Investment Securities (Tables)

3 Months Ended

Mar. 31, 2013

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 March 31, 2013 and December 31, 2012 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
	(in thousands)
March 31, 2013
U.S. Treasury securities	$	99,832	$	14,412	$	—		$	114,244
Obligations of states and political subdivisions		545,597		21,653		(1,167	)		566,083
Residential mortgage-backed securities		752,220		21,214		(817	)		772,617
Trust preferred securities		115,747		485		(13,361	)		102,871
Corporate and other debt securities		52,211		6,686		—			58,897
Total investment securities held to maturity	$	1,565,607	$	64,450	$	(15,345	)	$	1,614,712
December 31, 2012
U.S. Treasury securities	$	99,869	$	15,460	$	—		$	115,329
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 March 31, 2013 and December 31, 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)
March 31, 2013
Obligations of states and political subdivisions	$	84,770	$	(1,167	)	$	—	$	—		$	84,770	$	(1,167	)
Residential mortgage-backed securities		85,977		(817	)		—		—			85,977		(817	)
Trust preferred securities		6,080		(96	)		50,112		(13,265	)		56,192		(13,361	)
Total	$	176,827	$	(2,080	)	$	50,112	$	(13,265	)	$	226,939	$	(15,345	)
December 31, 2012
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 March 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.

	March 31, 2013
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	123,929	$	123,973
Due after one year through five years		45,516		47,965
Due after five years through ten years		251,536		276,705
Due after ten years		392,406		393,452
Residential mortgage-backed securities		752,220		772,617
Total investment securities held to maturity	$	1,565,607	$	1,614,712

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 March 31, 2013 and December 31, 2012 were as follows:

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses			Fair Value
			(in thousands)
March 31, 2013
U.S. Treasury securities	$	99,841	$	—	$	(4,383	)	$	95,458
U.S. government agency securities		57,400		1,597		(7	)		58,990
Obligations of states and political subdivisions		42,513		738		(632	)		42,619
Residential mortgage-backed securities		567,697		5,634		(5,008	)		568,323
Trust preferred securities*		68,902		4,843		(7,416	)		66,329
Corporate and other debt securities		73,595		2,883		(231	)		76,247
Equity securities		48,049		936		(1,681	)		47,304
Total investment securities available for sale	$	957,997	$	16,631	$	(19,358	)	$	955,270
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		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 March 31, 2013 and December 31, 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)
March 31, 2013
U.S. Treasury securities	$	95,458	$	(4,383	)	$	—	$	—		$	95,458	$	(4,383	)
U.S. government agency securities		17,734		(7	)		—		—			17,734		(7	)
Obligations of states and political subdivisions		26,211		(632	)		—		—			26,211		(632	)
Residential mortgage-backed securities		321,565		(2,988	)		20,963		(2,020	)		342,528		(5,008	)
Trust preferred securities		—		—			32,458		(7,416	)		32,458		(7,416	)
Corporate and other debt securities		34,240		(135	)		2,404		(96	)		36,644		(231	)
Equity securities		947		(9	)		12,787		(1,672	)		13,734		(1,681	)
Total	$	496,155	$	(8,154	)	$	68,612	$	(11,204	)	$	564,767	$	(19,358	)
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 Investment Securities Available for Sale

The contractual maturities of investment securities available for sale at March 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.

	March 31, 2013
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	895	$	905
Due after one year through five years		43,991		44,163
Due after five years through ten years		111,791		113,750
Due after ten years		185,574		180,825
Residential mortgage-backed securities		567,697		568,323
Equity securities		48,049		47,304
Total investment securities available for sale	$	957,997	$	955,270

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 months ended March 31, 2013 and 2012 were as follows:

	Three Months Ended March  31,
	2013			2012
	(in thousands)
Sales transactions:
Gross gains	$	3,380		$	140
Gross losses		—			(298	)
		3,380			(158	)
Maturities and other securities transactions:
Gross gains		608			13
Gross losses		(30	)		(12	)
		578			1
Total gains (losses) on securities transactions, net	$	3,958		$	(157	)

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 months ended March 31, 2013 and 2012:

	Three Months Ended March 31,
	2013			2012
	(in thousands)
Balance, beginning of period	$	33,290		$	29,070
Accretion of credit loss impairment due to an increase in expected cash flows		(113	)		(303	)
Balance, end of period	$	33,177		$	28,767