XML 56 R42.htm IDEA: XBRL DOCUMENT v3.20.4
Benefit Plans (Tables)
12 Months Ended
Dec. 31, 2020
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, 2020 and 2019: 
20202019
 (in thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year$175,405 $157,364 
Interest cost4,941 6,113 
Actuarial loss 18,813 20,001 
Benefits paid(8,310)(8,073)
Projected benefit obligation at end of year$190,849 $175,405 
Change in fair value of plan assets:
Fair value of plan assets at beginning of year$236,621 $210,508 
Actual return on plan assets30,987 32,835 
Employer contributions1,353 1,351 
Benefits paid(8,310)(8,073)
Fair value of plan assets at end of year*$260,651 $236,621 
Funded status of the plan
Asset recognized$69,802 $61,216 
Accumulated benefit obligation190,849 175,405 
*    Includes accrued interest receivable of $623 thousand and $641 thousand as of December 31, 2020 and 2019, 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 $1.5 million of the net actuarial loss reported in the following table as of December 31, 2020 as a component of net periodic pension expense during 2021. 
20202019
 (in thousands)
Net actuarial loss$50,272 $46,248 
Prior service cost321 357 
Deferred tax benefit(14,132)(13,168)
Total$36,461 $33,437 
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: 
20202019
 (in thousands)
Projected benefit obligation$20,513 $20,081 
Accumulated benefit obligation20,513 20,081 
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 included the following components for the years ended December 31, 2020, 2019 and 2018: 
202020192018
 (in thousands)
Interest cost$4,941 $6,113 $5,542 
Expected return on plan assets(17,200)(16,453)(15,912)
Amortization of net loss1,003 264 625 
Total net periodic pension income$(11,256)$(10,076)$(9,745)
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 for the years ended December 31, 2020 and 2019 were as follows: 
20202019
 (in thousands)
Net loss $5,026 $3,619 
Amortization of prior service cost(136)(35)
Amortization of actuarial loss(1,003)(264)
Total recognized in other comprehensive income$3,887 $3,320 
Total recognized in net periodic pension income and other comprehensive income (before tax)$(7,233)$(6,721)
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: 
YearAmount
 (in thousands)
2021$8,889 
20229,123 
20239,389 
20249,579 
20259,726 
Thereafter49,314 
Weighted Average Discount Rate
The weighted average discount rate, expected long-term rate of return on assets and rate of compensation increase used in determining Valley’s pension expense for the years ended December 31, 2020, 2019 and 2018 were as follows: 
202020192018
Discount rate - projected benefit obligation3.29 %4.30 %3.69 %
Discount rate - interest cost2.62 %3.99 %3.31 %
Expected long-term return on plan assets7.50 %7.50 %7.50 %
Rate of compensation increaseN/AN/AN/A
Fair Value Measurements
The following table presents the qualified plan weighted-average asset allocations by asset category that are measured at fair value on a recurring basis by level within the fair value hierarchy under ASC Topic 820. Financial assets are classified in their entirety based on the lowest level of input that is significant to the fair value measurement. See Note 3 for further details regarding the fair value hierarchy. 
   Fair Value Measurements at Reporting Date Using:
 % of Total
Investments
December 31, 2020Quoted Prices
in Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 ($ in thousands)
Assets:
Investments:
Equity securities37 %$94,434 $94,434 $— $— 
U.S. Treasury securities20 52,549 52,549 — — 
Corporate bonds20 51,410 — 51,410 — 
Mutual funds18 48,041 48,041 — — 
U.S. government agency securities8,174 — 8,174 — 
Cash and money market funds5,420 5,420 — — 
Total investments100 %$260,028 $200,444 $59,584 $— 
   Fair Value Measurements at Reporting Date Using:
 % of Total
Investments
December 31, 2019Quoted Prices
in Active Markets
for Identical
Assets (Level 1)
Significant
Other
Observable Inputs
(Level 2)
Significant
Unobservable
Inputs
(Level 3)
 ($ in thousands)
Assets:
Investments:
Equity securities32 %$75,633 $75,633 $— $— 
U.S. Treasury securities22 51,732 51,732 — — 
Corporate bonds21 51,221 — 51,221 — 
Mutual funds18 42,119 42,119 — — 
U.S. government agency securities6,263 — 6,263 — 
Cash and money market funds9,013 9,013 — — 
Total investments100 %$235,981 $178,497 $57,484 $— 
Changes in RSUs Outstanding
The following table sets forth the changes in RSUs outstanding for the years ended December 31, 2020, 2019 and 2018: 
Restricted Stock Units Outstanding
 202020192018
Outstanding at beginning of year2,158,255 1,378,886 1,114,962 
Acquired in business combinations— — 336,379 
Granted2,030,026 1,412,941 509,725 
Vested(879,085)(500,204)(503,879)
Forfeited(80,537)(133,368)(78,301)
Outstanding at end of year3,228,659 2,158,255 1,378,886 
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, 2020, 2019 and 2018: 
Restricted Stock Awards Outstanding
 202020192018
Outstanding at beginning of year1,058,681 1,720,968 1,771,702 
Granted— — 1,263,144 
Vested(610,607)(547,653)(1,128,521)
Forfeited(34,373)(114,634)(185,357)
Outstanding at end of year413,701 1,058,681 1,720,968 
Stock Options Activity
The following table summarizes stock options activity as of December 31, 2020, 2019 and 2018 and changes during the years ended on those dates: 
 202020192018
Weighted
Average
Exercise
Weighted
Average
Exercise
Weighted
Average
Exercise
Stock OptionsSharesPriceSharesPriceSharesPrice
Outstanding at beginning of year3,453,516 $1,051,787 $446,980 $13 
Acquired in business combinations— — 3,130,171 1,803,165 
Exercised(249,308)(716,920)(975,325)
Forfeited or expired(217,861)11 (11,522)(223,033)14 
Outstanding at end of year2,986,347 3,453,516 1,051,787 
Exercisable at year-end2,986,347 3,339,517 604,003 
Stock Options Outstanding and Exercisable
The following table summarizes information about stock options outstanding and exercisable at December 31, 2020: 
Options Outstanding and Exercisable
Range of Exercise PricesNumber of OptionsWeighted Average
Remaining Contractual
Life in Years
Weighted Average
Exercise Price
$2-$4
91,500 1.6$
4-6
149,248 4.3
6-8
2,687,999 0.9
8-10
32,000 7.310 
10-12
25,600 7.710 
2,986,347 1.3