Cover Page
Cover Page - USD ($) $ in Billions | 12 Months Ended | ||
Dec. 31, 2019 | Mar. 10, 2020 | Jun. 30, 2019 | |
Entity Information [Line Items] | |||
Document Type | 10-K | ||
Document Annual Report | true | ||
Document Period End Date | Dec. 31, 2019 | ||
Document Transition Report | false | ||
Entity File Number | 1-11277 | ||
Entity Registrant Name | VALLEY NATIONAL BANCORP | ||
Entity Incorporation, State or Country Code | NJ | ||
Entity Tax Identification Number | 22-2477875 | ||
Entity Address, Address Line One | One Penn Plaza | ||
Entity Address, City or Town | New York, | ||
Entity Address, State or Province | NY | ||
Entity Address, Postal Zip Code | 10119 | ||
City Area Code | 973 | ||
Local Phone Number | 305-8800 | ||
Entity Well-known Season Issuer | Yes | ||
Entity Voluntary Filers | No | ||
Entity Current Reporting Status | Yes | ||
Entity Interactive Data Current | Yes | ||
Entity Filer Category | Large Accelerated Filer | ||
Entity Small Business | false | ||
Entity Emerging Growth Company | false | ||
Entity Shell Company | false | ||
Entity Public Float | $ 3.5 | ||
Entity Common Stock, Shares Outstanding | 403,748,667 | ||
Documents Incorporated by Reference | Certain portions of the registrant’s Definitive Proxy Statement (the “2020 Proxy Statement”) for the 2020 Annual Meeting of Shareholders to be held May 1, 2020 will be incorporated by reference in Part III. The 2020 Proxy Statement will be filed within 120 days of December 31, 2019 . | ||
Document Fiscal Year Focus | 2019 | ||
Document Fiscal Period Focus | FY | ||
Amendment Flag | false | ||
Entity Central Index Key | 0000714310 | ||
Current Fiscal Year End Date | --12-31 | ||
Common Class A | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Common Stock, no par value | ||
Trading Symbol | VLY | ||
Security Exchange Name | NASDAQ | ||
Non-Cumulative Perpetual Preferred Stock, Series A | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Perpetual Preferred Stock, Series A, no par value | ||
Trading Symbol | VLYPP | ||
Security Exchange Name | NASDAQ | ||
Non-Cumulative Perpetual Preferred Stock, Series B | |||
Entity Information [Line Items] | |||
Title of 12(b) Security | Non-Cumulative Perpetual Preferred Stock, Series B, no par value | ||
Trading Symbol | VLYPO | ||
Security Exchange Name | NASDAQ |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Cash and due from banks | $ 256,264 | $ 251,541 |
Interest bearing deposits with banks | 178,423 | 177,088 |
Investment securities: | ||
Equity securities | 41,410 | 0 |
Available for sale securities | 1,566,801 | 1,749,544 |
Held to maturity debt securities (fair value of $2,358,720 at December 31, 2019 and $2,034,943 at December 31, 2018) | 2,336,095 | 2,068,246 |
Total investment securities | 3,944,306 | 3,817,790 |
Loans held for sale, at fair value | 76,113 | 35,155 |
Loans | 29,699,208 | 25,035,469 |
Less: Allowance for loan losses | (161,759) | (151,859) |
Net loans | 29,537,449 | 24,883,610 |
Premises and equipment, net | 334,533 | 341,630 |
Lease right of use assets | 285,129 | |
Bank owned life insurance | 540,169 | 439,602 |
Accrued interest receivable | 105,637 | 95,296 |
Goodwill | 1,373,625 | 1,084,665 |
Other intangible assets, net | 86,772 | 76,990 |
Other assets | 717,600 | 659,721 |
Total Assets | 37,436,020 | 31,863,088 |
Deposits: | ||
Non-interest bearing | 6,710,408 | 6,175,495 |
Interest bearing: | ||
Savings, NOW and money market | 12,757,484 | 11,213,495 |
Time | 9,717,945 | 7,063,984 |
Total deposits | 29,185,837 | 24,452,974 |
Short-term borrowings | 1,093,280 | 2,118,914 |
Long-term borrowings | 2,122,426 | 1,654,268 |
Junior subordinated debentures issued to capital trusts | 55,718 | 55,370 |
Lease liabilities | 309,849 | 3,125 |
Accrued expenses and other liabilities | 284,722 | 227,983 |
Total Liabilities | 33,051,832 | 28,512,634 |
Common stock (no par value, authorized 450,000,000 shares; issued 403,322,773 shares at December 31, 2019 and 331,634,951 shares at December 31, 2018) | 141,423 | 116,240 |
Surplus | 3,622,208 | 2,796,499 |
Retained earnings | 443,559 | 299,642 |
Accumulated other comprehensive loss | (32,214) | (69,431) |
Treasury stock, at cost (44,383 common shares at December 31, 2019 and 203,734 common shares at December 31, 2018) | (479) | (2,187) |
Total Shareholders’ Equity | 4,384,188 | 3,350,454 |
Total Liabilities and Shareholders’ Equity | 37,436,020 | 31,863,088 |
Series A Preferred Stock | ||
Preferred stock, no par value; 50,000,000 shares authorized | 111,590 | 111,590 |
Series B Preferred Stock | ||
Preferred stock, no par value; 50,000,000 shares authorized | $ 98,101 | $ 98,101 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Investment securities held to maturity | $ 2,358,720 | $ 2,034,943 |
Preferred stock, par value (in dollars per share) | $ 0 | $ 0 |
Preferred stock, shares authorized (in shares) | 50,000,000 | 50,000,000 |
Common stock, shares issued (in shares) | 403,322,773 | 331,634,951 |
Common stock, par value (in dollars per share) | $ 0 | $ 0 |
Common stock, shares authorized (in shares) | 450,000,000 | 450,000,000 |
Treasury stock, shares (in shares) | 44,383 | 203,734 |
Series A Preferred Stock | ||
Preferred stock, shares issued (in shares) | 4,600,000 | 4,600,000 |
Series B Preferred Stock | ||
Preferred stock, shares issued (in shares) | 4,000,000 | 4,000,000 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Interest Income | |||
Interest and fees on loans | $ 1,198,908 | $ 1,033,993 | $ 734,474 |
Interest and dividends on investment securities: | |||
Taxable | 86,926 | 87,306 | 72,676 |
Tax-exempt | 17,420 | 21,504 | 15,399 |
Dividends | 12,023 | 13,209 | 9,812 |
Interest on other short-term investments | 5,723 | 3,236 | 1,793 |
Total interest income | 1,321,000 | 1,159,248 | 834,154 |
Interest on deposits: | |||
Savings, NOW and money market | 145,177 | 108,394 | 55,300 |
Time | 166,693 | 81,959 | 42,546 |
Interest on short-term borrowings | 47,862 | 45,930 | 18,034 |
Interest on long-term borrowings and junior subordinated debentures | 63,220 | 65,762 | 58,227 |
Total interest expense | 422,952 | 302,045 | 174,107 |
Net Interest Income | 898,048 | 857,203 | 660,047 |
Provision for credit losses | 24,218 | 32,501 | 9,942 |
Net Interest Income After Provision for Credit Losses | 873,830 | 824,702 | 650,105 |
Non-Interest Income | |||
Insurance commissions | 10,409 | 15,213 | 18,156 |
Losses on securities transactions, net | (150) | (2,342) | (20) |
Other-than-temporary impairment losses on securities | (2,928) | 0 | 0 |
Portion recognized in other comprehensive income (before taxes) | 0 | 0 | 0 |
Net impairment losses on securities recognized in earnings | (2,928) | 0 | 0 |
Fees from loan servicing | 9,794 | 9,319 | 7,384 |
Gains on sales of loans, net | 18,914 | 20,515 | 20,814 |
Gains (losses) on sales of assets, net | 78,333 | (2,401) | (95) |
Bank owned life insurance | 8,232 | 8,691 | 7,338 |
Other | 55,634 | 45,607 | 25,062 |
Total non-interest income | 214,520 | 134,052 | 111,706 |
Non-Interest Expense | |||
Salary and employee benefits expense | 327,431 | 333,816 | 263,337 |
Net occupancy and equipment expense | 118,191 | 108,763 | 92,243 |
FDIC insurance assessment | 21,710 | 28,266 | 19,821 |
Amortization of other intangible assets | 18,080 | 18,416 | 10,016 |
Professional and legal fees | 20,810 | 34,141 | 25,834 |
Loss on extinguishment of debt | 31,995 | 0 | 0 |
Amortization of tax credit investments | 20,392 | 24,200 | 41,747 |
Telecommunication expenses | 9,883 | 12,102 | 9,921 |
Other | 63,063 | 69,357 | 46,154 |
Total non-interest expense | 631,555 | 629,061 | 509,073 |
Income Before Income Taxes | 456,795 | 329,693 | 252,738 |
Income tax expense | 147,002 | 68,265 | 90,831 |
Net Income | 309,793 | 261,428 | 161,907 |
Dividends on preferred stock | 12,688 | 12,688 | 9,449 |
Net Income Available to Common Shareholders | $ 297,105 | $ 248,740 | $ 152,458 |
Earnings Per Common Share: | |||
Basic (in usd per share) | $ 0.88 | $ 0.75 | $ 0.58 |
Diluted (in usd per share) | 0.87 | 0.75 | 0.58 |
Cash dividends declared per common share (in usd per share) | $ 0.44 | $ 0.44 | $ 0.44 |
Weighted Average Number of Common Shares Outstanding: | |||
Basic (in shares) | 337,792,270 | 331,258,964 | 264,038,123 |
Diluted (in shares) | 340,117,808 | 332,693,718 | 264,889,007 |
Trust and Investment Services | |||
Non-Interest Income | |||
Services | $ 12,646 | $ 12,633 | $ 11,538 |
Deposit Account | |||
Non-Interest Income | |||
Services | $ 23,636 | $ 26,817 | $ 21,529 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Statement of Comprehensive Income [Abstract] | |||
Net income | $ 309,793 | $ 261,428 | $ 161,907 |
Other comprehensive income (loss), net of tax: | |||
Net gains (losses) arising during the period | 39,262 | (22,932) | 850 |
Less reclassification adjustment for net losses (gains) included in net income | 119 | 2,237 | (156) |
Total | 39,381 | (20,695) | 694 |
Unrealized gains and losses on derivatives (cash flow hedges) | |||
Net (losses) gains on derivatives arising during the period | (989) | 1,874 | 576 |
Less reclassification adjustment for net losses included in net income | 1,291 | 2,494 | 5,028 |
Total | 302 | 4,368 | 5,604 |
Defined benefit pension plan | |||
Net losses arising during the period | (2,561) | (7,151) | (2,722) |
Amortization of prior service (credit) cost | (93) | 146 | 191 |
Amortization of net loss | 188 | 447 | 248 |
Total | (2,466) | (6,558) | (2,283) |
Other comprehensive income (loss), net | 37,217 | (22,885) | 4,015 |
Total comprehensive income | $ 347,010 | $ 238,543 | $ 165,922 |
CONSOLIDATED STATEMENTS OF CHAN
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY - USD ($) shares in Thousands, $ in Thousands | Total | Common Stock | Series A Preferred Stock | Series B Preferred Stock | Preferred Stock | Common Stock | Common StockCommon Stock | Surplus | SurplusCommon Stock | Retained Earnings | Retained EarningsCommon Stock | Retained EarningsSeries A Preferred Stock | Retained EarningsSeries B Preferred Stock | Accumulated Other Comprehensive Loss | Treasury Stock | Treasury StockCommon Stock |
Beginning balance at Dec. 31, 2016 | $ 2,377,156 | $ 111,590 | $ 92,353 | $ 2,044,401 | $ 172,754 | $ (42,093) | $ (1,849) | |||||||||
Beginning balance (in shares) at Dec. 31, 2016 | 263,639 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Reclassification due to the adoption of ASU No. 2018-02 | 7,927 | (7,927) | ||||||||||||||
Net income | 161,907 | 161,907 | ||||||||||||||
Other comprehensive income (loss), net of tax | 4,015 | 4,015 | ||||||||||||||
Cash dividends declared on preferred stock | $ (7,188) | $ (2,261) | $ (7,188) | $ (2,261) | ||||||||||||
Cash dividends declared on common stock | $ (116,332) | $ (116,332) | ||||||||||||||
Effect of stock incentive plan, net (in shares) | 117 | |||||||||||||||
Effect of stock incentive plan, net | 9,560 | $ 229 | 11,297 | (18) | (1,948) | |||||||||||
Stock issued (in shares) | 713 | |||||||||||||||
Stock issued | 8,207 | 98,101 | $ 145 | $ 4,658 | (56) | 3,460 | ||||||||||
Ending balance at Dec. 31, 2017 | 2,533,165 | 209,691 | $ 92,727 | 2,060,356 | 216,733 | (46,005) | (337) | |||||||||
Ending balance (in shares) at Dec. 31, 2017 | 264,469 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 261,428 | 261,428 | ||||||||||||||
Other comprehensive income (loss), net of tax | (22,885) | (22,885) | ||||||||||||||
Cash dividends declared on preferred stock | (7,188) | (5,500) | (7,188) | (5,500) | ||||||||||||
Cash dividends declared on common stock | (146,346) | (146,346) | ||||||||||||||
Effect of stock incentive plan, net (in shares) | 1,955 | |||||||||||||||
Effect of stock incentive plan, net | 17,180 | $ 771 | 21,022 | (2,415) | (2,198) | |||||||||||
Stock issued (in shares) | 65,007 | |||||||||||||||
Stock issued | 738,211 | $ 22,742 | 715,121 | $ 348 | ||||||||||||
Ending balance at Dec. 31, 2018 | 3,350,454 | 209,691 | $ 116,240 | 2,796,499 | 299,642 | (69,431) | (2,187) | |||||||||
Ending balance (in shares) at Dec. 31, 2018 | 331,431 | |||||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | ||||||||||||||||
Net income | 309,793 | 309,793 | ||||||||||||||
Other comprehensive income (loss), net of tax | 37,217 | 37,217 | ||||||||||||||
Cash dividends declared on preferred stock | $ (7,188) | $ (5,500) | $ (7,188) | $ (5,500) | ||||||||||||
Cash dividends declared on common stock | (154,689) | $ (154,689) | ||||||||||||||
Effect of stock incentive plan, net (in shares) | 726 | |||||||||||||||
Effect of stock incentive plan, net | 15,878 | $ 291 | 15,346 | (1,467) | 1,708 | |||||||||||
Stock issued (in shares) | 71,121 | |||||||||||||||
Stock issued | $ 835,255 | $ 24,892 | $ 810,363 | |||||||||||||
Ending balance at Dec. 31, 2019 | $ 4,384,188 | $ 209,691 | $ 141,423 | $ 3,622,208 | $ 443,559 | $ (32,214) | $ (479) | |||||||||
Ending balance (in shares) at Dec. 31, 2019 | 403,278 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS' EQUITY (Parenthetical) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash dividends declared (usd per share) | $ 0.44 | $ 0.44 | $ 0.44 |
Series A Preferred Stock | |||
Cash dividends declared (usd per share) | 1.56 | 1.56 | 1.56 |
Series B Preferred Stock | |||
Cash dividends declared (usd per share) | 1.38 | 1.38 | 0.57 |
Common Stock | |||
Cash dividends declared (usd per share) | $ 0.44 | $ 0.44 | $ 0.44 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||
Net income | $ 309,793 | $ 261,428 | $ 161,907 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||
Depreciation and amortization | 53,317 | 27,554 | 24,845 |
Stock-based compensation | 14,726 | 19,472 | 12,204 |
Provision for credit losses | 24,218 | 32,501 | 9,942 |
Net amortization of premiums and accretion of discounts on securities and borrowings | 29,512 | 38,454 | 46,346 |
Amortization of other intangible assets | 18,080 | 18,416 | 10,016 |
Losses on securities transactions, net | 150 | 2,342 | 20 |
Proceeds from sales of loans held for sale | 1,743,470 | 687,983 | 813,855 |
Gains on sales of loans, net | (18,914) | (20,515) | (20,814) |
Net impairment losses on securities recognized in earnings | 2,928 | 0 | 0 |
Originations of loans held for sale | (537,985) | (406,087) | (444,290) |
(Gains) losses on sales of assets, net | (78,333) | 2,402 | 95 |
Net deferred income tax (benefit) expense | 15,228 | (11,780) | 76,848 |
Net change in: | |||
Cash surrender value of bank owned life insurance | (8,232) | (8,691) | (7,338) |
Accrued interest receivable | 1,440 | (9,183) | (7,174) |
Other assets | (163,330) | (33,145) | (57,353) |
Accrued expenses and other liabilities | 57,882 | (7,562) | 121 |
Net cash provided by operating activities | 1,463,950 | 593,589 | 619,230 |
Cash flows from investing activities: | |||
Net loan originations and purchases | (2,538,909) | (3,257,939) | (1,418,073) |
Equity securities: | |||
Purchases | (14,776) | 0 | 0 |
Sales | 24,748 | 0 | 0 |
Held to maturity debt securities: | |||
Purchases | (701,879) | (264,721) | (220,356) |
Maturities, calls and principal repayments | 424,475 | 241,077 | 290,929 |
Available for sale debt securities: | |||
Purchases | (30,392) | (289,554) | (411,788) |
Sales | 271,901 | 44,377 | 2,727 |
Maturities, calls and principal repayments | 316,024 | 255,031 | 204,684 |
Death benefit proceeds from bank owned life insurance | 9,560 | 4,220 | 13,089 |
Proceeds from sales of real estate property and equipment | 109,043 | 7,786 | 9,357 |
Purchases of real estate property and equipment | (23,375) | (26,440) | (18,117) |
Cash and cash equivalents acquired in acquisitions | 22,239 | 156,612 | 0 |
Net cash used in investing activities | (2,131,341) | (3,129,551) | (1,547,548) |
Cash flows from financing activities: | |||
Net change in deposits | 1,808,148 | 2,734,669 | 422,754 |
Net change in short-term borrowings | (1,036,134) | 720,307 | (332,332) |
Proceeds from issuance of long-term borrowings, net | 950,000 | 0 | 1,065,000 |
Repayments of long-term borrowings | (890,000) | (750,682) | (185,000) |
Proceeds from issuance of preferred stock, net | 0 | 0 | 98,101 |
Cash dividends paid to preferred shareholders | (12,688) | (15,859) | (6,277) |
Cash dividends paid to common shareholders | (146,537) | (138,857) | (115,881) |
Purchase of common shares to treasury | (1,805) | (3,801) | (2,645) |
Common stock issued, net | 2,957 | 2,704 | 8,207 |
Other, net | (492) | 0 | 0 |
Net cash provided by financing activities | 673,449 | 2,548,481 | 951,927 |
Net change in cash and cash equivalents | 6,058 | 12,519 | 23,609 |
Cash and cash equivalents at beginning of year | 428,629 | 416,110 | 392,501 |
Cash and cash equivalents at end of year | 434,687 | 428,629 | 416,110 |
Supplemental disclosures of cash flow information: | |||
Interest on deposits and borrowings | 415,649 | 290,444 | 170,614 |
Federal and state income taxes | 106,336 | 53,587 | 29,013 |
Supplemental schedule of non-cash investing activities: | |||
Transfer of loans to other real estate owned | 5,100 | 743 | 7,301 |
Loans transferred to loans held for sale | 1,234,022 | 289,633 | 313,201 |
Lease right of use assets obtained in exchange for operating lease liabilities | 312,143 | ||
Non-cash assets acquired: | |||
Equity securities | 51,382 | 0 | 0 |
Loans | 3,380,841 | 3,736,984 | 0 |
Premises and equipment | 23,585 | 62,066 | 0 |
Bank owned life insurance | 101,896 | 49,052 | 0 |
Accrued interest receivable | 11,781 | 12,123 | 0 |
Goodwill | 288,960 | 394,028 | 0 |
Other intangible assets | 20,690 | 45,906 | 0 |
Other assets | 50,174 | 100,059 | 0 |
Total non-cash assets acquired | 4,270,080 | 4,922,820 | 0 |
Liabilities assumed: | |||
Deposits | 2,924,716 | 3,564,843 | 0 |
Short-term borrowings | 10,500 | 649,979 | 0 |
Long-term borrowings | 430,130 | 87,283 | 0 |
Junior subordinated debentures issued to capital trusts | 0 | 13,249 | 0 |
Accrued expenses and other liabilities | 91,718 | 26,848 | 0 |
Total liabilities assumed | 3,457,064 | 4,342,202 | 0 |
Net non-cash assets acquired | 813,016 | 580,618 | 0 |
Net cash and cash equivalents acquired in acquisition | 22,239 | 156,612 | 0 |
Common stock issued in acquisition | 835,255 | 737,230 | 0 |
Available-for-sale securities | |||
Non-cash assets acquired: | |||
Investment securities | 335,894 | 308,385 | 0 |
Held-to-maturity securities | |||
Non-cash assets acquired: | |||
Investment securities | $ 4,877 | $ 214,217 | $ 0 |
Summary of Significant Accounti
Summary of Significant Accounting Policies | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Summary of Significant Accounting Policies | SUMMARY OF SIGNIFICANT ACCOUNTING POLICIES (Note 1) Business Valley National Bancorp, a New Jersey Corporation (Valley), is a bank holding company whose principal wholly-owned subsidiary is Valley National Bank (the “Bank”), a national banking association providing a full range of commercial, retail and trust and investment services largely through its offices and ATM network throughout northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn and Queens, Long Island, Florida and Alabama. The Bank is subject to intense competition from other financial services companies and is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by certain regulatory authorities. Valley National Bank’s subsidiaries are all included in the consolidated financial statements of Valley. These subsidiaries include, but are not limited to: • an insurance agency offering property and casualty, life and health insurance; • an asset management adviser that is a registered investment adviser with the Securities and Exchange Commission (SEC); • a title insurance agency in New York, which also provides services in New Jersey; • subsidiaries which hold, maintain and manage investment assets for the Bank; • a subsidiary which specializes in health care equipment lending and other commercial equipment leases; and • a subsidiary which owns and services New York commercial loans. The Bank’s subsidiaries also include real estate investment trust subsidiaries (the “REIT” subsidiaries) which own real estate related investments and a REIT subsidiary which owns some of the real estate utilized by the Bank and related real estate investments. Except for Valley’s REIT subsidiaries, all subsidiaries mentioned above are directly or indirectly wholly-owned by the Bank. Because each REIT subsidiary must have 100 or more shareholders to qualify as a REIT, each REIT subsidiary has issued less than 20 percent of its outstanding non-voting preferred stock to individuals, most of whom are non-senior management Bank employees. The Bank owns the remaining preferred stock and all the common stock of the REITs. Basis of Presentation The consolidated financial statements of Valley include the accounts of its commercial bank subsidiary, Valley National Bank and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. See Note 12 for more details. Certain prior period amounts have been reclassified to conform to the current presentation. In preparing the consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the allowance for loan losses, purchased credit-impaired loans, the evaluation of goodwill and other intangible assets for impairment, and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Cash and Cash Equivalents For purposes of reporting cash flows, cash and cash equivalents include cash on hand, amounts due from banks, interest bearing deposits in other banks (including the Federal Reserve Bank of New York) and, from time to time, overnight federal funds sold. The Bank is required to maintain reserve balances in cash or on deposit with the Federal Reserve Bank based on a percentage of deposits. These reserve balances totaled $114.4 million and $120.7 million at December 31, 2019 and 2018 , respectively. Investment Securities Debt securities are classified at the time of purchase based on management’s intention, as securities available-for-sale or securities held-to-maturity. Investment securities classified as held-to-maturity are those that management has the positive intent and ability to hold until maturity. Investment securities held-to-maturity are carried at amortized cost, adjusted for amortization of premiums and accretion of discounts using the level-yield method over the contractual term of the securities, adjusted for actual prepayments, or to call date if the security was purchased at premium. Investment securities classified as available-for-sale are carried at fair value with unrealized holding gains and losses reported as a component of other comprehensive income or loss, net of tax. Realized gains or losses on the available-for-sale securities are recognized by the specific identification method and are included in net gains and losses on securities transactions. Equity securities are stated at fair value with any unrealized and realized gains and losses reported in non-interest income. Investments in Federal Home Loan Bank and Federal Reserve Bank stock, which have limited marketability, are carried at cost in other assets. Security transactions are recorded on a trade-date basis. Quarterly, Valley evaluates its investment securities classified as held to maturity and available for sale for other-than-temporary impairment. Valley's evaluation of other-than-temporary impairment considers factors that include, among others, the causes of the decline in fair value, such as credit problems, interest rate fluctuations, or market volatility; and the severity and duration of the decline. For debt securities, the primary consideration in determining whether impairment is other-than-temporary is whether or not it is probable that current and/or future contractual cash flows have been or may be impaired. Valley also assesses the intent and ability to hold the securities (as well as the likelihood of a near-term recovery), and the intent to sell the securities and whether it is more likely than not that we will be required to sell the securities before the recovery of their amortized cost basis. In assessing the level of other-than-temporary impairment attributable to credit loss, Valley compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If a determination is made that a debt security is other-than-temporarily impaired, Valley will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income (loss), net of tax. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. See the “Other-Than-Temporary Impairment Analysis” section of Note 4 for further discussion. Interest income on investments includes amortization of purchase premiums and discounts. Valley discontinues the recognition of interest on debt securities if the securities meet both of the following criteria: (i) regularly scheduled interest payments have not been paid or have been deferred by the issuer, and (ii) full collection of all contractual principal and interest payments is not deemed to be the most likely outcome, resulting in the recognition of other-than-temporary impairment of the security. Loans Held for Sale Loans held for sale generally consist of residential mortgage loans originated and intended for sale in the secondary market and are carried at their estimated fair value on an instrument-by-instrument basis as permitted by the fair value option election under U.S. GAAP. Changes in fair value are recognized in non-interest income in the accompanying consolidated statements of income as a component of net gains on sales of loans. Origination fees and costs related to loans originated for sale (and carried at fair value) are recognized as earned and as incurred. Loans held for sale are generally sold with loan servicing rights retained by Valley. Gains recognized on loan sales include the value assigned to the rights to service the loan. See the “Loan Servicing Rights” section below. Loans and Loan Fees Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans and premium or discounts on purchased loans, except for purchased credit-impaired loans. Loan origination and commitment fees, net of related costs are deferred and amortized as an adjustment of loan yield over the estimated life of the loans approximating the effective interest method. Loans are deemed to be past due when the contractually required principal and interest payments have not been received as they become due. Loans are placed on non-accrual status generally, when they become 90 days past due and the full and timely collection of principal and interest becomes uncertain. When a loan is placed on non-accrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Payments received on non-accrual loans are generally applied against principal. A loan in which the borrowers’ obligation has not been released in bankruptcy courts may be restored to an accruing basis when it becomes well secured and is in the process of collection, or all past due amounts become current under the loan agreement and collectability is no longer doubtful. Purchased Credit-Impaired Loans Purchased credit-impaired (PCI) loans are loans acquired at a discount (that is due, in part, to credit quality). Valley's PCI loan portfolio primarily consists of loans acquired in business combinations subsequent to 2011. The PCI loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Interest income on PCI loans has been accounted for based on the acquired loans’ expected cash flows. The PCI loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the undiscounted cash flows expected at acquisition and the investment in the loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each pool. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or an allowance for loan losses. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). Valley had no allowance reserves related to PCI loans at December 31, 2019 and 2018 . On a quarterly or more frequent basis, the Bank evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected for the underlying loans of each PCI loan pool. These evaluations require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractual required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. For the pools with better than expected cash flows, the forecasted increase is recorded as an additional accretable yield that is recognized as a prospective increase to our interest income on loans. See Note 5 for additional information. PCI loans that may have been classified as non-performing loans by an acquired bank are no longer classified as non-performing because these loans are accounted for on a pooled basis. Management’s judgment is required in classifying loans in pools as performing loans, and is dependent on having a reasonable expectation about the timing and amount of the pool cash flows to be collected, even if certain loans within the pool are contractually past due. Allowance for Credit Losses The allowance for credit losses (the “allowance”) is increased through provisions charged against current earnings and additionally by crediting amounts of recoveries received, if any, on previously charged-off loans. The allowance is reduced by charge-offs on loans or unfunded letters of credit which are determined to be a loss, in accordance with established policies, when all efforts of collection have been exhausted. The allowance is maintained at a level estimated to absorb probable credit losses inherent in the loan portfolio as well as other credit risk related charge-offs. The allowance is based on ongoing evaluations of the probable estimated losses inherent in the non-PCI loan portfolio and off-balance sheet unfunded letters of credit, as well as reserves for impairment of PCI loans subsequent to their acquisition date. As discussed under the “Purchased Credit-Impaired Loans” section above, Valley had no allowance reserves related to PCI loans at December 31, 2019 and 2018 . The Bank’s methodology for evaluating the appropriateness of the allowance includes grouping the loan portfolio into loan segments based on common risk characteristics, tracking the historical levels of classified loans and delinquencies, estimating the appropriate loss look-back and loss emergence periods related to historical losses for each loan segment, providing specific reserves on impaired loans, and assigning incremental reserves where necessary based upon qualitative and economic outlook factors including numerous variables, such as the nature and trends of recent loan charge-offs. Additionally, the volume of non-performing loans, concentration risks by size, type, and geography, new markets, collateral adequacy, credit policies and procedures, staffing, underwriting consistency, loan review and economic conditions are taken into consideration. The allowance for loan losses consists of four elements: (i) specific reserves for individually impaired credits, (ii) reserves for adversely classified, or higher risk rated, loans that are not impaired, (iii) reserves for other loans based on historical loss factors (using the appropriate loss look-back and loss emergence periods) adjusted for both internal and external qualitative risk factors to Valley, including the aforementioned factors, as well as changes in both organic and purchased loan portfolio volumes, the composition and concentrations of credit, new market initiatives, and the impact of competition on loan structuring and pricing, and (iv) an allowance for PCI loan pools impaired subsequent to the acquisition date, if applicable. The Credit Risk Management Department individually evaluates non-accrual (non-homogeneous) commercial and industrial loans and commercial real estate loans over $250 thousand and all troubled debt restructured loans. The value of an impaired loan is measured based upon the underlying anticipated method of payment consisting of either the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent, and its payment is expected solely based on the underlying collateral. If the value of an impaired loan is less than its carrying amount, impairment is recognized through a provision to the allowance for loan losses. Collateral dependent impaired loan balances are written down to the estimated current fair value (less estimated selling costs) of each loan’s underlying collateral resulting in an immediate charge-off to the allowance, excluding any consideration for personal guarantees that may be pursued in the Bank’s collection process. If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as a specific valuation allowance in the allowance for loan losses. Accrual of interest is discontinued on an impaired loan when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that collection of all principal and interest is doubtful. Cash collections from non-accrual loans are generally credited to the loan balance, and no interest income is recognized on these loans until the principal balance has been determined to be fully collectible. Residential mortgage loans and consumer loans usually consist of smaller balance homogeneous loans that are collectively evaluated for impairment, and are specifically excluded from the impaired loan portfolio, except where the loan is classified as a troubled debt restructured loan. The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of the loans. Loans are evaluated based on an internal credit risk rating system for the commercial and industrial loan and commercial real estate loan portfolio segments and non-performing loan status for the residential and consumer loan portfolio segments. Loans are risk-rated based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial and industrial loans and commercial real estate loans, and evaluated by the Loan Review Department on a test basis. Loans with a grade that is below “Pass” grade are adversely classified. See Note 5 for details. Any change in the credit risk grade of adversely classified performing and/or non-performing loans affects the amount of the related allowance. Once a loan is adversely classified, the assigned relationship manager and/or a special assets officer in conjunction with the Credit Risk Management Department analyzes the loan to determine whether the loan is impaired and, if impaired, the need to specifically assign a valuation allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. Loans identified as losses by management are charged-off. Commercial loans are generally assessed for full or partial charge-off to the net realizable value for collateral dependent loans when a loan is between 90 or 120 days past due or sooner if it is probable that a loan may not be fully collectable. Residential loans and home equity loans are generally charged-off to net realizable value when the loan is 120 days past due (or sooner when the borrowers’ obligation has been released in bankruptcy). Automobile loans are fully charged-off when the loan is 120 days past due or partially charged-off to the net realizable value of collateral, if the collateral is recovered prior to such time. Unsecured consumer loans are generally fully charged-off when the loan is 150 days past due. The allowance allocations for other loans (i.e., risk rated loans that are not adversely classified and loans that are not risk rated) are calculated by applying historical loss factors for each loan portfolio segment to the applicable outstanding loan portfolio balances. Loss factors are calculated using statistical analysis supplemented by management judgment. The statistical analysis considers historical default rates, historical loss severity in the event of default, and the average loss emergence period for each loan portfolio segment. The management analysis includes an evaluation of loan portfolio volumes, the composition and concentrations of credit, credit quality and current delinquency trends. See Notes 5 and 6 for Valley’s loan credit quality and additional allowance disclosures. Leases Lessor Arrangements. Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. Lessee Arrangements. Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. See Note 7 for additional information on Valley's lease related assets and obligations. Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives range from 3 years for capitalized software to up to 40 years for buildings. Leasehold improvements are amortized over the term of the lease or estimated useful life of the asset, whichever is shorter. Major improvements are capitalized, while repairs and maintenance costs are charged to operations as incurred. Upon retirement or disposition, any gain or loss is credited or charged to operations. See Note 8 for further details. Bank Owned Life Insurance Valley owns bank owned life insurance (BOLI) to help offset the cost of employee benefits. BOLI is recorded at its cash surrender value. Valley’s BOLI is invested primarily in U.S. Treasury securities and residential mortgage-backed securities issued by government sponsored enterprises and Ginnie Mae. The majority of the underlying investment portfolio is managed by one independent investment firm. The change in the cash surrender value is included as a component of non-interest income and is exempt from federal and state income taxes as long as the policies are held until the death of the insured individuals. Other Real Estate Owned Valley acquires other real estate owned (OREO) through foreclosure on loans secured by real estate. OREO is reported at the lower of cost or fair value, as established by a current appraisal (less estimated costs to sell), and is included in other assets. Any write-downs at the date of foreclosure are charged to the allowance for loan losses. Expenses incurred to maintain these properties, unrealized losses resulting from valuation write-downs after the date of foreclosure, and realized gains and losses upon sale of the properties are included in other non-interest expense. OREO totaled $9.4 million and $9.5 million at December 31, 2019 and 2018 , respectively. OREO included foreclosed residential real estate properties totaling $2.1 million and $852 thousand at December 31, 2019 and 2018 , respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.8 million and $1.8 million at December 31, 2019 and 2018 , respectively. Goodwill Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” below). Goodwill is not amortized and is subject to an annual assessment for impairment. Currently, the goodwill impairment analysis is generally a two-step test. However, Valley may choose to perform an optional qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test for one or more units in future periods. During 2019 and 2018 , Valley elected to perform step one of the two-step goodwill impairment test for all of its reporting units. Goodwill is allocated to Valley’s reporting unit, which is a business segment or one level below, at the date goodwill is actually recorded. If the carrying value of a reporting unit exceeds its estimated fair value, a second step in the analysis is performed to determine the amount of impairment, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying value of a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded equal to the excess amount in the current period earnings. Valley reviews goodwill annually or more frequently if a triggering event indicates impairment may have occurred, to determine potential impairment by determining if the fair value of the reporting unit has fallen below the carrying value. Other Intangible Assets Other intangible assets primarily consist of loan servicing rights (largely generated from loan servicing retained by the Bank on residential mortgage loan originations sold in the secondary market to government sponsored enterprises), core deposits (the portion of an acquisition purchase price which represents value assigned to the existing deposit base) and customer lists obtained through acquisitions. Other intangible assets are amortized using various methods over their estimated lives and are periodically evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impairment is deemed to exist, an adjustment is recorded to earnings in the current period for the difference between the fair value of the asset and its carrying amount. See further details regarding loan servicing rights below. Loan Servicing Rights Loan servicing rights are recorded when originated mortgage loans are sold with servicing rights retained, or when servicing rights are purchased. Valley initially records the loan servicing rights at fair value. Subsequently, the loan servicing rights are carried at the lower of unamortized cost or market (i.e., fair value). The fair values of the loan servicing rights for each risk-stratified group of loan servicing rights are calculated using a fair value model from a third party vendor that various assumptions, including but not limited to, prepayment speeds, internal rate of return (“discount rate”), servicing cost, ancillary income, float rate, tax rate, and inflation. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. The unamortized costs associated with acquiring loan servicing rights, net of any valuation allowances, are included in other intangible assets in the consolidated statements of financial condition and are accounted for using the amortization method. Valley amortizes the loan servicing assets in proportion to and over the period of estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. A valuation allowance is established through an impairment charge to earnings to the extent the unamortized cost of a stratified group of loan servicing rights exceeds its estimated fair value. Increases in the fair value of impaired loan servicing rights are recognized as a reduction of the valuation allowance, but not in excess of such allowance. The amortization of loan servicing rights is recorded in non-interest income. Stock-Based Compensation Compensation expense for restricted stock units, restricted stock and stock option awards (i.e., non-vested stock awards) is based on the fair value of the award on the date of the grant and is recognized ratably over the service period of the award. Beginning in 2019, Valley's long-term incentive compensation plan was amended for award grantees that are eligible for retirement to include a service period requirement, in which an award will vest at one-twelve per month after the grant date. Compensation expense for these awards is amortized monthly over a one year period after the grant date. Prior to 2019, award grantees that were eligible for retirement did not have a service period requirement. Compensation expense for these awards is recognized immediately in earnings. The service period for non-retirement eligible employees is the shorter of the stated vesting period of the award or the period until the employee’s retirement eligibility date. The fair value of each option granted is estimated using a binomial option pricing model. The fair value of restricted stock awards is based upon the last sale price reported for Valley’s common stock on the date of grant or the last sale price reported preceding such date, except for performance-based stock awards with a market condition. The grant date fair value of a performance-based stock award that vests based on a market condition is determined by a third party specialist using a Monte Carlo valuation model. See Note 13 for additional information. Fair Value Measurements In general, fair values of financial instruments are based upon quoted market prices, where available. When observable market prices and parameters are not fully available, management uses valuation techniques based upon internal and third party models requiring more management judgment to estimate the appropriate fair value measurements. Valuation adjustments may be made to ensure that financial instruments are recorded at fair value, including adjustments based on internal cash flow model projections that utilize assumptions similar to those incorporated by market participants. Other adjustments may include amounts to reflect counterparty credit quality and Valley’s creditworthiness, among other things, as well as unobservable parameters. Any such valuation adjustments are applied consistently over time. See Note 3 for additional information. Revenue Recognition On January 1, 2018, Valley adopted Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" and subsequent related updates that modify the guidance used to recognize revenue from contracts with customers for transfers of goods and services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. The adoption did not materially change Valley's recognitio |
Business Combinations
Business Combinations | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Business Combinations | BUSINESS COMBINATIONS (Note 2) Oritani Financial Corp. On December 1, 2019 , Valley completed its acquisition of Oritani Financial Corp. ("Oritani") and its wholly-owned subsidiary, Oritani Bank. Oritani had approximately $4.3 billion in assets, $3.4 billion in net loans and $2.9 billion in deposits, after purchase accounting adjustments, and a branch network of 26 locations. The acquisition represents a significant addition to Valley's New Jersey franchise, and meaningfully enhanced its presence in the Bergen County market. The common shareholders of Oritani received 1.60 shares of Valley common stock for each Oritani share that they owned prior to merger. The total consideration for the acquisition was approximately $835.3 million , consisting of 71.1 million shares of Valley common stock and the outstanding Oritani stock-based awards. Merger expenses totaled $16.6 million for the year ended December 31, 2019 , which primarily related to salary and employee benefits and other expenses are included in non-interest expense on the consolidated statements of income. The following table sets forth assets acquired, and liabilities assumed in the Oritani acquisition, at their estimated fair values as of the closing date of the transaction: December 1, 2019 (in thousands) Assets acquired: Cash and cash equivalents $ 22,239 Equity securities 51,382 Investment securities available for sale 335,894 Investment securities held to maturity 4,877 Loans 3,380,841 Premises and equipment 23,585 Bank owned life insurance 101,896 Accrued interest receivable 11,781 Goodwill 288,960 Other intangible assets 20,690 Other assets: Deferred tax assets 24,707 FHLB and FRB stock 23,479 Other assets 1,988 Total other assets 50,174 Total assets acquired $ 4,292,319 Liabilities assumed: Deposits: Non-interest bearing $ 142,630 Savings, NOW and money market 1,596,690 Time 1,185,396 Total deposits 2,924,716 Short-term borrowings 10,500 Long-term borrowings 430,130 Accrued expense and other liabilities 91,718 Total liabilities assumed $ 3,457,064 Common stock issued in acquisition $ 835,255 The determination of the fair value of the assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. The fair value estimates are subject to change for up to one year after the closing date of the transaction if additional information (existing at the date of closing) relative to closing date fair values becomes available. Fair Value Measurement of Assets Acquired and Liabilities Assumed Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the Oritani acquisition. Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities. Investment securities. The estimated fair values of the investment securities were calculated utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service when available, or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. The prices are derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviewed the data and assumptions used in pricing the securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data. Loans. The acquired loan portfolio was segregated into categories for valuation purposes primarily based on loan type (commercial, commercial real estate, multifamily, residential, and consumer) and credit risk rating. The estimated fair values were computed by discounting the expected cash flows from the respective portfolios to present value based on estimated market rates. Management estimated the cash flows expected to be collected at the acquisition date by using valuation models that incorporated loan contractual characteristics (such as payment type, amortization type, and term to maturity) as well as estimates of key valuation assumptions (such as prepayment speeds, default rates, and loss severity rates). Prepayment assumptions were developed by reference to recent or historical prepayment speeds observed for loans with similar underlying characteristics. Prepayment assumptions were influenced by many factors, including, but not limited to, forward interest rates, loan and collateral types, vintage, coupon band, and payment status. Default and loss severity rates were developed by reference to recent or historical default and loss rates observed for loans with similar underlying characteristics. Default and loss severity assumptions were influenced by many factors, including, but not limited to, underwriting processes and documentation, vintages, collateral types, collateral locations, estimated collateral values, loan-to-value ratios, and debt-to-income ratios. The expected cash flows from the acquired loan portfolios were discounted to present value based on estimated market rates. The market rates were estimated using a buildup approach based on the following components: funding cost, servicing cost, and consideration of liquidity premium. In addition, coupon rates for recently originated loans and available market data regarding origination rates were also considered in the analysis. The methods used to estimate the Level 3 fair values of loans are extremely sensitive to the assumptions and estimates used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in these values than in those determined in active markets. The difference between the fair value and the expected cash flows from the acquired loans will be accreted to interest income over the remaining term of the loans in accordance with ASC Subtopic 310-30, “Loans and Debt Securities Acquired with Deteriorated Credit Quality.” See Note 5 for further details. Other intangible assets. Other intangible assets mostly consisting of core deposit intangibles (CDI) are measures of the value of non-maturity checking, savings, NOW and money market deposits that are acquired in a business combination. The fair value of the CDI is based on the present value of the expected cost savings attributable to the core deposit funding, relative to an alternative source of funding. The CDI is amortized over an estimated useful life of 10 years to approximate the existing deposit relationships acquired. Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing accounts and savings, NOW and money market accounts) are equal to the carrying amounts payable on demand. The fair values of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities. Short-term borrowings. The short-term borrowings consist of FHLB advances. The carrying amounts approximate their fair values because they frequently re-price to a market rate. Long-term borrowings. The fair values of long-term borrowings consisting of FHLB advances were estimated by discounting the estimated future cash flows using market discount rates for borrowings with similar characteristics, terms and remaining maturities. See Note 11 for further details. Had the acquisition of Oritani taken place on the beginning of the annual periods presented, Valley’s revenues (defined as the sum of net interest income and non-interest income), net income, basic earnings per share, and diluted earnings per share would have equaled the amounts indicated in the following table for the years ended December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands, except per share data) Unaudited Revenues $ 1,219,887 $ 1,106,012 Net income 361,079 313,977 Basic earnings per share 0.86 0.75 Diluted earnings per share 0.85 0.75 USAmeriBancorp, Inc. On January 1, 2018, Valley completed its acquisition of USAmeriBancorp, Inc. (USAB) headquartered in Clearwater, Florida. USAB, largely through its wholly-owned subsidiary, USAmeriBank, had approximately $5.1 billion in assets, $3.7 billion in net loans and $3.6 billion in deposits, after purchase accounting adjustments, and maintained a branch network of 29 offices at December 31, 2018 . The acquisition represented a significant addition to Valley’s Florida presence, primarily in the Tampa Bay market. The acquisition also brought Valley to the Birmingham, Montgomery, and Tallapoosa areas in Alabama, where USAB maintained 15 of its branches. The common shareholders of USAB received 6.1 shares of Valley common stock for each USAB share they owned prior to merger. The total consideration for the acquisition was approximately $737 million , consisting of 64.9 million shares of Valley common stock and the outstanding USAB stock-based awards. Merger expenses totaled $17.4 million for the year ended December 31, 2018 , which primarily related to salary and employee benefits and other expenses are included in non-interest expense on the consolidated statements of income. Had the acquisition of USAB taken place on January 1, 2017 Valley’s revenues (defined as the sum of net interest income and non-interest income), net income, basic earnings per share, and diluted earnings per share would have equaled the amounts indicated in the following table for the year ended December 31, 2017 : December 31, 2017 (in thousands, except per share data) Unaudited Revenues $ 931,255 Net income 196,921 Basic earnings per share 0.57 Diluted earnings per share 0.57 |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Fair Value Measurement of Assets and Liabilities | FAIR VALUE MEASUREMENT OF ASSETS AND LIABILITIES (Note 3) Accounting Standards Codification (ASC) Topic 820, “Fair Value Measurements and Disclosures,” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below: • Level 1 - Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date. • Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets) for substantially the full term of the asset or liability. • Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity). Assets and Liabilities Measured at Fair Value on a Recurring Basis and Non-Recurring Basis The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at December 31, 2019 and 2018 . The assets presented under “non-recurring fair value measurements” in the table below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Equity securities $ 41,410 $ 41,410 $ — $ — Available for sale debt securities: U.S. Treasury securities 50,943 50,943 — — U.S. government agency securities 29,243 — 29,243 — Obligations of states and political subdivisions 170,051 — 170,051 — Residential mortgage-backed securities 1,254,786 — 1,254,786 — Corporate and other debt securities 61,778 — 61,098 680 Total available for sale debt securities 1,566,801 50,943 1,515,178 680 Loans held for sale (1) 76,113 — 76,113 — Other assets (2) 158,532 — 158,532 — Total assets $ 1,842,856 $ 92,353 $ 1,749,823 $ 680 Liabilities Other liabilities (2) $ 43,926 $ — $ 43,926 $ — Total liabilities $ 43,926 $ — $ 43,926 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 39,075 $ — $ — $ 39,075 Loan servicing rights 1,591 — — 1,591 Foreclosed assets 10,807 — — 10,807 Total $ 51,473 $ — $ — $ 51,473 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 49,306 $ 49,306 $ — $ — U.S. government agency securities 36,277 — 36,277 — Obligations of states and political subdivisions 197,092 — 197,092 — Residential mortgage-backed securities 1,429,782 — 1,429,782 — Corporate and other debt securities 37,087 — 37,087 — Total available for sale 1,749,544 49,306 1,700,238 — Loans held for sale (1) 35,155 — 35,155 — Other assets (2) 48,979 — 48,979 — Total assets $ 1,833,678 $ 49,306 $ 1,784,372 $ — Liabilities Other liabilities (2) $ 23,681 $ — $ 23,681 $ — Total liabilities $ 23,681 $ — $ 23,681 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 45,245 $ — $ — $ 45,245 Loan servicing rights 273 — — 273 Foreclosed assets 5,673 — — 5,673 Total $ 51,191 $ — $ — $ 51,191 (1) Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $74.5 million and $34.6 million at December 31, 2019 and 2018 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. Assets and Liabilities Measured at Fair Value on a Recurring Basis The following valuation techniques were used for financial instruments measured at fair value on a recurring basis. All of the valuation techniques described below apply to the unpaid principal balance excluding any accrued interest or dividends at the measurement date. Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium. Equity Securities. Fair values of equity securities, consisting of one publicly traded mutual fund, are derived from quoted market prices in active markets. Available for sale securities. All U.S. Treasury securities, certain corporate and other debt securities, and certain preferred equity securities are reported at fair value utilizing Level 1 inputs. The majority of other investment securities are reported at fair value utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the data and assumptions used in pricing the securities by its third party provider to ensure the highest level of significant inputs are derived from market observable data. In addition, Valley reviews the volume and level of activity for all available for sale securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume. In calculating the fair value of one impaired special revenue bond (within obligations of states and political subdivisions in the table above) under Level 3, Valley prepared its best estimate of the present value of the cash flows to determine an internal price estimate. In determining the internal price, Valley utilized recent financial information and developments provided by the issuer, as well as other unobservable inputs which reflect Valley’s own assumptions about the inputs that market participants would use in pricing of the defaulted security. A quoted price received from an independent pricing service was weighted with the internal price estimate to determine the fair value of the instrument at December 31, 2019 . See Note 4 for additional information regarding this impaired security. Loans held for sale. Residential mortgage loans originated for sale are reported at fair value using Level 2 inputs. The fair values were calculated utilizing quoted prices for similar assets in active markets. The market prices represent a delivery price, which reflects the underlying price each institution would pay Valley for an immediate sale of an aggregate pool of mortgages. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at December 31, 2019 and 2018 based on the short duration these assets were held and the credit quality of these loans. Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The fair value of Valley’s derivatives are determined using third party prices that are based on discounted cash flow analyses using observed market inputs, such as the LIBOR and Overnight Index Swap rate curves. The fair value of mortgage banking derivatives, consisting of interest rate lock commitments to fund residential mortgage loans and forward commitments for the future delivery of such loans (including certain loans held for sale at December 31, 2019 and 2018 ), is determined based on the current market prices for similar instruments. The fair values of most of the derivatives incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to account for potential nonperformance risk of Valley and its counterparties. The credit valuation adjustments were not significant to the overall valuation of Valley’s derivatives at December 31, 2019 and 2018 . Assets and Liabilities Measured at Fair Value on a Non-recurring Basis The following valuation techniques were used for certain non-financial assets measured at fair value on a non-recurring basis, including impaired loans reported at the fair value of the underlying collateral, loan servicing rights and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below. Impaired loans. Certain impaired loans are reported at the fair value of the underlying collateral if repayment is expected solely from the collateral and are commonly referred to as “collateral dependent impaired loans.” Collateral values are estimated using Level 3 inputs, consisting of individual appraisals that are significantly adjusted based on customized discounting criteria. At December 31, 2019 , certain appraisals may be discounted based on specific market data by location and property type. During 2019 and 2018 , collateral dependent impaired loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses and/or a specific valuation allowance allocation based on the fair value of the underlying collateral. The collateral dependent loan charge-offs to the allowance for loan losses totaled $2.1 million and $638 thousand for the years ended December 31, 2019 and 2018 , respectively. These collateral dependent impaired loans with a total recorded investment of $74.6 million and $73.7 million at December 31, 2019 and 2018 , respectively, were reduced by specific valuation allowance allocations totaling $35.5 million and $28.5 million to a reported total net carrying amount of $39.1 million and $45.2 million at December 31, 2019 and 2018 , respectively. Loan servicing rights. Fair values for each risk-stratified group of loan servicing rights are calculated using a fair value model from a third party vendor that requires inputs that are both significant to the fair value measurement and unobservable (Level 3). The fair value model is based on various assumptions, including but not limited to, prepayment speeds, internal rate of return (“discount rate”), servicing cost, ancillary income, float rate, tax rate, and inflation. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. At December 31, 2019 , the fair value model used a blended prepayment speed (stated as constant prepayment rates) of 11.6 percent and a discount rate of 9.6 percent for the valuation of the loan servicing rights. A significant degree of judgment is involved in valuing the loan servicing rights using Level 3 inputs. The use of different assumptions could have a significant positive or negative effect on the fair value estimate. Impairment charges are recognized on loan servicing rights when the amortized cost of a risk-stratified group of loan servicing rights exceeds the estimated fair value. At December 31, 2019 , certain loan servicing rights were re-measured at fair value totaling $1.6 million . Valley recorded net recoveries of impairment charges on its loan servicing rights totaling $36 thousand , $388 thousand and $429 thousand for the years ended December 31, 2019 , 2018 and 2017 , respectively. Foreclosed assets. Certain foreclosed assets (consisting of other real estate owned and other repossessed assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value through a charge-off to the allowance for loan losses based upon the fair value of the foreclosed assets. The fair value of a foreclosed asset, upon initial recognition, is typically estimated using Level 3 inputs, consisting of an appraisal that is adjusted based on customized discounting criteria, similar to the criteria used for impaired loans described above. There were no adjustments to the appraisals of foreclosed assets at December 31, 2019 . During the years ended December 31, 2019 and 2018 , foreclosed assets measured at fair value upon initial recognition or subsequent re-measurement totaled $10.8 million and $5.7 million , respectively. The charge-offs of foreclosed assets to the allowance for loan losses totaled $3.0 million and $2.0 million for the years ended December 31, 2019 and 2018 , respectively. The re-measurement of foreclosed assets at fair value subsequent to their initial recognition resulted in losses of $896 thousand , $390 thousand and $361 thousand included in non-interest expense for the years ended December 31, 2019 , 2018 and 2017 , respectively. Other Fair Value Disclosures ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis. The fair value estimates presented in the following table were based on pertinent market data and relevant information on the financial instruments available as of the valuation date. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire portfolio of financial instruments. Because no market exists for a portion of the financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates. Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For instance, Valley has certain fee-generating business lines (e.g., its mortgage servicing operation, trust and investment management departments) that were not considered in these estimates since these activities are not financial instruments. In addition, the tax implications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates. The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at December 31, 2019 and 2018 were as follows: December 31, 2019 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 256,264 $ 256,264 $ 251,541 $ 251,541 Interest bearing deposits with banks Level 1 178,423 178,423 177,088 177,088 Held to maturity debt securities: U.S. Treasury securities Level 1 138,352 144,113 138,517 142,049 U.S. government agency securities Level 2 7,345 7,362 8,721 8,641 Obligations of states and political subdivisions Level 2 500,705 513,607 585,656 586,033 Residential mortgage-backed securities Level 2 1,620,119 1,629,572 1,266,770 1,235,605 Trust preferred securities Level 2 37,324 31,382 37,332 31,486 Corporate and other debt securities Level 2 32,250 32,684 31,250 31,129 Total investment securities held to maturity 2,336,095 2,358,720 2,068,246 2,034,943 Net loans Level 3 29,537,449 28,964,396 24,883,610 24,068,755 Accrued interest receivable Level 1 105,637 105,637 95,296 95,296 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 214,421 214,421 232,080 232,080 Financial liabilities Deposits without stated maturities Level 1 19,467,892 19,467,892 17,388,990 17,388,990 Deposits with stated maturities Level 2 9,717,945 9,747,867 7,063,984 7,005,573 Short-term borrowings Level 1 1,093,280 1,081,879 2,118,914 2,091,892 Long-term borrowings Level 2 2,122,426 2,181,401 1,654,268 1,751,194 Junior subordinated debentures issued to capital trusts Level 2 55,718 53,889 55,370 55,692 Accrued interest payable (2) Level 1 33,066 33,066 25,762 25,762 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities
Investment Securities | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | INVESTMENT SECURITIES (Note 4) Equity Securities Equity securities carried at fair value totaled $41.4 million at December 31, 2019 . Valley's equity securities consist of one publicly traded money market mutual fund held in trust to secure Valley's assumed obligations under certain former Oritani non-qualified director and employee benefit plans. See Note 13 for further details. Available for Sale Debt Securities The amortized cost, gross unrealized gains and losses and fair value of investment securities available for sale at December 31, 2019 and 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2019 U.S. Treasury securities $ 50,952 $ 12 $ (21 ) $ 50,943 U.S. government agency securities 28,982 280 (19 ) 29,243 Obligations of states and political subdivisions: Obligations of states and state agencies 78,116 540 (83 ) 78,573 Municipal bonds 90,662 902 (86 ) 91,478 Total obligations of states and political subdivisions 168,778 1,442 (169 ) 170,051 Residential mortgage-backed securities 1,248,814 11,234 (5,262 ) 1,254,786 Corporate and other debt securities 61,261 628 (111 ) 61,778 Total investment securities available for sale $ 1,558,787 $ 13,596 $ (5,582 ) $ 1,566,801 December 31, 2018 U.S. Treasury securities $ 50,975 $ — $ (1,669 ) $ 49,306 U.S. government agency securities 36,844 71 (638 ) 36,277 Obligations of states and political subdivisions: Obligations of states and state agencies 100,777 18 (3,682 ) 97,113 Municipal bonds 101,207 209 (1,437 ) 99,979 Total obligations of states and political subdivisions 201,984 227 (5,119 ) 197,092 Residential mortgage-backed securities 1,469,059 1,484 (40,761 ) 1,429,782 Corporate and other debt securities 37,542 213 (668 ) 37,087 Total investment securities available for sale $ 1,796,404 $ 1,995 $ (48,855 ) $ 1,749,544 The age of unrealized losses and fair value of related securities available for sale at December 31, 2019 and 2018 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) December 31, 2019 U.S. Treasury securities $ 25,019 $ (21 ) $ — $ — $ 25,019 $ (21 ) U.S. government agency securities — — 1,783 (19 ) 1,783 (19 ) Obligations of states and political subdivisions: Obligations of states and state agencies 18,540 (21 ) 8,755 (62 ) 27,295 (83 ) Municipal bonds — — 13,177 (86 ) 13,177 (86 ) Total obligations of states and political subdivisions 18,540 (21 ) 21,932 (148 ) 40,472 (169 ) Residential mortgage-backed securities 240,412 (1,194 ) 282,798 (4,068 ) 523,210 (5,262 ) Corporate and other debt securities 5,139 (111 ) — — 5,139 (111 ) Total $ 289,110 $ (1,347 ) $ 306,513 $ (4,235 ) $ 595,623 $ (5,582 ) December 31, 2018 U.S. Treasury securities $ — $ — $ 49,306 $ (1,669 ) $ 49,306 $ (1,669 ) U.S. government agency securities 2,120 (20 ) 26,775 (618 ) 28,895 (638 ) Obligations of states and political subdivisions: Obligations of states and state agencies 17,560 (95 ) 75,718 (3,587 ) 93,278 (3,682 ) Municipal bonds 5,018 (106 ) 70,286 (1,331 ) 75,304 (1,437 ) Total obligations of states and political subdivisions 22,578 (201 ) 146,004 (4,918 ) 168,582 (5,119 ) Residential mortgage-backed securities 119,645 (668 ) 1,221,942 (40,093 ) 1,341,587 (40,761 ) Corporate and other debt securities 12,339 (161 ) 12,397 (507 ) 24,736 (668 ) Total $ 156,682 $ (1,050 ) $ 1,456,424 $ (47,805 ) $ 1,613,106 $ (48,855 ) The unrealized losses on investment debt securities available for sale are primarily due to changes in interest rates (including, in certain cases, changes in credit spreads) and, in some cases, lack of liquidity in the marketplace. The total number of security positions in the securities available for sale portfolio in an unrealized loss position at December 31, 2019 was 182 as compared to 545 at December 31, 2018 . The unrealized losses existing for more than twelve months for the residential mortgage-backed securities category of the available for sale portfolio at December 31, 2019 were largely related to several investment grade securities mainly issued by Ginnie Mae, Fannie Mae, and Freddie Mac. As of December 31, 2019 , the fair value of securities available for sale that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $1.0 billion . The contractual maturities of investment debt securities available for sale at December 31, 2019 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. December 31, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 19,554 $ 19,611 Due after one year through five years 110,337 110,801 Due after five years through ten years 90,297 91,232 Due after ten years 89,785 90,371 Residential mortgage-backed securities 1,248,814 1,254,786 Total investment securities available for sale $ 1,558,787 $ 1,566,801 Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. The weighted-average remaining expected life for residential mortgage-backed securities available for sale was 5.7 years at December 31, 2019 . Held to Maturity Debt Securities The amortized cost, gross unrealized gains and losses and fair value of investment debt securities held to maturity at December 31, 2019 and 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2019 U.S. Treasury securities $ 138,352 $ 5,761 $ — $ 144,113 U.S. government agency securities 7,345 58 (41 ) 7,362 Obligations of states and political subdivisions: Obligations of states and state agencies 297,454 7,745 (529 ) 304,670 Municipal bonds 203,251 5,696 (10 ) 208,937 Total obligations of states and political subdivisions 500,705 13,441 (539 ) 513,607 Residential mortgage-backed securities 1,620,119 14,803 (5,350 ) 1,629,572 Trust preferred securities 37,324 39 (5,981 ) 31,382 Corporate and other debt securities 32,250 454 (20 ) 32,684 Total investment securities held to maturity $ 2,336,095 $ 34,556 $ (11,931 ) $ 2,358,720 December 31, 2018 U.S. Treasury securities $ 138,517 $ 3,532 $ — $ 142,049 U.S. government agency securities 8,721 55 (135 ) 8,641 Obligations of states and political subdivisions: Obligations of states and state agencies 341,702 4,332 (5,735 ) 340,299 Municipal bonds 243,954 3,141 (1,361 ) 245,734 Total obligations of states and political subdivisions 585,656 7,473 (7,096 ) 586,033 Residential mortgage-backed securities 1,266,770 3,203 (34,368 ) 1,235,605 Trust preferred securities 37,332 77 (5,923 ) 31,486 Corporate and other debt securities 31,250 96 (217 ) 31,129 Total investment securities held to maturity $ 2,068,246 $ 14,436 $ (47,739 ) $ 2,034,943 The age of unrealized losses and fair value of related securities held to maturity at December 31, 2019 and 2018 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) December 31, 2019 U.S. government agency securities $ 5,183 $ (41 ) $ — $ — $ 5,183 $ (41 ) Obligations of states and political subdivisions: Obligations of states and state agencies 11,178 (55 ) 32,397 (474 ) 43,575 (529 ) Municipal bonds — — 798 (10 ) 798 (10 ) Total obligations of states and political subdivisions 11,178 (55 ) 33,195 (484 ) 44,373 (539 ) Residential mortgage-backed securities 307,885 (1,387 ) 254,915 (3,963 ) 562,800 (5,350 ) Trust preferred securities — — 29,990 (5,981 ) 29,990 (5,981 ) Corporate and other debt securities — — 4,980 (20 ) 4,980 (20 ) Total $ 324,246 $ (1,483 ) $ 323,080 $ (10,448 ) $ 647,326 $ (11,931 ) December 31, 2018 U.S. government agency securities — — 6,074 (135 ) 6,074 (135 ) Obligations of states and political subdivisions: Obligations of states and state agencies $ 16,098 $ (266 ) $ 138,437 $ (5,469 ) $ 154,535 $ (5,735 ) Municipal bonds 3,335 (37 ) 60,078 (1,324 ) 63,413 (1,361 ) Total obligations of states and political subdivisions 19,433 (303 ) 198,515 (6,793 ) 217,948 (7,096 ) Residential mortgage-backed securities 72,240 (852 ) 846,671 (33,516 ) 918,911 (34,368 ) Trust preferred securities — — 30,055 (5,923 ) 30,055 (5,923 ) Corporate and other debt securities 9,948 (52 ) 4,835 (165 ) 14,783 (217 ) Total $ 101,621 $ (1,207 ) $ 1,086,150 $ (46,532 ) $ 1,187,771 $ (47,739 ) The unrealized losses on investment debt securities available for sale are primarily due to changes in interest rates (including, in certain cases, changes in credit spreads), and in some cases, lack of liquidity in the marketplace. The total number of security positions in the securities held to maturity portfolio in an unrealized loss position at December 31, 2019 was 82 as compared to 378 at December 31, 2018 . The unrealized losses existing for more than twelve months within the residential mortgage-backed securities category of the held to maturity portfolio at December 31, 2019 were largely related to investment grade securities issued by Ginnie Mae and Fannie Mae. The unrealized losses existing for more than twelve months for trust preferred securities at December 31, 2019 primarily related to four non-rated single-issuer securities, issued by bank holding companies. All single-issuer trust preferred securities classified as held to maturity are paying in accordance with their terms, have no deferrals of interest or defaults and, if applicable, the issuers meet the regulatory capital requirements to be considered “well-capitalized institutions” at December 31, 2019 . As of December 31, 2019 , the fair value of debt securities held to maturity that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law was $1.4 billion . The contractual maturities of investments in debt securities held to maturity at December 31, 2019 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. December 31, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 96,230 $ 97,223 Due after one year through five years 170,615 176,005 Due after five years through ten years 216,437 226,086 Due after ten years 232,694 229,834 Residential mortgage-backed securities 1,620,119 1,629,572 Total investment securities held to maturity $ 2,336,095 $ 2,358,720 Actual maturities of debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty. The weighted-average remaining expected life for residential mortgage-backed securities held to maturity was 5.2 years at December 31, 2019 . Other-Than-Temporary Impairment Analysis Valley records impairment charges on its investment debt securities when the decline in fair value is considered other-than-temporary. Numerous factors, including lack of liquidity for re-sales of certain investment securities; decline in the creditworthiness of the issuer; absence of reliable pricing information for investment securities; adverse changes in business climate; adverse actions by regulators; or unanticipated changes in the competitive environment could have a negative effect on Valley’s investment portfolio and may result in other-than-temporary impairment on certain investment securities in future periods. Among other securities, Valley's investments in trust preferred securities, bank issued corporate bonds and special revenue bonds may pose a higher risk of future impairment charges to Valley as a result of the uncertain economic environment and its potential negative effect on the future performance of the security issuers. For the single-issuer trust preferred, corporate, and other debt securities, Valley reviews each portfolio to determine if all the securities are paying in accordance with their terms and have no deferrals of interest or defaults. A deferral event by a bank holding company for which Valley holds trust preferred securities may require the recognition of an other-than-temporary impairment charge if Valley determines that it is more likely than not that all contractual interest and principal cash flows may not be collected. Among other factors, the probability of the collection of all interest and principal determined by Valley in its impairment analysis declines if there is an increase in the estimated deferral period of the issuer. Additionally, a FDIC receivership for any single-issuer would result in an impairment and significant loss. Including the other factors outlined above, Valley analyzes the performance of the issuers on a quarterly basis, including a review of performance data from the issuers’ most recent bank regulatory report, if applicable, to assess their credit risk and the probability of impairment of the contractual cash flows of the applicable security. All of the issuers had capital ratios at December 31, 2019 that were at or above the minimum amounts to be considered a “well-capitalized” financial institution, if applicable, and/or have maintained performance levels adequate to support the contractual cash flows of the trust preferred securities. During 2019, Valley recognized a $2.9 million other-than-temporary credit impairment charge on one special revenue bond classified as available for sale (within the obligations of states and state agencies in the tables above). The credit impairment was due to severe credit deterioration disclosed by the issuer in the second quarter 2019, as well as the issuer's default on its contractual payment. At December 31, 2019 , the impaired security had an adjusted amortized cost and fair value of $680 thousand . Comparatively, there were no other-than-temporary impairment losses on securities recognized in earnings for the years ended December 31, 2018 and 2017 . The impaired special revenue bond was not accruing interest as of December 31, 2019 . At December 31, 2019 , approximately 41.5 percent of the $670.8 million carrying value of obligations of states and political subdivisions were issued by the states of (or municipalities within) New Jersey, Utah, Texas, and Idaho. The obligations of states and political subdivisions mainly consist of general obligation bonds and, to lesser extent, special revenue bonds with amortized cost and fair value totaling $294.9 million and $299.0 million , respectively, at December 31, 2019 . Special revenue bonds were largely issued by the Utah, Idaho, Florida and other state housing authorities, as well Port Authority of New York and New Jersey. As part of Valley’s pre-purchase analysis and on-going quarterly assessment of impairment of the obligations of states and political subdivisions, Valley's Credit Risk Management Department conducts a financial analysis and risk rating assessment of each security issuer based on the issuer’s most recently issued financial statements and other publicly available information. Exclusive of the impaired security, these investments are a mix of bonds with investment grade ratings or not rated paying in accordance with their contractual terms. The vast majority of the bonds not rated by the rating agencies are state housing finance agency revenue bonds secured by Ginnie Mae securities that are commonly referred to as Tax Exempt Mortgage Securities (TEMS). Valley will continue to closely monitor the special revenue bond portfolio as part of its quarterly impairment analysis. Management does not believe that any individual unrealized loss as of December 31, 2019 included in the investment portfolio tables above represents other-than-temporary impairment as management mainly attributes the declines in fair value to changes in interest rates and market volatility, not credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, management believes there are no credit losses on these securities, except for the impaired special revenue bond discussed above. Realized Gains and Losses Gross gains and losses realized on sales, maturities and other securities transactions included in earnings for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Sales transactions: Gross gains $ — $ 1,769 $ — Gross losses — (3,881 ) (25 ) $ — $ (2,112 ) $ (25 ) Maturities and other securities transactions: Gross gains $ 67 $ 42 $ 43 Gross losses (217 ) (272 ) (38 ) $ (150 ) $ (230 ) $ 5 Net losses on securities transactions $ (150 ) $ (2,342 ) $ (20 ) Net losses on sales transactions in 2018 (as presented in the table above) primarily related to the sales of equity securities previously classified as available for sale, certain municipal securities acquired from USAB and all of Valley's private label mortgage-backed securities classified as available for sale, including securities that were previously impaired. |
Loans
Loans | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Loans | LOANS (Note 5) The detail of the loan portfolio as of December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 Non-PCI Loans PCI Loans Total Non-PCI Loans PCI Loans Total (in thousands) Loans: Commercial and industrial $ 4,143,983 $ 682,014 $ 4,825,997 $ 3,590,375 $ 740,657 $ 4,331,032 Commercial real estate: Commercial real estate 10,902,893 5,093,848 15,996,741 9,912,309 2,494,966 12,407,275 Construction 1,495,717 151,301 1,647,018 1,122,348 365,784 1,488,132 Total commercial real estate loans 12,398,610 5,245,149 17,643,759 11,034,657 2,860,750 13,895,407 Residential mortgage 3,796,942 580,169 4,377,111 3,682,984 428,416 4,111,400 Consumer: Home equity 376,020 111,252 487,272 371,340 145,749 517,089 Automobile 1,451,352 271 1,451,623 1,319,206 365 1,319,571 Other consumer 902,702 10,744 913,446 846,821 14,149 860,970 Total consumer loans 2,730,074 122,267 2,852,341 2,537,367 160,263 2,697,630 Total loans $ 23,069,609 $ 6,629,599 $ 29,699,208 $ 20,845,383 $ 4,190,086 $ 25,035,469 Total loans include net unearned premiums and deferred loan costs totaling $12.6 million and $21.5 million at December 31, 2019 and 2018 , respectively. The outstanding balances (representing contractual balances owed to Valley) for PCI loans totaled $6.8 billion and $4.4 billion at December 31, 2019 and 2018 , respectively. Valley transferred $436.5 million and $289.6 million of residential mortgage loans from the loan portfolio to loans held for sale in 2019 and 2018 , respectively. Valley transferred $798 million of commercial real estate loans from the loan portfolio to loans held for sale in 2019 . Excluding the loan transfers, there were no other sales or transfers of loans from the held for investment portfolio during 2019 and 2018 . Purchased Credit-Impaired Loans PCI loans are accounted for in accordance with ASC Subtopic 310-30 and are initially recorded at fair value (as determined by the present value of expected future cash flows) with no valuation allowance (i.e., the allowance for loan losses), and aggregated and accounted for as pools of loans based on common risk characteristics. The difference between the undiscounted cash flows expected at acquisition and the initial carrying amount (fair value) of the PCI loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each pool. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “non-accretable difference,” are not recognized as a yield adjustment, as a loss accrual or a valuation allowance. Reclassifications of the non-accretable difference to the accretable yield may occur subsequent to the loan acquisition dates due to increases in expected cash flows of the loan pools. See Note 1 for additional information. The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the Oritani acquisition as of December 1, 2019 (See Note 2 for more details): December 1, 2019 (in thousands) Contractually required principal and interest $ 4,017,103 Contractual cash flows not expected to be collected (non-accretable difference) (36,084 ) Expected cash flows to be collected 3,981,019 Interest component of expected cash flows (accretable yield) (600,178 ) Fair value of acquired loans $ 3,380,841 The following table presents changes in the accretable yield for PCI loans for the years ended December 31, 2019 and 2018 : 2019 2018 (in thousands) Balance, beginning of period $ 875,958 $ 282,009 Acquisition 600,178 559,907 Accretion (214,415 ) (235,741 ) Net (decrease) increase in expected cash flows (10,995 ) 269,783 Balance, end of period $ 1,250,726 $ 875,958 The net (decrease) increase in expected cash flows for certain pools of loans (included in the table above) is recognized prospectively as an adjustment to the yield over the estimated remaining life of the individual pools. The net decrease in the expected cash flows totaling approximately $11.0 million for the year ended December 31, 2019 was largely due to the high volume of contractual principal prepayments caused by the low level of market interest rates. The net increase in the expected cash flows totaling $269.8 million for the year ended December 31, 2018 was largely due to higher interest rates and increased construction loan balances (mainly acquired from USAB) captured in the cash flow reforecast in the fourth quarter 2018 . Related Party Loans In the ordinary course of business, Valley has granted loans to certain directors, executive officers and their affiliates (collectively referred to as “related parties”). These loans were made on substantially the same terms, including interest rates and collateral, as those prevailing at the time for comparable transactions with other unaffiliated persons and do not involve more than normal risk of collectability. All loans to related parties are performing as of December 31, 2019 . The following table summarizes the changes in the total amounts of loans and advances to the related parties during the year ended December 31, 2019 : 2019 (in thousands) Outstanding at beginning of year $ 214,108 New loans and advances 13,172 Repayments (33,999 ) Outstanding at end of year $ 193,281 Loan Portfolio Risk Elements and Credit Risk Management Credit risk management. For all of its loan types discussed below, Valley adheres to a credit policy designed to minimize credit risk while generating the maximum income given the level of risk appetite. Management reviews and approves these policies and procedures on a regular basis with subsequent approval by the Board of Directors annually. Credit authority relating to a significant dollar percentage of the overall portfolio is centralized and controlled by the Credit Risk Management Division and by the Credit Committee. A reporting system supplements the management review process by providing management with frequent reports concerning loan production, loan quality, internal loan classification, concentrations of credit, loan delinquencies, non-performing, and potential problem loans. Loan portfolio diversification is an important factor utilized by Valley to manage its risk across business sectors and through cyclical economic circumstances. Commercial and industrial loans. A significant portion of Valley’s commercial and industrial loan portfolio is granted to long standing customers of proven ability, strong repayment performance, and high character. Underwriting standards are designed to assess the borrower’s ability to generate recurring cash flow sufficient to meet the debt service requirements of loans granted. While such recurring cash flow serves as the primary source of repayment, a significant number of the loans are collateralized by borrower assets intended to serve as a secondary source of repayment should the need arise. Anticipated cash flows of borrowers, however, may not be as expected and the collateral securing these loans may fluctuate in value, or in the case of loans secured by accounts receivable, the ability of the borrower to collect all amounts due from its customers. Short-term loans may be made on an unsecured basis based on a borrower’s financial strength and past performance. Whenever possible, Valley will obtain the personal guarantee of the borrower’s principals to mitigate the risk. Unsecured loans, when made, are generally granted to the Bank’s most credit worthy borrowers. Unsecured commercial and industrial loans totaled $606.1 million and $580.5 million at December 31, 2019 and 2018 , respectively. The commercial portfolio also includes taxi medallion loans, most of which consist of loans to fleet owners of New York City medallions. At December 31, 2019 , the taxi medallion loans totaled $114.8 million and were classified as either substandard or doubtful loans. While most of the taxi medallion loans within the portfolio at December 31, 2019 are currently performing to their contractual terms, negative trends in the market valuations of the underlying taxi medallion collateral and a decline in borrower cash flows, among other factors, could impact the future performance of this portfolio. Commercial real estate loans . Commercial real estate loans are subject to underwriting standards and processes similar to commercial and industrial loans but generally they involve larger principal balances and longer repayment periods as compared to commercial and industrial loans. Commercial real estate loans are viewed primarily as cash flow loans and secondarily as loans secured by real property. Repayment of most loans is dependent upon the cash flow generated from the property securing the loan or the business that occupies the property. Commercial real estate loans may be more adversely affected by conditions in the real estate markets or in the general economy and accordingly, conservative loan to value ratios are required at origination, as well as stress tested to evaluate the impact of market changes relating to key underwriting elements. The properties securing the commercial real estate portfolio represent diverse types, with most properties located within Valley’s primary markets. Construction loans . With respect to loans to developers and builders, Valley originates and manages construction loans structured on either a revolving or non-revolving basis, depending on the nature of the underlying development project. These loans are generally secured by the real estate to be developed and may also be secured by additional real estate to mitigate the risk. Non-revolving construction loans often involve the disbursement of substantially all committed funds with repayment substantially dependent on the successful completion and sale, or lease, of the project. Sources of repayment for these types of loans may be from pre-committed permanent loans from other lenders, sales of developed property, or an interim loan commitment from Valley until permanent financing is obtained elsewhere. Revolving construction loans (generally relating to single-family residential construction) are controlled with loan advances dependent upon the presale of housing units financed. These loans are closely monitored by on-site inspections and are considered to have higher risks than other real estate loans due to their ultimate repayment being sensitive to interest rate changes, governmental regulation of real property, general economic conditions and the availability of long-term financing. Residential mortgages. Valley originates residential, first mortgage loans based on underwriting standards that generally comply with Fannie Mae and/or Freddie Mac requirements. Appraisals and valuations of real estate collateral are contracted directly with independent appraisers or from valuation services and not through appraisal management companies. The Bank’s appraisal management policy and procedure is in accordance with regulatory requirements and guidance issued by the Bank’s primary regulator. Credit scoring, using FICO ® and other proprietary credit scoring models are employed in the ultimate, judgmental credit decision by Valley’s underwriting staff. Valley does not use third party contract underwriting services. Residential mortgage loans include fixed and variable interest rate loans secured by one to four family homes mostly located in northern and central New Jersey, the New York City metropolitan area, and Florida. Valley’s ability to be repaid on such loans is closely linked to the economic and real estate market conditions in these regions. In deciding whether to originate each residential mortgage, Valley considers the qualifications of the borrower as well as the value of the underlying property. Home equity loans. Home equity lending consists of both fixed and variable interest rate products. Valley mainly provides home equity loans to its residential mortgage customers within the footprint of its primary lending territory. Valley generally will not exceed a combined (i.e., first and second mortgage) loan-to-value ratio of 80 percent when originating a home equity loan. Automobile loans. Valley uses both judgmental and scoring systems in the credit decision process for automobile loans. Automobile originations (including light truck and sport utility vehicles) are largely produced via indirect channels, originated through approved automobile dealers. Automotive collateral is generally a depreciating asset and there are times in the life of an automobile loan where the amount owed on a vehicle may exceed its collateral value. Additionally, automobile charge-offs will vary based on the strength or weakness of the used vehicle market, original advance rate, when in the life cycle of a loan a default occurs and the condition of the collateral being liquidated. Where permitted by law, and subject to the limitations of the bankruptcy code, deficiency judgments are sought and acted upon to ultimately collect all money owed, even when a default resulted in a loss at collateral liquidation. Valley uses a third party to actively track collision and comprehensive risk insurance required of the borrower on the automobile and this third party provides coverage to Valley in the event of an uninsured collateral loss. Other consumer loans. Valley’s other consumer loan portfolio includes direct consumer term loans, both secured and unsecured. The other consumer loan portfolio includes exposures in personal lines of credit (mainly those secured by cash surrender value of life insurance), credit card loans and personal loans. Unsecured consumer loans totaled approximately $53.9 million and $58.1 million , including $8.2 million and $10.4 million of credit card loans, at December 31, 2019 and 2018 , respectively. Valley believes the aggregate risk exposure to unsecured loans and lines of credit was not significant at December 31, 2019 . Credit Quality The following tables present past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at December 31, 2019 and 2018 : Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days Or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) December 31, 2019 Commercial and industrial $ 11,700 $ 2,227 $ 3,986 $ 68,636 $ 86,549 $ 4,057,434 $ 4,143,983 Commercial real estate: Commercial real estate 2,560 4,026 579 9,004 16,169 10,886,724 10,902,893 Construction 1,486 1,343 — 356 3,185 1,492,532 1,495,717 Total commercial real estate loans 4,046 5,369 579 9,360 19,354 12,379,256 12,398,610 Residential mortgage 17,143 4,192 2,042 12,858 36,235 3,760,707 3,796,942 Consumer loans: Home equity 1,051 80 — 1,646 2,777 373,243 376,020 Automobile 11,482 1,581 681 334 14,078 1,437,274 1,451,352 Other consumer 1,171 866 30 224 2,291 900,411 902,702 Total consumer loans 13,704 2,527 711 2,204 19,146 2,710,928 2,730,074 Total $ 46,593 $ 14,315 $ 7,318 $ 93,058 $ 161,284 $ 22,908,325 $ 23,069,609 Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days Or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) December 31, 2018 Commercial and industrial $ 13,085 $ 3,768 $ 6,156 $ 70,096 $ 93,105 $ 3,497,270 $ 3,590,375 Commercial real estate: Commercial real estate 9,521 530 27 2,372 12,450 9,899,859 9,912,309 Construction 2,829 — — 356 3,185 1,119,163 1,122,348 Total commercial real estate loans 12,350 530 27 2,728 15,635 11,019,022 11,034,657 Residential mortgage 16,576 2,458 1,288 12,917 33,239 3,649,745 3,682,984 Consumer loans: Home equity 872 40 — 2,156 3,068 368,272 371,340 Automobile 7,973 1,299 308 80 9,660 1,309,546 1,319,206 Other consumer 895 47 33 419 1,394 845,427 846,821 Total consumer loans 9,740 1,386 341 2,655 14,122 2,523,245 2,537,367 Total $ 51,751 $ 8,142 $ 7,812 $ 88,396 $ 156,101 $ 20,689,282 $ 20,845,383 If interest on non-accrual loans had been accrued in accordance with the original contractual terms, such interest income would have amounted to approximately $2.5 million , $3.6 million , and $2.5 million for the years ended December 31, 2019 , 2018 and 2017 , respectively; none of these amounts were included in interest income during these periods. Impaired loans . Impaired loans, consisting of non-accrual commercial and industrial loans and commercial real estate loans over $250 thousand and all loans which were modified in troubled debt restructurings, are individually evaluated for impairment. PCI loans are not classified as impaired loans because they are accounted for on a pool basis. The following table presents information about impaired loans by loan portfolio class at December 31, 2019 and 2018 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) December 31, 2019 Commercial and industrial $ 14,617 $ 86,243 $ 100,860 $ 114,875 $ 36,662 Commercial real estate: Commercial real estate 26,046 24,842 50,888 51,258 1,338 Construction 354 — 354 354 — Total commercial real estate loans 26,400 24,842 51,242 51,612 1,338 Residential mortgage 5,836 4,853 10,689 11,800 518 Consumer loans: Home equity 366 487 853 956 58 Total consumer loans 366 487 853 956 58 Total $ 47,219 $ 116,425 $ 163,644 $ 179,243 $ 38,576 December 31, 2018 Commercial and industrial $ 8,339 $ 89,513 $ 97,852 $ 104,007 $ 29,684 Commercial real estate: Commercial real estate 16,732 25,606 42,338 44,337 2,615 Construction 803 457 1,260 1,260 13 Total commercial real estate loans 17,535 26,063 43,598 45,597 2,628 Residential mortgage 7,826 6,078 13,904 14,948 600 Consumer loans: Home equity 125 1,146 1,271 1,366 113 Total consumer loans 125 1,146 1,271 1,366 113 Total $ 33,825 $ 122,800 $ 156,625 $ 165,918 $ 33,025 Interest income recognized on a cash basis for impaired loans classified as non-accrual was not material for the years ended December 31, 2019 , 2018 and 2017 . The following table presents, by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 120,376 $ 1,849 $ 108,071 $ 1,822 $ 80,974 $ 1,459 Commercial real estate: Commercial real estate 52,191 2,246 44,838 2,289 54,799 1,908 Construction 354 — 1,517 69 3,258 86 Total commercial real estate loans 52,545 2,246 46,355 2,358 58,057 1,994 Residential mortgage 12,081 390 15,384 506 15,451 760 Consumer loans: Home equity 576 11 865 21 4,295 160 Total consumer loans 576 11 865 21 4,295 160 Total $ 185,578 $ 4,496 $ 170,675 $ 4,707 $ 158,777 $ 4,373 Troubled debt restructured loans . From time to time, Valley may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers who may be experiencing financial difficulties. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a troubled debt restructured loan (TDR). Valley’s PCI loans are excluded from the TDR disclosures below because they are evaluated for impairment on a pool by pool basis. When an individual PCI loan within a pool is modified as a TDR, it is not removed from its pool. All TDRs are classified as impaired loans and are included in the impaired loan disclosures above. The majority of the concessions made for TDRs involve lowering the monthly payments on loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. The concessions rarely result in the forgiveness of principal or accrued interest. In addition, Valley frequently obtains additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms of the loan and Valley’s underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible. Performing TDRs (not reported as non-accrual loans) totaled $73.0 million and $77.2 million as of December 31, 2019 and 2018 , respectively. Non-performing TDRs totaled $65.1 million and $55.0 million as of December 31, 2019 and 2018 , respectively. The following table presents non-PCI loans by loan class modified as TDRs during the years ended December 31, 2019 and 2018 . The pre-modification and post-modification outstanding recorded investments disclosed in the table below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at December 31, 2019 and 2018 , respectively. Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) December 31, 2019 Commercial and industrial 111 $ 77,781 $ 73,503 Commercial real estate: Commercial real estate 2 3,143 3,098 Total commercial real estate 2 3,143 3,098 Residential mortgage 2 376 374 Consumer 2 215 207 Total 117 $ 81,515 $ 77,182 December 31, 2018 Commercial and industrial 25 $ 16,251 $ 15,105 Commercial real estate: Commercial real estate 8 5,643 6,600 Construction 1 532 356 Total commercial real estate 9 6,175 6,956 Residential mortgage 8 1,500 1,461 Consumer 2 99 101 Total 44 $ 24,025 $ 23,623 The total TDRs presented in the table above had allocated specific reserves for loan losses that totaled $36.0 million and $6.5 million at December 31, 2019 and 2018 , respectively. These specific reserves are included in the allowance for loan losses for loans individually evaluated for impairment disclosed in Note 6. There were $4.9 million in loan charge-offs related to loans modified as TDRs for the year ended December 31, 2019 . However, there were no loan charge-offs related to loans modified as TDRs during 2018 . At December 31, 2019 , the commercial and industrial loan category in the above table largely consisted of non-performing and performing TDR taxi cab medallion loans classified as substandard and non-accrual doubtful loans. The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default ( 90 or more days past due) for the years ended December 31, 2019 and 2018 were as follows: Years Ended December 31, 2019 2018 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 43 $ 31,782 10 $ 8,829 Residential mortgage 1 154 3 490 Total 44 $ 31,936 13 $ 9,319 Credit quality indicators . Valley utilizes an internal loan classification system as a means of reporting problem loans within commercial and industrial, commercial real estate, and construction loan portfolio classes. Under Valley’s internal risk rating system, loan relationships could be classified as “Pass,” “Special Mention,” “Substandard,” “Doubtful,” and “Loss.” Substandard loans include loans that exhibit well-defined weakness and are characterized by the distinct possibility that Valley will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. Loans classified as Loss are those considered uncollectible with insignificant value and are charged-off immediately to the allowance for loan losses, and, therefore, not presented in the table below. Loans that do not currently pose a sufficient risk to warrant classification in one of the aforementioned categories but pose weaknesses that deserve management’s close attention are deemed Special Mention. Loans rated as Pass do not currently pose any identified risk and can range from the highest to average quality, depending on the degree of potential risk. Risk ratings are updated any time the situation warrants. The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) based on the most recent analysis performed at December 31, 2019 and 2018 . Credit exposure— by internally assigned risk rating Special Total Non-PCI Pass Mention Substandard Doubtful Loans (in thousands) December 31, 2019 Commercial and industrial $ 3,982,453 $ 33,718 $ 66,511 $ 61,301 $ 4,143,983 Commercial real estate 10,781,587 77,884 42,560 862 10,902,893 Construction 1,487,877 7,486 354 — 1,495,717 Total $ 16,251,917 $ 119,088 $ 109,425 $ 62,163 $ 16,542,593 December 31, 2018 Commercial and industrial $ 3,399,426 $ 31,996 $ 92,320 $ 66,633 $ 3,590,375 Commercial real estate 9,828,744 30,892 51,710 963 9,912,309 Construction 1,121,321 215 812 — 1,122,348 Total $ 14,349,491 $ 63,103 $ 144,842 $ 67,596 $ 14,625,032 At December 31, 2019 , the commercial and industrial loans rated substandard and doubtful in the above table were mainly comprised of performing TDR taxi medallion loans and non-accrual taxi medallion loans, respectively. For residential mortgages, automobile, home equity and other consumer loan portfolio classes (excluding PCI loans), Valley also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the recorded investment in those loan classes based on payment activity as of December 31, 2019 and 2018 : Credit exposure— by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) December 31, 2019 Residential mortgage $ 3,784,084 $ 12,858 $ 3,796,942 Home equity 374,374 1,646 376,020 Automobile 1,451,018 334 1,451,352 Other consumer 902,478 224 902,702 Total $ 6,511,954 $ 15,062 $ 6,527,016 December 31, 2018 Residential mortgage $ 3,670,067 $ 12,917 $ 3,682,984 Home equity 369,184 2,156 371,340 Automobile 1,319,126 80 1,319,206 Other consumer 846,402 419 846,821 Total $ 6,204,779 $ 15,572 $ 6,220,351 Valley evaluates the credit quality of its PCI loan pools based on the expectation of the underlying cash flows of each pool, derived from the aging status and by payment activity of individual loans within the pool. The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of December 31, 2019 and 2018 : Credit exposure— Performing Non-Performing Total by payment activity Loans Loans PCI Loans (in thousands) December 31, 2019 Commercial and industrial $ 653,997 $ 28,017 $ 682,014 Commercial real estate 5,065,388 28,460 5,093,848 Construction 148,692 2,609 151,301 Residential mortgage 571,006 9,163 580,169 Consumer 120,356 1,911 122,267 Total $ 6,559,439 $ 70,160 $ 6,629,599 December 31, 2018 Commercial and industrial $ 710,045 $ 30,612 $ 740,657 Commercial real estate 2,478,990 15,976 2,494,966 Construction 364,815 969 365,784 Residential mortgage 421,609 6,807 428,416 Consumer 158,502 1,761 160,263 Total $ 4,133,961 $ 56,125 $ 4,190,086 |
Allowance for Credit Losses
Allowance for Credit Losses | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Allowance for Credit Losses | ALLOWANCE FOR CREDIT LOSSES (Note 6) The allowance for credit losses consists of the allowance for loan losses and the allowance for unfunded letters of credit. Management maintains the allowance for credit losses at a level estimated to absorb probable loan losses of the loan portfolio and unfunded letter of credit commitments at the balance sheet date. The allowance for loan losses is based on ongoing evaluations of the probable estimated losses inherent in the loan portfolio, including unexpected additional credit impairment of PCI loan pools subsequent to acquisition. There was no allowance allocation for PCI loan losses at December 31, 2019 and 2018 . The following table summarizes the allowance for credit losses at December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 161,759 $ 151,859 Allowance for unfunded letters of credit 2,845 4,436 Total allowance for credit losses $ 164,604 $ 156,295 The following table summarizes the provision for credit losses for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Components of provision for credit losses: Provision for loan losses $ 25,809 $ 31,661 $ 8,531 Provision for unfunded letters of credit (1,591 ) 840 1,411 Total provision for credit losses $ 24,218 $ 32,501 $ 9,942 The following table details the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2019 and 2018 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) December 31, 2019 Allowance for loan losses: Beginning balance $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans charged-off (13,260 ) (158 ) (126 ) (8,671 ) (22,215 ) Charged-off loans recovered 2,397 1,237 66 2,606 6,306 Net (charge-offs) recoveries (10,863 ) 1,079 (60 ) (6,065 ) (15,909 ) Provision for loan losses 23,966 (5,056 ) 79 6,820 25,809 Ending balance $ 104,059 $ 45,673 $ 5,060 $ 6,967 $ 161,759 December 31, 2018 Allowance for loan losses: Beginning balance $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans charged-off (2,515 ) (348 ) (223 ) (4,977 ) (8,063 ) Charged-off loans recovered 4,623 417 272 2,093 7,405 Net recoveries (charge-offs) 2,108 69 49 (2,884 ) (658 ) Provision for loan losses 31,616 (5,373 ) 1,387 4,031 31,661 Ending balance $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology for the years ended December 31, 2019 and 2018 . Loans individually evaluated for impairment represent Valley’s impaired loans. Loans acquired with discounts related to credit quality represent Valley’s PCI loans. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) December 31, 2019 Allowance for loan losses: Individually evaluated for impairment $ 36,662 $ 1,338 $ 518 $ 58 $ 38,576 Collectively evaluated for impairment 67,397 44,335 4,542 6,909 123,183 Total $ 104,059 $ 45,673 $ 5,060 $ 6,967 $ 161,759 Loans: Individually evaluated for impairment $ 100,860 $ 51,242 $ 10,689 $ 853 $ 163,644 Collectively evaluated for impairment 4,043,123 12,347,368 3,786,253 2,729,221 22,905,965 Loans acquired with discounts related to credit quality 682,014 5,245,149 580,169 122,267 6,629,599 Total $ 4,825,997 $ 17,643,759 $ 4,377,111 $ 2,852,341 $ 29,699,208 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 29,684 $ 2,628 $ 600 $ 113 $ 33,025 Collectively evaluated for impairment 61,272 47,022 4,441 6,099 118,834 Total $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans: Individually evaluated for impairment $ 97,852 $ 43,598 $ 13,904 $ 1,271 $ 156,625 Collectively evaluated for impairment 3,492,523 10,991,059 3,669,080 2,536,096 20,688,758 Loans acquired with discounts related to credit quality 740,657 2,860,750 428,416 160,263 4,190,086 Total $ 4,331,032 $ 13,895,407 $ 4,111,400 $ 2,697,630 $ 25,035,469 |
Leases
Leases | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
Leases | LEASES (Note 7) The following table presents the components of the right of use (ROU) assets and lease liabilities in the consolidated statements of position by lease type at December 31, 2019 . 2019 (in thousands) ROU assets: Operating leases $ 284,255 Finance leases 874 Total $ 285,129 Lease liabilities: Operating leases $ 308,060 Finance leases 1,789 Total $ 309,849 In March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12.0 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the year ended December 31, 2019 : 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 291 Interest on lease liabilities 191 Operating lease cost 34,175 Short-term lease cost 410 Variable lease cost 3,573 Sublease income (3,422 ) Total lease cost (included in net occupancy and equipment expense) $ 35,218 The following table presents supplemental cash flow information related to leases for the year ended December 31, 2019 : 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34,380 Operating cash flows from finance leases 192 Financing cash flows from finance leases 492 The following table presents supplemental information related to leases at December 31, 2019 : 2019 Weighted-average remaining lease term Operating leases 12.8 years Finance leases 3.00 years Weighted-average discount rate Operating leases 3.68 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 The total net investment in direct financing and sales-type leases was $478.8 million and $327.3 million at December 31, 2019 and 2018 , respectively, comprised of $477.1 million and $326.2 million in lease receivables and $1.7 million and $1.1 million in unguaranteed residuals, respectively. Total lease income was $19.4 million , $14.7 million and $13.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The following table presents minimum aggregate lease payments in accordance with ASC Topic 840 at December 31, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2019 $ 29,093 $ 2,382 $ 26,711 2020 29,379 2,290 27,089 2021 28,925 2,160 26,765 2022 27,562 2,002 25,560 2023 25,064 1,938 23,126 Thereafter 262,200 8,558 253,642 Total lease payments $ 402,223 $ 19,330 $ 382,893 Net occupancy and equipment expense included lease cost of $29.0 million and $27.7 million , net of sublease income of $3.5 million and $3.9 million , for the years ended December 31, 2018 and 2017 , respectively. |
Leases | LEASES (Note 7) The following table presents the components of the right of use (ROU) assets and lease liabilities in the consolidated statements of position by lease type at December 31, 2019 . 2019 (in thousands) ROU assets: Operating leases $ 284,255 Finance leases 874 Total $ 285,129 Lease liabilities: Operating leases $ 308,060 Finance leases 1,789 Total $ 309,849 In March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12.0 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the year ended December 31, 2019 : 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 291 Interest on lease liabilities 191 Operating lease cost 34,175 Short-term lease cost 410 Variable lease cost 3,573 Sublease income (3,422 ) Total lease cost (included in net occupancy and equipment expense) $ 35,218 The following table presents supplemental cash flow information related to leases for the year ended December 31, 2019 : 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34,380 Operating cash flows from finance leases 192 Financing cash flows from finance leases 492 The following table presents supplemental information related to leases at December 31, 2019 : 2019 Weighted-average remaining lease term Operating leases 12.8 years Finance leases 3.00 years Weighted-average discount rate Operating leases 3.68 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 The total net investment in direct financing and sales-type leases was $478.8 million and $327.3 million at December 31, 2019 and 2018 , respectively, comprised of $477.1 million and $326.2 million in lease receivables and $1.7 million and $1.1 million in unguaranteed residuals, respectively. Total lease income was $19.4 million , $14.7 million and $13.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The following table presents minimum aggregate lease payments in accordance with ASC Topic 840 at December 31, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2019 $ 29,093 $ 2,382 $ 26,711 2020 29,379 2,290 27,089 2021 28,925 2,160 26,765 2022 27,562 2,002 25,560 2023 25,064 1,938 23,126 Thereafter 262,200 8,558 253,642 Total lease payments $ 402,223 $ 19,330 $ 382,893 Net occupancy and equipment expense included lease cost of $29.0 million and $27.7 million , net of sublease income of $3.5 million and $3.9 million , for the years ended December 31, 2018 and 2017 , respectively. |
Leases | LEASES (Note 7) The following table presents the components of the right of use (ROU) assets and lease liabilities in the consolidated statements of position by lease type at December 31, 2019 . 2019 (in thousands) ROU assets: Operating leases $ 284,255 Finance leases 874 Total $ 285,129 Lease liabilities: Operating leases $ 308,060 Finance leases 1,789 Total $ 309,849 In March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12.0 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the year ended December 31, 2019 : 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 291 Interest on lease liabilities 191 Operating lease cost 34,175 Short-term lease cost 410 Variable lease cost 3,573 Sublease income (3,422 ) Total lease cost (included in net occupancy and equipment expense) $ 35,218 The following table presents supplemental cash flow information related to leases for the year ended December 31, 2019 : 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34,380 Operating cash flows from finance leases 192 Financing cash flows from finance leases 492 The following table presents supplemental information related to leases at December 31, 2019 : 2019 Weighted-average remaining lease term Operating leases 12.8 years Finance leases 3.00 years Weighted-average discount rate Operating leases 3.68 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 The total net investment in direct financing and sales-type leases was $478.8 million and $327.3 million at December 31, 2019 and 2018 , respectively, comprised of $477.1 million and $326.2 million in lease receivables and $1.7 million and $1.1 million in unguaranteed residuals, respectively. Total lease income was $19.4 million , $14.7 million and $13.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The following table presents minimum aggregate lease payments in accordance with ASC Topic 840 at December 31, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2019 $ 29,093 $ 2,382 $ 26,711 2020 29,379 2,290 27,089 2021 28,925 2,160 26,765 2022 27,562 2,002 25,560 2023 25,064 1,938 23,126 Thereafter 262,200 8,558 253,642 Total lease payments $ 402,223 $ 19,330 $ 382,893 Net occupancy and equipment expense included lease cost of $29.0 million and $27.7 million , net of sublease income of $3.5 million and $3.9 million , for the years ended December 31, 2018 and 2017 , respectively. |
Leases | LEASES (Note 7) The following table presents the components of the right of use (ROU) assets and lease liabilities in the consolidated statements of position by lease type at December 31, 2019 . 2019 (in thousands) ROU assets: Operating leases $ 284,255 Finance leases 874 Total $ 285,129 Lease liabilities: Operating leases $ 308,060 Finance leases 1,789 Total $ 309,849 In March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12.0 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the year ended December 31, 2019 : 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 291 Interest on lease liabilities 191 Operating lease cost 34,175 Short-term lease cost 410 Variable lease cost 3,573 Sublease income (3,422 ) Total lease cost (included in net occupancy and equipment expense) $ 35,218 The following table presents supplemental cash flow information related to leases for the year ended December 31, 2019 : 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34,380 Operating cash flows from finance leases 192 Financing cash flows from finance leases 492 The following table presents supplemental information related to leases at December 31, 2019 : 2019 Weighted-average remaining lease term Operating leases 12.8 years Finance leases 3.00 years Weighted-average discount rate Operating leases 3.68 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 The total net investment in direct financing and sales-type leases was $478.8 million and $327.3 million at December 31, 2019 and 2018 , respectively, comprised of $477.1 million and $326.2 million in lease receivables and $1.7 million and $1.1 million in unguaranteed residuals, respectively. Total lease income was $19.4 million , $14.7 million and $13.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The following table presents minimum aggregate lease payments in accordance with ASC Topic 840 at December 31, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2019 $ 29,093 $ 2,382 $ 26,711 2020 29,379 2,290 27,089 2021 28,925 2,160 26,765 2022 27,562 2,002 25,560 2023 25,064 1,938 23,126 Thereafter 262,200 8,558 253,642 Total lease payments $ 402,223 $ 19,330 $ 382,893 Net occupancy and equipment expense included lease cost of $29.0 million and $27.7 million , net of sublease income of $3.5 million and $3.9 million , for the years ended December 31, 2018 and 2017 , respectively. |
Leases | LEASES (Note 7) The following table presents the components of the right of use (ROU) assets and lease liabilities in the consolidated statements of position by lease type at December 31, 2019 . 2019 (in thousands) ROU assets: Operating leases $ 284,255 Finance leases 874 Total $ 285,129 Lease liabilities: Operating leases $ 308,060 Finance leases 1,789 Total $ 309,849 In March 2019, Valley closed a sale-leaseback transaction for 26 properties, consisting of 25 branches and 1 corporate office, for an aggregate sales price of $100.5 million . As a result, Valley recorded a pre-tax net gain totaling $78.5 million during the first quarter 2019. Additionally, Valley recorded ROU assets and lease obligations totaling $78.4 million , respectively, for the lease of the 26 properties with an expected term of 12.0 years . The lease was determined to be an operating lease and Valley expects to record lease costs of approximately $7.9 million within occupancy and equipment expense on a straight-line basis annually over the term of the lease. The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the year ended December 31, 2019 : 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 291 Interest on lease liabilities 191 Operating lease cost 34,175 Short-term lease cost 410 Variable lease cost 3,573 Sublease income (3,422 ) Total lease cost (included in net occupancy and equipment expense) $ 35,218 The following table presents supplemental cash flow information related to leases for the year ended December 31, 2019 : 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34,380 Operating cash flows from finance leases 192 Financing cash flows from finance leases 492 The following table presents supplemental information related to leases at December 31, 2019 : 2019 Weighted-average remaining lease term Operating leases 12.8 years Finance leases 3.00 years Weighted-average discount rate Operating leases 3.68 % Finance leases 8.25 % The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 The total net investment in direct financing and sales-type leases was $478.8 million and $327.3 million at December 31, 2019 and 2018 , respectively, comprised of $477.1 million and $326.2 million in lease receivables and $1.7 million and $1.1 million in unguaranteed residuals, respectively. Total lease income was $19.4 million , $14.7 million and $13.6 million for the years ended December 31, 2019 , 2018 , and 2017 , respectively. The following table presents minimum aggregate lease payments in accordance with ASC Topic 840 at December 31, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2019 $ 29,093 $ 2,382 $ 26,711 2020 29,379 2,290 27,089 2021 28,925 2,160 26,765 2022 27,562 2,002 25,560 2023 25,064 1,938 23,126 Thereafter 262,200 8,558 253,642 Total lease payments $ 402,223 $ 19,330 $ 382,893 Net occupancy and equipment expense included lease cost of $29.0 million and $27.7 million , net of sublease income of $3.5 million and $3.9 million , for the years ended December 31, 2018 and 2017 , respectively. |
Premises and Equipment, Net
Premises and Equipment, Net | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Premises and Equipment, Net | PREMISES AND EQUIPMENT, NET (Note 8) At December 31, 2019 and 2018 , premises and equipment, net consisted of: 2019 2018 (in thousands) Land $ 93,594 $ 93,600 Buildings 220,140 250,510 Leasehold improvements 85,042 77,425 Furniture and equipment 274,715 263,604 Total premises and equipment 673,491 685,139 Accumulated depreciation and amortization (338,958 ) (343,509 ) Total premises and equipment, net $ 334,533 $ 341,630 Depreciation and amortization of premises and equipment included in non-interest expense for the years ended December 31, 2019 , 2018 and 2017 was approximately $29.4 million , $27.6 million , and $24.8 million , respectively. |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Goodwill and Other Intangible Assets | GOODWILL AND OTHER INTANGIBLE ASSETS (Note 9) The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were: Business Segment / Reporting Unit* Wealth Management Consumer Lending Commercial Lending Investment Management Total (in thousands) Balance at December 31, 2017 $ 21,218 $ 200,103 $ 316,258 $ 153,058 $ 690,637 Goodwill from business combinations — 86,922 241,592 65,514 394,028 Balance at December 31, 2018 $ 21,218 $ 287,025 $ 557,850 $ 218,572 $ 1,084,665 Goodwill from business combinations — 19,547 267,917 1,496 288,960 Balance at December 31, 2019 $ 21,218 $ 306,572 $ 825,767 $ 220,068 $ 1,373,625 * Valley’s Wealth Management Division is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes. The goodwill from business combinations during 2019 and 2018 set forth in the table above relates to the Oritani and USAB acquisitions, respectively. See Note 2 for further details. There was no impairment of goodwill during the years ended December 31, 2019 , 2018 and 2017 . The following tables summarize other intangible assets as of December 31, 2019 and 2018 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) December 31, 2019 Loan servicing rights $ 94,827 $ (70,095 ) $ (47 ) $ 24,685 Core deposits 101,160 (40,384 ) — 60,776 Other 3,945 (2,634 ) — 1,311 Total other intangible assets $ 199,932 $ (113,113 ) $ (47 ) $ 86,772 December 31, 2018 Loan servicing rights $ 87,354 $ (63,161 ) $ (83 ) $ 24,110 Core deposits 80,470 (29,136 ) — 51,334 Other 3,945 (2,399 ) — 1,546 Total other intangible assets $ 171,769 $ (94,696 ) $ (83 ) $ 76,990 Core deposits are amortized using an accelerated method and have a weighted average amortization period of 8.9 years . The line item labeled “Other” included in the table above primarily consists of customer lists which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of 7.6 years . Valley recorded $20.7 million of core deposit intangibles resulting from the Oritani acquisition. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the years ended December 31, 2019 , 2018 and 2017 . The following table summarizes the change in loan servicing rights during the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Loan servicing rights: Balance at beginning of year $ 24,193 $ 22,084 $ 20,368 Origination of loan servicing rights 7,473 8,216 7,039 Amortization expense (6,934 ) (6,107 ) (5,323 ) Balance at end of year $ 24,732 $ 24,193 $ 22,084 Valuation allowance: Balance at beginning of year $ (83 ) $ (471 ) $ (900 ) Impairment adjustment 36 388 429 Balance at end of year $ (47 ) $ (83 ) $ (471 ) Balance at end of year, net of valuation allowance $ 24,685 $ 24,110 $ 21,613 Loan servicing rights are accounted for using the amortization method. See Note 1 for more details. The Bank is a servicer of residential mortgage loan portfolios, and it is compensated for loan administrative services performed for mortgage servicing rights of loans originated and sold by the Bank, and to a lesser extent, purchased mortgage servicing rights. The aggregate principal balances of residential mortgage loans serviced by the Bank for others approximated $3.4 billion , $3.2 billion and $2.8 billion at December 31, 2019 , 2018 and 2017 , respectively. The outstanding balance of loans serviced for others is not included in the consolidated statements of financial condition. Valley recognized amortization expense on other intangible assets, including net recoveries of impairment charges on loan servicing rights (reflected in the table above), of $18.1 million , $18.4 million and $10.0 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table presents the estimated amortization expense of other intangible assets over the next five-year period: Year Loan Servicing Rights Core Deposits Other (in thousands) 2020 $ 4,263 $ 13,363 $ 220 2021 3,532 11,607 206 2022 2,929 9,876 191 2023 2,429 8,146 131 2024 2,016 6,537 117 |
Deposits
Deposits | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Deposits | DEPOSITS (Note 10) Included in time deposits are certificates of deposit over $250 thousand totaling $1.7 billion and $1.1 billion at December 31, 2019 and 2018 , respectively. Interest expense on time deposits of $250 thousand or more totaled approximately $5.8 million , $6.6 million and $1.3 million in 2019 , 2018 and 2017 , respectively. The scheduled maturities of time deposits as of December 31, 2019 are as follows: Year Amount (in thousands) 2020 $ 8,507,854 2021 657,366 2022 343,224 2023 134,800 2024 56,775 Thereafter 17,926 Total time deposits $ 9,717,945 Deposits from certain directors, executive officers and their affiliates totaled $67.1 million and $66.8 million at December 31, 2019 and 2018 , respectively. |
Borrowed Funds
Borrowed Funds | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Borrowed Funds | BORROWED FUNDS (Note 11) Short-Term Borrowings Short-term borrowings at December 31, 2019 and 2018 consisted of the following: 2019 2018 (in thousands) FHLB advances $ 940,000 $ 1,732,000 Securities sold under agreements to repurchase 153,280 261,914 Federal funds purchased — 125,000 Total short-term borrowings $ 1,093,280 $ 2,118,914 The weighted average interest rate for short-term borrowings was 1.68 percent and 2.45 percent at December 31, 2019 and 2018 , respectively. Long-Term Borrowings Long-term borrowings at December 31, 2019 and 2018 consisted of the following: 2019 2018 (in thousands) FHLB advances, net (1) $ 1,480,012 $ 1,309,666 Securities sold under agreements to repurchase 350,000 50,000 Subordinated debt, net (2) 292,414 294,602 Total long-term borrowings $ 2,122,426 $ 1,654,268 (1) FHLB advances are presented net of unamortized prepayment penalties and other purchase accounting adjustments totaling $2.8 million and $10.3 million at December 31, 2019 and 2018, respectively. (2) Subordinated debt is presented net of unamortized debt issuance costs totaling $1.2 million and $1.4 million at December 31, 2019 and 2018, respectively. In 2019, Valley prepaid $635.0 million of the long-term FHLB advances. These prepaid borrowings had contractual maturity dates in 2021 and 2022 and a total average interest rate of 3.93 percent . The debt prepayment was funded by cash proceeds from the sale of commercial real estate loans and overnight borrowings. The transaction was accounted for as an early debt extinguishment resulting in a loss of $32.0 million , reported within non-interest expense, for the year ended December 31, 2019. FHLB Advances. The long-term FHLB advances had a weighted average interest rate of 2.23 percent and 3.13 percent at December 31, 2019 and 2018 , respectively. These FHLB advances are secured by pledges of certain eligible collateral, including but not limited to, U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgage and commercial real estate loans. Valley assumed $430.1 million of FHLB advances in connection with the Oritani acquisition on December 1, 2019. The long-term FHLB advances at December 31, 2019 are scheduled for contractual balance repayments as follows: Year Amount (in thousands) 2020 $ 83,418 2021 994,768 2022 121,419 2023 78,164 2024 200,000 Thereafter 5,000 Total long-term FHLB advances $ 1,482,769 There are no FHLB advances with scheduled repayments in years 2020 and thereafter, reported in the table above, which are callable for early redemption by the FHLB during 2020. Subordinated Debt. In June 2015, Valley issued $100 million of 4.55 percent subordinated debentures (notes) due July 30, 2025 with no call dates or prepayments allowed unless certain conditions exist. Interest on the subordinated notes is payable semi-annually in arrears on June 30 and December 30 of each year. The subordinated notes had a net carrying value of $99.4 million and $99.3 million at December 31, 2019 and 2018 , respectively. In September 2013, Valley issued $125 million of its 5.125 percent subordinated notes due September 27, 2023 with no call dates or prepayments allowed, unless certain conditions exist. Interest on the subordinated debentures is payable semi-annually in arrears on March 27 and September 27 of each year. In conjunction with the issuance, Valley entered into an interest rate swap transaction used to hedge the change in the fair value of the subordinated notes. In August 2016, the fair value interest rate swap with a notional amount of $125 million was terminated resulting in an adjusted fixed annual interest rate of 3.32 percent on the subordinated notes, after amortization of the derivative valuation adjustment recorded at the termination date. The subordinated notes had a net carrying value of $132.4 million and $134.2 million at December 31, 2019 and 2018 , respectively. On January 1, 2018, Valley assumed $60 million of 6.25 percent subordinated notes, in connection with the acquisition of USAB. The notes are due April 1, 2026 callable beginning April 2021. Interest on the subordinated debentures is payable semi-annually in arrears on April 1 and October 1 of each year. After purchase accounting adjustments, the subordinated notes had a net carrying value of $60.6 million and $61.1 million at December 31, 2019 and 2018 , respectively. Long-term securities sold under agreements to repurchase (repos). The long-term repos had a weighted average interest rate of 1.94 percent and 3.70 percent at December 31, 2019 and 2018 , respectively. The long-term repos at December 31, 2019 are scheduled for contractual balance repayments as follows: Year Amount (in thousands) 2021 $ 300,000 2022 50,000 Total long-term securities sold under agreements to repurchase $ 350,000 Pledged Securities. The fair value of securities pledged to secure public deposits, repurchase agreements, lines of credit, FHLB advances and for other purposes required by law approximated $2.3 billion and $2.4 billion for December 31, 2019 and 2018 , respectively. |
Junior Subordinated Debentures
Junior Subordinated Debentures Issued to Capital Trusts | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Junior Subordinated Debentures Issued to Capital Trusts | JUNIOR SUBORDINATED DEBENTURES ISSUED TO CAPITAL TRUSTS (Note 12) All of the statutory trusts presented in the table below were acquired in past bank acquisitions, including the Aliant Statutory Trust II acquired from USAB on January 1, 2018. These trusts were established for the sole purpose of issuing trust preferred securities and related trust common securities. The proceeds from such issuances were used by the trust to purchase an equivalent amount of junior subordinated debentures issued by the acquired bank, and now assumed by Valley. The junior subordinated debentures, the sole assets of the trusts, are unsecured obligations of Valley, and are subordinate and junior in right of payment to all present and future senior and subordinated indebtedness and certain other financial obligations of Valley. Valley does not consolidate its capital trusts based on U.S. GAAP but wholly owns all of the common securities of each trust. The table below summarizes the outstanding junior subordinated debentures and the related trust preferred securities issued by each trust as of December 31, 2019 and 2018 : GCB Capital Trust III State Bancorp Capital Trust I State Bancorp Capital Trust II Aliant Statutory Trust II ($ in thousands) Junior Subordinated Debentures: December 31, 2019 Carrying value (1) $ 24,743 $ 9,025 $ 8,468 $ 13,482 Contractual principal balance 24,743 10,310 10,310 15,464 December 31, 2018 Carrying value (1) $ 24,743 $ 8,924 $ 8,337 $ 13,366 Contractual principal balance 24,743 10,310 10,310 15,464 Annual interest rate 3-mo. LIBOR+1.4% 3-mo. LIBOR+3.45% 3-mo. LIBOR+2.85% 3-mo. LIBOR+1.8% Stated maturity date July 30, 2037 November 7, 2032 January 23, 2034 December 15, 2036 Initial call date July 30, 2017 November 7, 2007 January 23, 2009 December 15, 2011 Trust Preferred Securities: December 31, 2019 and 2018 Face value $ 24,000 $ 10,000 $ 10,000 $ 15,000 Annual distribution rate 3-mo. LIBOR+1.4% 3-mo. LIBOR+3.45% 3-mo. LIBOR+2.85% 3-mo. LIBOR+1.8% Issuance date July 2, 2007 October 29, 2002 December 19, 2003 December 14, 2006 Distribution dates (2) Quarterly Quarterly Quarterly Quarterly (1) The carrying values include unamortized purchase accounting adjustments at December 31, 2019 and 2018 . (2) All cash distributions are cumulative. The trust preferred securities are subject to mandatory redemption, in whole or in part, upon repayment of the junior subordinated debentures at the stated maturity date or upon early redemption. The trusts’ ability to pay amounts due on the trust preferred securities is solely dependent upon Valley making payments on the related junior subordinated debentures. Valley’s obligation under the junior subordinated debentures and other relevant trust agreements, in aggregate, constitutes a full and unconditional guarantee by Valley of the trusts’ obligations under the trust preferred securities issued. Under the junior subordinated debenture agreements, Valley has the right to defer payment of interest on the debentures and, therefore, distributions on the trust preferred securities, for up to five years , but not beyond the stated maturity dates in the table above. Currently, Valley has no intention to exercise its right to defer interest payments on the debentures. The trust preferred securities are included in Valley’s total risk-based capital (as Tier 2 capital) for regulatory purposes at December 31, 2019 and 2018 . |
Benefit Plans
Benefit Plans | 12 Months Ended |
Dec. 31, 2019 | |
Retirement Benefits [Abstract] | |
Benefit Plans | BENEFIT PLANS (Note 13) Pension Plan The Bank has a non-contributory defined benefit plan (qualified plan) covering most of its employees. The qualified plan benefits are based upon years of credited service and the employee’s highest average compensation as defined. Additionally, the Bank has a supplemental non-qualified, non-funded retirement plan, which is designed to supplement the pension plan for key officers, and Valley has a non-qualified, non-funded directors’ retirement plan (both of these plans are referred to as the “non-qualified plans” below). Effective December 31, 2013, the benefits earned under the qualified and non-qualified plans were frozen. As a result, Valley re-measured the projected benefit obligation of the affected plans and the funded status of each plan at June 30, 2013. Consequently, participants in each plan will not accrue further benefits and their pension benefits will be determined based on their compensation and service as of December 31, 2013. Plan benefits will not increase for any compensation or service earned after such date. All participants were immediately vested in their frozen accrued benefits if they were employed by the Bank as of December 31, 2013. 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. 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 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 — — In determining discount rate assumptions, management looks to current rates on fixed-income corporate debt securities that receive a rating of AA or higher from either Moody’s or S&P with durations equal to the expected benefit payments streams required of each plan. The weighted average discount rate used in determining the actuarial present value of benefit obligations for the qualified and non-qualified plans was 3.32 percent and 4.30 percent as of December 31, 2019 and 2018 , respectively. 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 ) Valley estimated the interest cost component of net periodic pension income (as shown in the table above) using a spot rate approach for the plans by applying the specific spot rates along the yield curve to the relevant projected cash flows. Valley believes this provides a better estimate of interest costs than a single weighted average discount rate derived from the yield curve used to measure the benefit obligation at the beginning of the applicable period. 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 ) 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 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 The expected rate of return on plan assets assumption is based on the concept that it is a long-term assumption independent of the current economic environment and changes would be made in the expected return only when long-term inflation expectations change, asset allocations change materially or when asset class returns are expected to change for the long-term. In accordance with Section 402 (c) of ERISA, the qualified plan’s investment managers are granted full discretion to buy, sell, invest and reinvest the portions of the portfolio assigned to them consistent with the Bank’s Pension Committee’s policy and guidelines. The target asset allocation set for the qualified plan is an approximate equal weighting of 50 percent fixed income securities and 50 percent equity securities. The absolute investment objective for the equity portion is to earn at least 7 percent cumulative annualized real return, after adjustment by the Consumer Price Index (CPI), over rolling five -year periods, while the relative objective is to earn returns above the S&P 500 Index over rolling three -year periods. For the fixed income portion, the absolute objective is to earn at least a 3 percent cumulative annual real return, after adjustment by the CPI over rolling five -year periods with a relative objective of earning returns above the Merrill Lynch Intermediate Government/Corporate Index over rolling three -year periods. Cash equivalents will be invested in money market funds or in other high quality instruments approved by the Trustees of the qualified plan. The exposure of the plan assets of the qualified plan to a concentration of credit risk is limited by the Bank’s Pension Committee’s diversification of the investments into various investment options with multiple asset managers. The Pension Committee engages an investment management advisory firm that regularly monitors the performance of the asset managers and ensures they are within compliance of the policies adopted by the Trustees. If the risk profile and overall return of assets managed are not in line with the risk objectives or expected return benchmarks for the qualified plan, the advisory firm may recommend the termination of an asset manager to the Pension Committee. In general, the plan assets of the qualified plan are investment securities that are well-diversified in terms of industry, capitalization and asset class. 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 $ — The following is a description of the valuation methodologies used for assets measured at fair value: Equity securities, U.S. Treasury securities and cash and money market funds are valued at fair value in the table above utilizing exchange quoted prices in active markets for identical instruments (Level 1 inputs). Mutual funds are measured at their respective net asset values, which represents fair values of the securities held in the funds based on exchange quoted prices available in active markets (Level 1 inputs). Corporate bonds and U.S. government agency securities are reported at fair value utilizing Level 2 inputs. The prices for these investments are derived from market quotations and matrix pricing obtained through an independent pricing service. Such fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Based upon actuarial estimates, Valley does not expect to make any contributions to the qualified plan. Funding requirements for subsequent years are uncertain and will significantly depend on whether the plan’s actuary changes any assumptions used to calculate plan funding levels, the actual return on plan assets, changes in the employee groups covered by the plan, and any legislative or regulatory changes affecting plan funding requirements. For tax planning, financial planning, cash flow management or cost reduction purposes, Valley may increase, accelerate, decrease or delay contributions to the plan to the extent permitted by law. Other Qualified Plan On December 1, 2019, Valley assumed obligations under Oritani’s Pentegra Defined Benefit Plan for Financial Institutions (“Pentegra DB Plan”). The Pentegra DB Plan's Employer Identification Number is 13-5645888 and the Plan Number is 333. The Pentegra DB Plan is a tax-qualified defined-benefit multiple-employer plan. Under the Pentegra DB Plan, contributions made by a participating employer may be used to provide benefits to participants of other participating employers. The Pentegra DB Plan was frozen as of December 31, 2008. At the acquisition date, Valley determined that it would withdraw from the Pentegra DB Plan and, as a result, recorded an estimated liability of $3.0 million . During 2020, plan participants are expected to receive annuities based on the actuarial estimates of the pension obligation. Other Non-Qualified Plans Valley maintains separate non-qualified plans for former directors and senior management of Merchants Bank of New York acquired in January of 2001. At December 31, 2019 and 2018 , the remaining obligations under these plans were $1.6 million and $1.7 million , respectively, of which $451 thousand and $512 thousand , respectively, were funded by Valley. As of December 31, 2019 and 2018 , all of the obligations were included in other liabilities and $803 thousand (net of a $314 thousand tax benefit) and $872 thousand (net of a $345 thousand tax benefit), respectively, were recorded in accumulated other comprehensive loss. The $1.1 million in accumulated other comprehensive loss will be reclassified to expense on a straight-line basis over the remaining benefit periods of these non-qualified plans. Valley assumed, in the Oritani acquisition on December 1, 2019, certain obligations under non-qualified retirement plans described below: • Non-qualified benefit equalization plans (BEP) that provided supplemental benefits to certain eligible executives and officers The BEP plans were terminated on November 30, 2019 and the accrued benefits will be fully distributed to the participants on July 1, 2020. The funded obligation under the BEP plans totaled $26.8 million at December 31, 2019 . • An non-qualified benefit equalization pension plan that provided benefits to certain officers who were disallowed certain benefits under former Oritani’s qualified pension plan. This plan was terminated on November 30, 2019 and the accrued benefits will be distributed to plan participants over 5 years beginning on December 1, 2020. The funded obligation under this plan totaled $1.6 million at December 31, 2019 . • A Supplemental Executive Retirement Income Agreement (the SERP) for the former CEO of Oritani. The SERP is a retirement benefit with a minimum payment period of 20 years upon death, disability, normal retirement, early retirement or separation from service after a change in control. Distributions from the plan will begin on July 1, 2020. The funded obligation under the SERP totaled $13.0 million at December 31, 2019 . The above Oritani non-qualified plans are secured by investments in money market mutual funds which are held in a trust and classified as equity securities on the consolidated statements of financial condition at December 31, 2019 . Valley also assumed an Executive Group Life Insurance Replacement (“Split-Dollar”) Plan from Oritani. The Split-Dollar plan provides life insurance benefits to certain eligible employees upon death while employed or following termination of employment due to disability, retirement or change in control. Participants in the Split-Dollar plan are entitled to up to two times their base annual salary, as defined by the plan. The remaining accrued liability for the Split-Dollar plan totaled $961 thousand at December 31, 2019 . Bonus Plan Valley National Bank and its subsidiaries may award cash incentive and merit bonuses to its officers and employees based upon a percentage of the covered employees’ compensation as determined by the achievement of certain performance objectives. Amounts charged to salary expense were $19.1 million , $18.8 million and $10.8 million during 2019 , 2018 and 2017 , respectively. Savings and Investment Plan Valley National Bank maintains a KSOP, which is defined as a 401(k) plan with an employee stock ownership feature. This plan covers eligible employees of the Bank and its subsidiaries and allows employees to contribute a percentage of their salary, with the Bank matching a certain percentage of the employee contribution in cash invested in accordance with each participant’s investment elections. The Bank recorded $8.6 million , $8.5 million and $7.1 million in expense for contributions to the plan for the years ended December 31, 2019 , 2018 and 2017 , respectively. Stock-Based Compensation Valley currently has one active employee stock plan, the 2016 Long-Term Stock Incentive Plan (the “2016 Stock Plan”), adopted by Valley’s Board of Directors on January 29, 2016 and approved by its shareholders on April 28, 2016. The 2016 Stock Plan is administered by the Compensation and Human Resources Committee (the “Committee”) appointed by Valley’s Board of Directors. The Committee can grant awards to officers and key employees of Valley. The primary purpose of the 2016 Stock Plan is to provide additional incentive to officers and key employees of Valley and its subsidiaries, whose substantial contributions are essential to the continued growth and success of Valley, and to attract and retain competent and dedicated officers and other key employees whose efforts will result in the continued and long-term growth of Valley’s business. Under the 2016 Stock Plan, Valley may award shares of common stock in the form of stock appreciation rights, both incentive and non-qualified stock options, restricted stock and restricted stock units (RSUs) to its employees and non-employee directors (for acting in their roles as board members). As of December 31, 2019 , 4.3 million shares of common stock were available for issuance under the 2016 Stock Plan. The essential features of each award are described in the award agreement relating to that award. The grant, exercise, vesting, settlement or payment of an award may be based upon the fair value of Valley’s common stock on the last sale price reported for Valley’s common stock on such date or the last sale price reported preceding such date, except for performance-based awards with a market condition. The grant date fair values of performance-based awards that vest based on a market condition are determined by a third party specialist using a Monte Carlo valuation model. Valley recorded total stock-based compensation expense, primarily for restricted stock awards, totaling $15.0 million , $19.5 million and $12.2 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The stock-based compensation expense for 2019 , 2018 and 2017 included $2.1 million , $4.3 million and $4.3 million , respectively, related to stock awards granted to retirement eligible employees and was immediately recognized. The fair values of all other stock awards are expensed over the shorter of the vesting or required service period. As of December 31, 2019 , the unrecognized amortization expense for all stock-based compensation totaled approximately $15.6 million and will be recognized over an average remaining vesting period of approximately 2.0 years . Restricted Stock. Restricted stock is awarded to key employees providing for the immediate award of our common stock subject to certain vesting and restrictions under the 2016 Stock Plan. Compensation expense is measured based on the grant-date fair value of the shares. 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 Valley did not award shares of restricted stock during 2019. Included in the RSAs granted (in the table above) during 2018 and 2017 , 60 thousand and 45 thousand shares, respectively, were issued to Valley directors. In 2018 and 2017 , each non-management director received $60 thousand and $50 thousand , respectively, of RSAs as part of their annual retainer. The RSAs were granted on the date of the annual shareholders’ meeting with the number of RSAs determined using the closing market price on the date prior to grant. The RSAs vest on the earlier of the next annual shareholders’ meeting or the first anniversary of the grant date, with acceleration upon a change in control, death or disability, but not resignation from the Board of Directors. On December 1, 2019, Valley completed the acquisition of Oritani, at which time each outstanding Oritani RSA became fully vested. The stock plan under which the Oritani stock awards were issued is no longer active. Restricted Stock Units (RSUs) . Restricted stock units are awarded as (1) performance-based RSUs and (2) time-based RSUs. Performance based RSUs vest based on (i) growth in tangible book value per share plus dividends and (ii) total shareholder return as compared to our peer group. The performance based RSUs "cliff" vest after three years based on the cumulative performance of Valley during that time period. Generally, time-based RSUs vest ratably one-third each year over a three-year vesting period. The RSUs earn dividend equivalents (equal to cash dividends paid on Valley's common share) over the applicable performance or service period. Dividend equivalents, per the terms of the agreements, are accumulated and paid to the grantee at the vesting date, or forfeited if the applicable performance or service conditions are not met. The grant date fair value of the RSUs was $10.43 , $12.36 and $11.05 per share for the years ended December 31, 2019 , 2018 , and 2017 , respectively. Compensation costs related to RSUs totaled $3.6 million , $5.5 million and $3.8 million , and were included in total stock-based compensation expense for the years ended December 31, 2019 , 2018 and 2017 , respectively. 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 . The fair value of each option granted on the date of grant is estimated using a binomial option pricing model. The fair values are estimated using assumptions for dividend yield based on the annual dividend rate; the stock volatility, based on Valley’s historical and implied stock price volatility; the risk-free interest rates, based on the U.S. Treasury constant maturity bonds, in effect on the actual grant dates, with a remaining term approximating the expected term of the options; and expected exercise term calculated based on Valley’s historical exercise experience. 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 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 Director Restricted Stock Plan. The Director Restricted Stock Plan provides the non-employee members of the Board of Directors with the opportunity to forgo some or their entire annual cash retainer and meeting fees in exchange for shares of Valley restricted stock. On January 29, 2014, the Director Restricted Stock Plan was amended to provide that no additional fees may be exchanged for Valley’s restricted stock effective April 1, 2014. The Director Restricted Stock Plan terminated in April 2018 when the remaining restricted stock under the plan vested. 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 |
Income Taxes
Income Taxes | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Income Taxes | INCOME TAXES (Note 14) The U.S. Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017 and introduced significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduced the U.S. statutory corporate tax rate from 35 percent to 21 percent. In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. Valley reflected the income tax effects of those aspects of the Tax Act for which the accounting is complete. To the extent Valley’s accounting for certain income tax effects of the Tax Act is incomplete but it can determine a reasonable estimate, Valley recorded a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, Valley made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017. The accounting for the tax effects of the Tax Act was completed with the final 2017 tax returns in the fourth quarter 2018, resulting in a $2.3 million tax benefit for the year ended December 31, 2018. Income tax expense for the years ended December 31, 2019 , 2018 and 2017 consisted of the following: 2019 2018 2017 (in thousands) Current expense: Federal $ 95,317 $ 51,147 $ 8,483 State 36,457 28,898 5,500 131,774 80,045 13,983 Deferred expense (benefit): Federal 10,444 (17,463 ) 49,169 State 4,784 5,683 27,679 15,228 (11,780 ) 76,848 Total income tax expense $ 147,002 $ 68,265 $ 90,831 The tax effects of temporary differences that gave rise to the significant portions of the deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Deferred tax assets: Allowance for loan losses $ 44,486 $ 42,882 Depreciation — 19,111 Employee benefits 28,263 13,301 Investment securities, including other-than-temporary impairment losses — 13,222 Net operating loss carryforwards 19,768 21,570 Purchase accounting 41,857 33,629 Other 19,904 22,104 Total deferred tax assets 154,278 165,819 Deferred tax liabilities: Pension plans 19,686 18,786 Depreciation 4,527 — Investment securities, including other-than-temporary impairment losses 2,319 — Other investments 7,731 17,758 Core deposit intangibles 16,620 14,223 Other 13,665 8,858 Total deferred tax liabilities 64,548 59,625 Valuation Allowance 916 733 Net deferred tax asset (included in other assets) $ 88,814 $ 105,461 Valley's federal net operating loss carryforwards totaled approximately $72.1 million at December 31, 2019 and expire during the period from 2029 through 2034. Valley's capital loss carryforwards totaled $3.1 million at December 31, 2019 and expire at December 31, 2023. State net operating loss carryforwards totaled approximately $85.3 million at December 31, 2019 and expire during the period from 2029 through 2038. Based upon taxes paid and projections of future taxable income over the periods in which the net deferred tax assets are deductible, management believes that it is more likely than not that Valley will realize the benefits, net of an immaterial valuation allowance, of these deductible differences and loss carryforwards. Reconciliation between the reported income tax expense and the amount computed by multiplying consolidated income before taxes by the statutory federal income tax rate of 21 percent for the years ended December 31, 2019 and 2018 , and 35 percent for the year ended December 31, 2017 were as follows: 2019 2018 2017 (in thousands) Federal income tax at expected statutory rate $ 95,927 $ 69,235 $ 88,458 Increase (decrease) due to: State income tax expense, net of federal tax effect 32,581 23,851 21,046 Tax-exempt interest, net of interest incurred to carry tax-exempt securities (3,118 ) (3,974 ) (5,245 ) Bank owned life insurance (1,637 ) (1,734 ) (2,568 ) Tax credits from securities and other investments (11,636 ) (20,798 ) (27,037 ) FDIC insurance premium 2,507 3,318 — Impact of the Tax Act — (2,274 ) 15,441 Addition to reserve for uncertainties 31,123 — — Other, net 1,255 641 736 Income tax expense $ 147,002 $ 68,265 $ 90,831 The federal energy investment tax credit (FEITC) program encourages the use of renewable energy, including solar energy. The energy program reduces federal income taxes by offering a 30 percent tax credit to owners of energy property that meets established performance and quality standards. In addition, there are other returns from tax losses and cash flows generated by the investment. Typically, an owner and the tax credit investor, such as Valley, establish a limited partnership. The tax credit investor usually has a substantial, but passive, interest in the partnership and the owner of the solar energy property has a small interest. The ownership structure permits the tax benefits to pass through to the tax credit investor with an expected exit from ownership after five years. The amount of the FEITC is calculated based on the total cost of a renewable energy property. From 2013 to 2015, Valley invested in three FEITC funds (Fund VI, Fund XII and Fund XIX) sponsored by DC Solar to purchase a total of 512 mobile solar generator units. The valuation of the unit price of the solar units was supported by an appraisal prepared by a well-recognized national appraisal firm. The total tax credits of $22.8 million were used to reduce Valley’s federal income taxes payable in its consolidated financial statements from 2013 to 2015. The full value of the FEITC is earned immediately when a solar energy property is placed in service. However, the tax credit is subject to recapture for federal tax purposes for a five-year compliance period, if the property ceases to remain eligible for the tax credit. A property may become ineligible during the compliance period due to (i) a sale or disposal of the property, (ii) lease of the property to a tax exempt entity or (iii) its removal from service (i.e., no longer available for lease). During the first year after the property has been placed in service, the recapture rate is 100 percent of the tax credit. The rate declines by 20 percent each year thereafter until the end of the fifth year. The compliance period expires at the end of the fifth year after the property has been placed in service. All three funds leased the mobile solar generator units to DC Solar distributions, which stated its intention to sublease the units to third parties. An entity shall initially recognize the financial statement effects of a tax position when it is more likely than not (or a likelihood of more than 50 percent), based on the technical merits, that the position will be sustained upon examination. The level of evidence that is necessary and appropriate to support an entity's assessment of the technical merits of a tax position is a matter of judgment that depends on all available information. At each of the investment dates, Valley obtained two tax opinions from national law firms that, based upon the facts recited, support the recognition of the tax credits in its tax returns. Based upon management's review of the tax opinions on the investment’s legal structure, Valley recognized and measured each tax position at 100 percent of the tax credit. Valley's subsequent measurement of a tax position is based on management’s best judgment given the facts, circumstances, and information available at the latest quarterly reporting date. A change in judgment that results in subsequent derecognition or change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) is recognized as a discrete item in the period in which the change occurs. In late February 2019, Valley learned of Federal Bureau of Investigation allegations of fraudulent conduct by DC Solar, including information about asset seizures of DC Solar property and assets of its principals and ongoing federal investigations. Since learning of the allegations, Valley conducted an ongoing investigation coordinated with other DC Solar fund investors, investors' outside counsel and a third party specialist. The facts uncovered to date by the investor group impact each investor differently, affecting their likelihood of loss and the ultimate amount of tax benefit likely to be recaptured. To date, over 97 percent of the 512 solar generator units purchased by Valley's three funds have been positively identified by a third party specialist at several leasee and other locations throughout the United States. Valley also learned through its investigation that the IRS has challenged the valuation appraisals of similar solar generator units that were used to determine the federal renewable energy tax credits related to another DC Solar fund owned by an unrelated investor. Given the circumstances that Valley was aware of during the first nine months of 2019, including the aforementioned IRS challenge of the appraisals of similar units used by an unrelated fund investor, and management's best judgments regarding the settlement of the tax positions that it would ultimately accept with the IRS, Valley expected a partial loss and tax benefit recapture. During the fourth quarter 2019, several of the co-conspirators pleaded guilty to fraud in the on-going federal investigation. Based upon this new information, Valley deemed that its tax positions related to the DC Solar funds did not meet the more likely than not recognition threshold (discussed above) in Valley's tax reserve assessment at December 31, 2019. As result of this assessment and a partial reserve recognized by Valley in the first quarter 2019, Valley's net income for the year ended December 31, 2019 includes an increase to Valley's provision for income taxes of $31.1 million reflecting the reserve for uncertain tax liability positions established in 2019 (shown in the table below). As of December 31, 2019, Valley believes it is fully reserved for the renewable energy tax credits and other tax benefits previously recognized from the investments in the DC Solar funds plus interest. However, Valley can provide no assurance that it will not recognize additional tax provisions related to this uncertain tax liability in the future. A reconciliation of Valley’s gross unrecognized tax benefits for 2019 , 2018 and 2017 are presented in the table below: 2019 2018 2017 (in thousands) Beginning balance $ — $ 4,238 $ 16,144 Additions based on tax positions related to prior years 31,918 — 1,121 Settlements with taxing authorities — — (13,027 ) Reductions due to expiration of statute of limitations — (4,238 ) — Ending balance $ 31,918 $ — $ 4,238 The entire balance of unrecognized tax benefits, if recognized, would favorably affect Valley's effective income tax rate. Valley’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Valley accrued approximately $6.1 million and $1.8 million of interest expense associated with Valley’s uncertain tax positions at December 31, 2019 and 2017, respectively. There was no interest expense accrued for uncertain tax positions during the year ended December 31, 2018. Valley monitors its tax positions for the underlying facts, circumstances, and information available including the federal investigation of DC Solar and changes in tax laws, case law and regulations that may necessitate subsequent de-recognition of previous tax benefits. Valley files income tax returns in the U.S. federal and various state jurisdictions. With few exceptions, Valley is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2014. Valley is under routine examination by various state jurisdictions, and we expect the examinations to be completed within the next 12 months. Valley has considered, for all open audits, any potential adjustments in establishing our reserve for unrecognized tax benefits as of December 31, 2019 . TAX CREDIT INVESTMENTS (Note 15) Valley’s tax credit investments are primarily related to investments promoting qualified affordable housing projects, and other investments related to community development and renewable energy sources. Some of these tax-advantaged investments support Valley’s regulatory compliance with the Community Reinvestment Act. Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense. Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Valley’s unfunded capital and other commitments related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization of tax credit investments, including impairment losses, within non-interest expense of the consolidated statements of income using the equity method of accounting. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and other-than-temporary impairments, if applicable. See the "Other-Than-Temporary Impairment Analysis" section below. The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands) Other Assets: Affordable housing tax credit investments, net $ 25,049 $ 36,961 Other tax credit investments, net 59,081 68,052 Total tax credit investments, net $ 84,130 $ 105,013 Other Liabilities: Unfunded affordable housing tax credit commitments $ 1,539 $ 4,520 Unfunded other tax credit commitments 1,139 8,756 Total unfunded tax credit commitments $ 2,678 $ 13,276 The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 6,757 $ 6,713 $ 7,383 Other tax credit investment credits and tax benefits 10,205 21,351 35,530 Total reduction in income tax expense $ 16,962 $ 28,064 $ 42,913 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 2,184 $ 1,880 $ 2,748 Affordable housing tax credit investment impairment losses 3,295 2,544 4,684 Other tax credit investment losses 5,668 1,970 2,866 Other tax credit investment impairment losses 9,245 17,806 31,449 Total amortization of tax credit investments recorded in non-interest expense $ 20,392 $ 24,200 $ 41,747 Other-Than-Temporary Impairment Analysis An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The determination of whether a decline in value of a tax credit investment is other-than-temporary requires significant judgment and is performed separately for each investment. The tax credit investments are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. These circumstances can include, but are not limited to, the following factors: • Evidence that Valley does not have the ability to recover the carrying amount of the investment; • The inability of the investee to sustain earnings; • A current fair value of the investment based upon cash flow projections that is less than the carrying amount; and • Change in the economic or technological environment that could adversely affect the investee’s operations On a quarterly basis, Valley obtains financial reporting on its underlying tax credit investment assets for each fund from the fund manager who is independent of Valley and the Fund Sponsor. The financial reporting is reviewed for deterioration in the financial condition of the fund, the level of cash flows and any significant losses or impairment charges. Valley also regularly reviews the condition and continuing prospects of the underlying operations of the investment with the fund manager, including any observations from site visits and communications with the Fund Sponsor, if available. Annually, Valley obtains the audited financial statements prepared by an independent accounting firm for each investment, as well as the annual tax returns. Generally, none of the aforementioned review factors are individually conclusive and the relative importance of each factor will vary based on facts and circumstances. However, the longer the expected period of recovery, the stronger and more objective the positive evidence needs to be in order to overcome the presumption that the impairment is other than temporary. If management determines that a decline in value is other than temporary per its quarterly and annual reviews, including current probable cash flow projections, the applicable tax credit investment is written down to its estimated fair value through an impairment charge to earnings, which establishes the new cost basis of the investment. The aggregate unamortized investment related to three federal renewable energy tax credit funds sponsored by DC Solar represented approximately $2.4 million (or approximately $800 thousand for each fund) of the $59.1 million of net other tax credit investments reported as of December 31, 2019 . These funds are disclosed in detail in Note 14. During the first quarter 2019, Valley determined that future cash flows related to the remaining investments in all three funds were not probable based upon new information available, including the sponsor’s bankruptcy proceedings which were reclassified to Chapter 7 from Chapter 11 in late March 2019. As a result, Valley recognized an other-than-temporary impairment charge for the entire aggregate unamortized investment of $2.4 million during the first quarter 2019, which is included within amortization of tax credit investments for the year ended December 31, 2019 . As a result of the Tax Act, Valley incurred additional impairment of $2.2 million and $2.1 million related to certain affordable housing tax credit investments and other tax credit investments, respectively, during the fourth quarter 2017. |
Tax Credit Investments
Tax Credit Investments | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Tax Credit Investments | INCOME TAXES (Note 14) The U.S. Tax Cuts and Jobs Act of 2017 (the "Tax Act") was enacted on December 22, 2017 and introduced significant changes to U.S. income tax law. Effective in 2018, the Tax Act reduced the U.S. statutory corporate tax rate from 35 percent to 21 percent. In response to the Tax Act, the SEC staff issued guidance on accounting for the tax effects of the Tax Act. The guidance provides a one-year measurement period for companies to complete the accounting. Valley reflected the income tax effects of those aspects of the Tax Act for which the accounting is complete. To the extent Valley’s accounting for certain income tax effects of the Tax Act is incomplete but it can determine a reasonable estimate, Valley recorded a provisional estimate in the financial statements. If a company cannot determine a provisional estimate to be included in the financial statements, it should continue to apply the provisions of the tax laws that were in effect immediately before the enactment of the Tax Act. Due to the timing of the enactment and the complexity involved in applying the provisions of the Tax Act, Valley made reasonable estimates of the effects and recorded provisional amounts in its financial statements as of December 31, 2017. The accounting for the tax effects of the Tax Act was completed with the final 2017 tax returns in the fourth quarter 2018, resulting in a $2.3 million tax benefit for the year ended December 31, 2018. Income tax expense for the years ended December 31, 2019 , 2018 and 2017 consisted of the following: 2019 2018 2017 (in thousands) Current expense: Federal $ 95,317 $ 51,147 $ 8,483 State 36,457 28,898 5,500 131,774 80,045 13,983 Deferred expense (benefit): Federal 10,444 (17,463 ) 49,169 State 4,784 5,683 27,679 15,228 (11,780 ) 76,848 Total income tax expense $ 147,002 $ 68,265 $ 90,831 The tax effects of temporary differences that gave rise to the significant portions of the deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Deferred tax assets: Allowance for loan losses $ 44,486 $ 42,882 Depreciation — 19,111 Employee benefits 28,263 13,301 Investment securities, including other-than-temporary impairment losses — 13,222 Net operating loss carryforwards 19,768 21,570 Purchase accounting 41,857 33,629 Other 19,904 22,104 Total deferred tax assets 154,278 165,819 Deferred tax liabilities: Pension plans 19,686 18,786 Depreciation 4,527 — Investment securities, including other-than-temporary impairment losses 2,319 — Other investments 7,731 17,758 Core deposit intangibles 16,620 14,223 Other 13,665 8,858 Total deferred tax liabilities 64,548 59,625 Valuation Allowance 916 733 Net deferred tax asset (included in other assets) $ 88,814 $ 105,461 Valley's federal net operating loss carryforwards totaled approximately $72.1 million at December 31, 2019 and expire during the period from 2029 through 2034. Valley's capital loss carryforwards totaled $3.1 million at December 31, 2019 and expire at December 31, 2023. State net operating loss carryforwards totaled approximately $85.3 million at December 31, 2019 and expire during the period from 2029 through 2038. Based upon taxes paid and projections of future taxable income over the periods in which the net deferred tax assets are deductible, management believes that it is more likely than not that Valley will realize the benefits, net of an immaterial valuation allowance, of these deductible differences and loss carryforwards. Reconciliation between the reported income tax expense and the amount computed by multiplying consolidated income before taxes by the statutory federal income tax rate of 21 percent for the years ended December 31, 2019 and 2018 , and 35 percent for the year ended December 31, 2017 were as follows: 2019 2018 2017 (in thousands) Federal income tax at expected statutory rate $ 95,927 $ 69,235 $ 88,458 Increase (decrease) due to: State income tax expense, net of federal tax effect 32,581 23,851 21,046 Tax-exempt interest, net of interest incurred to carry tax-exempt securities (3,118 ) (3,974 ) (5,245 ) Bank owned life insurance (1,637 ) (1,734 ) (2,568 ) Tax credits from securities and other investments (11,636 ) (20,798 ) (27,037 ) FDIC insurance premium 2,507 3,318 — Impact of the Tax Act — (2,274 ) 15,441 Addition to reserve for uncertainties 31,123 — — Other, net 1,255 641 736 Income tax expense $ 147,002 $ 68,265 $ 90,831 The federal energy investment tax credit (FEITC) program encourages the use of renewable energy, including solar energy. The energy program reduces federal income taxes by offering a 30 percent tax credit to owners of energy property that meets established performance and quality standards. In addition, there are other returns from tax losses and cash flows generated by the investment. Typically, an owner and the tax credit investor, such as Valley, establish a limited partnership. The tax credit investor usually has a substantial, but passive, interest in the partnership and the owner of the solar energy property has a small interest. The ownership structure permits the tax benefits to pass through to the tax credit investor with an expected exit from ownership after five years. The amount of the FEITC is calculated based on the total cost of a renewable energy property. From 2013 to 2015, Valley invested in three FEITC funds (Fund VI, Fund XII and Fund XIX) sponsored by DC Solar to purchase a total of 512 mobile solar generator units. The valuation of the unit price of the solar units was supported by an appraisal prepared by a well-recognized national appraisal firm. The total tax credits of $22.8 million were used to reduce Valley’s federal income taxes payable in its consolidated financial statements from 2013 to 2015. The full value of the FEITC is earned immediately when a solar energy property is placed in service. However, the tax credit is subject to recapture for federal tax purposes for a five-year compliance period, if the property ceases to remain eligible for the tax credit. A property may become ineligible during the compliance period due to (i) a sale or disposal of the property, (ii) lease of the property to a tax exempt entity or (iii) its removal from service (i.e., no longer available for lease). During the first year after the property has been placed in service, the recapture rate is 100 percent of the tax credit. The rate declines by 20 percent each year thereafter until the end of the fifth year. The compliance period expires at the end of the fifth year after the property has been placed in service. All three funds leased the mobile solar generator units to DC Solar distributions, which stated its intention to sublease the units to third parties. An entity shall initially recognize the financial statement effects of a tax position when it is more likely than not (or a likelihood of more than 50 percent), based on the technical merits, that the position will be sustained upon examination. The level of evidence that is necessary and appropriate to support an entity's assessment of the technical merits of a tax position is a matter of judgment that depends on all available information. At each of the investment dates, Valley obtained two tax opinions from national law firms that, based upon the facts recited, support the recognition of the tax credits in its tax returns. Based upon management's review of the tax opinions on the investment’s legal structure, Valley recognized and measured each tax position at 100 percent of the tax credit. Valley's subsequent measurement of a tax position is based on management’s best judgment given the facts, circumstances, and information available at the latest quarterly reporting date. A change in judgment that results in subsequent derecognition or change in measurement of a tax position taken in a prior annual period (including any related interest and penalties) is recognized as a discrete item in the period in which the change occurs. In late February 2019, Valley learned of Federal Bureau of Investigation allegations of fraudulent conduct by DC Solar, including information about asset seizures of DC Solar property and assets of its principals and ongoing federal investigations. Since learning of the allegations, Valley conducted an ongoing investigation coordinated with other DC Solar fund investors, investors' outside counsel and a third party specialist. The facts uncovered to date by the investor group impact each investor differently, affecting their likelihood of loss and the ultimate amount of tax benefit likely to be recaptured. To date, over 97 percent of the 512 solar generator units purchased by Valley's three funds have been positively identified by a third party specialist at several leasee and other locations throughout the United States. Valley also learned through its investigation that the IRS has challenged the valuation appraisals of similar solar generator units that were used to determine the federal renewable energy tax credits related to another DC Solar fund owned by an unrelated investor. Given the circumstances that Valley was aware of during the first nine months of 2019, including the aforementioned IRS challenge of the appraisals of similar units used by an unrelated fund investor, and management's best judgments regarding the settlement of the tax positions that it would ultimately accept with the IRS, Valley expected a partial loss and tax benefit recapture. During the fourth quarter 2019, several of the co-conspirators pleaded guilty to fraud in the on-going federal investigation. Based upon this new information, Valley deemed that its tax positions related to the DC Solar funds did not meet the more likely than not recognition threshold (discussed above) in Valley's tax reserve assessment at December 31, 2019. As result of this assessment and a partial reserve recognized by Valley in the first quarter 2019, Valley's net income for the year ended December 31, 2019 includes an increase to Valley's provision for income taxes of $31.1 million reflecting the reserve for uncertain tax liability positions established in 2019 (shown in the table below). As of December 31, 2019, Valley believes it is fully reserved for the renewable energy tax credits and other tax benefits previously recognized from the investments in the DC Solar funds plus interest. However, Valley can provide no assurance that it will not recognize additional tax provisions related to this uncertain tax liability in the future. A reconciliation of Valley’s gross unrecognized tax benefits for 2019 , 2018 and 2017 are presented in the table below: 2019 2018 2017 (in thousands) Beginning balance $ — $ 4,238 $ 16,144 Additions based on tax positions related to prior years 31,918 — 1,121 Settlements with taxing authorities — — (13,027 ) Reductions due to expiration of statute of limitations — (4,238 ) — Ending balance $ 31,918 $ — $ 4,238 The entire balance of unrecognized tax benefits, if recognized, would favorably affect Valley's effective income tax rate. Valley’s policy is to report interest and penalties, if any, related to unrecognized tax benefits in income tax expense. Valley accrued approximately $6.1 million and $1.8 million of interest expense associated with Valley’s uncertain tax positions at December 31, 2019 and 2017, respectively. There was no interest expense accrued for uncertain tax positions during the year ended December 31, 2018. Valley monitors its tax positions for the underlying facts, circumstances, and information available including the federal investigation of DC Solar and changes in tax laws, case law and regulations that may necessitate subsequent de-recognition of previous tax benefits. Valley files income tax returns in the U.S. federal and various state jurisdictions. With few exceptions, Valley is no longer subject to U.S. federal and state income tax examinations by tax authorities for years before 2014. Valley is under routine examination by various state jurisdictions, and we expect the examinations to be completed within the next 12 months. Valley has considered, for all open audits, any potential adjustments in establishing our reserve for unrecognized tax benefits as of December 31, 2019 . TAX CREDIT INVESTMENTS (Note 15) Valley’s tax credit investments are primarily related to investments promoting qualified affordable housing projects, and other investments related to community development and renewable energy sources. Some of these tax-advantaged investments support Valley’s regulatory compliance with the Community Reinvestment Act. Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense. Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Valley’s unfunded capital and other commitments related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization of tax credit investments, including impairment losses, within non-interest expense of the consolidated statements of income using the equity method of accounting. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and other-than-temporary impairments, if applicable. See the "Other-Than-Temporary Impairment Analysis" section below. The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands) Other Assets: Affordable housing tax credit investments, net $ 25,049 $ 36,961 Other tax credit investments, net 59,081 68,052 Total tax credit investments, net $ 84,130 $ 105,013 Other Liabilities: Unfunded affordable housing tax credit commitments $ 1,539 $ 4,520 Unfunded other tax credit commitments 1,139 8,756 Total unfunded tax credit commitments $ 2,678 $ 13,276 The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 6,757 $ 6,713 $ 7,383 Other tax credit investment credits and tax benefits 10,205 21,351 35,530 Total reduction in income tax expense $ 16,962 $ 28,064 $ 42,913 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 2,184 $ 1,880 $ 2,748 Affordable housing tax credit investment impairment losses 3,295 2,544 4,684 Other tax credit investment losses 5,668 1,970 2,866 Other tax credit investment impairment losses 9,245 17,806 31,449 Total amortization of tax credit investments recorded in non-interest expense $ 20,392 $ 24,200 $ 41,747 Other-Than-Temporary Impairment Analysis An impairment loss is recognized when the fair value of the tax credit investment is less than its carrying value. The determination of whether a decline in value of a tax credit investment is other-than-temporary requires significant judgment and is performed separately for each investment. The tax credit investments are reviewed for impairment quarterly, or whenever events or changes in circumstances indicate that the carrying amount of the investment might not be recoverable. These circumstances can include, but are not limited to, the following factors: • Evidence that Valley does not have the ability to recover the carrying amount of the investment; • The inability of the investee to sustain earnings; • A current fair value of the investment based upon cash flow projections that is less than the carrying amount; and • Change in the economic or technological environment that could adversely affect the investee’s operations On a quarterly basis, Valley obtains financial reporting on its underlying tax credit investment assets for each fund from the fund manager who is independent of Valley and the Fund Sponsor. The financial reporting is reviewed for deterioration in the financial condition of the fund, the level of cash flows and any significant losses or impairment charges. Valley also regularly reviews the condition and continuing prospects of the underlying operations of the investment with the fund manager, including any observations from site visits and communications with the Fund Sponsor, if available. Annually, Valley obtains the audited financial statements prepared by an independent accounting firm for each investment, as well as the annual tax returns. Generally, none of the aforementioned review factors are individually conclusive and the relative importance of each factor will vary based on facts and circumstances. However, the longer the expected period of recovery, the stronger and more objective the positive evidence needs to be in order to overcome the presumption that the impairment is other than temporary. If management determines that a decline in value is other than temporary per its quarterly and annual reviews, including current probable cash flow projections, the applicable tax credit investment is written down to its estimated fair value through an impairment charge to earnings, which establishes the new cost basis of the investment. The aggregate unamortized investment related to three federal renewable energy tax credit funds sponsored by DC Solar represented approximately $2.4 million (or approximately $800 thousand for each fund) of the $59.1 million of net other tax credit investments reported as of December 31, 2019 . These funds are disclosed in detail in Note 14. During the first quarter 2019, Valley determined that future cash flows related to the remaining investments in all three funds were not probable based upon new information available, including the sponsor’s bankruptcy proceedings which were reclassified to Chapter 7 from Chapter 11 in late March 2019. As a result, Valley recognized an other-than-temporary impairment charge for the entire aggregate unamortized investment of $2.4 million during the first quarter 2019, which is included within amortization of tax credit investments for the year ended December 31, 2019 . As a result of the Tax Act, Valley incurred additional impairment of $2.2 million and $2.1 million related to certain affordable housing tax credit investments and other tax credit investments, respectively, during the fourth quarter 2017. |
Commitments and Contingencies
Commitments and Contingencies | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Commitments and Contingencies | COMMITMENTS AND CONTINGENCIES (Note 16) Financial Instruments with Off-balance Sheet Risk In the ordinary course of business in meeting the financial needs of its customers, Valley, through its subsidiary Valley National Bank, is a party to various financial instruments, which are not reflected in the consolidated financial statements. These financial instruments include standby and commercial letters of credit, unused portions of lines of credit and commitments to extend various types of credit. These instruments involve, to varying degrees, elements of credit risk in excess of the amounts recognized in the consolidated financial statements. The commitment or contract amount of these instruments is an indicator of the Bank’s level of involvement in each type of instrument as well as the exposure to credit loss in the event of non-performance by the other party to the financial instrument. The Bank seeks to limit any exposure of credit loss by applying the same credit policies in making commitments, as it does for on-balance sheet lending facilities. The following table provides a summary of financial instruments with off-balance sheet risk at December 31, 2019 and 2018 : 2019 2018 (in thousands) Commitments under commercial loans and lines of credit $ 5,550,967 $ 5,164,186 Home equity and other revolving lines of credit 1,379,581 1,178,306 Standby letters of credit 296,036 316,941 Outstanding residential mortgage loan commitments 233,291 235,310 Commitments to sell loans 68,492 58,897 Commitments under unused lines of credit—credit card 44,527 66,229 Commercial letters of credit 2,887 3,100 Obligations to advance funds under commitments to extend credit, including commitments under unused lines of credit, are agreements to lend to a customer as long as there is no violation of any condition established in the contract. Commitments generally have specified expiration dates, which may be extended upon request, or other termination clauses and generally require payment of a fee. These commitments do not necessarily represent future cash requirements as it is anticipated that many of these commitments will expire without being fully drawn upon. The Bank’s lending activity for outstanding loan commitments is primarily to customers within the states of New Jersey, New York, and Florida. Standby letters of credit represent the guarantee by the Bank of the obligations or performance of the bank customer in the event of the default of payment or nonperformance to a third party beneficiary. Loan sale commitments represent contracts for the sale of residential mortgage loans to third parties in the ordinary course of the Bank’s business. These commitments require the Bank to deliver loans within a specific period to the third party. The risk to the Bank is its non-delivery of loans required by the commitment, which could lead to financial penalties. The Bank has not defaulted on its loan sale commitments. Derivative Instruments and Hedging Activities Valley is exposed to certain risks arising from both its business operations and economic conditions. Valley principally manages its exposure to a wide variety of business and operational risks through management of its core business activities. Valley manages economic risks, including interest rate and liquidity risks, primarily by managing the amount, sources, and duration of its assets and liabilities and, from time to time, the use of derivative financial instruments. Specifically, Valley enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates. Valley’s derivative financial instruments are used to manage differences in the amount, timing, and duration of Valley’s known or expected cash receipts and its known or expected cash payments related to assets and liabilities as outlined below. Cash Flow Hedges of Interest Rate Risk. Valley’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, Valley uses interest rate swaps and caps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty. Interest rate caps designated as cash flow hedges involve the receipt of variable-rate amounts from a counterparty if interest rates rise above the strike rate on the contract in exchange for an up-front premium. At December 31, 2019 , Valley had the following cash flow hedge derivatives: • One forward starting interest rate swap, with a notional amount of $75 million , to hedge the changes in cash flows associated with certain brokered money market deposits. Starting in November 2015 , the interest rate swap required Valley to pay fixed-rate amounts of approximately 2.97 percent , in exchange for the receipt of variable-rate payments at the three-month LIBOR rate. The swap has an expiration date of November 2020 . • Two forward starting interest rate swaps with a total notional amount of $50 million and $55 million , respectively, to hedge the changes in cash flows associated with borrowed funds. Starting in March 2016, the interest rate swaps required Valley to pay fixed-rate amounts of 2.87 percent and 2.88 percent , respectively, in exchange for the receipt of variable-rate payments at the three-month LIBOR rate. The two swaps have expiration dates in March 2020 and September 2020, respectively. Fair Value Hedges of Fixed Rate Assets and Liabilities. Valley is exposed to changes in the fair value of certain of its fixed rate assets or liabilities due to changes in benchmark interest rates based on one-month LIBOR. From time to time, Valley uses interest rate swaps to manage its exposure to changes in fair value. Interest rate swaps designated as fair value hedges involve the receipt of variable rate payments from a counterparty in exchange for Valley making fixed rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in earnings. Valley includes the gain or loss on the hedged items in the same income statement line item as the loss or gain on the related derivatives. At December 31, 2019 , Valley had one interest rate swap with a notional amount of approximately $7.3 million used to hedge the change in the fair value of a commercial loan. Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. Derivatives not designated as hedges are not entered into for speculative purposes. Under a program, Valley executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Valley executes with a third party, such that Valley minimizes its net risk exposure resulting from such transactions. As the interest rate swaps associated with this program do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings. Valley sometimes enters into risk participation agreements with external lenders where the banks are sharing their risk of default on the interest rate swaps on participated loans. Valley either pays or receives a fee depending on the participation type. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value in credit derivatives are recognized directly in earnings. At December 31, 2019 , Valley had 23 credit swaps with an aggregate notional amount of $152.9 million related to risk participation agreements. At December 31, 2019 , Valley had one "steepener" swap with a total current notional amount of $10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits. The rates paid on these types of hybrid instruments are based on a formula derived from the spread between the long and short ends of the constant maturity swap (CMS) rate curve. Although these types of instruments do not meet the hedge accounting requirements, the change in fair value of both the bifurcated derivative and the stand alone swap tend to move in opposite directions with changes in three-month LIBOR rate and therefore provide an effective economic hedge. Valley regularly enters into mortgage banking derivatives which are non-designated hedges. These derivatives include interest rate lock commitments provided to customers to fund certain residential mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. Valley enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rates on Valley’s commitments to fund the loans as well as on its portfolio of mortgage loans held for sale. Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: December 31, 2019 December 31, 2018 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate caps and swaps $ — $ 1,484 $ 180,000 $ — $ 27 $ 332,000 Fair value hedge interest rate swaps — 229 7,281 — 347 7,536 Total derivatives designated as hedging instruments $ — $ 1,713 $ 187,281 $ — $ 374 $ 339,536 Derivatives not designated as hedging instruments: Interest rate swaps, and embedded and credit derivatives $ 158,382 $ 42,020 $ 4,113,106 $ 48,642 $ 22,533 $ 3,390,578 Mortgage banking derivatives 150 193 142,760 337 774 105,247 Total derivatives not designated as hedging instruments $ 158,532 $ 42,213 $ 4,255,866 $ 48,979 $ 23,307 $ 3,495,825 The Chicago Mercantile Exchange and London Clearing House variation margins are classified as a single-unit of account with the fair value of certain cash flow and non-designated derivative instruments. As a result, the fair value of the designated cash flow interest rate swaps assets and designated and non-designated interest rate swaps liabilities were offset by variation margins posted by (with) the applicable counterparties and reported in the table above on a net basis at December 31, 2019 .and 2018 . Gains (losses) included in the consolidated statements of income and in other comprehensive income (loss), on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 2019 2018 2017 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (1,808 ) $ (3,493 ) $ (8,579 ) Amount of (loss) gain recognized in other comprehensive income (1,380 ) 2,651 1,005 The net gains or losses related to cash flow hedge ineffectiveness were immaterial during the years ended December 31, 2019 , 2018 and 2017 . The accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $3.7 million and $4.0 million at December 31, 2019 and 2018 , respectively. Amounts reported in accumulated other comprehensive loss related to cash flow interest rate derivatives are reclassified to interest expense as interest payments are made on the hedged variable interest rate liabilities. Valley estimates that $2.3 million will be reclassified as an increase to interest expense in 2020 . Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 2019 2018 2017 (in thousands) Derivative—interest rate swaps: Interest income $ 133 $ 290 $ 348 Hedged item—loans, deposits and long-term borrowings: Interest income $ (133 ) $ (290 ) $ (348 ) Fee income related to derivative interest rate swaps executed with commercial loan customers totaled $33.4 million , $16.4 million and $8.3 million for the years ended December 31, 2019 , 2018 and 2017 , respectively. The following table presents the hedged items related to interest rate derivatives designated as hedges of fair value and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at December 31, 2019 and 2018 : Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Asset Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset 2019 2018 2019 2018 (in thousands) Loans $ 7,510 $ 7,882 $ 229 $ 346 Net losses included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: 2019 2018 2017 (in thousands) Non-designated hedge interest rate and credit derivatives Other non-interest expense $ 898 $ 792 $ 744 Collateral Requirements and Credit Risk Related Contingency Features. By using derivatives, Valley is exposed to credit risk if counterparties to the derivative contracts do not perform as expected. Management attempts to minimize counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral where appropriate. Credit risk exposure associated with derivative contracts is managed at Valley in conjunction with Valley’s consolidated counterparty risk management process. Valley’s counterparties and the risk limits monitored by management are periodically reviewed and approved by the Board of Directors. Valley has agreements with its derivative counterparties providing that if Valley defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Valley could also be declared in default on its derivative counterparty agreements. Additionally, Valley has an agreement with several of its derivative counterparties that contains provisions that require Valley’s debt to maintain an investment grade credit rating from each of the major credit rating agencies from which it receives a credit rating. If Valley’s credit rating is reduced below investment grade, or such rating is withdrawn or suspended, then the counterparty could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of December 31, 2019 , Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of December 31, 2019 , the fair value of derivatives in a net liability position, which includes accrued interest but excludes any adjustment for nonperformance risk, related to these agreements was $17.2 million . Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties. |
Balance Sheet Offsetting
Balance Sheet Offsetting | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Balance Sheet Offsetting | BALANCE SHEET OFFSETTING (Note 17) Certain financial instruments, including derivatives (consisting of interest rate swaps and caps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated balance sheet and/or subject to master netting arrangements or similar agreements. Valley is party to master netting arrangements with its financial institution counterparties; however, Valley does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the repurchase agreement should Valley be in default. The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 2019 and 2018 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) December 31, 2019 Assets: Interest rate swaps $ 158,382 $ — $ 158,382 $ (118 ) $ — $ 158,264 Liabilities: Interest rate swaps $ 43,733 $ — $ 43,733 $ (118 ) $ (16,881 ) $ 26,734 Repurchase agreements 350,000 — 350,000 — (350,000 ) * — Total $ 393,733 $ — $ 393,733 $ (118 ) $ (366,881 ) $ 26,734 December 31, 2018 Assets: Interest rate swaps and caps $ 48,642 $ — $ 48,642 $ (1,214 ) $ — $ 47,428 Liabilities: Interest rate swaps and caps $ 22,907 $ — $ 22,907 $ (1,214 ) $ (1,852 ) $ 19,841 Repurchase agreements 150,000 — 150,000 — (150,000 ) * — Total $ 172,907 $ — $ 172,907 $ (1,214 ) $ (151,852 ) $ 19,841 * Represents the fair value of non-cash pledged investment securities. |
Regulatory and Capital Requirem
Regulatory and Capital Requirements | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Regulatory and Capital Requirements | REGULATORY AND CAPITAL REQUIREMENTS (Note 18) Valley’s primary source of cash is dividends from the Bank. Valley National Bank, a national banking association, is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the subsidiary bank to fall below the minimum required for capital adequacy purposes. Valley and Valley National Bank are subject to the regulatory capital requirements administered by the Federal Reserve Bank and the OCC. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct significant impact on Valley’s consolidated financial statements. Under capital adequacy guidelines Valley and Valley National Bank must meet specific capital guidelines that involve quantitative measures of Valley’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors. Quantitative measures established by regulation to ensure capital adequacy require Valley and Valley National Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations. Valley is required to maintain a common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent , Tier 1 capital to risk-weighted assets of 6.0 percent , ratio of total capital to risk-weighted assets of 8.0 percent , and minimum leverage ratio of 4.0 percent , plus a 2.5 percent capital conservation buffer. On January 1, 2019, the capital conversation buffer was fully phased-in. As of December 31, 2019 and 2018 , Valley and Valley National Bank exceeded all capital adequacy requirements (see table below). The following table presents Valley’s and Valley National Bank’s actual capital positions and ratios under the Basel III risk-based capital guidelines at December 31, 2019 and 2018 : Actual Minimum Capital Requirements To Be Well Capitalized Under Prompt Corrective Action Provision Amount Ratio Amount Ratio Amount Ratio ($ in thousands) As of December 31, 2019 Total Risk-based Capital Valley $ 3,427,134 11.72 % $ 3,070,687 10.50 % N/A N/A Valley National Bank 3,416,674 11.69 3,069,894 10.50 $ 2,923,709 10.00 % Common Equity Tier 1 Capital Valley 2,754,524 9.42 2,047,125 7.00 N/A N/A Valley National Bank 3,152,070 10.78 2,046,596 7.00 1,900,411 6.50 Tier 1 Risk-based Capital Valley 2,968,530 10.15 2,485,795 8.50 N/A N/A Valley National Bank 3,152,070 10.78 2,485,153 8.50 2,338,967 8.00 Tier 1 Leverage Capital Valley 2,968,530 8.76 1,355,378 4.00 N/A N/A Valley National Bank 3,152,070 9.31 1,354,693 4.00 1,693,366 5.00 As of December 31, 2018 Total Risk-based Capital Valley $ 2,786,971 11.34 % $ 2,426,975 9.875 % N/A N/A Valley National Bank 2,698,654 10.99 2,424,059 9.875 $ 2,454,743 10.00 % Common Equity Tier 1 Capital Valley 2,071,871 8.43 1,566,781 6.375 N/A N/A Valley National Bank 2,442,359 9.95 1,564,899 6.375 1,595,583 6.50 Tier 1 Risk-based Capital Valley 2,286,676 9.30 1,935,435 7.875 N/A N/A Valley National Bank 2,442,359 9.95 1,933,110 7.875 1,963,794 8.00 Tier 1 Leverage Capital Valley 2,286,676 7.57 1,208,882 4.00 N/A N/A Valley National Bank 2,442,359 8.09 1,207,039 4.00 1,508,798 5.00 |
Common and Preferred Stock
Common and Preferred Stock | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Common and Preferred Stock | COMMON AND PREFERRED STOCK (Note 19) Dividend Reinvestment Plan. Valley's transfer agent maintains its dividend reinvestment plan (DRIP) with shares purchased in the open market. The ability to issue authorized and previously unissued common stock or reissue treasury stock as part of Valley's DRIP was terminated effective February 12, 2018. During 2018 and 2017 , 87 thousand and 713 thousand common shares, respectively, were reissued from treasury stock or issued from authorized common shares under the DRIP for net proceeds totaling $1.0 million and $8.2 million , respectively. Repurchase Plan. In 2007, Valley’s Board of Directors approved the repurchase of up to $4.7 million of common shares. Purchases of Valley’s common shares may be made from time to time in the open market or in privately negotiated transactions generally not exceeding prevailing market prices. Repurchased shares are held in treasury and are expected to be used for general corporate purposes. Under the repurchase plan, Valley made no purchases of its outstanding shares during the years ended December 31, 2019 , 2018 and 2017 in the open market. Other Stock Repurchases. Valley purchases shares directly from its employees in connection with employee elections to withhold taxes related to the vesting of stock awards. During the years ended December 31, 2019 , 2018 and 2017 , Valley purchased approximately 175 thousand , 441 thousand and 218 thousand shares, respectively, of its outstanding common stock at an average price of $10.45 , $11.83 and $12.12 , respectively, for such purpose. Preferred Stock Series A Issuance. On June 19, 2015, Valley issued 4.6 million shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series A, no par value per share, with a liquidation preference of $25 per share. Dividends on the preferred stock accrue and are payable quarterly in arrears, at a fixed rate per annum equal to 6.25 percent from the original issue date to, but excluding, June 30, 2025, and thereafter at a floating rate per annum equal to three-month LIBOR plus a spread of 3.85 percent . The net proceeds from the preferred stock offering totaled $111.6 million . Commencing June 30, 2025, Valley may redeem the preferred shares at the liquidation preference plus accrued and unpaid dividends, subject to certain conditions. Series B Issuance. On August 3, 2017, Valley issued 4.0 million shares of its Fixed-to-Floating Rate Non-Cumulative Perpetual Preferred Stock, Series B, no par value per share, with a liquidation preference of $25 per share. Dividends on the preferred stock will accrue and be payable quarterly in arrears, at a fixed rate per annum equal to 5.50 percent from the original issuance date to, but excluding, September 30, 2022, and thereafter at a floating rate per annum equal to three-month LIBOR plus a spread of 3.578 percent . The net proceeds from the preferred stock offering totaled $98.1 million . Commencing September 30, 2022, Valley may redeem the preferred shares at the liquidation preference plus accrued and unpaid dividends, subject to certain conditions. Preferred stock is included in Valley's (additional) Tier 1 capital and total risk-based capital at December 31, 2019 and 2018 . |
Other Comprehensive Income
Other Comprehensive Income | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Other Comprehensive Income | OTHER COMPREHENSIVE INCOME (Note 20) The following table presents the tax effects allocated to each component of other comprehensive income (loss) for the years ended December 31, 2019 , 2018 and 2017 . Components of other comprehensive income (loss) include changes in net unrealized gains and losses on debt securities available for sale (including the non-credit portion of other-than-temporary impairment charges relating to certain securities during the period); unrealized gains and losses on derivatives used in cash flow hedging relationships; and the pension benefit adjustment for the unfunded portion of various employee, officer and director pension plans. 2019 2018 2017 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax (in thousands) Unrealized gains and losses on available for sale (AFS) debt securities Net gains (losses) arising during the period $ 54,723 $ (15,461 ) $ 39,262 $ (32,123 ) $ 9,191 $ (22,932 ) $ 1,485 $ (635 ) $ 850 Less reclassification adjustment for net losses (gains) included in net income (1) 150 (31 ) 119 2,873 (636 ) 2,237 (264 ) 108 (156 ) Net change 54,873 (15,492 ) 39,381 (29,250 ) 8,555 (20,695 ) 1,221 (527 ) 694 Unrealized gains and losses on derivatives (cash flow hedges) Net (losses) gains arising during the period (1,380 ) 391 (989 ) 2,651 (777 ) 1,874 1,005 (429 ) 576 Less reclassification adjustment for net losses included in net income (2) 1,808 (517 ) 1,291 3,493 (999 ) 2,494 8,579 (3,551 ) 5,028 Net change 428 (126 ) 302 6,144 (1,776 ) 4,368 9,584 (3,980 ) 5,604 Defined benefit pension plan Net (losses) gains arising during the period (2,385 ) (176 ) (2,561 ) (9,916 ) 2,765 (7,151 ) (3,843 ) 1,121 (2,722 ) Amortization of prior service (cost) credit (3) (135 ) 42 (93 ) 212 (66 ) 146 268 (77 ) 191 Amortization of net loss (3) 264 (76 ) 188 625 (178 ) 447 381 (133 ) 248 Net change (2,256 ) (210 ) (2,466 ) (9,079 ) 2,521 (6,558 ) (3,194 ) 911 (2,283 ) Total other comprehensive income (loss) $ 53,045 $ (15,828 ) $ 37,217 $ (32,185 ) $ 9,300 $ (22,885 ) $ 7,611 $ (3,596 ) $ 4,015 (1) Included in losses on securities transactions, net. (2) Included in interest expense. (3) Included in the computation of net periodic pension cost. See Note 13 for details. The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 : Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on AFS Securities Unrealized Gains and Losses on Derivatives Defined Benefit Pension Plan (in thousands) Balance-December 31, 2016 $ (10,736 ) $ (12,464 ) $ (18,893 ) $ (42,093 ) Reclassification due to the adoption of ASU No. 2018-02 (2,342 ) (1,478 ) (4,107 ) (7,927 ) Balance-January 1, 2017 (13,078 ) (13,942 ) (23,000 ) (50,020 ) Other comprehensive income (loss) before reclassifications 850 576 (2,722 ) (1,296 ) Amounts reclassified from other comprehensive income (loss) (156 ) 5,028 439 5,311 Other comprehensive income (loss), net 694 5,604 (2,283 ) 4,015 Balance-December 31, 2017 (12,384 ) (8,338 ) (25,283 ) (46,005 ) Reclassification due to the adoption of ASU No. 2016-01 (480 ) — — (480 ) Reclassification due to the adoption of ASU No. 2017-12 — (61 ) — (61 ) Balance-January 1, 2018 (12,864 ) (8,399 ) (25,283 ) (46,546 ) Other comprehensive income (loss) before reclassifications (22,932 ) 1,874 (7,151 ) (28,209 ) Amounts reclassified from other comprehensive income (loss) 2,237 2,494 593 5,324 Other comprehensive income (loss), net (20,695 ) 4,368 (6,558 ) (22,885 ) Balance-December 31, 2018 (33,559 ) (4,031 ) (31,841 ) (69,431 ) Other comprehensive income (loss) before reclassifications 39,262 (989 ) (2,561 ) 35,712 Amounts reclassified from other comprehensive income (loss) 119 1,291 95 1,505 Other comprehensive income (loss), net 39,381 302 (2,466 ) 37,217 Balance-December 31, 2019 $ 5,822 $ (3,729 ) $ (34,307 ) $ (32,214 ) |
Quarterly Financial Data (Unaud
Quarterly Financial Data (Unaudited) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Quarterly Financial Data (Unaudited) | QUARTERLY FINANCIAL DATA (UNAUDITED) (Note 21) Quarters Ended 2019 March 31 June 30 September 30 December 31 (in thousands, except for share data) Interest income $ 320,224 $ 327,742 $ 329,261 $ 343,773 Interest expense 101,576 107,508 108,636 105,232 Net interest income 218,648 220,234 220,625 238,541 Provision for credit losses 8,000 2,100 8,700 5,418 Non-interest income: Net impairment losses on securities recognized in earnings — (2,928 ) — — Gains on sales of loans, net 4,576 3,930 5,194 5,214 Gains (losses) on sales of assets, net 77,720 (564 ) (159 ) 1,336 Other non-interest income 25,377 27,165 36,115 31,544 Non-interest expense: Loss on extinguishment of debt — — — 31,995 Amortization of tax credit investments 7,173 4,863 4,385 3,971 Other non-interest expense 140,622 136,874 141,492 160,180 Income before income taxes 170,526 104,000 107,198 75,071 Income tax expense 57,196 27,532 25,307 36,967 Net income 113,330 76,468 81,891 38,104 Dividend on preferred stock 3,172 3,172 3,172 3,172 Net income available to common shareholders 110,158 73,296 78,719 34,932 Earnings per common share: Basic $ 0.33 $ 0.22 $ 0.24 $ 0.10 Diluted 0.33 0.22 0.24 0.10 Cash dividends declared per common share 0.11 0.11 0.11 0.11 Weighted average number of common shares outstanding: Basic 331,601,260 331,748,552 331,797,982 355,821,005 Diluted 332,834,466 332,959,802 333,405,196 358,864,876 Quarters Ended 2018 March 31 June 30 September 30 December 31 (in thousands, except for share data) Interest income $ 267,495 $ 280,118 $ 297,041 $ 314,594 Interest expense 59,897 69,366 80,241 92,541 Net interest income 207,598 210,752 216,800 222,053 Provision for credit losses 10,948 7,142 6,552 7,859 Non-interest income: Gains on sales of loans, net 6,753 7,642 3,748 2,372 Losses on sales of assets (97 ) (125 ) (1,899 ) (280 ) Other non-interest income 25,595 30,552 27,189 32,602 Non-interest expense: Amortization of tax credit investments 5,274 4,470 5,412 9,044 Other non-interest expense 168,478 145,446 146,269 144,668 Income before income taxes 55,149 91,763 87,605 95,176 Income tax expense 13,184 18,961 18,046 18,074 Net income 41,965 72,802 69,559 77,102 Dividend on preferred stock 3,172 3,172 3,172 3,172 Net income available to common shareholders 38,793 69,630 66,387 73,930 Earnings per common share: Basic $ 0.12 $ 0.21 $ 0.20 $ 0.22 Diluted 0.12 0.21 0.20 0.22 Cash dividends declared per common share 0.11 0.11 0.11 0.11 Weighted average number of common shares outstanding: Basic 330,727,416 331,318,381 331,486,500 331,492,648 Diluted 332,465,527 332,895,483 333,000,242 332,856,385 |
Parent Company Information
Parent Company Information | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Parent Company Information | PARENT COMPANY INFORMATION (Note 22) Condensed Statements of Financial Condition December 31, 2019 2018 (in thousands) Assets Cash $ 119,213 $ 109,839 Investments in and receivables due from subsidiaries 4,671,578 3,609,836 Other assets 12,953 32,721 Total Assets $ 4,803,744 $ 3,752,396 Liabilities and Shareholders’ Equity Dividends payable to shareholders $ 45,796 $ 37,644 Long-term borrowings 292,414 294,602 Junior subordinated debentures issued to capital trusts 55,718 55,370 Accrued expenses and other liabilities 25,628 14,326 Shareholders’ equity 4,384,188 3,350,454 Total Liabilities and Shareholders’ Equity $ 4,803,744 $ 3,752,396 Condensed Statements of Income Years Ended December 31, 2019 2018 2017 (in thousands) Income Dividends from subsidiary $ 160,000 $ 155,000 $ 122,000 Income from subsidiary 4,550 4,550 4,550 Gains on securities transactions, net — 3 — Losses on sales of assets, net — (147 ) — Other interest and income 51 39 135 Total Income 164,601 159,445 126,685 Total Expenses 27,998 32,269 39,621 Income before income tax and equity in undistributed earnings of subsidiary 136,603 127,176 87,064 Income tax expense (benefit) 24,524 (20,547 ) (30,179 ) Income before equity in undistributed earnings of subsidiary 112,079 147,723 117,243 Equity in undistributed earnings of subsidiary 197,714 113,705 44,664 Net Income 309,793 261,428 161,907 Dividends on preferred stock 12,688 12,688 9,449 Net Income Available to Common Shareholders $ 297,105 $ 248,740 $ 152,458 Condensed Statements of Cash Flows Years Ended December 31, 2019 2018 2017 (in thousands) Cash flows from operating activities: Net Income $ 309,793 $ 261,428 $ 161,907 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (197,714 ) (113,705 ) (44,664 ) Stock-based compensation 14,726 19,472 12,204 Net amortization of premiums and accretion of discounts on borrowings 124 63 197 Gains on securities transactions, net — (3 ) — Losses on sales of assets, net — 147 — Net change in: Other assets 19,768 9,928 (89 ) Accrued expenses and other liabilities 8,803 (10,657 ) 8,737 Net cash provided by operating activities 155,500 166,673 138,292 Cash flows from investing activities: Sales of investment securities available for sale — 257 — Cash and cash equivalents acquired in acquisitions 11,947 7,915 — Capital contributions to subsidiary — — (98,000 ) Net cash provided by (used in) investing activities 11,947 8,172 (98,000 ) Cash flows from financing activities: Proceeds from issuance of preferred stock, net — — 98,101 Dividends paid to preferred shareholders (12,688 ) (15,859 ) (6,277 ) Dividends paid to common shareholders (146,537 ) (138,857 ) (115,881 ) Purchase of common shares to treasury (1,805 ) (3,801 ) (2,644 ) Common stock issued, net 2,957 2,704 8,207 Net cash used in financing activities (158,073 ) (155,813 ) (18,494 ) Net change in cash and cash equivalents 9,374 19,032 21,798 Cash and cash equivalents at beginning of year 109,839 90,807 69,009 Cash and cash equivalents at end of year $ 119,213 $ 109,839 $ 90,807 |
Business Segments
Business Segments | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Business Segments | BUSINESS SEGMENTS (Note 23) Valley has four business segments that it monitors and reports on to manage Valley’s business operations. These segments are consumer lending, commercial lending, investment management, and corporate and other adjustments. Valley’s reportable segments have been determined based upon its internal structure of operations and lines of business. Each business segment is reviewed routinely for its asset growth, contribution to income before income taxes and return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Expenses related to the branch network, all other components of retail banking, along with the back office departments of our subsidiary bank are allocated from the corporate and other adjustments segment to each of the other three business segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each business segment utilizing a “pool funding” methodology, which involves the allocation of uniform funding cost based on each segments’ average earning assets outstanding for the period. The financial reporting for each segment contains allocations and reporting in line with Valley’s operations, which may not necessarily be comparable to any other financial institution. The accounting for each segment includes internal accounting policies designed to measure consistent and reasonable financial reporting, and may result in income and expense measurements that differ from amounts under U.S. GAAP. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. The consumer lending segment is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, secured personal lines of credit, home equity loans and other consumer loans. The duration of the residential mortgage loan portfolio is subject to movements in the market level of interest rates and forecasted prepayment speeds. The average weighted life of the automobile loans within the portfolio is relatively unaffected by movements in the market level of interest rates. However, the average life may be impacted by new loans as a result of the availability of credit within the automobile marketplace and consumer demand for purchasing new or used automobiles. The consumer lending segment also includes the Wealth Management Division, comprised of trust, asset management and insurance services. The commercial lending segment is mainly comprised of floating rate and adjustable rate commercial and industrial loans and construction loans, as well as fixed rate owner occupied and commercial real estate loans. Due to the portfolio’s interest rate characteristics, commercial lending is Valley’s business segment that is most sensitive to movements in market interest rates. The investment management segment generates a large portion of Valley’s income through investments in various types of securities and interest-bearing deposits with other banks. These investments are mainly comprised of fixed rate securities and depending on Valley's liquid cash position, interest-bearing deposits with banks (primarily the Federal Reserve Bank of New York), as part of its asset/liability management strategies. The fixed rate investments are among Valley’s assets that are least sensitive to changes in market interest rates. However, a portion of the investment portfolio is invested in shorter-duration securities to maintain the overall asset sensitivity of Valley’s balance sheet. The amounts disclosed as “corporate and other adjustments” represent income and expense items not directly attributable to a specific segment, including net gains and losses on securities and net impairment losses not reported in the investment management segment above, interest expense related to subordinated notes, amortization of tax credit investments , as well as infrequent items, such as the loss on extinguishment of debt, gain on sale leaseback transactions and merger expenses. The following tables represent the financial data for Valley’s four business segments for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 Consumer Lending Commercial Lending Investment Management Corporate and Other Adjustments Total ($ in thousands) Average interest earning assets (unaudited) $ 6,891,462 $ 19,343,791 $ 4,340,277 $ — $ 30,575,530 Interest income $ 272,773 $ 926,328 $ 126,723 $ (4,824 ) $ 1,321,000 Interest expense 91,798 257,670 57,815 15,669 422,952 Net interest income (loss) 180,975 668,658 68,908 (20,493 ) 898,048 Provision for credit losses 6,688 17,530 — — 24,218 Net interest income (loss) after provision for credit losses 174,287 651,128 68,908 (20,493 ) 873,830 Non-interest income 57,981 41,157 8,818 106,564 214,520 Non-interest expense 76,046 101,924 1,034 452,551 631,555 Internal expense transfer 78,743 221,113 49,670 (349,526 ) — Income (loss) before income taxes $ 77,479 $ 369,248 $ 27,022 $ (16,954 ) $ 456,795 Return on average interest earning assets (pre-tax) (unaudited) 1.12 % 1.91 % 0.62 % N/A 1.49 % Year Ended December 31, 2018 Consumer Lending Commercial Lending Investment Management Corporate and Other Adjustments Total ($ in thousands) Average interest earning assets (unaudited) $ 6,197,161 $ 17,143,169 $ 4,362,581 $ — $ 27,702,911 Interest income $ 235,264 $ 798,974 $ 130,971 $ (5,961 ) $ 1,159,248 Interest expense 64,083 177,273 45,112 15,577 302,045 Net interest income (loss) 171,181 621,701 85,859 (21,538 ) 857,203 Provision for credit losses 5,550 26,951 — — 32,501 Net interest income (loss) after provision for credit losses 165,631 594,750 85,859 (21,538 ) 824,702 Non-interest income 61,280 22,275 8,691 41,806 134,052 Non-interest expense 92,462 95,171 1,251 440,177 629,061 Internal expense transfer 77,164 213,399 54,353 (344,916 ) — Income (loss) before income taxes $ 57,285 $ 308,455 $ 38,946 $ (74,993 ) $ 329,693 Return on average interest earning assets (pre-tax) (unaudited) 0.92 % 1.80 % 0.89 % N/A 1.19 % Year Ended December 31, 2017 Consumer Lending Commercial Lending Investment Management Corporate and Other Adjustments Total ($ in thousands) Average interest earning assets (unaudited) $ 5,166,171 $ 12,652,832 $ 3,669,495 $ — $ 21,488,498 Interest income $ 182,508 $ 552,297 $ 107,972 $ (8,623 ) $ 834,154 Interest expense 39,018 95,562 27,714 11,813 174,107 Net interest income (loss) 143,490 456,735 80,258 (20,436 ) 660,047 Provision for credit losses 3,197 6,745 — — 9,942 Net interest income (loss) after provision for credit losses 140,293 449,990 80,258 (20,436 ) 650,105 Non-interest income 63,375 11,414 7,745 29,172 111,706 Non-interest expense 72,207 71,216 1,193 364,457 509,073 Internal expense transfer 68,007 166,847 48,393 (283,247 ) — Income (loss) before income taxes $ 63,454 $ 223,341 $ 38,417 $ (72,474 ) $ 252,738 Return on average interest earning assets (pre-tax) (unaudited) 1.23 % 1.77 % 1.05 % N/A 1.18 % |
Summary of Significant Accoun_2
Summary of Significant Accounting Policies (Policies) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Business | Business Valley National Bancorp, a New Jersey Corporation (Valley), is a bank holding company whose principal wholly-owned subsidiary is Valley National Bank (the “Bank”), a national banking association providing a full range of commercial, retail and trust and investment services largely through its offices and ATM network throughout northern and central New Jersey, the New York City boroughs of Manhattan, Brooklyn and Queens, Long Island, Florida and Alabama. The Bank is subject to intense competition from other financial services companies and is subject to the regulation of certain federal and state agencies and undergoes periodic examinations by certain regulatory authorities. Valley National Bank’s subsidiaries are all included in the consolidated financial statements of Valley. These subsidiaries include, but are not limited to: • an insurance agency offering property and casualty, life and health insurance; • an asset management adviser that is a registered investment adviser with the Securities and Exchange Commission (SEC); • a title insurance agency in New York, which also provides services in New Jersey; • subsidiaries which hold, maintain and manage investment assets for the Bank; • a subsidiary which specializes in health care equipment lending and other commercial equipment leases; and • a subsidiary which owns and services New York commercial loans. The Bank’s subsidiaries also include real estate investment trust subsidiaries (the “REIT” subsidiaries) which own real estate related investments and a REIT subsidiary which owns some of the real estate utilized by the Bank and related real estate investments. Except for Valley’s REIT subsidiaries, all subsidiaries mentioned above are directly or indirectly wholly-owned by the Bank. Because each REIT subsidiary must have 100 or more shareholders to qualify as a REIT, each REIT subsidiary has issued less than 20 percent |
Basis of Presentation | Basis of Presentation The consolidated financial statements of Valley include the accounts of its commercial bank subsidiary, Valley National Bank and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. See Note 12 for more details. Certain prior period amounts have been reclassified to conform to the current presentation. In preparing the consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that are particularly susceptible to change are: the allowance for loan losses, purchased credit-impaired loans, the evaluation of goodwill and other intangible assets for impairment, and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. |
Cash and Cash Equivalents | Cash and Cash Equivalents |
Investment Securities | Investment Securities Debt securities are classified at the time of purchase based on management’s intention, as securities available-for-sale or securities held-to-maturity. Investment securities classified as held-to-maturity are those that management has the positive intent and ability to hold until maturity. Investment securities held-to-maturity are carried at amortized cost, adjusted for amortization of premiums and accretion of discounts using the level-yield method over the contractual term of the securities, adjusted for actual prepayments, or to call date if the security was purchased at premium. Investment securities classified as available-for-sale are carried at fair value with unrealized holding gains and losses reported as a component of other comprehensive income or loss, net of tax. Realized gains or losses on the available-for-sale securities are recognized by the specific identification method and are included in net gains and losses on securities transactions. Equity securities are stated at fair value with any unrealized and realized gains and losses reported in non-interest income. Investments in Federal Home Loan Bank and Federal Reserve Bank stock, which have limited marketability, are carried at cost in other assets. Security transactions are recorded on a trade-date basis. Quarterly, Valley evaluates its investment securities classified as held to maturity and available for sale for other-than-temporary impairment. Valley's evaluation of other-than-temporary impairment considers factors that include, among others, the causes of the decline in fair value, such as credit problems, interest rate fluctuations, or market volatility; and the severity and duration of the decline. For debt securities, the primary consideration in determining whether impairment is other-than-temporary is whether or not it is probable that current and/or future contractual cash flows have been or may be impaired. Valley also assesses the intent and ability to hold the securities (as well as the likelihood of a near-term recovery), and the intent to sell the securities and whether it is more likely than not that we will be required to sell the securities before the recovery of their amortized cost basis. In assessing the level of other-than-temporary impairment attributable to credit loss, Valley compares the present value of cash flows expected to be collected with the amortized cost basis of the security. If a determination is made that a debt security is other-than-temporarily impaired, Valley will estimate the amount of the unrealized loss that is attributable to credit and all other non-credit related factors. The credit related component will be recognized as an other-than-temporary impairment charge in non-interest income. The non-credit related component will be recorded as an adjustment to accumulated other comprehensive income (loss), net of tax. When a debt security becomes other-than-temporarily impaired, its amortized cost basis is reduced to reflect the portion of the total impairment related to credit loss. See the “Other-Than-Temporary Impairment Analysis” section of Note 4 for further discussion. Interest income on investments includes amortization of purchase premiums and discounts. Valley discontinues the recognition of interest on debt securities if the securities meet both of the following criteria: (i) regularly scheduled interest payments have not been paid or have been deferred by the issuer, and (ii) full collection of all contractual principal and interest payments is not deemed to be the most likely outcome, resulting in the recognition of other-than-temporary impairment of the security. |
Loans Held for Sale | Loans Held for Sale Loans held for sale generally consist of residential mortgage loans originated and intended for sale in the secondary market and are carried at their estimated fair value on an instrument-by-instrument basis as permitted by the fair value option election under U.S. GAAP. Changes in fair value are recognized in non-interest income in the accompanying consolidated statements of income as a component of net gains on sales of loans. Origination fees and costs related to loans originated for sale (and carried at fair value) are recognized as earned and as incurred. Loans held for sale are generally sold with loan servicing rights retained by Valley. Gains recognized on loan sales include the value assigned to the rights to service the loan. See the “Loan Servicing Rights” section below. |
Loans and Loan Fees | Loans and Loan Fees Loans are reported at their outstanding principal balance net of any unearned income, charge-offs, unamortized deferred fees and costs on originated loans and premium or discounts on purchased loans, except for purchased credit-impaired loans. Loan origination and commitment fees, net of related costs are deferred and amortized as an adjustment of loan yield over the estimated life of the loans approximating the effective interest method. Loans are deemed to be past due when the contractually required principal and interest payments have not been received as they become due. Loans are placed on non-accrual status generally, when they become 90 days past due and the full and timely collection of principal and interest becomes uncertain. When a loan is placed on non-accrual status, interest accruals cease and uncollected accrued interest is reversed and charged against current income. Payments received on non-accrual loans are generally applied against principal. A loan in which the borrowers’ obligation has not been released in bankruptcy courts may be restored to an accruing basis when it becomes well secured and is in the process of collection, or all past due amounts become current under the loan agreement and collectability is no longer doubtful. |
Purchased Credit-Impaired Loans (Including Covered Loans) | Purchased Credit-Impaired Loans Purchased credit-impaired (PCI) loans are loans acquired at a discount (that is due, in part, to credit quality). Valley's PCI loan portfolio primarily consists of loans acquired in business combinations subsequent to 2011. The PCI loans are initially recorded at fair value (as determined by the present value of expected future cash flows) with no allowance for loan losses. Interest income on PCI loans has been accounted for based on the acquired loans’ expected cash flows. The PCI loans may be aggregated and accounted for as a pool of loans if the loans being aggregated have common risk characteristics. A pool is accounted for as a single asset with a single composite interest rate and an aggregate expectation of cash flow. The difference between the undiscounted cash flows expected at acquisition and the investment in the loans, or the “accretable yield,” is recognized as interest income utilizing the level-yield method over the life of each pool. Contractually required payments for interest and principal that exceed the undiscounted cash flows expected at acquisition, or the “nonaccretable difference,” are not recognized as a yield adjustment or as a loss accrual or an allowance for loan losses. Increases in expected cash flows subsequent to the acquisition are recognized prospectively through adjustment of the yield on the pool over its remaining life, while decreases in expected cash flows are recognized as impairment through a loss provision and an increase in the allowance for loan losses. Therefore, the allowance for loan losses on these impaired pools reflect only losses incurred after the acquisition (representing the present value of all cash flows that were expected at acquisition but currently are not expected to be received). Valley had no allowance reserves related to PCI loans at December 31, 2019 and 2018 . On a quarterly or more frequent basis, the Bank evaluates the remaining contractual required payments due and estimates of cash flows expected to be collected for the underlying loans of each PCI loan pool. These evaluations require the continued use of key assumptions and estimates, similar to the initial estimate of fair value. Changes in the contractual required payments due and estimated cash flows expected to be collected may result in changes in the accretable yield and non-accretable difference or reclassifications between accretable yield and the non-accretable difference. For the pools with better than expected cash flows, the forecasted increase is recorded as an additional accretable yield that is recognized as a prospective increase to our interest income on loans. See Note 5 for additional information. PCI loans that may have been classified as non-performing loans by an acquired bank are no longer classified as non-performing because these loans are accounted for on a pooled basis. Management’s judgment is required in classifying loans in pools as performing loans, and is dependent on having a reasonable expectation about the timing and amount of the pool cash flows to be collected, even if certain loans within the pool are contractually past due. |
Allowance for Credit Losses | Allowance for Credit Losses The allowance for credit losses (the “allowance”) is increased through provisions charged against current earnings and additionally by crediting amounts of recoveries received, if any, on previously charged-off loans. The allowance is reduced by charge-offs on loans or unfunded letters of credit which are determined to be a loss, in accordance with established policies, when all efforts of collection have been exhausted. The allowance is maintained at a level estimated to absorb probable credit losses inherent in the loan portfolio as well as other credit risk related charge-offs. The allowance is based on ongoing evaluations of the probable estimated losses inherent in the non-PCI loan portfolio and off-balance sheet unfunded letters of credit, as well as reserves for impairment of PCI loans subsequent to their acquisition date. As discussed under the “Purchased Credit-Impaired Loans” section above, Valley had no allowance reserves related to PCI loans at December 31, 2019 and 2018 . The Bank’s methodology for evaluating the appropriateness of the allowance includes grouping the loan portfolio into loan segments based on common risk characteristics, tracking the historical levels of classified loans and delinquencies, estimating the appropriate loss look-back and loss emergence periods related to historical losses for each loan segment, providing specific reserves on impaired loans, and assigning incremental reserves where necessary based upon qualitative and economic outlook factors including numerous variables, such as the nature and trends of recent loan charge-offs. Additionally, the volume of non-performing loans, concentration risks by size, type, and geography, new markets, collateral adequacy, credit policies and procedures, staffing, underwriting consistency, loan review and economic conditions are taken into consideration. The allowance for loan losses consists of four elements: (i) specific reserves for individually impaired credits, (ii) reserves for adversely classified, or higher risk rated, loans that are not impaired, (iii) reserves for other loans based on historical loss factors (using the appropriate loss look-back and loss emergence periods) adjusted for both internal and external qualitative risk factors to Valley, including the aforementioned factors, as well as changes in both organic and purchased loan portfolio volumes, the composition and concentrations of credit, new market initiatives, and the impact of competition on loan structuring and pricing, and (iv) an allowance for PCI loan pools impaired subsequent to the acquisition date, if applicable. The Credit Risk Management Department individually evaluates non-accrual (non-homogeneous) commercial and industrial loans and commercial real estate loans over $250 thousand and all troubled debt restructured loans. The value of an impaired loan is measured based upon the underlying anticipated method of payment consisting of either the present value of expected future cash flows discounted at the loan’s effective interest rate, or the fair value of the collateral, if the loan is collateral dependent, and its payment is expected solely based on the underlying collateral. If the value of an impaired loan is less than its carrying amount, impairment is recognized through a provision to the allowance for loan losses. Collateral dependent impaired loan balances are written down to the estimated current fair value (less estimated selling costs) of each loan’s underlying collateral resulting in an immediate charge-off to the allowance, excluding any consideration for personal guarantees that may be pursued in the Bank’s collection process. If repayment is based upon future expected cash flows, the present value of the expected future cash flows discounted at the loan’s original effective interest rate is compared to the carrying value of the loan, and any shortfall is recorded as a specific valuation allowance in the allowance for loan losses. Accrual of interest is discontinued on an impaired loan when management believes, after considering collection efforts and other factors, the borrower’s financial condition is such that collection of all principal and interest is doubtful. Cash collections from non-accrual loans are generally credited to the loan balance, and no interest income is recognized on these loans until the principal balance has been determined to be fully collectible. Residential mortgage loans and consumer loans usually consist of smaller balance homogeneous loans that are collectively evaluated for impairment, and are specifically excluded from the impaired loan portfolio, except where the loan is classified as a troubled debt restructured loan. The allowances established for probable losses on specific loans are based on a regular analysis and evaluation of the loans. Loans are evaluated based on an internal credit risk rating system for the commercial and industrial loan and commercial real estate loan portfolio segments and non-performing loan status for the residential and consumer loan portfolio segments. Loans are risk-rated based on an internal credit risk grading process that evaluates, among other things: (i) the obligor’s ability to repay; (ii) the underlying collateral, if any; and (iii) the economic environment and industry in which the borrower operates. This analysis is performed at the relationship manager level for all commercial and industrial loans and commercial real estate loans, and evaluated by the Loan Review Department on a test basis. Loans with a grade that is below “Pass” grade are adversely classified. See Note 5 for details. Any change in the credit risk grade of adversely classified performing and/or non-performing loans affects the amount of the related allowance. Once a loan is adversely classified, the assigned relationship manager and/or a special assets officer in conjunction with the Credit Risk Management Department analyzes the loan to determine whether the loan is impaired and, if impaired, the need to specifically assign a valuation allowance for loan losses to the loan. Specific valuation allowances are determined by analyzing the borrower’s ability to repay amounts owed, collateral deficiencies, the relative risk grade of the loan and economic conditions affecting the borrower’s industry, among other things. Loans identified as losses by management are charged-off. Commercial loans are generally assessed for full or partial charge-off to the net realizable value for collateral dependent loans when a loan is between 90 or 120 days past due or sooner if it is probable that a loan may not be fully collectable. Residential loans and home equity loans are generally charged-off to net realizable value when the loan is 120 days past due (or sooner when the borrowers’ obligation has been released in bankruptcy). Automobile loans are fully charged-off when the loan is 120 days past due or partially charged-off to the net realizable value of collateral, if the collateral is recovered prior to such time. Unsecured consumer loans are generally fully charged-off when the loan is 150 days past due. The allowance allocations for other loans (i.e., risk rated loans that are not adversely classified and loans that are not risk rated) are calculated by applying historical loss factors for each loan portfolio segment to the applicable outstanding loan portfolio balances. Loss factors are calculated using statistical analysis supplemented by management judgment. The statistical analysis considers historical default rates, historical loss severity in the event of default, and the average loss emergence period for each loan portfolio segment. The management analysis includes an evaluation of loan portfolio volumes, the composition and concentrations of credit, credit quality and current delinquency trends. |
Lessor Arrangements | Lessor Arrangements. Valley's lessor arrangements primarily consist of direct financing and sales-type leases for equipment included in the commercial and industrial loan portfolio. Lease agreements may include options to renew and for the lessee to purchase the leased equipment at the end of the lease term. |
Lessee Arrangements | Lessee Arrangements. Valley's lessee arrangements predominantly consist of operating and finance leases for premises and equipment. The majority of the operating leases include one or more options to renew that can significantly extend the lease terms. Valley’s leases have a wide range of lease expirations through the year 2062. Operating and finance leases are recognized as right of use (ROU) assets and lease liabilities in the consolidated statements of financial position. The ROU assets represent the right to use underlying assets for the lease terms and lease liabilities represent Valley’s obligations to make lease payments arising from the lease. The ROU assets include any prepaid lease payments and initial direct costs, less any lease incentives. At the commencement dates of leases, ROU assets and lease liabilities are initially recognized based on their net present values with the lease terms including options to extend or terminate the lease when Valley is reasonably certain that the options will be exercised to extend. ROU assets are amortized into net occupancy and equipment expense over the expected lives of the leases. Lease liabilities are discounted to their net present values on the balance sheet based on incremental borrowing rates as determined at the lease commencement dates using quoted interest rates for readily available borrowings, such as fixed rate FHLB advances, with similar terms as the lease obligations. Lease liabilities are reduced by actual lease payments. |
Premises and Equipment, Net | Premises and Equipment, Net Premises and equipment are stated at cost less accumulated depreciation computed using the straight-line method over the estimated useful lives of the related assets. Estimated useful lives range from 3 years for capitalized software to up to 40 years |
Bank Owned Life Insurance | Bank Owned Life Insurance Valley owns bank owned life insurance (BOLI) to help offset the cost of employee benefits. BOLI is recorded at its cash surrender value. Valley’s BOLI is invested primarily in U.S. Treasury securities and residential mortgage-backed securities issued by government sponsored enterprises and Ginnie Mae. The majority of the underlying investment portfolio is managed by one independent investment firm. The change in the cash surrender value is included as a component of non-interest income and is exempt from federal and state income taxes as long as the policies are held until the death of the insured individuals. |
Other Real Estate Owned | Other Real Estate Owned |
Goodwill | Goodwill Intangible assets resulting from acquisitions under the acquisition method of accounting consist of goodwill and other intangible assets (see “Other Intangible Assets” below). Goodwill is not amortized and is subject to an annual assessment for impairment. Currently, the goodwill impairment analysis is generally a two-step test. However, Valley may choose to perform an optional qualitative assessment to determine whether it is necessary to perform the two-step quantitative goodwill impairment test for one or more units in future periods. During 2019 and 2018 , Valley elected to perform step one of the two-step goodwill impairment test for all of its reporting units. Goodwill is allocated to Valley’s reporting unit, which is a business segment or one level below, at the date goodwill is actually recorded. If the carrying value of a reporting unit exceeds its estimated fair value, a second step in the analysis is performed to determine the amount of impairment, if any. The second step compares the implied fair value of the reporting unit’s goodwill with the carrying amount of that goodwill. If the carrying value of a reporting unit exceeds the implied fair value of the goodwill, an impairment charge is recorded equal to the excess amount in the current period earnings. Valley reviews goodwill annually or more frequently if a triggering event indicates impairment may have occurred, to determine potential impairment by determining if the fair value of the reporting unit has fallen below the carrying value. |
Other Intangible Assets | Other Intangible Assets Other intangible assets primarily consist of loan servicing rights (largely generated from loan servicing retained by the Bank on residential mortgage loan originations sold in the secondary market to government sponsored enterprises), core deposits (the portion of an acquisition purchase price which represents value assigned to the existing deposit base) and customer lists obtained through acquisitions. Other intangible assets are amortized using various methods over their estimated lives and are periodically evaluated for impairment whenever events or changes in circumstances indicate the carrying amount of the assets may not be recoverable from future undiscounted cash flows. If impairment is deemed to exist, an adjustment is recorded to earnings in the current period for the difference between the fair value of the asset and its carrying amount. See further details regarding loan servicing rights below. |
Loan Servicing Rights | Loan Servicing Rights Loan servicing rights are recorded when originated mortgage loans are sold with servicing rights retained, or when servicing rights are purchased. Valley initially records the loan servicing rights at fair value. Subsequently, the loan servicing rights are carried at the lower of unamortized cost or market (i.e., fair value). The fair values of the loan servicing rights for each risk-stratified group of loan servicing rights are calculated using a fair value model from a third party vendor that various assumptions, including but not limited to, prepayment speeds, internal rate of return (“discount rate”), servicing cost, ancillary income, float rate, tax rate, and inflation. The prepayment speed and the discount rate are considered two of the most significant inputs in the model. The unamortized costs associated with acquiring loan servicing rights, net of any valuation allowances, are included in other intangible assets in the consolidated statements of financial condition and are accounted for using the amortization method. Valley amortizes the loan servicing assets in proportion to and over the period of estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. A valuation allowance is established through an impairment charge to earnings to the extent the unamortized cost of a stratified group of loan servicing rights exceeds its estimated fair value. Increases in the fair value of impaired loan servicing rights are recognized as a reduction of the valuation allowance, but not in excess of such allowance. The amortization of loan servicing rights is recorded in non-interest income. |
Stock-Based Compensation | Stock-Based Compensation Compensation expense for restricted stock units, restricted stock and stock option awards (i.e., non-vested stock awards) is based on the fair value of the award on the date of the grant and is recognized ratably over the service period of the award. Beginning in 2019, Valley's long-term incentive compensation plan was amended for award grantees that are eligible for retirement to include a service period requirement, in which an award will vest at one-twelve per month after the grant date. Compensation expense for these awards is amortized monthly over a one year |
Fair Value Measurements | Fair Value Measurements |
Revenue Recognition | Revenue Recognition On January 1, 2018, Valley adopted Accounting Standards Update No. 2014-09, “Revenue from Contracts with Customers (Topic 606)" and subsequent related updates that modify the guidance used to recognize revenue from contracts with customers for transfers of goods and services and transfers of non-financial assets, unless those contracts are within the scope of other guidance. The adoption did not materially change Valley's recognition of revenues within the scope of Topic 606. Valley's revenue contracts generally have a single performance obligation, as the promise to transfer the individual goods or services is not separately identifiable, or distinct from other obligations within the contracts. Valley does not have a material amount of long-term customer agreements that include multiple performance obligations requiring price allocation and differences in the timing of revenue recognition. Valley has no customer contracts with variable fee agreements based upon performance. Valley's revenue within the scope of ASC Topic 606 includes: (i) trust and investment services income from investment management, investment advisory, trust, custody and other products; (ii) service charges on deposit accounts from checking accounts, savings accounts, overdrafts, insufficient funds, ATM transactions and other activities; and (iii) other income from fee income related to derivative interest rate swaps executed with commercial loan customers, and fees from interchange, wire transfers, credit cards, safe deposit box, ACH, lockbox and various other products and services-related income. |
Income Taxes | Income Taxes Valley uses the asset and liability method to provide income taxes on all transactions recorded in the consolidated financial statements. This method requires that income taxes reflect the expected future tax consequences of temporary differences between the carrying amounts of assets or liabilities for book and tax purposes. Accordingly, a deferred tax asset or liability for each temporary difference is determined based on the enacted tax rates that will be in effect when the underlying items of income and expense are expected to be realized. Valley’s expense for income taxes includes the current and deferred portions of that expense. Deferred tax assets are recognized if, in management's judgment, their realizability is determined to be more likely than not. A valuation allowance is established to reduce deferred tax assets to the amount we expect to realize. Deferred income tax expense or benefit results from differences between assets and liabilities measured for financial reporting versus income-tax return purposes. The effect on deferred taxes of a change in tax rates is recognized in income tax expense in the period that includes the enactment date. See Note 14 for details regarding the impact of the Tax Act enacted by the U.S. government on December 22, 2017. Valley maintains a reserve related to certain tax positions that management believes contain an element of uncertainty. An uncertain tax position is measured based on the largest amount of benefit that management believes is more likely than not to be realized. Periodically, Valley evaluates each of its tax positions and strategies to determine whether the reserve continues to be appropriate. |
Comprehensive Income | Comprehensive Income |
Earnings Per Common Share | Earnings Per Common Share In Valley's computation of the earnings per common share, the numerator of both the basic and diluted earnings per common share is net income available to common shareholders (which is equal to net income less dividends on preferred stock). The weighted average number of common shares outstanding used in the denominator for basic earnings per common share is increased to determine the denominator used for diluted earnings per common share by the effect of potentially dilutive common stock equivalents utilizing the treasury stock method. |
Preferred and Common Stock Dividends | Preferred and Common Stock Dividends Valley issued 4.6 million shares and 4.0 million shares of non-cumulative perpetual preferred stock in June 2015 and August 2017, respectively, which were initially recorded at fair value. See Note 19 for additional details on the preferred stock issuances. The preferred shares are senior to Valley common stock, whereas the current year dividends must be paid before Valley can pay dividends to its common stockholders. Preferred dividends declared are deducted from net income for computing income available to common stockholders and earnings per common share computations. Cash dividends to both preferred and common stockholders are payable and accrued when declared by Valley's Board of Directors. |
Treasury Stock | Treasury Stock Treasury stock is recorded using the cost method and accordingly is presented as a reduction of shareholders’ equity. |
Derivative Instruments and Hedging Activities | Derivative Instruments and Hedging Activities As part of its asset/liability management strategies and to accommodate commercial borrowers, Valley has used interest rate swaps and caps to hedge variability in cash flows or fair values caused by changes in interest rates. Valley also uses derivatives not designated as hedges for non-speculative purposes to (1) manage its exposure to interest rate movements related to a service for commercial lending customers, (2) share the risk of default on the interest rate swaps related to certain purchased or sold loan participations through the use of risk participation agreements and (3) manage the interest rate risk of mortgage banking activities with customer interest rate lock commitments and forward contracts to sell residential mortgage loans. Valley also has hybrid instruments, consisting of market linked certificates of deposit with an embedded swap contract. Valley records all derivatives as assets or liabilities at fair value on the consolidated statements of financial condition. Derivatives used to hedge the exposure to variability in expected future cash flows, or other types of forecasted transactions, are considered cash flow hedges. Derivatives used to hedge the exposure to changes in the fair value of an asset, liability, or firm commitment attributable to a particular risk, such as interest rate risk, are considered fair value hedges. For derivatives designated as cash flow hedges, the effective portion of changes in the fair value of the derivative is initially reported in other comprehensive income or loss and subsequently reclassified to earnings when the hedged transaction affects earnings, and the ineffective portion of changes in the fair value of the derivative is recognized directly in earnings. For derivatives designated as fair value hedges, changes in the fair value of the derivative and the hedged item related to the hedged risk are recognized in earnings. On a quarterly basis, Valley assesses the effectiveness of each hedging relationship by comparing the changes in cash flows or fair value of the derivative hedging instrument with the changes in cash flows or fair value of the designated hedged item or transaction. If a hedging relationship is terminated due to ineffectiveness, and the derivative instrument is not re-designated to a new hedging relationship, the subsequent change in fair value of such instrument is charged directly to earnings. Derivatives not designated as hedges do not meet the hedge accounting requirements under U.S. GAAP. Changes in fair value of derivatives not designated in hedging relationships are recorded directly in earnings. Valley calculates the credit valuation adjustments to the fair value of derivatives designated as fair value hedges on a net basis by counterparty portfolio, as an accounting policy election under the provisions of ASU No. 2011-04. |
New Authoritative Accounting Guidance | New Authoritative Accounting Guidance New Accounting Guidance Adopted in 2019 Accounting Standards Update (ASU) No. 2016-02, “Leases (Topic 842)” and subsequent related updates require lessees to recognize leases on balance sheet and disclose key information about leasing arrangements. The new standard establishes a right-of-use model that requires lessees to recognize a ROU asset and related lease liability for all leases with a term longer than 12 months. For leases with a term of 12 months or less, a lessee is permitted to make an accounting policy election by class of underlying asset not to recognize right of use assets and lease liabilities. Leases continue to be classified as finance or operating, with classification affecting the pattern and classification of expense recognition in the income statement. Effective January 1, 2019, Valley adopted ASU No. 2016-02 (and subsequent related updates) and recorded ROU assets of approximately $216 million (net of the reversal of the deferred rent liability at such date) and lease obligations of approximately $241 million . Valley elected the "package of practical expedients," as permitted under the transition guidance within Topic 842. The practical expedients enable Valley to carry forward lease classifications under the prior accounting guidance (Topic 840). Additionally, the expedients enable the use of hindsight, through which Valley reassessed the likelihood of extending leases under extension clauses available to Valley. This shortened the expected lives of certain leases. As a result, Valley recorded a $4.4 million (net of tax) credit adjustment to the opening balance of retained earnings as of January 1, 2019. Valley also made accounting policy elections to (i) separate non-lease components from its lease obligations with the non-lease components being charged to earnings when incurred and to (ii) exclude short-term leases of 12 months or less from the balance sheet. The comparative periods prior to the adoption date of Topic 842 will continue to be presented in the financial statements in accordance with prior GAAP (Topic 840). See Note 7 for the additional required disclosures. ASU No. 2017-08, "Receivables - Nonrefundable Fees and Other Costs (Subtopic 310-20): Premium Amortization on Purchased Callable Debt Securities" shortens the amortization period for certain callable debt securities held at a premium. ASU No. 2017-08 requires the premium to be amortized to the earliest call date. The accounting for securities held at a discount does not change and the discount continues to be amortized as an adjustment to yield over the contractual life (to maturity) of the instrument. ASU No. 2017-08 was effective for Valley on January 1, 2019 and was applied using the modified retrospective method, resulting in a cumulative-effect adjustment to the opening balance of retained earnings totaling $1.4 million (net of tax) as of January 1, 2019. ASU No. 2017-08 did not have a significant impact on Valley's consolidated financial statements. ASU No. 2019-01, "Leases (Topic 842): Codification Improvements" reinstates the fair value exception in ASC 840, in which lessors will measure fair value, at lease commencement, as cost, reflecting any applicable volume or trade discounts. ASU No. 2019-01 also requires lessors that are depository or lending institutions in the scope of Topic 842 to classify the principal portion of lease payments received under sales-type and direct financing leases as cash flows from investing activities. The interest portion of those and all lease payments received under operating leases are classified as cash flows from operating activities. Effective January 1, 2019, Valley early adopted ASU No. 2019-01 concurrent with its adoption of Topic 842. The adoption of ASU No. 2019-01 did not have a material impact on Valley's consolidated financial statements. New Accounting Guidance Adopted in the First Quarter 2020 ASU No. 2016-13, "Financial Instruments - Credit Losses (Topic 326): Measurement of Credit Losses on Financial Instruments" amends the accounting guidance on the impairment of financial instruments. The FASB issued an amendment to replace today's incurred loss impairment methodology with a new current credit loss (CECL) model. Under the new guidance, Valley will be required to measure expected credit losses by utilizing forward-looking information to assess its allowance for credit losses. The guidance also requires consideration of a broader range of reasonable and supportable information to inform credit loss estimates. The measurement of expected credit losses is based on relevant information about past events, including historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the reported amount. Valley anticipates utilizing a two-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of the loan. The measurement of expected credit loss under the CECL methodology is applicable to financial assets measured at amortized cost, including loans, held to maturity investments and purchased financial assets with credit deterioration (PCD) assets. It also applies to certain off-balance sheet credit exposures. In November 2019, the FASB issued ASU No. 2019-11, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses", which clarifies that expected recoveries of amounts previously written off or expected to be written off should be included in the estimate of allowance for credit losses for purchased financial assets with credit deterioration, provides certain transition relief for TDR accounting when the discounted cash flow method is used to estimate credit losses, allows entities to elect to disclose separately the total amount of accrued interest included in the amortized cost basis as a single balance to meet certain disclosure requirements, and clarifies that an entity should assess whether it reasonably expects the borrower will be able to continually replenish collateral securing financial assets when electing a practical expedient to measure the estimate of expected credit losses by comparing the amortized cost basis of the financial asset and the fair value of collateral securing the financial asset as of the reporting date. Valley will adopt the new CECL accounting guidance effective January 1, 2020 using the modified retrospective approach for all financial assets measured at amortized cost (except for PCD loans) and off-balance sheet credit exposures. Valley has established a governance structure to implement the CECL accounting guidance and has developed a methodology and set of models to be used upon adoption. At December 31, 2019, Valley’s loan portfolio totaled $29.7 billion with a corresponding allowance for loan losses ("ALL") of $161.8 million under current GAAP. Based on Valley's current CECL model results that it has performed alongside the current ALL process, Valley estimates that the adoption of the new guidance will result in an increase to the allowance for credit losses, including the reserve for off-balance sheet credit exposures (included within other liabilities), of $30 million to $40 million , excluding PCD loans. Valley elected the prospective transition approach for PCD loans that were previously classified as purchased-credit impaired (PCI) loans. Under this guidance, Valley is not required to reassess whether PCI loans met the PCD loans criteria as of the date of the date of adoption. For PCD loans, the allowance for credit losses recorded is recognized through a gross-up that increases the amortized cost basis of loans with a corresponding allowance for credit losses, and therefore results in no expected impact to the cumulative effect adjustment to retained earnings. The anticipated increase to the allowance for credit losses related to PCD loans is $60 million to $65 million . The remaining non-credit discount will be accreted into interest income over the life of the loans at the effective interest rate effective January 1, 2020. For other assets within the scope of the new CECL accounting guidance, such as debt securities held-to-maturity, trade and other receivables, management expects the impact from the adoption to be inconsequential. Valley is reviewing the performance of its most recent model run, including certain qualitative adjustments and certain assumptions related to the reserve for off-balance sheet credit exposures . As Valley finalizes the implementation of the new guidance in the first quarter of 2020, final decisions by management will result in the specific January 1, 2020 allowance for credit losses impact being established and the related impact to the financial statements and disclosures. Valley does not expect the adoption of the new CECL accounting guidance to have a significant impact on Valley’s regulatory capital ratios. ASU No. 2019-11, "Codification Improvements to Topic 326, Financial Instruments—Credit Losses" amends or clarifies the guidance in ASC 326 on credit losses. ASU No. 2019-11: (i) permits entities to record a negative allowance when measuring the expected credit losses for a PCD financial asset, not to exceed the total amount of the amortized cost basis previously written off and expected to be written off, (ii) provides transition relief for troubled debt restructurings, (iii) provides disclosure relief for accrued interest receivable and (iv) offers a practical expedient for financial assets secured by collateral maintenance provisions (e.g., the borrower is contractually required to adjust the amount of the collateral securing the financial asset). Valley adopted ASU No. 2019-11 on January 1, 2020. The adoption of this ASU is not expected to have a significant impact on the presentation of Valley's consolidated financial statements. ASU No. 2019-04, "Codification Improvements to Topic 326, Financial Instruments-Credit Losses, Topic 815, Derivatives and Hedging, and Topic 825, Financial Instruments" clarifies and improves areas of guidance related to the recently issued standards on credit losses, hedging, and recognition and measurement. The most significant provisions of the ASU relate to how companies will estimate expected credit losses under Topic 326 by incorporating (1) expected recoveries of financial assets, including recoveries of amounts expected to be written off and those previously written off, and (2) clarifying that contractual extensions or renewal options that are not unconditionally cancellable by the lender are considered when determining the contractual term over which expected credit losses are measured. Valley adopted ASU No. 2019-04 on January 1, 2020. See more details regarding our adoption of Topic 326 and ASU No. 2016-13 above. |
Summary of Significant Accoun_3
Summary of Significant Accounting Policies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Accounting Policies [Abstract] | |
Calculation of Basic and Diluted Earnings Per Common Share | The following table shows the calculation of both basic and diluted earnings per common share for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands, except for share data) Net income available to common shareholders $ 297,105 $ 248,740 $ 152,458 Basic weighted-average number of common shares outstanding 337,792,270 331,258,964 264,038,123 Plus: Common stock equivalents 2,325,538 1,434,754 850,884 Diluted weighted-average number of common shares outstanding 340,117,808 332,693,718 264,889,007 Earnings per common share: Basic $ 0.88 $ 0.75 $ 0.58 Diluted 0.87 0.75 0.58 |
Business Combinations (Tables)
Business Combinations (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Business Combinations [Abstract] | |
Assets Acquired and Liabilities Assumed in Acquisition | The following table sets forth assets acquired, and liabilities assumed in the Oritani acquisition, at their estimated fair values as of the closing date of the transaction: December 1, 2019 (in thousands) Assets acquired: Cash and cash equivalents $ 22,239 Equity securities 51,382 Investment securities available for sale 335,894 Investment securities held to maturity 4,877 Loans 3,380,841 Premises and equipment 23,585 Bank owned life insurance 101,896 Accrued interest receivable 11,781 Goodwill 288,960 Other intangible assets 20,690 Other assets: Deferred tax assets 24,707 FHLB and FRB stock 23,479 Other assets 1,988 Total other assets 50,174 Total assets acquired $ 4,292,319 Liabilities assumed: Deposits: Non-interest bearing $ 142,630 Savings, NOW and money market 1,596,690 Time 1,185,396 Total deposits 2,924,716 Short-term borrowings 10,500 Long-term borrowings 430,130 Accrued expense and other liabilities 91,718 Total liabilities assumed $ 3,457,064 Common stock issued in acquisition $ 835,255 |
Business Acquisition, Pro Forma Information | Had the acquisition of USAB taken place on January 1, 2017 Valley’s revenues (defined as the sum of net interest income and non-interest income), net income, basic earnings per share, and diluted earnings per share would have equaled the amounts indicated in the following table for the year ended December 31, 2017 : December 31, 2017 (in thousands, except per share data) Unaudited Revenues $ 931,255 Net income 196,921 Basic earnings per share 0.57 Diluted earnings per share 0.57 Had the acquisition of Oritani taken place on the beginning of the annual periods presented, Valley’s revenues (defined as the sum of net interest income and non-interest income), net income, basic earnings per share, and diluted earnings per share would have equaled the amounts indicated in the following table for the years ended December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands, except per share data) Unaudited Revenues $ 1,219,887 $ 1,106,012 Net income 361,079 313,977 Basic earnings per share 0.86 0.75 Diluted earnings per share 0.85 0.75 |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Fair Value Disclosures [Abstract] | |
Assets and Liabilities Measured at Fair Value on Recurring and Non-Recurring Basis | The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at December 31, 2019 and 2018 . The assets presented under “non-recurring fair value measurements” in the table below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Equity securities $ 41,410 $ 41,410 $ — $ — Available for sale debt securities: U.S. Treasury securities 50,943 50,943 — — U.S. government agency securities 29,243 — 29,243 — Obligations of states and political subdivisions 170,051 — 170,051 — Residential mortgage-backed securities 1,254,786 — 1,254,786 — Corporate and other debt securities 61,778 — 61,098 680 Total available for sale debt securities 1,566,801 50,943 1,515,178 680 Loans held for sale (1) 76,113 — 76,113 — Other assets (2) 158,532 — 158,532 — Total assets $ 1,842,856 $ 92,353 $ 1,749,823 $ 680 Liabilities Other liabilities (2) $ 43,926 $ — $ 43,926 $ — Total liabilities $ 43,926 $ — $ 43,926 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 39,075 $ — $ — $ 39,075 Loan servicing rights 1,591 — — 1,591 Foreclosed assets 10,807 — — 10,807 Total $ 51,473 $ — $ — $ 51,473 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices in Active Markets for Identical Assets (Level 1) Significant Other Observable Inputs (Level 2) Significant Unobservable Inputs (Level 3) (in thousands) Recurring fair value measurements: Assets Investment securities: Available for sale: U.S. Treasury securities $ 49,306 $ 49,306 $ — $ — U.S. government agency securities 36,277 — 36,277 — Obligations of states and political subdivisions 197,092 — 197,092 — Residential mortgage-backed securities 1,429,782 — 1,429,782 — Corporate and other debt securities 37,087 — 37,087 — Total available for sale 1,749,544 49,306 1,700,238 — Loans held for sale (1) 35,155 — 35,155 — Other assets (2) 48,979 — 48,979 — Total assets $ 1,833,678 $ 49,306 $ 1,784,372 $ — Liabilities Other liabilities (2) $ 23,681 $ — $ 23,681 $ — Total liabilities $ 23,681 $ — $ 23,681 $ — Non-recurring fair value measurements: Collateral dependent impaired loans (3) $ 45,245 $ — $ — $ 45,245 Loan servicing rights 273 — — 273 Foreclosed assets 5,673 — — 5,673 Total $ 51,191 $ — $ — $ 51,191 (1) Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $74.5 million and $34.6 million at December 31, 2019 and 2018 , respectively. (2) Derivative financial instruments are included in this category. (3) Excludes PCI loans. |
Carrying Amounts and Estimated Fair Values of Financial Instruments | The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at December 31, 2019 and 2018 were as follows: December 31, 2019 2018 Fair Value Hierarchy Carrying Amount Fair Value Carrying Amount Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 256,264 $ 256,264 $ 251,541 $ 251,541 Interest bearing deposits with banks Level 1 178,423 178,423 177,088 177,088 Held to maturity debt securities: U.S. Treasury securities Level 1 138,352 144,113 138,517 142,049 U.S. government agency securities Level 2 7,345 7,362 8,721 8,641 Obligations of states and political subdivisions Level 2 500,705 513,607 585,656 586,033 Residential mortgage-backed securities Level 2 1,620,119 1,629,572 1,266,770 1,235,605 Trust preferred securities Level 2 37,324 31,382 37,332 31,486 Corporate and other debt securities Level 2 32,250 32,684 31,250 31,129 Total investment securities held to maturity 2,336,095 2,358,720 2,068,246 2,034,943 Net loans Level 3 29,537,449 28,964,396 24,883,610 24,068,755 Accrued interest receivable Level 1 105,637 105,637 95,296 95,296 Federal Reserve Bank and Federal Home Loan Bank stock (1) Level 1 214,421 214,421 232,080 232,080 Financial liabilities Deposits without stated maturities Level 1 19,467,892 19,467,892 17,388,990 17,388,990 Deposits with stated maturities Level 2 9,717,945 9,747,867 7,063,984 7,005,573 Short-term borrowings Level 1 1,093,280 1,081,879 2,118,914 2,091,892 Long-term borrowings Level 2 2,122,426 2,181,401 1,654,268 1,751,194 Junior subordinated debentures issued to capital trusts Level 2 55,718 53,889 55,370 55,692 Accrued interest payable (2) Level 1 33,066 33,066 25,762 25,762 (1) Included in other assets. (2) Included in accrued expenses and other liabilities. |
Investment Securities (Tables)
Investment Securities (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Investments, Debt and Equity Securities [Abstract] | |
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities Available for Sale | The amortized cost, gross unrealized gains and losses and fair value of investment securities available for sale at December 31, 2019 and 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2019 U.S. Treasury securities $ 50,952 $ 12 $ (21 ) $ 50,943 U.S. government agency securities 28,982 280 (19 ) 29,243 Obligations of states and political subdivisions: Obligations of states and state agencies 78,116 540 (83 ) 78,573 Municipal bonds 90,662 902 (86 ) 91,478 Total obligations of states and political subdivisions 168,778 1,442 (169 ) 170,051 Residential mortgage-backed securities 1,248,814 11,234 (5,262 ) 1,254,786 Corporate and other debt securities 61,261 628 (111 ) 61,778 Total investment securities available for sale $ 1,558,787 $ 13,596 $ (5,582 ) $ 1,566,801 December 31, 2018 U.S. Treasury securities $ 50,975 $ — $ (1,669 ) $ 49,306 U.S. government agency securities 36,844 71 (638 ) 36,277 Obligations of states and political subdivisions: Obligations of states and state agencies 100,777 18 (3,682 ) 97,113 Municipal bonds 101,207 209 (1,437 ) 99,979 Total obligations of states and political subdivisions 201,984 227 (5,119 ) 197,092 Residential mortgage-backed securities 1,469,059 1,484 (40,761 ) 1,429,782 Corporate and other debt securities 37,542 213 (668 ) 37,087 Total investment securities available for sale $ 1,796,404 $ 1,995 $ (48,855 ) $ 1,749,544 |
Age of Unrealized Losses and Fair Value of Related Securities | The age of unrealized losses and fair value of related securities available for sale at December 31, 2019 and 2018 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) December 31, 2019 U.S. Treasury securities $ 25,019 $ (21 ) $ — $ — $ 25,019 $ (21 ) U.S. government agency securities — — 1,783 (19 ) 1,783 (19 ) Obligations of states and political subdivisions: Obligations of states and state agencies 18,540 (21 ) 8,755 (62 ) 27,295 (83 ) Municipal bonds — — 13,177 (86 ) 13,177 (86 ) Total obligations of states and political subdivisions 18,540 (21 ) 21,932 (148 ) 40,472 (169 ) Residential mortgage-backed securities 240,412 (1,194 ) 282,798 (4,068 ) 523,210 (5,262 ) Corporate and other debt securities 5,139 (111 ) — — 5,139 (111 ) Total $ 289,110 $ (1,347 ) $ 306,513 $ (4,235 ) $ 595,623 $ (5,582 ) December 31, 2018 U.S. Treasury securities $ — $ — $ 49,306 $ (1,669 ) $ 49,306 $ (1,669 ) U.S. government agency securities 2,120 (20 ) 26,775 (618 ) 28,895 (638 ) Obligations of states and political subdivisions: Obligations of states and state agencies 17,560 (95 ) 75,718 (3,587 ) 93,278 (3,682 ) Municipal bonds 5,018 (106 ) 70,286 (1,331 ) 75,304 (1,437 ) Total obligations of states and political subdivisions 22,578 (201 ) 146,004 (4,918 ) 168,582 (5,119 ) Residential mortgage-backed securities 119,645 (668 ) 1,221,942 (40,093 ) 1,341,587 (40,761 ) Corporate and other debt securities 12,339 (161 ) 12,397 (507 ) 24,736 (668 ) Total $ 156,682 $ (1,050 ) $ 1,456,424 $ (47,805 ) $ 1,613,106 $ (48,855 ) |
Contractual Maturities of Investments Securities Available for Sale | The contractual maturities of investment debt securities available for sale at December 31, 2019 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. December 31, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 19,554 $ 19,611 Due after one year through five years 110,337 110,801 Due after five years through ten years 90,297 91,232 Due after ten years 89,785 90,371 Residential mortgage-backed securities 1,248,814 1,254,786 Total investment securities available for sale $ 1,558,787 $ 1,566,801 |
Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities Held to Maturity | The amortized cost, gross unrealized gains and losses and fair value of investment debt securities held to maturity at December 31, 2019 and 2018 were as follows: Amortized Cost Gross Unrealized Gains Gross Unrealized Losses Fair Value (in thousands) December 31, 2019 U.S. Treasury securities $ 138,352 $ 5,761 $ — $ 144,113 U.S. government agency securities 7,345 58 (41 ) 7,362 Obligations of states and political subdivisions: Obligations of states and state agencies 297,454 7,745 (529 ) 304,670 Municipal bonds 203,251 5,696 (10 ) 208,937 Total obligations of states and political subdivisions 500,705 13,441 (539 ) 513,607 Residential mortgage-backed securities 1,620,119 14,803 (5,350 ) 1,629,572 Trust preferred securities 37,324 39 (5,981 ) 31,382 Corporate and other debt securities 32,250 454 (20 ) 32,684 Total investment securities held to maturity $ 2,336,095 $ 34,556 $ (11,931 ) $ 2,358,720 December 31, 2018 U.S. Treasury securities $ 138,517 $ 3,532 $ — $ 142,049 U.S. government agency securities 8,721 55 (135 ) 8,641 Obligations of states and political subdivisions: Obligations of states and state agencies 341,702 4,332 (5,735 ) 340,299 Municipal bonds 243,954 3,141 (1,361 ) 245,734 Total obligations of states and political subdivisions 585,656 7,473 (7,096 ) 586,033 Residential mortgage-backed securities 1,266,770 3,203 (34,368 ) 1,235,605 Trust preferred securities 37,332 77 (5,923 ) 31,486 Corporate and other debt securities 31,250 96 (217 ) 31,129 Total investment securities held to maturity $ 2,068,246 $ 14,436 $ (47,739 ) $ 2,034,943 |
Age of Unrealized Losses and Fair Value of Related Securities Held to Maturity | The age of unrealized losses and fair value of related securities held to maturity at December 31, 2019 and 2018 were as follows: Less than Twelve Months More than Twelve Months Total Fair Value Unrealized Losses Fair Value Unrealized Losses Fair Value Unrealized Losses (in thousands) December 31, 2019 U.S. government agency securities $ 5,183 $ (41 ) $ — $ — $ 5,183 $ (41 ) Obligations of states and political subdivisions: Obligations of states and state agencies 11,178 (55 ) 32,397 (474 ) 43,575 (529 ) Municipal bonds — — 798 (10 ) 798 (10 ) Total obligations of states and political subdivisions 11,178 (55 ) 33,195 (484 ) 44,373 (539 ) Residential mortgage-backed securities 307,885 (1,387 ) 254,915 (3,963 ) 562,800 (5,350 ) Trust preferred securities — — 29,990 (5,981 ) 29,990 (5,981 ) Corporate and other debt securities — — 4,980 (20 ) 4,980 (20 ) Total $ 324,246 $ (1,483 ) $ 323,080 $ (10,448 ) $ 647,326 $ (11,931 ) December 31, 2018 U.S. government agency securities — — 6,074 (135 ) 6,074 (135 ) Obligations of states and political subdivisions: Obligations of states and state agencies $ 16,098 $ (266 ) $ 138,437 $ (5,469 ) $ 154,535 $ (5,735 ) Municipal bonds 3,335 (37 ) 60,078 (1,324 ) 63,413 (1,361 ) Total obligations of states and political subdivisions 19,433 (303 ) 198,515 (6,793 ) 217,948 (7,096 ) Residential mortgage-backed securities 72,240 (852 ) 846,671 (33,516 ) 918,911 (34,368 ) Trust preferred securities — — 30,055 (5,923 ) 30,055 (5,923 ) Corporate and other debt securities 9,948 (52 ) 4,835 (165 ) 14,783 (217 ) Total $ 101,621 $ (1,207 ) $ 1,086,150 $ (46,532 ) $ 1,187,771 $ (47,739 ) |
Contractual Maturities of Debt Securities Held to Maturity | The contractual maturities of investments in debt securities held to maturity at December 31, 2019 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary. December 31, 2019 Amortized Cost Fair Value (in thousands) Due in one year $ 96,230 $ 97,223 Due after one year through five years 170,615 176,005 Due after five years through ten years 216,437 226,086 Due after ten years 232,694 229,834 Residential mortgage-backed securities 1,620,119 1,629,572 Total investment securities held to maturity $ 2,336,095 $ 2,358,720 |
Realized Gains and Losses | Gross gains and losses realized on sales, maturities and other securities transactions included in earnings for the years ended December 31, 2019 , 2018 and 2017 were as follows: 2019 2018 2017 (in thousands) Sales transactions: Gross gains $ — $ 1,769 $ — Gross losses — (3,881 ) (25 ) $ — $ (2,112 ) $ (25 ) Maturities and other securities transactions: Gross gains $ 67 $ 42 $ 43 Gross losses (217 ) (272 ) (38 ) $ (150 ) $ (230 ) $ 5 Net losses on securities transactions $ (150 ) $ (2,342 ) $ (20 ) |
Loans (Tables)
Loans (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The detail of the loan portfolio as of December 31, 2019 and 2018 was as follows: December 31, 2019 December 31, 2018 Non-PCI Loans PCI Loans Total Non-PCI Loans PCI Loans Total (in thousands) Loans: Commercial and industrial $ 4,143,983 $ 682,014 $ 4,825,997 $ 3,590,375 $ 740,657 $ 4,331,032 Commercial real estate: Commercial real estate 10,902,893 5,093,848 15,996,741 9,912,309 2,494,966 12,407,275 Construction 1,495,717 151,301 1,647,018 1,122,348 365,784 1,488,132 Total commercial real estate loans 12,398,610 5,245,149 17,643,759 11,034,657 2,860,750 13,895,407 Residential mortgage 3,796,942 580,169 4,377,111 3,682,984 428,416 4,111,400 Consumer: Home equity 376,020 111,252 487,272 371,340 145,749 517,089 Automobile 1,451,352 271 1,451,623 1,319,206 365 1,319,571 Other consumer 902,702 10,744 913,446 846,821 14,149 860,970 Total consumer loans 2,730,074 122,267 2,852,341 2,537,367 160,263 2,697,630 Total loans $ 23,069,609 $ 6,629,599 $ 29,699,208 $ 20,845,383 $ 4,190,086 $ 25,035,469 |
Estimates of the Contractually Required Payments, the Cash Flows Expected to be Collected, and the Estimated Fair Value of Covered Loans in the Acquisition | The following table presents information regarding the estimates of the contractually required payments, the cash flows expected to be collected, and the estimated fair value of the PCI loans acquired in the Oritani acquisition as of December 1, 2019 (See Note 2 for more details): December 1, 2019 (in thousands) Contractually required principal and interest $ 4,017,103 Contractual cash flows not expected to be collected (non-accretable difference) (36,084 ) Expected cash flows to be collected 3,981,019 Interest component of expected cash flows (accretable yield) (600,178 ) Fair value of acquired loans $ 3,380,841 |
Changes in Accretable Yield for PCI Loans | The following table presents changes in the accretable yield for PCI loans for the years ended December 31, 2019 and 2018 : 2019 2018 (in thousands) Balance, beginning of period $ 875,958 $ 282,009 Acquisition 600,178 559,907 Accretion (214,415 ) (235,741 ) Net (decrease) increase in expected cash flows (10,995 ) 269,783 Balance, end of period $ 1,250,726 $ 875,958 |
Changes in Amounts of Loans and Advances to the Related Parties | The following table summarizes the changes in the total amounts of loans and advances to the related parties during the year ended December 31, 2019 : 2019 (in thousands) Outstanding at beginning of year $ 214,108 New loans and advances 13,172 Repayments (33,999 ) Outstanding at end of year $ 193,281 |
Past Due, Non-Accrual and Current Loans by Loan Portfolio Class | The following tables present past due, non-accrual and current loans (excluding PCI loans, which are accounted for on a pool basis) by loan portfolio class at December 31, 2019 and 2018 : Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days Or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) December 31, 2019 Commercial and industrial $ 11,700 $ 2,227 $ 3,986 $ 68,636 $ 86,549 $ 4,057,434 $ 4,143,983 Commercial real estate: Commercial real estate 2,560 4,026 579 9,004 16,169 10,886,724 10,902,893 Construction 1,486 1,343 — 356 3,185 1,492,532 1,495,717 Total commercial real estate loans 4,046 5,369 579 9,360 19,354 12,379,256 12,398,610 Residential mortgage 17,143 4,192 2,042 12,858 36,235 3,760,707 3,796,942 Consumer loans: Home equity 1,051 80 — 1,646 2,777 373,243 376,020 Automobile 11,482 1,581 681 334 14,078 1,437,274 1,451,352 Other consumer 1,171 866 30 224 2,291 900,411 902,702 Total consumer loans 13,704 2,527 711 2,204 19,146 2,710,928 2,730,074 Total $ 46,593 $ 14,315 $ 7,318 $ 93,058 $ 161,284 $ 22,908,325 $ 23,069,609 Past Due and Non-Accrual Loans 30-59 Days Past Due Loans 60-89 Days Past Due Loans Accruing Loans 90 Days Or More Past Due Non-Accrual Loans Total Past Due Loans Current Non-PCI Loans Total Non-PCI Loans (in thousands) December 31, 2018 Commercial and industrial $ 13,085 $ 3,768 $ 6,156 $ 70,096 $ 93,105 $ 3,497,270 $ 3,590,375 Commercial real estate: Commercial real estate 9,521 530 27 2,372 12,450 9,899,859 9,912,309 Construction 2,829 — — 356 3,185 1,119,163 1,122,348 Total commercial real estate loans 12,350 530 27 2,728 15,635 11,019,022 11,034,657 Residential mortgage 16,576 2,458 1,288 12,917 33,239 3,649,745 3,682,984 Consumer loans: Home equity 872 40 — 2,156 3,068 368,272 371,340 Automobile 7,973 1,299 308 80 9,660 1,309,546 1,319,206 Other consumer 895 47 33 419 1,394 845,427 846,821 Total consumer loans 9,740 1,386 341 2,655 14,122 2,523,245 2,537,367 Total $ 51,751 $ 8,142 $ 7,812 $ 88,396 $ 156,101 $ 20,689,282 $ 20,845,383 |
Impaired Loans by Loan Portfolio Class | The following table presents information about impaired loans by loan portfolio class at December 31, 2019 and 2018 : Recorded Investment With No Related Allowance Recorded Investment With Related Allowance Total Recorded Investment Unpaid Contractual Principal Balance Related Allowance (in thousands) December 31, 2019 Commercial and industrial $ 14,617 $ 86,243 $ 100,860 $ 114,875 $ 36,662 Commercial real estate: Commercial real estate 26,046 24,842 50,888 51,258 1,338 Construction 354 — 354 354 — Total commercial real estate loans 26,400 24,842 51,242 51,612 1,338 Residential mortgage 5,836 4,853 10,689 11,800 518 Consumer loans: Home equity 366 487 853 956 58 Total consumer loans 366 487 853 956 58 Total $ 47,219 $ 116,425 $ 163,644 $ 179,243 $ 38,576 December 31, 2018 Commercial and industrial $ 8,339 $ 89,513 $ 97,852 $ 104,007 $ 29,684 Commercial real estate: Commercial real estate 16,732 25,606 42,338 44,337 2,615 Construction 803 457 1,260 1,260 13 Total commercial real estate loans 17,535 26,063 43,598 45,597 2,628 Residential mortgage 7,826 6,078 13,904 14,948 600 Consumer loans: Home equity 125 1,146 1,271 1,366 113 Total consumer loans 125 1,146 1,271 1,366 113 Total $ 33,825 $ 122,800 $ 156,625 $ 165,918 $ 33,025 |
Average Recorded Investment and Interest Income Recognized on Impaired Loans | The following table presents, by loan portfolio class, the average recorded investment and interest income recognized on impaired loans for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized Average Recorded Investment Interest Income Recognized (in thousands) Commercial and industrial $ 120,376 $ 1,849 $ 108,071 $ 1,822 $ 80,974 $ 1,459 Commercial real estate: Commercial real estate 52,191 2,246 44,838 2,289 54,799 1,908 Construction 354 — 1,517 69 3,258 86 Total commercial real estate loans 52,545 2,246 46,355 2,358 58,057 1,994 Residential mortgage 12,081 390 15,384 506 15,451 760 Consumer loans: Home equity 576 11 865 21 4,295 160 Total consumer loans 576 11 865 21 4,295 160 Total $ 185,578 $ 4,496 $ 170,675 $ 4,707 $ 158,777 $ 4,373 |
Non-PCI Loans by Loan Class Modified as TDRs | The following table presents non-PCI loans by loan class modified as TDRs during the years ended December 31, 2019 and 2018 . The pre-modification and post-modification outstanding recorded investments disclosed in the table below represent the loan carrying amounts immediately prior to the modification and the carrying amounts at December 31, 2019 and 2018 , respectively. Troubled Debt Restructurings Number of Contracts Pre-Modification Outstanding Recorded Investment Post-Modification Outstanding Recorded Investment ($ in thousands) December 31, 2019 Commercial and industrial 111 $ 77,781 $ 73,503 Commercial real estate: Commercial real estate 2 3,143 3,098 Total commercial real estate 2 3,143 3,098 Residential mortgage 2 376 374 Consumer 2 215 207 Total 117 $ 81,515 $ 77,182 December 31, 2018 Commercial and industrial 25 $ 16,251 $ 15,105 Commercial real estate: Commercial real estate 8 5,643 6,600 Construction 1 532 356 Total commercial real estate 9 6,175 6,956 Residential mortgage 8 1,500 1,461 Consumer 2 99 101 Total 44 $ 24,025 $ 23,623 The non-PCI loans modified as TDRs within the previous 12 months and for which there was a payment default ( 90 or more days past due) for the years ended December 31, 2019 and 2018 were as follows: Years Ended December 31, 2019 2018 Troubled Debt Restructurings Subsequently Defaulted Number of Contracts Recorded Investment Number of Contracts Recorded Investment ($ in thousands) Commercial and industrial 43 $ 31,782 10 $ 8,829 Residential mortgage 1 154 3 490 Total 44 $ 31,936 13 $ 9,319 |
Risk Category of Loans by Class of Loans | The following table presents the credit exposure by internally assigned risk rating by class of loans (excluding PCI loans) based on the most recent analysis performed at December 31, 2019 and 2018 . Credit exposure— by internally assigned risk rating Special Total Non-PCI Pass Mention Substandard Doubtful Loans (in thousands) December 31, 2019 Commercial and industrial $ 3,982,453 $ 33,718 $ 66,511 $ 61,301 $ 4,143,983 Commercial real estate 10,781,587 77,884 42,560 862 10,902,893 Construction 1,487,877 7,486 354 — 1,495,717 Total $ 16,251,917 $ 119,088 $ 109,425 $ 62,163 $ 16,542,593 December 31, 2018 Commercial and industrial $ 3,399,426 $ 31,996 $ 92,320 $ 66,633 $ 3,590,375 Commercial real estate 9,828,744 30,892 51,710 963 9,912,309 Construction 1,121,321 215 812 — 1,122,348 Total $ 14,349,491 $ 63,103 $ 144,842 $ 67,596 $ 14,625,032 |
Recorded Investment in Loan Classes Based on Payment Activity | The following table presents the recorded investment in PCI loans by class based on individual loan payment activity as of December 31, 2019 and 2018 : Credit exposure— Performing Non-Performing Total by payment activity Loans Loans PCI Loans (in thousands) December 31, 2019 Commercial and industrial $ 653,997 $ 28,017 $ 682,014 Commercial real estate 5,065,388 28,460 5,093,848 Construction 148,692 2,609 151,301 Residential mortgage 571,006 9,163 580,169 Consumer 120,356 1,911 122,267 Total $ 6,559,439 $ 70,160 $ 6,629,599 December 31, 2018 Commercial and industrial $ 710,045 $ 30,612 $ 740,657 Commercial real estate 2,478,990 15,976 2,494,966 Construction 364,815 969 365,784 Residential mortgage 421,609 6,807 428,416 Consumer 158,502 1,761 160,263 Total $ 4,133,961 $ 56,125 $ 4,190,086 December 31, 2019 and 2018 : Credit exposure— by payment activity Performing Loans Non-Performing Loans Total Non-PCI Loans (in thousands) December 31, 2019 Residential mortgage $ 3,784,084 $ 12,858 $ 3,796,942 Home equity 374,374 1,646 376,020 Automobile 1,451,018 334 1,451,352 Other consumer 902,478 224 902,702 Total $ 6,511,954 $ 15,062 $ 6,527,016 December 31, 2018 Residential mortgage $ 3,670,067 $ 12,917 $ 3,682,984 Home equity 369,184 2,156 371,340 Automobile 1,319,126 80 1,319,206 Other consumer 846,402 419 846,821 Total $ 6,204,779 $ 15,572 $ 6,220,351 |
Allowance for Credit Losses (Ta
Allowance for Credit Losses (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Receivables [Abstract] | |
Summary of Allowance for Credit Losses | The following table summarizes the allowance for credit losses at December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands) Components of allowance for credit losses: Allowance for loan losses $ 161,759 $ 151,859 Allowance for unfunded letters of credit 2,845 4,436 Total allowance for credit losses $ 164,604 $ 156,295 |
Summary of Provision for Credit Losses | The following table summarizes the provision for credit losses for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Components of provision for credit losses: Provision for loan losses $ 25,809 $ 31,661 $ 8,531 Provision for unfunded letters of credit (1,591 ) 840 1,411 Total provision for credit losses $ 24,218 $ 32,501 $ 9,942 |
Summary of Activity in Allowance for Loan Losses | The following table details the activity in the allowance for loan losses by portfolio segment for the years ended December 31, 2019 and 2018 : Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) December 31, 2019 Allowance for loan losses: Beginning balance $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans charged-off (13,260 ) (158 ) (126 ) (8,671 ) (22,215 ) Charged-off loans recovered 2,397 1,237 66 2,606 6,306 Net (charge-offs) recoveries (10,863 ) 1,079 (60 ) (6,065 ) (15,909 ) Provision for loan losses 23,966 (5,056 ) 79 6,820 25,809 Ending balance $ 104,059 $ 45,673 $ 5,060 $ 6,967 $ 161,759 December 31, 2018 Allowance for loan losses: Beginning balance $ 57,232 $ 54,954 $ 3,605 $ 5,065 $ 120,856 Loans charged-off (2,515 ) (348 ) (223 ) (4,977 ) (8,063 ) Charged-off loans recovered 4,623 417 272 2,093 7,405 Net recoveries (charge-offs) 2,108 69 49 (2,884 ) (658 ) Provision for loan losses 31,616 (5,373 ) 1,387 4,031 31,661 Ending balance $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 |
Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Impairment Methodology | The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the impairment methodology for the years ended December 31, 2019 and 2018 . Loans individually evaluated for impairment represent Valley’s impaired loans. Loans acquired with discounts related to credit quality represent Valley’s PCI loans. Commercial and Industrial Commercial Real Estate Residential Mortgage Consumer Total (in thousands) December 31, 2019 Allowance for loan losses: Individually evaluated for impairment $ 36,662 $ 1,338 $ 518 $ 58 $ 38,576 Collectively evaluated for impairment 67,397 44,335 4,542 6,909 123,183 Total $ 104,059 $ 45,673 $ 5,060 $ 6,967 $ 161,759 Loans: Individually evaluated for impairment $ 100,860 $ 51,242 $ 10,689 $ 853 $ 163,644 Collectively evaluated for impairment 4,043,123 12,347,368 3,786,253 2,729,221 22,905,965 Loans acquired with discounts related to credit quality 682,014 5,245,149 580,169 122,267 6,629,599 Total $ 4,825,997 $ 17,643,759 $ 4,377,111 $ 2,852,341 $ 29,699,208 December 31, 2018 Allowance for loan losses: Individually evaluated for impairment $ 29,684 $ 2,628 $ 600 $ 113 $ 33,025 Collectively evaluated for impairment 61,272 47,022 4,441 6,099 118,834 Total $ 90,956 $ 49,650 $ 5,041 $ 6,212 $ 151,859 Loans: Individually evaluated for impairment $ 97,852 $ 43,598 $ 13,904 $ 1,271 $ 156,625 Collectively evaluated for impairment 3,492,523 10,991,059 3,669,080 2,536,096 20,688,758 Loans acquired with discounts related to credit quality 740,657 2,860,750 428,416 160,263 4,190,086 Total $ 4,331,032 $ 13,895,407 $ 4,111,400 $ 2,697,630 $ 25,035,469 |
Leases (Tables)
Leases (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Leases [Abstract] | |
ROU Assets and Lease Liabilities By Lease Type | The following table presents the components of the right of use (ROU) assets and lease liabilities in the consolidated statements of position by lease type at December 31, 2019 . 2019 (in thousands) ROU assets: Operating leases $ 284,255 Finance leases 874 Total $ 285,129 Lease liabilities: Operating leases $ 308,060 Finance leases 1,789 Total $ 309,849 |
Components of Lease, Supplemental Cash Flow and Supplemental Information | The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the year ended December 31, 2019 : 2019 (in thousands) Finance lease cost: Amortization of ROU assets $ 291 Interest on lease liabilities 191 Operating lease cost 34,175 Short-term lease cost 410 Variable lease cost 3,573 Sublease income (3,422 ) Total lease cost (included in net occupancy and equipment expense) $ 35,218 The following table presents supplemental cash flow information related to leases for the year ended December 31, 2019 : 2019 (in thousands) Cash paid for amounts included in the measurement of lease liabilities: Operating cash flows from operating leases $ 34,380 Operating cash flows from finance leases 192 Financing cash flows from finance leases 492 The following table presents supplemental information related to leases at December 31, 2019 : 2019 Weighted-average remaining lease term Operating leases 12.8 years Finance leases 3.00 years Weighted-average discount rate Operating leases 3.68 % Finance leases 8.25 % |
Sales-type Leases | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 |
Direct Financing Leases | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 |
Finance Leases Maturity | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 |
Operating Lease Maturity | The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2019 : Lessor Lessee Direct Financing and Sales-Type Leases Operating Leases Finance Leases (in thousands) 2020 $ 146,397 $ 36,022 $ 684 2021 126,196 35,393 684 2022 102,873 33,918 684 2023 77,953 30,745 — 2024 44,651 29,142 — Thereafter 25,103 228,644 — Total lease payments 523,173 393,864 2,052 Less: present value discount (44,345 ) (85,804 ) (263 ) Total $ 478,828 $ 308,060 $ 1,789 |
Minimum Aggregate Lease Payments In Accordance With Topic 840 | The following table presents minimum aggregate lease payments in accordance with ASC Topic 840 at December 31, 2018 : Gross Rents Sublease Income Net Rents (in thousands) 2019 $ 29,093 $ 2,382 $ 26,711 2020 29,379 2,290 27,089 2021 28,925 2,160 26,765 2022 27,562 2,002 25,560 2023 25,064 1,938 23,126 Thereafter 262,200 8,558 253,642 Total lease payments $ 402,223 $ 19,330 $ 382,893 |
Premises and Equipment, Net (Ta
Premises and Equipment, Net (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Property, Plant and Equipment [Abstract] | |
Components of Premises and Equipment, Net | At December 31, 2019 and 2018 , premises and equipment, net consisted of: 2019 2018 (in thousands) Land $ 93,594 $ 93,600 Buildings 220,140 250,510 Leasehold improvements 85,042 77,425 Furniture and equipment 274,715 263,604 Total premises and equipment 673,491 685,139 Accumulated depreciation and amortization (338,958 ) (343,509 ) Total premises and equipment, net $ 334,533 $ 341,630 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Carrying Amount of Goodwill | The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were: Business Segment / Reporting Unit* Wealth Management Consumer Lending Commercial Lending Investment Management Total (in thousands) Balance at December 31, 2017 $ 21,218 $ 200,103 $ 316,258 $ 153,058 $ 690,637 Goodwill from business combinations — 86,922 241,592 65,514 394,028 Balance at December 31, 2018 $ 21,218 $ 287,025 $ 557,850 $ 218,572 $ 1,084,665 Goodwill from business combinations — 19,547 267,917 1,496 288,960 Balance at December 31, 2019 $ 21,218 $ 306,572 $ 825,767 $ 220,068 $ 1,373,625 * Valley’s Wealth Management Division is comprised of trust, asset management and insurance services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes. |
Other Intangible Assets | The following tables summarize other intangible assets as of December 31, 2019 and 2018 : Gross Intangible Assets Accumulated Amortization Valuation Allowance Net Intangible Assets (in thousands) December 31, 2019 Loan servicing rights $ 94,827 $ (70,095 ) $ (47 ) $ 24,685 Core deposits 101,160 (40,384 ) — 60,776 Other 3,945 (2,634 ) — 1,311 Total other intangible assets $ 199,932 $ (113,113 ) $ (47 ) $ 86,772 December 31, 2018 Loan servicing rights $ 87,354 $ (63,161 ) $ (83 ) $ 24,110 Core deposits 80,470 (29,136 ) — 51,334 Other 3,945 (2,399 ) — 1,546 Total other intangible assets $ 171,769 $ (94,696 ) $ (83 ) $ 76,990 |
Schedule of Change in Loan Servicing Rights | The following table summarizes the change in loan servicing rights during the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Loan servicing rights: Balance at beginning of year $ 24,193 $ 22,084 $ 20,368 Origination of loan servicing rights 7,473 8,216 7,039 Amortization expense (6,934 ) (6,107 ) (5,323 ) Balance at end of year $ 24,732 $ 24,193 $ 22,084 Valuation allowance: Balance at beginning of year $ (83 ) $ (471 ) $ (900 ) Impairment adjustment 36 388 429 Balance at end of year $ (47 ) $ (83 ) $ (471 ) Balance at end of year, net of valuation allowance $ 24,685 $ 24,110 $ 21,613 |
Estimated Future Amortization Expense | The following table presents the estimated amortization expense of other intangible assets over the next five-year period: Year Loan Servicing Rights Core Deposits Other (in thousands) 2020 $ 4,263 $ 13,363 $ 220 2021 3,532 11,607 206 2022 2,929 9,876 191 2023 2,429 8,146 131 2024 2,016 6,537 117 |
Deposits (Tables)
Deposits (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Scheduled Maturities of Time Deposits | The scheduled maturities of time deposits as of December 31, 2019 are as follows: Year Amount (in thousands) 2020 $ 8,507,854 2021 657,366 2022 343,224 2023 134,800 2024 56,775 Thereafter 17,926 Total time deposits $ 9,717,945 |
Borrowed Funds (Tables)
Borrowed Funds (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Short-Term Borrowings | Short-term borrowings at December 31, 2019 and 2018 consisted of the following: 2019 2018 (in thousands) FHLB advances $ 940,000 $ 1,732,000 Securities sold under agreements to repurchase 153,280 261,914 Federal funds purchased — 125,000 Total short-term borrowings $ 1,093,280 $ 2,118,914 |
Schedule of Long-Term Borrowings | Long-term borrowings at December 31, 2019 and 2018 consisted of the following: 2019 2018 (in thousands) FHLB advances, net (1) $ 1,480,012 $ 1,309,666 Securities sold under agreements to repurchase 350,000 50,000 Subordinated debt, net (2) 292,414 294,602 Total long-term borrowings $ 2,122,426 $ 1,654,268 (1) FHLB advances are presented net of unamortized prepayment penalties and other purchase accounting adjustments totaling $2.8 million and $10.3 million at December 31, 2019 and 2018, respectively. (2) Subordinated debt is presented net of unamortized debt issuance costs totaling $1.2 million and $1.4 million at December 31, 2019 and 2018, respectively. |
Schedule of FHLB Repayment | The long-term FHLB advances at December 31, 2019 are scheduled for contractual balance repayments as follows: Year Amount (in thousands) 2020 $ 83,418 2021 994,768 2022 121,419 2023 78,164 2024 200,000 Thereafter 5,000 Total long-term FHLB advances $ 1,482,769 |
Schedule of Repayment of Long-Term Borrowings for Securities Sold Under Agreements to Repurchase | The long-term repos at December 31, 2019 are scheduled for contractual balance repayments as follows: Year Amount (in thousands) 2021 $ 300,000 2022 50,000 Total long-term securities sold under agreements to repurchase $ 350,000 |
Junior Subordinated Debenture_2
Junior Subordinated Debentures Issued to Capital Trusts (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Schedule of Outstanding Junior Subordinated Debentures and Related Trust Preferred Securities Issued by Each Trust | The table below summarizes the outstanding junior subordinated debentures and the related trust preferred securities issued by each trust as of December 31, 2019 and 2018 : GCB Capital Trust III State Bancorp Capital Trust I State Bancorp Capital Trust II Aliant Statutory Trust II ($ in thousands) Junior Subordinated Debentures: December 31, 2019 Carrying value (1) $ 24,743 $ 9,025 $ 8,468 $ 13,482 Contractual principal balance 24,743 10,310 10,310 15,464 December 31, 2018 Carrying value (1) $ 24,743 $ 8,924 $ 8,337 $ 13,366 Contractual principal balance 24,743 10,310 10,310 15,464 Annual interest rate 3-mo. LIBOR+1.4% 3-mo. LIBOR+3.45% 3-mo. LIBOR+2.85% 3-mo. LIBOR+1.8% Stated maturity date July 30, 2037 November 7, 2032 January 23, 2034 December 15, 2036 Initial call date July 30, 2017 November 7, 2007 January 23, 2009 December 15, 2011 Trust Preferred Securities: December 31, 2019 and 2018 Face value $ 24,000 $ 10,000 $ 10,000 $ 15,000 Annual distribution rate 3-mo. LIBOR+1.4% 3-mo. LIBOR+3.45% 3-mo. LIBOR+2.85% 3-mo. LIBOR+1.8% Issuance date July 2, 2007 October 29, 2002 December 19, 2003 December 14, 2006 Distribution dates (2) Quarterly Quarterly Quarterly Quarterly (1) The carrying values include unamortized purchase accounting adjustments at December 31, 2019 and 2018 . (2) All cash distributions are cumulative. |
Benefit Plans (Tables)
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 |
Income Taxes (Tables)
Income Taxes (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Summary of Income Tax Expense | Income tax expense for the years ended December 31, 2019 , 2018 and 2017 consisted of the following: 2019 2018 2017 (in thousands) Current expense: Federal $ 95,317 $ 51,147 $ 8,483 State 36,457 28,898 5,500 131,774 80,045 13,983 Deferred expense (benefit): Federal 10,444 (17,463 ) 49,169 State 4,784 5,683 27,679 15,228 (11,780 ) 76,848 Total income tax expense $ 147,002 $ 68,265 $ 90,831 |
Summary of Deferred Tax Assets and Liabilities | The tax effects of temporary differences that gave rise to the significant portions of the deferred tax assets and liabilities as of December 31, 2019 and 2018 were as follows: 2019 2018 (in thousands) Deferred tax assets: Allowance for loan losses $ 44,486 $ 42,882 Depreciation — 19,111 Employee benefits 28,263 13,301 Investment securities, including other-than-temporary impairment losses — 13,222 Net operating loss carryforwards 19,768 21,570 Purchase accounting 41,857 33,629 Other 19,904 22,104 Total deferred tax assets 154,278 165,819 Deferred tax liabilities: Pension plans 19,686 18,786 Depreciation 4,527 — Investment securities, including other-than-temporary impairment losses 2,319 — Other investments 7,731 17,758 Core deposit intangibles 16,620 14,223 Other 13,665 8,858 Total deferred tax liabilities 64,548 59,625 Valuation Allowance 916 733 Net deferred tax asset (included in other assets) $ 88,814 $ 105,461 |
Summary of Income Tax Reconciliation | Reconciliation between the reported income tax expense and the amount computed by multiplying consolidated income before taxes by the statutory federal income tax rate of 21 percent for the years ended December 31, 2019 and 2018 , and 35 percent for the year ended December 31, 2017 were as follows: 2019 2018 2017 (in thousands) Federal income tax at expected statutory rate $ 95,927 $ 69,235 $ 88,458 Increase (decrease) due to: State income tax expense, net of federal tax effect 32,581 23,851 21,046 Tax-exempt interest, net of interest incurred to carry tax-exempt securities (3,118 ) (3,974 ) (5,245 ) Bank owned life insurance (1,637 ) (1,734 ) (2,568 ) Tax credits from securities and other investments (11,636 ) (20,798 ) (27,037 ) FDIC insurance premium 2,507 3,318 — Impact of the Tax Act — (2,274 ) 15,441 Addition to reserve for uncertainties 31,123 — — Other, net 1,255 641 736 Income tax expense $ 147,002 $ 68,265 $ 90,831 |
Summary of Reconciliation of Gross Unrecognized Tax Benefits | A reconciliation of Valley’s gross unrecognized tax benefits for 2019 , 2018 and 2017 are presented in the table below: 2019 2018 2017 (in thousands) Beginning balance $ — $ 4,238 $ 16,144 Additions based on tax positions related to prior years 31,918 — 1,121 Settlements with taxing authorities — — (13,027 ) Reductions due to expiration of statute of limitations — (4,238 ) — Ending balance $ 31,918 $ — $ 4,238 |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Income Tax Disclosure [Abstract] | |
Affordable Housing Tax Credit Investments, Other Tax Credit Investments, and Related Unfunded Commitments | The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at December 31, 2019 and 2018 : December 31, 2019 2018 (in thousands) Other Assets: Affordable housing tax credit investments, net $ 25,049 $ 36,961 Other tax credit investments, net 59,081 68,052 Total tax credit investments, net $ 84,130 $ 105,013 Other Liabilities: Unfunded affordable housing tax credit commitments $ 1,539 $ 4,520 Unfunded other tax credit commitments 1,139 8,756 Total unfunded tax credit commitments $ 2,678 $ 13,276 |
Affordable Housing Tax Credit Investments and Other Tax Credit Investments | The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the years ended December 31, 2019 , 2018 and 2017 : 2019 2018 2017 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 6,757 $ 6,713 $ 7,383 Other tax credit investment credits and tax benefits 10,205 21,351 35,530 Total reduction in income tax expense $ 16,962 $ 28,064 $ 42,913 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 2,184 $ 1,880 $ 2,748 Affordable housing tax credit investment impairment losses 3,295 2,544 4,684 Other tax credit investment losses 5,668 1,970 2,866 Other tax credit investment impairment losses 9,245 17,806 31,449 Total amortization of tax credit investments recorded in non-interest expense $ 20,392 $ 24,200 $ 41,747 |
Commitments and Contingencies (
Commitments and Contingencies (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Commitments and Contingencies Disclosure [Abstract] | |
Summary of Financial Instruments with Off-Balance Sheet Risk | The following table provides a summary of financial instruments with off-balance sheet risk at December 31, 2019 and 2018 : 2019 2018 (in thousands) Commitments under commercial loans and lines of credit $ 5,550,967 $ 5,164,186 Home equity and other revolving lines of credit 1,379,581 1,178,306 Standby letters of credit 296,036 316,941 Outstanding residential mortgage loan commitments 233,291 235,310 Commitments to sell loans 68,492 58,897 Commitments under unused lines of credit—credit card 44,527 66,229 Commercial letters of credit 2,887 3,100 |
Consolidated Statements of Financial Condition Related to Fair Value of Derivative Financial Instruments | Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: December 31, 2019 December 31, 2018 Fair Value Fair Value Other Assets Other Liabilities Notional Amount Other Assets Other Liabilities Notional Amount (in thousands) Derivatives designated as hedging instruments: Cash flow hedge interest rate caps and swaps $ — $ 1,484 $ 180,000 $ — $ 27 $ 332,000 Fair value hedge interest rate swaps — 229 7,281 — 347 7,536 Total derivatives designated as hedging instruments $ — $ 1,713 $ 187,281 $ — $ 374 $ 339,536 Derivatives not designated as hedging instruments: Interest rate swaps, and embedded and credit derivatives $ 158,382 $ 42,020 $ 4,113,106 $ 48,642 $ 22,533 $ 3,390,578 Mortgage banking derivatives 150 193 142,760 337 774 105,247 Total derivatives not designated as hedging instruments $ 158,532 $ 42,213 $ 4,255,866 $ 48,979 $ 23,307 $ 3,495,825 |
Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows | Gains (losses) included in the consolidated statements of income and in other comprehensive income (loss), on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 2019 2018 2017 (in thousands) Amount of loss reclassified from accumulated other comprehensive loss to interest expense $ (1,808 ) $ (3,493 ) $ (8,579 ) Amount of (loss) gain recognized in other comprehensive income (1,380 ) 2,651 1,005 |
Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Fair Value | Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 2019 2018 2017 (in thousands) Derivative—interest rate swaps: Interest income $ 133 $ 290 $ 348 Hedged item—loans, deposits and long-term borrowings: Interest income $ (133 ) $ (290 ) $ (348 ) |
Interest Rate Derivatives Designated as Hedges | The following table presents the hedged items related to interest rate derivatives designated as hedges of fair value and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at December 31, 2019 and 2018 : Line Item in the Statement of Financial Position in Which the Hedged Item is Included Carrying Amount of the Hedged Asset Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset 2019 2018 2019 2018 (in thousands) Loans $ 7,510 $ 7,882 $ 229 $ 346 |
Net (Losses) Gains Related to Derivative Instruments Not Designated as Hedging Instruments | Net losses included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: 2019 2018 2017 (in thousands) Non-designated hedge interest rate and credit derivatives Other non-interest expense $ 898 $ 792 $ 744 |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Offsetting [Abstract] | |
Summary of Valley's Financial Instruments that are Eligible for Offset, Assets | The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 2019 and 2018 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) December 31, 2019 Assets: Interest rate swaps $ 158,382 $ — $ 158,382 $ (118 ) $ — $ 158,264 Liabilities: Interest rate swaps $ 43,733 $ — $ 43,733 $ (118 ) $ (16,881 ) $ 26,734 Repurchase agreements 350,000 — 350,000 — (350,000 ) * — Total $ 393,733 $ — $ 393,733 $ (118 ) $ (366,881 ) $ 26,734 December 31, 2018 Assets: Interest rate swaps and caps $ 48,642 $ — $ 48,642 $ (1,214 ) $ — $ 47,428 Liabilities: Interest rate swaps and caps $ 22,907 $ — $ 22,907 $ (1,214 ) $ (1,852 ) $ 19,841 Repurchase agreements 150,000 — 150,000 — (150,000 ) * — Total $ 172,907 $ — $ 172,907 $ (1,214 ) $ (151,852 ) $ 19,841 * Represents the fair value of non-cash pledged investment securities. |
Summary of Valley's Financial Instruments that are Eligible for Offset, Liabilities | The table below presents information about Valley’s financial instruments that are eligible for offset in the consolidated statements of financial condition as of December 31, 2019 and 2018 . Gross Amounts Not Offset Gross Amounts Recognized Gross Amounts Offset Net Amounts Presented Financial Instruments Cash Collateral Net Amount (in thousands) December 31, 2019 Assets: Interest rate swaps $ 158,382 $ — $ 158,382 $ (118 ) $ — $ 158,264 Liabilities: Interest rate swaps $ 43,733 $ — $ 43,733 $ (118 ) $ (16,881 ) $ 26,734 Repurchase agreements 350,000 — 350,000 — (350,000 ) * — Total $ 393,733 $ — $ 393,733 $ (118 ) $ (366,881 ) $ 26,734 December 31, 2018 Assets: Interest rate swaps and caps $ 48,642 $ — $ 48,642 $ (1,214 ) $ — $ 47,428 Liabilities: Interest rate swaps and caps $ 22,907 $ — $ 22,907 $ (1,214 ) $ (1,852 ) $ 19,841 Repurchase agreements 150,000 — 150,000 — (150,000 ) * — Total $ 172,907 $ — $ 172,907 $ (1,214 ) $ (151,852 ) $ 19,841 * Represents the fair value of non-cash pledged investment securities. |
Regulatory and Capital Requir_2
Regulatory and Capital Requirements (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Banking and Thrift [Abstract] | |
Schedule of Actual Capital Positions and Ratios under Banking Regulations | The following table presents Valley’s and Valley National Bank’s actual capital positions and ratios under the Basel III risk-based capital guidelines at December 31, 2019 and 2018 : Actual Minimum Capital Requirements To Be Well Capitalized Under Prompt Corrective Action Provision Amount Ratio Amount Ratio Amount Ratio ($ in thousands) As of December 31, 2019 Total Risk-based Capital Valley $ 3,427,134 11.72 % $ 3,070,687 10.50 % N/A N/A Valley National Bank 3,416,674 11.69 3,069,894 10.50 $ 2,923,709 10.00 % Common Equity Tier 1 Capital Valley 2,754,524 9.42 2,047,125 7.00 N/A N/A Valley National Bank 3,152,070 10.78 2,046,596 7.00 1,900,411 6.50 Tier 1 Risk-based Capital Valley 2,968,530 10.15 2,485,795 8.50 N/A N/A Valley National Bank 3,152,070 10.78 2,485,153 8.50 2,338,967 8.00 Tier 1 Leverage Capital Valley 2,968,530 8.76 1,355,378 4.00 N/A N/A Valley National Bank 3,152,070 9.31 1,354,693 4.00 1,693,366 5.00 As of December 31, 2018 Total Risk-based Capital Valley $ 2,786,971 11.34 % $ 2,426,975 9.875 % N/A N/A Valley National Bank 2,698,654 10.99 2,424,059 9.875 $ 2,454,743 10.00 % Common Equity Tier 1 Capital Valley 2,071,871 8.43 1,566,781 6.375 N/A N/A Valley National Bank 2,442,359 9.95 1,564,899 6.375 1,595,583 6.50 Tier 1 Risk-based Capital Valley 2,286,676 9.30 1,935,435 7.875 N/A N/A Valley National Bank 2,442,359 9.95 1,933,110 7.875 1,963,794 8.00 Tier 1 Leverage Capital Valley 2,286,676 7.57 1,208,882 4.00 N/A N/A Valley National Bank 2,442,359 8.09 1,207,039 4.00 1,508,798 5.00 |
Other Comprehensive Income (Tab
Other Comprehensive Income (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Equity [Abstract] | |
Schedule of Comprehensive Income | The following table presents the tax effects allocated to each component of other comprehensive income (loss) for the years ended December 31, 2019 , 2018 and 2017 . Components of other comprehensive income (loss) include changes in net unrealized gains and losses on debt securities available for sale (including the non-credit portion of other-than-temporary impairment charges relating to certain securities during the period); unrealized gains and losses on derivatives used in cash flow hedging relationships; and the pension benefit adjustment for the unfunded portion of various employee, officer and director pension plans. 2019 2018 2017 Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax Before Tax Tax Effect After Tax (in thousands) Unrealized gains and losses on available for sale (AFS) debt securities Net gains (losses) arising during the period $ 54,723 $ (15,461 ) $ 39,262 $ (32,123 ) $ 9,191 $ (22,932 ) $ 1,485 $ (635 ) $ 850 Less reclassification adjustment for net losses (gains) included in net income (1) 150 (31 ) 119 2,873 (636 ) 2,237 (264 ) 108 (156 ) Net change 54,873 (15,492 ) 39,381 (29,250 ) 8,555 (20,695 ) 1,221 (527 ) 694 Unrealized gains and losses on derivatives (cash flow hedges) Net (losses) gains arising during the period (1,380 ) 391 (989 ) 2,651 (777 ) 1,874 1,005 (429 ) 576 Less reclassification adjustment for net losses included in net income (2) 1,808 (517 ) 1,291 3,493 (999 ) 2,494 8,579 (3,551 ) 5,028 Net change 428 (126 ) 302 6,144 (1,776 ) 4,368 9,584 (3,980 ) 5,604 Defined benefit pension plan Net (losses) gains arising during the period (2,385 ) (176 ) (2,561 ) (9,916 ) 2,765 (7,151 ) (3,843 ) 1,121 (2,722 ) Amortization of prior service (cost) credit (3) (135 ) 42 (93 ) 212 (66 ) 146 268 (77 ) 191 Amortization of net loss (3) 264 (76 ) 188 625 (178 ) 447 381 (133 ) 248 Net change (2,256 ) (210 ) (2,466 ) (9,079 ) 2,521 (6,558 ) (3,194 ) 911 (2,283 ) Total other comprehensive income (loss) $ 53,045 $ (15,828 ) $ 37,217 $ (32,185 ) $ 9,300 $ (22,885 ) $ 7,611 $ (3,596 ) $ 4,015 (1) Included in losses on securities transactions, net. (2) Included in interest expense. (3) Included in the computation of net periodic pension cost. See Note 13 for details. |
Schedule of Accumulated Other Comprehensive Loss | The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the years ended December 31, 2019 , 2018 and 2017 : Components of Accumulated Other Comprehensive Loss Total Accumulated Other Comprehensive Loss Unrealized Gains and Losses on AFS Securities Unrealized Gains and Losses on Derivatives Defined Benefit Pension Plan (in thousands) Balance-December 31, 2016 $ (10,736 ) $ (12,464 ) $ (18,893 ) $ (42,093 ) Reclassification due to the adoption of ASU No. 2018-02 (2,342 ) (1,478 ) (4,107 ) (7,927 ) Balance-January 1, 2017 (13,078 ) (13,942 ) (23,000 ) (50,020 ) Other comprehensive income (loss) before reclassifications 850 576 (2,722 ) (1,296 ) Amounts reclassified from other comprehensive income (loss) (156 ) 5,028 439 5,311 Other comprehensive income (loss), net 694 5,604 (2,283 ) 4,015 Balance-December 31, 2017 (12,384 ) (8,338 ) (25,283 ) (46,005 ) Reclassification due to the adoption of ASU No. 2016-01 (480 ) — — (480 ) Reclassification due to the adoption of ASU No. 2017-12 — (61 ) — (61 ) Balance-January 1, 2018 (12,864 ) (8,399 ) (25,283 ) (46,546 ) Other comprehensive income (loss) before reclassifications (22,932 ) 1,874 (7,151 ) (28,209 ) Amounts reclassified from other comprehensive income (loss) 2,237 2,494 593 5,324 Other comprehensive income (loss), net (20,695 ) 4,368 (6,558 ) (22,885 ) Balance-December 31, 2018 (33,559 ) (4,031 ) (31,841 ) (69,431 ) Other comprehensive income (loss) before reclassifications 39,262 (989 ) (2,561 ) 35,712 Amounts reclassified from other comprehensive income (loss) 119 1,291 95 1,505 Other comprehensive income (loss), net 39,381 302 (2,466 ) 37,217 Balance-December 31, 2019 $ 5,822 $ (3,729 ) $ (34,307 ) $ (32,214 ) |
Quarterly Financial Data (Table
Quarterly Financial Data (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Quarterly Financial Information Disclosure [Abstract] | |
Summary of Quarterly Financial Data | Quarters Ended 2019 March 31 June 30 September 30 December 31 (in thousands, except for share data) Interest income $ 320,224 $ 327,742 $ 329,261 $ 343,773 Interest expense 101,576 107,508 108,636 105,232 Net interest income 218,648 220,234 220,625 238,541 Provision for credit losses 8,000 2,100 8,700 5,418 Non-interest income: Net impairment losses on securities recognized in earnings — (2,928 ) — — Gains on sales of loans, net 4,576 3,930 5,194 5,214 Gains (losses) on sales of assets, net 77,720 (564 ) (159 ) 1,336 Other non-interest income 25,377 27,165 36,115 31,544 Non-interest expense: Loss on extinguishment of debt — — — 31,995 Amortization of tax credit investments 7,173 4,863 4,385 3,971 Other non-interest expense 140,622 136,874 141,492 160,180 Income before income taxes 170,526 104,000 107,198 75,071 Income tax expense 57,196 27,532 25,307 36,967 Net income 113,330 76,468 81,891 38,104 Dividend on preferred stock 3,172 3,172 3,172 3,172 Net income available to common shareholders 110,158 73,296 78,719 34,932 Earnings per common share: Basic $ 0.33 $ 0.22 $ 0.24 $ 0.10 Diluted 0.33 0.22 0.24 0.10 Cash dividends declared per common share 0.11 0.11 0.11 0.11 Weighted average number of common shares outstanding: Basic 331,601,260 331,748,552 331,797,982 355,821,005 Diluted 332,834,466 332,959,802 333,405,196 358,864,876 Quarters Ended 2018 March 31 June 30 September 30 December 31 (in thousands, except for share data) Interest income $ 267,495 $ 280,118 $ 297,041 $ 314,594 Interest expense 59,897 69,366 80,241 92,541 Net interest income 207,598 210,752 216,800 222,053 Provision for credit losses 10,948 7,142 6,552 7,859 Non-interest income: Gains on sales of loans, net 6,753 7,642 3,748 2,372 Losses on sales of assets (97 ) (125 ) (1,899 ) (280 ) Other non-interest income 25,595 30,552 27,189 32,602 Non-interest expense: Amortization of tax credit investments 5,274 4,470 5,412 9,044 Other non-interest expense 168,478 145,446 146,269 144,668 Income before income taxes 55,149 91,763 87,605 95,176 Income tax expense 13,184 18,961 18,046 18,074 Net income 41,965 72,802 69,559 77,102 Dividend on preferred stock 3,172 3,172 3,172 3,172 Net income available to common shareholders 38,793 69,630 66,387 73,930 Earnings per common share: Basic $ 0.12 $ 0.21 $ 0.20 $ 0.22 Diluted 0.12 0.21 0.20 0.22 Cash dividends declared per common share 0.11 0.11 0.11 0.11 Weighted average number of common shares outstanding: Basic 330,727,416 331,318,381 331,486,500 331,492,648 Diluted 332,465,527 332,895,483 333,000,242 332,856,385 |
Parent Company Information (Tab
Parent Company Information (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Condensed Financial Information Disclosure [Abstract] | |
Schedule of Condensed Statements of Financial Condition | Condensed Statements of Financial Condition December 31, 2019 2018 (in thousands) Assets Cash $ 119,213 $ 109,839 Investments in and receivables due from subsidiaries 4,671,578 3,609,836 Other assets 12,953 32,721 Total Assets $ 4,803,744 $ 3,752,396 Liabilities and Shareholders’ Equity Dividends payable to shareholders $ 45,796 $ 37,644 Long-term borrowings 292,414 294,602 Junior subordinated debentures issued to capital trusts 55,718 55,370 Accrued expenses and other liabilities 25,628 14,326 Shareholders’ equity 4,384,188 3,350,454 Total Liabilities and Shareholders’ Equity $ 4,803,744 $ 3,752,396 |
Schedule of Condensed Statements of Income | Condensed Statements of Income Years Ended December 31, 2019 2018 2017 (in thousands) Income Dividends from subsidiary $ 160,000 $ 155,000 $ 122,000 Income from subsidiary 4,550 4,550 4,550 Gains on securities transactions, net — 3 — Losses on sales of assets, net — (147 ) — Other interest and income 51 39 135 Total Income 164,601 159,445 126,685 Total Expenses 27,998 32,269 39,621 Income before income tax and equity in undistributed earnings of subsidiary 136,603 127,176 87,064 Income tax expense (benefit) 24,524 (20,547 ) (30,179 ) Income before equity in undistributed earnings of subsidiary 112,079 147,723 117,243 Equity in undistributed earnings of subsidiary 197,714 113,705 44,664 Net Income 309,793 261,428 161,907 Dividends on preferred stock 12,688 12,688 9,449 Net Income Available to Common Shareholders $ 297,105 $ 248,740 $ 152,458 |
Schedule of Condensed Statements of Cash Flows | Condensed Statements of Cash Flows Years Ended December 31, 2019 2018 2017 (in thousands) Cash flows from operating activities: Net Income $ 309,793 $ 261,428 $ 161,907 Adjustments to reconcile net income to net cash provided by operating activities: Equity in undistributed earnings of subsidiary (197,714 ) (113,705 ) (44,664 ) Stock-based compensation 14,726 19,472 12,204 Net amortization of premiums and accretion of discounts on borrowings 124 63 197 Gains on securities transactions, net — (3 ) — Losses on sales of assets, net — 147 — Net change in: Other assets 19,768 9,928 (89 ) Accrued expenses and other liabilities 8,803 (10,657 ) 8,737 Net cash provided by operating activities 155,500 166,673 138,292 Cash flows from investing activities: Sales of investment securities available for sale — 257 — Cash and cash equivalents acquired in acquisitions 11,947 7,915 — Capital contributions to subsidiary — — (98,000 ) Net cash provided by (used in) investing activities 11,947 8,172 (98,000 ) Cash flows from financing activities: Proceeds from issuance of preferred stock, net — — 98,101 Dividends paid to preferred shareholders (12,688 ) (15,859 ) (6,277 ) Dividends paid to common shareholders (146,537 ) (138,857 ) (115,881 ) Purchase of common shares to treasury (1,805 ) (3,801 ) (2,644 ) Common stock issued, net 2,957 2,704 8,207 Net cash used in financing activities (158,073 ) (155,813 ) (18,494 ) Net change in cash and cash equivalents 9,374 19,032 21,798 Cash and cash equivalents at beginning of year 109,839 90,807 69,009 Cash and cash equivalents at end of year $ 119,213 $ 109,839 $ 90,807 |
Business Segments (Tables)
Business Segments (Tables) | 12 Months Ended |
Dec. 31, 2019 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data for Business Segments | The following tables represent the financial data for Valley’s four business segments for the years ended December 31, 2019 , 2018 and 2017 : Year Ended December 31, 2019 Consumer Lending Commercial Lending Investment Management Corporate and Other Adjustments Total ($ in thousands) Average interest earning assets (unaudited) $ 6,891,462 $ 19,343,791 $ 4,340,277 $ — $ 30,575,530 Interest income $ 272,773 $ 926,328 $ 126,723 $ (4,824 ) $ 1,321,000 Interest expense 91,798 257,670 57,815 15,669 422,952 Net interest income (loss) 180,975 668,658 68,908 (20,493 ) 898,048 Provision for credit losses 6,688 17,530 — — 24,218 Net interest income (loss) after provision for credit losses 174,287 651,128 68,908 (20,493 ) 873,830 Non-interest income 57,981 41,157 8,818 106,564 214,520 Non-interest expense 76,046 101,924 1,034 452,551 631,555 Internal expense transfer 78,743 221,113 49,670 (349,526 ) — Income (loss) before income taxes $ 77,479 $ 369,248 $ 27,022 $ (16,954 ) $ 456,795 Return on average interest earning assets (pre-tax) (unaudited) 1.12 % 1.91 % 0.62 % N/A 1.49 % Year Ended December 31, 2018 Consumer Lending Commercial Lending Investment Management Corporate and Other Adjustments Total ($ in thousands) Average interest earning assets (unaudited) $ 6,197,161 $ 17,143,169 $ 4,362,581 $ — $ 27,702,911 Interest income $ 235,264 $ 798,974 $ 130,971 $ (5,961 ) $ 1,159,248 Interest expense 64,083 177,273 45,112 15,577 302,045 Net interest income (loss) 171,181 621,701 85,859 (21,538 ) 857,203 Provision for credit losses 5,550 26,951 — — 32,501 Net interest income (loss) after provision for credit losses 165,631 594,750 85,859 (21,538 ) 824,702 Non-interest income 61,280 22,275 8,691 41,806 134,052 Non-interest expense 92,462 95,171 1,251 440,177 629,061 Internal expense transfer 77,164 213,399 54,353 (344,916 ) — Income (loss) before income taxes $ 57,285 $ 308,455 $ 38,946 $ (74,993 ) $ 329,693 Return on average interest earning assets (pre-tax) (unaudited) 0.92 % 1.80 % 0.89 % N/A 1.19 % Year Ended December 31, 2017 Consumer Lending Commercial Lending Investment Management Corporate and Other Adjustments Total ($ in thousands) Average interest earning assets (unaudited) $ 5,166,171 $ 12,652,832 $ 3,669,495 $ — $ 21,488,498 Interest income $ 182,508 $ 552,297 $ 107,972 $ (8,623 ) $ 834,154 Interest expense 39,018 95,562 27,714 11,813 174,107 Net interest income (loss) 143,490 456,735 80,258 (20,436 ) 660,047 Provision for credit losses 3,197 6,745 — — 9,942 Net interest income (loss) after provision for credit losses 140,293 449,990 80,258 (20,436 ) 650,105 Non-interest income 63,375 11,414 7,745 29,172 111,706 Non-interest expense 72,207 71,216 1,193 364,457 509,073 Internal expense transfer 68,007 166,847 48,393 (283,247 ) — Income (loss) before income taxes $ 63,454 $ 223,341 $ 38,417 $ (72,474 ) $ 252,738 Return on average interest earning assets (pre-tax) (unaudited) 1.23 % 1.77 % 1.05 % N/A 1.18 % |
Summary of Significant Accoun_4
Summary of Significant Accounting Policies - Additional Information (Detail) shares in Thousands | Jan. 01, 2020USD ($) | Aug. 31, 2017shares | Jun. 30, 2015shares | Dec. 31, 2019USD ($)shareholdershares | Dec. 31, 2018USD ($)shares | Dec. 31, 2017USD ($)shares | Jan. 01, 2019USD ($) | Jan. 01, 2018USD ($) |
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of shareholders needed to qualify as a REIT | shareholder | 100 | |||||||
Percentage of preferred stock issued by each REIT - less than | 20.00% | |||||||
Reserve balance in cash or deposits | $ 114,400,000 | $ 120,700,000 | ||||||
Allowance for loan losses | 161,759,000 | 151,859,000 | $ 120,856,000 | |||||
OREO and other repossessed assets total | 9,400,000 | 9,500,000 | ||||||
Foreclosed residential real estate properties | 2,100,000 | 852,000 | ||||||
Properties for which formal foreclosure proceedings are in process | $ 2,800,000 | $ 1,800,000 | ||||||
Award vesting period | 1 year | |||||||
Anti-dilutive common stock options and warrants (in shares) | shares | 288 | 2,100 | 3,100 | |||||
Lease right of use assets | $ 285,129,000 | |||||||
Lease liabilities | 309,849,000 | $ 3,125,000 | ||||||
Loans | $ 29,699,208,000 | 25,035,469,000 | ||||||
Noncumulative Preferred Stock | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Stock issued (in shares) | shares | 4,000 | 4,600 | ||||||
Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Premises and equipment, useful life | 3 years | |||||||
Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Premises and equipment, useful life | 40 years | |||||||
Commercial and industrial | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Allowance for loan losses | $ 104,059,000 | 90,956,000 | $ 57,232,000 | |||||
Loans evaluated for impairment | 250,000 | |||||||
Loans | 4,825,997,000 | 4,331,032,000 | ||||||
PCI Loans | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Allowance for loan losses | 0 | 0 | ||||||
PCI Loans | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Loans | 6,629,599,000 | 4,190,086,000 | ||||||
PCI Loans | Commercial and industrial | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Loans | $ 682,014,000 | $ 740,657,000 | ||||||
ASU 2016-16 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification due to the adoption of an ASU | $ (17,611,000) | |||||||
ASU 2016-02 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Lease right of use assets | $ 216,000,000 | |||||||
Lease liabilities | 241,000,000 | |||||||
Reclassification due to the adoption of an ASU | 4,414,000 | |||||||
ASU 2017-08 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification due to the adoption of an ASU | (1,446,000) | |||||||
ASU 2016-13 | Forecast | Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Increase in allowance for credit losses | $ 30,000,000 | |||||||
ASU 2016-13 | Forecast | Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Increase in allowance for credit losses | 40,000,000 | |||||||
ASU 2016-13 | Forecast | PCI Loans | Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Increase in allowance for credit losses | 60,000,000 | |||||||
ASU 2016-13 | Forecast | PCI Loans | Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Increase in allowance for credit losses | $ 65,000,000 | |||||||
Retained Earnings | ASU 2016-16 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification due to the adoption of an ASU | $ (17,611,000) | |||||||
Retained Earnings | ASU 2016-02 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification due to the adoption of an ASU | 4,414,000 | |||||||
Retained Earnings | ASU 2017-08 | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Reclassification due to the adoption of an ASU | $ (1,446,000) | |||||||
Commitments under commercial loans and lines of credit | Minimum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of days past due of loans to be full or partial charged-off | 90 days | |||||||
Commitments under commercial loans and lines of credit | Maximum | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of days past due of loans to be full or partial charged-off | 120 days | |||||||
Residential mortgage and home equity | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of days past due of loans to be full or partial charged-off | 120 days | |||||||
Automobile | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of days past due of loans to be fully charged-off | 120 days | |||||||
Unsecured loans at banks | ||||||||
Summary Of Significant Accounting Policies [Line Items] | ||||||||
Number of days past due of loans to be fully charged-off | 150 days |
Summary of Significant Accoun_5
Summary of Significant Accounting Policies - Calculation of Both Basic and Diluted Earnings Per Common Share (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Earnings Per Common Share: | |||||||||||
Net income available to common shareholders | $ 34,932 | $ 78,719 | $ 73,296 | $ 110,158 | $ 73,930 | $ 66,387 | $ 69,630 | $ 38,793 | $ 297,105 | $ 248,740 | $ 152,458 |
Basic weighted-average number of common shares outstanding (in shares) | 355,821,005 | 331,797,982 | 331,748,552 | 331,601,260 | 331,492,648 | 331,486,500 | 331,318,381 | 330,727,416 | 337,792,270 | 331,258,964 | 264,038,123 |
Plus: Common stock equivalents (in shares) | 2,325,538 | 1,434,754 | 850,884 | ||||||||
Diluted weighted-average number of common shares outstanding (in shares) | 358,864,876 | 333,405,196 | 332,959,802 | 332,834,466 | 332,856,385 | 333,000,242 | 332,895,483 | 332,465,527 | 340,117,808 | 332,693,718 | 264,889,007 |
Earnings per common share: | |||||||||||
Basic (in usd per share) | $ 0.10 | $ 0.24 | $ 0.22 | $ 0.33 | $ 0.22 | $ 0.20 | $ 0.21 | $ 0.12 | $ 0.88 | $ 0.75 | $ 0.58 |
Diluted (in usd per share) | $ 0.10 | $ 0.24 | $ 0.22 | $ 0.33 | $ 0.22 | $ 0.20 | $ 0.21 | $ 0.12 | $ 0.87 | $ 0.75 | $ 0.58 |
Business Combinations (Detail)
Business Combinations (Detail) $ in Thousands, shares in Millions | Dec. 01, 2019USD ($)officeshares | Jan. 01, 2018USD ($)branchshares | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($)office |
Business Acquisition [Line Items] | ||||
Loans | $ 29,537,449 | $ 24,883,610 | ||
Core deposits | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 8 years 10 months 24 days | |||
Oritani Financial Corp. | ||||
Business Acquisition [Line Items] | ||||
Assets | $ 4,292,319 | $ 4,300,000 | ||
Loans | 3,380,841 | 3,400,000 | ||
Deposits | $ 2,924,716 | 2,900,000 | ||
Number of branches acquired | office | 26 | |||
Conversion ratio for shares issued | 1.6 | |||
Consideration transferred | $ 835,300 | |||
Shares issued in connection with acquisition | shares | 71.1 | |||
Merger expenses | $ 16,600 | |||
Oritani Financial Corp. | Core deposits | ||||
Business Acquisition [Line Items] | ||||
Estimated useful life | 10 years | |||
USAmeriBancorp, Inc. | ||||
Business Acquisition [Line Items] | ||||
Assets | 5,100,000 | |||
Loans | 3,700,000 | |||
Deposits | $ 3,600,000 | |||
Number of branches acquired | office | 29 | |||
Conversion ratio for shares issued | 6.1 | |||
Consideration transferred | $ 737,000 | |||
Shares issued in connection with acquisition | shares | 64.9 | |||
Merger expenses | $ 17,400 | |||
USAmeriBancorp, Inc. | Alabama | ||||
Business Acquisition [Line Items] | ||||
Number of branches acquired | branch | 15 |
Business Combinations Assets Ac
Business Combinations Assets Acquired and Liabilities Assumed (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 01, 2019 | Dec. 31, 2018 | Jan. 01, 2018 | Dec. 31, 2017 |
Assets acquired: | |||||
Loans | $ 29,537,449 | $ 24,883,610 | |||
Goodwill | $ 1,373,625 | $ 1,084,665 | $ 690,637 | ||
Oritani Financial Corp. | |||||
Assets acquired: | |||||
Cash and cash equivalents | $ 22,239 | ||||
Equity securities | 51,382 | ||||
Loans | 3,380,841 | $ 3,400,000 | |||
Premises and equipment | 23,585 | ||||
Bank owned life insurance | 101,896 | ||||
Accrued interest receivable | 11,781 | ||||
Goodwill | 288,960 | ||||
Other intangible assets | 20,690 | ||||
Other assets: | |||||
Deferred tax assets | 24,707 | ||||
FHLB and FRB stock | 23,479 | ||||
Other assets | 1,988 | ||||
Total other assets | 50,174 | ||||
Total assets acquired | 4,292,319 | 4,300,000 | |||
Deposits: | |||||
Non-interest bearing | 142,630 | ||||
Savings, NOW and money market | 1,596,690 | ||||
Time | 1,185,396 | ||||
Total deposits | 2,924,716 | $ 2,900,000 | |||
Short-term borrowings | 10,500 | ||||
Long-term borrowings | 430,130 | ||||
Accrued expense and other liabilities | 91,718 | ||||
Total liabilities assumed | 3,457,064 | ||||
Common stock issued in acquisition | 835,255 | ||||
Oritani Financial Corp. | Available-for-sale securities | |||||
Assets acquired: | |||||
Investment securities | 335,894 | ||||
Oritani Financial Corp. | Held-to-maturity securities | |||||
Assets acquired: | |||||
Investment securities | $ 4,877 |
Business Combinations Pro Forma
Business Combinations Pro Forma Information (Details) - USD ($) $ / shares in Units, $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Oritani Financial Corp. | |||
Business Acquisition [Line Items] | |||
Revenues | $ 1,219,887 | $ 1,106,012 | |
Net income | $ 361,079 | $ 313,977 | |
Basic earnings per share (in usd per share) | $ 0.86 | $ 0.75 | |
Diluted earnings per share (in usd per share) | $ 0.85 | $ 0.75 | |
USAmeriBancorp, Inc. | |||
Business Acquisition [Line Items] | |||
Revenues | $ 931,255 | ||
Net income | $ 196,921 | ||
Basic earnings per share (in usd per share) | $ 0.57 | ||
Diluted earnings per share (in usd per share) | $ 0.57 |
Fair Value Measurement of Ass_3
Fair Value Measurement of Assets and Liabilities - Schedule of Assets and Liabilities Measured at Fair Value on Recurring and Non-Recurring Basis (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Assets | ||
Equity securities | $ 41,410 | $ 0 |
Available for sale securities | 1,566,801 | 1,749,544 |
Liabilities | ||
Foreclosed assets | 9,400 | 9,500 |
Loans held for sale (which consist of residential mortgages) carried at fair value | 74,500 | 34,600 |
U.S. Treasury securities | ||
Assets | ||
Available for sale securities | 50,943 | 49,306 |
U.S. government agency securities | ||
Assets | ||
Available for sale securities | 29,243 | 36,277 |
Obligations of states and political subdivisions | ||
Assets | ||
Available for sale securities | 170,051 | 197,092 |
Residential mortgage-backed securities | ||
Assets | ||
Available for sale securities | 1,254,786 | 1,429,782 |
Corporate and other debt securities | ||
Assets | ||
Available for sale securities | 61,778 | 37,087 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | ||
Assets | ||
Equity securities | 41,410 | |
Available for sale securities | 50,943 | 49,306 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 92,353 | 49,306 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. Treasury securities | ||
Assets | ||
Available for sale securities | 50,943 | 49,306 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. government agency securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Assets | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Corporate and other debt securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring fair value measurements | ||
Liabilities | ||
Collateral dependent impaired loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | ||
Assets | ||
Equity securities | 0 | |
Available for sale securities | 1,515,178 | 1,700,238 |
Loans held for sale | 76,113 | 35,155 |
Other assets | 158,532 | 48,979 |
Total assets | 1,749,823 | 1,784,372 |
Liabilities | ||
Other liabilities | 43,926 | 23,681 |
Total liabilities | 43,926 | 23,681 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. Treasury securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. government agency securities | ||
Assets | ||
Available for sale securities | 29,243 | 36,277 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Assets | ||
Available for sale securities | 170,051 | 197,092 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Assets | ||
Available for sale securities | 1,254,786 | 1,429,782 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Corporate and other debt securities | ||
Assets | ||
Available for sale securities | 61,098 | 37,087 |
Significant Other Observable Inputs (Level 2) | Non-recurring fair value measurements | ||
Liabilities | ||
Collateral dependent impaired loans | 0 | 0 |
Loan servicing rights | 0 | 0 |
Foreclosed assets | 0 | 0 |
Total | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | ||
Assets | ||
Equity securities | 0 | |
Available for sale securities | 680 | 0 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 680 | 0 |
Liabilities | ||
Other liabilities | 0 | 0 |
Total liabilities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. Treasury securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. government agency securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Assets | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Residential mortgage-backed securities | ||
Assets | ||
Available for sale securities | 0 | 0 |
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Corporate and other debt securities | ||
Assets | ||
Available for sale securities | 680 | 0 |
Significant Unobservable Inputs (Level 3) | Non-recurring fair value measurements | ||
Liabilities | ||
Collateral dependent impaired loans | 39,075 | 45,245 |
Loan servicing rights | 1,591 | 273 |
Foreclosed assets | 10,807 | 5,673 |
Total | 51,473 | 51,191 |
Fair Value | Recurring fair value measurements | ||
Assets | ||
Equity securities | 41,410 | |
Available for sale securities | 1,566,801 | 1,749,544 |
Loans held for sale | 76,113 | 35,155 |
Other assets | 158,532 | 48,979 |
Total assets | 1,842,856 | 1,833,678 |
Liabilities | ||
Other liabilities | 43,926 | 23,681 |
Total liabilities | 43,926 | 23,681 |
Fair Value | Recurring fair value measurements | U.S. Treasury securities | ||
Assets | ||
Available for sale securities | 50,943 | 49,306 |
Fair Value | Recurring fair value measurements | U.S. government agency securities | ||
Assets | ||
Available for sale securities | 29,243 | 36,277 |
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Assets | ||
Available for sale securities | 170,051 | 197,092 |
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities | ||
Assets | ||
Available for sale securities | 1,254,786 | 1,429,782 |
Fair Value | Recurring fair value measurements | Corporate and other debt securities | ||
Assets | ||
Available for sale securities | 61,778 | 37,087 |
Fair Value | Non-recurring fair value measurements | ||
Liabilities | ||
Collateral dependent impaired loans | 39,075 | 45,245 |
Loan servicing rights | 1,591 | 273 |
Foreclosed assets | 10,807 | 5,673 |
Total | $ 51,473 | $ 51,191 |
Fair Value Measurement of Ass_4
Fair Value Measurement of Assets and Liabilities - Additional Information (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Collateral dependent loan charge-offs | $ 2,100 | $ 638 | |
Collateral dependent impaired loans, recorded investment | 74,600 | 73,700 | |
Specific valuation allowance allocations | $ 35,500 | 28,500 | |
Reported net carrying amount of impaired loans | 45,200 | ||
Valuation of loan servicing rights, discount rate | 9.60% | ||
Loan servicing rights, fair value | $ 1,600 | ||
Net impairment (recovery of impairment) on loan servicing rights | 36 | 388 | $ 429 |
Foreclosed assets measured at fair value upon initial recognition | 10,800 | 5,700 | |
Allowance for loan losses, charge-offs | 3,000 | 2,000 | |
Loss due to re-measurement of repossessed assets | $ 896 | $ 390 | $ 361 |
Minimum | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Valuation of loan servicing rights, prepayment rate | 11.60% | ||
Non-recurring fair value measurements | Fair Value | |||
Fair Value Measurement Inputs and Valuation Techniques [Line Items] | |||
Reported net carrying amount of impaired loans | $ 39,100 |
Fair Value Measurement of Ass_5
Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values of Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Interest bearing deposits with banks | $ 178,423 | $ 177,088 |
Investment securities held to maturity | 2,358,720 | 2,034,943 |
Accrued interest receivable | 105,637 | 95,296 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits with stated maturities | 9,717,945 | 7,063,984 |
Carrying Amount | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 2,336,095 | 2,068,246 |
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and due from banks | 256,264 | 251,541 |
Interest bearing deposits with banks | 178,423 | 177,088 |
Accrued interest receivable | 105,637 | 95,296 |
Federal Reserve Bank and Federal Home Loan Bank stock | 214,421 | 232,080 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits without stated maturities | 19,467,892 | 17,388,990 |
Short-term borrowings | 1,093,280 | 2,118,914 |
Accrued interest payable | 33,066 | 25,762 |
Carrying Amount | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 138,352 | 138,517 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits with stated maturities | 9,717,945 | 7,063,984 |
Long-term borrowings | 2,122,426 | 1,654,268 |
Junior subordinated debentures issued to capital trusts | 55,718 | 55,370 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | U.S. government agency securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 7,345 | 8,721 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 500,705 | 585,656 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 1,620,119 | 1,266,770 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | Trust preferred securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 37,324 | 37,332 |
Carrying Amount | Significant Other Observable Inputs (Level 2) | Corporate and other debt securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 32,250 | 31,250 |
Carrying Amount | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Net loans | 29,537,449 | 24,883,610 |
Fair Value | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 2,358,720 | 2,034,943 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Cash and due from banks | 256,264 | 251,541 |
Interest bearing deposits with banks | 178,423 | 177,088 |
Accrued interest receivable | 105,637 | 95,296 |
Federal Reserve Bank and Federal Home Loan Bank stock | 214,421 | 232,080 |
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits without stated maturities | 19,467,892 | 17,388,990 |
Short-term borrowings | 1,081,879 | 2,091,892 |
Accrued interest payable | 33,066 | 25,762 |
Fair Value | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 144,113 | 142,049 |
Fair Value | Significant Other Observable Inputs (Level 2) | ||
Financial Instruments, Financial Liabilities, Balance Sheet Groupings [Abstract] | ||
Deposits with stated maturities | 9,747,867 | 7,005,573 |
Long-term borrowings | 2,181,401 | 1,751,194 |
Junior subordinated debentures issued to capital trusts | 53,889 | 55,692 |
Fair Value | Significant Other Observable Inputs (Level 2) | U.S. government agency securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 7,362 | 8,641 |
Fair Value | Significant Other Observable Inputs (Level 2) | Obligations of states and political subdivisions | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 513,607 | 586,033 |
Fair Value | Significant Other Observable Inputs (Level 2) | Residential mortgage-backed securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 1,629,572 | 1,235,605 |
Fair Value | Significant Other Observable Inputs (Level 2) | Trust preferred securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 31,382 | 31,486 |
Fair Value | Significant Other Observable Inputs (Level 2) | Corporate and other debt securities | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Investment securities held to maturity | 32,684 | 31,129 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Financial Instruments, Financial Assets, Balance Sheet Groupings [Abstract] | ||
Net loans | $ 28,964,396 | $ 24,068,755 |
Investment Securities - Additio
Investment Securities - Additional Information (Detail) | 12 Months Ended | ||
Dec. 31, 2019USD ($)security | Dec. 31, 2018USD ($)security | Dec. 31, 2017USD ($) | |
Investment Securities [Line Items] | |||
Equity securities | $ 41,410,000 | $ 0 | |
Number of security positions in the securities available for sale portfolio in an unrealized loss position | security | 182 | 545 | |
Fair value of securities available for sale pledged as collateral | $ 1,000,000,000 | ||
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years | 5 years 8 months 12 days | ||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position | security | 82 | 378 | |
Fair value of investments held to maturity pledged as collateral | $ 1,400,000,000 | ||
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years | 5 years 2 months 12 days | ||
Amortized cost | $ 1,558,787,000 | $ 1,796,404,000 | |
Available for sale securities | 1,566,801,000 | 1,749,544,000 | |
Other-than-temporary impairment losses | 2,900,000 | $ 0 | $ 0 |
US States And Political Subdivisions Debt Securities, Special Revenue Bonds, Impaired Securities | |||
Investment Securities [Line Items] | |||
Amortized cost | 680,000 | ||
Available for sale securities | $ 680,000 | ||
Non-rated single issuer securities | |||
Investment Securities [Line Items] | |||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position | security | 4 | ||
Other-than-temporary impaired securities | |||
Investment Securities [Line Items] | |||
Amortized cost | $ 294,900,000 | ||
Available for sale securities | $ 299,000,000 | ||
Other-than-temporary impaired securities | Obligations of states and political subdivisions | |||
Investment Securities [Line Items] | |||
Investment carrying value percentage | 41.50% | ||
Investment carrying value | $ 670,800,000 |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities Available for Sale (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | $ 1,558,787 | $ 1,796,404 |
Gross Unrealized Gains | 13,596 | 1,995 |
Gross Unrealized Losses | (5,582) | (48,855) |
Fair Value | 1,566,801 | 1,749,544 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 50,952 | 50,975 |
Gross Unrealized Gains | 12 | 0 |
Gross Unrealized Losses | (21) | (1,669) |
Fair Value | 50,943 | 49,306 |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 28,982 | 36,844 |
Gross Unrealized Gains | 280 | 71 |
Gross Unrealized Losses | (19) | (638) |
Fair Value | 29,243 | 36,277 |
Obligations of states and state agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 78,116 | 100,777 |
Gross Unrealized Gains | 540 | 18 |
Gross Unrealized Losses | (83) | (3,682) |
Fair Value | 78,573 | 97,113 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 90,662 | 101,207 |
Gross Unrealized Gains | 902 | 209 |
Gross Unrealized Losses | (86) | (1,437) |
Fair Value | 91,478 | 99,979 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 168,778 | 201,984 |
Gross Unrealized Gains | 1,442 | 227 |
Gross Unrealized Losses | (169) | (5,119) |
Fair Value | 170,051 | 197,092 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 1,248,814 | 1,469,059 |
Gross Unrealized Gains | 11,234 | 1,484 |
Gross Unrealized Losses | (5,262) | (40,761) |
Fair Value | 1,254,786 | 1,429,782 |
Corporate and other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Total investment securities available for sale | 61,261 | 37,542 |
Gross Unrealized Gains | 628 | 213 |
Gross Unrealized Losses | (111) | (668) |
Fair Value | $ 61,778 | $ 37,087 |
Investment Securities - Age of
Investment Securities - Age of Unrealized Losses and Fair Value of Related Securities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than Twelve Months | $ 289,110 | $ 156,682 |
More than Twelve Months | 306,513 | 1,456,424 |
Total | 595,623 | 1,613,106 |
Unrealized Losses | ||
Less than Twelve Months | (1,347) | (1,050) |
More than Twelve Months | (4,235) | (47,805) |
Total | (5,582) | (48,855) |
U.S. Treasury securities | ||
Fair Value | ||
Less than Twelve Months | 25,019 | 0 |
More than Twelve Months | 0 | 49,306 |
Total | 25,019 | 49,306 |
Unrealized Losses | ||
Less than Twelve Months | (21) | 0 |
More than Twelve Months | 0 | (1,669) |
Total | (21) | (1,669) |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 2,120 |
More than Twelve Months | 1,783 | 26,775 |
Total | 1,783 | 28,895 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (20) |
More than Twelve Months | (19) | (618) |
Total | (19) | (638) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 18,540 | 17,560 |
More than Twelve Months | 8,755 | 75,718 |
Total | 27,295 | 93,278 |
Unrealized Losses | ||
Less than Twelve Months | (21) | (95) |
More than Twelve Months | (62) | (3,587) |
Total | (83) | (3,682) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 0 | 5,018 |
More than Twelve Months | 13,177 | 70,286 |
Total | 13,177 | 75,304 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (106) |
More than Twelve Months | (86) | (1,331) |
Total | (86) | (1,437) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 18,540 | 22,578 |
More than Twelve Months | 21,932 | 146,004 |
Total | 40,472 | 168,582 |
Unrealized Losses | ||
Less than Twelve Months | (21) | (201) |
More than Twelve Months | (148) | (4,918) |
Total | (169) | (5,119) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 240,412 | 119,645 |
More than Twelve Months | 282,798 | 1,221,942 |
Total | 523,210 | 1,341,587 |
Unrealized Losses | ||
Less than Twelve Months | (1,194) | (668) |
More than Twelve Months | (4,068) | (40,093) |
Total | (5,262) | (40,761) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 5,139 | 12,339 |
More than Twelve Months | 0 | 12,397 |
Total | 5,139 | 24,736 |
Unrealized Losses | ||
Less than Twelve Months | (111) | (161) |
More than Twelve Months | 0 | (507) |
Total | $ (111) | $ (668) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Available for Sale (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year | $ 19,554 | |
Due after one year through five years | 110,337 | |
Due after five years through ten years | 90,297 | |
Due after ten years | 89,785 | |
Residential mortgage-backed securities | 1,248,814 | |
Total investment securities available for sale | 1,558,787 | $ 1,796,404 |
Fair Value | ||
Due in one year | 19,611 | |
Due after one year through five years | 110,801 | |
Due after five years through ten years | 91,232 | |
Due after ten years | 90,371 | |
Residential mortgage-backed securities | 1,254,786 | |
Total investment securities available for sale | $ 1,566,801 | $ 1,749,544 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Investment Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | $ 2,336,095 | $ 2,068,246 |
Gross Unrealized Gains | 34,556 | 14,436 |
Gross Unrealized Losses | (11,931) | (47,739) |
Fair Value | 2,358,720 | 2,034,943 |
U.S. Treasury securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 138,352 | 138,517 |
Gross Unrealized Gains | 5,761 | 3,532 |
Gross Unrealized Losses | 0 | 0 |
Fair Value | 144,113 | 142,049 |
U.S. government agency securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 7,345 | 8,721 |
Gross Unrealized Gains | 58 | 55 |
Gross Unrealized Losses | (41) | (135) |
Fair Value | 7,362 | 8,641 |
Obligations of states and state agencies | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 297,454 | 341,702 |
Gross Unrealized Gains | 7,745 | 4,332 |
Gross Unrealized Losses | (529) | (5,735) |
Fair Value | 304,670 | 340,299 |
Municipal bonds | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 203,251 | 243,954 |
Gross Unrealized Gains | 5,696 | 3,141 |
Gross Unrealized Losses | (10) | (1,361) |
Fair Value | 208,937 | 245,734 |
Total obligations of states and political subdivisions | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 500,705 | 585,656 |
Gross Unrealized Gains | 13,441 | 7,473 |
Gross Unrealized Losses | (539) | (7,096) |
Fair Value | 513,607 | 586,033 |
Residential mortgage-backed securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 1,620,119 | 1,266,770 |
Gross Unrealized Gains | 14,803 | 3,203 |
Gross Unrealized Losses | (5,350) | (34,368) |
Fair Value | 1,629,572 | 1,235,605 |
Trust preferred securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 37,324 | 37,332 |
Gross Unrealized Gains | 39 | 77 |
Gross Unrealized Losses | (5,981) | (5,923) |
Fair Value | 31,382 | 31,486 |
Corporate and other debt securities | ||
Schedule of Held-to-Maturity Securities [Line Items] | ||
Amortized Cost | 32,250 | 31,250 |
Gross Unrealized Gains | 454 | 96 |
Gross Unrealized Losses | (20) | (217) |
Fair Value | $ 32,684 | $ 31,129 |
Investment Securities - Age o_2
Investment Securities - Age of Unrealized Losses and Fair Value of Related Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Fair Value | ||
Less than Twelve Months | $ 324,246 | $ 101,621 |
More than Twelve Months | 323,080 | 1,086,150 |
Total | 647,326 | 1,187,771 |
Unrealized Losses | ||
Less than Twelve Months | (1,483) | (1,207) |
More than Twelve Months | (10,448) | (46,532) |
Total | (11,931) | (47,739) |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 5,183 | 0 |
More than Twelve Months | 0 | 6,074 |
Total | 5,183 | 6,074 |
Unrealized Losses | ||
Less than Twelve Months | (41) | 0 |
More than Twelve Months | 0 | (135) |
Total | (41) | (135) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 11,178 | 16,098 |
More than Twelve Months | 32,397 | 138,437 |
Total | 43,575 | 154,535 |
Unrealized Losses | ||
Less than Twelve Months | (55) | (266) |
More than Twelve Months | (474) | (5,469) |
Total | (529) | (5,735) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 0 | 3,335 |
More than Twelve Months | 798 | 60,078 |
Total | 798 | 63,413 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (37) |
More than Twelve Months | (10) | (1,324) |
Total | (10) | (1,361) |
Total obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 11,178 | 19,433 |
More than Twelve Months | 33,195 | 198,515 |
Total | 44,373 | 217,948 |
Unrealized Losses | ||
Less than Twelve Months | (55) | (303) |
More than Twelve Months | (484) | (6,793) |
Total | (539) | (7,096) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 307,885 | 72,240 |
More than Twelve Months | 254,915 | 846,671 |
Total | 562,800 | 918,911 |
Unrealized Losses | ||
Less than Twelve Months | (1,387) | (852) |
More than Twelve Months | (3,963) | (33,516) |
Total | (5,350) | (34,368) |
Trust preferred securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | 29,990 | 30,055 |
Total | 29,990 | 30,055 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (5,981) | (5,923) |
Total | (5,981) | (5,923) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 9,948 |
More than Twelve Months | 4,980 | 4,835 |
Total | 4,980 | 14,783 |
Unrealized Losses | ||
Less than Twelve Months | 0 | (52) |
More than Twelve Months | (20) | (165) |
Total | $ (20) | $ (217) |
Investment Securities - Contr_2
Investment Securities - Contractual Maturities of Debt Securities Held to Maturity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Amortized Cost | ||
Due in one year | $ 96,230 | |
Due after one year through five years | 170,615 | |
Due after five years through ten years | 216,437 | |
Due after ten years | 232,694 | |
Residential mortgage-backed securities | 1,620,119 | |
Amortized Cost | 2,336,095 | $ 2,068,246 |
Fair Value | ||
Due in one year | 97,223 | |
Due after one year through five years | 176,005 | |
Due after five years through ten years | 226,086 | |
Due after ten years | 229,834 | |
Residential mortgage-backed securities | 1,629,572 | |
Total investment securities held to maturity | $ 2,358,720 | $ 2,034,943 |
Investment Securities - Realize
Investment Securities - Realized Gains and Losses (Details) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Investments, Debt and Equity Securities [Abstract] | |||
Gross gains, sale transactions | $ 0 | $ 1,769 | $ 0 |
Gross losses, sale transactions | 0 | (3,881) | (25) |
Gains on sale transactions, net | 0 | (2,112) | (25) |
Gross gains, maturities and other securities transactions | 67 | 42 | 43 |
Gross losses, maturities and other securities transactions | (217) | (272) | (38) |
Gains (losses) on maturities and other securities transactions, net | (150) | (230) | 5 |
(Losses) gains on securities transactions, net | $ (150) | $ (2,342) | $ (20) |
Loans - Schedule of Loan Portfo
Loans - Schedule of Loan Portfolio (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 29,699,208 | $ 25,035,469 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,825,997 | 4,331,032 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 17,643,759 | 13,895,407 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 15,996,741 | 12,407,275 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,647,018 | 1,488,132 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,377,111 | 4,111,400 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,852,341 | 2,697,630 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 487,272 | 517,089 |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,451,623 | 1,319,571 |
Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 913,446 | 860,970 |
Non-PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23,069,609 | 20,845,383 |
Non-PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 4,143,983 | 3,590,375 |
Non-PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 12,398,610 | 11,034,657 |
Non-PCI Loans | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 10,902,893 | 9,912,309 |
Non-PCI Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,495,717 | 1,122,348 |
Non-PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,796,942 | 3,682,984 |
Non-PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 2,730,074 | 2,537,367 |
Non-PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 376,020 | 371,340 |
Non-PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,451,352 | 1,319,206 |
Non-PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 902,702 | 846,821 |
PCI Loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 6,629,599 | 4,190,086 |
PCI Loans | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 682,014 | 740,657 |
PCI Loans | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,245,149 | 2,860,750 |
PCI Loans | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,093,848 | 2,494,966 |
PCI Loans | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 151,301 | 365,784 |
PCI Loans | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 580,169 | 428,416 |
PCI Loans | Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 122,267 | 160,263 |
PCI Loans | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 111,252 | 145,749 |
PCI Loans | Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 271 | 365 |
PCI Loans | Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 10,744 | $ 14,149 |
Loans - Additional Information
Loans - Additional Information (Detail) - USD ($) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Non-PCI loans net of premiums and deferred loan fees | $ 12,600,000 | $ 21,500,000 | |
Loans | 29,699,208,000 | 25,035,469,000 | |
Loans transferred to loans held for sale | 1,234,022,000 | 289,633,000 | $ 313,201,000 |
Sales of loans | 0 | 0 | |
Net increase (decrease) in expected cash flows | $ (11,000,000) | 269,800,000 | |
Combined loan-to-value ratio home equity loan | 80.00% | ||
Accrued interest on non-accrual loans | $ 2,500,000 | 3,600,000 | $ 2,500,000 |
Number of consecutive months for performing restructured loans to be put on accrual status | 6 months | ||
TDRs not reported as non-accrual loans | $ 73,000,000 | 77,200,000 | |
Non-performing TDRs | 65,100,000 | 55,000,000 | |
Specific reserves for loan losses | 36,000,000 | 6,500,000 | |
Troubled debt restructuring, charge-offs | $ 4,900,000 | $ 0 | |
Number of days loans placed on non-accrual status | 90 days | 90 days | |
PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 6,629,599,000 | $ 4,190,086,000 | |
PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 6,800,000,000 | 4,400,000,000 | |
Commitments under unused lines of credit—credit card | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Unsecured loans | 8,200,000 | 10,400,000 | |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 4,377,111,000 | 4,111,400,000 | |
Loans transferred to loans held for sale | 436,500,000 | 289,600,000 | |
Residential mortgage | PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 580,169,000 | 428,416,000 | |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 17,643,759,000 | 13,895,407,000 | |
Loans transferred to loans held for sale | 798,000,000 | ||
Commercial real estate | PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 5,245,149,000 | 2,860,750,000 | |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 4,825,997,000 | 4,331,032,000 | |
Unsecured loans | 606,100,000 | 580,500,000 | |
Impaired loans | 250,000 | ||
Commercial and industrial | PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 682,014,000 | 740,657,000 | |
Commercial and industrial | Tax Medallion | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Taxi medallion loans | 114,800,000 | ||
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | 2,852,341,000 | 2,697,630,000 | |
Unsecured loans | 53,900,000 | 58,100,000 | |
Consumer | PCI Loans | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Loans | $ 122,267,000 | $ 160,263,000 |
Loans - Oritani Acquisition (De
Loans - Oritani Acquisition (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 01, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Interest component of expected cash flows (accretable yield) | $ (1,250,726) | $ (875,958) | $ (282,009) | |
Oritani Financial Corp. | ||||
Business Combination, Separately Recognized Transactions [Line Items] | ||||
Contractually required principal and interest | $ 4,017,103 | |||
Contractual cash flows not expected to be collected (non-accretable difference) | (36,084) | |||
Expected cash flows to be collected | 3,981,019 | |||
Interest component of expected cash flows (accretable yield) | (600,178) | |||
Fair value of acquired loans | $ 3,380,841 |
Loans - Changes in Accretable Y
Loans - Changes in Accretable Yield for PCI Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Certain Loans Acquired in Transfer Not Accounted for as Debt Securities, Accretable Yield Movement Schedule [Roll Forward] | ||
Balance, beginning of period | $ 875,958 | $ 282,009 |
Acquisition | 600,178 | 559,907 |
Accretion | (214,415) | (235,741) |
Net (decrease) increase in expected cash flows | (10,995) | 269,783 |
Balance, end of period | $ 1,250,726 | $ 875,958 |
Loans - Summary of Related Part
Loans - Summary of Related Party Loans (Detail) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Loans and Leases Receivable, Related Parties [Roll Forward] | |
Outstanding at beginning of year | $ 214,108 |
New loans and advances | 13,172 |
Repayments | (33,999) |
Outstanding at end of year | $ 193,281 |
Loans - Past Due, Non-Accrual a
Loans - Past Due, Non-Accrual and Current Non-Covered Loans by Loan Portfolio Class (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | $ 93,058 | $ 88,396 |
Total Past Due Loans | 161,284 | 156,101 |
Current Non-PCI Loans | 22,908,325 | 20,689,282 |
Total Non-PCI Loans | 23,069,609 | 20,845,383 |
30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 46,593 | 51,751 |
60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 14,315 | 8,142 |
Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 7,318 | 7,812 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 68,636 | 70,096 |
Total Past Due Loans | 86,549 | 93,105 |
Current Non-PCI Loans | 4,057,434 | 3,497,270 |
Total Non-PCI Loans | 4,143,983 | 3,590,375 |
Commercial and industrial | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 11,700 | 13,085 |
Commercial and industrial | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 2,227 | 3,768 |
Commercial and industrial | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 3,986 | 6,156 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 9,360 | 2,728 |
Total Past Due Loans | 19,354 | 15,635 |
Current Non-PCI Loans | 12,379,256 | 11,019,022 |
Total Non-PCI Loans | 12,398,610 | 11,034,657 |
Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 4,046 | 12,350 |
Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 5,369 | 530 |
Commercial real estate | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 579 | 27 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 9,004 | 2,372 |
Total Past Due Loans | 16,169 | 12,450 |
Current Non-PCI Loans | 10,886,724 | 9,899,859 |
Total Non-PCI Loans | 10,902,893 | 9,912,309 |
Commercial real estate | Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 2,560 | 9,521 |
Commercial real estate | Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 4,026 | 530 |
Commercial real estate | Commercial real estate | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 579 | 27 |
Commercial real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 356 | 356 |
Total Past Due Loans | 3,185 | 3,185 |
Current Non-PCI Loans | 1,492,532 | 1,119,163 |
Total Non-PCI Loans | 1,495,717 | 1,122,348 |
Commercial real estate | Construction | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 1,486 | 2,829 |
Commercial real estate | Construction | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 1,343 | 0 |
Commercial real estate | Construction | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 12,858 | 12,917 |
Total Past Due Loans | 36,235 | 33,239 |
Current Non-PCI Loans | 3,760,707 | 3,649,745 |
Total Non-PCI Loans | 3,796,942 | 3,682,984 |
Residential mortgage | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 17,143 | 16,576 |
Residential mortgage | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 4,192 | 2,458 |
Residential mortgage | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 2,042 | 1,288 |
Consumer loans | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 2,204 | 2,655 |
Total Past Due Loans | 19,146 | 14,122 |
Current Non-PCI Loans | 2,710,928 | 2,523,245 |
Total Non-PCI Loans | 2,730,074 | 2,537,367 |
Consumer loans | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 13,704 | 9,740 |
Consumer loans | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 2,527 | 1,386 |
Consumer loans | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 711 | 341 |
Consumer loans | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 1,646 | 2,156 |
Total Past Due Loans | 2,777 | 3,068 |
Current Non-PCI Loans | 373,243 | 368,272 |
Total Non-PCI Loans | 376,020 | 371,340 |
Consumer loans | Home equity | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 1,051 | 872 |
Consumer loans | Home equity | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 80 | 40 |
Consumer loans | Home equity | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 0 | 0 |
Consumer loans | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 334 | 80 |
Total Past Due Loans | 14,078 | 9,660 |
Current Non-PCI Loans | 1,437,274 | 1,309,546 |
Total Non-PCI Loans | 1,451,352 | 1,319,206 |
Consumer loans | Automobile | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 11,482 | 7,973 |
Consumer loans | Automobile | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 1,581 | 1,299 |
Consumer loans | Automobile | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 681 | 308 |
Consumer loans | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Non-Accrual Loans | 224 | 419 |
Total Past Due Loans | 2,291 | 1,394 |
Current Non-PCI Loans | 900,411 | 845,427 |
Total Non-PCI Loans | 902,702 | 846,821 |
Consumer loans | Other consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 1,171 | 895 |
Consumer loans | Other consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | 866 | 47 |
Consumer loans | Other consumer | Accruing Loans 90 Days Or More Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Past Due Loans | $ 30 | $ 33 |
Loans - Impaired Loans (Detail)
Loans - Impaired Loans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | $ 47,219 | $ 33,825 |
Recorded Investment With Related Allowance | 116,425 | 122,800 |
Total Recorded Investment | 163,644 | 156,625 |
Unpaid Contractual Principal Balance | 179,243 | 165,918 |
Related Allowance | 38,576 | 33,025 |
Commercial and industrial | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 14,617 | 8,339 |
Recorded Investment With Related Allowance | 86,243 | 89,513 |
Total Recorded Investment | 100,860 | 97,852 |
Unpaid Contractual Principal Balance | 114,875 | 104,007 |
Related Allowance | 36,662 | 29,684 |
Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 26,400 | 17,535 |
Recorded Investment With Related Allowance | 24,842 | 26,063 |
Total Recorded Investment | 51,242 | 43,598 |
Unpaid Contractual Principal Balance | 51,612 | 45,597 |
Related Allowance | 1,338 | 2,628 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 26,046 | 16,732 |
Recorded Investment With Related Allowance | 24,842 | 25,606 |
Total Recorded Investment | 50,888 | 42,338 |
Unpaid Contractual Principal Balance | 51,258 | 44,337 |
Related Allowance | 1,338 | 2,615 |
Commercial real estate | Construction | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 354 | 803 |
Recorded Investment With Related Allowance | 0 | 457 |
Total Recorded Investment | 354 | 1,260 |
Unpaid Contractual Principal Balance | 354 | 1,260 |
Related Allowance | 0 | 13 |
Residential mortgage | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 5,836 | 7,826 |
Recorded Investment With Related Allowance | 4,853 | 6,078 |
Total Recorded Investment | 10,689 | 13,904 |
Unpaid Contractual Principal Balance | 11,800 | 14,948 |
Related Allowance | 518 | 600 |
Consumer | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 366 | 125 |
Recorded Investment With Related Allowance | 487 | 1,146 |
Total Recorded Investment | 853 | 1,271 |
Unpaid Contractual Principal Balance | 956 | 1,366 |
Related Allowance | 58 | 113 |
Consumer | Home equity | ||
Financing Receivable, Impaired [Line Items] | ||
Recorded Investment With No Related Allowance | 366 | 125 |
Recorded Investment With Related Allowance | 487 | 1,146 |
Total Recorded Investment | 853 | 1,271 |
Unpaid Contractual Principal Balance | 956 | 1,366 |
Related Allowance | $ 58 | $ 113 |
Loans - Average Recorded Invest
Loans - Average Recorded Investment and Interest Income Recognized on Impaired Loans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | $ 185,578 | $ 170,675 | $ 158,777 |
Interest Income Recognized | 4,496 | 4,707 | 4,373 |
Commercial and industrial | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 120,376 | 108,071 | 80,974 |
Interest Income Recognized | 1,849 | 1,822 | 1,459 |
Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 52,545 | 46,355 | 58,057 |
Interest Income Recognized | 2,246 | 2,358 | 1,994 |
Commercial real estate | Commercial real estate | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 52,191 | 44,838 | 54,799 |
Interest Income Recognized | 2,246 | 2,289 | 1,908 |
Commercial real estate | Construction | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 354 | 1,517 | 3,258 |
Interest Income Recognized | 0 | 69 | 86 |
Residential mortgage | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 12,081 | 15,384 | 15,451 |
Interest Income Recognized | 390 | 506 | 760 |
Consumer | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 576 | 865 | 4,295 |
Interest Income Recognized | 11 | 21 | 160 |
Consumer | Home equity | |||
Accounts, Notes, Loans and Financing Receivable [Line Items] | |||
Average Recorded Investment | 576 | 865 | 4,295 |
Interest Income Recognized | $ 11 | $ 21 | $ 160 |
Loans - Pre-Modification and Po
Loans - Pre-Modification and Post-Modification Outstanding Recorded Investments (Detail) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 117 | 44 |
Pre-Modification Outstanding Recorded Investment | $ 81,515 | $ 24,025 |
Post-Modification Outstanding Recorded Investment | $ 77,182 | $ 23,623 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 111 | 25 |
Pre-Modification Outstanding Recorded Investment | $ 77,781 | $ 16,251 |
Post-Modification Outstanding Recorded Investment | $ 73,503 | $ 15,105 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 2 | 9 |
Pre-Modification Outstanding Recorded Investment | $ 3,143 | $ 6,175 |
Post-Modification Outstanding Recorded Investment | $ 3,098 | $ 6,956 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 2 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 3,143 | $ 5,643 |
Post-Modification Outstanding Recorded Investment | $ 3,098 | $ 6,600 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 1 | |
Pre-Modification Outstanding Recorded Investment | $ 532 | |
Post-Modification Outstanding Recorded Investment | $ 356 | |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 2 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 376 | $ 1,500 |
Post-Modification Outstanding Recorded Investment | $ 374 | $ 1,461 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Number of Contracts | contract | 2 | 2 |
Pre-Modification Outstanding Recorded Investment | $ 215 | $ 99 |
Post-Modification Outstanding Recorded Investment | $ 207 | $ 101 |
Loans - Troubled Debt Restructu
Loans - Troubled Debt Restructurings Subsequently Defaulted (Details) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019USD ($)contract | Dec. 31, 2018USD ($)contract | |
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 44 | 13 |
Recorded Investment | $ | $ 31,936 | $ 9,319 |
Commercial and industrial | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 43 | 10 |
Recorded Investment | $ | $ 31,782 | $ 8,829 |
Residential mortgage | ||
Financing Receivable, Troubled Debt Restructuring [Line Items] | ||
Number of Contracts | contract | 1 | 3 |
Recorded Investment | $ | $ 154 | $ 490 |
Loans - Risk Category of Loans
Loans - Risk Category of Loans (Detail) - Non-PCI Loans - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | $ 16,542,593 | $ 14,625,032 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 4,143,983 | 3,590,375 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 10,902,893 | 9,912,309 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 1,495,717 | 1,122,348 |
Pass | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 16,251,917 | 14,349,491 |
Pass | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 3,982,453 | 3,399,426 |
Pass | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 10,781,587 | 9,828,744 |
Pass | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 1,487,877 | 1,121,321 |
Special Mention | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 119,088 | 63,103 |
Special Mention | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 33,718 | 31,996 |
Special Mention | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 77,884 | 30,892 |
Special Mention | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 7,486 | 215 |
Substandard | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 109,425 | 144,842 |
Substandard | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 66,511 | 92,320 |
Substandard | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 42,560 | 51,710 |
Substandard | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 354 | 812 |
Doubtful | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 62,163 | 67,596 |
Doubtful | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 61,301 | 66,633 |
Doubtful | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | 862 | 963 |
Doubtful | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Total Non-PCI Loans | $ 0 | $ 0 |
Loans - Recorded Investment in
Loans - Recorded Investment in Loan Classes Based on Payment Activity (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Non-PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 6,527,016 | $ 6,220,351 |
Non-PCI Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,796,942 | 3,682,984 |
Non-PCI Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 376,020 | 371,340 |
Non-PCI Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,451,352 | 1,319,206 |
Non-PCI Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 902,702 | 846,821 |
Non-PCI Loans | Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,511,954 | 6,204,779 |
Non-PCI Loans | Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 3,784,084 | 3,670,067 |
Non-PCI Loans | Performing Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 374,374 | 369,184 |
Non-PCI Loans | Performing Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,451,018 | 1,319,126 |
Non-PCI Loans | Performing Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 902,478 | 846,402 |
Non-PCI Loans | Non-Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 15,062 | 15,572 |
Non-PCI Loans | Non-Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 12,858 | 12,917 |
Non-PCI Loans | Non-Performing Loans | Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,646 | 2,156 |
Non-PCI Loans | Non-Performing Loans | Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 334 | 80 |
Non-PCI Loans | Non-Performing Loans | Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 224 | 419 |
PCI Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,629,599 | 4,190,086 |
PCI Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 580,169 | 428,416 |
PCI Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 122,267 | 160,263 |
PCI Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 682,014 | 740,657 |
PCI Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,093,848 | 2,494,966 |
PCI Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 151,301 | 365,784 |
PCI Loans | Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 6,559,439 | 4,133,961 |
PCI Loans | Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 571,006 | 421,609 |
PCI Loans | Performing Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 120,356 | 158,502 |
PCI Loans | Performing Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 653,997 | 710,045 |
PCI Loans | Performing Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 5,065,388 | 2,478,990 |
PCI Loans | Performing Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 148,692 | 364,815 |
PCI Loans | Non-Performing Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 70,160 | 56,125 |
PCI Loans | Non-Performing Loans | Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 9,163 | 6,807 |
PCI Loans | Non-Performing Loans | Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 1,911 | 1,761 |
PCI Loans | Non-Performing Loans | Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 28,017 | 30,612 |
PCI Loans | Non-Performing Loans | Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | 28,460 | 15,976 |
PCI Loans | Non-Performing Loans | Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total Loans | $ 2,609 | $ 969 |
Allowance for Credit Losses - S
Allowance for Credit Losses - Summary of Allowance for Credit Losses (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Receivables [Abstract] | |||
Allowance for loan losses | $ 161,759 | $ 151,859 | $ 120,856 |
Allowance for unfunded letters of credit | 2,845 | 4,436 | |
Total allowance for credit losses | $ 164,604 | $ 156,295 |
Allowance for Credit Losses -_2
Allowance for Credit Losses - Summary of Provision for Credit Losses (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Receivables [Abstract] | |||||||||||
Provision for loan losses | $ 25,809 | $ 31,661 | $ 8,531 | ||||||||
Provision for unfunded letters of credit | (1,591) | 840 | 1,411 | ||||||||
Total provision for credit losses | $ 5,418 | $ 8,700 | $ 2,100 | $ 8,000 | $ 7,859 | $ 6,552 | $ 7,142 | $ 10,948 | $ 24,218 | $ 32,501 | $ 9,942 |
Allowance for Credit Losses -_3
Allowance for Credit Losses - Summary of Activity in Allowance for Loan Losses (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Allowance for loan losses: | |||
Beginning balance | $ 151,859 | $ 120,856 | |
Loans charged-off | (22,215) | (8,063) | |
Charged-off loans recovered | 6,306 | 7,405 | |
Net (charge-offs) recoveries | (15,909) | (658) | |
Provision for loan losses | 25,809 | 31,661 | $ 8,531 |
Ending balance | 161,759 | 151,859 | 120,856 |
Commercial and Industrial | |||
Allowance for loan losses: | |||
Beginning balance | 90,956 | 57,232 | |
Loans charged-off | (13,260) | (2,515) | |
Charged-off loans recovered | 2,397 | 4,623 | |
Net (charge-offs) recoveries | (10,863) | 2,108 | |
Provision for loan losses | 23,966 | 31,616 | |
Ending balance | 104,059 | 90,956 | 57,232 |
Commercial Real Estate | |||
Allowance for loan losses: | |||
Beginning balance | 49,650 | 54,954 | |
Loans charged-off | (158) | (348) | |
Charged-off loans recovered | 1,237 | 417 | |
Net (charge-offs) recoveries | 1,079 | 69 | |
Provision for loan losses | (5,056) | (5,373) | |
Ending balance | 45,673 | 49,650 | 54,954 |
Residential Mortgage | |||
Allowance for loan losses: | |||
Beginning balance | 5,041 | 3,605 | |
Loans charged-off | (126) | (223) | |
Charged-off loans recovered | 66 | 272 | |
Net (charge-offs) recoveries | (60) | 49 | |
Provision for loan losses | 79 | 1,387 | |
Ending balance | 5,060 | 5,041 | 3,605 |
Consumer | |||
Allowance for loan losses: | |||
Beginning balance | 6,212 | 5,065 | |
Loans charged-off | (8,671) | (4,977) | |
Charged-off loans recovered | 2,606 | 2,093 | |
Net (charge-offs) recoveries | (6,065) | (2,884) | |
Provision for loan losses | 6,820 | 4,031 | |
Ending balance | $ 6,967 | $ 6,212 | $ 5,065 |
Allowance for Credit Losses -_4
Allowance for Credit Losses - Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Impairment Methodology (Detail) - USD ($) | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | $ 38,576,000 | $ 33,025,000 | |
Collectively evaluated for impairment | 123,183,000 | 118,834,000 | |
Allowance for loan losses | 161,759,000 | 151,859,000 | $ 120,856,000 |
Individually evaluated for impairment | 163,644,000 | 156,625,000 | |
Collectively evaluated for impairment | 22,905,965,000 | 20,688,758,000 | |
Total loans | 29,699,208,000 | 25,035,469,000 | |
Loans acquired with discounts related to credit quality | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Allowance for loan losses | 0 | 0 | |
Total loans | 6,629,599,000 | 4,190,086,000 | |
Commercial and Industrial | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 36,662,000 | 29,684,000 | |
Collectively evaluated for impairment | 67,397,000 | 61,272,000 | |
Allowance for loan losses | 104,059,000 | 90,956,000 | 57,232,000 |
Individually evaluated for impairment | 100,860,000 | 97,852,000 | |
Collectively evaluated for impairment | 4,043,123,000 | 3,492,523,000 | |
Total loans | 4,825,997,000 | 4,331,032,000 | |
Commercial and Industrial | Loans acquired with discounts related to credit quality | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total loans | 682,014,000 | 740,657,000 | |
Commercial Real Estate | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 1,338,000 | 2,628,000 | |
Collectively evaluated for impairment | 44,335,000 | 47,022,000 | |
Allowance for loan losses | 45,673,000 | 49,650,000 | 54,954,000 |
Individually evaluated for impairment | 51,242,000 | 43,598,000 | |
Collectively evaluated for impairment | 12,347,368,000 | 10,991,059,000 | |
Total loans | 17,643,759,000 | 13,895,407,000 | |
Commercial Real Estate | Loans acquired with discounts related to credit quality | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total loans | 5,245,149,000 | 2,860,750,000 | |
Residential Mortgage | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 518,000 | 600,000 | |
Collectively evaluated for impairment | 4,542,000 | 4,441,000 | |
Allowance for loan losses | 5,060,000 | 5,041,000 | 3,605,000 |
Individually evaluated for impairment | 10,689,000 | 13,904,000 | |
Collectively evaluated for impairment | 3,786,253,000 | 3,669,080,000 | |
Total loans | 4,377,111,000 | 4,111,400,000 | |
Residential Mortgage | Loans acquired with discounts related to credit quality | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total loans | 580,169,000 | 428,416,000 | |
Consumer | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Individually evaluated for impairment | 58,000 | 113,000 | |
Collectively evaluated for impairment | 6,909,000 | 6,099,000 | |
Allowance for loan losses | 6,967,000 | 6,212,000 | $ 5,065,000 |
Individually evaluated for impairment | 853,000 | 1,271,000 | |
Collectively evaluated for impairment | 2,729,221,000 | 2,536,096,000 | |
Total loans | 2,852,341,000 | 2,697,630,000 | |
Consumer | Loans acquired with discounts related to credit quality | |||
Financing Receivable, Allowance for Credit Loss [Line Items] | |||
Total loans | $ 122,267,000 | $ 160,263,000 |
Leases - Components of ROU Asse
Leases - Components of ROU Assets and Lease Liabilities (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Leases [Abstract] | ||
Operating leases, ROU assets | $ 284,255 | |
Finance leases, ROU assets | 874 | |
Total ROU assets | 285,129 | |
Operating leases, liabilities | 308,060 | |
Finance leases, liabilities | 1,789 | |
Lease liabilities | $ 309,849 | $ 3,125 |
Leases - Components of Total Le
Leases - Components of Total Lease Cost (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Amortization of ROU assets | $ 291 |
Interest on lease liabilities | 191 |
Operating lease cost | 34,175 |
Short-term lease cost | 410 |
Variable lease cost | 3,573 |
Sublease income | (3,422) |
Total lease cost (included in net occupancy and equipment expense) | $ 35,218 |
Leases - Supplemental Cash Flow
Leases - Supplemental Cash Flow Information (Details) $ in Thousands | 12 Months Ended |
Dec. 31, 2019USD ($) | |
Leases [Abstract] | |
Operating cash flows from operating leases | $ 34,380 |
Operating cash flows from finance leases | 192 |
Financing cash flows from finance leases | $ 492 |
Leases - Supplemental Lease Inf
Leases - Supplemental Lease Information (Details) | Dec. 31, 2019 |
Leases [Abstract] | |
Weighted-average remaining lease term, operating lease | 12 years 9 months 18 days |
Weighted-average remaining lease term, finance lease | 3 years |
Weighted-average discount rate, operating lease | 3.68% |
Weighted-average discount rate, finance lease | 8.25% |
Leases - Narrative (Details)
Leases - Narrative (Details) $ in Thousands | 1 Months Ended | 3 Months Ended | 12 Months Ended | ||
Mar. 31, 2019USD ($)branchcorporate_locationproperty | Mar. 31, 2019USD ($)branchcorporate_locationproperty | Dec. 31, 2019USD ($) | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Sale Leaseback Transaction [Line Items] | |||||
Operating leases, ROU assets | $ 284,255 | ||||
Operating leases, liabilities | 308,060 | ||||
Operating lease cost | 34,175 | ||||
Sales-type and direct financing leases, lease receivable | 478,828 | $ 327,300 | |||
Sales-type and direct financing lease, unguaranteed residual asset | 477,100 | 326,200 | |||
Sales-type and direct financing leases, lease receivables | 1,700 | 1,100 | |||
Lease income | 19,400 | 14,700 | $ 13,600 | ||
Lease costs | 29,000 | 27,700 | |||
Sublease income | $ 3,500 | $ 3,900 | |||
Sale leaseback transaction, March 2019 | |||||
Sale Leaseback Transaction [Line Items] | |||||
Sale leaseback transaction, number of properties | property | 26 | 26 | |||
Sale leaseback transaction, number of branches | branch | 25 | 25 | |||
Sale leaseback transaction, number of corporate offices | corporate_location | 1 | 1 | |||
Sale-leaseback transaction sale price | $ 100,500 | ||||
Pre-tax net gain sale-leaseback | $ 78,500 | ||||
Operating leases, ROU assets | 78,400 | 78,400 | |||
Operating leases, liabilities | $ 78,400 | $ 78,400 | |||
Operating lease, term of contract | 12 years | 12 years | |||
Operating lease cost | $ 7,900 |
Leases - Maturity Analysis of L
Leases - Maturity Analysis of Lessor and Lessee Arrangements (Details) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Direct Financing and Sales-Type Leases | ||
2020 | $ 146,397 | |
2021 | 126,196 | |
2022 | 102,873 | |
2023 | 77,953 | |
2024 | 44,651 | |
Thereafter | 25,103 | |
Total lease payments | 523,173 | |
Less: present value discount | (44,345) | |
Total | 478,828 | $ 327,300 |
Operating Leases | ||
2020 | 36,022 | |
2021 | 35,393 | |
2022 | 33,918 | |
2023 | 30,745 | |
2024 | 29,142 | |
Thereafter | 228,644 | |
Total lease payments | 393,864 | |
Less: present value discount | (85,804) | |
Total | 308,060 | |
Finance Lease, Liability, Payment, Due [Abstract] | ||
2020 | 684 | |
2021 | 684 | |
2022 | 684 | |
2023 | 0 | |
2024 | 0 | |
Thereafter | 0 | |
Total lease payments | 2,052 | |
Less: present value discount | (263) | |
Total | $ 1,789 |
Leases - Leases under ASC 840 (
Leases - Leases under ASC 840 (Details) $ in Thousands | Dec. 31, 2019USD ($) |
Leases [Abstract] | |
Gross Rents, 2019 | $ 29,093 |
Gross Rents, 2020 | 29,379 |
Gross Rents, 2021 | 28,925 |
Gross Rents, 2022 | 27,562 |
Gross Rents, 2023 | 25,064 |
Gross Rents, Thereafter | 262,200 |
Gross Rents, Total lease payments | 402,223 |
Sublease Income, 2019 | 2,382 |
Sublease Income, 2020 | 2,290 |
Sublease Income, 2021 | 2,160 |
Sublease Income, 2022 | 2,002 |
Sublease Income, 2023 | 1,938 |
Sublease Income, Thereafter | 8,558 |
Sublease Income, Total lease payments | 19,330 |
Net Rents, 2019 | 26,711 |
Net Rents, 2020 | 27,089 |
Net Rents, 2021 | 26,765 |
Net Rents, 2022 | 25,560 |
Net Rents, 2023 | 23,126 |
Net Rents, Thereafter | 253,642 |
Net rents, total lease payments | $ 382,893 |
Premises and Equipment, Net (De
Premises and Equipment, Net (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 673,491 | $ 685,139 | |
Accumulated depreciation and amortization | (338,958) | (343,509) | |
Total premises and equipment, net | 334,533 | 341,630 | |
Depreciation and amortization | 29,400 | 27,600 | $ 24,800 |
Land | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 93,594 | 93,600 | |
Buildings | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 220,140 | 250,510 | |
Leasehold improvements | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | 85,042 | 77,425 | |
Furniture and equipment | |||
Property, Plant and Equipment [Line Items] | |||
Premises and equipment, gross | $ 274,715 | $ 263,604 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Line Items] | |||
Goodwill | $ 1,373,625 | $ 1,084,665 | $ 690,637 |
Goodwill from business combinations | 288,960 | 394,028 | |
Consumer Lending | |||
Goodwill [Line Items] | |||
Goodwill | 306,572 | 287,025 | 200,103 |
Goodwill from business combinations | 19,547 | 86,922 | |
Commercial Lending | |||
Goodwill [Line Items] | |||
Goodwill | 825,767 | 557,850 | 316,258 |
Goodwill from business combinations | 267,917 | 241,592 | |
Investment Management | |||
Goodwill [Line Items] | |||
Goodwill | 220,068 | 218,572 | 153,058 |
Goodwill from business combinations | 1,496 | 65,514 | |
Wealth Management | Consumer Lending | |||
Goodwill [Line Items] | |||
Goodwill | 21,218 | 21,218 | $ 21,218 |
Goodwill from business combinations | $ 0 | $ 0 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Detail) - USD ($) | 12 Months Ended | |||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2019 | |
Finite-Lived Intangible Assets [Line Items] | ||||
Goodwill impairment | $ 0 | $ 0 | $ 0 | |
Impairment of core deposits and intangibles | 0 | 0 | 0 | |
Amortization expense - other intangible assets | $ 18,100,000 | 18,400,000 | 10,000,000 | |
Core deposits | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period, years | 8 years 10 months 24 days | |||
Other | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period, years | 7 years 7 months 6 days | |||
Residential mortgage | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Aggregate principal balances of mortgage loans serviced | $ 3,400,000,000 | $ 3,200,000,000 | $ 2,800,000,000 | |
Oritani Financial Corp. | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Core deposit intangible assets | $ 20,690,000 | |||
Oritani Financial Corp. | Core deposits | ||||
Finite-Lived Intangible Assets [Line Items] | ||||
Weighted average amortization period, years | 10 years |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 199,932 | $ 171,769 |
Accumulated Amortization | (113,113) | (94,696) |
Valuation Allowance | (47) | (83) |
Net Intangible Assets | 86,772 | 76,990 |
Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 94,827 | 87,354 |
Accumulated Amortization | (70,095) | (63,161) |
Valuation Allowance | (47) | (83) |
Net Intangible Assets | 24,685 | 24,110 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 101,160 | 80,470 |
Accumulated Amortization | (40,384) | (29,136) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | 60,776 | 51,334 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 3,945 | 3,945 |
Accumulated Amortization | (2,634) | (2,399) |
Valuation Allowance | 0 | 0 |
Net Intangible Assets | $ 1,311 | $ 1,546 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Schedule of Change in Loan Servicing Rights (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Goodwill [Roll Forward] | |||
Balance at beginning of year | $ 24,193 | $ 22,084 | $ 20,368 |
Origination of loan servicing rights | 7,473 | 8,216 | 7,039 |
Amortization expense | (6,934) | (6,107) | (5,323) |
Balance at end of year | 24,732 | 24,193 | 22,084 |
Balance at beginning of year | (83) | (471) | (900) |
Impairment adjustment | 36 | 388 | 429 |
Balance at end of year | (47) | (83) | (471) |
Balance at end of year, net of valuation allowance | $ 24,685 | $ 24,110 | $ 21,613 |
Goodwill and Other Intangible_7
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Loan servicing rights | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | $ 4,263 |
2021 | 3,532 |
2022 | 2,929 |
2023 | 2,429 |
2024 | 2,016 |
Core deposits | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | 13,363 |
2021 | 11,607 |
2022 | 9,876 |
2023 | 8,146 |
2024 | 6,537 |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
2020 | 220 |
2021 | 206 |
2022 | 191 |
2023 | 131 |
2024 | $ 117 |
Deposits - Additional Informati
Deposits - Additional Information (Detail) - USD ($) $ in Millions | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Banking and Thrift [Abstract] | |||
Time deposits, $250,000 or more | $ 1,700 | $ 1,100 | |
Interest expense on time deposits of $250 thousand or more | 5.8 | 6.6 | $ 1.3 |
Deposits from certain directors, executive officers and their affiliates | $ 67.1 | $ 66.8 |
Deposits - Scheduled Maturities
Deposits - Scheduled Maturities of Time Deposits (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Banking and Thrift [Abstract] | ||
2020 | $ 8,507,854 | |
2021 | 657,366 | |
2022 | 343,224 | |
2023 | 134,800 | |
2024 | 56,775 | |
Thereafter | 17,926 | |
Total time deposits | $ 9,717,945 | $ 7,063,984 |
Borrowed Funds - Schedule of Sh
Borrowed Funds - Schedule of Short-Term Borrowings (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
Total short-term borrowings | $ 1,093,280 | $ 2,118,914 |
Short-term borrowings | ||
Debt Instrument [Line Items] | ||
FHLB advances | 940,000 | 1,732,000 |
Securities sold under agreements to repurchase | 153,280 | 261,914 |
Federal funds purchased | 0 | 125,000 |
Total short-term borrowings | $ 1,093,280 | $ 2,118,914 |
Borrowed Funds - Additional Inf
Borrowed Funds - Additional Information (Detail) - USD ($) | Jan. 01, 2018 | Aug. 31, 2016 | Jun. 30, 2015 | Sep. 30, 2013 | Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2019 |
Debt Instrument [Line Items] | ||||||||||||
Weighted average interest rate for short-term borrowings | 1.68% | 1.68% | 2.45% | |||||||||
Prepaid long-term FHLB advances | $ 635,000,000 | $ 635,000,000 | ||||||||||
Callable FHLB advances interest rate | 3.93% | 3.93% | ||||||||||
Loss on extinguishment of debt | $ (31,995,000) | $ 0 | $ 0 | $ 0 | $ 31,995,000 | $ 0 | $ 0 | |||||
FHLB advances callable for early redemption | 0 | 0 | ||||||||||
Subordinated notes, interest rate | 6.25% | |||||||||||
Fair value of securities | $ 2,300,000,000 | $ 2,300,000,000 | $ 2,400,000,000 | |||||||||
Interest rate swaps | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Notional amount of terminated derivative | $ 125,000,000 | |||||||||||
Securities sold under agreements to repurchase | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Weighted average interest rate for long-term borrowings | 1.94% | 1.94% | 3.70% | |||||||||
FHLB | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Weighted average interest rate for long-term borrowings | 2.23% | 2.23% | 3.13% | |||||||||
Subordinated notes | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Subordinated notes | $ 100,000,000 | |||||||||||
Subordinated notes, interest rate | 4.55% | |||||||||||
Net carrying value of subordinated debentures | $ 99,400,000 | $ 99,400,000 | $ 99,300,000 | |||||||||
Subordinated notes due September 2023 | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Subordinated notes | $ 125,000,000 | |||||||||||
Subordinated notes, interest rate | 5.125% | |||||||||||
Net carrying value of subordinated debentures | 132,400,000 | 132,400,000 | 134,200,000 | |||||||||
Effective interest rate | 3.32% | |||||||||||
Oritani Financial Corp. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Assumed FHLB advances | $ 430,130,000 | |||||||||||
USAmeriBancorp, Inc. | ||||||||||||
Debt Instrument [Line Items] | ||||||||||||
Subordinated notes | $ 60,000,000 | |||||||||||
Net carrying value of subordinated debentures | $ 60,600,000 | $ 60,600,000 | $ 61,100,000 |
Borrowed Funds - Schedule of Lo
Borrowed Funds - Schedule of Long-Term Borrowings (Detail) - Long-term borrowings - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
FHLB advances, net | $ 1,480,012 | $ 1,309,666 |
Securities sold under agreements to repurchase | 350,000 | 50,000 |
Subordinated debt, net | 292,414 | 294,602 |
Total long-term borrowings | 2,122,426 | 1,654,268 |
Unamortized prepayment penalties and other purchase accounting adjustments | 2,800 | 10,300 |
Deferred issuance costs | $ 1,200 | $ 1,400 |
Borrowed Funds - Schedule of FH
Borrowed Funds - Schedule of FHLB Repayment (Detail) - Long-term borrowings $ in Thousands | Dec. 31, 2019USD ($) |
Debt Instrument [Line Items] | |
2020 | $ 83,418 |
2021 | 994,768 |
2022 | 121,419 |
2023 | 78,164 |
2024 | 200,000 |
Thereafter | 5,000 |
Total long-term FHLB advances | $ 1,482,769 |
Borrowed Funds - Schedule of Re
Borrowed Funds - Schedule of Repayment of Long-Term Borrowings for Securities Sold Under Agreements to Repurchase (Detail) - Long-term borrowings - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Debt Instrument [Line Items] | ||
2021 | $ 300,000 | |
2022 | 50,000 | |
Total long-term securities sold under agreements to repurchase | $ 350,000 | $ 50,000 |
Junior Subordinated Debenture_3
Junior Subordinated Debentures Issued to Capital Trusts - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019 | |
Debt Disclosure [Abstract] | |
Maximum allowable period of interest deferment | 5 years |
Junior Subordinated Debenture_4
Junior Subordinated Debentures Issued to Capital Trusts - Schedule of Outstanding Junior Subordinated Debentures and Related Trust Preferred Securities Issued by Each Trust (Detail) - USD ($) | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Carrying value | $ 55,718,000 | $ 55,370,000 |
Junior Subordinated Debentures | GCB Capital Trust III | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Carrying value | 24,743,000 | 24,743,000 |
Contractual principal balance | 24,743,000 | $ 24,743,000 |
Junior Subordinated Debentures | GCB Capital Trust III | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 1.40% | |
Junior Subordinated Debentures | State Bancorp Capital Trust I | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Carrying value | 9,025,000 | $ 8,924,000 |
Contractual principal balance | 10,310,000 | $ 10,310,000 |
Junior Subordinated Debentures | State Bancorp Capital Trust I | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 3.45% | |
Junior Subordinated Debentures | State Bancorp Capital Trust II | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Carrying value | 8,468,000 | $ 8,337,000 |
Contractual principal balance | 10,310,000 | $ 10,310,000 |
Junior Subordinated Debentures | State Bancorp Capital Trust II | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 2.85% | |
Junior Subordinated Debentures | Aliant Statutory Trust II | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Carrying value | 13,482,000 | $ 13,366,000 |
Contractual principal balance | 15,464,000 | $ 15,464,000 |
Junior Subordinated Debentures | Aliant Statutory Trust II | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 1.80% | |
Trust Preferred Securities | GCB Capital Trust III | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Face value | $ 24,000,000 | $ 24,000,000 |
Trust Preferred Securities | GCB Capital Trust III | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 1.40% | 1.40% |
Trust Preferred Securities | State Bancorp Capital Trust I | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Face value | $ 10,000,000 | $ 10,000,000 |
Trust Preferred Securities | State Bancorp Capital Trust I | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 3.45% | 3.45% |
Trust Preferred Securities | State Bancorp Capital Trust II | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Face value | $ 10,000,000 | $ 10,000,000 |
Trust Preferred Securities | State Bancorp Capital Trust II | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 2.85% | 2.85% |
Trust Preferred Securities | Aliant Statutory Trust II | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Face value | $ 15,000,000 | $ 15,000,000 |
Trust Preferred Securities | Aliant Statutory Trust II | 3-month LIBOR | ||
Financial Instruments Subject to Mandatory Redemption by Settlement Terms [Line Items] | ||
Annual interest rate spread, percentage | 1.80% | 1.80% |
Benefit Plans - Additional Info
Benefit Plans - Additional Information (Detail) - USD ($) | Jan. 29, 2014 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 01, 2019 | Dec. 31, 2016 |
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Net actuarial loss expected to be recognized as a component of net periodic pension expense | $ 952,000 | |||||
Discount rate used to compute the obligation | 3.32% | 4.30% | ||||
Vesting percentage | 8.33% | |||||
Projected benefit obligation | $ 175,405,000 | $ 157,364,000 | ||||
Salary expense | 19,100,000 | 18,800,000 | $ 10,800,000 | |||
Expense for contributions to savings and investment plan | $ 8,600,000 | 8,500,000 | 7,100,000 | |||
Shares of common stock available for issuance (in shares) | 4,300,000 | |||||
Stock-based compensation expense | $ 14,726,000 | $ 19,472,000 | $ 12,204,000 | |||
Unrecognized stock-based compensation | $ 15,600,000 | |||||
Average remaining vesting, years | 2 years | |||||
Award vesting period | 1 year | |||||
Shares in connection with acquisition (in shares) | 3,130,171 | 1,803,165 | 0 | |||
Shares outstanding in connection with acquisition (in shares) | 3,453,516 | 1,051,787 | 446,980 | 732,489 | ||
Weighted average exercise price in connection with acquisition (in usd per share) | $ 8 | $ 5 | $ 0 | |||
Director Restricted Stock Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Additional fees | $ 0 | |||||
Stock Options and Restricted Stock | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Stock-based compensation expense | $ 15,000,000 | $ 19,500,000 | $ 12,200,000 | |||
Stock awards granted | $ 2,100,000 | $ 4,300,000 | $ 4,300,000 | |||
RSUs | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Vesting percentage | 33.33% | |||||
Granted (in shares) | 1,412,941 | 509,725 | 370,681 | |||
Vested (in shares) | 500,204 | 503,879 | 0 | |||
Award vesting period | 3 years | |||||
Time-based RSUs in connection with acquisition | 0 | 336,379 | 0 | |||
Stock-based compensation | $ 3,600,000 | $ 5,500,000 | $ 3,800,000 | |||
RSUs | Employee Stock Incentive Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Weighted average grant date fair value (usd per share) | $ 10.43 | $ 12.36 | $ 11.05 | |||
Performance Shares | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Award vesting period | 3 years | |||||
Restricted Stock | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Granted (in shares) | 0 | 1,263,144 | 608,786 | |||
Vested (in shares) | 547,653 | 1,128,521 | 736,575 | |||
Non-Employee Directors | Restricted Stock | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Granted (in shares) | 60,000 | 45,000 | ||||
Non-Management Director | Restricted Stock | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Granted (in shares) | 60,000 | 50,000 | ||||
Qualified Plan | Fixed income securities | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Target asset allocation percentage | 50.00% | |||||
Cumulative annual real return | 3.00% | |||||
Qualified Plan | Fixed income securities | Consumer Price Index | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Cumulative annual real return, period | 5 years | |||||
Qualified Plan | Fixed income securities | Merrill Lynch Intermediate Government/Corporate Index | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Cumulative annual real return, period | 3 years | |||||
Qualified Plan | Equity securities | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Target asset allocation percentage | 50.00% | |||||
Cumulative annual real return | 7.00% | |||||
Qualified Plan | Equity securities | Consumer Price Index | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Cumulative annual real return, period | 5 years | |||||
Qualified Plan | Equity securities | S&P 500 Index | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Cumulative annual real return, period | 3 years | |||||
Nonqualified Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Projected benefit obligation | $ 20,081,000 | $ 18,708,000 | ||||
Nonqualified Plan | Former Directors And Senior Management | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Projected benefit obligation | 451,000 | 512,000 | ||||
Obligation included in other comprehensive loss, net of tax | 803,000 | 872,000 | ||||
Obligation included in other comprehensive loss, tax | 314,000 | 345,000 | ||||
Obligation included in other comprehensive loss, net of tax, amount expected to be reclassified | 1,100,000 | |||||
Oritani Financial Corp. | Nonqualified Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Split dollar life insurance liability | 961,000 | |||||
Other pension plan | Nonqualified Plan | Non Qualified Plans For Former Directors | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Projected benefit obligation | 1,600,000 | $ 1,700,000 | ||||
Other pension plan | Oritani Financial Corp. | Qualified Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Withdrawal liability | $ 3,000,000 | |||||
Other pension plan | Oritani Financial Corp. | Nonqualified Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Projected benefit obligation | $ 1,600,000 | |||||
Benefits payment period | 5 years | |||||
Benefit equalization plans | Oritani Financial Corp. | Nonqualified Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Projected benefit obligation | $ 26,800,000 | |||||
Executive Supplemental Retirement Income Agreement | Oritani Financial Corp. | Nonqualified Plan | ||||||
Deferred Compensation Arrangement with Individual, Excluding Share-based Payments and Postretirement Benefits [Line Items] | ||||||
Projected benefit obligation | $ 13,000,000 | |||||
Benefits payment period | 20 years |
Benefit Plans - Change in Proje
Benefit Plans - Change in Projected Benefit Obligation (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Change in projected benefit obligation: | |||
Projected benefit obligation at beginning of year | $ 157,364 | $ 170,566 | |
Interest cost | 6,113 | 5,542 | $ 5,713 |
Actuarial loss (gain) | 20,001 | (11,540) | |
Benefits paid | (8,073) | (7,204) | |
Projected benefit obligation at end of year | 175,405 | 157,364 | 170,566 |
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 | $ 222,124 |
Defined Benefit Plan, Funded (Unfunded) Status of Plan [Abstract] | |||
Asset recognized | 61,216 | 53,144 | |
Accumulated benefit obligation | 175,405 | 157,364 | |
Accrued interest receivable | $ 641 | $ 660 |
Benefit Plans - Component of Ne
Benefit Plans - Component of Net Periodic Pension Expense (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Retirement Benefits [Abstract] | ||
Net actuarial loss | $ 46,248 | $ 42,893 |
Prior service cost | 357 | 392 |
Deferred tax benefit | (13,168) | (12,205) |
Total | $ 33,437 | $ 31,080 |
Benefit Plans - Projected Benef
Benefit Plans - Projected Benefit Obligation, Accumulated Benefit Obligation and Fair Value of Plan Assets for Non-Qualified Plans (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | $ 175,405 | $ 157,364 | $ 170,566 |
Accumulated benefit obligation | 175,405 | 157,364 | |
Fair value of plan assets | 236,621 | 210,508 | $ 222,124 |
Nonqualified Plan | |||
Defined Benefit Plan Disclosure [Line Items] | |||
Projected benefit obligation | 20,081 | 18,708 | |
Accumulated benefit obligation | 20,081 | 18,708 | |
Fair value of plan assets | $ 0 | $ 0 |
Benefit Plans - Components of N
Benefit Plans - Components of Net Periodic Pension Income for Qualified and Non-Qualified Plans (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
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) |
Benefit Plans - Qualified and N
Benefit Plans - Qualified and Non-Qualified Plan Assets and Benefit Obligations Recognized in Other Comprehensive Income or Loss (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Retirement Benefits [Abstract] | ||
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) |
Benefit Plans - Schedule of Exp
Benefit Plans - Schedule of Expected Future Benefit Payments (Detail) $ in Thousands | Dec. 31, 2019USD ($) |
Retirement Benefits [Abstract] | |
2020 | $ 8,533 |
2021 | 8,815 |
2022 | 9,002 |
2023 | 9,238 |
2024 | 9,367 |
Thereafter | $ 48,374 |
Benefit Plans - Assumptions Use
Benefit Plans - Assumptions Used to Determine Pension Expense (Detail) | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Retirement Benefits [Abstract] | |||
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% |
Benefit Plans - Fair Value Meas
Benefit Plans - Fair Value Measurement (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 |
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | $ 236,621 | $ 210,508 | $ 222,124 |
Qualified Plan | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 100.00% | 100.00% | |
Fair value of plan assets | $ 235,981 | $ 209,847 | |
Qualified Plan | Equity securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 32.00% | 28.00% | |
Fair value of plan assets | $ 75,633 | $ 59,447 | |
Qualified Plan | U.S. Treasury securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 22.00% | 24.00% | |
Fair value of plan assets | $ 51,732 | $ 50,838 | |
Qualified Plan | Corporate bonds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 21.00% | 24.00% | |
Fair value of plan assets | $ 51,221 | $ 50,003 | |
Qualified Plan | Mutual funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 18.00% | 18.00% | |
Fair value of plan assets | $ 42,119 | $ 37,178 | |
Qualified Plan | Cash and money market funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 4.00% | 4.00% | |
Fair value of plan assets | $ 9,013 | $ 7,429 | |
Qualified Plan | U.S. government agency securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Percent of total investments | 3.00% | 2.00% | |
Fair value of plan assets | $ 6,263 | $ 4,952 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 178,497 | 154,892 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | Equity securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 75,633 | 59,447 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. Treasury securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 51,732 | 50,838 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | Corporate bonds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | Mutual funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 42,119 | 37,178 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | Cash and money market funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 9,013 | 7,429 | |
Qualified Plan | Quoted Prices in Active Markets for Identical Assets (Level 1) | U.S. government agency securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 57,484 | 54,955 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | Equity securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | U.S. Treasury securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | Corporate bonds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 51,221 | 50,003 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | Mutual funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | Cash and money market funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Other Observable Inputs (Level 2) | U.S. government agency securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 6,263 | 4,952 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | Equity securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | U.S. Treasury securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | Corporate bonds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | Mutual funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | Cash and money market funds | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | 0 | 0 | |
Qualified Plan | Significant Unobservable Inputs (Level 3) | U.S. government agency securities | |||
Fair Value, Investments, Entities that Calculate Net Asset Value Per Share [Line Items] | |||
Fair value of plan assets | $ 0 | $ 0 |
Benefit Plans - Changes in Rest
Benefit Plans - Changes in Restricted Stock Awards Outstanding (Detail) - Restricted Stock - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award, Non-Option Equity Instruments, Outstanding [Roll Forward] | |||
Outstanding at beginning of year (in shares) | 1,720,968 | 1,771,702 | 2,100,816 |
Granted (in shares) | 0 | 1,263,144 | 608,786 |
Vested (in shares) | (547,653) | (1,128,521) | (736,575) |
Forfeited (in shares) | (114,634) | (185,357) | (201,325) |
Outstanding at end of year (in shares) | 1,058,681 | 1,720,968 | 1,771,702 |
Benefit Plans - Changes in RSUs
Benefit Plans - Changes in RSUs Outstanding (Details) - RSUs - shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||
Outstanding at beginning of year (in shares) | 1,378,886 | 1,114,962 | 744,281 |
Acquired in business combination (in shares) | 0 | 336,379 | 0 |
Granted (in shares) | 1,412,941 | 509,725 | 370,681 |
Vested (in shares) | (500,204) | (503,879) | 0 |
Forfeited (in shares) | (133,368) | (78,301) | 0 |
Outstanding at end of year (in shares) | 2,158,255 | 1,378,886 | 1,114,962 |
Benefit Plans - Stock Options A
Benefit Plans - Stock Options Activity (Detail) - $ / shares | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Shares | |||
Shares outstanding at beginning of year (in shares) | 1,051,787 | 446,980 | 732,489 |
Shares in connection with acquisition (in shares) | 3,130,171 | 1,803,165 | 0 |
Shares exercised (in shares) | (716,920) | (975,325) | 0 |
Shares forfeited or expired (in shares) | (11,522) | (223,033) | (285,509) |
Shares outstanding at end of year (in shares) | 3,453,516 | 1,051,787 | 446,980 |
Shares exercisable at year-end (in shares) | 3,339,517 | 604,003 | 446,980 |
Weighted Average Exercise Price | |||
Weighted average exercise price, outstanding at beginning of year (in usd per share) | $ 7 | $ 13 | $ 14 |
Weighted average exercise price in connection with acquisition (in usd per share) | 8 | 5 | 0 |
Weighted average exercise price, exercised (in usd per share) | 7 | 5 | 0 |
Weighted average exercise price, forfeited or expired (in usd per share) | 8 | 14 | 16 |
Weighted average exercise price, outstanding at end of year (in usd per share) | 8 | 7 | 13 |
Weighted average exercise price, exercisable at year-end (in usd per share) | $ 8 | $ 7 | $ 13 |
Benefit Plans - Stock Options O
Benefit Plans - Stock Options Outstanding (Detail) | 12 Months Ended |
Dec. 31, 2019$ / sharesshares | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Number of options outstanding (in shares) | shares | 3,339,517 |
Weighted Average Remaining Contractual Life in Years | 2 years 2 months 12 days |
Weighted average exercise price (in usd per share) | $ 8 |
$2-$4 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in usd per share) | 2 |
Range of exercise prices, upper range limit (in usd per share) | $ 4 |
Number of options outstanding (in shares) | shares | 124,105 |
Weighted Average Remaining Contractual Life in Years | 2 years 6 months |
Weighted average exercise price (in usd per share) | $ 3 |
4-6 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in usd per share) | 4 |
Range of exercise prices, upper range limit (in usd per share) | $ 6 |
Number of options outstanding (in shares) | shares | 153,317 |
Weighted Average Remaining Contractual Life in Years | 5 years 4 months 24 days |
Weighted average exercise price (in usd per share) | $ 5 |
6-8 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in usd per share) | 6 |
Range of exercise prices, upper range limit (in usd per share) | $ 8 |
Number of options outstanding (in shares) | shares | 2,718,834 |
Weighted Average Remaining Contractual Life in Years | 1 year 9 months 18 days |
Weighted average exercise price (in usd per share) | $ 7 |
8-10 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in usd per share) | 8 |
Range of exercise prices, upper range limit (in usd per share) | $ 10 |
Number of options outstanding (in shares) | shares | 112,000 |
Weighted Average Remaining Contractual Life in Years | 7 years 10 months 24 days |
Weighted average exercise price (in usd per share) | $ 10 |
10-12 | |
Share-based Payment Arrangement, Option, Exercise Price Range [Line Items] | |
Range of exercise prices, lower range limit (in usd per share) | 10 |
Range of exercise prices, upper range limit (in usd per share) | $ 12 |
Number of options outstanding (in shares) | shares | 231,261 |
Weighted Average Remaining Contractual Life in Years | 1 year 9 months 18 days |
Weighted average exercise price (in usd per share) | $ 11 |
Benefit Plans - Changes in Dire
Benefit Plans - Changes in Director's Restricted Stock Awards (Detail) - Director's Restricted Stock - shares | 12 Months Ended | |
Dec. 31, 2018 | Dec. 31, 2017 | |
Changes in Director's Restricted Stock Awards | ||
Outstanding at beginning of year (in shares) | 17,885 | 55,510 |
Vested (in shares) | (17,885) | (37,625) |
Outstanding at end of year (in shares) | 0 | 17,885 |
Income Taxes - Additional Infor
Income Taxes - Additional Information (Detail) | 3 Months Ended | 12 Months Ended | 36 Months Ended | ||
Mar. 31, 2019fund | Dec. 31, 2019USD ($)fundsolar_generator_unit | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | Dec. 31, 2015USD ($)tax_opinion | |
Income Taxes [Line Items] | |||||
Tax benefit related to effects of TCJA | $ 2,300,000 | ||||
Statutory federal income tax rate | 21.00% | 21.00% | 35.00% | ||
Number of federal renewable energy tax credit funds | fund | 3 | 3 | |||
Number of solar generator units | solar_generator_unit | 512 | ||||
Federal tax credit benefit | $ 22,800,000 | ||||
Number of tax opinions | tax_opinion | 2 | ||||
Tax credit recognized and measured for each tax position (as a percent) | 100.00% | ||||
Percentage of solar generator units positively identified (over) | 97.00% | ||||
Increase to the provision for income taxes | $ 31,100,000 | ||||
Uncertain tax position, accrued interest | 6,100,000 | $ 0 | $ 1,800,000 | ||
Federal | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | 72,100,000 | ||||
Obligations of states and state agencies | |||||
Income Taxes [Line Items] | |||||
Operating loss carryforwards | 85,300,000 | ||||
Capital loss carryforward | |||||
Income Taxes [Line Items] | |||||
Capital loss carryforwards | $ 3,100,000 |
Income Taxes - Summary of Incom
Income Taxes - Summary of Income Tax Expense (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Current expense: | |||||||||||
Federal | $ 95,317 | $ 51,147 | $ 8,483 | ||||||||
State | 36,457 | 28,898 | 5,500 | ||||||||
Total current expense | 131,774 | 80,045 | 13,983 | ||||||||
Deferred expense (benefit): | |||||||||||
Federal | 10,444 | (17,463) | 49,169 | ||||||||
State | 4,784 | 5,683 | 27,679 | ||||||||
Total deferred expense | 15,228 | (11,780) | 76,848 | ||||||||
Income tax expense | $ 36,967 | $ 25,307 | $ 27,532 | $ 57,196 | $ 18,074 | $ 18,046 | $ 18,961 | $ 13,184 | $ 147,002 | $ 68,265 | $ 90,831 |
Income Taxes - Summary of Defer
Income Taxes - Summary of Deferred Tax Assets and Liabilities (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Deferred tax assets: | ||
Allowance for loan losses | $ 44,486 | $ 42,882 |
Depreciation | 0 | 19,111 |
Employee benefits | 28,263 | 13,301 |
Investment securities, including other-than-temporary impairment losses | 0 | 13,222 |
Net operating loss carryforwards | 19,768 | 21,570 |
Purchase accounting | 41,857 | 33,629 |
Other | 19,904 | 22,104 |
Total deferred tax assets | 154,278 | 165,819 |
Deferred tax liabilities: | ||
Pension plans | 19,686 | 18,786 |
Depreciation | 4,527 | 0 |
Investment securities, including other-than-temporary impairment losses | 2,319 | 0 |
Other investments | 7,731 | 17,758 |
Core deposit intangibles | 16,620 | 14,223 |
Other | 13,665 | 8,858 |
Total deferred tax liabilities | 64,548 | 59,625 |
Valuation Allowance | 916 | 733 |
Net deferred tax asset (included in other assets) | $ 88,814 | $ 105,461 |
Income Taxes - Summary of Inc_2
Income Taxes - Summary of Income Tax Reconciliation (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income Tax Disclosure [Abstract] | |||||||||||
Federal income tax at expected statutory rate | $ 95,927 | $ 69,235 | $ 88,458 | ||||||||
State income tax expense, net of federal tax effect | 32,581 | 23,851 | 21,046 | ||||||||
Tax-exempt interest, net of interest incurred to carry tax-exempt securities | (3,118) | (3,974) | (5,245) | ||||||||
Bank owned life insurance | (1,637) | (1,734) | (2,568) | ||||||||
Tax credits from securities and other investments | (11,636) | (20,798) | (27,037) | ||||||||
FDIC insurance premium | 2,507 | 3,318 | 0 | ||||||||
Impact of the Tax Act | 0 | (2,274) | 15,441 | ||||||||
Addition to reserve for uncertainties | 31,123 | 0 | 0 | ||||||||
Other, net | 1,255 | 641 | 736 | ||||||||
Income tax expense | $ 36,967 | $ 25,307 | $ 27,532 | $ 57,196 | $ 18,074 | $ 18,046 | $ 18,961 | $ 13,184 | $ 147,002 | $ 68,265 | $ 90,831 |
Income Taxes - Summary of Recon
Income Taxes - Summary of Reconciliation of Gross Unrecognized Tax Benefits (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Reconciliation of Gross Unrecognized Tax Benefits | |||
Beginning balance | $ 0 | $ 4,238 | $ 16,144 |
Additions based on tax positions related to prior years | 31,918 | 0 | 1,121 |
Settlements with taxing authorities | 0 | 0 | (13,027) |
Reductions due to expiration of statute of limitations | 0 | (4,238) | 0 |
Ending balance | $ 31,918 | $ 0 | $ 4,238 |
Tax Credit Investments - Afford
Tax Credit Investments - Affordable Housing Tax Credit Investments, Other Tax Credit Investments, and Related Unfunded Commitments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Other Assets: | ||
Other tax credit investments, net | $ 59,100 | |
Other Assets | ||
Other Assets: | ||
Affordable housing tax credit investments, net | 25,049 | $ 36,961 |
Other tax credit investments, net | 59,081 | 68,052 |
Total tax credit investments, net | 84,130 | 105,013 |
Other Liabilities | ||
Other Liabilities: | ||
Unfunded affordable housing tax credit commitments | 1,539 | 4,520 |
Unfunded other tax credit commitments | 1,139 | 8,756 |
Total unfunded tax credit commitments | $ 2,678 | $ 13,276 |
Tax Credit Investments - Affor
Tax Credit Investments - Affordable Housing Tax Credit Investments and Other Tax Credit Investments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | ||
Dec. 31, 2017 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Components of Income Tax Expense | ||||
Affordable housing tax credits and other tax benefits | $ 6,757 | $ 6,713 | $ 7,383 | |
Other tax credit investment credits and tax benefits | 10,205 | 21,351 | 35,530 | |
Total reduction in income tax expense | 16,962 | 28,064 | 42,913 | |
Amortization Recorded in Non-Interest Expenses | ||||
Amortization of Tax Credit Investments | ||||
Affordable housing tax credit investment losses | 2,184 | 1,880 | 2,748 | |
Affordable housing tax credit investment impairment losses | $ 2,200 | 3,295 | 2,544 | 4,684 |
Other tax credit investment losses | 5,668 | 1,970 | 2,866 | |
Other tax credit investment impairment losses | $ 2,100 | 9,245 | 17,806 | 31,449 |
Total amortization of tax credit investments recorded in non-interest expense | $ 20,392 | $ 24,200 | $ 41,747 |
Tax Credit Investments - Narrat
Tax Credit Investments - Narrative (Details) $ in Thousands | 3 Months Ended | 12 Months Ended | |||
Mar. 31, 2019USD ($)fund | Dec. 31, 2017USD ($) | Dec. 31, 2019USD ($)fund | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Schedule of Equity Method Investments [Line Items] | |||||
Number of federal renewable energy tax credit funds | fund | 3 | 3 | |||
Federal renewable energy tax credit investments, net | $ 2,400 | ||||
Federal renewable energy tax credit investments, net, amount per fund | 800 | ||||
Other tax credit investments, net | 59,100 | ||||
Other than temporary impairment losses on other tax credits investments | $ 2,400 | ||||
Amortization Recorded in Non-Interest Expenses | |||||
Schedule of Equity Method Investments [Line Items] | |||||
Affordable housing tax credit investment impairment losses | $ 2,200 | 3,295 | $ 2,544 | $ 4,684 | |
Other tax credit investment impairment losses | $ 2,100 | $ 9,245 | $ 17,806 | $ 31,449 |
Commitments and Contingencies -
Commitments and Contingencies - Summary of Financial Instruments with Off-Balance Sheet Risk (Detail) - USD ($) $ in Thousands | 12 Months Ended | |
Dec. 31, 2019 | Dec. 31, 2018 | |
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commitments to sell loans | $ 68,492 | $ 58,897 |
Standby letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 296,036 | 316,941 |
Commercial letters of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Commercial letters of credit | 2,887 | 3,100 |
Commitments under commercial loans and lines of credit | Commitments under commercial loans and lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 5,550,967 | 5,164,186 |
Home equity and other revolving lines of credit | Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 1,379,581 | 1,178,306 |
Outstanding residential mortgage loan commitments | Outstanding residential mortgage loan commitments | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | 233,291 | 235,310 |
Commitments under unused lines of credit—credit card | Unused lines of credit | ||
Fair Value, Off-balance Sheet Risks, Disclosure Information [Line Items] | ||
Financial instruments with off-balance sheet risk | $ 44,527 | $ 66,229 |
Commitments and Contingencies_2
Commitments and Contingencies - Additional Information (Detail) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019USD ($)contractswap | Dec. 31, 2018USD ($) | Dec. 31, 2017USD ($) | |
Commitments And Contingencies [Line Items] | |||
Aggregate fair value of net liability position | $ 17,200 | ||
Derivatives designated as hedging instruments | |||
Commitments And Contingencies [Line Items] | |||
Notional Amount | 187,281 | $ 339,536 | |
Derivatives not designated as hedging instruments: | |||
Commitments And Contingencies [Line Items] | |||
Notional Amount | 4,255,866 | 3,495,825 | |
Interest rate swaps | |||
Commitments And Contingencies [Line Items] | |||
Accumulated net after-tax losses related to effective cash flow hedges | 3,700 | 4,000 | |
Reclassified to interest expense | 2,300 | ||
Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Commitments And Contingencies [Line Items] | |||
Notional Amount | $ 4,113,106 | 3,390,578 | |
Number of derivative instruments | swap | 23 | ||
Cash flow hedge | Interest rate swaps | Derivatives designated as hedging instruments | Interest Rate Swaps Due Between November 2019 And November 2020 | |||
Commitments And Contingencies [Line Items] | |||
Number of derivative contracts held (in contract) | contract | 1 | ||
Notional amount of derivative asset | $ 75,000 | ||
Fixed interest rate | 2.97% | ||
Cash flow hedge | Interest rate swaps | Derivatives designated as hedging instruments | Interest Rate Swaps Due Between March 2019 And September 2020 | |||
Commitments And Contingencies [Line Items] | |||
Number of derivative contracts held (in contract) | contract | 2 | ||
Cash flow hedge | Interest rate swap 1 | Derivatives designated as hedging instruments | Interest Rate Swaps Due Between March 2019 And September 2020 | |||
Commitments And Contingencies [Line Items] | |||
Notional amount of derivative asset | $ 50,000 | ||
Fixed interest rate | 2.87% | ||
Cash flow hedge | Interest rate swap 2 | Derivatives designated as hedging instruments | Interest Rate Swaps Due Between March 2019 And September 2020 | |||
Commitments And Contingencies [Line Items] | |||
Notional amount of derivative asset | $ 55,000 | ||
Fixed interest rate | 2.88% | ||
Fair value hedge | Interest rate swaps | Derivatives designated as hedging instruments | |||
Commitments And Contingencies [Line Items] | |||
Number of derivative contracts held (in contract) | contract | 1 | ||
Notional Amount | $ 7,281 | 7,536 | |
Fair value hedge | Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Commitments And Contingencies [Line Items] | |||
Notional Amount | $ 10,400 | ||
Number of derivative instruments | swap | 1 | ||
Risk Participation | Interest rate swaps | Derivatives not designated as hedging instruments: | |||
Commitments And Contingencies [Line Items] | |||
Notional Amount | $ 152,900 | ||
Non-interest income | Fair value hedge | Interest rate swaps | |||
Commitments And Contingencies [Line Items] | |||
Fee income | $ 33,400 | $ 16,400 | $ 8,300 |
Commitments and Contingencies_3
Commitments and Contingencies - Consolidated Statements of Financial Condition Related to Fair Value of Derivative Financial Instruments (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Interest rate caps and swaps | ||
Derivative [Line Items] | ||
Other Assets | $ 0 | $ 0 |
Other Liabilities | 43,733 | 22,907 |
Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
Notional Amount | 187,281 | 339,536 |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Notional Amount | 4,255,866 | 3,495,825 |
Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 4,113,106 | 3,390,578 |
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 142,760 | 105,247 |
Other Assets | Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Other Assets | Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Other Assets | 158,532 | 48,979 |
Other Assets | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 158,382 | 48,642 |
Other Assets | Derivatives not designated as hedging instruments: | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Other Assets | 150 | 337 |
Other Liabilities | Derivatives designated as hedging instruments: | ||
Derivative [Line Items] | ||
Other Liabilities | 1,713 | 374 |
Other Liabilities | Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Other Liabilities | 42,213 | 23,307 |
Other Liabilities | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Liabilities | 42,020 | 22,533 |
Other Liabilities | Derivatives not designated as hedging instruments: | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Other Liabilities | 193 | 774 |
Cash flow hedge | Derivatives designated as hedging instruments: | Interest rate caps and swaps | ||
Derivative [Line Items] | ||
Notional Amount | 180,000 | 332,000 |
Cash flow hedge | Other Assets | Derivatives designated as hedging instruments: | Interest rate caps and swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Cash flow hedge | Other Liabilities | Derivatives designated as hedging instruments: | Interest rate caps and swaps | ||
Derivative [Line Items] | ||
Other Liabilities | 1,484 | 27 |
Fair value hedge | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 7,281 | 7,536 |
Fair value hedge | Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 10,400 | |
Fair value hedge | Other Assets | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Fair value hedge | Other Liabilities | Derivatives designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Other Liabilities | $ 229 | $ 347 |
Commitments and Contingencies_4
Commitments and Contingencies - Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | |||||||||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | $ (105,232) | $ (108,636) | $ (107,508) | $ (101,576) | $ (92,541) | $ (80,241) | $ (69,366) | $ (59,897) | $ (422,952) | $ (302,045) | $ (174,107) |
Amount of (loss) gain recognized in other comprehensive income | (1,380) | 2,651 | 1,005 | ||||||||
Amounts Reclassified from Accumulated Other Comprehensive Loss | |||||||||||
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | |||||||||||
Amount of loss reclassified from accumulated other comprehensive loss to interest expense | $ (1,808) | $ (3,493) | $ (8,579) |
Commitments and Contingencies_5
Commitments and Contingencies - Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Fair Value (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | |||
Gains (losses) included in the consolidated statements of income | $ 898 | $ 792 | $ 744 |
Fair value hedge | Interest rate swaps | Interest income | |||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | |||
Gains (losses) included in the consolidated statements of income | 133 | 290 | 348 |
Fair value hedge | Interest rate caps and swaps | Derivatives designated as hedging instruments | Interest income | |||
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | |||
Gains (losses) included in the consolidated statements of income | $ (133) | $ (290) | $ (348) |
Commitments and Contingencies C
Commitments and Contingencies Commitments and Contingencies - Hedged Assets Related to Interest Rate Derivatives (Details) - Derivatives designated as hedging instruments - Interest rate swaps - Fair value hedge - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Derivative [Line Items] | ||
Carrying Amount of the Hedged Asset | $ 7,510 | $ 7,882 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset | $ 229 | $ 346 |
Commitments and Contingencies_6
Commitments and Contingencies - Gains (Losses) Related to Derivative Instruments Not Designated as Hedging Instruments (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Non-designated hedge interest rate derivatives | |||
Other non-interest expense | $ 898 | $ 792 | $ 744 |
Balance Sheet Offsetting - Summ
Balance Sheet Offsetting - Summary of Valley's Financial Instruments that are Eligible for Offset (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Offsetting Liabilities | ||
Gross Amounts Recognized | $ 393,733 | $ 172,907 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 393,733 | 172,907 |
Gross Amounts Not Offset, Financial Instruments | (118) | (1,214) |
Gross Amounts Not Offset, Cash Collateral | (366,881) | (151,852) |
Net Amount | 26,734 | 19,841 |
Repurchase agreements | ||
Offsetting Liabilities | ||
Gross Amounts Recognized | 350,000 | 150,000 |
Gross Amounts Offset | 0 | 0 |
Total long-term securities sold under agreements to repurchase | 350,000 | 150,000 |
Gross Amounts Not Offset, Financial Instruments | 0 | 0 |
Gross Amounts Not Offset, Cash Collateral | (350,000) | (150,000) |
Net Amount | 0 | 0 |
Interest rate swaps | ||
Offsetting Assets | ||
Gross Amounts Recognized | 158,382 | 48,642 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 158,382 | 48,642 |
Gross Amounts Not Offset, Financial Instruments | (118) | (1,214) |
Gross Amounts Not Offset, Cash Collateral | 0 | 0 |
Net Amount | 158,264 | 47,428 |
Offsetting Liabilities | ||
Gross Amounts Recognized | 43,733 | 22,907 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 43,733 | 22,907 |
Gross Amounts Not Offset, Financial Instruments | (118) | (1,214) |
Gross Amounts Not Offset, Cash Collateral | (16,881) | (1,852) |
Net Amount | $ 26,734 | $ 19,841 |
Regulatory and Capital Requir_3
Regulatory and Capital Requirements - Schedule of Actual Capital Positions and Ratios under Banking Regulations (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 |
Total Risk-based Capital | ||
Risk-based capital actual, amount | $ 3,427,134 | $ 2,786,971 |
Risk-based capital actual, ratio | 11.72% | 11.34% |
Risk-based capital minimum capital requirements, amount | $ 3,070,687 | $ 2,426,975 |
Risk-based capital minimum capital requirements, ratio | 10.50% | 9.875% |
Common Equity Tier 1 Capital | ||
Common equity tier 1 capital, amount | $ 2,754,524 | $ 2,071,871 |
Common equity tier 1 capital, ratio | 9.42% | 8.43% |
Common equity tier 1 capital | $ 2,047,125 | $ 1,566,781 |
Common equity tier 1 capital minimum capital requirements, ratio | 7.00% | 6.375% |
Tier 1 Risk-based Capital | ||
Tier 1 risk-based capital actual, amount | $ 2,968,530 | $ 2,286,676 |
Tier 1 risk-based capital actual, ratio | 10.15% | 9.30% |
Tier 1 risk-based capital minimum capital requirements, amount | $ 2,485,795 | $ 1,935,435 |
Tier 1 risk-based capital minimum capital requirements, ratio | 8.50% | 7.875% |
Tier 1 Leverage Capital | ||
Tier 1 leverage capital actual, amount | $ 2,968,530 | $ 2,286,676 |
Tier 1 leverage capital actual, ratio | 8.76% | 7.57% |
Tier 1 leverage capital minimum capital requirements, amount | $ 1,355,378 | $ 1,208,882 |
Tier 1 leverage capital minimum capital requirements, ratio | 4.00% | 4.00% |
Valley National Bank | ||
Total Risk-based Capital | ||
Risk-based capital actual, amount | $ 3,416,674 | $ 2,698,654 |
Risk-based capital actual, ratio | 11.69% | 10.99% |
Risk-based capital minimum capital requirements, amount | $ 3,069,894 | $ 2,424,059 |
Risk-based capital minimum capital requirements, ratio | 10.50% | 9.875% |
Risk-based capital to be well capitalized under prompt corrective action provision, amount | $ 2,923,709 | $ 2,454,743 |
Risk-based capital to be well capitalized under prompt corrective action provision, ratio | 10.00% | 10.00% |
Common Equity Tier 1 Capital | ||
Common equity tier 1 capital, amount | $ 3,152,070 | $ 2,442,359 |
Common equity tier 1 capital, ratio | 10.78% | 9.95% |
Common equity tier 1 capital | $ 2,046,596 | $ 1,564,899 |
Common equity tier 1 capital minimum capital requirements, ratio | 7.00% | 6.375% |
Common equity tier 1 capital to be well capitalized under prompt corrective action provision, amount | $ 1,900,411 | $ 1,595,583 |
Common equity tier 1 capital to be well capitalized under prompt corrective action provision, ratio | 6.50% | 6.50% |
Tier 1 Risk-based Capital | ||
Tier 1 risk-based capital actual, amount | $ 3,152,070 | $ 2,442,359 |
Tier 1 risk-based capital actual, ratio | 10.78% | 9.95% |
Tier 1 risk-based capital minimum capital requirements, amount | $ 2,485,153 | $ 1,933,110 |
Tier 1 risk-based capital minimum capital requirements, ratio | 8.50% | 7.875% |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provision, amount | $ 2,338,967 | $ 1,963,794 |
Tier 1 risk-based capital to be well capitalized under prompt corrective action provision, ratio | 8.00% | 8.00% |
Tier 1 Leverage Capital | ||
Tier 1 leverage capital actual, amount | $ 3,152,070 | $ 2,442,359 |
Tier 1 leverage capital actual, ratio | 9.31% | 8.09% |
Tier 1 leverage capital minimum capital requirements, amount | $ 1,354,693 | $ 1,207,039 |
Tier 1 leverage capital minimum capital requirements, ratio | 4.00% | 4.00% |
Tier 1 leverage capital to be well capitalized under prompt corrective action provision, amount | $ 1,693,366 | $ 1,508,798 |
Tier 1 leverage capital to be well capitalized under prompt corrective action provision, ratio | 5.00% | 5.00% |
Common and Preferred Stock (Det
Common and Preferred Stock (Detail) - USD ($) | Aug. 03, 2017 | Jun. 19, 2015 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jun. 30, 2025 | Sep. 30, 2022 | Dec. 31, 2007 |
Common Stock [Line Items] | ||||||||
Net proceeds from issuance of common stock | $ 2,957,000 | $ 2,704,000 | $ 8,207,000 | |||||
Repurchase Plan | ||||||||
Common Stock [Line Items] | ||||||||
Amount authorized under share repurchase program | $ 4,700,000 | |||||||
Number of shares repurchased (in shares) | 0 | 0 | 0 | |||||
Other Stock Repurchases | ||||||||
Common Stock [Line Items] | ||||||||
Number of shares repurchased (in shares) | 175,000 | 441,000 | 218,000 | |||||
Average price of shares purchased (in usd per share) | $ 10.45 | $ 11.83 | $ 12.12 | |||||
Dividend Reinvestment Plan | ||||||||
Common Stock [Line Items] | ||||||||
Number of shares reissued from treasury stock (in shares) | 87,000 | 713,000 | ||||||
Proceeds from treasury stock reissued | $ 1,000,000 | $ 8,200,000 | ||||||
Series A Preferred Stock | ||||||||
Common Stock [Line Items] | ||||||||
Stock issued (in shares) | 4,600,000 | |||||||
Liquidation preference per share (in usd per share) | $ 25 | |||||||
Fixed dividend rate per annum | 6.25% | |||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 111,600,000 | |||||||
Series A Preferred Stock | LIBOR | Forecast | ||||||||
Common Stock [Line Items] | ||||||||
Spread on variable dividend rate per annum | 3.85% | |||||||
Series B Preferred Stock | ||||||||
Common Stock [Line Items] | ||||||||
Stock issued (in shares) | 4,000,000 | |||||||
Liquidation preference per share (in usd per share) | $ 25 | |||||||
Fixed dividend rate per annum | 5.50% | |||||||
Proceeds from issuance of preferred stock, net of issuance costs | $ 98,100,000 | |||||||
Series B Preferred Stock | LIBOR | Forecast | ||||||||
Common Stock [Line Items] | ||||||||
Spread on variable dividend rate per annum | 3.578% |
Other Comprehensive Income - Sc
Other Comprehensive Income - Schedule of Comprehensive Income (Detail) - USD ($) $ in Thousands | 12 Months Ended | ||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before reclassification, net of tax | $ 35,712 | $ (28,209) | $ (1,296) |
Reclassification, net of tax | 1,505 | 5,324 | 5,311 |
Net change before tax | 53,045 | (32,185) | 7,611 |
Net change, tax | (15,828) | 9,300 | (3,596) |
Other comprehensive income (loss), net | 37,217 | (22,885) | 4,015 |
Unrealized Gains and Losses on AFS Securities | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before reclassification, before tax | 54,723 | (32,123) | 1,485 |
Before reclassification, tax | (15,461) | 9,191 | (635) |
Before reclassification, net of tax | 39,262 | (22,932) | 850 |
Reclassification adjustment before tax | 150 | 2,873 | (264) |
Reclassification, tax | (31) | (636) | 108 |
Reclassification, net of tax | 119 | 2,237 | (156) |
Net change before tax | 54,873 | (29,250) | 1,221 |
Net change, tax | (15,492) | 8,555 | (527) |
Other comprehensive income (loss), net | 39,381 | (20,695) | 694 |
Unrealized Gains and Losses on Derivatives | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before reclassification, before tax | (1,380) | 2,651 | 1,005 |
Before reclassification, tax | 391 | (777) | (429) |
Before reclassification, net of tax | (989) | 1,874 | 576 |
Reclassification adjustment before tax | 1,808 | 3,493 | 8,579 |
Reclassification, tax | (517) | (999) | (3,551) |
Reclassification, net of tax | 1,291 | 2,494 | 5,028 |
Net change before tax | 428 | 6,144 | 9,584 |
Net change, tax | (126) | (1,776) | (3,980) |
Other comprehensive income (loss), net | 302 | 4,368 | 5,604 |
Net (losses) gains arising during the period | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before reclassification, before tax | 2,385 | 9,916 | 3,843 |
Before reclassification, tax | 176 | (2,765) | (1,121) |
Before reclassification, net of tax | 2,561 | 7,151 | 2,722 |
Amortization of prior service (cost) credit | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustment before tax | 135 | (212) | (268) |
Reclassification, tax | (42) | 66 | 77 |
Reclassification, net of tax | 93 | (146) | (191) |
Amortization of net loss | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Reclassification adjustment before tax | 264 | 625 | 381 |
Reclassification, tax | (76) | (178) | (133) |
Reclassification, net of tax | 188 | 447 | 248 |
Net change | |||
Accumulated Other Comprehensive Income (Loss) [Line Items] | |||
Before reclassification, net of tax | (2,561) | (7,151) | (2,722) |
Reclassification, net of tax | 95 | 593 | 439 |
Net change before tax | (2,256) | (9,079) | (3,194) |
Net change, tax | (210) | 2,521 | 911 |
Other comprehensive income (loss), net | $ (2,466) | $ (6,558) | $ (2,283) |
Other Comprehensive Income - _2
Other Comprehensive Income - Schedule of Changes in Accumulated Other Comprehensive Loss after Tax (Detail) - USD ($) $ in Thousands | 12 Months Ended | |||||
Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Jan. 01, 2019 | Jan. 01, 2018 | Jan. 01, 2017 | |
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | $ 3,350,454 | $ 2,533,165 | $ 2,377,156 | |||
Beginning balance, adjusted | $ 3,353,422 | $ 2,515,554 | $ 2,377,156 | |||
Other comprehensive income (loss) before reclassifications | 35,712 | (28,209) | (1,296) | |||
Amounts reclassified from other comprehensive income (loss) | 1,505 | 5,324 | 5,311 | |||
Other comprehensive income (loss), net | 37,217 | (22,885) | 4,015 | |||
Ending balance | 4,384,188 | 3,350,454 | 2,533,165 | |||
Unrealized Gains and Losses on AFS Securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (33,559) | (12,384) | (10,736) | |||
Beginning balance, adjusted | (12,864) | (13,078) | ||||
Other comprehensive income (loss) before reclassifications | 39,262 | (22,932) | 850 | |||
Amounts reclassified from other comprehensive income (loss) | 119 | 2,237 | (156) | |||
Other comprehensive income (loss), net | 39,381 | (20,695) | 694 | |||
Ending balance | 5,822 | (33,559) | (12,384) | |||
Unrealized Gains and Losses on Derivatives | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (4,031) | (8,338) | (12,464) | |||
Beginning balance, adjusted | (8,399) | (13,942) | ||||
Other comprehensive income (loss) before reclassifications | (989) | 1,874 | 576 | |||
Amounts reclassified from other comprehensive income (loss) | 1,291 | 2,494 | 5,028 | |||
Other comprehensive income (loss), net | 302 | 4,368 | 5,604 | |||
Ending balance | (3,729) | (4,031) | (8,338) | |||
Defined Benefit Pension Plan | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (31,841) | (25,283) | (18,893) | |||
Beginning balance, adjusted | (25,283) | (23,000) | ||||
Other comprehensive income (loss) before reclassifications | (2,561) | (7,151) | (2,722) | |||
Amounts reclassified from other comprehensive income (loss) | 95 | 593 | 439 | |||
Other comprehensive income (loss), net | (2,466) | (6,558) | (2,283) | |||
Ending balance | (34,307) | (31,841) | (25,283) | |||
Total Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Beginning balance | (69,431) | (46,005) | (42,093) | |||
Reclassification due to the adoption of ASU No. 2018-02 | (7,927) | |||||
Beginning balance, adjusted | $ (69,431) | (46,546) | $ (50,020) | |||
Ending balance | $ (32,214) | $ (69,431) | (46,005) | |||
ASU 2018-02 | Unrealized Gains and Losses on AFS Securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of ASU No. 2018-02 | (2,342) | |||||
ASU 2018-02 | Unrealized Gains and Losses on Derivatives | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of ASU No. 2018-02 | (1,478) | |||||
ASU 2018-02 | Defined Benefit Pension Plan | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of ASU No. 2018-02 | (4,107) | |||||
ASU 2018-02 | Total Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of ASU No. 2018-02 | $ (7,927) | |||||
ASU 2016-01 | Unrealized Gains and Losses on AFS Securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | (480) | |||||
ASU 2016-01 | Unrealized Gains and Losses on Derivatives | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | 0 | |||||
ASU 2016-01 | Defined Benefit Pension Plan | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | 0 | |||||
ASU 2016-01 | Total Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | (480) | |||||
ASU 2017-12 | Unrealized Gains and Losses on AFS Securities | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | 0 | |||||
ASU 2017-12 | Unrealized Gains and Losses on Derivatives | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | (61) | |||||
ASU 2017-12 | Defined Benefit Pension Plan | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | 0 | |||||
ASU 2017-12 | Total Accumulated Other Comprehensive Loss | ||||||
AOCI Attributable to Parent, Net of Tax [Roll Forward] | ||||||
Reclassification due to the adoption of an ASU | $ (61) |
Quarterly Financial Data - Summ
Quarterly Financial Data - Summary of Quarterly Financial Data (Detail) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Quarterly Financial Information Disclosure [Abstract] | |||||||||||
Interest income | $ 343,773 | $ 329,261 | $ 327,742 | $ 320,224 | $ 314,594 | $ 297,041 | $ 280,118 | $ 267,495 | $ 1,321,000 | $ 1,159,248 | $ 834,154 |
Interest expense | 105,232 | 108,636 | 107,508 | 101,576 | 92,541 | 80,241 | 69,366 | 59,897 | 422,952 | 302,045 | 174,107 |
Net interest income | 238,541 | 220,625 | 220,234 | 218,648 | 222,053 | 216,800 | 210,752 | 207,598 | 898,048 | 857,203 | 660,047 |
Provision for credit losses | 5,418 | 8,700 | 2,100 | 8,000 | 7,859 | 6,552 | 7,142 | 10,948 | 24,218 | 32,501 | 9,942 |
Net impairment losses on securities recognized in earnings | 0 | 0 | (2,928) | 0 | (2,928) | 0 | 0 | ||||
Non-interest income: | |||||||||||
Gains on sales of loans, net | 5,214 | 5,194 | 3,930 | 4,576 | 2,372 | 3,748 | 7,642 | 6,753 | 18,914 | 20,515 | 20,814 |
Gains (losses) on sales of assets, net | 1,336 | (159) | (564) | 77,720 | (280) | (1,899) | (125) | (97) | 78,333 | (2,401) | (95) |
Other non-interest income | 31,544 | 36,115 | 27,165 | 25,377 | 32,602 | 27,189 | 30,552 | 25,595 | |||
Non-interest expense: | |||||||||||
Loss on extinguishment of debt | 31,995 | 0 | 0 | 0 | (31,995) | 0 | 0 | ||||
Amortization of tax credit investments | 3,971 | 4,385 | 4,863 | 7,173 | 9,044 | 5,412 | 4,470 | 5,274 | 20,392 | 24,200 | 41,747 |
Other non-interest expense | 160,180 | 141,492 | 136,874 | 140,622 | 144,668 | 146,269 | 145,446 | 168,478 | 63,063 | 69,357 | 46,154 |
Income Before Income Taxes | 75,071 | 107,198 | 104,000 | 170,526 | 95,176 | 87,605 | 91,763 | 55,149 | 456,795 | 329,693 | 252,738 |
Income tax expense | 36,967 | 25,307 | 27,532 | 57,196 | 18,074 | 18,046 | 18,961 | 13,184 | 147,002 | 68,265 | 90,831 |
Net Income | 38,104 | 81,891 | 76,468 | 113,330 | 77,102 | 69,559 | 72,802 | 41,965 | 309,793 | 261,428 | 161,907 |
Dividends on preferred stock | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 12,688 | 12,688 | 9,449 |
Net Income Available to Common Shareholders | $ 34,932 | $ 78,719 | $ 73,296 | $ 110,158 | $ 73,930 | $ 66,387 | $ 69,630 | $ 38,793 | $ 297,105 | $ 248,740 | $ 152,458 |
Earnings per common share: | |||||||||||
Basic (in usd per share) | $ 0.10 | $ 0.24 | $ 0.22 | $ 0.33 | $ 0.22 | $ 0.20 | $ 0.21 | $ 0.12 | $ 0.88 | $ 0.75 | $ 0.58 |
Diluted (in usd per share) | 0.10 | 0.24 | 0.22 | 0.33 | 0.22 | 0.20 | 0.21 | 0.12 | 0.87 | 0.75 | 0.58 |
Cash dividends declared per common share (in usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.44 | $ 0.44 | $ 0.44 |
Weighted average number of common shares outstanding: | |||||||||||
Basic (in shares) | 355,821,005 | 331,797,982 | 331,748,552 | 331,601,260 | 331,492,648 | 331,486,500 | 331,318,381 | 330,727,416 | 337,792,270 | 331,258,964 | 264,038,123 |
Diluted (in shares) | 358,864,876 | 333,405,196 | 332,959,802 | 332,834,466 | 332,856,385 | 333,000,242 | 332,895,483 | 332,465,527 | 340,117,808 | 332,693,718 | 264,889,007 |
Parent Company Information - Sc
Parent Company Information - Schedule of Condensed Statements of Financial Condition (Detail) - USD ($) $ in Thousands | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | Dec. 31, 2016 |
Assets | ||||
Other assets | $ 717,600 | $ 659,721 | ||
Total Assets | 37,436,020 | 31,863,088 | ||
Liabilities and Shareholders’ Equity | ||||
Junior subordinated debentures issued to capital trusts | 55,718 | 55,370 | ||
Shareholders’ equity | 4,384,188 | 3,350,454 | $ 2,533,165 | $ 2,377,156 |
Total Liabilities and Shareholders’ Equity | 37,436,020 | 31,863,088 | ||
Parent Company | ||||
Assets | ||||
Cash | 119,213 | 109,839 | ||
Investments in and receivables due from subsidiaries | 4,671,578 | 3,609,836 | ||
Other assets | 12,953 | 32,721 | ||
Total Assets | 4,803,744 | 3,752,396 | ||
Liabilities and Shareholders’ Equity | ||||
Dividends payable to shareholders | 45,796 | 37,644 | ||
Long-term borrowings | 292,414 | 294,602 | ||
Junior subordinated debentures issued to capital trusts | 55,718 | 55,370 | ||
Accrued expenses and other liabilities | 25,628 | 14,326 | ||
Shareholders’ equity | 4,384,188 | 3,350,454 | ||
Total Liabilities and Shareholders’ Equity | $ 4,803,744 | $ 3,752,396 |
Parent Company Information - _2
Parent Company Information - Schedule of Condensed Statements of Income (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Income | |||||||||||
Gains on securities transactions, net | $ (150) | $ (2,342) | $ (20) | ||||||||
Losses on sales of assets, net | $ 1,336 | $ (159) | $ (564) | $ 77,720 | $ (280) | $ (1,899) | $ (125) | $ (97) | 78,333 | (2,401) | (95) |
Income tax expense (benefit) | 36,967 | 25,307 | 27,532 | 57,196 | 18,074 | 18,046 | 18,961 | 13,184 | 147,002 | 68,265 | 90,831 |
Net Income | 38,104 | 81,891 | 76,468 | 113,330 | 77,102 | 69,559 | 72,802 | 41,965 | 309,793 | 261,428 | 161,907 |
Dividends on preferred stock | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 3,172 | 12,688 | 12,688 | 9,449 |
Net Income Available to Common Shareholders | $ 34,932 | $ 78,719 | $ 73,296 | $ 110,158 | $ 73,930 | $ 66,387 | $ 69,630 | $ 38,793 | 297,105 | 248,740 | 152,458 |
Parent Company | |||||||||||
Income | |||||||||||
Dividends from subsidiary | 160,000 | 155,000 | 122,000 | ||||||||
Income from subsidiary | 4,550 | 4,550 | 4,550 | ||||||||
Gains on securities transactions, net | 0 | 3 | 0 | ||||||||
Losses on sales of assets, net | 0 | (147) | 0 | ||||||||
Other interest and income | 51 | 39 | 135 | ||||||||
Total Income | 164,601 | 159,445 | 126,685 | ||||||||
Total Expenses | 27,998 | 32,269 | 39,621 | ||||||||
Income before income tax and equity in undistributed earnings of subsidiary | 136,603 | 127,176 | 87,064 | ||||||||
Income tax expense (benefit) | 24,524 | (20,547) | (30,179) | ||||||||
Income before equity in undistributed earnings of subsidiary | 112,079 | 147,723 | 117,243 | ||||||||
Equity in undistributed earnings of subsidiary | 197,714 | 113,705 | 44,664 | ||||||||
Net Income | 309,793 | 261,428 | 161,907 | ||||||||
Dividends on preferred stock | 12,688 | 12,688 | 9,449 | ||||||||
Net Income Available to Common Shareholders | $ 297,105 | $ 248,740 | $ 152,458 |
Parent Company Information - _3
Parent Company Information - Schedule of Condensed Statements of Cash Flows (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Cash flows from operating activities: | |||||||||||
Net Income | $ 38,104 | $ 81,891 | $ 76,468 | $ 113,330 | $ 77,102 | $ 69,559 | $ 72,802 | $ 41,965 | $ 309,793 | $ 261,428 | $ 161,907 |
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Stock-based compensation | 14,726 | 19,472 | 12,204 | ||||||||
Net amortization of premiums and accretion of discounts on borrowings | 29,512 | 38,454 | 46,346 | ||||||||
Losses on securities transactions, net | 150 | 2,342 | 20 | ||||||||
Losses on sales of assets, net | (1,336) | $ 159 | $ 564 | (77,720) | 280 | $ 1,899 | $ 125 | 97 | (78,333) | 2,401 | 95 |
Net change in: | |||||||||||
Other assets | (163,330) | (33,145) | (57,353) | ||||||||
Net cash provided by operating activities | 1,463,950 | 593,589 | 619,230 | ||||||||
Cash flows from investing activities: | |||||||||||
Sales of investment securities available for sale | 271,901 | 44,377 | 2,727 | ||||||||
Cash and cash equivalents acquired in acquisitions | 22,239 | 156,612 | 0 | ||||||||
Net cash used in investing activities | (2,131,341) | (3,129,551) | (1,547,548) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of preferred stock, net | 0 | 0 | 98,101 | ||||||||
Dividends paid to preferred shareholders | (12,688) | (15,859) | (6,277) | ||||||||
Dividends paid to common shareholders | (146,537) | (138,857) | (115,881) | ||||||||
Purchase of common shares to treasury | (1,805) | (3,801) | (2,645) | ||||||||
Common stock issued, net | 2,957 | 2,704 | 8,207 | ||||||||
Net cash provided by financing activities | 673,449 | 2,548,481 | 951,927 | ||||||||
Net change in cash and cash equivalents | 6,058 | 12,519 | 23,609 | ||||||||
Cash and cash equivalents at beginning of year | 428,629 | 416,110 | 428,629 | 416,110 | 392,501 | ||||||
Cash and cash equivalents at end of year | 434,687 | 428,629 | 434,687 | 428,629 | 416,110 | ||||||
Parent Company | |||||||||||
Cash flows from operating activities: | |||||||||||
Net Income | 309,793 | 261,428 | 161,907 | ||||||||
Adjustments to reconcile net income to net cash provided by operating activities: | |||||||||||
Equity in undistributed earnings of subsidiary | (197,714) | (113,705) | (44,664) | ||||||||
Stock-based compensation | 14,726 | 19,472 | 12,204 | ||||||||
Net amortization of premiums and accretion of discounts on borrowings | 124 | 63 | 197 | ||||||||
Losses on securities transactions, net | 0 | (3) | 0 | ||||||||
Losses on sales of assets, net | 0 | 147 | 0 | ||||||||
Net change in: | |||||||||||
Other assets | 19,768 | 9,928 | (89) | ||||||||
Accrued expenses and other liabilities | 8,803 | (10,657) | 8,737 | ||||||||
Net cash provided by operating activities | 155,500 | 166,673 | 138,292 | ||||||||
Cash flows from investing activities: | |||||||||||
Sales of investment securities available for sale | 0 | 257 | 0 | ||||||||
Cash and cash equivalents acquired in acquisitions | 11,947 | 7,915 | 0 | ||||||||
Capital contributions to subsidiary | 0 | 0 | (98,000) | ||||||||
Net cash used in investing activities | 11,947 | 8,172 | (98,000) | ||||||||
Cash flows from financing activities: | |||||||||||
Proceeds from issuance of preferred stock, net | 0 | 0 | 98,101 | ||||||||
Dividends paid to preferred shareholders | (12,688) | (15,859) | (6,277) | ||||||||
Dividends paid to common shareholders | (146,537) | (138,857) | (115,881) | ||||||||
Purchase of common shares to treasury | (1,805) | (3,801) | (2,644) | ||||||||
Common stock issued, net | 2,957 | 2,704 | 8,207 | ||||||||
Net cash provided by financing activities | (158,073) | (155,813) | (18,494) | ||||||||
Net change in cash and cash equivalents | 9,374 | 19,032 | 21,798 | ||||||||
Cash and cash equivalents at beginning of year | $ 109,839 | $ 90,807 | 109,839 | 90,807 | 69,009 | ||||||
Cash and cash equivalents at end of year | $ 119,213 | $ 109,839 | $ 119,213 | $ 109,839 | $ 90,807 |
Business Segments - Additional
Business Segments - Additional Information (Detail) | 12 Months Ended |
Dec. 31, 2019segment | |
Segment Reporting [Abstract] | |
Number of business segments | 4 |
Business Segments - Schedule of
Business Segments - Schedule of Financial Data for Business Segments (Detail) - USD ($) $ in Thousands | 3 Months Ended | 12 Months Ended | |||||||||
Dec. 31, 2019 | Sep. 30, 2019 | Jun. 30, 2019 | Mar. 31, 2019 | Dec. 31, 2018 | Sep. 30, 2018 | Jun. 30, 2018 | Mar. 31, 2018 | Dec. 31, 2019 | Dec. 31, 2018 | Dec. 31, 2017 | |
Segment Reporting Information [Line Items] | |||||||||||
Average interest earning assets (unaudited) | $ 30,575,530 | $ 27,702,911 | $ 30,575,530 | $ 27,702,911 | $ 21,488,498 | ||||||
Interest income | 343,773 | $ 329,261 | $ 327,742 | $ 320,224 | 314,594 | $ 297,041 | $ 280,118 | $ 267,495 | 1,321,000 | 1,159,248 | 834,154 |
Interest expense | 105,232 | 108,636 | 107,508 | 101,576 | 92,541 | 80,241 | 69,366 | 59,897 | 422,952 | 302,045 | 174,107 |
Net Interest Income | 238,541 | 220,625 | 220,234 | 218,648 | 222,053 | 216,800 | 210,752 | 207,598 | 898,048 | 857,203 | 660,047 |
Provision for credit losses | 5,418 | 8,700 | 2,100 | 8,000 | 7,859 | 6,552 | 7,142 | 10,948 | 24,218 | 32,501 | 9,942 |
Net Interest Income After Provision for Credit Losses | 873,830 | 824,702 | 650,105 | ||||||||
Non-interest income | 214,520 | 134,052 | 111,706 | ||||||||
Non-interest expense: | 631,555 | 629,061 | 509,073 | ||||||||
Internal expense transfer | 0 | 0 | 0 | ||||||||
Income Before Income Taxes | $ 75,071 | $ 107,198 | $ 104,000 | $ 170,526 | $ 95,176 | $ 87,605 | $ 91,763 | $ 55,149 | $ 456,795 | $ 329,693 | $ 252,738 |
Return on average interest earning assets (pre-tax) | 1.49% | 1.19% | 1.49% | 1.19% | 1.18% | ||||||
Corporate and Other Adjustments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Average interest earning assets (unaudited) | $ 0 | $ 0 | $ 0 | $ 0 | $ 0 | ||||||
Interest income | (4,824) | (5,961) | (8,623) | ||||||||
Interest expense | 15,669 | 15,577 | 11,813 | ||||||||
Net Interest Income | (20,493) | (21,538) | (20,436) | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Net Interest Income After Provision for Credit Losses | (20,493) | (21,538) | (20,436) | ||||||||
Non-interest income | 106,564 | 41,806 | 29,172 | ||||||||
Non-interest expense: | 452,551 | 440,177 | 364,457 | ||||||||
Internal expense transfer | (349,526) | (344,916) | (283,247) | ||||||||
Income Before Income Taxes | (16,954) | (74,993) | (72,474) | ||||||||
Consumer Lending | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Average interest earning assets (unaudited) | $ 6,891,462 | $ 6,197,161 | 6,891,462 | 6,197,161 | 5,166,171 | ||||||
Interest income | 272,773 | 235,264 | 182,508 | ||||||||
Interest expense | 91,798 | 64,083 | 39,018 | ||||||||
Net Interest Income | 180,975 | 171,181 | 143,490 | ||||||||
Provision for credit losses | 6,688 | 5,550 | 3,197 | ||||||||
Net Interest Income After Provision for Credit Losses | 174,287 | 165,631 | 140,293 | ||||||||
Non-interest income | 57,981 | 61,280 | 63,375 | ||||||||
Non-interest expense: | 76,046 | 92,462 | 72,207 | ||||||||
Internal expense transfer | 78,743 | 77,164 | 68,007 | ||||||||
Income Before Income Taxes | $ 77,479 | $ 57,285 | $ 63,454 | ||||||||
Return on average interest earning assets (pre-tax) | 1.12% | 0.92% | 1.12% | 0.92% | 1.23% | ||||||
Commercial Lending | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Average interest earning assets (unaudited) | $ 19,343,791 | $ 17,143,169 | $ 19,343,791 | $ 17,143,169 | $ 12,652,832 | ||||||
Interest income | 926,328 | 798,974 | 552,297 | ||||||||
Interest expense | 257,670 | 177,273 | 95,562 | ||||||||
Net Interest Income | 668,658 | 621,701 | 456,735 | ||||||||
Provision for credit losses | 17,530 | 26,951 | 6,745 | ||||||||
Net Interest Income After Provision for Credit Losses | 651,128 | 594,750 | 449,990 | ||||||||
Non-interest income | 41,157 | 22,275 | 11,414 | ||||||||
Non-interest expense: | 101,924 | 95,171 | 71,216 | ||||||||
Internal expense transfer | 221,113 | 213,399 | 166,847 | ||||||||
Income Before Income Taxes | $ 369,248 | $ 308,455 | $ 223,341 | ||||||||
Return on average interest earning assets (pre-tax) | 1.91% | 1.80% | 1.91% | 1.80% | 1.77% | ||||||
Investment Management | Operating Segments | |||||||||||
Segment Reporting Information [Line Items] | |||||||||||
Average interest earning assets (unaudited) | $ 4,340,277 | $ 4,362,581 | $ 4,340,277 | $ 4,362,581 | $ 3,669,495 | ||||||
Interest income | 126,723 | 130,971 | 107,972 | ||||||||
Interest expense | 57,815 | 45,112 | 27,714 | ||||||||
Net Interest Income | 68,908 | 85,859 | 80,258 | ||||||||
Provision for credit losses | 0 | 0 | 0 | ||||||||
Net Interest Income After Provision for Credit Losses | 68,908 | 85,859 | 80,258 | ||||||||
Non-interest income | 8,818 | 8,691 | 7,745 | ||||||||
Non-interest expense: | 1,034 | 1,251 | 1,193 | ||||||||
Internal expense transfer | 49,670 | 54,353 | 48,393 | ||||||||
Income Before Income Taxes | $ 27,022 | $ 38,946 | $ 38,417 | ||||||||
Return on average interest earning assets (pre-tax) | 0.62% | 0.89% | 0.62% | 0.89% | 1.05% |
Uncategorized Items - vly-12312
Label | Element | Value |
Common Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | $ 92,353,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 116,240,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 92,727,000 |
Preferred Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 209,691,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 111,590,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 209,691,000 |
Treasury Stock [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (337,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (1,849,000) |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | (2,187,000) |
Retained Earnings [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 180,681,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 302,610,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 199,663,000 |
Additional Paid-in Capital [Member] | ||
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,796,499,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,060,356,000 |
Stockholders' Equity, Including Portion Attributable to Noncontrolling Interest, Adjusted Balance | us-gaap_StockholdersEquityIncludingPortionAttributableToNoncontrollingInterestAdjustedBalance1 | 2,044,401,000 |
Accounting Standards Update 2016-01 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | 480,000 |
Accounting Standards Update 2017-12 [Member] | Retained Earnings [Member] | ||
Cumulative Effect of New Accounting Principle in Period of Adoption | us-gaap_CumulativeEffectOfNewAccountingPrincipleInPeriodOfAdoption | $ 61,000 |