Derivative Instruments and Hedging Activities (Tables)

6 Months Ended

Jun. 30, 2013

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:

		Fair Value
	Balance Sheet Line Item	June 30, 2013		December 31, 2012
		(in thousands)
Asset Derivatives:
Derivatives designated as hedging instruments:
Cash flow hedge interest rate caps and swaps	Other Assets	$	27	$	23
Fair value hedge interest rate swaps	Other Assets		378		652
Total derivatives designated as hedging instruments		$	405	$	675
Derivatives not designated as hedging instruments:
Interest rate swaps	Other Assets	$	4,631	$	7,002
Mortgage banking derivatives	Other Assets		2,389		239
Total derivatives not designated as hedging instruments		$	7,020	$	7,241
Liability Derivatives:
Derivatives designated as hedging instruments:
Cash flow hedge interest rate caps and swaps	Other Liabilities	$	11,408	$	17,198
Fair value hedge interest rate swaps	Other Liabilities		1,675		2,197
Total derivatives designated as hedging instruments		$	13,083	$	19,395
Derivatives not designated as hedging instruments:
Interest rate swaps	Other Liabilities	$	4,631	$	6,999
Mortgage banking derivatives	Other Liabilities		1,257		200
Total derivatives not designated as hedging instruments		$	5,888	$	7,199

Losses Related to Interest Rate Derivatives Designated as Hedges of Cash Flows

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 June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Interest rate caps on short-term borrowings and deposit accounts:
Amount of loss reclassified from accumulated other comprehensive loss to interest on short-term borrowings	$	(1,714	)	$	(1,398	)	$	(3,594	)	$	(2,790	)
Amount of loss recognized in other comprehensive income		3,508			(5,288	)		3,375			(3,739	)

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 June 30,						Six Months Ended June 30,
	2013			2012			2013			2012
	(in thousands)
Derivative - interest rate swaps:
Interest income - interest and fees on loans	$	425		$	(251	)	$	522		$	(121	)
Interest expense - interest on time deposits		(134	)		(67	)		(274	)		(27	)
Hedged item - loans and deposits:
Interest income - interest and fees on loans	$	(425	)	$	251		$	(522	)	$	121
Interest expense - interest on time deposits		136			70			279			38

Gains Related to Derivative Instruments Not Designated as Hedging Instruments

The net gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments for the three 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)
Non-designated hedge interest rate derivatives
Other non-interest income	$	1,461	$	1	$	1,090	$	217