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Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2019
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, 2019 and 2018: 
 
2019
 
2018
 
(in thousands)
Change in projected benefit obligation:
 
 
 
Projected benefit obligation at beginning of year
$
157,364

 
$
170,566

Interest cost
6,113

 
5,542

Actuarial loss (gain)
20,001

 
(11,540
)
Benefits paid
(8,073
)
 
(7,204
)
Projected benefit obligation at end of year
$
175,405

 
$
157,364

Change in fair value of plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
210,508

 
$
222,124

Actual return (loss) on plan assets
32,835

 
(5,545
)
Employer contributions
1,351

 
1,133

Benefits paid
(8,073
)
 
(7,204
)
Fair value of plan assets at end of year*
$
236,621

 
$
210,508

 
 
 
 
Funded status of the plan


 


Asset recognized
$
61,216

 
$
53,144

Accumulated benefit obligation
175,405

 
157,364

 
*    Includes accrued interest receivable of $641 thousand and $660 thousand as of December 31, 2019 and 2018, 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 $952 thousand of the net actuarial loss reported in the following table as of December 31, 2019 as a component of net periodic pension expense during 2020. 
 
2019
 
2018
 
(in thousands)
Net actuarial loss
$
46,248

 
$
42,893

Prior service cost
357

 
392

Deferred tax benefit
(13,168
)
 
(12,205
)
Total
$
33,437

 
$
31,080


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: 
 
2019
 
2018
 
(in thousands)
Projected benefit obligation
$
20,081

 
$
18,708

Accumulated benefit obligation
20,081

 
18,708

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, 2019, 2018 and 2017: 
 
2019
 
2018
 
2017
 
(in thousands)
Interest cost
$
6,113

 
$
5,542

 
$
5,713

Expected return on plan assets
(16,453
)
 
(15,912
)
 
(15,163
)
Amortization of net loss
264

 
625

 
381

Total net periodic pension income
$
(10,076
)
 
$
(9,745
)
 
$
(9,069
)

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, 2019 and 2018 were as follows: 
 
2019
 
2018
 
(in thousands)
Net loss
$
3,619

 
$
9,917

Amortization of prior service cost
(35
)
 
(35
)
Amortization of actuarial loss
(264
)
 
(625
)
Total recognized in other comprehensive income
$
3,320

 
$
9,257

Total recognized in net periodic pension income and other comprehensive income/loss (before tax)
$
(6,721
)
 
$
(453
)

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)
2020
 
$
8,533

2021
 
8,815

2022
 
9,002

2023
 
9,238

2024
 
9,367

Thereafter
 
48,374


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, 2019, 2018 and 2017 were as follows: 
 
2019
 
2018
 
2017
Discount rate - projected benefit obligation
4.30
%
 
3.69
%
 
4.12
%
Discount rate - interest cost
3.99
%
 
3.31
%
 
3.61
%
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, 2019
 
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
32
%
 
$
75,633

 
$
75,633

 
$

 
$

U.S. Treasury securities
22

 
51,732

 
51,732

 

 

Corporate bonds
21

 
51,221

 

 
51,221

 

Mutual funds
18

 
42,119

 
42,119

 

 

Cash and money market funds
4

 
9,013

 
9,013

 

 

U.S. government agency securities
3

 
6,263

 

 
6,263

 

Total investments
100
%
 
$
235,981

 
$
178,497

 
$
57,484

 
$

 
 
 
 
 
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

 
$

 
$

U.S. Treasury securities
24

 
50,838

 
50,838

 

 

Corporate bonds
24

 
50,003

 

 
50,003

 

Mutual funds
18

 
37,178

 
37,178

 

 

Cash and money market funds
4

 
7,429

 
7,429

 

 

U.S. government agency securities
2

 
4,952

 

 
4,952

 

Total investments
100
%
 
$
209,847

 
$
154,892

 
$
54,955

 
$



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, 2019, 2018 and 2017: 
 
Restricted Stock Awards Outstanding
 
2019
 
2018
 
2017
Outstanding at beginning of year
1,720,968

 
1,771,702

 
2,100,816

Granted

 
1,263,144

 
608,786

Vested
(547,653
)
 
(1,128,521
)
 
(736,575
)
Forfeited
(114,634
)
 
(185,357
)
 
(201,325
)
Outstanding at end of year
1,058,681

 
1,720,968

 
1,771,702


Changes in RSUs Outstanding
The following table sets forth the changes in RSUs outstanding for the years ended December 31, 2019, 2018 and 2017: 
 
Restricted Stock Units Outstanding
 
2019
 
2018
 
2017
Outstanding at beginning of year
1,378,886

 
1,114,962

 
744,281

Acquired in business combinations

 
336,379

 

Granted
1,412,941

 
509,725

 
370,681

Vested
(500,204
)
 
(503,879
)
 

Forfeited
(133,368
)
 
(78,301
)
 

Outstanding at end of year
2,158,255

 
1,378,886

 
1,114,962


Stock Options Activity
The following table summarizes stock options activity as of December 31, 2019, 2018 and 2017 and changes during the years ended on those dates: 
 
2019
 
2018
 
2017
 
 
 
Weighted
Average
Exercise
 
 
 
Weighted
Average
Exercise
 
 
 
Weighted
Average
Exercise
Stock Options
Shares
 
Price
 
Shares
 
Price
 
Shares
 
Price
Outstanding at beginning of year
1,051,787

 
$
7

 
446,980

 
$
13

 
732,489

 
$
14

Acquired in business combinations
3,130,171

 
8

 
1,803,165

 
5

 

 

Exercised
(716,920
)
 
7

 
(975,325
)
 
5

 

 

Forfeited or expired
(11,522
)
 
8

 
(223,033
)
 
14

 
(285,509
)
 
16

Outstanding at end of year
3,453,516

 
8

 
1,051,787

 
7

 
446,980

 
13

Exercisable at year-end
3,339,517

 
8

 
604,003

 
7

 
446,980

 
13


Stock Options Outstanding and Exercisable
The following table summarizes information about stock options outstanding and exercisable at December 31, 2019: 
Options Outstanding and Exercisable
Range of Exercise Prices
 
Number of Options
 
Weighted Average
Remaining Contractual
Life in Years
 
Weighted Average
Exercise Price
$2-$4
 
124,105

 
2.5
 
$
3

4-6
 
153,317

 
5.4
 
5

6-8
 
2,718,834

 
1.8
 
7

8-10
 
112,000

 
7.9
 
10

10-12
 
231,261

 
1.8
 
11

 
 
3,339,517

 
2.2
 
8


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

 
55,510

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

 
17,885