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Investment Securities (Tables)
 3 Months Ended
Mar. 31, 2014
Investments, Debt and Equity Securities [Abstract]  
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Held to Maturity
The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at March 31, 2014 and December 31, 2013 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
March 31, 2014
 
 
 
 
 
 
 
U.S. Treasury securities
$
139,227

 
$
7,669

 
$
—

 
$
146,896

U.S. government agency securities
14,454

 
47

 
(13
)
 
14,488

Obligations of states and political subdivisions:
 
 
 
 
 
 
—

Obligations of states and state agencies
199,190

 
4,912

 
(2,694
)
 
201,408

Municipal bonds
332,741

 
8,204

 
(2,695
)
 
338,250

Total obligations of states and political subdivisions
531,931

 
13,116

 
(5,389
)
 
539,658

Residential mortgage-backed securities
971,361

 
14,908

 
(20,219
)
 
966,050

Trust preferred securities
98,450

 
189

 
(12,204
)
 
86,435

Corporate and other debt securities
57,673

 
4,874

 
(25
)
 
62,522

Total investment securities held to maturity
$
1,813,096

 
$
40,803

 
$
(37,850
)
 
$
1,816,049

December 31, 2013
 
 
 
 
 
 
 
U.S. Treasury securities
$
139,255

 
$
5,567

 
$
(515
)
 
$
144,307

U.S. government agency securities
4,427

 
—

 
(62
)
 
4,365

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
192,653

 
1,944

 
(5,473
)
 
189,124

Municipal bonds
353,233

 
6,053

 
(5,259
)
 
354,027

Total obligations of states and political subdivisions
545,886

 
7,997

 
(10,732
)
 
543,151

Residential mortgage-backed securities
886,043

 
12,609

 
(27,631
)
 
871,021

Trust preferred securities
103,458

 
363

 
(12,332
)
 
91,489

Corporate and other debt securities
52,668

 
4,426

 
—

 
57,094

Total investment securities held to maturity
$
1,731,737

 
$
30,962

 
$
(51,272
)
 
$
1,711,427
Age of Unrealized Losses and Fair Value of Related Securities Held to Maturity
The age of unrealized losses and fair value of related securities held to maturity at March 31, 2014 and December 31, 2013 were as follows: 
 
Less than
Twelve Months
 
More than
Twelve Months
 
Total
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
Fair Value
 
Unrealized
Losses
 
(in thousands)
March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
U.S. government agency securities
$
3,778

 
$
(13
)
 
$
—

 
$
—

 
$
3,778

 
$
(13
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
61,791

 
(2,092
)
 
9,968

 
(602
)
 
71,759

 
(2,694
)
Municipal bonds
56,409

 
(2,410
)
 
6,789

 
(285
)
 
63,198

 
(2,695
)
Total obligations of states and political subdivisions
118,200

 
(4,502
)
 
16,757

 
(887
)
 
134,957

 
(5,389
)
Residential mortgage-backed securities
498,052

 
(19,333
)
 
13,356

 
(886
)
 
511,408

 
(20,219
)
Trust preferred securities
9,783

 
(217
)
 
56,578

 
(11,987
)
 
66,361

 
(12,204
)
Corporate and other debt securities
5,475

 
(25
)
 
—

 
—

 
5,475

 
(25
)
Total
$
635,288

 
$
(24,090
)
 
$
86,691

 
$
(13,760
)
 
$
721,979

 
$
(37,850
)
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
64,537

 
$
(515
)
 
$
—

 
$
—

 
$
64,537

 
$
(515
)
U.S. government agency securities
4,365

 
(62
)
 
—

 
—

 
4,365

 
(62
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
80,612

 
(5,473
)
 
—

 
—

 
80,612

 
(5,473
)
Municipal bonds
85,988

 
(5,154
)
 
1,326

 
(105
)
 
87,314

 
(5,259
)
Total obligations of states and political subdivisions
166,600

 
(10,627
)
 
1,326

 
(105
)
 
167,926

 
(10,732
)
Residential mortgage-backed securities
465,400

 
(27,631
)
 
—

 
—

 
465,400

 
(27,631
)
Trust preferred securities
9,750

 
(250
)
 
56,480

 
(12,082
)
 
66,230

 
(12,332
)
Total
$
710,652

 
$
(39,085
)
 
$
57,806

 
$
(12,187
)
 
$
768,458

 
$
(51,272
)
Contractual Maturities of Debt Securities Held to Maturity
The contractual maturities of investments in debt securities held to maturity at March 31, 2014 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.  
 
March 31, 2014
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
102,621

 
$
102,674

Due after one year through five years
47,620

 
52,243

Due after five years through ten years
324,602

 
337,343

Due after ten years
366,892

 
357,739

Residential mortgage-backed securities
971,361

 
966,050

Total investment securities held to maturity
$
1,813,096

 
$
1,816,049

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.
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Available for Sale
The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at March 31, 2014 and December 31, 2013 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
March 31, 2014
 
 
 
 
 
 
 
U.S. Treasury securities
$
99,833

 
$
—

 
$
(10,962
)
 
$
88,871

U.S. government agency securities
47,118

 
866

 
(453
)
 
47,531

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
11,338

 
—

 
(516
)
 
10,822

Municipal bonds
27,664

 
99

 
(761
)
 
27,002

Total obligations of states and political subdivisions
39,002

 
99

 
(1,277
)
 
37,824

Residential mortgage-backed securities
506,034

 
3,835

 
(14,265
)
 
495,604

Trust preferred securities*
23,298

 
198

 
(3,890
)
 
19,606

Corporate and other debt securities
83,464

 
1,893

 
(1,267
)
 
84,090

Equity securities
22,573

 
1,635

 
(1,151
)
 
23,057

Total investment securities available for sale
$
821,322

 
$
8,526

 
$
(33,265
)
 
$
796,583

December 31, 2013
 
 
 
 
 
 
 
U.S. Treasury securities
$
99,835

 
$
—

 
$
(15,170
)
 
$
84,665

U.S. government agency securities
48,407

 
923

 
(703
)
 
48,627

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
11,441

 
—

 
(798
)
 
10,643

Municipal bonds
27,671

 
751

 
(1,365
)
 
27,057

Total obligations of states and political subdivisions
39,112

 
751

 
(2,163
)
 
37,700

Residential mortgage-backed securities
524,781

 
3,967

 
(20,719
)
 
508,029

Trust preferred securities*
23,333

 
113

 
(4,231
)
 
19,215

Corporate and other debt securities
83,819

 
1,682

 
(2,103
)
 
83,398

Equity securities
47,617

 
1,614

 
(1,173
)
 
48,058

Total investment securities available for sale
$
866,904

 
$
9,050

 
$
(46,262
)
 
$
829,692

 
*
Includes three pooled trust preferred securities, principally collateralized by securities issued by banks and insurance companies.
Age of Unrealized Losses and Fair Value of Related Securities
The age of unrealized losses and fair value of related securities available for sale at March 31, 2014 and December 31, 2013 were as follows: 
 
Less than
Twelve Months
 
More than
Twelve Months
 
Total
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
Fair
Value
 
Unrealized
Losses
 
(in thousands)
March 31, 2014
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
—

 
$
—

 
$
88,871

 
$
(10,962
)
 
$
88,871

 
$
(10,962
)
U.S. government agency securities
20,834

 
(453
)
 
—

 
—

 
20,834

 
(453
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
10,822

 
(516
)
 
—

 
—

 
10,822

 
(516
)
Municipal bonds
25,293

 
(761
)
 
—

 
—

 
25,293

 
(761
)
Total obligations of states and political subdivisions
36,115

 
(1,277
)
 
—

 
—

 
36,115

 
(1,277
)
Residential mortgage-backed securities
305,171

 
(10,525
)
 
75,789

 
(3,740
)
 
380,960

 
(14,265
)
Trust preferred securities
788

 
(5
)
 
15,298

 
(3,885
)
 
16,086

 
(3,890
)
Corporate and other debt securities
32,168

 
(1,074
)
 
13,896

 
(193
)
 
46,064

 
(1,267
)
Equity securities
274

 
(6
)
 
14,270

 
(1,145
)
 
14,544

 
(1,151
)
Total
$
395,350

 
$
(13,340
)
 
$
208,124

 
$
(19,925
)
 
$
603,474

 
$
(33,265
)
December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
84,665

 
$
(15,170
)
 
$
—

 
$
—

 
$
84,665

 
$
(15,170
)
U.S. government agency securities
26,402

 
(703
)
 
—

 
—

 
26,402

 
(703
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
10,598

 
(798
)
 
—

 
—

 
10,598

 
(798
)
Municipal bonds
13,461

 
(1,365
)
 
—

 
—

 
13,461

 
(1,365
)
Total obligations of states and political subdivisions
24,059

 
(2,163
)
 
—

 
—

 
24,059

 
(2,163
)
Residential mortgage-backed securities
368,306

 
(18,434
)
 
24,734

 
(2,285
)
 
393,040

 
(20,719
)
Trust preferred securities
2,024

 
(25
)
 
15,022

 
(4,206
)
 
17,046

 
(4,231
)
Corporate and other debt securities
53,654

 
(2,073
)
 
2,471

 
(30
)
 
56,125

 
(2,103
)
Equity securities
223

 
(6
)
 
14,248

 
(1,167
)
 
14,471

 
(1,173
)
Total
$
559,333

 
$
(38,574
)
 
$
56,475

 
$
(7,688
)
 
$
615,808

 
$
(46,262
)
Contractual Maturities of Investment Securities Available for Sale
The contractual maturities of investment securities available for sale at March 31, 2014 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.
 
March 31, 2014
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
115

 
$
115

Due after one year through five years
74,498

 
75,570

Due after five years through ten years
86,184

 
81,561

Due after ten years
131,918

 
120,676

Residential mortgage-backed securities
506,034

 
495,604

Equity securities
22,573

 
23,057

Total investment securities available for sale
$
821,322

 
$
796,583

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.
Realized Gains and Losses on Sales of Investment Securities
Gross gains (losses) realized on sales, maturities and other securities transactions related to investment securities included in earnings for the three ended March 31, 2014 and 2013 were as follows: 
 
Three Months Ended  
 March 31,
 
2014
 
2013
 
(in thousands)
Sales transactions:
 
 
 
Gross gains
$
—

 
$
3,380

Maturities and other securities transactions:
 
 
 
Gross gains
$
1

 
$
608

Gross losses
(9
)
 
(30
)
 
$
(8
)
 
$
578

Total (losses) gains on securities transactions, net
$
(8
)
 
$
3,958
Changes in Credit Loss Component of Cumulative Other-than-Temporary Impairment Losses on Debt Securities
The following table presents the changes in the credit loss component of cumulative other-than-temporary impairment losses on debt securities classified as either held to maturity or available for sale that Valley has recognized in earnings, for which a portion of the impairment loss (non-credit factors) was recognized in other comprehensive income for the three months ended March 31, 2014 and 2013: 
 
Three Months Ended  
 March 31,
 
2014
 
2013
 
(in thousands)
Balance, beginning of period
$
9,990

 
$
33,290

Accretion of credit loss impairment due to an increase in expected cash flows
(198
)
 
(113
)
Balance, end of period
$
9,792

 
$
33,177