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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2017
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 March 31, 2017 and December 31, 2016 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
March 31, 2017
 
 
 
 
 
 
 
U.S. Treasury securities
$
138,793

 
$
8,626

 
$
—

 
$
147,419

U.S. government agency securities
10,722

 
159

 
—

 
10,881

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
250,905

 
8,005

 
(1,362
)
 
257,548

Municipal bonds
287,127

 
7,335

 
(222
)
 
294,240

Total obligations of states and political subdivisions
538,032

 
15,340

 
(1,584
)
 
551,788

Residential mortgage-backed securities
1,113,413

 
7,958

 
(17,601
)
 
1,103,770

Trust preferred securities
59,810

 
32

 
(11,808
)
 
48,034

Corporate and other debt securities
41,559

 
1,072

 
—

 
42,631

Total investment securities held to maturity
$
1,902,329

 
$
33,187

 
$
(30,993
)
 
$
1,904,523

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
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 March 31, 2017 and December 31, 2016 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)
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
$
75,169

 
$
(1,362
)
 
$
—

 
$
—

 
$
75,169

 
$
(1,362
)
Municipal bonds
21,820

 
(222
)
 
—

 
—

 
21,820

 
(222
)
Total obligations of states and political subdivisions
96,989

 
(1,584
)
 
—

 
—

 
96,989

 
(1,584
)
Residential mortgage-backed securities
648,365

 
(14,179
)
 
122,764

 
(3,422
)
 
771,129

 
(17,601
)
Trust preferred securities
—

 
—

 
46,649

 
(11,808
)
 
46,649

 
(11,808
)
Total
$
745,354

 
$
(15,763
)
 
$
169,413

 
$
(15,230
)
 
$
914,767

 
$
(30,993
)
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
)
Contractual Maturities of Debt Securities Held to Maturity
The contractual maturities of investments in debt securities held to maturity at March 31, 2017 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.  
 
March 31, 2017
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
66,622

 
$
66,712

Due after one year through five years
220,086

 
229,218

Due after five years through ten years
338,507

 
353,152

Due after ten years
163,701

 
151,671

Residential mortgage-backed securities
1,113,413

 
1,103,770

Total investment securities held to maturity
$
1,902,329

 
$
1,904,523
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 March 31, 2017 and December 31, 2016 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
March 31, 2017
 
 
 
 
 
 
 
U.S. Treasury securities
$
51,014

 
$
6

 
$
(1,240
)
 
$
49,780

U.S. government agency securities
47,080

 
216

 
(21
)
 
47,275

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
39,624

 
133

 
(203
)
 
39,554

Municipal bonds
79,935

 
201

 
(528
)
 
79,608

Total obligations of states and political subdivisions
119,559

 
334

 
(731
)
 
119,162

Residential mortgage-backed securities
1,171,958

 
2,673

 
(16,567
)
 
1,158,064

Trust preferred securities*
7,848

 
—

 
(1,455
)
 
6,393

Corporate and other debt securities
62,411

 
599

 
(293
)
 
62,717

Equity securities
10,504

 
901

 
(465
)
 
10,940

Total investment securities available for sale
$
1,470,374

 
$
4,729

 
$
(20,772
)
 
$
1,454,331

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

 
*
Includes two pooled trust preferred securities, principally collateralized by securities issued by banks and insurance companies, at March 31, 2017 and December 31, 2016.
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 March 31, 2017 and December 31, 2016 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)
March 31, 2017
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
48,852

 
$
(1,240
)
 
$
—

 
$
—

 
$
48,852

 
$
(1,240
)
U.S. government agency securities
29,314

 
(18
)
 
3,940

 
(3
)
 
33,254

 
(21
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
16,778

 
(203
)
 
—

 
—

 
16,778

 
(203
)
Municipal bonds
29,738

 
(314
)
 
11,136

 
(214
)
 
40,874

 
(528
)
Total obligations of states and political subdivisions
46,516

 
(517
)
 
11,136

 
(214
)
 
57,652

 
(731
)
Residential mortgage-backed securities
732,989

 
(11,579
)
 
141,743

 
(4,988
)
 
874,732

 
(16,567
)
Trust preferred securities
—

 
—

 
6,393

 
(1,455
)
 
6,393

 
(1,455
)
Corporate and other debt securities
26,384

 
(92
)
 
15,113

 
(201
)
 
41,497

 
(293
)
Equity securities
—

 
—

 
5,179

 
(465
)
 
5,179

 
(465
)
Total
$
884,055

 
$
(13,446
)
 
$
183,504

 
$
(7,326
)
 
$
1,067,559

 
$
(20,772
)
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
)
Contractual Maturities of Investment Securities Available for Sale
The contractual maturities of investment securities available for sale at March 31, 2017 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.
 
March 31, 2017
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
24,953

 
$
24,844

Due after one year through five years
69,116

 
69,513

Due after five years through ten years
113,108

 
111,725

Due after ten years
80,735

 
79,245

Residential mortgage-backed securities
1,171,958

 
1,158,064

Equity securities
10,504

 
10,940

Total investment securities available for sale
$
1,470,374

 
$
1,454,331
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 months ended March 31, 2017 and 2016: 
 
Three Months Ended
March 31,
 
2017
 
2016
 
(in thousands)
Balance, beginning of period
$
4,916

 
$
5,837

Accretion of credit loss impairment due to an increase in expected cash flows
(149
)
 
(489
)
Balance, end of period
$
4,767

 
$
5,348