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Investment Securities
 3 Months Ended
Mar. 31, 2021
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
Equity Securities

Equity securities carried at fair value totaled $33.0 million and $29.4 million at March 31, 2021 and December 31, 2020, respectively. At March 31, 2021, Valley's equity securities consisted of one publicly traded money market mutual fund, CRA investments both publicly traded and privately held and, to a lesser extent, equity securities without readily determinable fair values.

Available for Sale Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2021 and December 31, 2020 were as follows: 
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
 (in thousands)
March 31, 2021
U.S. Treasury securities$50,027 $1,172 $— $51,199 
U.S. government agency securities22,899 1,123 (12)24,010 
Obligations of states and political subdivisions:
Obligations of states and state agencies36,075 793 — 36,868 
Municipal bonds35,223 637 (6)35,854 
Total obligations of states and political subdivisions71,298 1,430 (6)72,722 
Residential mortgage-backed securities852,398 27,254 (1,316)878,336 
Corporate and other debt securities87,960 2,076 (82)89,954 
Total $1,084,582 $33,055 $(1,416)$1,116,221 
December 31, 2020
U.S. Treasury securities$50,031 $1,362 $— $51,393 
U.S. government agency securities25,067 1,103 (13)26,157 
Obligations of states and political subdivisions:
Obligations of states and state agencies40,861 970 (32)41,799 
Municipal bonds37,489 731 (69)38,151 
Total obligations of states and political subdivisions78,350 1,701 (101)79,950 
Residential mortgage-backed securities1,050,369 40,426 (773)1,090,022 
Corporate and other debt securities89,689 2,294 (32)91,951 
Total$1,293,506 $46,886 $(919)$1,339,473 

The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2021 and December 31, 2020 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, 2021
U.S. government agency securities$— $— $1,430 $(12)$1,430 $(12)
Municipal bonds6,847 (6)— — 6,847 (6)
Residential mortgage-backed securities67,489 (984)23,251 (332)90,740 (1,316)
Corporate and other debt securities22,120 (82)— — 22,120 (82)
Total$96,456 $(1,072)$24,681 $(344)$121,137 $(1,416)
December 31, 2020
U.S. government agency securities$— $— $1,479 $(13)$1,479 $(13)
Obligations of states and political subdivisions:
Obligations of states and state agencies
— — 1,010 (32)1,010 (32)
Municipal bonds6,777 (69)— — 6,777 (69)
Total obligations of states and political subdivisions
6,777 (69)1,010 (32)7,787 (101)
Residential mortgage-backed securities41,418 (500)27,911 (273)69,329 (773)
Corporate and other debt securities12,517 (32)— — 12,517 (32)
Total$60,712 $(601)$30,400 $(318)$91,112 $(919)
Within the available for sale debt securities portfolio, the total number of security positions in an unrealized loss position was 61 and 58 at March 31, 2021 and December 31, 2020, respectively.
As of March 31, 2021, the fair value of available for sale debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $691.4 million.
The contractual maturities of available for sale debt securities at March 31, 2021 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, 2021
 Amortized
Cost		Fair
Value
 (in thousands)
Due in one year$13,361 $13,421 
Due after one year through five years77,866 79,806 
Due after five years through ten years92,143 94,029 
Due after ten years48,814 50,629 
Residential mortgage-backed securities852,398 878,336 
Total $1,084,582 $1,116,221 
Actual maturities of available for sale debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.
The weighted average remaining expected life for residential mortgage-backed securities available for sale was 3.4 years at March 31, 2021.
Impairment Analysis of Available For Sale Debt Securities

Valley's available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges by Valley as a result of the unpredictable nature of the U.S. economy and its potential negative effect on the future performance of the security issuers, including due to the economic effects of the COVID-19 pandemic.

Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Valley has evaluated available for sale debt securities that are in an unrealized loss position as of March 31, 2021 included in the table above and has determined that the declines in fair value are mainly attributable to market volatility, not credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, management recognized no impairment during the three months ended March 31, 2021 and, as a result, there was no allowance for credit losses for available for sale debt securities at March 31, 2021.
Held to Maturity Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2021 and December 31, 2020 were as follows: 
Amortized
Cost		Gross
Unrealized
Gains		Gross
Unrealized
Losses		Fair Value
 (in thousands)
March 31, 2021
U.S. Treasury securities$68,031 $6,148 $— $74,179 
U.S. government agency securities5,659 136 — 5,795 
Obligations of states and political subdivisions:
Obligations of states and state agencies254,991 6,390 (141)261,240 
Municipal bonds199,030 5,406 (2)204,434 
Total obligations of states and political subdivisions454,021 11,796 (143)465,674 
Residential mortgage-backed securities1,787,211 29,249 (18,719)1,797,741 
Trust preferred securities37,354 52 (6,678)30,728 
Corporate and other debt securities38,750 566 (72)39,244 
Total $2,391,026 $47,947 $(25,612)$2,413,361 
December 31, 2020
U.S. Treasury securities$68,126 $7,358 $— $75,484 
U.S. government agency securities6,222 291 — 6,513 
Obligations of states and political subdivisions:
Obligations of states and state agencies262,762 8,060 (105)270,717 
Municipal bonds207,497 6,292 — 213,789 
Total obligations of states and political subdivisions470,259 14,352 (105)484,506 
Residential mortgage-backed securities1,550,306 39,603 (254)1,589,655 
Trust preferred securities37,348 50 (7,365)30,033 
Corporate and other debt securities40,750 672 (1)41,421 
Total $2,173,011 $62,326 $(7,725)$2,227,612 
The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2021 and December 31, 2020 were as follows: 
 Less than
Twelve Months		More than
Twelve Months		Total
 Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses		Fair ValueUnrealized
Losses
 (in thousands)
March 31, 2021
Obligations of states and political subdivisions:
Obligations of states and state agencies
$809 $(30)$5,521 $(111)$6,330 $(141)
Municipal bonds1,328 (2)— — 1,328 (2)
Total obligations of states and political subdivisions
2,137 (32)5,521 (111)7,658 (143)
Residential mortgage-backed securities
903,746 (18,713)1,838 (6)905,584 (18,719)
Trust preferred securities— — 29,322 (6,678)29,322 (6,678)
Corporate and other debt securities2,928 (72)— — 2,928 (72)
Total$908,811 $(18,817)$36,681 $(6,795)$945,492 $(25,612)
December 31, 2020
Obligations of states and state agencies$5,546 $(105)$— $— $5,546 $(105)
Residential mortgage-backed securities
21,599 (245)2,470 (9)24,069 (254)
Trust preferred securities— — 28,630 (7,365)28,630 (7,365)
Corporate and other debt securities
10,749 (1)— — 10,749 (1)
Total$37,894 $(351)$31,100 $(7,374)$68,994 $(7,725)

Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 39 and 13 at March 31, 2021 and December 31, 2020, respectively.
As of March 31, 2021, the fair value of debt securities held to maturity that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $1.5 billion.
The contractual maturities of investments in debt securities held to maturity at March 31, 2021 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, 2021
 Amortized
Cost		Fair
Value
 (in thousands)
Due in one year$26,173 $26,306 
Due after one year through five years228,929 239,320 
Due after five years through ten years149,406 152,366 
Due after ten years199,307 197,628 
Residential mortgage-backed securities1,787,211 1,797,741 
Total$2,391,026 $2,413,361 
Actual maturities of held to maturity debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.
The weighted-average remaining expected life for residential mortgage-backed securities held to maturity was 5.8 years at March 31, 2021.
Credit Quality Indicators
Valley monitors the credit quality of the held to maturity debt securities through the use of the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2021 and December 31, 2020.
AAA/AA/A RatedBBB ratedNon-investment grade ratedNon-ratedTotal
 (in thousands)
March 31, 2021
U.S. Treasury securities$68,031 $— $— $— $68,031 
U.S. government agency securities5,659 — — — 5,659 
Obligations of states and political subdivisions:
Obligations of states and state agencies222,683 — 5,632 26,676 254,991 
Municipal bonds157,212 — — 41,818 199,030 
Total obligations of states and political subdivisions
379,895 — 5,632 68,494 454,021 
Residential mortgage-backed securities1,787,211 — — — 1,787,211 
Trust preferred securities— — — 37,354 37,354 
Corporate and other debt securities— 8,000 — 30,750 38,750 
Total $2,240,796 $8,000 $5,632 $136,598 $2,391,026 
December 31, 2020
U.S. Treasury securities$68,126 $— $— $— $68,126 
U.S. government agency securities6,222 — — — 6,222 
Obligations of states and political subdivisions:
Obligations of states and state agencies228,286 — 5,650 28,826 262,762 
Municipal bonds166,408 — — 41,089 207,497 
Total obligations of states and political subdivisions
394,694 — 5,650 69,915 470,259 
Residential mortgage-backed securities1,550,306 — — — 1,550,306 
Trust preferred securities— — — 37,348 37,348 
Corporate and other debt securities— 5,000 — 35,750 40,750 
Total investment securities held to maturity$2,019,348 $5,000 $5,650 $143,013 $2,173,011 

Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At March 31, 2021, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the "non-rated" category included TEMS securities secured by Ginnie Mae securities. Trust preferred securities consist of non-rated single-issuer securities, issued by bank holding companies. Corporate bonds consist of debt primarily issued by banks.

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds called TEMS.

At March 31, 2021, held to maturity debt securities were carried net of allowance for credit losses totaling $1.1 million and $1.4 million at March 31, 2021 and December 31, 2020, respectively. Valley recorded a credit
(negative) provision for credit losses of $358 thousand for the three months ended March 31, 2021 and a provision for credit losses of $759 thousand for the three months ended March 31, 2020. There were no net charge-offs of debt securities in the respective periods.