Benefit Plans (Tables)

12 Months Ended

Dec. 31, 2013

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, 2013 and 2012:

	2013			2012
	(in thousands)
Change in projected benefit obligation:
Projected benefit obligation at beginning of year	$	161,065		$	135,678
Service cost		7,104			7,338
Interest cost		6,645			6,516
Plan amendments		119			944
Actuarial (gain) loss		(13,003	)		14,326
Curtailments		(12,981	)		—
Benefits paid		(3,915	)		(3,737	)
Projected benefit obligation at end of year	$	145,034		$	161,065
Change in fair value of plan assets:
Fair value of plan assets at beginning of year	$	138,857		$	95,746
Actual return on plan assets		24,723			11,516
Employer contributions		25,245			35,332
Benefits paid		(3,915	)		(3,737	)
Fair value of plan assets at end of year*	$	184,910		$	138,857
Funded status of the plan	$	39,876		$	(22,208	)
Liability recognized	$	39,876		$	(22,208	)
Accumulated benefit obligation	$	145,034		$	144,390

* Includes accrued interest receivable of $704 thousand and $526 thousand as of December 31, 2013 and 2012, respectively.

Component of Net Periodic Pension Expense

Valley expects to recognize approximately $243 thousand of the net actuarial loss reported in the following table as of December 31, 2013 as a component of net periodic pension expense during 2014.

	2013			2012
	(in thousands)
Net actuarial loss	$	15,415		$	55,339
Prior service cost		—			2,267
Deferred tax benefit		(6,430	)		(24,077	)
Total	$	8,985		$	33,529

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:

	2013		2012
	(in thousands)
Projected benefit obligation	$	15,390	$	17,511
Accumulated benefit obligation		15,390		16,866
Fair value of plan assets		—		—

Actuarial Present Value of Benefit Obligations

The weighted average discount rate and rate of increase in future compensation levels used in determining the actuarial present value of benefit obligations for the qualified and non-qualified plans as of December 31, 2013 and 2012 were as follows:

	2013			2012
Discount rate		4.89	%		4.26	%
Future compensation increase rate		2.75			2.75

Components of Net Periodic Pension Expense for Qualified and Non-Qualified Plans

The net periodic pension expense for the qualified and non-qualified plans included the following components for the years ended December 31, 2013, 2012, and 2011:

	2013			2012			2011
	(in thousands)
Service cost	$	7,104		$	7,338		$	6,018
Interest cost		6,645			6,516			6,242
Expected return on plan assets		(12,015	)		(8,937	)		(6,698	)
Amortization of prior service cost		898			873			762
Amortization of net loss		1,970			2,401			1,540
Recognized loss due to curtailment		750			—			—
Total net periodic pension expense	$	5,352		$	8,191		$	7,864

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 or loss for the years ended December 31, 2013 and 2012 were as follows:

	2013			2012
	(in thousands)
Net (gain) loss	$	(37,955	)	$	11,747
Prior service cost		119			944
Recognized prior service cost		(2,386	)		(873	)
Amortization of actuarial loss		(1,970	)		(2,401	)
Total recognized in other comprehensive income	$	(42,192	)	$	9,417
Total recognized in net periodic pension expense and other comprehensive income (before tax)	$	(36,840	)	$	17,608

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)
2014	$	6,670
2015		6,901
2016		7,139
2017		7,344
2018		7,613
2019 to 2023		39,170

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, 2013, 2012 and 2011 were as follows:

	2013			2012			2011
Discount rate*		4.26/4.87	%		4.87	%		5.75	%
Expected long-term return on plan assets		7.50			7.50			8.00
Rate of compensation increase		2.75			2.75			3.25

* The discount rate for 2013 increased from 4.26 percent to 4.87 percent due to the plans’ freeze and remeasurement 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, 2013		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		42	%	$	77,565	$	77,565	$	—	$	—
Corporate bonds		23			41,863		—		41,863		—
Mutual funds		18			33,690		33,690		—		—
U.S. Treasury securities		10			19,057		19,057		—		—
Cash and money market funds		5			9,939		9,939		—		—
U.S. government agency securities		1			1,896		—		1,896		—
Trust preferred securities		1			196		196		—		—
Total investments		100	%	$	184,206	$	140,447	$	43,759	$	—

						Fair Value Measurements at Reporting Date Using:
	% of Total Investments			December 31, 2012		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		49	%	$	67,653	$	67,653	$	—	$	—
Corporate bonds		20			28,153		—		28,153		—
Mutual funds		10			13,545		13,545		—		—
U.S. Treasury securities		10			13,249		13,249		—		—
Cash and money market funds		9			12,355		12,355		—		—
U.S. government agency securities		1			1,615		—		1,615		—
Trust preferred securities		1			1,761		1,761		—		—
Total investments		100	%	$	138,331	$	108,563	$	29,768	$	—

Stock Options Activity

Summary of stock options activity as of December 31, 2013, 2012 and 2011 and changes during the years ended on those dates is presented below:

	2013					2012					2011
				Weighted					Weighted					Weighted
				Average					Average					Average
				Exercise					Exercise					Exercise
Stock Options	Shares			Price		Shares			Price		Shares			Price
Outstanding at beginning of year		2,860,081		$	17		3,000,406		$	17		3,511,173		$	18
Assumed in acquisition*		—			—		356,490			17		—			—
Exercised		—			—		(1,019	)		12		—			—
Forfeited or expired		(537,488	)		19		(495,796	)		16		(510,767	)		14
Outstanding at end of year		2,322,593			17		2,860,081			17		3,000,406			17
Exercisable at year-end		2,320,696			17		2,756,007			18		2,737,814			18

* Stock options acquired in connection with the State Bancorp acquisition.

Stock Options Outstanding

The following table summarizes information about stock options outstanding at December 31, 2013:

	Options Outstanding						Options Exercisable
Range of Exercise Prices	Number  of Options Outstanding		Weighted Average  Remaining Contractual Life in Years		Weighted Average  Exercise Price		Number of Options Exercisable		Weighted Average  Exercise Price
$10-14		149,266		6.8	$	12		147,641	$	12
14-15		465,404		4.2		15		465,404		15
15-17		181,594		2.9		17		181,406		17
17-18		500,864		1.9		18		500,817		18
18-21		1,025,465		1.8		19		1,025,428		19
		2,322,593		2.7		17		2,320,696		17

Changes in Restricted Stock Awards Outstanding

The following table sets forth the changes in restricted stock awards outstanding for the years ended December 31, 2013, 2012 and 2011:

	Restricted Stock Awards Outstanding
	2013			2012			2011
Outstanding at beginning of year		1,492,060			316,488			537,653
Granted		479,541			1,423,152			14,866
Vested		(217,305	)		(192,870	)		(232,274	)
Forfeited		(44,984	)		(54,710	)		(3,757	)
Outstanding at end of year		1,709,312			1,492,060			316,488

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, 2013, 2012 and 2011:

	Restricted Stock Awards Outstanding
	2013			2012			2011
Outstanding at beginning of year		117,147			106,544			104,646
Granted		26,828			28,902			24,607
Vested		(21,963	)		(18,299	)		(22,287	)
Forfeited		(220	)		—			(422	)
Outstanding at end of year		121,792			117,147			106,544