Tax Credit Investments (Tables)

9 Months Ended

Sep. 30, 2020

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 September 30, 2020 and December 31, 2019:


	September 30, 2020		December 31, 2019
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	21,647	$	25,049
Other tax credit investments, net	49,907		59,081
Total tax credit investments, net	$	71,554	$	84,130
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,397	$	1,539
Unfunded other tax credit commitments	1,139		1,139
Total unfunded tax credit commitments	$	2,536	$	2,678

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 three and nine months ended September 30, 2020 and 2019:


	Three Months Ended September 30,				Nine Months Ended September 30,
	2020		2019		2020		2019
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	1,352	$	1,666	$	3,979	$	5,087
Other tax credit investment credits and tax benefits	1,727		1,902		5,567		6,863
Total reduction in income tax expense	$	3,079	$	3,568	$	9,546	$	11,950
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	642	$	530	$	1,733	$	1,796
Affordable housing tax credit investment impairment losses	585		857		1,668		2,381
Other tax credit investment losses	12		1,093		1,235		4,589
Other tax credit investment impairment losses	1,520		1,905		4,767		7,655
Total amortization of tax credit investments recorded in non-interest expense	$	2,759	$	4,385	$	9,403	$	16,421