Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2014

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, 2014						December 31, 2013
	Fair Value						Fair Value
	Other Assets		Other Liabilities		Notional Amount		Other Assets		Other Liabilities		Notional Amount
	(in thousands)
Derivatives designated as hedging instruments:
Cash flow hedge interest rate caps and swaps	$	3,647	$	16,935	$	1,007,000	$	9,883	$	10,925	$	1,007,000
Fair value hedge interest rate swaps	2,710		1,542		133,500		99		4,691		184,591
Total derivatives designated as hedging instruments	$	6,357	$	18,477	$	1,140,500	$	9,982	$	15,616	$	1,191,591
Derivatives not designated as hedging instruments:
Interest rate swaps and embedded derivatives	$	8,114	$	8,105	$	373,745	$	4,823	$	4,823	$	259,832
Mortgage banking derivatives	28		84		15,452		317		147		46,784
Total derivatives not designated as hedging instruments	$	8,142	$	8,189	$	389,197	$	5,140	$	4,970	$	306,616

Losses 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, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(1,664	)	$	(1,714	)	$	(3,312	)	$	(3,594	)
Amount of (loss) gain recognized in other comprehensive income	(8,368		)	3,508			(14,666		)	3,375

Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Fair Value

ains (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 June 30,						Six Months Ended June 30,
	2014			2013			2014			2013
	(in thousands)
Derivative - interest rate swaps:
Interest income	$	(49	)	$	425		$	(73	)	$	522
Interest expense	2,856			(134		)	5,832			(274		)
Hedged item - loans, deposits and long-term borrowings:
Interest income	$	49		$	(425	)	$	73		$	(522	)
Interest expense	(2,859		)	136			(5,800		)	279

(Losses) Gains 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 June 30,					Six Months Ended June 30,
	2014			2013		2014			2013
	(in thousands)
Non-designated hedge interest rate derivatives
Other non-interest expense	$	(43	)	$	1,461	$	(216	)	$	1,090