Derivative Instruments and Hedging Activities (Tables)

9 Months Ended

Sep. 30, 2015

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:

	September 30, 2015						December 31, 2014
	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	$	1,253	$	32,281	$	907,000	$	2,229	$	19,302	$	1,007,000
Fair value hedge interest rate swaps	9,469		1,471		133,260		6,257		1,482		133,406
Total derivatives designated as hedging instruments	$	10,722	$	33,752	$	1,040,260	$	8,486	$	20,784	$	1,140,406
Derivatives not designated as hedging instruments:
Interest rate swaps and embedded derivatives	$	23,278	$	23,274	$	528,767	$	12,464	$	12,455	$	378,849
Mortgage banking derivatives	114		318		61,658		37		91		40,857
Total derivatives not designated as hedging instruments	$	23,392	$	23,592	$	590,425	$	12,501	$	12,546	$	419,706

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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(1,323	)	$	(1,674	)	$	(4,651	)	$	(4,986	)
Amount of (loss) gain recognized in other comprehensive income	(10,588		)	2,155			(17,604		)	(12,511		)

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 September 30,						Nine Months Ended September 30,
	2015			2014			2015			2014
	(in thousands)
Derivative - interest rate swaps:
Interest income	$	(93	)	$	116		$	10		$	43
Interest expense	4,302			(84		)	3,211			5,748
Hedged item - loans, deposits and long-term borrowings:
Interest income	$	93		$	(116	)	$	(10	)	$	(43	)
Interest expense	(4,329		)	45			(3,270		)	(5,755		)

Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments

The net (losses) gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows:

	Three Months Ended September 30,					Nine Months Ended September 30,
	2015			2014		2015			2014
	(in thousands)
Non-designated hedge interest rate derivatives
Other non-interest expense	$	(263	)	$	44	$	(155	)	$	(172	)