Investment Securities (Tables)

6 Months Ended

Jun. 30, 2013

Investments Debt And Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Held to Maturity

The amortized cost, gross unrealized gains and losses and fair value of securities held to maturity at June 30, 2013 and December 31, 2012 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
June 30, 2013
U.S. Treasury securities	$	99,792	$	8,942	$	—		$	108,734
Obligations of states and political subdivisions		542,154		10,120		(9,660	)		542,614
Residential mortgage-backed securities		969,341		13,459		(19,225	)		963,575
Trust preferred securities		103,453		377		(12,482	)		91,348
Corporate and other debt securities		52,207		5,704		(1	)		57,910
Total investment securities held to maturity	$	1,766,947	$	38,602	$	(41,368	)	$	1,764,181
December 31, 2012
U.S. Treasury securities	$	99,869	$	15,460	$	—		$	115,329
Obligations of states and political subdivisions		506,473		25,690		(197	)		531,966
Residential mortgage-backed securities		813,647		24,824		(355	)		838,116
Trust preferred securities		127,505		930		(14,778	)		113,657
Corporate and other debt securities		52,213		6,669		—			58,882
Total investment securities held to maturity	$	1,599,707	$	73,573	$	(15,330	)	$	1,657,950

Age of Unrealized Losses and Fair Value of Related Securities Held to Maturity

The age of unrealized losses and fair value of related securities held to maturity at June 30, 2013 and December 31, 2012 were as follows:

	Less than Twelve Months					More than Twelve Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
June 30, 2013
Obligations of states and political subdivisions	$	130,784	$	(9,564	)	$	1,345	$	(96	)	$	132,129	$	(9,660	)
Residential mortgage-backed securities		520,005		(19,225	)		—		—			520,005		(19,225	)
Trust preferred securities		15,916		(259	)		51,159		(12,223	)		67,075		(12,482	)
Corporate and other debt securities		49		(1	)		—		—			49		(1	)
Total	$	666,754	$	(29,049	)	$	52,504	$	(12,319	)	$	719,258	$	(41,368	)
December 31, 2012
Obligations of states and political subdivisions	$	15,518	$	(197	)	$	—	$	—		$	15,518	$	(197	)
Residential mortgage-backed securities		80,152		(355	)		—		—			80,152		(355	)
Trust preferred securities		28,690		(208	)		48,802		(14,570	)		77,492		(14,778	)
Total	$	124,360	$	(760	)	$	48,802	$	(14,570	)	$	173,162	$	(15,330	)

Contractual Maturities of Debt Securities Held to Maturity

The contractual maturities of investments in debt securities held to maturity at June 30, 2013 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.

	June 30, 2013
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	147,705	$	148,150
Due after one year through five years		41,978		46,652
Due after five years through ten years		238,461		250,285
Due after ten years		369,462		355,519
Residential mortgage-backed securities		969,341		963,575
Total investment securities held to maturity	$	1,766,947	$	1,764,181

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Securities Available for Sale

The amortized cost, gross unrealized gains and losses and fair value of securities available for sale at June 30, 2013 and December 31, 2012 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
June 30, 2013
U.S. Treasury securities	$	99,839	$	—	$	(10,053	)	$	89,786
U.S. government agency securities		54,917		1,504		(613	)		55,808
Obligations of states and political subdivisions		40,608		791		(2,165	)		39,234
Residential mortgage-backed securities		590,225		4,414		(20,812	)		573,827
Trust preferred securities*		67,973		6,088		(5,648	)		68,413
Corporate and other debt securities		84,523		2,008		(2,285	)		84,246
Equity securities		48,020		1,220		(1,898	)		47,342
Total investment securities available for sale	$	986,105	$	16,025	$	(43,474	)	$	958,656
December 31, 2012
U.S. Treasury securities	$	99,843	$	—	$	(2,218	)	$	97,625
U.S. government agency securities		44,215		1,547		—			45,762
Obligations of states and political subdivisions		16,210		417		—			16,627
Residential mortgage-backed securities		506,695		6,818		(3,359	)		510,154
Trust preferred securities*		68,931		240		(11,739	)		57,432
Corporate and other debt securities		28,274		2,728		(294	)		30,708
Equity securities		49,306		2,071		(1,869	)		49,508
Total investment securities available for sale	$	813,474	$	13,821	$	(19,479	)	$	807,816

* Includes three pooled trust preferred securities, principally collateralized by securities issued by banks and insurance companies.

Age of Unrealized Losses and Fair Value of Related Securities

The age of unrealized losses and fair value of related securities available for sale at June 30, 2013 and December 31, 2012 were as follows:

	Less than					More than
	Twelve Months					Twelve Months					Total
	Fair Value		Unrealized Losses			Fair Value		Unrealized Losses			Fair Value		Unrealized Losses
	(in thousands)
June 30, 2013
U.S. Treasury securities	$	89,786	$	(10,053	)	$	—	$	—		$	89,786	$	(10,053	)
U.S. government agency securities		28,188		(613	)		—		—			28,188		(613	)
Obligations of states and political subdivisions		24,204		(2,165	)		—		—			24,204		(2,165	)
Residential mortgage-backed securities		442,850		(18,946	)		13,566		(1,866	)		456,416		(20,812	)
Trust preferred securities		446		(10	)		32,969		(5,638	)		33,415		(5,648	)
Corporate and other debt securities		54,149		(2,192	)		2,407		(93	)		56,556		(2,285	)
Equity securities		1,144		(41	)		12,601		(1,857	)		13,745		(1,898	)
Total	$	640,767	$	(34,020	)	$	61,543	$	(9,454	)	$	702,310	$	(43,474	)
December 31, 2012
U.S. Treasury securities	$	97,625	$	(2,218	)	$	—	$	—		$	97,625	$	(2,218	)
Residential mortgage-backed securities		269,895		(1,256	)		21,089		(2,103	)		290,984		(3,359	)
Trust preferred securities		760		(511	)		27,865		(11,228	)		28,625		(11,739	)
Corporate and other debt securities		5,394		(58	)		2,264		(236	)		7,658		(294	)
Equity securities		969		(75	)		12,664		(1,794	)		13,633		(1,869	)
Total	$	374,643	$	(4,118	)	$	63,882	$	(15,361	)	$	438,525	$	(19,479	)

Contractual Maturities of Investment Securities Available for Sale

The contractual maturities of investment securities available for sale at June 30, 2013 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.

	June 30, 2013
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	720	$	724
Due after one year through five years		44,295		43,520
Due after five years through ten years		120,195		117,815
Due after ten years		182,650		175,428
Residential mortgage-backed securities		590,225		573,827
Equity securities		48,020		47,342
Total investment securities available for sale	$	986,105	$	958,656

Realized Gains and Losses on Sales of Investment Securities

Gross gains (losses) realized on sales, maturities and other securities transactions related to investment securities included in earnings for the three and six months ended June 30, 2013 and 2012 were as follows:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Sales transactions:
Gross gains	$	1		$	1,234		$	3,381		$	1,374
Gross losses		—			—			—			(298	)
	$	1		$	1,234		$	3,381		$	1,076
Maturities and other securities transactions:
Gross gains	$	41		$	6		$	649		$	19
Gross losses		(1	)		(36	)		(31	)		(48	)
	$	40		$	(30	)	$	618		$	(29	)
Total gains on securities transactions, net	$	41		$	1,204		$	3,999		$	1,047

Changes in Credit Loss Component of Cumulative Other-Than-Temporary Impairment Losses on Debt Securities

The following table presents the changes in the credit loss component of cumulative other-than-temporary impairment losses on debt securities classified as either held to maturity or available for sale that Valley has recognized in earnings, for which a portion of the impairment loss (non-credit factors) was recognized in other comprehensive income for the three and six months ended June 30, 2013 and 2012:

	Three Months Ended June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Balance, beginning of period	$	33,177		$	28,767		$	33,290		$	29,070
Additions:
Subsequent credit impairments		—			550			—			550
Reductions:
Accretion of credit loss impairment due to an increase in expected cash flows		(75	)		(66	)		(188	)		(369	)
Balance, end of period	$	33,102		$	29,251		$	33,102		$	29,251