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Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2018
Retirement Benefits [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, 2018 and 2017: 
 
2018
 
2017
 
(in thousands)
Change in projected benefit obligation:
 
 
 
Projected benefit obligation at beginning of year
$
170,566

 
$
161,306

Interest cost
5,542

 
5,713

Actuarial (gain) loss
(11,540
)
 
10,148

Benefits paid
(7,204
)
 
(6,601
)
Projected benefit obligation at end of year
$
157,364

 
$
170,566

Change in fair value of plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
222,124

 
$
206,639

Actual (loss) return on plan assets
(5,545
)
 
21,468

Employer contributions
1,133

 
618

Benefits paid
(7,204
)
 
(6,601
)
Fair value of plan assets at end of year*
$
210,508

 
$
222,124

 
 
 
 
Funded status of the plan


 


Asset recognized
$
53,144

 
$
51,558

Accumulated benefit obligation
157,364

 
170,566

 
*    Includes accrued interest receivable of $660 thousand and $993 thousand as of December 31, 2018 and 2017, respectively.
Components of Net Periodic Pension Expense
Amounts recognized as a component of accumulated other comprehensive loss as of year-end that have not been recognized as a component of the net periodic pension expense for Valley’s qualified and non-qualified plans are presented in the following table. Valley expects to recognize approximately $309 thousand of the net actuarial loss reported in the following table as of December 31, 2018 as a component of net periodic pension expense during 2019. 
 
2018
 
2017
 
(in thousands)
Net actuarial loss
$
42,893

 
$
33,602

Deferred tax benefit
(12,205
)
 
(14,044
)
Total
$
30,688

 
$
19,558

Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for Non-Qualified Plans
The non-qualified plans had a projected benefit obligation, accumulated benefit obligation, and fair value of plan assets as follows: 
 
2018
 
2017
 
(in thousands)
Projected benefit obligation
$
18,708

 
$
20,175

Accumulated benefit obligation
18,708

 
20,175

Fair value of plan assets

 

Components of Net Periodic Pension Income for Qualified and Non-Qualified Plans
The net periodic pension income for the qualified and non-qualified plans reported within other non-interest expense (due to the adoption of ASU No. 2017-07) included the following components for the years ended December 31, 2018, 2017 and 2016: 
 
2018
 
2017
 
2016
 
(in thousands)
Interest cost
$
5,542

 
$
5,713

 
$
6,681

Expected return on plan assets
(15,912
)
 
(15,163
)
 
(14,539
)
Amortization of net loss
625

 
381

 
294

Total net periodic pension income
$
(9,745
)
 
$
(9,069
)
 
$
(7,564
)
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/loss for the years ended December 31, 2018 and 2017 were as follows: 
 
2018
 
2017
 
(in thousands)
Net loss
$
9,917

 
$
3,843

Amortization of prior service cost
(35
)
 
(35
)
Amortization of actuarial loss
(625
)
 
(381
)
Total recognized in other comprehensive income
$
9,257

 
$
3,427

Total recognized in net periodic pension income and other comprehensive income/loss (before tax)
$
(453
)
 
$
(5,607
)
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)
2019
 
$
8,213

2020
 
8,491

2021
 
8,764

2022
 
8,938

2023
 
9,182

Thereafter
 
47,835

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, 2018, 2017 and 2016 were as follows: 
 
2018
 
2017
 
2016
Discount rate
3.69
%
 
4.12
%
 
4.33
%
Expected long-term return on plan assets
7.50
%
 
7.50
%
 
7.50
%
Rate of compensation increase
N/A

 
N/A

 
N/A


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, 2018
 
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
28
%
 
$
59,447

 
$
59,447

 
$

 
$

Corporate bonds
24

 
50,889

 

 
50,889

 

Mutual funds
17

 
36,293

 
36,293

 

 

U.S. Treasury securities
24

 
50,838

 
50,838

 

 

Cash and money market funds
4

 
7,429

 
7,429

 

 

U.S. government agency securities
3

 
4,952

 

 
4,952

 

Total investments
100
%
 
$
209,848

 
$
154,007

 
$
55,841

 
$

 
 
 
 
 
Fair Value Measurements at Reporting Date Using:
 
% of Total
Investments
 
December 31, 2017
 
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
38
%
 
$
84,791

 
$
84,791

 
$

 
$

Corporate bonds
22

 
47,471

 

 
47,471

 

Mutual funds
23

 
48,814

 
48,814

 

 

U.S. Treasury securities
13

 
28,671

 
28,671

 

 

Cash and money market funds
4

 
9,522

 
9,522

 

 

U.S. government agency securities
*

 
1,862

 

 
1,862

 

Total investments
100
%
 
$
221,131

 
$
171,798

 
$
49,333

 
$


 
*
Represents less than one percent of total investments.
Changes in Restricted Stock Awards Outstanding
The following table sets forth the changes in restricted stock awards (RSAs) outstanding for the years ended December 31, 2018, 2017 and 2016: 
 
Restricted Stock Awards Outstanding
 
2018
 
2017
 
2016
Outstanding at beginning of year
1,771,702

 
2,100,816

 
2,755,138

Granted
1,263,144

 
608,786

 
544,307

Vested
(1,128,521
)
 
(736,575
)
 
(1,050,293
)
Forfeited
(185,357
)
 
(201,325
)
 
(148,336
)
Outstanding at end of year
1,720,968

 
1,771,702

 
2,100,816

Changes in RSUs Outstanding
The following table sets forth the changes in RSUs outstanding for the years ended December 31, 2018, 2017 and 2016: 
 
Restricted Stock Units Outstanding
 
2018
 
2017
 
2016
Outstanding at beginning of year
1,114,962

 
744,281

 
313,212

Acquired from USAB
336,379

 

 

Granted
509,725

 
370,681

 
431,069

Vested
(503,879
)
 

 

Forfeited
(78,301
)
 

 

Outstanding at end of year
1,378,886

 
1,114,962

 
744,281

Stock Options Activity
The following table summarizes stock options activity as of December 31, 2018, 2017 and 2016 and changes during the years ended on those dates: 
 
2018
 
2017
 
2016
 
 
 
Weighted
Average
Exercise
 
 
 
Weighted
Average
Exercise
 
 
 
Weighted
Average
Exercise
Stock Options
Shares
 
Price
 
Shares
 
Price
 
Shares
 
Price
Outstanding at beginning of year
446,980

 
$
13

 
732,489

 
$
14

 
1,383,365

 
$
16

Acquired from USAB
1,803,165

 
5

 

 

 

 

Exercised
(975,325
)
 
5

 

 

 

 

Forfeited or expired
(223,033
)
 
14

 
(285,509
)
 
16

 
(650,876
)
 
18

Outstanding at end of year
1,051,787

 
7

 
446,980

 
13

 
732,489

 
14

Exercisable at year-end
604,003

 
7

 
446,980

 
13

 
632,489

 
14



Stock Options Outstanding and Exercisable
The following table summarizes information about stock options outstanding and exercisable at December 31, 2018: 
Options Outstanding and Exercisable
Range of Exercise Prices
 
Number of Options
 
Weighted Average
Remaining Contractual
Life in Years
 
Weighted Average
Exercise Price
$2-$4
 
40,870

 
2.9
 
$
3

4-6
 
284,912

 
5.1
 
5

6-10
 
42,094

 
7.6
 
7

10-18
 
236,127

 
1.9
 
12

 
 
604,003

 
3.9
 
7

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, 2018, 2017 and 2016: 
 
Restricted Stock Awards Outstanding
 
2018
 
2017
 
2016
Outstanding at beginning of year
17,885

 
55,510

 
80,117

Vested
(17,885
)
 
(37,625
)
 
(24,607
)
Outstanding at end of year

 
17,885

 
55,510