Subsequent Event

12 Months Ended

Dec. 31, 2018

Subsequent Events [Abstract]

Subsequent Events

SUBSEQUENT EVENTS (Note 23)

During February 2019, Valley announced that the Bank entered into an agreement for the sale-leaseback of 29 of its currently owned properties. The properties, consist of 1 corporate location and 28 branches. Valley expects to realize a material pre-tax gain net of transaction related expenses. The transaction is expected to close in the first or second quarter of 2019 and is subject to change or termination due to buyer due diligence on the identified properties.

Valley has previously invested in mobile solar generators sold and managed by DC Solar, which were included in other assets on the balance sheet and the tax credit investments in Note 14. For reasons that were not known to Valley, DC Solar had its assets frozen in December 2018. DC Solar filed for Chapter 11 bankruptcy protection in February 2019. In February 2019, an affidavit from a Federal Bureau of Investigation (FBI) special agent stated that DC Solar was operating a fraudulent "Ponzi-like scheme" and that the majority of mobile solar generators sold to investors and managed by DC Solar and the majority of the related lease revenues claimed to have been received by DC Solar may not have existed. Certain investors in DC Solar, including Valley, received tax credits for making these renewable resource investments. Valley has claimed tax credit benefits of approximately $22.8 million in the consolidated financial statements between 2013 through 2015. If the allegations set forth in the declaration filed by the FBI are proven to be accurate, up to the entire amount of the tax credits claimed by Valley could potentially be disallowed. Based on the information known as of the date of this Annual Report on the Form 10-K, Valley believes that this has not met the more-likely-than-not criterion to record an uncertain tax position liability. As a result of the information in the FBI declaration, Valley is evaluating whether or not an unrecognized tax liability exists under ASC 740 for an uncertain tax position in 2019 for at least part, if not potentially all, of the tax credit benefits Valley has claimed.