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Investment Securities (Tables)
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3 Months Ended |
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Mar. 31, 2015
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| Investments, Debt and Equity Securities [Abstract] |
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| Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Held to Maturity |
The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at March 31, 2015 and December 31, 2014 were as follows: | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | (in thousands) | March 31, 2015 | | | | | | | | U.S. Treasury securities | $ | 139,087 |
| | $ | 14,589 |
| | $ | — |
| | $ | 153,676 |
| U.S. government agency securities | 13,630 |
| | 410 |
| | — |
| | 14,040 |
| Obligations of states and political subdivisions: | | | | | | | | Obligations of states and state agencies | 196,849 |
| | 10,245 |
| | (152 | ) | | 206,942 |
| Municipal bonds | 293,908 |
| | 12,152 |
| | (86 | ) | | 305,974 |
| Total obligations of states and political subdivisions | 490,757 |
| | 22,397 |
| | (238 | ) | | 512,916 |
| Residential mortgage-backed securities | 1,059,278 |
| | 19,205 |
| | (3,804 | ) | | 1,074,679 |
| Trust preferred securities | 98,458 |
| | 104 |
| | (12,482 | ) | | 86,080 |
| Corporate and other debt securities | 24,609 |
| | 2,625 |
| | — |
| | 27,234 |
| Total investment securities held to maturity | $ | 1,825,819 |
| | $ | 59,330 |
| | $ | (16,524 | ) | | $ | 1,868,625 |
| December 31, 2014 | | | | | | | | U.S. Treasury securities | $ | 139,121 |
| | $ | 12,179 |
| | $ | — |
| | $ | 151,300 |
| U.S. government agency securities | 14,081 |
| | 304 |
| | — |
| | 14,385 |
| Obligations of states and political subdivisions: | | | | | | | | Obligations of states and state agencies | 197,440 |
| | 9,410 |
| | (412 | ) | | 206,438 |
| Municipal bonds | 302,578 |
| | 10,955 |
| | (278 | ) | | 313,255 |
| Total obligations of states and political subdivisions | 500,018 |
| | 20,365 |
| | (690 | ) | | 519,693 |
| Residential mortgage-backed securities | 986,992 |
| | 18,233 |
| | (6,244 | ) | | 998,981 |
| Trust preferred securities | 98,456 |
| | 167 |
| | (12,380 | ) | | 86,243 |
| Corporate and other debt securities | 39,648 |
| | 5,726 |
| | — |
| | 45,374 |
| Total investment securities held to maturity | $ | 1,778,316 |
| | $ | 56,974 |
| | $ | (19,314 | ) | | $ | 1,815,976 |
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| Age of Unrealized Losses and Fair Value of Related Securities Held to Maturity |
The age of unrealized losses and fair value of related securities held to maturity at March 31, 2015 and December 31, 2014 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | Less than Twelve Months | | More than Twelve Months | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | (in thousands) | March 31, 2015 | | | | | | | | | | | | Obligations of states and political subdivisions: | | | | | | | | | | | | Obligations of states and state agencies | $ | 22,194 |
| | $ | (145 | ) | | $ | 1,961 |
| | $ | (7 | ) | | $ | 24,155 |
| | $ | (152 | ) | Municipal bonds | 11,876 |
| | (79 | ) | | 10,253 |
| | (7 | ) | | 22,129 |
| | (86 | ) | Total obligations of states and political subdivisions | 34,070 |
| | (224 | ) | | 12,214 |
| | (14 | ) | | 46,284 |
| | (238 | ) | Residential mortgage-backed securities | 211,113 |
| | (1,178 | ) | | 177,774 |
| | (2,626 | ) | | 388,887 |
| | (3,804 | ) | Trust preferred securities | 4,825 |
| | (16 | ) | | 66,111 |
| | (12,466 | ) | | 70,936 |
| | (12,482 | ) | Total | $ | 250,008 |
| | $ | (1,418 | ) | | $ | 256,099 |
| | $ | (15,106 | ) | | $ | 506,107 |
| | $ | (16,524 | ) | December 31, 2014 | | | | | | | | | | | | Obligations of states and political subdivisions: | | | | | | | | | | | | Obligations of states and state agencies | $ | 4,927 |
| | $ | (50 | ) | | $ | 19,050 |
| | $ | (362 | ) | | $ | 23,977 |
| | $ | (412 | ) | Municipal bonds | — |
| | — |
| | 28,815 |
| | (278 | ) | | 28,815 |
| | (278 | ) | Total obligations of states and political subdivisions | 4,927 |
| | (50 | ) | | 47,865 |
| | (640 | ) | | 52,792 |
| | (690 | ) | Residential mortgage-backed securities | 107,357 |
| | (563 | ) | | 276,580 |
| | (5,681 | ) | | 383,937 |
| | (6,244 | ) | Trust preferred securities | — |
| | — |
| | 66,194 |
| | (12,380 | ) | | 66,194 |
| | (12,380 | ) | Total | $ | 112,284 |
| | $ | (613 | ) | | $ | 390,639 |
| | $ | (18,701 | ) | | $ | 502,923 |
| | $ | (19,314 | ) |
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| Contractual Maturities of Debt Securities Held to Maturity |
The contractual maturities of investments in debt securities held to maturity at March 31, 2015 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. | | | | | | | | | | March 31, 2015 | | Amortized Cost | | Fair Value | | (in thousands) | Due in one year | $ | 55,838 |
| | $ | 55,861 |
| Due after one year through five years | 63,369 |
| | 67,976 |
| Due after five years through ten years | 330,116 |
| | 352,827 |
| Due after ten years | 317,218 |
| | 317,282 |
| Residential mortgage-backed securities | 1,059,278 |
| | 1,074,679 |
| Total investment securities held to maturity | $ | 1,825,819 |
| | $ | 1,868,625 |
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Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. |
| Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Available for Sale |
The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at March 31, 2015 and December 31, 2014 were as follows: | | | | | | | | | | | | | | | | | | Amortized Cost | | Gross Unrealized Gains | | Gross Unrealized Losses | | Fair Value | | (in thousands) | March 31, 2015 | | | | | | | | U.S. Treasury securities | $ | 51,058 |
| | $ | 17 |
| | $ | (602 | ) | | $ | 50,473 |
| U.S. government agency securities | 26,721 |
| | 712 |
| | (94 | ) | | 27,339 |
| Obligations of states and political subdivisions: | | | | | | | | Obligations of states and state agencies | 11,101 |
| | 118 |
| | — |
| | 11,219 |
| Municipal bonds | 33,331 |
| | 97 |
| | (440 | ) | | 32,988 |
| Total obligations of states and political subdivisions | 44,432 |
| | 215 |
| | (440 | ) | | 44,207 |
| Residential mortgage-backed securities | 615,880 |
| | 6,081 |
| | (4,246 | ) | | 617,715 |
| Trust preferred securities* | 10,641 |
| | — |
| | (2,103 | ) | | 8,538 |
| Corporate and other debt securities | 73,241 |
| | 1,712 |
| | (451 | ) | | 74,502 |
| Equity securities | 21,071 |
| | 784 |
| | (1,111 | ) | | 20,744 |
| Total investment securities available for sale | $ | 843,044 |
| | $ | 9,521 |
| | $ | (9,047 | ) | | $ | 843,518 |
| December 31, 2014 | | | | | | | | U.S. Treasury securities | $ | 51,063 |
| | $ | 2 |
| | $ | (1,622 | ) | | $ | 49,443 |
| U.S. government agency securities | 33,163 |
| | 748 |
| | (86 | ) | | 33,825 |
| Obligations of states and political subdivisions: | | | | | | | | Obligations of states and state agencies | 11,160 |
| | — |
| | (24 | ) | | 11,136 |
| Municipal bonds | 33,340 |
| | 127 |
| | (552 | ) | | 32,915 |
| Total obligations of states and political subdivisions | 44,500 |
| | 127 |
| | (576 | ) | | 44,051 |
| Residential mortgage-backed securities | 643,382 |
| | 5,854 |
| | (4,960 | ) | | 644,276 |
| Trust preferred securities* | 23,194 |
| | 296 |
| | (2,953 | ) | | 20,537 |
| Corporate and other debt securities | 73,585 |
| | 1,645 |
| | (1,218 | ) | | 74,012 |
| Equity securities | 21,071 |
| | 671 |
| | (916 | ) | | 20,826 |
| Total investment securities available for sale | $ | 889,958 |
| | $ | 9,343 |
| | $ | (12,331 | ) | | $ | 886,970 |
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| | | * | Includes two and three pooled trust preferred securities, principally collateralized by securities issued by banks and insurance companies, at March 31, 2015 and December 31, 2014, respectively. |
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| Age of Unrealized Losses and Fair Value of Related Securities |
The age of unrealized losses and fair value of related securities available for sale at March 31, 2015 and December 31, 2014 were as follows: | | | | | | | | | | | | | | | | | | | | | | | | | | Less than Twelve Months | | More than Twelve Months | | Total | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | Fair Value | | Unrealized Losses | | (in thousands) | March 31, 2015 | | | | | | | | | | | | U.S. Treasury securities | $ | 49,520 |
| | $ | (602 | ) | | $ | — |
| | $ | — |
| | $ | 49,520 |
| | $ | (602 | ) | U.S. government agency securities | — |
| | — |
| | 5,293 |
| | (94 | ) | | 5,293 |
| | (94 | ) | Obligations of states and political subdivisions: | | | | | | | | | | | | Municipal bonds | 19,072 |
| | (204 | ) | | 11,044 |
| | (236 | ) | | 30,116 |
| | (440 | ) | Total obligations of states and political subdivisions | 19,072 |
| | (204 | ) | | 11,044 |
| | (236 | ) | | 30,116 |
| | (440 | ) | Residential mortgage-backed securities | 32,256 |
| | (518 | ) | | 216,266 |
| | (3,728 | ) | | 248,522 |
| | (4,246 | ) | Trust preferred securities | — |
| | — |
| | 8,538 |
| | (2,103 | ) | | 8,538 |
| | (2,103 | ) | Corporate and other debt securities | 18,987 |
| | (43 | ) | | 27,622 |
| | (408 | ) | | 46,609 |
| | (451 | ) | Equity securities | 46 |
| | (3 | ) | | 14,533 |
| | (1,108 | ) | | 14,579 |
| | (1,111 | ) | Total | $ | 119,881 |
| | $ | (1,370 | ) | | $ | 283,296 |
| | $ | (7,677 | ) | | $ | 403,177 |
| | $ | (9,047 | ) | December 31, 2014 | | | | | | | | | | | | U.S. Treasury securities | $ | — |
| | $ | — |
| | $ | 48,504 |
| | $ | (1,622 | ) | | $ | 48,504 |
| | $ | (1,622 | ) | U.S. government agency securities | — |
| | — |
| | 5,442 |
| | (86 | ) | | 5,442 |
| | (86 | ) | Obligations of states and political subdivisions: | | | | | | | | | | | | Obligations of states and state agencies | — |
| | — |
| | 11,136 |
| | (24 | ) | | 11,136 |
| | (24 | ) | Municipal bonds | 13,337 |
| | (426 | ) | | 14,637 |
| | (126 | ) | | 27,974 |
| | (552 | ) | Total obligations of states and political subdivisions | 13,337 |
| | (426 | ) | | 25,773 |
| | (150 | ) | | 39,110 |
| | (576 | ) | Residential mortgage-backed securities | 57,543 |
| | (121 | ) | | 244,910 |
| | (4,839 | ) | | 302,453 |
| | (4,960 | ) | Trust preferred securities | 2,210 |
| | (117 | ) | | 12,085 |
| | (2,836 | ) | | 14,295 |
| | (2,953 | ) | Corporate and other debt securities | 27,500 |
| | (294 | ) | | 28,269 |
| | (924 | ) | | 55,769 |
| | (1,218 | ) | Equity securities | 158 |
| | (41 | ) | | 14,769 |
| | (875 | ) | | 14,927 |
| | (916 | ) | Total | $ | 100,748 |
| | $ | (999 | ) | | $ | 379,752 |
| | $ | (11,332 | ) | | $ | 480,500 |
| | $ | (12,331 | ) |
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| Contractual Maturities of Investment Securities Available for Sale |
The contractual maturities of investment securities available for sale at March 31, 2015 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. | | | | | | | | | | March 31, 2015 | | Amortized Cost | | Fair Value | | (in thousands) | Due after one year through five years | $ | 65,316 |
| | $ | 66,915 |
| Due after five years through ten years | 79,110 |
| | 78,201 |
| Due after ten years | 61,667 |
| | 59,943 |
| Residential mortgage-backed securities | 615,880 |
| | 617,715 |
| Equity securities | 21,071 |
| | 20,744 |
| Total investment securities available for sale | $ | 843,044 |
| | $ | 843,518 |
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Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. |
| Changes in Credit Loss Component of Cumulative Other-than-Temporary Impairment Losses on Debt Securities |
The following table presents the changes in the credit loss component of cumulative other-than-temporary impairment losses on debt securities classified as either held to maturity or available for sale that Valley has previously recognized in earnings, for which a portion of the impairment loss (non-credit factors) was recognized in other comprehensive income for the three months ended March 31, 2015 and 2014: | | | | | | | | | | Three Months Ended
March 31, | | 2015 | | 2014 | | (in thousands) | Balance, beginning of period | $ | 8,947 |
| | $ | 9,990 |
| Accretion of credit loss impairment due to an increase in expected cash flows | (144 | ) | | (198 | ) | Sales | (2,382 | ) | | — |
| Balance, end of period | $ | 6,421 |
| | $ | 9,792 |
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| Realized Gains and Losses on Sales of Investment Securities |
Gross gains (losses) realized on sales, maturities and other securities transactions related to investment securities included in earnings for the three months ended March 31, 2015 and 2014 were as follows: | | | | | | | | | | Three Months Ended
March 31, | | 2015 | | 2014 | | (in thousands) | Sales transactions: | | | | Gross gains | $ | 3,274 |
| | $ | — |
| Gross losses | (947 | ) | | — |
| | $ | 2,327 |
| | $ | — |
| Maturities and other securities transactions: | | | | Gross gains | $ | 89 |
| | $ | 1 |
| Gross losses | — |
| | (9 | ) | | $ | 89 |
| | $ | (8 | ) | Total gains on securities transactions, net | $ | 2,416 |
| | $ | (8 | ) |
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