Investment Securities (Tables)

12 Months Ended

Dec. 31, 2013

Investments Debt And Equity Securities [Abstract]

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

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
December 31, 2013
U.S. Treasury securities	$	139,255	$	5,567	$	(515	)	$	144,307
U.S. government agency securities		4,427		—		(62	)		4,365
Obligations of states and political subdivisions:
Obligations of states and state agencies		192,653		1,944		(5,473	)		189,124
Municipal bonds		353,233		6,053		(5,259	)		354,027
Total obligations of states and political subdivisions		545,886		7,997		(10,732	)		543,151
Residential mortgage-backed securities		886,043		12,609		(27,631	)		871,021
Trust preferred securities		103,458		363		(12,332	)		91,489
Corporate and other debt securities		52,668		4,426		—			57,094
Total investment securities held to maturity	$	1,731,737	$	30,962	$	(51,272	)	$	1,711,427
December 31, 2012
U.S. Treasury securities	$	99,869	$	15,460	$	—		$	115,329
Obligations of states and political subdivisions:
Obligations of states and state agencies		180,304		11,817		(105	)		192,016
Municipal bonds		326,169		13,873		(92	)		339,950
Total 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 December 31, 2013 and 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)
December 31, 2013
U.S. Treasury securities	$	64,537	$	(515	)	$	—	$	—		$	64,537	$	(515	)
U.S. government agency securities		4,365		(62	)		—		—			4,365		(62	)
Obligations of states and political subdivisions:
Obligations of states and state agencies		80,612		(5,473	)		—		—			80,612		(5,473	)
Municipal bonds		85,988		(5,154	)		1,326		(105	)		87,314		(5,259	)
Total obligations of states and political subdivisions		166,600		(10,627	)		1,326		(105	)		167,926		(10,732	)
Residential mortgage-backed securities		465,400		(27,631	)		—		—			465,400		(27,631	)
Trust preferred securities		9,750		(250	)		56,480		(12,082	)		66,230		(12,332	)
Total	$	710,652	$	(39,085	)	$	57,806	$	(12,187	)	$	768,458	$	(51,272	)
December 31, 2012
Obligations of states and political subdivisions:
Obligations of states and state agencies	$	7,463	$	(105	)	$	—	$	—		$	7,463	$	(105	)
Municipal bonds		8,055		(92	)		—		—			8,055		(92	)
Total 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 December 31, 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.

	December 31, 2013
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	129,999	$	130,174
Due after one year through five years		44,695		49,102
Due after five years through ten years		313,054		320,966
Due after ten years		357,946		340,164
Residential mortgage-backed securities		886,043		871,021
Total investment securities held to maturity	$	1,731,737	$	1,711,427

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

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

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
December 31, 2013
U.S. Treasury securities	$	99,835	$	—	$	(15,170	)	$	84,665
U.S. government agency securities		48,407		923		(703	)		48,627
Obligations of states and political subdivisions:
Obligations of states and state agencies		11,441		—		(798	)		10,643
Municipal bonds		27,671		751		(1,365	)		27,057
Total obligations of states and political subdivisions		39,112		751		(2,163	)		37,700
Residential mortgage-backed securities		524,781		3,967		(20,719	)		508,029
Trust preferred securities*		23,333		113		(4,231	)		19,215
Corporate and other debt securities		83,819		1,682		(2,103	)		83,398
Equity securities		47,617		1,614		(1,173	)		48,058
Total investment securities available for sale	$	866,904	$	9,050	$	(46,262	)	$	829,692
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:
Obligations of states and state agencies		207		6		—			213
Municipal bonds		16,003		411		—			16,414
Total 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 December 31, 2013 and 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)
December 31, 2013
U.S. Treasury securities	$	84,665	$	(15,170	)	$	—	$	—		$	84,665	$	(15,170	)
U.S. government agency securities		26,402		(703	)		—		—			26,402		(703	)
Obligations of states and political subdivisions:
Obligations of states and state agencies		10,598		(798	)		—		—			10,598		(798	)
Municipal bonds		13,461		(1,365	)		—		—			13,461		(1,365	)
Total obligations of states and political subdivisions		24,059		(2,163	)		—		—			24,059		(2,163	)
Residential mortgage-backed securities		368,306		(18,434	)		24,734		(2,285	)		393,040		(20,719	)
Trust preferred securities		2,024		(25	)		15,022		(4,206	)		17,046		(4,231	)
Corporate and other debt securities		53,654		(2,073	)		2,471		(30	)		56,125		(2,103	)
Equity securities		223		(6	)		14,248		(1,167	)		14,471		(1,173	)
Total	$	559,333	$	(38,574	)	$	56,475	$	(7,688	)	$	615,808	$	(46,262	)
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 Investments Securities Available for Sale

The contractual maturities of investments securities available for sale at December 31, 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.

	December 31, 2013
	Amortized		Fair
	Cost		Value
	(in thousands)
Due in one year	$	160	$	161
Due after one year through five years		55,700		54,804
Due after five years through ten years		106,009		101,992
Due after ten years		132,637		116,648
Residential mortgage-backed securities		524,781		508,029
Equity securities		47,617		48,058
Total investment securities available for sale	$	866,904	$	829,692

Other-than-Temporary Impairment Losses on Securities Recognized in Earnings

The following table provides information regarding our other-than-temporary impairment losses on securities recognized in earnings for the years ended December 31, 2013, 2012 and 2011.

	2013		2012		2011
	(in thousands)
Held to maturity:
Trust preferred securities	$	—	$	—	$	18,314
Available for sale:
Residential mortgage-backed securities		—		722		829
Trust preferred securities		—		4,525		825
Net impairment losses on securities recognized in earnings	$	—	$	5,247	$	19,968

Gross Gains (Losses) Realized on Sales, Maturities and Other Securities Transactions Included in Earnings

Gross gains (losses) realized on sales, maturities and other securities transactions included in earnings for the years ended December 31, 2013, 2012 and 2011 were as follows:

	2013			2012			2011
	(in thousands)
Sales transactions:
Gross gains	$	14,098		$	6,621		$	31,456
Gross losses		(44	)		(1,050	)		—
	$	14,054		$	5,571		$	31,456
Maturities and other securities transactions:
Gross gains	$	662		$	2,327		$	623
Gross losses		(38	)		(5,311	)		(11	)
	$	624		$	(2,984	)	$	612
Gains on securities transactions, net	$	14,678		$	2,587		$	32,068

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 or loss for the years ended December 31, 2013, 2012 and 2011:

	2013			2012			2011
	(in thousands)
Balance, beginning of period	$	33,290		$	29,070		$	10,500
Additions:
Initial credit impairments		—			—			19,143
Subsequent credit impairments		—			5,247			825
Reductions:
Sales		(22,839	)		—			—
Accretion of credit loss impairment due to an increase in expected cash flows		(461	)		(1,027	)		(1,398	)
Balance, end of period	$	9,990		$	33,290		$	29,070