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Investment Securities (Tables)
 9 Months Ended
Sep. 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 September 30, 2014 and December 31, 2013 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
September 30, 2014
 
 
 
 
 
 
 
U.S. Treasury securities
$
139,156

 
$
9,329

 
$
—

 
$
148,485

U.S. government agency securities
13,881

 
326

 
—

 
14,207

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
198,027

 
8,494

 
(419
)
 
206,102

Municipal bonds
303,285

 
10,965

 
(597
)
 
313,653

Total obligations of states and political subdivisions
501,312

 
19,459

 
(1,016
)
 
519,755

Residential mortgage-backed securities
1,020,852

 
15,988

 
(12,438
)
 
1,024,402

Trust preferred securities
98,454

 
185

 
(12,165
)
 
86,474

Corporate and other debt securities
39,657

 
5,655

 
(3
)
 
45,309

Total investment securities held to maturity
$
1,813,312

 
$
50,942

 
$
(25,622
)
 
$
1,838,632

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 September 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)
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
$
16,384

 
$
(30
)
 
$
24,744

 
$
(389
)
 
$
41,128

 
$
(419
)
Municipal bonds
—

 
—

 
51,368

 
(597
)
 
51,368

 
(597
)
Total obligations of states and political subdivisions
16,384

 
(30
)
 
76,112

 
(986
)
 
92,496

 
(1,016
)
Residential mortgage-backed securities
135,266

 
(851
)
 
327,191

 
(11,587
)
 
462,457

 
(12,438
)
Trust preferred securities
—

 
—

 
66,406

 
(12,165
)
 
66,406

 
(12,165
)
Corporate and other debt securities
247

 
(3
)
 
—

 
—

 
247

 
(3
)
Total
$
151,897

 
$
(884
)
 
$
469,709

 
$
(24,738
)
 
$
621,606

 
$
(25,622
)
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 September 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.  
 
September 30, 2014
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
67,436

 
$
67,471

Due after one year through five years
51,163

 
56,054

Due after five years through ten years
338,008

 
355,791

Due after ten years
335,853

 
334,914

Residential mortgage-backed securities
1,020,852

 
1,024,402

Total investment securities held to maturity
$
1,813,312

 
$
1,838,632

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 September 30, 2014 and December 31, 2013 were as follows: 
 
Amortized
Cost
 
Gross
Unrealized
Gains
 
Gross
Unrealized
Losses
 
Fair Value
 
(in thousands)
September 30, 2014
 
 
 
 
 
 
 
U.S. Treasury securities
$
99,829

 
$
—

 
$
(6,833
)
 
$
92,996

U.S. government agency securities
44,504

 
756

 
(246
)
 
45,014

Obligations of states and political subdivisions:
 
 
 
 
 
 
 
Obligations of states and state agencies
11,220

 
—

 
(108
)
 
11,112

Municipal bonds
27,018

 
92

 
(607
)
 
26,503

Total obligations of states and political subdivisions
38,238

 
92

 
(715
)
 
37,615

Residential mortgage-backed securities
465,092

 
3,852

 
(9,367
)
 
459,577

Trust preferred securities*
23,228

 
430

 
(2,414
)
 
21,244

Corporate and other debt securities
77,413

 
1,506

 
(1,004
)
 
77,915

Equity securities
23,071

 
1,576

 
(587
)
 
24,060

Total investment securities available for sale
$
771,375

 
$
8,212

 
$
(21,166
)
 
$
758,421

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 September 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)
September 30, 2014
 
 
 
 
 
 
 
 
 
 
 
U.S. Treasury securities
$
—

 
$
—

 
$
92,996

 
$
(6,833
)
 
$
92,996

 
$
(6,833
)
U.S. government agency securities
—

 
—

 
20,574

 
(246
)
 
20,574

 
(246
)
Obligations of states and political subdivisions:
 
 
 
 
 
 
 
 
 
 
 
Obligations of states and state agencies
—

 
—

 
11,111

 
(108
)
 
11,111

 
(108
)
Municipal bonds
10,939

 
(323
)
 
14,495

 
(284
)
 
25,434

 
(607
)
Total obligations of states and political subdivisions
10,939

 
(323
)
 
25,606

 
(392
)
 
36,545

 
(715
)
Residential mortgage-backed securities
59,755

 
(422
)
 
300,773

 
(8,945
)
 
360,528

 
(9,367
)
Trust preferred securities
—

 
—

 
12,557

 
(2,414
)
 
12,557

 
(2,414
)
Corporate and other debt securities
25,297

 
(145
)
 
28,499

 
(859
)
 
53,796

 
(1,004
)
Equity securities
46

 
(2
)
 
15,059

 
(585
)
 
15,105

 
(587
)
Total
$
96,037

 
$
(892
)
 
$
496,064

 
$
(20,274
)
 
$
592,101

 
$
(21,166
)
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 September 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.
 
September 30, 2014
 
Amortized
Cost
 
Fair
Value
 
(in thousands)
Due in one year
$
115

 
$
115

Due after one year through five years
69,007

 
70,015

Due after five years through ten years
84,257

 
80,698

Due after ten years
129,833

 
123,956

Residential mortgage-backed securities
465,092

 
459,577

Equity securities
23,071

 
24,060

Total investment securities available for sale
$
771,375

 
$
758,421

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 nine months ended September 30, 2014 and 2013 were as follows: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Sales transactions:
 
 
 
 
 
 
 
Gross gains
$
103

 
$
1

 
$
103

 
$
3,382

Maturities and other securities transactions:
 
 
 
 
 
 
 
Gross gains
$
—

 
$
8

 
$
8

 
$
657

Gross losses
—

 
—

 
(9
)
 
(31
)
 
$
—

 
$
8

 
$
(1
)
 
$
626

Total gains on securities transactions, net
$
103

 
$
9

 
$
102

 
$
4,008
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 previously recognized in earnings, for which a portion of the impairment loss (non-credit factors) was recognized in other comprehensive income for the three and nine months ended September 30, 2014 and 2013: 
 
Three Months Ended
September 30,
 
Nine Months Ended
September 30,
 
2014
 
2013
 
2014
 
2013
 
(in thousands)
Balance, beginning of period
$
9,682

 
$
33,102

 
$
9,990

 
$
33,290

Accretion of credit loss impairment due to an increase in expected cash flows
(198
)
 
(190
)
 
(506
)
 
(378
)
Balance, end of period
$
9,484

 
$
32,912

 
$
9,484

 
$
32,912