Subsequent Event

9 Months Ended

Sep. 30, 2015

Subsequent Events [Abstract]

Subsequent Event

Subsequent Event

During October 2015, Valley elected to prepay $795 million of its long-term borrowings with maturities in 2017 at an average cost of 3.78 percent. The settlement of such borrowings will result in the recognition of pre-tax prepayment penalty charges totaling $50.3 million during the fourth quarter of 2015. Funding for the entire transaction was obtained from new sources consisting of both brokered money market deposits and securities sold under agreements to repurchase (repos) totaling $800 million. The new fixed rate instruments have a weighted average duration of approximately one year and an average interest cost of 0.56 percent.