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Investment Securities (Tables)
 6 Months Ended
Jun. 30, 2014
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, 2014 and December 31, 2013 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
June 30, 2014
 
 
 
 
 
 
 
U.S. Treasury securities
$
139,192

 
$
9,936

 
$
—

 
$
149,128

U.S. government agency securities
14,346

 
372

 
—

 
14,718

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
198,610

 
7,056

 
(1,291
)
 
204,375

Municipal bonds
316,792

 
10,441

 
(1,215
)
 
326,018

Total obligations of states and political subdivisions
515,402

 
17,497

 
(2,506
)
 
530,393

Residential mortgage-backed securities
1,019,086

 
20,233

 
(11,199
)
 
1,028,120

Trust preferred securities
98,452

 
193

 
(12,759
)
 
85,886

Corporate and other debt securities
39,665

 
6,213

 
(2
)
 
45,876

Total investment securities held to maturity
$
1,826,143

 
$
54,444

 
$
(26,466
)
 
$
1,854,121

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
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, 2014 and December 31, 2013 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, 2014
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
$
10,364

 
$
(12
)
 
$
46,593

 
$
(1,279
)
 
$
56,957

 
$
(1,291
)
Municipal bonds
2,276

 
(9
)
 
55,006

 
(1,206
)
 
57,282

 
(1,215
)
Total obligations of states and political subdivisions
12,640

 
(21
)
 
101,599

 
(2,485
)
 
114,239

 
(2,506
)
Residential mortgage-backed securities
126,574

 
(1,558
)
 
272,328

 
(9,641
)
 
398,902

 
(11,199
)
Trust preferred securities
9,800

 
(200
)
 
56,009

 
(12,559
)
 
65,809

 
(12,759
)
Corporate and other debt securities
248

 
(2
)
 
—

 
—

 
248

 
(2
)
Total
$
149,262

 
$
(1,781
)
 
$
429,936

 
$
(24,685
)
 
$
579,198

 
$
(26,466
)
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
)
Contractual Maturities of Debt Securities Held to Maturity
The contractual maturities of investments in debt securities held to maturity at June 30, 2014 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, 2014
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
80,902

 
$
80,962

Due after one year through five years
37,304

 
42,340

Due after five years through ten years
329,793

 
346,954

Due after ten years
359,058

 
355,745

Residential mortgage-backed securities
1,019,086

 
1,028,120

Total investment securities held to maturity
$
1,826,143

 
$
1,854,121

Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.
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, 2014 and December 31, 2013 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
June 30, 2014
 
 
 
 
 
 
 
U.S. Treasury securities
$
99,831

 
$
—

 
$
(7,944
)
 
$
91,887

U.S. government agency securities
45,557

 
796

 
(312
)
 
46,041

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
11,278

 
—

 
(322
)
 
10,956

Municipal bonds
27,656

 
95

 
(692
)
 
27,059

Total obligations of states and political subdivisions
38,934

 
95

 
(1,014
)
 
38,015

Residential mortgage-backed securities
481,781

 
4,239

 
(7,888
)
 
478,132

Trust preferred securities*
23,263

 
323

 
(2,936
)
 
20,650

Corporate and other debt securities
83,108

 
2,029

 
(601
)
 
84,536

Equity securities
23,071

 
1,457

 
(584
)
 
23,944

Total investment securities available for sale
$
795,545

 
$
8,939

 
$
(21,279
)
 
$
783,205

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

 
*
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, 2014 and December 31, 2013 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, 2014
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
—

 
$
—

 
$
91,887

 
$
(7,944
)
 
$
91,887

 
$
(7,944
)
U.S. government agency securities
—

 
—

 
20,892

 
(312
)
 
20,892

 
(312
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
—

 
—

 
10,956

 
(322
)
 
10,956

 
(322
)
Municipal bonds
10,781

 
(473
)
 
14,575

 
(219
)
 
25,356

 
(692
)
Total obligations of states and political subdivisions
10,781

 
(473
)
 
25,531

 
(541
)
 
36,312

 
(1,014
)
Residential mortgage-backed securities
27,250

 
(658
)
 
300,710

 
(7,230
)
 
327,960

 
(7,888
)
Trust preferred securities
850

 
(1
)
 
15,351

 
(2,935
)
 
16,201

 
(2,936
)
Corporate and other debt securities
10,512

 
(23
)
 
28,943

 
(578
)
 
39,455

 
(601
)
Equity securities
46

 
(2
)
 
15,063

 
(582
)
 
15,109

 
(584
)
Total
$
49,439

 
$
(1,157
)
 
$
498,377

 
$
(20,122
)
 
$
547,816

 
$
(21,279
)
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
)
Contractual Maturities of Investment Securities Available for Sale
The contractual maturities of investment securities available for sale at June 30, 2014 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, 2014
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
115

 
$
115

Due after one year through five years
74,141

 
75,773

Due after five years through ten years
85,769

 
82,334

Due after ten years
130,668

 
122,907

Residential mortgage-backed securities
481,781

 
478,132

Equity securities
23,071

 
23,944

Total investment securities available for sale
$
795,545

 
$
783,205

Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.
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, 2014 and 2013 were as follows: 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Sales transactions:
 
 
 
 
 
 
 
Gross gains
$
—

 
$
1

 
$
—

 
$
3,381

Maturities and other securities transactions:
 
 
 
 
 
 
 
Gross gains
$
7

 
$
41

 
$
8

 
$
649

Gross losses
—

 
(1
)
 
(9
)
 
(31
)
 
$
7

 
$
40

 
$
(1
)
 
$
618

Total gains (losses) on securities transactions, net
$
7

 
$
41

 
$
(1
)
 
$
3,999
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, 2014 and 2013: 
 
Three Months Ended
June 30,
 
Six Months Ended
June 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Balance, beginning of period
$
9,792

 
$
33,177

 
$
9,990

 
$
33,290

Accretion of credit loss impairment due to an increase in expected cash flows
(110
)
 
(75
)
 
(308
)
 
(188
)
Balance, end of period
$
9,682

 
$
33,102

 
$
9,682

 
$
33,102