XML 93 R27.htm IDEA: XBRL DOCUMENT v3.2.0.727
Investment Securities (Tables)
 6 Months Ended
Jun. 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 June 30, 2015 and December 31, 2014 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
June 30, 2015
 
 
 
 
 
 
 
U.S. Treasury securities
$
139,051

 
$
11,025

 
$
—

 
$
150,076

U.S. government agency securities
13,523

 
279

 
—

 
13,802

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
195,735

 
7,226

 
(1,114
)
 
201,847

Municipal bonds
302,393

 
9,142

 
(983
)
 
310,552

Total obligations of states and political subdivisions
498,128

 
16,368

 
(2,097
)
 
512,399

Residential mortgage-backed securities
965,647

 
14,280

 
(10,379
)
 
969,548

Trust preferred securities
79,617

 
92

 
(13,241
)
 
66,468

Corporate and other debt securities
24,609

 
2,393

 
—

 
27,002

Total investment securities held to maturity
$
1,720,575

 
$
44,437

 
$
(25,717
)
 
$
1,739,295

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 June 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)
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
$
54,550

 
$
(1,033
)
 
$
1,888

 
$
(81
)
 
$
56,438

 
$
(1,114
)
Municipal bonds
44,292

 
(773
)
 
10,034

 
(210
)
 
54,326

 
(983
)
Total obligations of states and political subdivisions
98,842

 
(1,806
)
 
11,922

 
(291
)
 
110,764

 
(2,097
)
Residential mortgage-backed securities
317,973

 
(4,516
)
 
166,958

 
(5,863
)
 
484,931

 
(10,379
)
Trust preferred securities
4,738

 
(104
)
 
60,285

 
(13,137
)
 
65,023

 
(13,241
)
Total
$
421,553

 
$
(6,426
)
 
$
239,165

 
$
(19,291
)
 
$
660,718

 
$
(25,717
)
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 June 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.  
 
June 30, 2015
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
65,770

 
$
65,782

Due after one year through five years
65,368

 
69,690

Due after five years through ten years
336,469

 
353,088

Due after ten years
287,321

 
281,187

Residential mortgage-backed securities
965,647

 
969,548

Total investment securities held to maturity
$
1,720,575

 
$
1,739,295
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, 2015 and December 31, 2014 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
June 30, 2015
 
 
 
 
 
 
 
U.S. Treasury securities
$
51,052

 
$
7

 
$
(1,786
)
 
$
49,273

U.S. government agency securities
25,862

 
667

 
—

 
26,529

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
11,040

 
—

 
(106
)
 
10,934

Municipal bonds
33,323

 
40

 
(887
)
 
32,476

Total obligations of states and political subdivisions
44,363

 
40

 
(993
)
 
43,410

Residential mortgage-backed securities
591,342

 
3,184

 
(8,735
)
 
585,791

Trust preferred securities*
10,587

 
—

 
(1,969
)
 
8,618

Corporate and other debt securities
72,897

 
1,428

 
(841
)
 
73,484

Equity securities
21,022

 
689

 
(1,242
)
 
20,469

Total investment securities available for sale
$
817,125

 
$
6,015

 
$
(15,566
)
 
$
807,574

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 June 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 June 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)
June 30, 2015
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
48,332

 
$
(1,786
)
 
$
—

 
$
—

 
$
48,332

 
$
(1,786
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
10,934

 
(106
)
 
—

 
—

 
10,934

 
(106
)
Municipal bonds
20,525

 
(651
)
 
11,053

 
(236
)
 
31,578

 
(887
)
Total obligations of states and political subdivisions
31,459

 
(757
)
 
11,053

 
(236
)
 
42,512

 
(993
)
Residential mortgage-backed securities
252,728

 
(2,742
)
 
177,821

 
(5,993
)
 
430,549

 
(8,735
)
Trust preferred securities
—

 
—

 
8,618

 
(1,969
)
 
8,618

 
(1,969
)
Corporate and other debt securities
17,878

 
(91
)
 
37,142

 
(750
)
 
55,020

 
(841
)
Equity securities
136

 
(15
)
 
14,417

 
(1,227
)
 
14,553

 
(1,242
)
Total
$
350,533

 
$
(5,391
)
 
$
249,051

 
$
(10,175
)
 
$
599,584

 
$
(15,566
)
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 June 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.
 
June 30, 2015
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
500

 
$
500

Due after one year through five years
64,469

 
65,586

Due after five years through ten years
78,693

 
76,336

Due after ten years
61,099

 
58,892

Residential mortgage-backed securities
591,342

 
585,791

Equity securities
21,022

 
20,469

Total investment securities available for sale
$
817,125

 
$
807,574
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 six months ended June 30, 2015 and 2014: 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
Balance, beginning of period
$
6,421

 
$
9,792

 
$
8,947

 
$
9,990

Accretion of credit loss impairment due to an increase in expected cash flows
(34
)
 
(110
)
 
(178
)
 
(308
)
Sales
—

 
—

 
(2,382
)
 
—

Balance, end of period
$
6,387

 
$
9,682

 
$
6,387

 
$
9,682
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, 2015 and 2014 were as follows: 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2015
 
2014
 
2015
 
2014
 
(in thousands)
Sales transactions:
 
 
 
 
 
 
 
Gross gains
$
—

 
$
—

 
$
3,274

 
$
—

Gross losses
—

 
—

 
(947
)
 
—

 
$
—

 
$
—

 
$
2,327

 
$
—

Maturities and other securities transactions:
 
 
 
 
 
 
 
Gross gains
$
40

 
$
7

 
$
129

 
$
8

Gross losses
(132
)
 
—

 
(132
)
 
(9
)
 
$
(92
)
 
$
7

 
$
(3
)
 
$
(1
)
Total (losses) gains on securities transactions, net
$
(92
)
 
$
7

 
$
2,324

 
$
(1
)