|
Investment Securities (Tables)
|
6 Months Ended |
|
Jun. 30, 2013
|
| 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 June 30, 2013 and December 31, 2012 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
| |
|
(in
thousands) |
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
|
$ |
99,792 |
|
|
$ |
8,942 |
|
|
$ |
— |
|
|
$ |
108,734 |
|
|
Obligations of states and
political subdivisions
|
|
|
542,154 |
|
|
|
10,120 |
|
|
|
(9,660 |
) |
|
|
542,614 |
|
|
Residential mortgage-backed
securities
|
|
|
969,341 |
|
|
|
13,459 |
|
|
|
(19,225 |
) |
|
|
963,575 |
|
|
Trust preferred
securities
|
|
|
103,453 |
|
|
|
377 |
|
|
|
(12,482 |
) |
|
|
91,348 |
|
|
Corporate and other debt
securities
|
|
|
52,207 |
|
|
|
5,704 |
|
|
|
(1 |
) |
|
|
57,910 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
held to maturity
|
|
$ |
1,766,947 |
|
|
$ |
38,602 |
|
|
$ |
(41,368 |
) |
|
$ |
1,764,181 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
|
$ |
99,869 |
|
|
$ |
15,460 |
|
|
$ |
— |
|
|
$ |
115,329 |
|
|
Obligations of states and
political subdivisions
|
|
|
506,473 |
|
|
|
25,690 |
|
|
|
(197 |
) |
|
|
531,966 |
|
|
Residential mortgage-backed
securities
|
|
|
813,647 |
|
|
|
24,824 |
|
|
|
(355 |
) |
|
|
838,116 |
|
|
Trust preferred
securities
|
|
|
127,505 |
|
|
|
930 |
|
|
|
(14,778 |
) |
|
|
113,657 |
|
|
Corporate and other debt
securities
|
|
|
52,213 |
|
|
|
6,669 |
|
|
|
— |
|
|
|
58,882 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
held to maturity
|
|
$ |
1,599,707 |
|
|
$ |
73,573 |
|
|
$ |
(15,330 |
) |
|
$ |
1,657,950 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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
June 30, 2013 and December 31, 2012 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) |
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states and
political subdivisions
|
|
$ |
130,784 |
|
|
$ |
(9,564 |
) |
|
$ |
1,345 |
|
|
$ |
(96 |
) |
|
$ |
132,129 |
|
|
$ |
(9,660 |
) |
|
Residential mortgage-backed
securities
|
|
|
520,005 |
|
|
|
(19,225 |
) |
|
|
— |
|
|
|
— |
|
|
|
520,005 |
|
|
|
(19,225 |
) |
|
Trust preferred
securities
|
|
|
15,916 |
|
|
|
(259 |
) |
|
|
51,159 |
|
|
|
(12,223 |
) |
|
|
67,075 |
|
|
|
(12,482 |
) |
|
Corporate and other debt
securities
|
|
|
49 |
|
|
|
(1 |
) |
|
|
— |
|
|
|
— |
|
|
|
49 |
|
|
|
(1 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
666,754 |
|
|
$ |
(29,049 |
) |
|
$ |
52,504 |
|
|
$ |
(12,319 |
) |
|
$ |
719,258 |
|
|
$ |
(41,368 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Obligations of states and
political subdivisions
|
|
$ |
15,518 |
|
|
$ |
(197 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
15,518 |
|
|
$ |
(197 |
) |
|
Residential mortgage-backed
securities
|
|
|
80,152 |
|
|
|
(355 |
) |
|
|
— |
|
|
|
— |
|
|
|
80,152 |
|
|
|
(355 |
) |
|
Trust preferred
securities
|
|
|
28,690 |
|
|
|
(208 |
) |
|
|
48,802 |
|
|
|
(14,570 |
) |
|
|
77,492 |
|
|
|
(14,778 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
124,360 |
|
|
$ |
(760 |
) |
|
$ |
48,802 |
|
|
$ |
(14,570 |
) |
|
$ |
173,162 |
|
|
$ |
(15,330 |
) |
|
| Contractual Maturities of Debt Securities Held to Maturity |
The contractual maturities
of investments in debt securities held to maturity at June 30,
2013 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.
|
|
|
|
|
|
|
|
|
| |
|
June 30,
2013 |
|
| |
|
Amortized
Cost |
|
|
Fair
Value |
|
| |
|
(in
thousands) |
|
|
|
|
|
Due in one year
|
|
$ |
147,705 |
|
|
$ |
148,150 |
|
|
Due after one year through
five years
|
|
|
41,978 |
|
|
|
46,652 |
|
|
Due after five years
through ten years
|
|
|
238,461 |
|
|
|
250,285 |
|
|
Due after ten
years
|
|
|
369,462 |
|
|
|
355,519 |
|
|
Residential mortgage-backed
securities
|
|
|
969,341 |
|
|
|
963,575 |
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
held to maturity
|
|
$ |
1,766,947 |
|
|
$ |
1,764,181 |
|
|
|
|
|
|
|
|
|
|
|
| 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 June 30, 2013 and December 31, 2012 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Amortized
Cost |
|
|
Gross
Unrealized
Gains |
|
|
Gross
Unrealized
Losses |
|
|
Fair
Value |
|
| |
|
(in
thousands) |
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
|
$ |
99,839 |
|
|
$ |
— |
|
|
$ |
(10,053 |
) |
|
$ |
89,786 |
|
|
U.S. government agency
securities
|
|
|
54,917 |
|
|
|
1,504 |
|
|
|
(613 |
) |
|
|
55,808 |
|
|
Obligations of states and
political subdivisions
|
|
|
40,608 |
|
|
|
791 |
|
|
|
(2,165 |
) |
|
|
39,234 |
|
|
Residential mortgage-backed
securities
|
|
|
590,225 |
|
|
|
4,414 |
|
|
|
(20,812 |
) |
|
|
573,827 |
|
|
Trust preferred
securities*
|
|
|
67,973 |
|
|
|
6,088 |
|
|
|
(5,648 |
) |
|
|
68,413 |
|
|
Corporate and other debt
securities
|
|
|
84,523 |
|
|
|
2,008 |
|
|
|
(2,285 |
) |
|
|
84,246 |
|
|
Equity
securities
|
|
|
48,020 |
|
|
|
1,220 |
|
|
|
(1,898 |
) |
|
|
47,342 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
available for sale
|
|
$ |
986,105 |
|
|
$ |
16,025 |
|
|
$ |
(43,474 |
) |
|
$ |
958,656 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
|
$ |
99,843 |
|
|
$ |
— |
|
|
$ |
(2,218 |
) |
|
$ |
97,625 |
|
|
U.S. government agency
securities
|
|
|
44,215 |
|
|
|
1,547 |
|
|
|
— |
|
|
|
45,762 |
|
|
Obligations of states and
political subdivisions
|
|
|
16,210 |
|
|
|
417 |
|
|
|
— |
|
|
|
16,627 |
|
|
Residential mortgage-backed
securities
|
|
|
506,695 |
|
|
|
6,818 |
|
|
|
(3,359 |
) |
|
|
510,154 |
|
|
Trust preferred
securities*
|
|
|
68,931 |
|
|
|
240 |
|
|
|
(11,739 |
) |
|
|
57,432 |
|
|
Corporate and other debt
securities
|
|
|
28,274 |
|
|
|
2,728 |
|
|
|
(294 |
) |
|
|
30,708 |
|
|
Equity
securities
|
|
|
49,306 |
|
|
|
2,071 |
|
|
|
(1,869 |
) |
|
|
49,508 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
available for sale
|
|
$ |
813,474 |
|
|
$ |
13,821 |
|
|
$ |
(19,479 |
) |
|
$ |
807,816 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| * |
Includes three pooled trust
preferred securities, principally collateralized by securities
issued by banks and insurance companies. |
|
| 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
June 30, 2013 and December 31, 2012 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Less
than |
|
|
More
than |
|
|
|
|
|
|
|
| |
|
Twelve
Months |
|
|
Twelve
Months |
|
|
Total |
|
| |
|
Fair Value |
|
|
Unrealized
Losses |
|
|
Fair Value |
|
|
Unrealized
Losses |
|
|
Fair Value |
|
|
Unrealized
Losses |
|
| |
|
(in
thousands) |
|
|
|
|
|
|
|
|
|
June 30,
2013
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
|
$ |
89,786 |
|
|
$ |
(10,053 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
89,786 |
|
|
$ |
(10,053 |
) |
|
U.S. government agency
securities
|
|
|
28,188 |
|
|
|
(613 |
) |
|
|
— |
|
|
|
— |
|
|
|
28,188 |
|
|
|
(613 |
) |
|
Obligations of states and
political subdivisions
|
|
|
24,204 |
|
|
|
(2,165 |
) |
|
|
— |
|
|
|
— |
|
|
|
24,204 |
|
|
|
(2,165 |
) |
|
Residential mortgage-backed
securities
|
|
|
442,850 |
|
|
|
(18,946 |
) |
|
|
13,566 |
|
|
|
(1,866 |
) |
|
|
456,416 |
|
|
|
(20,812 |
) |
|
Trust preferred
securities
|
|
|
446 |
|
|
|
(10 |
) |
|
|
32,969 |
|
|
|
(5,638 |
) |
|
|
33,415 |
|
|
|
(5,648 |
) |
|
Corporate and other debt
securities
|
|
|
54,149 |
|
|
|
(2,192 |
) |
|
|
2,407 |
|
|
|
(93 |
) |
|
|
56,556 |
|
|
|
(2,285 |
) |
|
Equity
securities
|
|
|
1,144 |
|
|
|
(41 |
) |
|
|
12,601 |
|
|
|
(1,857 |
) |
|
|
13,745 |
|
|
|
(1,898 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
640,767 |
|
|
$ |
(34,020 |
) |
|
$ |
61,543 |
|
|
$ |
(9,454 |
) |
|
$ |
702,310 |
|
|
$ |
(43,474 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
December 31,
2012
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
U.S. Treasury
securities
|
|
$ |
97,625 |
|
|
$ |
(2,218 |
) |
|
$ |
— |
|
|
$ |
— |
|
|
$ |
97,625 |
|
|
$ |
(2,218 |
) |
|
Residential mortgage-backed
securities
|
|
|
269,895 |
|
|
|
(1,256 |
) |
|
|
21,089 |
|
|
|
(2,103 |
) |
|
|
290,984 |
|
|
|
(3,359 |
) |
|
Trust preferred
securities
|
|
|
760 |
|
|
|
(511 |
) |
|
|
27,865 |
|
|
|
(11,228 |
) |
|
|
28,625 |
|
|
|
(11,739 |
) |
|
Corporate and other debt
securities
|
|
|
5,394 |
|
|
|
(58 |
) |
|
|
2,264 |
|
|
|
(236 |
) |
|
|
7,658 |
|
|
|
(294 |
) |
|
Equity
securities
|
|
|
969 |
|
|
|
(75 |
) |
|
|
12,664 |
|
|
|
(1,794 |
) |
|
|
13,633 |
|
|
|
(1,869 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total
|
|
$ |
374,643 |
|
|
$ |
(4,118 |
) |
|
$ |
63,882 |
|
|
$ |
(15,361 |
) |
|
$ |
438,525 |
|
|
$ |
(19,479 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| Contractual Maturities of Investment Securities Available for Sale |
The contractual maturities
of investment securities available for sale at June 30, 2013 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.
|
|
|
|
|
|
|
|
|
| |
|
June 30,
2013 |
|
| |
|
Amortized
Cost |
|
|
Fair
Value |
|
| |
|
(in
thousands) |
|
|
|
|
|
Due in one year
|
|
$ |
720 |
|
|
$ |
724 |
|
|
Due after one year through
five years
|
|
|
44,295 |
|
|
|
43,520 |
|
|
Due after five years
through ten years
|
|
|
120,195 |
|
|
|
117,815 |
|
|
Due after ten
years
|
|
|
182,650 |
|
|
|
175,428 |
|
|
Residential mortgage-backed
securities
|
|
|
590,225 |
|
|
|
573,827 |
|
|
Equity
securities
|
|
|
48,020 |
|
|
|
47,342 |
|
|
|
|
|
|
|
|
|
|
|
Total investment securities
available for sale
|
|
$ |
986,105 |
|
|
$ |
958,656 |
|
|
|
|
|
|
|
|
|
|
|
| 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 six months ended June 30, 2013 and 2012 were as
follows:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(in
thousands) |
|
|
Sales
transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross gains
|
|
$ |
1 |
|
|
$ |
1,234 |
|
|
$ |
3,381 |
|
|
$ |
1,374 |
|
|
Gross losses
|
|
|
— |
|
|
|
— |
|
|
|
— |
|
|
|
(298 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
1 |
|
|
$ |
1,234 |
|
|
$ |
3,381 |
|
|
$ |
1,076 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Maturities and other
securities transactions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Gross gains
|
|
$ |
41 |
|
|
$ |
6 |
|
|
$ |
649 |
|
|
$ |
19 |
|
|
Gross losses
|
|
|
(1 |
) |
|
|
(36 |
) |
|
|
(31 |
) |
|
|
(48 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
$ |
40 |
|
|
$ |
(30 |
) |
|
$ |
618 |
|
|
$ |
(29 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Total gains on securities
transactions, net
|
|
$ |
41 |
|
|
$ |
1,204 |
|
|
$ |
3,999 |
|
|
$ |
1,047 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| 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 recognized in earnings, for which a portion of the
impairment loss (non-credit factors) was recognized in other
comprehensive income for the three and six months ended
June 30, 2013 and 2012:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
| |
|
Three Months Ended
June 30, |
|
|
Six Months Ended
June 30, |
|
| |
|
2013 |
|
|
2012 |
|
|
2013 |
|
|
2012 |
|
| |
|
(in
thousands) |
|
|
|
|
|
|
|
Balance, beginning of
period
|
|
$ |
33,177 |
|
|
$ |
28,767 |
|
|
$ |
33,290 |
|
|
$ |
29,070 |
|
|
Additions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Subsequent credit
impairments
|
|
|
— |
|
|
|
550 |
|
|
|
— |
|
|
|
550 |
|
|
Reductions:
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Accretion of credit loss
impairment due to an increase in expected cash flows
|
|
|
(75 |
) |
|
|
(66 |
) |
|
|
(188 |
) |
|
|
(369 |
) |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
Balance, end of
period
|
|
$ |
33,102 |
|
|
$ |
29,251 |
|
|
$ |
33,102 |
|
|
$ |
29,251 |
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|
|