Document and Entity Information
Document and Entity Information - shares | 6 Months Ended | |
Jun. 30, 2017 | Aug. 03, 2017 | |
Document And Entity Information [Abstract] | ||
Document Type | 10-Q | |
Amendment Flag | false | |
Document Period End Date | Jun. 30, 2017 | |
Document Fiscal Year Focus | 2,017 | |
Document Fiscal Period Focus | Q2 | |
Trading Symbol | VLY | |
Entity Registrant Name | VALLEY NATIONAL BANCORP | |
Entity Central Index Key | 714,310 | |
Current Fiscal Year End Date | --12-31 | |
Entity Filer Category | Large Accelerated Filer | |
Entity Common Stock, Shares Outstanding | 264,029,734 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Assets | ||
Cash and due from banks | $ 227,830 | $ 220,791 |
Interest bearing deposits with banks | 129,959 | 171,710 |
Investment securities: | ||
Held to maturity (fair value of $1,828,732 at June 30, 2017 and $1,924,597 at December 31, 2016) | 1,822,263 | 1,925,572 |
Available for sale | 1,464,054 | 1,297,373 |
Total investment securities | 3,286,317 | 3,222,945 |
Loans held for sale (includes fair value of $17,919 at June 30, 2017 and $57,708 at December 31, 2016 for loans originated for sale) | 139,576 | 57,708 |
Loans | 17,710,760 | 17,236,103 |
Less: Allowance for loan losses | (116,446) | (114,419) |
Net loans | 17,594,314 | 17,121,684 |
Premises and equipment, net | 290,001 | 291,180 |
Bank owned life insurance | 393,997 | 391,830 |
Accrued interest receivable | 69,732 | 66,816 |
Goodwill | 690,637 | 690,637 |
Other intangible assets, net | 43,700 | 45,484 |
Other assets | 583,287 | 583,654 |
Total Assets | 23,449,350 | 22,864,439 |
Deposits: | ||
Non-interest bearing | 5,197,997 | 5,252,825 |
Interest bearing: | ||
Savings, NOW and money market | 8,683,028 | 9,339,012 |
Time | 3,368,993 | 3,138,871 |
Total deposits | 17,250,018 | 17,730,708 |
Short-term borrowings | 1,734,444 | 1,080,960 |
Long-term borrowings | 1,819,615 | 1,433,906 |
Junior subordinated debentures issued to capital trusts | 41,658 | 41,577 |
Accrued expenses and other liabilities | 179,714 | 200,132 |
Total Liabilities | 21,025,449 | 20,487,283 |
Shareholders’ Equity | ||
Preferred stock (no par value, authorized 50,000,000 shares at June 30, 2017; issued 4,600,000 shares at June 30, 2017 and December 31, 2016) | 111,590 | 111,590 |
Common stock (no par value, authorized 450,000,000 shares at June 30, 2017; issued 263,990,794 shares at June 30, 2017 and 263,804,877 shares at December 31, 2016) | 92,423 | 92,353 |
Surplus | 2,049,613 | 2,044,401 |
Retained earnings | 207,177 | 172,754 |
Accumulated other comprehensive loss | (36,679) | (42,093) |
Treasury stock, at cost (19,028 common shares at June 30, 2017 and 166,047 shares at December 31, 2016) | (223) | (1,849) |
Total Shareholders’ Equity | 2,423,901 | 2,377,156 |
Total Liabilities and Shareholders’ Equity | $ 23,449,350 | $ 22,864,439 |
CONSOLIDATED STATEMENTS OF FIN3
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Statement of Financial Position [Abstract] | ||
Investment securities held to maturity: | $ 1,828,732 | $ 1,924,597 |
Loans held for sale, fair value | $ 17,919 | $ 57,708 |
Preferred stock, par value (usd per share) | ||
Preferred stock, shares authorized (in shares) | 50,000,000 | |
Preferred stock, shares issued (in shares) | 4,600,000 | 4,600,000 |
Common stock, par value (usd per share) | ||
Common stock, shares authorized (in shares) | 450,000,000 | |
Common stock, shares issued (in shares) | 263,990,794 | 263,804,877 |
Treasury stock, shares (in shares) | 19,028 | 166,047 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Interest Income | ||||
Interest and fees on loans | $ 185,860 | $ 169,426 | $ 360,874 | $ 335,497 |
Interest and dividends on investment securities: | ||||
Taxable | 18,928 | 14,256 | 36,517 | 28,255 |
Tax-exempt | 3,943 | 3,734 | 7,974 | 7,424 |
Dividends | 2,137 | 1,316 | 4,288 | 2,796 |
Interest on federal funds sold and other short-term investments | 279 | 296 | 610 | 653 |
Total interest income | 211,147 | 189,028 | 410,263 | 374,625 |
Interest on deposits: | ||||
Savings, NOW and money market | 12,714 | 9,961 | 22,897 | 19,204 |
Time | 10,166 | 9,223 | 19,719 | 18,808 |
Interest on short-term borrowings | 5,516 | 3,120 | 9,417 | 4,992 |
Interest on long-term borrowings and junior subordinated debentures | 13,791 | 15,269 | 26,741 | 32,013 |
Total interest expense | 42,187 | 37,573 | 78,774 | 75,017 |
Net Interest Income | 168,960 | 151,455 | 331,489 | 299,608 |
Provision for credit losses | 3,632 | 1,429 | 6,102 | 2,229 |
Net Interest Income After Provision for Credit Losses | 165,328 | 150,026 | 325,387 | 297,379 |
Non-Interest Income | ||||
Trust and investment services | 2,800 | 2,544 | 5,544 | 4,984 |
Insurance commissions | 4,358 | 4,845 | 9,419 | 9,553 |
Service charges on deposit accounts | 5,342 | 5,094 | 10,578 | 10,197 |
Gains (losses) on securities transactions, net | 22 | (3) | (1) | 268 |
Fees from loan servicing | 1,831 | 1,561 | 3,646 | 3,155 |
Gains on sales of loans, net | 4,791 | 3,105 | 8,919 | 4,900 |
Bank owned life insurance | 1,701 | 1,818 | 4,164 | 3,781 |
Other | 3,845 | 5,300 | 7,480 | 8,874 |
Total non-interest income | 24,690 | 24,264 | 49,749 | 45,712 |
Non-Interest Expense | ||||
Salary and employee benefits expense | 61,338 | 56,072 | 125,054 | 116,331 |
Net occupancy and equipment expense | 22,609 | 22,168 | 45,644 | 44,957 |
FDIC insurance assessment | 4,928 | 5,095 | 10,055 | 10,194 |
Amortization of other intangible assets | 2,562 | 2,928 | 5,098 | 5,777 |
Professional and legal fees | 4,302 | 5,472 | 8,997 | 9,367 |
Amortization of tax credit investments | 7,732 | 7,646 | 13,056 | 14,910 |
Telecommunication expense | 2,707 | 2,294 | 5,366 | 4,680 |
Other | 13,061 | 18,128 | 26,921 | 31,812 |
Total non-interest expense | 119,239 | 119,803 | 240,191 | 238,028 |
Income Before Income Taxes | 70,779 | 54,487 | 134,945 | 105,063 |
Income tax expense | 20,714 | 15,460 | 38,785 | 29,849 |
Net Income | 50,065 | 39,027 | 96,160 | 75,214 |
Dividends on preferred stock | 1,797 | 1,797 | 3,594 | 3,594 |
Net Income Available to Common Shareholders | $ 48,268 | $ 37,230 | $ 92,566 | $ 71,620 |
Earnings Per Common Share: | ||||
Basic (usd per share) | $ 0.18 | $ 0.15 | $ 0.35 | $ 0.28 |
Diluted (usd per share) | 0.18 | 0.15 | 0.35 | 0.28 |
Cash Dividends Declared per Common Share (usd per share) | $ 0.11 | $ 0.11 | $ 0.22 | $ 0.22 |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic (in shares) | 263,958,292 | 254,381,170 | 263,878,103 | 254,228,260 |
Diluted (in shares) | 264,778,242 | 254,771,213 | 264,662,863 | 254,575,873 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 50,065 | $ 39,027 | $ 96,160 | $ 75,214 |
Unrealized gains and losses on available for sale securities | ||||
Net gains (losses) arising during the period | 1,896 | (635) | 3,203 | 7,648 |
Less reclassification adjustment for net (gains) losses included in net income | (13) | 2 | 0 | (168) |
Total | 1,883 | (633) | 3,203 | 7,480 |
Non-credit impairment losses on available for sale securities | ||||
Net change in non-credit impairment losses on securities | 21 | 301 | 134 | 242 |
Less reclassification adjustment for accretion of credit impairment losses included in net income | (39) | 0 | (126) | (286) |
Total | (18) | 301 | 8 | (44) |
Unrealized gains and losses on derivatives (cash flow hedges) | ||||
Net losses on derivatives arising during the period | (873) | (2,122) | (746) | (8,674) |
Less reclassification adjustment for net losses included in net income | 1,356 | 2,107 | 2,831 | 3,848 |
Total | 483 | (15) | 2,085 | (4,826) |
Defined benefit pension plan | ||||
Amortization of net loss | 59 | 43 | 118 | 86 |
Total other comprehensive income | 2,407 | (304) | 5,414 | 2,696 |
Total comprehensive income | $ 52,472 | $ 38,723 | $ 101,574 | $ 77,910 |
Consolidated Statements of Cash
Consolidated Statements of Cash Flows - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2017 | Jun. 30, 2016 | |
Cash flows from operating activities: | ||
Net income | $ 96,160 | $ 75,214 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 12,549 | 12,440 |
Stock-based compensation | 6,872 | 5,184 |
Provision for credit losses | 6,102 | 2,229 |
Net amortization of premiums and accretion of discounts on securities and borrowings | 11,366 | 7,047 |
Amortization of other intangible assets | 5,098 | 5,777 |
Losses (gains) on securities transactions, net | 1 | (268) |
Proceeds from sales of loans held for sale | 303,268 | 185,577 |
Gains on sales of loans, net | (8,919) | (4,900) |
Originations of loans held for sale | (154,475) | (171,123) |
Losses (gains) on sales of assets, net | 453 | (699) |
Net change in: | ||
Fair value of borrowings hedged by derivative transactions | 0 | 6,779 |
Cash surrender value of bank owned life insurance | (4,164) | (3,781) |
Accrued interest receivable | (2,916) | (1,639) |
Other assets | (1,521) | (17,932) |
Accrued expenses and other liabilities | (20,709) | (743) |
Net cash provided by operating activities | 249,165 | 99,162 |
Cash flows from investing activities: | ||
Net loan originations and purchases | (707,654) | (459,154) |
Investment securities held to maturity: | ||
Purchases | (60,230) | (309,507) |
Maturities, calls and principal repayments | 157,351 | 134,389 |
Investment securities available for sale: | ||
Purchases | (252,770) | (432,530) |
Sales | 0 | 2,081 |
Maturities, calls and principal repayments | 87,188 | 760,312 |
Death benefit proceeds from bank owned life insurance | 1,998 | 0 |
Proceeds from sales of real estate property and equipment | 6,822 | 9,146 |
Purchases of real estate property and equipment | (12,976) | (15,353) |
Net cash used in investing activities | (780,271) | (310,616) |
Cash flows from financing activities: | ||
Net change in deposits | (480,690) | 102,507 |
Net change in short-term borrowings | 653,484 | 334,853 |
Proceeds from issuance of long-term borrowings, net | 560,000 | 0 |
Repayments of long-term borrowings | (175,000) | (269,000) |
Cash dividends paid to preferred shareholders | (3,594) | (3,594) |
Cash dividends paid to common shareholders | (58,000) | (55,857) |
Purchase of common shares to treasury | (2,183) | (1,615) |
Common stock issued, net | 2,377 | 3,491 |
Net cash provided by financing activities | 496,394 | 110,785 |
Net change in cash and cash equivalents | (34,712) | (100,669) |
Cash and cash equivalents at beginning of year | 392,501 | 413,800 |
Cash and cash equivalents at end of period | 357,789 | 313,131 |
Cash payments for: | ||
Interest on deposits and borrowings | 100,380 | 76,693 |
Federal and state income taxes | 7,683 | 12,964 |
Supplemental schedule of non-cash investing activities: | ||
Transfer of loans to other real estate owned | 5,865 | 2,899 |
Transfer of loans to loans held for sale | $ 225,541 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Policies [Abstract] | |
Basis of Presentation | Basis of Presentation The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey corporation ("Valley"), include the accounts of its commercial bank subsidiary, Valley National Bank (the “Bank”), and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations and cash flows at June 30, 2017 and for all periods presented have been made. The results of operations for the three and six months ended June 30, 2017 are not necessarily indicative of the results to be expected for the entire fiscal year. In preparing the unaudited consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the allowance for loan losses; the evaluation of goodwill and other intangible assets, and investment securities for impairment; fair value measurements of assets and liabilities; and income taxes. Estimates and assumptions are reviewed periodically and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2016 . On April 27, 2017, Valley's shareholders approved an amendment to Valley's Restated Certificate of Incorporation to increase the authorized shares of common stock and preferred stock to 450,000,000 shares and 50,000,000 shares, respectively. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Earnings Per Common Share | Earnings Per Common Share The following table shows the calculation of both basic and diluted earnings per common share for the three and six months ended June 30, 2017 and 2016 . Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands, except for share data) Net income available to common shareholders $ 48,268 $ 37,230 $ 92,566 $ 71,620 Basic weighted average number of common shares outstanding 263,958,292 254,381,170 263,878,103 254,228,260 Plus: Common stock equivalents 819,950 390,043 784,760 347,613 Diluted weighted average number of common shares outstanding 264,778,242 254,771,213 264,662,863 254,575,873 Earnings per common share: Basic $ 0.18 $ 0.15 $ 0.35 $ 0.28 Diluted 0.18 0.15 0.35 0.28 Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of performance-based restricted stock units, common stock options and warrants to purchase Valley’s common shares. Common stock options and warrants with exercise prices that exceed the average market price of Valley’s common stock during the periods presented have an anti-dilutive effect on the diluted earnings per common share calculation and therefore are excluded from the diluted earnings per share calculation. Anti-dilutive common stock options and warrants equaled approximately 3.3 million shares for both the three and six months ended June 30, 2017 and 4.6 million shares for both the three and six months ended June 30, 2016 , respectively. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Accumulated Other Comprehensive Loss | Accumulated Other Comprehensive Loss The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three and six months ended June 30, 2017 . Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at March 31, 2017 $ (8,774 ) $ (616 ) $ (10,862 ) $ (18,834 ) $ (39,086 ) Other comprehensive income before reclassifications 1,896 21 (873 ) — 1,044 Amounts reclassified from other comprehensive income (13 ) (39 ) 1,356 59 1,363 Other comprehensive income, net 1,883 (18 ) 483 59 2,407 Balance at June 30, 2017 $ (6,891 ) $ (634 ) $ (10,379 ) $ (18,775 ) $ (36,679 ) Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at December 31, 2016 $ (10,094 ) $ (642 ) $ (12,464 ) $ (18,893 ) $ (42,093 ) Other comprehensive income before reclassifications 3,203 134 (746 ) — 2,591 Amounts reclassified from other comprehensive income — (126 ) 2,831 118 2,823 Other comprehensive income, net 3,203 8 2,085 118 5,414 Balance at June 30, 2017 $ (6,891 ) $ (634 ) $ (10,379 ) $ (18,775 ) $ (36,679 ) The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three and six months ended June 30, 2017 and 2016 . Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2017 2016 2017 2016 Income Statement Line Item (in thousands) Unrealized gains (losses) on AFS securities before tax 22 $ (3 ) (1 ) 268 Gains (losses) on securities transactions, net Tax effect (9 ) 1 1 (100 ) Total net of tax 13 (2 ) — 168 Non-credit impairment losses on AFS securities before tax: Accretion of credit loss impairment due to an increase in expected cash flows 67 — 215 489 Interest and dividends on investment securities (taxable) Tax effect (28 ) — (89 ) (203 ) Total net of tax 39 — 126 286 Unrealized losses on derivatives (cash flow hedges) before tax (2,314 ) (3,597 ) (4,832 ) (6,568 ) Interest expense Tax effect 958 1,490 2,001 2,720 Total net of tax (1,356 ) (2,107 ) (2,831 ) (3,848 ) Defined benefit pension plan: Amortization of net loss (101 ) (72 ) (202 ) (144 ) * Tax effect 42 29 84 58 Total net of tax (59 ) (43 ) (118 ) (86 ) Total reclassifications, net of tax $ (1,363 ) $ (2,152 ) $ (2,823 ) $ (3,480 ) * Amortization of net loss is included in the computation of net periodic pension cost. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance Accounting Standards Update (ASU) No. 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities" shortens the amortization period for certain callable debt securities held at a premium. ASU No. 2017-08 requires the premium to be amortized to the earliest call date. The accounting for securities held at a discount does not change and the discount continues to be amortized as an adjustment to yield over the contractual life (to maturity) of the instrument. ASU No. 2017-08 is effective for Valley for the annual and interim reporting periods beginning January 1, 2018 with early adoption permitted, and is to be applied retrospectively. ASU No. 2017-08 is not expected to have a significant impact on Valley's consolidated financial statements. ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" requires service cost to be reported in the same financial statement line item(s) as other current employee compensation costs. All other components of expense must be presented separately from service cost, and outside any subtotal of income from operations. Only the service cost component of expense is eligible to be capitalized. ASU No. 2017-07 is effective for Valley for its annual and interim reporting periods beginning January1, 2018 with early adoption permitted. ASU No. 2017-07 is not expected to have a significant impact on the presentation on Valley's consolidated financial statements. ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test guidance) to measure a goodwill impairment charge. Instead, an entity will be required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current guidance). In addition, ASU No. 2017-04 eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. However, an entity will be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for Valley for its annual or any interim goodwill impairment tests in fiscal years beginning January 1, 2020 and is not expected to have a significant impact on the presentation of Valley's consolidated financial statements. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" clarifies on how certain cash receipts and cash payments should be classified and presented in the statement of cash flow. The ASU No. 2016-15 includes guidance on eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for Valley for annual and interim reporting periods beginning January 1, 2018 and it should be applied using a retrospective transition method to each period presented. ASU No. 2016-15 is not expected to have a significant impact on the presentation of Valley's consolidated statements of cash flows. ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" amends the accounting guidance on the impairment of financial instruments. The ASU No. 2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 is effective for Valley for reporting periods beginning January 1, 2020. Management is currently evaluating the impact of the ASU on Valley’s consolidated financial statements. Valley expects that the new guidance will result in an increase in its allowance for credit losses due to several factors, including: (i) the allowance related to Valley loans will increase to include credit losses over the full remaining expected life of the portfolio, and will consider expected future changes in macroeconomic conditions, (ii) the nonaccretable difference (as defined in Note 7) on PCI loans will be recognized as an allowance, offset by an increase in the carrying value of the related loans, and (iii) an allowance will be established for estimated credit losses on investment securities classified as held to maturity. The extent of the increase is under evaluation, but will depend upon the nature and characteristics of the Valley's loan and investment portfolios at the adoption date, and the economic conditions and forecasts at that date. ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" simplifies several aspects of the stock compensation guidance in Topic 718 and other related guidance. The amendments focus on income tax accounting upon vesting or exercise of share-based payments, award classification, liability classification exception for statutory tax withholding requirements, recognition methods for forfeitures within stock compensation expense, and the cash flow presentation. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. ASU No. 2016-09 became effective for Valley for reporting periods after January 1, 2017 and did not have a significant impact on Valley's consolidated financial statements. At adoption, Valley elected to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using the prospective transition method. Valley also elected to continue to estimate the forfeitures of stock awards as a component of total stock compensation expense based on the number of awards that are expected to vest. ASU No. 2016-02, “Leases (Topic 842)” requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for Valley for reporting periods beginning January 1, 2019, with an early adoption permitted. Valley must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Management is currently evaluating the impact of Topic 842 on Valley’s consolidated financial statements by reviewing its existing lease contracts and service contracts that may include embedded leases. Valley expects a gross-up of its consolidated statements of financial condition as a result of recognizing lease liabilities and right of use assets; the extent of such gross-up is under evaluation. Valley does not expect material changes to the recognition of operating lease expense in its consolidated statements of income. ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities” requires that: (i) equity investments with readily determinable fair values must be measured at fair value with changes in fair value recognized in net income, (ii) equity investments without readily determinable fair values must be measured at either fair value or at cost adjusted for changes in observable prices minus impairment with changes in value under either of these methods recognized in net income, (iii) entities that record financial liabilities at fair value due to a fair value option election must recognize changes in fair value in other comprehensive income if it is related to instrument-specific credit risk, and (iv) entities must assess whether a valuation allowance is required for deferred tax assets related to available-for-sale debt securities. ASU No. 2016-01 is effective for Valley for reporting periods beginning January 1, 2018 and is not expected to have a material effect on Valley’s consolidated financial statements. ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" implements a common revenue standard that clarifies the principles for recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In 2016, the Financial Accounting Standards Board issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” and ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing,” to further clarify the new guidance under Topic 606. ASU No. 2014-09 and its aforementioned amendments are effective on January 1, 2018. While Valley has not identified any material changes in the timing of revenue recognition under the new guidance, its review is ongoing. However, Valley does not expect the new revenue guidance to have a significant impact on its consolidated financial statements. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: Level 1 Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date. Level 2 Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets), for substantially the full term of the asset or liability. Level 3 Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis The following tables present the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at June 30, 2017 and December 31, 2016 . The assets presented under “nonrecurring fair value measurements” in the table below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). June 30, Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 50,097 $ 50,097 $ — $ — U.S. government agency securities 46,368 — 46,368 — Obligations of states and political subdivisions 119,194 — 119,194 — Residential mortgage-backed securities 1,163,720 — 1,154,868 8,852 Trust preferred securities 6,219 — 4,341 1,878 Corporate and other debt securities 67,674 7,956 59,718 — Equity securities 10,782 920 9,862 — Total available for sale 1,464,054 58,973 1,394,351 10,730 Loans held for sale (1) 17,919 — 17,919 — Other assets (2) 26,764 — 26,764 — Total assets $ 1,508,737 $ 58,973 $ 1,439,034 $ 10,730 Liabilities Other liabilities (2) $ 23,902 $ — $ 23,902 $ — Total liabilities $ 23,902 $ — $ 23,902 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 31,489 $ — $ — $ 31,489 Loan servicing rights 7,410 — — 7,410 Foreclosed assets 1,340 — — 1,340 Total $ 40,239 $ — $ — $ 40,239 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 49,591 $ 49,591 $ — $ — U.S. government agency securities 23,041 — 23,041 — Obligations of states and political subdivisions 119,767 — 119,767 — Residential mortgage-backed securities 1,015,542 — 1,005,589 9,953 Trust preferred securities 8,009 — 6,074 1,935 Corporate and other debt securities 60,565 8,064 52,501 — Equity securities 20,858 1,306 19,552 — Total available for sale 1,297,373 58,961 1,226,524 11,888 Loans held for sale (1) 57,708 — 57,708 — Other assets (2) 29,055 — 29,055 — Total assets $ 1,384,136 $ 58,961 $ 1,313,287 $ 11,888 Liabilities Other liabilities (2) $ 44,077 $ — $ 44,077 $ — Total liabilities $ 44,077 $ — $ 44,077 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 5,385 $ — $ — $ 5,385 Loan servicing rights 6,489 — — 6,489 Foreclosed assets 4,532 — — 4,532 Total $ 16,406 $ — $ — $ 16,406 (1) Represents loans originated for sale (which consist of residential mortgage loans) that are carried at fair value and had contractual unpaid principal balances totaling approximately $17.5 million and $58.2 million at June 30, 2017 and December 31, 2016 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. The changes in Level 3 assets measured at fair value on a recurring basis for the three and six months ended June 30, 2017 and 2016 are summarized below: Available for Sale Securities Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Balance, beginning of the period $ 11,367 $ 12,949 $ 11,888 $ 13,793 Total net (losses) gains included in other comprehensive income (31 ) 514 13 (71 ) Settlements, net (606 ) (362 ) (1,171 ) (621 ) Balance, end of the period $ 10,730 $ 13,101 $ 10,730 $ 13,101 No changes in unrealized gains or losses on Level 3 securities were included in earnings during the three and six months ended June 30, 2017 and 2016 . There were no transfers of assets into or out of Level 3, or between Level 1 and Level 2, during the three and six months ended June 30, 2017 and 2016 . There have been no material changes in the valuation methodologies used at June 30, 2017 from December 31, 2016 . Assets and Liabilities Measured at Fair Value on a Recurring Basis The following valuation techniques were used for financial instruments measured at fair value on a recurring basis. All the valuation techniques described below apply to the unpaid principal balance, excluding any accrued interest or dividends at the measurement date. Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium. Available for sale securities. All U.S. Treasury securities, certain corporate and other debt securities, and certain preferred equity securities are reported at fair value utilizing Level 1 inputs. The majority of other investment securities are reported at fair value utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the data and assumptions used in pricing the securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data. For certain securities, the inputs used by either dealer market participants or an independent pricing service may be derived from unobservable market information (Level 3 inputs). In these instances, Valley evaluates the appropriateness and quality of the assumption and the resulting price. In addition, Valley reviews the volume and level of activity for all available for sale and trading securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume. For securities meeting these criteria, the quoted prices received from either market participants or an independent pricing service may be adjusted, as necessary, to estimate fair value and this results in fair values based on Level 3 inputs. In determining fair value, Valley utilizes unobservable inputs which reflect Valley’s own assumptions about the inputs that market participants would use in pricing each security. In developing its assertion of market participant assumptions, Valley utilizes the best information that is both reasonable and available without undue cost and effort. In calculating the fair value for the available for sale securities under Level 3, Valley prepared present value cash flow models for certain private label mortgage-backed securities. The cash flows for the residential mortgage-backed securities incorporated the expected cash flow of each security adjusted for default rates, loss severities and prepayments of the individual loans collateralizing the security. The following table presents quantitative information about Level 3 inputs used to measure the fair value of these securities at June 30, 2017 : Security Type Valuation Technique Unobservable Input Range Weighted Average Private label mortgage-backed securities Discounted cash flow Prepayment rate 6.2 - 31.6% 19.8 % Default rate 2.6 - 36.7 7.5 Loss severity 47.2 - 66.0 60.4 Significant increases or decreases in any of the unobservable inputs in the table above in isolation would result in a significantly lower or higher fair value measurement of the securities. Generally, a change in the assumption used for the default rate is accompanied by a directionally similar change in the assumption used for the loss severity and a directionally opposite change in the assumption used for prepayment rates. For the Level 3 available for sale residential mortgage-backed securities (consisting of 4 private label securities), cash flow assumptions incorporated independent third party market participant data based on vintage year for each security. The discount rate utilized in determining the present value of cash flows for the mortgage-backed securities was arrived at by combining the yield on orderly transactions for similar maturity government sponsored mortgage-backed securities with (i) the historical average risk premium of similar structured private label securities, (ii) a risk premium reflecting current market conditions, including liquidity risk, and (iii) if applicable, a forecasted loss premium derived from the expected cash flows of each security. The estimated cash flows for each private label mortgage-backed security were then discounted at the aforementioned effective rate to determine the fair value. The quoted prices received from either market participants or independent pricing services are weighted with the internal price estimate to determine the fair value of each instrument. For the Level 3 available for sale trust preferred securities (consisting of one pooled security), the resulting estimated future cash flow was discounted at a yield determined by reference to similarly structured securities for which observable orderly transactions occurred. The discount rate was applied using a pricing matrix based on credit, security type and maturity characteristics to determine the fair value. The fair value calculation is received from an independent valuation adviser. In validating the fair value calculation from an independent valuation adviser, Valley reviews the accuracy of the inputs and the appropriateness of the unobservable inputs utilized in the valuation to ensure the fair value calculation is reasonable from a market participant perspective. Loans held for sale. The conforming residential mortgage loans originated for sale are reported at fair value using Level 2 inputs. The fair values were calculated utilizing quoted prices for similar assets in active markets. To determine these fair values, the mortgages held for sale are put into multiple tranches, or pools, based on the coupon rate and maturity of each mortgage. The market prices for each tranche are obtained from both Fannie Mae and Freddie Mac. The market prices represent a delivery price, which reflects the underlying price each institution would pay Valley for an immediate sale of an aggregate pool of mortgages. The market prices received from Fannie Mae and Freddie Mac are then averaged and interpolated or extrapolated, where required, to calculate the fair value of each tranche. Depending upon the time elapsed since the origination of each loan held for sale, non-performance risk and changes therein were addressed in the estimate of fair value based upon the delinquency data provided to both Fannie Mae and Freddie Mac for market pricing and changes in market credit spreads. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at June 30, 2017 and December 31, 2016 based on the short duration these assets were held, and the high credit quality of these loans. Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The fair value of Valley’s derivatives are determined using third party prices that are based on discounted cash flow analysis using observed market inputs, such as the LIBOR and Overnight Index Swap rate curves. The fair value of mortgage banking derivatives, consisting of interest rate lock commitments to fund residential mortgage loans and forward commitments for the future delivery of such loans (including certain loans held for sale at June 30, 2017 and December 31, 2016 ), is determined based on the current market prices for similar instruments provided by Fannie Mae and Freddie Mac. The fair values of most of the derivatives incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to account for potential nonperformance risk of Valley and its counterparties. The credit valuation adjustments were not significant to the overall valuation of Valley’s derivatives at June 30, 2017 and December 31, 2016 . Assets and Liabilities Measured at Fair Value on a Non-recurring Basis The following valuation techniques were used for certain non-financial assets measured at fair value on a nonrecurring basis, including impaired loans reported at the fair value of the underlying collateral, loan servicing rights and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below. Impaired loans . Certain impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and are commonly referred to as “collateral dependent impaired loans.” Collateral values are estimated using Level 3 inputs, consisting of individual appraisals that may be adjusted based on certain discounting criteria. At June 30, 2017 , certain appraisals were discounted based on specific market data by location and property type. During the quarter ended June 30, 2017 , collateral dependent impaired loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses and/or a specific valuation allowance allocation based on the fair value of the underlying collateral. The collateral dependent loan charge-offs to the allowance for loan losses totaled $1.9 million and $473 thousand for the three months ended June 30, 2017 and 2016 , respectively, and $2.1 million and $952 thousand for the six months ended June 30, 2017 and 2016, respectively. At June 30, 2017 , collateral dependent impaired loans with a total recorded investment of $35.2 million were reduced by specific valuation allowance allocations totaling $3.7 million to a reported total net carrying amount of $31.5 million . Loan servicing rights. Fair values for each risk-stratified group of loan servicing rights are calculated using a fair value model from a third party vendor that requires inputs that are both significant to the fair value measurement and unobservable (Level 3). The fair value model is based on various assumptions, including but not limited to, prepayment speeds, internal rate of return (“discount rate”), servicing cost, ancillary income, float rate, tax rate, and inflation. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. At June 30, 2017 , the fair value model used prepayment speeds (stated as constant prepayment rates) from 0 percent up to 25 percent and a discount rate of 8 percent for the valuation of the loan servicing rights. A significant degree of judgment is involved in valuing the loan servicing rights using Level 3 inputs. The use of different assumptions could have a significant positive or negative effect on the fair value estimate. Impairment charges are recognized on loan servicing rights when the amortized cost of a risk-stratified group of loan servicing rights exceeds the estimated fair value. Valley recorded net recoveries of net impairment charges on its loan servicing rights totaling $50 thousand and $51 thousand for the three and six months ended June 30, 2017 , respectively, as compared to net impairment charges totaling $265 thousand and $457 thousand for three and six months ended June 30, 2016 , respectively. Foreclosed assets . Certain foreclosed assets (consisting of other real estate owned and other repossessed assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed assets. The fair value of a foreclosed asset, upon initial recognition, is typically estimated using Level 3 inputs, consisting of an appraisal that is adjusted based on certain discounting criteria, similar to the criteria used for impaired loans described above. There were no adjustments of the appraisals of foreclosed assets at June 30, 2017 . At June 30, 2017 , foreclosed assets included $1.3 million of assets that were measured at fair value upon initial recognition or subsequently re-measured during the quarter ended June 30, 2017 . The foreclosed assets charge-offs to the allowance for loan losses totaled $282 thousand and $489 thousand for the three months ended June 30, 2017 and 2016 , respectively, and $994 thousand and $922 thousand for six months ended June 30, 2017 and 2016 , respectively. The re-measurement of foreclosed assets at fair value subsequent to their initial recognition resulted in net losses within non-interest expense of $290 thousand for both the three and six months ended June 30, 2017 , and $295 thousand and $912 thousand for three and six months ended June 30, 2016 , respectively. Other Fair Value Disclosures ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The fair value estimates presented in the following table were based on pertinent market data and relevant information on the financial instruments available as of the valuation date. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire portfolio of financial instruments. Because no market exists for a portion of the financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For instance, Valley has certain fee-generating business lines (e.g., its mortgage servicing operation, trust and investment management departments) that were not considered in these estimates since these activities are not financial instruments. In addition, the tax implications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at June 30, 2017 and December 31, 2016 were as follows: Fair Value Hierarchy June 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 227,830 $ 227,830 $ 220,791 $ 220,791 Interest bearing deposits with banks Level 1 129,959 129,959 171,710 171,710 Investment securities held to maturity: U.S. Treasury securities Level 1 138,754 147,656 138,830 147,495 U.S. government agency securities Level 2 10,597 10,802 11,329 11,464 Obligations of states and political subdivisions Level 2 501,402 517,830 566,590 577,826 Residential mortgage-backed securities Level 2 1,070,137 1,062,008 1,112,460 1,102,802 Trust preferred securities Level 2 59,814 48,268 59,804 47,290 Corporate and other debt securities Level 2 41,559 42,168 36,559 37,720 Total investment securities held to maturity 1,822,263 1,828,732 1,925,572 1,924,597 Net loans Level 3 17,594,314 17,187,164 17,121,684 16,756,655 Accrued interest receivable Level 1 69,732 69,732 66,816 66,816 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 201,116 201,116 147,127 147,127 Financial liabilities Deposits without stated maturities Level 1 13,881,025 13,881,025 14,591,837 14,591,837 Deposits with stated maturities Level 2 3,368,993 3,375,127 3,138,871 3,160,572 Short-term borrowings Level 1 1,734,444 1,739,208 1,080,960 1,081,751 Long-term borrowings Level 2 1,819,615 1,906,668 1,433,906 1,523,386 Junior subordinated debentures issued to capital trusts Level 2 41,658 46,298 41,577 45,785 Accrued interest payable (2) Level 1 10,931 10,931 10,675 10,675 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. The following methods and assumptions were used to estimate the fair value of other financial assets and financial liabilities in the table above: Cash and due from banks and interest bearing deposits with banks. The carrying amount is considered to be a reasonable estimate of fair value because of the short maturity of these items. Investment securities held to maturity . Fair values are based on prices obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things (Level 2 inputs). Additionally, Valley reviews the volume and level of activity for all classes of held to maturity securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume. For securities meeting these criteria, the quoted prices received from either market participants or an independent pricing service may be adjusted, as necessary. If applicable, the adjustment to fair value is derived based on present value cash flow model projections prepared by Valley utilizing assumptions similar to those incorporated by market participants. Loans . Fair values of loans are estimated by discounting the projected future cash flows using market discount rates that reflect the credit and interest-rate risk inherent in the loan. The discount rate is a product of both the applicable index and credit spread, subject to the estimated current new loan interest rates. The credit spread component is static for all maturities and may not necessarily reflect the value of estimating all actual cash flows re-pricing. Projected future cash flows are calculated based upon contractual maturity or call dates, projected repayments and prepayments of principal. Fair values estimated in this manner do not fully incorporate an exit-price approach to fair value, but instead are based on a comparison to current market rates for comparable loans. Accrued interest receivable and payable. The carrying amounts of accrued interest approximate their fair value due to the short-term nature of these items. Federal Reserve Bank and Federal Home Loan Bank stock. Federal Reserve Bank and FHLB stock are non-marketable equity securities and are reported at their redeemable carrying amounts, which approximate fair value. Deposits. The carrying amounts of deposits without stated maturities (i.e., non-interest bearing, savings, NOW, and money market deposits) approximate their estimated fair value. The fair value of time deposits is based on the discounted value of contractual cash flows using estimated rates currently offered for alternative funding sources of similar remaining maturity. Short-term and long-term borrowings. The carrying amounts of certain short-term borrowings, including securities sold under agreements to repurchase and FHLB borrowings (and from time to time, federal funds purchased) approximate their fair values because they frequently re-price to a market rate. The fair values of other short-term and long-term borrowings are estimated by obtaining quoted market prices of the identical or similar financial instruments when available. When quoted prices are unavailable, the fair values of the borrowings are estimated by discounting the estimated future cash flows using current market discount rates of financial instruments with similar characteristics, terms and remaining maturity. Junior subordinated debentures issued to capital trusts. The fair value of debentures issued to capital trusts is estimated utilizing the income approach, whereby the expected cash flows, over the remaining estimated life of the security, are discounted using Valley’s credit spread over the current yield on a similar maturity of U.S. Treasury security or the three-month LIBOR for the variable rate indexed debentures (Level 2 inputs). The credit spread used to discount the expected cash flows was calculated based on the median current spreads for all fixed and variable publicly traded trust preferred securities issued by banks. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Held to Maturity The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at June 30, 2017 and December 31, 2016 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2017 U.S. Treasury securities $ 138,754 $ 8,902 $ — $ 147,656 U.S. government agency securities 10,597 205 — 10,802 Obligations of states and political subdivisions: Obligations of states and state agencies 249,607 9,623 (1,688 ) 257,542 Municipal bonds 251,795 8,519 (26 ) 260,288 Total obligations of states and political subdivisions 501,402 18,142 (1,714 ) 517,830 Residential mortgage-backed securities 1,070,137 7,658 (15,787 ) 1,062,008 Trust preferred securities 59,814 32 (11,578 ) 48,268 Corporate and other debt securities 41,559 927 (318 ) 42,168 Total investment securities held to maturity $ 1,822,263 $ 35,866 $ (29,397 ) $ 1,828,732 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 The age of unrealized losses and fair value of related securities held to maturity at June 30, 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) June 30, 2017 Obligations of states and political subdivisions: Obligations of states and state agencies $ 63,537 $ (1,688 ) $ — $ — $ 63,537 $ (1,688 ) Municipal bonds 4,664 (26 ) — — 4,664 (26 ) Total obligations of states and political subdivisions 68,201 (1,714 ) — — 68,201 (1,714 ) Residential mortgage-backed securities 622,527 (11,860 ) 156,974 (3,927 ) 779,501 (15,787 ) Trust preferred securities — — 36,883 (11,578 ) 36,883 (11,578 ) Corporate and other debt securities 4,682 (318 ) — — 4,682 (318 ) Total $ 695,410 $ (13,892 ) $ 193,857 $ (15,505 ) $ 889,267 $ (29,397 ) 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 ) The unrealized losses on investment securities held to maturity are primarily due to changes in interest rates (including, in certain cases, changes in credit spreads) and, in some cases, lack of liquidity in the marketplace. Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 121 at June 30, 2017 and 132 at December 31, 2016 . The unrealized losses within the residential mortgage-backed securities category of the held to maturity portfolio at June 30, 2017 mainly related to investment grade securities issued by Ginnie Mae. The unrealized losses existing for more than twelve months for trust preferred securities at June 30, 2017 primarily related to four non-rated single-issuer trust preferred securities issued by bank holding companies. All single-issuer trust preferred securities classified as held to maturity are paying in accordance with their terms, have no deferrals of interest or defaults and, if applicable, the issuers meet the regulatory capital requirements to be considered “well-capitalized institutions” at June 30, 2017 . Management does not believe that any individual unrealized loss as of June 30, 2017 included in the table above represents other-than-temporary impairment as management mainly attributes the declines in fair value to changes in interest rates and 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 believes there are no credit losses on these securities. Valley does not have the intent to sell, nor is it more likely than not that Valley will be required to sell, the securities contained in the table above before the recovery of their amortized cost basis or maturity. As of June 30, 2017 , the fair value of investments held to maturity that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $997.2 million . The contractual maturities of investments in debt securities held to maturity at June 30, 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. June 30, 2017 Amortized Cost Fair Value (in thousands) Due in one year $ 53,859 $ 54,621 Due after one year through five years 210,615 218,428 Due after five years through ten years 325,933 343,717 Due after ten years 161,719 149,958 Residential mortgage-backed securities 1,070,137 1,062,008 Total investment securities held to maturity $ 1,822,263 $ 1,828,732 Actual maturities of 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 7.5 years at June 30, 2017 . Available for Sale The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at June 30, 2017 and December 31, 2016 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2017 U.S. Treasury securities $ 51,009 $ 7 $ (919 ) $ 50,097 U.S. government agency securities 46,147 292 (71 ) 46,368 Obligations of states and political subdivisions: Obligations of states and state agencies 39,286 336 (218 ) 39,404 Municipal bonds 79,824 459 (493 ) 79,790 Total obligations of states and political subdivisions 119,110 795 (711 ) 119,194 Residential mortgage-backed securities 1,175,171 2,564 (14,015 ) 1,163,720 Trust preferred securities* 7,796 — (1,577 ) 6,219 Corporate and other debt securities 67,177 701 (204 ) 67,674 Equity securities 10,505 737 (460 ) 10,782 Total investment securities available for sale $ 1,476,915 $ 5,096 $ (17,957 ) $ 1,464,054 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 June 30, 2017 and December 31, 2016. The age of unrealized losses and fair value of related securities available for sale at June 30, 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) June 30, 2017 U.S. Treasury securities $ 49,168 $ (919 ) $ — $ — $ 49,168 $ (919 ) U.S. government agency securities 31,236 (68 ) 3,808 (3 ) 35,044 (71 ) Obligations of states and political subdivisions: Obligations of states and state agencies 13,118 (169 ) 1,628 (49 ) 14,746 (218 ) Municipal bonds 18,302 (193 ) 11,059 (300 ) 29,361 (493 ) Total obligations of states and political subdivisions 31,420 (362 ) 12,687 (349 ) 44,107 (711 ) Residential mortgage-backed securities 739,362 (9,680 ) 136,402 (4,335 ) 875,764 (14,015 ) Trust preferred securities — — 6,219 (1,577 ) 6,219 (1,577 ) Corporate and other debt securities 30,335 (75 ) 11,034 (129 ) 41,369 (204 ) Equity securities — — 5,184 (460 ) 5,184 (460 ) Total $ 881,521 $ (11,104 ) $ 175,334 $ (6,853 ) $ 1,056,855 $ (17,957 ) 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 ) The unrealized losses on investment securities available for sale are primarily due to changes in interest rates (including, in certain cases, changes in credit spreads) and, in some cases, lack of liquidity in the marketplace. The total number of security positions in the securities available for sale portfolio in an unrealized loss position at June 30, 2017 was 274 as compared to 298 at December 31, 2016 . The unrealized losses for the residential mortgage-backed securities category of the available for sale portfolio at June 30, 2017 largely related to several investment grade residential mortgage-backed securities mainly issued by Ginnie Mae. The unrealized losses more than twelve months for trust preferred securities at June 30, 2017 in the table above largely relate to 2 pooled trust preferred securities with an amortized cost of $7.8 million and a fair value of $6.2 million . One of the two pooled trust preferred securities had unrealized loss of $703 thousand and an investment grade rating at June 30, 2017 . As of June 30, 2017 , the fair value of securities available for sale that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $703.9 million . The contractual maturities of investment securities available for sale at June 30, 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. June 30, 2017 Amortized Cost Fair Value (in thousands) Due in one year $ 24,831 $ 24,752 Due after one year through five years 70,802 74,052 Due after five years through ten years 115,497 114,927 Due after ten years 80,109 78,821 Residential mortgage-backed securities 1,175,171 1,163,720 Equity securities 10,505 10,782 Total investment securities available for sale $ 1,476,915 $ 1,467,054 Actual maturities of 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 9.1 years at June 30, 2017 . Other-Than-Temporary Impairment Analysis Valley records impairment charges on its investment securities when the decline in fair value is considered other-than-temporary. Numerous factors, including lack of liquidity for re-sales of certain investment securities; decline in the creditworthiness of the issuer; absence of reliable pricing information for investment securities; adverse changes in business climate; adverse actions by regulators; prolonged decline in value of equity investments; or unanticipated changes in the competitive environment could have a negative effect on Valley’s investment portfolio and may result in other-than-temporary impairment on certain investment securities in future periods. Valley’s investment portfolios include private label mortgage-backed securities, trust preferred securities principally issued by bank holding companies (including two pooled trust preferred securities) and corporate bonds issued by banks. These investments 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 and, if applicable, the underlying mortgage loan collateral of the security. There were no other-than-temporary impairment losses on securities recognized in earnings for the three and six months ended June 30, 2017 and 2016 . At June 30, 2017 , four previously impaired private label mortgage-backed securities (prior to December 31, 2012) had a combined amortized cost and fair value of $9.1 million and $8.9 million , respectively, while one previously impaired pooled trust preferred security had an amortized cost and fair value of $2.8 million and $1.9 million , respectively. The previously impaired pooled trust preferred security was not accruing interest during the three and six months ended June 30, 2017 and 2016 . 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 six months ended June 30, 2017 and 2016 : Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Balance, beginning of period $ 4,767 $ 5,348 $ 4,916 $ 5,837 Accretion of credit loss impairment due to an increase in expected cash flows (67 ) — (216 ) (489 ) Balance, end of period $ 4,700 $ 5,348 $ 4,700 $ 5,348 The credit loss component of the impairment loss represents the difference between the present value of expected future cash flows and the amortized cost basis of the security prior to considering credit losses. The beginning balance represents the credit loss component for debt securities for which other-than-temporary impairment occurred prior to each period presented. The credit loss component increases if other-than-temporary impairments (initial and subsequent) are recognized in earnings for credit impaired debt securities. The credit loss component is reduced if (i) Valley receives cash flows in excess of what it expected to receive over the remaining life of the credit impaired debt security, (ii) the security matures, (iii) the security is fully written down, or (iv) Valley sells, intends to sell or believes it will be required to sell previously credit impaired debt securities. Realized Gains and Losses Gross gains and losses realized on sales, maturities and other investment securities transactions included in earnings were immaterial for the three and six months ended June 30, 2017 and 2016 . |
Loans
Loans | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Loans | Loans The detail of the loan portfolio as of June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 December 31, 2016 Non-PCI Loans PCI Loans* Total Non-PCI Loans PCI Loans* Total (in thousands) Loans: Commercial and industrial $ 2,417,924 $ 213,388 $ 2,631,312 $ 2,357,018 $ 281,177 $ 2,638,195 Commercial real estate: Commercial real estate 8,201,235 1,029,279 9,230,514 7,628,328 1,091,339 8,719,667 Construction 825,196 55,877 881,073 710,266 114,680 824,946 Total commercial real estate loans 9,026,431 1,085,156 10,111,587 8,338,594 1,206,019 9,544,613 Residential mortgage 2,569,500 155,277 2,724,777 2,684,195 183,723 2,867,918 Consumer: Home equity 369,372 81,138 450,510 376,213 92,796 469,009 Automobile 1,150,217 126 1,150,343 1,139,082 145 1,139,227 Other consumer 635,847 6,384 642,231 569,499 7,642 577,141 Total consumer loans 2,155,436 87,648 2,243,084 2,084,794 100,583 2,185,377 Total loans $ 16,169,291 $ 1,541,469 $ 17,710,760 $ 15,464,601 $ 1,771,502 $ 17,236,103 * PCI loans include covered loans (mostly consisting of residential mortgage and commercial real estate loans) totaling $44.5 million and $70.4 million at June 30, 2017 and December 31, 2016 , respectively. Total loans (excluding PCI covered loans) include net unearned premiums and deferred loan costs of $16.7 million and $15.3 million at June 30, 2017 and December 31, 2016 , respectively. The outstanding balances (representing contractual balances owed to Valley) for PCI loans totaled $1.7 billion and $1.9 billion at June 30, 2017 and December 31, 2016 , respectively. Valley transferred $225.5 million of residential mortgage loans from the loan portfolio to loans held for sale during the six months ended June 30, 2017 . Exclusive of such transfers, there were no sales of loans from the held for investment portfolio during the three and six months ended June 30, 2017 and 2016 . Purchased Credit-Impaired Loans (Including Covered Loans) PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses), and aggregated and accounted for as pools of loans based on common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each pool. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loan pools. Valley's PCI loan portfolio included covered loans (i.e., loans in which the Bank will share losses with the FDIC under loss-sharing agreements) totaling $44.5 million and $70.4 million at June 30, 2017 and December 31, 2016 , respectively. The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2017 and 2016 : Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Balance, beginning of period $ 269,831 $ 387,120 $ 294,514 $ 415,179 Accretion (23,553 ) (31,519 ) (48,236 ) (59,578 ) Balance, end of period $ 246,278 $ 355,601 $ 246,278 $ 355,601 FDIC Loss-Share Receivable The receivable arising from the loss-sharing agreements with the FDIC is measured separately from the covered loan portfolio because the agreements are not contractually part of the covered loans and are not transferable should the Bank choose to dispose of the covered loans. The FDIC loss share receivable (which is included in other assets on Valley's consolidated statements of financial condition) totaled $7.1 million and $7.2 million at June 30, 2017 and December 31, 2016 , respectively. Credit Risk Management For all of its loan types, Valley adheres to a credit policy designed to minimize credit risk while generating the maximum income given the level of risk. Management reviews and approves these policies and procedures on a regular basis with subsequent approval by the Board of Directors annually. Credit authority relating to a significant dollar percentage of the overall portfolio is centralized and controlled by the Credit Risk Management Division and by the Credit Committee. Valley closely monitors economic conditions and loan performance trends to manage and evaluate its exposure to credit risk. A reporting system supplements the management review process by providing management with frequent reports concerning loan production, loan quality, internal loan classification, concentrations of credit, loan delinquencies, non-performing, and potential problem loans. Loan portfolio diversification is an important factor utilized by Valley to manage its risk across business sectors and through cyclical economic circumstances. Credit Quality The following table presents past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis, and non-performing loans held for sale) by loan portfolio class at June 30, 2017 and December 31, 2016 : Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) June 30, 2017 Commercial and industrial $ 2,391 $ 2,686 $ — $ 11,072 $ 16,149 $ 2,401,775 $ 2,417,924 Commercial real estate: Commercial real estate 6,983 8,233 2,315 15,514 33,045 8,168,190 8,201,235 Construction — 854 2,879 1,334 5,067 820,129 825,196 Total commercial real estate loans 6,983 9,087 5,194 16,848 38,112 8,988,319 9,026,431 Residential mortgage 4,677 1,721 3,353 12,825 22,576 2,546,924 2,569,500 Consumer loans: Home equity 988 229 — 1,306 2,523 366,849 369,372 Automobile 3,242 774 255 103 4,374 1,145,843 1,150,217 Other consumer 163 4 20 — 187 635,660 635,847 Total consumer loans 4,393 1,007 275 1,409 7,084 2,148,352 2,155,436 Total $ 18,444 $ 14,501 $ 8,822 $ 42,154 $ 83,921 $ 16,085,370 $ 16,169,291 December 31, 2016 Commercial and industrial $ 6,705 $ 5,010 $ 142 $ 8,465 $ 20,322 $ 2,336,696 $ 2,357,018 Commercial real estate: Commercial real estate 5,894 8,642 474 15,079 30,089 7,598,239 7,628,328 Construction 6,077 — 1,106 715 7,898 702,368 710,266 Total commercial real estate loans 11,971 8,642 1,580 15,794 37,987 8,300,607 8,338,594 Residential mortgage 12,005 3,564 1,541 12,075 29,185 2,655,010 2,684,195 Consumer loans: Home equity 929 415 — 1,028 2,372 373,841 376,213 Automobile 3,192 723 188 146 4,249 1,134,833 1,139,082 Other consumer 76 9 21 — 106 569,393 569,499 Total consumer loans 4,197 1,147 209 1,174 6,727 2,078,067 2,084,794 Total $ 34,878 $ 18,363 $ 3,472 $ 37,508 $ 94,221 $ 15,370,380 $ 15,464,601 Impaired loans. Impaired loans, consisting of non-accrual commercial and industrial loans and commercial real estate loans over $250 thousand and all loans which were modified in troubled debt restructuring, are individually evaluated for impairment. PCI loans are not classified as impaired loans because they are accounted for on a pool basis. The following table presents the information about impaired loans by loan portfolio class at June 30, 2017 and December 31, 2016 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) June 30, 2017 Commercial and industrial $ 3,933 $ 56,304 $ 60,237 $ 65,809 $ 6,746 Commercial real estate: Commercial real estate 32,641 30,629 63,270 65,333 2,751 Construction 679 2,067 2,746 2,746 218 Total commercial real estate loans 33,320 32,696 66,016 68,079 2,969 Residential mortgage 8,464 7,725 16,189 17,488 582 Consumer loans: Home equity 2,888 663 3,551 3,643 51 Total consumer loans 2,888 663 3,551 3,643 51 Total $ 48,605 $ 97,388 $ 145,993 $ 155,019 $ 10,348 December 31, 2016 Commercial and industrial $ 3,609 $ 27,031 $ 30,640 $ 35,957 $ 5,864 Commercial real estate: Commercial real estate 21,318 36,974 58,292 60,267 3,612 Construction 1,618 2,379 3,997 3,997 260 Total commercial real estate loans 22,936 39,353 62,289 64,264 3,872 Residential mortgage 8,398 9,958 18,356 19,712 725 Consumer loans: Home equity 1,182 2,352 3,534 3,626 70 Total consumer loans 1,182 2,352 3,534 3,626 70 Total $ 36,125 $ 78,694 $ 114,819 $ 123,559 $ 10,531 The following tables present by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 46,283 $ 288 $ 24,157 $ 194 Commercial real estate: Commercial real estate 60,119 483 70,194 475 Construction 2,759 20 10,027 53 Total commercial real estate loans 62,878 503 80,221 528 Residential mortgage 17,555 184 22,922 234 Consumer loans: Home equity 4,799 34 3,071 20 Total consumer loans 4,799 34 3,071 20 Total $ 131,515 $ 1,009 $ 130,371 $ 976 Six Months Ended June 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 38,371 $ 596 $ 26,244 $ 434 Commercial real estate: Commercial real estate 57,722 808 71,296 1,114 Construction 2,728 39 9,915 101 Total commercial real estate loans 60,450 847 81,211 1,215 Residential mortgage 18,974 392 23,262 436 Consumer loans: Home equity 4,847 74 2,715 43 Total consumer loans 4,847 74 2,715 43 Total $ 122,642 $ 1,909 $ 133,432 $ 2,128 Interest income recognized on a cash basis (included in the table above) was immaterial for the three and six months ended June 30, 2017 and 2016 . Troubled debt restructured loans . From time to time, Valley may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers who may be experiencing financial difficulties. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a troubled debt restructured loan (TDR). Valley’s PCI loans are excluded from the TDR disclosures below because they are evaluated for impairment on a pool by pool basis. When an individual PCI loan within a pool is modified as a TDR, it is not removed from its pool. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above. The majority of the concessions made for TDRs involve lowering the monthly payments on loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. The concessions rarely result in the forgiveness of principal or accrued interest. In addition, Valley frequently obtains additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms of the loan and Valley’s underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. Performing TDRs (not reported as non-accrual loans) totaled $109.8 million and $85.2 million as of June 30, 2017 and December 31, 2016 , respectively. Non-performing TDRs totaled $15.8 million and $10.6 million as of June 30, 2017 and December 31, 2016 , respectively. The following tables present loans by loan portfolio class modified as TDRs during the three and six months ended June 30, 2017 and 2016 . The pre-modification and post-modification outstanding recorded investments disclosed in the table below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2017 and 2016 , respectively. Three Months Ended Three Months Ended Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 47 $ 40,077 $ 38,367 4 $ 5,079 $ 4,094 Commercial real estate: Commercial real estate 5 23,604 23,604 2 6,111 6,077 Construction — — — — — — Total commercial real estate 5 23,604 23,604 2 6,111 6,077 Residential mortgage 2 549 545 5 1,830 1,826 Total 54 $ 64,230 $ 62,516 11 $ 13,020 $ 11,997 Six Months Ended Six Months Ended Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 53 $ 46,315 $ 43,660 6 $ 6,456 $ 5,437 Commercial real estate: Commercial real estate 6 23,782 23,777 3 6,658 6,388 Construction 1 560 480 — — — Total commercial real estate 7 24,342 24,257 3 6,658 6,388 Residential mortgage 5 1,170 1,167 7 2,222 2,206 Consumer — — — 1 55 53 Total 65 $ 71,827 $ 69,084 17 $ 15,391 $ 14,084 The total TDRs presented in the above table had allocated specific reserves for loan losses totaling $5.3 million and $2.1 million at June 30, 2017 and 2016 , respectively. These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment disclosed in Note 8. One commercial and industrial TDR loan totaling $209 thousand was fully charged-off during the six months ended June 30, 2016 . There were no charge-offs related to TDR modifications during the three and six months ended June 30, 2017 . The following table presents non-PCI loans modified as TDRs within the previous 12 months for which there was a payment default ( 90 days or more past due) during the three and six months ended June 30, 2017 and 2016. Three Months Ended Three Months Ended Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 6 $ 5,358 — $ — Commercial real estate — — 2 1,070 Residential mortgage — — 1 74 Consumer — — 1 30 Total 6 $ 5,358 4 $ 1,174 Six Months Ended Six Months Ended Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 7 $ 5,433 — $ — Commercial real estate 1 736 1 214 Residential mortgage 1 153 1 74 Consumer — — 1 30 Total 9 $ 6,322 3 $ 318 Credit quality indicators . Valley utilizes an internal loan classification system as a means of reporting problem loans within commercial and industrial, commercial real estate, and construction loan portfolio classes. Under Valley’s internal risk rating system, loan relationships could be classified as “Pass,” “Special Mention,” “Substandard,” “Doubtful,” and “Loss.” Substandard loans include loans that exhibit well-defined weakness and are characterized by the distinct possibility that Valley will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. Loans classified as Loss are those considered uncollectible with insignificant value and are charged-off immediately to the allowance for loan losses, and, therefore, not presented in the table below. Loans that do not currently pose a sufficient risk to warrant classification in one of the aforementioned categories, but pose weaknesses that deserve management’s close attention are deemed Special Mention. Loans rated as Pass do not currently pose any identified risk and can range from the highest to average quality, depending on the degree of potential risk. Risk ratings are updated any time the situation warrants. The following table presents the risk category of loans (excluding PCI loans) by class of loans at June 30, 2017 and December 31, 2016 . Credit exposure - by internally assigned risk rating Pass Special Mention Substandard Doubtful Total Non-PCI Loans (in thousands) June 30, 2017 Commercial and industrial $ 2,237,178 $ 76,419 $ 98,034 $ 6,293 $ 2,417,924 Commercial real estate 8,063,898 51,960 85,377 — 8,201,235 Construction 822,602 364 2,230 — 825,196 Total $ 11,123,678 $ 128,743 $ 185,641 $ 6,293 $ 11,444,355 December 31, 2016 Commercial and industrial $ 2,246,457 $ 44,316 $ 64,649 $ 1,596 $ 2,357,018 Commercial real estate 7,486,469 57,591 84,268 — 7,628,328 Construction 708,070 200 1,996 — 710,266 Total $ 10,440,996 $ 102,107 $ 150,913 $ 1,596 $ 10,695,612 For residential mortgages, automobile, home equity and other consumer loan portfolio classes (excluding PCI loans), Valley also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2017 and December 31, 2016 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) June 30, 2017 Residential mortgage $ 2,556,675 $ 12,825 $ 2,569,500 Home equity 368,066 1,306 369,372 Automobile 1,150,114 103 1,150,217 Other consumer 635,847 — 635,847 Total $ 4,710,702 $ 14,234 $ 4,724,936 December 31, 2016 Residential mortgage $ 2,672,120 $ 12,075 $ 2,684,195 Home equity 375,185 1,028 376,213 Automobile 1,138,936 146 1,139,082 Other consumer 569,499 — 569,499 Total $ 4,755,740 $ 13,249 $ 4,768,989 Valley evaluates the credit quality of its PCI loan pools based on the expectation of the underlying cash flows of each pool, derived from the aging status and by payment activity of individual loans within the pool. The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of June 30, 2017 and December 31, 2016 . Credit exposure - by payment activity Performing Loans Non-Performing Loans Total PCI Loans (in thousands) June 30, 2017 Commercial and industrial $ 201,297 $ 12,091 $ 213,388 Commercial real estate 1,014,923 14,356 1,029,279 Construction 54,775 1,102 55,877 Residential mortgage 150,031 5,246 155,277 Consumer 86,728 920 87,648 Total $ 1,507,754 $ 33,715 $ 1,541,469 December 31, 2016 Commercial and industrial $ 272,483 $ 8,694 $ 281,177 Commercial real estate 1,080,376 10,963 1,091,339 Construction 113,370 1,310 114,680 Residential mortgage 179,793 3,930 183,723 Consumer 98,469 2,114 100,583 Total $ 1,744,491 $ 27,011 $ 1,771,502 Other real estate owned (OREO) totaled $10.2 million at both June 30, 2017 and December 31, 2016 (including $558 thousand of OREO properties which are subject to loss-sharing agreements with the FDIC at December 31, 2016 ). There were no covered OREO properties at June 30, 2017 . OREO included foreclosed residential real estate properties totaling $2.3 million and $1.6 million at June 30, 2017 and December 31, 2016 , respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $6.2 million and $7.1 million at June 30, 2017 and December 31, 2016 , respectively. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for loan losses is based on ongoing evaluations of the probable estimated losses inherent in the loan portfolio, including unexpected additional credit impairment of PCI loan pools subsequent to acquisition. There was no allowance allocation for PCI loan losses at June 30, 2017 and December 31, 2016 . The following table summarizes the allowance for credit losses at June 30, 2017 and December 31, 2016 : June 30, December 31, (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 116,446 $ 114,419 Allowance for unfunded letters of credit 2,175 2,185 Total allowance for credit losses $ 118,621 $ 116,604 The following table summarizes the provision for credit losses for the periods indicated: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Components of provision for credit losses: Provision for loan losses $ 3,710 $ 1,363 $ 6,112 $ 2,092 Provision for unfunded letters of credit (78 ) 66 (10 ) 137 Total provision for credit losses $ 3,632 $ 1,429 $ 6,102 $ 2,229 The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2017 and 2016 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 51,288 $ 56,302 $ 3,592 $ 4,261 $ 115,443 Loans charged-off (2,910 ) (139 ) (229 ) (1,011 ) (4,289 ) Charged-off loans recovered 312 640 235 395 1,582 Net (charge-offs) recoveries (2,598 ) 501 6 (616 ) (2,707 ) Provision for loan losses 2,927 (1,348 ) 588 1,543 3,710 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Three Months Ended Allowance for loan losses: Beginning balance $ 48,417 $ 48,454 $ 4,209 $ 4,335 $ 105,415 Loans charged-off (493 ) (414 ) (151 ) (697 ) (1,755 ) Charged-off loans recovered 990 1,458 94 523 3,065 Net recoveries (charge-offs) 497 1,044 (57 ) (174 ) 1,310 Provision for loan losses (889 ) 2,379 (657 ) 530 1,363 Ending balance $ 48,025 $ 51,877 $ 3,495 $ 4,691 $ 108,088 Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 50,820 $ 55,851 $ 3,702 $ 4,046 $ 114,419 Loans charged-off (4,624 ) (553 ) (359 ) (2,132 ) (7,668 ) Charged-off loans recovered 1,160 782 683 958 3,583 Net (charge-offs) recoveries (3,464 ) 229 324 (1,174 ) (4,085 ) Provision for loan losses 4,261 (625 ) 160 2,316 6,112 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Six Months Ended Allowance for loan losses: Beginning balance $ 48,767 $ 48,006 $ 4,625 $ 4,780 $ 106,178 Loans charged-off (1,744 ) (519 ) (232 ) (1,771 ) (4,266 ) Charged-off loans recovered 1,516 1,547 109 912 4,084 Net (charge-offs) recoveries (228 ) 1,028 (123 ) (859 ) (182 ) Provision for loan losses (514 ) 2,843 (1,007 ) 770 2,092 Ending balance $ 48,025 $ 51,877 $ 3,495 $ 4,691 $ 108,088 The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at June 30, 2017 and December 31, 2016 . Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) June 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 6,746 $ 2,969 $ 582 $ 51 $ 10,348 Collectively evaluated for impairment 44,871 52,486 3,604 5,137 106,098 Total $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Loans: Individually evaluated for impairment $ 60,237 $ 66,016 $ 16,189 $ 3,551 $ 145,993 Collectively evaluated for impairment 2,357,687 8,960,415 2,553,311 2,151,885 16,023,298 Loans acquired with discounts related to credit quality 213,388 1,085,156 155,277 87,648 1,541,469 Total $ 2,631,312 $ 10,111,587 $ 2,724,777 $ 2,243,084 $ 17,710,760 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 5,864 $ 3,872 $ 725 $ 70 $ 10,531 Collectively evaluated for impairment 44,956 51,979 2,977 3,976 103,888 Total $ 50,820 $ 55,851 $ 3,702 $ 4,046 $ 114,419 Loans: Individually evaluated for impairment $ 30,640 $ 62,289 $ 18,356 $ 3,534 $ 114,819 Collectively evaluated for impairment 2,326,378 8,276,305 2,665,839 2,081,260 15,349,782 Loans acquired with discounts related to credit quality 281,177 1,206,019 183,723 100,583 1,771,502 Total $ 2,638,195 $ 9,544,613 $ 2,867,918 $ 2,185,377 $ 17,236,103 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill totaled $690.6 million at both June 30, 2017 and December 31, 2016 . There were no changes to the carrying amounts of goodwill allocated to Valley’s business segments, or reporting units thereof, for goodwill impairment analysis (as reported in Valley’s Annual Report on Form 10-K for the year ended December 31, 2016 ). There was no impairment of goodwill during the three and six months ended June 30, 2017 and 2016 . The following table summarizes other intangible assets as of June 30, 2017 and December 31, 2016 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) June 30, 2017 Loan servicing rights $ 75,413 $ (54,253 ) $ (849 ) $ 20,311 Core deposits 43,396 (21,941 ) — 21,455 Other 4,087 (2,153 ) — 1,934 Total other intangible assets $ 122,896 $ (78,347 ) $ (849 ) $ 43,700 December 31, 2016 Loan servicing rights $ 73,002 $ (52,634 ) $ (900 ) $ 19,468 Core deposits 61,504 (37,562 ) — 23,942 Other 4,087 (2,013 ) — 2,074 Total other intangible assets $ 138,593 $ (92,209 ) $ (900 ) $ 45,484 Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets in proportion to, and over the period of, estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. See the "Assets and Liabilities Measured at Fair Value on a Non-recurring Basis" section of Note 5 for additional information regarding the fair valuation and impairment of loan servicing rights. Core deposits are amortized using an accelerated method and have a weighted average amortization period of 11 years . The line item labeled “Other” included in the table above primarily consists of customer lists and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 20 years . Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three and six months ended June 30, 2017 and 2016 . The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2017 through 2021 : Loan Servicing Rights Core Deposits Other (in thousands) 2017 $ 2,719 $ 2,356 $ 139 2018 4,503 4,215 249 2019 3,557 3,671 235 2020 2,813 3,127 220 2021 2,115 2,582 206 Valley recognized amortization expense on other intangible assets, including net impairment (or recovery of impairment) charges on loan servicing rights, totaling approximately $ 2.6 million and $ 2.9 million for the three months ended June 30, 2017 and 2016 , respectively, and $5.1 million and $5.8 million for the six months ended June 30, 2017 and 2016 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2017 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock–Based Compensation Valley currently has one active employee stock option plan, the 2016 Long-Term Stock Incentive Plan (the “2016 Stock Plan”), adopted by Valley’s Board of Directors on January 29, 2016 and approved by its shareholders on April 28, 2016. The purpose of the 2016 Plan is to provide additional incentive to officers and key employees of Valley and its subsidiaries, whose substantial contributions are essential to the continued growth and success of Valley, and to attract and retain competent and dedicated officers and other key employees whose efforts will result in the continued and long-term growth of Valley’s business. Under the 2016 Stock Plan, Valley may award shares of common stock in the form of stock appreciation rights, both incentive and non-qualified stock options, restricted stock and restricted stock units (RSUs) to its employees and non-employee directors. As of June 30, 2017 , 7.3 million shares of common stock were available for issuance under the 2016 Stock Plan. The essential features of each award are described in the award agreement relating to that award. The grant, exercise, vesting, settlement or payment of an award may be based upon the fair value of Valley’s common stock on the last sale price reported for Valley’s common stock on such date or the last sale price reported preceding such date, except for performance-based awards with a market condition. The grant date fair values of performance-based awards that vest based on a market condition are determined by a third party specialist using a Monte Carlo valuation model. Restricted Stock. Restricted stock is awarded to key employees, providing for the immediate award of our common stock subject to certain vesting and restrictions under the 2016 Stock Plan. Compensation expense is measured based on the grant-date fair value of the shares. Valley awarded time-based restricted stock totaling 482 thousand shares and 498 thousand shares during the six months ended June 30, 2017 and 2016 , respectively, to both executive officers and key employees of Valley. The majority of the awards have vesting periods of three years. Generally, the restrictions on such awards lapse at an annual rate of one-third of the total award commencing with the first anniversary of the date of grant. The average grant date fair value of the restricted stock awards granted during the six months ended June 30, 2017 and 2016 was $11.71 per share and $8.77 per share, respectively. Restricted Stock Units. Valley granted 371 thousand shares and 431 thousand shares of performance-based RSUs to certain executive officers for the six months ended June 30, 2017 and 2016 , respectively. The performance-based awards vest based on (i) growth in tangible book value per share plus dividends ( 75 percent of performance shares) and (ii) total shareholder return as compared to our peer group ( 25 percent of performance shares). The performance based awards "cliff" vest after three years based on the cumulative performance of Valley during that time period. The RSUs earn dividend equivalents (equal to cash dividends paid on Valley's common stock) over the applicable performance period. Dividend equivalents and accrued interest (if applicable), per the terms of the agreements, are accumulated and paid to the grantee at the vesting date, or forfeited if the performance conditions are not met. The grant date fair value of the RSUs granted during the six months ended June 30, 2017 and 2016 was $11.05 per share and $8.32 per share, respectively. Valley recorded total stock-based compensation expense of $2.7 million and $2.8 million for the three months ended June 30, 2017 and 2016 , respectively, and $6.9 million and $5.2 million for the six months ended June 30, 2017 and 2016 , respectively. The fair values of stock awards are expensed over the shorter of the vesting or required service period. As of June 30, 2017 , the unrecognized amortization expense for all stock-based employee compensation totaled approximately $16.5 million and will be recognized over an average remaining vesting period of 2.1 years . |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities Valley enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Cash Flow Hedges of Interest Rate Risk . Valley’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, Valley uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. Fair Value Hedges of Fixed Rate Assets and Liabilities . Valley is exposed to changes in the fair value of certain of its fixed rate assets or liabilities due to changes in benchmark interest rates based on one-month LIBOR. From time to time, Valley uses interest rate swaps to manage its exposure to changes in fair value. Interest rate swaps designated as fair value hedges involve the receipt of variable rate payments from a counterparty in exchange for Valley making fixed rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. Valley includes the gain or loss on the hedged items in the same income statement line item as the loss or gain on the related derivatives. Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. Derivatives not designated as hedges are not entered into for speculative purposes. Under a program, Valley executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Valley executes with a third party, such that Valley minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. At June 30, 2017 , Valley has one "steepener" swap with a total current notional amount of $14.5 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and the rate paid on these types of hybrid instruments are based on a formula derived from the spread between the long and short ends of the constant maturity swap (CMS) rate curve. Although these types of instruments do not meet the hedge accounting requirements, the change in fair value of both the bifurcated derivative and the stand alone swap tend to move in opposite directions with changes in three-month LIBOR rate and therefore provide an effective economic hedge. Valley regularly enters into mortgage banking derivatives which are non-designated hedges. These derivatives include interest rate lock commitments provided to customers to fund certain residential mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. Valley enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on Valley’s commitments to fund the loans as well as on its portfolio of mortgage loans held for sale. Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: June 30, 2017 December 31, 2016 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate caps and swaps $ 528 $ 31 * $ 707,000 $ 802 $ 15,641 $ 707,000 Fair value hedge interest rate swaps — 836 7,889 — 986 7,999 Total derivatives designated as hedging instruments $ 528 $ 867 $ 714,889 $ 802 $ 16,627 $ 714,999 Derivatives not designated as hedging instruments: Interest rate swaps and embedded derivatives $ 26,058 $ 22,870 * $ 1,288,274 $ 25,285 $ 25,284 $ 1,075,722 Mortgage banking derivatives 178 165 88,567 2,968 2,166 246,583 Total derivatives not designated as hedging instruments $ 26,236 $ 23,035 $ 1,376,841 $ 28,253 $ 27,450 $ 1,322,305 * The fair value for the Chicago Mercantile Exchange cleared derivative positions is inclusive of accrued interest payable and the portion of the cash collateral representing the variation margin posted with (or by) the applicable counterparties. Chicago Mercantile Exchange (CME) amended their rules to legally characterize the variation margin posted between counterparties to be classified as settlements of the outstanding derivative contracts instead of cash collateral. Effective January 1, 2017, Valley adopted the new rule on a prospective basis to classify its CME variation margin as a single-unit of account with the fair value of certain cash flow and non-designated derivative instruments. As a result, the fair value of the designated cash flow derivatives and non-designated interest rate swaps cleared with the CME were offset by variation margins totaling $13.0 million and $3.3 million , respectively, and reported in the table above on a net basis at June 30, 2017 . Losses included in the consolidated statements of income and in other comprehensive income, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (2,314 ) $ (3,597 ) $ (4,832 ) $ (6,568 ) Amount of loss recognized in other comprehensive income (1,482 ) (3,625 ) (1,265 ) (14,657 ) The net gains or losses related to cash flow hedge ineffectiveness were immaterial during the three and six months ended June 30, 2017 and 2016 . The accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $10.4 million and $12.5 million at June 30, 2017 and December 31, 2016 , respectively. Amounts reported in accumulated other comprehensive loss related to cash flow interest rate derivatives are reclassified to interest expense as interest payments are made on the hedged variable interest rate liabilities. Valley estimates that $6.9 million will be reclassified as an increase to interest expense over the next 12 months. Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Derivative - interest rate swaps: Interest income $ 52 $ 2 $ 149 $ (97 ) Interest expense — 2,069 — 6,797 Hedged item - loans and borrowings: Interest income $ (52 ) $ (2 ) $ (149 ) $ 97 Interest expense — (2,060 ) — (6,779 ) The amounts recognized in non-interest expense related to ineffectiveness of fair value hedges were immaterial for the three and six months ended June 30, 2017 and 2016 . The net losses included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Non-designated hedge interest rate derivatives Other non-interest expense $ 70 $ (92 ) $ (790 ) $ (389 ) Credit Risk Related Contingent Features. By using derivatives, Valley is exposed to credit risk if counterparties to the derivative contracts do not perform as expected. Management attempts to minimize counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral where appropriate. Credit risk exposure associated with derivative contracts is managed at Valley in conjunction with Valley’s consolidated counterparty risk management process. Valley’s counterparties and the risk limits monitored by management are periodically reviewed and approved by the Board of Directors. Valley has agreements with its derivative counterparties providing that if Valley defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Valley could also be declared in default on its derivative counterparty agreements. Additionally, Valley has an agreement with several of its derivative counterparties that contains provisions that require Valley’s debt to maintain an investment grade credit rating from each of the major credit rating agencies from which it receives a credit rating. If Valley’s credit rating is reduced below investment grade, or such rating is withdrawn or suspended, then the counterparty could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of June 30, 2017 , Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of June 30, 2017 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk related to these agreements, was $10.5 million . Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties. At June 30, 2017 , Valley had $43.3 million in collateral posted with counterparties, net of CME variation margin. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Certain financial instruments, including derivatives (consisting of interest rate caps and swaps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. Valley is party to master netting arrangements with its financial institution counterparties; however, Valley does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the repurchase agreement should Valley be in default. The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of June 30, 2017 and December 31, 2016 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2017 Assets: Interest rate caps and swaps $ 26,586 $ — $ 26,586 $ (3,888 ) $ — $ 22,698 Liabilities: Interest rate caps and swaps $ 23,737 $ — $ 23,737 $ (3,888 ) $ (9,314 ) (1) $ 10,535 Repurchase agreements 200,000 — 200,000 — (200,000 ) (2) — Total $ 223,737 $ — $ 223,737 $ (3,888 ) $ (209,314 ) $ 10,535 December 31, 2016 Assets: Interest rate caps and swaps $ 26,087 $ — $ 26,087 $ (5,268 ) $ — $ 20,819 Liabilities: Interest rate caps and swaps $ 41,911 $ — $ 41,911 $ (5,268 ) $ (36,643 ) (1) $ — Repurchase agreements 165,000 — 165,000 — (165,000 ) (2) — Total $ 206,911 $ — $ 206,911 $ (5,268 ) $ (201,643 ) $ — (1) Represents the amount of collateral posted with derivatives counterparties that offsets net liabilities. Actual cash collateral posted with all counterparties totaled $59.6 million and $52.4 million at June 30, 2017 and December 31, 2016 , respectively. (2) Represents the fair value of non-cash pledged investment securities. |
Tax Credit Investments
Tax Credit Investments | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Tax Credit Investments | Tax Credit Investments Valley’s tax credit investments are primarily related to investments promoting qualified affordable housing projects, and other investments related to community development and renewable energy sources. Some of these tax-advantaged investments support Valley’s regulatory compliance with the Community Reinvestment Act (CRA). Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense. Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Valley’s unfunded capital and other commitments related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization of tax credit investments, including impairment losses, within non-interest expense of the consolidated statements of income using the equity method of accounting. An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at June 30, 2017 and December 31, 2016 . June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 28,559 $ 29,567 Other tax credit investments, net 36,204 44,763 Total tax credit investments, net $ 64,763 $ 74,330 Other Liabilities: Unfunded affordable housing tax credit commitments $ 4,690 $ 4,850 Unfunded other tax credit commitments 3,582 7,276 Total unfunded tax credit commitments $ 8,272 $ 12,126 The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three and six months ended June 30, 2017 and 2016 : Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,271 $ 1,065 $ 2,555 $ 2,130 Other tax credit investment credits and tax benefits 8,680 3,268 14,966 6,536 Total reduction in income tax expense $ 9,951 $ 4,333 $ 17,521 $ 8,666 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 358 $ 775 $ 754 $ 1,359 Affordable housing tax credit investment impairment losses 130 60 254 200 Other tax credit investment losses 1,060 594 1,827 668 Other tax credit investment impairment losses 6,184 6,217 10,221 12,683 Total amortization of tax credit investments recorded in non-interest expense $ 7,732 $ 7,646 $ 13,056 $ 14,910 |
Litigation
Litigation | 6 Months Ended |
Jun. 30, 2017 | |
Commitments and Contingencies Disclosure [Abstract] | |
Litigation | Litigation In the normal course of business, Valley is a party to various outstanding legal proceedings and claims. In the opinion of management, the financial condition, results of operations and liquidity of Valley should not be materially affected by the outcome of such legal proceedings and claims. However, in the event of an unexpected adverse outcome in one or more of our legal proceedings, operating results for a particular period may be negatively impacted. Disclosure is required when a risk of material loss in a litigation or claim is more than remote, even when the risk of a material loss is less than likely. Unless an estimate cannot be made, disclosure is also required of the estimate of the reasonably possible loss or range of loss. Although there can be no assurance as to the ultimate outcome, Valley has generally denied, or believes it has a meritorious defense and will deny liability in litigation pending against Valley and claims made, including the matter described below. Valley intends to defend vigorously each case against it. Liabilities are established for legal claims when payments associated with the claims become probable and the costs can be reasonably estimated. Merrick Bank Corporation v. Valley National Bank and American Express Travel Related Services v. Valley National Bank litigation. For about a decade, Valley served as the depository bank for various charter operators under regulations of the Department of Transportation (DOT) and contracts entered into with charter operators under those regulations. The purported intent of the regulations is to afford some protection to the customers of the charter operators. A charter operator has several options with regard to fulfilling its obligations under the regulations, with one option requiring the charter operator to deposit the proceeds of tickets purchased for a charter flight into an FDIC insured bank account. The funds for a flight are released when the charter operator certifies that the flight has been completed. Valley stopped serving as a depository bank for the charter business due to the narrow profit in that business combined with the legal expenses incurred to defend itself in a prior case in which Valley was completely successful and the anticipated legal expenses from the following similar cases that are still pending. Valley served as the depository bank for Myrtle Beach Direct Air (Direct Air) under a contract between Direct Air and Valley approved by the DOT under the DOT regulations. Direct Air commenced operations in 2007 but in March 2012 Direct Air ceased operations and filed for bankruptcy. Thereafter the United States Justice Department charged three of the principals of Direct Air with criminal fraud; that case is expected to go to trial in March 2018. Merrick Bank Corp. (Merrick) was the merchant bank for Direct Air and processed credit card purchases for Direct Air. Following the bankruptcy of Direct Air, Merrick incurred chargebacks in the approximate amount of $26.2 million when the Direct Air customers whose flights had been canceled obtained a credit from their card issuing banks for the cost of the ticket or other item purchased from Direct Air. Merrick was not able to recover the chargebacks from Direct Air. Direct Air’s depository account at Valley contained approximately $1.0 million at the time Direct Air ceased operations. Merrick filed an action against Valley with ten counts in December 2013. Valley moved to dismiss five of the counts and, in March 2015, the court dismissed four of the five counts. American Express Travel Related Services (American Express) filed a similar action against Valley claiming about $3.0 million in chargebacks. Five of American Express’ eleven counts have been dismissed. The two cases have now been consolidated in the Federal District Court of New Jersey. During April 2017, all parties attended a mediation, however it was unsuccessful. Shortly before the mediation, Valley filed summary judgment motions on all of the remaining counts in both the Merrick and American Express cases. Merrick and American Express also filed summary judgment motions against Valley. Valley does not anticipate an immediate decision to be rendered on the motions. At June 30, 2017 , Valley could not estimate an amount or range of reasonably possible losses related to the matter described above. Based upon information currently available and advice of counsel, Valley believes that the eventual outcome of such claims will not have a material adverse effect on Valley’s consolidated financial position. However, in the event of unexpected future developments, it is possible that the ultimate resolution of the matters, if unfavorable, may be material to Valley’s results of operations for a particular period. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2017 | |
Segment Reporting [Abstract] | |
Business Segments | Business Segments The information under the caption “Business Segments” in Management’s Discussion and Analysis of Financial Condition and Results of Operations is incorporated herein by reference. |
Subsequent Events
Subsequent Events | 6 Months Ended |
Jun. 30, 2017 | |
Subsequent Events [Abstract] | |
Subsequent Events | Subsequent Events USAmeriBancorp, Inc. Merger Agreement On July 26, 2017, Valley announced its entry into a merger agreement with USAmeriBancorp, Inc. (USAB) headquartered in Clearwater, Florida. USAB largely through its wholly-owned subsidiary, USAmeriBank, has approximately $4.4 billion in assets, $3.6 billion in loans and $3.5 billion in deposits and maintains a branch network of 30 offices. The acquisition will expand Valley's Florida presence and establish a presence in Alabama. The common shareholders of USAB will receive 6.1 shares of Valley common stock for each USAB share they own, subject to adjustment in the event Valley’s average stock price falls below $11.50 or rises above $13.00 prior to closing. Both Valley and USAB have walkaway rights if the volume-weighted average closing price is below $11.00 and USAB has a walkaway right if the volume-weighted average closing price is above $13.50 . The transaction is valued at an estimated $816 million , based on Valley’s closing stock price on July 25, 2017. The acquisition is expected to close early in the first quarter of 2018, subject to standard regulatory approvals, shareholder approvals from Valley and USAB, as well as other customary conditions. Issuance of Series B Preferred Stock On August 3, 2017, Valley issued 4.0 million shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B, no par value per share, with a liquidation preference of $ 25 per share for aggregate consideration of $100 million . Dividends on the preferred stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 5.50 percent from the original issuance date to, but excluding, September 30, 2022, and thereafter at a floating rate per annum equal to three-month LIBOR plus a spread of 3.578 percent . Net proceeds to Valley after deducting underwriting discounts, commissions and offering expenses are expected to be approximately $98.1 million . |
New Authoritative Accounting 23
New Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2017 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance Accounting Standards Update (ASU) No. 2017-08, "Receivables—Nonrefundable Fees and Other Costs (Subtopic 310-20) Premium Amortization on Purchased Callable Debt Securities" shortens the amortization period for certain callable debt securities held at a premium. ASU No. 2017-08 requires the premium to be amortized to the earliest call date. The accounting for securities held at a discount does not change and the discount continues to be amortized as an adjustment to yield over the contractual life (to maturity) of the instrument. ASU No. 2017-08 is effective for Valley for the annual and interim reporting periods beginning January 1, 2018 with early adoption permitted, and is to be applied retrospectively. ASU No. 2017-08 is not expected to have a significant impact on Valley's consolidated financial statements. ASU No. 2017-07, "Compensation—Retirement Benefits (Topic 715): Improving the Presentation of Net Periodic Pension Cost and Net Periodic Postretirement Benefit Cost" requires service cost to be reported in the same financial statement line item(s) as other current employee compensation costs. All other components of expense must be presented separately from service cost, and outside any subtotal of income from operations. Only the service cost component of expense is eligible to be capitalized. ASU No. 2017-07 is effective for Valley for its annual and interim reporting periods beginning January1, 2018 with early adoption permitted. ASU No. 2017-07 is not expected to have a significant impact on the presentation on Valley's consolidated financial statements. ASU No. 2017-04, "Intangibles—Goodwill and Other (Topic 350): Simplifying the Test for Goodwill Impairment" eliminates the requirement to calculate the implied fair value of goodwill (i.e., Step 2 of the current goodwill impairment test guidance) to measure a goodwill impairment charge. Instead, an entity will be required to record an impairment charge based on the excess of a reporting unit’s carrying amount over its fair value (i.e., measure the charge based on Step 1 of the current guidance). In addition, ASU No. 2017-04 eliminates the requirements for any reporting unit with a zero or negative carrying amount to perform a qualitative assessment and, if it fails that qualitative test, to perform Step 2 of the goodwill impairment test. However, an entity will be required to disclose the amount of goodwill allocated to each reporting unit with a zero or negative carrying amount of net assets. An entity still has the option to perform the qualitative assessment for a reporting unit to determine if the quantitative impairment test is necessary. ASU No. 2017-04 is effective for Valley for its annual or any interim goodwill impairment tests in fiscal years beginning January 1, 2020 and is not expected to have a significant impact on the presentation of Valley's consolidated financial statements. Early adoption is permitted for annual and interim goodwill impairment testing dates after January 1, 2017. ASU No. 2016-15, "Statement of Cash Flows (Topic 230): Classification of Certain Cash Receipts and Cash Payments" clarifies on how certain cash receipts and cash payments should be classified and presented in the statement of cash flow. The ASU No. 2016-15 includes guidance on eight specific cash flow issues with the objective of reducing the existing diversity in practice in how certain cash receipts and cash payments are presented and classified in the statement of cash flows. ASU No. 2016-15 is effective for Valley for annual and interim reporting periods beginning January 1, 2018 and it should be applied using a retrospective transition method to each period presented. ASU No. 2016-15 is not expected to have a significant impact on the presentation of Valley's consolidated statements of cash flows. ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" amends the accounting guidance on the impairment of financial instruments. The ASU No. 2016-13 adds to U.S. GAAP an impairment model (known as the current expected credit loss (CECL) model) that is based on expected losses rather than incurred losses. Under the new guidance, an entity is required to measure all expected credit losses for financial assets held at the reporting date based on historical experience, current conditions, and reasonable and supportable forecasts. ASU No. 2016-13 is effective for Valley for reporting periods beginning January 1, 2020. Management is currently evaluating the impact of the ASU on Valley’s consolidated financial statements. Valley expects that the new guidance will result in an increase in its allowance for credit losses due to several factors, including: (i) the allowance related to Valley loans will increase to include credit losses over the full remaining expected life of the portfolio, and will consider expected future changes in macroeconomic conditions, (ii) the nonaccretable difference (as defined in Note 7) on PCI loans will be recognized as an allowance, offset by an increase in the carrying value of the related loans, and (iii) an allowance will be established for estimated credit losses on investment securities classified as held to maturity. The extent of the increase is under evaluation, but will depend upon the nature and characteristics of the Valley's loan and investment portfolios at the adoption date, and the economic conditions and forecasts at that date. ASU No. 2016-09, "Compensation - Stock Compensation (Topic 718): Improvements to Employee Share-Based Payment Accounting" simplifies several aspects of the stock compensation guidance in Topic 718 and other related guidance. The amendments focus on income tax accounting upon vesting or exercise of share-based payments, award classification, liability classification exception for statutory tax withholding requirements, recognition methods for forfeitures within stock compensation expense, and the cash flow presentation. Amendments related to the presentation of employee taxes paid on the statement of cash flows when an employer withholds shares to meet the minimum statutory withholding requirement should be applied retrospectively. Amendments requiring recognition of excess tax benefits and tax deficiencies in the income statement and the practical expedient for estimating expected term should be applied prospectively. ASU No. 2016-09 became effective for Valley for reporting periods after January 1, 2017 and did not have a significant impact on Valley's consolidated financial statements. At adoption, Valley elected to apply the amendments related to the presentation of excess tax benefits on the statement of cash flows using the prospective transition method. Valley also elected to continue to estimate the forfeitures of stock awards as a component of total stock compensation expense based on the number of awards that are expected to vest. ASU No. 2016-02, “Leases (Topic 842)” requires the recognition of a right of use asset and related lease liability by lessees for leases classified as operating leases under current GAAP. Topic 842, which replaces the current guidance under Topic 840, retains a distinction between finance leases and operating leases. The recognition, measurement, and presentation of expenses and cash flows arising from a lease by a lessee also will not significantly change from current GAAP. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Topic 842 will be effective for Valley for reporting periods beginning January 1, 2019, with an early adoption permitted. Valley must apply a modified retrospective transition approach for the applicable leases existing at, or entered into after, the beginning of the earliest comparative period presented in the financial statements. The modified retrospective approach would not require any transition accounting for leases that expired before the earliest comparative period presented. Management is currently evaluating the impact of Topic 842 on Valley’s consolidated financial statements by reviewing its existing lease contracts and service contracts that may include embedded leases. Valley expects a gross-up of its consolidated statements of financial condition as a result of recognizing lease liabilities and right of use assets; the extent of such gross-up is under evaluation. Valley does not expect material changes to the recognition of operating lease expense in its consolidated statements of income. ASU No. 2016-01, “Financial Instruments - Overall (Subtopic 825-10) - Recognition and Measurement of Financial Assets and Financial Liabilities” requires that: (i) equity investments with readily determinable fair values must be measured at fair value with changes in fair value recognized in net income, (ii) equity investments without readily determinable fair values must be measured at either fair value or at cost adjusted for changes in observable prices minus impairment with changes in value under either of these methods recognized in net income, (iii) entities that record financial liabilities at fair value due to a fair value option election must recognize changes in fair value in other comprehensive income if it is related to instrument-specific credit risk, and (iv) entities must assess whether a valuation allowance is required for deferred tax assets related to available-for-sale debt securities. ASU No. 2016-01 is effective for Valley for reporting periods beginning January 1, 2018 and is not expected to have a material effect on Valley’s consolidated financial statements. ASU No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" implements a common revenue standard that clarifies the principles for recognizing revenue to depict the transfer of promised goods or services to customers in an amount that reflects the consideration to which the entity expects to be entitled in exchange for those goods or services. In 2016, the Financial Accounting Standards Board issued ASU No. 2016-08, “Revenue from Contracts with Customers (Topic 606) - Principal versus Agent Considerations (Reporting Revenue Gross versus Net)” and ASU No. 2016-10, “Revenue from Contracts with Customers (Topic 606) - Identifying Performance Obligations and Licensing,” to further clarify the new guidance under Topic 606. ASU No. 2014-09 and its aforementioned amendments are effective on January 1, 2018. While Valley has not identified any material changes in the timing of revenue recognition under the new guidance, its review is ongoing. However, Valley does not expect the new revenue guidance to have a significant impact on its consolidated financial statements. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Earnings Per Share [Abstract] | |
Schedule of Earnings Per Share, Basic and Diluted | The following table shows the calculation of both basic and diluted earnings per common share for the three and six months ended June 30, 2017 and 2016 . Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands, except for share data) Net income available to common shareholders $ 48,268 $ 37,230 $ 92,566 $ 71,620 Basic weighted average number of common shares outstanding 263,958,292 254,381,170 263,878,103 254,228,260 Plus: Common stock equivalents 819,950 390,043 784,760 347,613 Diluted weighted average number of common shares outstanding 264,778,242 254,771,213 264,662,863 254,575,873 Earnings per common share: Basic $ 0.18 $ 0.15 $ 0.35 $ 0.28 Diluted 0.18 0.15 0.35 0.28 |
Accumulated Other Comprehensi25
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Equity [Abstract] | |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three and six months ended June 30, 2017 . Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at March 31, 2017 $ (8,774 ) $ (616 ) $ (10,862 ) $ (18,834 ) $ (39,086 ) Other comprehensive income before reclassifications 1,896 21 (873 ) — 1,044 Amounts reclassified from other comprehensive income (13 ) (39 ) 1,356 59 1,363 Other comprehensive income, net 1,883 (18 ) 483 59 2,407 Balance at June 30, 2017 $ (6,891 ) $ (634 ) $ (10,379 ) $ (18,775 ) $ (36,679 ) Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Non-credit Impairment Losses on AFS Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at December 31, 2016 $ (10,094 ) $ (642 ) $ (12,464 ) $ (18,893 ) $ (42,093 ) Other comprehensive income before reclassifications 3,203 134 (746 ) — 2,591 Amounts reclassified from other comprehensive income — (126 ) 2,831 118 2,823 Other comprehensive income, net 3,203 8 2,085 118 5,414 Balance at June 30, 2017 $ (6,891 ) $ (634 ) $ (10,379 ) $ (18,775 ) $ (36,679 ) |
Reclassification out of Accumulated Other Comprehensive Loss | The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three and six months ended June 30, 2017 and 2016 . Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2017 2016 2017 2016 Income Statement Line Item (in thousands) Unrealized gains (losses) on AFS securities before tax 22 $ (3 ) (1 ) 268 Gains (losses) on securities transactions, net Tax effect (9 ) 1 1 (100 ) Total net of tax 13 (2 ) — 168 Non-credit impairment losses on AFS securities before tax: Accretion of credit loss impairment due to an increase in expected cash flows 67 — 215 489 Interest and dividends on investment securities (taxable) Tax effect (28 ) — (89 ) (203 ) Total net of tax 39 — 126 286 Unrealized losses on derivatives (cash flow hedges) before tax (2,314 ) (3,597 ) (4,832 ) (6,568 ) Interest expense Tax effect 958 1,490 2,001 2,720 Total net of tax (1,356 ) (2,107 ) (2,831 ) (3,848 ) Defined benefit pension plan: Amortization of net loss (101 ) (72 ) (202 ) (144 ) * Tax effect 42 29 84 58 Total net of tax (59 ) (43 ) (118 ) (86 ) Total reclassifications, net of tax $ (1,363 ) $ (2,152 ) $ (2,823 ) $ (3,480 ) * Amortization of net loss is included in the computation of net periodic pension cost. |
Fair Value Measurement of Ass26
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring and Non-Recurring Basis | The following tables present the assets and liabilities that are measured at fair value on a recurring and nonrecurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at June 30, 2017 and December 31, 2016 . The assets presented under “nonrecurring fair value measurements” in the table below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). June 30, Fair Value Measurements at Reporting Date Using: Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 50,097 $ 50,097 $ — $ — U.S. government agency securities 46,368 — 46,368 — Obligations of states and political subdivisions 119,194 — 119,194 — Residential mortgage-backed securities 1,163,720 — 1,154,868 8,852 Trust preferred securities 6,219 — 4,341 1,878 Corporate and other debt securities 67,674 7,956 59,718 — Equity securities 10,782 920 9,862 — Total available for sale 1,464,054 58,973 1,394,351 10,730 Loans held for sale (1) 17,919 — 17,919 — Other assets (2) 26,764 — 26,764 — Total assets $ 1,508,737 $ 58,973 $ 1,439,034 $ 10,730 Liabilities Other liabilities (2) $ 23,902 $ — $ 23,902 $ — Total liabilities $ 23,902 $ — $ 23,902 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 31,489 $ — $ — $ 31,489 Loan servicing rights 7,410 — — 7,410 Foreclosed assets 1,340 — — 1,340 Total $ 40,239 $ — $ — $ 40,239 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 49,591 $ 49,591 $ — $ — U.S. government agency securities 23,041 — 23,041 — Obligations of states and political subdivisions 119,767 — 119,767 — Residential mortgage-backed securities 1,015,542 — 1,005,589 9,953 Trust preferred securities 8,009 — 6,074 1,935 Corporate and other debt securities 60,565 8,064 52,501 — Equity securities 20,858 1,306 19,552 — Total available for sale 1,297,373 58,961 1,226,524 11,888 Loans held for sale (1) 57,708 — 57,708 — Other assets (2) 29,055 — 29,055 — Total assets $ 1,384,136 $ 58,961 $ 1,313,287 $ 11,888 Liabilities Other liabilities (2) $ 44,077 $ — $ 44,077 $ — Total liabilities $ 44,077 $ — $ 44,077 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 5,385 $ — $ — $ 5,385 Loan servicing rights 6,489 — — 6,489 Foreclosed assets 4,532 — — 4,532 Total $ 16,406 $ — $ — $ 16,406 (1) Represents loans originated for sale (which consist of residential mortgage loans) that are carried at fair value and had contractual unpaid principal balances totaling approximately $17.5 million and $58.2 million at June 30, 2017 and December 31, 2016 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. |
Changes in Level 3 Assets Measured at Fair Value on Recurring Basis | The changes in Level 3 assets measured at fair value on a recurring basis for the three and six months ended June 30, 2017 and 2016 are summarized below: Available for Sale Securities Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Balance, beginning of the period $ 11,367 $ 12,949 $ 11,888 $ 13,793 Total net (losses) gains included in other comprehensive income (31 ) 514 13 (71 ) Settlements, net (606 ) (362 ) (1,171 ) (621 ) Balance, end of the period $ 10,730 $ 13,101 $ 10,730 $ 13,101 |
Schedule of Quantitative Information about Level 3 Inputs Used to Measure Fair Value of Available for Sale Securities | The following table presents quantitative information about Level 3 inputs used to measure the fair value of these securities at June 30, 2017 : Security Type Valuation Technique Unobservable Input Range Weighted Average Private label mortgage-backed securities Discounted cash flow Prepayment rate 6.2 - 31.6% 19.8 % Default rate 2.6 - 36.7 7.5 Loss severity 47.2 - 66.0 60.4 |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at June 30, 2017 and December 31, 2016 were as follows: Fair Value Hierarchy June 30, 2017 December 31, 2016 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 227,830 $ 227,830 $ 220,791 $ 220,791 Interest bearing deposits with banks Level 1 129,959 129,959 171,710 171,710 Investment securities held to maturity: U.S. Treasury securities Level 1 138,754 147,656 138,830 147,495 U.S. government agency securities Level 2 10,597 10,802 11,329 11,464 Obligations of states and political subdivisions Level 2 501,402 517,830 566,590 577,826 Residential mortgage-backed securities Level 2 1,070,137 1,062,008 1,112,460 1,102,802 Trust preferred securities Level 2 59,814 48,268 59,804 47,290 Corporate and other debt securities Level 2 41,559 42,168 36,559 37,720 Total investment securities held to maturity 1,822,263 1,828,732 1,925,572 1,924,597 Net loans Level 3 17,594,314 17,187,164 17,121,684 16,756,655 Accrued interest receivable Level 1 69,732 69,732 66,816 66,816 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 201,116 201,116 147,127 147,127 Financial liabilities Deposits without stated maturities Level 1 13,881,025 13,881,025 14,591,837 14,591,837 Deposits with stated maturities Level 2 3,368,993 3,375,127 3,138,871 3,160,572 Short-term borrowings Level 1 1,734,444 1,739,208 1,080,960 1,081,751 Long-term borrowings Level 2 1,819,615 1,906,668 1,433,906 1,523,386 Junior subordinated debentures issued to capital trusts Level 2 41,658 46,298 41,577 45,785 Accrued interest payable (2) Level 1 10,931 10,931 10,675 10,675 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2017 and December 31, 2016 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2017 U.S. Treasury securities $ 138,754 $ 8,902 $ — $ 147,656 U.S. government agency securities 10,597 205 — 10,802 Obligations of states and political subdivisions: Obligations of states and state agencies 249,607 9,623 (1,688 ) 257,542 Municipal bonds 251,795 8,519 (26 ) 260,288 Total obligations of states and political subdivisions 501,402 18,142 (1,714 ) 517,830 Residential mortgage-backed securities 1,070,137 7,658 (15,787 ) 1,062,008 Trust preferred securities 59,814 32 (11,578 ) 48,268 Corporate and other debt securities 41,559 927 (318 ) 42,168 Total investment securities held to maturity $ 1,822,263 $ 35,866 $ (29,397 ) $ 1,828,732 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 June 30, 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) June 30, 2017 Obligations of states and political subdivisions: Obligations of states and state agencies $ 63,537 $ (1,688 ) $ — $ — $ 63,537 $ (1,688 ) Municipal bonds 4,664 (26 ) — — 4,664 (26 ) Total obligations of states and political subdivisions 68,201 (1,714 ) — — 68,201 (1,714 ) Residential mortgage-backed securities 622,527 (11,860 ) 156,974 (3,927 ) 779,501 (15,787 ) Trust preferred securities — — 36,883 (11,578 ) 36,883 (11,578 ) Corporate and other debt securities 4,682 (318 ) — — 4,682 (318 ) Total $ 695,410 $ (13,892 ) $ 193,857 $ (15,505 ) $ 889,267 $ (29,397 ) 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 June 30, 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. June 30, 2017 Amortized Cost Fair Value (in thousands) Due in one year $ 53,859 $ 54,621 Due after one year through five years 210,615 218,428 Due after five years through ten years 325,933 343,717 Due after ten years 161,719 149,958 Residential mortgage-backed securities 1,070,137 1,062,008 Total investment securities held to maturity $ 1,822,263 $ 1,828,732 |
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 June 30, 2017 and December 31, 2016 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2017 U.S. Treasury securities $ 51,009 $ 7 $ (919 ) $ 50,097 U.S. government agency securities 46,147 292 (71 ) 46,368 Obligations of states and political subdivisions: Obligations of states and state agencies 39,286 336 (218 ) 39,404 Municipal bonds 79,824 459 (493 ) 79,790 Total obligations of states and political subdivisions 119,110 795 (711 ) 119,194 Residential mortgage-backed securities 1,175,171 2,564 (14,015 ) 1,163,720 Trust preferred securities* 7,796 — (1,577 ) 6,219 Corporate and other debt securities 67,177 701 (204 ) 67,674 Equity securities 10,505 737 (460 ) 10,782 Total investment securities available for sale $ 1,476,915 $ 5,096 $ (17,957 ) $ 1,464,054 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 June 30, 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 June 30, 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) June 30, 2017 U.S. Treasury securities $ 49,168 $ (919 ) $ — $ — $ 49,168 $ (919 ) U.S. government agency securities 31,236 (68 ) 3,808 (3 ) 35,044 (71 ) Obligations of states and political subdivisions: Obligations of states and state agencies 13,118 (169 ) 1,628 (49 ) 14,746 (218 ) Municipal bonds 18,302 (193 ) 11,059 (300 ) 29,361 (493 ) Total obligations of states and political subdivisions 31,420 (362 ) 12,687 (349 ) 44,107 (711 ) Residential mortgage-backed securities 739,362 (9,680 ) 136,402 (4,335 ) 875,764 (14,015 ) Trust preferred securities — — 6,219 (1,577 ) 6,219 (1,577 ) Corporate and other debt securities 30,335 (75 ) 11,034 (129 ) 41,369 (204 ) Equity securities — — 5,184 (460 ) 5,184 (460 ) Total $ 881,521 $ (11,104 ) $ 175,334 $ (6,853 ) $ 1,056,855 $ (17,957 ) 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 June 30, 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. June 30, 2017 Amortized Cost Fair Value (in thousands) Due in one year $ 24,831 $ 24,752 Due after one year through five years 70,802 74,052 Due after five years through ten years 115,497 114,927 Due after ten years 80,109 78,821 Residential mortgage-backed securities 1,175,171 1,163,720 Equity securities 10,505 10,782 Total investment securities available for sale $ 1,476,915 $ 1,467,054 |
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 six months ended June 30, 2017 and 2016 : Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Balance, beginning of period $ 4,767 $ 5,348 $ 4,916 $ 5,837 Accretion of credit loss impairment due to an increase in expected cash flows (67 ) — (216 ) (489 ) Balance, end of period $ 4,700 $ 5,348 $ 4,700 $ 5,348 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio Non-Covered and Covered PCI Loans and Non-PCI Loans | The detail of the loan portfolio as of June 30, 2017 and December 31, 2016 was as follows: June 30, 2017 December 31, 2016 Non-PCI Loans PCI Loans* Total Non-PCI Loans PCI Loans* Total (in thousands) Loans: Commercial and industrial $ 2,417,924 $ 213,388 $ 2,631,312 $ 2,357,018 $ 281,177 $ 2,638,195 Commercial real estate: Commercial real estate 8,201,235 1,029,279 9,230,514 7,628,328 1,091,339 8,719,667 Construction 825,196 55,877 881,073 710,266 114,680 824,946 Total commercial real estate loans 9,026,431 1,085,156 10,111,587 8,338,594 1,206,019 9,544,613 Residential mortgage 2,569,500 155,277 2,724,777 2,684,195 183,723 2,867,918 Consumer: Home equity 369,372 81,138 450,510 376,213 92,796 469,009 Automobile 1,150,217 126 1,150,343 1,139,082 145 1,139,227 Other consumer 635,847 6,384 642,231 569,499 7,642 577,141 Total consumer loans 2,155,436 87,648 2,243,084 2,084,794 100,583 2,185,377 Total loans $ 16,169,291 $ 1,541,469 $ 17,710,760 $ 15,464,601 $ 1,771,502 $ 17,236,103 * PCI loans include covered loans (mostly consisting of residential mortgage and commercial real estate loans) totaling $44.5 million and $70.4 million at June 30, 2017 and December 31, 2016 , respectively. |
Changes in Accretable Yield for Covered Loans | The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2017 and 2016 : Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Balance, beginning of period $ 269,831 $ 387,120 $ 294,514 $ 415,179 Accretion (23,553 ) (31,519 ) (48,236 ) (59,578 ) Balance, end of period $ 246,278 $ 355,601 $ 246,278 $ 355,601 |
Past Due, Non-Accrual and Current Non-Covered Loans by Loan Portfolio Class | The following table presents past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis, and non-performing loans held for sale) by loan portfolio class at June 30, 2017 and December 31, 2016 : Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) June 30, 2017 Commercial and industrial $ 2,391 $ 2,686 $ — $ 11,072 $ 16,149 $ 2,401,775 $ 2,417,924 Commercial real estate: Commercial real estate 6,983 8,233 2,315 15,514 33,045 8,168,190 8,201,235 Construction — 854 2,879 1,334 5,067 820,129 825,196 Total commercial real estate loans 6,983 9,087 5,194 16,848 38,112 8,988,319 9,026,431 Residential mortgage 4,677 1,721 3,353 12,825 22,576 2,546,924 2,569,500 Consumer loans: Home equity 988 229 — 1,306 2,523 366,849 369,372 Automobile 3,242 774 255 103 4,374 1,145,843 1,150,217 Other consumer 163 4 20 — 187 635,660 635,847 Total consumer loans 4,393 1,007 275 1,409 7,084 2,148,352 2,155,436 Total $ 18,444 $ 14,501 $ 8,822 $ 42,154 $ 83,921 $ 16,085,370 $ 16,169,291 December 31, 2016 Commercial and industrial $ 6,705 $ 5,010 $ 142 $ 8,465 $ 20,322 $ 2,336,696 $ 2,357,018 Commercial real estate: Commercial real estate 5,894 8,642 474 15,079 30,089 7,598,239 7,628,328 Construction 6,077 — 1,106 715 7,898 702,368 710,266 Total commercial real estate loans 11,971 8,642 1,580 15,794 37,987 8,300,607 8,338,594 Residential mortgage 12,005 3,564 1,541 12,075 29,185 2,655,010 2,684,195 Consumer loans: Home equity 929 415 — 1,028 2,372 373,841 376,213 Automobile 3,192 723 188 146 4,249 1,134,833 1,139,082 Other consumer 76 9 21 — 106 569,393 569,499 Total consumer loans 4,197 1,147 209 1,174 6,727 2,078,067 2,084,794 Total $ 34,878 $ 18,363 $ 3,472 $ 37,508 $ 94,221 $ 15,370,380 $ 15,464,601 |
Impaired Loans | The following table presents the information about impaired loans by loan portfolio class at June 30, 2017 and December 31, 2016 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) June 30, 2017 Commercial and industrial $ 3,933 $ 56,304 $ 60,237 $ 65,809 $ 6,746 Commercial real estate: Commercial real estate 32,641 30,629 63,270 65,333 2,751 Construction 679 2,067 2,746 2,746 218 Total commercial real estate loans 33,320 32,696 66,016 68,079 2,969 Residential mortgage 8,464 7,725 16,189 17,488 582 Consumer loans: Home equity 2,888 663 3,551 3,643 51 Total consumer loans 2,888 663 3,551 3,643 51 Total $ 48,605 $ 97,388 $ 145,993 $ 155,019 $ 10,348 December 31, 2016 Commercial and industrial $ 3,609 $ 27,031 $ 30,640 $ 35,957 $ 5,864 Commercial real estate: Commercial real estate 21,318 36,974 58,292 60,267 3,612 Construction 1,618 2,379 3,997 3,997 260 Total commercial real estate loans 22,936 39,353 62,289 64,264 3,872 Residential mortgage 8,398 9,958 18,356 19,712 725 Consumer loans: Home equity 1,182 2,352 3,534 3,626 70 Total consumer loans 1,182 2,352 3,534 3,626 70 Total $ 36,125 $ 78,694 $ 114,819 $ 123,559 $ 10,531 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following tables present by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2017 and 2016 : Three Months Ended June 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 46,283 $ 288 $ 24,157 $ 194 Commercial real estate: Commercial real estate 60,119 483 70,194 475 Construction 2,759 20 10,027 53 Total commercial real estate loans 62,878 503 80,221 528 Residential mortgage 17,555 184 22,922 234 Consumer loans: Home equity 4,799 34 3,071 20 Total consumer loans 4,799 34 3,071 20 Total $ 131,515 $ 1,009 $ 130,371 $ 976 Six Months Ended June 30, 2017 2016 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 38,371 $ 596 $ 26,244 $ 434 Commercial real estate: Commercial real estate 57,722 808 71,296 1,114 Construction 2,728 39 9,915 101 Total commercial real estate loans 60,450 847 81,211 1,215 Residential mortgage 18,974 392 23,262 436 Consumer loans: Home equity 4,847 74 2,715 43 Total consumer loans 4,847 74 2,715 43 Total $ 122,642 $ 1,909 $ 133,432 $ 2,128 |
Pre-Modification and Post-Modification Outstanding Recorded Investments and Non-PCI Loans That Subsequently Defaulted | The following table presents non-PCI loans modified as TDRs within the previous 12 months for which there was a payment default ( 90 days or more past due) during the three and six months ended June 30, 2017 and 2016. Three Months Ended Three Months Ended Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 6 $ 5,358 — $ — Commercial real estate — — 2 1,070 Residential mortgage — — 1 74 Consumer — — 1 30 Total 6 $ 5,358 4 $ 1,174 Six Months Ended Six Months Ended Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 7 $ 5,433 — $ — Commercial real estate 1 736 1 214 Residential mortgage 1 153 1 74 Consumer — — 1 30 Total 9 $ 6,322 3 $ 318 The following tables present loans by loan portfolio class modified as TDRs during the three and six months ended June 30, 2017 and 2016 . The pre-modification and post-modification outstanding recorded investments disclosed in the table below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2017 and 2016 , respectively. Three Months Ended Three Months Ended Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 47 $ 40,077 $ 38,367 4 $ 5,079 $ 4,094 Commercial real estate: Commercial real estate 5 23,604 23,604 2 6,111 6,077 Construction — — — — — — Total commercial real estate 5 23,604 23,604 2 6,111 6,077 Residential mortgage 2 549 545 5 1,830 1,826 Total 54 $ 64,230 $ 62,516 11 $ 13,020 $ 11,997 Six Months Ended Six Months Ended Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 53 $ 46,315 $ 43,660 6 $ 6,456 $ 5,437 Commercial real estate: Commercial real estate 6 23,782 23,777 3 6,658 6,388 Construction 1 560 480 — — — Total commercial real estate 7 24,342 24,257 3 6,658 6,388 Residential mortgage 5 1,170 1,167 7 2,222 2,206 Consumer — — — 1 55 53 Total 65 $ 71,827 $ 69,084 17 $ 15,391 $ 14,084 |
Risk Category of Loans | The following table presents the risk category of loans (excluding PCI loans) by class of loans at June 30, 2017 and December 31, 2016 . Credit exposure - by internally assigned risk rating Pass Special Mention Substandard Doubtful Total Non-PCI Loans (in thousands) June 30, 2017 Commercial and industrial $ 2,237,178 $ 76,419 $ 98,034 $ 6,293 $ 2,417,924 Commercial real estate 8,063,898 51,960 85,377 — 8,201,235 Construction 822,602 364 2,230 — 825,196 Total $ 11,123,678 $ 128,743 $ 185,641 $ 6,293 $ 11,444,355 December 31, 2016 Commercial and industrial $ 2,246,457 $ 44,316 $ 64,649 $ 1,596 $ 2,357,018 Commercial real estate 7,486,469 57,591 84,268 — 7,628,328 Construction 708,070 200 1,996 — 710,266 Total $ 10,440,996 $ 102,107 $ 150,913 $ 1,596 $ 10,695,612 |
Recorded Investment in Loan Classes Based on Payment Activity | The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of June 30, 2017 and December 31, 2016 . Credit exposure - by payment activity Performing Loans Non-Performing Loans Total PCI Loans (in thousands) June 30, 2017 Commercial and industrial $ 201,297 $ 12,091 $ 213,388 Commercial real estate 1,014,923 14,356 1,029,279 Construction 54,775 1,102 55,877 Residential mortgage 150,031 5,246 155,277 Consumer 86,728 920 87,648 Total $ 1,507,754 $ 33,715 $ 1,541,469 December 31, 2016 Commercial and industrial $ 272,483 $ 8,694 $ 281,177 Commercial real estate 1,080,376 10,963 1,091,339 Construction 113,370 1,310 114,680 Residential mortgage 179,793 3,930 183,723 Consumer 98,469 2,114 100,583 Total $ 1,744,491 $ 27,011 $ 1,771,502 The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2017 and December 31, 2016 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) June 30, 2017 Residential mortgage $ 2,556,675 $ 12,825 $ 2,569,500 Home equity 368,066 1,306 369,372 Automobile 1,150,114 103 1,150,217 Other consumer 635,847 — 635,847 Total $ 4,710,702 $ 14,234 $ 4,724,936 December 31, 2016 Residential mortgage $ 2,672,120 $ 12,075 $ 2,684,195 Home equity 375,185 1,028 376,213 Automobile 1,138,936 146 1,139,082 Other consumer 569,499 — 569,499 Total $ 4,755,740 $ 13,249 $ 4,768,989 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses | The following table summarizes the allowance for credit losses at June 30, 2017 and December 31, 2016 : June 30, December 31, (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 116,446 $ 114,419 Allowance for unfunded letters of credit 2,175 2,185 Total allowance for credit losses $ 118,621 $ 116,604 |
Summary of Provision for Credit Losses | The following table summarizes the provision for credit losses for the periods indicated: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Components of provision for credit losses: Provision for loan losses $ 3,710 $ 1,363 $ 6,112 $ 2,092 Provision for unfunded letters of credit (78 ) 66 (10 ) 137 Total provision for credit losses $ 3,632 $ 1,429 $ 6,102 $ 2,229 |
Summary of Activity in Allowance for Loan Losses | The following table details activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2017 and 2016 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 51,288 $ 56,302 $ 3,592 $ 4,261 $ 115,443 Loans charged-off (2,910 ) (139 ) (229 ) (1,011 ) (4,289 ) Charged-off loans recovered 312 640 235 395 1,582 Net (charge-offs) recoveries (2,598 ) 501 6 (616 ) (2,707 ) Provision for loan losses 2,927 (1,348 ) 588 1,543 3,710 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Three Months Ended Allowance for loan losses: Beginning balance $ 48,417 $ 48,454 $ 4,209 $ 4,335 $ 105,415 Loans charged-off (493 ) (414 ) (151 ) (697 ) (1,755 ) Charged-off loans recovered 990 1,458 94 523 3,065 Net recoveries (charge-offs) 497 1,044 (57 ) (174 ) 1,310 Provision for loan losses (889 ) 2,379 (657 ) 530 1,363 Ending balance $ 48,025 $ 51,877 $ 3,495 $ 4,691 $ 108,088 Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 50,820 $ 55,851 $ 3,702 $ 4,046 $ 114,419 Loans charged-off (4,624 ) (553 ) (359 ) (2,132 ) (7,668 ) Charged-off loans recovered 1,160 782 683 958 3,583 Net (charge-offs) recoveries (3,464 ) 229 324 (1,174 ) (4,085 ) Provision for loan losses 4,261 (625 ) 160 2,316 6,112 Ending balance $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Six Months Ended Allowance for loan losses: Beginning balance $ 48,767 $ 48,006 $ 4,625 $ 4,780 $ 106,178 Loans charged-off (1,744 ) (519 ) (232 ) (1,771 ) (4,266 ) Charged-off loans recovered 1,516 1,547 109 912 4,084 Net (charge-offs) recoveries (228 ) 1,028 (123 ) (859 ) (182 ) Provision for loan losses (514 ) 2,843 (1,007 ) 770 2,092 Ending balance $ 48,025 $ 51,877 $ 3,495 $ 4,691 $ 108,088 |
Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Impairment Methodology | The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology at June 30, 2017 and December 31, 2016 . Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) June 30, 2017 Allowance for loan losses: Individually evaluated for impairment $ 6,746 $ 2,969 $ 582 $ 51 $ 10,348 Collectively evaluated for impairment 44,871 52,486 3,604 5,137 106,098 Total $ 51,617 $ 55,455 $ 4,186 $ 5,188 $ 116,446 Loans: Individually evaluated for impairment $ 60,237 $ 66,016 $ 16,189 $ 3,551 $ 145,993 Collectively evaluated for impairment 2,357,687 8,960,415 2,553,311 2,151,885 16,023,298 Loans acquired with discounts related to credit quality 213,388 1,085,156 155,277 87,648 1,541,469 Total $ 2,631,312 $ 10,111,587 $ 2,724,777 $ 2,243,084 $ 17,710,760 December 31, 2016 Allowance for loan losses: Individually evaluated for impairment $ 5,864 $ 3,872 $ 725 $ 70 $ 10,531 Collectively evaluated for impairment 44,956 51,979 2,977 3,976 103,888 Total $ 50,820 $ 55,851 $ 3,702 $ 4,046 $ 114,419 Loans: Individually evaluated for impairment $ 30,640 $ 62,289 $ 18,356 $ 3,534 $ 114,819 Collectively evaluated for impairment 2,326,378 8,276,305 2,665,839 2,081,260 15,349,782 Loans acquired with discounts related to credit quality 281,177 1,206,019 183,723 100,583 1,771,502 Total $ 2,638,195 $ 9,544,613 $ 2,867,918 $ 2,185,377 $ 17,236,103 |
Goodwill and Other Intangible30
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | The following table summarizes other intangible assets as of June 30, 2017 and December 31, 2016 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) June 30, 2017 Loan servicing rights $ 75,413 $ (54,253 ) $ (849 ) $ 20,311 Core deposits 43,396 (21,941 ) — 21,455 Other 4,087 (2,153 ) — 1,934 Total other intangible assets $ 122,896 $ (78,347 ) $ (849 ) $ 43,700 December 31, 2016 Loan servicing rights $ 73,002 $ (52,634 ) $ (900 ) $ 19,468 Core deposits 61,504 (37,562 ) — 23,942 Other 4,087 (2,013 ) — 2,074 Total other intangible assets $ 138,593 $ (92,209 ) $ (900 ) $ 45,484 |
Estimated Future Amortization Expense | The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2017 through 2021 : Loan Servicing Rights Core Deposits Other (in thousands) 2017 $ 2,719 $ 2,356 $ 139 2018 4,503 4,215 249 2019 3,557 3,671 235 2020 2,813 3,127 220 2021 2,115 2,582 206 |
Derivative Instruments and He31
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Derivative Instruments and Hedging Activities Disclosure [Abstract] | |
Consolidated Statements of Financial Condition Related to Fair Value of Derivative Financial Instruments | Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: June 30, 2017 December 31, 2016 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate caps and swaps $ 528 $ 31 * $ 707,000 $ 802 $ 15,641 $ 707,000 Fair value hedge interest rate swaps — 836 7,889 — 986 7,999 Total derivatives designated as hedging instruments $ 528 $ 867 $ 714,889 $ 802 $ 16,627 $ 714,999 Derivatives not designated as hedging instruments: Interest rate swaps and embedded derivatives $ 26,058 $ 22,870 * $ 1,288,274 $ 25,285 $ 25,284 $ 1,075,722 Mortgage banking derivatives 178 165 88,567 2,968 2,166 246,583 Total derivatives not designated as hedging instruments $ 26,236 $ 23,035 $ 1,376,841 $ 28,253 $ 27,450 $ 1,322,305 * The fair value for the Chicago Mercantile Exchange cleared derivative positions is inclusive of accrued interest payable and the portion of the cash collateral representing the variation margin posted with (or by) the applicable counterparties. |
Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows | osses included in the consolidated statements of income and in other comprehensive income, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (2,314 ) $ (3,597 ) $ (4,832 ) $ (6,568 ) Amount of loss recognized in other comprehensive income (1,482 ) (3,625 ) (1,265 ) (14,657 ) |
Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Fair Value | Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Derivative - interest rate swaps: Interest income $ 52 $ 2 $ 149 $ (97 ) Interest expense — 2,069 — 6,797 Hedged item - loans and borrowings: Interest income $ (52 ) $ (2 ) $ (149 ) $ 97 Interest expense — (2,060 ) — (6,779 ) |
Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments | The net losses included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Non-designated hedge interest rate derivatives Other non-interest expense $ 70 $ (92 ) $ (790 ) $ (389 ) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Offsetting [Abstract] | |
Gross Presentation Effects of Offsetting and Net Presentation of Valley's Financial Instruments | The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of June 30, 2017 and December 31, 2016 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2017 Assets: Interest rate caps and swaps $ 26,586 $ — $ 26,586 $ (3,888 ) $ — $ 22,698 Liabilities: Interest rate caps and swaps $ 23,737 $ — $ 23,737 $ (3,888 ) $ (9,314 ) (1) $ 10,535 Repurchase agreements 200,000 — 200,000 — (200,000 ) (2) — Total $ 223,737 $ — $ 223,737 $ (3,888 ) $ (209,314 ) $ 10,535 December 31, 2016 Assets: Interest rate caps and swaps $ 26,087 $ — $ 26,087 $ (5,268 ) $ — $ 20,819 Liabilities: Interest rate caps and swaps $ 41,911 $ — $ 41,911 $ (5,268 ) $ (36,643 ) (1) $ — Repurchase agreements 165,000 — 165,000 — (165,000 ) (2) — Total $ 206,911 $ — $ 206,911 $ (5,268 ) $ (201,643 ) $ — (1) Represents the amount of collateral posted with derivatives counterparties that offsets net liabilities. Actual cash collateral posted with all counterparties totaled $59.6 million and $52.4 million at June 30, 2017 and December 31, 2016 , respectively. (2) Represents the fair value of non-cash pledged investment securities. |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 6 Months Ended |
Jun. 30, 2017 | |
Income Tax Disclosure [Abstract] | |
Affordable Housing Tax Credit Investments, Other Tax Credit Investments, and Related Unfunded Commitments | The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at June 30, 2017 and December 31, 2016 . June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 28,559 $ 29,567 Other tax credit investments, net 36,204 44,763 Total tax credit investments, net $ 64,763 $ 74,330 Other Liabilities: Unfunded affordable housing tax credit commitments $ 4,690 $ 4,850 Unfunded other tax credit commitments 3,582 7,276 Total unfunded tax credit commitments $ 8,272 $ 12,126 |
Affordable Housing Tax Credit Investments and Other Tax Credit Investments | The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three and six months ended June 30, 2017 and 2016 : Three Months Ended Six Months Ended 2017 2016 2017 2016 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,271 $ 1,065 $ 2,555 $ 2,130 Other tax credit investment credits and tax benefits 8,680 3,268 14,966 6,536 Total reduction in income tax expense $ 9,951 $ 4,333 $ 17,521 $ 8,666 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 358 $ 775 $ 754 $ 1,359 Affordable housing tax credit investment impairment losses 130 60 254 200 Other tax credit investment losses 1,060 594 1,827 668 Other tax credit investment impairment losses 6,184 6,217 10,221 12,683 Total amortization of tax credit investments recorded in non-interest expense $ 7,732 $ 7,646 $ 13,056 $ 14,910 |
Basis of Presentation (Detail)
Basis of Presentation (Detail) - shares | Jun. 30, 2017 | Apr. 27, 2017 | Dec. 31, 2016 |
Accounting Policies [Abstract] | |||
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 | |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Earnings Per Share Reconciliation | ||||
Net income available to common shareholders | $ 48,268 | $ 37,230 | $ 92,566 | $ 71,620 |
Basic weighted average number of common shares outstanding (in shares) | 263,958,292 | 254,381,170 | 263,878,103 | 254,228,260 |
Plus: Common stock equivalents (in shares) | 819,950 | 390,043 | 784,760 | 347,613 |
Diluted weighted average number of common shares outstanding (in shares) | 264,778,242 | 254,771,213 | 264,662,863 | 254,575,873 |
Earnings per common share: | ||||
Basic (usd per share) | $ 0.18 | $ 0.15 | $ 0.35 | $ 0.28 |
Diluted (usd per share) | $ 0.18 | $ 0.15 | $ 0.35 | $ 0.28 |
Anti-dilutive common stock options and warrants (in shares) | 3,300,000 | 4,600,000 | 3,300,000 | 4,600,000 |
Accumulated Other Comprehensi36
Accumulated Other Comprehensive Loss - Components of AOCI (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | $ 2,377,156 | |||
Other comprehensive income before reclassifications | $ 1,044 | 2,591 | ||
Amounts reclassified from other comprehensive income | 1,363 | $ 2,152 | 2,823 | $ 3,480 |
Other comprehensive income, net | 2,407 | 5,414 | ||
Ending balance | 2,423,901 | 2,423,901 | ||
Unrealized Gains and Losses on Available for Sale (AFS) Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (8,774) | (10,094) | ||
Other comprehensive income before reclassifications | 1,896 | 3,203 | ||
Amounts reclassified from other comprehensive income | (13) | 0 | ||
Other comprehensive income, net | 1,883 | 3,203 | ||
Ending balance | (6,891) | (6,891) | ||
Non-credit Impairment Losses on AFS Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (616) | (642) | ||
Other comprehensive income before reclassifications | 21 | 134 | ||
Amounts reclassified from other comprehensive income | (39) | (126) | ||
Other comprehensive income, net | (18) | 8 | ||
Ending balance | (634) | (634) | ||
Unrealized Gains and (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (10,862) | (12,464) | ||
Other comprehensive income before reclassifications | (873) | (746) | ||
Amounts reclassified from other comprehensive income | 1,356 | 2,831 | ||
Other comprehensive income, net | 483 | 2,085 | ||
Ending balance | (10,379) | (10,379) | ||
Defined Benefit Pension Plan | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (18,834) | (18,893) | ||
Other comprehensive income before reclassifications | 0 | 0 | ||
Amounts reclassified from other comprehensive income | 59 | $ 43 | 118 | $ 86 |
Other comprehensive income, net | 59 | 118 | ||
Ending balance | (18,775) | (18,775) | ||
Total Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (39,086) | (42,093) | ||
Ending balance | $ (36,679) | $ (36,679) |
Accumulated Other Comprehensi37
Accumulated Other Comprehensive Loss - Reclassifications (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Interest and dividends on investment securities (taxable) | $ 67 | $ 0 | $ 216 | $ 489 |
Interest expense | (42,187) | (37,573) | (78,774) | (75,017) |
Tax effect | (20,714) | (15,460) | (38,785) | (29,849) |
Total net of tax | 50,065 | 39,027 | 96,160 | 75,214 |
Total reclassifications, net of tax | (1,363) | (2,152) | (2,823) | (3,480) |
Unrealized gains (losses) on AFS securities before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Total reclassifications, net of tax | 13 | 0 | ||
Non-credit impairment losses on AFS securities before tax: | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Total reclassifications, net of tax | 39 | 126 | ||
Unrealized losses on derivatives (cash flow hedges) before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Total reclassifications, net of tax | (1,356) | (2,831) | ||
Defined benefit pension plan: | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Amortization of net loss | (101) | (72) | (202) | (144) |
Tax effect | 42 | 29 | 84 | 58 |
Total reclassifications, net of tax | (59) | (43) | (118) | (86) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Interest expense | (2,314) | (3,597) | (4,832) | (6,568) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Unrealized gains (losses) on AFS securities before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Gains (losses) on securities transactions, net | 22 | (3) | (1) | 268 |
Tax effect | (9) | 1 | 1 | (100) |
Total net of tax | 13 | (2) | 0 | 168 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Non-credit impairment losses on AFS securities before tax: | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Interest and dividends on investment securities (taxable) | 67 | 0 | 215 | 489 |
Tax effect | (28) | 0 | (89) | (203) |
Total net of tax | 39 | 0 | 126 | 286 |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Unrealized losses on derivatives (cash flow hedges) before tax | ||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||
Interest expense | (2,314) | (3,597) | (4,832) | (6,568) |
Tax effect | 958 | 1,490 | 2,001 | 2,720 |
Total net of tax | $ (1,356) | $ (2,107) | $ (2,831) | $ (3,848) |
Fair Value Measurement of Ass38
Fair Value Measurement of Assets and Liabilities - Recurring and Non-Recurring Basis (Detail) - USD ($) | Jun. 30, 2017 | Dec. 31, 2016 |
Investment securities: | ||
Available for sale | $ 1,464,054,000 | $ 1,297,373,000 |
Loans held for sale | 17,919,000 | 57,708,000 |
Non-recurring fair value measurements: | ||
Unpaid principal balances of loans held for sale | 17,500,000 | 58,200,000 |
Covered real estate owned | 0 | 558,000 |
U.S. Treasury securities | ||
Investment securities: | ||
Available for sale | 50,097,000 | 49,591,000 |
U.S. government agency securities | ||
Investment securities: | ||
Available for sale | 46,368,000 | 23,041,000 |
Obligations of states and political subdivisions | ||
Investment securities: | ||
Available for sale | 119,194,000 | 119,767,000 |
Residential mortgage-backed securities | ||
Investment securities: | ||
Available for sale | 1,163,720,000 | 1,015,542,000 |
Trust preferred securities | ||
Investment securities: | ||
Available for sale | 6,219,000 | 8,009,000 |
Corporate and other debt securities | ||
Investment securities: | ||
Available for sale | 67,674,000 | 60,565,000 |
Equity securities | ||
Investment securities: | ||
Available for sale | 10,782,000 | 20,858,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | ||
Investment securities: | ||
Available for sale | 58,973,000 | 58,961,000 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 58,973,000 | 58,961,000 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities: | ||
Available for sale | 50,097,000 | 49,591,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Trust preferred securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities: | ||
Available for sale | 7,956,000 | 8,064,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Equity securities | ||
Investment securities: | ||
Available for sale | 920,000 | 1,306,000 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent impaired loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | ||
Investment securities: | ||
Available for sale | 1,394,351,000 | 1,226,524,000 |
Loans held for sale | 17,919,000 | 57,708,000 |
Other assets | 26,764,000 | 29,055,000 |
Total assets | 1,439,034,000 | 1,313,287,000 |
Liabilities | ||
Other liabilities | 23,902,000 | 44,077,000 |
Total liabilities | 23,902,000 | 44,077,000 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities: | ||
Available for sale | 46,368,000 | 23,041,000 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities: | ||
Available for sale | 119,194,000 | 119,767,000 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities: | ||
Available for sale | 1,154,868,000 | 1,005,589,000 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Trust preferred securities | ||
Investment securities: | ||
Available for sale | 4,341,000 | 6,074,000 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities: | ||
Available for sale | 59,718,000 | 52,501,000 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Equity securities | ||
Investment securities: | ||
Available for sale | 9,862,000 | 19,552,000 |
Significant Other Observable Inputs (Level 2) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent impaired loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | ||
Investment securities: | ||
Available for sale | 10,730,000 | 11,888,000 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 10,730,000 | 11,888,000 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities: | ||
Available for sale | 8,852,000 | 9,953,000 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Trust preferred securities | ||
Investment securities: | ||
Available for sale | 1,878,000 | 1,935,000 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Equity securities | ||
Investment securities: | ||
Available for sale | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent impaired loans | 31,489,000 | 5,385,000 |
Loan servicing rights | 7,410,000 | 6,489,000 |
Foreclosed assets | 1,340,000 | 4,532,000 |
Total | 40,239,000 | 16,406,000 |
Fair Value | Recurring fair value measurements | ||
Investment securities: | ||
Available for sale | 1,464,054,000 | 1,297,373,000 |
Loans held for sale | 17,919,000 | 57,708,000 |
Other assets | 26,764,000 | 29,055,000 |
Total assets | 1,508,737,000 | 1,384,136,000 |
Liabilities | ||
Other liabilities | 23,902,000 | 44,077,000 |
Total liabilities | 23,902,000 | 44,077,000 |
Fair Value | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities: | ||
Available for sale | 50,097,000 | 49,591,000 |
Fair Value | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities: | ||
Available for sale | 46,368,000 | 23,041,000 |
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities: | ||
Available for sale | 119,194,000 | 119,767,000 |
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities: | ||
Available for sale | 1,163,720,000 | 1,015,542,000 |
Fair Value | Recurring fair value measurements | Trust preferred securities | ||
Investment securities: | ||
Available for sale | 6,219,000 | 8,009,000 |
Fair Value | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities: | ||
Available for sale | 67,674,000 | 60,565,000 |
Fair Value | Recurring fair value measurements | Equity securities | ||
Investment securities: | ||
Available for sale | 10,782,000 | 20,858,000 |
Fair Value | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent impaired loans | 31,489,000 | 5,385,000 |
Loan servicing rights | 7,410,000 | 6,489,000 |
Foreclosed assets | 1,340,000 | 4,532,000 |
Total | $ 40,239,000 | $ 16,406,000 |
Fair Value Measurement of Ass39
Fair Value Measurement of Assets and Liabilities - Changes in Level 3 Assets (Detail) - Available for Sale Securities - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Changes in Level 3 Assets | ||||
Balance, beginning of the period | $ 11,367 | $ 12,949 | $ 11,888 | $ 13,793 |
Total net (losses) gains included in other comprehensive income | (31) | 514 | 13 | (71) |
Settlements, net | (606) | (362) | (1,171) | (621) |
Balance, end of the period | $ 10,730 | $ 13,101 | $ 10,730 | $ 13,101 |
Fair Value Measurement of Ass40
Fair Value Measurement of Assets and Liabilities - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Fair Value Assets Measured On Recurring Basis | ||||
Impaired collateral dependent loans, charge-offs | $ 1,900,000 | $ 473,000 | $ 2,100,000 | $ 952,000 |
Collateral dependent impaired loans, recorded investment | 35,200,000 | 35,200,000 | ||
Specific valuation allowance allocations | 3,700,000 | 3,700,000 | ||
Reported net carrying amount of impaired loans | 31,500,000 | $ 31,500,000 | ||
Valuation of loan servicing rights, discount rate | 8.00% | |||
Net impairment charges (recoveries) on its loan servicing rights | (50,000) | 265,000 | $ (51,000) | 457,000 |
Foreclosed assets measured at fair value upon initial recognition | 1,300,000 | |||
Allowance for loan losses, charge-offs | 282,000 | 489,000 | 994,000 | 922,000 |
Loss due to re-measurement of repossessed assets | 295,000 | $ 290,000 | 912,000 | |
Minimum | ||||
Fair Value Assets Measured On Recurring Basis | ||||
Valuation of loan servicing rights, prepayment rate | 0.00% | |||
Maximum | ||||
Fair Value Assets Measured On Recurring Basis | ||||
Valuation of loan servicing rights, prepayment rate | 25.00% | |||
Available for Sale Securities | ||||
Fair Value Assets Measured On Recurring Basis | ||||
Changes in unrealized losses on Level 3 securities | $ 0 | $ 0 | $ 0 | $ 0 |
Fair Value Measurement of Ass41
Fair Value Measurement of Assets and Liabilities - Quantitative Information about Level 3 Inputs (Detail) - Significant Unobservable Inputs (Level 3) - Residential mortgage-backed securities - Discounted cash flow | 6 Months Ended |
Jun. 30, 2017 | |
Minimum | |
Fair Value Assets Measured On Recurring Basis | |
Prepayment rate | 6.20% |
Default rate | 2.60% |
Loss severity | 47.20% |
Maximum | |
Fair Value Assets Measured On Recurring Basis | |
Prepayment rate | 31.60% |
Default rate | 36.70% |
Loss severity | 66.00% |
Weighted Average | |
Fair Value Assets Measured On Recurring Basis | |
Prepayment rate | 19.80% |
Default rate | 7.50% |
Loss severity | 60.40% |
Fair Value Measurement of Ass42
Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Interest bearing deposits with banks | $ 129,959 | $ 171,710 |
Investment securities held to maturity: | 1,828,732 | 1,924,597 |
Accrued interest receivable | 69,732 | 66,816 |
Deposits with stated maturities | 3,368,993 | 3,138,871 |
Carrying Amount | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,822,263 | 1,925,572 |
Carrying Amount | Level 1 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Cash and due from banks | 227,830 | 220,791 |
Interest bearing deposits with banks | 129,959 | 171,710 |
Accrued interest receivable | 69,732 | 66,816 |
Federal Reserve Bank and Federal Home Loan Bank stock | 201,116 | 147,127 |
Deposits without stated maturities | 13,881,025 | 14,591,837 |
Short-term borrowings | 1,734,444 | 1,080,960 |
Accrued interest payable | 10,931 | 10,675 |
Carrying Amount | Level 1 | U.S. Treasury securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 138,754 | 138,830 |
Carrying Amount | Level 2 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Deposits with stated maturities | 3,368,993 | 3,138,871 |
Long-term borrowings | 1,819,615 | 1,433,906 |
Junior subordinated debentures issued to capital trusts | 41,658 | 41,577 |
Carrying Amount | Level 2 | U.S. government agency securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 10,597 | 11,329 |
Carrying Amount | Level 2 | Obligations of states and political subdivisions | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 501,402 | 566,590 |
Carrying Amount | Level 2 | Residential mortgage-backed securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,070,137 | 1,112,460 |
Carrying Amount | Level 2 | Trust preferred securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 59,814 | 59,804 |
Carrying Amount | Level 2 | Corporate and other debt securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 41,559 | 36,559 |
Carrying Amount | Level 3 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Net loans | 17,594,314 | 17,121,684 |
Fair Value | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,828,732 | 1,924,597 |
Fair Value | Level 1 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Cash and due from banks | 227,830 | 220,791 |
Interest bearing deposits with banks | 129,959 | 171,710 |
Accrued interest receivable | 69,732 | 66,816 |
Federal Reserve Bank and Federal Home Loan Bank stock | 201,116 | 147,127 |
Deposits without stated maturities | 13,881,025 | 14,591,837 |
Short-term borrowings | 1,739,208 | 1,081,751 |
Accrued interest payable | 10,931 | 10,675 |
Fair Value | Level 1 | U.S. Treasury securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 147,656 | 147,495 |
Fair Value | Level 2 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Deposits with stated maturities | 3,375,127 | 3,160,572 |
Long-term borrowings | 1,906,668 | 1,523,386 |
Junior subordinated debentures issued to capital trusts | 46,298 | 45,785 |
Fair Value | Level 2 | U.S. government agency securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 10,802 | 11,464 |
Fair Value | Level 2 | Obligations of states and political subdivisions | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 517,830 | 577,826 |
Fair Value | Level 2 | Residential mortgage-backed securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 1,062,008 | 1,102,802 |
Fair Value | Level 2 | Trust preferred securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 48,268 | 47,290 |
Fair Value | Level 2 | Corporate and other debt securities | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Investment securities held to maturity: | 42,168 | 37,720 |
Fair Value | Level 3 | ||
Fair value and carrying amounts of assets and liabilities not measured and not reported at fair value on the consolidated statement of financial condition | ||
Net loans | $ 17,187,164 | $ 16,756,655 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Held to Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities | ||
Amortized Cost | $ 1,822,263 | $ 1,925,572 |
Gross Unrealized Gains | 35,866 | 31,592 |
Gross Unrealized Losses | (29,397) | (32,567) |
Fair Value | 1,828,732 | 1,924,597 |
U.S. Treasury securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 138,754 | 138,830 |
Gross Unrealized Gains | 8,902 | 8,665 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 147,656 | 147,495 |
U.S. government agency securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 10,597 | 11,329 |
Gross Unrealized Gains | 205 | 135 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 10,802 | 11,464 |
Obligations of states and state agencies | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 249,607 | 252,185 |
Gross Unrealized Gains | 9,623 | 6,692 |
Gross Unrealized Losses | (1,688) | (1,428) |
Fair Value | 257,542 | 257,449 |
Municipal bonds | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 251,795 | 314,405 |
Gross Unrealized Gains | 8,519 | 6,438 |
Gross Unrealized Losses | (26) | (466) |
Fair Value | 260,288 | 320,377 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 501,402 | 566,590 |
Gross Unrealized Gains | 18,142 | 13,130 |
Gross Unrealized Losses | (1,714) | (1,894) |
Fair Value | 517,830 | 577,826 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 1,070,137 | 1,112,460 |
Gross Unrealized Gains | 7,658 | 8,432 |
Gross Unrealized Losses | (15,787) | (18,090) |
Fair Value | 1,062,008 | 1,102,802 |
Trust preferred securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 59,814 | 59,804 |
Gross Unrealized Gains | 32 | 40 |
Gross Unrealized Losses | (11,578) | (12,554) |
Fair Value | 48,268 | 47,290 |
Corporate and other debt securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 41,559 | 36,559 |
Gross Unrealized Gains | 927 | 1,190 |
Gross Unrealized Losses | (318) | (29) |
Fair Value | $ 42,168 | $ 37,720 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses and Fair Value of Held to Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | $ 695,410 | $ 820,561 |
Less than Twelve Months, Unrealized Losses | (13,892) | (16,343) |
More than Twelve Months, Fair Value | 193,857 | 160,403 |
More than Twelve Months, Unrealized Losses | (15,505) | (16,224) |
Total, Fair Value | 889,267 | 980,964 |
Total, Unrealized Losses | (29,397) | (32,567) |
Obligations of states and state agencies | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 63,537 | 98,114 |
Less than Twelve Months, Unrealized Losses | (1,688) | (1,428) |
More than Twelve Months, Fair Value | 0 | 0 |
More than Twelve Months, Unrealized Losses | 0 | 0 |
Total, Fair Value | 63,537 | 98,114 |
Total, Unrealized Losses | (1,688) | (1,428) |
Municipal bonds | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 4,664 | 27,368 |
Less than Twelve Months, Unrealized Losses | (26) | (466) |
More than Twelve Months, Fair Value | 0 | 0 |
More than Twelve Months, Unrealized Losses | 0 | 0 |
Total, Fair Value | 4,664 | 27,368 |
Total, Unrealized Losses | (26) | (466) |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 68,201 | 125,482 |
Less than Twelve Months, Unrealized Losses | (1,714) | (1,894) |
More than Twelve Months, Fair Value | 0 | 0 |
More than Twelve Months, Unrealized Losses | 0 | 0 |
Total, Fair Value | 68,201 | 125,482 |
Total, Unrealized Losses | (1,714) | (1,894) |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 622,527 | 692,108 |
Less than Twelve Months, Unrealized Losses | (11,860) | (14,420) |
More than Twelve Months, Fair Value | 156,974 | 114,505 |
More than Twelve Months, Unrealized Losses | (3,927) | (3,670) |
Total, Fair Value | 779,501 | 806,613 |
Total, Unrealized Losses | (15,787) | (18,090) |
Trust preferred securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 0 | 0 |
Less than Twelve Months, Unrealized Losses | 0 | 0 |
More than Twelve Months, Fair Value | 36,883 | 45,898 |
More than Twelve Months, Unrealized Losses | (11,578) | (12,554) |
Total, Fair Value | 36,883 | 45,898 |
Total, Unrealized Losses | (11,578) | (12,554) |
Corporate and other debt securities | ||
Schedule of Held-to-maturity Securities | ||
Less than Twelve Months, Fair Value | 4,682 | 2,971 |
Less than Twelve Months, Unrealized Losses | (318) | (29) |
More than Twelve Months, Fair Value | 0 | 0 |
More than Twelve Months, Unrealized Losses | 0 | 0 |
Total, Fair Value | 4,682 | 2,971 |
Total, Unrealized Losses | $ (318) | $ (29) |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Jun. 30, 2017USD ($)Security | Jun. 30, 2016USD ($) | Dec. 31, 2016USD ($)Security | |
Investment Securities [Line Items] | |||||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position (in security) | Security | 121 | 121 | 132 | ||
Fair value of investments held to maturity pledged as collateral | $ 997,200,000 | $ 997,200,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years | 7 years 6 months | ||||
Number of security positions in the securities available for sale portfolio in an unrealized loss position (in security) | Security | 274 | 274 | 298 | ||
Amortized cost | $ 1,476,915,000 | $ 1,476,915,000 | $ 1,315,723,000 | ||
Available for sale | 1,464,054,000 | 1,464,054,000 | 1,297,373,000 | ||
Gross unrealized losses | 17,957,000 | 17,957,000 | $ 22,416,000 | ||
Fair value of securities available for sale pledged as collateral | 703,900,000 | $ 703,900,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years | 9 years 1 month | ||||
Other than temporary impairment losses recognized in earnings | 0 | $ 0 | $ 0 | $ 0 | |
Previously Other-Than-Temporarily Impaired Securities | Trust Preferred Securities Subject to Mandatory Redemption | |||||
Investment Securities [Line Items] | |||||
Amortized cost | 2,800,000 | 2,800,000 | |||
Available for sale | $ 1,900,000 | $ 1,900,000 | |||
Pooled Trust Preferred Securities | |||||
Investment Securities [Line Items] | |||||
Number of security positions in the securities available for sale portfolio in an unrealized loss position (in security) | Security | 2 | 2 | |||
Amortized cost | $ 7,800,000 | $ 7,800,000 | |||
Available for sale | 6,200,000 | 6,200,000 | |||
Pooled Trust Preferred Securities | Investment Grade | |||||
Investment Securities [Line Items] | |||||
Gross unrealized losses | 703,000 | 703,000 | |||
Four Private Label Mortgage-Backed Securities | |||||
Investment Securities [Line Items] | |||||
Amortized cost | 9,100,000 | 9,100,000 | |||
Available for sale | $ 8,900,000 | $ 8,900,000 | |||
Single Issuer Trust Preferred Securities | Non-Rated | |||||
Investment Securities [Line Items] | |||||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position (in security) | Security | 4 | 4 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Held to Maturity (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Amortized Cost | ||
Due in one year | $ 53,859 | |
Due after one year through five years | 210,615 | |
Due after five years through ten years | 325,933 | |
Due after ten years | 161,719 | |
Residential mortgage-backed securities | 1,070,137 | |
Amortized Cost | 1,822,263 | $ 1,925,572 |
Fair Value | ||
Due in one year | 54,621 | |
Due after one year through five years | 218,428 | |
Due after five years through ten years | 343,717 | |
Due after ten years | 149,958 | |
Residential mortgage-backed securities | 1,062,008 | |
Total investment securities held to maturity | $ 1,828,732 | $ 1,924,597 |
Investment Securities - Amort47
Investment Securities - Amortized Cost, Securities Available for Sale (Detail) $ in Thousands | Jun. 30, 2017USD ($)Security | Dec. 31, 2016USD ($)Security |
Schedule of Available-for-sale Securities | ||
Amortized Cost | $ 1,476,915 | $ 1,315,723 |
Gross Unrealized Gains | 5,096 | 4,066 |
Gross Unrealized Losses | (17,957) | (22,416) |
Fair Value | 1,464,054 | 1,297,373 |
U.S. Treasury securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 51,009 | 51,020 |
Gross Unrealized Gains | 7 | 6 |
Gross Unrealized Losses | (919) | (1,435) |
Fair Value | 50,097 | 49,591 |
U.S. government agency securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 46,147 | 22,815 |
Gross Unrealized Gains | 292 | 232 |
Gross Unrealized Losses | (71) | (6) |
Fair Value | 46,368 | 23,041 |
Obligations of states and state agencies | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 39,286 | 40,696 |
Gross Unrealized Gains | 336 | 70 |
Gross Unrealized Losses | (218) | (424) |
Fair Value | 39,404 | 40,342 |
Municipal bonds | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 79,824 | 80,045 |
Gross Unrealized Gains | 459 | 147 |
Gross Unrealized Losses | (493) | (767) |
Fair Value | 79,790 | 79,425 |
Obligations of states and political subdivisions | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 119,110 | 120,741 |
Gross Unrealized Gains | 795 | 217 |
Gross Unrealized Losses | (711) | (1,191) |
Fair Value | 119,194 | 119,767 |
Residential mortgage-backed securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 1,175,171 | 1,029,827 |
Gross Unrealized Gains | 2,564 | 2,061 |
Gross Unrealized Losses | (14,015) | (16,346) |
Fair Value | 1,163,720 | 1,015,542 |
Trust preferred securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 7,796 | 10,164 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (1,577) | (2,155) |
Fair Value | 6,219 | 8,009 |
Corporate and other debt securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 67,177 | 60,651 |
Gross Unrealized Gains | 701 | 436 |
Gross Unrealized Losses | (204) | (522) |
Fair Value | 67,674 | 60,565 |
Equity securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 10,505 | 20,505 |
Gross Unrealized Gains | 737 | 1,114 |
Gross Unrealized Losses | (460) | (761) |
Fair Value | 10,782 | $ 20,858 |
Pooled Trust Preferred Securities | ||
Schedule of Available-for-sale Securities | ||
Amortized Cost | 7,800 | |
Fair Value | $ 6,200 | |
Number of available for sale securities (in security) | Security | 2 | 2 |
Investment Securities - Unrea48
Investment Securities - Unrealized Losses and Fair Value Available for Sale (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Fair Value | ||
Less than Twelve Months | $ 881,521 | $ 942,713 |
More than Twelve Months | 175,334 | 186,670 |
Total | 1,056,855 | 1,129,383 |
Unrealized Losses | ||
Less than Twelve Months | (11,104) | (14,532) |
More than Twelve Months | (6,853) | (7,884) |
Total | (17,957) | (22,416) |
U.S. Treasury securities | ||
Fair Value | ||
Less than Twelve Months | 49,168 | 48,660 |
More than Twelve Months | 0 | 0 |
Total | 49,168 | 48,660 |
Unrealized Losses | ||
Less than Twelve Months | (919) | (1,435) |
More than Twelve Months | 0 | 0 |
Total | (919) | (1,435) |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 31,236 | 2,530 |
More than Twelve Months | 3,808 | 4,034 |
Total | 35,044 | 6,564 |
Unrealized Losses | ||
Less than Twelve Months | (68) | (4) |
More than Twelve Months | (3) | (2) |
Total | (71) | (6) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 13,118 | 28,628 |
More than Twelve Months | 1,628 | 753 |
Total | 14,746 | 29,381 |
Unrealized Losses | ||
Less than Twelve Months | (169) | (404) |
More than Twelve Months | (49) | (20) |
Total | (218) | (424) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 18,302 | 42,573 |
More than Twelve Months | 11,059 | 11,081 |
Total | 29,361 | 53,654 |
Unrealized Losses | ||
Less than Twelve Months | (193) | (506) |
More than Twelve Months | (300) | (261) |
Total | (493) | (767) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 31,420 | 71,201 |
More than Twelve Months | 12,687 | 11,834 |
Total | 44,107 | 83,035 |
Unrealized Losses | ||
Less than Twelve Months | (362) | (910) |
More than Twelve Months | (349) | (281) |
Total | (711) | (1,191) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 739,362 | 788,030 |
More than Twelve Months | 136,402 | 132,718 |
Total | 875,764 | 920,748 |
Unrealized Losses | ||
Less than Twelve Months | (9,680) | (11,889) |
More than Twelve Months | (4,335) | (4,457) |
Total | (14,015) | (16,346) |
Trust preferred securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | 6,219 | 8,009 |
Total | 6,219 | 8,009 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (1,577) | (2,155) |
Total | (1,577) | (2,155) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 30,335 | 32,292 |
More than Twelve Months | 11,034 | 15,192 |
Total | 41,369 | 47,484 |
Unrealized Losses | ||
Less than Twelve Months | (75) | (294) |
More than Twelve Months | (129) | (228) |
Total | (204) | (522) |
Equity securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | 5,184 | 14,883 |
Total | 5,184 | 14,883 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (460) | (761) |
Total | $ (460) | $ (761) |
Investment Securities - Contr49
Investment Securities - Contractual Maturities of Available for Sale (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Amortized Cost | |
Due in one year | $ 24,831 |
Due after one year through five years | 70,802 |
Due after five years through ten years | 115,497 |
Due after ten years | 80,109 |
Total investment securities available for sale, Amortized Cost | 1,476,915 |
Fair Value | |
Due in one year | 24,752 |
Due after one year through five years | 74,052 |
Due after five years through ten years | 114,927 |
Due after ten years | 78,821 |
Total investment securities available for sale, Fair Value | 1,467,054 |
Residential mortgage-backed securities | |
Amortized Cost | |
Securities without a single maturity date | 1,175,171 |
Fair Value | |
Securities without a single maturity date | 1,163,720 |
Equity securities | |
Amortized Cost | |
Securities without a single maturity date | 10,505 |
Fair Value | |
Securities without a single maturity date | $ 10,782 |
Investment Securities - Credit
Investment Securities - Credit Loss Component of Cumulative OTTI Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Other than Temporary Impairment, Credit Losses Recognized in Earnings [Roll Forward] | ||||
Balance, beginning of period | $ 4,767 | $ 5,348 | $ 4,916 | $ 5,837 |
Accretion of credit loss impairment due to an increase in expected cash flows | (67) | 0 | (216) | (489) |
Balance, end of period | $ 4,700 | $ 5,348 | $ 4,700 | $ 5,348 |
Loans - Non-Covered and Covered
Loans - Non-Covered and Covered PCI Loans and Non-PCI Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 17,710,760 | $ 17,236,103 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,631,312 | 2,638,195 |
Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 10,111,587 | 9,544,613 |
Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 9,230,514 | 8,719,667 |
Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 881,073 | 824,946 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,724,777 | 2,867,918 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,243,084 | 2,185,377 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 450,510 | 469,009 |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,150,343 | 1,139,227 |
Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 642,231 | 577,141 |
Non-PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 16,169,291 | 15,464,601 |
Non-PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,417,924 | 2,357,018 |
Non-PCI Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 9,026,431 | 8,338,594 |
Non-PCI Loans | Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 8,201,235 | 7,628,328 |
Non-PCI Loans | Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 825,196 | 710,266 |
Non-PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,569,500 | 2,684,195 |
Non-PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,155,436 | 2,084,794 |
Non-PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 369,372 | 376,213 |
Non-PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,150,217 | 1,139,082 |
Non-PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 635,847 | 569,499 |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,541,469 | 1,771,502 |
Covered loans | 44,500 | 70,400 |
PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 213,388 | 281,177 |
PCI Loans | Commercial Real Estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,085,156 | 1,206,019 |
PCI Loans | Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,029,279 | 1,091,339 |
PCI Loans | Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 55,877 | 114,680 |
PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 155,277 | 183,723 |
PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 87,648 | 100,583 |
PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 81,138 | 92,796 |
PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 126 | 145 |
PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 6,384 | $ 7,642 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Accounts, Notes, Loans and Financing Receivable | |||||
Non-covered loans net of unearned premiums, discounts and deferred loan fees | $ 16,700,000 | $ 16,700,000 | $ 15,300,000 | ||
Outstanding balances for PCI loans | 1,700,000,000 | 1,700,000,000 | 1,900,000,000 | ||
Transfer of loans to loans held for sale | 225,541,000 | $ 0 | |||
Sales of loans | 0 | $ 0 | 0 | 0 | |
FDIC loss-share receivable | 7,100,000 | $ 7,100,000 | 7,200,000 | ||
Number of consecutive months for performing restructured loans to be put on accrual status | 6 months | ||||
TDRs not reported as non-accrual loans | 109,800,000 | $ 109,800,000 | 85,200,000 | ||
Non-performing TDRs | 15,800,000 | 15,800,000 | 10,600,000 | ||
Specific reserves for loan losses | 5,300,000 | 2,100,000 | |||
Partial loan charge-offs related to loans modified as TDRs | 0 | 0 | $ 209,000 | ||
Other real estate owned | 10,200,000 | 10,200,000 | 10,200,000 | ||
Other real estate owned covered by loss sharing agreements | 0 | 0 | 558,000 | ||
Residential real estate properties | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Other real estate owned | 2,300,000 | 2,300,000 | 1,600,000 | ||
In formal foreclosure proceedings | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Residential mortgage and consumer loans secured by residential real estate properties | 6,200,000 | 6,200,000 | 7,100,000 | ||
Commercial and industrial | Commercial and industrial | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Impaired loans | 250,000 | 250,000 | |||
PCI Loans | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Total PCI Loans including covered loans | $ 44,500,000 | 44,500,000 | $ 70,400,000 | ||
Residential mortgage | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Transfer of loans to loans held for sale | $ 225,500,000 |
Loans - Changes in Accretable Y
Loans - Changes in Accretable Yield (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance, beginning of period | $ 269,831 | $ 387,120 | $ 294,514 | $ 415,179 |
Accretion | (23,553) | (31,519) | (48,236) | (59,578) |
Balance, end of period | $ 246,278 | $ 355,601 | $ 246,278 | $ 355,601 |
Loans - Past Due, Non-Accrual a
Loans - Past Due, Non-Accrual and Current Non-Covered Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | $ 42,154 | $ 37,508 |
Total Past Due Loans | 83,921 | 94,221 |
Current Non-PCI Loans | 16,085,370 | 15,370,380 |
Total Non-PCI Loans | 16,169,291 | 15,464,601 |
30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 18,444 | 34,878 |
60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 14,501 | 18,363 |
Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 8,822 | 3,472 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 11,072 | 8,465 |
Total Past Due Loans | 16,149 | 20,322 |
Current Non-PCI Loans | 2,401,775 | 2,336,696 |
Total Non-PCI Loans | 2,417,924 | 2,357,018 |
Commercial and industrial | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,391 | 6,705 |
Commercial and industrial | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,686 | 5,010 |
Commercial and industrial | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 142 |
Commercial Real Estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 16,848 | 15,794 |
Total Past Due Loans | 38,112 | 37,987 |
Current Non-PCI Loans | 8,988,319 | 8,300,607 |
Total Non-PCI Loans | 9,026,431 | 8,338,594 |
Commercial Real Estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,983 | 11,971 |
Commercial Real Estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 9,087 | 8,642 |
Commercial Real Estate | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 5,194 | 1,580 |
Commercial Real Estate | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 15,514 | 15,079 |
Total Past Due Loans | 33,045 | 30,089 |
Current Non-PCI Loans | 8,168,190 | 7,598,239 |
Total Non-PCI Loans | 8,201,235 | 7,628,328 |
Commercial Real Estate | Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,983 | 5,894 |
Commercial Real Estate | Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 8,233 | 8,642 |
Commercial Real Estate | Commercial real estate | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,315 | 474 |
Commercial Real Estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 1,334 | 715 |
Total Past Due Loans | 5,067 | 7,898 |
Current Non-PCI Loans | 820,129 | 702,368 |
Total Non-PCI Loans | 825,196 | 710,266 |
Commercial Real Estate | Construction | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 6,077 |
Commercial Real Estate | Construction | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 854 | 0 |
Commercial Real Estate | Construction | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 2,879 | 1,106 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 12,825 | 12,075 |
Total Past Due Loans | 22,576 | 29,185 |
Current Non-PCI Loans | 2,546,924 | 2,655,010 |
Total Non-PCI Loans | 2,569,500 | 2,684,195 |
Residential mortgage | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,677 | 12,005 |
Residential mortgage | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,721 | 3,564 |
Residential mortgage | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 3,353 | 1,541 |
Consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 1,409 | 1,174 |
Total Past Due Loans | 7,084 | 6,727 |
Current Non-PCI Loans | 2,148,352 | 2,078,067 |
Total Non-PCI Loans | 2,155,436 | 2,084,794 |
Consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,393 | 4,197 |
Consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,007 | 1,147 |
Consumer | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 275 | 209 |
Consumer | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 1,306 | 1,028 |
Total Past Due Loans | 2,523 | 2,372 |
Current Non-PCI Loans | 366,849 | 373,841 |
Total Non-PCI Loans | 369,372 | 376,213 |
Consumer | Home equity | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 988 | 929 |
Consumer | Home equity | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 229 | 415 |
Consumer | Home equity | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Consumer | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 103 | 146 |
Total Past Due Loans | 4,374 | 4,249 |
Current Non-PCI Loans | 1,145,843 | 1,134,833 |
Total Non-PCI Loans | 1,150,217 | 1,139,082 |
Consumer | Automobile | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 3,242 | 3,192 |
Consumer | Automobile | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 774 | 723 |
Consumer | Automobile | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 255 | 188 |
Consumer | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 0 | 0 |
Total Past Due Loans | 187 | 106 |
Current Non-PCI Loans | 635,660 | 569,393 |
Total Non-PCI Loans | 635,847 | 569,499 |
Consumer | Other consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 163 | 76 |
Consumer | Other consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4 | 9 |
Consumer | Other consumer | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | $ 20 | $ 21 |
Loans - Impaired Loans (Detail)
Loans - Impaired Loans (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | $ 48,605 | $ 36,125 |
Recorded Investment With Related Allowance | 97,388 | 78,694 |
Total Recorded Investment | 145,993 | 114,819 |
Unpaid Contractual Principal Balance | 155,019 | 123,559 |
Related Allowance | 10,348 | 10,531 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 3,933 | 3,609 |
Recorded Investment With Related Allowance | 56,304 | 27,031 |
Total Recorded Investment | 60,237 | 30,640 |
Unpaid Contractual Principal Balance | 65,809 | 35,957 |
Related Allowance | 6,746 | 5,864 |
Commercial Real Estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 33,320 | 22,936 |
Recorded Investment With Related Allowance | 32,696 | 39,353 |
Total Recorded Investment | 66,016 | 62,289 |
Unpaid Contractual Principal Balance | 68,079 | 64,264 |
Related Allowance | 2,969 | 3,872 |
Commercial Real Estate | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 32,641 | 21,318 |
Recorded Investment With Related Allowance | 30,629 | 36,974 |
Total Recorded Investment | 63,270 | 58,292 |
Unpaid Contractual Principal Balance | 65,333 | 60,267 |
Related Allowance | 2,751 | 3,612 |
Commercial Real Estate | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 679 | 1,618 |
Recorded Investment With Related Allowance | 2,067 | 2,379 |
Total Recorded Investment | 2,746 | 3,997 |
Unpaid Contractual Principal Balance | 2,746 | 3,997 |
Related Allowance | 218 | 260 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 8,464 | 8,398 |
Recorded Investment With Related Allowance | 7,725 | 9,958 |
Total Recorded Investment | 16,189 | 18,356 |
Unpaid Contractual Principal Balance | 17,488 | 19,712 |
Related Allowance | 582 | 725 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 2,888 | 1,182 |
Recorded Investment With Related Allowance | 663 | 2,352 |
Total Recorded Investment | 3,551 | 3,534 |
Unpaid Contractual Principal Balance | 3,643 | 3,626 |
Related Allowance | 51 | 70 |
Consumer | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 2,888 | 1,182 |
Recorded Investment With Related Allowance | 663 | 2,352 |
Total Recorded Investment | 3,551 | 3,534 |
Unpaid Contractual Principal Balance | 3,643 | 3,626 |
Related Allowance | $ 51 | $ 70 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment and Interest Income on Impaired Loans (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | $ 131,515 | $ 130,371 | $ 122,642 | $ 133,432 |
Interest Income Recognized | 1,009 | 976 | 1,909 | 2,128 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 46,283 | 24,157 | 38,371 | 26,244 |
Interest Income Recognized | 288 | 194 | 596 | 434 |
Commercial Real Estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 62,878 | 80,221 | 60,450 | 81,211 |
Interest Income Recognized | 503 | 528 | 847 | 1,215 |
Commercial Real Estate | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 60,119 | 70,194 | 57,722 | 71,296 |
Interest Income Recognized | 483 | 475 | 808 | 1,114 |
Commercial Real Estate | Construction | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 2,759 | 10,027 | 2,728 | 9,915 |
Interest Income Recognized | 20 | 53 | 39 | 101 |
Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 17,555 | 22,922 | 18,974 | 23,262 |
Interest Income Recognized | 184 | 234 | 392 | 436 |
Consumer | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 4,799 | 3,071 | 4,847 | 2,715 |
Interest Income Recognized | 34 | 20 | 74 | 43 |
Consumer | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 4,799 | 3,071 | 4,847 | 2,715 |
Interest Income Recognized | $ 34 | $ 20 | $ 74 | $ 43 |
Loans - Pre-Modification and Po
Loans - Pre-Modification and Post-Modification (Detail) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)Contract | Jun. 30, 2016USD ($)Contract | Jun. 30, 2017USD ($)Contract | Jun. 30, 2016USD ($)Contract | |
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 54 | 11 | 65 | 17 |
Pre-Modification Outstanding Recorded Investment | $ 64,230 | $ 13,020 | $ 71,827 | $ 15,391 |
Post-Modification Outstanding Recorded Investment | $ 62,516 | $ 11,997 | $ 69,084 | $ 14,084 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 47 | 4 | 53 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 40,077 | $ 5,079 | $ 46,315 | $ 6,456 |
Post-Modification Outstanding Recorded Investment | $ 38,367 | $ 4,094 | $ 43,660 | $ 5,437 |
Commercial Real Estate | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 5 | 2 | 7 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 23,604 | $ 6,111 | $ 24,342 | $ 6,658 |
Post-Modification Outstanding Recorded Investment | $ 23,604 | $ 6,077 | $ 24,257 | $ 6,388 |
Commercial Real Estate | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 5 | 2 | 6 | 3 |
Pre-Modification Outstanding Recorded Investment | $ 23,604 | $ 6,111 | $ 23,782 | $ 6,658 |
Post-Modification Outstanding Recorded Investment | $ 23,604 | $ 6,077 | $ 23,777 | $ 6,388 |
Commercial Real Estate | Construction | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 0 | 0 | 1 | 0 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 560 | $ 0 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 0 | $ 480 | $ 0 |
Residential mortgage | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 2 | 5 | 5 | 7 |
Pre-Modification Outstanding Recorded Investment | $ 549 | $ 1,830 | $ 1,170 | $ 2,222 |
Post-Modification Outstanding Recorded Investment | $ 545 | $ 1,826 | $ 1,167 | $ 2,206 |
Consumer | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 0 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 55 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 53 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings Subsequently Defaulted (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017USD ($)Contract | Jun. 30, 2016USD ($)Contract | Jun. 30, 2017USD ($)Contract | Jun. 30, 2016USD ($)Contract | |
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 6 | 4 | 9 | 3 |
Recorded Investment | $ | $ 5,358 | $ 1,174 | $ 6,322 | $ 318 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 6 | 0 | 7 | 0 |
Recorded Investment | $ | $ 5,358 | $ 0 | $ 5,433 | $ 0 |
Commercial Real Estate | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 0 | 2 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 1,070 | $ 736 | $ 214 |
Residential mortgage | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 0 | 1 | 1 | 1 |
Recorded Investment | $ | $ 0 | $ 74 | $ 153 | $ 74 |
Consumer | ||||
Troubled Debt Restructurings | ||||
Number of Contracts (in contract) | Contract | 0 | 1 | 0 | 1 |
Recorded Investment | $ | $ 0 | $ 30 | $ 0 | $ 30 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans (Detail) - Non-PCI Loans - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | $ 11,444,355 | $ 10,695,612 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 2,417,924 | 2,357,018 |
Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 8,201,235 | 7,628,328 |
Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 825,196 | 710,266 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 11,123,678 | 10,440,996 |
Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 2,237,178 | 2,246,457 |
Pass | Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 8,063,898 | 7,486,469 |
Pass | Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 822,602 | 708,070 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 128,743 | 102,107 |
Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 76,419 | 44,316 |
Special Mention | Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 51,960 | 57,591 |
Special Mention | Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 364 | 200 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 185,641 | 150,913 |
Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 98,034 | 64,649 |
Substandard | Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 85,377 | 84,268 |
Substandard | Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 2,230 | 1,996 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 6,293 | 1,596 |
Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 6,293 | 1,596 |
Doubtful | Commercial Real Estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 0 | 0 |
Doubtful | Commercial Real Estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | $ 0 | $ 0 |
Loans - Recorded Investment Bas
Loans - Recorded Investment Based on Payment Activity (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 4,724,936 | $ 4,768,989 |
PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,541,469 | 1,771,502 |
Performing Loans | Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 4,710,702 | 4,755,740 |
Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,507,754 | 1,744,491 |
Non-Performing Loans | Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,234 | 13,249 |
Non-Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 33,715 | 27,011 |
Commercial and industrial | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 213,388 | 281,177 |
Commercial and industrial | Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 201,297 | 272,483 |
Commercial and industrial | Non-Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,091 | 8,694 |
Commercial Real Estate | PCI Loans | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,029,279 | 1,091,339 |
Commercial Real Estate | PCI Loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 55,877 | 114,680 |
Commercial Real Estate | Performing Loans | PCI Loans | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,014,923 | 1,080,376 |
Commercial Real Estate | Performing Loans | PCI Loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 54,775 | 113,370 |
Commercial Real Estate | Non-Performing Loans | PCI Loans | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,356 | 10,963 |
Commercial Real Estate | Non-Performing Loans | PCI Loans | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,102 | 1,310 |
Residential mortgage | Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,569,500 | 2,684,195 |
Residential mortgage | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 155,277 | 183,723 |
Residential mortgage | Performing Loans | Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,556,675 | 2,672,120 |
Residential mortgage | Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 150,031 | 179,793 |
Residential mortgage | Non-Performing Loans | Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,825 | 12,075 |
Residential mortgage | Non-Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,246 | 3,930 |
Consumer | Non-PCI Loans | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 369,372 | 376,213 |
Consumer | Non-PCI Loans | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,150,217 | 1,139,082 |
Consumer | Non-PCI Loans | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 635,847 | 569,499 |
Consumer | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 87,648 | 100,583 |
Consumer | Performing Loans | Non-PCI Loans | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 368,066 | 375,185 |
Consumer | Performing Loans | Non-PCI Loans | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,150,114 | 1,138,936 |
Consumer | Performing Loans | Non-PCI Loans | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 635,847 | 569,499 |
Consumer | Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 86,728 | 98,469 |
Consumer | Non-Performing Loans | Non-PCI Loans | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,306 | 1,028 |
Consumer | Non-Performing Loans | Non-PCI Loans | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 103 | 146 |
Consumer | Non-Performing Loans | Non-PCI Loans | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 0 | 0 |
Consumer | Non-Performing Loans | PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 920 | $ 2,114 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Mar. 31, 2017 | Dec. 31, 2016 | Jun. 30, 2016 | Mar. 31, 2016 | Dec. 31, 2015 |
Receivables [Abstract] | ||||||
Allowance for loan losses | $ 116,446 | $ 115,443 | $ 114,419 | $ 108,088 | $ 105,415 | $ 106,178 |
Allowance for unfunded letters of credit | 2,175 | 2,185 | ||||
Total allowance for credit losses | $ 118,621 | $ 116,604 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Provision for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Receivables [Abstract] | ||||
Provision for loan losses | $ 3,710 | $ 1,363 | $ 6,112 | $ 2,092 |
Provision for unfunded letters of credit | (78) | 66 | (10) | 137 |
Total provision for credit losses | $ 3,632 | $ 1,429 | $ 6,102 | $ 2,229 |
Allowance for Credit Losses -63
Allowance for Credit Losses - Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 115,443 | $ 105,415 | $ 114,419 | $ 106,178 |
Loans charged-off | (4,289) | (1,755) | (7,668) | (4,266) |
Charged-off loans recovered | 1,582 | 3,065 | 3,583 | 4,084 |
Net (charge-offs) recoveries | (2,707) | 1,310 | (4,085) | (182) |
Provision for loan losses | 3,710 | 1,363 | 6,112 | 2,092 |
Ending balance | 116,446 | 108,088 | 116,446 | 108,088 |
Commercial and industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 51,288 | 48,417 | 50,820 | 48,767 |
Loans charged-off | (2,910) | (493) | (4,624) | (1,744) |
Charged-off loans recovered | 312 | 990 | 1,160 | 1,516 |
Net (charge-offs) recoveries | (2,598) | 497 | (3,464) | (228) |
Provision for loan losses | 2,927 | (889) | 4,261 | (514) |
Ending balance | 51,617 | 48,025 | 51,617 | 48,025 |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 56,302 | 48,454 | 55,851 | 48,006 |
Loans charged-off | (139) | (414) | (553) | (519) |
Charged-off loans recovered | 640 | 1,458 | 782 | 1,547 |
Net (charge-offs) recoveries | 501 | 1,044 | 229 | 1,028 |
Provision for loan losses | (1,348) | 2,379 | (625) | 2,843 |
Ending balance | 55,455 | 51,877 | 55,455 | 51,877 |
Residential mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 3,592 | 4,209 | 3,702 | 4,625 |
Loans charged-off | (229) | (151) | (359) | (232) |
Charged-off loans recovered | 235 | 94 | 683 | 109 |
Net (charge-offs) recoveries | 6 | (57) | 324 | (123) |
Provision for loan losses | 588 | (657) | 160 | (1,007) |
Ending balance | 4,186 | 3,495 | 4,186 | 3,495 |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 4,261 | 4,335 | 4,046 | 4,780 |
Loans charged-off | (1,011) | (697) | (2,132) | (1,771) |
Charged-off loans recovered | 395 | 523 | 958 | 912 |
Net (charge-offs) recoveries | (616) | (174) | (1,174) | (859) |
Provision for loan losses | 1,543 | 530 | 2,316 | 770 |
Ending balance | $ 5,188 | $ 4,691 | $ 5,188 | $ 4,691 |
Allowance for Credit Losses -64
Allowance for Credit Losses - Allocation of Allowance for Loan Losses and Related Loans by Segment (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Allowance for loan losses: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | $ 10,348 | $ 10,531 |
Collectively evaluated for impairment | 106,098 | 103,888 |
Total Loans | 116,446 | 114,419 |
Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 145,993 | 114,819 |
Collectively evaluated for impairment | 16,023,298 | 15,349,782 |
Total Loans | 17,710,760 | 17,236,103 |
Loans acquired with discounts related to credit quality | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 1,541,469 | 1,771,502 |
Commercial and industrial | Allowance for loan losses: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 6,746 | 5,864 |
Collectively evaluated for impairment | 44,871 | 44,956 |
Total Loans | 51,617 | 50,820 |
Commercial and industrial | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 60,237 | 30,640 |
Collectively evaluated for impairment | 2,357,687 | 2,326,378 |
Total Loans | 2,631,312 | 2,638,195 |
Commercial and industrial | Loans acquired with discounts related to credit quality | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 213,388 | 281,177 |
Commercial Real Estate | Allowance for loan losses: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 2,969 | 3,872 |
Collectively evaluated for impairment | 52,486 | 51,979 |
Total Loans | 55,455 | 55,851 |
Commercial Real Estate | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 66,016 | 62,289 |
Collectively evaluated for impairment | 8,960,415 | 8,276,305 |
Total Loans | 10,111,587 | 9,544,613 |
Commercial Real Estate | Loans acquired with discounts related to credit quality | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 1,085,156 | 1,206,019 |
Residential mortgage | Allowance for loan losses: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 582 | 725 |
Collectively evaluated for impairment | 3,604 | 2,977 |
Total Loans | 4,186 | 3,702 |
Residential mortgage | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 16,189 | 18,356 |
Collectively evaluated for impairment | 2,553,311 | 2,665,839 |
Total Loans | 2,724,777 | 2,867,918 |
Residential mortgage | Loans acquired with discounts related to credit quality | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | 155,277 | 183,723 |
Consumer | Allowance for loan losses: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 51 | 70 |
Collectively evaluated for impairment | 5,137 | 3,976 |
Total Loans | 5,188 | 4,046 |
Consumer | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Individually evaluated for impairment | 3,551 | 3,534 |
Collectively evaluated for impairment | 2,151,885 | 2,081,260 |
Total Loans | 2,243,084 | 2,185,377 |
Consumer | Loans acquired with discounts related to credit quality | Loans: | ||
Financing Receivable, Allowance for Credit Losses [Line Items] | ||
Total Loans | $ 87,648 | $ 100,583 |
Goodwill and Other Intangible65
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | Dec. 31, 2016 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |||||
Goodwill | $ 690,637,000 | $ 690,637,000 | $ 690,637,000 | ||
Goodwill impairment | 0 | $ 0 | 0 | $ 0 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Amortization of other intangible assets | 2,562,000 | 2,928,000 | $ 5,098,000 | 5,777,000 | |
Core Deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average amortization period, years | 11 years | ||||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average amortization period, years | 20 years | ||||
Core Deposits and Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of core deposits and intangibles | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible66
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | 6 Months Ended | 12 Months Ended |
Jun. 30, 2017 | Dec. 31, 2016 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 122,896 | $ 138,593 |
Accumulated Amortization | (78,347) | (92,209) |
Valuation Allowance | (849) | (900) |
Net Intangible Assets | 43,700 | 45,484 |
Loan Servicing Rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 75,413 | 73,002 |
Accumulated Amortization | (54,253) | (52,634) |
Valuation Allowance | (849) | (900) |
Net Intangible Assets | 20,311 | 19,468 |
Core Deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 43,396 | 61,504 |
Accumulated Amortization | (21,941) | (37,562) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | 21,455 | 23,942 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 4,087 | 4,087 |
Accumulated Amortization | (2,153) | (2,013) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | $ 1,934 | $ 2,074 |
Goodwill and Other Intangible67
Goodwill and Other Intangible Assets - Future Amortization Expense (Detail) $ in Thousands | Jun. 30, 2017USD ($) |
Loan Servicing Rights | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | $ 2,719 |
2,018 | 4,503 |
2,019 | 3,557 |
2,020 | 2,813 |
2,021 | 2,115 |
Core Deposits | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 2,356 |
2,018 | 4,215 |
2,019 | 3,671 |
2,020 | 3,127 |
2,021 | 2,582 |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
2,017 | 139 |
2,018 | 249 |
2,019 | 235 |
2,020 | 220 |
2,021 | $ 206 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Detail) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares available for grant | 7,300 | 7,300 | ||
Stock-based compensation expense | $ 2.7 | $ 2.8 | $ 6.9 | $ 5.2 |
Stock-based compensation amortization expense unrecognized | $ 16.5 | $ 16.5 | ||
Average remaining vesting, years | 2 years 1 month 6 days | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted during the period (in shares) | 482 | 498 | ||
Award vesting rights as a percentage | 33.33% | |||
Award vesting period | 3 years | |||
Average grant date fair value (usd per share) | $ 11.71 | $ 8.77 | ||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted during the period (in shares) | 371 | 431 | ||
Award vesting period | 3 years | |||
Average grant date fair value (usd per share) | $ 11.05 | $ 8.32 | ||
Restricted Stock Units | Growth in Tangible Book Value per Share Plus Dividends | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights as a percentage | 75.00% | |||
Restricted Stock Units | Total Shareholder Return as Compared to Our Peer Group | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Award vesting rights as a percentage | 25.00% |
Derivative Instruments and He69
Derivative Instruments and Hedging Activities - Additional Information (Detail) - USD ($) $ in Millions | 6 Months Ended | |
Jun. 30, 2017 | Dec. 31, 2016 | |
Derivative [Line Items] | ||
Derivative instruments not designated as hedging instruments, liability | $ 14.5 | |
Aggregate fair value of net liability position | 10.5 | |
CME | ||
Derivative [Line Items] | ||
Collateral posted with counterparties, net of CME variation margin | 43.3 | |
Interest Rate Swaps | ||
Derivative [Line Items] | ||
Accumulated net after-tax losses related to effective cash flow hedges | 10.4 | $ 12.5 |
Estimated amount of interest rate derivatives to be reclassified to interest expense | 6.9 | |
Derivatives designated as hedging instruments: | Cash Flow Hedge | Interest Rate Caps and Swaps | CME | ||
Derivative [Line Items] | ||
CME variation margins | 13 | |
Derivatives not designated as hedging instruments: | Interest Rate Swaps | CME | ||
Derivative [Line Items] | ||
CME variation margins | $ 3.3 |
Derivative Instruments and He70
Derivative Instruments and Hedging Activities - Balance Sheet Disclosures (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Interest Rate Caps and Swaps | ||
Derivative [Line Items] | ||
Other Assets | $ 0 | $ 0 |
Other Liabilities | 23,737 | 41,911 |
Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
Other Assets | 528 | 802 |
Other Liabilities | 867 | 16,627 |
Notional Amount | 714,889 | 714,999 |
Derivatives designated as hedging instruments: | Cash Flow Hedge | Interest Rate Caps and Swaps | ||
Derivative [Line Items] | ||
Other Assets | 528 | 802 |
Other Liabilities | 31 | 15,641 |
Notional Amount | 707,000 | 707,000 |
Derivatives designated as hedging instruments: | Fair Value Hedge | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Other Liabilities | 836 | 986 |
Notional Amount | 7,889 | 7,999 |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Other Assets | 26,236 | 28,253 |
Other Liabilities | 23,035 | 27,450 |
Notional Amount | 1,376,841 | 1,322,305 |
Derivatives not designated as hedging instruments: | Interest Rate Swaps | ||
Derivative [Line Items] | ||
Other Assets | 26,058 | 25,285 |
Other Liabilities | 22,870 | 25,284 |
Notional Amount | 1,288,274 | 1,075,722 |
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Other Assets | 178 | 2,968 |
Other Liabilities | 165 | 2,166 |
Notional Amount | $ 88,567 | $ 246,583 |
Derivative Instruments and He71
Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Cash Flow Hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | ||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | $ (42,187) | $ (37,573) | $ (78,774) | $ (75,017) |
Amount of loss recognized in other comprehensive income | (1,482) | (3,625) | (1,265) | (14,657) |
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | ||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | $ (2,314) | $ (3,597) | $ (4,832) | $ (6,568) |
Derivative Instruments and He72
Derivative Instruments and Hedging Activities - Gains (Losses) on Interest Rate Derivatives Designated as Fair Value Hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gains (losses) on derivatives | $ 70 | $ (92) | $ (790) | $ (389) |
Designated as Fair Value Hedge | Interest income | Interest rate swaps | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gains (losses) on derivatives | 52 | 2 | 149 | (97) |
Designated as Fair Value Hedge | Interest income | Loans and borrowings | Derivatives designated as hedging instruments: | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gains (losses) on derivatives | (52) | (2) | (149) | 97 |
Designated as Fair Value Hedge | Interest expense | Interest rate swaps | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gains (losses) on derivatives | 0 | 2,069 | 0 | 6,797 |
Designated as Fair Value Hedge | Interest expense | Loans and borrowings | Derivatives designated as hedging instruments: | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gains (losses) on derivatives | $ 0 | $ (2,060) | $ 0 | $ (6,779) |
Derivative Instruments and He73
Derivative Instruments and Hedging Activities - (Losses) Gains Related to Derivatives Not Designated as Hedges (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Non-designated hedge interest rate derivatives | ||||
Other non-interest expense | $ 70 | $ (92) | $ (790) | $ (389) |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Offsetting Liabilities | ||
Gross Amounts Recognized | $ 223,737 | $ 206,911 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 223,737 | 206,911 |
Gross Amounts Not Offset, Financial Instruments | (3,888) | (5,268) |
Gross Amounts Not Offset, Cash Collateral | (209,314) | (201,643) |
Net Amount | 10,535 | 0 |
Collateral posted with counterparties | 59,600 | 52,400 |
Repurchase Agreements | ||
Offsetting Repurchase Agreement Liabilities | ||
Gross Amounts Recognized | 200,000 | 165,000 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 200,000 | 165,000 |
Gross Amounts Not Offset, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset, Cash Collateral | (200,000) | (165,000) |
Net Amount | 0 | 0 |
Interest Rate Caps and Swaps | ||
Offsetting Assets | ||
Gross Amounts Recognized | 26,586 | 26,087 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 26,586 | 26,087 |
Gross Amounts Not Offset, Financial Instruments | (3,888) | (5,268) |
Gross Amounts Not Offset, Cash Collateral | 0 | 0 |
Net Amount | 22,698 | 20,819 |
Offsetting Derivative Liabilities | ||
Gross Amounts Recognized | 23,737 | 41,911 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 23,737 | 41,911 |
Gross Amounts Not Offset, Financial Instruments | (3,888) | (5,268) |
Gross Amounts Not Offset, Cash Collateral | (9,314) | (36,643) |
Net Amount | $ 10,535 | $ 0 |
Tax Credit Investments - Balanc
Tax Credit Investments - Balance Sheet Disclosures (Detail) - USD ($) $ in Thousands | Jun. 30, 2017 | Dec. 31, 2016 |
Other Assets | ||
Other Assets: | ||
Affordable housing tax credit investments, net | $ 28,559 | $ 29,567 |
Other tax credit investments, net | 36,204 | 44,763 |
Total tax credit investments, net | 64,763 | 74,330 |
Other Liabilities | ||
Other Liabilities: | ||
Unfunded affordable housing tax credit commitments | 4,690 | 4,850 |
Unfunded other tax credit commitments | 3,582 | 7,276 |
Total unfunded tax credit commitments | $ 8,272 | $ 12,126 |
Tax Credit Investments - Income
Tax Credit Investments - Income Statement Disclosures (Detail) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2017 | Jun. 30, 2016 | Jun. 30, 2017 | Jun. 30, 2016 | |
Components of Income Tax Expense: | ||||
Affordable housing tax credits and other tax benefits | $ 1,271 | $ 1,065 | $ 2,555 | $ 2,130 |
Other tax credit investment credits and tax benefits | 8,680 | 3,268 | 14,966 | 6,536 |
Total reduction in income tax expense | 9,951 | 4,333 | 17,521 | 8,666 |
Non-Interest Expenses | ||||
Amortization of Tax Credit Investments: | ||||
Affordable housing tax credit investment losses | 358 | 775 | 754 | 1,359 |
Affordable housing tax credit investment impairment losses | 130 | 60 | 254 | 200 |
Other tax credit investment losses | 1,060 | 594 | 1,827 | 668 |
Other tax credit investment impairment losses | 6,184 | 6,217 | 10,221 | 12,683 |
Total amortization of tax credit investments recorded in non-interest expense | $ 7,732 | $ 7,646 | $ 13,056 | $ 14,910 |
Litigation (Details)
Litigation (Details) $ in Thousands | 1 Months Ended | 6 Months Ended | |||
Mar. 31, 2015claim | Dec. 31, 2013claim | Mar. 31, 2012USD ($) | Jun. 30, 2017USD ($)claimlawsuit | Dec. 31, 2016USD ($) | |
Loss Contingencies [Line Items] | |||||
Deposits | $ | $ 17,250,018 | $ 17,730,708 | |||
Merrick Bank Corporation and American Express Travel Related Services v. Valley National Bank | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Number of lawsuits consolidated (in lawsuit) | lawsuit | 2 | ||||
Merrick Bank Corporation v. Valley National Bank | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Chargebacks incurred from Direct Air Bankruptcy | $ | $ 26,200 | ||||
Number of claims filed (in claim) | claim | 10 | ||||
Number of claims dismissed (in claim) | claim | 4 | ||||
American Express Travel Related Services v. Valley National Bank | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Chargebacks incurred from Direct Air Bankruptcy | $ | 3,000 | ||||
Number of claims filed (in claim) | claim | 11 | ||||
Number of claims dismissed (in claim) | claim | 5 | ||||
Direct Air | Merrick Bank Corporation v. Valley National Bank | Pending Litigation | |||||
Loss Contingencies [Line Items] | |||||
Deposits | $ | $ 1,000 |
Subsequent Events (Details)
Subsequent Events (Details) - Subsequent Event $ / shares in Units, shares in Millions, $ in Millions | Aug. 03, 2017USD ($)$ / sharesshares | Jul. 26, 2017USD ($)branch$ / shares | Mar. 31, 2018USD ($) |
Series B Preferred Stock | |||
Subsequent Event [Line Items] | |||
Liquidation preference (usd per share) | $ / shares | $ 25 | ||
Preferred stock dividend rate | 5.50% | ||
Proceeds from issuance of preferred stock after deducting underwriting discounts, commissions and offering expenses | $ 98.1 | ||
Series B Preferred Stock | LIBOR | |||
Subsequent Event [Line Items] | |||
Preferred stock dividend rate, basis spread on variable rate | 3.578% | ||
Series B Preferred Stock | Preferred Stock | |||
Subsequent Event [Line Items] | |||
Shares issued (in shares) | shares | 4 | ||
Shares issued | $ 100 | ||
USAmeriBancorp, Inc. (USAB) | |||
Subsequent Event [Line Items] | |||
Assets acquired | $ 4,400 | ||
Loans acquired | 3,600 | ||
Deposits acquired | $ 3,500 | ||
Number of branches acquired (in branch) | branch | 30 | ||
Share ratio of common stock issued to USAB shareholders | 6.1 | ||
USAmeriBancorp, Inc. (USAB) | Forecast | |||
Subsequent Event [Line Items] | |||
Consideration transferred | $ 816 | ||
USAmeriBancorp, Inc. (USAB) | Minimum | |||
Subsequent Event [Line Items] | |||
Stock price (usd per share) | $ / shares | $ 11.50 | ||
Walkaway rights, weighted-average share price (usd per share) | $ / shares | 11 | ||
USAmeriBancorp, Inc. (USAB) | Maximum | |||
Subsequent Event [Line Items] | |||
Stock price (usd per share) | $ / shares | 13 | ||
Walkaway rights, weighted-average share price (usd per share) | $ / shares | $ 13.50 |