Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2014

Compensation and Retirement Disclosure [Abstract]

Change in Projected Benefit Obligation

The following table sets forth the change in the projected benefit obligation, the change in fair value of plan assets and the funded status and amounts recognized in Valley’s consolidated financial statements for the qualified and non-qualified plans at December 31, 2014 and 2013:

	2014			2013
	(in thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	145,034		$	161,065
Service cost	—			7,104
Interest cost	6,897			6,645
Plan amendments	—			119
Actuarial loss (gain)	28,749			(13,003		)
Curtailments	—			(12,981		)
Benefits paid	(4,341		)	(3,915		)
Projected benefit obligation at end of year	$	176,339		$	145,034
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	184,910		$	138,857
Actual return on plan assets	13,813			24,723
Employer contributions	264			25,245
Benefits paid	(4,341		)	(3,915		)
Fair value of plan assets at end of year*	$	194,646		$	184,910
Funded status of the plan	$	18,307		$	39,876
Asset recognized	18,307			39,876
Accumulated benefit obligation	176,339			145,034

*    Includes accrued interest receivable of $652 thousand and $704 thousand as of December 31, 2014 and 2013, respectively.

Component of Net Periodic Pension Expense

Valley expects to recognize approximately $821 thousand of the net actuarial loss reported in the following table as of December 31, 2014 as a component of net periodic pension expense during 2015.

	2014			2013
	(in thousands)
Net actuarial loss	$	43,091		$	15,415
Deferred tax benefit	(18,031		)	(6,430		)
Total	$	25,060		$	8,985

Accumulated Benefit Obligation in Excess of Plan

The non-qualified plans had a projected benefit obligation, accumulated benefit obligation, and fair value of plan assets as follows:

	2014		2013
	(in thousands)
Projected benefit obligation	$	18,118	$	15,390
Accumulated benefit obligation	18,118		15,390
Fair value of plan assets	—		—

Actuarial Present Value of Benefit Obligations

The weighted average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of benefit obligations for the qualified and non-qualified plans as of December 31, 2014 and 2013 were as follows:

	2014		2013
Discount rate	4.02	%	4.89	%
Future compensation increase rate	—		2.75

Components of Net Periodic Pension Expense for Qualified and Non-Qualified Plans

The net periodic pension expense for the qualified and non-qualified plans included the following components for the years ended December 31, 2014, 2013, and 2012:

	2014			2013			2012
	(in thousands)
Service cost	$	—		$	7,104		$	7,338
Interest cost	6,897			6,645			6,516
Expected return on plan assets	(12,967		)	(12,015		)	(8,937		)
Amortization of prior service cost	—			898			873
Amortization of net loss	226			1,970			2,401
Recognized loss due to curtailment	—			750			—
Total net periodic pension expense	$	(5,844	)	$	5,352		$	8,191

Qualified and Non-Qualified Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income or Loss

Other changes in the qualified and non-qualified plan assets and benefit obligations recognized in other comprehensive income or loss for the years ended December 31, 2014 and 2013 were as follows:

	2014			2013
	(in thousands)
Net loss (gain)	$	27,902		$	(37,955	)
Prior service cost	—			119
Recognized prior service cost	—			(2,386		)
Amortization of actuarial loss	(226		)	(1,970		)
Total recognized in other comprehensive income	$	27,676		$	(42,192	)
Total recognized in net periodic pension expense and other comprehensive income (before tax)	$	21,833		$	(36,840	)

Schedule of Expected Future Benefit Payments

The benefit payments, which reflect expected future service, as appropriate, expected to be paid in future years are presented in the following table:

Year	Amount
	(in thousands)
2015	$	7,116
2016	7,337
2017	7,532
2018	7,792
2019	8,160
2020 to 2024	45,680

Weighted Average Discount Rate

The weighted average discount rate, expected long-term rate of return on assets and rate of compensation increase used in determining Valley’s pension expense for the years ended December 31, 2014, 2013 and 2012 were as follows:

	2014		2013		2012
Discount rate*	4.89	%	4.26/4.87%		4.87	%
Expected long-term return on plan assets	7.50	%	7.50	%	7.50	%
Rate of compensation increase	N/A		2.75	%	2.75	%

* The discount rate for 2013 increased from 4.26 percent to 4.87 percent due to the plans’ freeze and remeasurement at June 30, 2013.

Fair Value Measurement

The following table presents the qualified plan weighted-average asset allocations by asset category that are measured at fair value on a recurring basis by level within the fair value hierarchy under ASC Topic 820. Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 3 for further details regarding the fair value hierarchy.

					Fair Value Measurements at Reporting Date Using:
	% of Total Investments		December 31, 2014		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets:
Investments:
Equity securities	41	%	$	80,174	$	80,174	$	—	$	—
Corporate bonds	22		42,750		—		42,750		—
Mutual funds	18		35,709		35,709		—		—
U.S. Treasury securities	11		21,604		21,604		—		—
Cash and money market funds	7		12,895		12,895		—		—
U.S. government agency securities	1		862		—		862		—
Total investments	100	%	$	193,994	$	150,382	$	43,612	$	—

					Fair Value Measurements at Reporting Date Using:
	% of Total Investments		December 31, 2013		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Assets:
Investments:
Equity securities	42	%	$	77,565	$	77,565	$	—	$	—
Corporate bonds	23		41,863		—		41,863		—
Mutual funds	18		33,690		33,690		—		—
U.S. Treasury securities	10		19,057		19,057		—		—
Cash and money market funds	5		9,939		9,939		—		—
U.S. government agency securities	1		1,896		—		1,896		—
Trust preferred securities	1		196		196		—		—
Total investments	100	%	$	184,206	$	140,447	$	43,759	$	—

Changes in Restricted Stock Awards Outstanding

The following table sets forth the changes in restricted stock awards outstanding for the years ended December 31, 2014, 2013 and 2012:

	Restricted Stock Awards Outstanding
	2014		2013		2012
Outstanding at beginning of year	1,709,312		1,492,060		316,488
Granted	1,488,960		479,541		1,423,152
Vested	(524,663	)	(217,305	)	(192,870	)
Forfeited	(98,993	)	(44,984	)	(54,710	)
Outstanding at end of year	2,574,616		1,709,312		1,492,060

Changes in Director's Restricted Stock Awards

The following table sets forth the changes in director’s restricted stock awards outstanding for the years ended December 31, 2014, 2013 and 2012:

	Restricted Stock Awards Outstanding
	2014		2013		2012
Outstanding at beginning of year	121,792		117,147		106,544
Granted	—		26,828		28,902
Vested	(23,706	)	(21,963	)	(18,299	)
Forfeited	—		(220	)	—
Outstanding at end of year	98,086		121,792		117,147

Stock Options Activity

Summary of stock options activity as of December 31, 2014, 2013 and 2012 and changes during the years ended on those dates is presented below:

	2014				2013				2012
			Weighted Average Exercise				Weighted Average Exercise				Weighted Average Exercise
Stock Options	Shares		Price		Shares		Price		Shares		Price
Outstanding at beginning of year	2,322,593		$	17	2,860,081		$	17	3,000,406		$	17
Assumed in acquisition*	—		—		—		—		356,490		17
Exercised	—		—		—		—		(1,019	)	12
Forfeited or expired	(494,002	)	19		(537,488	)	19		(495,796	)	16
Outstanding at end of year	1,828,591		17		2,322,593		17		2,860,081		17
Exercisable at year-end	1,828,591		17		2,320,696		17		2,756,007		18

*    Stock options acquired in connection with the State Bancorp acquisition.

Stock Options Outstanding

The following table summarizes information about stock options outstanding and exercisable at December 31, 2014:

Options Outstanding and Exercisable
Range of Exercise Prices	Number of Options	Weighted Average Remaining Contractual Life in Years	Weighted Average Exercise Price
$10-14	148,527	5.8	$	12
14-15	459,267	3.2	15
15-17	180,734	1.9	17
17-18	495,785	0.9	18
18-21	544,278	1.7	19
	1,828,591	2.2	17

The aggregate intrinsic value of options outstanding and exercisable was immaterial at December 31, 2014.