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Investment Securities (Tables)
 9 Months Ended
Sep. 30, 2016
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, 2016 and December 31, 2015 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
U.S. Treasury securities
$
138,866

 
$
15,176

 
$
—

 
$
154,042

U.S. government agency securities
11,549

 
557

 
—

 
12,106

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
192,735

 
13,353

 
—

 
206,088

Municipal bonds
375,477

 
13,960

 
—

 
389,437

Total obligations of states and political subdivisions
568,212

 
27,313

 
—

 
595,525

Residential mortgage-backed securities
1,030,165

 
17,642

 
(1,420
)
 
1,046,387

Trust preferred securities
59,800

 
28

 
(14,102
)
 
45,726

Corporate and other debt securities
36,559

 
1,637

 
—

 
38,196

Total investment securities held to maturity
$
1,845,151

 
$
62,353

 
$
(15,522
)
 
$
1,891,982

December 31, 2015
 
 
 
 
 
 
 
U.S. Treasury securities
$
138,978

 
$
10,505

 
$
—

 
$
149,483

U.S. government agency securities
12,859

 
271

 
—

 
13,130

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
194,547

 
10,538

 
(10
)
 
205,075

Municipal bonds
310,318

 
11,955

 
(85
)
 
322,188

Total obligations of states and political subdivisions
504,865

 
22,493

 
(95
)
 
527,263

Residential mortgage-backed securities
852,289

 
11,018

 
(8,035
)
 
855,272

Trust preferred securities
59,785

 
36

 
(13,384
)
 
46,437

Corporate and other debt securities
27,609

 
1,894

 
(49
)
 
29,454

Total investment securities held to maturity
$
1,596,385

 
$
46,217

 
$
(21,563
)
 
$
1,621,039
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, 2016 and December 31, 2015 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, 2016
 
 
 
 
 
 
 
 
 
 
 
Residential mortgage-backed securities
$
185,774

 
$
(867
)
 
$
128,211

 
$
(553
)
 
$
313,985

 
$
(1,420
)
Trust preferred securities
—

 
—

 
44,344

 
(14,102
)
 
44,344

 
(14,102
)
Total
$
185,774

 
$
(867
)
 
$
172,555

 
$
(14,655
)
 
$
358,329

 
$
(15,522
)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
$
6,837

 
$
(5
)
 
$
1,965

 
$
(5
)
 
$
8,802

 
$
(10
)
Municipal bonds
8,814

 
(72
)
 
10,198

 
(13
)
 
19,012

 
(85
)
Total obligations of states and political subdivisions
15,651

 
(77
)
 
12,163

 
(18
)
 
27,814

 
(95
)
Residential mortgage-backed securities
244,440

 
(2,916
)
 
162,756

 
(5,119
)
 
407,196

 
(8,035
)
Trust preferred securities
—

 
—

 
45,047

 
(13,384
)
 
45,047

 
(13,384
)
Corporate and other debt securities
2,951

 
(49
)
 
—

 
—

 
2,951

 
(49
)
Total
$
263,042

 
$
(3,042
)
 
$
219,966

 
$
(18,521
)
 
$
483,008

 
$
(21,563
)
Contractual Maturities of Debt Securities Held to Maturity
The contractual maturities of investments in debt securities held to maturity at September 30, 2016 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, 2016
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
85,384

 
$
85,388

Due after one year through five years
181,107

 
192,968

Due after five years through ten years
369,454

 
398,494

Due after ten years
179,041

 
168,745

Residential mortgage-backed securities
1,030,165

 
1,046,387

Total investment securities held to maturity
$
1,845,151

 
$
1,891,982
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, 2016 and December 31, 2015 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
September 30, 2016
 
 
 
 
 
 
 
U.S. Treasury securities
$
51,025

 
$
766

 
$
—

 
$
51,791

U.S. government agency securities
23,764

 
339

 
(6
)
 
24,097

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
42,466

 
1,091

 
(40
)
 
43,517

Municipal bonds
80,155

 
1,939

 
(321
)
 
81,773

Total obligations of states and political subdivisions
122,621

 
3,030

 
(361
)
 
125,290

Residential mortgage-backed securities
958,531

 
11,021

 
(2,914
)
 
966,638

Trust preferred securities*
10,231

 
—

 
(2,075
)
 
8,156

Corporate and other debt securities
79,148

 
1,623

 
(204
)
 
80,567

Equity securities
20,522

 
445

 
(797
)
 
20,170

Total investment securities available for sale
$
1,265,842

 
$
17,224

 
$
(6,357
)
 
$
1,276,709

December 31, 2015
 
 
 
 
 
 
 
U.S. Treasury securities
$
551,173

 
$
4

 
$
(1,704
)
 
$
549,473

U.S. government agency securities
29,316

 
665

 
(18
)
 
29,963

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
44,285

 
196

 
(67
)
 
44,414

Municipal bonds
80,717

 
209

 
(374
)
 
80,552

Total obligations of states and political subdivisions
125,002

 
405

 
(441
)
 
124,966

Residential mortgage-backed securities
701,764

 
3,348

 
(8,684
)
 
696,428

Trust preferred securities*
10,458

 
—

 
(2,054
)
 
8,404

Corporate and other debt securities
78,202

 
1,239

 
(1,889
)
 
77,552

Equity securities
21,022

 
575

 
(1,522
)
 
20,075

Total investment securities available for sale
$
1,516,937

 
$
6,236

 
$
(16,312
)
 
$
1,506,861

 
*
Includes two pooled trust preferred securities, principally collateralized by securities issued by banks and insurance companies, at September 30, 2016 and December 31, 2015.
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, 2016 and December 31, 2015 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, 2016
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency securities
$
—

 
$
—

 
$
4,197

 
$
(6
)
 
$
4,197

 
$
(6
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
2,607

 
(40
)
 
—

 
—

 
2,607

 
(40
)
Municipal bonds
—

 
—

 
11,012

 
(321
)
 
11,012

 
(321
)
Total obligations of states and political subdivisions
2,607

 
(40
)
 
11,012

 
(321
)
 
13,619

 
(361
)
Residential mortgage-backed securities
145,631

 
(566
)
 
138,425

 
(2,348
)
 
284,056

 
(2,914
)
Trust preferred securities
—

 
—

 
8,155

 
(2,075
)
 
8,155

 
(2,075
)
Corporate and other debt securities
20,814

 
(7
)
 
15,329

 
(197
)
 
36,143

 
(204
)
Equity securities
—

 
—

 
14,998

 
(797
)
 
14,998

 
(797
)
Total
$
169,052

 
$
(613
)
 
$
192,116

 
$
(5,744
)
 
$
361,168

 
$
(6,357
)
December 31, 2015
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
548,538

 
$
(1,704
)
 
$
—

 
$
—

 
$
548,538

 
$
(1,704
)
U.S. government agency securities
3,489

 
(5
)
 
4,736

 
(13
)
 
8,225

 
(18
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
24,359

 
(67
)
 
—

 
—

 
24,359

 
(67
)
Municipal bonds
38,207

 
(128
)
 
13,551

 
(246
)
 
51,758

 
(374
)
Total obligations of states and political subdivisions
62,566

 
(195
)
 
13,551

 
(246
)
 
76,117

 
(441
)
Residential mortgage-backed securities
293,615

 
(4,147
)
 
164,010

 
(4,537
)
 
457,625

 
(8,684
)
Trust preferred securities
—

 
—

 
8,404

 
(2,054
)
 
8,404

 
(2,054
)
Corporate and other debt securities
21,203

 
(471
)
 
36,137

 
(1,418
)
 
57,340

 
(1,889
)
Equity securities
—

 
—

 
14,273

 
(1,522
)
 
14,273

 
(1,522
)
Total
$
929,411

 
$
(6,522
)
 
$
241,111

 
$
(9,790
)
 
$
1,170,522

 
$
(16,312
)
Contractual Maturities of Investment Securities Available for Sale
The contractual maturities of investment securities available for sale at September 30, 2016 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, 2016
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
10,549

 
$
10,578

Due after one year through five years
93,945

 
95,479

Due after five years through ten years
122,929

 
125,488

Due after ten years
59,366

 
58,356

Residential mortgage-backed securities
958,531

 
966,638

Equity securities
20,522

 
20,170

Total investment securities available for sale
$
1,265,842

 
$
1,276,709
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, 2016 and 2015: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Balance, beginning of period
$
5,348

 
$
6,387

 
$
5,837

 
$
8,947

Accretion of credit loss impairment due to an increase in expected cash flows
(87
)
 
(458
)
 
(576
)
 
(636
)
Sales
—

 
—

 
—

 
(2,382
)
Balance, end of period
$
5,261

 
$
5,929

 
$
5,261

 
$
5,929
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, 2016 and 2015 were as follows: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2016
 
2015
 
2016
 
2015
 
(in thousands)
Sales transactions:
 
 
 
 
 
 
 
Gross gains
$
—

 
$
—

 
$
271

 
$
3,274

Gross losses
—

 
—

 
—

 
(947
)
 
—

 
—

 
271

 
2,327

Maturities and other securities transactions:
 
 
 
 
 
 
 
Gross gains
2

 
158

 
2

 
287

Gross losses
(12
)
 
(1
)
 
(15
)
 
(133
)
 
(10
)
 
157

 
(13
)
 
154

Total (losses) gains on securities transactions, net
$
(10
)
 
$
157

 
$
258

 
$
2,481