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Investment Securities (Tables)
9 Months Ended
Sep. 30, 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 September 30, 2015 and December 31, 2014 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
September 30, 2015
 
 
 
 
 
 
 
U.S. Treasury securities
$
139,014

 
$
13,499

 
$

 
$
152,513

U.S. government agency securities
12,973

 
427

 

 
13,400

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
195,143

 
9,471

 
(12
)
 
204,602

Municipal bonds
316,645

 
10,678

 
(309
)
 
327,014

Total obligations of states and political subdivisions
511,788

 
20,149

 
(321
)
 
531,616

Residential mortgage-backed securities
889,146

 
15,530

 
(4,900
)
 
899,776

Trust preferred securities
59,780

 
48

 
(13,017
)
 
46,811

Corporate and other debt securities
24,609

 
2,226

 

 
26,835

Total investment securities held to maturity
$
1,637,310

 
$
51,879

 
$
(18,238
)
 
$
1,670,951

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 September 30, 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)
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
$

 
$

 
$
1,957

 
$
(12
)
 
$
1,957

 
$
(12
)
Municipal bonds
19,027

 
(241
)
 
10,159

 
(68
)
 
29,186

 
(309
)
Total obligations of states and political subdivisions
19,027

 
(241
)
 
12,116

 
(80
)
 
31,143

 
(321
)
Residential mortgage-backed securities
223,653

 
(1,665
)
 
160,149

 
(3,235
)
 
383,802

 
(4,900
)
Trust preferred securities

 

 
45,409

 
(13,017
)
 
45,409

 
(13,017
)
Total
$
242,680

 
$
(1,906
)
 
$
217,674

 
$
(16,332
)
 
$
460,354

 
$
(18,238
)
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 September 30, 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.  
 
September 30, 2015
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
81,860

 
$
81,866

Due after one year through five years
71,354

 
75,970

Due after five years through ten years
374,915

 
400,050

Due after ten years
220,035

 
213,289

Residential mortgage-backed securities
889,146

 
899,776

Total investment securities held to maturity
$
1,637,310

 
$
1,670,951

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 September 30, 2015 and December 31, 2014 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
September 30, 2015
 
 
 
 
 
 
 
U.S. Treasury securities
$
51,047

 
$
20

 
$
(599
)
 
$
50,468

U.S. government agency securities
24,738

 
779

 
(4
)
 
25,513

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
10,980

 
22

 

 
11,002

Municipal bonds
33,215

 
60

 
(808
)
 
32,467

Total obligations of states and political subdivisions
44,195

 
82

 
(808
)
 
43,469

Residential mortgage-backed securities
569,182

 
5,865

 
(5,397
)
 
569,650

Trust preferred securities*
10,530

 

 
(1,937
)
 
8,593

Corporate and other debt securities
78,550

 
1,413

 
(946
)
 
79,017

Equity securities
21,022

 
815

 
(1,158
)
 
20,679

Total investment securities available for sale
$
799,264

 
$
8,974

 
$
(10,849
)
 
$
797,389

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 September 30, 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 September 30, 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)
September 30, 2015
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
49,516

 
$
(599
)
 
$

 
$

 
$
49,516

 
$
(599
)
U.S. government agency securities

 

 
4,857

 
(4
)
 
4,857

 
(4
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Municipal bonds
19,764

 
(232
)
 
10,721

 
(576
)
 
30,485

 
(808
)
Total obligations of states and political subdivisions
19,764

 
(232
)
 
10,721

 
(576
)
 
30,485

 
(808
)
Residential mortgage-backed securities
107,912

 
(1,601
)
 
168,049

 
(3,796
)
 
275,961

 
(5,397
)
Trust preferred securities

 

 
8,593

 
(1,937
)
 
8,593

 
(1,937
)
Corporate and other debt securities
15,190

 
(131
)
 
36,908

 
(815
)
 
52,098

 
(946
)
Equity securities

 

 
14,486

 
(1,158
)
 
14,486

 
(1,158
)
Total
$
192,382

 
$
(2,563
)
 
$
243,614

 
$
(8,286
)
 
$
435,996

 
$
(10,849
)
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 September 30, 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.
 
September 30, 2015
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
600

 
$
602

Due after one year through five years
70,286

 
71,237

Due after five years through ten years
71,953

 
70,566

Due after ten years
66,221

 
64,655

Residential mortgage-backed securities
569,182

 
569,650

Equity securities
21,022

 
20,679

Total investment securities available for sale
$
799,264

 
$
797,389

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 and nine months ended September 30, 2015 and 2014: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
Balance, beginning of period
$
6,387

 
$
9,682

 
$
8,947

 
$
9,990

Accretion of credit loss impairment due to an increase in expected cash flows
(458
)
 
(198
)
 
(636
)
 
(506
)
Sales

 

 
(2,382
)
 

Balance, end of period
$
5,929

 
$
9,484

 
$
5,929

 
$
9,484

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 and nine months ended September 30, 2015 and 2014 were as follows: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
Sales transactions:
 
 
 
 
 
 
 
Gross gains
$

 
$
103

 
$
3,274

 
$
103

Gross losses

 

 
(947
)
 

 
$

 
$
103

 
$
2,327

 
$
103

Maturities and other securities transactions:
 
 
 
 
 
 
 
Gross gains
$
158

 
$

 
$
287

 
$
8

Gross losses
(1
)
 

 
(133
)
 
(9
)
 
$
157

 
$

 
$
154

 
$
(1
)
Total gains on securities transactions, net
$
157

 
$
103

 
$
2,481

 
$
102