XML 59 R42.htm IDEA: XBRL DOCUMENT v3.3.1.900
Benefit Plans (Tables)
 12 Months Ended
Dec. 31, 2015
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, 2015 and 2014: 
 
2015
 
2014
 
(in thousands)
Change in projected benefit obligation:
 
 
 
Projected benefit obligation at beginning of year
$
176,339

 
$
145,034

Interest cost
6,889

 
6,897

Actuarial (gain) loss
(17,177
)
 
28,749

Benefits paid
(8,390
)
 
(4,341
)
Projected benefit obligation at end of year
$
157,661

 
$
176,339

Change in fair value of plan assets:
 
 
 
Fair value of plan assets at beginning of year
$
194,646

 
$
184,910

Actual return on plan assets
2,875

 
13,813

Employer contributions
283

 
264

Benefits paid
(8,390
)
 
(4,341
)
Fair value of plan assets at end of year*
$
189,414

 
$
194,646

 
 
 
 
Funded status of the plan
$
31,753

 
$
18,307

Asset recognized
31,753

 
18,307

Accumulated benefit obligation
157,661

 
176,339

 
*    Includes accrued interest receivable of $607 thousand and $652 thousand as of December 31, 2015 and 2014, respectively.
Component of Net Periodic Pension Expense
Valley expects to recognize approximately $290 thousand of the net actuarial loss reported in the following table as of December 31, 2015 as a component of net periodic pension expense during 2016. 
 
2015
 
2014
 
(in thousands)
Net actuarial loss
$
36,271

 
$
43,091

Deferred tax benefit
(15,118
)
 
(18,031
)
Total
$
21,153

 
$
25,060
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: 
 
2015
 
2014
 
(in thousands)
Projected benefit obligation
$
17,411

 
$
18,118

Accumulated benefit obligation
17,411

 
18,118

Fair value of plan assets
—

 
—
Components of Net Periodic Pension Expense for Qualified and Non-Qualified Plans
The net periodic pension income and expense for the qualified and non-qualified plans included the following components for the years ended December 31, 2015, 2014 and 2013: 
 
2015
 
2014
 
2013
 
(in thousands)
Service cost
$
—

 
$
—

 
$
7,104

Interest cost
6,889

 
6,897

 
6,645

Expected return on plan assets
(14,023
)
 
(12,967
)
 
(12,015
)
Amortization of prior service cost
—

 
—

 
898

Amortization of net loss
790

 
226

 
1,970

Recognized loss due to curtailment
—

 
—

 
750

Total net periodic pension (income) expense
$
(6,344
)
 
$
(5,844
)
 
$
5,352
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 loss for the years ended December 31, 2015 and 2014 were as follows: 
 
2015
 
2014
 
(in thousands)
Net (gain) loss
$
(6,030
)
 
$
27,902

Amortization of actuarial loss
(790
)
 
(226
)
Total recognized in other comprehensive income
$
(6,820
)
 
$
27,676

Total recognized in net periodic pension (income) expense and other comprehensive loss (before tax)
$
(13,163
)
 
$
21,833
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)
2016
 
$
6,447

2017
 
6,818

2018
 
7,181

2019
 
7,654

2020
 
7,964

2021 to 2025
 
43,909
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, 2015, 2014 and 2013 were as follows: 
 
2015
 
2014
 
2013
Discount rate*
4.02
%
 
4.89
%
 
4.26/4.87%

Expected long-term return on plan assets
7.50
%
 
7.50
%
 
7.50
%
Rate of compensation increase
N/A

 
N/A

 
2.75
%
 
*
The discount rate for 2013 increased from 4.26 percent to 4.87 percent due to the plans’ freeze and re-measurement 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, 2015
 
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
%
 
$
76,578

 
$
76,578

 
$
—

 
$
—

Corporate bonds
22

 
41,786

 
—

 
41,786

 
—

Mutual funds
19

 
36,052

 
36,052

 
—

 
—

U.S. Treasury securities
12

 
22,130

 
22,130

 
—

 
—

Cash and money market funds
6

 
11,913

 
11,913

 
—

 
—

U.S. government agency securities
*

 
348

 
—

 
348

 
—

Total investments
100
%
 
$
188,807

 
$
146,673

 
$
42,134

 
$
—

 
 
 
 
 
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

 
$
—


 
*
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 outstanding for the years ended December 31, 2015, 2014 and 2013: 
 
Restricted Stock Awards Outstanding
 
2015
 
2014
 
2013
Outstanding at beginning of year
2,574,616

 
1,709,312

 
1,492,060

Granted
886,427

 
1,488,960

 
479,541

Vested
(559,958
)
 
(524,663
)
 
(217,305
)
Forfeited
(145,947
)
 
(98,993
)
 
(44,984
)
Outstanding at end of year
2,755,138

 
2,574,616

 
1,709,312
Stock Options Activity
The following table summarizes stock options activity as of December 31, 2015, 2014 and 2013 and changes during the years ended on those dates: 
 
2015
 
2014
 
2013
 
 
 
Weighted
Average
Exercise
 
 
 
Weighted
Average
Exercise
 
 
 
Weighted
Average
Exercise
Stock Options
Shares
 
Price
 
Shares
 
Price
 
Shares
 
Price
Outstanding at beginning of year
1,828,591

 
$
17

 
2,322,593

 
$
17

 
2,860,081

 
$
17

Granted
100,000

 
11

 
—

 
—

 
—

 
—

Forfeited or expired
(545,226
)
 
18

 
(494,002
)
 
19

 
(537,488
)
 
19

Outstanding at end of year
1,383,365

 
16

 
1,828,591

 
17

 
2,322,593

 
17

Exercisable at year-end
1,283,365

 
16

 
1,828,591

 
17

 
2,320,696

 
17
Stock Options Outstanding
The following table summarizes information about stock options outstanding and exercisable at December 31, 2015: 
Options Outstanding and Exercisable
 
Range of Exercise Prices
 
Number of Options
 
Weighted Average
Remaining Contractual
Life in Years
 
Weighted Average
Exercise Price
 
$10-14
 
148,315

 
4.8

 
$
12

 
14-15
 
453,074

 
2.2

 
15

 
15-17
 
176,723

 
0.9

 
17

 
17-18
 
36,496

 
0.1

 
17

 
18-21
 
468,757

 
0.9

 
19

 
 
 
1,283,365

 
1.8

 
16

 
The aggregate intrinsic value of options outstanding and exercisable was immaterial at December 31, 2015.
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, 2015, 2014 and 2013: 
 
Restricted Stock Awards Outstanding
 
2015
 
2014
 
2013
Outstanding at beginning of year
98,086

 
121,792

 
117,147

Granted
—

 
—

 
26,828

Vested
(17,969
)
 
(23,706
)
 
(21,963
)
Forfeited
—

 
—

 
(220
)
Outstanding at end of year
80,117

 
98,086

 
121,792