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Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2022

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, 2022 and 2021:


	2022		2021
	(in thousands)
Commitments under commercial loans and lines of credit	$	10,262,414	$	7,460,742
Home equity and other revolving lines of credit	1,920,824		1,689,315
Standby letters of credit	509,804		311,285
Outstanding residential mortgage loan commitments	317,108		355,523
Commitments under unused lines of credit—credit card	116,208		96,734
Commitments to sell loans	22,008		210,468
Commercial letters of credit	5,863		7,603
Total	$	13,154,229	$	10,131,670

Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows at December 31, 2022 and 2021:


	2022						2021
	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	$	3,971	$	4	$	600,000	$	—	$	310	$	700,000
Fair value hedge interest rate swaps	—		29,794		300,000		—		3,335		300,000
Total derivatives designated as hedging instruments	$	3,971	$	29,798	$	900,000	$	—	$	3,645	$	1,000,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts *	$	449,280	$	564,678	$	14,753,330	$	180,701	$	47,044	$	10,179,294
Foreign currency derivatives	13,709		12,604		1,273,735		311		233		122,166
Mortgage banking derivatives	167		157		31,299		488		1,454		312,428
Total derivatives not designated as hedging instruments	$	463,156	$	577,439	$	16,058,364	$	181,500	$	48,731	$	10,613,888

* 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:


	2022		2021		2020
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(274)	$	(3,436)	$	(2,912)
Amount of gain (loss) recognized in other comprehensive income (loss)	4,683		138		(3,169)

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:


	2022		2021		2020
	(in thousands)
Derivative—interest rate swaps:
Interest income	$	—	$	—	$	229
Interest expense	(466)		(3,335)		—
Hedged item—subordinated debt and loans:
Interest income	$	—	$	—	$	(229)
Interest expense	741		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, 2022 and 2021:


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

	(in thousands)
December 31, 2022
Long-term borrowings	$	267,076	$	(30,132)
December 31, 2021
Long-term borrowings	293,003		(3,397)

* Net carrying amount includes unamortized debt issuance costs of $2.8 million and $3.6 million at December 31, 2022 and 2021, respectively.

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

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


	2022		2021		2020
	(in thousands)
Non-designated hedge interest rate and credit derivatives
Other non-interest expense	$	(1,392)	$	54	$	1,067