Investment Securities (Tables)

12 Months Ended

Dec. 31, 2016

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities Held to Maturity

The amortized cost, gross unrealized gains and losses and fair value of investment securities held to maturity at December 31, 2016 and 2015 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
December 31, 2016
U.S. Treasury securities	$	138,830	$	8,665	$	—		$	147,495
U.S. government agency securities	11,329		135		—			11,464
Obligations of states and political subdivisions:
Obligations of states and state agencies	252,185		6,692		(1,428		)	257,449
Municipal bonds	314,405		6,438		(466		)	320,377
Total obligations of states and political subdivisions	566,590		13,130		(1,894		)	577,826
Residential mortgage-backed securities	1,112,460		8,432		(18,090		)	1,102,802
Trust preferred securities	59,804		40		(12,554		)	47,290
Corporate and other debt securities	36,559		1,190		(29		)	37,720
Total investment securities held to maturity	$	1,925,572	$	31,592	$	(32,567	)	$	1,924,597
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 December 31, 2016 and 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)
December 31, 2016
Obligations of states and political subdivisions:
Obligations of states and state agencies	$	98,114	$	(1,428	)	$	—	$	—		$	98,114	$	(1,428	)
Municipal bonds	27,368		(466		)	—		—			27,368		(466		)
Total obligations of states and political subdivisions	125,482		(1,894		)	—		—			125,482		(1,894		)
Residential mortgage-backed securities	692,108		(14,420		)	114,505		(3,670		)	806,613		(18,090		)
Trust preferred securities						45,898		(12,554		)	45,898		(12,554		)
Corporate and other debt securities	2,971		(29		)	—		—			2,971		(29		)
Total	$	820,561	$	(16,343	)	$	160,403	$	(16,224	)	$	980,964	$	(32,567	)
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 December 31, 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.

	December 31, 2016
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	85,139	$	85,139
Due after one year through five years	191,207		199,327
Due after five years through ten years	364,471		377,665
Due after ten years	172,295		159,664
Residential mortgage-backed securities	1,112,460		1,102,802
Total investment securities held to maturity	$	1,925,572	$	1,924,597

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities Available for Sale

The amortized cost, gross unrealized gains and losses and fair value of investment securities available for sale at December 31, 2016 and 2015 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
December 31, 2016
U.S. Treasury securities	$	51,020	$	6	$	(1,435	)	$	49,591
U.S. government agency securities	22,815		232		(6		)	23,041
Obligations of states and political subdivisions:
Obligations of states and state agencies	40,696		70		(424		)	40,342
Municipal bonds	80,045		147		(767		)	79,425
Total obligations of states and political subdivisions	120,741		217		(1,191		)	119,767
Residential mortgage-backed securities	1,029,827		2,061		(16,346		)	1,015,542
Trust preferred securities*	10,164		—		(2,155		)	8,009
Corporate and other debt securities	60,651		436		(522		)	60,565
Equity securities	20,505		1,114		(761		)	20,858
Total investment securities available for sale	$	1,315,723	$	4,066	$	(22,416	)	$	1,297,373
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 December 31, 2016 and 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 December 31, 2016 and 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)
December 31, 2016
U.S. Treasury securities	$	48,660	$	(1,435	)	$	—	$	—		$	48,660	$	(1,435	)
U.S. government agency securities	2,530		(4		)	4,034		(2		)	6,564		(6		)
Obligations of states and political subdivisions:
Obligations of states and state agencies	28,628		(404		)	753		(20		)	29,381		(424		)
Municipal bonds	42,573		(506		)	11,081		(261		)	53,654		(767		)
Total obligations of states and political subdivisions	71,201		(910		)	11,834		(281		)	83,035		(1,191		)
Residential mortgage-backed securities	788,030		(11,889		)	132,718		(4,457		)	920,748		(16,346		)
Trust preferred securities						8,009		(2,155		)	8,009		(2,155		)
Corporate and other debt securities	32,292		(294		)	15,192		(228		)	47,484		(522		)
Equity securities	—		—			14,883		(761		)	14,883		(761		)
Total	$	942,713	$	(14,532	)	$	186,670	$	(7,884	)	$	1,129,383	$	(22,416	)
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 Investments Securities Available for Sale

The contractual maturities of investments securities available for sale at December 31, 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.

	December 31, 2016
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	18,770	$	18,654
Due after one year through five years	73,904		74,158
Due after five years through ten years	114,174		112,063
Due after ten years	58,543		56,098
Residential mortgage-backed securities	1,029,827		1,015,542
Equity securities	20,505		20,858
Total investment securities available for sale	$	1,315,723	$	1,297,373

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 or loss for the years ended December 31, 2016, 2015 and 2014:

	2016			2015			2014
	(in thousands)
Balance, beginning of period	$	5,837		$	8,947		$	9,990
Accretion of credit loss impairment due to an increase in expected cash flows	(921		)	(728		)	(661		)
Sales	—			(2,382		)	(382		)
Balance, end of period	$	4,916		$	5,837		$	8,947

Gross Gains (Losses) Realized on Sales, Maturities and Other Securities Transactions Included in Earnings

Gross gains and losses realized on sales, maturities and other securities transactions included in earnings for the years ended December 31, 2016, 2015 and 2014 were as follows:

	2016			2015			2014
	(in thousands)
Sales transactions:
Gross gains	$	271		$	3,274		$	746
Gross losses	(58		)	(947		)	(2		)
	$	213		$	2,327		$	744
Maturities and other securities transactions:
Gross gains	$	615		$	293		$	10
Gross losses	(51		)	(133		)	(9		)
	$	564		$	160		$	1
Gains on securities transactions, net	$	777		$	2,487		$	745