COMMITMENTS AND CONTINGENCIES (Tables)

12 Months Ended

Dec. 31, 2012

Minimum Aggregate Lease Payments

Minimum aggregate lease payments for the remainder of the lease terms are as follows:

			Sublease
Year	Gross Rents		Rents		Net Rents
	(in thousands)
2013	$	22,151	$	1,850	$	20,301
2014		21,252		1,725		19,527
2015		20,957		1,657		19,300
2016		20,615		1,530		19,085
2017		20,115		1,519		18,596
Thereafter		277,363		4,506		272,857
Total lease commitments	$	382,453	$	12,787	$	369,666

Summary of Financial Instruments with Off-Balance Sheet Risk

The following table provides a summary of financial instruments with off-balance sheet risk at December 31, 2012 and 2011:

	2012		2011
	(in thousands)
Commitments under commercial loans and lines of credit	$	1,944,815	$	1,778,837
Home equity and other revolving lines of credit		620,397		570,247
Outstanding commercial mortgage loan commitments		253,235		237,921
Standby letters of credit		228,694		237,279
Outstanding residential mortgage loan commitments		247,275		275,116
Commitments under unused lines of credit - credit card		59,969		64,144
Commercial letters of credit		6,043		11,076
Commitments to sell loans		100,400		85,000

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:

	Balance Sheet	Fair Value at December 31,
	Line Item	2012		2011
		(in thousands)
Asset Derivatives:
Derivatives designated as hedging instruments:
Cash flow hedge interest rate caps and swaps	Other Assets	$	23	$	294
Fair value hedge interest rate swaps	Other Assets		652		852
Total derivatives designated as hedging instruments		$	675	$	1,146
Derivatives not designated as hedging instruments:
Interest rate swaps	Other Assets	$	7,002	$	4,065
Mortgage banking derivatives	Other Assets		239		—
Total derivatives not designated as hedging instruments		$	7,241	$	4,065
Liability Derivatives:
Derivatives designated as hedging instruments:
Cash flow hedge interest rate caps and swaps	Other Liabilities	$	17,198	$	15,649
Fair value hedge interest rate swaps	Other Liabilities		2,197		2,140
Total derivatives designated as hedging instruments		$	19,395	$	17,789
Derivatives not designated as hedging instruments:
Interest rate swaps	Other Liabilities	$	6,999	$	4,065
Mortgage banking derivatives	Other Liabilities		200		—
Total derivatives not designated as hedging instruments		$	7,199	$	4,065

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

	2012			2011			2010
	(in thousands)
Interest rate caps on short-term borrowings and deposit accounts:
Amount of loss reclassified from accumulated other comprehensive income or loss to interest on short-term borrowings	$	(6,478	)	$	(3,067	)	$	(1,967	)
Amount of (loss) gain recognized in other comprehensive income (loss)		(5,774	)		(24,393	)		1,494

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:

	2012			2011			2010
	(in thousands)
Derivative - interest rate swaps:
Interest income - interest and fees on loans	$	(57	)	$	(761	)	$	(361	)
Interest expense - interest on time deposits		(200	)		852			—
Hedged item - loans and deposits:
Interest income - interest and fees on loans	$	57		$	761		$	361
Interest expense - interest on time deposits		220			(884	)		—

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

Net gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the years ended December 31, 2012, 2011, and 2010 were as follows:

	2012		2011		2010
	(in thousands)
Non-designated hedge interest rate derivatives
Trading gains, net	$	—	$	—	$	1,984
Other non-interest income		253		—		369