GOODWILL AND OTHER INTANGIBLE ASSETS (Tables)

12 Months Ended

Dec. 31, 2012

Carrying Amount of Goodwill

The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were:

	Business Segment / Reporting Unit*
	Wealth Management		Consumer Lending		Commercial Lending		Investment Management		Total
	(in thousands)
Balance at December 31, 2010	$	20,446	$	98,999	$	117,689	$	80,757	$	317,891
Goodwill from business combinations		71		—		—		—		71
Balance at December 31, 2011		20,517		98,999		117,689		80,757		317,962
Goodwill from business combinations		—		29,452		57,074		23,746		110,272
Balance at December 31, 2012	$	20,517	$	128,451	$	174,763	$	104,503	$	428,234

* Valley’s Wealth Management Division is comprised of trust, asset management, and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.

Other Intangible Assets

The following tables summarize other intangible assets as of December 31, 2012 and 2011:

	Gross Intangible Assets		Accumulated Amortization			Valuation Allowance			Net Intangible Assets
	(in thousands)
December 31, 2012
Loan servicing rights	$	63,377	$	(43,393	)	$	(3,046	)	$	16,938
Core deposits		35,194		(24,160	)		—			11,034
Other		5,878		(2,727	)		—			3,151
Total other intangible assets	$	104,449	$	(70,280	)	$	(3,046	)	$	31,123
December 31, 2011
Loan servicing rights	$	52,046	$	(39,146	)	$	(2,670	)	$	10,230
Core deposits		27,144		(20,363	)		—			6,781
Other		6,121		(2,314	)		—			3,807
Total other intangible assets	$	85,311	$	(61,823	)	$	(2,670	)	$	20,818

Schedule of Change in Loan Servicing Rights

The following table summarizes the change in loan servicing rights during the years ended December 31, 2012, 2011 and 2010:

	2012			2011			2010
	(in thousands)
Loan servicing rights
Balance at beginning of year	$	12,900		$	12,491		$	11,722
Origination of loan servicing rights		12,039			4,483			4,182
Amortization expense		(4,955	)		(4,074	)		(3,413	)
Balance at end of year	$	19,984		$	12,900		$	12,491
Valuation allowance
Balance at beginning of year	$	(2,670	)	$	(1,163	)	$	(612	)
Impairment adjustment		(376	)		(1,507	)		(551	)
Balance at end of year	$	(3,046	)	$	(2,670	)	$	(1,163	)
Balance at end of year net of valuation allowance	$	16,938		$	10,230		$	11,328

Estimated Future Amortization Expense

The following presents the estimated amortization expense of other intangible assets over the next five year period:

	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2013		4,511		3,078		541
2014		3,640		2,359		466
2015		2,658		1,758		434
2016		1,941		1,195		233
2017		1,433		815		220