Cover Page
Cover Page - shares | 6 Months Ended | |
Jun. 30, 2019 | Aug. 06, 2019 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Transition Report | false | |
Document Period End Date | Jun. 30, 2019 | |
Entity File Number | 1-11277 | |
Entity Registrant Name | Valley National Bancorp | |
Entity Incorporation, State or Country Code | NJ | |
Entity Tax Identification Number | 22-2477875 | |
Entity Address, Address Line One | One Penn Plaza | |
Entity Address, City or Town | New York, | |
Entity Address, State or Province | NY | |
Entity Address, Postal Zip Code | 10119 | |
City Area Code | 973 | |
Local Phone Number | 305-8800 | |
Entity Current Reporting Status | Yes | |
Entity Interactive Data Current | Yes | |
Entity Filer Category | Large Accelerated Filer | |
Entity Small Business | false | |
Entity Emerging Growth Company | false | |
Entity Shell Company | false | |
Entity Common Stock, Shares Outstanding | 331,792,538 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2019 | |
Document Period Period Focus | Q2 | |
Entity Central Index Key | 0000714310 | |
Current Fiscal Year End Date | --12-31 | |
Common Stock | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Common Stock, no par value | |
Trading Symbol | VLY | |
Security Exchange Name | NASDAQ | |
Non-Cumulative Perpetual Preferred Stock, Series A | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Non-Cumulative Perpetual Preferred Stock, Series A, no par value | |
Trading Symbol | VLYPP | |
Security Exchange Name | NASDAQ | |
Non-Cumulative Perpetual Preferred Stock, Series B | ||
Entity Information [Line Items] | ||
Title of 12(b) Security | Non-Cumulative Perpetual Preferred Stock, Series B, no par value | |
Trading Symbol | VLYPO | |
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 276,291 | $ 251,541 |
Interest bearing deposits with banks | 178,905 | 177,088 |
Investment securities: | ||
Held to maturity (fair value of $2,184,792 at June 30, 2019 and $2,034,943 at December 31, 2018) | 2,168,236 | 2,068,246 |
Available for sale | 1,679,350 | 1,749,544 |
Total investment securities | 3,847,586 | 3,817,790 |
Loans held for sale, at fair value | 36,641 | 35,155 |
Loans | 25,802,162 | 25,035,469 |
Less: Allowance for loan losses | (155,105) | (151,859) |
Net loans | 25,647,057 | 24,883,610 |
Premises and equipment, net | 312,627 | 341,630 |
Lease right of use assets | 283,348 | |
Bank owned life insurance | 442,343 | 439,602 |
Accrued interest receivable | 99,065 | 95,296 |
Goodwill | 1,084,665 | 1,084,665 |
Other intangible assets, net | 70,585 | 76,990 |
Other assets | 748,628 | 659,721 |
Total Assets | 33,027,741 | 31,863,088 |
Deposits: | ||
Non-interest bearing | 6,327,789 | 6,175,495 |
Interest bearing: | ||
Savings, NOW and money market | 11,107,952 | 11,213,495 |
Time | 7,338,188 | 7,063,984 |
Total deposits | 24,773,929 | 24,452,974 |
Short-term borrowings | 2,387,784 | 2,118,914 |
Long-term borrowings | 1,800,182 | 1,654,268 |
Junior subordinated debentures issued to capital trusts | 55,544 | 55,370 |
Lease liabilities | 307,405 | 3,125 |
Accrued expenses and other liabilities | 198,779 | 227,983 |
Total Liabilities | 29,523,623 | 28,512,634 |
Shareholders’ Equity | ||
Common stock (no par value, authorized 450,000,000 shares; issued 332,101,525 shares at June 30, 2019 and 331,634,951 shares at December 31, 2018) | 116,571 | 116,240 |
Surplus | 2,804,059 | 2,796,499 |
Retained earnings | 412,190 | 299,642 |
Accumulated other comprehensive loss | (35,131) | (69,431) |
Treasury stock, at cost (313,376 common shares at June 30, 2019 and 203,734 common shares at December 31, 2018) | (3,262) | (2,187) |
Total Shareholders’ Equity | 3,504,118 | 3,350,454 |
Total Liabilities and Shareholders’ Equity | 33,027,741 | 31,863,088 |
Series A | ||
Shareholders’ Equity | ||
Preferred stock, no par value; authorized 50,000,000 shares | 111,590 | 111,590 |
Series B | ||
Shareholders’ Equity | ||
Preferred stock, no par value; authorized 50,000,000 shares | $ 98,101 | $ 98,101 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Statement of Financial Position [Abstract] | ||
Held to maturity, fair value | $ 2,184,792 | $ 2,034,943 |
Preferred stock, par value (usd per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, par value (usd per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Common stock, shares issued (in shares) | 332,101,525 | 331,634,951 |
Treasury stock, shares (in shares) | 313,376 | 203,734 |
Series A | ||
Preferred stock, shares issued (in shares) | 4,600,000 | 4,600,000 |
Series B | ||
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest Income | ||||
Interest and fees on loans | $ 296,934 | $ 247,690 | $ 585,211 | $ 485,276 |
Interest and dividends on investment securities: | ||||
Taxable | 22,489 | 22,222 | 45,365 | 43,545 |
Tax-exempt | 4,356 | 5,639 | 9,160 | 11,360 |
Dividends | 2,795 | 3,728 | 5,969 | 5,667 |
Interest on federal funds sold and other short-term investments | 1,168 | 839 | 2,261 | 1,765 |
Total interest income | 327,742 | 280,118 | 647,966 | 547,613 |
Interest on deposits: | ||||
Savings, NOW and money market | 38,020 | 24,756 | 74,303 | 47,073 |
Time | 40,331 | 16,635 | 78,502 | 31,251 |
Interest on short-term borrowings | 14,860 | 10,913 | 27,409 | 16,645 |
Interest on long-term borrowings and junior subordinated debentures | 14,297 | 17,062 | 28,870 | 34,294 |
Total interest expense | 107,508 | 69,366 | 209,084 | 129,263 |
Net Interest Income | 220,234 | 210,752 | 438,882 | 418,350 |
Provision for credit losses | 2,100 | 7,142 | 10,100 | 18,090 |
Net Interest Income After Provision for Credit Losses | 218,134 | 203,610 | 428,782 | 400,260 |
Non-Interest Income | ||||
Insurance commissions | 2,649 | 4,026 | 5,174 | 7,847 |
Gains (losses) on securities transactions, net | 11 | (36) | (21) | (801) |
Other-than-temporary impairment losses on securities | (2,928) | 0 | (2,928) | 0 |
Portion recognized in other comprehensive income (before taxes) | 0 | 0 | 0 | 0 |
Net impairment losses on securities recognized in earnings | (2,928) | 0 | (2,928) | 0 |
Fees from loan servicing | 2,367 | 2,045 | 4,797 | 4,268 |
Gains on sales of loans, net | 3,930 | 7,642 | 8,506 | 14,395 |
(Losses) gains on sales of assets, net | (564) | (125) | 77,156 | (222) |
Bank owned life insurance | 2,205 | 2,652 | 4,092 | 4,415 |
Other | 11,010 | 11,924 | 20,770 | 19,994 |
Total non-interest income | 27,603 | 38,069 | 135,276 | 70,320 |
Non-Interest Expense | ||||
Salary and employee benefits expense | 76,183 | 78,944 | 159,288 | 172,236 |
Net occupancy and equipment expense | 29,700 | 26,901 | 57,586 | 54,825 |
FDIC insurance assessment | 4,931 | 8,044 | 11,052 | 13,542 |
Amortization of other intangible assets | 4,170 | 4,617 | 8,481 | 8,910 |
Professional and legal fees | 4,145 | 5,337 | 9,416 | 22,384 |
Amortization of tax credit investments | 4,863 | 4,470 | 12,036 | 9,744 |
Telecommunication expense | 2,351 | 3,015 | 4,619 | 6,609 |
Other | 15,394 | 18,588 | 27,054 | 35,418 |
Total non-interest expense | 141,737 | 149,916 | 289,532 | 323,668 |
Income Before Income Taxes | 104,000 | 91,763 | 274,526 | 146,912 |
Income tax expense | 27,532 | 18,961 | 84,728 | 32,145 |
Net Income | 76,468 | 72,802 | 189,798 | 114,767 |
Dividends on preferred stock | 3,172 | 3,172 | 6,344 | 6,344 |
Net Income Available to Common Shareholders | $ 73,296 | $ 69,630 | $ 183,454 | $ 108,423 |
Earnings Per Common Share: | ||||
Basic (usd per share) | $ 0.22 | $ 0.21 | $ 0.55 | $ 0.33 |
Diluted (usd per share) | 0.22 | 0.21 | 0.55 | 0.33 |
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) | 331,748,552 | 331,318,381 | 331,675,313 | 331,024,531 |
Diluted (in shares) | 332,959,802 | 332,895,483 | 332,929,359 | 332,599,991 |
Trust and investment services | ||||
Non-Interest Income | ||||
Revenue from contracts with customer | $ 3,096 | $ 3,262 | $ 6,000 | $ 6,492 |
Service charges on deposit accounts | ||||
Non-Interest Income | ||||
Revenue from contracts with customer | $ 5,827 | $ 6,679 | $ 11,730 | $ 13,932 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 76,468 | $ 72,802 | $ 189,798 | $ 114,767 |
Unrealized gains and losses on available for sale securities | ||||
Net gains (losses) arising during the period | 18,488 | (6,249) | 34,755 | (27,446) |
Less reclassification adjustment for net (gains) losses included in net income | (8) | 42 | 18 | 574 |
Total | 18,480 | (6,207) | 34,773 | (26,872) |
Unrealized gains and losses on derivatives (cash flow hedges) | ||||
Net (losses) gains on derivatives arising during the period | (683) | 455 | (1,065) | 2,415 |
Less reclassification adjustment for net losses included in net income | 274 | 619 | 482 | 1,655 |
Total | (409) | 1,074 | (583) | 4,070 |
Defined benefit pension plan | ||||
Amortization of net loss | 55 | 112 | 110 | 224 |
Total other comprehensive income (loss) | 18,126 | (5,021) | 34,300 | (22,578) |
Total comprehensive income | $ 94,594 | $ 67,781 | $ 224,098 | $ 92,189 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Preferred Series A | Preferred Series B | Common stock | Preferred Stock | Common stock | Surplus | Retained Earnings | Retained EarningsPreferred Series A | Retained EarningsPreferred Series B | Retained EarningsCommon stock | Accumulated Other Comprehensive Loss | Treasury Stock |
Beginning Balance, Adjusted | $ 2,515,554 | $ 209,691 | $ 92,727 | $ 2,060,356 | $ 199,663 | $ (46,546) | $ (337) | ||||||
Beginning balance at Dec. 31, 2017 | 2,533,165 | 209,691 | $ 92,727 | 2,060,356 | 216,733 | (46,005) | (337) | ||||||
Beginning balance (in shares) at Dec. 31, 2017 | 264,469 | ||||||||||||
Net income | 41,965 | 41,965 | |||||||||||
Other comprehensive income, net of tax | (17,557) | (17,557) | |||||||||||
Cash dividends declared: | |||||||||||||
Cash dividends declared on preferred stock | $ (1,797) | $ (1,375) | $ (1,797) | $ (1,375) | |||||||||
Cash dividends declared on common stock | $ (36,635) | $ (36,635) | |||||||||||
Effect of stock incentive plan, net (in shares) | 1,714 | ||||||||||||
Effect of stock incentive plan, net | 6,637 | $ 355 | 8,717 | (2,266) | (169) | ||||||||
Common stock issued (in shares) | 65,007 | ||||||||||||
Common stock issued | 738,211 | $ 22,742 | 715,121 | 348 | |||||||||
Ending balance at Mar. 31, 2018 | 3,245,003 | 209,691 | $ 115,824 | 2,784,194 | 199,555 | (64,103) | (158) | ||||||
Ending balance (in shares) at Mar. 31, 2018 | 331,190 | ||||||||||||
Beginning balance at Dec. 31, 2017 | 2,533,165 | 209,691 | $ 92,727 | 2,060,356 | 216,733 | (46,005) | (337) | ||||||
Beginning balance (in shares) at Dec. 31, 2017 | 264,469 | ||||||||||||
Net income | 114,767 | ||||||||||||
Ending balance at Jun. 30, 2018 | 3,277,312 | 209,691 | $ 116,027 | 2,789,190 | 232,593 | (69,124) | (1,065) | ||||||
Ending balance (in shares) at Jun. 30, 2018 | 331,454 | ||||||||||||
Beginning balance at Mar. 31, 2018 | 3,245,003 | 209,691 | $ 115,824 | 2,784,194 | 199,555 | (64,103) | (158) | ||||||
Beginning balance (in shares) at Mar. 31, 2018 | 331,190 | ||||||||||||
Net income | 72,802 | 72,802 | |||||||||||
Other comprehensive income, net of tax | (5,021) | (5,021) | |||||||||||
Cash dividends declared: | |||||||||||||
Cash dividends declared on preferred stock | (1,797) | (1,375) | (1,797) | (1,375) | |||||||||
Cash dividends declared on common stock | (36,534) | (36,534) | |||||||||||
Effect of stock incentive plan, net (in shares) | 264 | ||||||||||||
Effect of stock incentive plan, net | 4,234 | $ 203 | 4,996 | (58) | (907) | ||||||||
Ending balance at Jun. 30, 2018 | 3,277,312 | 209,691 | $ 116,027 | 2,789,190 | 232,593 | (69,124) | (1,065) | ||||||
Ending balance (in shares) at Jun. 30, 2018 | 331,454 | ||||||||||||
Beginning Balance, Adjusted | 3,353,422 | 209,691 | $ 116,240 | 2,796,499 | 302,610 | (69,431) | (2,187) | ||||||
Beginning balance at Dec. 31, 2018 | 3,350,454 | 209,691 | $ 116,240 | 2,796,499 | 299,642 | (69,431) | (2,187) | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 331,431 | ||||||||||||
Net income | 113,330 | 113,330 | |||||||||||
Other comprehensive income, net of tax | 16,174 | 16,174 | |||||||||||
Cash dividends declared: | |||||||||||||
Cash dividends declared on preferred stock | (1,797) | (1,375) | (1,797) | (1,375) | |||||||||
Cash dividends declared on common stock | (36,686) | (36,686) | |||||||||||
Effect of stock incentive plan, net (in shares) | 302 | ||||||||||||
Effect of stock incentive plan, net | 1,811 | $ 226 | 2,935 | (99) | (1,251) | ||||||||
Ending balance at Mar. 31, 2019 | 3,444,879 | 209,691 | $ 116,466 | 2,799,434 | 375,983 | (53,257) | (3,438) | ||||||
Ending balance (in shares) at Mar. 31, 2019 | 331,733 | ||||||||||||
Beginning balance at Dec. 31, 2018 | 3,350,454 | 209,691 | $ 116,240 | 2,796,499 | 299,642 | (69,431) | (2,187) | ||||||
Beginning balance (in shares) at Dec. 31, 2018 | 331,431 | ||||||||||||
Net income | 189,798 | ||||||||||||
Ending balance at Jun. 30, 2019 | 3,504,118 | 209,691 | $ 116,571 | 2,804,059 | 412,190 | (35,131) | (3,262) | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 331,788 | ||||||||||||
Beginning balance at Mar. 31, 2019 | 3,444,879 | 209,691 | $ 116,466 | 2,799,434 | 375,983 | (53,257) | (3,438) | ||||||
Beginning balance (in shares) at Mar. 31, 2019 | 331,733 | ||||||||||||
Net income | 76,468 | 76,468 | |||||||||||
Other comprehensive income, net of tax | 18,126 | 18,126 | |||||||||||
Cash dividends declared: | |||||||||||||
Cash dividends declared on preferred stock | $ (1,797) | $ (1,375) | $ (1,797) | $ (1,375) | |||||||||
Cash dividends declared on common stock | $ (36,712) | $ (36,712) | |||||||||||
Effect of stock incentive plan, net (in shares) | 55 | ||||||||||||
Effect of stock incentive plan, net | 4,529 | $ 105 | 4,625 | (377) | 176 | ||||||||
Ending balance at Jun. 30, 2019 | $ 3,504,118 | $ 209,691 | $ 116,571 | $ 2,804,059 | $ 412,190 | $ (35,131) | $ (3,262) | ||||||
Ending balance (in shares) at Jun. 30, 2019 | 331,788 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | |
Cash dividends declared (usd per share) | $ 0.11 | $ 0.11 | ||
Preferred Series A | ||||
Cash dividends declared (usd per share) | 0.39 | $ 0.39 | 0.39 | $ 0.39 |
Preferred Series B | ||||
Cash dividends declared (usd per share) | 0.34 | 0.34 | 0.34 | 0.34 |
Common stock | ||||
Cash dividends declared (usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2019 | Jun. 30, 2018 | |
Cash flows from operating activities: | ||
Net income | $ 189,798 | $ 114,767 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 25,240 | 13,783 |
Stock-based compensation | 8,282 | 12,153 |
Provision for credit losses | 10,100 | 18,090 |
Net amortization of premiums and accretion of discounts on securities and borrowings | 14,287 | 17,212 |
Amortization of other intangible assets | 8,481 | 8,910 |
Losses on securities transactions, net | 21 | 801 |
Proceeds from sales of loans held for sale | 421,730 | 437,876 |
Gains on sales of loans, net | (8,506) | (14,395) |
Net impairment losses on securities, recognized in earnings | 2,928 | 0 |
Originations of loans held for sale | (200,877) | (446,849) |
(Gains) losses on sales of assets, net | (77,156) | 222 |
Net change in: | ||
Cash surrender value of bank owned life insurance | (4,092) | (4,415) |
Accrued interest receivable | (3,769) | (2,042) |
Other assets | (186,674) | (55,464) |
Accrued expenses and other liabilities | 65,970 | (16,281) |
Net cash provided by operating activities | 265,763 | 84,368 |
Cash flows from investing activities: | ||
Net loan originations and purchases | (992,236) | (1,158,514) |
Investment securities held to maturity: | ||
Purchases | (261,446) | (100,160) |
Maturities, calls and principal repayments | 155,002 | 120,876 |
Investment securities available for sale: | ||
Purchases | 0 | (239,226) |
Sales | 0 | 38,625 |
Maturities, calls and principal repayments | 109,045 | 124,635 |
Death benefit proceeds from bank owned life insurance | 1,350 | 2,652 |
Proceeds from sales of real estate property and equipment | 102,500 | 9,773 |
Purchases of real estate property and equipment | (9,336) | (12,811) |
Cash and cash equivalents acquired in acquisition | 0 | 156,612 |
Net cash used in investing activities | (895,121) | (1,057,538) |
Cash flows from financing activities: | ||
Net change in deposits | 320,955 | (77,533) |
Net change in short-term borrowings | 268,870 | 1,479,305 |
Advances of long-term borrowings | 400,000 | 0 |
Repayments of long-term borrowings | (255,000) | (300,027) |
Cash dividends paid to preferred shareholders | (3,172) | (6,344) |
Cash dividends paid to common shareholders | (73,546) | (65,989) |
Purchase of common shares to treasury | (1,462) | (2,598) |
Common stock issued, net | (480) | 2,512 |
Other, net | (240) | 0 |
Net cash provided by financing activities | 655,925 | 1,029,326 |
Net change in cash and cash equivalents | 26,567 | 56,156 |
Cash and cash equivalents at beginning of year | 428,629 | 416,110 |
Cash and cash equivalents at end of period | 455,196 | 472,266 |
Cash payments for: | ||
Interest on deposits and borrowings | 198,815 | 124,816 |
Federal and state income taxes | 80,116 | 29,280 |
Supplemental schedule of non-cash investing activities: | ||
Transfer of loans to other real estate owned | 1,016 | 672 |
Transfer of loans to loans held for sale | 216,211 | 263,324 |
Lease right of use assets obtained in exchange for operating lease liabilities | 296,064 | |
Non-cash assets acquired: | ||
Loans | 0 | 3,736,984 |
Premises and equipment | 0 | 62,066 |
Bank owned life insurance | 0 | 49,052 |
Accrued interest receivable | 0 | 12,123 |
Goodwill | 0 | 394,028 |
Other intangible assets | 0 | 45,906 |
Other assets | 0 | 100,059 |
Total non-cash assets acquired | 0 | 4,922,820 |
Liabilities assumed: | ||
Deposits | 0 | 3,564,843 |
Short-term borrowings | 0 | 649,979 |
Long-term borrowings | 0 | 87,283 |
Junior subordinated debentures issued to capital trusts | 0 | 13,249 |
Accrued expenses and other liabilities | 0 | 26,848 |
Total liabilities assumed | 0 | 4,342,202 |
Net non-cash assets acquired | 0 | 580,618 |
Net cash and cash equivalents acquired in acquisition | 0 | 156,612 |
Common stock issued in acquisition | 0 | 737,230 |
Investment securities held to maturity | ||
Non-cash assets acquired: | ||
Investment securities | 0 | 214,217 |
Investment securities available for sale | ||
Non-cash assets acquired: | ||
Investment securities | $ 0 | $ 308,385 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 2019 | |
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. Certain prior period amounts have been reclassified to conform to the current presentation. In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at June 30, 2019 and for all periods presented have been made. The results of operations for the three and six months ended on June 30, 2019 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, purchased credit impaired loans, the evaluation of goodwill and other intangible assets for impairment, 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. 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, 2018 . |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands, except for share data) Net income available to common shareholders $ 73,296 $ 69,630 $ 183,454 $ 108,423 Basic weighted average number of common shares outstanding 331,748,552 331,318,381 331,675,313 331,024,531 Plus: Common stock equivalents 1,211,250 1,577,102 1,254,046 1,575,460 Diluted weighted average number of common shares outstanding 332,959,802 332,895,483 332,929,359 332,599,991 Earnings per common share: Basic $ 0.22 $ 0.21 $ 0.55 $ 0.33 Diluted 0.22 0.21 0.55 0.33 Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of 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 equaled approximately 482 thousand and 494 thousand shares for the three and six months ended June 30, 2019 , respectively. Anti-dilutive warrants and common stock options equaled 2.9 million shares for both the three and six months ended June 30, 2018 . All of Valley's outstanding warrants expired unexercised in the fourth quarter of 2018. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 : Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at March 31, 2019 $ (17,266 ) $ (4,205 ) $ (31,786 ) $ (53,257 ) Other comprehensive income (loss) before reclassification 18,488 (683 ) — 17,805 Amounts reclassified from other comprehensive income (loss) (8 ) 274 55 321 Other comprehensive income (loss), net 18,480 (409 ) 55 18,126 Balance at June 30, 2019 $ 1,214 $ (4,614 ) $ (31,731 ) $ (35,131 ) Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at December 31, 2018 $ (33,559 ) $ (4,031 ) $ (31,841 ) $ (69,431 ) Other comprehensive income (loss) before reclassification 34,755 (1,065 ) — 33,690 Amounts reclassified from other comprehensive income (loss) 18 482 110 610 Other comprehensive income (loss), net 34,773 (583 ) 110 34,300 Balance at June 30, 2019 $ 1,214 $ (4,614 ) $ (31,731 ) $ (35,131 ) 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, 2019 and 2018 : Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2019 2018 2019 2018 Income Statement Line Item (in thousands) Unrealized gains (losses) on AFS securities before tax $ 11 $ (52 ) $ (21 ) $ (795 ) Gains (losses) on securities transactions, net Tax effect (3 ) 10 3 221 Total net of tax 8 (42 ) (18 ) (574 ) Unrealized losses on derivatives (cash flow hedges) before tax (383 ) (866 ) (673 ) (2,317 ) Interest expense Tax effect 109 247 191 662 Total net of tax (274 ) (619 ) (482 ) (1,655 ) Defined benefit pension plan: Amortization of net loss (78 ) (157 ) (156 ) (314 ) * Tax effect 23 45 46 90 Total net of tax (55 ) (112 ) (110 ) (224 ) Total reclassifications, net of tax $ (321 ) $ (773 ) $ (610 ) $ (2,453 ) * Amortization of net loss is included in the computation of net periodic pension cost recognized within other non-interest expense. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance New Accounting Guidance Adopted in 2019 Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)” and subsequent related updates require lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model that requires lessees to recognize a right of use (ROU) asset and related lease liability for all leases with a term longer than 12 months . 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. Leases will continue to be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Effective January 1, 2019, Valley adopted ASU No. 2016-02 (and subsequent related updates) and recorded ROU assets of approximately $216 million (net of the reversal of the deferred rent liability at such date) and lease obligations of approximately $241 million . Valley elected the "package of practical expedients," as permitted under the transition guidance within Topic 842. The practical expedients enable Valley to carry forward lease classifications under the prior accounting guidance (Topic 840). Additionally, the expedients enable the use of hindsight, through which Valley reassessed the likelihood of extending leases under extension clauses available to Valley. This shortened the expected lives of certain leases. As a result, Valley recorded a $4.4 million (net of tax) credit adjustment to the opening balance of retained earnings as of January 1, 2019. Valley also made accounting policy elections to (i) separate non-lease components from its lease obligations with the non-lease components being charged to earnings when incurred and to (ii) exclude short-term leases of 12 months or less from the balance sheet. The comparative periods prior to the adoption date of Topic 842 will continue to be presented in the financial statements in accordance with prior GAAP (Topic 840). See Note 9 for the additional required disclosures. 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 was effective for Valley on January 1, 2019 and was applied using the modified retrospective method, resulting in a cumulative-effect adjustment to the opening balance of retained earnings totaling $1.4 million (net of tax) as of January 1, 2019. ASU No. 2017-08 did not have a significant impact on Valley's consolidated financial statements. ASU No. 2019-01, "Leases (Topic 842): Codification Improvements" reinstates the fair value exception in ASC 840, in which lessors will measure fair value, at lease commencement, as cost, reflecting any applicable volume or trade discounts. ASU No. 2019-01 also requires lessors that are depository or lending institutions in the scope of Topic 842 to classify the principal portion of lease payments received under sales-type and direct financing leases as cash flows from investing activities. The interest portion of those and all lease payments received under operating leases are classified as cash flows from operating activities. Effective January 1, 2019, Valley early adopted ASU No. 2019-01 concurrent with its adoption of Topic 842. The adoption of ASU No. 2019-01 did not have a material impact on Valley's consolidated financial statements. New Accounting Guidance Not Yet Adopted ASU No. 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief" provides transition relief for entities adopting the credit losses standard, ASU No. 2016-13. Specifically, this update amends ASU No. 2016-13 to allow companies to irrevocably elect, upon adoption of ASU No. 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost, (2) are within the scope of the credit losses guidance in Topic 326-20, (3) are eligible for the fair value option under Topic 825-10, and (4) are not held-to-maturity debt securities. ASU No. 2019-05 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. ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. The most significant provisions of the ASU relate to how companies will estimate expected credit losses under Topic 326 by incorporating (1) expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) clarifying that contractual extensions or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. ASU No. 2019-04 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. See more details regarding our current implementation of Topic 326 and ASU No. 2016-13 below. 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. 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. 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 all expected losses over the lives of the assets 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 and Management is currently evaluating the impact of the ASU on Valley’s consolidated financial statements. Valley’s implementation effort is managed through several cross-functional working groups. These groups continue to evaluate the requirements of the new standard, assess its impact on current operational processes, and develop loss models that accurately project lifetime expected loss estimates. Valley expects that the adoption of ASU No. 2016-13 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 non-accretable 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 Valley's loan and investment portfolios at the adoption date, and the economic conditions and forecasts at that date. During the second quarter of 2019, Valley began the process of performing parallel runs for CECL alongside the current allowance process. Management will continue to refine and validate the new methodologies and models throughout 2019. |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | Fair Value Measurement of Assets and Liabilities 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, 2019 and December 31, 2018 . The assets presented under “nonrecurring fair value measurements” in the tables 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 $ 50,741 $ 50,741 $ — $ — U.S. government agency securities 33,028 — 33,028 — Obligations of states and political subdivisions 186,697 — 186,017 680 Residential mortgage-backed securities 1,372,979 — 1,372,979 — Corporate and other debt securities 35,905 — 35,905 — Total available for sale 1,679,350 50,741 1,627,929 680 Loans held for sale (1) 36,641 — 36,641 — Other assets (2) 140,496 — 140,496 — Total assets $ 1,856,487 $ 50,741 $ 1,805,066 $ 680 Liabilities Other liabilities (2) $ 33,502 $ — $ 33,502 $ — Total liabilities $ 33,502 $ — $ 33,502 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 43,707 $ — $ — $ 43,707 Foreclosed assets 5,587 — — 5,587 Total $ 49,294 $ — $ — $ 49,294 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 $ 49,306 $ 49,306 $ — $ — U.S. government agency securities 36,277 — 36,277 — Obligations of states and political subdivisions 197,092 — 197,092 — Residential mortgage-backed securities 1,429,782 — 1,429,782 — Corporate and other debt securities 37,087 — 37,087 — Total available for sale 1,749,544 49,306 1,700,238 — Loans held for sale (1) 35,155 — 35,155 — Other assets (2) 48,979 — 48,979 — Total assets $ 1,833,678 $ 49,306 $ 1,784,372 $ — Liabilities Other liabilities (2) $ 23,681 $ — $ 23,681 $ — Total liabilities $ 23,681 $ — $ 23,681 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 45,245 $ — $ — $ 45,245 Loan servicing rights 273 — — 273 Foreclosed assets 5,673 — — 5,673 Total $ 51,191 $ — $ — $ 51,191 (1) Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $35.6 million and $34.6 million at June 30, 2019 and December 31, 2018 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. 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. In calculating the fair value of one impaired special revenue bond (within obligations of states and political subdivisions in the table above) under Level 3, Valley prepared its best estimate of the present value of the cash flows to determine an internal price estimate. In determining the internal price, Valley utilized recent financial information and developments provided by the issuer, as well as other unobservable inputs which reflect Valley’s own assumptions about the inputs that market participants would use in pricing of the defaulted security. A quoted price received from an independent pricing service was weighted with the internal price estimate to determine the fair value of the instrument at June 30, 2019 . See Note 6 for additional information regarding this impaired security. Loans held for sale. 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. 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. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at June 30, 2019 and December 31, 2018 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 values 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, 2019 and December 31, 2018 ), is determined based on the current market prices for similar instruments. 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, 2019 and December 31, 2018 . 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, 2019 , certain appraisals were discounted based on specific market data by location and property type. During the quarter ended June 30, 2019 , 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 $938 thousand for the three and six months ended June 30, 2019 . The collateral dependent loan charge-offs to the allowance for loan losses for the three and six months ended June 30, 2018 were immaterial. At June 30, 2019 , collateral dependent impaired loans with a total recorded investment of $73.4 million were reduced by specific valuation allowance allocations totaling $29.7 million to a reported total net carrying amount of $43.7 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, 2019 , the fair value model used a blended prepayment speed (stated as constant prepayment rates) of 11.0 percent and a discount rate of 9.5 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. At June 30, 2019 , loan servicing rights were not re-measured at fair value and were carried at amortized cost. Valley recorded net recoveries of impairment charges on its loan servicing rights totaling $107 thousand and $84 thousand for the three and six months ended June 30, 2019 , respectively, as compared to net impairment charges totaling $90 thousand and $317 thousand for the three and six months ended June 30, 2018 , 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 discount adjustments of the appraisals of foreclosed assets at June 30, 2019 . At June 30, 2019 , foreclosed assets included $5.6 million of assets that were measured at fair value upon initial recognition or subsequently re-measured at June 30, 2019 . The foreclosed assets charge-offs to the allowance for the loan losses totaled $653 thousand and $649 thousand for the three months ended June 30, 2019 and 2018 , respectively, and $1.4 million and $1.2 million for the six months ended June 30, 2019 and 2018 , respectively. The re-measurement of foreclosed assets at fair value subsequent to their initial recognition resulted in net losses of $160 thousand and $145 thousand for the within non-interest expense for the six months ended June 30, 2019 and 2018 , respectively. The net loss from re-measurement of foreclosed assets at fair value subsequent to their initial recognition for the three months ended June 30, 2019 and 2018 was immaterial. 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, 2019 and December 31, 2018 were as follows: Fair Value Hierarchy June 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 276,291 $ 276,291 $ 251,541 $ 251,541 Interest bearing deposits with banks Level 1 178,905 178,905 177,088 177,088 Investment securities held to maturity: U.S. Treasury securities Level 1 138,436 144,655 138,517 142,049 U.S. government agency securities Level 2 8,049 8,092 8,721 8,641 Obligations of states and political subdivisions Level 2 536,778 549,050 585,656 586,033 Residential mortgage-backed securities Level 2 1,415,409 1,419,066 1,266,770 1,235,605 Trust preferred securities Level 2 37,314 31,372 37,332 31,486 Corporate and other debt securities Level 2 32,250 32,557 31,250 31,129 Total investment securities held to maturity 2,168,236 2,184,792 2,068,246 2,034,943 Net loans Level 3 25,647,057 25,207,831 24,883,610 24,068,755 Accrued interest receivable Level 1 99,065 99,065 95,296 95,296 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 260,490 260,490 232,080 232,080 Financial liabilities Deposits without stated maturities Level 1 17,435,741 17,435,741 17,388,990 17,388,990 Deposits with stated maturities Level 2 7,338,188 7,338,945 7,063,984 7,005,573 Short-term borrowings Level 1 2,387,784 2,388,299 2,118,914 2,091,892 Long-term borrowings Level 2 1,800,182 1,840,862 1,654,268 1,751,194 Junior subordinated debentures issued to capital trusts Level 2 55,544 57,040 55,370 55,692 Accrued interest payable (2) Level 1 36,031 36,031 25,762 25,762 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2019 U.S. Treasury securities $ 138,436 $ 6,219 $ — $ 144,655 U.S. government agency securities 8,049 69 (26 ) 8,092 Obligations of states and political subdivisions: Obligations of states and state agencies 314,878 7,680 (992 ) 321,566 Municipal bonds 221,900 5,640 (56 ) 227,484 Total obligations of states and political subdivisions 536,778 13,320 (1,048 ) 549,050 Residential mortgage-backed securities 1,415,409 13,242 (9,585 ) 1,419,066 Trust preferred securities 37,314 62 (6,004 ) 31,372 Corporate and other debt securities 32,250 399 (92 ) 32,557 Total investment securities held to maturity $ 2,168,236 $ 33,311 $ (16,755 ) $ 2,184,792 December 31, 2018 U.S. Treasury securities $ 138,517 $ 3,532 $ — $ 142,049 U.S. government agency securities 8,721 55 (135 ) 8,641 Obligations of states and political subdivisions: Obligations of states and state agencies 341,702 4,332 (5,735 ) 340,299 Municipal bonds 243,954 3,141 (1,361 ) 245,734 Total obligations of states and political subdivisions 585,656 7,473 (7,096 ) 586,033 Residential mortgage-backed securities 1,266,770 3,203 (34,368 ) 1,235,605 Trust preferred securities 37,332 77 (5,923 ) 31,486 Corporate and other debt securities 31,250 96 (217 ) 31,129 Total investment securities held to maturity $ 2,068,246 $ 14,436 $ (47,739 ) $ 2,034,943 The age of unrealized losses and fair value of related securities held to maturity at June 30, 2019 and December 31, 2018 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, 2019 U.S. government agency securities $ — $ — $ 5,675 $ (26 ) $ 5,675 $ (26 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 45,843 (992 ) 45,843 (992 ) Municipal bonds 4,968 (27 ) 4,331 (29 ) 9,299 (56 ) Total obligations of states and political subdivisions 4,968 (27 ) 50,174 (1,021 ) 55,142 (1,048 ) Residential mortgage-backed securities 3,445 (7 ) 674,804 (9,578 ) 678,249 (9,585 ) Trust preferred securities — — 29,957 (6,004 ) 29,957 (6,004 ) Corporate and other debt securities — — 4,908 (92 ) 4,908 (92 ) Total $ 8,413 $ (34 ) $ 765,518 $ (16,721 ) $ 773,931 $ (16,755 ) December 31, 2018 U.S. government agency securities $ — $ — $ 6,074 $ (135 ) $ 6,074 $ (135 ) Obligations of states and political subdivisions: Obligations of states and state agencies 16,098 (266 ) 138,437 (5,469 ) 154,535 (5,735 ) Municipal bonds 3,335 (37 ) 60,078 (1,324 ) 63,413 (1,361 ) Total obligations of states and political subdivisions 19,433 (303 ) 198,515 (6,793 ) 217,948 (7,096 ) Residential mortgage-backed securities 72,240 (852 ) 846,671 (33,516 ) 918,911 (34,368 ) Trust preferred securities — — 30,055 (5,923 ) 30,055 (5,923 ) Corporate and other debt securities 9,948 (52 ) 4,835 (165 ) 14,783 (217 ) Total $ 101,621 $ (1,207 ) $ 1,086,150 $ (46,532 ) $ 1,187,771 $ (47,739 ) 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 127 at June 30, 2019 and 378 at December 31, 2018 . The unrealized losses within the residential mortgage-backed securities category of the held to maturity portfolio at June 30, 2019 mostly related to investment grade securities issued by Ginnie Mae and Fannie Mae. The unrealized losses existing for more than twelve months for trust preferred securities at June 30, 2019 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, 2019 . As of June 30, 2019 , 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 $1.3 billion . The contractual maturities of investments in debt securities held to maturity at June 30, 2019 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, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 30,122 $ 30,109 Due after one year through five years 237,783 243,951 Due after five years through ten years 242,178 253,387 Due after ten years 242,744 238,279 Residential mortgage-backed securities 1,415,409 1,419,066 Total investment securities held to maturity $ 2,168,236 $ 2,184,792 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 6.6 years at June 30, 2019 . Available for Sale The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at June 30, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2019 U.S. Treasury securities $ 50,963 $ — $ (222 ) $ 50,741 U.S. government agency securities 32,525 521 (18 ) 33,028 Obligations of states and political subdivisions: Obligations of states and state agencies 87,473 465 (222 ) 87,716 Municipal bonds 98,305 899 (223 ) 98,981 Total obligations of states and political subdivisions 185,778 1,364 (445 ) 186,697 Residential mortgage-backed securities 1,373,033 8,303 (8,357 ) 1,372,979 Corporate and other debt securities 35,416 489 — 35,905 Total investment securities available for sale $ 1,677,715 $ 10,677 $ (9,042 ) $ 1,679,350 December 31, 2018 U.S. Treasury securities $ 50,975 $ — $ (1,669 ) $ 49,306 U.S. government agency securities 36,844 71 (638 ) 36,277 Obligations of states and political subdivisions: Obligations of states and state agencies 100,777 18 (3,682 ) 97,113 Municipal bonds 101,207 209 (1,437 ) 99,979 Total obligations of states and political subdivisions 201,984 227 (5,119 ) 197,092 Residential mortgage-backed securities 1,469,059 1,484 (40,761 ) 1,429,782 Corporate and other debt securities 37,542 213 (668 ) 37,087 Total investment securities available for sale $ 1,796,404 $ 1,995 $ (48,855 ) $ 1,749,544 The age of unrealized losses and fair value of related securities available for sale at June 30, 2019 and December 31, 2018 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, 2019 U.S. Treasury securities $ — $ — $ 50,741 $ (222 ) $ 50,741 $ (222 ) U.S. government agency securities — — 2,488 (18 ) 2,488 (18 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 43,868 (222 ) 43,868 (222 ) Municipal bonds 1,986 (34 ) 20,335 (189 ) 22,321 (223 ) Total obligations of states and political subdivisions 1,986 (34 ) 64,203 (411 ) 66,189 (445 ) Residential mortgage-backed securities 220 (3 ) 703,691 (8,354 ) 703,911 (8,357 ) Total $ 2,206 $ (37 ) $ 821,123 $ (9,005 ) $ 823,329 $ (9,042 ) December 31, 2018 U.S. Treasury securities $ — $ — $ 49,306 $ (1,669 ) $ 49,306 $ (1,669 ) U.S. government agency securities 2,120 (20 ) 26,775 (618 ) 28,895 (638 ) Obligations of states and political subdivisions: Obligations of states and state agencies 17,560 (95 ) 75,718 (3,587 ) 93,278 (3,682 ) Municipal bonds 5,018 (106 ) 70,286 (1,331 ) 75,304 (1,437 ) Total obligations of states and political subdivisions 22,578 (201 ) 146,004 (4,918 ) 168,582 (5,119 ) Residential mortgage-backed securities 119,645 (668 ) 1,221,942 (40,093 ) 1,341,587 (40,761 ) Corporate and other debt securities 12,339 (161 ) 12,397 (507 ) 24,736 (668 ) Total $ 156,682 $ (1,050 ) $ 1,456,424 $ (47,805 ) $ 1,613,106 $ (48,855 ) 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, 2019 was 294 as compared to 545 at December 31, 2018 . The unrealized losses for the residential mortgage-backed securities category of the available for sale portfolio at June 30, 2019 largely related to several investment grade residential mortgage-backed securities mainly issued by Ginnie Mae, Fannie Mae, and Freddie Mac. As of June 30, 2019 , 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 $1.1 billion . The contractual maturities of debt securities available for sale at June 30, 2019 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, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 9,121 $ 9,117 Due after one year through five years 125,530 125,671 Due after five years through ten years 66,064 67,046 Due after ten years 103,967 104,537 Residential mortgage-backed securities 1,373,033 1,372,979 Total investment securities available for sale $ 1,677,715 $ 1,679,350 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 6.7 years at June 30, 2019 . 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; 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. During the three months ended June 30, 2019 , Valley recognized a $2.9 million other-than-temporary credit impairment charge on one special revenue bond classified as available for sale (within the obligations of states and state agencies in the tables above). The credit impairment was due to severe credit deterioration disclosed by the issuer in the second quarter of 2019, as well as the issuer's default on its contractual payment. At June 30, 2019 , the impaired security had an adjusted amortized cost and fair value of $680 thousand after recognition of the credit impairment. Comparatively, there were no other-than-temporary impairment losses on securities recognized in earnings for the three and six months ended June 30, 2018 . The obligations of states and political subdivisions include special revenue bonds which had an aggregated amortized cost and fair value of $306.5 million and $308.5 million , respectively, at June 30, 2019 . The gross unrealized losses associated with the special revenue bonds totaled $1.4 million as of June 30, 2019 . The special revenue bonds were largely issued by the states of (or municipalities within) Utah, Minnesota, Florida, other state housing authorities, as well the Port Authority of New York. As part of Valley’s pre-purchase analysis and on-going quarterly assessment of impairment of the obligations of states and political subdivisions, our Credit Risk Management Department conducts a financial analysis and risk rating assessment of each security issuer based on the issuer’s most recently issued financial statements and other publicly available information. Exclusive of the impaired security, these investments are a mix of bonds with investment grade ratings or not rated paying in accordance with their contractual terms. The vast majority of the bonds not rated by the rating agencies are state housing finance agency revenue bonds secured by Ginnie Mae securities that are commonly referred to as Tax Exempt Mortgage Securities (TEMS). Valley will continue to closely monitor the special revenue bond portfolio as part of its quarterly impairment analysis. The impaired special revenue bond was not accruing interest as of June 30, 2019 . Valley discontinues the recognition of interest on debt securities if the securities meet both of the following criteria: (i) regularly scheduled interest payments have not been paid or have been deferred by the issuer, and (ii) full collection of all contractual principal and interest payments is not deemed to be the most likely outcome, resulting in the recognition of other-than-temporary impairment of the security. Management does not believe that any individual unrealized loss as of June 30, 2019 |
Loans
Loans | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Loans | Loans The detail of the loan portfolio as of June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 December 31, 2018 Non-PCI Loans PCI Loans Total Non-PCI Loans PCI Loans Total (in thousands) Loans: Commercial and industrial $ 3,918,894 $ 696,871 $ 4,615,765 $ 3,590,375 $ 740,657 $ 4,331,032 Commercial real estate: Commercial real estate 10,470,127 2,327,890 12,798,017 9,912,309 2,494,966 12,407,275 Construction 1,288,417 240,551 1,528,968 1,122,348 365,784 1,488,132 Total commercial real estate loans 11,758,544 2,568,441 14,326,985 11,034,657 2,860,750 13,895,407 Residential mortgage 3,694,463 377,987 4,072,450 3,682,984 428,416 4,111,400 Consumer: Home equity 385,987 115,659 501,646 371,340 145,749 517,089 Automobile 1,362,143 323 1,362,466 1,319,206 365 1,319,571 Other consumer 910,174 12,676 922,850 846,821 14,149 860,970 Total consumer loans 2,658,304 128,658 2,786,962 2,537,367 160,263 2,697,630 Total loans $ 22,030,205 $ 3,771,957 $ 25,802,162 $ 20,845,383 $ 4,190,086 $ 25,035,469 Total loans include net unearned premiums and deferred loan costs of $19.6 million and $21.5 million at June 30, 2019 and December 31, 2018 , respectively. The outstanding balances (representing contractual balances owed to Valley) for PCI loans totaled $4.0 billion and $4.4 billion at June 30, 2019 and December 31, 2018 , respectively. Valley transferred $216.2 million and $263.3 million of residential mortgage loans from the loan portfolio to loans held for sale during the six months ended June 30, 2019 and 2018 , respectively. There were no other sales of loans from the held for investment portfolio during the six months ended June 30, 2019 and 2018 . Purchased Credit-Impaired 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. The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 890,771 $ 691,086 $ 875,958 $ 282,009 Acquisition — — — 474,208 Accretion (55,014 ) (60,536 ) (108,506 ) (125,667 ) Net increase in expected cash flows 18,130 — 86,435 — Balance, end of period $ 853,887 $ 630,550 $ 853,887 $ 630,550 The net increase in expected cash flows for certain pools of loans (included in the table above) is recognized prospectively as an adjustment to the yield over the estimated remaining life of the individual pools. Based upon the most recent reforecasted cash flows during the first half of 2019, the net increase in expected cash flows for the three and six months ended June 30, 2019 was largely driven by additional advances on acquired lines of credit coupled with lower prospective loss expectations. 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 appetite. 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. 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) by loan portfolio class at June 30, 2019 and December 31, 2018 : 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, 2019 Commercial and industrial $ 14,119 $ 4,135 $ 3,298 $ 76,216 $ 97,768 $ 3,821,126 $ 3,918,894 Commercial real estate: Commercial real estate 6,202 354 — 6,231 12,787 10,457,340 10,470,127 Construction — 1,342 — — 1,342 1,287,075 1,288,417 Total commercial real estate loans 6,202 1,696 — 6,231 14,129 11,744,415 11,758,544 Residential mortgage 19,131 3,635 1,054 12,069 35,889 3,658,574 3,694,463 Consumer loans: Home equity 673 82 — 1,630 2,385 383,602 385,987 Automobile 7,221 925 328 148 8,622 1,353,521 1,362,143 Other consumer 4,038 477 31 221 4,767 905,407 910,174 Total consumer loans 11,932 1,484 359 1,999 15,774 2,642,530 2,658,304 Total $ 51,384 $ 10,950 $ 4,711 $ 96,515 $ 163,560 $ 21,866,645 $ 22,030,205 December 31, 2018 Commercial and industrial $ 13,085 $ 3,768 $ 6,156 $ 70,096 $ 93,105 $ 3,497,270 $ 3,590,375 Commercial real estate: Commercial real estate 9,521 530 27 2,372 12,450 9,899,859 9,912,309 Construction 2,829 — — 356 3,185 1,119,163 1,122,348 Total commercial real estate loans 12,350 530 27 2,728 15,635 11,019,022 11,034,657 Residential mortgage 16,576 2,458 1,288 12,917 33,239 3,649,745 3,682,984 Consumer loans: Home equity 872 40 — 2,156 3,068 368,272 371,340 Automobile 7,973 1,299 308 80 9,660 1,309,546 1,319,206 Other consumer 895 47 33 419 1,394 845,427 846,821 Total consumer loans 9,740 1,386 341 2,655 14,122 2,523,245 2,537,367 Total $ 51,751 $ 8,142 $ 7,812 $ 88,396 $ 156,101 $ 20,689,282 $ 20,845,383 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 information about impaired loans by loan portfolio class at June 30, 2019 and December 31, 2018 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) June 30, 2019 Commercial and industrial $ 13,008 $ 90,018 $ 103,026 $ 115,602 $ 31,128 Commercial real estate: Commercial real estate 20,707 26,258 46,965 49,067 2,604 Construction 354 — 354 354 — Total commercial real estate loans 21,061 26,258 47,319 49,421 2,604 Residential mortgage 6,046 6,448 12,494 13,531 668 Consumer loans: Home equity 221 519 740 838 50 Total consumer loans 221 519 740 838 50 Total $ 40,336 $ 123,243 $ 163,579 $ 179,392 $ 34,450 December 31, 2018 Commercial and industrial $ 8,339 $ 89,513 $ 97,852 $ 104,007 $ 29,684 Commercial real estate: Commercial real estate 16,732 25,606 42,338 44,337 2,615 Construction 803 457 1,260 1,260 13 Total commercial real estate loans 17,535 26,063 43,598 45,597 2,628 Residential mortgage 7,826 6,078 13,904 14,948 600 Consumer loans: Home equity 125 1,146 1,271 1,366 113 Total consumer loans 125 1,146 1,271 1,366 113 Total $ 33,825 $ 122,800 $ 156,625 $ 165,918 $ 33,025 The following table presents, by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 105,633 $ 443 $ 87,674 $ 212 Commercial real estate: Commercial real estate 46,234 547 52,729 563 Construction 354 — 2,244 16 Total commercial real estate loans 46,588 547 54,973 579 Residential mortgage 12,254 95 12,914 185 Consumer loans: Home equity 747 10 1,794 33 Total consumer loans 747 10 1,794 33 Total $ 165,222 $ 1,095 $ 157,355 $ 1,009 Six Months Ended June 30, 2018 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 111,329 $ 1,014 $ 88,865 $ 926 Commercial real estate: Commercial real estate 45,515 1,266 54,104 1,179 Construction 587 — 2,230 39 Total commercial real estate loans 46,102 1,266 56,334 1,218 Residential mortgage 13,072 239 13,502 350 Consumer loans: Home equity 940 21 1,910 66 Total consumer loans 940 21 1,910 66 Total $ 171,443 $ 2,540 $ 160,611 $ 2,560 Interest income recognized on a cash basis (included in the table above) was immaterial for the three and six months ended June 30, 2019 and 2018 . 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 $74.4 million and $77.2 million as of June 30, 2019 and December 31, 2018 , respectively. Non-performing TDRs totaled $67.8 million and $55.0 million as of June 30, 2019 and December 31, 2018 , respectively. The following table presents non-PCI loans by loan class modified as TDRs during the three and six months ended June 30, 2019 and 2018 . The pre-modification and post-modification outstanding recorded investments disclosed in the tables below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2019 and 2018 , respectively. Three Months Ended June 30, 2019 2018 Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) Commercial and industrial 17 $ 14,663 $ 14,187 11 $ 8,822 $ 8,575 Commercial real estate: Commercial real estate 1 3,067 3,067 5 3,975 3,971 Construction — — — 1 532 491 Total commercial real estate 1 3,067 3,067 6 4,507 4,462 Residential mortgage 1 155 155 2 393 389 Total 19 $ 17,885 $ 17,409 19 $ 13,722 $ 13,426 Six Months Ended June 30, 2019 2018 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 $ 38,216 $ 37,428 15 $ 10,554 $ 10,170 Commercial real estate: Commercial real estate 2 4,665 4,665 6 4,170 4,164 Construction — — — 2 564 503 Total commercial real estate 2 4,665 4,665 8 4,734 4,667 Residential mortgage 1 155 155 5 980 963 Consumer — — — 1 88 85 Total 56 $ 43,036 $ 42,248 29 $ 16,356 $ 15,885 The total TDRs presented in the above table had allocated specific reserves for loan losses of approximately $11.7 million and $5.3 million at June 30, 2019 and 2018 , respectively. These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment disclosed in the "Impaired Loans" section above. There were $1.1 million and $2.0 million of partial charge-offs related to TDR modifications during the three and six months ended June 30, 2019 , respectively, and no charge-offs for such loans during the three and six months ended June 30, 2018 . The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default ( 90 or more days past due) for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, 2019 2018 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 18 $ 12,322 4 $ 3,212 Commercial real estate 1 383 — — Total 19 $ 12,705 4 $ 3,212 Six Months Ended June 30, 2019 2018 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 18 $ 12,322 4 $ 3,212 Commercial real estate 1 383 — — Residential mortgage 2 215 — — Consumer 1 18 — — Total 22 $ 12,938 4 $ 3,212 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 credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) at June 30, 2019 and December 31, 2018 based on the most recent analysis performed: Credit exposure - by internally assigned risk rating Pass Special Mention Substandard Doubtful Total Non-PCI Loans (in thousands) June 30, 2019 Commercial and industrial $ 3,733,252 $ 40,412 $ 75,853 $ 69,377 $ 3,918,894 Commercial real estate 10,362,538 63,116 43,564 909 10,470,127 Construction 1,286,278 1,785 354 — 1,288,417 Total $ 15,382,068 $ 105,313 $ 119,771 $ 70,286 $ 15,677,438 December 31, 2018 Commercial and industrial $ 3,399,426 $ 31,996 $ 92,320 $ 66,633 $ 3,590,375 Commercial real estate 9,828,744 30,892 51,710 963 9,912,309 Construction 1,121,321 215 812 — 1,122,348 Total $ 14,349,491 $ 63,103 $ 144,842 $ 67,596 $ 14,625,032 At June 30, 2019 and December 31, 2018 , the commercial and industrial loans rated substandard and doubtful in the above table included performing TDR taxi medallion loans and non-accrual (but mostly performing to their contractual terms) taxi medallion loans, respectively. 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, 2019 and December 31, 2018 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) June 30, 2019 Residential mortgage $ 3,682,394 $ 12,069 $ 3,694,463 Home equity 384,357 1,630 385,987 Automobile 1,361,995 148 1,362,143 Other consumer 909,953 221 910,174 Total $ 6,338,699 $ 14,068 $ 6,352,767 December 31, 2018 Residential mortgage $ 3,670,067 $ 12,917 $ 3,682,984 Home equity 369,184 2,156 371,340 Automobile 1,319,126 80 1,319,206 Other consumer 846,402 419 846,821 Total $ 6,204,779 $ 15,572 $ 6,220,351 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, 2019 and December 31, 2018 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total PCI Loans (in thousands) June 30, 2019 Commercial and industrial $ 668,887 $ 27,984 $ 696,871 Commercial real estate 2,309,294 18,596 2,327,890 Construction 239,926 625 240,551 Residential mortgage 372,531 5,456 377,987 Consumer 126,234 2,424 128,658 Total $ 3,716,872 $ 55,085 $ 3,771,957 December 31, 2018 Commercial and industrial $ 710,045 $ 30,612 $ 740,657 Commercial real estate 2,478,990 15,976 2,494,966 Construction 364,815 969 365,784 Residential mortgage 421,609 6,807 428,416 Consumer 158,502 1,761 160,263 Total $ 4,133,961 $ 56,125 $ 4,190,086 Other real estate owned (OREO) totaled $7.2 million and $9.5 million at June 30, 2019 and December 31, 2018 , respectively. OREO included foreclosed residential real estate properties totaling $1.2 million and $852 thousand at June 30, 2019 and December 31, 2018 , respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1.7 million and $1.8 million at June 30, 2019 and December 31, 2018 , respectively. |
Allowance for Credit Losses
Allowance for Credit Losses | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 . The following table summarizes the allowance for credit losses at June 30, 2019 and December 31, 2018 : June 30, December 31, (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 155,105 $ 151,859 Allowance for unfunded letters of credit 2,974 4,436 Total allowance for credit losses $ 158,079 $ 156,295 The following table summarizes the provision for credit losses for the periods indicated: Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Components of provision for credit losses: Provision for loan losses $ 3,706 $ 6,592 $ 11,562 $ 17,294 Provision for unfunded letters of credit (1,606 ) 550 (1,462 ) 796 Total provision for credit losses $ 2,100 $ 7,142 $ 10,100 $ 18,090 The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2019 and 2018 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 94,630 $ 47,762 $ 5,139 $ 6,850 $ 154,381 Loans charged-off (3,073 ) — — (1,752 ) (4,825 ) Charged-off loans recovered 1,195 22 9 617 1,843 Net (charge-offs) recoveries (1,878 ) 22 9 (1,135 ) (2,982 ) Provision for loan losses 1,632 1,194 71 809 3,706 Ending balance $ 94,384 $ 48,978 $ 5,219 $ 6,524 $ 155,105 Three Months Ended Allowance for loan losses: Beginning balance $ 66,546 $ 56,679 $ 4,100 $ 5,537 $ 132,862 Loans charged-off (642 ) (38 ) (99 ) (1,422 ) (2,201 ) Charged-off loans recovered 819 15 180 495 1,509 Net recoveries (charge-offs) 177 (23 ) 81 (927 ) (692 ) Provision for loan losses 7,534 (2,844 ) 443 1,459 6,592 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans charged-off (7,355 ) — (15 ) (3,780 ) (11,150 ) Charged-off loans recovered 1,678 43 10 1,103 2,834 Net (charge-offs) recoveries (5,677 ) 43 (5 ) (2,677 ) (8,316 ) Provision for loan losses 9,105 (715 ) 183 2,989 11,562 Ending balance $ 94,384 $ 48,978 $ 5,219 $ 6,524 $ 155,105 Six Months Ended Allowance for loan losses: Beginning balance $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans charged-off (773 ) (348 ) (167 ) (2,633 ) (3,921 ) Charged-off loans recovered 2,926 384 260 963 4,533 Net recoveries (charge-offs) 2,153 36 93 (1,670 ) 612 Provision for loan losses 14,872 (1,178 ) 926 2,674 17,294 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 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, 2019 and December 31, 2018 . Loans individually evaluated for impairment represent Valley's impaired loans. Loans acquired with discounts related to credit quality represent Valley's PCI loans. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) June 30, 2019 Allowance for loan losses: Individually evaluated for impairment $ 31,128 $ 2,604 $ 668 $ 50 $ 34,450 Collectively evaluated for impairment 63,256 46,374 4,551 6,474 120,655 Total $ 94,384 $ 48,978 $ 5,219 $ 6,524 $ 155,105 Loans: Individually evaluated for impairment $ 103,026 $ 47,319 $ 12,494 $ 740 $ 163,579 Collectively evaluated for impairment 3,815,868 11,711,225 3,681,969 2,657,564 21,866,626 Loans acquired with discounts related to credit quality 696,871 2,568,441 377,987 128,658 3,771,957 Total $ 4,615,765 $ 14,326,985 $ 4,072,450 $ 2,786,962 $ 25,802,162 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 29,684 $ 2,628 $ 600 $ 113 $ 33,025 Collectively evaluated for impairment 61,272 47,022 4,441 6,099 118,834 Total $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans: Individually evaluated for impairment $ 97,852 $ 43,598 $ 13,904 $ 1,271 $ 156,625 Collectively evaluated for impairment 3,492,523 10,991,059 3,669,080 2,536,096 20,688,758 Loans acquired with discounts related to credit quality 740,657 2,860,750 428,416 160,263 4,190,086 Total $ 4,331,032 $ 13,895,407 $ 4,111,400 $ 2,697,630 $ 25,035,469 |
Leases
Leases | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
Leases | Leases Lessor Arrangements Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. At June 30, 2019 , the total net investment in direct financing and sales-type leases was $377.3 million , comprised of $1.1 million in lease receivables and $376.2 million in unguaranteed residuals. Total lease income was $4.6 million and $3.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.9 million and $7.2 million for the six months ended June 30, 2019 and 2018 , respectively. Lessee Arrangements Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. During March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter of 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components of ROU assets and lease liabilities by lease type at June 30, 2019 . June 30, 2019 (in thousands) ROU assets: Operating leases $ 282,329 Finance leases 1,019 Total $ 283,348 Lease liabilities: Operating leases $ 305,364 Finance leases 2,041 Total $ 307,405 The following table presents the components by lease type, of total lease cost recognized in the consolidated statement of income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 73 $ 146 Interest on lease liabilities 49 101 Operating lease cost 8,949 15,923 Short-term lease cost 59 134 Variable lease cost 1,024 1,972 Sublease income (783 ) (1,686 ) Total lease cost (included in net occupancy and equipment expense) $ 9,371 $ 16,590 The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,896 Operating cash flows from finance leases 102 Financing cash flows from finance leases 240 The following table presents supplemental information related to leases at June 30, 2019 : June 30, 2019 Weighted-average remaining lease term Operating leases 13.08 years Finance leases 3.50 years Weighted-average discount rate Operating leases 3.72 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 The following table presents minimum aggregate lease payments in accordance with Topic 840 at June 30, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2018 $ 13,731 $ 1,092 $ 12,639 2019 27,640 2,124 25,516 2020 27,785 2,077 25,708 2021 26,955 2,009 24,946 2022 25,948 1,891 24,057 Thereafter 271,054 8,130 262,924 Total lease payments $ 393,113 $ 17,323 $ 375,790 Net occupancy and equipment expense included lease cost of $8.2 million and $16.4 million , net of sublease income of $874 thousand and $1.8 million , for the three and six months ended June 30, 2018 , respectively. |
Leases | Leases Lessor Arrangements Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. At June 30, 2019 , the total net investment in direct financing and sales-type leases was $377.3 million , comprised of $1.1 million in lease receivables and $376.2 million in unguaranteed residuals. Total lease income was $4.6 million and $3.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.9 million and $7.2 million for the six months ended June 30, 2019 and 2018 , respectively. Lessee Arrangements Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. During March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter of 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components of ROU assets and lease liabilities by lease type at June 30, 2019 . June 30, 2019 (in thousands) ROU assets: Operating leases $ 282,329 Finance leases 1,019 Total $ 283,348 Lease liabilities: Operating leases $ 305,364 Finance leases 2,041 Total $ 307,405 The following table presents the components by lease type, of total lease cost recognized in the consolidated statement of income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 73 $ 146 Interest on lease liabilities 49 101 Operating lease cost 8,949 15,923 Short-term lease cost 59 134 Variable lease cost 1,024 1,972 Sublease income (783 ) (1,686 ) Total lease cost (included in net occupancy and equipment expense) $ 9,371 $ 16,590 The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,896 Operating cash flows from finance leases 102 Financing cash flows from finance leases 240 The following table presents supplemental information related to leases at June 30, 2019 : June 30, 2019 Weighted-average remaining lease term Operating leases 13.08 years Finance leases 3.50 years Weighted-average discount rate Operating leases 3.72 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 The following table presents minimum aggregate lease payments in accordance with Topic 840 at June 30, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2018 $ 13,731 $ 1,092 $ 12,639 2019 27,640 2,124 25,516 2020 27,785 2,077 25,708 2021 26,955 2,009 24,946 2022 25,948 1,891 24,057 Thereafter 271,054 8,130 262,924 Total lease payments $ 393,113 $ 17,323 $ 375,790 Net occupancy and equipment expense included lease cost of $8.2 million and $16.4 million , net of sublease income of $874 thousand and $1.8 million , for the three and six months ended June 30, 2018 , respectively. |
Leases | Leases Lessor Arrangements Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. At June 30, 2019 , the total net investment in direct financing and sales-type leases was $377.3 million , comprised of $1.1 million in lease receivables and $376.2 million in unguaranteed residuals. Total lease income was $4.6 million and $3.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.9 million and $7.2 million for the six months ended June 30, 2019 and 2018 , respectively. Lessee Arrangements Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. During March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter of 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components of ROU assets and lease liabilities by lease type at June 30, 2019 . June 30, 2019 (in thousands) ROU assets: Operating leases $ 282,329 Finance leases 1,019 Total $ 283,348 Lease liabilities: Operating leases $ 305,364 Finance leases 2,041 Total $ 307,405 The following table presents the components by lease type, of total lease cost recognized in the consolidated statement of income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 73 $ 146 Interest on lease liabilities 49 101 Operating lease cost 8,949 15,923 Short-term lease cost 59 134 Variable lease cost 1,024 1,972 Sublease income (783 ) (1,686 ) Total lease cost (included in net occupancy and equipment expense) $ 9,371 $ 16,590 The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,896 Operating cash flows from finance leases 102 Financing cash flows from finance leases 240 The following table presents supplemental information related to leases at June 30, 2019 : June 30, 2019 Weighted-average remaining lease term Operating leases 13.08 years Finance leases 3.50 years Weighted-average discount rate Operating leases 3.72 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 The following table presents minimum aggregate lease payments in accordance with Topic 840 at June 30, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2018 $ 13,731 $ 1,092 $ 12,639 2019 27,640 2,124 25,516 2020 27,785 2,077 25,708 2021 26,955 2,009 24,946 2022 25,948 1,891 24,057 Thereafter 271,054 8,130 262,924 Total lease payments $ 393,113 $ 17,323 $ 375,790 Net occupancy and equipment expense included lease cost of $8.2 million and $16.4 million , net of sublease income of $874 thousand and $1.8 million , for the three and six months ended June 30, 2018 , respectively. |
Leases | Leases Lessor Arrangements Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. At June 30, 2019 , the total net investment in direct financing and sales-type leases was $377.3 million , comprised of $1.1 million in lease receivables and $376.2 million in unguaranteed residuals. Total lease income was $4.6 million and $3.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.9 million and $7.2 million for the six months ended June 30, 2019 and 2018 , respectively. Lessee Arrangements Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. During March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter of 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components of ROU assets and lease liabilities by lease type at June 30, 2019 . June 30, 2019 (in thousands) ROU assets: Operating leases $ 282,329 Finance leases 1,019 Total $ 283,348 Lease liabilities: Operating leases $ 305,364 Finance leases 2,041 Total $ 307,405 The following table presents the components by lease type, of total lease cost recognized in the consolidated statement of income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 73 $ 146 Interest on lease liabilities 49 101 Operating lease cost 8,949 15,923 Short-term lease cost 59 134 Variable lease cost 1,024 1,972 Sublease income (783 ) (1,686 ) Total lease cost (included in net occupancy and equipment expense) $ 9,371 $ 16,590 The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,896 Operating cash flows from finance leases 102 Financing cash flows from finance leases 240 The following table presents supplemental information related to leases at June 30, 2019 : June 30, 2019 Weighted-average remaining lease term Operating leases 13.08 years Finance leases 3.50 years Weighted-average discount rate Operating leases 3.72 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 The following table presents minimum aggregate lease payments in accordance with Topic 840 at June 30, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2018 $ 13,731 $ 1,092 $ 12,639 2019 27,640 2,124 25,516 2020 27,785 2,077 25,708 2021 26,955 2,009 24,946 2022 25,948 1,891 24,057 Thereafter 271,054 8,130 262,924 Total lease payments $ 393,113 $ 17,323 $ 375,790 Net occupancy and equipment expense included lease cost of $8.2 million and $16.4 million , net of sublease income of $874 thousand and $1.8 million , for the three and six months ended June 30, 2018 , respectively. |
Leases | Leases Lessor Arrangements Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. At June 30, 2019 , the total net investment in direct financing and sales-type leases was $377.3 million , comprised of $1.1 million in lease receivables and $376.2 million in unguaranteed residuals. Total lease income was $4.6 million and $3.5 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.9 million and $7.2 million for the six months ended June 30, 2019 and 2018 , respectively. Lessee Arrangements Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. During March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter of 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components of ROU assets and lease liabilities by lease type at June 30, 2019 . June 30, 2019 (in thousands) ROU assets: Operating leases $ 282,329 Finance leases 1,019 Total $ 283,348 Lease liabilities: Operating leases $ 305,364 Finance leases 2,041 Total $ 307,405 The following table presents the components by lease type, of total lease cost recognized in the consolidated statement of income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 73 $ 146 Interest on lease liabilities 49 101 Operating lease cost 8,949 15,923 Short-term lease cost 59 134 Variable lease cost 1,024 1,972 Sublease income (783 ) (1,686 ) Total lease cost (included in net occupancy and equipment expense) $ 9,371 $ 16,590 The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,896 Operating cash flows from finance leases 102 Financing cash flows from finance leases 240 The following table presents supplemental information related to leases at June 30, 2019 : June 30, 2019 Weighted-average remaining lease term Operating leases 13.08 years Finance leases 3.50 years Weighted-average discount rate Operating leases 3.72 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 The following table presents minimum aggregate lease payments in accordance with Topic 840 at June 30, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2018 $ 13,731 $ 1,092 $ 12,639 2019 27,640 2,124 25,516 2020 27,785 2,077 25,708 2021 26,955 2,009 24,946 2022 25,948 1,891 24,057 Thereafter 271,054 8,130 262,924 Total lease payments $ 393,113 $ 17,323 $ 375,790 Net occupancy and equipment expense included lease cost of $8.2 million and $16.4 million , net of sublease income of $874 thousand and $1.8 million , for the three and six months ended June 30, 2018 , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | Goodwill and Other Intangible Assets Goodwill totaled $1.1 billion at June 30, 2019 and December 31, 2018 . 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, 2018 ). There was no impairment of goodwill during the three and six months ended June 30, 2019 and 2018 . The following table summarizes other intangible assets as of June 30, 2019 and December 31, 2018 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) June 30, 2019 Loan servicing rights $ 89,732 $ (66,406 ) $ — $ 23,326 Core deposits 80,470 (34,640 ) — 45,830 Other 3,945 (2,516 ) — 1,429 Total other intangible assets $ 174,147 $ (103,562 ) $ — $ 70,585 December 31, 2018 Loan servicing rights $ 87,354 $ (63,161 ) $ (83 ) $ 24,110 Core deposits 80,470 (29,136 ) — 51,334 Other 3,945 (2,399 ) — 1,546 Total other intangible assets $ 171,769 $ (94,696 ) $ (83 ) $ 76,990 Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from 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 8.2 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 7.6 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, 2019 and 2018 . The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2019 through 2023 : Loan Servicing Rights Core Deposits Other (in thousands) 2019 $ 2,056 $ 5,457 $ 117 2020 3,603 9,607 220 2021 3,007 8,252 206 2022 2,513 6,898 191 2023 2,097 5,544 131 Valley recognized amortization expense on other intangible assets, including net impairment (or recovery of impairment) charges on loan servicing rights, totaling approximately $4.2 million and $4.6 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.5 million and $8.9 million for the six months ended June 30, 2019 and 2018 , respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 2019 | |
Disclosure of Compensation Related Costs, Share-based Payments [Abstract] | |
Stock-Based Compensation | Stock–Based Compensation Valley currently has one active employee stock 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 primary purpose of the 2016 Stock 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 (for acting in their roles as board members). As of June 30, 2019 , 4.3 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. Prior to January 1, 2019, restricted stock was 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 did not award any restricted stock shares during the six months ended June 30, 2019 as compared to 1.2 million shares of time-based restricted stock awarded during the six months ended June 30, 2018 to executive officers, key employees and directors 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, 2018 was $11.86 per share. Restricted Stock Units (RSUs). Valley granted 532 thousand and 446 thousand shares of performance-based RSUs to certain executive officers for the six months ended June 30, 2019 and 2018 , respectively. The performance-based RSU awards include RSUs with vesting conditions based upon certain levels of growth in Valley's tangible book value per share plus dividends and RSUs with vesting conditions based upon Valley's total shareholder return as compared to our peer group. The RSUs "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 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, 2019 and 2018 was $10.43 per share and $12.35 per share, respectively. Valley recorded total stock-based compensation expense of $4.2 million and $4.2 million for the three months ended June 30, 2019 and 2018 , respectively, and $8.3 million and $12.2 million for the six months ended June 30, 2019 and 2018 , respectively. The fair values of stock awards are expensed over the shorter of the vesting or required service period. As of June 30, 2019 , the unrecognized amortization expense for all stock-based employee compensation totaled approximately $21.9 million and will be recognized over an average remaining vesting period of 2.15 years |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 2019 | |
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 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. 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 has used 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. Valley sometimes enters into risk participation agreements with external lenders where the banks are sharing their risk of default on the interest rate swaps on participated loans. Valley either pays or receives a fee depending on the participation type. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value in credit derivatives are recognized directly in earnings. At June 30, 2019 , Valley had 20 credit swaps with an aggregate notional amount of $127.3 million related to risk participation agreements. At June 30, 2019 , Valley had one "steepener" swap with a total current notional amount of $10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and the rates 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 the 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 rate 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, 2019 December 31, 2018 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 swaps $ — $ 2,159 $ 255,000 $ — $ 27 $ 332,000 Fair value hedge interest rate swaps — 337 7,411 — 347 7,536 Total derivatives designated as hedging instruments $ — $ 2,496 $ 262,411 $ — $ 374 $ 339,536 Derivatives not designated as hedging instruments: Interest rate swaps and embedded derivatives $ 139,893 $ 30,337 $ 3,469,497 $ 48,642 $ 22,533 $ 3,390,578 Mortgage banking derivatives 603 669 140,306 337 774 105,247 Total derivatives not designated as hedging instruments $ 140,496 $ 31,006 $ 3,609,803 $ 48,979 $ 23,307 $ 3,495,825 The Chicago Mercantile Exchange and London Clearing House variation margins are classified 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 interest rate swaps assets and designated and non-designated interest rate swaps liabilities were offset by variation margins posted by (with) the applicable counterparties and reported in the table above on a net basis at June 30, 2019 and December 31, 2018 . Gains (Losses) included in the consolidated statements of income and in other comprehensive income (loss), 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 2019 2018 2019 2018 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (383 ) $ (866 ) $ (673 ) $ (2,317 ) Amount of (loss) gain recognized in other comprehensive income (loss) (962 ) 637 (1,512 ) 3,388 The accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $4.6 million and $4.0 million at June 30, 2019 and December 31, 2018 , 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 $2.6 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 2019 2018 2019 2018 (in thousands) Derivative - interest rate swaps: Interest income $ 49 $ 88 $ 73 $ 219 Hedged item - loans: Interest income $ (49 ) $ (88 ) $ (73 ) $ (219 ) Fee income related to derivative interest rate swaps executed with commercial loan customers totaled $5.4 million and $4.4 million for the three months ended June 30, 2019 and 2018 , respectively, and $9.5 million and $7.7 million for the six months ended June 30, 2019 and 2018 , respectively, and was included in other non-interest income. The following table presents the hedged items related to interest rate derivatives designated as hedges of fair value and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at June 30, 2019 and December 31, 2018 . Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Asset Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 (in thousands) Loans $ 7,748 $ 7,882 $ 337 $ 346 The net gains (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 2019 2018 2019 2018 (in thousands) Non-designated hedge interest rate derivatives Other non-interest expense $ (347 ) $ 230 $ (757 ) $ 448 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, 2019 , Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of June 30, 2019 , 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 $17.2 million |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | Balance Sheet Offsetting Certain financial instruments, including derivatives (consisting of interest rate swaps and caps) 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, 2019 and December 31, 2018 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2019 Assets: Interest rate swaps $ 139,893 $ — $ 139,893 $ (13,385 ) $ — $ 126,508 Liabilities: Interest rate swaps $ 32,833 $ — $ 32,833 $ (13,385 ) $ (15,211 ) (1) $ 4,237 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 182,833 $ — $ 182,833 $ (13,385 ) $ (165,211 ) $ 4,237 December 31, 2018 Assets: Interest rate swaps and caps $ 48,642 $ — $ 48,642 $ (1,214 ) $ — $ 47,428 Liabilities: Interest rate swaps and caps $ 22,907 $ — $ 22,907 $ (1,214 ) $ (1,852 ) (1) $ 19,841 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 172,907 $ — $ 172,907 $ (1,214 ) $ (151,852 ) $ 19,841 (1) Represents the amount of collateral posted with derivative counterparties that offsets net liability positions. (2) Represents the fair value of non-cash pledged investment securities. |
Tax Credit Investments
Tax Credit Investments | 6 Months Ended |
Jun. 30, 2019 | |
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. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and other-than-temporary impairments, if applicable (See "Other-Than-Temporary Impairment Analysis" section below). 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, 2019 and December 31, 2018 : June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 27,738 $ 36,961 Other tax credit investments, net 58,215 68,052 Total tax credit investments, net $ 85,953 $ 105,013 Other Liabilities: Unfunded affordable housing tax credit commitments $ 2,696 $ 4,520 Unfunded other tax credit commitments 5,139 8,756 Total unfunded tax credit commitments $ 7,835 $ 13,276 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, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,708 $ 1,429 $ 3,421 $ 3,250 Other tax credit investment credits and tax benefits 2,158 5,680 4,961 11,165 Total reduction in income tax expense $ 3,866 $ 7,109 $ 8,382 $ 14,415 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 593 $ (319 ) $ 1,266 $ 667 Affordable housing tax credit investment impairment losses 794 515 1,524 1,102 Other tax credit investment losses 2,509 1,253 3,496 1,790 Other tax credit investment impairment losses 967 3,021 5,750 6,185 Total amortization of tax credit investments recorded in non-interest expense $ 4,863 $ 4,470 $ 12,036 $ 9,744 Other-Than-Temporary Impairment Analysis An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The determination of whether a decline in value of a tax credit investment is other-than-temporary requires significant judgment and is performed separately for each investment. The tax credit investments are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. These circumstances can include, but are not limited to, the following factors: • Evidence that we do not have the ability to recover the carrying amount of the investment; • The inability of the investee to sustain earnings; • A current fair value of the investment based upon cash flow projections that is less than the carrying amount; and • Change in the economic or technological environment that could adversely affect the investee’s operations On a quarterly basis, Valley obtains financial reporting on its underlying tax credit investment assets for each fund from the fund manager who is independent of us and the Fund Sponsor. The financial reporting is reviewed for deterioration in the financial condition of the fund, the level of cash flows and any significant losses or impairment charges. Valley also regularly reviews the condition and continuing prospects of the underlying operations of the investment with the fund manager, including any observations from site visits and communications with the fund sponsor, if available. Annually, Valley obtains the audited financial statements prepared by an independent accounting firm for each investment, as well as the annual tax returns. Generally, none of the aforementioned review factors are individually conclusive and the relative importance of each factor will vary based on facts and circumstances. However, the longer the expected period of recovery, the stronger and more objective the positive evidence needs to be in order to overcome the presumption that the impairment is other than temporary. If management determines that a decline in value is other than temporary per its quarterly and annual reviews, including current probable cash flow projections, the applicable tax credit investment is written down to its fair value through an impairment charge to earnings, which establishes the new cost basis of the investment. The aggregate unamortized investment related to three federal renewable energy tax credit funds sponsored by DC Solar represented approximately $2.4 million (or approximately $800 thousand for each fund) of the $68.1 million of net other tax credit investments reported as of December 31, 2018 . These funds are disclosed in detail in Note 15. During the first quarter of 2019, Valley determined that future cash flows related to the remaining investments in all three funds were not probable based upon new information available, including the sponsor’s bankruptcy proceedings which were reclassified to Chapter 7 from Chapter 11 in late March 2019. As a result, we recognized an other-than-temporary impairment charge for the entire aggregate unamortized investment of $2.4 million during the first quarter, which is included within amortization of tax credit investments for the six months ended June 30, 2019 . The federal energy investment tax credit (FEITC) program encourages the use of renewable energy, including solar energy. The energy program reduces federal income taxes by offering a 30 percent tax credit to owners of energy property that meets established performance and quality standards. In addition, there are other returns from tax losses and cash flows generated by the investment. Typically, an owner and the tax credit investor, such as Valley, establish a limited partnership. The tax credit investor usually has a substantial, but passive, interest in the partnership and the owner of the solar energy property has a small interest. The ownership structure permits the tax benefits to pass through to the tax credit investor with an expected exit from ownership after five years. The amount of the FEITC is calculated based on the total cost of a renewable energy property. From 2013 to 2015, Valley invested in three FEITC funds (Fund VI, Fund XII and Fund XIX) sponsored by DC Solar to purchase a total of 512 mobile solar generator units. The valuation of the unit price of the solar units was supported by an appraisal prepared by a well-recognized national appraisal firm. The total tax credits of $22.8 million were used to reduce Valley’s federal income taxes payable in its consolidated financial statements from 2013 to 2015. The full value of the FEITC is earned immediately when a solar energy property is placed in service. However, the tax credit is subject to recapture for federal tax purposes for a five-year compliance period, if the property ceases to remain eligible for the tax credit. A property may become ineligible during the compliance period due to (i) a sale or disposal of the property, (ii) lease of the property to a tax exempt entity or (3) its removal from service (i.e., no longer available for lease). During the first year after the property has been placed in service, the recapture rate is 100 percent of the tax credit. The rate declines by 20 percent each year thereafter until the end of the fifth year. The compliance period expires at the end of the fifth year after the property has been placed in service. All three funds leased the mobile solar generator units to DC Solar Distributions, which stated its intention to sublease the units to third parties. An entity shall initially recognize the financial statement effects of a tax position when it is more likely than not (or a likelihood of more than 50 percent), based on the technical merits, that the position will be sustained upon examination. The level of evidence that is necessary and appropriate to support an entity's assessment of the technical merits of a tax position is a matter of judgment that depends on all available information. At each of the investment dates, Valley obtained two tax opinions from national law firms that, based upon the facts recited, support the recognition of the tax credits in its tax returns. Based upon management's review of the tax opinions on the investment’s legal structure, Valley recognized and measured each tax position at 100 percent of the tax credit. Valley's subsequent measurement of a tax position is based on management’s best judgment given the facts, circumstances, and information available at the latest quarterly reporting date. A change in judgment that results in subsequent derecognition or change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) is recognized as a discrete item in the period in which the change occurs. In late February 2019, Valley learned of Federal Bureau of Investigation (FBI) allegations of fraudulent conduct by DC Solar, including information about asset seizures of DC Solar property and assets of its principals and ongoing federal investigations. Since learning of the allegations, Valley has conducted an ongoing investigation coordinated with other DC Solar fund investors, investors' outside counsel and a third party specialist. The facts uncovered to date by the investor group impact each investor differently, affecting their likelihood of loss and the ultimate amount of tax benefit likely to be recaptured. To date, over 93 percent of the 512 solar generator units purchased by Valley's three funds have been positively identified by a third party specialist at several leasee and other locations throughout the United States. Valley has also learned through its investigation that the IRS has challenged the valuation appraisals of similar solar generator units that were used to determine the federal renewable energy tax credits related to another DC Solar fund owned by an unrelated investor. Given the circumstances at this time, including the aforementioned IRS challenge of the appraisals similar units used by an unrelated fund investor, and management's best judgments regarding the settlement of the tax positions that it would ultimately accept with the IRS, Valley currently expects a partial loss and tax benefit recapture. As a result of this quarterly assessment, our net income for the three and six months ended June 30, 2019 includes an increase to our provision for income taxes of $223 thousand and $12.3 million , respectively, reflecting the reserve for uncertain tax liability positions (shown in the table below) related to renewable energy tax credits and other tax benefits previously recognized from the investments in the DC Solar funds plus interest. Valley can provide no assurance that it will not recognize additional tax provisions related to this uncertain tax liability as management learns and analyzes additional facts and information, or that Valley will not ultimately incur a complete loss on the related tax positions, which is currently estimated to be $29.4 million (inclusive of tax provisions totaling $12.3 million for the six months ended June 30, 2019 ). A reconciliation of Valley’s gross unrecognized tax benefits at June 30, 2019 and 2018 are presented in the table below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 12,100 $ 4,238 $ — $ 4,238 Additions based on tax positions related to current year 223 — 12,323 — Ending balance $ 12,323 $ 4,238 $ 12,323 $ 4,238 The entire balance of unrecognized tax benefits, if recognized, would favorably affect our effective income tax rate. Valley’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Accrued interest associated with uncertain tax positions totaled approximately $2.1 million and $1.8 million at June 30, 2019 and December 31, 2018 , respectively. Valley monitors its tax positions for the underlying facts, circumstances, and information available including the federal investigation of DC Solar and changes in tax laws, case law and regulations that may necessitate subsequent de-recognition of previous tax benefits. |
Income Taxes
Income Taxes | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | 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. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and other-than-temporary impairments, if applicable (See "Other-Than-Temporary Impairment Analysis" section below). 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, 2019 and December 31, 2018 : June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 27,738 $ 36,961 Other tax credit investments, net 58,215 68,052 Total tax credit investments, net $ 85,953 $ 105,013 Other Liabilities: Unfunded affordable housing tax credit commitments $ 2,696 $ 4,520 Unfunded other tax credit commitments 5,139 8,756 Total unfunded tax credit commitments $ 7,835 $ 13,276 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, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,708 $ 1,429 $ 3,421 $ 3,250 Other tax credit investment credits and tax benefits 2,158 5,680 4,961 11,165 Total reduction in income tax expense $ 3,866 $ 7,109 $ 8,382 $ 14,415 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 593 $ (319 ) $ 1,266 $ 667 Affordable housing tax credit investment impairment losses 794 515 1,524 1,102 Other tax credit investment losses 2,509 1,253 3,496 1,790 Other tax credit investment impairment losses 967 3,021 5,750 6,185 Total amortization of tax credit investments recorded in non-interest expense $ 4,863 $ 4,470 $ 12,036 $ 9,744 Other-Than-Temporary Impairment Analysis An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The determination of whether a decline in value of a tax credit investment is other-than-temporary requires significant judgment and is performed separately for each investment. The tax credit investments are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. These circumstances can include, but are not limited to, the following factors: • Evidence that we do not have the ability to recover the carrying amount of the investment; • The inability of the investee to sustain earnings; • A current fair value of the investment based upon cash flow projections that is less than the carrying amount; and • Change in the economic or technological environment that could adversely affect the investee’s operations On a quarterly basis, Valley obtains financial reporting on its underlying tax credit investment assets for each fund from the fund manager who is independent of us and the Fund Sponsor. The financial reporting is reviewed for deterioration in the financial condition of the fund, the level of cash flows and any significant losses or impairment charges. Valley also regularly reviews the condition and continuing prospects of the underlying operations of the investment with the fund manager, including any observations from site visits and communications with the fund sponsor, if available. Annually, Valley obtains the audited financial statements prepared by an independent accounting firm for each investment, as well as the annual tax returns. Generally, none of the aforementioned review factors are individually conclusive and the relative importance of each factor will vary based on facts and circumstances. However, the longer the expected period of recovery, the stronger and more objective the positive evidence needs to be in order to overcome the presumption that the impairment is other than temporary. If management determines that a decline in value is other than temporary per its quarterly and annual reviews, including current probable cash flow projections, the applicable tax credit investment is written down to its fair value through an impairment charge to earnings, which establishes the new cost basis of the investment. The aggregate unamortized investment related to three federal renewable energy tax credit funds sponsored by DC Solar represented approximately $2.4 million (or approximately $800 thousand for each fund) of the $68.1 million of net other tax credit investments reported as of December 31, 2018 . These funds are disclosed in detail in Note 15. During the first quarter of 2019, Valley determined that future cash flows related to the remaining investments in all three funds were not probable based upon new information available, including the sponsor’s bankruptcy proceedings which were reclassified to Chapter 7 from Chapter 11 in late March 2019. As a result, we recognized an other-than-temporary impairment charge for the entire aggregate unamortized investment of $2.4 million during the first quarter, which is included within amortization of tax credit investments for the six months ended June 30, 2019 . The federal energy investment tax credit (FEITC) program encourages the use of renewable energy, including solar energy. The energy program reduces federal income taxes by offering a 30 percent tax credit to owners of energy property that meets established performance and quality standards. In addition, there are other returns from tax losses and cash flows generated by the investment. Typically, an owner and the tax credit investor, such as Valley, establish a limited partnership. The tax credit investor usually has a substantial, but passive, interest in the partnership and the owner of the solar energy property has a small interest. The ownership structure permits the tax benefits to pass through to the tax credit investor with an expected exit from ownership after five years. The amount of the FEITC is calculated based on the total cost of a renewable energy property. From 2013 to 2015, Valley invested in three FEITC funds (Fund VI, Fund XII and Fund XIX) sponsored by DC Solar to purchase a total of 512 mobile solar generator units. The valuation of the unit price of the solar units was supported by an appraisal prepared by a well-recognized national appraisal firm. The total tax credits of $22.8 million were used to reduce Valley’s federal income taxes payable in its consolidated financial statements from 2013 to 2015. The full value of the FEITC is earned immediately when a solar energy property is placed in service. However, the tax credit is subject to recapture for federal tax purposes for a five-year compliance period, if the property ceases to remain eligible for the tax credit. A property may become ineligible during the compliance period due to (i) a sale or disposal of the property, (ii) lease of the property to a tax exempt entity or (3) its removal from service (i.e., no longer available for lease). During the first year after the property has been placed in service, the recapture rate is 100 percent of the tax credit. The rate declines by 20 percent each year thereafter until the end of the fifth year. The compliance period expires at the end of the fifth year after the property has been placed in service. All three funds leased the mobile solar generator units to DC Solar Distributions, which stated its intention to sublease the units to third parties. An entity shall initially recognize the financial statement effects of a tax position when it is more likely than not (or a likelihood of more than 50 percent), based on the technical merits, that the position will be sustained upon examination. The level of evidence that is necessary and appropriate to support an entity's assessment of the technical merits of a tax position is a matter of judgment that depends on all available information. At each of the investment dates, Valley obtained two tax opinions from national law firms that, based upon the facts recited, support the recognition of the tax credits in its tax returns. Based upon management's review of the tax opinions on the investment’s legal structure, Valley recognized and measured each tax position at 100 percent of the tax credit. Valley's subsequent measurement of a tax position is based on management’s best judgment given the facts, circumstances, and information available at the latest quarterly reporting date. A change in judgment that results in subsequent derecognition or change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) is recognized as a discrete item in the period in which the change occurs. In late February 2019, Valley learned of Federal Bureau of Investigation (FBI) allegations of fraudulent conduct by DC Solar, including information about asset seizures of DC Solar property and assets of its principals and ongoing federal investigations. Since learning of the allegations, Valley has conducted an ongoing investigation coordinated with other DC Solar fund investors, investors' outside counsel and a third party specialist. The facts uncovered to date by the investor group impact each investor differently, affecting their likelihood of loss and the ultimate amount of tax benefit likely to be recaptured. To date, over 93 percent of the 512 solar generator units purchased by Valley's three funds have been positively identified by a third party specialist at several leasee and other locations throughout the United States. Valley has also learned through its investigation that the IRS has challenged the valuation appraisals of similar solar generator units that were used to determine the federal renewable energy tax credits related to another DC Solar fund owned by an unrelated investor. Given the circumstances at this time, including the aforementioned IRS challenge of the appraisals similar units used by an unrelated fund investor, and management's best judgments regarding the settlement of the tax positions that it would ultimately accept with the IRS, Valley currently expects a partial loss and tax benefit recapture. As a result of this quarterly assessment, our net income for the three and six months ended June 30, 2019 includes an increase to our provision for income taxes of $223 thousand and $12.3 million , respectively, reflecting the reserve for uncertain tax liability positions (shown in the table below) related to renewable energy tax credits and other tax benefits previously recognized from the investments in the DC Solar funds plus interest. Valley can provide no assurance that it will not recognize additional tax provisions related to this uncertain tax liability as management learns and analyzes additional facts and information, or that Valley will not ultimately incur a complete loss on the related tax positions, which is currently estimated to be $29.4 million (inclusive of tax provisions totaling $12.3 million for the six months ended June 30, 2019 ). A reconciliation of Valley’s gross unrecognized tax benefits at June 30, 2019 and 2018 are presented in the table below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 12,100 $ 4,238 $ — $ 4,238 Additions based on tax positions related to current year 223 — 12,323 — Ending balance $ 12,323 $ 4,238 $ 12,323 $ 4,238 The entire balance of unrecognized tax benefits, if recognized, would favorably affect our effective income tax rate. Valley’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Accrued interest associated with uncertain tax positions totaled approximately $2.1 million and $1.8 million at June 30, 2019 and December 31, 2018 , respectively. Valley monitors its tax positions for the underlying facts, circumstances, and information available including the federal investigation of DC Solar and changes in tax laws, case law and regulations that may necessitate subsequent de-recognition of previous tax benefits. |
Business Segments
Business Segments | 6 Months Ended |
Jun. 30, 2019 | |
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. |
New Authoritative Accounting _2
New Authoritative Accounting Guidance (Policies) | 6 Months Ended |
Jun. 30, 2019 | |
Accounting Changes and Error Corrections [Abstract] | |
New Accounting Guidance Adopted and Not Yet Adopted | New Accounting Guidance Adopted in 2019 Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)” and subsequent related updates require lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model that requires lessees to recognize a right of use (ROU) asset and related lease liability for all leases with a term longer than 12 months . 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. Leases will continue to be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Effective January 1, 2019, Valley adopted ASU No. 2016-02 (and subsequent related updates) and recorded ROU assets of approximately $216 million (net of the reversal of the deferred rent liability at such date) and lease obligations of approximately $241 million . Valley elected the "package of practical expedients," as permitted under the transition guidance within Topic 842. The practical expedients enable Valley to carry forward lease classifications under the prior accounting guidance (Topic 840). Additionally, the expedients enable the use of hindsight, through which Valley reassessed the likelihood of extending leases under extension clauses available to Valley. This shortened the expected lives of certain leases. As a result, Valley recorded a $4.4 million (net of tax) credit adjustment to the opening balance of retained earnings as of January 1, 2019. Valley also made accounting policy elections to (i) separate non-lease components from its lease obligations with the non-lease components being charged to earnings when incurred and to (ii) exclude short-term leases of 12 months or less from the balance sheet. The comparative periods prior to the adoption date of Topic 842 will continue to be presented in the financial statements in accordance with prior GAAP (Topic 840). See Note 9 for the additional required disclosures. 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 was effective for Valley on January 1, 2019 and was applied using the modified retrospective method, resulting in a cumulative-effect adjustment to the opening balance of retained earnings totaling $1.4 million (net of tax) as of January 1, 2019. ASU No. 2017-08 did not have a significant impact on Valley's consolidated financial statements. ASU No. 2019-01, "Leases (Topic 842): Codification Improvements" reinstates the fair value exception in ASC 840, in which lessors will measure fair value, at lease commencement, as cost, reflecting any applicable volume or trade discounts. ASU No. 2019-01 also requires lessors that are depository or lending institutions in the scope of Topic 842 to classify the principal portion of lease payments received under sales-type and direct financing leases as cash flows from investing activities. The interest portion of those and all lease payments received under operating leases are classified as cash flows from operating activities. Effective January 1, 2019, Valley early adopted ASU No. 2019-01 concurrent with its adoption of Topic 842. The adoption of ASU No. 2019-01 did not have a material impact on Valley's consolidated financial statements. New Accounting Guidance Not Yet Adopted ASU No. 2019-05, "Financial Instruments - Credit Losses (Topic 326): Targeted Transition Relief" provides transition relief for entities adopting the credit losses standard, ASU No. 2016-13. Specifically, this update amends ASU No. 2016-13 to allow companies to irrevocably elect, upon adoption of ASU No. 2016-13, the fair value option for financial instruments that (1) were previously recorded at amortized cost, (2) are within the scope of the credit losses guidance in Topic 326-20, (3) are eligible for the fair value option under Topic 825-10, and (4) are not held-to-maturity debt securities. ASU No. 2019-05 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. ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. The most significant provisions of the ASU relate to how companies will estimate expected credit losses under Topic 326 by incorporating (1) expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) clarifying that contractual extensions or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. ASU No. 2019-04 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. See more details regarding our current implementation of Topic 326 and ASU No. 2016-13 below. 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. 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. 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 all expected losses over the lives of the assets 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 and Management is currently evaluating the impact of the ASU on Valley’s consolidated financial statements. Valley’s implementation effort is managed through several cross-functional working groups. These groups continue to evaluate the requirements of the new standard, assess its impact on current operational processes, and develop loss models that accurately project lifetime expected loss estimates. Valley expects that the adoption of ASU No. 2016-13 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 non-accretable 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 Valley's loan and investment portfolios at the adoption date, and the economic conditions and forecasts at that date. During the second quarter of 2019, Valley began the process of performing parallel runs for CECL alongside the current allowance process. Management will continue to refine and validate the new methodologies and models throughout 2019. |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands, except for share data) Net income available to common shareholders $ 73,296 $ 69,630 $ 183,454 $ 108,423 Basic weighted average number of common shares outstanding 331,748,552 331,318,381 331,675,313 331,024,531 Plus: Common stock equivalents 1,211,250 1,577,102 1,254,046 1,575,460 Diluted weighted average number of common shares outstanding 332,959,802 332,895,483 332,929,359 332,599,991 Earnings per common share: Basic $ 0.22 $ 0.21 $ 0.55 $ 0.33 Diluted 0.22 0.21 0.55 0.33 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 : Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at March 31, 2019 $ (17,266 ) $ (4,205 ) $ (31,786 ) $ (53,257 ) Other comprehensive income (loss) before reclassification 18,488 (683 ) — 17,805 Amounts reclassified from other comprehensive income (loss) (8 ) 274 55 321 Other comprehensive income (loss), net 18,480 (409 ) 55 18,126 Balance at June 30, 2019 $ 1,214 $ (4,614 ) $ (31,731 ) $ (35,131 ) Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on Available for Sale (AFS) Securities Unrealized Gains and (Losses) on Derivatives Defined Benefit Pension Plan (in thousands) Balance at December 31, 2018 $ (33,559 ) $ (4,031 ) $ (31,841 ) $ (69,431 ) Other comprehensive income (loss) before reclassification 34,755 (1,065 ) — 33,690 Amounts reclassified from other comprehensive income (loss) 18 482 110 610 Other comprehensive income (loss), net 34,773 (583 ) 110 34,300 Balance at June 30, 2019 $ 1,214 $ (4,614 ) $ (31,731 ) $ (35,131 ) |
Reclassification from Each Component 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, 2019 and 2018 : Amounts Reclassified from Accumulated Other Comprehensive Loss Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2019 2018 2019 2018 Income Statement Line Item (in thousands) Unrealized gains (losses) on AFS securities before tax $ 11 $ (52 ) $ (21 ) $ (795 ) Gains (losses) on securities transactions, net Tax effect (3 ) 10 3 221 Total net of tax 8 (42 ) (18 ) (574 ) Unrealized losses on derivatives (cash flow hedges) before tax (383 ) (866 ) (673 ) (2,317 ) Interest expense Tax effect 109 247 191 662 Total net of tax (274 ) (619 ) (482 ) (1,655 ) Defined benefit pension plan: Amortization of net loss (78 ) (157 ) (156 ) (314 ) * Tax effect 23 45 46 90 Total net of tax (55 ) (112 ) (110 ) (224 ) Total reclassifications, net of tax $ (321 ) $ (773 ) $ (610 ) $ (2,453 ) * Amortization of net loss is included in the computation of net periodic pension cost recognized within other non-interest expense. |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Fair Value Disclosures [Abstract] | |
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, 2019 and December 31, 2018 . The assets presented under “nonrecurring fair value measurements” in the tables 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 $ 50,741 $ 50,741 $ — $ — U.S. government agency securities 33,028 — 33,028 — Obligations of states and political subdivisions 186,697 — 186,017 680 Residential mortgage-backed securities 1,372,979 — 1,372,979 — Corporate and other debt securities 35,905 — 35,905 — Total available for sale 1,679,350 50,741 1,627,929 680 Loans held for sale (1) 36,641 — 36,641 — Other assets (2) 140,496 — 140,496 — Total assets $ 1,856,487 $ 50,741 $ 1,805,066 $ 680 Liabilities Other liabilities (2) $ 33,502 $ — $ 33,502 $ — Total liabilities $ 33,502 $ — $ 33,502 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 43,707 $ — $ — $ 43,707 Foreclosed assets 5,587 — — 5,587 Total $ 49,294 $ — $ — $ 49,294 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 $ 49,306 $ 49,306 $ — $ — U.S. government agency securities 36,277 — 36,277 — Obligations of states and political subdivisions 197,092 — 197,092 — Residential mortgage-backed securities 1,429,782 — 1,429,782 — Corporate and other debt securities 37,087 — 37,087 — Total available for sale 1,749,544 49,306 1,700,238 — Loans held for sale (1) 35,155 — 35,155 — Other assets (2) 48,979 — 48,979 — Total assets $ 1,833,678 $ 49,306 $ 1,784,372 $ — Liabilities Other liabilities (2) $ 23,681 $ — $ 23,681 $ — Total liabilities $ 23,681 $ — $ 23,681 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 45,245 $ — $ — $ 45,245 Loan servicing rights 273 — — 273 Foreclosed assets 5,673 — — 5,673 Total $ 51,191 $ — $ — $ 51,191 (1) Represents residential mortgage loans originated for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $35.6 million and $34.6 million at June 30, 2019 and December 31, 2018 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. |
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, 2019 and December 31, 2018 were as follows: Fair Value Hierarchy June 30, 2019 December 31, 2018 Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 276,291 $ 276,291 $ 251,541 $ 251,541 Interest bearing deposits with banks Level 1 178,905 178,905 177,088 177,088 Investment securities held to maturity: U.S. Treasury securities Level 1 138,436 144,655 138,517 142,049 U.S. government agency securities Level 2 8,049 8,092 8,721 8,641 Obligations of states and political subdivisions Level 2 536,778 549,050 585,656 586,033 Residential mortgage-backed securities Level 2 1,415,409 1,419,066 1,266,770 1,235,605 Trust preferred securities Level 2 37,314 31,372 37,332 31,486 Corporate and other debt securities Level 2 32,250 32,557 31,250 31,129 Total investment securities held to maturity 2,168,236 2,184,792 2,068,246 2,034,943 Net loans Level 3 25,647,057 25,207,831 24,883,610 24,068,755 Accrued interest receivable Level 1 99,065 99,065 95,296 95,296 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 260,490 260,490 232,080 232,080 Financial liabilities Deposits without stated maturities Level 1 17,435,741 17,435,741 17,388,990 17,388,990 Deposits with stated maturities Level 2 7,338,188 7,338,945 7,063,984 7,005,573 Short-term borrowings Level 1 2,387,784 2,388,299 2,118,914 2,091,892 Long-term borrowings Level 2 1,800,182 1,840,862 1,654,268 1,751,194 Junior subordinated debentures issued to capital trusts Level 2 55,544 57,040 55,370 55,692 Accrued interest payable (2) Level 1 36,031 36,031 25,762 25,762 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2019 U.S. Treasury securities $ 138,436 $ 6,219 $ — $ 144,655 U.S. government agency securities 8,049 69 (26 ) 8,092 Obligations of states and political subdivisions: Obligations of states and state agencies 314,878 7,680 (992 ) 321,566 Municipal bonds 221,900 5,640 (56 ) 227,484 Total obligations of states and political subdivisions 536,778 13,320 (1,048 ) 549,050 Residential mortgage-backed securities 1,415,409 13,242 (9,585 ) 1,419,066 Trust preferred securities 37,314 62 (6,004 ) 31,372 Corporate and other debt securities 32,250 399 (92 ) 32,557 Total investment securities held to maturity $ 2,168,236 $ 33,311 $ (16,755 ) $ 2,184,792 December 31, 2018 U.S. Treasury securities $ 138,517 $ 3,532 $ — $ 142,049 U.S. government agency securities 8,721 55 (135 ) 8,641 Obligations of states and political subdivisions: Obligations of states and state agencies 341,702 4,332 (5,735 ) 340,299 Municipal bonds 243,954 3,141 (1,361 ) 245,734 Total obligations of states and political subdivisions 585,656 7,473 (7,096 ) 586,033 Residential mortgage-backed securities 1,266,770 3,203 (34,368 ) 1,235,605 Trust preferred securities 37,332 77 (5,923 ) 31,486 Corporate and other debt securities 31,250 96 (217 ) 31,129 Total investment securities held to maturity $ 2,068,246 $ 14,436 $ (47,739 ) $ 2,034,943 |
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, 2019 and December 31, 2018 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, 2019 U.S. government agency securities $ — $ — $ 5,675 $ (26 ) $ 5,675 $ (26 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 45,843 (992 ) 45,843 (992 ) Municipal bonds 4,968 (27 ) 4,331 (29 ) 9,299 (56 ) Total obligations of states and political subdivisions 4,968 (27 ) 50,174 (1,021 ) 55,142 (1,048 ) Residential mortgage-backed securities 3,445 (7 ) 674,804 (9,578 ) 678,249 (9,585 ) Trust preferred securities — — 29,957 (6,004 ) 29,957 (6,004 ) Corporate and other debt securities — — 4,908 (92 ) 4,908 (92 ) Total $ 8,413 $ (34 ) $ 765,518 $ (16,721 ) $ 773,931 $ (16,755 ) December 31, 2018 U.S. government agency securities $ — $ — $ 6,074 $ (135 ) $ 6,074 $ (135 ) Obligations of states and political subdivisions: Obligations of states and state agencies 16,098 (266 ) 138,437 (5,469 ) 154,535 (5,735 ) Municipal bonds 3,335 (37 ) 60,078 (1,324 ) 63,413 (1,361 ) Total obligations of states and political subdivisions 19,433 (303 ) 198,515 (6,793 ) 217,948 (7,096 ) Residential mortgage-backed securities 72,240 (852 ) 846,671 (33,516 ) 918,911 (34,368 ) Trust preferred securities — — 30,055 (5,923 ) 30,055 (5,923 ) Corporate and other debt securities 9,948 (52 ) 4,835 (165 ) 14,783 (217 ) Total $ 101,621 $ (1,207 ) $ 1,086,150 $ (46,532 ) $ 1,187,771 $ (47,739 ) |
Contractual Maturities of Debt Securities Held to Maturity | The contractual maturities of investments in debt securities held to maturity at June 30, 2019 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, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 30,122 $ 30,109 Due after one year through five years 237,783 243,951 Due after five years through ten years 242,178 253,387 Due after ten years 242,744 238,279 Residential mortgage-backed securities 1,415,409 1,419,066 Total investment securities held to maturity $ 2,168,236 $ 2,184,792 |
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, 2019 and December 31, 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) June 30, 2019 U.S. Treasury securities $ 50,963 $ — $ (222 ) $ 50,741 U.S. government agency securities 32,525 521 (18 ) 33,028 Obligations of states and political subdivisions: Obligations of states and state agencies 87,473 465 (222 ) 87,716 Municipal bonds 98,305 899 (223 ) 98,981 Total obligations of states and political subdivisions 185,778 1,364 (445 ) 186,697 Residential mortgage-backed securities 1,373,033 8,303 (8,357 ) 1,372,979 Corporate and other debt securities 35,416 489 — 35,905 Total investment securities available for sale $ 1,677,715 $ 10,677 $ (9,042 ) $ 1,679,350 December 31, 2018 U.S. Treasury securities $ 50,975 $ — $ (1,669 ) $ 49,306 U.S. government agency securities 36,844 71 (638 ) 36,277 Obligations of states and political subdivisions: Obligations of states and state agencies 100,777 18 (3,682 ) 97,113 Municipal bonds 101,207 209 (1,437 ) 99,979 Total obligations of states and political subdivisions 201,984 227 (5,119 ) 197,092 Residential mortgage-backed securities 1,469,059 1,484 (40,761 ) 1,429,782 Corporate and other debt securities 37,542 213 (668 ) 37,087 Total investment securities available for sale $ 1,796,404 $ 1,995 $ (48,855 ) $ 1,749,544 |
Age of Unrealized Losses and Fair Value of Related Securities Available for Sale | The age of unrealized losses and fair value of related securities available for sale at June 30, 2019 and December 31, 2018 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, 2019 U.S. Treasury securities $ — $ — $ 50,741 $ (222 ) $ 50,741 $ (222 ) U.S. government agency securities — — 2,488 (18 ) 2,488 (18 ) Obligations of states and political subdivisions: Obligations of states and state agencies — — 43,868 (222 ) 43,868 (222 ) Municipal bonds 1,986 (34 ) 20,335 (189 ) 22,321 (223 ) Total obligations of states and political subdivisions 1,986 (34 ) 64,203 (411 ) 66,189 (445 ) Residential mortgage-backed securities 220 (3 ) 703,691 (8,354 ) 703,911 (8,357 ) Total $ 2,206 $ (37 ) $ 821,123 $ (9,005 ) $ 823,329 $ (9,042 ) December 31, 2018 U.S. Treasury securities $ — $ — $ 49,306 $ (1,669 ) $ 49,306 $ (1,669 ) U.S. government agency securities 2,120 (20 ) 26,775 (618 ) 28,895 (638 ) Obligations of states and political subdivisions: Obligations of states and state agencies 17,560 (95 ) 75,718 (3,587 ) 93,278 (3,682 ) Municipal bonds 5,018 (106 ) 70,286 (1,331 ) 75,304 (1,437 ) Total obligations of states and political subdivisions 22,578 (201 ) 146,004 (4,918 ) 168,582 (5,119 ) Residential mortgage-backed securities 119,645 (668 ) 1,221,942 (40,093 ) 1,341,587 (40,761 ) Corporate and other debt securities 12,339 (161 ) 12,397 (507 ) 24,736 (668 ) Total $ 156,682 $ (1,050 ) $ 1,456,424 $ (47,805 ) $ 1,613,106 $ (48,855 ) |
Contractual Maturities of Debt Securities Available for Sale | The contractual maturities of debt securities available for sale at June 30, 2019 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, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 9,121 $ 9,117 Due after one year through five years 125,530 125,671 Due after five years through ten years 66,064 67,046 Due after ten years 103,967 104,537 Residential mortgage-backed securities 1,373,033 1,372,979 Total investment securities available for sale $ 1,677,715 $ 1,679,350 |
Loans (Tables)
Loans (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The detail of the loan portfolio as of June 30, 2019 and December 31, 2018 was as follows: June 30, 2019 December 31, 2018 Non-PCI Loans PCI Loans Total Non-PCI Loans PCI Loans Total (in thousands) Loans: Commercial and industrial $ 3,918,894 $ 696,871 $ 4,615,765 $ 3,590,375 $ 740,657 $ 4,331,032 Commercial real estate: Commercial real estate 10,470,127 2,327,890 12,798,017 9,912,309 2,494,966 12,407,275 Construction 1,288,417 240,551 1,528,968 1,122,348 365,784 1,488,132 Total commercial real estate loans 11,758,544 2,568,441 14,326,985 11,034,657 2,860,750 13,895,407 Residential mortgage 3,694,463 377,987 4,072,450 3,682,984 428,416 4,111,400 Consumer: Home equity 385,987 115,659 501,646 371,340 145,749 517,089 Automobile 1,362,143 323 1,362,466 1,319,206 365 1,319,571 Other consumer 910,174 12,676 922,850 846,821 14,149 860,970 Total consumer loans 2,658,304 128,658 2,786,962 2,537,367 160,263 2,697,630 Total loans $ 22,030,205 $ 3,771,957 $ 25,802,162 $ 20,845,383 $ 4,190,086 $ 25,035,469 |
Changes in Accretable Yield for PCI Loans | The following table presents changes in the accretable yield for PCI loans during the three and six months ended June 30, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Balance, beginning of period $ 890,771 $ 691,086 $ 875,958 $ 282,009 Acquisition — — — 474,208 Accretion (55,014 ) (60,536 ) (108,506 ) (125,667 ) Net increase in expected cash flows 18,130 — 86,435 — Balance, end of period $ 853,887 $ 630,550 $ 853,887 $ 630,550 |
Past Due, Non-Accrual and Current 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) by loan portfolio class at June 30, 2019 and December 31, 2018 : 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, 2019 Commercial and industrial $ 14,119 $ 4,135 $ 3,298 $ 76,216 $ 97,768 $ 3,821,126 $ 3,918,894 Commercial real estate: Commercial real estate 6,202 354 — 6,231 12,787 10,457,340 10,470,127 Construction — 1,342 — — 1,342 1,287,075 1,288,417 Total commercial real estate loans 6,202 1,696 — 6,231 14,129 11,744,415 11,758,544 Residential mortgage 19,131 3,635 1,054 12,069 35,889 3,658,574 3,694,463 Consumer loans: Home equity 673 82 — 1,630 2,385 383,602 385,987 Automobile 7,221 925 328 148 8,622 1,353,521 1,362,143 Other consumer 4,038 477 31 221 4,767 905,407 910,174 Total consumer loans 11,932 1,484 359 1,999 15,774 2,642,530 2,658,304 Total $ 51,384 $ 10,950 $ 4,711 $ 96,515 $ 163,560 $ 21,866,645 $ 22,030,205 December 31, 2018 Commercial and industrial $ 13,085 $ 3,768 $ 6,156 $ 70,096 $ 93,105 $ 3,497,270 $ 3,590,375 Commercial real estate: Commercial real estate 9,521 530 27 2,372 12,450 9,899,859 9,912,309 Construction 2,829 — — 356 3,185 1,119,163 1,122,348 Total commercial real estate loans 12,350 530 27 2,728 15,635 11,019,022 11,034,657 Residential mortgage 16,576 2,458 1,288 12,917 33,239 3,649,745 3,682,984 Consumer loans: Home equity 872 40 — 2,156 3,068 368,272 371,340 Automobile 7,973 1,299 308 80 9,660 1,309,546 1,319,206 Other consumer 895 47 33 419 1,394 845,427 846,821 Total consumer loans 9,740 1,386 341 2,655 14,122 2,523,245 2,537,367 Total $ 51,751 $ 8,142 $ 7,812 $ 88,396 $ 156,101 $ 20,689,282 $ 20,845,383 |
Impaired Loans by Loan Portfolio Class | The following table presents information about impaired loans by loan portfolio class at June 30, 2019 and December 31, 2018 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) June 30, 2019 Commercial and industrial $ 13,008 $ 90,018 $ 103,026 $ 115,602 $ 31,128 Commercial real estate: Commercial real estate 20,707 26,258 46,965 49,067 2,604 Construction 354 — 354 354 — Total commercial real estate loans 21,061 26,258 47,319 49,421 2,604 Residential mortgage 6,046 6,448 12,494 13,531 668 Consumer loans: Home equity 221 519 740 838 50 Total consumer loans 221 519 740 838 50 Total $ 40,336 $ 123,243 $ 163,579 $ 179,392 $ 34,450 December 31, 2018 Commercial and industrial $ 8,339 $ 89,513 $ 97,852 $ 104,007 $ 29,684 Commercial real estate: Commercial real estate 16,732 25,606 42,338 44,337 2,615 Construction 803 457 1,260 1,260 13 Total commercial real estate loans 17,535 26,063 43,598 45,597 2,628 Residential mortgage 7,826 6,078 13,904 14,948 600 Consumer loans: Home equity 125 1,146 1,271 1,366 113 Total consumer loans 125 1,146 1,271 1,366 113 Total $ 33,825 $ 122,800 $ 156,625 $ 165,918 $ 33,025 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following table presents, by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the three and six months ended June 30, 2019 and 2018 : Three Months Ended June 30, 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 105,633 $ 443 $ 87,674 $ 212 Commercial real estate: Commercial real estate 46,234 547 52,729 563 Construction 354 — 2,244 16 Total commercial real estate loans 46,588 547 54,973 579 Residential mortgage 12,254 95 12,914 185 Consumer loans: Home equity 747 10 1,794 33 Total consumer loans 747 10 1,794 33 Total $ 165,222 $ 1,095 $ 157,355 $ 1,009 Six Months Ended June 30, 2018 2019 2018 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 111,329 $ 1,014 $ 88,865 $ 926 Commercial real estate: Commercial real estate 45,515 1,266 54,104 1,179 Construction 587 — 2,230 39 Total commercial real estate loans 46,102 1,266 56,334 1,218 Residential mortgage 13,072 239 13,502 350 Consumer loans: Home equity 940 21 1,910 66 Total consumer loans 940 21 1,910 66 Total $ 171,443 $ 2,540 $ 160,611 $ 2,560 |
Pre-Modification and Post-Modification Outstanding Recorded Investments and Non-PCI Loans that Subsequently Defaulted | The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default ( 90 or more days past due) for the three and six months ended June 30, 2019 and 2018 were as follows: Three Months Ended June 30, 2019 2018 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 18 $ 12,322 4 $ 3,212 Commercial real estate 1 383 — — Total 19 $ 12,705 4 $ 3,212 Six Months Ended June 30, 2019 2018 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 18 $ 12,322 4 $ 3,212 Commercial real estate 1 383 — — Residential mortgage 2 215 — — Consumer 1 18 — — Total 22 $ 12,938 4 $ 3,212 The following table presents non-PCI loans by loan class modified as TDRs during the three and six months ended June 30, 2019 and 2018 . The pre-modification and post-modification outstanding recorded investments disclosed in the tables below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at June 30, 2019 and 2018 , respectively. Three Months Ended June 30, 2019 2018 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 17 $ 14,663 $ 14,187 11 $ 8,822 $ 8,575 Commercial real estate: Commercial real estate 1 3,067 3,067 5 3,975 3,971 Construction — — — 1 532 491 Total commercial real estate 1 3,067 3,067 6 4,507 4,462 Residential mortgage 1 155 155 2 393 389 Total 19 $ 17,885 $ 17,409 19 $ 13,722 $ 13,426 Six Months Ended June 30, 2019 2018 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 $ 38,216 $ 37,428 15 $ 10,554 $ 10,170 Commercial real estate: Commercial real estate 2 4,665 4,665 6 4,170 4,164 Construction — — — 2 564 503 Total commercial real estate 2 4,665 4,665 8 4,734 4,667 Residential mortgage 1 155 155 5 980 963 Consumer — — — 1 88 85 Total 56 $ 43,036 $ 42,248 29 $ 16,356 $ 15,885 |
Risk Category of Loans | The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) at June 30, 2019 and December 31, 2018 based on the most recent analysis performed: Credit exposure - by internally assigned risk rating Pass Special Mention Substandard Doubtful Total Non-PCI Loans (in thousands) June 30, 2019 Commercial and industrial $ 3,733,252 $ 40,412 $ 75,853 $ 69,377 $ 3,918,894 Commercial real estate 10,362,538 63,116 43,564 909 10,470,127 Construction 1,286,278 1,785 354 — 1,288,417 Total $ 15,382,068 $ 105,313 $ 119,771 $ 70,286 $ 15,677,438 December 31, 2018 Commercial and industrial $ 3,399,426 $ 31,996 $ 92,320 $ 66,633 $ 3,590,375 Commercial real estate 9,828,744 30,892 51,710 963 9,912,309 Construction 1,121,321 215 812 — 1,122,348 Total $ 14,349,491 $ 63,103 $ 144,842 $ 67,596 $ 14,625,032 |
Recorded Investment in Loan Classes Based on Payment Activity | The following table presents the recorded investment in those loan classes based on payment activity as of June 30, 2019 and December 31, 2018 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) June 30, 2019 Residential mortgage $ 3,682,394 $ 12,069 $ 3,694,463 Home equity 384,357 1,630 385,987 Automobile 1,361,995 148 1,362,143 Other consumer 909,953 221 910,174 Total $ 6,338,699 $ 14,068 $ 6,352,767 December 31, 2018 Residential mortgage $ 3,670,067 $ 12,917 $ 3,682,984 Home equity 369,184 2,156 371,340 Automobile 1,319,126 80 1,319,206 Other consumer 846,402 419 846,821 Total $ 6,204,779 $ 15,572 $ 6,220,351 June 30, 2019 and December 31, 2018 : Credit exposure - by payment activity Performing Loans Non-Performing Loans Total PCI Loans (in thousands) June 30, 2019 Commercial and industrial $ 668,887 $ 27,984 $ 696,871 Commercial real estate 2,309,294 18,596 2,327,890 Construction 239,926 625 240,551 Residential mortgage 372,531 5,456 377,987 Consumer 126,234 2,424 128,658 Total $ 3,716,872 $ 55,085 $ 3,771,957 December 31, 2018 Commercial and industrial $ 710,045 $ 30,612 $ 740,657 Commercial real estate 2,478,990 15,976 2,494,966 Construction 364,815 969 365,784 Residential mortgage 421,609 6,807 428,416 Consumer 158,502 1,761 160,263 Total $ 4,133,961 $ 56,125 $ 4,190,086 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses | The following table summarizes the allowance for credit losses at June 30, 2019 and December 31, 2018 : June 30, December 31, (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 155,105 $ 151,859 Allowance for unfunded letters of credit 2,974 4,436 Total allowance for credit losses $ 158,079 $ 156,295 |
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 2019 2018 2019 2018 (in thousands) Components of provision for credit losses: Provision for loan losses $ 3,706 $ 6,592 $ 11,562 $ 17,294 Provision for unfunded letters of credit (1,606 ) 550 (1,462 ) 796 Total provision for credit losses $ 2,100 $ 7,142 $ 10,100 $ 18,090 |
Summary of Activity in Allowance for Loan Losses | The following tables detail activity in the allowance for loan losses by portfolio segment for the three and six months ended June 30, 2019 and 2018 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 94,630 $ 47,762 $ 5,139 $ 6,850 $ 154,381 Loans charged-off (3,073 ) — — (1,752 ) (4,825 ) Charged-off loans recovered 1,195 22 9 617 1,843 Net (charge-offs) recoveries (1,878 ) 22 9 (1,135 ) (2,982 ) Provision for loan losses 1,632 1,194 71 809 3,706 Ending balance $ 94,384 $ 48,978 $ 5,219 $ 6,524 $ 155,105 Three Months Ended Allowance for loan losses: Beginning balance $ 66,546 $ 56,679 $ 4,100 $ 5,537 $ 132,862 Loans charged-off (642 ) (38 ) (99 ) (1,422 ) (2,201 ) Charged-off loans recovered 819 15 180 495 1,509 Net recoveries (charge-offs) 177 (23 ) 81 (927 ) (692 ) Provision for loan losses 7,534 (2,844 ) 443 1,459 6,592 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans charged-off (7,355 ) — (15 ) (3,780 ) (11,150 ) Charged-off loans recovered 1,678 43 10 1,103 2,834 Net (charge-offs) recoveries (5,677 ) 43 (5 ) (2,677 ) (8,316 ) Provision for loan losses 9,105 (715 ) 183 2,989 11,562 Ending balance $ 94,384 $ 48,978 $ 5,219 $ 6,524 $ 155,105 Six Months Ended Allowance for loan losses: Beginning balance $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans charged-off (773 ) (348 ) (167 ) (2,633 ) (3,921 ) Charged-off loans recovered 2,926 384 260 963 4,533 Net recoveries (charge-offs) 2,153 36 93 (1,670 ) 612 Provision for loan losses 14,872 (1,178 ) 926 2,674 17,294 Ending balance $ 74,257 $ 53,812 $ 4,624 $ 6,069 $ 138,762 |
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, 2019 and December 31, 2018 . Loans individually evaluated for impairment represent Valley's impaired loans. Loans acquired with discounts related to credit quality represent Valley's PCI loans. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) June 30, 2019 Allowance for loan losses: Individually evaluated for impairment $ 31,128 $ 2,604 $ 668 $ 50 $ 34,450 Collectively evaluated for impairment 63,256 46,374 4,551 6,474 120,655 Total $ 94,384 $ 48,978 $ 5,219 $ 6,524 $ 155,105 Loans: Individually evaluated for impairment $ 103,026 $ 47,319 $ 12,494 $ 740 $ 163,579 Collectively evaluated for impairment 3,815,868 11,711,225 3,681,969 2,657,564 21,866,626 Loans acquired with discounts related to credit quality 696,871 2,568,441 377,987 128,658 3,771,957 Total $ 4,615,765 $ 14,326,985 $ 4,072,450 $ 2,786,962 $ 25,802,162 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 29,684 $ 2,628 $ 600 $ 113 $ 33,025 Collectively evaluated for impairment 61,272 47,022 4,441 6,099 118,834 Total $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans: Individually evaluated for impairment $ 97,852 $ 43,598 $ 13,904 $ 1,271 $ 156,625 Collectively evaluated for impairment 3,492,523 10,991,059 3,669,080 2,536,096 20,688,758 Loans acquired with discounts related to credit quality 740,657 2,860,750 428,416 160,263 4,190,086 Total $ 4,331,032 $ 13,895,407 $ 4,111,400 $ 2,697,630 $ 25,035,469 |
Leases (Tables)
Leases (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Leases [Abstract] | |
ROU Assets and Lease Liabilities By Lease Type | The following table presents the components of ROU assets and lease liabilities by lease type at June 30, 2019 . June 30, 2019 (in thousands) ROU assets: Operating leases $ 282,329 Finance leases 1,019 Total $ 283,348 Lease liabilities: Operating leases $ 305,364 Finance leases 2,041 Total $ 307,405 |
Components of Lease, Supplemental Cash Flow and Supplemental Information | The following table presents the components by lease type, of total lease cost recognized in the consolidated statement of income for the three and six months ended June 30, 2019 : Three Months Ended Six Months Ended June 30, 2019 June 30, 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 73 $ 146 Interest on lease liabilities 49 101 Operating lease cost 8,949 15,923 Short-term lease cost 59 134 Variable lease cost 1,024 1,972 Sublease income (783 ) (1,686 ) Total lease cost (included in net occupancy and equipment expense) $ 9,371 $ 16,590 The following table presents supplemental cash flow information related to leases for the six months ended June 30, 2019 : Six Months Ended June 30, 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 16,896 Operating cash flows from finance leases 102 Financing cash flows from finance leases 240 The following table presents supplemental information related to leases at June 30, 2019 : June 30, 2019 Weighted-average remaining lease term Operating leases 13.08 years Finance leases 3.50 years Weighted-average discount rate Operating leases 3.72 % Finance leases 8.25 % |
Sales-type Leases | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 |
Direct Financing Leases | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 |
Finance Leases Maturity | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 |
Operating Lease Maturity | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of June 30, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2019 $ 63,085 $ 17,594 $ 341 2020 108,188 35,006 684 2021 91,950 34,169 684 2022 70,058 32,625 684 2023 47,744 29,222 — Thereafter 33,007 244,762 — Total lease payments 414,032 393,378 2,393 Less: present value discount (36,769 ) (88,014 ) (352 ) Total $ 377,263 $ 305,364 $ 2,041 |
Minimum Aggregate Lease Payments In Accordance With Topic 840 | The following table presents minimum aggregate lease payments in accordance with Topic 840 at June 30, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2018 $ 13,731 $ 1,092 $ 12,639 2019 27,640 2,124 25,516 2020 27,785 2,077 25,708 2021 26,955 2,009 24,946 2022 25,948 1,891 24,057 Thereafter 271,054 8,130 262,924 Total lease payments $ 393,113 $ 17,323 $ 375,790 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Other Intangible Assets | The following table summarizes other intangible assets as of June 30, 2019 and December 31, 2018 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) June 30, 2019 Loan servicing rights $ 89,732 $ (66,406 ) $ — $ 23,326 Core deposits 80,470 (34,640 ) — 45,830 Other 3,945 (2,516 ) — 1,429 Total other intangible assets $ 174,147 $ (103,562 ) $ — $ 70,585 December 31, 2018 Loan servicing rights $ 87,354 $ (63,161 ) $ (83 ) $ 24,110 Core deposits 80,470 (29,136 ) — 51,334 Other 3,945 (2,399 ) — 1,546 Total other intangible assets $ 171,769 $ (94,696 ) $ (83 ) $ 76,990 |
Estimated Future Amortization Expense | The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2019 through 2023 : Loan Servicing Rights Core Deposits Other (in thousands) 2019 $ 2,056 $ 5,457 $ 117 2020 3,603 9,607 220 2021 3,007 8,252 206 2022 2,513 6,898 191 2023 2,097 5,544 131 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 December 31, 2018 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 swaps $ — $ 2,159 $ 255,000 $ — $ 27 $ 332,000 Fair value hedge interest rate swaps — 337 7,411 — 347 7,536 Total derivatives designated as hedging instruments $ — $ 2,496 $ 262,411 $ — $ 374 $ 339,536 Derivatives not designated as hedging instruments: Interest rate swaps and embedded derivatives $ 139,893 $ 30,337 $ 3,469,497 $ 48,642 $ 22,533 $ 3,390,578 Mortgage banking derivatives 603 669 140,306 337 774 105,247 Total derivatives not designated as hedging instruments $ 140,496 $ 31,006 $ 3,609,803 $ 48,979 $ 23,307 $ 3,495,825 |
(Losses) Gains Related to Interest Rate Derivatives Designated as Hedges of Cash Flows | Gains (Losses) included in the consolidated statements of income and in other comprehensive income (loss), 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 2019 2018 2019 2018 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (383 ) $ (866 ) $ (673 ) $ (2,317 ) Amount of (loss) gain recognized in other comprehensive income (loss) (962 ) 637 (1,512 ) 3,388 |
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 2019 2018 2019 2018 (in thousands) Derivative - interest rate swaps: Interest income $ 49 $ 88 $ 73 $ 219 Hedged item - loans: Interest income $ (49 ) $ (88 ) $ (73 ) $ (219 ) |
Interest Rate Derivatives Designated as Hedges | The following table presents the hedged items related to interest rate derivatives designated as hedges of fair value and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at June 30, 2019 and December 31, 2018 . Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Asset Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset June 30, 2019 December 31, 2018 June 30, 2019 December 31, 2018 (in thousands) Loans $ 7,748 $ 7,882 $ 337 $ 346 |
Net Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments | The net gains (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 2019 2018 2019 2018 (in thousands) Non-designated hedge interest rate derivatives Other non-interest expense $ (347 ) $ 230 $ (757 ) $ 448 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Offsetting [Abstract] | |
Offsetting Assets | 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, 2019 and December 31, 2018 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2019 Assets: Interest rate swaps $ 139,893 $ — $ 139,893 $ (13,385 ) $ — $ 126,508 Liabilities: Interest rate swaps $ 32,833 $ — $ 32,833 $ (13,385 ) $ (15,211 ) (1) $ 4,237 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 182,833 $ — $ 182,833 $ (13,385 ) $ (165,211 ) $ 4,237 December 31, 2018 Assets: Interest rate swaps and caps $ 48,642 $ — $ 48,642 $ (1,214 ) $ — $ 47,428 Liabilities: Interest rate swaps and caps $ 22,907 $ — $ 22,907 $ (1,214 ) $ (1,852 ) (1) $ 19,841 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 172,907 $ — $ 172,907 $ (1,214 ) $ (151,852 ) $ 19,841 (1) Represents the amount of collateral posted with derivative counterparties that offsets net liability positions. (2) Represents the fair value of non-cash pledged investment securities. |
Offsetting Liabilities | 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, 2019 and December 31, 2018 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) June 30, 2019 Assets: Interest rate swaps $ 139,893 $ — $ 139,893 $ (13,385 ) $ — $ 126,508 Liabilities: Interest rate swaps $ 32,833 $ — $ 32,833 $ (13,385 ) $ (15,211 ) (1) $ 4,237 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 182,833 $ — $ 182,833 $ (13,385 ) $ (165,211 ) $ 4,237 December 31, 2018 Assets: Interest rate swaps and caps $ 48,642 $ — $ 48,642 $ (1,214 ) $ — $ 47,428 Liabilities: Interest rate swaps and caps $ 22,907 $ — $ 22,907 $ (1,214 ) $ (1,852 ) (1) $ 19,841 Repurchase agreements 150,000 — 150,000 — (150,000 ) (2) — Total $ 172,907 $ — $ 172,907 $ (1,214 ) $ (151,852 ) $ 19,841 (1) Represents the amount of collateral posted with derivative counterparties that offsets net liability positions. (2) Represents the fair value of non-cash pledged investment securities. |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
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, 2019 and December 31, 2018 : June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 27,738 $ 36,961 Other tax credit investments, net 58,215 68,052 Total tax credit investments, net $ 85,953 $ 105,013 Other Liabilities: Unfunded affordable housing tax credit commitments $ 2,696 $ 4,520 Unfunded other tax credit commitments 5,139 8,756 Total unfunded tax credit commitments $ 7,835 $ 13,276 |
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, 2019 and 2018 : Three Months Ended Six Months Ended 2019 2018 2019 2018 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,708 $ 1,429 $ 3,421 $ 3,250 Other tax credit investment credits and tax benefits 2,158 5,680 4,961 11,165 Total reduction in income tax expense $ 3,866 $ 7,109 $ 8,382 $ 14,415 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 593 $ (319 ) $ 1,266 $ 667 Affordable housing tax credit investment impairment losses 794 515 1,524 1,102 Other tax credit investment losses 2,509 1,253 3,496 1,790 Other tax credit investment impairment losses 967 3,021 5,750 6,185 Total amortization of tax credit investments recorded in non-interest expense $ 4,863 $ 4,470 $ 12,036 $ 9,744 |
Income Taxes (Tables)
Income Taxes (Tables) | 6 Months Ended |
Jun. 30, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of Valley’s gross unrecognized tax benefits at June 30, 2019 and 2018 are presented in the table below: Three Months Ended Six Months Ended 2019 2018 2019 2018 Beginning balance $ 12,100 $ 4,238 $ — $ 4,238 Additions based on tax positions related to current year 223 — 12,323 — Ending balance $ 12,323 $ 4,238 $ 12,323 $ 4,238 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Earnings Per Share Reconciliation | ||||
Net income available to common shareholders | $ 73,296 | $ 69,630 | $ 183,454 | $ 108,423 |
Basic weighted average number of common shares outstanding (in shares) | 331,748,552 | 331,318,381 | 331,675,313 | 331,024,531 |
Plus: Common stock equivalents (in shares) | 1,211,250 | 1,577,102 | 1,254,046 | 1,575,460 |
Diluted weighted average number of common shares outstanding (in shares) | 332,959,802 | 332,895,483 | 332,929,359 | 332,599,991 |
Earnings per common share: | ||||
Basic (usd per share) | $ 0.22 | $ 0.21 | $ 0.55 | $ 0.33 |
Diluted (usd per share) | $ 0.22 | $ 0.21 | $ 0.55 | $ 0.33 |
Anti-dilutive common stock options and warrants (in shares) | 482,000 | 494,000 | 2,900,000 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | $ 3,444,879 | $ 3,245,003 | $ 3,350,454 | $ 2,533,165 |
Other comprehensive (loss) income before reclassifications | 17,805 | 33,690 | ||
Amounts reclassified from other comprehensive (loss) income | 321 | 773 | 610 | 2,453 |
Total other comprehensive income (loss) | 18,126 | (5,021) | 34,300 | (22,578) |
Ending balance | 3,504,118 | 3,277,312 | 3,504,118 | 3,277,312 |
Unrealized Gains and Losses on Available for Sale (AFS) Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (17,266) | (33,559) | ||
Other comprehensive (loss) income before reclassifications | 18,488 | 34,755 | ||
Amounts reclassified from other comprehensive (loss) income | (8) | 18 | ||
Total other comprehensive income (loss) | 18,480 | 34,773 | ||
Ending balance | 1,214 | 1,214 | ||
Unrealized Gains and (Losses) on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (4,205) | (4,031) | ||
Other comprehensive (loss) income before reclassifications | (683) | (1,065) | ||
Amounts reclassified from other comprehensive (loss) income | 274 | 482 | ||
Total other comprehensive income (loss) | (409) | (583) | ||
Ending balance | (4,614) | (4,614) | ||
Defined Benefit Pension Plan | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (31,786) | (31,841) | ||
Other comprehensive (loss) income before reclassifications | 0 | 0 | ||
Amounts reclassified from other comprehensive (loss) income | 55 | 112 | 110 | 224 |
Total other comprehensive income (loss) | 55 | 110 | ||
Ending balance | (31,731) | (31,731) | ||
Total Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (53,257) | (64,103) | (69,431) | (46,005) |
Ending balance | $ (35,131) | $ (69,124) | $ (35,131) | $ (69,124) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassifications from AOCI (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2019 | Mar. 31, 2019 | Jun. 30, 2018 | Mar. 31, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Gains (losses) on securities transactions, net | $ 11 | $ (36) | $ (21) | $ (801) | ||
Tax effect | (27,532) | (18,961) | (84,728) | (32,145) | ||
Total net of tax | 76,468 | $ 113,330 | 72,802 | $ 41,965 | 189,798 | 114,767 |
Interest expense | (107,508) | (69,366) | (209,084) | (129,263) | ||
Total reclassifications, net of tax | (321) | (773) | (610) | (2,453) | ||
Unrealized gains (losses) on AFS securities before tax | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Total reclassifications, net of tax | 8 | (18) | ||||
Unrealized losses on derivatives (cash flow hedges) before tax | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Total reclassifications, net of tax | (274) | (482) | ||||
Defined Benefit Pension Plan | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Amortization of net loss | (78) | (157) | (156) | (314) | ||
Tax effect | 23 | 45 | 46 | 90 | ||
Total reclassifications, net of tax | (55) | (112) | (110) | (224) | ||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Interest expense | (383) | (866) | (673) | (2,317) | ||
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 | 11 | (52) | (21) | (795) | ||
Tax effect | (3) | 10 | 3 | 221 | ||
Total net of tax | 8 | (42) | (18) | (574) | ||
Reclassification Out of Accumulated Other Comprehensive Income (Loss) | Unrealized losses on derivatives (cash flow hedges) before tax | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Tax effect | 109 | 247 | 191 | 662 | ||
Total net of tax | (274) | (619) | (482) | (1,655) | ||
Interest expense | $ (383) | $ (866) | $ (673) | $ (2,317) |
New Authoritative Accounting _3
New Authoritative Accounting Guidance (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Jan. 01, 2019 | Dec. 31, 2018 |
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right of use assets | $ 283,348 | ||
Lease liabilities | $ 307,405 | $ 3,125 | |
ASU 2016-02 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Lease right of use assets | $ 216,000 | ||
Lease liabilities | 241,000 | ||
Cumulative effect adjustment to retained earnings | 4,414 | ||
ASU 2016-02 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | 4,414 | ||
ASU 2017-08 | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | (1,446) | ||
ASU 2017-08 | Retained Earnings | |||
New Accounting Pronouncements or Change in Accounting Principle [Line Items] | |||
Cumulative effect adjustment to retained earnings | $ (1,446) |
Fair Value Measurement of Ass_3
Fair Value Measurement of Assets and Liabilities - Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Investment securities | ||
Available for sale | $ 1,679,350 | $ 1,749,544 |
Non-recurring fair value measurements: | ||
Unpaid principal balances of loans held for sale | 35,600 | 34,600 |
U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 50,741 | 49,306 |
U.S. government agency securities | ||
Investment securities | ||
Available for sale | 33,028 | 36,277 |
Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 186,697 | 197,092 |
Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 1,372,979 | 1,429,782 |
Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 35,905 | 37,087 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 50,741 | 49,306 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 50,741 | 49,306 |
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 | 50,741 | 49,306 |
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 | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 0 | 0 |
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 | |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 1,627,929 | 1,700,238 |
Loans held for sale | 36,641 | 35,155 |
Other assets | 140,496 | 48,979 |
Total assets | 1,805,066 | 1,784,372 |
Liabilities | ||
Other liabilities | 33,502 | 23,681 |
Total liabilities | 33,502 | 23,681 |
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 | 33,028 | 36,277 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 186,017 | 197,092 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 1,372,979 | 1,429,782 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 35,905 | 37,087 |
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 | |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 680 | 0 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 680 | 0 |
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 | 680 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 0 | 0 |
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) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent impaired loans | 43,707 | 45,245 |
Loan servicing rights | 273 | |
Foreclosed assets | 5,587 | 5,673 |
Total | 49,294 | 51,191 |
Fair Value | Recurring fair value measurements | ||
Investment securities | ||
Available for sale | 1,679,350 | 1,749,544 |
Loans held for sale | 36,641 | 35,155 |
Other assets | 140,496 | 48,979 |
Total assets | 1,856,487 | 1,833,678 |
Liabilities | ||
Other liabilities | 33,502 | 23,681 |
Total liabilities | 33,502 | 23,681 |
Fair Value | Recurring fair value measurements | U.S. Treasury securities | ||
Investment securities | ||
Available for sale | 50,741 | 49,306 |
Fair Value | Recurring fair value measurements | U.S. government agency securities | ||
Investment securities | ||
Available for sale | 33,028 | 36,277 |
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Investment securities | ||
Available for sale | 186,697 | 197,092 |
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities | ||
Investment securities | ||
Available for sale | 1,372,979 | 1,429,782 |
Fair Value | Recurring fair value measurements | Corporate and other debt securities | ||
Investment securities | ||
Available for sale | 35,905 | 37,087 |
Fair Value | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent impaired loans | 43,707 | 45,245 |
Loan servicing rights | 273 | |
Foreclosed assets | 5,587 | 5,673 |
Total | $ 49,294 | $ 51,191 |
Fair Value Measurement of Ass_4
Fair Value Measurement of Assets and Liabilities - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Fair Value Disclosures [Abstract] | ||||
Impaired collateral dependent loans, charge-offs | $ 938,000 | $ 0 | $ 938,000 | $ 0 |
Collateral dependent impaired loans, recorded investment | 73,400,000 | 73,400,000 | ||
Specific valuation allowance allocations | 29,700,000 | 29,700,000 | ||
Reported net carrying amount of impaired loans | 43,700,000 | $ 43,700,000 | ||
Valuation of loan servicing rights, prepayment rate | 11.00% | |||
Valuation of loan servicing rights, discount rate | 9.50% | |||
Net recoveries of net impairment charges | 107,000 | 90,000 | $ 84,000 | 317,000 |
Foreclosed assets measured at fair value upon initial recognition | 5,600,000 | |||
Foreclosed asset charge-offs | 653,000 | 649,000 | 1,400,000 | 1,200,000 |
Loss due to re-measurement of repossessed assets | $ 0 | $ 0 | $ 160,000 | $ 145,000 |
Fair Value Measurement of Ass_5
Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing deposits with banks | $ 178,905 | $ 177,088 |
Total investment securities held to maturity | 2,184,792 | 2,034,943 |
Accrued interest receivable | 99,065 | 95,296 |
Deposits with stated maturities | 7,338,188 | 7,063,984 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 2,168,236 | 2,068,246 |
Carrying Amount | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and due from banks | 276,291 | 251,541 |
Interest bearing deposits with banks | 178,905 | 177,088 |
Accrued interest receivable | 99,065 | 95,296 |
Federal Reserve Bank and Federal Home Loan Bank stock | 260,490 | 232,080 |
Deposits without stated maturities | 17,435,741 | 17,388,990 |
Short-term borrowings | 2,387,784 | 2,118,914 |
Accrued interest payable | 36,031 | 25,762 |
Carrying Amount | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 138,436 | 138,517 |
Carrying Amount | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits with stated maturities | 7,338,188 | 7,063,984 |
Long-term borrowings | 1,800,182 | 1,654,268 |
Junior subordinated debentures issued to capital trusts | 55,544 | 55,370 |
Carrying Amount | Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 8,049 | 8,721 |
Carrying Amount | Level 2 | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 536,778 | 585,656 |
Carrying Amount | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 1,415,409 | 1,266,770 |
Carrying Amount | Level 2 | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 37,314 | 37,332 |
Carrying Amount | Level 2 | Corporate and other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 32,250 | 31,250 |
Carrying Amount | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans | 25,647,057 | 24,883,610 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 2,184,792 | 2,034,943 |
Fair Value | Level 1 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Cash and due from banks | 276,291 | 251,541 |
Interest bearing deposits with banks | 178,905 | 177,088 |
Accrued interest receivable | 99,065 | 95,296 |
Federal Reserve Bank and Federal Home Loan Bank stock | 260,490 | 232,080 |
Deposits without stated maturities | 17,435,741 | 17,388,990 |
Short-term borrowings | 2,388,299 | 2,091,892 |
Accrued interest payable | 36,031 | 25,762 |
Fair Value | Level 1 | U.S. Treasury securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 144,655 | 142,049 |
Fair Value | Level 2 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Deposits with stated maturities | 7,338,945 | 7,005,573 |
Long-term borrowings | 1,840,862 | 1,751,194 |
Junior subordinated debentures issued to capital trusts | 57,040 | 55,692 |
Fair Value | Level 2 | U.S. government agency securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 8,092 | 8,641 |
Fair Value | Level 2 | Obligations of states and political subdivisions | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 549,050 | 586,033 |
Fair Value | Level 2 | Residential mortgage-backed securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 1,419,066 | 1,235,605 |
Fair Value | Level 2 | Trust preferred securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 31,372 | 31,486 |
Fair Value | Level 2 | Corporate and other debt securities | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total investment securities held to maturity | 32,557 | 31,129 |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Net loans | $ 25,207,831 | $ 24,068,755 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Schedule of Held-to-maturity Securities | ||
Amortized Cost | $ 2,168,236 | $ 2,068,246 |
Gross Unrealized Gains | 33,311 | 14,436 |
Gross Unrealized Losses | (16,755) | (47,739) |
Fair Value | 2,184,792 | 2,034,943 |
U.S. Treasury securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 138,436 | 138,517 |
Gross Unrealized Gains | 6,219 | 3,532 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 144,655 | 142,049 |
U.S. government agency securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 8,049 | 8,721 |
Gross Unrealized Gains | 69 | 55 |
Gross Unrealized Losses | (26) | (135) |
Fair Value | 8,092 | 8,641 |
Obligations of states and state agencies | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 314,878 | 341,702 |
Gross Unrealized Gains | 7,680 | 4,332 |
Gross Unrealized Losses | (992) | (5,735) |
Fair Value | 321,566 | 340,299 |
Municipal bonds | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 221,900 | 243,954 |
Gross Unrealized Gains | 5,640 | 3,141 |
Gross Unrealized Losses | (56) | (1,361) |
Fair Value | 227,484 | 245,734 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 536,778 | 585,656 |
Gross Unrealized Gains | 13,320 | 7,473 |
Gross Unrealized Losses | (1,048) | (7,096) |
Fair Value | 549,050 | 586,033 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 1,415,409 | 1,266,770 |
Gross Unrealized Gains | 13,242 | 3,203 |
Gross Unrealized Losses | (9,585) | (34,368) |
Fair Value | 1,419,066 | 1,235,605 |
Trust preferred securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 37,314 | 37,332 |
Gross Unrealized Gains | 62 | 77 |
Gross Unrealized Losses | (6,004) | (5,923) |
Fair Value | 31,372 | 31,486 |
Corporate and other debt securities | ||
Schedule of Held-to-maturity Securities | ||
Amortized Cost | 32,250 | 31,250 |
Gross Unrealized Gains | 399 | 96 |
Gross Unrealized Losses | (92) | (217) |
Fair Value | $ 32,557 | $ 31,129 |
Investment Securities - Unreali
Investment Securities - Unrealized Losses and Fair Value of Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than Twelve Months | $ 8,413 | $ 101,621 |
More than Twelve Months, Fair Value | 765,518 | 1,086,150 |
Total | 773,931 | 1,187,771 |
Unrealized Losses | ||
Less than Twelve Months | (34) | (1,207) |
More than Twelve Months | (16,721) | (46,532) |
Total | (16,755) | (47,739) |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months, Fair Value | 5,675 | 6,074 |
Total | 5,675 | 6,074 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (26) | (135) |
Total | (26) | (135) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 0 | 16,098 |
More than Twelve Months, Fair Value | 45,843 | 138,437 |
Total | 45,843 | 154,535 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (266) |
More than Twelve Months | (992) | (5,469) |
Total | (992) | (5,735) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 4,968 | 3,335 |
More than Twelve Months, Fair Value | 4,331 | 60,078 |
Total | 9,299 | 63,413 |
Unrealized Losses | ||
Less than Twelve Months | (27) | (37) |
More than Twelve Months | (29) | (1,324) |
Total | (56) | (1,361) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 4,968 | 19,433 |
More than Twelve Months, Fair Value | 50,174 | 198,515 |
Total | 55,142 | 217,948 |
Unrealized Losses | ||
Less than Twelve Months | (27) | (303) |
More than Twelve Months | (1,021) | (6,793) |
Total | (1,048) | (7,096) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 3,445 | 72,240 |
More than Twelve Months, Fair Value | 674,804 | 846,671 |
Total | 678,249 | 918,911 |
Unrealized Losses | ||
Less than Twelve Months | (7) | (852) |
More than Twelve Months | (9,578) | (33,516) |
Total | (9,585) | (34,368) |
Trust preferred securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months, Fair Value | 29,957 | 30,055 |
Total | 29,957 | 30,055 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (6,004) | (5,923) |
Total | (6,004) | (5,923) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 9,948 |
More than Twelve Months, Fair Value | 4,908 | 4,835 |
Total | 4,908 | 14,783 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (52) |
More than Twelve Months | (92) | (165) |
Total | $ (92) | $ (217) |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)security | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($)security | |
Investment Securities [Line Items] | |||||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position (in security) | security | 127 | 127 | 378 | ||
Fair value of investments held to maturity pledged as collateral | $ 1,300,000,000 | $ 1,300,000,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years | 6 years 7 months 6 days | ||||
Number of security positions in the securities available for sale portfolio in an unrealized loss position (in security) | security | 294 | 294 | 545 | ||
Fair value of securities available for sale pledged as collateral | $ 1,100,000,000 | $ 1,100,000,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years | 6 years 8 months 12 days | ||||
Amortized cost | 1,677,715,000 | $ 1,677,715,000 | $ 1,796,404,000 | ||
Other than temporary impairment losses recognized in earnings | 2,900,000 | $ 0 | $ 0 | ||
Fair Value | 1,679,350,000 | 1,679,350,000 | 1,749,544,000 | ||
Gross unrealized losses | $ 9,042,000 | $ 9,042,000 | $ 48,855,000 | ||
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 | |||
US States and Political Subdivisions Debt Securities, Special Revenue Bonds, Impaired Securities | |||||
Investment Securities [Line Items] | |||||
Amortized cost | $ 680,000 | $ 680,000 | |||
Fair Value | 680,000 | 680,000 | |||
US States and Political Subdivisions Debt Securities, Special Revenue Bonds | |||||
Investment Securities [Line Items] | |||||
Amortized cost | 306,500,000 | 306,500,000 | |||
Fair Value | 308,500,000 | 308,500,000 | |||
Gross unrealized losses | $ 1,400,000 | $ 1,400,000 |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year | $ 30,122 | |
Due after one year through five years | 237,783 | |
Due after five years through ten years | 242,178 | |
Due after ten years | 242,744 | |
Residential mortgage-backed securities | 1,415,409 | |
Amortized Cost | 2,168,236 | $ 2,068,246 |
Fair Value | ||
Due in one year | 30,109 | |
Due after one year through five years | 243,951 | |
Due after five years through ten years | 253,387 | |
Due after ten years | 238,279 | |
Residential mortgage-backed securities | 1,419,066 | |
Total investment securities held to maturity | $ 2,184,792 | $ 2,034,943 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost, Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,677,715 | $ 1,796,404 |
Gross Unrealized Gains | 10,677 | 1,995 |
Gross Unrealized Losses | (9,042) | (48,855) |
Fair Value | 1,679,350 | 1,749,544 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 50,963 | 50,975 |
Gross Unrealized Gains | 0 | 0 |
Gross Unrealized Losses | (222) | (1,669) |
Fair Value | 50,741 | 49,306 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 32,525 | 36,844 |
Gross Unrealized Gains | 521 | 71 |
Gross Unrealized Losses | (18) | (638) |
Fair Value | 33,028 | 36,277 |
Obligations of states and state agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 87,473 | 100,777 |
Gross Unrealized Gains | 465 | 18 |
Gross Unrealized Losses | (222) | (3,682) |
Fair Value | 87,716 | 97,113 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 98,305 | 101,207 |
Gross Unrealized Gains | 899 | 209 |
Gross Unrealized Losses | (223) | (1,437) |
Fair Value | 98,981 | 99,979 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 185,778 | 201,984 |
Gross Unrealized Gains | 1,364 | 227 |
Gross Unrealized Losses | (445) | (5,119) |
Fair Value | 186,697 | 197,092 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 1,373,033 | 1,469,059 |
Gross Unrealized Gains | 8,303 | 1,484 |
Gross Unrealized Losses | (8,357) | (40,761) |
Fair Value | 1,372,979 | 1,429,782 |
Corporate and other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 35,416 | 37,542 |
Gross Unrealized Gains | 489 | 213 |
Gross Unrealized Losses | 0 | (668) |
Fair Value | $ 35,905 | $ 37,087 |
Investment Securities - Unrea_2
Investment Securities - Unrealized Losses and Fair Value Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than Twelve Months | $ 2,206 | $ 156,682 |
More than Twelve Months | 821,123 | 1,456,424 |
Total | 823,329 | 1,613,106 |
Unrealized Losses | ||
Less than Twelve Months | (37) | (1,050) |
More than Twelve Months | (9,005) | (47,805) |
Total | (9,042) | (48,855) |
U.S. Treasury securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | 50,741 | 49,306 |
Total | 50,741 | 49,306 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (222) | (1,669) |
Total | (222) | (1,669) |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 2,120 |
More than Twelve Months | 2,488 | 26,775 |
Total | 2,488 | 28,895 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (20) |
More than Twelve Months | (18) | (618) |
Total | (18) | (638) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 0 | 17,560 |
More than Twelve Months | 43,868 | 75,718 |
Total | 43,868 | 93,278 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (95) |
More than Twelve Months | (222) | (3,587) |
Total | (222) | (3,682) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 1,986 | 5,018 |
More than Twelve Months | 20,335 | 70,286 |
Total | 22,321 | 75,304 |
Unrealized Losses | ||
Less than Twelve Months | (34) | (106) |
More than Twelve Months | (189) | (1,331) |
Total | (223) | (1,437) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 1,986 | 22,578 |
More than Twelve Months | 64,203 | 146,004 |
Total | 66,189 | 168,582 |
Unrealized Losses | ||
Less than Twelve Months | (34) | (201) |
More than Twelve Months | (411) | (4,918) |
Total | (445) | (5,119) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 220 | 119,645 |
More than Twelve Months | 703,691 | 1,221,942 |
Total | 703,911 | 1,341,587 |
Unrealized Losses | ||
Less than Twelve Months | (3) | (668) |
More than Twelve Months | (8,354) | (40,093) |
Total | $ (8,357) | (40,761) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 12,339 | |
More than Twelve Months | 12,397 | |
Total | 24,736 | |
Unrealized Losses | ||
Less than Twelve Months | (161) | |
More than Twelve Months | (507) | |
Total | $ (668) |
Investment Securities - Contr_2
Investment Securities - Contractual Maturities of Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year | $ 9,121 | |
Due after one year through five years | 125,530 | |
Due after five years through ten years | 66,064 | |
Due after ten years | 103,967 | |
Residential mortgage-backed securities | 1,373,033 | |
Amortized Cost | 1,677,715 | $ 1,796,404 |
Fair Value | ||
Due in one year | 9,117 | |
Due after one year through five years | 125,671 | |
Due after five years through ten years | 67,046 | |
Due after ten years | 104,537 | |
Residential mortgage-backed securities | 1,372,979 | |
Total investment securities available for sale | $ 1,679,350 | $ 1,749,544 |
Loans - Non-Covered and Covered
Loans - Non-Covered and Covered PCI Loans and Non-PCI Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 25,802,162 | $ 25,035,469 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 4,615,765 | 4,331,032 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 14,326,985 | 13,895,407 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 12,798,017 | 12,407,275 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,528,968 | 1,488,132 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 4,072,450 | 4,111,400 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,786,962 | 2,697,630 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 501,646 | 517,089 |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,362,466 | 1,319,571 |
Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 922,850 | 860,970 |
Non-PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 22,030,205 | 20,845,383 |
Non-PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,918,894 | 3,590,375 |
Non-PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 11,758,544 | 11,034,657 |
Non-PCI Loans | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 10,470,127 | 9,912,309 |
Non-PCI Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,288,417 | 1,122,348 |
Non-PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,694,463 | 3,682,984 |
Non-PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,658,304 | 2,537,367 |
Non-PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 385,987 | 371,340 |
Non-PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 1,362,143 | 1,319,206 |
Non-PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 910,174 | 846,821 |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 3,771,957 | 4,190,086 |
PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 696,871 | 740,657 |
PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,568,441 | 2,860,750 |
PCI Loans | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 2,327,890 | 2,494,966 |
PCI Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 240,551 | 365,784 |
PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 377,987 | 428,416 |
PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 128,658 | 160,263 |
PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 115,659 | 145,749 |
PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | 323 | 365 |
PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable | ||
Loans | $ 12,676 | $ 14,149 |
Loans - Additional Information
Loans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Accounts, Notes, Loans and Financing Receivable | |||||
Non-covered loans net of unearned premiums and deferred loan fees | $ 19,600,000 | $ 19,600,000 | $ 21,500,000 | ||
Outstanding balances for PCI loans | 4,000,000,000 | 4,000,000,000 | 4,400,000,000 | ||
Transfer of loans to loans held for sale | 216,211,000 | $ 263,324,000 | |||
Sales of loans | 0 | 0 | |||
Impaired loans | 250,000 | $ 250,000 | |||
Number of consecutive months for performing restructured loans to be put on accrual status | 6 months | ||||
TDRs not reported as non-accrual loans | 74,400,000 | $ 74,400,000 | 77,200,000 | ||
Non-performing TDRs | 67,800,000 | 67,800,000 | 55,000,000 | ||
Specific reserves for loan losses | 11,700,000 | 5,300,000 | |||
Loan charge-offs related to loans modified as TDRs | $ 1,100,000 | $ 0 | $ 2,000,000 | $ 0 | |
Days past due to place on payment default | 90 days | 90 days | 90 days | 90 days | |
Other real estate owned | $ 7,200,000 | $ 7,200,000 | 9,500,000 | ||
Residential real estate properties | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Other real estate owned | 1,200,000 | 1,200,000 | 852,000 | ||
In formal foreclosure proceedings | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Residential mortgage and consumer loans secured by residential real estate properties | $ 1,700,000 | 1,700,000 | $ 1,800,000 | ||
Residential mortgage | |||||
Accounts, Notes, Loans and Financing Receivable | |||||
Transfer of loans to loans held for sale | $ 216,200,000 | $ 263,300,000 |
Loans - Changes in Accretable Y
Loans - Changes in Accretable Yield (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||||
Balance, beginning of period | $ 890,771 | $ 691,086 | $ 875,958 | $ 282,009 |
Acquisition | 0 | 0 | 0 | 474,208 |
Accretion | (55,014) | (60,536) | (108,506) | (125,667) |
Net increase in expected cash flows | 18,130 | 0 | 86,435 | 0 |
Balance, end of period | $ 853,887 | $ 630,550 | $ 853,887 | $ 630,550 |
Loans - Past Due, Non-Accrual a
Loans - Past Due, Non-Accrual and Current Non-Covered Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | $ 96,515 | $ 88,396 |
Total Past Due Loans | 163,560 | 156,101 |
Current Non-PCI Loans | 21,866,645 | 20,689,282 |
Total Non-PCI Loans | 22,030,205 | 20,845,383 |
30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 51,384 | 51,751 |
60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 10,950 | 8,142 |
Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,711 | 7,812 |
Commercial and industrial | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 76,216 | 70,096 |
Total Past Due Loans | 97,768 | 93,105 |
Current Non-PCI Loans | 3,821,126 | 3,497,270 |
Total Non-PCI Loans | 3,918,894 | 3,590,375 |
Commercial and industrial | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 14,119 | 13,085 |
Commercial and industrial | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,135 | 3,768 |
Commercial and industrial | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 3,298 | 6,156 |
Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 6,231 | 2,728 |
Total Past Due Loans | 14,129 | 15,635 |
Current Non-PCI Loans | 11,744,415 | 11,019,022 |
Total Non-PCI Loans | 11,758,544 | 11,034,657 |
Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,202 | 12,350 |
Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,696 | 530 |
Commercial real estate | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 27 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 6,231 | 2,372 |
Total Past Due Loans | 12,787 | 12,450 |
Current Non-PCI Loans | 10,457,340 | 9,899,859 |
Total Non-PCI Loans | 10,470,127 | 9,912,309 |
Commercial real estate | Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 6,202 | 9,521 |
Commercial real estate | Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 354 | 530 |
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 | 0 | 27 |
Commercial real estate | Construction | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 0 | 356 |
Total Past Due Loans | 1,342 | 3,185 |
Current Non-PCI Loans | 1,287,075 | 1,119,163 |
Total Non-PCI Loans | 1,288,417 | 1,122,348 |
Commercial real estate | Construction | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 2,829 |
Commercial real estate | Construction | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,342 | 0 |
Commercial real estate | Construction | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 12,069 | 12,917 |
Total Past Due Loans | 35,889 | 33,239 |
Current Non-PCI Loans | 3,658,574 | 3,649,745 |
Total Non-PCI Loans | 3,694,463 | 3,682,984 |
Residential mortgage | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 19,131 | 16,576 |
Residential mortgage | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 3,635 | 2,458 |
Residential mortgage | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,054 | 1,288 |
Consumer loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 1,999 | 2,655 |
Total Past Due Loans | 15,774 | 14,122 |
Current Non-PCI Loans | 2,642,530 | 2,523,245 |
Total Non-PCI Loans | 2,658,304 | 2,537,367 |
Consumer loans | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 11,932 | 9,740 |
Consumer loans | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 1,484 | 1,386 |
Consumer loans | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 359 | 341 |
Consumer loans | Home equity | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 1,630 | 2,156 |
Total Past Due Loans | 2,385 | 3,068 |
Current Non-PCI Loans | 383,602 | 368,272 |
Total Non-PCI Loans | 385,987 | 371,340 |
Consumer loans | Home equity | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 673 | 872 |
Consumer loans | Home equity | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 82 | 40 |
Consumer loans | Home equity | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Consumer loans | Automobile | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 148 | 80 |
Total Past Due Loans | 8,622 | 9,660 |
Current Non-PCI Loans | 1,353,521 | 1,309,546 |
Total Non-PCI Loans | 1,362,143 | 1,319,206 |
Consumer loans | Automobile | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 7,221 | 7,973 |
Consumer loans | Automobile | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 925 | 1,299 |
Consumer loans | Automobile | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 328 | 308 |
Consumer loans | Other consumer | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Non-Accrual Loans | 221 | 419 |
Total Past Due Loans | 4,767 | 1,394 |
Current Non-PCI Loans | 905,407 | 845,427 |
Total Non-PCI Loans | 910,174 | 846,821 |
Consumer loans | Other consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 4,038 | 895 |
Consumer loans | Other consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | 477 | 47 |
Consumer loans | Other consumer | Accruing Loans 90 Days or More Past Due | ||
Financing Receivable, Recorded Investment, Past Due [Line Items] | ||
Past Due Loans | $ 31 | $ 33 |
Loans - Impaired Loans (Details
Loans - Impaired Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | $ 40,336 | $ 33,825 |
Recorded Investment With Related Allowance | 123,243 | 122,800 |
Total Recorded Investment | 163,579 | 156,625 |
Unpaid Contractual Principal Balance | 179,392 | 165,918 |
Related Allowance | 34,450 | 33,025 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 13,008 | 8,339 |
Recorded Investment With Related Allowance | 90,018 | 89,513 |
Total Recorded Investment | 103,026 | 97,852 |
Unpaid Contractual Principal Balance | 115,602 | 104,007 |
Related Allowance | 31,128 | 29,684 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 21,061 | 17,535 |
Recorded Investment With Related Allowance | 26,258 | 26,063 |
Total Recorded Investment | 47,319 | 43,598 |
Unpaid Contractual Principal Balance | 49,421 | 45,597 |
Related Allowance | 2,604 | 2,628 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 20,707 | 16,732 |
Recorded Investment With Related Allowance | 26,258 | 25,606 |
Total Recorded Investment | 46,965 | 42,338 |
Unpaid Contractual Principal Balance | 49,067 | 44,337 |
Related Allowance | 2,604 | 2,615 |
Commercial real estate | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 354 | 803 |
Recorded Investment With Related Allowance | 0 | 457 |
Total Recorded Investment | 354 | 1,260 |
Unpaid Contractual Principal Balance | 354 | 1,260 |
Related Allowance | 0 | 13 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 6,046 | 7,826 |
Recorded Investment With Related Allowance | 6,448 | 6,078 |
Total Recorded Investment | 12,494 | 13,904 |
Unpaid Contractual Principal Balance | 13,531 | 14,948 |
Related Allowance | 668 | 600 |
Consumer loans | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 221 | 125 |
Recorded Investment With Related Allowance | 519 | 1,146 |
Total Recorded Investment | 740 | 1,271 |
Unpaid Contractual Principal Balance | 838 | 1,366 |
Related Allowance | 50 | 113 |
Consumer loans | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 221 | 125 |
Recorded Investment With Related Allowance | 519 | 1,146 |
Total Recorded Investment | 740 | 1,271 |
Unpaid Contractual Principal Balance | 838 | 1,366 |
Related Allowance | $ 50 | $ 113 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment and Interest Income on Impaired Loans (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | $ 165,222 | $ 157,355 | $ 171,443 | $ 160,611 |
Interest Income Recognized | 1,095 | 1,009 | 2,540 | 2,560 |
Commercial and industrial | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 105,633 | 87,674 | 111,329 | 88,865 |
Interest Income Recognized | 443 | 212 | 1,014 | 926 |
Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 46,588 | 54,973 | 46,102 | 56,334 |
Interest Income Recognized | 547 | 579 | 1,266 | 1,218 |
Commercial real estate | Commercial real estate | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 46,234 | 52,729 | 45,515 | 54,104 |
Interest Income Recognized | 547 | 563 | 1,266 | 1,179 |
Commercial real estate | Construction | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 354 | 2,244 | 587 | 2,230 |
Interest Income Recognized | 0 | 16 | 0 | 39 |
Residential mortgage | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 12,254 | 12,914 | 13,072 | 13,502 |
Interest Income Recognized | 95 | 185 | 239 | 350 |
Consumer loans | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 747 | 1,794 | 940 | 1,910 |
Interest Income Recognized | 10 | 33 | 21 | 66 |
Consumer loans | Home equity | ||||
Accounts, Notes, Loans and Financing Receivable | ||||
Average Recorded Investment | 747 | 1,794 | 940 | 1,910 |
Interest Income Recognized | $ 10 | $ 33 | $ 21 | $ 66 |
Loans - Pre-Modification and Po
Loans - Pre-Modification and Post-Modification (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | Jun. 30, 2019USD ($)contract | Jun. 30, 2018USD ($)contract | |
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 19 | 19 | 56 | 29 |
Pre-Modification Outstanding Recorded Investment | $ 17,885 | $ 13,722 | $ 43,036 | $ 16,356 |
Post-Modification Outstanding Recorded Investment | $ 17,409 | $ 13,426 | $ 42,248 | $ 15,885 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 19 | 4 | 22 | 4 |
Recorded Investment | $ 12,705 | $ 3,212 | $ 12,938 | $ 3,212 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 17 | 11 | 53 | 15 |
Pre-Modification Outstanding Recorded Investment | $ 14,663 | $ 8,822 | $ 38,216 | $ 10,554 |
Post-Modification Outstanding Recorded Investment | $ 14,187 | $ 8,575 | $ 37,428 | $ 10,170 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 18 | 4 | 18 | 4 |
Recorded Investment | $ 12,322 | $ 3,212 | $ 12,322 | $ 3,212 |
Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 1 | 6 | 2 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 3,067 | $ 4,507 | $ 4,665 | $ 4,734 |
Post-Modification Outstanding Recorded Investment | $ 3,067 | $ 4,462 | $ 4,665 | $ 4,667 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 1 | 0 | 1 | 0 |
Recorded Investment | $ 383 | $ 0 | $ 383 | $ 0 |
Commercial real estate | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 1 | 5 | 2 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 3,067 | $ 3,975 | $ 4,665 | $ 4,170 |
Post-Modification Outstanding Recorded Investment | $ 3,067 | $ 3,971 | $ 4,665 | $ 4,164 |
Commercial real estate | Construction | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 0 | 1 | 0 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 532 | $ 0 | $ 564 |
Post-Modification Outstanding Recorded Investment | $ 0 | $ 491 | $ 0 | $ 503 |
Residential mortgage | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 1 | 2 | 1 | 5 |
Pre-Modification Outstanding Recorded Investment | $ 155 | $ 393 | $ 155 | $ 980 |
Post-Modification Outstanding Recorded Investment | $ 155 | $ 389 | $ 155 | $ 963 |
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 2 | 0 | ||
Recorded Investment | $ 215 | $ 0 | ||
Consumer | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled restructurings (in contract) | contract | 0 | 1 | ||
Pre-Modification Outstanding Recorded Investment | $ 0 | $ 88 | ||
Post-Modification Outstanding Recorded Investment | $ 0 | $ 85 | ||
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract | 1 | 0 | ||
Recorded Investment | $ 18 | $ 0 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans (Details) - Non-PCI Loans - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | $ 15,677,438 | $ 14,625,032 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 3,918,894 | 3,590,375 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 10,470,127 | 9,912,309 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 1,288,417 | 1,122,348 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 15,382,068 | 14,349,491 |
Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 3,733,252 | 3,399,426 |
Pass | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 10,362,538 | 9,828,744 |
Pass | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 1,286,278 | 1,121,321 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 105,313 | 63,103 |
Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 40,412 | 31,996 |
Special Mention | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 63,116 | 30,892 |
Special Mention | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 1,785 | 215 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 119,771 | 144,842 |
Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 75,853 | 92,320 |
Substandard | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 43,564 | 51,710 |
Substandard | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 354 | 812 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 70,286 | 67,596 |
Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 69,377 | 66,633 |
Doubtful | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable | ||
Credit exposure - by internally assigned risk rating | 909 | 963 |
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 (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 6,352,767 | $ 6,220,351 |
Non-PCI Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,694,463 | 3,682,984 |
Non-PCI Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 385,987 | 371,340 |
Non-PCI Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,362,143 | 1,319,206 |
Non-PCI Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 910,174 | 846,821 |
Non-PCI Loans | Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,338,699 | 6,204,779 |
Non-PCI Loans | Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,682,394 | 3,670,067 |
Non-PCI Loans | Performing Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 384,357 | 369,184 |
Non-PCI Loans | Performing Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,361,995 | 1,319,126 |
Non-PCI Loans | Performing Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 909,953 | 846,402 |
Non-PCI Loans | Non-Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 14,068 | 15,572 |
Non-PCI Loans | Non-Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,069 | 12,917 |
Non-PCI Loans | Non-Performing Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,630 | 2,156 |
Non-PCI Loans | Non-Performing Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 148 | 80 |
Non-PCI Loans | Non-Performing Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 221 | 419 |
PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,771,957 | 4,190,086 |
PCI Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 377,987 | 428,416 |
PCI Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 128,658 | 160,263 |
PCI Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 696,871 | 740,657 |
PCI Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,327,890 | 2,494,966 |
PCI Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 240,551 | 365,784 |
PCI Loans | Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,716,872 | 4,133,961 |
PCI Loans | Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 372,531 | 421,609 |
PCI Loans | Performing Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 126,234 | 158,502 |
PCI Loans | Performing Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 668,887 | 710,045 |
PCI Loans | Performing Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,309,294 | 2,478,990 |
PCI Loans | Performing Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 239,926 | 364,815 |
PCI Loans | Non-Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 55,085 | 56,125 |
PCI Loans | Non-Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,456 | 6,807 |
PCI Loans | Non-Performing Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 2,424 | 1,761 |
PCI Loans | Non-Performing Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 27,984 | 30,612 |
PCI Loans | Non-Performing Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 18,596 | 15,976 |
PCI Loans | Non-Performing Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 625 | $ 969 |
Allowance for Credit Losses - A
Allowance for Credit Losses - Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | ||||||
Allowance for loan losses | $ 155,105 | $ 154,381 | $ 151,859 | $ 138,762 | $ 132,862 | $ 120,856 |
Allowance for unfunded letters of credit | 2,974 | 4,436 | ||||
Total allowance for credit losses | $ 158,079 | $ 156,295 |
Allowance for Credit Losses - P
Allowance for Credit Losses - Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Receivables [Abstract] | ||||
Provision for loan losses | $ 3,706 | $ 6,592 | $ 11,562 | $ 17,294 |
Provision for unfunded letters of credit | (1,606) | 550 | (1,462) | 796 |
Total provision for credit losses | $ 2,100 | $ 7,142 | $ 10,100 | $ 18,090 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | $ 154,381 | $ 132,862 | $ 151,859 | $ 120,856 |
Loans charged-off | (4,825) | (2,201) | (11,150) | (3,921) |
Charged-off loans recovered | 1,843 | 1,509 | 2,834 | 4,533 |
Net (charge-offs) recoveries | (2,982) | (692) | (8,316) | 612 |
Provision for loan losses | 3,706 | 6,592 | 11,562 | 17,294 |
Ending balance | 155,105 | 138,762 | 155,105 | 138,762 |
Commercial and Industrial | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 94,630 | 66,546 | 90,956 | 57,232 |
Loans charged-off | (3,073) | (642) | (7,355) | (773) |
Charged-off loans recovered | 1,195 | 819 | 1,678 | 2,926 |
Net (charge-offs) recoveries | (1,878) | 177 | (5,677) | 2,153 |
Provision for loan losses | 1,632 | 7,534 | 9,105 | 14,872 |
Ending balance | 94,384 | 74,257 | 94,384 | 74,257 |
Commercial Real Estate | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 47,762 | 56,679 | 49,650 | 54,954 |
Loans charged-off | 0 | (38) | 0 | (348) |
Charged-off loans recovered | 22 | 15 | 43 | 384 |
Net (charge-offs) recoveries | 22 | (23) | 43 | 36 |
Provision for loan losses | 1,194 | (2,844) | (715) | (1,178) |
Ending balance | 48,978 | 53,812 | 48,978 | 53,812 |
Residential Mortgage | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 5,139 | 4,100 | 5,041 | 3,605 |
Loans charged-off | 0 | (99) | (15) | (167) |
Charged-off loans recovered | 9 | 180 | 10 | 260 |
Net (charge-offs) recoveries | 9 | 81 | (5) | 93 |
Provision for loan losses | 71 | 443 | 183 | 926 |
Ending balance | 5,219 | 4,624 | 5,219 | 4,624 |
Consumer | ||||
Financing Receivable, Allowance for Credit Losses [Roll Forward] | ||||
Beginning balance | 6,850 | 5,537 | 6,212 | 5,065 |
Loans charged-off | (1,752) | (1,422) | (3,780) | (2,633) |
Charged-off loans recovered | 617 | 495 | 1,103 | 963 |
Net (charge-offs) recoveries | (1,135) | (927) | (2,677) | (1,670) |
Provision for loan losses | 809 | 1,459 | 2,989 | 2,674 |
Ending balance | $ 6,524 | $ 6,069 | $ 6,524 | $ 6,069 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Allocation of Allowance for Loan Losses and Related Loans by Segment (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2017 |
Allowance for loan losses: | ||||||
Individually evaluated for impairment | $ 34,450 | $ 33,025 | ||||
Collectively evaluated for impairment | 120,655 | 118,834 | ||||
Total | 155,105 | $ 154,381 | 151,859 | $ 138,762 | $ 132,862 | $ 120,856 |
Individually evaluated for impairment | 163,579 | 156,625 | ||||
Collectively evaluated for impairment | 21,866,626 | 20,688,758 | ||||
Total | 25,802,162 | 25,035,469 | ||||
Loans acquired with discounts related to credit quality | ||||||
Allowance for loan losses: | ||||||
Total | 3,771,957 | 4,190,086 | ||||
Commercial and Industrial | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 31,128 | 29,684 | ||||
Collectively evaluated for impairment | 63,256 | 61,272 | ||||
Total | 94,384 | 94,630 | 90,956 | 74,257 | 66,546 | 57,232 |
Individually evaluated for impairment | 103,026 | 97,852 | ||||
Collectively evaluated for impairment | 3,815,868 | 3,492,523 | ||||
Total | 4,615,765 | 4,331,032 | ||||
Commercial and Industrial | Loans acquired with discounts related to credit quality | ||||||
Allowance for loan losses: | ||||||
Total | 696,871 | 740,657 | ||||
Commercial Real Estate | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 2,604 | 2,628 | ||||
Collectively evaluated for impairment | 46,374 | 47,022 | ||||
Total | 48,978 | 47,762 | 49,650 | 53,812 | 56,679 | 54,954 |
Individually evaluated for impairment | 47,319 | 43,598 | ||||
Collectively evaluated for impairment | 11,711,225 | 10,991,059 | ||||
Total | 14,326,985 | 13,895,407 | ||||
Commercial Real Estate | Loans acquired with discounts related to credit quality | ||||||
Allowance for loan losses: | ||||||
Total | 2,568,441 | 2,860,750 | ||||
Residential Mortgage | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 668 | 600 | ||||
Collectively evaluated for impairment | 4,551 | 4,441 | ||||
Total | 5,219 | 5,139 | 5,041 | 4,624 | 4,100 | 3,605 |
Individually evaluated for impairment | 12,494 | 13,904 | ||||
Collectively evaluated for impairment | 3,681,969 | 3,669,080 | ||||
Total | 4,072,450 | 4,111,400 | ||||
Residential Mortgage | Loans acquired with discounts related to credit quality | ||||||
Allowance for loan losses: | ||||||
Total | 377,987 | 428,416 | ||||
Consumer | ||||||
Allowance for loan losses: | ||||||
Individually evaluated for impairment | 50 | 113 | ||||
Collectively evaluated for impairment | 6,474 | 6,099 | ||||
Total | 6,524 | $ 6,850 | 6,212 | $ 6,069 | $ 5,537 | $ 5,065 |
Individually evaluated for impairment | 740 | 1,271 | ||||
Collectively evaluated for impairment | 2,657,564 | 2,536,096 | ||||
Total | 2,786,962 | 2,697,630 | ||||
Consumer | Loans acquired with discounts related to credit quality | ||||||
Allowance for loan losses: | ||||||
Total | $ 128,658 | $ 160,263 |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($)property | Jun. 30, 2019USD ($)branchcorporate_location | Mar. 31, 2019USD ($)property | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)branchcorporate_location | Jun. 30, 2018USD ($) | Dec. 31, 2019USD ($) | |
Sale Leaseback Transaction [Line Items] | |||||||
Sales-type and direct financing leases total net investment | $ 377,263 | $ 377,263 | |||||
Sales-type and direct financing leases receivables | 1,100 | 1,100 | |||||
Sales-type and direct financing leases unguaranteed residuals | 376,200 | 376,200 | |||||
Lease income | 4,600 | $ 3,500 | 8,900 | $ 7,200 | |||
Operating leases, ROU assets | 282,329 | 282,329 | |||||
Operating leases, liabilities | 305,364 | 305,364 | |||||
Expected lease costs | $ 8,949 | $ 15,923 | |||||
Lease costs | 8,200 | 16,400 | |||||
Sublease income | $ 874 | $ 1,800 | |||||
Sale leaseback transaction, March 2019 | |||||||
Sale Leaseback Transaction [Line Items] | |||||||
Sale-leaseback, number of properties | property | 26 | 26 | |||||
Sale-leaseback, number of branches | branch | 25 | 25 | |||||
Sale-leaseback, number of corporate offices | corporate_location | 1 | 1 | |||||
Sale-leaseback sale price | $ 100,500 | ||||||
Pre-tax net gain sale-leaseback | $ 78,500 | ||||||
Operating leases, ROU assets | 78,400 | 78,400 | |||||
Operating leases, liabilities | $ 78,400 | $ 78,400 | |||||
Operating lease, term of contract | 12 years | 12 years | |||||
Sale leaseback transaction, March 2019 | Scenario, forecast | |||||||
Sale Leaseback Transaction [Line Items] | |||||||
Expected lease costs | $ 7,900 |
Leases - Components of ROU Asse
Leases - Components of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating leases, ROU assets | $ 282,329 | |
Finance leases, ROU assets | 1,019 | |
Total ROU assets | 283,348 | |
Operating leases, liabilities | 305,364 | |
Finance leases, liabilities | 2,041 | |
Lease liabilities | $ 307,405 | $ 3,125 |
Leases - Components of Total Le
Leases - Components of Total Lease Cost (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended |
Jun. 30, 2019 | Jun. 30, 2019 | |
Leases [Abstract] | ||
Amortization of ROU assets | $ 73 | $ 146 |
Interest on lease liabilities | 49 | 101 |
Operating lease cost | 8,949 | 15,923 |
Short-term lease cost | 59 | 134 |
Variable lease cost | 1,024 | 1,972 |
Sublease income | (783) | (1,686) |
Total lease cost (included in net occupancy and equipment expense) | $ 9,371 | $ 16,590 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 16,896 |
Operating cash flows from finance leases | 102 |
Financing cash flows from finance leases | $ 240 |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) | Jun. 30, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, operating lease | 13 years 29 days |
Weighted-average remaining lease term, finance lease | 3 years 6 months |
Weighted-average discount rate, operating lease | 3.72% |
Weighted-average discount rate, finance lease | 8.25% |
Leases - Maturity Analysis of L
Leases - Maturity Analysis of Lessor and Lessee Arrangements (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Sales-type and Direct Financing Leases, Lease Receivable, Fiscal Year Maturity [Abstract] | |
2019 | $ 63,085 |
2020 | 108,188 |
2021 | 91,950 |
2022 | 70,058 |
2023 | 47,744 |
Thereafter | 33,007 |
Total lease payments | 414,032 |
Less: present value discount | (36,769) |
Total | 377,263 |
Operating Lease Liabilities, Payments Due [Abstract] | |
2019 | 17,594 |
2020 | 35,006 |
2021 | 34,169 |
2022 | 32,625 |
2023 | 29,222 |
Thereafter | 244,762 |
Total lease payments | 393,378 |
Less: present value discount | (88,014) |
Total | 305,364 |
Finance Lease Liabilities, Payments, Due [Abstract] | |
2019 | 341 |
2020 | 684 |
2021 | 684 |
2022 | 684 |
2023 | 0 |
Thereafter | 0 |
Total lease payments | 2,393 |
Less: present value discount | (352) |
Total | $ 2,041 |
Leases - Leases under ASC 840 (
Leases - Leases under ASC 840 (Details) $ in Thousands | Jun. 30, 2018USD ($) |
Leases [Abstract] | |
Gross Rents, 2018 | $ 13,731 |
Gross Rents, 2019 | 27,640 |
Gross Rents, 2020 | 27,785 |
Gross Rents, 2021 | 26,955 |
Gross Rents, 2022 | 25,948 |
Gross Rents, Thereafter | 271,054 |
Gross Rents, Total Lease Payments | 393,113 |
Sublease Income, 2018 | 1,092 |
Sublease Income, 2019 | 2,124 |
Sublease Income, 2020 | 2,077 |
Sublease Income, 2021 | 2,009 |
Sublease Income, 2022 | 1,891 |
Sublease Income, Thereafter | 8,130 |
Sublease Income, Total Lease Payments | 17,323 |
Net Rents, 2018 | 12,639 |
Net Rents, 2019 | 25,516 |
Net Rents, 2020 | 25,708 |
Net Rents, 2021 | 24,946 |
Net Rents, 2022 | 24,057 |
Net Rents, Thereafter | 262,924 |
Net Rents, Total Lease Payments | $ 375,790 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill | $ 1,084,665,000 | $ 1,084,665,000 | $ 1,084,665,000 | ||
Goodwill impairment | 0 | $ 0 | 0 | $ 0 | |
Amortization of other intangible assets | 4,170,000 | 4,617,000 | $ 8,481,000 | 8,910,000 | |
Core Deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average amortization period, years | 8 years 2 months 12 days | ||||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average amortization period, years | 7 years 7 months 6 days | ||||
Core Deposits and Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of core deposits and other intangibles | $ 0 | $ 0 | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 174,147 | $ 171,769 |
Accumulated Amortization | (103,562) | (94,696) |
Valuation Allowance | 0 | (83) |
Net Intangible Assets | 70,585 | 76,990 |
Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 89,732 | 87,354 |
Accumulated Amortization | (66,406) | (63,161) |
Valuation Allowance | 0 | (83) |
Net Intangible Assets | 23,326 | 24,110 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 80,470 | 80,470 |
Accumulated Amortization | (34,640) | (29,136) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | 45,830 | 51,334 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 3,945 | 3,945 |
Accumulated Amortization | (2,516) | (2,399) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | $ 1,429 | $ 1,546 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2019USD ($) |
Loan Servicing Rights | |
Finite-Lived Intangible Assets [Line Items] | |
2019 | $ 2,056 |
2020 | 3,603 |
2021 | 3,007 |
2022 | 2,513 |
2023 | 2,097 |
Core Deposits | |
Finite-Lived Intangible Assets [Line Items] | |
2019 | 5,457 |
2020 | 9,607 |
2021 | 8,252 |
2022 | 6,898 |
2023 | 5,544 |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
2019 | 117 |
2020 | 220 |
2021 | 206 |
2022 | 191 |
2023 | $ 131 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019USD ($)shares | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)employee_stock_plan$ / sharesshares | Jun. 30, 2018USD ($)$ / sharesshares | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of active employee stock plans | employee_stock_plan | 1 | |||
Number of shares available for grant (in shares) | 4,300,000 | 4,300,000 | ||
Stock-based compensation expense (in USD) | $ | $ 4.2 | $ 4.2 | $ 8.3 | $ 12.2 |
Stock-based compensation amortization expense unrecognized (in USD) | $ | $ 21.9 | $ 21.9 | ||
Average remaining vesting period (in years) | 2 years 1 month 24 days | |||
Restricted Stock | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted during the period (in shares) | 0 | 1,200,000 | ||
Award vesting period (in years) | 3 years | |||
Award vesting rights as a percentage | 33.33% | |||
Average grant date fair value (usd per share) | $ / shares | $ 11.86 | |||
Restricted Stock Units | ||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | ||||
Number of shares granted during the period (in shares) | 532,000 | 446,000 | ||
Award vesting period (in years) | 3 years | |||
Average grant date fair value (usd per share) | $ / shares | $ 10.43 | $ 12.35 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Millions | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2019USD ($)swap | Jun. 30, 2018USD ($) | Jun. 30, 2019USD ($)swap | Jun. 30, 2018USD ($) | Dec. 31, 2018USD ($) | |
Derivative [Line Items] | |||||
Number of credit swaps | swap | 20 | 20 | |||
Derivative instrument not designated as hedging instruments, liability | $ 10.4 | $ 10.4 | |||
Aggregate fair value of net liability position | 17.2 | 17.2 | |||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Accumulated net after-tax losses related to effective cash flow hedges | 4.6 | 4.6 | $ 4 | ||
Estimated amount of interest rate derivatives to be reclassified to interest expense | 2.6 | ||||
Fair value hedge | Noninterest Income | Interest rate swaps | |||||
Derivative [Line Items] | |||||
Fee income related to derivative interest rate swaps executed with commercial loan customers | 5.4 | $ 4.4 | 9.5 | $ 7.7 | |
Derivatives not designated as hedging instruments | |||||
Derivative [Line Items] | |||||
Aggregate notional amount of derivative asset | $ 127.3 | $ 127.3 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | $ 0 | $ 0 |
Other Liabilities | 32,833 | 22,907 |
Derivatives designated as hedging instruments | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Other Liabilities | 2,496 | 374 |
Notional Amount | 262,411 | 339,536 |
Derivatives designated as hedging instruments | Cash flow hedge interest rate swaps | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Other Liabilities | 2,159 | 27 |
Notional Amount | 255,000 | 332,000 |
Derivatives designated as hedging instruments | Fair value hedge interest rate swaps | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Other Liabilities | 337 | 347 |
Notional Amount | 7,411 | 7,536 |
Derivatives not designated as hedging instruments | ||
Derivative [Line Items] | ||
Other Assets | 140,496 | 48,979 |
Other Liabilities | 31,006 | 23,307 |
Notional Amount | 3,609,803 | 3,495,825 |
Derivatives not designated as hedging instruments | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 139,893 | 48,642 |
Other Liabilities | 30,337 | 22,533 |
Notional Amount | 3,469,497 | 3,390,578 |
Derivatives not designated as hedging instruments | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Other Assets | 603 | 337 |
Other Liabilities | 669 | 774 |
Notional Amount | $ 140,306 | $ 105,247 |
Derivative Instruments and He_5
Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Cash Flow Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
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 | $ (107,508) | $ (69,366) | $ (209,084) | $ (129,263) |
Amount of (loss) gain recognized in other comprehensive income (loss) | (962) | 637 | (1,512) | 3,388 |
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 | $ (383) | $ (866) | $ (673) | $ (2,317) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Gains (Losses) on Interest Rate Derivatives Designated as Fair Value Hedges (Details) - Fair value hedge - Interest income - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Interest rate swaps | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gain (loss) related to derivative interest rate swaps | $ 49 | $ 88 | $ 73 | $ 219 |
Loans | Derivatives designated as hedging instruments | ||||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gain (loss) related to hedged loans | $ (49) | $ (88) | $ (73) | $ (219) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Hedges (Details) - Fair value hedge - Derivatives designated as hedging instruments - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Asset | $ 7,748 | $ 7,882 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | $ 337 | $ 346 |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - (Losses) Gains Related to Derivatives Not Designated as Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Non-designated hedge interest rate derivatives | ||||
Other non-interest expense | $ (347) | $ 230 | $ (757) | $ 448 |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Offsetting Liabilities | ||
Gross Amounts Recognized | $ 182,833 | $ 172,907 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 182,833 | 172,907 |
Gross Amounts Not Offset, Financial Instruments | (13,385) | (1,214) |
Gross Amounts Not Offset, Cash Collateral | (165,211) | (151,852) |
Net Amount | 4,237 | 19,841 |
Repurchase agreements | ||
Offsetting Repurchase Agreement Liabilities | ||
Gross Amounts Recognized | 150,000 | 150,000 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 150,000 | 150,000 |
Gross Amounts Not Offset, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset, Cash Collateral | (150,000) | (150,000) |
Net Amount | 0 | 0 |
Interest rate swaps | ||
Offsetting Assets | ||
Gross Amounts Recognized | 139,893 | 48,642 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 139,893 | 48,642 |
Gross Amounts Not Offset, Financial Instruments | (13,385) | (1,214) |
Gross Amounts Not Offset, Cash Collateral | 0 | 0 |
Net Amount | 126,508 | 47,428 |
Offsetting Liabilities | ||
Gross Amounts Recognized | 32,833 | 22,907 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 32,833 | 22,907 |
Gross Amounts Not Offset, Financial Instruments | (13,385) | (1,214) |
Gross Amounts Not Offset, Cash Collateral | (15,211) | (1,852) |
Net Amount | $ 4,237 | $ 19,841 |
Tax Credit Investments - Balanc
Tax Credit Investments - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2019 | Dec. 31, 2018 |
Other Assets: | ||
Other tax credit investments, net | $ 68,100 | |
Other Assets | ||
Other Assets: | ||
Affordable housing tax credit investments, net | $ 27,738 | 36,961 |
Other tax credit investments, net | 58,215 | 68,052 |
Total tax credit investments, net | 85,953 | 105,013 |
Other Liabilities | ||
Other Liabilities: | ||
Unfunded affordable housing tax credit commitments | 2,696 | 4,520 |
Unfunded other tax credit commitments | 5,139 | 8,756 |
Total unfunded tax credit commitments | $ 7,835 | $ 13,276 |
Tax Credit Investments - Income
Tax Credit Investments - Income Statement Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Components of Income Tax Expense: | ||||
Affordable housing tax credits and other tax benefits | $ 1,708 | $ 1,429 | $ 3,421 | $ 3,250 |
Other tax credit investment credits and tax benefits | 2,158 | 5,680 | 4,961 | 11,165 |
Total reduction in income tax expense | 3,866 | 7,109 | 8,382 | 14,415 |
Non-Interest Expenses | ||||
Amortization of Tax Credit Investments: | ||||
Affordable housing tax credit investment losses | 593 | (319) | 1,266 | 667 |
Affordable housing tax credit investment impairment losses | 794 | 515 | 1,524 | 1,102 |
Other tax credit investment losses | 2,509 | 1,253 | 3,496 | 1,790 |
Other tax credit investment impairment losses | 967 | 3,021 | 5,750 | 6,185 |
Total amortization of tax credit investments recorded in non-interest expense | $ 4,863 | $ 4,470 | $ 12,036 | $ 9,744 |
Tax Credit Investments - Narrat
Tax Credit Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | 36 Months Ended |
Mar. 31, 2019USD ($)fund | Dec. 31, 2018USD ($)fund | Dec. 31, 2015fund | |
Income Tax Disclosure [Abstract] | |||
Number of federal renewable energy tax credit funds | fund | 3 | 3 | 3 |
Federal renewable energy tax credit investments, net | $ 2,400 | ||
Federal renewable energy tax credit investments, net, amount per fund | 800 | ||
Other tax credit investments, net | $ 68,100 | ||
Other than temporary impairment, other tax credit investments | $ 2,400 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | 12 Months Ended | 36 Months Ended | |
Jun. 30, 2019USD ($)solar_generator_unit | Mar. 31, 2019fund | Jun. 30, 2019USD ($)solar_generator_unit | Dec. 31, 2018USD ($)fund | Dec. 31, 2015USD ($)fundtax_opinion | |
Income Tax Disclosure [Abstract] | |||||
Number of federal renewable energy tax credit funds | fund | 3 | 3 | 3 | ||
Number of solar generator units | solar_generator_unit | 512 | 512 | |||
Federal tax credit benefit | $ 22,800 | ||||
Number of tax opinions | tax_opinion | 2 | ||||
Tax credit recognized and measured for each tax position (as a percent) | 100.00% | ||||
Percentage of solar generator units positively identified (over) | 93.00% | ||||
Increase to the provision for income taxes | $ 223 | $ 12,300 | |||
Estimated loss on the related tax positions | 29,400 | ||||
Uncertain tax position, accrued interest | $ 2,100 | $ 2,100 | $ 1,800 |
Income Taxes Income Taxes - Sum
Income Taxes Income Taxes - Summary of Reconciliation of Gross Unrecognized Tax Benefits (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2019 | Jun. 30, 2018 | Jun. 30, 2019 | Jun. 30, 2018 | |
Reconciliation of Gross Unrecognized Tax Benefits | ||||
Beginning balance | $ 12,100 | $ 4,238 | $ 0 | $ 4,238 |
Additions based on tax positions related to current year | 223 | 0 | 12,323 | 0 |
Ending balance | $ 12,323 | $ 4,238 | $ 12,323 | $ 4,238 |
Uncategorized Items - vly-63020
Label | Element | Value |
Accounting Standards Update 2016-01 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 0 |
Accounting Standards Update 2016-01 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (480,000) |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 480,000 |
Accounting Standards Update 2016-16 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (17,611,000) |
Accounting Standards Update 2016-16 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (17,611,000) |
Accounting Standards Update 2017-02 [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 0 |
Accounting Standards Update 2017-02 [Member] | AOCI Attributable to Parent [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | (61,000) |
Accounting Standards Update 2017-02 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 61,000 |