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Allowance for Credit Losses (Tables)
 12 Months Ended
Dec. 31, 2014
Receivables [Abstract]  
Summary of Allowance for Credit Losses
The following table summarizes the allowance for credit losses for the years ended December 31, 2014 and 2013: 
 
2014
 
2013
 
(in thousands)
Components of allowance for credit losses:
 
 
 
Allowance for non-covered loans
$
102,153

 
$
106,547

Allowance for covered loans
200

 
7,070

Total allowance for loan losses
102,353

 
113,617

Allowance for unfunded letters of credit
1,934

 
3,495

Total allowance for credit losses
$
104,287

 
$
117,112
Summary of Provision for Credit Losses
The following table summarizes the provision for credit losses for the periods indicated: 
 
2014
 
2013
 
2012
 
(in thousands)
Components of provision for credit losses:
 
 
 
 
 
Provision for non-covered loans
$
9,317

 
$
17,171

 
$
25,640

Provision for covered loans
(5,872
)
 
(2,276
)
 
—

Total provision for loan losses
3,445

 
14,895

 
25,640

Provision for unfunded letters of credit
(1,561
)
 
1,200

 
(88
)
Total provision for credit losses
$
1,884

 
$
16,095

 
$
25,552
Summary of Activity in Allowance for Loan Losses
The following table details the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2014 and 2013, including both covered and non-covered loans:
 
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Unallocated
 
Total
 
(in thousands)
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
51,551

 
$
42,343

 
$
7,786

 
$
4,359

 
$
7,578

 
$
113,617

Loans charged-off (1)(3)
(12,722
)
 
(9,470
)
 
(1,004
)
 
(3,702
)
 
—

 
(26,898
)
Charged-off loans recovered (2)
6,874

 
3,110

 
248

 
1,957

 
—

 
12,189

Net charge-offs
(5,848
)
 
(6,360
)
 
(756
)
 
(1,745
)
 
—

 
(14,709
)
Provision for loan losses
(2,027
)
 
6,857

 
(1,937
)
 
2,565

 
(2,013
)
 
3,445

Ending balance
$
43,676

 
$
42,840

 
$
5,093

 
$
5,179

 
$
5,565

 
$
102,353

December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Beginning balance
$
64,370

 
$
44,069

 
$
9,423

 
$
5,542

 
$
6,796

 
$
130,200

Loans charged-off (1)
(19,837
)
 
(10,846
)
 
(4,446
)
 
(5,120
)
 
—

 
(40,249
)
Charged-off loans recovered
4,219

 
1,745

 
768

 
2,039

 
—

 
8,771

Net charge-offs
(15,618
)
 
(9,101
)
 
(3,678
)
 
(3,081
)
 
—

 
(31,478
)
Provision for loan losses
2,799

 
7,375

 
2,041

 
1,898

 
782

 
14,895

Ending balance
$
51,551

 
$
42,343

 
$
7,786

 
$
4,359

 
$
7,578

 
$
113,617

 
(1)
Includes covered loans charge-offs totaling $1.5 million and $146 thousand during 2014 and 2013, respectively, primarily in the commercial and industrial loan portfolio.
(2)
Includes covered loan recoveries totaling $462 thousand during 2014. There were no covered loan recoveries during 2013.
(3)
The commercial and industrial loan and commercial real estate loan categories included $4.8 million and $4.0 million of charge-offs, respectively, related to the valuation of non-performing loans transferred to loans held for sale during 2014.
Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Impairment Methodology
The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology for the years ended December 31, 2014 and 2013. Loans individually evaluated for impairment represent Valley’s impaired loans. Loans acquired with discounts related to credit quality represent Valley’s PCI loans. 
 
Commercial
and Industrial
 
Commercial
Real Estate
 
Residential
Mortgage
 
Consumer
 
Unallocated
 
Total
 
(in thousands)
December 31, 2014
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
4,929

 
$
5,502

 
$
1,629

 
$
465

 
$
—

 
$
12,525

Collectively evaluated for impairment
38,577

 
37,338

 
3,434

 
4,714

 
5,565

 
89,628

Loans acquired with discounts related to credit quality
170

 
—

 
30

 
—

 
—

 
200

Total
$
43,676

 
$
42,840

 
$
5,093

 
$
5,179

 
$
5,565

 
$
102,353

Loans:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
28,224

 
$
91,298

 
$
22,340

 
$
3,146

 
$
—

 
$
145,008

Collectively evaluated for impairment
1,931,703

 
5,438,538

 
2,396,704

 
1,840,159

 
—

 
11,607,104

Loans acquired with discounts related to credit quality
291,184

 
1,164,179

 
157,328

 
109,110

 
—

 
1,721,801

Total
$
2,251,111

 
$
6,694,015

 
$
2,576,372

 
$
1,952,415

 
$
—

 
$
13,473,913

December 31, 2013
 
 
 
 
 
 
 
 
 
 
 
Allowance for loan losses:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
11,032

 
$
8,676

 
$
3,735

 
$
82

 
$
—

 
$
23,525

Collectively evaluated for impairment
40,007

 
27,235

 
3,928

 
4,274

 
7,578

 
83,022

Loans acquired with discounts related to credit quality
512

 
6,432

 
123

 
3

 
—

 
7,070

Total
$
51,551

 
$
42,343

 
$
7,786

 
$
4,359

 
$
7,578

 
$
113,617

Loans:
 
 
 
 
 
 
 
 
 
 
 
Individually evaluated for impairment
$
47,303

 
$
114,638

 
$
28,313

 
$
1,094

 
$
—

 
$
191,348

Collectively evaluated for impairment
1,772,833

 
4,814,159

 
2,456,926

 
1,526,078

 
—

 
10,569,996

Loans acquired with discounts related to credit quality
201,197

 
543,603

 
22,349

 
39,119

 
—

 
806,268

Total
$
2,021,333

 
$
5,472,400

 
$
2,507,588

 
$
1,566,291

 
$
—

 
$
11,567,612