XML 94 R27.htm IDEA: XBRL DOCUMENT v2.4.1.9
Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2015
Investments, Debt and Equity Securities [Abstract]  
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
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
)
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

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

 
*
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.
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
)
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

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
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
)