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Investment Securities
6 Months Ended
Jun. 30, 2025
Investments, Debt and Equity Securities [Abstract]  
Investment Securities Investment Securities
Equity Securities
Equity securities totaled $77.4 million and $71.5 million at June 30, 2025 and December 31, 2024, respectively. See Note 5 for further details on equity securities.
Available for Sale Debt Securities
The amortized cost, gross unrealized gains and losses, and fair value of AFS debt securities at June 30, 2025 and December 31, 2024 were as follows: 
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair Value
 (in thousands)
June 30, 2025
U.S. Treasury securities$322,493 $— $(24,423)$298,070 
U.S. government agency securities23,849 25 (1,471)22,403 
Obligations of states and political subdivisions:
Obligations of states and state agencies45,650 — (836)44,814 
Municipal bonds180,577 — (41,114)139,463 
Total obligations of states and political subdivisions226,227 — (41,950)184,277 
Residential mortgage-backed securities3,243,118 25,456 (79,761)3,188,813 
Corporate and other debt securities214,410 489 (12,257)202,642 
Total $4,030,097 $25,970 $(159,862)$3,896,205 
December 31, 2024
U.S. Treasury securities$319,551 $— $(28,002)$291,549 
U.S. government agency securities24,636 20 (2,113)22,543 
Obligations of states and political subdivisions:
Obligations of states and state agencies46,211 — (682)45,529 
Municipal bonds179,284 — (32,304)146,980 
Total obligations of states and political subdivisions225,495 — (32,986)192,509 
Residential mortgage-backed securities2,784,895 3,796 (107,615)2,681,076 
Corporate and other debt securities197,696 247 (15,896)182,047 
Total$3,552,273 $4,063 $(186,612)$3,369,724 

Accrued interest on investments, which is excluded from the amortized cost of AFS debt securities, totaled $15.4 million and $13.1 million at June 30, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.
The age of unrealized losses and fair value of the related AFS debt securities at June 30, 2025 and December 31, 2024 were as follows: 
 Less than 12 MonthsMore than 12 MonthsTotal
 Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
Fair
Value
Unrealized
Losses
 (in thousands)
June 30, 2025
U.S. Treasury securities$— $— $298,070 $(24,423)$298,070 $(24,423)
U.S. government agency securities— — 21,179 (1,471)21,179 (1,471)
Obligations of states and political subdivisions:
Obligations of states and state agencies
— — 5,744 (836)5,744 (836)
Municipal bonds— — 131,768 (41,114)131,768 (41,114)
Total obligations of states and political subdivisions
— — 137,512 (41,950)137,512 (41,950)
Residential mortgage-backed securities674,361 (7,204)505,120 (72,557)1,179,481 (79,761)
Corporate and other debt securities4,628 (372)166,024 (11,885)170,652 (12,257)
Total$678,989 $(7,576)$1,127,905 $(152,286)$1,806,894 $(159,862)
December 31, 2024
U.S. Treasury securities$— $— $291,549 $(28,002)$291,549 $(28,002)
U.S. government agency securities— — 21,281 (2,113)21,281 (2,113)
Obligations of states and political subdivisions:
Obligations of states and state agencies
— — 6,208 (682)6,208 (682)
Municipal bonds— — 139,216 (32,304)139,216 (32,304)
Total obligations of states and political subdivisions
— — 145,424 (32,986)145,424 (32,986)
Residential mortgage-backed securities1,483,442 (22,242)501,858 (85,373)1,985,300 (107,615)
Corporate and other debt securities— — 166,800 (15,896)166,800 (15,896)
Total$1,483,442 $(22,242)$1,126,912 $(164,370)$2,610,354 $(186,612)
Within the AFS debt securities portfolio, the total number of security positions in an unrealized loss position was 661 and 726 at June 30, 2025 and December 31, 2024, respectively.    
As of June 30, 2025, the fair value of AFS securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $1.0 billion.
Contractual Maturities
The contractual maturities of AFS debt securities at June 30, 2025 are set forth in the following table. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Residential mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties.
 June 30, 2025
 Amortized
Cost
Fair
Value
 (in thousands)
Due in one year$179,139 $177,670 
Due after one year through five years140,847 137,361 
Due after five years through ten years175,717 162,664 
Due after ten years291,276 229,697 
Residential mortgage-backed securities3,243,118 3,188,813 
Total $4,030,097 $3,896,205 
The weighted average remaining expected life for AFS residential mortgage-backed securities was 8.39 years at June 30, 2025.
Impairment Analysis of Available For Sale Debt Securities
Valley's AFS 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 due to a variety of factors such as the unpredictable nature of the U.S. economy and its potential negative effect on the future performance of the security issuers.
AFS debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Valley also evaluated AFS debt securities that were in an unrealized loss position as of June 30, 2025 included in the tables above and has determined that the declines in fair value are mainly attributable to interest rates, credit spreads, market volatility and liquidity conditions, not credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, there was no impairment recognized during the three and six months ended June 30, 2025 and 2024.
Valley does not intend to sell any of its AFS debt securities in an unrealized loss position prior to recovery of their amortized cost basis, and it is more likely than not that Valley will not be required to sell any of its securities prior to recovery of their amortized cost basis. None of the AFS debt securities were past due as of June 30, 2025. As a result, there was no allowance for credit losses for AFS debt securities at June 30, 2025 and December 31, 2024.
Held to Maturity Debt Securities
The amortized cost, gross unrealized gains and losses and fair value of HTM debt securities at June 30, 2025 and December 31, 2024 were as follows: 
Amortized
Cost
Gross
Unrealized
Gains
Gross
Unrealized
Losses
Fair ValueAllowance for Credit LossesNet Carrying Value
 (in thousands)
June 30, 2025
U.S. Treasury securities$25,095 $— $(16)$25,079 $— $25,095 
U.S. government agency securities297,057 (43,324)253,739 — 297,057 
Obligations of states and political subdivisions:
Obligations of states and state agencies64,729 167 (4,457)60,439 64,728 
Municipal bonds293,648 13 (25,606)268,055 74 293,574 
Total obligations of states and political subdivisions358,377 180 (30,063)328,494 75 358,302 
Residential mortgage-backed securities2,731,797 6,564 (367,800)2,370,561 — 2,731,797 
Trust preferred securities36,092 — (6,364)29,728 408 35,684 
Corporate and other debt securities83,143 (2,344)80,800 154 82,989 
Total $3,531,561 $6,751 $(449,911)$3,088,401 $637 $3,530,924 
December 31, 2024
U.S. Treasury securities$25,480 $— $(19)$25,461 $— $25,480 
U.S. government agency securities301,315 — (49,013)252,302 — 301,315 
Obligations of states and political subdivisions:
Obligations of states and state agencies
68,025 — (5,335)62,690 68,023 
Municipal bonds304,464 (20,802)283,671 48 304,416 
Total obligations of states and political subdivisions372,489 (26,137)346,361 50 372,439 
Residential mortgage-backed securities2,710,642 2,088 (420,582)2,292,148 — 2,710,642 
Trust preferred securities36,081 — (6,936)29,145 414 35,667 
Corporate and other debt securities86,213 10 (3,356)82,867 183 86,030 
Total $3,532,220 $2,107 $(506,043)$3,028,284 $647 $3,531,573 
Accrued interest on investments, which is excluded from the amortized cost of HTM debt securities, totaled $13.0 million at both June 30, 2025 and December 31, 2024, and is presented within total accrued interest receivable on the consolidated statements of financial condition. HTM debt securities are carried net of an allowance for credit losses (as shown in the table above).
The age of unrealized losses and fair value of related HTM debt securities at June 30, 2025 and December 31, 2024 were as follows: 
 Less than 12 MonthsMore than 12 MonthsTotal
 Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
Fair ValueUnrealized
Losses
 (in thousands)
June 30, 2025
U.S. Treasury securities$25,079 $(16)$— $— $25,079 $(16)
U.S. government agency securities— — 234,270 (43,324)234,270 (43,324)
Obligations of states and political subdivisions:
Obligations of states and state agencies5,762 (191)41,766 (4,266)47,528 (4,457)
Municipal bonds27,598 (444)186,299 (25,162)213,897 (25,606)
Total obligations of states and political subdivisions
33,360 (635)228,065 (29,428)261,425 (30,063)
Residential mortgage-backed securities
59,062 (859)1,876,157 (366,941)1,935,219 (367,800)
Trust preferred securities— — 29,728 (6,364)29,728 (6,364)
Corporate and other debt securities17,960 (40)57,838 (2,304)75,798 (2,344)
Total$135,461 $(1,550)$2,426,058 $(448,361)$2,561,519 $(449,911)
December 31, 2024
U.S. Treasury securities$25,461 $(19)$— $— $25,461 $(19)
U.S. government agency securities22,621 (75)229,143 (48,938)251,764 (49,013)
Obligations of states and political subdivisions:
Obligations of states and state agencies20,632 (517)42,058 (4,818)62,690 (5,335)
Municipal bonds36,766 (440)210,723 (20,362)247,489 (20,802)
Total obligations of states and political subdivisions
57,398 (957)252,781 (25,180)310,179 (26,137)
Residential mortgage-backed securities
216,651 (2,687)1,917,644 (417,895)2,134,295 (420,582)
Trust preferred securities— — 29,145 (6,936)29,145 (6,936)
Corporate and other debt securities
5,977 (23)63,879 (3,333)69,856 (3,356)
Total$328,108 $(3,761)$2,492,592 $(502,282)$2,820,700 $(506,043)
Within the HTM securities portfolio, the total number of security positions in an unrealized loss position was 737 and 798 at June 30, 2025 and December 31, 2024, respectively.
As of June 30, 2025, the fair value of HTM debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law was $1.2 billion.
Contractual Maturities
The contractual maturities of investments in HTM debt securities at June 30, 2025 is set forth in the table below. Contractual maturities may differ from actual maturities as borrowers may have the right to call or repay obligations with or without call or prepayment penalties. Residential mortgage-backed securities are not included in the maturity categories in the following maturity summary as actual maturities may differ from contractual maturities because the underlying mortgages may be called or prepaid without penalties.
 June 30, 2025
 Amortized
Cost
Fair
Value
 (in thousands)
Due in one year$63,269 $63,061 
Due after one year through five years49,356 48,874 
Due after five years through ten years164,449 156,160 
Due after ten years522,690 449,745 
Residential mortgage-backed securities2,731,797 2,370,561 
Total$3,531,561 $3,088,401 
The weighted-average remaining expected life for HTM residential mortgage-backed securities was 9.13 years at June 30, 2025.
Credit Quality Indicators
Valley monitors the credit quality of the HTM debt securities utilizing the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of HTM debt securities by external credit rating at June 30, 2025 and December 31, 2024.
AAA/AA/A RatedBBB ratedNon-ratedTotal
 (in thousands)
June 30, 2025
U.S. Treasury securities$25,095 $— $— $25,095 
U.S. government agency securities297,057 — — 297,057 
Obligations of states and political subdivisions:
Obligations of states and state agencies49,610 — 15,119 64,729 
Municipal bonds255,035 — 38,613 293,648 
Total obligations of states and political subdivisions
304,645 — 53,732 358,377 
Residential mortgage-backed securities2,731,797 — — 2,731,797 
Trust preferred securities— — 36,092 36,092 
Corporate and other debt securities— 6,000 77,143 83,143 
Total $3,358,594 $6,000 $166,967 $3,531,561 
December 31, 2024
U.S. Treasury securities$25,480 $— $— $25,480 
U.S. government agency securities301,315 — — 301,315 
Obligations of states and political subdivisions:
Obligations of states and state agencies52,770 — 15,255 68,025 
Municipal bonds277,921 — 26,543 304,464 
Total obligations of states and political subdivisions
330,691 — 41,798 372,489 
Residential mortgage-backed securities2,710,642 — — 2,710,642 
Trust preferred securities— — 36,081 36,081 
Corporate and other debt securities— 6,000 80,213 86,213 
Total$3,368,128 $6,000 $158,092 $3,532,220 
Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At June 30, 2025, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the “non-rated” category included municipal bonds 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 zero loss expectation for certain securities within the HTM 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 security 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. To measure the expected credit losses on HTM debt securities that have loss expectations, Valley estimates the expected credit losses using a discounted cash flow model developed by a third-party.
The following table details the activity in the allowance for credit losses for HTM securities for the three and six months ended June 30, 2025 and 2024: 
Three Months Ended
June 30,
Six Months Ended
June 30,
2025202420252024
(in thousands)
Beginning balance$633 $1,131 $647 $1,205 
Provision (credit) for credit losses(41)(10)(115)
Ending balance$637 $1,090 $637 $1,090 
There were no net charge-offs of HTM debt securities in the respective periods presented in the table above.