Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2020

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, 2020 and 2019: 

	2020		2019
	(in thousands)
Commitments under commercial loans and lines of credit	$	5,595,561	$	5,550,967
Home equity and other revolving lines of credit	1,485,911		1,379,581
Standby letters of credit	293,900		296,036
Outstanding residential mortgage loan commitments	244,286		233,291
Commitments to sell loans	155,627		68,492
Commitments under unused lines of credit—credit card	68,735		44,527
Commercial letters of credit	1,663		2,887
Total	$	7,845,683	$	7,575,781

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, 2020						December 31, 2019
	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 swaps	$	—	$	179	$	1,100,000	$	—	$	1,484	$	180,000
Fair value hedge interest rate swaps	—		—		—		—		229		7,281
Total derivatives designated as hedging instruments	$	—	$	179	$	1,100,000	$	—	$	1,713	$	187,281
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts (1)	$	387,008	$	154,025	$	8,889,557	$	158,382	$	42,020	$	4,113,106
Mortgage banking derivatives	444		2,077		321,486		150		193		142,760
Total derivatives not designated as hedging instruments	$	387,452	$	156,102	$	9,211,043	$	158,532	$	42,213	$	4,255,866

(1)     Other contracts include risk participation agreements.

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: 

	2020		2019		2018
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(2,912)	$	(1,808)	$	(3,493)
Amount of (loss) gain recognized in other comprehensive income	(3,169)		(1,380)		2,651

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: 

	2020		2019		2018
	(in thousands)
Derivative—interest rate swaps:
Interest income	$	229	$	133	$	290
Hedged item—loans, deposits and long-term borrowings:
Interest income	$	(229)	$	(133)	$	(290)

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, 2020 and 2019:

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
	2020		2019		2020		2019
	(in thousands)
Loans	$	—	$	7,510	$	—	$	229

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: 

	2020		2019		2018
	(in thousands)
Non-designated hedge interest rate and credit derivatives
Other non-interest expense	$	1,067	$	898	$	792