RSUs and a majority of PSUs are based on the trading price of the Corporation’s stock on the date of grant and earn dividends or dividend equivalents during the vesting period, which are forfeitable if the awards do not vest. The fair value of certain PSUs are estimated through the use of the Monte Carlo valuation methodology as of the date of grant.

As of June 30, 2017, the Employee Equity Plan had 10.7 million shares reserved for future grants through 2023, and the Directors’ Plan had approximately 360,000 shares reserved for future grants through 2021. On May 1, 2017, the Corporation granted approximately 284,000 PSUs and 140,000 RSUs under the Employee Equity Plan. On June 1, 2017, the Corporation granted approximately 11,000 shares of common stock to its directors for a total expense of $193,000 recognized in other expense.

NOTE 8 – Employee Benefit Plans

The net periodic benefit cost for the Corporation’s Defined Benefit Pension Plan ("Pension Plan") consisted of the following components:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Service cost (1)	$	—		$	194		$	—		$	344
Interest cost	830			879			1,660			1,760
Expected return on plan assets	(451		)	(433		)	(902		)	(1,159		)
Net amortization and deferral	663			428			1,326			1,210
Net periodic benefit cost	$	1,042		$	1,068		$	2,084		$	2,155

(1) The Pension Plan was curtailed effective January 1, 2008. Service cost was related to administrative costs associated with the plan and was not due to the accrual of additional participant benefits.

The net periodic benefit of the Corporation’s Postretirement Benefits Plan ("Postretirement Plan") consisted of the following components:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Interest cost	$	17		$	5		$	34		$	43
Expected return on plan assets	—			(1		)	—			(1		)
Net accretion and deferral	(141		)	(210		)	(282		)	(275		)
Net periodic benefit	$	(124	)	$	(206	)	$	(248	)	$	(233	)

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The Corporation recognizes the funded status of its Pension Plan and Postretirement Plan on the consolidated balance sheets and recognizes the change in that funded status through other comprehensive income.

NOTE 9 – Derivative Financial Instruments

The Corporation manages its exposure to certain interest rate and foreign currency risks through the use of derivatives. None of the Corporation's outstanding derivative contracts are designated as hedges, and none are entered into for speculative purposes. Derivative instruments are carried at fair value, with changes in fair values recognized in earnings as components of non-interest income and non-interest expense on the consolidated statements of income.

Derivative contracts create counterparty credit risk with both the Corporation's customers and with institutional derivative counterparties. The Corporation manages counterparty credit risk through its credit approval processes, monitoring procedures and obtaining adequate collateral, when the Corporation determines it is appropriate to do so and in accordance with counterparty contracts.

Mortgage Banking Derivatives

In connection with its mortgage banking activities, the Corporation enters into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, the Corporation enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Gross derivative assets and liabilities are recorded in other assets and other liabilities, respectively, on the consolidated balance sheets, and changes in fair values during the period are recorded in mortgage banking income on the consolidated statements of income.

Interest Rate Swaps

The Corporation enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Corporation simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These interest rate swaps are derivative financial instruments and the gross fair values are recorded in other assets and other liabilities on the consolidated balance sheets, with changes in fair values during the period recorded in other non-interest expense on the consolidated statements of income.Fulton Bank, N.A. ("Fulton Bank"), the Corporation's largest banking subsidiary, exceeded $10 billion in total assets as of December 31, 2016 and was required to clear all eligible interest rate swap contracts with a central counterparty, effective January 1, 2017. As a result, Fulton Bank became subject to the regulations of the Commodity Futures Trading Commission ("CFTC").

Foreign Exchange Contracts

The Corporation enters into foreign exchange contracts to accommodate the needs of its customers. Foreign exchange contracts are commitments to buy or sell foreign currency on a future date at a contractual price. The Corporation offsets its foreign exchange contract exposure with customers by entering into contracts with third-party correspondent financial institutions to mitigate its exposure to fluctuations in foreign currency exchange rates. The Corporation also holds certain amounts of foreign currency with international correspondent banks. The Corporation's policy limits the total net foreign currency open positions, which includes all outstanding contracts and foreign account balances, to $500,000. Gross fair values are recorded in other assets and other liabilities on the consolidated balance sheets, with changes in fair values during the period recorded within other service charges and fees on the consolidated statements of income.

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The following table presents a summary of the notional amounts and fair values of derivative financial instruments:

	June 30, 2017					December 31, 2016
	Notional Amount		Asset (Liability) Fair Value			Notional Amount		Asset (Liability) Fair Value
	(in thousands)
Interest Rate Locks with Customers
Positive fair values	$	141,136	$	1,354		$	87,119	$	863
Negative fair values	3,573		(28		)	18,239		(227		)
Net interest rate locks with customers			1,326					636
Forward Commitments
Positive fair values	25,343		94			70,031		2,223
Negative fair values	91,629		(205		)	19,964		(112		)
Net forward commitments			(111		)			2,111
Interest Rate Swaps with Customers
Positive fair values	1,242,309		34,331			876,744		24,397
Negative fair values	581,370		(13,938		)	583,060		(16,998		)
Net interest rate swaps with customers			20,393					7,399
Interest Rate Swaps with Dealer Counterparties
Positive fair values	581,370		13,938			583,060		16,998
Negative fair values (1)	1,242,309		(29,167		)	876,744		(24,397		)
Net interest rate swaps with dealer counterparties			(15,229		)			(7,399		)
Foreign Exchange Contracts with Customers
Positive fair values	4,460		309			11,674		504
Negative fair values	7,295		(343		)	4,659		(221		)
Net foreign exchange contracts with customers			(34		)			283
Foreign Exchange Contracts with Correspondent Banks
Positive fair values	9,268		407			7,040		241
Negative fair values	6,873		(283		)	12,869		(447		)
Net foreign exchange contracts with correspondent banks			124					(206		)
Net derivative fair value asset			$	6,469				$	2,824

(1) Includes centrally cleared interest rate swaps with a notional amount of $240.7 million and a fair value of $0 as of June 30, 2017. Collateral is posted daily through a clearing agent for changes in the fair value.

The following table presents a summary of the fair value gains (losses) on derivative financial instruments:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Interest rate locks with customers	$	(155	)	$	512		$	690		$	1,744
Forward commitments	157			(906		)	(2,222		)	(2,012		)
Interest rate swaps with customers	13,809			20,569			12,994			50,000
Interest rate swaps with dealer counterparties	(10,831		)	(20,569		)	(7,830		)	(50,000		)
Foreign exchange contracts with customers	(325		)	81			(317		)	455
Foreign exchange contracts with correspondent banks	367			(68		)	330			(347		)
Net fair value gains (losses) on derivative financial instruments	$	3,022		$	(381	)	$	3,645		$	(160	)

Fair Value Option

U.S. GAAP permits entities to measure many financial instruments and certain other items at fair value and requires certain disclosures for amounts for which the fair value option is applied. The Corporation has elected to measure mortgage loans held

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for sale at fair value to more accurately reflect the financial results of its mortgage banking activities in its consolidated financial statements. Derivative financial instruments related to these activities are also recorded at fair value, as noted above. The Corporation determines fair value for its mortgage loans held for sale based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Changes in fair values during the period are recorded as components of mortgage banking income on the consolidated statements of income. Interest income earned on mortgage loans held for sale is classified in interest income on the consolidated statements of income.

The following table presents a summary of the Corporation’s mortgage loans held for sale:

	June 30, 2017		December 31, 2016
	(in thousands)
Cost	$	32,810	$	28,708
Fair value	33,364		28,697

During the three months ended June 30, 2017 and 2016, the Corporation recorded gains related to changes in fair values of mortgage loans held for sale of $26,000 and $634,000, respectively. During the six months ended June 30, 2017 and 2016, the Corporation recorded gains related to changes in fair values of mortgage loans held for sale of $565,000 and $864,000, respectively.

Balance Sheet Offsetting

Certain financial assets and liabilities may be eligible for offset on the consolidated balance sheets because they are subject to master netting arrangements or similar agreements. The Corporation elects to not offset certain assets and liabilities subject to such arrangements on the consolidated financial statements.

The Corporation is a party to interest rate swap transactions with financial institution counterparties and customers, disclosed in detail above. Under these agreements, the Corporation has the right to net-settle multiple contracts with the same counterparty in the event of default on, or termination of, any one contract. Cash collateral is posted by the party with a net liability position in accordance with contract thresholds and can be used to settle the fair value of the interest rate swap agreements in the event of default. Collateral is posted daily through a clearing agent for changes in the fair value of centrally cleared derivatives with negative fair values. As a result, the total fair values of interest rate swap derivative assets and derivative liabilities recognized on the consolidated balance sheet are not equal and offsetting.

The Corporation is also a party to foreign currency exchange contracts with financial institution counterparties, under which the Corporation has the right to net-settle multiple contracts with the same counterparty in the event of default on, or termination of, any one contract. As with interest rate swap contracts, collateral is posted by the party with a net liability position in accordance with contract thresholds and can be used to settle the fair value of the foreign currency exchange contracts in the event of default.

The Corporation also enters into agreements with customers in which it sells securities subject to an obligation to repurchase the same or similar securities, referred to as repurchase agreements. Under these agreements, the Corporation may transfer legal control over the assets but still maintain effective control through agreements that both entitle and obligate the Corporation to repurchase the assets. Therefore, repurchase agreements are reported as secured borrowings, classified in short-term borrowings on the consolidated balance sheets, while the securities underlying the repurchase agreements remain classified with investment securities on the consolidated balance sheets. The Corporation has no intention of setting off these amounts. Therefore, these repurchase agreements are not eligible for offset.

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The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:

	Gross Amounts		Gross Amounts Not Offset
	Recognized		on the Consolidated
	on the		Balance Sheets
	Consolidated		Financial			Cash			Net
	Balance Sheets		Instruments(1)			Collateral (2)			Amount
	(in thousands)
June 30, 2017
Interest rate swap derivative assets	$	48,269	$	(14,372	)	$	—		$	33,897
Foreign exchange derivative assets with correspondent banks	407		(283		)	—			124
Total	$	48,676	$	(14,655	)	$	—		$	34,021
Interest rate swap derivative liabilities	$	43,105	$	(14,372	)	$	(18,320	)	$	10,413
Foreign exchange derivative liabilities with correspondent banks	283		(283		)	—			—
Total	$	43,388	$	(14,655	)	$	(18,320	)	$	10,413
December 31, 2016
Interest rate swap derivative assets	$	41,395	$	(15,117	)	$	—		$	26,278
Foreign exchange derivative assets with correspondent banks	241		(241		)	—			—
Total	$	41,636	$	(15,358	)	$	—		$	26,278
Interest rate swap derivative liabilities	$	41,395	$	(15,117	)	$	(4,010	)	$	22,268
Foreign exchange derivative liabilities with correspondent banks	447		(241		)	(206		)	—
Total	$	41,842	$	(15,358	)	$	(4,216	)	$	22,268

(1) For derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent collateral received from the counterparty or posted by the Corporation.

NOTE 10 – Commitments and Contingencies

Commitments

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.

Those financial instruments include commitments to extend credit and letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized on the Corporation’s consolidated balance sheets. Exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the outstanding amount of those instruments.

The outstanding amounts of commitments to extend credit and letters of credit were as follows:

	June 30, 2017		December 31, 2016
	(in thousands)
Commitments to extend credit	$	6,382,314	$	6,075,567
Standby letters of credit	349,953		356,359
Commercial letters of credit	41,501		38,901

The Corporation records a reserve for unfunded lending commitments, which represents management’s estimate of losses associated with unused commitments to extend credit. See Note 5, "Loans and Allowance for Credit Losses," for additional details.

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Residential Lending

Residential mortgages originated and sold by the Corporation consist primarily of conforming, prime loans sold to government sponsored agencies, such as the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"). The Corporation also sells certain prime loans it originates to non-government sponsored agency investors.

The Corporation provides customary representations and warranties to government sponsored entities and investors that specify, among other things, that the loans have been underwritten to the standards established by the government sponsored entity or investor. The Corporation may be required to repurchase a loan, or reimburse the government sponsored entity or investor for a credit loss incurred on a loan, if it is determined that the representations and warranties have not been met. Such repurchases or reimbursements generally result from an underwriting or documentation deficiency. As of both June 30, 2017 and December 31, 2016, total outstanding repurchase requests totaled approximately $543,000.

From 2000 to 2011, the Corporation sold loans to the Federal Home Loan Bank of Pittsburgh under its Mortgage Partnership Finance Program ("MPF Program"). The Corporation provided a "credit enhancement" for residential mortgage loans sold under the MPF Program whereby it would assume credit losses in excess of a defined "First Loss Account," or "FLA" balance, up to specified amounts. The FLA is funded by the Federal Home Loan Bank of Pittsburgh based on a percentage of the outstanding principal balance of loans sold. As of June 30, 2017, the unpaid principal balance of loans sold under the MPF Program was approximately $94 million. As of June 30, 2017 and December 31, 2016, the reserve for estimated credit losses related to loans sold under the MPF Program was $1.6 million and $1.7 million, respectively. Required reserves are calculated based on delinquency status and estimated loss rates established through the Corporation's existing allowance for credit losses methodology for residential mortgage loans.

As of June 30, 2017 and December 31, 2016, the total reserve for losses on residential mortgage loans sold was $2.4 million and $2.5 million, respectively, including both reserves for credit losses under the MPF Program and reserves for representation and warranty exposures. Management believes that the reserves recorded as of June 30, 2017 are adequate. However, declines in collateral values, the identification of additional loans to be repurchased, or a deterioration in the credit quality of loans sold under the MPF Program could necessitate additional reserves, established through charges to earnings, in the future.

Legal Proceedings

The Corporation and its subsidiaries are involved in various legal proceedings in the ordinary course of business of the Corporation. The Corporation periodically evaluates the possible impact of pending litigation matters based on, among other factors, the advice of counsel, available insurance coverage and recorded liabilities and reserves for probable legal liabilities and costs. In addition, from time to time, the Corporation is the subject of investigations or other forms of regulatory or governmental inquiry covering a range of possible issues and, in some cases, these may be part of similar reviews of the specified activities of other industry participants. These inquiries could lead to administrative, civil or criminal proceedings, and could possibly result in fines, penalties, restitution or the need to alter the Corporation’s business practices, and cause the Corporation to incur additional costs. The Corporation’s practice is to cooperate fully with regulatory and governmental investigations.

As of the date of this report, the Corporation believes that any liabilities, individually or in the aggregate, which may result from the final outcomes of pending proceedings will not have a material adverse effect on the financial condition of the Corporation. However, legal proceedings are often unpredictable, and it is possible that the ultimate resolution of any such matters, if unfavorable, may be material to the Corporation’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period.

BSA/AML Enforcement Orders

The Corporation and each of its bank subsidiaries are subject to regulatory enforcement orders issued during 2014 and 2015 by their respective federal and state bank regulatory agencies relating to identified deficiencies in the Corporation’s centralized Bank Secrecy Act and anti-money laundering compliance program (the "BSA/AML Compliance Program"), which was designed to comply with the requirements of the Bank Secrecy Act, the USA Patriot Act of 2001 and related anti-money laundering regulations (collectively, the "BSA/AML Requirements"). The regulatory enforcement orders, which are in the form of consent orders or orders to cease and desist issued upon consent ("Consent Orders"), generally require, among other things, that the Corporation and its bank subsidiaries undertake a number of required actions to strengthen and enhance the BSA/AML Compliance Program, and, in some cases, conduct retrospective reviews of past account activity and transactions, as well as certain reports filed in accordance with the BSA/AML Requirements, to determine whether suspicious activity and certain transactions in currency were properly identified and reported in accordance with the BSA/AML Requirements. The Corporation and its bank subsidiaries have

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implemented numerous enhancements to the BSA/AML Compliance Program, completed the retrospective reviews required under the Consent Orders, and continue to strengthen and refine the BSA/AML Compliance Program to achieve a sustainable program in accordance with the BSA/AML Requirements. In addition to requiring strengthening and enhancement of the BSA/AML Compliance Program, while the Consent Orders remain in effect, the Corporation is subject to certain restrictions on expansion activities of the Corporation and its bank subsidiaries. Further, any failure to comply with the requirements of any of the Consent Orders involving the Corporation or its bank subsidiaries could result in further enforcement actions, the imposition of material restrictions on the activities of the Corporation or its bank subsidiaries, or the assessment of fines or penalties.

Fair Lending Investigation

During the second quarter of 2015, Fulton Bank, N.A., the Corporation’s largest bank subsidiary, received a letter from the U.S. Department of Justice (the "Department") indicating that the Department had initiated an investigation regarding potential violations of fair lending laws (specifically, the Equal Credit Opportunity Act and the Fair Housing Act) by Fulton Bank, N.A. in certain geographies. Fulton Bank, N.A. has been and is cooperating with the Department and responding to the Department’s requests for information. During the third quarter of 2016, the Department informed the Corporation, Fulton Bank, N.A., and three of the Corporation’s other bank subsidiaries, Fulton Bank of New Jersey, The Columbia Bank and Lafayette Ambassador Bank, that the Department was expanding its investigation of potential lending discrimination on the basis of race and national origin to encompass additional geographies that were not included in the initial letter from the Department. In addition to requesting information concerning the lending activities of these bank subsidiaries, the Department also requested information concerning the Corporation and the residential mortgage lending activities conducted under the Fulton Mortgage Company brand, the trade name used by all of the Corporation’s bank subsidiaries for residential mortgage lending. The investigation relates to lending activities during the period January 1, 2009 to the present. The Corporation and the identified bank subsidiaries are cooperating with the Department and responding to the Department’s requests for information. The Corporation and its bank subsidiaries are not able at this time to determine the terms on which this investigation will be resolved or the timing of such resolution, or to reliably estimate the amounts of any settlement, fines or other penalties or the cost of any other remedial actions, if enforcement action is taken. In addition, should the investigation result in an enforcement action against the Corporation or its bank subsidiaries, or a settlement with the Department, the ability of the Corporation and its bank subsidiaries to engage in certain expansion or other activities may be restricted.

Agostino, et al. Litigation

Fulton Bank, N.A. (the "Bank"), the Corporation’s largest bank subsidiary, and two unrelated, third-party defendants, Ameriprise Financial Services, Inc. (“Ameriprise”) and Riverview Bank (“Riverview”), have been named as defendants in a lawsuit brought on behalf of a group of 67 plaintiffs filed on March 31, 2016, in the Court of Common Pleas for Dauphin County, Pennsylvania (Agostino, et al. v. Ameriprise Financial Services, Inc., et al., No. 2016-CV-2048-CV). The plaintiffs in this action, who are individuals, trustees of certain irrevocable trusts, or the executors of the estates of deceased individuals, were clients of Jeffrey M. Mottern, a now-deceased attorney, who is alleged to have operated a fraud scheme over a period of years through the sale of fictitious high-yield investments or by otherwise misappropriating funds entrusted to Mr. Mottern. Mr. Mottern is alleged to have used the proceeds of these activities to engage in speculative securities trading through defendant Ameriprise, which caused significant losses, and for Mr. Mottern’s personal expenses. The allegations against the Bank relate to a commercial checking account at the Bank maintained by Mr. Mottern in connection with Mr. Mottern’s law practice. The lawsuit alleges that the Bank is liable to the plaintiffs for failing to properly monitor Mr. Mottern’s checking account and detect Mr. Mottern’s fraudulent activity, and specifically alleges that the Bank aided and abetted Mr. Mottern’s: (1) fraud; (2) breach of fiduciary duty; (3) violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law; and (4) conversion. Similar claims have been asserted against Ameriprise and Riverview, which allegedly maintained a personal brokerage account and a trust account for client or other third-party funds, respectively, for Mr. Mottern. The lawsuit seeks damages from the defendants, including the Bank, alleged to be in excess of $11.3 million, treble damages and attorneys’ fees with respect to alleged violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, punitive damages, plus interest and costs. On April 29, 2016, the Bank filed a Notice of Removal to remove this lawsuit to the United States District Court for the Middle District of Pennsylvania. On May 31, 2016, the plaintiffs filed a motion to remand the lawsuit to the Court of Common Pleas for Dauphin County, Pennsylvania. On October 24, 2016, the District Court granted the plaintiffs' motion and the lawsuit was remanded back to the Court of Common Pleas for Dauphin County. All defendants subsequently filed preliminary objections to the Complaint, including objections that, if granted, would result in dismissal of the case. On May 26, 2017, the Court of Common Pleas for Dauphin County denied all substantive preliminary objections filed by the Bank. On June 23, 2017, the Bank filed its Combined Motion for Partial Reconsideration of the Court’s May 26, 2017 Order and Application for Amendment of the Order to Set Forth Expressly the Statement in Pa.C.S. s. 702(b) (the “Motion”). The Bank also filed its Answer and New Matter (the “Answer”) on June 23, 2017. The Plaintiffs subsequently responded to the Motion and the Answer, and the case has now entered the discovery phase.

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NOTE 11 – Fair Value Measurements

FASB ASC Topic 820 establishes a fair value hierarchy for the inputs to valuation techniques used to measure assets and liabilities at fair value using the following three categories (from highest to lowest priority):

• Level 1 – Inputs that represent quoted prices for identical instruments in active markets.

• Level 2 – Inputs that represent quoted prices for similar instruments in active markets, or quoted prices for identical instruments in non-active markets. Also includes valuation techniques whose inputs are derived principally from observable market data other than quoted prices, such as interest rates or other market-corroborated means.

• Level 3 – Inputs that are largely unobservable, as little or no market data exists for the instrument being valued.

The Corporation has categorized all assets and liabilities measured at fair value on both a recurring and nonrecurring basis into the above three levels.

The following tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	33,364	$	—	$	33,364
Available for sale investment securities:
Equity securities	21,455		—		—		21,455
U.S. Government sponsored agency securities	—		6,054		—		6,054
State and municipal securities	—		401,636		—		401,636
Corporate debt securities	—		85,795		3,197		88,992
Collateralized mortgage obligations	—		538,507		—		538,507
Residential mortgage-backed securities	—		1,213,065		—		1,213,065
Commercial mortgage-backed securities	—		121,067		—		121,067
Auction rate securities	—		—		97,923		97,923
Total available for sale investment securities	21,455		2,366,124		101,120		2,488,699
Other assets	18,533		49,717		—		68,250
Total assets	$	39,988	$	2,449,205	$	101,120	$	2,590,313
Other liabilities	$	18,438	$	43,338	$	—	$	61,776

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	28,697	$	—	$	28,697
Available for sale investment securities:
Equity securities	24,526		—		—		24,526
U.S. Government sponsored agency securities	—		134		—		134
State and municipal securities	—		391,641		—		391,641
Corporate debt securities	—		106,537		2,872		109,409
Collateralized mortgage obligations	—		593,860		—		593,860
Residential mortgage-backed securities	—		1,317,838		—		1,317,838
Commercial mortgage-backed securities	—		24,563		—		24,563
Auction rate securities	—		—		97,256		97,256
Total available for sale investment securities	24,526		2,434,573		100,128		2,559,227
Other assets	17,111		44,481		—		61,592
Total assets	$	41,637	$	2,507,751	$	100,128	$	2,649,516
Other liabilities	$	17,032	$	41,734	$	—	$	58,766

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The valuation techniques used to measure fair value for the items in the preceding tables are as follows:

• Mortgage loans held for sale – This category consists of mortgage loans held for sale that the Corporation has elected to measure at fair value. Fair values as of June 30, 2017 and December 31, 2016 were measured based on the price that secondary market investors were offering for loans with similar characteristics. See Note 9, "Derivative Financial Instruments" for details related to the Corporation’s election to measure assets and liabilities at fair value.

• Available for sale investment securities – Included in this asset category are both equity and debt securities. Level 2 available for sale debt securities are valued by a third-party pricing service commonly used in the banking industry. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings, and matrix pricing.

Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used, or some of the standard market inputs may not be applicable.

Management tests the values provided by the pricing service by obtaining securities prices from an alternative third-party source and comparing the results. This test is done for at least 80% of the securities valued by the pricing service. Generally, differences by security in excess of 5% are researched to reconcile the difference.

• Equity securities – Equity securities consist of common stocks of financial institutions ($20.5 million at June 30, 2017 and $23.5 million at December 31, 2016) and other equity investments ($1.0 million at June 30, 2017 and December 31, 2016). These Level 1 investments are measured at fair value based on quoted prices for identical securities in active markets.

• U.S. Government securities/U.S. Government sponsored agency securities/State and municipal securities/Collateralized mortgage obligations/Residential mortgage-backed securities/Commercial mortgage-backed securities – These debt securities are classified as Level 2 investments. Fair values are determined by a third-party pricing service, as detailed above.

• Corporate debt securities – This category consists of subordinated debt issued by financial institutions ($42.1 million at June 30, 2017 and $65.2 million at December 31, 2016), single-issuer trust preferred securities issued by financial institutions ($42.5 million at June 30, 2017 and $39.8 million at December 31, 2016), pooled trust preferred securities issued by financial institutions ($422,000 at both June 30, 2017 and December 31, 2016) and other corporate debt issued by non-financial institutions ($4.0 million at both June 30, 2017 and December 31, 2016).

Level 2 investments include the Corporation’s holdings of subordinated debt, other corporate debt issued by non-financial institutions and $39.7 million and $37.3 million of single-issuer trust preferred securities held at June 30, 2017 and December 31, 2016, respectively. The fair values for these corporate debt securities are determined by a third-party pricing service, as detailed above.

Level 3 investments include the Corporation’s investments in pooled trust preferred securities ($422,000 at both June 30, 2017 and December 31, 2016) and certain single-issuer trust preferred securities ($2.8 million at June 30, 2017 and $2.5 million at December 31, 2016). The fair values of these securities were determined based on quotes provided by third-party brokers who determined fair values based predominantly on internal valuation models which were not indicative prices or binding offers. The Corporation’s third-party pricing service cannot derive fair values for these securities primarily due to inactive markets for similar investments. Level 3 values are tested by management primarily through trend analysis, by comparing current values to those reported at the end of the preceding calendar quarter, and determining if they are reasonable based on price and spread movements for this asset class.

• Auction rate securities – Due to their illiquidity, ARCs are classified as Level 3 investments and are valued through the use of an expected cash flows model prepared by a third-party valuation expert. The assumptions used in preparing the expected cash flows model include estimates for coupon rates, time to maturity and market rates of return. The most significant unobservable input to the expected cash flows model is an assumed return to market liquidity sometime in the next five years. If the assumed return to market liquidity was lengthened beyond the next five years, this would result in a decrease in the fair value of these ARCs. The Corporation believes that the trusts underlying the ARCs will self-liquidate as student loans are repaid. Level 3 fair values

35

are tested by management through the performance of a trend analysis of the market price and discount rate. Changes in the price and discount rates are compared to changes in market data, including bond ratings, parity ratios, balances and delinquency levels.

Other assets – Included in this category are the following:

• Level 1 assets include mutual funds that are held in trust for employee deferred compensation plans ($17.8 million at June 30, 2017 and $16.4 million at December 31, 2016) and the fair value of foreign currency exchange contracts ($716,000 at June 30, 2017 and $745,000 at December 31, 2016). The mutual funds and foreign exchange prices used to measure these items at fair value are based on quoted prices for identical instruments in active markets.

• Level 2 assets include the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($1.4 million at June 30, 2017 and $3.1 million at December 31, 2016) and the fair value of interest rate swaps ($48.3 million at June 30, 2017 and $41.4 million at December 31, 2016). The fair values of the Corporation’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. See Note 9, "Derivative Financial Instruments," for additional information.

Other liabilities – Included in this category are the following:

• Level 1 liabilities include employee deferred compensation liabilities which represent amounts due to employees under deferred compensation plans ($17.8 million at June 30, 2017 and $16.4 million at December 31, 2016) and the fair value of foreign currency exchange contracts ($626,000 at June 30, 2017 and $668,000 at December 31, 2016). The fair value of these liabilities are determined in the same manner as the related assets, as described under the heading "Other assets" above.

• Level 2 liabilities include the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($233,000 at June 30, 2017 and $339,000 at December 31, 2016) and the fair value of interest rate swaps ($43.1 million at June 30, 2017 and $41.4 million at December 31, 2016). The fair values of these liabilities are determined in the same manner as the related assets, as described under the heading "Other assets" above.

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The following table presents the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3):

	Three months ended June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at March 31, 2017	$	422	$	2,750		$	97,439
Unrealized adjustment to fair value (1)	—		22			386
Discount accretion (2)	—		3			98
Balance at June 30, 2017	$	422	$	2,775		$	97,923
	Three months ended June 30, 2016
Balance at March 31, 2016	$	706	$	2,400		$	97,326
Unrealized adjustment to fair value (1)	—		22			482
Discount accretion (2)	—		3			78
Balance at June 30, 2016	$	706	$	2,425		$	97,886
	Six months ended June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2016	$	422	$	2,450		$	97,256
Unrealized adjustment to fair value (1)	—		319			472
Discount accretion (2)	—		6			195
Balance at June 30, 2017	$	422	$	2,775		$	97,923
	Six months ended June 30, 2016
Balance at December 31, 2015	$	706	$	2,630		$	98,059
Unrealized adjustment to fair value (1)	—		(211		)	(350		)
Discount accretion (2)	—		6			177
Balance at June 30, 2016	$	706	$	2,425		$	97,886

(1) Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of "available for sale investment securities" on the consolidated balance sheets.

(2) Included as a component of "net interest income" on the consolidated statements of income.

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Certain financial assets are not measured at fair value on an ongoing basis, but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	144,256	$	144,256
Other financial assets	—		—		49,613		49,613
Total assets	$	—	$	—	$	193,869	$	193,869

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	132,576	$	132,576
Other financial assets	—		—		50,347		50,347
Total assets	$	—	$	—	$	182,923	$	182,923

The valuation techniques used to measure fair value for the items in the table above are as follows:

• Net loans – This category consists of loans that were measured for impairment under FASB ASC Section 310-10-35 and have been classified as Level 3 assets. The amount shown is the balance of impaired loans, net of the related allowance for loan losses. See Note 5, "Loans and Allowance for Credit Losses," for additional details.

• Other financial assets – This category includes OREO ($11.4 million at June 30, 2017 and $12.8 million at December 31, 2016) and MSRs ($38.2 million at June 30, 2017 and $37.5 million at December 31, 2016), both classified as Level 3 assets.

Fair values for OREO were based on estimated selling prices less estimated selling costs for similar assets in active markets.

MSRs are initially recorded at fair value upon the sale of residential mortgage loans to secondary market investors. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are stratified and evaluated for impairment by comparing each stratum's carrying amount to its estimated fair value. Fair values are determined at the end of each quarter through a discounted cash flows valuation performed by a third-party valuation expert. Significant inputs to the valuation included expected net servicing income, the discount rate and the expected life of the underlying loans. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. The weighted average annual constant prepayment rate and the weighted average discount rate used in the June 30, 2017 valuation were 11.8% and 9.5%, respectively. Management tests the reasonableness of the significant inputs to the third-party valuation in comparison to market data.

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As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of June 30, 2017 and December 31, 2016. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.

	June 30, 2017				December 31, 2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	94,938	$	94,938	$	118,763	$	118,763
Interest-bearing deposits with other banks	322,514		322,514		233,763		233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328		70,328		57,489		57,489
Loans held for sale (1)	62,354		62,354		28,697		28,697
Available for sale investment securities (1)	2,488,699		2,488,699		2,559,227		2,559,227
Net Loans (1)	15,174,275		15,007,961		14,530,593		14,387,454
Accrued interest receivable	47,603		47,603		46,294		46,294
Other financial assets (1)	212,773		212,773		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,610,951	$	12,610,951	$	12,259,622	$	12,259,622
Time deposits	2,746,410		2,758,807		2,753,242		2,769,757
Short-term borrowings	694,859		694,859		541,317		541,317
Accrued interest payable	7,804		7,804		9,632		9,632
Other financial liabilities (1)	252,537		252,537		216,080		216,080
Federal Home Loan Bank advances and other long-term debt	1,037,961		1,035,711		929,403		928,167

(1) These financial instruments, or certain financial instruments in these categories, are measured at fair value on the Corporation’s consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.

Fair values of financial instruments are significantly affected by the assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Corporation.

For short-term financial instruments, defined as those with remaining maturities of 90 days or less, and excluding those recorded at fair value on the Corporation’s consolidated balance sheets, book value was considered to be a reasonable estimate of fair value.

The following instruments are predominantly short-term:

Assets	Liabilities
Cash and due from banks	Demand and savings deposits
Interest-bearing deposits with other banks	Short-term borrowings
Accrued interest receivable	Accrued interest payable

Federal Reserve Bank and Federal Home Loan Bank ("FHLB") stock represent restricted investments and are carried at cost on the consolidated balance sheets.

Fair values for loans and time deposits were estimated by discounting future cash flows using the current rates at which similar loans would be made to borrowers and similar deposits would be issued to customers for the same remaining maturities. Fair values estimated in this manner do not fully incorporate an exit price approach to fair value, as defined in FASB ASC Topic 820.

Loans held for sale includes $28.9 million of student loans as of June 30, 2017, carried at the lower of cost or fair value. In June 2017, the Corporation determined to sell this portfolio and began discussions with a potential purchaser of this portfolio, and reclassified these loans from consumer loans to loans held for sale. Fair value is based on the price per the preliminary offer from the potential purchaser. As such, a loss of $440,000 was recorded in the second quarter of 2017 and included in "other expense" on the consolidated statements of income.

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The fair values of FHLB advances and long-term debt were estimated by discounting the remaining contractual cash flows using a rate at which the Corporation could issue debt with similar remaining maturities as of the balance sheet date. These borrowings would be categorized in Level 2 liabilities under FASB ASC Topic 820.

NOTE 12 – Long-Term Debt

In March 2017, the Corporation issued $125.0 million of senior notes, with a fixed rate of 3.60% and an effective rate of 3.95%, that mature in 2022. A portion of the net proceeds from this issuance were used to repay $100.0 million of 10-year subordinated notes, which matured on May 1, 2017 and carried a fixed rate of 5.75% and an effective rate of 5.96%.

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Item 2. Management’s Discussion and Analysis of Financial Condition and Results of Operations

Management’s Discussion and Analysis of Financial Condition and Results of Operations ("Management’s Discussion") relates to Fulton Financial Corporation (the "Corporation"), a financial holding company registered under the Bank Holding Company Act of 1956 and incorporated under the laws of the Commonwealth of Pennsylvania in 1982, and its wholly owned subsidiaries. Management’s Discussion should be read in conjunction with the consolidated financial statements and notes presented in this report.

FORWARD-LOOKING STATEMENTS

The Corporation has made, and may continue to make, certain forward-looking statements with respect to its financial condition and results of operations. Do not unduly rely on forward-looking statements. Forward-looking statements can be identified by the use of words such as "may," "should," "will," "could," "estimates," "predicts," "potential," "continue," "anticipates," "believes," "plans," "expects," "future," "intends" and similar expressions which are intended to identify forward-looking statements.  

These forward-looking statements are not guarantees of future performance and are subject to risks and uncertainties, some of which are beyond the Corporation's control and ability to predict, that could cause actual results to differ materially from those expressed in the forward-looking statements. The Corporation undertakes no obligation, other than as required by law, to update or revise any forward-looking statements, whether as a result of new information, future events or otherwise. Many factors could affect future financial results including, without limitation:

• the impact of adverse conditions in the economy and capital markets on the performance of the Corporation’s loan portfolio and demand for the Corporation’s products and services;

• increases in non-performing assets, which may require the Corporation to increase the allowance for credit losses, charge off loans and incur elevated collection and carrying costs related to such non-performing assets;

• investment securities gains and losses, including other-than-temporary declines in the value of securities which may result in charges to earnings;

• the effects of market interest rates, and the relative balances of interest rate-sensitive assets to interest rate-sensitive liabilities, on net interest margin and net interest income;

• the effects of changes in interest rates on demand for the Corporation’s products and services;

• the effects of changes in interest rates or disruptions in liquidity markets on the Corporation’s sources of funding;

• the Corporation’s ability to manage liquidity, both at the holding company level and at its bank subsidiaries;

• the impact of increased regulatory scrutiny of the banking industry;

• the effects of the increasing amounts of time and expense associated with regulatory compliance and risk management;

• the potential for negative consequences from regulatory violations and investigations, including potential supervisory actions and the assessment of fines and penalties;

• the additional time, expense and investment required to comply with, and the restrictions on potential growth and investment activities resulting from, the existing enforcement orders applicable to the Corporation and its bank subsidiaries by federal and state bank regulatory agencies requiring improvement in compliance functions and other remedial actions, or any future enforcement orders;

• the Corporation’s ability to manage the uncertainty associated with the delay in implementing many of the regulations mandated by the Dodd-Frank Act;

• the effects of, and uncertainty surrounding, potential changes in legislation, regulation and government policy as a result of the recent change in federal administration;

• the effects of negative publicity on the Corporation’s reputation;

• the effects of adverse outcomes in litigation and governmental or administrative proceedings;

• the potential to incur losses in connection with repurchase and indemnification payments related to sold loans;

• the Corporation’s ability to successfully transform its business model;

• the Corporation’s ability to achieve its growth plans;

• the effects of competition on deposit rates and growth, loan rates and growth and net interest margin;

• the Corporation’s ability to manage the level of non-interest expenses, including salaries and employee benefits expenses, operating risk losses and goodwill impairment;

• the effects of changes in accounting policies, standards, and interpretations on the Corporation's consolidated balance sheets and consolidated statements of income;

• the impact of operational risks, including the risk of human error, inadequate or failed internal processes and systems, computer and telecommunications systems failures, faulty or incomplete data and an inadequate risk management framework;

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• the impact of failures of third parties upon which the Corporation relies to perform in accordance with contractual arrangements;

• the failure or circumvention of the Corporation’s system of internal controls;

• the loss of, or failure to safeguard, confidential or proprietary information;

• the Corporation’s failure to identify and to address cyber-security risks;

• the Corporation’s ability to keep pace with technological changes;

• the Corporation’s ability to attract and retain talented personnel;

• capital and liquidity strategies, including the Corporation’s ability to comply with applicable capital and liquidity requirements, and the Corporation’s ability to generate capital internally or raise capital on favorable terms;

• the Corporation’s reliance on its subsidiaries for substantially all of its revenues and its ability to pay dividends or other distributions; and

• the effects of any downgrade in the Corporation’s credit ratings on its borrowing costs or access to capital markets.

RESULTS OF OPERATIONS

Overview

Fulton Financial Corporation is a financial holding company comprised of six wholly owned bank subsidiaries which provide a full range of retail and commercial financial services through locations in Pennsylvania, Delaware, Maryland, New Jersey and Virginia and eight wholly owned non-bank subsidiaries. The Corporation generates the majority of its revenue through net interest income, or the difference between interest earned on loans, investments and other interest-earning assets, and interest paid on deposits and borrowings. Growth in net interest income is dependent upon balance sheet growth and maintaining or increasing the net interest margin, which is net interest income (fully taxable-equivalent, or "FTE") as a percentage of average interest-earning assets. The Corporation also generates revenue through fees earned on the various services and products offered to its customers and through gains on sales of assets, such as loans, investments, or properties. Offsetting these revenue sources are provisions for credit losses on loans, non-interest expenses and income taxes.

The following table presents a summary of the Corporation’s earnings and selected performance ratios:

	As of or for the Three months ended June 30						As of or for the Six months ended June 30
	2017			2016			2017			2016
Net income (in thousands)	$	45,467		$	39,750		$	88,847		$	78,007
Diluted net income per share	$	0.26		$	0.23		$	0.51		$	0.45
Return on average assets	0.94		%	0.88		%	0.93		%	0.87		%
Return on average equity	8.36		%	7.65		%	8.29		%	7.56		%
Return on average tangible equity (1)	11.06		%	10.26		%	11.00		%	10.17		%
Net interest margin (2)	3.29		%	3.20		%	3.28		%	3.22		%
Efficiency ratio (1)	65.33		%	67.59		%	64.80		%	67.96		%
Non-performing assets to total assets	0.75		%	0.76		%	0.75		%	0.76		%
Annualized net charge-offs to average loans	0.11		%	0.10		%	0.10		%	0.15		%

(1) Ratio represents a financial measure derived by methods other than U.S. Generally Accepted Accounting Principles ("U.S. GAAP"). See reconciliation of this non-U.S. GAAP financial measure to the most comparable U.S. GAAP measure under the heading, "Supplemental Reporting of Non-U.S.GAAP Based Financial Measures" at the end of this "Overview" section.

(2) Presented on an FTE basis, using a 35% federal tax rate and statutory interest expense disallowances. See also the “Net Interest Income” section of Management’s Discussion.

Net income for the three and six months ended June 30, 2017 increased $5.7 million, or 14.4%, and $10.8 million, or 13.9%, respectively, compared to the same periods in 2016.The increases were mainly due to higher net interest income and non-interest income, partially offset by increases in the provision for credit losses and non-interest expenses.

The following is a summary of financial highlights for the three and six months ended June 30, 2017:

FTE Net Interest Income and Net Interest Margin - For the three and six months ended June 30, 2017, FTE net interest income increased $13.5 million, or 10.1%, and $22.7 million, or 8.5%, in comparison to the same periods in 2016. These increases were

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driven by growth in interest-earning assets and 9 and 6 basis points increases in the net interest margin during the three and six months ended June 30, 2017, respectively.

Average interest-earning assets increased $1.2 billion, or 7.0%, in the second quarter of 2017 in comparison to the same period in 2016, mainly due to a $1.2 billion, or 8.3%, increase in average loans and a $48.7 million, or 2.0%, increase in average investment securities, partially offset by a $32.5 million, or 9.1%, decrease in average other interest-earning assets. Average interest-bearing liabilities increased $747.9 million, or 6.4%, primarily due to a $413.1 million, or 4.0%, increase in average interest-bearing deposits, a $229.4 million, or 56.8%, increase in average short-term borrowings and a $105.3 million, or 10.9%, increase in average Federal Home Loan Bank ("FHLB") advances and long-term debt. Additional funding to support the increase in average interest-earning assets was provided by a $309.9 million, or 7.6%, increase in average noninterest-bearing deposits.

During the first six months of 2017, average interest-earning assets increased $1.1 billion, or 6.7%, in comparison to the same period in 2016, mainly due to a $1.1 billion, or 7.8%, increase in average loans and a $77.6 million, or 3.2%, increase in average investment securities, partially offset by a $39.3 million, or 11.0%, decrease in average other interest-earning assets. Average interest-bearing liabilities increased $696.6 million, or 6.0%, primarily due to a $379.8 million, or 3.7%, increase in average interest-bearing deposits, a $248.0 million, or 58.4%, increase in average short-term borrowings and a $68.8 million, or 7.2%, increase in average FHLB advances and long-term debt. Additional funding to support the increase in average interest-earning assets was provided by a $322.1 million, or 8.0%, increase in average noninterest-bearing deposits.

Long-term Debt- In March 2017, the Corporation issued $125.0 million of senior notes, with a fixed rate of 3.60% and an effective rate of 3.95%, that mature in 2022. A portion of the net proceeds from this issuance were used on May 1, 2017 to repay $100.0 million of 10-year subordinated notes, which matured and carried a fixed rate of 5.75% and an effective rate of 5.96%.

Loan Growth - The $1.2 billion and $1.1 billion growth in average loans for the second quarter and the first six months of 2017, respectively, in comparison to the same periods in 2016, was primarily recognized in the commercial mortgage, residential mortgage and commercial loan portfolios. The growth occurred across all geographic markets, but was predominately attributable to the Pennsylvania and Maryland markets.

Asset Quality - The Corporation recorded a $6.7 million provision for credit losses for the three months ended June 30, 2017, compared to a $2.5 million provision for the same period in 2016. For the six months ended June 30, 2017, the Corporation recorded an $11.5 million provision for credit losses compared to a $4.0 million provision for the same period in 2016. The increases in provision for credit losses in 2017 were largely due to growth in the loan portfolio, with generally stable credit metrics.

Annualized net charge-offs to average loans outstanding were 0.11% for the second quarter of 2017, compared to 0.10% for the second quarter of 2016. For the first six months of 2017, annualized net charge-offs to average loans outstanding improved to 0.10%, compared to 0.15% for the same period of 2016.

Non-performing assets increased $7.5 million, or 5.4%, as of June 30, 2017 compared to June 30, 2016. However, as a percent of total assets, non-performing assets remained fairly consistent at 0.75% and 0.76%, respectively, as of those dates. The total delinquency rate improved to 1.20% as of June 30, 2017, from 1.30% as of June 30, 2016.

Non-interest Income - For the three and six months ended June 30, 2017, non-interest income, excluding investment securities gains, increased $4.9 million, or 10.6%, and $8.3 million, or 9.3%, in comparison to the same periods in 2016, respectively. The increases were primarily driven by higher commercial loan interest rate swap fees, investment management and trust services income and mortgage banking income. Mortgage servicing income increased $3.4 million during the first half of 2017 compared to the same period in 2016 as a result of a $1.3 million reduction to the mortgage servicing rights ("MSRs") valuation allowance during the second quarter of 2017, which was originally established in June 2016 through an impairment charge of $1.7 million. Excluding the impact of the MSR valuation allowance adjustments, mortgage servicing income increased $346,000, or 13.6%.

Investment securities gains for the three and six months ended June 30, 2017 were $1.4 million and $2.5 million, respectively, as compared to $76,000 and $1.0 million for the same periods in 2016, respectively.

Non-interest Expense - For the three and six months ended June 30, 2017, non-interest expense increased $11.1 million, or 9.1%, and $12.9 million, or 5.3%, respectively, in comparison to the same periods of 2016. The increases were primarily driven by higher salaries and employee benefits, amortization of certain tax credit investments, other outside services and software expenses, partially offset by decreases in data processing expense and FDIC insurance expense. Amortization of certain new tax credit investments was classified in non-interest expense rather than income tax expense in 2017. There was no impact on net income as a result of the different classifications of the amortization for these new tax credit investments as the increases in non-interest expense were offset by decreases in income tax expense.

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Supplemental Reporting of Non-U.S. GAAP Based Financial Measures

This Quarterly Report on Form 10-Q contains supplemental financial information, as detailed below, which has been derived by methods other than U.S. GAAP. The Corporation has presented these non-U.S. GAAP financial measures because it believes that these measures provide useful and comparative information to assess trends in the Corporation's results of operations. Presentation of these non-U.S. GAAP financial measures is consistent with how the Corporation evaluates its performance internally, and these non-U.S. GAAP financial measures are frequently used by securities analysts, investors and other interested parties in the evaluation of companies in the Corporation's industry. Management believes that these non-U.S. GAAP financial measures, in addition to U.S. GAAP measures, are also useful to investors to evaluate the Corporation's results. Investors should recognize that the Corporation's presentation of these non-U.S. GAAP financial measures might not be comparable to similarly-titled measures of other companies. These non-U.S. GAAP financial measures should not be considered a substitute for U.S. GAAP basis measures, and the Corporation strongly encourages a review of its consolidated financial statements in their entirety. Following are reconciliations of these non-U.S. GAAP financial measures to the most directly comparable U.S. GAAP measure as of and for the three and six months ended June 30:

	As of or for the Three months ended June 30						As of or for the Six months ended June 30
	2017			2016			2017			2016
	(dollars in thousands)
Return on average tangible equity
Net income - numerator	$	45,467		$	39,750		$	88,847		$	78,007
Average common shareholders' equity	$	2,181,189		$	2,089,915		$	2,160,980		$	2,074,357
Less: Average goodwill and intangible assets	(531,556		)	(531,556		)	(531,556		)	(531,556		)
Average tangible shareholders' equity - denominator	$	1,649,633		$	1,558,359		$	1,629,424		$	1,542,801
Return on average tangible equity, annualized	11.06		%	10.26		%	11.00		%	10.17		%
Efficiency ratio
Non-interest expense	$	132,695		$	121,637		$	254,970		$	242,050
Less: Amortization of tax credit investments (1)	(3,151		)	—			(4,149		)	—
Numerator	$	129,544		$	121,637		$	250,821		$	242,050
Net interest income (fully taxable equivalent) (2)	$	147,349		$	133,890		$	290,593		$	267,916
Plus: Total Non-interest income	52,371			46,137			99,044			89,274
Less: Investment securities gains, net	(1,436		)	(76		)	(2,542		)	(1,023		)
Denominator	$	198,284		$	179,951		$	387,095		$	356,167
Efficiency ratio	65.3		%	67.6		%	64.8		%	68.0		%

(1) Amortization expense for tax credit investments that are considered to be qualified affordable housing investments under applicable accounting guidance is included in income taxes. Amortization expense for other tax credit investments that are not considered to be affordable housing investments is included in non-interest expense. If amortization expense for all tax credit investments were recorded in income taxes, the effective tax rate for the quarter ended June 30, 2017 would have been 21.2% vs 16.6%.

(2) Presented on an FTE basis, using a 35% federal tax rate and statutory interest expense disallowances. See also the “Net Interest Income” section of Management’s Discussion.

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Quarter Ended June 30, 2017 compared to the Quarter Ended June 30, 2016

Net Interest Income

FTE net interest income increased $13.5 million, to $147.3 million, in the second quarter of 2017, from $133.9 million in the second quarter of 2016. The increase was due to a $1.2 billion, or 7.0%, increase in interest-earning assets and a 9 basis points, or 2.8%, increase in net interest margin, to 3.29%, for the second quarter of 2017 compared to 3.20% for the second quarter of 2016. The following table provides a comparative average balance sheet and net interest income analysis for those periods. Interest income and yields are presented on an FTE basis, using a 35% federal tax rate and statutory interest expense disallowances. The discussion following this table is based on these FTE amounts.

	Three months ended June 30
	2017								2016
	Average Balance			Interest (1)			Yield/ Rate		Average Balance			Interest (1)			Yield/ Rate
ASSETS	(dollars in thousands)
Interest-earning assets:
Loans, net of unearned income (2)	$	15,127,205		$	152,649		4.05	%	$	13,966,024		$	138,317		3.98	%
Taxable investment securities (3)	2,090,120			11,473			2.12		2,127,780			11,159			2.10
Tax-exempt investment securities (3)	404,680			4,394			4.34		314,851			3,570			4.54
Equity securities (3)	10,759			148			5.52		14,220			185			5.23
Total investment securities	2,505,559			16,015			2.56		2,456,851			14,914			2.43
Loans held for sale	19,750			201			4.07		19,449			188			3.87
Other interest-earning assets	324,719			802			0.99		357,211			864			0.96
Total interest-earning assets	17,977,233			169,667			3.78	%	16,799,535			154,283			3.69	%
Noninterest-earning assets:
Cash and due from banks	103,078								100,860
Premises and equipment	218,075								227,517
Other assets	1,174,745								1,189,226
Less: Allowance for loan losses	(172,156		)						(164,573		)
Total Assets	$	19,300,975							$	18,152,565
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Demand deposits	$	3,690,059		$	2,780		0.30	%	$	3,454,031		$	1,527		0.18	%
Savings and money market deposits	4,315,495			2,710			0.25		3,989,988			1,886			0.19
Time deposits	2,696,033			7,394			1.10		2,844,434			7,474			1.06
Total interest-bearing deposits	10,701,587			12,884			0.48		10,288,453			10,887			0.43
Short-term borrowings	633,102			974			0.61		403,669			217			0.21
FHLB advances and other long-term debt	1,070,845			8,460			3.16		965,526			9,289			3.86
Total interest-bearing liabilities	12,405,534			22,318			0.72	%	11,657,648			20,393			0.70	%
Noninterest-bearing liabilities:
Demand deposits	4,387,517								4,077,642
Other	326,735								327,360
Total Liabilities	17,119,786								16,062,650
Shareholders’ equity	2,181,189								2,089,915
Total Liabilities and Shareholders’ Equity	$	19,300,975							$	18,152,565
Net interest income/net interest margin (FTE)				147,349			3.29	%				133,890			3.20	%
Tax equivalent adjustment				(5,786		)						(4,974		)
Net interest income				$	141,563							$	128,916

(1) Includes dividends earned on equity securities.

(2) Includes non-performing loans.

(3) Balances include amortized historical cost for available for sale securities; the related unrealized holding gains (losses) are included in other assets.

45

The following table summarizes the changes in FTE interest income and interest expense resulting from changes in average balances (volume) and changes in rates for the three months ended June 30, 2017 in comparison to the three months ended June 30, 2016:

	2017 vs. 2016 Increase (Decrease) due to change in
	Volume			Rate			Net
	(in thousands)
Interest income on:
Loans, net of unearned income	$	11,969		$	2,363		$	14,332
Taxable investment securities	29			285			314
Tax-exempt investment securities	978			(154		)	824
Equity securities	(47		)	10			(37		)
Loans held for sale	3			10			13
Other interest-earning assets	(78		)	16			(62		)
Total interest income	$	12,854		$	2,530		$	15,384
Interest expense on:
Demand deposits	$	112		$	1,141		$	1,253
Savings and money market deposits	165			659			824
Time deposits	(389		)	309			(80		)
Short-term borrowings	177			580			757
FHLB advances and other long-term debt	949			(1,778		)	(829		)
Total interest expense	$	1,014		$	911		$	1,925

Note: Changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of direct changes that are attributable to each component.

As summarized above, the increase in average interest-earning assets, primarily loans, since the second quarter of 2016 resulted in a $12.9 million increase in FTE interest income. The 9 basis points increase in the yield on average interest-earning assets resulted in a $2.5 million increase in FTE interest income. The yield on the loan portfolio increased 7 basis points, or 1.8%, from the second quarter of 2016, the result of federal funds rate increases that occurred in December 2016 and March 2017, which primarily impacted variable rate loans and adjustable rate loans that repriced in the first half of 2017.

Average loans and average FTE yields, by type, are summarized in the following table:

	Three months ended June 30								Increase (Decrease) in
	2017				2016				Balance
	Balance		Yield		Balance		Yield		$			%
	(dollars in thousands)
Real estate – commercial mortgage	$	6,163,844	4.00	%	$	5,557,680	4.00	%	$	606,164		10.9	%
Commercial – industrial, financial and agricultural	4,221,025		4.00		4,080,524		3.81		140,501			3.4
Real estate – residential mortgage	1,707,929		3.77		1,399,851		3.78		308,078			22.0
Real estate – home equity	1,587,680		4.33		1,656,140		4.10		(68,460		)	(4.1	)
Real estate – construction	897,321		3.98		820,881		3.81		76,440			9.3
Consumer	300,966		5.03		272,293		5.37		28,673			10.5
Leasing, other and overdrafts	248,440		5.04		178,655		6.22		69,785			39.1
Total	$	15,127,205	4.05	%	$	13,966,024	3.98	%	$	1,161,181		8.3	%

Average loans increased $1.2 billion, or 8.3%, compared to the second quarter of 2016. The increase was driven largely by growth in the commercial mortgage and residential mortgage portfolios, as well as the commercial loan portfolio. The $606.2 million, or 10.9%, increase in commercial mortgages occurred in both owner-occupied and investment property typesand was realized in all geographic markets, but predominately in the Pennsylvania, Maryland and Delaware markets. The $308.1 million, or 22.0%, increase in residential mortgages was also experienced across all geographic markets, with the most significant increases occurring in the Maryland, Virginia and Pennsylvania markets. This growth was primarily the result of a strategic decision to retain certain

46

mortgage loans. The $140.5 million, or 3.4%, increase in commercial loans was spread across a broad range of industries and concentrated in the Pennsylvania market.

Average total interest-bearing liabilities increased $747.9 million, or 6.4%, compared to the second quarter of 2016. Interest expense increased $1.9 million, or 9.4%, to $22.3 million in the second quarter of 2017. Average deposits and average interest rates, by type, are summarized in the following table:

	Three months ended June 30								Increase (Decrease) in Balance
	2017				2016
	Balance		Rate		Balance		Rate		$			%
	(dollars in thousands)
Noninterest-bearing demand	$	4,387,517	—	%	$	4,077,642	—	%	$	309,875		7.6	%
Interest-bearing demand	3,690,059		0.30		3,454,031		0.18		236,028			6.8
Savings and money market accounts	4,315,495		0.25		3,989,988		0.19		325,507			8.2
Total demand and savings	12,393,071		0.18		11,521,661		0.12		871,410			7.6
Time deposits	2,696,033		1.10		2,844,434		1.06		(148,401		)	(5.2	)
Total deposits	$	15,089,104	0.34	%	$	14,366,095	0.30	%	$	723,009		5.0	%

The $871.4 million, or 7.6%, increase in total demand and savings accounts was primarily due to a $487.4 million, or 9.0%, increase in personal account balances, a $308.3 million, or 7.4%, increase in business account balances and a $65.7 million, or 3.5%, increase in municipal account balances. The average cost of total deposits increased 4 basis points to 0.34% in the second quarter of 2017 compared, to 0.30% in the second quarter of 2016.

Average borrowings and interest rates, by type, are summarized in the following table:

	Three months ended June 30								Increase
	2017				2016				in Balance
	Balance		Rate		Balance		Rate		$		%
	(dollars in thousands)
Short-term borrowings:
Customer repurchase agreements and short-term promissory notes	$	277,211	0.09	%	$	258,130	0.09	%	$	19,081	7.4	%
Federal funds purchased	242,375		1.03		138,012		0.43		104,363		75.6
Short-term FHLB advances (1)	113,516		0.99		7,527		0.45		105,989		N/M
Total short-term borrowings	633,102		0.61		403,669		0.21		229,433		56.8
Long-term debt:
FHLB advances	652,192		2.27		603,700		3.17		48,492		8.0
Other long-term debt	418,653		4.56		361,826		5.01		56,827		15.7
Total long-term debt	1,070,845		3.16		965,526		3.86		105,319		10.9
Total borrowings	$	1,703,947	2.22	%	$	1,369,195	2.78	%	$	334,752	24.4	%

N/M - Not meaningful

(1) Represents FHLB advances with an original maturity term of less than one year.

Average total short-term borrowings increased $229.4 million, or 56.8%, as a result of average loan growth out-pacing the increase in average deposits.

Average long-term debt increased $105.3 million, or 10.9%, due mainly to the $125 million of senior notes issued in March 2017, partially offset by the repayment of $100.0 million of 10-year subordinated notes, which matured on May 1, 2017.The 70 basis point, or 18.1%, decrease in the average rate on long-term debt was primarily a result of $200 million of FHLB advances that were refinanced in December of 2016, which reduced the weighted average rate on these advances from 4.03% to 2.40%.

Provision for Credit Losses

The provision for credit losses was $6.7 million for the second quarter of 2017, an increase of $4.2 million from the second quarter of 2016, driven mainly by loan growth and the impact of normal changes in the risk characteristics of the loan portfolio.

47

The provision for credit losses is recognized as an expense in the consolidated statements of income and is the amount necessary to adjust the allowance for credit losses to its appropriate balance, as determined through the Corporation's allowance methodology. The Corporation determines the appropriate level of the allowance for credit losses based on many quantitative and qualitative factors, including, but not limited to: the size and composition of the loan portfolio, changes in risk ratings, changes in collateral values, delinquency levels, historical losses and economic conditions. See the "Financial Condition" section of Management's Discussion under the heading "Provision and Allowance for Credit Losses" for details related to the Corporation's provision and allowance for credit losses.

Non-Interest Income

The following table presents the components of non-interest income:

	Three months ended June 30					Increase (Decrease)
	2017		2016			$			%
	(dollars in thousands)
Other service charges and fees:
Merchant fees	$	4,531	$	4,252		$	279		6.6	%
Commercial loan interest rate swap fees	3,768		2,751			1,017			37.0
Debit card income	2,884		2,719			165			6.1
Letter of credit fees	1,109		1,162			(53		)	(4.6	)
Other	2,050		2,099			(49		)	(2.3	)
Total other service charges and fees	14,342		12,983			1,359			10.5
Service charges on deposit accounts:
Overdraft fees	5,648		5,384			264			4.9
Cash management fees	3,614		3,580			34			0.9
Other	3,652		3,932			(280		)	(7.1	)
Total service charges on deposit accounts	12,914		12,896			18			0.1
Investment management and trust services	12,132		11,247			885			7.9
Mortgage banking income:
Gains on sales of mortgage loans	3,488		4,440			(952		)	(21.4	)
Mortgage servicing income	2,653		(543		)	3,196			N/M
Total mortgage banking income	6,141		3,897			2,244			57.6
Credit card income	2,666		2,596			70			2.7
Other income	2,740		2,442			298			12.2
Total, excluding investment securities gains, net	50,935		46,061			4,874			10.6
Investment securities gains, net	1,436		76			1,360			N/M
Total	$	52,371	$	46,137		$	6,234		13.5	%

N/M - Not meaningful

Excluding investment securities gains, non-interest income increased $4.9 million, or 10.6%. Other service charges and fees increased $1.4 million, or 10.5%, mainly due to a $1.0 million increase in commercial loan interest rate swap fees, driven by loan growth and a favorable interest rate environment.

Investment management and trust services income increased $885,000, or 7.9%, with growth in both trust commissions and brokerage income, due to overall market performance and an increase in assets under management.

Gains on sales of mortgage loans decreased $952,000, or 21.4%, compared to the same period in 2016, as both volumes and pricing spreads decreased. Mortgage servicing income increased $3.2 million compared to the second quarter of 2016. The second quarter of 2017 included a $1.3 million reduction to the MSRs valuation allowance, which was originally established in June 2016 through an impairment charge of $1.7 million. Excluding the impact of the MSR valuation allowance adjustments, mortgage servicing income increased $196,000, or 16.9%.

Investment securities gains increased $1.4 million from the second quarter of 2016. See Note 4, "Investment Securities," in the Notes to Consolidated Financial Statements for additional details.

48

Non-Interest Expense

The following table presents the components of non-interest expense:

	Three months ended June 30				Increase (Decrease)
	2017		2016		$			%
	(dollars in thousands)
Salaries and employee benefits	$	74,496	$	70,029	$	4,467		6.4	%
Net occupancy expense	12,316		11,811		505			4.3
Other outside services	7,708		5,508		2,200			39.9
Data processing	4,619		5,476		(857		)	(15.7	)
Software	4,435		3,953		482			12.2
Amortization of tax credit investments	3,151		—		3,151			N/M
Equipment expense	3,034		2,872		162			5.6
Professional fees	2,931		3,353		(422		)	(12.6	)
FDIC insurance expense	2,366		2,960		(594		)	(20.1	)
Marketing	2,234		1,916		318			16.6
Other	15,405		13,759		1,646			12.0
Total	$	132,695	$	121,637	$	11,058		9.1	%

N/M - Not meaningful

The increase in salaries and employee benefits expense was driven entirely by salaries, reflecting normal merit increases and an increase in staffing levels. Average full-time equivalent employees increased 2.1% to 3,564 in 2017, as compared to 3,492 in 2016.

Other outside services increased $2.2 million, or 39.9%, largely due to pre-bank consolidation efforts and the timing of expenses for various engagements.

In 2017, amortization expense on certain new tax credit investments was classified in non-interest expense, rather than income tax expense, as further discussed under income taxes below.

Software expense increased $482,000, or 12.2%, largely due to investments in technology solutions. Data processing expense decreased $857,000, or 15.7%, due to benefits from renegotiated contracts. The $422,000, or 12.6%, decrease in professional fees was driven by lower legal expenses. FDIC insurance expense decreased $594,000, or 20.1%, as the assessment rates for banks decreased when the Deposit Insurance Fund (DIF) exceeded 1.15% of the deposit base in 2016. Marketing expense increased $318,000, or 16.6%, compared to the second quarter of 2016, due to an increase in the number of marketing promotions.

Other expenses increased $1.6 million due mainly to a $440,000 loss on the planned sale of the student loan portfolio and higher state taxes resulting from legislated increases in the Pennsylvania bank shares tax rate, and certain sales tax liabilities.

Income Taxes

Income tax expense for the second quarter of 2017 was $9.1 million, a $2.1 million, or 18.7%, decrease from $11.2 million for the second quarter of 2016.

The Corporation’s effective tax rate was 16.6% in the second quarter of 2017, as compared to 21.9% in the second quarter of 2016. Theeffective tax rate is generally lower than the federal statutory rate of 35% due to tax-exempt interest income earned on loans, investments in tax-free municipal securities, credits earned from community development investments in partnerships that generate tax credits under various federal programs and excess tax benefits realized on stock-based compensation. In 2017, amortization of certain new tax credit investments was included in non-interest expense, rather than as a component of income tax expense. If the amortization had been included as a component of income tax expense, the effective tax rate for the second quarter would have been 21.2%.In addition, in the second quarter of 2017, the Corporation realized $1.6 million of excess tax benefits mainly related to vesting employee stock awards.

49

Six Months Ended June 30, 2017 compared to the Six Months Ended June 30, 2016

Net Interest Income

FTE net interest income increased $22.7 million, to $290.6 million, in the first six months of 2017, from $267.9 million in the same period of 2016. The increase was due to a $1.1 billion, or 6.7%, increase in interest-earning assets and a 6 basis points, or 1.9%, increase in net interest margin, to 3.28%, for the first six months of 2017 compared to 3.22% for the same period of 2016. The following table provides a comparative average balance sheet and net interest income analysis for those periods. Interest income and yields are presented on an FTE basis, using a 35% federal tax rate and statutory interest expense disallowances. The discussion following this table is based on these FTE amounts.

	Six months ended June 30
	2017								2016
	Average Balance			Interest  (1)			Yield/ Rate		Average Balance			Interest  (1)			Yield/ Rate
ASSETS	(dollars in thousands)
Interest-earning assets:
Loans, net of unearned income (2)	$	14,993,129		$	299,299		4.02	%	$	13,909,722		$	276,212		3.99	%
Taxable investment securities (3)	2,117,733			23,387			2.16		2,154,187			23,162			2.15
Tax-exempt investment securities (3)	404,271			8,777			4.34		287,123			6,708			4.67
Equity securities (3)	11,247			324			5.81		14,303			403			5.67
Total investment securities	2,533,251			32,488			2.57		2,455,613			30,273			2.47
Loans held for sale	17,814			388			4.36		15,850			319			4.03
Other interest-earning assets	318,542			1,644			1.03		357,887			1,762			0.98
Total interest-earning assets	17,862,736			333,819			3.76	%	16,739,072			308,566			3.70	%
Noninterest-earning assets:
Cash and due from banks	109,766								99,654
Premises and equipment	217,974								226,901
Other assets	1,162,254								1,163,259
Less: Allowance for loan losses	(171,151		)						(165,972		)
Total Assets	$	19,181,579							$	18,062,914
LIABILITIES AND EQUITY
Interest-bearing liabilities:
Demand deposits	$	3,670,603		$	5,019		0.28	%	$	3,446,193		$	3,021		0.18	%
Savings deposits	4,255,190			4,921			0.23		3,961,405			3,690			0.19
Time deposits	2,717,624			14,745			1.09		2,856,044			14,903			1.05
Total interest-bearing deposits	10,643,417			24,685			0.47		10,263,642			21,614			0.42
Short-term borrowings	672,580			1,829			0.54		424,535			485			0.23
FHLB advances and other long-term debt	1,030,667			16,712			3.25		961,870			18,551			3.87
Total interest-bearing liabilities	12,346,664			43,226			0.70	%	11,650,047			40,650			0.70	%
Noninterest-bearing liabilities:
Demand deposits	4,344,859								4,022,764
Other	329,076								315,746
Total Liabilities	17,020,599								15,988,557
Shareholders’ equity	2,160,980								2,074,357
Total Liabilities and Shareholders’ Equity	$	19,181,579							$	18,062,914
Net interest income/net interest margin (FTE)				290,593			3.28	%				267,916			3.22	%
Tax equivalent adjustment				(11,451		)						(9,946		)
Net interest income				$	279,142							$	257,970

(1) Includes dividends earned on equity securities.

(2) Includes non-performing loans.

(3) Balances include amortized historical cost for available for sale securities; the related unrealized holding gains (losses) are included in other assets.

50

The following table summarizes the changes in FTE interest income and interest expense resulting from changes in average balances (volume) and changes in rates for the six months ended June 30, 2017 in comparison to the same period of 2016:

	2017 vs. 2016 Increase (Decrease) due to change in
	Volume			Rate			Net
	(in thousands)
Interest income on:
Loans, net of unearned income	$	21,020		$	2,067		$	23,087
Taxable investment securities	54			171			225
Tax-exempt investment securities	2,559			(490		)	2,069
Equity securities	(89		)	10			(79		)
Loans held for sale	41			28			69
Other interest-earning assets	(203		)	85			(118		)
Total interest income	$	23,382		$	1,871		$	25,253
Interest expense on:
Demand deposits	$	223		$	1,775		$	1,998
Savings deposits	287			944			1,231
Time deposits	(758		)	600			(158		)
Short-term borrowings	398			946			1,344
FHLB advances and other long-term debt	1,245			(3,084		)	(1,839		)
Total interest expense	$	1,395		$	1,181		$	2,576

Note: Changes which are partially attributable to both volume and rate are allocated to the volume and rate components presented above based on the percentage of direct changes that are attributable to each component.

As summarized above, the increase in average interest-earning assets, primarily loans, in comparison to the first six months of 2016 resulted in a $23.4 million increase in FTE interest income. The 6 basis points increase in the yield on average interest-earning assets resulted in a $1.9 million increase in FTE interest income. The yield on the loan portfolio increased 3 basis points, or 0.8%, from the same period of 2016, the result of federal funds rate increases that occurred in December 2016 and March 2017, which impacted variable rate loans and adjustable rate loans that repriced in the first half of 2017.

Average loans and average FTE yields, by type, are summarized in the following table:

	Six months ended June 30								Increase (Decrease)
	2017				2016				in Balance
	Balance		Yield		Balance		Yield		$			%
	(dollars in thousands)
Real estate – commercial mortgage	$	6,101,836	3.99	%	$	5,522,550	4.02	%	$	579,286		10.5	%
Commercial – industrial, financial and agricultural	4,213,094		3.95		4,087,897		3.80		125,197			3.1
Real estate – residential mortgage	1,672,994		3.77		1,390,631		3.78		282,363			20.3
Real estate – home equity	1,600,394		4.26		1,665,086		4.10		(64,692		)	(3.9	)
Real estate – construction	869,299		3.98		806,448		3.81		62,851			7.8
Consumer	292,704		5.14		267,794		5.44		24,910			9.3
Leasing, other and overdrafts	242,808		5.06		169,316		6.81		73,492			43.4
Total	$	14,993,129	4.02	%	$	13,909,722	3.99	%	$	1,083,407		7.8	%

Average loans increased $1.1 billion, or 7.8%, compared to the first six months of 2016.The increase was driven largely by growth in the commercial mortgage and residential mortgage portfolios, as well as the commercial loan, construction and leasing portfolios. The $579.3 million, or 10.5%, increase in commercial mortgages occurred in both owner-occupied and investment property types and was realized in all geographic markets, but predominantly in the Pennsylvania, Maryland and Delaware markets. The $282.4 million, or 20.3%, increase in residential mortgages was also experienced across all geographic markets, with the most significant increases occurring in the Maryland and Virginia markets. This growth has been primarily the result of a strategic decision to

51

retain certain mortgage loans. The $125.2 million, or 3.1%, increase in commercial loans was spread across a broad range of industries and concentrated in the Pennsylvania market.

Average total interest-bearing liabilities for the first six months of 2017 increased $696.6 million, or 6.0%, compared to the same period of 2016. Interest expense increased $2.6 million, or 6.3%, to $43.2 million in the first half of 2017. Average deposits and average interest rates, by type, are summarized in the following table:

	Six months ended June 30								Increase (Decrease) in Balance
	2017				2016
	Balance		Rate		Balance		Rate		$			%
	(dollars in thousands)
Noninterest-bearing demand	$	4,344,859	—	%	$	4,022,764	—	%	$	322,095		8.0	%
Interest-bearing demand	3,670,603		0.28		3,446,193		0.18		224,410			6.5
Savings	4,255,190		0.23		3,961,405		0.19		293,785			7.4
Total demand and savings	12,270,652		0.16		11,430,362		0.12		840,290			7.4
Time deposits	2,717,624		1.09		2,856,044		1.05		(138,420		)	(4.8	)
Total deposits	$	14,988,276	0.33	%	$	14,286,406	0.30	%	$	701,870		4.9	%

The $840.3 million, or 7.4%, increase in total demand and savings accounts was primarily due to a $478.6 million, or 8.9%, increase in personal account balances, a $291.3 million, or 7.1%, increase in business account balances and a $55.7 million, or 3.1%, increase in municipal account balances. The average cost of total deposits increased 3 basis points to 0.33% in the first half of 2017, compared to 0.30% in the same period in 2016.

Average borrowings and interest rates, by type, are summarized in the following table:

	Six months ended June 30								Increase (Decrease)
	2017				2016				in Balance
	Balance		Rate		Balance		Rate		$		%
	(dollars in thousands)
Short-term borrowings:
Customer repurchase agreements	$	199,945	0.10	%	$	176,001	0.11	%	$	23,944	13.6	%
Customer short-term promissory notes	78,348		0.05		75,774		0.04		2,574		3.4
Total short-term customer funding	278,293		0.08		251,775		0.09		26,518		10.5
Federal funds purchased	275,116		0.87		160,991		0.42		114,125		70.9
Short-term FHLB advances (1)	119,171		0.87		11,769		0.46		107,402		N/M
Total short-term borrowings	672,580		0.54		424,535		0.23		248,045		58.4
Long-term debt:
FHLB advances	629,141		2.31		600,026		3.18		29,115		4.9
Other long-term debt	401,526		4.73		361,844		5.00		39,682		11.0
Total long-term debt	1,030,667		3.25		961,870		3.87		68,797		7.2
Total borrowings	$	1,703,247	2.18	%	$	1,386,405	2.75	%	$	316,842	22.9	%

N/M - Not meaningful

(1) Represents FHLB advances with an original maturity term of less than one year.

Average total short-term borrowings increased $248.0 million, or 58.4%, as a result of loan growth out-pacing the increase in deposits. The increase in average short-term borrowings contributed $398,000 of additional interest expense while the rate on average short-term borrowings increased 31 basis points, contributing an additional $946,000 to interest expense.

Average long-term debt increased $68.8 million, or 7.2%, primarily as a result of the $125 million of senior notes issued in March 2017, partially offset by the repayment of $100.0 million of 10-year subordinated notes, which matured on May 1, 2017.The 62 basis point, or 16.0%, decrease in the average rate on long-term debt was primarily a result of $200 million of FHLB advances that were refinanced in December of 2016, which reduced the weighted average rate on these advances from 4.03% to 2.40%.

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Provision for Credit Losses

The provision for credit losses was $11.5 million for the first six months of 2017, an increase of $7.5 million from the same period of 2016, driven mainly by loan growth and the impact of normal changes in the risk characteristics of the loan portfolio.

The provision for credit losses is recognized as an expense in the consolidated statements of income and is the amount necessary to adjust the allowance for credit losses to its appropriate balance, as determined through the Corporation's allowance methodology. The Corporation determines the appropriate level of the allowance for credit losses based on many quantitative and qualitative factors, including, but not limited to: the size and composition of the loan portfolio, changes in risk ratings, changes in collateral values, delinquency levels, historical losses and economic conditions. See the "Financial Condition" section of Management's Discussion under the heading "Provision and Allowance for Credit Losses" for details related to the Corporation's allowance and provision for credit losses.

Non-Interest Income

The following table presents the components of non-interest income:

	Six months ended June 30				Increase (Decrease)
	2017		2016		$			%
	(dollars in thousands)
Other service charges and fees:
Merchant fees	$	8,138	$	7,935	$	203		2.6	%
Commercial loan interest rate swap fees	6,826		4,193		2,633			62.8
Debit card income	5,549		5,230		319			6.1
Letter of credit fees	2,309		2,308		1			—
Other	3,957		4,067		(110		)	(2.7	)
Total other service charges and fees	26,779		23,733		3,046			12.8
Service charges on deposit accounts:
Overdraft fees	11,117		10,656		461			4.3
Cash management fees	7,151		7,046		105			1.5
Other	7,046		7,752		(706		)	(9.1	)
Total service charges on deposit accounts	25,314		25,454		(140		)	(0.6	)
Investment management and trust services	23,940		22,235		1,705			7.7
Mortgage banking income:
Gains on sales of mortgage loans	6,562		7,110		(548		)	(7.7	)
Mortgage servicing income	4,175		817		3,358			N/M
Total mortgage banking income	10,737		7,927		2,810			35.4
Credit card income	5,314		5,020		294			5.9
Other income	4,418		3,882		536			13.8
Total, excluding investment securities gains, net	96,502		88,251		8,251			9.3
Investment securities gains, net	2,542		1,023		1,519			148.5
Total	$	99,044	$	89,274	$	9,770		10.9	%

N/M - Not meaningful

Excluding investment securities gains, non-interest income increased $8.3 million, or 9.3%. Other service charges and fees increased $3.0 million, or 12.8%, mainly due to a $2.6 million increase in commercial loan interest rate swap fees, driven by loan growth and a favorable interest rate environment.

The $460,000, or 4.3%, increase in overdraft fee income during the six months ended June 30, 2017 in comparison to the same period during 2016 consisted of a $315,000 increase in fees assessed on personal accounts and a $145,000 increase in fees assessed on commercial accounts, due to higher volumes. Other service charges on deposit accounts decreased $705,000, or 9.1%, resulting from changes in customer behavior and the loss of a significant processing customer.

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Investment management and trust services income increased $1.7 million, or 7.7%, with growth in both trust and brokerage income, due to overall market performance and an increase in assets under management.

Gains on sales of mortgage loans decreased $548,000, or 7.7%, compared to the same period in 2016, as volumes decreased while pricing spreads remained flat. Mortgage servicing income increased $3.4 million compared to the same period in 2016. 2017 included a $1.3 million reduction to the MSRs valuation allowance, which was originally established in June 2016 through an impairment charge of $1.7 million. Excluding the impact of the MSR valuation allowance adjustments, mortgage servicing income increased $346,000, or 13.6%.

Gains on sales of investment securities increased $1.5 million compared to the first six months of 2016. See Note 4, "Investment Securities," in the Notes to Consolidated Financial Statements for additional details.

Non-Interest Expense

The following table presents the components of non-interest expense:

	Six months ended June 30				Increase (Decrease)
	2017		2016		$			%
	(dollars in thousands)
Salaries and employee benefits	$	143,732	$	139,401	$	4,331		3.1	%
Net occupancy expense	24,979		24,031		948			3.9
Other outside services	13,254		11,564		1,690			14.6
Data processing	8,905		10,876		(1,971		)	(18.1	)
Software	9,128		7,874		1,254			15.9
Equipment expense	6,393		6,243		150			2.4
Professional fees	5,668		5,686		(18		)	(0.3	)
FDIC insurance expense	4,424		5,909		(1,485		)	(25.1	)
Marketing	4,220		3,540		680			19.2
Amortization of tax credit investments	4,149		—		4,149			N/M
Other	30,118		26,926		3,192			11.9
Total	$	254,970	$	242,050	$	12,920		5.3	%

N/M - Not meaningful

The $4.3 million, or 3.1%, increase in salaries and employee benefits during the six months ended June 30, 2017 in comparison to the same period during 2016 primarily resulted from a $4.7 million, or 4.0%, increase in salaries, resulting from normal merit increases and an increase in staffing levels. Average full-time equivalent employees increased 2.0% to 3,548 as compared to 3,480 in 2016.

Other outside services increased $1.7 million, or 14.6%, largely due to pre-bank consolidation efforts and the timing of expenses for various engagements.

Software expense increased $1.3 million, or 15.9%, largely due to investments in technology solutions. Data processing expense decreased $2.0 million, or 18.1%, due to benefits from renegotiated contracts.

FDIC insurance expense decreased $1.5 million, or 25.1%, as the assessment rates for banks decreased when the DIF exceeded 1.15% of the deposit base in 2016.

Marketing expense increased $680,000, or 19.2%, compared to the first six months of 2016, due to an increase in the number of marketing promotions. In 2017, many of these promotions were related to deposit generation.

In 2017, amortization expense on certain new tax credit investments is being recognized in non-interest expense, rather than income taxes.

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Income Taxes

Income tax expense for the first six months of 2017 was $22.9 million, a $277,000, or 1.2%, decrease from $23.1 million in 2016.

The Corporation’s effective tax rate was 20.5% in the first six months of 2017, as compared to 22.9% in the first six months of

2016. The effective tax rate is generally lower than the federal statutory rate of 35% due to tax-exempt interest income earned on loans, investments in tax-free municipal securities, credits earned from investments in partnerships that generate tax credits under various federal programs and excess tax benefits realized on stock-based compensation. In 2017, amortization of certain new tax credit investments was recorded in non-interest expense, rather than as a component of income tax expense. If the amortization had been included as a component of income tax expense, the effective tax rate for the first six months of 2017 would have been 23.3%. In addition, in 2017, the Corporation realized $2.1 million of excess tax benefits mainly related to vesting employee stock awards.

FINANCIAL CONDITION

The table below presents condensed consolidated ending balance sheets.

					Increase (Decrease)
	June 30, 2017		December 31, 2016		$			%
	(dollars in thousands)
Assets
Cash and due from banks	$	94,938	$	118,763	$	(23,825	)	(20.1	)%
Other interest-earning assets	392,842		291,252		101,590			34.9
Loans held for sale	62,354		28,697		33,657			117.3
Investment securities	2,488,699		2,559,227		(70,528		)	(2.8	)
Loans, net of allowance	15,174,275		14,530,593		643,682			4.4
Premises and equipment	217,558		217,806		(248		)	(0.1	)
Goodwill and intangible assets	531,556		531,556		—			—
Other assets	685,213		666,353		18,860			2.8
Total Assets	$	19,647,435	$	18,944,247	$	703,188		3.7	%
Liabilities and Shareholders’ Equity
Deposits	$	15,357,361	$	15,012,864	$	344,497		2.3	%
Short-term borrowings	694,859		541,317		153,542			28.4
Long-term debt	1,037,961		929,403		108,558			11.7
Other liabilities	365,484		339,548		25,936			7.6
Total Liabilities	17,455,665		16,823,132		632,533			3.8
Total Shareholders’ Equity	2,191,770		2,121,115		70,655			3.3
Total Liabilities and Shareholders’ Equity	$	19,647,435	$	18,944,247	$	703,188		3.7	%

Other Interest-earning Assets

Other interest-earning assets increased $101.6 million, or 34.9%, during the first six months of 2017 as a result of higher balances on deposit with the Federal Reserve Bank, primarily due to a temporary increase in item clearing balances.

Loans Held for Sale

The $33.7 million, or 117.3%, increase in loans held for sale during the first six months of 2017, was mostly due to the reclassification of the student loan portfolio, totaling $28.9 million, from consumer loans. In June 2017, the Corporation determined to sell this portfolio and began discussions with a potential purchaser of this portfolio. The sale is expected to be completed in the third quarter of 2017.

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Investment Securities

The following table presents the carrying amount of investment securities:

					Increase (Decrease)
	June 30, 2017		December 31, 2016		$			%
	(dollars in thousands)
U.S. Government sponsored agency securities	$	6,054	$	134	$	5,920		N/M
State and municipal securities	401,636		391,641		9,995			2.6
Corporate debt securities	88,992		109,409		(20,417		)	(18.7	)
Collateralized mortgage obligations	538,507		593,860		(55,353		)	(9.3	)
Residential mortgage-backed securities	1,213,065		1,317,838		(104,773		)	(8.0	)
Commercial mortgage-backed securities	121,067		24,563		96,504			N/M
Auction rate securities	97,923		97,256		667			0.7
Total debt securities	2,467,244		2,534,701		(67,457		)	(2.7	)
Equity securities	21,455		24,526		(3,071		)	(12.5	)
Total	$	2,488,699	$	2,559,227	$	(70,528	)	(2.8	)%

N/M - Not meaningful

Corporate debt securities decreased $20.4 million, or 18.7%, due to calls and maturities of certain holdings. Collateralized mortgage obligations decreased $55.4 million, or 9.3%, as the Corporation reduced its holdings in lower-coupon investments due to volatility in market pricing. Residential mortgage-backed securities decreased $104.8 million, or 8.0%. Cash flows from both collateralized mortgage obligations and residential mortgage-backed securities were used to partially fund loan growth or were reinvested in commercial mortgage-backed securities to diversify the portfolio.

Loans, net of Unearned Income

The following table presents ending balances of loans outstanding, net of unearned income:

					Increase (Decrease)
	June 30, 2017		December 31, 2016		$			%
	(dollars in thousands)
Real estate – commercial mortgage	$	6,262,008	$	6,018,582	$	243,426		4.0	%
Commercial – industrial, financial and agricultural	4,245,849		4,087,486		158,363			3.9
Real estate – residential mortgage	1,784,712		1,601,994		182,718			11.4
Real estate – home equity	1,579,739		1,625,115		(45,376		)	(2.8	)
Real estate – construction	938,900		843,649		95,251			11.3
Consumer	283,156		291,470		(8,314		)	(2.9	)
Leasing, other and overdrafts	252,253		230,976		21,277			9.2
Loans, net of unearned income	$	15,346,617	$	14,699,272	$	647,345		4.4	%

Loans, net of unearned income, increased $647.3 million, or 4.4%, in comparison to December 31, 2016. In general, this growth resulted from improved business activity and customer sentiment, as well as the addition of commercial relationship managers in 2016. Increases were realized across all of the Corporation's geographic markets.Commercial mortgage loans increased $243.4 million, or 4.0%, in comparison to December 31, 2016, with the growth occurring primarily in the Pennsylvania ($133.0 million, or 4.2%), Maryland ($63.9 million, or 10.3%) and New Jersey ($38.7 million, or 2.7%) markets. Residential mortgage loans increased $182.7 million, or 11.4%, compared to December 31, 2016, with the growth occurring primarily in the Maryland ($72.8 million, or 24.6%), Virginia ($59.0 million, or 19.1%) and Pennsylvania ($30.0 million, or 4.4%) markets.

Commercial loans increased $158.4 million, or 3.9%, in comparison to December 31, 2016, with the growth occurring primarily in the Pennsylvania ($164.8 million, or 5.5%) and New Jersey ($10.4 million, or 2.0%) markets. Construction loans increased $95.3 million, or 11.3%, in comparison to December 31, 2016, with the growth occurring primarily in the Pennsylvania ($46.1

56

million, or 9.4%), Maryland ($27.6 million, or 29.7%) and Delaware ($14.2 million, or 26.4%) markets. Leasing, other and overdrafts increased compared to December 31, 2016 as a result of a $21.6 million increase in the leasing portfolio.

Construction loans include loans to commercial borrowers secured by commercial real estate, loans to commercial borrowers secured by residential real estate, and other construction loans, which represent loans to individuals secured by residential real estate. The following table presents outstanding construction loans and their delinquency rates by these class segments:

	June 30, 2017						December 31, 2016
	Balance		Delinquency Rate (1)		% of Total		Balance		Delinquency Rate (1)		% of Total
	(dollars in thousands)
Commercial	$	728,649	0.1	%	77.6	%	$	644,490	0.2	%	76.4	%
Commercial - residential	157,291		9.7		16.8		142,189		6.0		16.9
Other	52,960		2.1		5.6		56,970		1.9		6.7
Total Real estate - construction	$	938,900	1.8	%	100.0	%	$	843,649	1.3	%	100.0	%

(1) Represents all accruing loans 30 days or more past due and non-accrual loans as a percentage of total loans in each class segment.

The Corporation does not have a significant concentration of credit risk with any single borrower, industry or geographical location. Approximately $7.2 billion, or 46.9%, of the loan portfolio was in commercial mortgage and construction loans as of June 30, 2017. The Corporation's maximum total lending commitment to an individual borrowing relationship was $50.0 million as of June 30, 2017. In addition to its policy of limiting the maximum total lending commitment to any individual borrowing relationship to $50.0 million, the Corporation has established lower total lending limits for certain types of lending commitments, and lower total lending limits based on the Corporation's internal risk rating of an individual borrowing relationship at the time the lending commitment is approved. As of June 30, 2017, the Corporation had 137 individual borrowing relationships with total borrowing commitments between $20.0 million and $50.0 million.

The following table summarizes the industry concentrations within the commercial loan portfolio:

	June 30, 2017		December 31, 2016
Services	22.2	%	21.8	%
Retail	16.0		15.1
Health care	10.2		10.5
Manufacturing	9.0		9.2
Construction (1)	8.4		9.0
Wholesale	7.1		7.0
Real estate (2)	6.6		6.7
Agriculture	4.7		5.0
Arts and entertainment	2.5		2.6
Transportation	2.4		2.3
Financial services	2.2		2.1
Other	8.7		8.7
Total	100.0	%	100.0	%

(1) Includes commercial loans to borrowers engaged in the construction industry.

(2) Includes commercial loans to borrowers engaged in the business of: renting, leasing or managing real estate for others; selling and/or buying real estate for others; and appraising real estate.

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Commercial loans and commercial mortgage loans also include shared national credits, which are participations in loans or loan commitments of at least $20.0 million that are shared by three or more banks. Below is a summary of the Corporation's outstanding purchased shared national credits:

	June 30, 2017		December 31, 2016
	(in thousands)
Commercial - industrial, financial and agricultural	$	166,500	$	155,353
Real estate - commercial mortgage	96,076		81,573
Total	$	262,576	$	236,926

Total shared national credits increased $25.7 million, or 10.8%, in comparison to December 31, 2016 as a result of both new relationships and growth in existing relationships. The Corporation's shared national credits are to borrowers located in its geographical markets, and are subject to normal lending activities consistent with the Corporation's underwriting policies. None of the shared national credits were past due as of June 30, 2017 or December 31, 2016.

Provision and Allowance for Credit Losses

The Corporation has historically maintained an unallocated allowance for loan losses for factors and conditions that exist at the balance sheet date, but are not specifically identifiable, and to recognize the inherent imprecision in estimating and measuring loss exposure. During the second quarter of 2017, enhancements were made to allow for the impact of these factors and conditions to be quantified in the allowance allocation process. Accordingly, an unallocated allowance for loan losses is no longer necessary.

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The following table presents the activity in the allowance for credit losses:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(dollars in thousands)
Average balance of loans, net of unearned income	$	15,127,205		$	13,966,024		$	14,993,129		$	13,909,722
Balance of allowance for credit losses at beginning of period	$	172,647		$	166,065		$	171,325		$	171,412
Loans charged off:
Commercial – industrial, financial and agricultural	5,353			4,625			10,880			10,813
Real estate – residential mortgage	124			340			340			1,408
Real estate – home equity	592			1,045			1,290			2,586
Real estate – commercial mortgage	242			1,474			1,466			2,056
Consumer	430			569			1,286			1,576
Real estate – construction	774			742			1,021			1,068
Leasing, other and overdrafts	1,200			1,951			1,839			2,394
Total loans charged off	8,715			10,746			18,122			21,901
Recoveries of loans previously charged off:
Commercial – industrial, financial and agricultural	1,974			2,931			6,165			5,250
Real estate – residential mortgage	151			420			381			556
Real estate – home equity	215			350			352			688
Real estate – commercial mortgage	934			1,367			1,384			2,192
Consumer	470			539			706			735
Real estate – construction	373			1,563			921			1,946
Leasing, other and overdrafts	249			108			386			189
Total recoveries	4,366			7,278			10,295			11,556
Net loans charged off	4,349			3,468			7,827			10,345
Provision for credit losses	6,700			2,511			11,500			4,041
Balance of allowance for credit losses at end of period	$	174,998		$	165,108		$	174,998		$	165,108
Net charge-offs to average loans (annualized)	0.11		%	0.10		%	0.10		%	0.15		%

The following table presents the components of the allowance for credit losses:

	June 30, 2017			December 31, 2016
	(dollars in thousands)
Allowance for loan losses	$	172,342		$	168,679
Reserve for unfunded lending commitments	2,656			2,646
Allowance for credit losses	$	174,998		$	171,325
Allowance for credit losses to loans outstanding	1.14		%	1.17		%

The provision for credit losses for the three months endedJune 30, 2017 was $6.7 million, an increase of $4.2 million in comparison to the same period in 2016. For the six months ended June 30, 2017, the provision for credit losses was $11.5 million, an increase of $7.5 million in comparison to the first six months of 2016. The increases in the provision for credit losses largely reflected loan growth.

Net charge-offs increased $881,000, to $4.3 million for the second quarter of 2017, compared to $3.5 million for the second quarter of 2016, as a result of a $2.9 million decrease in recoveries which was partially offset by a $2.0 million decrease in gross charge-offs comparing the same two periods. Of the $4.3 million of net charge-offs recorded in the second quarter of 2017, the majority

59

were for loans originated in Pennsylvania ($4.9 million) and Maryland ($73,000), partially offset by net recoveries in New Jersey, Virginia and Delaware.

For the first six months of 2017, net charge-offs decreased $2.5 million, to $7.8 million compared to $10.3 million for the same period of 2016 as a result of a $3.8 million decrease in gross charge-offs and an $1.3 million decrease in recoveries comparing the same two periods. Of the $7.8 million of net charge-offs recorded in the first six months of 2017, the majority were for loans originated in Pennsylvania ($7.5 million) and New Jersey ($566,000), partially offset by net recoveries in Virginia, Maryland and Delaware.

The following table summarizes non-performing assets as of the indicated dates:

	June 30, 2017			June 30, 2016			December 31, 2016
	(dollars in thousands)
Non-accrual loans	$	122,600		$	111,742		$	120,133
Loans 90 days or more past due and still accruing	13,143			15,992			11,505
Total non-performing loans	135,743			127,734			131,638
Other real estate owned (OREO)	11,432			11,918			12,815
Total non-performing assets	$	147,175		$	139,652		$	144,453
Non-accrual loans to total loans	0.80		%	0.79		%	0.82		%
Non-performing assets to total assets	0.75		%	0.76		%	0.76		%
Allowance for credit losses to non-performing loans	128.92		%	129.26		%	130.15		%

The following table presents loans whose terms have been modified under troubled debt restructurings ("TDRs"), by

type, as of the indicated dates:

	June 30, 2017		June 30, 2016		December 31, 2016
	(in thousands)
Real-estate - residential mortgage	$	26,368	$	27,324	$	27,617
Real-estate - commercial mortgage	13,772		17,808		15,957
Real estate - home equity	12,031		7,173		8,594
Commercial	8,086		5,756		6,627
Construction	1,475		3,086		726
Consumer	33		18		39
Total accruing TDRs	61,765		61,165		59,560
Non-accrual TDRs (1)	29,373		24,887		27,850
Total TDRs	$	91,138	$	86,052	$	87,410

(1) Included with non-accrual loans in the preceding table.

TDRs modified during the first six months of 2017 and still outstanding as of June 30, 2017 totaled $13.2 million. During the first six months of 2017, $6.3 million of TDRs that were modified in the previous 12 months had a payment default, which the Corporation defines as a single missed scheduled payment, subsequent to modification.

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The following table presents the changes in non-accrual loans for the three and six months ended June 30, 2017:

	Commercial - Industrial, Financial and Agricultural			Real Estate - Commercial Mortgage			Real Estate - Construction			Real Estate - Residential Mortgage			Real Estate - Home Equity			Consumer			Leasing			Total
	(in thousands)
Three months ended June 30, 2017
Balance of non-accrual loans at March 31, 2017	$	40,818		$	35,803		$	13,485		$	17,807		$	9,351		$	—		$	—		$	117,264
Additions	16,388			4,776			3,691			484			1,678			430			855			28,302
Payments	(3,763		)	(7,537		)	(667		)	(311		)	(241		)	—			—			(12,519		)
Charge-offs	(5,353		)	(242		)	(774		)	(124		)	(592		)	(430		)	(855		)	(8,370		)
Transfers to accrual status	—			—			—			(54		)	(250		)	—			—			(304		)
Transfers to OREO	(3		)	(533		)	(149		)	(862		)	(226		)	—			—			(1,773		)
Balance of non-accrual loans at June 30, 2017	$	48,087		$	32,267		$	15,586		$	16,940		$	9,720		$	—		$	—		$	122,600
Six months ended June 30, 2017
Balance of non-accrual loans at December 31, 2016	$	42,349		$	38,936		$	9,806		$	18,431		$	10,611		$	—		$	—		$	120,133
Additions	24,401			7,774			8,747			1,146			2,699			1,286			1,118			47,171
Payments	(7,780		)	(10,981		)	(1,797		)	(1,250		)	(658		)	—			—			(22,466		)
Charge-offs	(10,880		)	(1,466		)	(1,021		)	(340		)	(1,290		)	(1,286		)	(1,118		)	(17,401		)
Transfers to accrual status	—			(913		)	—			(54		)	(678		)	—			—			(1,645		)
Transfers to OREO	(3		)	(1,083		)	(149		)	(993		)	(964		)	—			—			(3,192		)
Balance of non-accrual loans at June 30, 2017	$	48,087		$	32,267		$	15,586		$	16,940		$	9,720		$	—		$	—		$	122,600

Non-accrual loans increased $10.9 million, or 9.7%, and $2.5 million, or 2.1%, in comparison to June 30, 2016 and December 31, 2016, respectively.

The following table summarizes non-performing loans, by type, as of the indicated dates:

	June 30, 2017		June 30, 2016		December 31, 2016
	(in thousands)
Commercial – industrial, financial and agricultural	$	51,320	$	38,902	$	43,460
Real estate – commercial mortgage	32,576		35,704		39,319
Real estate – residential mortgage	21,846		25,030		23,655
Real estate – construction	16,564		11,879		9,842
Real estate – home equity	11,887		14,173		13,154
Consumer	1,269		1,888		1,891
Leasing	281		158		317
Total non-performing loans	$	135,743	$	127,734	$	131,638

Non-performing loans increased $8.0 million, or 6.3%, and $4.1 million, or 3.1%, in comparison to June 30, 2016 and December 31, 2016, respectively. Non-performing loans to total loans was 0.88% in comparison to 0.90% at both June 30, 2016 and December 31, 2016.

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The following table summarizes the Corporation’s OREO, by property type, as of the indicated dates:

	June 30, 2017		June 30, 2016		December 31, 2016
	(in thousands)
Residential properties	$	5,035	$	6,098	$	7,655
Commercial properties	3,670		3,686		2,651
Undeveloped land	2,727		2,134		2,509
Total OREO	$	11,432	$	11,918	$	12,815

The ability to identify potential problem loans in a timely manner is important to maintaining an adequate allowance for credit losses. For commercial loans, commercial mortgages and construction loans to commercial borrowers, an internal risk rating process is used to monitor credit quality. The evaluation of credit risk for residential mortgages, home equity loans, construction loans to individuals, consumer loans and lease receivables is based on payment history, through the monitoring of delinquency levels and trends. For a description of the Corporation's risk ratings, see Note 5, "Loans and Allowance for Credit Losses," in the Notes to Consolidated Financial Statements.

Total internally risk rated loans were $11.4 billion and $10.9 billion as of June 30, 2017 and December 31, 2016, respectively. The following table presents internal risk ratings for commercial loans, commercial mortgages and construction loans to commercial borrowers with internal risk ratings of Special Mention (considered criticized loans) or Substandard or lower (considered classified loans), by class segment:

	Special Mention						Increase (Decrease)					Substandard or lower						Increase (Decrease)					Total Criticized and Classified Loans
	June 30, 2017			December 31, 2016			$			%		June 30, 2017			December 31, 2016			$			%		June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - commercial mortgage	$	119,534		$	132,484		$	(12,950	)	(9.8	)%	$	137,516		$	122,976		$	14,540		11.8	%	$	257,050		$	255,460
Commercial - secured	119,119			128,873			(9,754		)	(7.6	)	169,602			118,527			51,075			43.1		288,721			247,400
Commercial -unsecured	6,264			4,481			1,783			39.8		2,545			3,531			(986		)	(27.9	)	8,809			8,012
Total Commercial - industrial, financial and agricultural	125,383			133,354			(7,971		)	(6.0	)	172,147			122,058			50,089			41.0		297,530			255,412
Construction - commercial residential	9,789			15,447			(5,658		)	(36.6	)	16,387			13,172			3,215			24.4		26,176			28,619
Construction - commercial	4,727			3,412			1,315			38.5		5,220			5,115			105			2.1		9,947			8,527
Total real estate - construction (excluding construction - other)	14,516			18,859			(4,343		)	(23.0	)	21,607			18,287			3,320			18.2		36,123			37,146
Total	$	259,433		$	284,697		$	(25,264	)	(8.9	)%	$	331,270		$	263,321		$	67,949		25.8	%	$	590,703		$	548,018
% of total risk rated loans	2.3		%	2.6		%						2.9		%	2.4		%						5.2		%	5.0		%

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The following table summarizes loan delinquency rates, by type, as of the dates indicated:

	June 30, 2017									June 30, 2016									December 31, 2016
	30-89 Days			≥ 90 Days (1)			Total			30-89 Days			≥ 90 Days (1)			Total			30-89 Days			≥ 90 Days (1)			Total
Real estate – commercial mortgage	0.14		%	0.52		%	0.66		%	0.18		%	0.63		%	0.81		%	0.13		%	0.65		%	0.78		%
Commercial – industrial, financial and agricultural	0.22		%	1.21		%	1.43		%	0.30		%	0.95		%	1.25		%	0.25		%	1.06		%	1.31		%
Real estate – construction	0.06		%	1.76		%	1.82		%	0.54		%	1.39		%	1.93		%	0.12		%	1.17		%	1.29		%
Real estate – residential mortgage	0.89		%	1.22		%	2.11		%	0.97		%	1.73		%	2.70		%	1.27		%	1.48		%	2.75		%
Real estate – home equity	0.65		%	0.75		%	1.40		%	0.61		%	0.86		%	1.47		%	0.57		%	0.81		%	1.38		%
Consumer, leasing and other	0.37		%	0.11		%	0.48		%	1.03		%	0.43		%	1.46		%	1.23		%	0.42		%	1.65		%
Total	0.32		%	0.88		%	1.20		%	0.39		%	0.91		%	1.30		%	0.38		%	0.89		%	1.27		%
Total dollars (in thousands)	$	49,532		$	135,743		$	185,275		$	55,744		$	127,734		$	183,478		$	55,149		$	131,638		$	186,787

(1) Includes non-accrual loans.

Management believes that the allowance for credit losses of $175.0 million as of June 30, 2017 is sufficient to cover incurred losses in the loan and lease portfolio and unfunded lending commitments as of that date and is appropriate based on U.S. GAAP.

Deposits and Borrowings

The following table presents ending deposits, by type, as of the dates indicated:

					Increase (Decrease)
	June 30, 2017		December 31, 2016		$			%
	(dollars in thousands)
Noninterest-bearing demand	$	4,574,619	$	4,376,137	$	198,482		4.5	%
Interest-bearing demand	3,650,204		3,703,712		(53,508		)	(1.4	)
Savings and money market accounts	4,386,128		4,179,773		206,355			4.9
Total demand and savings	12,610,951		12,259,622		351,329			2.9
Time deposits	2,746,410		2,753,242		(6,832		)	(0.2	)
Total deposits	$	15,357,361	$	15,012,864	$	344,497		2.3	%

Noninterest-bearing demand deposits increased $198.5 million, or 4.5%, primarily as a result of increases in business account balances of $187.6 million, or 5.7%, and personal account balances of $36.1 million, or 4.1%, partially offset by a decrease in municipal account balances of $30.0 million, or 19.8%.

Interest-bearing demand accounts decreased $53.5 million, due to a $79.5 million, or 6.1%, seasonal decrease in municipal account balances, which was partially offset by a $24.2 million, or 1.2%, increase in personal account balances.

The $206.4 million, or 4.9%, increase in savings and money market account balances was primarily due to a $265.9 million, or 9.5%, increase in personal account balances, partially offset by a $64.9 million, or 11.3%, seasonal decrease in municipal account balances.

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The following table presents ending short-term borrowings and long-term debt by type, as of the dates indicated:

					Increase (Decrease)
	June 30, 2017		December 31, 2016		$			%
	(dollars in thousands)
Short-term borrowings:
Customer repurchase agreements	$	174,224	$	195,734	$	(21,510	)	(11.0	)%
Customer short-term promissory notes	74,366		67,013		7,353			11.0
Total short-term customer funding	248,590		262,747		(14,157		)	(5.4	)
Federal funds purchased	206,269		278,570		(72,301		)	(26.0	)
Short-term FHLB advances (1)	240,000		—		240,000			N/M
Total short-term borrowings	694,859		541,317		153,542			28.4
Long-term debt:
FHLB advances	652,177		567,240		84,937			15.0
Other long-term debt	385,784		362,163		23,621			6.5
Total long-term debt	1,037,961		929,403		108,558			11.7
Total borrowings	$	1,732,820	$	1,470,720	$	262,100		17.8	%

N/M - Not meaningful

(1) Represents FHLB advances with an original maturity term of less than one year.

Total borrowings increased $262.1 million, or 17.8%, as a result of a $153.5 million, or 28.4%, increase in short-term borrowings and a $108.6 million, or 11.7%, increase in long-term debt. These increases were primarily the result of additional short-term and long-term FHLB advances used to help fund loan growth as deposit growth lagged. The increase in other long-term debt was primarily the result of the issuance of $125.0 million of senior notes in March 2017, offset by the repayment of the $100.0 million of 10-year subordinated notes, which matured on May 1, 2017, as discussed in the "Results of Operations."

Shareholders' Equity

Total shareholders’ equity increased $70.7 million, or 3.3%, during the first six months of 2017. The increase was due primarily to $88.8 million of net income, $4.9 million of stock issued and a $13.6 million increase in other comprehensive income, partially offset by $38.4 million of common stock dividends.

In November 2016, the Corporation's board of directors approved an extension, through December 31, 2017, to a share repurchase program pursuant to which the Corporation is authorized to repurchase up to $50.0 million of its outstanding shares of common stock, or approximately 2.3% of its outstanding shares. Repurchased shares may be added to treasury stock, at cost. As permitted by securities laws and other legal requirements and subject to market conditions and other factors, purchases may be made from time to time in open market or privately negotiated transactions, including without limitation, through accelerated share repurchase transactions. The share repurchase program may be discontinued at any time. As of June 30, 2017, 1.5 million shares were repurchased under this program for a total cost of $18.5 million, or $12.48 per share. Up to an additional $31.5 million of the Corporation's common stock may be repurchased under this program through December 31, 2017.

Regulatory Capital

The Corporation and its subsidiary banks are subject to regulatory capital requirements administered by various banking regulators. Failure to meet minimum capital requirements could result in certain actions by regulators that could have a material effect on the Corporation’s financial statements. In July 2013, the Federal Reserve Board approved final rules (the "U.S. Basel III Capital Rules") establishing a new comprehensive capital framework for U.S. banking organizations and implementing the Basel Committee on Banking Supervision's December 2010 framework for strengthening international capital standards. The U.S. Basel III Capital Rules substantially revise the risk-based capital requirements applicable to bank holding companies and depository institutions.

The minimum regulatory capital requirements established by the U.S. Basel III Capital Rules became effective for the Corporation on January 1, 2015, and will be fully phased in on January 1, 2019.

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The U.S. Basel III Capital Rules require the Corporation and its bank subsidiaries to:

• Meet a minimum Common Equity Tier 1 capital ratio of 4.50% of risk-weighted assets and a Tier 1 capital ratio of 6.00% of risk-weighted assets;

• Continue to require a minimum Total capital ratio of 8.00% of risk-weighted assets and a minimum Tier 1 leverage capital ratio of 4.00% of average assets; and

• Comply with a revised definition of capital to improve the ability of regulatory capital instruments to absorb losses. Certain non-qualifying capital instruments, including cumulative preferred stock and trust preferred securities ("TruPS"), have been phased out as a component of Tier 1 capital for institutions of the Corporation's size.

When fully phased in on January 1, 2019, the Corporation and its bank subsidiaries will also be required to maintain a "capital conservation buffer" of 2.50% above the minimum risk-based capital requirements, which must be maintained to avoid restrictions on capital distributions and certain discretionary bonus payments.

The U.S. Basel III Capital Rules use a standardized approach for risk weightings that expands the risk-weightings for assets and off-balance sheet exposures from the previous 0%, 20%, 50% and 100% categories to a much larger and more risk-sensitive number of categories, depending on the nature of the assets and off-balance sheet exposures and resulting in higher risk weights for a variety of asset categories.

As of June 30, 2017, the Corporation and each of its bank subsidiaries met the minimum requirements of the U.S. Basel III Capital Rules, and each of the Corporation’s bank subsidiaries’ capital ratios exceeded the amounts required to be considered "well capitalized" as defined in the regulations. As of June 30, 2017, the Corporation's capital levels also met the fully-phased in minimum capital requirements, including the capital conservation buffers, as prescribed in the U.S. Basel III Capital Rules.

The following table summarizes the Corporation’s capital ratios in comparison to regulatory requirements:

	June 30, 2017		December 31, 2016		Regulatory Minimum for Capital Adequacy		Fully Phased-in, with Capital Conservation Buffers
Total Capital (to Risk-Weighted Assets)	12.9	%	13.2	%	8.0	%	10.5	%
Tier I Capital (to Risk-Weighted Assets)	10.2	%	10.4	%	6.0	%	8.5	%
Common Equity Tier I (to Risk-Weighted Assets)	10.2	%	10.4	%	4.5	%	7.0	%
Tier I Capital (to Average Assets)	9.1	%	9.0	%	4.0	%	4.0	%

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk is the exposure to economic loss that arises from changes in the values of certain financial instruments. The types of market risk exposures generally faced by financial institutions include interest rate risk, equity market price risk, debt security market price risk, foreign currency price risk and commodity price risk. Due to the nature of its operations, foreign currency price risk and commodity price risk are not significant to the Corporation.

Interest Rate Risk, Asset/Liability Management and Liquidity

Interest rate risk creates exposure in two primary areas. First, changes in rates have an impact on the Corporation’s liquidity position and could affect its ability to meet obligations and continue to grow. Second, movements in interest rates can create fluctuations in the Corporation’s net interest income and changes in the economic value of its equity.

The Corporation employs various management techniques to minimize its exposure to interest rate risk. An Asset/Liability Management Committee ("ALCO") is responsible for reviewing the interest rate sensitivity and liquidity positions of the Corporation, approving asset and liability management policies, and overseeing the formulation and implementation of strategies regarding balance sheet positions.

The Corporation uses two complementary methods to measure and manage interest rate risk. They are simulation of net interest income and estimates of economic value of equity. Using these measurements in tandem provides a reasonably comprehensive summary of the magnitude of the Corporation's interest rate risk, level of risk as time evolves, and exposure to changes in interest rates.

Simulation of net interest income is performed for the next 12-month period. A variety of interest rate scenarios are used to measure the effects of sudden and gradual movements upward and downward in the yield curve. These results are compared to the results obtained in a flat or unchanged interest rate scenario. Simulation of net interest income is used primarily to measure the Corporation’s short-term earnings exposure to rate movements. The Corporation’s policy limits the potential exposure of net interest income, in a non-parallel instantaneous shock, to 10% of the base case net interest income for a 100 basis point shock in interest rates, 15% for a 200 basis point shock and 20% for a 300 basis point shock. A "shock" is an immediate upward or downward movement of interest rates. The shocks do not take into account changes in customer behavior that could result in changes to mix and/or volumes in the balance sheet, nor do they take into account the potential effects of competition on the pricing of deposits and loans over the forward 12-month period.

Contractual maturities and repricing opportunities of loans are incorporated in the simulation model as are prepayment assumptions, maturity data and call options in the investment portfolio. Assumptions based on past experience are incorporated into the model for non-maturity deposit accounts. The assumptions used are inherently uncertain and, as a result, the model cannot precisely measure future net interest income or precisely predict the impact of fluctuations in market interest rates on net interest income. Actual results will differ from the model's simulated results due to timing, amount and frequency of interest rate changes as well as changes in market conditions and the application and timing of various management strategies.

The following table summarizes the expected impact of abrupt interest rate changes on net interest income as of June 30, 2017 (due to the current level of interest rates, the 200 and 300 basis point downward shock scenarios are not shown):

Rate Shock (1)	Annual change in net interest income	% Change in net interest income
+300 bp	+ $102.5 million	16.5%
+200 bp	+ $70.1 million	11.3%
+100 bp	+ $35.6 million	5.7%
–100 bp	– $52.3 million	– 8.4%

(1) These results include the effect of implicit and explicit interest rate floors that limit further reduction in interest rates.

Economic value of equity estimates the discounted present value of asset and liability cash flows. Discount rates are based upon market prices for like assets and liabilities. Abrupt changes or "shocks" in interest rates, both upward and downward, are used to determine the comparative effect of such interest rate movements relative to the unchanged environment. This measurement tool is used primarily to evaluate the longer-term repricing risks and options in the Corporation’s balance sheet. The Corporation's policy limits the economic value of equity that may be at risk, in a non-parallel instantaneous shock, to 10% of the base case economic value of equity for a 100 basis point shock in interest rates, 20% for a 200 basis point shock and 30% for a 300 basis

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point shock. As of June 30, 2017, the Corporation was within economic value of equity policy limits for every 100 basis point shock.

Interest Rate Swaps

The Corporation enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Corporation simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These interest rate swaps are derivative financial instruments that are recorded at their fair value in other assets and liabilities on the consolidated balance sheets. Changes in fair value during the period are recorded in other non-interest expense on the consolidated statements of income.

Liquidity

The Corporation must maintain a sufficient level of liquid assets to meet the cash needs of its customers, who, as depositors, may want to withdraw funds or who, as borrowers, need credit availability. Liquidity is provided on a continuous basis through scheduled and unscheduled principal and interest payments on investments and outstanding loans and through the availability of deposits and borrowings. The Corporation also maintains secondary sources that provide liquidity on a secured and unsecured basis to meet short-term and long-term needs. In addition, the Corporation has filed a shelf registration statement with the Securities and Exchange Commission under which the Corporation may, from time to time subject to then current market conditions, offer various types of debt and equity securities.

The Corporation maintains liquidity sources in the form of demand and savings deposits, time deposits, repurchase agreements and short-term promissory notes. The Corporation can access additional liquidity from these sources, if necessary, by increasing the rates of interest paid on those accounts and borrowings. The positive impact to liquidity resulting from paying higher interest rates could have a detrimental impact on the net interest margin and net income if rates on interest-earning assets do not experience a proportionate increase. Borrowing availability with the FHLB and the Federal Reserve Bank, along with federal funds lines at various correspondent banks, provides the Corporation with additional liquidity.

Each of the Corporation’s subsidiary banks is a member of the FHLB and has access to FHLB overnight and term credit facilities. As of June 30, 2017, the Corporation had $892.2 million of advances outstanding from the FHLB with an additional borrowing capacity of approximately $3.0 billion under these facilities. Advances from the FHLB are secured by qualifying commercial real estate and residential mortgage loans, investments and other assets.

As of June 30, 2017, the Corporation had aggregate availability under federal funds lines of $932.0 million with $206.3 million borrowed against that amount. A combination of commercial real estate loans, commercial loans and securities are pledged to the Federal Reserve Bank of Philadelphia to provide access to Federal Reserve Bank Discount Window borrowings. As of June 30, 2017, the Corporation had $933.1 million of collateralized borrowing availability at the Discount Window, and no outstanding borrowings.

Liquidity must also be managed at the Fulton Financial Corporation parent company level. For safety and soundness reasons, banking regulations limit the amount of cash that can be transferred from subsidiary banks to the parent company in the form of loans and dividends. Generally, these limitations are based on the subsidiary banks’ regulatory capital levels and their net income. Management continues to monitor the liquidity and capital needs of the parent company and will implement appropriate strategies, as necessary, to remain adequately capitalized and to meet its cash needs.

The Corporation’s sources and uses of funds were discussed in general terms in the "Net Interest Income" section of Management’s Discussion and Analysis. The consolidated statements of cash flows provide additional information. The Corporation’s operating activities during the first six months of 2017 generated $75.0 million of cash, mainly due to net income. Cash used in investing activities was $673.3 million, mainly due to net increases in loans and short-term investments. Net cash provided by financing activities was $574.5 million due mainly to increases in deposits, long-term debt and short-term borrowings.

Equity Market Price Risk

Equity market price risk is the risk that changes in the values of equity investments could have a material impact on the financial position or results of operations of the Corporation. As of June 30, 2017, equity investments consisted of $20.5 million of common stocks of publicly traded financial institutions and $1.0 million of other equity investments.

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The equity investments most susceptible to equity market price risk are the financial institutions stocks, which had a cost basis of approximately $9.7 million and an estimated fair value of $20.5 million at June 30, 2017, including an investment in a single financial institution with a cost basis of $4.3 million and an estimated fair value of $8.8 million. The fair value of this investment accounted for 42.9% of the fair value of the common stocks of publicly traded financial institutions. No other investment in a single financial institution in the financial institutions stock portfolio exceeded 10% of the portfolio's fair value. In total, net unrealized gains in this portfolio were approximately $10.8 million as of June 30, 2017.

Management continuously monitors the fair value of its equity investments and evaluates current market conditions and operating results of the issuers. Periodic sale and purchase decisions are made based on this monitoring process. None of the Corporation’s equity securities are classified as trading.

In addition to its equity portfolio, investment management and trust services income may be impacted by fluctuations in the equity markets. A portion of this revenue is based on the value of the underlying investment portfolios, many of which include equity investments. If the values of those investment portfolios decrease, whether due to factors influencing U.S. or international securities markets in general or otherwise, the Corporation’s revenue would be negatively impacted. In addition, the Corporation’s ability to sell its brokerage services in the future will be dependent, in part, upon consumers’ level of confidence in financial markets.

Debt Security Market Price Risk

Debt security market price risk is the risk that changes in the values of debt securities, unrelated to interest rate changes, could have a material impact on the financial position or results of operations of the Corporation. The Corporation’s debt security investments consist primarily of U.S. government sponsored agency issued mortgage-backed securities and collateralized mortgage obligations, state and municipal securities, U.S. government debt securities, auction rate securities and corporate debt securities. All of the Corporation's investments in commercial and residential mortgage-backed securities and collateralized mortgage obligations have principal payments that are guaranteed by U.S. government sponsored agencies.

State and Municipal Securities

As of June 30, 2017, the Corporation owned $401.6 million of municipal securities issued by various states or municipalities. Downward pressure on local tax revenues of issuers could have an adverse impact on the underlying credit quality of issuers. The Corporation evaluates existing and potential holdings primarily based on the creditworthiness of the issuing state or municipality and then, to a lesser extent, on any underlying credit enhancement. State or municipal securities can be supported by the general obligation of the issuing state or municipality, allowing the securities to be repaid by any means available to the issuing municipality. As of June 30, 2017, approximately 98% of state or municipal securities were supported by the general obligation of corresponding states or municipalities. Approximately 60% of these securities were school district issuances, which are also supported by the states of the issuing municipalities.

Auction Rate Securities

As of June 30, 2017, the Corporation’s investments in auction rate certificates ("ARCs"), a type of auction rate security, had a cost basis of $107.4 million and a fair value of $97.9 million.

As of June 30, 2017, the fair values of the ARCs currently in the portfolio were derived using significant unobservable inputs based on an expected cash flows model which produced fair values that were materially different from those that would be expected from settlement of these investments in the current market. The expected cash flows model produced fair values which assumed a return to market liquidity sometime in the next five years. The Corporation believes that the trusts underlying the ARCs will self-liquidate as student loans are repaid.

The credit quality of the underlying debt associated with the ARCs is also a factor in the determination of their estimated fair value. As of June 30, 2017, all of the ARCs were rated above investment grade. All of the loans underlying the ARCs have principal payments that are guaranteed by the federal government. At June 30, 2017, all ARCs were current and making scheduled interest payments.

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Corporate Debt Securities

The Corporation holds corporate debt securities in the form of pooled trust preferred securities, single-issuer trust preferred securities, subordinated debt and senior debt issued by financial institutions. As of June 30, 2017, these securities had an amortized cost of $88.9 million and an estimated fair value of $89.0 million.

See "Note 4 - Investment Securities," in the Notes to Consolidated Financial Statements for further discussion related to the Corporation’s other-than-temporary impairment evaluations for debt securities, and see "Note 11 - Fair Value Measurements," in the Notes to Consolidated Financial Statements for further discussion related to the fair values of debt securities.

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Item 4. Controls and Procedures

The Corporation carried out an evaluation, under the supervision and with the participation of the Corporation’s management, including the Corporation’s Chief Executive Officer and Chief Financial Officer, of the effectiveness of the design and operation of the Corporation’s disclosure controls and procedures pursuant to Rule 13a-15, promulgated under the Securities Exchange Act of 1934 (the "Exchange Act"). Based upon that evaluation, the Corporation’s Chief Executive Officer and Chief Financial Officer concluded that, as of the end of the period covered by this quarterly report, the Corporation’s disclosure controls and procedures are effective. Disclosure controls and procedures are controls and procedures that are designed to ensure that information required to be disclosed in Corporation reports filed or submitted under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms.

There have been no changes in the Corporation’s internal control over financial reporting during the fiscal quarter covered by this quarterly report that have materially affected, or are reasonably likely to materially affect, the Corporation’s internal control over financial reporting.

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PART II – OTHER INFORMATION

Item 1. Legal Proceedings

The information presented in the "Legal Proceedings" section of Note 10 "Commitment and Contingencies" of the Notes to Consolidated Financial Statements is incorporated herein by reference.

Item 1A. Risk Factors

There have been no material changes to the risk factors previously disclosed in Part I, Item 1A of the Corporation’s Annual Report on Form 10-K for the year ended December 31, 2016.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

(a)  None. 

(b)  None.

(c)  There were no purchases of equity securities by the issuer or any affiliated purchasers during the three months ended June 30, 2017.

Item 6. Exhibits

See Exhibit Index for a list of the exhibits required by Item 601 of Regulation S-K and filed as part of this report.

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FULTON FINANCIAL CORPORATION AND SUBSIDIARIES

SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

FULTON FINANCIAL CORPORATION
Date:	August 4, 2017	/s/ E. Philip Wenger
		E. Philip Wenger
		Chairman, Chief Executive Officer and President
Date:	August 4, 2017	/s/ Philmer H. Rohrbaugh
		Philmer H. Rohrbaugh
		Senior Executive Vice President, Chief Operating Officer
		and Chief Financial Officer

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EXHIBIT INDEX

Exhibits Required Pursuant

to Item 601 of Regulation S-K

3.1	Articles of Incorporation, as amended and restated, of Fulton Financial Corporation– Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report on Form 8-K dated June 24, 2011. (File No. 0-10587)
3.2	Bylaws of Fulton Financial Corporation as amended – Incorporated by reference to Exhibit 3.1 of the Fulton Financial Corporation Current Report on an Amended Form 8-K dated September 23, 2014.
31.1	Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
31.2	Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002.
32.1	Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
32.2	Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002.
101	Financial statements from the Quarterly Report on Form 10-Q of Fulton Financial Corporation for the period ended June 30, 2017, filed on August 4, 2017, formatted in XBRL: (i) the Consolidated Balance Sheets, (ii) the Consolidated Statements of Income, (iii) the Consolidated Statements of Comprehensive Income (iv) the Consolidated Statements of Shareholders' Equity, (v) the Consolidated Statements of Cash Flows and (vi) the Notes to Consolidated Financial Statements - filed herewith.

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EX-31.1

Exhibit 31.1 – Certification of Chief Executive Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, E. Philip Wenger, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Fulton Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 4, 2017
	/s/ E. Philip Wenger
	E. Philip Wenger
	Chairman, Chief Executive Officer and President

EX-31.2

Exhibit 31.2 – Certification of Chief Financial Officer pursuant to Section 302 of the Sarbanes-Oxley Act of 2002

I, Philmer H. Rohrbaugh, certify that:

1. I have reviewed this quarterly report on Form 10-Q of Fulton Financial Corporation;

2. Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3. Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4. The registrant’s other certifying officer and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a. Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision, to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b. Designed such internal control over financial reporting, or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c. Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d. Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5. The registrant’s other certifying officer and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a. All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b. Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date:	August 4, 2017
	/s/ Philmer H. Rohrbaugh
	Philmer H. Rohrbaugh
	Senior Executive Vice President, Chief Operating Officer and Chief Financial Officer

EX-32.1

Exhibit 32.1 - Certification of Chief Executive Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, E. Philip Wenger, Chief Executive Officer of Fulton Financial Corporation, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, certify that:

The Form 10-Q of Fulton Financial Corporation, containing the consolidated financial statements for the quarter ended June 30, 2017, fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934. The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Fulton Financial Corporation.

Date:	August 4, 2017
	/s/ E. Philip Wenger
	E. Philip Wenger
	Chairman, Chief Executive Officer and President

EX-32.2

Exhibit 32.2 - Certification of Chief Financial Officer pursuant to Section 906 of the Sarbanes-Oxley Act of 2002

I, Philmer H. Rohrbaugh, Chief Financial Officer of Fulton Financial Corporation, pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, certify that:

The Form 10-Q of Fulton Financial Corporation, containing the consolidated financial statements for the quarter ended June 30, 2017, fully complies with the requirements of Sections 13(a) or 15(d) of the Securities Exchange Act of 1934. The information contained in the Form 10-Q fairly presents, in all material respects, the financial condition and results of operations of Fulton Financial Corporation.

Date:	August 4, 2017
	/s/ Philmer H. Rohrbaugh
	Philmer H. Rohrbaugh
	Senior Executive Vice President, Chief Operating Officer and
	Chief Financial Officer

XML

Document and Entity Information - shares	6 Months Ended
	Jun. 30, 2017	Jul. 28, 2017
Document and Entity Information
Entity Registrant Name	FULTON FINANCIAL CORP
Entity Central Index Key	0000700564
Trading Symbol	fult
Current Fiscal Year End Date	--12-31
Entity Filer Category	Large Accelerated Filer
Document Type	10-Q
Document Period End Date	Jun. 30, 2017
Document Fiscal Year Focus	2017
Document Fiscal Period Focus	Q2
Amendment Flag	false
Entity Common Stock, Shares Outstanding		174,941,000

XML

Consolidated Balance Sheets - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
ASSETS
Cash and due from banks	$ 94,938	$ 118,763
Interest-bearing deposits with other banks	322,514	233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328	57,489
Loans held for sale	62,354	28,697
Available for sale investment securities	2,488,699	2,559,227
Loans, net of unearned income	15,346,617	14,699,272
Less: Allowance for loan losses	(172,342)	(168,679)
Net Loans	15,174,275	14,530,593
Premises and equipment	217,558	217,806
Accrued interest receivable	47,603	46,294
Goodwill and intangible assets	531,556	531,556
Other assets	637,610	620,059
Total Assets	19,647,435	18,944,247
LIABILITIES
Noninterest-bearing	4,574,619	4,376,137
Interest-bearing	10,782,742	10,636,727
Total Deposits	15,357,361	15,012,864
Short-term borrowings:
Federal funds purchased	206,269	278,570
Other short-term borrowings	488,590	262,747
Total Short-Term Borrowings	694,859	541,317
Accrued interest payable	7,804	9,632
Other liabilities	357,680	329,916
Federal Home Loan Bank advances and other long-term debt	1,037,961	929,403
Total Liabilities	17,455,665	16,823,132
SHAREHOLDERS’ EQUITY
Common stock, $2.50 par value, 600 million shares authorized, 220.8 million shares issued in 2017 and 219.9 million shares issued in 2016	551,936	549,707
Additional paid-in capital	1,473,549	1,467,602
Retained earnings	782,541	732,099
Accumulated other comprehensive loss	(24,875)	(38,449)
Treasury stock, at cost, 45.9 million shares in 2017 and 45.8 million shares in 2016	(591,381)	(589,844)
Total Shareholders’ Equity	2,191,770	2,121,115
Total Liabilities and Shareholders’ Equity	$ 19,647,435	$ 18,944,247

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Consolidated Balance Sheets (Parenthetical) - $ / shares	Jun. 30, 2017	Dec. 31, 2016
Statement of Financial Position [Abstract]
Common stock, par value (in dollars per share)	$ 2.5	$ 2.5
Common stock, shares authorized (in shares)	600,000,000	600,000,000
Common stock, shares issued (in shares)	220,800,000	219,900,000
Treasury stock, shares (in shares)	45,900,000	45,800,000

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Consolidated Statements of Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
INTEREST INCOME
Loans, including fees	$ 148,440	$ 134,643	$ 291,006	$ 268,722
Investment securities:
Taxable	11,474	11,159	23,388	23,162
Tax-exempt	2,856	2,320	5,705	4,360
Dividends	109	135	238	295
Loans held for sale	201	188	388	319
Other interest income	801	864	1,643	1,762
Total Interest Income	163,881	149,309	322,368	298,620
INTEREST EXPENSE
Deposits	12,884	10,887	24,685	21,614
Short-term borrowings	974	217	1,829	485
Federal Home Loan Bank advances and other long-term debt	8,460	9,289	16,712	18,551
Total Interest Expense	22,318	20,393	43,226	40,650
Net Interest Income	141,563	128,916	279,142	257,970
Provision for credit losses	6,700	2,511	11,500	4,041
Net Interest Income After Provision for Credit Losses	134,863	126,405	267,642	253,929
NON-INTEREST INCOME
Other service charges and fees	14,342	12,983	26,779	23,733
Service charges on deposit accounts	12,914	12,896	25,314	25,454
Investment management and trust services	12,132	11,247	23,940	22,235
Mortgage banking income	6,141	3,897	10,737	7,927
Investment securities gains, net	1,436	76	2,542	1,023
Other	5,406	5,038	9,732	8,902
Total Non-Interest Income	52,371	46,137	99,044	89,274
NON-INTEREST EXPENSE
Salaries and employee benefits	74,496	70,029	143,732	139,401
Net occupancy expense	12,316	11,811	24,979	24,031
Other outside services	7,708	5,508	13,254	11,564
Data processing	4,619	5,476	8,905	10,876
Software	4,435	3,953	9,128	7,874
Amortization of tax credit investments	3,151	0	4,149	0
Equipment expense	3,034	2,872	6,393	6,243
Professional fees	2,931	3,353	5,668	5,686
FDIC insurance expense	2,366	2,960	4,424	5,909
Marketing	2,234	1,916	4,220	3,540
Other	15,405	13,759	30,118	26,926
Total Non-Interest Expense	132,695	121,637	254,970	242,050
Income Before Income Taxes	54,539	50,905	111,716	101,153
Income taxes	9,072	11,155	22,869	23,146
Net Income	$ 45,467	$ 39,750	$ 88,847	$ 78,007
PER SHARE:
Net Income (Basic) (in dollars per share)	$ 0.26	$ 0.23	$ 0.51	$ 0.45
Net Income (Diluted) (in dollars per share)	0.26	0.23	0.51	0.45
Cash Dividends (in dollars per share)	$ 0.11	$ 0.10	$ 0.22	$ 0.19

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Consolidated Statements of Comprehensive Income - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Comprehensive Income [Abstract]
Net Income	$ 45,467	$ 39,750	$ 88,847	$ 78,007
Other Comprehensive Income, net of tax:
Unrealized gain on securities	10,268	12,839	14,541	29,865
Reclassification adjustment for securities gains included in net income	(932)	(49)	(1,651)	(665)
Amortization of unrealized loss on derivative financial instruments	0	4	0	8
Amortization of net unrecognized pension and postretirement items	341	32	684	498
Other Comprehensive Income	9,677	12,826	13,574	29,706
Total Comprehensive Income	$ 55,144	$ 52,576	$ 102,421	$ 107,713

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Consolidated Statements of Shareholders' Equity - USD ($) shares in Thousands, $ in Thousands	Total	Common Stock [Member]	Additional Paid-In Capital [Member]	Retained Earnings [Member]	Accumulated Other Comprehensive Income [Member]	Treasury Stock [Member]
Beginning Balance at Dec. 31, 2015	$ 2,041,894	$ 547,141	$ 1,450,690	$ 641,588	$ (22,017)	$ (575,508)
Beginning Balance (in shares) at Dec. 31, 2015		174,176
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	78,007			78,007
Other comprehensive income	29,706				29,706
Stock issued	3,348	$ 389	1,405			1,554
Stock issued, including related tax benefits (in shares)		273
Stock-based compensation awards	3,256		3,256
Acquisition of treasury stock (in shares)		(1,310)
Acquisition of treasury stock	(16,254)					(16,254)
Common stock cash dividends	(32,960)			(32,960)
Ending Balance at Jun. 30, 2016	2,106,997	$ 547,530	1,455,351	686,635	7,689	(590,208)
Ending Balance (in shares) at Jun. 30, 2016		173,139
Beginning Balance at Dec. 31, 2016	2,121,115	$ 549,707	1,467,602	732,099	(38,449)	(589,844)
Beginning Balance (in shares) at Dec. 31, 2016		174,040
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net Income	88,847
Other comprehensive income	13,574				13,574
Stock issued	4,870	$ 2,229	4,178			(1,537)
Stock issued, including related tax benefits (in shares)		877
Stock-based compensation awards	1,769		1,769
Common stock cash dividends	(38,405)			(38,405)
Ending Balance at Jun. 30, 2017	$ 2,191,770	$ 551,936	$ 1,473,549	$ 782,541	$ (24,875)	$ (591,381)
Ending Balance (in shares) at Jun. 30, 2017		174,917

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Consolidated Statements of Shareholders' Equity (Parenthetical) - $ / shares	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement of Stockholders' Equity [Abstract]
Cash dividends per share	$ 0.11	$ 0.10	$ 0.22	$ 0.19

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Consolidated Statements of Cash Flows - USD ($) $ in Thousands	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016
CASH FLOWS FROM OPERATING ACTIVITIES:
Net Income	$ 88,847	$ 78,007
Adjustments to reconcile net income to net cash provided by operating activities:
Provision for credit losses	11,500	4,041
Depreciation and amortization of premises and equipment	13,974	13,804
Net amortization of investment securities premiums	4,775	4,647
Investment securities gains, net	(2,542)	(1,023)
Gain on sales of mortgage loans held for sale	(6,562)	(7,110)
Proceeds from sales of mortgage loans held for sale	283,251	304,516
Originations of mortgage loans held for sale	(281,356)	(314,850)
Amortization of issuance costs on long-term debt	382	193
Stock-based compensation	1,769	3,256
Excess tax benefits from stock-based compensation	0	(28)
Increase in accrued interest receivable	(1,309)	(549)
Increase in other assets	(26,610)	(18,268)
Decrease in accrued interest payable	(1,828)	(2,388)
(Decrease) increase in other liabilities	(9,327)	9,866
Total adjustments	(13,883)	(3,893)
Net cash provided by operating activities	74,964	74,114
CASH FLOWS FROM INVESTING ACTIVITIES:
Proceeds from sales of securities available for sale	29,518	84,972
Proceeds from principal repayments and maturities of securities available for sale	225,788	282,832
Purchase of securities available for sale	(158,078)	(355,220)
Increase in short-term investments	(101,590)	(115,570)
Net increase in loans	(655,172)	(326,902)
Net purchases of premises and equipment	(13,726)	(17,130)
Net cash used in investing activities	(673,260)	(447,018)
CASH FLOWS FROM FINANCING ACTIVITIES:
Net increase in demand and savings deposits	351,329	202,552
Net decrease in time deposits	(6,832)	(42,305)
Increase in short-term borrowings	153,542	224,551
Additions to long-term debt	223,251	16,000
Repayments of long-term debt	(115,075)	(183)
Net proceeds from issuance of common stock	4,870	3,320
Excess tax benefits from stock-based compensation	0	28
Dividends paid	(36,614)	(31,278)
Acquisition of treasury stock	0	(16,254)
Net cash provided by financing activities	574,471	356,431
Net Decrease in Cash and Due From Banks	(23,825)	(16,473)
Cash and Due From Banks at Beginning of Period	118,763	101,120
Cash and Due From Banks at End of Period	94,938	84,647
Cash paid during the period for:
Interest	45,054	43,038
Income taxes	7,016	9,087
Supplemental schedule of certain noncash activities:
Transfer of student loans to loans held for sale	$ 28,990	$ 0

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Basis of Presentation

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of Fulton Financial Corporation (the "Corporation") have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The Corporation evaluates subsequent events through the date of filing of this Form 10-Q with the Securities and Exchange Commission ("SEC").

Recently Issued Accounting Standards

In May 2014, the FASB issued ASC Update 2014-09, "Revenue from Contracts with Customers." This standards update establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle prescribed by this standards update is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard applies to all contracts with customers, except those that are within the scope of other topics in the FASB ASC. The standard also requires significantly expanded disclosures about revenue recognition. During 2016, the FASB issued amendments to this standard (ASC Updates 2016-08, 2016-10, 2016-11 and 2016-12). These amendments provide further clarification to the standard. For public business entities, ASC Update 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is not permitted. For the Corporation, this standards update is effective with its March 31, 2018 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2014-09 on its consolidated financial statements.

In January 2016, the FASB issued ASC Update 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." ASC Update 2016-01 provides guidance regarding the income statement impact of equity investments held by an entity and the recognition of changes in fair value of financial liabilities when the fair value option is elected. This standard will require equity investments to be measured at fair value, with changes recorded in net income. ASC Update 2016-01 is effective for public business entities' annual and interim reporting periods beginning after December 15, 2017, with earlier adoption permitted.The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-01 to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASC Update 2016-02, "Leases." This standards update states that a lessee should recognize the assets and liabilities that arise from all leases with a term greater than 12 months. The core principle requires the lessee to recognize a liability to make lease payments and a "right-of-use" asset. The accounting applied by the lessor is relatively unchanged. The standards update also requires expanded qualitative and quantitative disclosures. For public business entities, ASC Update 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. ASC Update 2016-02 mandates a modified retrospective transition for all entities, which requires restatement of all comparative periods in the year of adoption. Early adoption is permitted. For the Corporation, this standards update is effective with its March 31, 2019 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2016-02 on its consolidated financial statements. The Corporation currently operates a number of branches that are leased, with the leases accounted for as operating leases that are not recognized on the consolidated balance sheet. Under ASC Update 2016-02, right-of-use assets and lease liabilities will need to be recognized on the consolidated balance sheet for these branches. The recognition of operating leases on the consolidated balance sheet is expected to be the most significant impact of the adoption of this standards update.

In June 2016, the FASB issued ASC Update 2016-13, "Financial Instruments - Credit Losses." The new impairment model prescribed by this standards update is a single impairment model for all financial assets (i.e., loans and investments). The recognition of credit losses would be based on an entity’s current estimate of expected losses (referred to as the Current Expected Credit Loss model, or "CECL"), as opposed to recognition of losses only when they are probable under current U.S. GAAP. ASC Update 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2020 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2016-13 on its consolidated financial statements.

In August 2016, the FASB issued ASC Update 2016-15, "Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments." This standards update provides guidance regarding the presentation of certain cash receipts and cash payments in the statement of cash flows, addressing eight specific cash flow classification issues, in order to reduce existing diversity in practice. ASC Update 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-15 to have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASC Update 2016-18, "Statement of Cash Flows - Restricted Cash." This standards update provides guidance regarding the presentation of restricted cash in the statement of cash flows. The updaterequires companies to include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. It also requires an entity to disclose the nature of the restrictions on cash and cash equivalents. ASC Update 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-18 to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASC Update 2017-04, "Intangibles - Goodwill and Other." This standards update eliminates Step 2 of the goodwill impairment test which measures the impairment amount. Identifying and measuring impairment will take place in a single quantitative step. In addition, no separate qualitative assessment for reporting units with zero or negative carrying amount is required. Entities must disclose the existence of these reporting units and the amount of goodwill allocated to them. This update should be applied on a prospective basis, and an entity is required to disclose the nature of and reason for the change in accounting principle upon transition. ASC Update 2017-04 is effective for annual or interim goodwill impairment tests in reporting periods beginning after December 15, 2019. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its 2020 goodwill impairment test and does not expect the adoption of ASC Update 2017-04 to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued ASC Update 2017-07, "Improving the Presentation of Net Periodic Pension Costs and Net Periodic Benefit Cost." This standards update requires a company to present service cost separately from the other components of net benefit cost. In addition, the update provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASC Update 2017-07 is effective for annual or interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and is currently evaluating the impact of the adoption of ASC Update 2017-07 on its consolidated financial statements.

In March 2017, the FASB issued ASC Update 2017-08, "Premium Amortization on Purchased Callable Debt Securities." This standards update requires that a company amortize the premium on callable debt securities to the earliest call date versus current U.S. GAAP which requires amortization over the contractual life of the securities. The amortization period for callable debt securities purchased at a discount would not be impacted by the new accounting standards update. This amendment is to be adopted on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. ASC Update 2017-08 is effective for annual or interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2019 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2017-08 to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASC Update 2017-09, "Scope of Modification Accounting." This standards update provides clarity and reduces both (1) diversity in practice and (2) cost and complexity, when applying the guidance in the stock compensation standard, to a change to the terms or conditions of a share-based payment award. ASC Update 2017-09 is effective for annual or interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2017-09 to have a material impact on its consolidated financial statements.

Reclassifications

Certain amounts in the 2016 consolidated financial statements and notes have been reclassified to conform to the 2017 presentation.

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Net Income Per Share

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Net Income Per Share

Net Income Per Share

Basic net income per share is calculated as net income divided by the weighted average number of shares outstanding. Diluted net income per share is calculated as net income divided by the weighted average number of shares outstanding plus the incremental number of shares added as a result of converting common stock equivalents, calculated using the treasury stock method. The Corporation’s common stock equivalents consist of outstanding stock options, restricted stock units ("RSUs") and performance-based restricted stock units ("PSUs"). PSUs are required to be included in weighted average shares outstanding if performance measures, as defined in each PSU award agreement, are met as of the end of the period.

A reconciliation of weighted average shares outstanding used to calculate basic net income per share and diluted net income per share follows:

	Three months ended June 30		Six months ended June 30
	2017	2016	2017	2016
	(in thousands)
Weighted average shares outstanding (basic)	174,597	173,394	174,375	173,363
Impact of common stock equivalents	935	924	1,179	1,004
Weighted average shares outstanding (diluted)	175,532	174,318	175,554	174,367

For the three and six months ended June 30, 2016, 802,000 and 844,000 stock options, respectively, were excluded from the diluted net income per share computation as their effect would have been anti-dilutive. There were no stock options excluded for the three and six months ended June 30, 2017.

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Accumulated Other Comprehensive Income

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Accumulated Other Comprehensive Income

Accumulated Other Comprehensive Income

The following table presents changes in other comprehensive income:

	Before-Tax Amount			Tax Effect			Net of Tax Amount
	(in thousands)
Three months ended June 30, 2017
Unrealized gain on securities	$	15,798		$	(5,530	)	$	10,268
Reclassification adjustment for securities gains included in net income (1)	(1,436		)	504			(932		)
Amortization of net unrecognized pension and postretirement items (3)	522			(181		)	341
Total Other Comprehensive Income	$	14,884		$	(5,207	)	$	9,677
Three months ended June 30, 2016
Unrealized gain on securities	$	19,753		$	(6,914	)	$	12,839
Reclassification adjustment for securities gains included in net income (1)	(76		)	27			(49		)
Amortization of unrealized loss on derivative financial instruments(2)	6			(2		)	4
Amortization of net unrecognized pension and postretirement items (3)	49			(17		)	32
Total Other Comprehensive Income	$	19,732		$	(6,906	)	$	12,826
Six months ended June 30, 2017
Unrealized gain on securities	$	22,374		$	(7,833	)	$	14,541
Reclassification adjustment for securities gains included in net income (1)	(2,542		)	891			(1,651		)
Amortization of net unrecognized pension and postretirement items (3)	1,051			(367		)	684
Total Other Comprehensive Income	$	20,883		$	(7,309	)	$	13,574
Six months ended June 30, 2016
Unrealized gain on securities	$	45,946		$	(16,081	)	$	29,865
Reclassification adjustment for securities gains included in net income (1)	(1,023		)	358			(665		)
Amortization of unrealized loss on derivative financial instruments (2)	12			(4		)	8
Amortization of net unrecognized pension and postretirement items (3)	766			(268		)	498
Total Other Comprehensive Income	$	45,701		$	(15,995	)	$	29,706

(1) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Investment securities gains, net" on the consolidated statements of income. See Note 4, "Investment Securities," for additional details.

(2) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Interest expense" on the consolidated statements of income.

(3) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Salaries and employee benefits" on the consolidated statements of income. See Note 8, "Employee Benefit Plans," for additional details.

The following table presents changes in each component of accumulated other comprehensive income (loss), net of tax:

	Unrealized Gains (Losses) on Investment Securities Not Other-Than-Temporarily Impaired			Unrealized Non-Credit Gains (Losses) on Other-Than-Temporarily Impaired Debt Securities		Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps			Unrecognized Pension and Postretirement Plan Income (Costs)			Total
	(in thousands)
Three months ended June 30, 2017
Balance at March 31, 2017	$	(19,493	)	$	273	$	—		$	(15,332	)	$	(34,552	)
Other comprehensive income before reclassifications	10,268			—		—			—			10,268
Amounts reclassified from accumulated other comprehensive income (loss)	(932		)	—		—			341			(591		)
Balance at June 30, 2017	$	(10,157	)	$	273	$	—		$	(14,991	)	$	(24,875	)
Three months ended June 30, 2016
Balance at March 31, 2016	$	9,911		$	458	$	(11	)	$	(15,495	)	$	(5,137	)
Other comprehensive income before reclassifications	12,839			—		—			—			12,839
Amounts reclassified from accumulated other comprehensive income (loss)	(49		)	—		4			32			(13		)
Balance at June 30, 2016	$	22,701		$	458	$	(7	)	$	(15,463	)	$	7,689
Six months ended June 30, 2017
Balance at December 31, 2016	$	(23,047	)	$	273	$	—		$	(15,675	)	$	(38,449	)
Other comprehensive income before reclassifications	14,541			—		—			—			14,541
Amounts reclassified from accumulated other comprehensive income (loss)	(1,651		)	—		—			684			(967		)
Balance at June 30, 2017	$	(10,157	)	$	273	$	—		$	(14,991	)	$	(24,875	)
Six months ended June 30, 2016
Balance at December 31, 2015	$	(6,499	)	$	458	$	(15	)	$	(15,961	)	$	(22,017	)
Other comprehensive income before reclassifications	29,865			—		—			—			29,865
Amounts reclassified from accumulated other comprehensive income (loss)	(665		)	—		8			498			(159		)
Balance at June 30, 2016	$	22,701		$	458	$	(7	)	$	(15,463	)	$	7,689

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Investment Securities

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

The following table presents the amortized cost and estimated fair values of investment securities, which were all classified as available for sale:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
June 30, 2017
U.S. Government sponsored agency securities	$	5,960	$	94	$	—		$	6,054
State and municipal securities	405,035		3,726		(7,125		)	401,636
Corporate debt securities	88,887		2,531		(2,426		)	88,992
Collateralized mortgage obligations	546,847		1,399		(9,739		)	538,507
Residential mortgage-backed securities	1,218,257		5,782		(10,974		)	1,213,065
Commercial mortgage-backed securities	121,012		390		(335		)	121,067
Auction rate securities	107,410		—		(9,487		)	97,923
Total debt securities	2,493,408		13,922		(40,086		)	2,467,244
Equity securities	10,487		10,968		—			21,455
Total	$	2,503,895	$	24,890	$	(40,086	)	$	2,488,699

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
December 31, 2016
U.S. Government sponsored agency securities	$	132	$	2	$	—		$	134
State and municipal securities	405,274		2,043		(15,676		)	391,641
Corporate debt securities	112,016		1,978		(4,585		)	109,409
Collateralized mortgage obligations	604,095		1,943		(12,178		)	593,860
Residential mortgage-backed securities	1,328,192		6,546		(16,900		)	1,317,838
Commercial mortgage-backed securities	25,100		—		(537		)	24,563
Auction rate securities	107,215		—		(9,959		)	97,256
Total debt securities	2,582,024		12,512		(59,835		)	2,534,701
Equity securities	12,231		12,295		—			24,526
Total	$	2,594,255	$	24,807	$	(59,835	)	$	2,559,227

Securities carried at $1.7 billion and $1.8 billion as of June 30, 2017 and December 31, 2016, respectively, were pledged as collateral to secure public and trust deposits and customer repurchase agreements.

Equity securities include common stocks of publicly traded financial institutions (estimated fair value of $20.5 million at June 30, 2017 and $23.5 million at December 31, 2016) and other equity investments (estimated fair value of $1.0 million at both June 30, 2017 and December 31, 2016).

As of June 30, 2017, the financial institutions stock portfolio had a cost basis of $9.7 million and an estimated fair value of $20.5 million, including an investment in a single financial institution with a cost basis of $4.3 million and an estimated fair value of $8.8 million. The estimated fair value of this investment accounted for 42.9% of the estimated fair value of the Corporation's investments in the common stocks of publicly traded financial institutions. No other investment in a single financial institution in the financial institutions stock portfolio exceeded 10% of the portfolio's estimated fair value.

The amortized cost and estimated fair values of debt securities as of June 30, 2017, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities as certain investment securities are subject to call or prepayment with or without call or prepayment penalties.

		Amortized Cost		Estimated Fair Value
	(in thousands)
Due in one year or less		$	20,103	$	20,336
Due from one year to five years		27,967		28,335
Due from five years to ten years		111,883		113,050
Due after ten years		447,339		432,884
		607,292		594,605
Residential mortgage-backed securities		1,218,257		1,213,065
Commercial mortgage-backed securities		121,012		121,067
Collateralized mortgage obligations		546,847		538,507
Total debt securities		$	2,493,408	$	2,467,244

The following table presents information related to the gross realized gains and losses on the sales of equity and debt securities:

	Gross Realized Gains		Gross Realized Losses			Net Gains (Losses)
Three months ended June 30, 2017	(in thousands)
Equity securities	$	1,305	$	—		$	1,305
Debt securities	145		(14		)	131
Total	$	1,450	$	(14	)	$	1,436
Three months ended June 30, 2016
Equity securities	$	4	$	(10	)	$	(6	)
Debt securities	108		(26		)	82
Total	$	112	$	(36	)	$	76
Six months ended June 30, 2017
Equity securities	$	2,350	$	—		$	2,350
Debt securities	206		(14		)	192
Total	$	2,556	$	(14	)	$	2,542
Six months ended June 30, 2016
Equity securities	$	737	$	(10	)	$	727
Debt securities	322		(26		)	296
Total	$	1,059	$	(36	)	$	1,023

The cumulative balance of credit related other-than-temporary impairment charges, previously recognized as components of earnings, for debt securities held by the Corporation at June 30, 2017 and June 30, 2016 was $10.0 million. There were no other-than-temporary impairment charges recognized for the three and six months ended June 30, 2017 and June 30, 2016.

The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016:

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
June 30, 2017	(in thousands)
State and municipal securities	$	214,497	$	(7,125	)	$	—	$	—		$	214,497	$	(7,125	)
Corporate debt securities	4,020		(9		)	32,148		(2,417		)	36,168		(2,426		)
Collateralized mortgage obligations	144,523		(3,057		)	231,936		(6,682		)	376,459		(9,739		)
Residential mortgage-backed securities	896,206		(10,974		)	—		—			896,206		(10,974		)
Commercial mortgage-backed securities	68,546		(335		)	—		—			68,546		(335		)
Auction rate securities	—		—			97,923		(9,487		)	97,923		(9,487		)
Total debt securities	$	1,327,792	$	(21,500	)	$	362,007	$	(18,586	)	$	1,689,799	$	(40,086	)

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
December 31, 2016	(in thousands)
State and municipal securities	$	247,509	$	(15,676	)	$	—	$	—		$	247,509	$	(15,676	)
Corporate debt securities	11,922		(110		)	34,629		(4,475		)	46,551		(4,585		)
Collateralized mortgage obligations	166,905		(3,899		)	258,237		(8,279		)	425,142		(12,178		)
Residential mortgage-backed securities	1,112,947		(16,900		)	—		—			1,112,947		(16,900		)
Commercial mortgage-backed securities	24,563		(537		)	—		—			24,563		(537		)
Auction rate securities	—		—			97,256		(9,959		)	97,256		(9,959		)
Total debt securities	$	1,563,846	$	(37,122	)	$	390,122	$	(22,713	)	$	1,953,968	$	(59,835	)

The change in fair value of these securities is attributable to changes in interest rates and not credit quality, and the Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost. Therefore, the Corporation does not consider these investments to be other-than-temporarily impaired as of June 30, 2017.

As of June 30, 2017, all of the auction rate securities (auction rate certificates, or "ARCs"), were rated above investment grade. All of the loans underlying the ARCs have principal payments which are guaranteed by the federal government. As of June 30, 2017, all ARCs were current and making scheduled interest payments, and based on management’s evaluations, were not subject to any other-than-temporary impairment charges as of June 30, 2017. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

The majority of the Corporation's available for sale corporate debt securities are issued by financial institutions. The following table presents the amortized cost and estimated fair value of corporate debt securities:

	June 30, 2017				December 31, 2016
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
	(in thousands)
Single-issuer trust preferred securities	$	43,795	$	42,478	$	43,746	$	39,829
Subordinated debt	29,069		29,697		46,231		46,723
Senior debt	12,035		12,407		18,037		18,433
Pooled trust preferred securities	—		422		—		422
Corporate debt securities issued by financial institutions	84,899		85,004		108,014		105,407
Other corporate debt securities	3,988		3,988		4,002		4,002
Available for sale corporate debt securities	$	88,887	$	88,992	$	112,016	$	109,409

Single-issuer trust preferred securities had an unrealized loss of $1.3 million at June 30, 2017. Six of the 19 single-issuer trust preferred securities, with an amortized cost of $11.6 million and an estimated fair value of $10.9 million at June 30, 2017, were rated below investment grade by at least one ratings agency. All of the single-issuer trust preferred securities rated below investment grade were rated "BB" and "Ba". Two single-issuer trust preferred securities with an amortized cost of $3.8 million and an estimated fair value of $2.8 million at June 30, 2017 were not rated by any ratings agency.

Based on management’s evaluations, no corporate debt securities were subject to any other-than-temporary impairment charges as of June 30, 2017. The Corporation does not have the intent to sell and does not believe it will more likely than not be required to sell any of these securities prior to a recovery of their fair value to amortized cost, which may be at maturity.

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Loans and Allowance for Credit Losses

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Loans and Allowance for Credit Losses

Loans and Allowance for Credit Losses

Loans, Net of Unearned Income

Loans, net of unearned income are summarized as follows:

	June 30, 2017			December 31, 2016
	(in thousands)
Real-estate - commercial mortgage	$	6,262,008		$	6,018,582
Commercial - industrial, financial and agricultural	4,245,849			4,087,486
Real-estate - residential mortgage	1,784,712			1,601,994
Real-estate - home equity	1,579,739			1,625,115
Real-estate - construction	938,900			843,649
Consumer	283,156			291,470
Leasing and other	269,787			246,704
Overdrafts	4,435			3,662
Loans, gross of unearned income	15,368,586			14,718,662
Unearned income	(21,969		)	(19,390		)
Loans, net of unearned income	$	15,346,617		$	14,699,272

Allowance for Credit Losses

The allowance for credit losses consists of the allowance for loan losses and the reserve for unfunded lending commitments. The allowance for loan losses represents management’s estimate of incurred losses in the loan portfolio as of the balance sheet date and is recorded as a reduction to loans. The reserve for unfunded lending commitments represents management’s estimate of incurred losses in its unfunded loan commitments and is recorded in other liabilities on the consolidated balance sheets. The allowance for credit losses is increased by charges to expense, through the provision for credit losses, and decreased by charge-offs, net of recoveries.

The Corporation’s allowance for credit losses includes: (1) specific allowances allocated to loans evaluated for impairment under FASB ASC Section 310-10-35; and (2) allowances calculated for pools of loans measured for impairment under FASB ASC Subtopic 450-20.

The Corporation segments its loan portfolio by general loan type, or "portfolio segments," as presented in the table under the heading, "Loans, Net of Unearned Income," above. Certain portfolio segments are further disaggregated and evaluated collectively for impairment based on "class segments," which are largely based on the type of collateral underlying each loan. Commercial loans include both secured and unsecured loans. Construction loan class segments include loans secured by commercial real estate, loans to commercial borrowers secured by residential real estate and loans to individuals secured by residential real estate. Consumer loan class segments include direct consumer installment loans and indirect vehicle loans.

The following table presents the components of the allowance for credit losses:

	June 30, 2017		December 31, 2016
	(in thousands)
Allowance for loan losses	$	172,342	$	168,679
Reserve for unfunded lending commitments	2,656		2,646
Allowance for credit losses	$	174,998	$	171,325

The following table presents the activity in the allowance for credit losses:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Balance at beginning of period	$	172,647		$	166,065		$	171,325		$	171,412
Loans charged off	(8,715		)	(10,746		)	(18,122		)	(21,901		)
Recoveries of loans previously charged off	4,366			7,278			10,295			11,556
Net loans charged off	(4,349		)	(3,468		)	(7,827		)	(10,345		)
Provision for credit losses	6,700			2,511			11,500			4,041
Balance at end of period	$	174,998		$	165,108		$	174,998		$	165,108

The Corporation has historically maintained an unallocated allowance for credit losses for factors and conditions that exist at the balance sheet date, but are not specifically identifiable, and to recognize the inherent imprecision in estimating and measuring loss exposure. During the second quarter of 2017, enhancements were made to allow for the impact of these factors and conditions to be quantified in the allowance allocation process. Accordingly, an unallocated allowance for credit losses is no longer necessary.

The following table presents the activity in the allowance for loan losses by portfolio segment:

	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing, other and overdrafts			Unallocated			Total
	(in thousands)
Three months ended June 30, 2017
Balance at March 31, 2017	$	47,373		$	55,309		$	23,821		$	22,018		$	7,501		$	3,031		$	3,268		$	7,755		$	170,076
Loans charged off	(242		)	(5,353		)	(592		)	(124		)	(774		)	(430		)	(1,200		)	—			(8,715		)
Recoveries of loans previously charged off	934			1,974			215			151			373			470			249			—			4,366
Net loans charged off	692			(3,379		)	(377		)	27			(401		)	40			(951		)	—			(4,349		)
Provision for loan losses (1)	9,307			15,712			(5,988		)	(5,606		)	2,434			(1,277		)	(212		)	(7,755		)	6,615
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Three months ended June 30, 2016
Balance at March 31, 2016	$	48,311		$	54,333		$	22,524		$	19,928		$	6,282		$	2,324		$	2,974		$	7,165		$	163,841
Loans charged off	(1,474		)	(4,625		)	(1,045		)	(340		)	(742		)	(569		)	(1,951		)	—			(10,746		)
Recoveries of loans previously charged off	1,367			2,931			350			420			1,563			539			108			—			7,278
Net loans charged off	(107		)	(1,694		)	(695		)	80			821			(30		)	(1,843		)	—			(3,468		)
Provision for loan losses (1)	(4,464		)	(884		)	4,341			1,218			(1,331		)	690			1,387			1,216			2,173
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546
Six months ended June 30, 2017
Balance at December 31, 2016	$	46,842		$	54,353		$	26,801		$	22,929		$	6,455		$	3,574		$	3,192		$	4,533		$	168,679
Loans charged off	(1,466		)	(10,880		)	(1,290		)	(340		)	(1,021		)	(1,286		)	(1,839		)	—			(18,122		)
Recoveries of loans previously charged off	1,384			6,165			352			381			921			706			386			—			10,295
Net loans charged off	(82		)	(4,715		)	(938		)	41			(100		)	(580		)	(1,453		)	—			(7,827		)
Provision for loan losses (1)	10,612			18,004			(8,407		)	(6,531		)	3,179			(1,200		)	366			(4,533		)	11,490
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Six months ended June 30, 2016
Balance at December 31, 2015	$	47,866		$	57,098		$	22,405		$	21,375		$	6,529		$	2,585		$	2,468		$	8,728		$	169,054
Loans charged off	(2,056		)	(10,813		)	(2,586		)	(1,408		)	(1,068		)	(1,576		)	(2,394		)	—			(21,901		)
Recoveries of loans previously charged off	2,192			5,250			688			556			1,946			735			189			—			11,556
Net loans charged off	136			(5,563		)	(1,898		)	(852		)	878			(841		)	(2,205		)	—			(10,345		)
Provision for loan losses (1)	(4,262		)	220			5,663			703			(1,635		)	1,240			2,255			(347		)	3,837
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546

(1) The provision for loan losses excluded an $85,000 and a $10,000 increase, respectively, in the reserve for unfunded lending commitments for the three and six months ended June 30, 2017 and a $338,000 and $204,000 increase, respectively, in the reserve for unfunded lending commitments for the three and    six months ended June 30, 2016.

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:

	Real Estate - Commercial Mortgage		Commercial - Industrial, Financial and Agricultural		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Leasing, other and overdrafts		Unallocated		Total
	(in thousands)
Allowance for loan losses at June 30, 2017:
Measured for impairment under FASB ASC Subtopic 450-20	$	49,055	$	57,341	$	7,607	$	6,013	$	5,370	$	1,773	$	2,105	$	—	$	129,264
Evaluated for impairment under FASB ASC Section 310-10-35	8,317		10,301		9,849		10,426		4,164		21		—		N/A		43,078
	$	57,372	$	67,642	$	17,456	$	16,439	$	9,534	$	1,794	$	2,105	$	—	$	172,342
Loans, net of unearned income at June 30, 2017:
Measured for impairment under FASB ASC Subtopic 450-20	$	6,212,998	$	4,189,676	$	1,557,989	$	1,741,404	$	921,839	$	283,123	$	252,253	N/A		$	15,159,282
Evaluated for impairment under FASB ASC Section 310-10-35	49,010		56,173		21,750		43,308		17,061		33		—		N/A		187,335
	$	6,262,008	$	4,245,849	$	1,579,739	$	1,784,712	$	938,900	$	283,156	$	252,253	N/A		$	15,346,617
Allowance for loan losses at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	32,861	$	40,945	$	17,089	$	9,044	$	4,004	$	2,971	$	2,518	$	8,381	$	117,813
Evaluated for impairment under FASB ASC Section 310-10-35	10,879		10,810		9,081		12,182		1,768		13		—		N/A		44,733
	$	43,740	$	51,755	$	26,170	$	21,226	$	5,772	$	2,984	$	2,518	$	8,381	$	162,546
Loans, net of unearned income at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,582,027	$	4,057,883	$	1,629,443	$	1,399,399	$	841,193	$	278,053	$	194,254	N/A		$	13,982,252
Evaluated for impairment under FASB ASC Section 310-10-35	53,320		41,294		17,876		47,893		12,506		18		—		N/A		172,907
	$	5,635,347	$	4,099,177	$	1,647,319	$	1,447,292	$	853,699	$	278,071	$	194,254	N/A		$	14,155,159

N/A - Not applicable.

Impaired Loans

A loan is considered to be impaired if it is probable that all amounts will not be collected according to the contractual terms of the loan agreement. Impaired loans consist of all loans on non-accrual status and accruing troubled debt restructurings ("TDRs"). An allowance for loan losses is established for an impaired loan if its carrying value exceeds its estimated fair value. Impaired loans to borrowers with total outstanding commitments greater than or equal to $1.0 million are evaluated individually for impairment. Impaired loans to borrowers with total outstanding commitments less than $1.0 million are pooled and measured for impairment collectively.

All loans individually evaluated for impairment under FASB ASC Section 310-10-35 are measured for losses on a quarterly basis. As of June 30, 2017 and December 31, 2016, substantially all of the Corporation’s individually evaluated impaired loans with total outstanding balances greater than or equal to $1.0 million were measured based on the estimated fair value of each loan’s collateral. Collateral could be in the form of real estate, in the case of impaired commercial mortgages and construction loans, or business assets, such as accounts receivable or inventory, in the case of commercial and industrial loans. Commercial and industrial loans may also be secured by real property.

As of June 30, 2017 and 2016, approximately 87% and 89%, respectively, of impaired loans with principal balances greater than or equal to $1.0 million, whose primary collateral is real estate, were measured at estimated fair value of the collateral using state certified third-party appraisals that had been updated in the preceding 12 months.

When updated appraisals are not obtained for loans evaluated for impairment under FASB ASC Section 310-10-35 that are secured by real estate, fair values are estimated based on the original appraisal values, as long as the original appraisal indicated an acceptable loan-to-value position and, in the opinion of the Corporation's internal credit administration staff, there has not been a significant deterioration in the collateral value since the original appraisal was performed. Original appraisals are typically used only when the estimated collateral value, as adjusted for the age of the appraisal, results in a current loan-to-value ratio that is lower than the Corporation's loan-to-value requirements for new loans, generally less than 70%.

The following table presents total impaired loans by class segment:

	June 30, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	25,219	$	22,396	$	—	$	28,757	$	25,447	$	—
Commercial - secured	43,206		36,036		—		29,296		25,526		—
Real estate - residential mortgage	4,629		4,629		—		4,689		4,689		—
Construction - commercial residential	10,054		8,044		—		6,271		4,795		—
Construction - commercial	598		590		—		—		—		—
	83,706		71,695				69,013		60,457
With a related allowance recorded:
Real estate - commercial mortgage	34,131		26,614		8,317		37,132		29,446		10,162
Commercial - secured	23,576		19,479		9,947		27,767		22,626		13,198
Commercial - unsecured	912		658		354		1,122		823		455
Real estate - home equity	25,753		21,750		9,849		23,971		19,205		9,511
Real estate - residential mortgage	45,300		38,679		10,426		48,885		41,359		11,897
Construction - commercial residential	10,479		7,210		3,725		10,103		4,206		1,300
Construction - commercial	186		126		45		681		435		145
Construction - other	1,096		1,091		394		1,096		1,096		423
Consumer - direct	18		18		12		21		21		14
Consumer - indirect	16		15		9		19		19		12
	141,467		115,640		43,078		150,797		119,236		47,117
Total	$	225,173	$	187,335	$	43,078	$	219,810	$	179,693	$	47,117

As of June 30, 2017 and December 31, 2016, there were $71.7 million and $60.5 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or they were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents average impaired loans by class segment:

	Three months ended June 30								Six months ended June 30
	2017				2016				2017				2016
	Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	22,316	$	71	$	22,762	$	72	$	23,360	$	141	$	22,707	141
Commercial - secured	30,829		46		15,182		20		29,061		82		14,688		36
Real estate - residential mortgage	4,643		26		6,191		33		4,658		52		5,724		63
Construction - commercial residential	6,368		4		6,421		16		5,844		6		7,236		35
Construction - commercial	597		—		—		—		398		—		—		—
	64,753		147		50,556		141		63,321		281		50,355		275
With a related allowance recorded:
Real estate - commercial mortgage	27,710		88		33,042		104		28,288		173		33,927		212
Commercial - secured	20,675		31		25,919		33		21,325		63		28,489		71
Commercial - unsecured	712		—		929		1		749		—		893		2
Real estate - home equity	20,352		117		17,950		70		19,969		212		17,222		127
Real estate - residential mortgage	39,500		225		41,928		226		40,119		455		43,164		461
Construction - commercial residential	7,248		4		5,566		14		6,234		7		5,807		29
Construction - commercial	104		—		548		—		214		—		578		—
Construction - other	1,094		—		513		—		1,094		—		406		—
Consumer - direct	19		—		10		—		19		—		16		—
Consumer - indirect	17		—		15		—		17		—		11		—
Leasing, other and overdrafts	—		—		711		—		475		—		949		—
	117,431		465		127,131		448		118,503		910		131,462		902
Total	$	182,184	$	612	$	177,687	$	589	$	181,824	$	1,191	$	181,817	1,177

(1) All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three and six months ended June 30, 2017 and 2016 represents amounts earned on accruing TDRs.

Credit Quality Indicators and Non-performing Assets

The following is a summary of the Corporation's internal risk rating categories:

• Pass: These loans do not currently pose undue credit risk and can range from the highest to average quality, depending on the degree of potential risk.

• Special Mention: These loans constitute an undue and unwarranted credit risk, but not to a point of justifying a classification of substandard. Loans in this category are currently acceptable, but are nevertheless potentially weak.

• Substandard or Lower: These loans are inadequately protected by current sound worth and paying capacity of the borrower. There exists a well-defined weakness or weaknesses that jeopardize the normal repayment of the debt.

The following table presents internal credit risk ratings for the indicated loan class segments:

	Pass						Special Mention						Substandard or Lower						Total
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - commercial mortgage	$	6,004,958		$	5,763,122		$	119,534		$	132,484		$	137,516		$	122,976		$	6,262,008		$	6,018,582
Commercial - secured	3,813,864			3,686,152			119,119			128,873			169,602			118,527			4,102,585			3,933,552
Commercial - unsecured	134,455			145,922			6,264			4,481			2,545			3,531			143,264			153,934
Total commercial - industrial, financial and agricultural	3,948,319			3,832,074			125,383			133,354			172,147			122,058			4,245,849			4,087,486
Construction - commercial residential	131,115			113,570			9,789			15,447			16,387			13,172			157,291			142,189
Construction - commercial	718,702			635,963			4,727			3,412			5,220			5,115			728,649			644,490
Total construction (excluding Construction - other)	849,817			749,533			14,516			18,859			21,607			18,287			885,940			786,679
	$	10,803,094		$	10,344,729		$	259,433		$	284,697		$	331,270		$	263,321		$	11,393,797		$	10,892,747
% of Total	94.8		%	95.0		%	2.3		%	2.6		%	2.9		%	2.4		%	100.0		%	100.0		%

The risk rating process allows management to identify credits that potentially carry more risk in a timely manner and to allocate resources to managing troubled accounts. The Corporation believes that internal risk ratings are the most relevant credit quality indicator for the class segments presented above. The migration of loans through the various internal risk rating categories is a significant component of the allowance for credit loss methodology, which bases the probability of default on this migration. Assigning risk ratings involves judgment. The Corporation's loan review officers provide an independent assessment of risk rating accuracy. Ratings may be changed based on the ongoing monitoring procedures performed by loan officers or credit administration staff, or if specific loan review activities identify a deterioration or an improvement in the loan.

The Corporation does not assign internal risk ratings to smaller balance, homogeneous loans, such as home equity, residential mortgage, construction loans to individuals secured by residential real estate, consumer and lease receivables. For these loans, the most relevant credit quality indicator is delinquency status. The migration of loans through the various delinquency status categories is a significant component of the allowance for credit losses methodology for those loans, which bases the probability of default on this migration.

The following table presents a summary of performing, delinquent and non-performing loans for the indicated loan class segments:

	Performing						Delinquent (1)						Non-performing (2)						Total
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - home equity	$	1,557,629		$	1,602,687		$	10,223		$	9,274		$	11,887		$	13,154		$	1,579,739		$	1,625,115
Real estate - residential mortgage	1,746,977			1,557,995			15,889			20,344			21,846			23,655			1,784,712			1,601,994
Construction - other	51,869			55,874			—			—			1,091			1,096			52,960			56,970
Consumer - direct	55,825			93,572			1,761			1,752			1,143			1,563			58,729			96,887
Consumer - indirect	222,380			190,656			1,921			3,599			126			328			224,427			194,583
Total consumer	278,205			284,228			3,682			5,351			1,269			1,891			283,156			291,470
Leasing	251,050			229,591			922			1,068			281			317			252,253			230,976
	$	3,885,730		$	3,730,375		$	30,716		$	36,037		$	36,374		$	40,113		$	3,952,820		$	3,806,525
% of Total	98.3		%	98.0		%	0.8		%	0.9		%	0.9		%	1.1		%	100.0		%	100.0		%

(1) Includes all accruing loans 30 days to 89 days past due.

(2) Includes all accruing loans 90 days or more past due and all non-accrual loans.

The following table presents non-performing assets:

	June 30, 2017		December 31, 2016
	(in thousands)
Non-accrual loans	$	122,600	$	120,133
Loans 90 days or more past due and still accruing	13,143		11,505
Total non-performing loans	135,743		131,638
Other real estate owned (OREO)	11,432		12,815
Total non-performing assets	$	147,175	$	144,453

The following tables present past due status and non-accrual loans by portfolio segment and class segment:

	June 30, 2017
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	8,259	$	676	$	309	$	32,267	$	32,576	$	41,511	$	6,220,497	$	6,262,008
Commercial - secured	6,411		2,425		3,135		47,489		50,624		59,460		4,043,125		4,102,585
Commercial - unsecured	430		57		98		598		696		1,183		142,081		143,264
Total commercial - industrial, financial and agricultural	6,841		2,482		3,233		48,087		51,320		60,643		4,185,206		4,245,849
Real estate - home equity	8,103		2,120		2,167		9,720		11,887		22,110		1,557,629		1,579,739
Real estate - residential mortgage	12,640		3,249		4,906		16,940		21,846		37,735		1,746,977		1,784,712
Construction - commercial residential	538		20		978		13,779		14,757		15,315		141,976		157,291
Construction - commercial	—		—		—		716		716		716		727,933		728,649
Construction - other	—		—		—		1,091		1,091		1,091		51,869		52,960
Total real estate - construction	538		20		978		15,586		16,564		17,122		921,778		938,900
Consumer - direct	1,054		707		1,143		—		1,143		2,904		55,825		58,729
Consumer - indirect	1,708		213		126		—		126		2,047		222,380		224,427
Total consumer	2,762		920		1,269		—		1,269		4,951		278,205		283,156
Leasing, other and overdrafts	671		251		281		—		281		1,203		251,050		252,253
Total	$	39,814	$	9,718	$	13,143	$	122,600	$	135,743	$	185,275	$	15,161,342	$	15,346,617

	December 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	6,254	$	1,622	$	383	$	38,936	$	39,319	$	47,195	$	5,971,387	$	6,018,582
Commercial - secured	6,660		2,616		959		41,589		42,548		51,824		3,881,728		3,933,552
Commercial - unsecured	898		35		152		760		912		1,845		152,089		153,934
Total commercial - industrial, financial and agricultural	7,558		2,651		1,111		42,349		43,460		53,669		4,033,817		4,087,486
Real estate - home equity	6,596		2,678		2,543		10,611		13,154		22,428		1,602,687		1,625,115
Real estate - residential mortgage	15,600		4,744		5,224		18,431		23,655		43,999		1,557,995		1,601,994
Construction - commercial residential	233		51		36		8,275		8,311		8,595		133,594		142,189
Construction - commercial	743		—		—		435		435		1,178		643,312		644,490
Construction - other	—		—		—		1,096		1,096		1,096		55,874		56,970
Total real estate - construction	976		51		36		9,806		9,842		10,869		832,780		843,649
Consumer - direct	1,211		541		1,563		—		1,563		3,315		93,572		96,887
Consumer - indirect	3,200		399		328		—		328		3,927		190,656		194,583
Total consumer	4,411		940		1,891		—		1,891		7,242		284,228		291,470
Leasing, other and overdrafts	543		525		317		—		317		1,385		229,591		230,976
Total	$	41,938	$	13,211	$	11,505	$	120,133	$	131,638	$	186,787	$	14,512,485	$	14,699,272

The following table presents TDRs, by class segment:

	June 30, 2017		December 31, 2016
	(in thousands)
Real-estate - residential mortgage	$	26,368	$	27,617
Real-estate - commercial mortgage	13,772		15,957
Real estate - home equity	12,031		8,594
Commercial	8,086		6,627
Construction	1,475		726
Consumer	33		39
Total accruing TDRs	61,765		59,560
Non-accrual TDRs (1)	29,373		27,850
Total TDRs	$	91,138	$	87,410

(1) Included in non-accrual loans in the preceding table detailing non-performing assets.

As of June 30, 2017 and December 31, 2016, there were $2.6 million and $3.6 million of commitments, respectively, to lend additional funds to borrowers whose loans were modified under TDRs.

The following table presents TDRs, by class segment and type of concession for loans that were modified during the three and six months ended June 30, 2017 and 2016:

		Three months ended June 30						Six months ended June 30
		2017			2016			2017			2016
		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment
		(dollars in thousands)
Real estate – residential mortgage:
	Extend maturity without rate concession	—	$	—	2	$	315	2	$	337	2	$	315
	Bankruptcy	1	157		1	373		2	335		1	373
Real estate - commercial mortgage:
	Extend maturity without rate concession	3	663		—	—		4	981		—	$	—
	Bankruptcy	1	12		—	—		1	12		—	$	—
Real estate - home equity:
	Extend maturity without rate concession	17	1,275		18	738		33	2,559		39	$	1,995
	Bankruptcy	10	1,063		5	231		17	1,516		22	$	1,716
Commercial:
	Extend maturity without rate concession	4	2,567		4	1,146		8	5,693		6	1,976
	Bankruptcy	1	490		—	—		1	490		—	—
Commercial – unsecured:
	Extend maturity without rate concession	1	33		—	—		1	33		2	103
Construction - commercial residential:
	Extend maturity without rate concession	1	1,204		—	—		1	1,204		—	—
Consumer - indirect:
	Bankruptcy	—	—		—	—		—	—		1	2
Total		39	$	7,464	30	$	2,803	70	$	13,160	73	$	6,480

The following table presents TDRs, by class segment, as of June 30, 2017 and 2016, that were modified in the previous 12 months and had a post-modification payment default during the six months ended June 30, 2017 and 2016. The Corporation defines a payment default as a single missed payment.

	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - residential mortgage	7	$	1,911	5	$	972
Real estate - commercial mortgage	3	674		2	132
Real estate - home equity	16	922		22	1,448
Commercial	5	2,772		5	1,123
Consumer	1	16		—	—
Total	32	$	6,295	34	$	3,675

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Mortgage Servicing Rights

6 Months Ended

Jun. 30, 2017

Transfers and Servicing [Abstract]

Mortgage Servicing Rights

Mortgage Servicing Rights

The following table summarizes the changes in mortgage servicing rights ("MSRs"), which are included in other assets on the consolidated balance sheets:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Amortized cost:
Balance at beginning of period	$	38,543		$	40,195		$	38,822		$	40,944
Originations of mortgage servicing rights	1,203			1,508			2,386			2,428
Amortization	(1,566		)	(1,829		)	(3,028		)	(3,498		)
Balance at end of period	$	38,180		$	39,874		$	38,180		$	39,874
Valuation allowance:
Balance at beginning of period	$	(1,291	)	$	—		$	(1,291	)	$	—
(Additions) reductions to valuation allowance	1,291			(1,721		)	1,291			(1,721		)
Balance at end of period	$	—		$	(1,721	)	$	—		$	(1,721	)
Net MSRs at end of period	$	38,180		$	38,153		$	38,180		$	38,153

MSRs represent the economic value of existing contractual rights to service mortgage loans that have been sold. Accordingly, actual and expected prepayments of the underlying mortgage loans can impact the value of MSRs. The Corporation accounts for MSRs at the lower of amortized cost or fair value.

The fair value of MSRs is estimated by discounting the estimated cash flows from servicing income, net of expense, over the expected life of the underlying loans at a discount rate commensurate with the risk associated with these assets. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. Based on its fair value analysis, the Corporation determined that a reduction to the valuation allowance of $1.3 million was appropriate for the three and six months ended June 30, 2017. An addition to the valuation allowance of $1.7 million was determined to be necessary for the three and six months ended June 30, 2016. Additions and reductions to the valuation allowance are recorded as decreases and increases, respectively, to "mortgage banking income" on the consolidated statements of income.

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Stock-Based Compensation

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Stock-Based Compensation

Stock-Based Compensation

The Corporation grants equity awards to employees, consisting of stock options, restricted stock, RSUs and PSUs under its Amended and Restated Equity and Cash Incentive Compensation Plan ("Employee Equity Plan"). In addition, employees may purchase stock under the Corporation’s Employee Stock Purchase Plan. The fair value of equity awards granted to employees is recognized as compensation expense over the period during which employees are required to provide service in exchange for such awards. Compensation expense for PSUs is also recognized over the period during which employees are required to provide service in exchange for such awards, however, compensation expense may vary based on the expectations for actual performance relative to defined performance measures.

The Corporation also grants equity awards to non-employee members of its board of directors under the 2011 Directors’ Equity Participation Plan ("Directors’ Plan"). Under the Directors’ Plan, the Corporation can grant equity awards to non-employee holding company and subsidiary bank directors in the form of stock options, restricted stock or common stock.

Equity awards issued under the Employee Equity Plan are generally granted annually and become fully vested over or after a three-year vesting period. The vesting period for non-performance-based awards represents the period during which employees are required to provide service in exchange for such awards. Equity awards under the Directors' Plan generally vest immediately upon grant. Certain events, as defined in the Employee Equity Plan and the Directors' Plan, result in the acceleration of the vesting of equity awards.

The following table presents compensation (benefit) expense and the related tax benefits for equity awards recognized in the consolidated statements of income:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Stock-based compensation expense	$	1,035		$	1,820		$	1,769		$	3,256
Tax benefit	(1,940		)	(642		)	(2,684		)	(1,075		)
Stock-based compensation expense, net of tax benefit	$	(905	)	$	1,178		$	(915	)	$	2,181

For the three and six months endedJune 30, 2017, the tax benefit exceeded the stock-based compensation expense as a result of excess tax benefits arising from corporate stock price levels, stock option exercises and vesting restricted stock, RSUs and PSUs during these periods, which were recorded as reductions to income tax expense as required under ASU 2016-09.

Stock option fair values are estimated through the use of the Black-Scholes valuation methodology as of the date of grant. Stock options carry terms of up to ten years. Fair values for restricted stock, RSUs and a majority of PSUs are based on the trading price of the Corporation’s stock on the date of grant and earn dividends or dividend equivalents during the vesting period, which are forfeitable if the awards do not vest. The fair value of certain PSUs are estimated through the use of the Monte Carlo valuation methodology as of the date of grant.

As of June 30, 2017, the Employee Equity Plan had 10.7 million shares reserved for future grants through 2023, and the Directors’ Plan had approximately 360,000 shares reserved for future grants through 2021. On May 1, 2017, the Corporation granted approximately 284,000 PSUs and 140,000 RSUs under the Employee Equity Plan. On June 1, 2017, the Corporation granted approximately 11,000 shares of common stock to its directors for a total expense of $193,000 recognized in other expense.

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Employee Benefit Plans

6 Months Ended

Jun. 30, 2017

Compensation and Retirement Disclosure [Abstract]

Employee Benefit Plans

Employee Benefit Plans

The net periodic benefit cost for the Corporation’s Defined Benefit Pension Plan ("Pension Plan") consisted of the following components:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Service cost (1)	$	—		$	194		$	—		$	344
Interest cost	830			879			1,660			1,760
Expected return on plan assets	(451		)	(433		)	(902		)	(1,159		)
Net amortization and deferral	663			428			1,326			1,210
Net periodic benefit cost	$	1,042		$	1,068		$	2,084		$	2,155

(1) The Pension Plan was curtailed effective January 1, 2008. Service cost was related to administrative costs associated with the plan and was not due to the accrual of additional participant benefits.

The net periodic benefit of the Corporation’s Postretirement Benefits Plan ("Postretirement Plan") consisted of the following components:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Interest cost	$	17		$	5		$	34		$	43
Expected return on plan assets	—			(1		)	—			(1		)
Net accretion and deferral	(141		)	(210		)	(282		)	(275		)
Net periodic benefit	$	(124	)	$	(206	)	$	(248	)	$	(233	)

The Corporation recognizes the funded status of its Pension Plan and Postretirement Plan on the consolidated balance sheets and recognizes the change in that funded status through other comprehensive income.

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Derivative Financial Instruments

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Financial Instruments

Derivative Financial Instruments

The Corporation manages its exposure to certain interest rate and foreign currency risks through the use of derivatives. None of the Corporation's outstanding derivative contracts are designated as hedges, and none are entered into for speculative purposes. Derivative instruments are carried at fair value, with changes in fair values recognized in earnings as components of non-interest income and non-interest expense on the consolidated statements of income.

Derivative contracts create counterparty credit risk with both the Corporation's customers and with institutional derivative counterparties. The Corporation manages counterparty credit risk through its credit approval processes, monitoring procedures and obtaining adequate collateral, when the Corporation determines it is appropriate to do so and in accordance with counterparty contracts.

Mortgage Banking Derivatives

In connection with its mortgage banking activities, the Corporation enters into commitments to originate certain fixed-rate residential mortgage loans for customers, also referred to as interest rate locks. In addition, the Corporation enters into forward commitments for the future sales or purchases of mortgage-backed securities to or from third-party counterparties to hedge the effect of changes in interest rates on the values of both the interest rate locks and mortgage loans held for sale. Forward sales commitments may also be in the form of commitments to sell individual mortgage loans at a fixed price at a future date. The amount necessary to settle each interest rate lock is based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Gross derivative assets and liabilities are recorded in other assets and other liabilities, respectively, on the consolidated balance sheets, and changes in fair values during the period are recorded in mortgage banking income on the consolidated statements of income.

Interest Rate Swaps

The Corporation enters into interest rate swaps with certain qualifying commercial loan customers to meet their interest rate risk management needs. The Corporation simultaneously enters into interest rate swaps with dealer counterparties, with identical notional amounts and terms. The net result of these interest rate swaps is that the customer pays a fixed rate of interest and the Corporation receives a floating rate. These interest rate swaps are derivative financial instruments and the gross fair values are recorded in other assets and other liabilities on the consolidated balance sheets, with changes in fair values during the period recorded in other non-interest expense on the consolidated statements of income.Fulton Bank, N.A. ("Fulton Bank"), the Corporation's largest banking subsidiary, exceeded $10 billion in total assets as of December 31, 2016 and was required to clear all eligible interest rate swap contracts with a central counterparty, effective January 1, 2017. As a result, Fulton Bank became subject to the regulations of the Commodity Futures Trading Commission ("CFTC").

Foreign Exchange Contracts

The Corporation enters into foreign exchange contracts to accommodate the needs of its customers. Foreign exchange contracts are commitments to buy or sell foreign currency on a future date at a contractual price. The Corporation offsets its foreign exchange contract exposure with customers by entering into contracts with third-party correspondent financial institutions to mitigate its exposure to fluctuations in foreign currency exchange rates. The Corporation also holds certain amounts of foreign currency with international correspondent banks. The Corporation's policy limits the total net foreign currency open positions, which includes all outstanding contracts and foreign account balances, to $500,000. Gross fair values are recorded in other assets and other liabilities on the consolidated balance sheets, with changes in fair values during the period recorded within other service charges and fees on the consolidated statements of income.

The following table presents a summary of the notional amounts and fair values of derivative financial instruments:

	June 30, 2017					December 31, 2016
	Notional Amount		Asset (Liability) Fair Value			Notional Amount		Asset (Liability) Fair Value
	(in thousands)
Interest Rate Locks with Customers
Positive fair values	$	141,136	$	1,354		$	87,119	$	863
Negative fair values	3,573		(28		)	18,239		(227		)
Net interest rate locks with customers			1,326					636
Forward Commitments
Positive fair values	25,343		94			70,031		2,223
Negative fair values	91,629		(205		)	19,964		(112		)
Net forward commitments			(111		)			2,111
Interest Rate Swaps with Customers
Positive fair values	1,242,309		34,331			876,744		24,397
Negative fair values	581,370		(13,938		)	583,060		(16,998		)
Net interest rate swaps with customers			20,393					7,399
Interest Rate Swaps with Dealer Counterparties
Positive fair values	581,370		13,938			583,060		16,998
Negative fair values (1)	1,242,309		(29,167		)	876,744		(24,397		)
Net interest rate swaps with dealer counterparties			(15,229		)			(7,399		)
Foreign Exchange Contracts with Customers
Positive fair values	4,460		309			11,674		504
Negative fair values	7,295		(343		)	4,659		(221		)
Net foreign exchange contracts with customers			(34		)			283
Foreign Exchange Contracts with Correspondent Banks
Positive fair values	9,268		407			7,040		241
Negative fair values	6,873		(283		)	12,869		(447		)
Net foreign exchange contracts with correspondent banks			124					(206		)
Net derivative fair value asset			$	6,469				$	2,824

(1) Includes centrally cleared interest rate swaps with a notional amount of $240.7 million and a fair value of $0 as of June 30, 2017. Collateral is posted daily through a clearing agent for changes in the fair value.

The following table presents a summary of the fair value gains (losses) on derivative financial instruments:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Interest rate locks with customers	$	(155	)	$	512		$	690		$	1,744
Forward commitments	157			(906		)	(2,222		)	(2,012		)
Interest rate swaps with customers	13,809			20,569			12,994			50,000
Interest rate swaps with dealer counterparties	(10,831		)	(20,569		)	(7,830		)	(50,000		)
Foreign exchange contracts with customers	(325		)	81			(317		)	455
Foreign exchange contracts with correspondent banks	367			(68		)	330			(347		)
Net fair value gains (losses) on derivative financial instruments	$	3,022		$	(381	)	$	3,645		$	(160	)

Fair Value Option

U.S. GAAP permits entities to measure many financial instruments and certain other items at fair value and requires certain disclosures for amounts for which the fair value option is applied. The Corporation has elected to measure mortgage loans held for sale at fair value to more accurately reflect the financial results of its mortgage banking activities in its consolidated financial statements. Derivative financial instruments related to these activities are also recorded at fair value, as noted above. The Corporation determines fair value for its mortgage loans held for sale based on the price that secondary market investors would pay for loans with similar characteristics, including interest rate and term, as of the date fair value is measured. Changes in fair values during the period are recorded as components of mortgage banking income on the consolidated statements of income. Interest income earned on mortgage loans held for sale is classified in interest income on the consolidated statements of income.

The following table presents a summary of the Corporation’s mortgage loans held for sale:

	June 30, 2017		December 31, 2016
	(in thousands)
Cost	$	32,810	$	28,708
Fair value	33,364		28,697

During the three months ended June 30, 2017 and 2016, the Corporation recorded gains related to changes in fair values of mortgage loans held for sale of $26,000 and $634,000, respectively. During the six months ended June 30, 2017 and 2016, the Corporation recorded gains related to changes in fair values of mortgage loans held for sale of $565,000 and $864,000, respectively.

Balance Sheet Offsetting

Certain financial assets and liabilities may be eligible for offset on the consolidated balance sheets because they are subject to master netting arrangements or similar agreements. The Corporation elects to not offset certain assets and liabilities subject to such arrangements on the consolidated financial statements.

The Corporation is a party to interest rate swap transactions with financial institution counterparties and customers, disclosed in detail above. Under these agreements, the Corporation has the right to net-settle multiple contracts with the same counterparty in the event of default on, or termination of, any one contract. Cash collateral is posted by the party with a net liability position in accordance with contract thresholds and can be used to settle the fair value of the interest rate swap agreements in the event of default. Collateral is posted daily through a clearing agent for changes in the fair value of centrally cleared derivatives with negative fair values. As a result, the total fair values of interest rate swap derivative assets and derivative liabilities recognized on the consolidated balance sheet are not equal and offsetting.

The Corporation is also a party to foreign currency exchange contracts with financial institution counterparties, under which the Corporation has the right to net-settle multiple contracts with the same counterparty in the event of default on, or termination of, any one contract. As with interest rate swap contracts, collateral is posted by the party with a net liability position in accordance with contract thresholds and can be used to settle the fair value of the foreign currency exchange contracts in the event of default.

The Corporation also enters into agreements with customers in which it sells securities subject to an obligation to repurchase the same or similar securities, referred to as repurchase agreements. Under these agreements, the Corporation may transfer legal control over the assets but still maintain effective control through agreements that both entitle and obligate the Corporation to repurchase the assets. Therefore, repurchase agreements are reported as secured borrowings, classified in short-term borrowings on the consolidated balance sheets, while the securities underlying the repurchase agreements remain classified with investment securities on the consolidated balance sheets. The Corporation has no intention of setting off these amounts. Therefore, these repurchase agreements are not eligible for offset.

The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:

	Gross Amounts		Gross Amounts Not Offset
	Recognized		on the Consolidated
	on the		Balance Sheets
	Consolidated		Financial			Cash			Net
	Balance Sheets		Instruments(1)			Collateral (2)			Amount
	(in thousands)
June 30, 2017
Interest rate swap derivative assets	$	48,269	$	(14,372	)	$	—		$	33,897
Foreign exchange derivative assets with correspondent banks	407		(283		)	—			124
Total	$	48,676	$	(14,655	)	$	—		$	34,021
Interest rate swap derivative liabilities	$	43,105	$	(14,372	)	$	(18,320	)	$	10,413
Foreign exchange derivative liabilities with correspondent banks	283		(283		)	—			—
Total	$	43,388	$	(14,655	)	$	(18,320	)	$	10,413
December 31, 2016
Interest rate swap derivative assets	$	41,395	$	(15,117	)	$	—		$	26,278
Foreign exchange derivative assets with correspondent banks	241		(241		)	—			—
Total	$	41,636	$	(15,358	)	$	—		$	26,278
Interest rate swap derivative liabilities	$	41,395	$	(15,117	)	$	(4,010	)	$	22,268
Foreign exchange derivative liabilities with correspondent banks	447		(241		)	(206		)	—
Total	$	41,842	$	(15,358	)	$	(4,216	)	$	22,268

(1) For derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent collateral received from the counterparty or posted by the Corporation.

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Commitments and Contingencies

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Commitments and Contingencies

Commitments and Contingencies

Commitments

The Corporation is a party to financial instruments with off-balance sheet risk in the normal course of business to meet the financing needs of its customers.

Those financial instruments include commitments to extend credit and letters of credit, which involve, to varying degrees, elements of credit risk and interest rate risk in excess of the amounts recognized on the Corporation’s consolidated balance sheets. Exposure to credit loss in the event of nonperformance by the other party to the financial instrument for commitments to extend credit and letters of credit is represented by the outstanding amount of those instruments.

The outstanding amounts of commitments to extend credit and letters of credit were as follows:

	June 30, 2017		December 31, 2016
	(in thousands)
Commitments to extend credit	$	6,382,314	$	6,075,567
Standby letters of credit	349,953		356,359
Commercial letters of credit	41,501		38,901

The Corporation records a reserve for unfunded lending commitments, which represents management’s estimate of losses associated with unused commitments to extend credit. See Note 5, "Loans and Allowance for Credit Losses," for additional details.

Residential Lending

Residential mortgages originated and sold by the Corporation consist primarily of conforming, prime loans sold to government sponsored agencies, such as the Federal National Mortgage Association ("Fannie Mae") and the Federal Home Loan Mortgage Corporation ("Freddie Mac"). The Corporation also sells certain prime loans it originates to non-government sponsored agency investors.

The Corporation provides customary representations and warranties to government sponsored entities and investors that specify, among other things, that the loans have been underwritten to the standards established by the government sponsored entity or investor. The Corporation may be required to repurchase a loan, or reimburse the government sponsored entity or investor for a credit loss incurred on a loan, if it is determined that the representations and warranties have not been met. Such repurchases or reimbursements generally result from an underwriting or documentation deficiency. As of both June 30, 2017 and December 31, 2016, total outstanding repurchase requests totaled approximately $543,000.

From 2000 to 2011, the Corporation sold loans to the Federal Home Loan Bank of Pittsburgh under its Mortgage Partnership Finance Program ("MPF Program"). The Corporation provided a "credit enhancement" for residential mortgage loans sold under the MPF Program whereby it would assume credit losses in excess of a defined "First Loss Account," or "FLA" balance, up to specified amounts. The FLA is funded by the Federal Home Loan Bank of Pittsburgh based on a percentage of the outstanding principal balance of loans sold. As of June 30, 2017, the unpaid principal balance of loans sold under the MPF Program was approximately $94 million. As of June 30, 2017 and December 31, 2016, the reserve for estimated credit losses related to loans sold under the MPF Program was $1.6 million and $1.7 million, respectively. Required reserves are calculated based on delinquency status and estimated loss rates established through the Corporation's existing allowance for credit losses methodology for residential mortgage loans.

As of June 30, 2017 and December 31, 2016, the total reserve for losses on residential mortgage loans sold was $2.4 million and $2.5 million, respectively, including both reserves for credit losses under the MPF Program and reserves for representation and warranty exposures. Management believes that the reserves recorded as of June 30, 2017 are adequate. However, declines in collateral values, the identification of additional loans to be repurchased, or a deterioration in the credit quality of loans sold under the MPF Program could necessitate additional reserves, established through charges to earnings, in the future.

Legal Proceedings

The Corporation and its subsidiaries are involved in various legal proceedings in the ordinary course of business of the Corporation. The Corporation periodically evaluates the possible impact of pending litigation matters based on, among other factors, the advice of counsel, available insurance coverage and recorded liabilities and reserves for probable legal liabilities and costs. In addition, from time to time, the Corporation is the subject of investigations or other forms of regulatory or governmental inquiry covering a range of possible issues and, in some cases, these may be part of similar reviews of the specified activities of other industry participants. These inquiries could lead to administrative, civil or criminal proceedings, and could possibly result in fines, penalties, restitution or the need to alter the Corporation’s business practices, and cause the Corporation to incur additional costs. The Corporation’s practice is to cooperate fully with regulatory and governmental investigations.

As of the date of this report, the Corporation believes that any liabilities, individually or in the aggregate, which may result from the final outcomes of pending proceedings will not have a material adverse effect on the financial condition of the Corporation. However, legal proceedings are often unpredictable, and it is possible that the ultimate resolution of any such matters, if unfavorable, may be material to the Corporation’s results of operations for any particular period, depending, in part, upon the size of the loss or liability imposed and the operating results for the applicable period.

BSA/AML Enforcement Orders

The Corporation and each of its bank subsidiaries are subject to regulatory enforcement orders issued during 2014 and 2015 by their respective federal and state bank regulatory agencies relating to identified deficiencies in the Corporation’s centralized Bank Secrecy Act and anti-money laundering compliance program (the "BSA/AML Compliance Program"), which was designed to comply with the requirements of the Bank Secrecy Act, the USA Patriot Act of 2001 and related anti-money laundering regulations (collectively, the "BSA/AML Requirements"). The regulatory enforcement orders, which are in the form of consent orders or orders to cease and desist issued upon consent ("Consent Orders"), generally require, among other things, that the Corporation and its bank subsidiaries undertake a number of required actions to strengthen and enhance the BSA/AML Compliance Program, and, in some cases, conduct retrospective reviews of past account activity and transactions, as well as certain reports filed in accordance with the BSA/AML Requirements, to determine whether suspicious activity and certain transactions in currency were properly identified and reported in accordance with the BSA/AML Requirements. The Corporation and its bank subsidiaries have implemented numerous enhancements to the BSA/AML Compliance Program, completed the retrospective reviews required under the Consent Orders, and continue to strengthen and refine the BSA/AML Compliance Program to achieve a sustainable program in accordance with the BSA/AML Requirements. In addition to requiring strengthening and enhancement of the BSA/AML Compliance Program, while the Consent Orders remain in effect, the Corporation is subject to certain restrictions on expansion activities of the Corporation and its bank subsidiaries. Further, any failure to comply with the requirements of any of the Consent Orders involving the Corporation or its bank subsidiaries could result in further enforcement actions, the imposition of material restrictions on the activities of the Corporation or its bank subsidiaries, or the assessment of fines or penalties.

Fair Lending Investigation

During the second quarter of 2015, Fulton Bank, N.A., the Corporation’s largest bank subsidiary, received a letter from the U.S. Department of Justice (the "Department") indicating that the Department had initiated an investigation regarding potential violations of fair lending laws (specifically, the Equal Credit Opportunity Act and the Fair Housing Act) by Fulton Bank, N.A. in certain geographies. Fulton Bank, N.A. has been and is cooperating with the Department and responding to the Department’s requests for information. During the third quarter of 2016, the Department informed the Corporation, Fulton Bank, N.A., and three of the Corporation’s other bank subsidiaries, Fulton Bank of New Jersey, The Columbia Bank and Lafayette Ambassador Bank, that the Department was expanding its investigation of potential lending discrimination on the basis of race and national origin to encompass additional geographies that were not included in the initial letter from the Department. In addition to requesting information concerning the lending activities of these bank subsidiaries, the Department also requested information concerning the Corporation and the residential mortgage lending activities conducted under the Fulton Mortgage Company brand, the trade name used by all of the Corporation’s bank subsidiaries for residential mortgage lending. The investigation relates to lending activities during the period January 1, 2009 to the present. The Corporation and the identified bank subsidiaries are cooperating with the Department and responding to the Department’s requests for information. The Corporation and its bank subsidiaries are not able at this time to determine the terms on which this investigation will be resolved or the timing of such resolution, or to reliably estimate the amounts of any settlement, fines or other penalties or the cost of any other remedial actions, if enforcement action is taken. In addition, should the investigation result in an enforcement action against the Corporation or its bank subsidiaries, or a settlement with the Department, the ability of the Corporation and its bank subsidiaries to engage in certain expansion or other activities may be restricted.

Agostino, et al. Litigation

Fulton Bank, N.A. (the "Bank"), the Corporation’s largest bank subsidiary, and two unrelated, third-party defendants, Ameriprise Financial Services, Inc. (“Ameriprise”) and Riverview Bank (“Riverview”), have been named as defendants in a lawsuit brought on behalf of a group of 67 plaintiffs filed on March 31, 2016, in the Court of Common Pleas for Dauphin County, Pennsylvania (Agostino, et al. v. Ameriprise Financial Services, Inc., et al., No. 2016-CV-2048-CV). The plaintiffs in this action, who are individuals, trustees of certain irrevocable trusts, or the executors of the estates of deceased individuals, were clients of Jeffrey M. Mottern, a now-deceased attorney, who is alleged to have operated a fraud scheme over a period of years through the sale of fictitious high-yield investments or by otherwise misappropriating funds entrusted to Mr. Mottern. Mr. Mottern is alleged to have used the proceeds of these activities to engage in speculative securities trading through defendant Ameriprise, which caused significant losses, and for Mr. Mottern’s personal expenses. The allegations against the Bank relate to a commercial checking account at the Bank maintained by Mr. Mottern in connection with Mr. Mottern’s law practice. The lawsuit alleges that the Bank is liable to the plaintiffs for failing to properly monitor Mr. Mottern’s checking account and detect Mr. Mottern’s fraudulent activity, and specifically alleges that the Bank aided and abetted Mr. Mottern’s: (1) fraud; (2) breach of fiduciary duty; (3) violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law; and (4) conversion. Similar claims have been asserted against Ameriprise and Riverview, which allegedly maintained a personal brokerage account and a trust account for client or other third-party funds, respectively, for Mr. Mottern. The lawsuit seeks damages from the defendants, including the Bank, alleged to be in excess of $11.3 million, treble damages and attorneys’ fees with respect to alleged violations of the Pennsylvania Unfair Trade Practices and Consumer Protection Law, punitive damages, plus interest and costs. On April 29, 2016, the Bank filed a Notice of Removal to remove this lawsuit to the United States District Court for the Middle District of Pennsylvania. On May 31, 2016, the plaintiffs filed a motion to remand the lawsuit to the Court of Common Pleas for Dauphin County, Pennsylvania. On October 24, 2016, the District Court granted the plaintiffs' motion and the lawsuit was remanded back to the Court of Common Pleas for Dauphin County. All defendants subsequently filed preliminary objections to the Complaint, including objections that, if granted, would result in dismissal of the case. On May 26, 2017, the Court of Common Pleas for Dauphin County denied all substantive preliminary objections filed by the Bank. On June 23, 2017, the Bank filed its Combined Motion for Partial Reconsideration of the Court’s May 26, 2017 Order and Application for Amendment of the Order to Set Forth Expressly the Statement in Pa.C.S. s. 702(b) (the “Motion”). The Bank also filed its Answer and New Matter (the “Answer”) on June 23, 2017. The Plaintiffs subsequently responded to the Motion and the Answer, and the case has now entered the discovery phase.

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Fair Value Measurements

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Fair Value Measurements

Fair Value Measurements

FASB ASC Topic 820 establishes a fair value hierarchy for the inputs to valuation techniques used to measure assets and liabilities at fair value using the following three categories (from highest to lowest priority):

• Level 1 – Inputs that represent quoted prices for identical instruments in active markets.

• Level 2 – Inputs that represent quoted prices for similar instruments in active markets, or quoted prices for identical instruments in non-active markets. Also includes valuation techniques whose inputs are derived principally from observable market data other than quoted prices, such as interest rates or other market-corroborated means.

• Level 3 – Inputs that are largely unobservable, as little or no market data exists for the instrument being valued.

The Corporation has categorized all assets and liabilities measured at fair value on both a recurring and nonrecurring basis into the above three levels.

The following tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	33,364	$	—	$	33,364
Available for sale investment securities:
Equity securities	21,455		—		—		21,455
U.S. Government sponsored agency securities	—		6,054		—		6,054
State and municipal securities	—		401,636		—		401,636
Corporate debt securities	—		85,795		3,197		88,992
Collateralized mortgage obligations	—		538,507		—		538,507
Residential mortgage-backed securities	—		1,213,065		—		1,213,065
Commercial mortgage-backed securities	—		121,067		—		121,067
Auction rate securities	—		—		97,923		97,923
Total available for sale investment securities	21,455		2,366,124		101,120		2,488,699
Other assets	18,533		49,717		—		68,250
Total assets	$	39,988	$	2,449,205	$	101,120	$	2,590,313
Other liabilities	$	18,438	$	43,338	$	—	$	61,776

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	28,697	$	—	$	28,697
Available for sale investment securities:
Equity securities	24,526		—		—		24,526
U.S. Government sponsored agency securities	—		134		—		134
State and municipal securities	—		391,641		—		391,641
Corporate debt securities	—		106,537		2,872		109,409
Collateralized mortgage obligations	—		593,860		—		593,860
Residential mortgage-backed securities	—		1,317,838		—		1,317,838
Commercial mortgage-backed securities	—		24,563		—		24,563
Auction rate securities	—		—		97,256		97,256
Total available for sale investment securities	24,526		2,434,573		100,128		2,559,227
Other assets	17,111		44,481		—		61,592
Total assets	$	41,637	$	2,507,751	$	100,128	$	2,649,516
Other liabilities	$	17,032	$	41,734	$	—	$	58,766

The valuation techniques used to measure fair value for the items in the preceding tables are as follows:

• Mortgage loans held for sale – This category consists of mortgage loans held for sale that the Corporation has elected to measure at fair value. Fair values as of June 30, 2017 and December 31, 2016 were measured based on the price that secondary market investors were offering for loans with similar characteristics. See Note 9, "Derivative Financial Instruments" for details related to the Corporation’s election to measure assets and liabilities at fair value.

• Available for sale investment securities – Included in this asset category are both equity and debt securities. Level 2 available for sale debt securities are valued by a third-party pricing service commonly used in the banking industry. The pricing service uses pricing models that vary based on asset class and incorporate available market information, including quoted prices of investment securities with similar characteristics. Because many fixed income securities do not trade on a daily basis, pricing models use available information, as applicable, through processes such as benchmark yield curves, benchmarking of like securities, sector groupings, and matrix pricing.

Standard market inputs include: benchmark yields, reported trades, broker/dealer quotes, issuer spreads, two-sided markets, benchmark securities, bids, offers and reference data, including market research publications. For certain security types, additional inputs may be used, or some of the standard market inputs may not be applicable.

Management tests the values provided by the pricing service by obtaining securities prices from an alternative third-party source and comparing the results. This test is done for at least 80% of the securities valued by the pricing service. Generally, differences by security in excess of 5% are researched to reconcile the difference.

• Equity securities – Equity securities consist of common stocks of financial institutions ($20.5 million at June 30, 2017 and $23.5 million at December 31, 2016) and other equity investments ($1.0 million at June 30, 2017 and December 31, 2016). These Level 1 investments are measured at fair value based on quoted prices for identical securities in active markets.

• U.S. Government securities/U.S. Government sponsored agency securities/State and municipal securities/Collateralized mortgage obligations/Residential mortgage-backed securities/Commercial mortgage-backed securities – These debt securities are classified as Level 2 investments. Fair values are determined by a third-party pricing service, as detailed above.

• Corporate debt securities – This category consists of subordinated debt issued by financial institutions ($42.1 million at June 30, 2017 and $65.2 million at December 31, 2016), single-issuer trust preferred securities issued by financial institutions ($42.5 million at June 30, 2017 and $39.8 million at December 31, 2016), pooled trust preferred securities issued by financial institutions ($422,000 at both June 30, 2017 and December 31, 2016) and other corporate debt issued by non-financial institutions ($4.0 million at both June 30, 2017 and December 31, 2016).

Level 2 investments include the Corporation’s holdings of subordinated debt, other corporate debt issued by non-financial institutions and $39.7 million and $37.3 million of single-issuer trust preferred securities held at June 30, 2017 and December 31, 2016, respectively. The fair values for these corporate debt securities are determined by a third-party pricing service, as detailed above.

Level 3 investments include the Corporation’s investments in pooled trust preferred securities ($422,000 at both June 30, 2017 and December 31, 2016) and certain single-issuer trust preferred securities ($2.8 million at June 30, 2017 and $2.5 million at December 31, 2016). The fair values of these securities were determined based on quotes provided by third-party brokers who determined fair values based predominantly on internal valuation models which were not indicative prices or binding offers. The Corporation’s third-party pricing service cannot derive fair values for these securities primarily due to inactive markets for similar investments. Level 3 values are tested by management primarily through trend analysis, by comparing current values to those reported at the end of the preceding calendar quarter, and determining if they are reasonable based on price and spread movements for this asset class.

• Auction rate securities – Due to their illiquidity, ARCs are classified as Level 3 investments and are valued through the use of an expected cash flows model prepared by a third-party valuation expert. The assumptions used in preparing the expected cash flows model include estimates for coupon rates, time to maturity and market rates of return. The most significant unobservable input to the expected cash flows model is an assumed return to market liquidity sometime in the next five years. If the assumed return to market liquidity was lengthened beyond the next five years, this would result in a decrease in the fair value of these ARCs. The Corporation believes that the trusts underlying the ARCs will self-liquidate as student loans are repaid. Level 3 fair values are tested by management through the performance of a trend analysis of the market price and discount rate. Changes in the price and discount rates are compared to changes in market data, including bond ratings, parity ratios, balances and delinquency levels.

Other assets – Included in this category are the following:

• Level 1 assets include mutual funds that are held in trust for employee deferred compensation plans ($17.8 million at June 30, 2017 and $16.4 million at December 31, 2016) and the fair value of foreign currency exchange contracts ($716,000 at June 30, 2017 and $745,000 at December 31, 2016). The mutual funds and foreign exchange prices used to measure these items at fair value are based on quoted prices for identical instruments in active markets.

• Level 2 assets include the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($1.4 million at June 30, 2017 and $3.1 million at December 31, 2016) and the fair value of interest rate swaps ($48.3 million at June 30, 2017 and $41.4 million at December 31, 2016). The fair values of the Corporation’s interest rate locks, forward commitments and interest rate swaps represent the amounts that would be required to settle the derivative financial instruments at the balance sheet date. See Note 9, "Derivative Financial Instruments," for additional information.

Other liabilities – Included in this category are the following:

• Level 1 liabilities include employee deferred compensation liabilities which represent amounts due to employees under deferred compensation plans ($17.8 million at June 30, 2017 and $16.4 million at December 31, 2016) and the fair value of foreign currency exchange contracts ($626,000 at June 30, 2017 and $668,000 at December 31, 2016). The fair value of these liabilities are determined in the same manner as the related assets, as described under the heading "Other assets" above.

• Level 2 liabilities include the fair value of mortgage banking derivatives in the form of interest rate locks and forward commitments with secondary market investors ($233,000 at June 30, 2017 and $339,000 at December 31, 2016) and the fair value of interest rate swaps ($43.1 million at June 30, 2017 and $41.4 million at December 31, 2016). The fair values of these liabilities are determined in the same manner as the related assets, as described under the heading "Other assets" above.

The following table presents the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3):

	Three months ended June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at March 31, 2017	$	422	$	2,750		$	97,439
Unrealized adjustment to fair value (1)	—		22			386
Discount accretion (2)	—		3			98
Balance at June 30, 2017	$	422	$	2,775		$	97,923
	Three months ended June 30, 2016
Balance at March 31, 2016	$	706	$	2,400		$	97,326
Unrealized adjustment to fair value (1)	—		22			482
Discount accretion (2)	—		3			78
Balance at June 30, 2016	$	706	$	2,425		$	97,886
	Six months ended June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2016	$	422	$	2,450		$	97,256
Unrealized adjustment to fair value (1)	—		319			472
Discount accretion (2)	—		6			195
Balance at June 30, 2017	$	422	$	2,775		$	97,923
	Six months ended June 30, 2016
Balance at December 31, 2015	$	706	$	2,630		$	98,059
Unrealized adjustment to fair value (1)	—		(211		)	(350		)
Discount accretion (2)	—		6			177
Balance at June 30, 2016	$	706	$	2,425		$	97,886

(1) Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of "available for sale investment securities" on the consolidated balance sheets.

(2) Included as a component of "net interest income" on the consolidated statements of income.

Certain financial assets are not measured at fair value on an ongoing basis, but are subject to fair value measurement in certain circumstances, such as upon their acquisition or when there is evidence of impairment. The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	144,256	$	144,256
Other financial assets	—		—		49,613		49,613
Total assets	$	—	$	—	$	193,869	$	193,869

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	132,576	$	132,576
Other financial assets	—		—		50,347		50,347
Total assets	$	—	$	—	$	182,923	$	182,923

The valuation techniques used to measure fair value for the items in the table above are as follows:

• Net loans – This category consists of loans that were measured for impairment under FASB ASC Section 310-10-35 and have been classified as Level 3 assets. The amount shown is the balance of impaired loans, net of the related allowance for loan losses. See Note 5, "Loans and Allowance for Credit Losses," for additional details.

• Other financial assets – This category includes OREO ($11.4 million at June 30, 2017 and $12.8 million at December 31, 2016) and MSRs ($38.2 million at June 30, 2017 and $37.5 million at December 31, 2016), both classified as Level 3 assets.

Fair values for OREO were based on estimated selling prices less estimated selling costs for similar assets in active markets.

MSRs are initially recorded at fair value upon the sale of residential mortgage loans to secondary market investors. MSRs are amortized as a reduction to servicing income over the estimated lives of the underlying loans. MSRs are stratified and evaluated for impairment by comparing each stratum's carrying amount to its estimated fair value. Fair values are determined at the end of each quarter through a discounted cash flows valuation performed by a third-party valuation expert. Significant inputs to the valuation included expected net servicing income, the discount rate and the expected life of the underlying loans. Expected life is based on the contractual terms of the loans, as adjusted for prepayment projections. The weighted average annual constant prepayment rate and the weighted average discount rate used in the June 30, 2017 valuation were 11.8% and 9.5%, respectively. Management tests the reasonableness of the significant inputs to the third-party valuation in comparison to market data.

As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of June 30, 2017 and December 31, 2016. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.

	June 30, 2017				December 31, 2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	94,938	$	94,938	$	118,763	$	118,763
Interest-bearing deposits with other banks	322,514		322,514		233,763		233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328		70,328		57,489		57,489
Loans held for sale (1)	62,354		62,354		28,697		28,697
Available for sale investment securities (1)	2,488,699		2,488,699		2,559,227		2,559,227
Net Loans (1)	15,174,275		15,007,961		14,530,593		14,387,454
Accrued interest receivable	47,603		47,603		46,294		46,294
Other financial assets (1)	212,773		212,773		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,610,951	$	12,610,951	$	12,259,622	$	12,259,622
Time deposits	2,746,410		2,758,807		2,753,242		2,769,757
Short-term borrowings	694,859		694,859		541,317		541,317
Accrued interest payable	7,804		7,804		9,632		9,632
Other financial liabilities (1)	252,537		252,537		216,080		216,080
Federal Home Loan Bank advances and other long-term debt	1,037,961		1,035,711		929,403		928,167

(1) These financial instruments, or certain financial instruments in these categories, are measured at fair value on the Corporation’s consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.

Fair values of financial instruments are significantly affected by the assumptions used, principally the timing of future cash flows and discount rates. Because assumptions are inherently subjective in nature, the estimated fair values cannot be substantiated by comparison to independent market quotes and, in many cases, the estimated fair values could not necessarily be realized in an immediate sale or settlement of the instrument. The aggregate fair value amounts presented do not necessarily represent management’s estimate of the underlying value of the Corporation.

For short-term financial instruments, defined as those with remaining maturities of 90 days or less, and excluding those recorded at fair value on the Corporation’s consolidated balance sheets, book value was considered to be a reasonable estimate of fair value.

The following instruments are predominantly short-term:

Assets	Liabilities
Cash and due from banks	Demand and savings deposits
Interest-bearing deposits with other banks	Short-term borrowings
Accrued interest receivable	Accrued interest payable

Federal Reserve Bank and Federal Home Loan Bank ("FHLB") stock represent restricted investments and are carried at cost on the consolidated balance sheets.

Fair values for loans and time deposits were estimated by discounting future cash flows using the current rates at which similar loans would be made to borrowers and similar deposits would be issued to customers for the same remaining maturities. Fair values estimated in this manner do not fully incorporate an exit price approach to fair value, as defined in FASB ASC Topic 820.

Loans held for sale includes $28.9 million of student loans as of June 30, 2017, carried at the lower of cost or fair value. In June 2017, the Corporation determined to sell this portfolio and began discussions with a potential purchaser of this portfolio, and reclassified these loans from consumer loans to loans held for sale. Fair value is based on the price per the preliminary offer from the potential purchaser. As such, a loss of $440,000 was recorded in the second quarter of 2017 and included in "other expense" on the consolidated statements of income.

The fair values of FHLB advances and long-term debt were estimated by discounting the remaining contractual cash flows using a rate at which the Corporation could issue debt with similar remaining maturities as of the balance sheet date. These borrowings would be categorized in Level 2 liabilities under FASB ASC Topic 820.

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Long-Term Debt (Notes)

6 Months Ended

Jun. 30, 2017

Debt Disclosure [Abstract]

Long-Term Debt

Long-Term Debt

In March 2017, the Corporation issued $125.0 million of senior notes, with a fixed rate of 3.60% and an effective rate of 3.95%, that mature in 2022. A portion of the net proceeds from this issuance were used to repay $100.0 million of 10-year subordinated notes, which matured on May 1, 2017 and carried a fixed rate of 5.75% and an effective rate of 5.96%.

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Basis of Presentation Basis of Presentation (Policies)

6 Months Ended

Jun. 30, 2017

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The accompanying unaudited consolidated financial statements of Fulton Financial Corporation (the "Corporation") have been prepared in conformity with U.S. generally accepted accounting principles ("U.S. GAAP") for interim financial information and with the instructions to Form 10-Q and Rule 10-01 of Regulation S-X. Accordingly, they do not include all of the information and notes required by U.S. GAAP for complete financial statements. The preparation of financial statements in accordance with U.S. GAAP requires management to make estimates and assumptions that affect the amounts of assets and liabilities as of the date of the financial statements as well as revenues and expenses during the period. Actual results could differ from those estimates. In the opinion of management, all adjustments (consisting of normal recurring accruals) considered necessary for a fair presentation have been included. These consolidated financial statements should be read in conjunction with the audited consolidated financial statements and the notes thereto included in the Company's Annual Report on Form 10-K for the year ended December 31, 2016. Operating results for the six months ended June 30, 2017 are not necessarily indicative of the results that may be expected for the year ending December 31, 2017. The Corporation evaluates subsequent events through the date of filing of this Form 10-Q with the Securities and Exchange Commission ("SEC").

Recently Issued Accounting Standards

Recently Issued Accounting Standards

In May 2014, the FASB issued ASC Update 2014-09, "Revenue from Contracts with Customers." This standards update establishes a single comprehensive model for entities to use in accounting for revenue arising from contracts with customers and supersedes most current revenue recognition guidance, including industry-specific guidance. The core principle prescribed by this standards update is that an entity recognizes revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. The standard applies to all contracts with customers, except those that are within the scope of other topics in the FASB ASC. The standard also requires significantly expanded disclosures about revenue recognition. During 2016, the FASB issued amendments to this standard (ASC Updates 2016-08, 2016-10, 2016-11 and 2016-12). These amendments provide further clarification to the standard. For public business entities, ASC Update 2014-09 is effective for interim and annual reporting periods beginning after December 15, 2017. Early application is not permitted. For the Corporation, this standards update is effective with its March 31, 2018 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2014-09 on its consolidated financial statements.

In January 2016, the FASB issued ASC Update 2016-01, "Financial Instruments - Overall: Recognition and Measurement of Financial Assets and Financial Liabilities." ASC Update 2016-01 provides guidance regarding the income statement impact of equity investments held by an entity and the recognition of changes in fair value of financial liabilities when the fair value option is elected. This standard will require equity investments to be measured at fair value, with changes recorded in net income. ASC Update 2016-01 is effective for public business entities' annual and interim reporting periods beginning after December 15, 2017, with earlier adoption permitted.The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-01 to have a material impact on its consolidated financial statements.

In February 2016, the FASB issued ASC Update 2016-02, "Leases." This standards update states that a lessee should recognize the assets and liabilities that arise from all leases with a term greater than 12 months. The core principle requires the lessee to recognize a liability to make lease payments and a "right-of-use" asset. The accounting applied by the lessor is relatively unchanged. The standards update also requires expanded qualitative and quantitative disclosures. For public business entities, ASC Update 2016-02 is effective for interim and annual reporting periods beginning after December 15, 2018. ASC Update 2016-02 mandates a modified retrospective transition for all entities, which requires restatement of all comparative periods in the year of adoption. Early adoption is permitted. For the Corporation, this standards update is effective with its March 31, 2019 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2016-02 on its consolidated financial statements. The Corporation currently operates a number of branches that are leased, with the leases accounted for as operating leases that are not recognized on the consolidated balance sheet. Under ASC Update 2016-02, right-of-use assets and lease liabilities will need to be recognized on the consolidated balance sheet for these branches. The recognition of operating leases on the consolidated balance sheet is expected to be the most significant impact of the adoption of this standards update.

In June 2016, the FASB issued ASC Update 2016-13, "Financial Instruments - Credit Losses." The new impairment model prescribed by this standards update is a single impairment model for all financial assets (i.e., loans and investments). The recognition of credit losses would be based on an entity’s current estimate of expected losses (referred to as the Current Expected Credit Loss model, or "CECL"), as opposed to recognition of losses only when they are probable under current U.S. GAAP. ASC Update 2016-13 is effective for interim and annual reporting periods beginning after December 15, 2019. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2020 quarterly report on Form 10-Q. The Corporation is currently evaluating the impact of the adoption of ASC Update 2016-13 on its consolidated financial statements.

In August 2016, the FASB issued ASC Update 2016-15, "Statement of Cash Flows - Classification of Certain Cash Receipts and Cash Payments." This standards update provides guidance regarding the presentation of certain cash receipts and cash payments in the statement of cash flows, addressing eight specific cash flow classification issues, in order to reduce existing diversity in practice. ASC Update 2016-15 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-15 to have a material impact on its consolidated financial statements.

In November 2016, the FASB issued ASC Update 2016-18, "Statement of Cash Flows - Restricted Cash." This standards update provides guidance regarding the presentation of restricted cash in the statement of cash flows. The updaterequires companies to include amounts generally described as restricted cash and restricted cash equivalents, along with cash and cash equivalents, when reconciling the beginning-of-period and end-of-period total amounts shown on the statement of cash flows. It also requires an entity to disclose the nature of the restrictions on cash and cash equivalents. ASC Update 2016-18 is effective for interim and annual reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2016-18 to have a material impact on its consolidated financial statements.

In January 2017, the FASB issued ASC Update 2017-04, "Intangibles - Goodwill and Other." This standards update eliminates Step 2 of the goodwill impairment test which measures the impairment amount. Identifying and measuring impairment will take place in a single quantitative step. In addition, no separate qualitative assessment for reporting units with zero or negative carrying amount is required. Entities must disclose the existence of these reporting units and the amount of goodwill allocated to them. This update should be applied on a prospective basis, and an entity is required to disclose the nature of and reason for the change in accounting principle upon transition. ASC Update 2017-04 is effective for annual or interim goodwill impairment tests in reporting periods beginning after December 15, 2019. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its 2020 goodwill impairment test and does not expect the adoption of ASC Update 2017-04 to have a material impact on its consolidated financial statements.

In March 2017, the FASB issued ASC Update 2017-07, "Improving the Presentation of Net Periodic Pension Costs and Net Periodic Benefit Cost." This standards update requires a company to present service cost separately from the other components of net benefit cost. In addition, the update provides explicit guidance on how to present the service cost component and the other components of net benefit cost in the income statement and allow only the service cost component of net benefit cost to be eligible for capitalization. ASC Update 2017-07 is effective for annual or interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and is currently evaluating the impact of the adoption of ASC Update 2017-07 on its consolidated financial statements.

In March 2017, the FASB issued ASC Update 2017-08, "Premium Amortization on Purchased Callable Debt Securities." This standards update requires that a company amortize the premium on callable debt securities to the earliest call date versus current U.S. GAAP which requires amortization over the contractual life of the securities. The amortization period for callable debt securities purchased at a discount would not be impacted by the new accounting standards update. This amendment is to be adopted on a modified retrospective basis with a cumulative effect adjustment to retained earnings as of the beginning of the period of adoption. ASC Update 2017-08 is effective for annual or interim reporting periods beginning after December 15, 2018. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2019 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2017-08 to have a material impact on its consolidated financial statements.

In May 2017, the FASB issued ASC Update 2017-09, "Scope of Modification Accounting." This standards update provides clarity and reduces both (1) diversity in practice and (2) cost and complexity, when applying the guidance in the stock compensation standard, to a change to the terms or conditions of a share-based payment award. ASC Update 2017-09 is effective for annual or interim reporting periods beginning after December 15, 2017. Early adoption is permitted. The Corporation intends to adopt this standards update effective with its March 31, 2018 quarterly report on Form 10-Q and does not expect the adoption of ASC Update 2017-09 to have a material impact on its consolidated financial statements.

Reclassifications

Certain amounts in the 2016 consolidated financial statements and notes have been reclassified to conform to the 2017 presentation.

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Net Income Per Share (Tables)

6 Months Ended

Jun. 30, 2017

Earnings Per Share [Abstract]

Reconciliation of Weighted Average Common Shares Outstanding

A reconciliation of weighted average shares outstanding used to calculate basic net income per share and diluted net income per share follows:

	Three months ended June 30		Six months ended June 30
	2017	2016	2017	2016
	(in thousands)
Weighted average shares outstanding (basic)	174,597	173,394	174,375	173,363
Impact of common stock equivalents	935	924	1,179	1,004
Weighted average shares outstanding (diluted)	175,532	174,318	175,554	174,367

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Accumulated Other Comprehensive Income Accumulated Other Comprehensive Income (Tables)

6 Months Ended

Jun. 30, 2017

Equity [Abstract]

Changes in other comprehensive income

The following table presents changes in other comprehensive income:

	Before-Tax Amount			Tax Effect			Net of Tax Amount
	(in thousands)
Three months ended June 30, 2017
Unrealized gain on securities	$	15,798		$	(5,530	)	$	10,268
Reclassification adjustment for securities gains included in net income (1)	(1,436		)	504			(932		)
Amortization of net unrecognized pension and postretirement items (3)	522			(181		)	341
Total Other Comprehensive Income	$	14,884		$	(5,207	)	$	9,677
Three months ended June 30, 2016
Unrealized gain on securities	$	19,753		$	(6,914	)	$	12,839
Reclassification adjustment for securities gains included in net income (1)	(76		)	27			(49		)
Amortization of unrealized loss on derivative financial instruments(2)	6			(2		)	4
Amortization of net unrecognized pension and postretirement items (3)	49			(17		)	32
Total Other Comprehensive Income	$	19,732		$	(6,906	)	$	12,826
Six months ended June 30, 2017
Unrealized gain on securities	$	22,374		$	(7,833	)	$	14,541
Reclassification adjustment for securities gains included in net income (1)	(2,542		)	891			(1,651		)
Amortization of net unrecognized pension and postretirement items (3)	1,051			(367		)	684
Total Other Comprehensive Income	$	20,883		$	(7,309	)	$	13,574
Six months ended June 30, 2016
Unrealized gain on securities	$	45,946		$	(16,081	)	$	29,865
Reclassification adjustment for securities gains included in net income (1)	(1,023		)	358			(665		)
Amortization of unrealized loss on derivative financial instruments (2)	12			(4		)	8
Amortization of net unrecognized pension and postretirement items (3)	766			(268		)	498
Total Other Comprehensive Income	$	45,701		$	(15,995	)	$	29,706

(1) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Investment securities gains, net" on the consolidated statements of income. See Note 4, "Investment Securities," for additional details.

(2) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Interest expense" on the consolidated statements of income.

(3) Amounts reclassified out of accumulated other comprehensive income. Before-tax amounts included in "Salaries and employee benefits" on the consolidated statements of income. See Note 8, "Employee Benefit Plans," for additional details.

Changes in each component of accumulated other comprehensive income

The following table presents changes in each component of accumulated other comprehensive income (loss), net of tax:

	Unrealized Gains (Losses) on Investment Securities Not Other-Than-Temporarily Impaired			Unrealized Non-Credit Gains (Losses) on Other-Than-Temporarily Impaired Debt Securities		Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps			Unrecognized Pension and Postretirement Plan Income (Costs)			Total
	(in thousands)
Three months ended June 30, 2017
Balance at March 31, 2017	$	(19,493	)	$	273	$	—		$	(15,332	)	$	(34,552	)
Other comprehensive income before reclassifications	10,268			—		—			—			10,268
Amounts reclassified from accumulated other comprehensive income (loss)	(932		)	—		—			341			(591		)
Balance at June 30, 2017	$	(10,157	)	$	273	$	—		$	(14,991	)	$	(24,875	)
Three months ended June 30, 2016
Balance at March 31, 2016	$	9,911		$	458	$	(11	)	$	(15,495	)	$	(5,137	)
Other comprehensive income before reclassifications	12,839			—		—			—			12,839
Amounts reclassified from accumulated other comprehensive income (loss)	(49		)	—		4			32			(13		)
Balance at June 30, 2016	$	22,701		$	458	$	(7	)	$	(15,463	)	$	7,689
Six months ended June 30, 2017
Balance at December 31, 2016	$	(23,047	)	$	273	$	—		$	(15,675	)	$	(38,449	)
Other comprehensive income before reclassifications	14,541			—		—			—			14,541
Amounts reclassified from accumulated other comprehensive income (loss)	(1,651		)	—		—			684			(967		)
Balance at June 30, 2017	$	(10,157	)	$	273	$	—		$	(14,991	)	$	(24,875	)
Six months ended June 30, 2016
Balance at December 31, 2015	$	(6,499	)	$	458	$	(15	)	$	(15,961	)	$	(22,017	)
Other comprehensive income before reclassifications	29,865			—		—			—			29,865
Amounts reclassified from accumulated other comprehensive income (loss)	(665		)	—		8			498			(159		)
Balance at June 30, 2016	$	22,701		$	458	$	(7	)	$	(15,463	)	$	7,689

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Investment Securities (Tables)

6 Months Ended

Jun. 30, 2017

Investments, Debt and Equity Securities [Abstract]

Schedule of Amortized Cost and Fair Values of Investment Securities

The following table presents the amortized cost and estimated fair values of investment securities, which were all classified as available for sale:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
June 30, 2017
U.S. Government sponsored agency securities	$	5,960	$	94	$	—		$	6,054
State and municipal securities	405,035		3,726		(7,125		)	401,636
Corporate debt securities	88,887		2,531		(2,426		)	88,992
Collateralized mortgage obligations	546,847		1,399		(9,739		)	538,507
Residential mortgage-backed securities	1,218,257		5,782		(10,974		)	1,213,065
Commercial mortgage-backed securities	121,012		390		(335		)	121,067
Auction rate securities	107,410		—		(9,487		)	97,923
Total debt securities	2,493,408		13,922		(40,086		)	2,467,244
Equity securities	10,487		10,968		—			21,455
Total	$	2,503,895	$	24,890	$	(40,086	)	$	2,488,699

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Estimated Fair Value
	(in thousands)
December 31, 2016
U.S. Government sponsored agency securities	$	132	$	2	$	—		$	134
State and municipal securities	405,274		2,043		(15,676		)	391,641
Corporate debt securities	112,016		1,978		(4,585		)	109,409
Collateralized mortgage obligations	604,095		1,943		(12,178		)	593,860
Residential mortgage-backed securities	1,328,192		6,546		(16,900		)	1,317,838
Commercial mortgage-backed securities	25,100		—		(537		)	24,563
Auction rate securities	107,215		—		(9,959		)	97,256
Total debt securities	2,582,024		12,512		(59,835		)	2,534,701
Equity securities	12,231		12,295		—			24,526
Total	$	2,594,255	$	24,807	$	(59,835	)	$	2,559,227

Schedule of Amortized Cost and Fair Values of Debt Securities by Contractual Maturities

The amortized cost and estimated fair values of debt securities as of June 30, 2017, by contractual maturity, are shown in the following table. Actual maturities may differ from contractual maturities as certain investment securities are subject to call or prepayment with or without call or prepayment penalties.

		Amortized Cost		Estimated Fair Value
	(in thousands)
Due in one year or less		$	20,103	$	20,336
Due from one year to five years		27,967		28,335
Due from five years to ten years		111,883		113,050
Due after ten years		447,339		432,884
		607,292		594,605
Residential mortgage-backed securities		1,218,257		1,213,065
Commercial mortgage-backed securities		121,012		121,067
Collateralized mortgage obligations		546,847		538,507
Total debt securities		$	2,493,408	$	2,467,244

Summary of Gains and Losses from Equity and Debt Securities, and Losses Recognized from Other-than-Temporary Impairment

The following table presents information related to the gross realized gains and losses on the sales of equity and debt securities:

	Gross Realized Gains		Gross Realized Losses			Net Gains (Losses)
Three months ended June 30, 2017	(in thousands)
Equity securities	$	1,305	$	—		$	1,305
Debt securities	145		(14		)	131
Total	$	1,450	$	(14	)	$	1,436
Three months ended June 30, 2016
Equity securities	$	4	$	(10	)	$	(6	)
Debt securities	108		(26		)	82
Total	$	112	$	(36	)	$	76
Six months ended June 30, 2017
Equity securities	$	2,350	$	—		$	2,350
Debt securities	206		(14		)	192
Total	$	2,556	$	(14	)	$	2,542
Six months ended June 30, 2016
Equity securities	$	737	$	(10	)	$	727
Debt securities	322		(26		)	296
Total	$	1,059	$	(36	)	$	1,023

Gross Unrealized Losses and Fair Values of Investments by Category and Length of Time in Continuous Unrealized Loss Position

The following table presents the gross unrealized losses and estimated fair values of investments, aggregated by investment category and length of time that individual securities have been in a continuous unrealized loss position, at June 30, 2017 and December 31, 2016:

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
June 30, 2017	(in thousands)
State and municipal securities	$	214,497	$	(7,125	)	$	—	$	—		$	214,497	$	(7,125	)
Corporate debt securities	4,020		(9		)	32,148		(2,417		)	36,168		(2,426		)
Collateralized mortgage obligations	144,523		(3,057		)	231,936		(6,682		)	376,459		(9,739		)
Residential mortgage-backed securities	896,206		(10,974		)	—		—			896,206		(10,974		)
Commercial mortgage-backed securities	68,546		(335		)	—		—			68,546		(335		)
Auction rate securities	—		—			97,923		(9,487		)	97,923		(9,487		)
Total debt securities	$	1,327,792	$	(21,500	)	$	362,007	$	(18,586	)	$	1,689,799	$	(40,086	)

	Less than 12 months					12 months or longer					Total
	Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses			Estimated Fair Value		Unrealized Losses
December 31, 2016	(in thousands)
State and municipal securities	$	247,509	$	(15,676	)	$	—	$	—		$	247,509	$	(15,676	)
Corporate debt securities	11,922		(110		)	34,629		(4,475		)	46,551		(4,585		)
Collateralized mortgage obligations	166,905		(3,899		)	258,237		(8,279		)	425,142		(12,178		)
Residential mortgage-backed securities	1,112,947		(16,900		)	—		—			1,112,947		(16,900		)
Commercial mortgage-backed securities	24,563		(537		)	—		—			24,563		(537		)
Auction rate securities	—		—			97,256		(9,959		)	97,256		(9,959		)
Total debt securities	$	1,563,846	$	(37,122	)	$	390,122	$	(22,713	)	$	1,953,968	$	(59,835	)

Summary of Amortized Cost and Fair Values of Corporate Debt Securities

The following table presents the amortized cost and estimated fair value of corporate debt securities:

	June 30, 2017				December 31, 2016
	Amortized cost		Estimated fair value		Amortized cost		Estimated fair value
	(in thousands)
Single-issuer trust preferred securities	$	43,795	$	42,478	$	43,746	$	39,829
Subordinated debt	29,069		29,697		46,231		46,723
Senior debt	12,035		12,407		18,037		18,433
Pooled trust preferred securities	—		422		—		422
Corporate debt securities issued by financial institutions	84,899		85,004		108,014		105,407
Other corporate debt securities	3,988		3,988		4,002		4,002
Available for sale corporate debt securities	$	88,887	$	88,992	$	112,016	$	109,409

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Loans and Allowance for Credit Losses (Tables)

6 Months Ended

Jun. 30, 2017

Receivables [Abstract]

Summary of Gross Loans by Type

Loans, net of unearned income are summarized as follows:

	June 30, 2017			December 31, 2016
	(in thousands)
Real-estate - commercial mortgage	$	6,262,008		$	6,018,582
Commercial - industrial, financial and agricultural	4,245,849			4,087,486
Real-estate - residential mortgage	1,784,712			1,601,994
Real-estate - home equity	1,579,739			1,625,115
Real-estate - construction	938,900			843,649
Consumer	283,156			291,470
Leasing and other	269,787			246,704
Overdrafts	4,435			3,662
Loans, gross of unearned income	15,368,586			14,718,662
Unearned income	(21,969		)	(19,390		)
Loans, net of unearned income	$	15,346,617		$	14,699,272

Schedule of Allowance for Credit Losses

The following table presents the components of the allowance for credit losses:

	June 30, 2017		December 31, 2016
	(in thousands)
Allowance for loan losses	$	172,342	$	168,679
Reserve for unfunded lending commitments	2,656		2,646
Allowance for credit losses	$	174,998	$	171,325

Activity in the Allowance for Credit Losses

The following table presents the activity in the allowance for credit losses:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Balance at beginning of period	$	172,647		$	166,065		$	171,325		$	171,412
Loans charged off	(8,715		)	(10,746		)	(18,122		)	(21,901		)
Recoveries of loans previously charged off	4,366			7,278			10,295			11,556
Net loans charged off	(4,349		)	(3,468		)	(7,827		)	(10,345		)
Provision for credit losses	6,700			2,511			11,500			4,041
Balance at end of period	$	174,998		$	165,108		$	174,998		$	165,108

The Corporation has historically maintained an unallocated allowance for credit losses for factors and conditions that exist at the balance sheet date, but are not specifically identifiable, and to recognize the inherent imprecision in estimating and measuring loss exposure. During the second quarter of 2017, enhancements were made to allow for the impact of these factors and conditions to be quantified in the allowance allocation process. Accordingly, an unallocated allowance for credit losses is no longer necessary.

The following table presents the activity in the allowance for loan losses by portfolio segment:

	Real Estate - Commercial Mortgage			Commercial - Industrial, Financial and Agricultural			Real Estate - Home Equity			Real Estate - Residential Mortgage			Real Estate - Construction			Consumer			Leasing, other and overdrafts			Unallocated			Total
	(in thousands)
Three months ended June 30, 2017
Balance at March 31, 2017	$	47,373		$	55,309		$	23,821		$	22,018		$	7,501		$	3,031		$	3,268		$	7,755		$	170,076
Loans charged off	(242		)	(5,353		)	(592		)	(124		)	(774		)	(430		)	(1,200		)	—			(8,715		)
Recoveries of loans previously charged off	934			1,974			215			151			373			470			249			—			4,366
Net loans charged off	692			(3,379		)	(377		)	27			(401		)	40			(951		)	—			(4,349		)
Provision for loan losses (1)	9,307			15,712			(5,988		)	(5,606		)	2,434			(1,277		)	(212		)	(7,755		)	6,615
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Three months ended June 30, 2016
Balance at March 31, 2016	$	48,311		$	54,333		$	22,524		$	19,928		$	6,282		$	2,324		$	2,974		$	7,165		$	163,841
Loans charged off	(1,474		)	(4,625		)	(1,045		)	(340		)	(742		)	(569		)	(1,951		)	—			(10,746		)
Recoveries of loans previously charged off	1,367			2,931			350			420			1,563			539			108			—			7,278
Net loans charged off	(107		)	(1,694		)	(695		)	80			821			(30		)	(1,843		)	—			(3,468		)
Provision for loan losses (1)	(4,464		)	(884		)	4,341			1,218			(1,331		)	690			1,387			1,216			2,173
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546
Six months ended June 30, 2017
Balance at December 31, 2016	$	46,842		$	54,353		$	26,801		$	22,929		$	6,455		$	3,574		$	3,192		$	4,533		$	168,679
Loans charged off	(1,466		)	(10,880		)	(1,290		)	(340		)	(1,021		)	(1,286		)	(1,839		)	—			(18,122		)
Recoveries of loans previously charged off	1,384			6,165			352			381			921			706			386			—			10,295
Net loans charged off	(82		)	(4,715		)	(938		)	41			(100		)	(580		)	(1,453		)	—			(7,827		)
Provision for loan losses (1)	10,612			18,004			(8,407		)	(6,531		)	3,179			(1,200		)	366			(4,533		)	11,490
Balance at June 30, 2017	$	57,372		$	67,642		$	17,456		$	16,439		$	9,534		$	1,794		$	2,105		$	—		$	172,342
Six months ended June 30, 2016
Balance at December 31, 2015	$	47,866		$	57,098		$	22,405		$	21,375		$	6,529		$	2,585		$	2,468		$	8,728		$	169,054
Loans charged off	(2,056		)	(10,813		)	(2,586		)	(1,408		)	(1,068		)	(1,576		)	(2,394		)	—			(21,901		)
Recoveries of loans previously charged off	2,192			5,250			688			556			1,946			735			189			—			11,556
Net loans charged off	136			(5,563		)	(1,898		)	(852		)	878			(841		)	(2,205		)	—			(10,345		)
Provision for loan losses (1)	(4,262		)	220			5,663			703			(1,635		)	1,240			2,255			(347		)	3,837
Balance at June 30, 2016	$	43,740		$	51,755		$	26,170		$	21,226		$	5,772		$	2,984		$	2,518		$	8,381		$	162,546

(1) The provision for loan losses excluded an $85,000 and a $10,000 increase, respectively, in the reserve for unfunded lending commitments for the three and six months ended June 30, 2017 and a $338,000 and $204,000 increase, respectively, in the reserve for unfunded lending commitments for the three and    six months ended June 30, 2016.

The following table presents loans, net of unearned income and their related allowance for loan losses, by portfolio segment:

	Real Estate - Commercial Mortgage		Commercial - Industrial, Financial and Agricultural		Real Estate - Home Equity		Real Estate - Residential Mortgage		Real Estate - Construction		Consumer		Leasing, other and overdrafts		Unallocated		Total
	(in thousands)
Allowance for loan losses at June 30, 2017:
Measured for impairment under FASB ASC Subtopic 450-20	$	49,055	$	57,341	$	7,607	$	6,013	$	5,370	$	1,773	$	2,105	$	—	$	129,264
Evaluated for impairment under FASB ASC Section 310-10-35	8,317		10,301		9,849		10,426		4,164		21		—		N/A		43,078
	$	57,372	$	67,642	$	17,456	$	16,439	$	9,534	$	1,794	$	2,105	$	—	$	172,342
Loans, net of unearned income at June 30, 2017:
Measured for impairment under FASB ASC Subtopic 450-20	$	6,212,998	$	4,189,676	$	1,557,989	$	1,741,404	$	921,839	$	283,123	$	252,253	N/A		$	15,159,282
Evaluated for impairment under FASB ASC Section 310-10-35	49,010		56,173		21,750		43,308		17,061		33		—		N/A		187,335
	$	6,262,008	$	4,245,849	$	1,579,739	$	1,784,712	$	938,900	$	283,156	$	252,253	N/A		$	15,346,617
Allowance for loan losses at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	32,861	$	40,945	$	17,089	$	9,044	$	4,004	$	2,971	$	2,518	$	8,381	$	117,813
Evaluated for impairment under FASB ASC Section 310-10-35	10,879		10,810		9,081		12,182		1,768		13		—		N/A		44,733
	$	43,740	$	51,755	$	26,170	$	21,226	$	5,772	$	2,984	$	2,518	$	8,381	$	162,546
Loans, net of unearned income at June 30, 2016:
Measured for impairment under FASB ASC Subtopic 450-20	$	5,582,027	$	4,057,883	$	1,629,443	$	1,399,399	$	841,193	$	278,053	$	194,254	N/A		$	13,982,252
Evaluated for impairment under FASB ASC Section 310-10-35	53,320		41,294		17,876		47,893		12,506		18		—		N/A		172,907
	$	5,635,347	$	4,099,177	$	1,647,319	$	1,447,292	$	853,699	$	278,071	$	194,254	N/A		$	14,155,159

N/A - Not applicable

Total Impaired Loans by Class Segment

The following table presents total impaired loans by class segment:

	June 30, 2017						December 31, 2016
	Unpaid Principal Balance		Recorded Investment		Related Allowance		Unpaid Principal Balance		Recorded Investment		Related Allowance
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	25,219	$	22,396	$	—	$	28,757	$	25,447	$	—
Commercial - secured	43,206		36,036		—		29,296		25,526		—
Real estate - residential mortgage	4,629		4,629		—		4,689		4,689		—
Construction - commercial residential	10,054		8,044		—		6,271		4,795		—
Construction - commercial	598		590		—		—		—		—
	83,706		71,695				69,013		60,457
With a related allowance recorded:
Real estate - commercial mortgage	34,131		26,614		8,317		37,132		29,446		10,162
Commercial - secured	23,576		19,479		9,947		27,767		22,626		13,198
Commercial - unsecured	912		658		354		1,122		823		455
Real estate - home equity	25,753		21,750		9,849		23,971		19,205		9,511
Real estate - residential mortgage	45,300		38,679		10,426		48,885		41,359		11,897
Construction - commercial residential	10,479		7,210		3,725		10,103		4,206		1,300
Construction - commercial	186		126		45		681		435		145
Construction - other	1,096		1,091		394		1,096		1,096		423
Consumer - direct	18		18		12		21		21		14
Consumer - indirect	16		15		9		19		19		12
	141,467		115,640		43,078		150,797		119,236		47,117
Total	$	225,173	$	187,335	$	43,078	$	219,810	$	179,693	$	47,117

As of June 30, 2017 and December 31, 2016, there were $71.7 million and $60.5 million, respectively, of impaired loans that did not have a related allowance for loan loss. The estimated fair values of the collateral securing these loans exceeded their carrying amount, or they were previously charged down to realizable collateral values. Accordingly, no specific valuation allowance was considered to be necessary.

The following table presents average impaired loans by class segment:

	Three months ended June 30								Six months ended June 30
	2017				2016				2017				2016
	Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)		Average Recorded Investment		Interest Income (1)
	(in thousands)
With no related allowance recorded:
Real estate - commercial mortgage	$	22,316	$	71	$	22,762	$	72	$	23,360	$	141	$	22,707	141
Commercial - secured	30,829		46		15,182		20		29,061		82		14,688		36
Real estate - residential mortgage	4,643		26		6,191		33		4,658		52		5,724		63
Construction - commercial residential	6,368		4		6,421		16		5,844		6		7,236		35
Construction - commercial	597		—		—		—		398		—		—		—
	64,753		147		50,556		141		63,321		281		50,355		275
With a related allowance recorded:
Real estate - commercial mortgage	27,710		88		33,042		104		28,288		173		33,927		212
Commercial - secured	20,675		31		25,919		33		21,325		63		28,489		71
Commercial - unsecured	712		—		929		1		749		—		893		2
Real estate - home equity	20,352		117		17,950		70		19,969		212		17,222		127
Real estate - residential mortgage	39,500		225		41,928		226		40,119		455		43,164		461
Construction - commercial residential	7,248		4		5,566		14		6,234		7		5,807		29
Construction - commercial	104		—		548		—		214		—		578		—
Construction - other	1,094		—		513		—		1,094		—		406		—
Consumer - direct	19		—		10		—		19		—		16		—
Consumer - indirect	17		—		15		—		17		—		11		—
Leasing, other and overdrafts	—		—		711		—		475		—		949		—
	117,431		465		127,131		448		118,503		910		131,462		902
Total	$	182,184	$	612	$	177,687	$	589	$	181,824	$	1,191	$	181,817	1,177

(1) All impaired loans, excluding accruing TDRs, were non-accrual loans. Interest income recognized for the three and six months ended June 30, 2017 and 2016 represents amounts earned on accruing TDRs.

Financing Receivable Credit Quality Indicators

The following table presents internal credit risk ratings for the indicated loan class segments:

	Pass						Special Mention						Substandard or Lower						Total
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - commercial mortgage	$	6,004,958		$	5,763,122		$	119,534		$	132,484		$	137,516		$	122,976		$	6,262,008		$	6,018,582
Commercial - secured	3,813,864			3,686,152			119,119			128,873			169,602			118,527			4,102,585			3,933,552
Commercial - unsecured	134,455			145,922			6,264			4,481			2,545			3,531			143,264			153,934
Total commercial - industrial, financial and agricultural	3,948,319			3,832,074			125,383			133,354			172,147			122,058			4,245,849			4,087,486
Construction - commercial residential	131,115			113,570			9,789			15,447			16,387			13,172			157,291			142,189
Construction - commercial	718,702			635,963			4,727			3,412			5,220			5,115			728,649			644,490
Total construction (excluding Construction - other)	849,817			749,533			14,516			18,859			21,607			18,287			885,940			786,679
	$	10,803,094		$	10,344,729		$	259,433		$	284,697		$	331,270		$	263,321		$	11,393,797		$	10,892,747
% of Total	94.8		%	95.0		%	2.3		%	2.6		%	2.9		%	2.4		%	100.0		%	100.0		%

The following table presents a summary of performing, delinquent and non-performing loans for the indicated loan class segments:

	Performing						Delinquent (1)						Non-performing (2)						Total
	June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016			June 30, 2017			December 31, 2016
	(dollars in thousands)
Real estate - home equity	$	1,557,629		$	1,602,687		$	10,223		$	9,274		$	11,887		$	13,154		$	1,579,739		$	1,625,115
Real estate - residential mortgage	1,746,977			1,557,995			15,889			20,344			21,846			23,655			1,784,712			1,601,994
Construction - other	51,869			55,874			—			—			1,091			1,096			52,960			56,970
Consumer - direct	55,825			93,572			1,761			1,752			1,143			1,563			58,729			96,887
Consumer - indirect	222,380			190,656			1,921			3,599			126			328			224,427			194,583
Total consumer	278,205			284,228			3,682			5,351			1,269			1,891			283,156			291,470
Leasing	251,050			229,591			922			1,068			281			317			252,253			230,976
	$	3,885,730		$	3,730,375		$	30,716		$	36,037		$	36,374		$	40,113		$	3,952,820		$	3,806,525
% of Total	98.3		%	98.0		%	0.8		%	0.9		%	0.9		%	1.1		%	100.0		%	100.0		%

(1) Includes all accruing loans 30 days to 89 days past due.

(2) Includes all accruing loans 90 days or more past due and all non-accrual loans.

Non-Performing Assets

The following table presents non-performing assets:

	June 30, 2017		December 31, 2016
	(in thousands)
Non-accrual loans	$	122,600	$	120,133
Loans 90 days or more past due and still accruing	13,143		11,505
Total non-performing loans	135,743		131,638
Other real estate owned (OREO)	11,432		12,815
Total non-performing assets	$	147,175	$	144,453

Past due Loan Status and Non-Accrual Loans by Portfolio Segment

The following tables present past due status and non-accrual loans by portfolio segment and class segment:

	June 30, 2017
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	8,259	$	676	$	309	$	32,267	$	32,576	$	41,511	$	6,220,497	$	6,262,008
Commercial - secured	6,411		2,425		3,135		47,489		50,624		59,460		4,043,125		4,102,585
Commercial - unsecured	430		57		98		598		696		1,183		142,081		143,264
Total commercial - industrial, financial and agricultural	6,841		2,482		3,233		48,087		51,320		60,643		4,185,206		4,245,849
Real estate - home equity	8,103		2,120		2,167		9,720		11,887		22,110		1,557,629		1,579,739
Real estate - residential mortgage	12,640		3,249		4,906		16,940		21,846		37,735		1,746,977		1,784,712
Construction - commercial residential	538		20		978		13,779		14,757		15,315		141,976		157,291
Construction - commercial	—		—		—		716		716		716		727,933		728,649
Construction - other	—		—		—		1,091		1,091		1,091		51,869		52,960
Total real estate - construction	538		20		978		15,586		16,564		17,122		921,778		938,900
Consumer - direct	1,054		707		1,143		—		1,143		2,904		55,825		58,729
Consumer - indirect	1,708		213		126		—		126		2,047		222,380		224,427
Total consumer	2,762		920		1,269		—		1,269		4,951		278,205		283,156
Leasing, other and overdrafts	671		251		281		—		281		1,203		251,050		252,253
Total	$	39,814	$	9,718	$	13,143	$	122,600	$	135,743	$	185,275	$	15,161,342	$	15,346,617

	December 31, 2016
	30-59 Days Past Due		60-89 Days Past Due		≥ 90 Days Past Due and Accruing		Non- accrual		Total ≥ 90 Days		Total Past Due		Current		Total
	(in thousands)
Real estate - commercial mortgage	$	6,254	$	1,622	$	383	$	38,936	$	39,319	$	47,195	$	5,971,387	$	6,018,582
Commercial - secured	6,660		2,616		959		41,589		42,548		51,824		3,881,728		3,933,552
Commercial - unsecured	898		35		152		760		912		1,845		152,089		153,934
Total commercial - industrial, financial and agricultural	7,558		2,651		1,111		42,349		43,460		53,669		4,033,817		4,087,486
Real estate - home equity	6,596		2,678		2,543		10,611		13,154		22,428		1,602,687		1,625,115
Real estate - residential mortgage	15,600		4,744		5,224		18,431		23,655		43,999		1,557,995		1,601,994
Construction - commercial residential	233		51		36		8,275		8,311		8,595		133,594		142,189
Construction - commercial	743		—		—		435		435		1,178		643,312		644,490
Construction - other	—		—		—		1,096		1,096		1,096		55,874		56,970
Total real estate - construction	976		51		36		9,806		9,842		10,869		832,780		843,649
Consumer - direct	1,211		541		1,563		—		1,563		3,315		93,572		96,887
Consumer - indirect	3,200		399		328		—		328		3,927		190,656		194,583
Total consumer	4,411		940		1,891		—		1,891		7,242		284,228		291,470
Leasing, other and overdrafts	543		525		317		—		317		1,385		229,591		230,976
Total	$	41,938	$	13,211	$	11,505	$	120,133	$	131,638	$	186,787	$	14,512,485	$	14,699,272

Troubled Debt Restructurings on Financing Receivables

The following table presents TDRs, by class segment:

	June 30, 2017		December 31, 2016
	(in thousands)
Real-estate - residential mortgage	$	26,368	$	27,617
Real-estate - commercial mortgage	13,772		15,957
Real estate - home equity	12,031		8,594
Commercial	8,086		6,627
Construction	1,475		726
Consumer	33		39
Total accruing TDRs	61,765		59,560
Non-accrual TDRs (1)	29,373		27,850
Total TDRs	$	91,138	$	87,410

(1) Included in non-accrual loans in the preceding table detailing non-performing assets

Loan Terms Modified Under Troubled Debt Restructurings

The following table presents TDRs, by class segment and type of concession for loans that were modified during the three and six months ended June 30, 2017 and 2016:

		Three months ended June 30						Six months ended June 30
		2017			2016			2017			2016
		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment		Number of Loans	Post-Modification Recorded Investment
		(dollars in thousands)
Real estate – residential mortgage:
	Extend maturity without rate concession	—	$	—	2	$	315	2	$	337	2	$	315
	Bankruptcy	1	157		1	373		2	335		1	373
Real estate - commercial mortgage:
	Extend maturity without rate concession	3	663		—	—		4	981		—	$	—
	Bankruptcy	1	12		—	—		1	12		—	$	—
Real estate - home equity:
	Extend maturity without rate concession	17	1,275		18	738		33	2,559		39	$	1,995
	Bankruptcy	10	1,063		5	231		17	1,516		22	$	1,716
Commercial:
	Extend maturity without rate concession	4	2,567		4	1,146		8	5,693		6	1,976
	Bankruptcy	1	490		—	—		1	490		—	—
Commercial – unsecured:
	Extend maturity without rate concession	1	33		—	—		1	33		2	103
Construction - commercial residential:
	Extend maturity without rate concession	1	1,204		—	—		1	1,204		—	—
Consumer - indirect:
	Bankruptcy	—	—		—	—		—	—		1	2
Total		39	$	7,464	30	$	2,803	70	$	13,160	73	$	6,480

The following table presents TDRs, by class segment, as of June 30, 2017 and 2016, that were modified in the previous 12 months and had a post-modification payment default during the six months ended June 30, 2017 and 2016. The Corporation defines a payment default as a single missed payment.

	2017			2016
	Number of Loans	Recorded Investment		Number of Loans	Recorded Investment
	(dollars in thousands)
Real estate - residential mortgage	7	$	1,911	5	$	972
Real estate - commercial mortgage	3	674		2	132
Real estate - home equity	16	922		22	1,448
Commercial	5	2,772		5	1,123
Consumer	1	16		—	—
Total	32	$	6,295	34	$	3,675

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Mortgage Servicing Rights (Tables)

6 Months Ended

Jun. 30, 2017

Transfers and Servicing [Abstract]

Summary of Changes in Mortgage Servicing Rights

The following table summarizes the changes in mortgage servicing rights ("MSRs"), which are included in other assets on the consolidated balance sheets:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Amortized cost:
Balance at beginning of period	$	38,543		$	40,195		$	38,822		$	40,944
Originations of mortgage servicing rights	1,203			1,508			2,386			2,428
Amortization	(1,566		)	(1,829		)	(3,028		)	(3,498		)
Balance at end of period	$	38,180		$	39,874		$	38,180		$	39,874
Valuation allowance:
Balance at beginning of period	$	(1,291	)	$	—		$	(1,291	)	$	—
(Additions) reductions to valuation allowance	1,291			(1,721		)	1,291			(1,721		)
Balance at end of period	$	—		$	(1,721	)	$	—		$	(1,721	)
Net MSRs at end of period	$	38,180		$	38,153		$	38,180		$	38,153

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Stock-Based Compensation (Tables)

6 Months Ended

Jun. 30, 2017

Disclosure of Compensation Related Costs, Share-based Payments [Abstract]

Summary of Compensation Expense and Related Tax Benefits

The following table presents compensation (benefit) expense and the related tax benefits for equity awards recognized in the consolidated statements of income:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Stock-based compensation expense	$	1,035		$	1,820		$	1,769		$	3,256
Tax benefit	(1,940		)	(642		)	(2,684		)	(1,075		)
Stock-based compensation expense, net of tax benefit	$	(905	)	$	1,178		$	(915	)	$	2,181

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Employee Benefit Plans (Tables)

6 Months Ended

Jun. 30, 2017

Compensation and Retirement Disclosure [Abstract]

Schedule of Defined Benefit Plans Disclosures

The net periodic benefit of the Corporation’s Postretirement Benefits Plan ("Postretirement Plan") consisted of the following components:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Interest cost	$	17		$	5		$	34		$	43
Expected return on plan assets	—			(1		)	—			(1		)
Net accretion and deferral	(141		)	(210		)	(282		)	(275		)
Net periodic benefit	$	(124	)	$	(206	)	$	(248	)	$	(233	)

The net periodic benefit cost for the Corporation’s Defined Benefit Pension Plan ("Pension Plan") consisted of the following components:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Service cost (1)	$	—		$	194		$	—		$	344
Interest cost	830			879			1,660			1,760
Expected return on plan assets	(451		)	(433		)	(902		)	(1,159		)
Net amortization and deferral	663			428			1,326			1,210
Net periodic benefit cost	$	1,042		$	1,068		$	2,084		$	2,155

(1) The Pension Plan was curtailed effective January 1, 2008. Service cost was related to administrative costs associated with the plan and was not due to the accrual of additional participant benefits.

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Derivative Financial Instruments (Tables)

6 Months Ended

Jun. 30, 2017

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Summary of Notional Amounts and Fair Values of Derivative Financial Instruments

The following table presents a summary of the notional amounts and fair values of derivative financial instruments:

	June 30, 2017					December 31, 2016
	Notional Amount		Asset (Liability) Fair Value			Notional Amount		Asset (Liability) Fair Value
	(in thousands)
Interest Rate Locks with Customers
Positive fair values	$	141,136	$	1,354		$	87,119	$	863
Negative fair values	3,573		(28		)	18,239		(227		)
Net interest rate locks with customers			1,326					636
Forward Commitments
Positive fair values	25,343		94			70,031		2,223
Negative fair values	91,629		(205		)	19,964		(112		)
Net forward commitments			(111		)			2,111
Interest Rate Swaps with Customers
Positive fair values	1,242,309		34,331			876,744		24,397
Negative fair values	581,370		(13,938		)	583,060		(16,998		)
Net interest rate swaps with customers			20,393					7,399
Interest Rate Swaps with Dealer Counterparties
Positive fair values	581,370		13,938			583,060		16,998
Negative fair values (1)	1,242,309		(29,167		)	876,744		(24,397		)
Net interest rate swaps with dealer counterparties			(15,229		)			(7,399		)
Foreign Exchange Contracts with Customers
Positive fair values	4,460		309			11,674		504
Negative fair values	7,295		(343		)	4,659		(221		)
Net foreign exchange contracts with customers			(34		)			283
Foreign Exchange Contracts with Correspondent Banks
Positive fair values	9,268		407			7,040		241
Negative fair values	6,873		(283		)	12,869		(447		)
Net foreign exchange contracts with correspondent banks			124					(206		)
Net derivative fair value asset			$	6,469				$	2,824

(1) Includes centrally cleared interest rate swaps with a notional amount of $240.7 million and a fair value of $0 as of June 30, 2017. Collateral is posted daily through a clearing agent for changes in the fair value.

Summary of Fair Value Gains and Losses on Derivative Financial Instruments

The following table presents a summary of the fair value gains (losses) on derivative financial instruments:

	Three months ended June 30						Six months ended June 30
	2017			2016			2017			2016
	(in thousands)
Interest rate locks with customers	$	(155	)	$	512		$	690		$	1,744
Forward commitments	157			(906		)	(2,222		)	(2,012		)
Interest rate swaps with customers	13,809			20,569			12,994			50,000
Interest rate swaps with dealer counterparties	(10,831		)	(20,569		)	(7,830		)	(50,000		)
Foreign exchange contracts with customers	(325		)	81			(317		)	455
Foreign exchange contracts with correspondent banks	367			(68		)	330			(347		)
Net fair value gains (losses) on derivative financial instruments	$	3,022		$	(381	)	$	3,645		$	(160	)

Summary of Corporation's Mortgage Loans Held for Sale

The following table presents a summary of the Corporation’s mortgage loans held for sale:

	June 30, 2017		December 31, 2016
	(in thousands)
Cost	$	32,810	$	28,708
Fair value	33,364		28,697

Summary of Offsetting Derivative Assets

The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:

	Gross Amounts		Gross Amounts Not Offset
	Recognized		on the Consolidated
	on the		Balance Sheets
	Consolidated		Financial			Cash			Net
	Balance Sheets		Instruments(1)			Collateral (2)			Amount
	(in thousands)
June 30, 2017
Interest rate swap derivative assets	$	48,269	$	(14,372	)	$	—		$	33,897
Foreign exchange derivative assets with correspondent banks	407		(283		)	—			124
Total	$	48,676	$	(14,655	)	$	—		$	34,021
Interest rate swap derivative liabilities	$	43,105	$	(14,372	)	$	(18,320	)	$	10,413
Foreign exchange derivative liabilities with correspondent banks	283		(283		)	—			—
Total	$	43,388	$	(14,655	)	$	(18,320	)	$	10,413
December 31, 2016
Interest rate swap derivative assets	$	41,395	$	(15,117	)	$	—		$	26,278
Foreign exchange derivative assets with correspondent banks	241		(241		)	—			—
Total	$	41,636	$	(15,358	)	$	—		$	26,278
Interest rate swap derivative liabilities	$	41,395	$	(15,117	)	$	(4,010	)	$	22,268
Foreign exchange derivative liabilities with correspondent banks	447		(241		)	(206		)	—
Total	$	41,842	$	(15,358	)	$	(4,216	)	$	22,268

(1) For derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent collateral received from the counterparty or posted by the Corporation.

Summary of Offsetting Derivative Liabilities

The following table presents the Corporation's financial instruments that are eligible for offset, and the effects of offsetting, on the consolidated balance sheets:

	Gross Amounts		Gross Amounts Not Offset
	Recognized		on the Consolidated
	on the		Balance Sheets
	Consolidated		Financial			Cash			Net
	Balance Sheets		Instruments(1)			Collateral (2)			Amount
	(in thousands)
June 30, 2017
Interest rate swap derivative assets	$	48,269	$	(14,372	)	$	—		$	33,897
Foreign exchange derivative assets with correspondent banks	407		(283		)	—			124
Total	$	48,676	$	(14,655	)	$	—		$	34,021
Interest rate swap derivative liabilities	$	43,105	$	(14,372	)	$	(18,320	)	$	10,413
Foreign exchange derivative liabilities with correspondent banks	283		(283		)	—			—
Total	$	43,388	$	(14,655	)	$	(18,320	)	$	10,413
December 31, 2016
Interest rate swap derivative assets	$	41,395	$	(15,117	)	$	—		$	26,278
Foreign exchange derivative assets with correspondent banks	241		(241		)	—			—
Total	$	41,636	$	(15,358	)	$	—		$	26,278
Interest rate swap derivative liabilities	$	41,395	$	(15,117	)	$	(4,010	)	$	22,268
Foreign exchange derivative liabilities with correspondent banks	447		(241		)	(206		)	—
Total	$	41,842	$	(15,358	)	$	(4,216	)	$	22,268

(1) For derivative assets, amounts represent any derivative liability fair values that could be offset in the event of counterparty or customer default. For derivative liabilities, amounts represent any derivative asset fair values that could be offset in the event of counterparty or customer default.

(2) Amounts represent collateral received from the counterparty or posted by the Corporation.

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Commitments and Contingencies (Tables)

6 Months Ended

Jun. 30, 2017

Commitments and Contingencies Disclosure [Abstract]

Summary of Outstanding Commitments to Extend Credit and Letters of Credit

The outstanding amounts of commitments to extend credit and letters of credit were as follows:

	June 30, 2017		December 31, 2016
	(in thousands)
Commitments to extend credit	$	6,382,314	$	6,075,567
Standby letters of credit	349,953		356,359
Commercial letters of credit	41,501		38,901

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Fair Value Measurements (Tables)

6 Months Ended

Jun. 30, 2017

Fair Value Disclosures [Abstract]

Schedule of Fair Value, Assets and Liabilities Measured on Recurring Basis

The following tables present summaries of the Corporation’s assets and liabilities measured at fair value on a recurring basis and reported on the consolidated balance sheets:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	33,364	$	—	$	33,364
Available for sale investment securities:
Equity securities	21,455		—		—		21,455
U.S. Government sponsored agency securities	—		6,054		—		6,054
State and municipal securities	—		401,636		—		401,636
Corporate debt securities	—		85,795		3,197		88,992
Collateralized mortgage obligations	—		538,507		—		538,507
Residential mortgage-backed securities	—		1,213,065		—		1,213,065
Commercial mortgage-backed securities	—		121,067		—		121,067
Auction rate securities	—		—		97,923		97,923
Total available for sale investment securities	21,455		2,366,124		101,120		2,488,699
Other assets	18,533		49,717		—		68,250
Total assets	$	39,988	$	2,449,205	$	101,120	$	2,590,313
Other liabilities	$	18,438	$	43,338	$	—	$	61,776

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Mortgage loans held for sale	$	—	$	28,697	$	—	$	28,697
Available for sale investment securities:
Equity securities	24,526		—		—		24,526
U.S. Government sponsored agency securities	—		134		—		134
State and municipal securities	—		391,641		—		391,641
Corporate debt securities	—		106,537		2,872		109,409
Collateralized mortgage obligations	—		593,860		—		593,860
Residential mortgage-backed securities	—		1,317,838		—		1,317,838
Commercial mortgage-backed securities	—		24,563		—		24,563
Auction rate securities	—		—		97,256		97,256
Total available for sale investment securities	24,526		2,434,573		100,128		2,559,227
Other assets	17,111		44,481		—		61,592
Total assets	$	41,637	$	2,507,751	$	100,128	$	2,649,516
Other liabilities	$	17,032	$	41,734	$	—	$	58,766

Schedule of Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis using Level 3 Inputs

The following table presents the changes in the Corporation’s available for sale investment securities measured at fair value on a recurring basis using unobservable inputs (Level 3):

	Three months ended June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at March 31, 2017	$	422	$	2,750		$	97,439
Unrealized adjustment to fair value (1)	—		22			386
Discount accretion (2)	—		3			98
Balance at June 30, 2017	$	422	$	2,775		$	97,923
	Three months ended June 30, 2016
Balance at March 31, 2016	$	706	$	2,400		$	97,326
Unrealized adjustment to fair value (1)	—		22			482
Discount accretion (2)	—		3			78
Balance at June 30, 2016	$	706	$	2,425		$	97,886
	Six months ended June 30, 2017
	Pooled Trust Preferred Securities		Single-issuer Trust Preferred Securities			ARCs
	(in thousands)
Balance at December 31, 2016	$	422	$	2,450		$	97,256
Unrealized adjustment to fair value (1)	—		319			472
Discount accretion (2)	—		6			195
Balance at June 30, 2017	$	422	$	2,775		$	97,923
	Six months ended June 30, 2016
Balance at December 31, 2015	$	706	$	2,630		$	98,059
Unrealized adjustment to fair value (1)	—		(211		)	(350		)
Discount accretion (2)	—		6			177
Balance at June 30, 2016	$	706	$	2,425		$	97,886

(1) Pooled trust preferred securities, single-issuer trust preferred securities and ARCs are classified as available for sale investment securities; as such, the unrealized adjustment to fair value was recorded as an unrealized holding gain (loss) and included as a component of "available for sale investment securities" on the consolidated balance sheets.

(2) Included as a component of "net interest income" on the consolidated statements of income.

Fair Value, Assets and Liabilities Measured on Nonrecurring Basis

The following table presents the Corporation’s financial assets measured at fair value on a nonrecurring basis and reported on the Corporation’s consolidated balance sheets:

	June 30, 2017
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	144,256	$	144,256
Other financial assets	—		—		49,613		49,613
Total assets	$	—	$	—	$	193,869	$	193,869

	December 31, 2016
	Level 1		Level 2		Level 3		Total
	(in thousands)
Net loans	$	—	$	—	$	132,576	$	132,576
Other financial assets	—		—		50,347		50,347
Total assets	$	—	$	—	$	182,923	$	182,923

Details of Book Value and Fair Value of Financial Instruments

As required by FASB ASC Section 825-10-50, the following table details the book values and estimated fair values of the Corporation’s financial instruments as of June 30, 2017 and December 31, 2016. In addition, a general description of the methods and assumptions used to estimate such fair values is also provided.

	June 30, 2017				December 31, 2016
	Book Value		Estimated Fair Value		Book Value		Estimated Fair Value
	(in thousands)
FINANCIAL ASSETS
Cash and due from banks	$	94,938	$	94,938	$	118,763	$	118,763
Interest-bearing deposits with other banks	322,514		322,514		233,763		233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328		70,328		57,489		57,489
Loans held for sale (1)	62,354		62,354		28,697		28,697
Available for sale investment securities (1)	2,488,699		2,488,699		2,559,227		2,559,227
Net Loans (1)	15,174,275		15,007,961		14,530,593		14,387,454
Accrued interest receivable	47,603		47,603		46,294		46,294
Other financial assets (1)	212,773		212,773		206,132		206,132
FINANCIAL LIABILITIES
Demand and savings deposits	$	12,610,951	$	12,610,951	$	12,259,622	$	12,259,622
Time deposits	2,746,410		2,758,807		2,753,242		2,769,757
Short-term borrowings	694,859		694,859		541,317		541,317
Accrued interest payable	7,804		7,804		9,632		9,632
Other financial liabilities (1)	252,537		252,537		216,080		216,080
Federal Home Loan Bank advances and other long-term debt	1,037,961		1,035,711		929,403		928,167

(1) These financial instruments, or certain financial instruments in these categories, are measured at fair value on the Corporation’s consolidated balance sheets. Descriptions of the fair value determinations for these financial instruments are disclosed above.

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Net Income Per Share Reconciliation of Weighted Average Common Shares Outstanding (Details) - shares shares in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Weighted Average Number of Shares Outstanding Reconciliation [Abstract]
Weighted average shares outstanding (basic) (in shares)	174,597	173,394	174,375	173,363
Impact of common stock equivalents (in shares)	935	924	1,179	1,004
Weighted average shares outstanding (diluted) (in shares)	175,532	174,318	175,554	174,367

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Net Income Per Share Narrative (Details) - shares	3 Months Ended	6 Months Ended
	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Stock Option [Member]
Antidilutive Securities Excluded from Computation of Earnings Per Share [Line Items]
Stock options excluded from the diluted net income per share computation (in shares)	802,000	0	844,000

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Accumulated Other Comprehensive Income Changes in Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Equity [Abstract]
Unrealized gain on securities, before tax amount	$ 15,798	$ 19,753	$ 22,374	$ 45,946
Unrealized gain on securities, tax effect	(5,530)	(6,914)	(7,833)	(16,081)
Unrealized gain on securities, net of tax amount	10,268	12,839	14,541	29,865
Reclassification adjustment for securities gains included in net income, before tax amount	(1,436)	(76)	(2,542)	(1,023)
Reclassification adjustment for securities gains included in net income, tax effect	504	27	891	358
Reclassification adjustment for securities gains included in net income, net of tax amount	(932)	(49)	(1,651)	(665)
Amortization of unrealized loss on derivative financial instruments, before tax amount		6		12
Amortization of unrealized loss on derivative financial instruments, tax effect		(2)		(4)
Amortization of unrealized loss on derivative financial instruments, net of tax amount	0	4	0	8
Amortization of net unrecognized pension and postretirement items, before tax amount	522	49	1,051	766
Amortization of net unrecognized pension and postretirement items, tax effect	(181)	(17)	(367)	(268)
Amortization of net unrecognized pension and postretirement items, net of tax amount	341	32	684	498
Total Other Comprehensive Income, Before Tax Amount	14,884	19,732	20,883	45,701
Total Other Comprehensive Income, Tax Effect	(5,207)	(6,906)	(7,309)	(15,995)
Other Comprehensive Income	$ 9,677	$ 12,826	$ 13,574	$ 29,706

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Accumulated Other Comprehensive Income Components of Other Comprehensive Income (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	$ (34,552)	$ (5,137)	$ (38,449)	$ (22,017)
Other comprehensive income before reclassifications	10,268	12,839	14,541	29,865
Amounts reclassified from accumulated other comprehensive income (loss)	(591)	(13)	(967)	(159)
Ending Balance	(24,875)	7,689	(24,875)	7,689
Unrealized Gains (Losses) on Investment Securities Not Other-Than-Temporarily Impaired
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(19,493)	9,911	(23,047)	(6,499)
Other comprehensive income before reclassifications	10,268	12,839	14,541	29,865
Amounts reclassified from accumulated other comprehensive income (loss)	(932)	(49)	(1,651)	(665)
Ending Balance	(10,157)	22,701	(10,157)	22,701
Unrealized Non-Credit Gains (Losses) on Other-Than-Temporarily Impaired Debt Securities
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	273	458	273	458
Other comprehensive income before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	0	0	0
Ending Balance	273	458	273	458
Unrealized Effective Portions of Losses on Forward-Starting Interest Rate Swaps
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	0	(11)	0	(15)
Other comprehensive income before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	0	4	0	8
Ending Balance	0	(7)	0	(7)
Unrecognized Pension and Postretirement Plan Income (Costs)
Accumulated Other Comprehensive Income [Roll Forward]
Beginning Balance	(15,332)	(15,495)	(15,675)	(15,961)
Other comprehensive income before reclassifications	0	0	0	0
Amounts reclassified from accumulated other comprehensive income (loss)	341	32	684	498
Ending Balance	$ (14,991)	$ (15,463)	$ (14,991)	$ (15,463)

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Investment Securities Schedule of Amortized Cost and Fair Values of Investment Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Schedule of Investments [Line Items]
Securities pledged as collateral	$ 1,700,000	$ 1,800,000
Amortized Cost	2,503,895	2,594,255
Gross Unrealized Gains	24,890	24,807
Gross Unrealized Losses	(40,086)	(59,835)
Estimated Fair Value	2,488,699	2,559,227
Other Equity Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Equity Securities	1,000	1,000
U.S. Government-Sponsored Agency Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	5,960	132
Gross Unrealized Gains	94	2
Gross Unrealized Losses	0	0
Estimated Fair Value	6,054	134
State and Municipal Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	405,035	405,274
Gross Unrealized Gains	3,726	2,043
Gross Unrealized Losses	(7,125)	(15,676)
Estimated Fair Value	401,636	391,641
Corporate Debt Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	88,887	112,016
Gross Unrealized Gains	2,531	1,978
Gross Unrealized Losses	(2,426)	(4,585)
Estimated Fair Value	88,992	109,409
Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Amortized Cost	546,847	604,095
Gross Unrealized Gains	1,399	1,943
Gross Unrealized Losses	(9,739)	(12,178)
Estimated Fair Value	538,507	593,860
Mortgage-Backed Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	1,218,257	1,328,192
Gross Unrealized Gains	5,782	6,546
Gross Unrealized Losses	(10,974)	(16,900)
Estimated Fair Value	1,213,065	1,317,838
Commercial Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	121,012	25,100
Gross Unrealized Gains	390	0
Gross Unrealized Losses	(335)	(537)
Estimated Fair Value	121,067	24,563
Auction Rate Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	107,410	107,215
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(9,487)	(9,959)
Estimated Fair Value	97,923	97,256
Debt Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	2,493,408	2,582,024
Gross Unrealized Gains	13,922	12,512
Gross Unrealized Losses	(40,086)	(59,835)
Estimated Fair Value	2,467,244	2,534,701
Equity Securities [Member]
Schedule of Investments [Line Items]
Amortized Cost	10,487	12,231
Gross Unrealized Gains	10,968	12,295
Gross Unrealized Losses	0	0
Estimated Fair Value	21,455	$ 24,526
Pooled Trust Preferred Securities [Member]
Schedule of Investments [Line Items]
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 10,000		$ 10,000

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Investment Securities Schedule of Amortized Cost and Fair Values of Debt Securities by Contractual Maturities (Details) $ in Thousands	Jun. 30, 2017 USD ($)
Amortized Cost
Due in one year or less	$ 20,103
Due from one year to five years	27,967
Due from five years to ten years	111,883
Due after ten years	447,339
Amortized cost, before securities without debt maturities	607,292
Amortized Cost	2,493,408
Estimated Fair Value
Due in one year or less	20,336
Due from one year to five years	28,335
Due from five years to ten years	113,050
Due after ten years	432,884
Available for sale securities, debt maturities, before securities without single maturities	594,605
Estimated Fair Value	2,467,244
Collateralized Mortgage Obligations [Member]
Amortized Cost
Available-for-sale securities, amortized cost without single maturity date	546,847
Estimated Fair Value
Available-for-sale securities, debt maturities, without single maturity date, fair value	538,507
Commercial Mortgage Backed Securities [Member]
Amortized Cost
Available-for-sale securities, amortized cost without single maturity date	121,012
Estimated Fair Value
Available-for-sale securities, debt maturities, without single maturity date, fair value	121,067
Mortgage-Backed Securities [Member]
Amortized Cost
Available-for-sale securities, amortized cost without single maturity date	1,218,257
Estimated Fair Value
Available-for-sale securities, debt maturities, without single maturity date, fair value	$ 1,213,065

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Investment Securities Summary of Gains and Losses from Equity and Debt Securities, and Losses from Other-than-Temporary Impairment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Gain (Loss) on Investments [Line Items]
Gross Realized Gains	$ 1,450	$ 112	$ 2,556	$ 1,059
Gross Realized Losses	(14)	(36)	(14)	(36)
Net Gains (Losses)	1,436	76	2,542	1,023
Equity Securities [Member]
Gain (Loss) on Investments [Line Items]
Gross Realized Gains	1,305	4	2,350	737
Gross Realized Losses	0	(10)	0	(10)
Net Gains (Losses)	1,305	(6)	2,350	727
Debt Securities [Member]
Gain (Loss) on Investments [Line Items]
Gross Realized Gains	145	108	206	322
Gross Realized Losses	(14)	(26)	(14)	(26)
Net Gains (Losses)	$ 131	$ 82	$ 192	$ 296

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Investment Securities Gross Unrealized Losses and Fair Values of Investments by Category and Length of Time in a Continuous Unrealized Loss Position (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
State and Municipal Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	$ 214,497	$ 247,509
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(7,125)	(15,676)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	214,497	247,509
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(7,125)	(15,676)
Corporate Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	4,020	11,922
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(9)	(110)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	32,148	34,629
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(2,417)	(4,475)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	36,168	46,551
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(2,426)	(4,585)
Collateralized Mortgage Obligations [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	144,523	166,905
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(3,057)	(3,899)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	231,936	258,237
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(6,682)	(8,279)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	376,459	425,142
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(9,739)	(12,178)
Residential Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	896,206	1,112,947
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(10,974)	(16,900)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	896,206	1,112,947
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(10,974)	(16,900)
Commercial Mortgage Backed Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	68,546	24,563
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(335)	(537)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	68,546	24,563
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(335)	(537)
Auction Rate Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	0	0
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	97,923	97,256
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(9,487)	(9,959)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	97,923	97,256
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	(9,487)	(9,959)
Debt Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than Twelve Months, Fair Value	1,327,792	1,563,846
Available-for-sale Securities, Continuous Unrealized Loss Position, Less than 12 Months, Accumulated Loss	(21,500)	(37,122)
Available-for-sale Securities, Continuous Unrealized Loss Position, Twelve Months or Longer, Fair Value	362,007	390,122
Available-for-sale Securities, Continuous Unrealized Loss Position, 12 Months or Longer, Accumulated Loss	(18,586)	(22,713)
Available-for-sale Securities, Continuous Unrealized Loss Position, Fair Value	1,689,799	1,953,968
Available-for-sale Securities, Continuous Unrealized Loss Position, Accumulated Loss	$ (40,086)	$ (59,835)

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Investment Securities Summary of Amortized Cost and Fair Values of Corporate Debt Securities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	$ 2,493,408
Corporate debt securities	2,467,244
Corporate Debt Securities Issued by Financial Institutions [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	84,899	$ 108,014
Corporate debt securities	85,004	105,407
Single-issuer Trust Preferred Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	43,795	43,746
Corporate debt securities	42,478	39,829
Subordinated Debt
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	29,069	46,231
Corporate debt securities	29,697	46,723
Senior Debt Obligations [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	12,035	18,037
Corporate debt securities	12,407	18,433
Pooled Trust Preferred Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	0	0
Corporate debt securities	422	422
Other Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	3,988	4,002
Corporate debt securities	3,988	4,002
Corporate Debt Securities [Member]
Schedule of Available-for-sale Securities [Line Items]
Amortized Cost	88,887	112,016
Corporate debt securities	$ 88,992	$ 109,409

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Investment Securities Narrative (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) Security	Dec. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)
Schedule of Investments [Line Items]
Securities pledged as collateral	$ 1,700,000	$ 1,800,000
Amortized cost	2,503,895	2,594,255
Available-for-sale Securities, Fair Value Disclosure	2,488,699	2,559,227
Single Bank Stock Investment, cost basis	4,300
Single Bank Stock Investment, Fair Value	$ 8,800
Percent Ownership In An Individual Financial Institution	42.90%
Individual Bank Stock Investment Percent to Total Portfolio	10.00%
Equity Securities [Member]
Schedule of Investments [Line Items]
Amortized cost	$ 10,487	12,231
Available-for-sale Securities, Fair Value Disclosure	21,455	24,526
Equity Securities Financial Institution [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Equity Securities	20,500	23,500
Amortized cost	9,700
Available-for-sale Securities, Fair Value Disclosure	20,500
Other Equity Securities [Member]
Schedule of Investments [Line Items]
Available-for-sale Securities, Equity Securities	1,000	$ 1,000
Single-issuer Trust Preferred Securities [Member]
Schedule of Investments [Line Items]
Unrealized Loss on Securities	$ 1,300
Number of Trust Preferred Securities | Security	19
External Credit Rating, BBB [Member] | Single-issuer Trust Preferred Securities [Member]
Schedule of Investments [Line Items]
Amortized cost	$ 3,800
Available-for-sale Securities, Fair Value Disclosure	2,800
External Credit Rating, Rated Below Investment Grade [Member] | Single-issuer Trust Preferred Securities [Member]
Schedule of Investments [Line Items]
Amortized cost	11,600
Available-for-sale Securities, Fair Value Disclosure	$ 10,900
Number of Trust Preferred Securities | Security	6
Pooled Trust Preferred Securities [Member]
Schedule of Investments [Line Items]
Other than Temporary Impairment, Credit Losses Recognized in Earnings, Credit Losses on Debt Securities Held	$ 10,000		$ 10,000

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Loans and Allowance for Credit Losses Summary Of Gross Loans (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	$ 15,368,586	$ 14,718,662
Deferred Revenue	21,969	19,390
Loans, net of unearned income	15,346,617	14,699,272	$ 14,155,159
Real-estate - commercial mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	6,262,008	6,018,582
Loans, net of unearned income	6,262,008	6,018,582	5,635,347
Commercial - industrial, financial and agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	4,245,849	4,087,486
Loans, net of unearned income	4,245,849	4,087,486	4,099,177
Real-estate - home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	1,579,739	1,625,115
Loans, net of unearned income	1,579,739	1,625,115	1,647,319
Real estate - residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	1,784,712	1,601,994
Loans, net of unearned income	1,784,712	1,601,994	1,447,292
Real-estate - construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	938,900	843,649
Loans, net of unearned income	938,900	843,649	853,699
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	283,156	291,470
Loans, net of unearned income	283,156	291,470	$ 278,071
Leasing and other
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	269,787	246,704
Overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans, gross of unearned income	$ 4,435	$ 3,662

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Loans and Allowance for Credit Losses Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Receivables [Abstract]
Allowance for loan losses	$ 172,342	$ 170,076	$ 168,679	$ 162,546	$ 163,841	$ 169,054
Reserve for unfunded lending commitments	2,656		2,646
Allowance for credit losses	$ 174,998	$ 172,647	$ 171,325	$ 165,108	$ 166,065	$ 171,412

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Loans and Allowance for Credit Losses Activity in the Allowance for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Allowance for Loan and Lease Losses [Roll Forward]
Balance at beginning of period	$ 172,647	$ 166,065	$ 171,325	$ 171,412
Loans charged off	(8,715)	(10,746)	(18,122)	(21,901)
Recoveries of loans previously charged off	4,366	7,278	10,295	11,556
Net loans charged off	(4,349)	(3,468)	(7,827)	(10,345)
Provision for credit losses	6,700	2,511	11,500	4,041
Balance at end of period	$ 174,998	$ 165,108	$ 174,998	$ 165,108

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Loans and Allowance for Credit Losses Allowance for Loan Losses by Portfolio Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	$ 170,076	$ 163,841	$ 168,679	$ 169,054
Loans charged off	(8,715)	(10,746)	(18,122)	(21,901)
Recoveries of loans previously charged off	4,366	7,278	10,295	11,556
Net loans charged off	(4,349)	(3,468)	(7,827)	(10,345)
Provision for loan losses	6,615	2,173	11,490	3,837
Ending Balance	172,342	162,546	172,342	162,546
Provision for loan losses gross	85	338	10	204
Provision for credit losses	6,700	2,511	11,500	4,041
Real-estate - commercial mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	47,373	48,311	46,842	47,866
Loans charged off	(242)	(1,474)	(1,466)	(2,056)
Recoveries of loans previously charged off	934	1,367	1,384	2,192
Net loans charged off	692	(107)	(82)	136
Provision for loan losses	9,307	(4,464)	10,612	(4,262)
Ending Balance	57,372	43,740	57,372	43,740
Commercial - industrial, financial and agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	55,309	54,333	54,353	57,098
Loans charged off	(5,353)	(4,625)	(10,880)	(10,813)
Recoveries of loans previously charged off	1,974	2,931	6,165	5,250
Net loans charged off	(3,379)	(1,694)	(4,715)	(5,563)
Provision for loan losses	15,712	(884)	18,004	220
Ending Balance	67,642	51,755	67,642	51,755
Real-estate - home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	23,821	22,524	26,801	22,405
Loans charged off	(592)	(1,045)	(1,290)	(2,586)
Recoveries of loans previously charged off	215	350	352	688
Net loans charged off	(377)	(695)	(938)	(1,898)
Provision for loan losses	(5,988)	4,341	(8,407)	5,663
Ending Balance	17,456	26,170	17,456	26,170
Real estate - residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	22,018	19,928	22,929	21,375
Loans charged off	(124)	(340)	(340)	(1,408)
Recoveries of loans previously charged off	151	420	381	556
Net loans charged off	27	80	41	(852)
Provision for loan losses	(5,606)	1,218	(6,531)	703
Ending Balance	16,439	21,226	16,439	21,226
Real-estate - construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	7,501	6,282	6,455	6,529
Loans charged off	(774)	(742)	(1,021)	(1,068)
Recoveries of loans previously charged off	373	1,563	921	1,946
Net loans charged off	(401)	821	(100)	878
Provision for loan losses	2,434	(1,331)	3,179	(1,635)
Ending Balance	9,534	5,772	9,534	5,772
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	3,031	2,324	3,574	2,585
Loans charged off	(430)	(569)	(1,286)	(1,576)
Recoveries of loans previously charged off	470	539	706	735
Net loans charged off	40	(30)	(580)	(841)
Provision for loan losses	(1,277)	690	(1,200)	1,240
Ending Balance	1,794	2,984	1,794	2,984
Leasing, other and overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	3,268	2,974	3,192	2,468
Loans charged off	(1,200)	(1,951)	(1,839)	(2,394)
Recoveries of loans previously charged off	249	108	386	189
Net loans charged off	(951)	(1,843)	(1,453)	(2,205)
Provision for loan losses	(212)	1,387	366	2,255
Ending Balance	2,105	2,518	2,105	2,518
Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Beginning Balance	7,755	7,165	4,533	8,728
Loans charged off	0	0	0	0
Recoveries of loans previously charged off	0	0	0	0
Net loans charged off	0	0	0	0
Provision for loan losses	(7,755)	1,216	(4,533)	(347)
Ending Balance	$ 0	$ 8,381	$ 0	$ 8,381

XML

Loans and Allowance for Credit Losses Present Loans, Net of Unearned Income and Their Related Allowance for Loan Losses, by Portfolio Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Mar. 31, 2017	Dec. 31, 2016	Jun. 30, 2016	Mar. 31, 2016	Dec. 31, 2015
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	$ 129,264			$ 117,813
Evaluated for impairment under FASB ASC Section 310-10-35	43,078			44,733
Allowance for loan losses	172,342	$ 170,076	$ 168,679	162,546	$ 163,841	$ 169,054
Measured for impairment under FASB ASC Subtopic 450-20	15,159,282			13,982,252
Evaluated for impairment under FASB ASC Section 310-10-35	187,335			172,907
Loans, net of unearned income	15,346,617		14,699,272	14,155,159
Real-estate - commercial mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	49,055			32,861
Evaluated for impairment under FASB ASC Section 310-10-35	8,317			10,879
Allowance for loan losses	57,372	47,373	46,842	43,740	48,311	47,866
Measured for impairment under FASB ASC Subtopic 450-20	6,212,998			5,582,027
Evaluated for impairment under FASB ASC Section 310-10-35	49,010			53,320
Loans, net of unearned income	6,262,008		6,018,582	5,635,347
Commercial - industrial, financial and agricultural
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	57,341			40,945
Evaluated for impairment under FASB ASC Section 310-10-35	10,301			10,810
Allowance for loan losses	67,642	55,309	54,353	51,755	54,333	57,098
Measured for impairment under FASB ASC Subtopic 450-20	4,189,676			4,057,883
Evaluated for impairment under FASB ASC Section 310-10-35	56,173			41,294
Loans, net of unearned income	4,245,849		4,087,486	4,099,177
Real-estate - home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	7,607			17,089
Evaluated for impairment under FASB ASC Section 310-10-35	9,849			9,081
Allowance for loan losses	17,456	23,821	26,801	26,170	22,524	22,405
Measured for impairment under FASB ASC Subtopic 450-20	1,557,989			1,629,443
Evaluated for impairment under FASB ASC Section 310-10-35	21,750			17,876
Loans, net of unearned income	1,579,739		1,625,115	1,647,319
Real estate - residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	6,013			9,044
Evaluated for impairment under FASB ASC Section 310-10-35	10,426			12,182
Allowance for loan losses	16,439	22,018	22,929	21,226	19,928	21,375
Measured for impairment under FASB ASC Subtopic 450-20	1,741,404			1,399,399
Evaluated for impairment under FASB ASC Section 310-10-35	43,308			47,893
Loans, net of unearned income	1,784,712		1,601,994	1,447,292
Real-estate - construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	5,370			4,004
Evaluated for impairment under FASB ASC Section 310-10-35	4,164			1,768
Allowance for loan losses	9,534	7,501	6,455	5,772	6,282	6,529
Measured for impairment under FASB ASC Subtopic 450-20	921,839			841,193
Evaluated for impairment under FASB ASC Section 310-10-35	17,061			12,506
Loans, net of unearned income	938,900		843,649	853,699
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	1,773			2,971
Evaluated for impairment under FASB ASC Section 310-10-35	21			13
Allowance for loan losses	1,794	3,031	3,574	2,984	2,324	2,585
Measured for impairment under FASB ASC Subtopic 450-20	283,123			278,053
Evaluated for impairment under FASB ASC Section 310-10-35	33			18
Loans, net of unearned income	283,156		291,470	278,071
Leasing, other and overdrafts
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	2,105			2,518
Evaluated for impairment under FASB ASC Section 310-10-35	0			0
Allowance for loan losses	2,105	3,268	3,192	2,518	2,974	2,468
Measured for impairment under FASB ASC Subtopic 450-20	252,253			194,254
Evaluated for impairment under FASB ASC Section 310-10-35	0			0
Loans, net of unearned income	252,253		230,976	194,254
Unallocated
Accounts, Notes, Loans and Financing Receivable [Line Items]
Measured for impairment under FASB ASC Subtopic 450-20	0			8,381
Allowance for loan losses	$ 0	$ 7,755	$ 4,533	$ 8,381	$ 7,165	$ 8,728

XML

Loans and Allowance for Credit Losses Total Impaired Loans by Class Segments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with no related allowance	$ 83,706	$ 69,013
Unpaid principal balance, with related allowance	141,467	150,797
Unpaid Principal Balance	225,173	219,810
Recorded investment, with no related allowance	71,695	60,457
Recorded investment, with related allowance	115,640	119,236
Recorded Investment	187,335	179,693
Related Allowance	43,078	47,117
Real-estate - commercial mortgage
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with no related allowance	25,219	28,757
Unpaid principal balance, with related allowance	34,131	37,132
Recorded investment, with no related allowance	22,396	25,447
Recorded investment, with related allowance	26,614	29,446
Related Allowance	8,317	10,162
Commercial - secured
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with no related allowance	43,206	29,296
Unpaid principal balance, with related allowance	23,576	27,767
Recorded investment, with no related allowance	36,036	25,526
Recorded investment, with related allowance	19,479	22,626
Related Allowance	9,947	13,198
Real estate - residential mortgage
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with no related allowance	4,629	4,689
Unpaid principal balance, with related allowance	45,300	48,885
Recorded investment, with no related allowance	4,629	4,689
Recorded investment, with related allowance	38,679	41,359
Related Allowance	10,426	11,897
Construction - commercial residential
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with no related allowance	10,054	6,271
Unpaid principal balance, with related allowance	10,479	10,103
Recorded investment, with no related allowance	8,044	4,795
Recorded investment, with related allowance	7,210	4,206
Related Allowance	3,725	1,300
Commercial - unsecured
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with related allowance	912	1,122
Recorded investment, with related allowance	658	823
Related Allowance	354	455
Real-estate - home equity
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with related allowance	25,753	23,971
Recorded investment, with related allowance	21,750	19,205
Related Allowance	9,849	9,511
Construction - commercial
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with no related allowance	598	0
Unpaid principal balance, with related allowance	186	681
Recorded investment, with no related allowance	590	0
Recorded investment, with related allowance	126	435
Related Allowance	45	145
Construction - other
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with related allowance	1,096	1,096
Recorded investment, with related allowance	1,091	1,096
Related Allowance	394	423
Consumer - direct
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with related allowance	18	21
Recorded investment, with related allowance	18	21
Related Allowance	12	14
Consumer - indirect
Impaired Financing Receivables [Line Items]
Unpaid principal balance, with related allowance	16	19
Recorded investment, with related allowance	15	19
Related Allowance	$ 9	$ 12

XML

Loans and Allowance for Credit Losses Average Impaired Loans by Class Segment (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	$ 64,753	$ 50,556	$ 63,321	$ 50,355
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	147	141	281	275
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	117,431	127,131	118,503	131,462
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	465	448	910	902
Impaired Financing Receivable, Average Recorded Investment	182,184	177,687	181,824	181,817
Impaired Financing Receivable, Interest Income, Accrual Method	612	589	1,191	1,177
Real-estate - commercial mortgage
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	22,316	22,762	23,360	22,707
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	71	72	141	141
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	27,710	33,042	28,288	33,927
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	88	104	173	212
Commercial - secured
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	30,829	15,182	29,061	14,688
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	46	20	82	36
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	20,675	25,919	21,325	28,489
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	31	33	63	71
Commercial - unsecured
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	712	929	749	893
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	1	0	2
Real-estate - home equity
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	20,352	17,950	19,969	17,222
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	117	70	212	127
Real estate - residential mortgage
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	4,643	6,191	4,658	5,724
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	26	33	52	63
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	39,500	41,928	40,119	43,164
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	225	226	455	461
Construction - commercial residential
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	6,368	6,421	5,844	7,236
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	4	16	6	35
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	7,248	5,566	6,234	5,807
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	4	14	7	29
Construction - commercial
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with No Related Allowance, Average Recorded Investment	597	0	398	0
Impaired Financing Receivable, with No Related Allowance, Interest Income, Accrual Method	0	0	0	0
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	104	548	214	578
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0	0	0
Construction - other
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	1,094	513	1,094	406
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0	0	0
Consumer - direct
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	19	10	19	16
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0	0	0
Consumer - indirect
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	17	15	17	11
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	0	0	0	0
Leasing, other and overdrafts
Financing Receivable, Impaired [Line Items]
Impaired Financing Receivable, with Related Allowance, Average Recorded Investment	0	711	475	949
Impaired Financing Receivable, with Related Allowance, Interest Income, Accrual Method	$ 0	$ 0	$ 0	$ 0

XML

Loans and Allowance for Credit Losses Credit Quality Indicators (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	$ 15,368,586	$ 14,718,662
Real-estate - commercial mortgage
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	6,262,008	6,018,582
Real-estate - commercial mortgage | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	6,004,958	5,763,122
Real-estate - commercial mortgage | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	119,534	132,484
Real-estate - commercial mortgage | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	137,516	122,976
Commercial - secured
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	4,102,585	3,933,552
Commercial - secured | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	3,813,864	3,686,152
Commercial - secured | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	119,119	128,873
Commercial - secured | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	169,602	118,527
Commercial - unsecured
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	143,264	153,934
Commercial - unsecured | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	134,455	145,922
Commercial - unsecured | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	6,264	4,481
Commercial - unsecured | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	2,545	3,531
Commercial - industrial, financial and agricultural
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	4,245,849	4,087,486
Commercial - industrial, financial and agricultural | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	3,948,319	3,832,074
Commercial - industrial, financial and agricultural | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	125,383	133,354
Commercial - industrial, financial and agricultural | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	172,147	122,058
Construction - commercial residential
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	157,291	142,189
Construction - commercial residential | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	131,115	113,570
Construction - commercial residential | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	9,789	15,447
Construction - commercial residential | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	16,387	13,172
Construction - commercial
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	728,649	644,490
Construction - commercial | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	718,702	635,963
Construction - commercial | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	4,727	3,412
Construction - commercial | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	5,220	5,115
Construction - Commercial and Commercial Residential
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	885,940	786,679
Construction - Commercial and Commercial Residential | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	849,817	749,533
Construction - Commercial and Commercial Residential | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	14,516	18,859
Construction - Commercial and Commercial Residential | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	21,607	18,287
Commercial Loans, Commerical Mortgages, Constructions Loans
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	$ 11,393,797	$ 10,892,747
Percentage of total loans rated	100.00%	100.00%
Commercial Loans, Commerical Mortgages, Constructions Loans | Pass
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	$ 10,803,094	$ 10,344,729
Percentage of total loans rated	94.80%	95.00%
Commercial Loans, Commerical Mortgages, Constructions Loans | Special Mention
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	$ 259,433	$ 284,697
Percentage of total loans rated	2.30%	2.60%
Commercial Loans, Commerical Mortgages, Constructions Loans | December 31, 2016
Internal risk ratings for loans by segment [Line Items]
Loans and Leases Receivable, Gross	$ 331,270	$ 263,321
Percentage of total loans rated	2.90%	2.40%

XML

Loans and Allowance for Credit Losses Summary of Delinquency and Non-Performing Status by Portfolio Segment (Details) $ in Thousands	6 Months Ended
	Jun. 30, 2017 USD ($) day	Dec. 31, 2016 USD ($)	Jun. 30, 2016 USD ($)
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	$ 15,346,617	$ 14,699,272	$ 14,155,159
Delinquent | Minimum
Financing Receivable, Impaired [Line Items]
Days past due | day	30
Delinquent | Maximum
Financing Receivable, Impaired [Line Items]
Days past due | day	89
Non-performing
Financing Receivable, Impaired [Line Items]
Days past due | day	90
Real-estate - home equity
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	$ 1,579,739	1,625,115	1,647,319
Real-estate - home equity | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,557,629	1,602,687
Real-estate - home equity | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	10,223	9,274
Real-estate - home equity | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	11,887	13,154
Real estate - residential mortgage
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,784,712	1,601,994	1,447,292
Real estate - residential mortgage | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,746,977	1,557,995
Real estate - residential mortgage | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	15,889	20,344
Real estate - residential mortgage | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	21,846	23,655
Construction - other
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	52,960	56,970
Construction - other | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	51,869	55,874
Construction - other | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	0	0
Construction - other | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,091	1,096
Consumer - direct
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	58,729	96,887
Consumer - direct | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	55,825	93,572
Consumer - direct | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,761	1,752
Consumer - direct | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,143	1,563
Consumer - indirect
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	224,427	194,583
Consumer - indirect | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	222,380	190,656
Consumer - indirect | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,921	3,599
Consumer - indirect | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	126	328
Consumer
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	283,156	291,470	278,071
Consumer | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	278,205	284,228
Consumer | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	3,682	5,351
Consumer | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	1,269	1,891
Leasing, other and overdrafts
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	252,253	230,976	$ 194,254
Leasing, other and overdrafts | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	251,050	229,591
Leasing, other and overdrafts | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	922	1,068
Leasing, other and overdrafts | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	281	317
Commercial Loans, Commerical Mortgages, Constructions Loans
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	$ 3,952,820	$ 3,806,525
% of Total	100.00%	100.00%
Commercial Loans, Commerical Mortgages, Constructions Loans | Performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	$ 3,885,730	$ 3,730,375
% of Total	98.30%	98.00%
Commercial Loans, Commerical Mortgages, Constructions Loans | Delinquent
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	$ 30,716	$ 36,037
% of Total	0.80%	0.90%
Commercial Loans, Commerical Mortgages, Constructions Loans | Non-performing
Financing Receivable, Impaired [Line Items]
Loans, net of unearned income	$ 36,374	$ 40,113
% of Total	0.90%	1.10%

XML

Loans and Allowance for Credit Losses Non-Performing Assets (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Receivables [Abstract]
Non-accrual loans	$ 122,600	$ 120,133
Loans 90 days or more past due and still accruing	13,143	11,505
Total non-performing loans	135,743	131,638
Other real estate owned (OREO)	11,432	12,815
Total non-performing assets	$ 147,175	$ 144,453

XML

Loans and Allowance for Credit Losses Past Due Loan Status and Non-Accrual Loans by Portfolio Segment (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016	Jun. 30, 2016
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 185,275	$ 186,787
≥ 90 Days Past Due and Accruing	13,143	11,505
Non- accrual	122,600	120,133
Current	15,161,342	14,512,485
Loans, net of unearned income	15,346,617	14,699,272	$ 14,155,159
Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	39,814	41,938
Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	9,718	13,211
Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	135,743	131,638
Real-estate - commercial mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	41,511	47,195
≥ 90 Days Past Due and Accruing	309	383
Non- accrual	32,267	38,936
Current	6,220,497	5,971,387
Loans, net of unearned income	6,262,008	6,018,582	5,635,347
Real-estate - commercial mortgage | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,259	6,254
Real-estate - commercial mortgage | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	676	1,622
Real-estate - commercial mortgage | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	32,576	39,319
Commercial - secured
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	59,460	51,824
≥ 90 Days Past Due and Accruing	3,135	959
Non- accrual	47,489	41,589
Current	4,043,125	3,881,728
Loans, net of unearned income	4,102,585	3,933,552
Commercial - secured | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,411	6,660
Commercial - secured | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,425	2,616
Commercial - secured | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	50,624	42,548
Commercial - unsecured
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,183	1,845
≥ 90 Days Past Due and Accruing	98	152
Non- accrual	598	760
Current	142,081	152,089
Loans, net of unearned income	143,264	153,934
Commercial - unsecured | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	430	898
Commercial - unsecured | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	57	35
Commercial - unsecured | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	696	912
Commercial - industrial, financial and agricultural
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	60,643	53,669
≥ 90 Days Past Due and Accruing	3,233	1,111
Non- accrual	48,087	42,349
Current	4,185,206	4,033,817
Loans, net of unearned income	4,245,849	4,087,486	4,099,177
Commercial - industrial, financial and agricultural | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	6,841	7,558
Commercial - industrial, financial and agricultural | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,482	2,651
Commercial - industrial, financial and agricultural | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	51,320	43,460
Real-estate - home equity
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	22,110	22,428
≥ 90 Days Past Due and Accruing	2,167	2,543
Non- accrual	9,720	10,611
Current	1,557,629	1,602,687
Loans, net of unearned income	1,579,739	1,625,115	1,647,319
Real-estate - home equity | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	8,103	6,596
Real-estate - home equity | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,120	2,678
Real-estate - home equity | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	11,887	13,154
Real estate - residential mortgage
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	37,735	43,999
≥ 90 Days Past Due and Accruing	4,906	5,224
Non- accrual	16,940	18,431
Current	1,746,977	1,557,995
Loans, net of unearned income	1,784,712	1,601,994	1,447,292
Real estate - residential mortgage | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	12,640	15,600
Real estate - residential mortgage | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	3,249	4,744
Real estate - residential mortgage | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	21,846	23,655
Construction - commercial residential
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	15,315	8,595
≥ 90 Days Past Due and Accruing	978	36
Non- accrual	13,779	8,275
Current	141,976	133,594
Loans, net of unearned income	157,291	142,189
Construction - commercial residential | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	538	233
Construction - commercial residential | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	20	51
Construction - commercial residential | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	14,757	8,311
Construction - commercial
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	716	1,178
≥ 90 Days Past Due and Accruing	0	0
Non- accrual	716	435
Current	727,933	643,312
Loans, net of unearned income	728,649	644,490
Construction - commercial | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	743
Construction - commercial | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction - commercial | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	716	435
Construction - other
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,091	1,096
≥ 90 Days Past Due and Accruing	0	0
Non- accrual	1,091	1,096
Current	51,869	55,874
Loans, net of unearned income	52,960	56,970
Construction - other | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction - other | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	0	0
Construction - other | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,091	1,096
Real-estate - construction
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	17,122	10,869
≥ 90 Days Past Due and Accruing	978	36
Non- accrual	15,586	9,806
Current	921,778	832,780
Loans, net of unearned income	938,900	843,649	853,699
Real-estate - construction | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	538	976
Real-estate - construction | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	20	51
Real-estate - construction | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	16,564	9,842
Consumer - direct
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,904	3,315
≥ 90 Days Past Due and Accruing	1,143	1,563
Non- accrual	0	0
Current	55,825	93,572
Loans, net of unearned income	58,729	96,887
Consumer - direct | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,054	1,211
Consumer - direct | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	707	541
Consumer - direct | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,143	1,563
Consumer - indirect
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,047	3,927
≥ 90 Days Past Due and Accruing	126	328
Non- accrual	0	0
Current	222,380	190,656
Loans, net of unearned income	224,427	194,583
Consumer - indirect | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,708	3,200
Consumer - indirect | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	213	399
Consumer - indirect | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	126	328
Consumer
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	4,951	7,242
≥ 90 Days Past Due and Accruing	1,269	1,891
Non- accrual	0	0
Current	278,205	284,228
Loans, net of unearned income	283,156	291,470	278,071
Consumer | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	2,762	4,411
Consumer | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	920	940
Consumer | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,269	1,891
Leasing, other and overdrafts
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	1,203	1,385
≥ 90 Days Past Due and Accruing	281	317
Non- accrual	0	0
Current	251,050	229,591
Loans, net of unearned income	252,253	230,976	$ 194,254
Leasing, other and overdrafts | Financing Receivables, 30 to 59 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	671	543
Leasing, other and overdrafts | Financing Receivables, 60 to 89 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	251	525
Leasing, other and overdrafts | Financing Receivables, Equal to Greater than 90 Days Past Due [Member]
Financing Receivable, Recorded Investment, Past Due [Line Items]
Total Past Due	$ 281	$ 317

XML

Loans and Allowance for Credit Losses Loans Modified Under Troubled Debt Restructurings (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	$ 61,765	$ 59,560
Non-accrual TDRs (1)	29,373	27,850
Total TDRs	91,138	87,410
Residential Mortgage [Member]
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	26,368	27,617
Commercial Real Estate [Member]
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	13,772	15,957
Real-estate - home equity
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	12,031	8,594
Commercial - secured
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	8,086	6,627
Construction - commercial residential
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	1,475	726
Consumer - direct
Financing Receivable, Modifications [Line Items]
Total Accruing Troubled Debt Restructurings	$ 33	$ 39

XML

Loans and Allowance for Credit Losses Troubled Debt Restructuring Modification (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($) loans	Jun. 30, 2016 USD ($) loans	Jun. 30, 2017 USD ($) loans	Jun. 30, 2016 USD ($) loans
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	39	30	70	73
Post-Modification Recorded Investment | $	$ 7,464	$ 2,803	$ 13,160	$ 6,480
Extend maturity without rate concession | Commercial - secured
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	4	4	8	6
Post-Modification Recorded Investment | $	$ 2,567	$ 1,146	$ 5,693	$ 1,976
Extend maturity without rate concession | Commercial - unsecured
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	1	0	1	2
Post-Modification Recorded Investment | $	$ 33	$ 0	$ 33	$ 103
Extend maturity without rate concession | Real-estate - commercial mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	3	0	4	0
Post-Modification Recorded Investment | $	$ 663	$ 0	$ 981	$ 0
Extend maturity without rate concession | Real-estate - home equity
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	17	18	33	39
Post-Modification Recorded Investment | $	$ 1,275	$ 738	$ 2,559	$ 1,995
Extend maturity without rate concession | Real estate - residential mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	0	2	2	2
Post-Modification Recorded Investment | $	$ 0	$ 315	$ 337	$ 315
Extend maturity without rate concession | Construction - commercial residential
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	1	0	1	0
Post-Modification Recorded Investment | $	$ 1,204	$ 0	$ 1,204	$ 0
Bankruptcy | Commercial - secured
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	1	0	1	0
Post-Modification Recorded Investment | $	$ 490	$ 0	$ 490	$ 0
Bankruptcy | Real-estate - commercial mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	1	0	1	0
Post-Modification Recorded Investment | $	$ 12	$ 0	$ 12	$ 0
Bankruptcy | Real-estate - home equity
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	10	5	17	22
Post-Modification Recorded Investment | $	$ 1,063	$ 231	$ 1,516	$ 1,716
Bankruptcy | Real estate - residential mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	1	1	2	1
Post-Modification Recorded Investment | $	$ 157	$ 373	$ 335	$ 373
Bankruptcy | Consumer - indirect
Financing Receivable, Modifications [Line Items]
Number of Loans | loans	0	0	0	1
Post-Modification Recorded Investment | $	$ 0	$ 0	$ 0	$ 2

XML

Loans and Allowance for Credit Losses TDRs by Class Segment (Details) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017 USD ($) loans	Jun. 30, 2016 USD ($) loans	Jun. 30, 2017 USD ($) loans	Jun. 30, 2016 USD ($) loans	Dec. 31, 2016 USD ($)
Financing Receivable, Modifications [Line Items]
Post-Modification Recorded Investment	$ 7,464	$ 2,803	$ 13,160	$ 6,480
Number of Loans | loans	39	30	70	73
Loans and Leases Receivable, Impaired, Commitment to Lend	$ 2,600		$ 2,600		$ 3,600
Number of Loans | loans			32	34
Recorded Investment			$ 6,295	$ 3,675
Commercial - secured
Financing Receivable, Modifications [Line Items]
Number of Loans | loans			5	5
Recorded Investment			$ 2,772	$ 1,123
Real-estate - commercial mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans			3	2
Recorded Investment			$ 674	$ 132
Real-estate - home equity
Financing Receivable, Modifications [Line Items]
Number of Loans | loans			16	22
Recorded Investment			$ 922	$ 1,448
Real estate - residential mortgage
Financing Receivable, Modifications [Line Items]
Number of Loans | loans			7	5
Recorded Investment			$ 1,911	$ 972
Consumer - direct
Financing Receivable, Modifications [Line Items]
Number of Loans | loans			1	0
Recorded Investment			$ 16	$ 0

XML

Loans and Allowance for Credit Losses Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Accounts, Notes, Loans and Financing Receivable [Line Items]
Provision for credit losses	$ 6,700	$ 2,511	$ 11,500	$ 4,041
Impaired loans with principal balances approximately in percentage			87.00%	89.00%
Loan to value ratio in the Corporation's policy	70.00%		70.00%
Recorded investment, with no related allowance	$ 71,695		$ 71,695		$ 60,457
Loans and Leases Receivable, Impaired, Commitment to Lend	2,600		2,600		$ 3,600
Minimum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum balance of loans evaluated individually for impairment			1,000
Impaired loans balances, real estate as collateral	$ 1,000		1,000
Maximum
Accounts, Notes, Loans and Financing Receivable [Line Items]
Minimum balance of loans evaluated individually for impairment			$ 1,000

XML

Mortgage Servicing Rights Summary of Changes in Mortgage Servicing Rights (Details) - Residential Mortgage [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Amortized Cost:
Balance at beginning of period	$ 38,543	$ 40,195	$ 38,822	$ 40,944
Originations of mortgage servicing rights	1,203	1,508	2,386	2,428
Amortization	(1,566)	(1,829)	(3,028)	(3,498)
Balance at end of period	38,180	39,874	38,180	39,874
Valuation allowance:
Balance at beginning of period	(1,291)	0	(1,291)	0
(Additions) reductions to valuation allowance	(1,291)	1,721	(1,291)	1,721
Balance at end of period	0	(1,721)	0	(1,721)
Net MSRs at end of period	$ 38,180	$ 38,153	$ 38,180	$ 38,153

XML

Mortgage Servicing Rights - Narrative (Details) - Residential Mortgage [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Servicing Asset at Amortized Cost [Line Items]
Servicing Asset at Amortized Cost, Increase (Decrease) for Valuation Allowance Adjustment			$ (1,300)
(Additions) reductions to valuation allowance	$ (1,291)	$ 1,721	$ (1,291)	$ 1,721

XML

Stock-Based Compensation Compensation Expense and Related Tax Benefits (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Disclosure of Compensation Related Costs, Share-based Payments [Abstract]
Stock-based compensation expense	$ 1,035	$ 1,820	$ 1,769	$ 3,256
Tax benefit	(1,940)	(642)	(2,684)	(1,075)
Stock-based compensation expense, net of tax benefit	$ (905)	$ 1,178	$ (915)	$ 2,181

XML

Stock-Based Compensation Narrative (Details) - USD ($) $ in Thousands			3 Months Ended		6 Months Ended
	Jun. 01, 2017	May 01, 2017	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Statement [Line Items]
Stock options terms (in years)					10 years
Stock-based compensation expense			$ 1,035	$ 1,820	$ 1,769	$ 3,256
Stock-based compensation expense, net of tax benefit			$ (905)	$ 1,178	$ (915)	$ 2,181
Directors' Plan [Member]
Statement [Line Items]
Shares reserved for future grants under the stock option and compensation plan			360,000		360,000
Employee Equity Plan [Member]
Statement [Line Items]
Awards vesting period (in years)					3 years
Shares reserved for future grants under the stock option and compensation plan			10,741,443		10,741,443
PSUs [Member] | Employee Equity Plan [Member]
Statement [Line Items]
Shares granted (in shares)		284,000
RSUs [Member] | Employee Equity Plan [Member]
Statement [Line Items]
Shares granted (in shares)		140,000
Director [Member] | Common Stock [Member] | Employee Equity Plan [Member]
Statement [Line Items]
Shares granted (in shares)	11,000
Stock-based compensation expense, net of tax benefit	$ 193

XML

Employee Benefit Plans Summary of Pension Plan and Postretirement Plan Net Periodic Benefit Cost (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Pension Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Service cost	$ 0	$ 194	$ 0	$ 344
Interest cost	830	879	1,660	1,760
Expected return on plan assets	(451)	(433)	(902)	(1,159)
Net amortization and deferral	663	428	1,326	1,210
Net periodic benefit	1,042	1,068	2,084	2,155
Other Postretirement Benefit Plan [Member]
Defined Benefit Plan Disclosure [Line Items]
Interest cost	17	5	34	43
Expected return on plan assets	0	(1)	0	(1)
Net accretion and deferral	(141)	(210)	(282)	(275)
Net periodic benefit	$ (124)	$ (206)	$ (248)	$ (233)

XML

Derivative Financial Instruments Narrative (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Derivative [Line Items]
Assets	$ 19,647,435		$ 19,647,435		$ 18,944,247
Foreign currency open position	500		500
Mortgage Loans Held For Sale [Member]
Derivative [Line Items]
Gain (loss) in fair values of mortgage loans held for sale	$ 26	$ 634	$ 565	$ 864
Fulton Bank Subsidiary [Member]
Derivative [Line Items]
Assets					$ 10,000,000

XML

Derivative Financial Instruments Notional Amounts and Fair Values of Derivative Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Derivative [Line Items]
Derivative asset, fair value	$ 48,676	$ 41,636
Derivative liability, fair value	(43,388)	(41,842)
Derivative asset (liability), net	6,469	2,824
Interest Rate Lock Commitments [Member]
Derivative [Line Items]
Derivative asset, notional amount	141,136	87,119
Derivative liability, notional amount	3,573	18,239
Derivative asset, fair value	1,354	863
Derivative liability, fair value	(28)	(227)
Derivative asset (liability), net	1,326	636
Forward Commitments [Member]
Derivative [Line Items]
Derivative asset, notional amount	25,343	70,031
Derivative liability, notional amount	91,629	19,964
Derivative asset, fair value	94	2,223
Derivative liability, fair value	(205)	(112)
Derivative asset (liability), net	(111)	2,111
Interest Rate Swap with Customer [Member]
Derivative [Line Items]
Derivative asset, notional amount	1,242,309	876,744
Derivative liability, notional amount	581,370	583,060
Derivative asset, fair value	34,331	24,397
Derivative liability, fair value	(13,938)	(16,998)
Derivative asset (liability), net	20,393	7,399
Interest Rate Swap With Counterparty [Member]
Derivative [Line Items]
Derivative asset, notional amount	581,370	583,060
Derivative liability, notional amount	1,242,309	876,744
Derivative asset, fair value	13,938	16,998
Derivative liability, fair value	(29,167)	(24,397)
Derivative asset (liability), net	(15,229)	(7,399)
Centrally Cleared Interest Rate Swap with Counterparty [Member]
Derivative [Line Items]
Derivative liability, notional amount	240,700
Derivative liability, fair value	0
Foreign Exchange Contracts With Customer [Member]
Derivative [Line Items]
Derivative asset, notional amount	4,460	11,674
Derivative liability, notional amount	7,295	4,659
Derivative asset, fair value	309	504
Derivative liability, fair value	(343)	(221)
Derivative asset (liability), net	(34)	283
Foreign Exchange Contracts With Correspondent Banks [Member]
Derivative [Line Items]
Derivative asset, notional amount	9,268	7,040
Derivative liability, notional amount	6,873	12,869
Derivative asset, fair value	407	241
Derivative liability, fair value	(283)	(447)
Derivative asset (liability), net	$ 124	$ (206)

XML

Derivative Financial Instruments Fair Value Gains and Losses on Derivative Financial Instruments (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	$ 3,022	$ (381)	$ 3,645	$ (160)
Interest rate lock with customers [Member]
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	(155)	512	690	1,744
Forward Commitments [Member]
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	157	(906)	(2,222)	(2,012)
Interest Rate Swap with Customer [Member]
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	13,809	20,569	12,994	50,000
Interest Rate Swap with Counterparty [Member]
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	(10,831)	(20,569)	(7,830)	(50,000)
Foreign Exchange Contracts With Customer [Member]
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	(325)	81	(317)	455
Foreign Exchange Contracts With Correspondent Banks [Member]
Derivative [Line Items]
Net fair value gains (losses) on derivative financial instruments	$ 367	$ (68)	$ 330	$ (347)

XML

Derivative Financial Instruments Summary of Mortgage Loans Held For Sale (Details) - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans Held-for-sale, Mortgages	$ 62,354		$ 62,354		$ 28,697
Mortgage Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Fair Value, Option, Changes in Fair Value, Gain (Loss)	26	$ 634	565	$ 864
Cost | Mortgage Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans Held-for-sale, Mortgages	32,810		32,810		28,708
Fair value | Mortgage Loans Held For Sale [Member]
Fair Value, Option, Quantitative Disclosures [Line Items]
Loans Held-for-sale, Mortgages	$ 33,364		$ 33,364		$ 28,697

XML

Derivative Financial Instruments Offsetting Derivative Assets and Liabilities (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Offsetting Assets [Line Items]
Derivative asset, fair value	$ 48,676	$ 41,636
Derivative, Collateral, Obligation to Return Securities	14,655	15,358
Derivative, Collateral, Obligation to Return Cash	0	0
Net Amount	34,021	26,278
Derivative liability, gross liability	43,388	41,842
Derivative liability, Collateral, Right to Reclaim Securities	(14,655)	(15,358)
Derivative liability, Collateral, Right to Reclaim Cash	(18,320)	(4,216)
Derivative liability, Net Amount	10,413	22,268
Interest Rate Swap [Member]
Offsetting Assets [Line Items]
Derivative asset, fair value	48,269	41,395
Derivative, Collateral, Obligation to Return Securities	14,372	15,117
Derivative, Collateral, Obligation to Return Cash	0	0
Net Amount	33,897	26,278
Derivative liability, gross liability	43,105	41,395
Derivative liability, Collateral, Right to Reclaim Securities	(14,372)	(15,117)
Derivative liability, Collateral, Right to Reclaim Cash	(18,320)	(4,010)
Derivative liability, Net Amount	10,413	22,268
Foreign Exchange Contract [Member]
Offsetting Assets [Line Items]
Derivative asset, fair value	407	241
Derivative, Collateral, Obligation to Return Securities	283	241
Derivative, Collateral, Obligation to Return Cash	0	0
Net Amount	124	0
Derivative liability, gross liability	283	447
Derivative liability, Collateral, Right to Reclaim Securities	(283)	(241)
Derivative liability, Collateral, Right to Reclaim Cash	0	(206)
Derivative liability, Net Amount	$ 0	$ 0

XML

Commitments and Contingencies Outstanding Commitments to Extend Credit and Letters of Credit (Details) - Reserve for Off-balance Sheet Activities [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Commitments to Extend Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Valuation allowances and reserves, balance	$ 6,382,314	$ 6,075,567
Standby Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Valuation allowances and reserves, balance	349,953	356,359
Commercial Letters of Credit [Member]
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items]
Valuation allowances and reserves, balance	$ 41,501	$ 38,901

XML

Commitments and Contingencies - Narrative (Details) $ in Thousands		6 Months Ended
	Mar. 31, 2016 USD ($) defendant plaintiff	Jun. 30, 2017 USD ($)	Dec. 31, 2016 USD ($)
Loss Contingencies [Line Items]
Residential mortgage principal balance repurchase request received		$ 543	$ 543
Residential mortgage principal balance FHLB credit enhancement		94,000
Residential mortgage repurchase reserves FHLB credit enhancement		1,600	1,700
Agostino, et al. v. Ameriprise Financial Services, Inc [Member]
Loss Contingencies [Line Items]
Number of unrelated defendants | defendant	2
Amount alleged in damages	$ 11,300
Agostino, et al. v. Ameriprise Financial Services, Inc [Member] | Pending Litigation [Member]
Loss Contingencies [Line Items]
Number of plaintiffs | plaintiff	67
Reserve for Off-balance Sheet Activities [Member] | Residential Mortgage [Member]
Loss Contingencies [Line Items]
Valuation allowances and reserves, balance		$ 2,400	$ 2,500

XML

Fair Value Measurements Assets and Liabilities Measured at Fair Value on a Recurring Basis (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	$ 2,467,244
Available-for-sale Securities, Fair Value Disclosure	2,488,699	$ 2,559,227
Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	33,364	28,697
Available-for-sale Securities, Fair Value Disclosure	2,488,699	2,559,227
Other Assets, Fair Value Disclosure	68,250	61,592
Assets, Fair Value Disclosure	2,590,313	2,649,516
Liabilities, Fair Value Disclosure	61,776	58,766
Pooled Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	422	422
Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	21,455	24,526
Equity Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	21,455	24,526
U.S. Government-Sponsored Agency Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	6,054	134
U.S. Government-Sponsored Agency Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	6,054	134
State and Municipal Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	401,636	391,641
State and Municipal Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	401,636	391,641
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	88,992	109,409
Available-for-sale Securities, Fair Value Disclosure	88,992	109,409
Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	88,992	109,409
Collateralized Mortgage Obligations [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	538,507	593,860
Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	538,507	593,860
Mortgage-Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	1,213,065	1,317,838
Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	1,213,065	1,317,838
Commercial Mortgage Backed Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	121,067	24,563
Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	121,067	24,563
Auction Rate Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	97,923	97,256
Auction Rate Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	97,923	97,256
Other Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Equity Securities	1,000	1,000
Fair Value, Inputs, Level 1 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	0	0
Available-for-sale Securities, Fair Value Disclosure	21,455	24,526
Other Assets, Fair Value Disclosure	18,533	17,111
Assets, Fair Value Disclosure	39,988	41,637
Liabilities, Fair Value Disclosure	18,438	17,032
Fair Value, Inputs, Level 1 [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	21,455	24,526
Fair Value, Inputs, Level 1 [Member] | U.S. Government-Sponsored Agency Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | State and Municipal Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | Auction Rate Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 1 [Member] | Other Equity Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Equity Securities	1,000	1,000
Fair Value, Inputs, Level 2 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	33,364	28,697
Available-for-sale Securities, Fair Value Disclosure	2,366,124	2,434,573
Other Assets, Fair Value Disclosure	49,717	44,481
Assets, Fair Value Disclosure	2,449,205	2,507,751
Liabilities, Fair Value Disclosure	43,338	41,734
Fair Value, Inputs, Level 2 [Member] | Other Corporate Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	4,000	4,000
Fair Value, Inputs, Level 2 [Member] | Financial Institutions Subordinated Debt [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	42,100	65,200
Fair Value, Inputs, Level 2 [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2 [Member] | U.S. Government-Sponsored Agency Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	6,054	134
Fair Value, Inputs, Level 2 [Member] | State and Municipal Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	401,636	391,641
Fair Value, Inputs, Level 2 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	85,795	106,537
Fair Value, Inputs, Level 2 [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	538,507	593,860
Fair Value, Inputs, Level 2 [Member] | Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	1,213,065	1,317,838
Fair Value, Inputs, Level 2 [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	121,067	24,563
Fair Value, Inputs, Level 2 [Member] | Auction Rate Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Mortgages Held-for-sale, Fair Value Disclosure	0	0
Available-for-sale Securities, Fair Value Disclosure	101,120	100,128
Other Assets, Fair Value Disclosure	0	0
Assets, Fair Value Disclosure	101,120	100,128
Liabilities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Pooled Trust Preferred Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Estimated Fair Value	422	422
Fair Value, Inputs, Level 3 [Member] | Equity Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | U.S. Government-Sponsored Agency Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | State and Municipal Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Corporate Debt Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	3,197	2,872
Fair Value, Inputs, Level 3 [Member] | Collateralized Mortgage Obligations [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Mortgage-Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Commercial Mortgage Backed Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member] | Auction Rate Securities [Member] | Fair Value, Measurements, Recurring [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale Securities, Fair Value Disclosure	$ 97,923	$ 97,256

XML

Fair Value Measurements Changes in Assets and Liabilities Measured at Fair Value on a Recurring Basis Using Level 3 Inputs (Details) - Fair Value, Measurements, Recurring [Member] - Fair Value, Inputs, Level 3 [Member] - USD ($) $ in Thousands	3 Months Ended		6 Months Ended
	Jun. 30, 2017	Jun. 30, 2016	Jun. 30, 2017	Jun. 30, 2016
Pooled Trust Preferred Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	$ 422	$ 706	$ 422	$ 706
Unrealized adjustment to fair value	0	0	0	0
(Premium amortization) discount accretion	0	0	0	0
Balance, end of period	422	706	422	706
Single-issuer Trust Preferred Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	2,750	2,400	2,450	2,630
Unrealized adjustment to fair value	22	22	319	(211)
(Premium amortization) discount accretion	3	3	6	6
Balance, end of period	2,775	2,425	2,775	2,425
Auction Rate Securities [Member]
Fair Value, Assets Measured on Recurring Basis, Unobservable Input Reconciliation, Calculation [Roll Forward]
Balance, beginning of period	97,439	97,326	97,256	98,059
Unrealized adjustment to fair value	386	482	472	(350)
(Premium amortization) discount accretion	98	78	195	177
Balance, end of period	$ 97,923	$ 97,886	$ 97,923	$ 97,886

XML

Fair Value Measurements Assets Measured at Fair Value on a Nonrecurring Basis (Details) - Fair Value, Measurements, Nonrecurring [Member] - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net loans	$ 144,256	$ 132,576
Other financial assets	49,613	50,347
Assets, Fair Value Disclosure	193,869	182,923
Fair Value, Inputs, Level 1 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net loans	0	0
Other financial assets	0	0
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 2 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net loans	0	0
Other financial assets	0	0
Assets, Fair Value Disclosure	0	0
Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Net loans	144,256	132,576
Other financial assets	49,613	50,347
Assets, Fair Value Disclosure	$ 193,869	$ 182,923

XML

Fair Value Measurements Details of Book Value and Fair Value of Financial Instruments (Details) - USD ($) $ in Thousands	Jun. 30, 2017	Dec. 31, 2016
Fair Value, Balance Sheet Grouping, FinancialStatement Captions[Line Items]
Available for sale investment securities	$ 2,488,699	$ 2,559,227
Reported Value Measurement [Member]
Fair Value, Balance Sheet Grouping, FinancialStatement Captions[Line Items]
Cash and due from banks	94,938	118,763
Interest-bearing deposits with other banks	322,514	233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328	57,489
Loans held for sale	62,354	28,697
Available for sale investment securities	2,488,699	2,559,227
Net Loans	15,174,275	14,530,593
Accrued interest receivable	47,603	46,294
Other financial assets	212,773	206,132
Demand and savings deposits	12,610,951	12,259,622
Time deposits	2,746,410	2,753,242
Short-term borrowings	694,859	541,317
Accrued interest payable	7,804	9,632
Other financial liabilities	252,537	216,080
Federal Home Loan Bank advances and other long-term debt	1,037,961	929,403
Estimate of Fair Value Measurement [Member]
Fair Value, Balance Sheet Grouping, FinancialStatement Captions[Line Items]
Cash and due from banks	94,938	118,763
Interest-bearing deposits with other banks	322,514	233,763
Federal Reserve Bank and Federal Home Loan Bank stock	70,328	57,489
Loans held for sale	62,354	28,697
Available for sale investment securities	2,488,699	2,559,227
Net Loans	15,007,961	14,387,454
Accrued interest receivable	47,603	46,294
Other financial assets	212,773	206,132
Demand and savings deposits	12,610,951	12,259,622
Time deposits	2,758,807	2,769,757
Short-term borrowings	694,859	541,317
Accrued interest payable	7,804	9,632
Other financial liabilities	252,537	216,080
Federal Home Loan Bank advances and other long-term debt	$ 1,035,711	$ 928,167

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Fair Value Measurements Narrative (Details) - USD ($) $ in Thousands	3 Months Ended	6 Months Ended
	Jun. 30, 2017	Jun. 30, 2017	Jun. 30, 2016	Dec. 31, 2016
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Securities valued by the pricing service	80.00%	80.00%
Researched securities to reconcile the difference	5.00%	5.00%
Corporate debt securities	$ 2,467,244	$ 2,467,244
Significant input, assumed market return to liquidity (years)	5 years
Other real estate owned (OREO)	$ 11,432	11,432		$ 12,815
Transfer of student loans to loans held for sale		28,990	$ 0
Student Loan [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Transfer of student loans to loans held for sale		$ 28,900
Loss on sale of loans receivable	440
Minimum
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Weighted average annual constant prepayment rate		11.80%
Weighted average discount rate		9.50%
Equity Securities Financial Institution [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, equity securities	20,500	$ 20,500		23,500
Other Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, equity securities	1,000	1,000		1,000
Corporate Debt Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	88,992	88,992		109,409
Single-issuer Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	42,478	42,478		39,829
Pooled Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	422	422		422
Fair Value, Measurements, Recurring [Member] | Single-issuer Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	42,500	42,500		39,800
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Trust for Benefit of Employees [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial assets	17,800	17,800		16,400
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial assets	716	716		745
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Trust for Benefit of Employees [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial liabilities	17,800	17,800		16,400
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Foreign Exchange Contract [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial liabilities	626	626		668
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Equity Securities Financial Institution [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, equity securities	20,500	20,500		23,500
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 1 [Member] | Other Equity Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Available-for-sale securities, equity securities	1,000	1,000		1,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Forward Contracts [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial assets	1,400	1,400		3,100
Other financial liabilities	233	233		339
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Interest Rate Swap [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other financial assets	48,300	48,300		41,400
Other financial liabilities	43,100	43,100		41,400
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Financial Institutions Subordinated Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	42,100	42,100		65,200
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Single-issuer Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	39,700	39,700		37,300
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 2 [Member] | Other Corporate Debt [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	4,000	4,000		4,000
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Single-issuer Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	2,800	2,800		2,500
Fair Value, Measurements, Recurring [Member] | Fair Value, Inputs, Level 3 [Member] | Pooled Trust Preferred Securities [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Corporate debt securities	422	422		422
Fair Value, Measurements, Nonrecurring [Member] | Fair Value, Inputs, Level 3 [Member]
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Other real estate owned (OREO)	11,400	11,400		12,800
Other financial assets (MSRs)	$ 38,200	$ 38,200		$ 37,500

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Long-Term Debt (Details) - USD ($)	May 01, 2017	Jun. 30, 2017
Senior Notes [Member]
Debt Instrument [Line Items]
Senior notes issued		$ 125,000,000.0
Fixed interest rate		3.60%
Effective interest rate		3.95%
Senior Subordinated Notes [Member]
Debt Instrument [Line Items]
Term of debt	10 years
Fixed interest rate	5.75%
Effective interest rate	5.96%
Repayments of debt	$ 100,000,000