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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2021

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, 2021 and 2020:


	2021		2020
	(in thousands)
Commitments under commercial loans and lines of credit	$	7,460,742	$	5,595,561
Home equity and other revolving lines of credit	1,689,315		1,485,911
Standby letters of credit	311,285		293,900
Outstanding residential mortgage loan commitments	355,523		244,286
Commitments to sell loans	210,468		155,627
Commitments under unused lines of credit—credit card	96,734		68,735
Commercial letters of credit	7,603		1,663
Total	$	10,131,670	$	7,845,683

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, 2021						December 31, 2020
	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 swaps	$	—	$	310	$	700,000	$	—	$	179	$	1,100,000
Fair value hedge interest rate swaps	—		3,335		300,000		—		—		—
Total derivatives designated as hedging instruments	$	—	$	3,645	$	1,000,000	$	—	$	179	$	1,100,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts *	$	181,012	$	47,277	$	10,301,460	$	387,008	$	154,025	$	8,889,557
Mortgage banking derivatives	488		1,454		312		444		2,077		321,486
Total derivatives not designated as hedging instruments	$	181,500	$	48,731	$	10,301,772	$	387,452	$	156,102	$	9,211,043

* Other derivatives 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:


	2021		2020		2019
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(3,436)	$	(2,912)	$	(1,808)
Amount of gain (loss) recognized in other comprehensive income	138		(3,169)		(1,380)

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:


	2021		2020		2019
	(in thousands)
Derivative—interest rate swaps:
Interest income	$	—	$	229	$	133
Interest expense	(3,335)		—		—
Hedged item—subordinated debt and loans:
Interest income	$	—	$	(229)	$	(133)
Interest expense	3,397		—		—

Interest Rate Derivatives Designated as Hedges

The following table presents the hedged items related to interest rate derivatives designated as fair value hedges and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at December 31, 2021:


Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability

	(in thousands)
Long-term borrowings	$	296,603	$	(3,397)

Net (Gains) Losses Related to Derivative Instruments Not Designated as Hedging Instruments

The net losses included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows:


	2021		2020		2019
	(in thousands)
Non-designated hedge interest rate and credit derivatives
Other non-interest expense	$	54	$	1,067	$	898