10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2023

OR

☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number 1-11277 

 Valley National Bancorp

(Exact name of registrant as specified in its charter)

New Jersey		22-2477875
(State or other jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)
One Penn Plaza
New York,	NY	10119
(Address of principal executive office)		(Zip code)

973-305-8800

(Registrant’s telephone number, including area code) 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of exchange on which registered
Common Stock, no par value	VLY	The Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series A, no par value	VLYPP	The Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series B, no par value	VLYPO	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act:

Large accelerated filer	☒	Accelerated filer	☐	Smaller reporting company	☐
Non-accelerated filer	☐			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common Stock (no par value), of which 507,875,088 shares were outstanding as of May 3, 2023.

TABLE OF CONTENTS

		Page Number
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition as of March 31, 2023 and December 31, 2022	2
	Consolidated Statements of Income for the Three Months Ended March 31, 2023	3
	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2023 and 2022	4
	Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended March 31, 2023 and 2022	5
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2023 and 2022	6
	Notes to Consolidated Financial Statements	8
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	48
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	82
Item 4.	Controls and Procedures	82
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	83
Item 1A.	Risk Factors	83
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	84
Item 5.	Other Items	84
Item 6.	Exhibits	84
SIGNATURES		85

1

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except for share data)

	March 31, 2023		December 31, 2022
Assets	(Unaudited)
Cash and due from banks	$	444,690	$	444,325
Interest bearing deposits with banks	5,260,998		503,622
Investment securities:
Equity securities	50,152		48,731
Trading debt securities	6,855		13,438
Available for sale debt securities	1,259,236		1,261,397
Held to maturity debt securities (net of allowance for credit losses of $1,633 at March 31, 2023 and $1,646 at December 31, 2022)	3,845,579		3,827,338
Total investment securities	5,161,822		5,150,904
Loans held for sale, at fair value	17,218		18,118
Loans	48,659,966		46,917,200
Less: Allowance for loan losses	(436,898)		(458,655)
Net loans	48,223,068		46,458,545
Premises and equipment, net	365,313		358,556
Lease right of use assets	302,740		306,352
Bank owned life insurance	717,339		717,177
Accrued interest receivable	223,608		196,606
Goodwill	1,868,936		1,868,936
Other intangible assets, net	187,171		197,456
Other assets	1,536,670		1,242,152
Total Assets	$	64,309,573	$	57,462,749
Liabilities
Deposits:
Non-interest bearing	$	13,576,116	$	14,463,645
Interest bearing:
Savings, NOW and money market	22,903,424		23,616,812
Time	11,111,376		9,556,457
Total deposits	47,590,916		47,636,914
Short-term borrowings	6,413,056		138,729
Long-term borrowings	2,197,656		1,543,058
Junior subordinated debentures issued to capital trusts	56,847		56,760
Lease liabilities	355,020		358,884
Accrued expenses and other liabilities	1,184,497		1,327,602
Total Liabilities	57,797,992		51,061,947
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at March 31, 2023 and December 31, 2022)	111,590		111,590
Series B (4,000,000 shares issued at March 31, 2023 and December 31, 2022)	98,101		98,101
Common stock (no par value, authorized 650,000,000 shares; issued 507,896,910 shares at March 31, 2023 and December 31, 2022)	178,186		178,185
Surplus	4,967,662		4,980,231
Retained earnings	1,300,980		1,218,445
Accumulated other comprehensive loss	(143,647)		(164,002)
Treasury stock, at cost (134,552 common shares at March 31, 2023 and 1,522,432 common shares at December 31, 2022)	(1,291)		(21,748)
Total Shareholders’ Equity	6,511,581		6,400,802
Total Liabilities and Shareholders’ Equity	$	64,309,573	$	57,462,749

See accompanying notes to consolidated financial statements.

2

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for per share data)

	Three Months Ended March 31,
	2023		2022
Interest Income
Interest and fees on loans	$	655,226	$	317,365
Interest and dividends on investment securities:
Taxable	32,289		18,439
Tax-exempt	5,325		2,517
Dividends	5,185		1,676
Interest on federal funds sold and other short-term investments	22,205		461
Total interest income	720,230		340,458
Interest Expense
Interest on deposits:
Savings, NOW and money market	150,766		9,627
Time	80,298		2,831
Interest on short-term borrowings	33,948		806
Interest on long-term borrowings and junior subordinated debentures	19,198		9,525
Total interest expense	284,210		22,789
Net Interest Income	436,020		317,669
Provision for credit losses for available for sale and held to maturity securities	4,987		57
Provision for credit losses for loans	9,450		3,500
Net Interest Income After Provision for Credit Losses	421,583		314,112
Non-Interest Income
Wealth management and trust fees	9,587		5,131
Insurance commissions	2,420		1,859
Capital markets	10,892		14,360
Service charges on deposit accounts	10,476		6,212
Gains (losses) on securities transactions, net	378		(1,072)
Fees from loan servicing	2,671		2,781
Gains on sales of loans, net	489		986
Bank owned life insurance	2,584		2,046
Other	14,802		6,967
Total non-interest income	54,299		39,270
Non-Interest Expense
Salary and employee benefits expense	144,986		107,733
Net occupancy expense	23,256		21,991
Technology, furniture and equipment expense	36,508		26,015
FDIC insurance assessment	9,155		4,158
Amortization of other intangible assets	10,519		4,437
Professional and legal fees	16,814		14,749
Amortization of tax credit investments	4,253		2,896
Other	26,675		15,361
Total non-interest expense	272,166		197,340
Income Before Income Taxes	203,716		156,042
Income tax expense	57,165		39,314
Net Income	146,551		116,728
Dividends on preferred stock	3,874		3,172
Net Income Available to Common Shareholders	$	142,677	$	113,556
Earnings Per Common Share:
Basic	$	0.28	$	0.27
Diluted	0.28		0.27

See accompanying notes to consolidated financial statements.

3

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(in thousands)

	Three Months Ended March 31,
	2023		2022
Net income	$	146,551	$	116,728
Other comprehensive income (loss), net of tax:
Unrealized gains and losses on available for sale securities
Net gains (losses) arising during the period	17,170		(38,892)
Less reclassification adjustment for net gains included in net income	—		(10)
Total	17,170		(38,902)
Unrealized gains and losses on derivatives (cash flow hedges)
Net gains on derivatives arising during the period	2,798		218
Less reclassification adjustment for net losses included in net income	379		386
Total	3,177		604
Defined benefit pension and postretirement benefit plans
Amortization of actuarial net loss	8		132
Total other comprehensive income (loss)	20,355		(38,166)
Total comprehensive income	$	166,906	$	78,562

See accompanying notes to consolidated financial statements.

4

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

For the Three Months Ended March 31, 2023

			Common Stock							Accumulated
	Preferred Stock		Shares	Amount		Surplus		Retained Earnings		Other Comprehensive Loss		Treasury Stock		Total Shareholders’ Equity
	(in thousands)
Balance - December 31, 2022	$	209,691	506,374	$	178,185	$	4,980,231	$	1,218,445	$	(164,002)	$	(21,748)	$	6,400,802
Adjustment due to the adoption of ASU 2022-02	—		—	—		—		990		—		—		990
Balance - January 1, 2023	209,691		506,374	178,185		4,980,231		1,219,435		(164,002)		(21,748)		6,401,792
Net income	—		—	—		—		146,551		—		—		146,551
Other comprehensive income, net of tax	—		—	—		—		—		20,355		—		20,355
Cash dividends declared:
Preferred stock, Series A, $0.39 per share	—		—	—		—		(1,797)		—		—		(1,797)
Preferred stock, Series B, $0.52 per share	—		—	—		—		(2,077)		—		—		(2,077)
Common stock, $0.11 per share	—		—	—		—		(56,488)		—		—		(56,488)
Effect of stock incentive plan, net	—		1,061	1		(12,569)		(3,994)		—		16,057		(505)
Common stock issued	—		327	—		—		(650)		—		4,400		3,750
Balance - March 31, 2023	$	209,691	507,762	$	178,186	$	4,967,662	$	1,300,980	$	(143,647)	$	(1,291)	$	6,511,581

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (continued)

For the Three Months Ended March 31, 2022

			Common Stock							Accumulated
	Preferred Stock		Shares	Amount		Surplus		Retained Earnings		Other Comprehensive Loss		Treasury Stock		Total Shareholders’ Equity
	(in thousands)
Balance - December 31, 2021	$	209,691	421,437	$	148,482	$	3,883,035	$	883,645	$	(17,932)	$	(22,855)	$	5,084,066
Net income	—		—	—		—		116,728		—		—		116,728
Other comprehensive loss, net of tax	—		—	—		—		—		(38,166)		—		(38,166)
Cash dividends declared:
Preferred stock, Series A, $0.39 per share	—		—	—		—		(1,797)		—		—		(1,797)
Preferred stock, Series B, $0.34 per share	—		—	—		—		(1,375)		—		—		(1,375)
Common stock, $0.11 per share	—		—	—		—		(46,803)		—		—		(46,803)
Effect of stock incentive plan, net	—		972	—		(10,799)		(5,173)		—		13,220		(2,752)
Purchase of treasury stock	—		(1,015)	—		—		—		—		(13,517)		(13,517)
Balance - March 31, 2022	$	209,691	421,394	$	148,482	$	3,872,236	$	945,225	$	(56,098)	$	(23,152)	$	5,096,384

See accompanying notes to consolidated financial statements.

5

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Three Months Ended March 31,
	2023		2022
Cash flows from operating activities:
Net income	$	146,551	$	116,728
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	11,515		7,486
Stock-based compensation	8,093		7,263
Provision for credit losses	14,437		3,557
Net amortization of premiums and accretion of discounts on securities and borrowings	(397)		7,487
Amortization of other intangible assets	10,519		4,437
Losses on available for sale and held to maturity debt securities, net	24		9
Proceeds from sales of loans held for sale	27,743		204,628
Gains on sales of loans, net	(489)		(986)
Originations of loans held for sale	(26,588)		(144,485)
(Gains) losses on sales of assets, net	(125)		64
Net change in:
Fair value of borrowings hedged by derivative transactions	4,219		(14,696)
Trading debt securities	6,583		26,391
Lease right of use assets	3,600		766
Cash surrender value of bank owned life insurance	(2,584)		(2,046)
Accrued interest receivable	(27,002)		(5,785)
Other assets	(298,076)		20,156
Accrued expenses and other liabilities	(147,705)		265,029
Net cash (used in) provided by operating activities	(269,682)		496,003
Cash flows from investing activities:
Net loan originations and purchases	(1,774,024)		(1,210,754)
Equity securities:
Purchases	(1,594)		(662)
Sales	409		848
Held to maturity debt securities:
Purchases	(79,961)		(545,462)
Maturities, calls and principal repayments	61,213		136,024
Available for sale debt securities:
Purchases	—		(15,000)
Maturities, calls and principal repayments	22,264		73,008
Death benefit proceeds from bank owned life insurance	2,773		2,369
Proceeds from sales of real estate property and equipment	125		5,692
Purchases of real estate property and equipment	(18,263)		(22,749)
Cash distribution from tax credit investments	2,500		—
Cash and cash equivalent acquired in acquisitions, net	—		(8,607)
Net cash used in investing activities	(1,784,558)		(1,585,293)

6

VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued) (in thousands)
	Three Months Ended March 31,
	2023		2022
Cash flows from financing activities:
Net change in deposits	$	(45,998)	$	14,924
Net change in short-term borrowings	6,274,327		(171,545)
Proceeds from issuance of long-term borrowings, net	1,000,000		—
Repayments of long-term borrowings	(350,000)		—
Cash dividends paid to preferred shareholders	(3,874)		(3,172)
Cash dividends paid to common shareholders	(57,612)		(46,205)
Purchase of common shares to treasury	(8,599)		(23,627)
Common stock issued, net	3,750		95
Other, net	(13)		(180)
Net cash provided by (used in) financing activities	6,811,981		(229,710)
Net change in cash and cash equivalents	4,757,741		(1,319,000)
Cash and cash equivalents at beginning of year	947,947		2,049,920
Cash and cash equivalents at end of period	$	5,705,688	$	730,920
Supplemental disclosures of cash flow information:
Cash payments for:
Interest on deposits and borrowings	$	244,246	$	19,682
Federal and state income taxes	8,782		6,842
Supplemental schedule of non-cash investing activities:
Transfer of loans to other real estate owned	$	903	$	—
Lease right of use assets obtained in exchange for operating lease liabilities	7,461		6,836
Non-cash net assets acquired	—		8,607

See accompanying notes to consolidated financial statements.

7

VALLEY NATIONAL BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey Corporation (Valley) include the accounts of Valley National Bank (the Bank) and all other entities in which Valley has a controlling financial interest. 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. Certain prior period amounts have been reclassified to conform to the current presentation.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at March 31, 2023 and for all periods presented have been made. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022.

Significant Estimates. In preparing the unaudited 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 require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, 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. Actual results may differ from those estimates. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date.

Note 2. Business Combinations

Acquisitions

Bank Leumi Le-Israel Corporation. On April 1, 2022, Valley completed its acquisition of Bank Leumi Le-Israel Corporation, the U.S. subsidiary of Bank Leumi Le-Israel B.M., and parent company of Bank Leumi USA, collectively referred to as "Bank Leumi USA". Bank Leumi USA maintained its headquarters in New York City with commercial banking offices in Chicago, Los Angeles, Palo Alto, and Aventura, Florida. The common shareholders of Bank Leumi USA received 3.8025 shares of Valley common stock and $5.08 in cash for each Bank Leumi USA common share that they owned. As a result, Valley issued approximately 85 million shares of common stock and paid $113.4 million in cash in the transaction. Based on Valley’s closing stock price on March 31, 2022, the transaction was valued at $1.2 billion, inclusive of the value of options. As a result of the acquisition, Bank Leumi Le-Israel B.M. owned approximately 14 percent of Valley's common stock as of April 1, 2022.

Merger expenses, primarily consisting of salary and employee benefit expense, totaled $4.1 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively.

8

The following table sets forth assets acquired and liabilities assumed in the Bank Leumi USA acquisition, at their estimated fair values as of the closing date of the transaction:

	April 1, 2022
	(in thousands)
Assets acquired:
Cash and cash equivalents	$	443,588
Equity securities	6,239
Available for sale debt securities	505,928
Held to maturity debt securities	806,627
Loans	5,914,389
Allowance for loan losses	(70,319)
Loans, net	5,844,070
Premises and equipment	38,827
Lease right of use assets	49,273
Bank owned life insurance	126,861
Accrued interest receivable	25,717
Goodwill	400,582
Other intangible assets	153,380
Other assets	160,921
Total assets acquired	$	8,562,013
Liabilities assumed:
Deposits:
Non-interest bearing	$	4,511,537
Interest bearing:
Savings, NOW and money market	2,224,834
Time	293,626
Total deposits	7,029,997
Short-term borrowings	103,794
Lease liabilities	79,683
Accrued expense and other liabilities	117,269
Total liabilities assumed	$	7,330,743
Common stock issued in acquisition	1,117,829
Cash paid in acquisition	113,441

There were no changes to the fair value estimates during the three months ended March 31, 2023.

Dudley Ventures. On October 8, 2021, Valley acquired certain subsidiaries of Dudley Ventures, an advisory firm specializing in the investment and management of tax credits. The transaction price included $11.3 million of cash at the closing date and fixed future stock consideration totaling $3.75 million, which resulted in the issuance of 327,083 shares of Valley common stock to the former principals of Dudley Ventures in February 2023.

9

Note 3. Earnings Per Common Share

The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
	(in thousands, except for share and per share data)
Net income available to common shareholders	$	142,677	$	113,556
Basic weighted average number of common shares outstanding	507,111,295		421,573,843
Plus: Common stock equivalents	2,545,135		1,932,707
Diluted weighted average number of common shares outstanding	509,656,430		423,506,550
Earnings per common share:
Basic	$	0.28	$	0.27
Diluted	0.28		0.27

Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of restricted stock units and common stock options to purchase Valley’s common shares. Common stock options with exercise prices that exceed the average market price per share of Valley’s common stock during the periods presented may have an anti-dilutive effect on the diluted earnings per common share calculation and therefore are excluded from the diluted earnings per share calculation along with restricted stock units. Potential anti-dilutive weighted common shares totaled approximately 1.6 million and 113 thousand for the three months ended March 31, 2023 and 2022, respectively.

Note 4. 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 three months ended March 31, 2023:

	Components of Accumulated Other Comprehensive Loss						Total Accumulated Other Comprehensive Loss
	Unrealized Gains and Losses on Available for Sale (AFS) Securities		Unrealized Gains and Losses on Derivatives		Defined Benefit Pension and Postretirement Benefit Plans
	(in thousands)
Balance at December 31, 2022	$	(127,818)	$	2,233	$	(38,417)	$	(164,002)
Other comprehensive gain before reclassification	17,170		2,798		—		19,968
Amounts reclassified from other comprehensive income	—		379		8		387
Other comprehensive income, net	17,170		3,177		8		20,355
Balance at March 31, 2023	$	(110,648)	$	5,410	$	(38,409)	$	(143,647)

10

The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2023 and 2022:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended March 31,
Components of Accumulated Other Comprehensive Loss	2023		2022		Income Statement Line Item
	(in thousands)
Unrealized gains on AFS securities before tax	$	—	$	14	Gains (losses) on securities transactions, net
Tax effect	—		(4)
Total net of tax	—		10
Unrealized losses on derivatives (cash flow hedges) before tax	(531)		(542)		Interest expense
Tax effect	152		156
Total net of tax	(379)		(386)
Defined benefit pension and postretirement benefit plans:
Amortization of actuarial net loss	(11)		(183)		*
Tax effect	3		51
Total net of tax	(8)		(132)
Total reclassifications, net of tax	$	(387)	$	(508)

* Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.

Note 5. New Authoritative Accounting Guidance

New Accounting Guidance Adopted in 2023

Accounting Standards Update (ASU) No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging –Portfolio Layer Method” expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges. This method allows entities to designate multiple hedging relationships with a single closed portfolio, and therefore a larger portion of the interest rate risk associated with such a portfolio is eligible to be hedged. ASU No. 2022-01 also clarifies that no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge. Valley adopted ASU No. 2022-01 on January 1, 2023 and the guidance did not have a significant impact on Valley's consolidated financial statements.

ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the troubled debt restructuring (TDR) accounting model for creditors, such as Valley, that have adopted Topic 326, “Financial Instruments – Credit Losses.” ASU No. 2022-02 requires all loan modifications to be accounted for under the general loan modification guidance in Subtopic 310-20. On a prospective basis, entities are subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements are also required to prospectively disclose current-period gross write-off information by vintage. Entities can elect to adopt the guidance on TDRs using either a prospective or modified retrospective transition method. Valley adopted ASU No. 2022-02 on January 1, 2023 and elected to apply the modified retrospective transition method. The adoption of ASU No. 2022-02 resulted in a $1.4 million decrease in the allowance for loan losses, and a $990 thousand increase to retained earnings, net of taxes. See Note 8 for required disclosures.

New Accounting Guidance Issued in 2023

ASU No. 2023-02, Investments –“Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,” is intended to improve the accounting and

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disclosures for investments in certain tax credit structures. ASU No. 2023-02 allows the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met. ASU No. 2023-02 will be effective on January 1, 2024 and it can be early adopted in any interim period. The new guidance can also be applied either on a modified retrospective or a retrospective basis, with any adjustments resulting from adoption recognized in earnings on the date of adoption. Valley is currently evaluating the impact of ASU No. 2023-02, but it is not expected to have a significant impact on Valley's consolidated financial statements.

Note 6. Fair Value Measurement of Assets and Liabilities

ASC Topic 820, “Fair Value Measurements” 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 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 March 31, 2023 and December 31, 2022. The assets presented under “non-recurring fair value measurements” in the tables 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). 

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	March 31, 2023		Fair Value Measurements at Reporting Date Using:
			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	$	23,635	$	23,635	$	—	$	—
Equity securities at net asset value (NAV)	10,175		—		—		—
Trading debt securities	6,855		3,477		3,378		—
Available for sale debt securities:
U.S. Treasury securities	286,745		286,745		—		—
U.S. government agency securities	26,352		—		26,352		—
Obligations of states and political subdivisions	152,775		—		152,775		—
Residential mortgage-backed securities	619,776		—		619,776		—
Corporate and other debt securities	173,588		—		173,588		—
Total available for sale debt securities	1,259,236		286,745		972,491		—
Loans held for sale (1)	17,218		—		17,218		—
Other assets (2)	446,749		—		446,749		—
Total assets	$	1,763,868	$	313,857	$	1,439,836	$	—
Liabilities
Other liabilities (2)	$	494,552	$	—	$	494,552	$	—
Total liabilities	$	494,552	$	—	$	494,552	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	81,267	$	—	$	—	$	81,267
Foreclosed assets	1,752		—		—		1,752
Total	$	83,019	$	—	$	—	$	83,019

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			Fair Value Measurements at Reporting Date Using:
	December 31, 2022		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	$	23,494	$	23,494	$	—	$	—
Equity securities at net asset value (NAV)	10,099		—		—		—
Trading debt securities	13,438		3,282		10,156		—
Available for sale debt securities:
U.S. Treasury securities	279,498		279,498		—		—
U.S. government agency securities	26,964		—		26,964		—
Obligations of states and political subdivisions	146,811		—		146,811		—
Residential mortgage-backed securities	629,818		—		629,818		—
Corporate and other debt securities	178,306		—		178,306		—
Total available for sale debt securities	1,261,397		279,498		981,899		—
Loans held for sale (1)	18,118		—		18,118		—
Other assets (2)	467,127		—		467,127		—
Total assets	$	1,793,673	$	306,274	$	1,477,300	$	—
Liabilities
Other liabilities (2)	$	607,237	$	—	$	607,237	$	—
Total liabilities	$	607,237	$	—	$	607,237	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	92,923	$	—	$	—	$	92,923
Foreclosed assets	1,937		—		—		1,937
Total	$	94,860	$	—	$	—	$	94,860

(1)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $17.1 million and $17.9 million at March 31, 2023 and December 31, 2022, respectively.

(2)Derivative financial instruments are included in this category.

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 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. The fair value of equity securities consists of a publicly traded mutual fund, a Community Reinvestment Act (CRA) investment fund and an investment related to the development of new financial technologies that are carried at quoted prices in active markets.

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Equity securities at NAV. Valley also has privately held CRA funds at fair value measured at NAV using the most recently available financial information from the investee. Investments measured at NAV (or its equivalent) as a practical expedient are excluded from fair value hierarchy levels in the tables above.

Trading debt securities. The fair value of trading debt securities, consisting of U.S. Treasury securities and municipal bonds are reported at fair value utilizing Level 1 and Level 2 inputs, respectively. The prices for municipal bonds investments are derived from market quotations and matrix pricing obtained through an independent pricing service. 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.

Available for sale debt securities. U.S. Treasury 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 debt securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume.

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 March 31, 2023 and December 31, 2022 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 values of Valley’s derivatives are determined using third-party prices that are based on discounted cash flow analysis using observed market inputs, such as the LIBOR, Overnight Index Swap and Secured Overnight Financing Rate (SOFR) curves for all cleared derivatives. 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 March 31, 2023 and December 31, 2022), 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 March 31, 2023 and December 31, 2022.

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 collateral dependent loans reported at the fair value of the underlying collateral and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below.

Collateral dependent loans. Collateral dependent loans are loans when foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and substantially all of the repayment is expected from the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral. Collateral values are estimated using Level 3 inputs, consisting of individual third-party appraisals that may be adjusted based on certain discounting criteria. Certain real estate appraisals may be discounted based on specific market data by location and property type. At March 31, 2023, collateral dependent loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses based on the fair value of the underlying

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collateral. At March 31, 2023, collateral dependent loans with a total amortized cost of $140.1 million, including our taxi medallion loan portfolio, were reduced by specific allowance for loan losses allocations totaling $58.8 million to a reported total net carrying amount of $81.3 million.

Foreclosed assets. Certain foreclosed assets (consisting of other real estate owned and other repossessed assets included in other assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value using Level 3 inputs, consisting of a third-party appraisal less estimated cost to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, an asset is re-measured and reported at fair value through a write-down recorded in non-interest expense. There were no adjustments to the appraisals of foreclosed assets at March 31, 2023 and December 31, 2022.

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 operations, 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.

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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 March 31, 2023 and December 31, 2022 were as follows: 

	Fair Value Hierarchy	March 31, 2023				December 31, 2022
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	444,690	$	444,690	$	444,325	$	444,325
Interest bearing deposits with banks	Level 1	5,260,998		5,260,998		503,622		503,622
Equity securities (1)	Level 3	16,342		16,342		15,138		15,138
Held to maturity debt securities:
U.S. Treasury securities	Level 1	66,747		66,182		66,911		65,889
U.S. government agency securities	Level 2	300,614		255,640		260,392		212,712
Obligations of states and political subdivisions	Level 2	473,597		452,919		480,298		453,195
Residential mortgage-backed securities	Level 2	2,893,505		2,525,568		2,909,106		2,495,797
Trust preferred securities	Level 2	37,048		29,992		37,043		31,106
Corporate and other debt securities	Level 2	75,701		70,183		75,234		70,771
Total held to maturity debt securities (2)		3,847,212		3,400,484		3,828,984		3,329,470
Net loans	Level 3	48,223,068		47,389,743		46,458,545		44,910,049
Accrued interest receivable	Level 1	223,608		223,608		196,606		196,606
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	547,686		547,686		238,056		238,056
Financial liabilities
Deposits without stated maturities	Level 1	36,479,540		36,479,540		38,080,457		38,080,457
Deposits with stated maturities	Level 2	11,111,376		11,040,582		9,556,457		9,443,253
Short-term borrowings	Level 1	6,413,056		6,392,459		138,729		138,729
Long-term borrowings	Level 2	2,197,656		2,110,305		1,543,058		1,395,991
Junior subordinated debentures issued to capital trusts	Level 2	56,847		55,042		56,760		50,923
Accrued interest payable (4)	Level 1	85,581		85,581		45,617		45,617

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.

Note 7. Investment Securities

Equity Securities

Equity securities totaled $50.2 million and $48.7 million at March 31, 2023 and December 31, 2022, respectively. See Note 6 for further details on equity securities.

Trading Debt Securities

The fair value of trading debt securities totaled $6.9 million and $13.4 million at March 31, 2023 and December 31, 2022, respectively. Net trading gains and losses were included in net gains and losses on securities transactions within non-interest income. We recorded net trading gains of $402 thousand and net trading losses of $1.1 million for the three months ended March 31, 2023 and 2022, respectively.

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Available for Sale Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2023 and December 31, 2022 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	309,524	$	—	$	(22,779)	$	286,745
U.S. government agency securities	28,394		46		(2,088)		26,352
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,649		—		(652)		9,997
Municipal bonds	171,219		—		(28,441)		142,778
Total obligations of states and political subdivisions	181,868		—		(29,093)		152,775
Residential mortgage-backed securities	699,214		60		(79,498)		619,776
Corporate and other debt securities	193,007		—		(19,419)		173,588
Total	$	1,412,007	$	106	$	(152,877)	$	1,259,236
December 31, 2022
U.S. Treasury securities	$	308,137	$	—	$	(28,639)	$	279,498
U.S. government agency securities	29,494		47		(2,577)		26,964
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,899		—		(493)		10,406
Municipal bonds	171,586		—		(35,181)		136,405
Total obligations of states and political subdivisions	182,485		—		(35,674)		146,811
Residential mortgage-backed securities	719,868		64		(90,114)		629,818
Corporate and other debt securities	197,927		—		(19,621)		178,306
Total	$	1,437,911	$	111	$	(176,625)	$	1,261,397

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The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2023 and December 31, 2022 were as follows: 

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	286,745	$	(22,779)	$	—	$	—	$	286,745	$	(22,779)
U.S. government agency securities	12,003		(1,238)		11,371		(850)		23,374		(2,088)
Obligations of states and political subdivisions:
Obligations of states and state agencies	2,231		(17)		7,766		(635)		9,997		(652)
Municipal bonds	114,299		(20,463)		28,229		(7,978)		142,528		(28,441)
Total obligations of states and political subdivisions	116,530		(20,480)		35,995		(8,613)		152,525		(29,093)
Residential mortgage-backed securities	34,170		(1,506)		582,739		(77,992)		616,909		(79,498)
Corporate and other debt securities	108,625		(9,446)		64,964		(9,973)		173,589		(19,419)
Total	$	558,073	$	(55,449)	$	695,069	$	(97,428)	$	1,253,142	$	(152,877)
December 31, 2022
U.S. Treasury securities	$	279,498	$	(28,639)	$	—	$	—	$	279,498	$	(28,639)
U.S. government agency securities	22,831		(2,538)		1,116		(39)		23,947		(2,577)
Obligations of states and political subdivisions:
Obligations of states and state agencies	2,943		(54)		7,462		(439)		10,405		(493)
Municipal bonds	112,029		(26,044)		24,127		(9,137)		136,156		(35,181)
Total obligations of states and political subdivisions	114,972		(26,098)		31,589		(9,576)		146,561		(35,674)
Residential mortgage-backed securities	311,836		(27,152)		314,834		(62,962)		626,670		(90,114)
Corporate and other debt securities	144,924		(12,581)		33,382		(7,040)		178,306		(19,621)
Total	$	874,061	$	(97,008)	$	380,921	$	(79,617)	$	1,254,982	$	(176,625)

Within the available for sale debt securities portfolio, the total number of security positions in an unrealized loss position was 715 and 730 at March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023, the fair value of available for sale debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law was $870.4 million.

The contractual maturities of available for sale debt securities at March 31, 2023 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.

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	March 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	3,852	$	3,834
Due after one year through five years	282,224		270,503
Due after five years through ten years	173,459		154,742
Due after ten years	253,258		210,381
Residential mortgage-backed securities	699,214		619,776
Total	$	1,412,007	$	1,259,236

Actual maturities of available for sale 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 8.91 years at March 31, 2023.

Impairment Analysis of Available For Sale Debt Securities

Valley's available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges by Valley as a result of the changes in market interest rates, unpredictable nature of the U.S. economy and their potential negative effect on the future performance of the security issuers.

Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Based on a comparison of the present value of expected cash flows to the amortized cost, Valley recognized a credit related impairment of one corporate bond issued by Signature Bank resulting in a provision for credit losses and full charge-off of the bond totaling $5.0 million during the three months ended March 31, 2023. Valley also evaluated available for sale debt securities that are in an unrealized loss position as of March 31, 2023 included in the table above and has determined that the declines in fair value are mainly attributable to interest rates, credit spreads, market volatility and liquidity conditions, not credit quality or other factors. There was no impairment recognized during the three months ended March 31, 2022.

Accrued interest on investments, which is excluded from the amortized cost of available for sale debt securities, totaled $5.1 million and $5.6 million at March 31, 2023 and December 31, 2022, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The following table details the activity in the allowance for credit losses for the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
	(in thousands)
Beginning balance	$	—
Provision for credit losses	5,000
Charge-offs	(5,000)
Ending balance	$	—

Valley does not intend to sell any of its available for sale debt securities in an unrealized loss position prior to recovery of their amortized cost basis, and it is more likely than not that Valley will not be required to sell any of its securities prior to recovery of their amortized cost basis. None of the available for sale debt securities were past due

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as of March 31, 2023 and there was no allowance for credit losses for available for sale debt securities at March 31, 2023, December 31, 2022 and March 31, 2022.

Held to Maturity Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2023 and December 31, 2022 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Value
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,747	$	—	$	(565)	$	66,182	$	—	$	66,747
U.S. government agency securities	300,614		25		(44,999)		255,640		—		300,614
Obligations of states and political subdivisions:
Obligations of states and state agencies	96,693		341		(4,149)		92,885		257		96,436
Municipal bonds	376,904		112		(16,982)		360,034		86		376,818
Total obligations of states and political subdivisions	473,597		453		(21,131)		452,919		343		473,254
Residential mortgage-backed securities	2,893,505		2,752		(370,689)		2,525,568		—		2,893,505
Trust preferred securities	37,048		1		(7,057)		29,992		775		36,273
Corporate and other debt securities	75,701		—		(5,518)		70,183		515		75,186
Total	$	3,847,212	$	3,231	$	(449,959)	$	3,400,484	$	1,633	$	3,845,579
December 31, 2022
U.S. Treasury securities	$	66,911	$	—	$	(1,022)	$	65,889	$	—	$	66,911
U.S. government agency securities	260,392		—		(47,680)		212,712		—		260,392
Obligations of states and political subdivisions:
Obligations of states and state agencies	99,238		305		(3,869)		95,674		252		98,986
Municipal bonds	381,060		76		(23,615)		357,521		41		381,019
Total obligations of states and political subdivisions	480,298		381		(27,484)		453,195		293		480,005
Residential mortgage-backed securities	2,909,106		1,723		(415,032)		2,495,797		—		2,909,106
Trust preferred securities	37,043		1		(5,938)		31,106		888		36,155
Corporate and other debt securities	75,234		—		(4,463)		70,771		465		74,769
Total	$	3,828,984	$	2,105	$	(501,619)	$	3,329,470	$	1,646	$	3,827,338

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The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2023 and December 31, 2022 were as follows: 

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,182	$	(565)	$	—	$	—	$	66,182	$	(565)
U.S. government agency securities	211,526		(44,773)		2,925		(226)		214,451		(44,999)
Obligations of states and political subdivisions:
Obligations of states and state agencies	20,457		(789)		39,627		(3,360)		60,084		(4,149)
Municipal bonds	226,278		(13,671)		26,411		(3,311)		252,689		(16,982)
Total obligations of states and political subdivisions	246,735		(14,460)		66,038		(6,671)		312,773		(21,131)
Residential mortgage-backed securities	381,802		(33,941)		1,944,360		(336,748)		2,326,162		(370,689)
Trust preferred securities	—		—		28,990		(7,057)		28,990		(7,057)
Corporate and other debt securities	37,579		(2,122)		24,604		(3,396)		62,183		(5,518)
Total	$	943,824	$	(95,861)	$	2,066,917	$	(354,098)	$	3,010,741	$	(449,959)
December 31, 2022
U.S. Treasury securities	$	65,889	$	(1,022)	$	—	$	—	$	65,889	$	(1,022)
U.S. government agency securities	209,863		(47,508)		1,673		(172)		211,536		(47,680)
Obligations of states and political subdivisions:
Obligations of states and state agencies	62,443		(2,020)		18,231		(1,849)		80,674		(3,869)
Municipal bonds	251,970		(20,457)		15,534		(3,158)		267,504		(23,615)
Total obligations of states and political subdivisions	314,413		(22,477)		33,765		(5,007)		348,178		(27,484)
Residential mortgage-backed securities	962,690		(109,532)		1,413,590		(305,500)		2,376,280		(415,032)
Trust preferred securities	—		—		30,105		(5,938)		30,105		(5,938)
Corporate and other debt securities	57,245		(2,989)		13,525		(1,474)		70,770		(4,463)
Total	$	1,610,100	$	(183,528)	$	1,492,658	$	(318,091)	$	3,102,758	$	(501,619)

Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 766 and 802 at March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023, 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 $2.5 billion.

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The contractual maturities of investments in debt securities held to maturity at March 31, 2023 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.

	March 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	63,872	$	63,355
Due after one year through five years	169,205		165,906
Due after five years through ten years	96,385		92,034
Due after ten years	624,245		553,621
Residential mortgage-backed securities	2,893,505		2,525,568
Total	$	3,847,212	$	3,400,484

Actual maturities of held to maturity 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 11.67 years at March 31, 2023.

23

Credit Quality Indicators

Valley monitors the credit quality of the held to maturity debt securities through the use of the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2023 and December 31, 2022.

	AAA/AA/A Rated		BBB rated		Non-investment grade rated		Non-rated		Total
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,747	$	—	$	—	$	—	$	66,747
U.S. government agency securities	300,614		—		—		—		300,614
Obligations of states and political subdivisions:
Obligations of states and state agencies	73,278		—		5,437		17,978		96,693
Municipal bonds	328,202		—		—		48,702		376,904
Total obligations of states and political subdivisions	401,480		—		5,437		66,680		473,597
Residential mortgage-backed securities	2,893,505		—		—		—		2,893,505
Trust preferred securities	—		—		—		37,048		37,048
Corporate and other debt securities	—		6,000		—		69,701		75,701
Total	$	3,662,346	$	6,000	$	5,437	$	173,429	$	3,847,212
December 31, 2022
U.S. Treasury securities	$	66,911	$	—	$	—	$	—	$	66,911
U.S. government agency securities	260,392		—		—		—		260,392
Obligations of states and political subdivisions:
Obligations of states and state agencies	74,943		—		5,497		18,798		99,238
Municipal bonds	333,488		—		—		47,572		381,060
Total obligations of states and political subdivisions	408,431		—		5,497		66,370		480,298
Residential mortgage-backed securities	2,909,106		—		—		—		2,909,106
Trust preferred securities	—		—		—		37,043		37,043
Corporate and other debt securities	2,000		6,000		—		67,234		75,234
Total	$	3,646,840	$	6,000	$	5,497	$	170,647	$	3,828,984

Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At March 31, 2023, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the "non-rated" category included tax exempt mortgage securities (TEMS) secured by Ginnie Mae securities. Trust preferred securities consist of non-rated single-issuer securities, issued by bank holding companies. Corporate and other debt securities in the non-rated category mostly consist of high quality foreign issued bonds.

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero-loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and TEMS collateralized municipal bonds.

Accrued interest on investments, which is excluded from the amortized cost of held to maturity debt securities, totaled $12.7 million and $13.5 million at March 31, 2023 and December 31, 2022, respectively, and is presented

24

within total accrued interest receivable on the consolidated statements of financial condition. Held to maturity debt securities are carried net of an allowance for credit losses.

The following table details the activity in the allowance for credit losses for the three months ended March 31, 2023 and 2022: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Beginning balance	$	1,646	$	1,165
(Credit) provision for credit losses	(13)		57
Ending balance	$	1,633	$	1,222

There were no sales of available for sale and held to maturity debt securities debt securities during the three months ended March 31, 2023 and 2022, respectively.

Note 8. Loans and Allowance for Credit Losses for Loans

The detail of the loan portfolio as of March 31, 2023 and December 31, 2022 was as follows: 

	March 31, 2023		December 31, 2022
	(in thousands)
Loans:
Commercial and industrial	$	9,043,946	$	8,804,830
Commercial real estate:
Commercial real estate	27,051,111		25,732,033
Construction	3,725,967		3,700,835
Total commercial real estate loans	30,777,078		29,432,868
Residential mortgage	5,486,280		5,364,550
Consumer:
Home equity	516,592		503,884
Automobile	1,717,141		1,746,225
Other consumer	1,118,929		1,064,843
Total consumer loans	3,352,662		3,314,952
Total loans	$	48,659,966	$	46,917,200

Total loans include net unearned discounts and deferred loan fees of $125.4 million and $120.5 million at March 31, 2023 and December 31, 2022, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $192.6 million and $175.9 million at March 31, 2023 and December 31, 2022, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

There were no sales of loans from the held for investment portfolio during the three months ended March 31, 2023 and 2022.

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Credit Risk Management

For all of its loan types, 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. Additionally, Valley does not accept crypto assets as loan collateral for any of its loan portfolio classes. See Valley’s Annual Report on Form 10-K for the year ended December 31, 2022 for further details.

Credit Quality

The following table presents past due, current and non-accrual loans without an allowance for loan losses by loan portfolio class at March 31, 2023 and December 31, 2022:

	Past Due and Non-Accrual Loans
	30-59  Days  Past Due Loans		60-89  Days  Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
March 31, 2023
Commercial and industrial	$	20,716	$	24,118	$	8,927	$	78,606	$	132,367	$	8,911,579	$	9,043,946	$	6,675
Commercial real estate:
Commercial real estate	13,580		—		—		67,938		81,518		26,969,593		27,051,111		66,587
Construction	—		—		6,450		68,649		75,099		3,650,868		3,725,967		15,791
Total commercial real estate loans	13,580		—		6,450		136,587		156,617		30,620,461		30,777,078		82,378
Residential mortgage	12,599		2,133		1,668		23,483		39,883		5,446,397		5,486,280		18,694
Consumer loans:
Home equity	412		287		48		2,965		3,712		512,880		516,592		—
Automobile	4,598		502		282		262		5,644		1,711,497		1,717,141		—
Other consumer	2,835		730		417		91		4,073		1,114,856		1,118,929		—
Total consumer loans	7,845		1,519		747		3,318		13,429		3,339,233		3,352,662		—
Total	$	54,740	$	27,770	$	17,792	$	241,994	$	342,296	$	48,317,670	$	48,659,966	$	107,747

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	Past Due and Non-Accrual Loans
	30-59 Days Past Due Loans		60-89  Days Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
December 31, 2022
Commercial and industrial	$	11,664	$	12,705	$	18,392	$	98,881	$	141,642	$	8,663,188	$	8,804,830	$	5,659
Commercial real estate:
Commercial real estate	6,638		3,167		2,292		68,316		80,413		25,651,620		25,732,033		66,066
Construction	—		—		3,990		74,230		78,220		3,622,615		3,700,835		16,120
Total commercial real estate loans	6,638		3,167		6,282		142,546		158,633		29,274,235		29,432,868		82,186
Residential mortgage	16,146		3,315		1,866		25,160		46,487		5,318,063		5,364,550		14,224
Consumer loans:
Home equity	955		254		—		2,810		4,019		499,865		503,884		117
Automobile	5,974		630		1		271		6,876		1,739,349		1,746,225		—
Other consumer	2,158		695		46		93		2,992		1,061,851		1,064,843		—
Total consumer loans	9,087		1,579		47		3,174		13,887		3,301,065		3,314,952		117
Total	$	43,535	$	20,766	$	26,587	$	269,761	$	360,649	$	46,556,551	$	46,917,200	$	102,186

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. Pass rated loans 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.

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The following table presents the internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at March 31, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2023:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	435,733	$	1,418,804	$	1,021,874	$	549,408	$	304,137	$	628,117	$	4,450,850	$	130	$	8,809,053
Special Mention	1,573		27,386		2,591		19,260		3,658		7,443		61,455		7		123,373
Substandard	10		517		2,832		2,617		1,203		6,904		25,847		—		39,930
Doubtful	—		777		1,552		—		2,683		63,707		2,871		—		71,590
Total commercial and industrial	$	437,316	$	1,447,484	$	1,028,849	$	571,285	$	311,681	$	706,171	$	4,541,023	$	137	$	9,043,946
Commercial real estate
Risk Rating:
Pass	$	1,607,961	$	6,740,087	$	5,201,027	$	3,287,689	$	2,520,271	$	6,316,475	$	490,136	$	3,407	$	26,167,053
Special Mention	26,512		55,889		46,317		63,647		71,474		251,353		6,720		—		521,912
Substandard	—		33,613		35,924		30,090		34,765		219,838		7,916		—		362,146
Total commercial real estate	$	1,634,473	$	6,829,589	$	5,283,268	$	3,381,426	$	2,626,510	$	6,787,666	$	504,772	$	3,407	$	27,051,111
Construction
Risk Rating:
Pass	$	120,282	$	928,489	$	415,212	$	70,371	$	15,502	$	36,863	$	2,079,911	$	—	$	3,666,630
Substandard	—		13		12,290		—		964		17,600		7,351		—		38,218
Doubtful	447		8,341		670		11,661		—		—		—		—		21,119
Total construction	$	120,729	$	936,843	$	428,172	$	82,032	$	16,466	$	54,463	$	2,087,262	$	—	$	3,725,967
Gross loan charge-offs	$	—	$	6,035	$	20,286	$	123	$	72	$	1,636	$	3,593	$	—	$	31,745

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	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	1,600,747	$	1,089,386	$	590,406	$	322,564	$	250,031	$	386,085	$	4,307,163	$	144	$	8,546,526
Special Mention	31,557		3,367		19,492		4,732		4,369		3,558		51,021		7		118,103
Substandard	288		1,734		4,121		1,412		4,256		4,879		31,698		—		48,388
Doubtful	886		20,844		—		2,692		—		64,158		3,233		—		91,813
Total commercial and industrial	$	1,633,478	$	1,115,331	$	614,019	$	331,400	$	258,656	$	458,680	$	4,393,115	$	151	$	8,804,830
Commercial real estate
Risk Rating:
Pass	$	6,815,115	$	5,168,127	$	3,246,885	$	2,672,223	$	1,536,327	$	5,027,128	$	452,461	$	3,504	$	24,921,770
Special Mention	93,286		48,007		60,169		45,447		62,111		125,414		8,188		—		442,622
Substandard	15,088		34,475		32,630		34,622		59,337		183,341		7,986		—		367,479
Doubtful	—		—		—		—		—		162		—		—		162
Total commercial real estate	$	6,923,489	$	5,250,609	$	3,339,684	$	2,752,292	$	1,657,775	$	5,336,045	$	468,635	$	3,504	$	25,732,033
Construction
Risk Rating:
Pass	$	942,380	$	512,046	$	61,131	$	22,845	$	8,676	$	20,599	$	2,040,866	$	—	$	3,608,543
Special Mention	—		—		—		—		—		—		14,268		—		14,268
Substandard	12,969		12,601		—		974		—		17,599		20,138		—		64,281
Doubtful	—		—		—		—		—		13,743		—		—		13,743
Total construction	$	955,349	$	524,647	$	61,131	$	23,819	$	8,676	$	51,941	$	2,075,272	$	—	$	3,700,835

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For residential mortgages, automobile, home equity and other consumer loan portfolio classes, Valley also evaluates credit quality based on the aging status of the loan and by payment activity. The following table presents the amortized cost in those loan classes based on payment activity, by origination year as of March 31, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2023:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	222,494	$	1,317,372	$	1,521,543	$	572,064	$	478,014	$	1,300,107	$	66,947	$	—	$	5,478,541
90 days or more past due	—		1,473		1,754		—		499		4,013		—		—		7,739
Total residential mortgage	$	222,494	$	1,318,845	$	1,523,297	$	572,064	$	478,513	$	1,304,120	$	66,947	$	—	$	5,486,280
Consumer loans
Home equity
Performing	$	7,251	$	46,566	$	12,085	$	4,448	$	4,891	$	18,499	$	383,948	$	37,984	$	515,672
90 days or more past due	—		—		—		—		—		—		285		635		920
Total home equity	7,251		46,566		12,085		4,448		4,891		18,499		384,233		38,619		516,592
Automobile
Performing	141,743		687,328		480,634		181,994		144,130		80,995		—		—		1,716,824
90 days or more past due	—		1		51		19		105		141		—		—		317
Total automobile	141,743		687,329		480,685		182,013		144,235		81,136		—		—		1,717,141
Other consumer
Performing	4,898		23,313		9,056		8,020		7,374		2,615		1,063,356		—		1,118,632
90 days or more past due	—		28		—		2		—		38		229		—		297
Total other consumer	4,898		23,341		9,056		8,022		7,374		2,653		1,063,585		—		1,118,929
Total consumer	$	153,892	$	757,236	$	501,826	$	194,483	$	156,500	$	102,288	$	1,447,818	$	38,619	$	3,352,662
Gross loan charge-offs	$	—	$	146	$	109	$	4	$	170	$	388	$	11	$	—	$	828

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	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	1,302,279	$	1,502,622	$	571,390	$	500,197	$	338,062	$	1,073,995	$	66,706	$	—	$	5,355,251
90 days or more past due	—		197		217		1,835		2,876		4,174		—		—		9,299
Total residential mortgage	$	1,302,279	$	1,502,819	$	571,607	$	502,032	$	340,938	$	1,078,169	$	66,706	$	—	$	5,364,550
Consumer loans
Home equity
Performing	$	47,084	$	12,432	$	4,592	$	5,024	$	5,581	$	13,007	$	376,608	$	38,570	$	502,898
90 days or more past due	—		—		—		—		—		—		276		710		986
Total home equity	47,084		12,432		4,592		5,024		5,581		13,007		376,884		39,280		503,884
Automobile
Performing	724,557		525,017		204,578		166,103		80,012		45,415		—		—		1,745,682
90 days or more past due	38		116		36		180		101		72		—		—		543
Total automobile	724,595		525,133		204,614		166,283		80,113		45,487		—		—		1,746,225
Other consumer
Performing	24,140		10,144		8,206		7,435		7,406		15,736		991,737		—		1,064,804
90 days or more past due	—		—		—		—		—		38		1		—		39
Total other consumer	24,140		10,144		8,206		7,435		7,406		15,774		991,738		—		1,064,843
Total consumer	$	795,819	$	547,709	$	217,412	$	178,742	$	93,100	$	74,268	$	1,368,622	$	39,280	$	3,314,952

Loan modifications to borrowers experiencing financial difficulty. 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. Prior to 2023, a loan was classified as a troubled debt restructuring (TDR) if the borrower was experiencing financial difficulties and a concession has been made at the time of such modification.

Effective January 1, 2023, Valley adopted ASU No. 2022-02 which eliminated the accounting guidance for TDR loans while enhancing disclosure requirements for certain loan modifications by creditors when a borrower is experiencing financial difficulty. Valley adopted ASU No. 2022-02 using the modified retrospective transition method. At the date of adoption, Valley was no longer required to utilize a loan-level discounted cash flow approach for determining the allowance for certain modified loans previously classified as TDR loans. As a result, Valley elected to utilize its collective reserve methodology for pools of loans that share common risk characteristic for determining the reserves for the modified loans formerly classified as TDR loans. This change resulted in the recognition of a cumulative-effect adjustment which decreased the allowance for loan losses with an offsetting entry to retained earnings, net of deferred taxes, at January 1, 2023.

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The following table shows the amortized cost basis of loans to borrowers experiencing financial difficulty at March 31, 2023 that were modified during the three months ended March 31, 2023, disaggregated by class of financing receivable and type of modification. Each of the types of modifications was less than one percent of their respective loan categories.

	Three Months Ended March 31,
	Term extension		Term extension and interest rate reduction		Total
	($ in thousands)
Commercial and industrial	$	1,281	$	523	$	1,804
Commercial real estate	46,328		—		46,328
Residential mortgage	213		—		213
Consumer	60		—		60
Total	$	47,882	$	523	$	48,405

The following table describes the types of modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023:

	Types of Modifications
Commercial and industrial	12 month term extensions; and 12 month term extensions combined with interest rate reductions from 2.11 percent to 1 percent
Commercial real estate	6 - 36 month term extensions
Residential mortgage	12 month term extensions
Consumer	60 month term extensions

Valley closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. All loans to borrowers experiencing financial difficulty that have been modified during the three months ended March 31, 2023 were current to their contractual payments as of March 31, 2023.

Valley did not extend any commitments to lend additional funds to borrowers experiencing financial difficulty whose loans had been modified during the three months ended March 31, 2023.

Troubled debt restructured loans. The following tables present the pre- and post-modification amortized cost of TDR loans by loan class during the three months ended March 31, 2022. Post-modification amounts are presented as of March 31, 2022 using the allowance methodology for TDRs prior to the adoption of ASU 2022-02.

	Three Months Ended March 31, 2022
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	11	$	9,684	$	9,662
Commercial real estate	2	5,260		5,251
Residential mortgage	1	121		117
Total	14	$	15,065	$	15,030

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The total TDRs presented in the above tables had allocated allowance for loan losses of $7.8 million at March 31, 2022. There were no charge-offs related to TDRs for the three months ended March 31, 2022. Valley did not extend any commitments to lend additional funds to borrowers whose loans have been modified as TDRs during the three months ended March 31, 2022.

Performing TDRs (not reported as non-accrual loans) and non-performing TDRs totaled $56.5 million and $104.7 million as of March 31, 2022.

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 three months ended March 31, 2022 were as follows:

	Three Months Ended March 31, 2022
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	2	$	1,850
Construction	2	17,599
Total	4	$	19,449

Loans in process of foreclosure. Other real estate owned (OREO) totaled $1.2 million and $286 thousand at March 31, 2023 and December 31, 2022, respectively. There were no foreclosed residential real estate properties included in OREO at March 31, 2023 and December 31, 2022. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1.5 million and $2.6 million at March 31, 2023 and December 31, 2022, respectively.

Collateral dependent loans. Loans are collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When Valley determines that foreclosure is probable, the collateral dependent loan balances are written down to the estimated current fair value (less estimated selling costs) 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.

The following table presents collateral dependent loans by class as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	74,481	$	94,433
Commercial real estate	144,892		130,199
Residential mortgage	18,694		33,865
Home equity	—		195
Total	$	238,067	$	258,692

* Commercial and industrial loans presented in the table above are primarily collateralized by taxi medallions.

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Allowance for Credit Losses for Loans

The allowance for credit losses (ACL) for loans consists of the allowance for loan losses and the allowance for unfunded credit commitments. The ACL for loans decreased $22.3 million at March 31, 2023 as compared to December 31, 2022.

The following table summarizes the ACL for loans at March 31, 2023 and December 31, 2022: 

	March 31, 2023		December 31, 2022
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	436,898	$	458,655
Allowance for unfunded credit commitments	24,071		24,600
Total allowance for credit losses for loans	$	460,969	$	483,255

The following table summarizes the provision for credit losses for loans for the periods indicated:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	9,979	$	3,258
(Credit) provision for unfunded credit commitments	(529)		242
Total provision for credit losses for loans	$	9,450	$	3,500

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The following table details the activity in the allowance for loan losses by loan portfolio segment for the three months ended March 31, 2023 and 2022: 

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended March 31, 2023
Allowance for loan losses:
Beginning balance	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Impact of the adoption of ASU No. 2022-02 *	(739)		(589)		(12)		(28)		(1,368)
Beginning balance, adjusted	$	139,202	$	258,819	$	39,008	$	20,258	$	457,287
Loans charged-off	(26,047)		(5,698)		—		(828)		(32,573)
Charged-off loans recovered	1,399		24		21		761		2,205
Net (charge-offs) recoveries	(24,648)		(5,674)		21		(67)		(30,368)
Provision (credit) for loan losses	13,438		(9,813)		2,679		3,675		9,979
Ending balance	$	127,992	$	243,332	$	41,708	$	23,866	$	436,898
Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans charged-off	(1,571)		(173)		(26)		(825)		(2,595)
Charged-off loans recovered	824		107		457		1,257		2,645
Net (charge-offs) recoveries	(747)		(66)		431		432		50
(Credit) provision for loan losses	(1,140)		2,525		2,638		(765)		3,258
Ending balance	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510

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The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the allowance measurement methodology at March 31, 2023 and December 31, 2022.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
March 31, 2023
Allowance for loan losses:
Individually evaluated for credit losses	$	46,151	$	13,445	$	34	$	—	$	59,630
Collectively evaluated for credit losses	81,841		229,887		41,674		23,866		377,268
Total	$	127,992	$	243,332	$	41,708	$	23,866	$	436,898
Loans:
Individually evaluated for credit losses	$	74,625	$	144,892	$	12,028	$	6,929	$	238,474
Collectively evaluated for credit losses	8,969,321		30,632,186		5,474,252		3,345,733		48,421,492
Total	$	9,043,946	$	30,777,078	$	5,486,280	$	3,352,662	$	48,659,966
December 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	68,745	$	13,174	$	337	$	4,338	$	86,594
Collectively evaluated for credit losses	71,196		246,234		38,683		15,948		372,061
Total	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Loans:
Individually evaluated for credit losses	$	117,644	$	213,522	$	28,869	$	14,058	$	374,093
Collectively evaluated for credit losses	8,687,186		29,219,346		5,335,681		3,300,894		46,543,107
Total	$	8,804,830	$	29,432,868	$	5,364,550	$	3,314,952	$	46,917,200

Note 9. Goodwill and Other Intangible Assets

The carrying amounts of goodwill allocated to Valley's business segments, or reporting units thereof, for goodwill impairment analysis at both March 31, 2023 and December 31, 2022 were as follows:

Business Segment / Reporting Unit *
Wealth Management		Consumer Banking		Commercial Banking		Total
(in thousands)
$	49,767	$	284,873	$	1,534,296	$	1,868,936

*    Valley’s Wealth Management and Insurance Division is comprised of trust, asset management, brokerage, insurance and tax credit advisory services. This reporting unit is included in the Consumer Banking segment for financial reporting purposes.

During the three months ended March 31, 2023, there were no triggering events that would more likely than not

reduce the fair value of any reporting unit below its carrying amount. There was no impairment of goodwill recognized during the three months ended March 31, 2023 and 2022.

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The following table summarizes other intangible assets as of March 31, 2023 and December 31, 2022: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2023
Loan servicing rights	$	120,177	$	(97,332)	$	22,845
Core deposits	215,620		(92,048)		123,572
Other	50,393		(9,639)		40,754
Total other intangible assets	$	386,190	$	(199,019)	$	187,171
December 31, 2022
Loan servicing rights	$	119,943	$	(96,136)	$	23,807
Core deposits	223,670		(92,486)		131,184
Other	51,299		(8,834)		42,465
Total other intangible assets	$	394,912	$	(197,456)	$	197,456

Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from 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. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. There was no net impairment recognized during the three months ended March 31, 2023 and 2022.

Core deposits are amortized using an accelerated method over a period of 10.0 years. The line item labeled “Other” included in the table above primarily consists of customer lists, certain financial asset servicing contracts and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 13.4 years.

Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three months ended March 31, 2023 and 2022.

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2023 through 2027: 

Year	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2023	$	2,365	$	21,135	$	4,810
2024	2,813		24,897		5,951
2025	2,461		21,048		5,380
2026	2,143		17,223		4,805
2027	1,861		13,544		4,205

Valley recognized amortization expense on other intangible assets totaling approximately $10.5 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively.

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Note 10. Deposits

Included in time deposits are certificates of deposit over $250 thousand totaling $1.7 billion and $1.8 billion at March 31, 2023 and December 31, 2022, respectively. Interest expense on time deposits of $250 thousand or more totaled $2.8 million and $107 thousand for the three months ended March 31, 2023 and 2022, respectively.

The scheduled maturities of time deposits as of March 31, 2023 were as follows: 

Year	Amount
	(in thousands)
2023	6,859,391
2024	2,578,459
2025	61,015
2026	120,032
2027	45,077
Thereafter	1,447,402
Total time deposits	$	11,111,376

Note 11. Borrowed Funds

Short-Term Borrowings

Short-term borrowings at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
FHLB advances	$	6,300,000	$	24,035
Securities sold under agreements to repurchase	113,056		114,694
Total short-term borrowings	$	6,413,056	$	138,729

The weighted average interest rate for short-term FHLB advances was 5.18 percent and 1.6 percent at March 31, 2023 and December 31, 2022, respectively.

Long-Term Borrowings

Long-term borrowings at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
FHLB advances, net (1)	$	1,438,361	$	788,419
Subordinated debt, net (2)	759,295		754,639
Total long-term borrowings	$	2,197,656	$	1,543,058

(1)	FHLB advances are presented net of unamortized premiums totaling $361 thousand and $419 thousand at March 31, 2023 and December 31, 2022, respectively.
(2)	Subordinated debt is presented net of unamortized debt issuance costs totaling $6.5 million and $6.9 million at March 31, 2023 and December 31, 2022, respectively.

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FHLB Advances. Long-term FHLB advances had a weighted average interest rate of 3.66 percent and 1.88 percent at March 31, 2023 and December 31, 2022, respectively. 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.

The long-term FHLB advances at March 31, 2023 are scheduled for contractual balance repayments as follows:

Year	Amount
	(in thousands)
2024	$	165,000
2025	273,000
2026	350,000
2027	425,000
Thereafter	225,000
Total long-term FHLB advances	$	1,438,000

There are no FHLB advances reported in the table above, which are callable for early redemption by the FHLB during the next 12 months.

Subordinated debt. There were no new issuances of the subordinated debt during the three months ended March 31, 2023. See Note 10 in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022 for details on the outstanding subordinated debt.

Note 12. Stock–Based Compensation

On April 25, 2023, Valley's shareholders approved the Valley National Bancorp 2023 Incentive Compensation Plan (the 2023 Plan). The purpose of the 2023 Plan is to provide additional long-term incentives to employees, directors and officers whose contributions are essential to the continued growth and success of Valley. Upon shareholder approval of the 2023 Plan, Valley ceased granting awards under the Valley National Bancorp 2021 Incentive Compensation Plan (the 2021 Plan).

Under the 2023 Plan, Valley may issue awards to its officers, employees and non-employee directors in amounts up to 14.5 million shares of common stock, less one share for every share granted after December 31, 2022 under the 2021 Plan. These awards may be in the form of stock appreciation rights, incentive and non-qualified stock options, restricted stock, and restricted stock units (RSUs). If after December 31, 2022, share awards granted under the 2021 Plan are forfeited, expire, settled for cash, withheld for tax obligations, or otherwise not issued, the shares will be added to the 2023 Plan's share reserve. 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. Performance-based awards may also be based on 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 granted 1.5 million and 1.2 million time-based RSUs during the three months ended March 31, 2023 and 2022, respectively. Generally, time-based RSUs vest ratably over a three-year period. The average grant date fair value of the RSUs granted during the three months ended March 31, 2023 and 2022 was $11.91 per share and $14.05 per share, respectively.

Valley granted 723 thousand and 567 thousand performance-based RSUs to certain officers for the three months ended March 31, 2023 and 2022, respectively. The performance-based RSU awards include RSUs with vesting conditions based upon certain levels of growth in Valley's tangible book value per share, plus dividends; and RSUs, with vesting conditions based upon Valley's total shareholder return as compared to its peer group. The RSUs “cliff” vest after three years based on the cumulative performance of Valley during that time period. The RSUs earn

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dividend equivalents (equal to cash dividends paid on Valley's common stock) over the applicable performance period. Dividend equivalents accumulate and are paid to the grantee at the vesting date, or forfeited if the performance conditions are not met. The grant date fair value of the performance-based RSUs granted during the three months ended March 31, 2023 and 2022 was $12.80 per share and $14.82 per share, respectively.

Valley recorded total stock-based compensation expense of $8.1 million and $7.3 million for the three months ended March 31, 2023 and 2022, respectively. Stock award fair values are expensed over the shorter of the vesting or required service period. As of March 31, 2023, the unrecognized amortization expense for all stock-based employee compensation totaled approximately $56.6 million. This expense will be recognized over an average remaining vesting period of approximately 2.2 years.

Note 13. Derivative Instruments and Hedging Activities

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 and currency rates.

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 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, respectively.

At March 31, 2023, Valley had six interest rate swaps with a total notional amount of $600 million, to hedge the changes in cash flows associated with certain variable rate loans. Valley is required to pay variable rate amounts based on one-month CME Term SOFR and receives fixed rate payments based on the tenor of each swap. Expiration dates for the swaps range from November 2024 to November 2026.

Fair Value Hedges of Fixed Rate Assets and Liabilities. Valley is exposed to changes in the fair value of fixed-rate subordinated debt due to changes in interest rates. Valley uses interest rate swaps to manage its exposure to changes in fair value on fixed rate debt instruments attributable to changes in the designated benchmark interest rate. 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.

Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide a 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. 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 these interest rate swaps 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 March 31, 2023, Valley had 33 credit swaps with an aggregate notional amount of $409.2 million related to risk participation agreements. 

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At March 31, 2023, Valley had two “steepener” swaps, each with a current notional amount of $10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and 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 the 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 rate on Valley's commitments to fund the loans as well as on its portfolio of mortgage loans held for sale.

Valley enters into foreign currency forward and option contracts, primarily to accommodate our customers, that are not designated as hedging instruments. Upon the origination of a certain foreign currency denominated transactions (including foreign currency holdings and non-U.S. dollar denominated loans) with a client, we enter into a respective hedging contract with a third party financial institution to mitigate the economic impact of foreign currency exchange rate fluctuation.

Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: 

	March 31, 2023						December 31, 2022
	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	$	7,866	$	—	$	600,000	$	3,971	$	4	$	600,000
Fair value hedge interest rate swaps	—		27,858		300,000		—		29,794		300,000
Total derivatives designated as hedging instruments	$	7,866	$	27,858	$	900,000	$	3,971	$	29,798	$	900,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*	$	429,195	$	457,508	$	15,298,441	$	449,280	$	564,678	$	14,753,330
Foreign currency derivatives	9,540		8,944		1,848,883		13,709		12,604		1,273,735
Mortgage banking derivatives	148		242		51,106		167		157		31,299
Total derivatives not designated as hedging instruments	$	438,883	$	466,694	$	17,198,430	$	463,156	$	577,439	$	16,058,364

* Other derivative contracts include risk participation agreements.

The Chicago Mercantile Exchange and London Clearing House variation margins are classified as a single-unit of account as settlements of the cash flow hedges and other non-designated derivative instruments. As a result, the fair value of the applicable derivative assets and liabilities are reported net of variation margin at March 31, 2023 and December 31, 2022 in the table above.

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Gains (losses) included in the consolidated statements of income and other comprehensive loss, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(531)	$	(542)
Amount of gain recognized in other comprehensive loss	3,898		320

The accumulated after-tax gains related to effective cash flow hedges included in accumulated other comprehensive loss were $5.4 million and $2.2 million at March 31, 2023 and December 31, 2022, 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 $2.1 million before tax will be reclassified as an increase to interest expense over the next 12 months.

Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Derivative - interest rate swap:
Interest expense	$	4,692	$	530
Hedged item - subordinated debt
Interest expense	$	(4,772)	$	(530)

The changes in the fair value of the hedged item designated as a qualifying hedge are captured as an adjustment to the carrying amount of the hedged item (basis adjustment). The following table presents the hedged item 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 item at March 31, 2023 and December 31, 2022, respectively.

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)
March 31, 2023
Long-term borrowings	$	272,051	$	(25,360)
December 31, 2022
Long-term borrowings	$	267,076	$	(30,132)

*    Net carrying amount includes unamortized debt issuance costs of $2.6 million and $2.8 million at March 31, 2023 and December 31, 2022, respectively.

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

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$	208	$	(2,797)

Capital markets income reported in non-interest income included fee income related to non-designated hedge derivative interest rate swaps (not designated as hedging instruments) executed with commercial loan customers and foreign exchange fees with a combined total of $9.9 million and $14.4 million for the three months ended March 31, 2023 and 2022, respectively.

Collateral Requirements and Credit Risk Related Contingent 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 counterparties could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of March 31, 2023, Valley was in compliance with all of the provisions of its derivative counterparty agreements. The aggregate fair value of all derivative financial instruments with credit risk-related contingent features in a net liability position at March 31, 2023 was not material. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties.

Note 14. Balance Sheet Offsetting

Certain financial instruments, including certain over-the-counter (OTC) derivatives (mostly interest rate swaps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated statements of financial condition and/or subject to master netting arrangements or similar agreements. OTC derivatives include interest rate swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house (presented in the table below). The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting 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 swap or repurchase agreement should Valley be in default. The total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty.

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The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2023 and December 31, 2022.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2023
Assets
Interest rate swaps	$	437,061	$	—	$	437,061	$	30,473	$	(301,740)	$	165,794
Liabilities
Interest rate swaps	$	485,366	$	—	$	485,366	$	(30,473)	$	(681)	$	454,212
December 31, 2022
Assets
Interest rate swaps	$	453,251	$	—	$	453,251	$	12,766	$	(342,480)	$	123,537
Liabilities
Interest rate swaps	$	594,476	$	—	$	594,476	$	(12,766)	$	(432)	$	581,278

*    Cash collateral received from or pledged to our counterparties in relation to market value exposures of OTC derivative contacts in an asset/liability position.

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Note 15. Tax Credit Investments

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 in 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 impairments, if applicable.

The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	22,813	$	24,198
Other tax credit investments, net	53,812		56,551
Total tax credit investments, net	$	76,625	$	80,749
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,338	$	1,338
Total unfunded tax credit commitments	$	1,338	$	1,338

The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three months ended March 31, 2023 and 2022: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	1,459	$	744
Other tax credit investment credits and tax benefits	3,221		2,551
Total reduction in income tax expense	$	4,680	$	3,295
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	937	$	415
Affordable housing tax credit investment impairment losses	448		262
Other tax credit investment losses	6		309
Other tax credit investment impairment losses	2,862		1,910
Total amortization of tax credit investments recorded in non-interest expense	$	4,253	$	2,896

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Note 16. Operating Segments

At March 31, 2023 and December 31, 2022, Valley managed its business operations under reportable segments consisting of Consumer Banking, Commercial Banking and Treasury and Corporate Other. Each operating 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). Valley regularly assesses its strategic plans, operations and reporting structures to identify its reportable segments and no changes to the reportable segments were determined necessary during the first quarter 2023.

Consumer Banking 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. Consumer Banking also includes the Wealth Management and Insurance Services Division, comprised of trust, asset management, brokerage, insurance and tax credit advisory services.

Commercial Banking is 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 Banking is Valley’s operating segment that is most sensitive to movements in market interest rates.

Treasury and Corporate Other largely consists of the Treasury managed held to maturity debt securities and available for sale debt securities portfolios mainly utilized in the liquidity management needs of our lending segments and income and expense items resulting from support functions not directly attributable to a specific segment. Interest income is generated through investments in various types of securities (mainly comprised of fixed rate securities) and interest-bearing deposits with other banks (primarily the Federal Reserve Bank of New York). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from Treasury and Corporate Other to the Consumer and Commercial Banking segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each operating segment utilizing a transfer pricing methodology, which involves the allocation of operating and funding costs based on each segment's respective mix of average earning assets and or liabilities outstanding for the period.

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. 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. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. The balances presented for the three months ended March 31, 2022 in the tables below reflect reclassifications to conform with the presentation of the current operating segment structure, which was implemented in the second quarter 2022. These reclassifications did not impact Valley's consolidated results. See Valley's Form 10-K for the year ended December 31, 2022 for additional information.

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The following tables represent the financial data for Valley’s operating segments for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	8,768,482		$	39,090,889		$	7,503,419		$	55,362,790
Interest income	$	85,316		$	569,910		$	65,004		$	720,230
Interest expense	43,006			191,723			49,481			284,210
Net interest income	42,310			378,187			15,523			436,020
Provision for credit losses	6,444			3,006			4,987			14,437
Net interest income after provision for credit losses	35,866			375,181			10,536			421,583
Non-interest income	14,290			15,747			24,262			54,299
Non-interest expense	18,249			35,723			218,194			272,166
Internal transfer expense (income)	30,883			131,595			(162,478)			—
Income (loss) before income taxes	$	1,024		$	223,610		$	(20,918)		$	203,716
Return on average interest earning assets (pre-tax)	0.05		%	2.29		%	(1.12)		%	1.47		%

	Three Months Ended March 31, 2022
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	40,283,048
Interest income	$	59,459		$	257,906		$	23,093		$	340,458
Interest expense	3,207			11,327			8,255			22,789
Net interest income	56,252			246,579			14,838			317,669
Provision for credit losses	1,873			1,627			57			3,557
Net interest income after provision for credit losses	54,379			244,952			14,781			314,112
Non-interest income	13,817			16,880			8,573			39,270
Non-interest expense	16,568			25,085			155,687			197,340
Internal transfer expense (income)	28,647			99,916			(128,563)			—
Income (loss) before income taxes	$	22,981		$	136,831		$	(3,770)		$	156,042
Return on average interest earning assets (pre-tax)	1.20		%	2.03		%	(0.27)		%	1.55		%

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Item 2. Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations

The following MD&A should be read in conjunction with the consolidated financial statements and notes thereto appearing in Part I, Item 1 of this report. The words "Valley," the "Company," "we," "our" and "us" refer to Valley National Bancorp and its subsidiaries, unless we indicate otherwise. Additionally, Valley’s principal subsidiary, Valley National Bank, is commonly referred to as the “Bank” in this MD&A.

The MD&A contains supplemental financial information, described in the sections that follow, which has been determined by methods other than U.S. generally accepted accounting principles (U.S. GAAP) that management uses in its analysis of our performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance, our business and performance trends and facilitate comparisons with the performance of others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Cautionary Statement Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q, both in the MD&A and elsewhere, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

•the impact of Federal Reserve actions impacting the level of market interest rates and increases in business failures, specifically among our clients, as well as on our business, our employees and our ability to provide services to our customers;

•the potential impact of recent and possible future bank failures on the business environment in which we operate, including potential customer deposit withdrawals from Valley National Bank or business disruptions or liquidity issues that may affect our customers;

•the impact of unfavorable macroeconomic conditions or downturns, instability or volatility in financial markets, unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by and factors outside of our control, such as geopolitical instabilities or events; natural and other disasters (including severe weather events) and health emergencies, acts of terrorism or other external events;

•risks associated with our acquisition of Bank Leumi Le-Israel Corporation (Bank Leumi USA), including (i) the inability to realize expected cost savings and synergies from the acquisition in the amounts or timeframe anticipated and (ii) greater than expected costs or difficulties relating to integration matters;

•the loss of or decrease in lower-cost funding sources within our deposit base;

•the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;

•the inability to attract new customer deposits to keep pace with loan growth strategies;

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•a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;

•greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;

•the risks related to the replacement of the London Interbank Offered Rate with Secured Overnight Financing Rate and other reference rates, including increased expenses, risk of litigation and the effectiveness of hedging strategies;

•cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;

•damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters;

•changes to laws and regulations, including changes affecting oversight of the financial services industry; changes in the enforcement and interpretation of such laws and regulations; and changes in accounting and reporting standards;

•higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;

•results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank (FRB), the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;

•our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;

•a prolonged downturn in the economy, mainly in New Jersey, New York, Florida, Alabama, California, and Illinois, as well as an unexpected decline in commercial real estate values within our market areas; and

•unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors.

A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2022, and in Part II, Item 1A of this Form 10-Q.

We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.

Critical Accounting Estimates

Valley’s accounting policies are fundamental to understanding management’s discussion and analysis of its financial condition and results of operations. In preparing the consolidated financial statements, management has made estimates, judgments and assumptions in accordance with these policies that affect the reported amounts of

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assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. At March 31, 2023, we identified our policies on the allowance for credit losses, goodwill and other intangible assets, and income taxes to be critical accounting policies because management has to make subjective and/or complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. Management has reviewed the application of these policies and estimates with the Audit Committee of Valley’s Board of Directors. Our critical accounting policies and estimates are described in detail in Part II, Item 7 in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022, and there have been no material changes in such policies and estimates since the date of such report.

New Authoritative Accounting Guidance

See Note 5 to the consolidated financial statements for a description of new authoritative accounting guidance, including the respective dates of adoption and effects on results of operations and financial condition.

Executive Summary

Company Overview. At March 31, 2023, Valley had consolidated total assets of approximately $64.3 billion, total net loans of $48.2 billion, total deposits of $47.6 billion and total shareholders’ equity of $6.5 billion. Valley operates many convenient branch office locations and commercial banking offices in northern and central New Jersey, the New York City Boroughs of Manhattan, Brooklyn and Queens, Long Island, Westchester County, New York, Florida, California, Alabama and Illinois. Of our current 230 branch network, 56 percent, 18 percent, and 18 percent of the branches are in New Jersey, New York and Florida, respectively, with the remaining 8 percent of the branches in Alabama, California, and Illinois combined. We have grown significantly both in asset size and locations over the past several years both through organic efforts and bank acquisitions, including our acquisition of Bank Leumi USA on April 1, 2022.

Recent Industry Developments. Recent events, including the bank failures in March and April 2023, the rising level of interest rates and recessionary pressures have heightened concerns in the bank sector. We have consistently operated the Bank with a focus on diversification to maintain stability through various cycles. During the first quarter of 2023, we continued to position our balance sheet to mitigate potential risks from the market turmoil affecting the banking industry in general and Valley, its clients and communities in particular.

•Total assets increased to $64.3 billion at March 31, 2023, an increase of 11.9 percent from December 31, 2022. Liquidity remained strong with total liquid assets of approximately $7.2 billion at March 31, 2023, representing 12.1 percent of earning assets. We continue to maintain the ability to access readily available, diverse funding sources to fulfill both short-term and long-term capital needs. See "Bank Liquidity" section for additional information.

•Total deposits were $47.6 billion at March 31, 2023 and remained relatively unchanged as compared to December 31, 2022. Our deposit base is highly diversified with 625 thousand commercial and retail deposit customers, an average account size of $58 thousand and an average customer relationship with Valley exceeding 10 years as of March 31, 2023. Approximately $32.0 billion of our $47.6 billion in deposits at March 31, 2023 are generated from our branch network. See the "Deposits and Other Borrowings" section for more details.

•Capital remained strong with ratios of both Valley and the Bank exceeding all capital adequacy requirements at March 31, 2023. Total shareholders' equity increased $110.8 million to $6.5 billion at March 31, 2023 as compared to December 31, 2022. See the "Capital Adequacy" section for additional details.

•Total loans increased $1.7 billion, or 14.9 percent on an annualized basis to $48.7 billion at March 31, 2023 from December 31, 2022 largely due to strong organic commercial loan volumes and slow prepayments. See "Loan Portfolio" section for more information.

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•Asset quality continued to reflect our disciplined underwriting and lending practices during the first quarter 2023. Non-performing assets (NPAs) as a percentage of total loans and NPAs totaled 0.50 percent and 0.58 percent at March 31, 2023 and December 31, 2022, respectively. See the "Non-Performing Assets" section for additional information.

•Total investment securities were $5.2 billion, or 8.0 percent of total assets, at March 31, 2023 and remained relatively unchanged as compared to December 31, 2022. See the "Investment Securities Portfolio" section for more details.

Quarterly Results. Net income for the first quarter 2023 was $146.6 million, or $0.28 per diluted common share as compared to $116.7 million, or $0.27 per diluted common share, for the first quarter 2022. The $29.8 million increase in quarterly net income as compared to the same quarter one year ago was mainly due to the following changes:

•a $118.4 million increase in net interest income mainly due to higher average loan balances driven by both acquired and organic loan volumes and increased yields on new and adjustable-rate loans, partially offset by higher cost of deposits; and

•a $15.0 million increase in non-interest income primarily due to bank acquisition-driven growth in wealth management and trust fees, service charges on deposit accounts and other income, partially offset by a decline in swap fee income within capital markets fees;

These items were partially offset by:

•a $10.9 million increase in our provision for credit losses due, in part, to a $5 million provision for credit losses on available for sale investment securities;

•a $74.8 million increase in non-interest expense largely due to our expanded banking operations and higher FDIC insurance assessment expense; and

•a $17.9 million increase in income tax expense mostly due to higher pre-tax income in the first quarter 2023.

See the "Net Interest Income", "Non-Interest Income", "Non-Interest Expense" and "Income Taxes" sections below for more details on the impact of the items above on our first quarter 2023 results.

U.S. Economic Conditions. During the first quarter 2023, real gross domestic product (GDP) increased at an annual rate of 1.1 percent as compared to an increase of 2.6 percent during the fourth quarter 2022. The 1.1 percent increase in real GDP reflected higher consumer spending, exports, federal government spending, state and local government spending, and nonresidential fixed investment that were partly offset by decreases in private inventory investment and residential fixed investment.

During the first quarter 2023, the Federal Reserve raised the target range for the federal funds rate by 75 basis points, bringing the target range to 4.75 to 5 percent at March 31, 2023, and by an additional 25 basis points in May 2023 to a current range of 5 to 5.25 percent. Consistent with its previously announced plan, these actions reflect the Federal Reserve’s strong commitment to returning inflation to its 2 percent objective. The Federal Open Market Committee has indicated it will continue to increase the federal funds rate, but at a slower pace, to stabilize pricing while remaining highly attentive toward the recent banking developments, and the delay in which the cumulative tightening of its monetary policy affects the economy.

The 10-year U.S. Treasury note yield ended the first quarter of 2023 at 3.48 percent, or 40 basis points lower as compared to the fourth quarter 2022, and the 2-year U.S. Treasury note yield ended the first quarter 2023 at 4.06 percent, or 35 basis points lower as compared to the fourth quarter 2022.

For all commercial banks in the U.S., commercial and industrial loans decreased approximately by 1.8 percent at March 31, 2023 as compared to December 31, 2022 largely due to decreased customer need for financing inventory

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and accounts receivables, investment in property or equipment and mergers or acquisitions. Many banks increased the cost of credit lines through widening the spreads of loan rates over the costs of funds to firms of all sizes and increasing premiums for riskier loans, while a significant portion of banks also tightened loan covenants and collateralization requirements for firms of all sizes. A majority of banks that reported tightening standards or terms on commercial and industrial loans cited a less favorable or more uncertain economic outlook and reduced risk tolerance.

Further increases in market interest rates, persistently high inflation, heightened recessionary concerns and the potential for additional fallout from the recent banking crisis, including bank regulatory actions, among other factors, have added a higher level of uncertainty to the future path of the U.S. economy and an elevated risk of a recession. Should economic conditions deteriorate, causing business activity, spending and investment to decline, it may adversely impact our financial results, as highlighted in this MD&A.

Deposits and Other Borrowings

Overall, average deposits increased by $918.1 million to $47.2 billion for the first quarter 2023 as compared to the fourth quarter 2022, mostly due to higher time deposits driven by an increased utilization of fully insured brokered deposits, partially offset by a decrease in average non-interest bearing deposits. Average non-interest-bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 30 percent, 50 percent and 21 percent of total deposits as of March 31, 2023, respectively.

Actual ending balances for deposits decreased $46.0 million to approximately $47.6 billion at March 31, 2023 from December 31, 2022. Within the deposit categories, non-interest bearing deposits, and savings, NOW and money market deposits decreased $887.5 million and $713.4 million, respectively, and were mostly offset by an increase in time deposits. Time deposits increased $1.6 billion to $11.1 billion within our overall deposit mix at March 31, 2023 from December 31, 2022 largely due to higher fully FDIC-insured brokered CD balances at March 31, 2023. Total fully insured brokered deposits, consisting of time deposits and money market accounts, increased $1.2 billion to $7.1 billion at March 31, 2023 as compared to $5.9 billion at December 31, 2022. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 29 percent, 48 percent and 23 percent of total deposits as of March 31, 2023, respectively, as compared to 30 percent, 50 percent and 20 percent of total deposits as of December 31, 2022, respectively.

The following table lists, by maturity, uninsured certificates of deposit at March 31, 2023:

	(in thousands)
Less than three months	$	349,067
Three to six months	97,841
Six to twelve months	77,179
More than twelve months	1,208,902
Total	$	1,732,989

Total estimated uninsured deposits were approximately $14.9 billion, or 31 percent of total deposits, at March 31, 2023.

While our diversified commercial and consumer deposit base has remained stable during the early stages of the second quarter 2023, we believe deposit gathering initiatives may remain challenging due to market competition, attractive investment alternatives, such as U.S. Treasury securities, changes in customer behavior and other factors. As a result, we cannot guarantee that we will be able to maintain deposit levels at or near those reported at March 31, 2023.

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The following table presents average short-term and long-term borrowings for the periods indicated:

	Three Months Ended
	March 31, 2023		December 31, 2022		March 31, 2022
	(in thousands)
Average short-term borrowings:
FHLB advances	$	2,513,983	$	429,529	$	434,444
Securities sold under repurchase agreements	99,546		118,263		148,575
Federal funds purchased	190,214		332,823		11,278
Total	$	2,803,743	$	880,615	$	594,297
Average long-term borrowings:
FHLB advances	$	875,053	$	788,496	$	788,956
Subordinated debt	754,972		753,165		631,056
Junior subordinated debentures issued to capital trusts	56,805		56,718		56,457
Total	$	1,686,830	$	1,598,379	$	1,476,469

Average short-term borrowings increased $2.2 billion during the first quarter 2023 as compared to the first quarter 2022 mostly due to the higher utilization of FHLB advances in March 2023 to prudently increase our excess liquidity position. Average long-term borrowings (including junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition) increased $210.4 million as compared to the first quarter 2022 mainly due to the issuance of $150 million of subordinated notes during the third quarter 2022 and new FHLB advances issued during the first quarter 2023.

Actual ending balances for short-term borrowings increased $6.3 billion to $6.4 billion at March 31, 2023 as compared to December 31, 2022. In March 2023, we significantly increased our short-term borrowings, mostly consisting of FHLB advances, to bolster our liquidity position out of an abundance of caution in the wake of the two recent bank failures. Since March 31, 2023, many of our short-term FHLB advances have matured and been repaid, resulting in a more normal liquidity position. We continue to closely monitor changes in the current banking environment and have substantial access to additional liquidity. Long-term borrowings increased to approximately $2.2 billion at March 31, 2023 as compared to $1.5 billion at December 31, 2022 mainly due to new FHLB advances also issued during the first quarter 2023 as part of our overall funding and liquidity strategies.

See the "Bank Liquidity" section for more details on our available funding sources.

Non-GAAP Financial Measures

The table below presents selected performance indicators, their comparative non-GAAP measures and the (non-GAAP) efficiency ratio for the periods indicated. Valley believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding its underlying operational performance, business, and performance trends, and may facilitate comparisons of current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation, as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

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The following table presents our annualize performance ratios:

	Three Months Ended March 31,
	2023			2022
Selected Performance Indicators	($ in thousands)
GAAP measures:
Net income, as reported	$	146,551		$	116,728
Return on average assets	0.98		%	1.07		%
Return on average shareholders’ equity	9.10			9.15
Non-GAAP measures:
Net income, as adjusted	$	154,530		$	120,313
Return on average assets, as adjusted	1.03		%	1.10		%
Return on average shareholders' equity, as adjusted	9.60			9.43
Return on average tangible shareholders' equity (ROATE)	13.39			13.09
ROATE, as adjusted	14.12			13.49
Efficiency ratio	53.79			53.18

	March 31, 2023		December 31, 2022
Common Equity Per Share Data:
Book value per common share (GAAP)	$	12.41	$	12.23
Tangible book value per common share (non-GAAP)	8.36		8.15

Non-GAAP Reconciliations to GAAP Financial Measures

Adjusted net income is computed as follows:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Net income, as reported (GAAP)	$	146,551	$	116,728
Add: Losses on available for sale and held to maturity debt securities, net (net of tax) (a)	17		6
Add: Provision for credit losses for available for sale securities (b)	5,000		—
Add: Merger related expenses (net of tax) (c)	2,962		3,579
Net income, as adjusted (non-GAAP)	$	154,530	$	120,313

(a)    Included in gains (losses) on securities transactions, net.

(b)    Provision relates to one security fully charged off with no resulting tax benefit during the three months ended March 31, 2023.

(c)    Merger related expenses are primarily within salary and employee benefits expense for the three months ended March 31, 2023 and 2022.

In addition to the items used to calculate net income, as adjusted, in the table above, our net income is, from time to time, impacted by fluctuations in the level of net gains on sales of loans, wealth management fees, and swap fees recognized from commercial loan customer transactions. These amounts can vary widely from period to period due to, among other factors, the amount of residential mortgage loans originated for sale, loan portfolio sales, brokerage fees, and commercial loan customer demand for certain products. See the “Non-Interest Income” section below for more details.

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Adjusted annualized return on average assets is computed by dividing adjusted net income by average assets, as follows:

	Three Months Ended March 31,
	2023			2022
	($ in thousands)
Net income, as adjusted (non-GAAP)	$	154,530		$	120,313
Average assets	$	59,867,002		$	43,570,251
Annualized return on average assets, as adjusted (non-GAAP)	1.03		%	1.10		%

Adjusted annualized return on average shareholders' equity is computed by dividing adjusted net income by average shareholders' equity, as follows:

	Three Months Ended March 31,
	2023			2022
	($ in thousands)
Net income, as adjusted (non-GAAP)	$	154,530		$	120,313
Average shareholders' equity	$	6,440,215		$	5,104,709
Annualized return on average shareholders' equity, as adjusted (non-GAAP)	9.60		%	9.43		%

ROATE and adjusted ROATE are computed by dividing net income and adjusted net income, respectively, by average shareholders’ equity less average goodwill and average other intangible assets, as follows:

	Three Months Ended March 31,
	2023			2022
	($ in thousands)
Net income, as reported (GAAP)	$	146,551		$	116,728
Net income, as adjusted (non-GAAP)	154,530			120,313
Average shareholders’ equity	$	6,440,215		$	5,104,709
Less: Average goodwill and other intangible assets	2,061,361			1,538,356
Average tangible shareholders’ equity	$	4,378,854		$	3,566,353
Annualized ROATE (non-GAAP)	13.39		%	13.09		%
Annualized ROATE, as adjusted (non-GAAP)	14.12		%	13.49		%

The efficiency ratio is computed as follows:

	Three Months Ended March 31,
	2023			2022
	($ in thousands)
Total non-interest expense, as reported (GAAP)	$	272,166		$	197,340
Less: Amortization of tax credit investments (pre-tax)	4,253			2,896
Less: Merger related expenses (pre-tax) (a)	4,133			4,628
Total non-interest expense, as adjusted (non-GAAP)	$	263,780		$	189,816
Net interest income, as reported (GAAP)	$	436,020		$	317,669
Total non-interest income, as reported (GAAP)	54,299			39,270
Add: Losses on available for sale and held to maturity debt securities, net (pre-tax) (b)	24			9
Total net interest income and non-interest income, as adjusted (non-GAAP)	$	490,343		$	356,948
Efficiency ratio (non-GAAP)	53.79		%	53.18		%

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(a)    Merger related expenses are primarily within salary and employee benefits expense for the three months ended March 31, 2023 and 2022.

(b)    Included in gains (losses) on securities transactions, net.

Tangible book value per common share is computed by dividing shareholders’ equity less preferred stock, goodwill and other intangible assets by common shares outstanding, as follows: 

	March 31, 2023		December 31, 2022
	($ in thousands, except for share data)
Common shares outstanding	507,762,358		506,374,478
Shareholders’ equity	$	6,511,581	$	6,400,802
Less: Preferred stock	209,691		209,691
Less: Goodwill and other intangible assets	2,056,107		2,066,392
Tangible common shareholders’ equity	$	4,245,783	$	4,124,719
Book value per common share (GAAP)	$	12.41	$	12.23
Tangible book value per common share (non-GAAP)	$	8.36	$	8.15

Net Interest Income

Net interest income on a tax equivalent basis totaling $437.5 million for the first quarter 2023 decreased $29.8 million as compared to the fourth quarter 2022 and increased $119.1 million as compared to the first quarter 2022. The decrease as compared to the fourth quarter 2022 was mainly due to (i) the negative impact of the significant increase in our excess cash liquidity and other borrowings resulting from prudent and cautionary measures taken by us during the market turmoil of March 2023, (ii) higher interest rates on our average interest bearing deposits and other borrowings, as well as (iii) fewer days in the first quarter 2023. Interest expense increased $103.5 million to $284.2 million for the first quarter 2023 as compared to the fourth quarter 2022 largely due to a $4.0 billion increase in average interest bearing liabilities, including increases of $2.1 billion and $1.9 billion in average time deposits and short-term borrowings, respectively. Interest income on a tax equivalent basis increased $73.7 million to $721.7 million in the first quarter 2023 as compared to the fourth quarter 2022. The increase was mostly due to higher average loan balances driven by our organic new loan volumes, slowing loan prepayments, and increased yields on both new originations and adjustable rate loans in our portfolio.

Average interest earning assets increased $15.1 billion to $55.4 billion for the first quarter 2023 as compared to the first quarter 2022 mainly due to a $13.2 billion increase in average loan balances and higher average investment balances partly caused by the acquisition of Bank Leumi USA on April 1, 2022. Compared to the fourth quarter 2022, average interest earning assets increased by $3.0 billion during the first quarter 2023. The increase was primarily driven by a $1.8 billion increase in average loan balances due to organic loan growth mainly in the commercial loan categories and $1.1 billion increase in average interest bearing cash held mainly overnight with the Federal Reserve Bank of New York as part of our liquidity management.

Average interest bearing liabilities increased $11.5 billion to $37.6 billion for the first quarter 2023 as compared to the first quarter 2022 mainly due to increases of $9.1 billion and $2.2 billion in average time deposits and short-term borrowings, respectively. The increases in average time deposits and short-term borrowings were largely due to the liquidity management efforts during March 2023, and our increased usage of fully FDIC-insured brokered CD and successful retail CD initiatives as part of our funding sources for loan growth over the last 12 months. As compared to the fourth quarter 2022, average interest bearing liabilities increased by $4.0 billion in the first quarter 2023 largely due to a $2.1 billion increase in average time deposits mainly driven by the higher fully insured brokered CD balances and additional FHLB advances within short-term borrowings. See additional information under "Deposits and Other Borrowings" in the Executive Summary section above.

Net interest margin on a tax equivalent basis of 3.16 percent for the first quarter 2023 decreased by 41 basis points from 3.57 percent for the fourth quarter 2022 and remained unchanged from the first quarter 2022. The decrease as

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compared to the fourth quarter was largely driven by (i) the net impact of the excess liquidity measures taken in March 2023 and (ii) two fewer days during the first quarter 2023, partially offset by higher yields on average interest earning assets. The yield on average interest earning assets increased by 26 basis points on a linked quarter basis mostly due to the aforementioned higher yields on new and adjustable rate loans in the first quarter 2023 as compared to the fourth quarter 2022. The yield on average loans increased by 28 basis points to 5.48 percent for the first quarter 2023 as compared to the fourth quarter 2022 largely due to the higher level of market interest rates. The yields on average taxable and non-taxable investments also increased 12 basis points and 9 basis points, respectively, from the fourth quarter 2022, largely due to investment maturities and repayments redeployed into new higher yielding securities, as well as lower premium amortization expense caused by a decline in prepayments on mortgage-backed securities during the first quarter 2023. Our cost of total average deposits increased to 1.96 percent for the first quarter 2023 from 1.36 percent for the fourth quarter 2022. The overall cost of average interest bearing liabilities also increased 87 basis points to 3.02 percent for the first quarter 2023 as compared to the fourth quarter 2022 largely due to a 148 basis point increase in cost of average short-term borrowings.

Based upon our revised estimates at March 31, 2023, we anticipate net interest income growth of approximately 10 to 12 percent for the full year of 2023, down from 16 to 18 percent previously estimated in the MD&A of Valley's Form 10-K for the year ended December 31, 2022. While our revised outlook for our net interest income is still positive, we cannot provide any assurances with respect to the future trajectory of market interest rates or that our net interest margin or income will remain at the levels reported for the first quarter 2023.

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The following table reflects the components of net interest income for the three months ended March 31, 2023, December 31, 2022 and March 31, 2022:

Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and

Net Interest Income on a Tax Equivalent Basis

	Three Months Ended
	March 31, 2023						December 31, 2022						March 31, 2022
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	($ in thousands)
Assets
Interest earning assets:
Loans (1)(2)	$	47,859,371	$	655,250	5.48	%	$	46,086,363	$	599,040	5.20	%	$	34,623,402	$	317,390	3.67	%
Taxable investments (3)	5,033,134		37,474		2.98		4,934,084		35,278		2.86		3,838,468		20,115		2.10
Tax-exempt investments (1)(3)	623,145		6,739		4.33		623,322		6,608		4.24		401,742		3,186		3.17
Interest bearing deposits with banks	1,847,140		22,205		4.81		761,832		7,038		3.70		1,419,436		461		0.13
Total interest earning assets	55,362,790		721,668		5.21		52,405,601		647,964		4.95		40,283,048		341,152		3.39
Allowance for credit losses	(466,837)						(483,580)						(367,989)
Cash and due from banks	445,005						408,891						281,883
Other assets	4,702,376						4,775,113						3,361,185
Unrealized gains on securities available for sale, net	(176,332)						(192,810)						12,124
Total assets	$	59,867,002					$	56,913,215					$	43,570,251
Liabilities and shareholders’ equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	23,389,569	$	150,766	2.58	%	$	23,476,111	$	109,286	1.86	%	$	20,522,629	$	9,627	0.19	%
Time deposits	9,738,608		80,298		3.30		7,641,769		48,417		2.53		3,554,520		2,831		0.32
Total interest bearing deposits	33,128,177		231,064		2.79		31,117,880		157,703		2.03		24,077,149		12,458		0.21
Short-term borrowings	2,803,743		33,948		4.84		880,615		7,404		3.36		594,297		806		0.54
Long-term borrowings (4)	1,686,830		19,198		4.55		1,598,379		15,624		3.91		1,476,469		9,525		2.58
Total interest bearing liabilities	37,618,750		284,210		3.02		33,596,874		180,731		2.15		26,147,915		22,789		0.35
Non-interest bearing deposits	14,024,742						15,116,977						11,686,534
Other liabilities	1,783,295						1,871,394						631,093
Shareholders’ equity	6,440,215						6,327,970						5,104,709
Total liabilities and shareholders’ equity	$	59,867,002					$	56,913,215					$	43,570,251
Net interest income/interest rate spread (5)			$	437,458	2.19	%			$	467,233	2.80	%			$	318,363	3.04	%
Tax equivalent adjustment			(1,438)						(1,414)						(694)
Net interest income, as reported			$	436,020					$	465,819					$	317,669
Net interest margin (6)					3.15	%					3.56	%					3.15	%
Tax equivalent effect					0.01						0.01						0.01
Net interest margin on a fully tax equivalent basis (6)					3.16	%					3.57	%					3.16	%

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_____________

(1)Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.

(2)Loans are stated net of unearned income and include non-accrual loans.

(3)The yield for securities that are classified as available for sale is based on the average historical amortized cost.

(4)Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated

statements of financial condition.

(5)Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.

(6)Net interest income as a percentage of total average interest earning assets.

The following table demonstrates the relative impact on net interest income of changes in the volume of interest earning assets and interest bearing liabilities and changes in rates earned and paid by us on such assets and liabilities. Variances resulting from a combination of changes in volume and rates are allocated to the categories in proportion to the absolute dollar amounts of the change in each category.

Change in Net Interest Income on a Tax Equivalent Basis

	Three Months Ended March 31, 2023 Compared to March 31, 2022
	Change Due to Volume		Change Due to Rate		Total Change
	(in thousands)
Interest Income:
Loans*	$	147,471	$	190,389	$	337,860
Taxable investments	7,381		9,978		17,359
Tax-exempt investments*	2,141		1,412		3,553
Interest bearing deposits with banks	180		21,564		21,744
Total increase in interest income	157,173		223,343		380,516
Interest Expense:
Savings, NOW and money market deposits	1,531		139,608		141,139
Time deposits	12,150		65,317		77,467
Short-term borrowings	10,580		22,562		33,142
Long-term borrowings and junior subordinated debentures	1,520		8,153		9,673
Total increase in interest expense	25,781		235,640		261,421
Total increase (decrease) in net interest income	$	131,392	$	(12,297)	$	119,095

*Interest income is presented on a tax equivalent basis using 21 percent as the federal tax rate.

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Non-Interest Income

Non-interest income increased $15.0 million for the three months ended March 31, 2023 as compared to the same period of 2022. The following table presents the components of non-interest income for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Wealth management and trust fees	$	9,587	$	5,131
Insurance commissions	2,420		1,859
Capital markets	10,892		14,360
Service charges on deposit accounts	10,476		6,212
Gains (losses) on securities transactions, net	378		(1,072)
Fees from loan servicing	2,671		2,781
Gains on sales of loans, net	489		986
Bank owned life insurance	2,584		2,046
Other	14,802		6,967
Total non-interest income	$	54,299	$	39,270

Wealth management and trust fees income increased $4.5 million for the three months ended March 31, 2023 as compared to the same period in 2022 primarily due to higher brokerage fees resulting from the acquisition of Bank Leumi USA and its wholly owned broker dealer subsidiary on April 1, 2022. Brokerage fees totaled $4.8 million for the three months ended March 31, 2023.

Capital markets income decreased $3.5 million for the three months ended March 31, 2023 as compared to the same quarter in 2022. This decrease was largely driven by lower fee income from transactions executed for commercial customer related interest rate swaps, partially offset by an increase in foreign exchange fees. Swap fees income totaled $7.8 million and $14.0 million for the three months ended March 31, 2023 and 2022, respectively. Foreign exchange fees totaled $2.0 million and $369 thousand for the three months ended March 31, 2023 and 2022, respectively.

Service charges on deposit accounts increased $4.3 million for the three months ended March 31, 2023 as compared to the same period in 2022 largely related to higher checking account revenues resulting from additional deposit accounts acquired from Bank Leumi USA.

Net gains and losses on securities transactions for the three months ended March 31, 2023 and 2022 were almost entirely due to net trading gains and losses related to our municipal bond trading portfolio.

Other non-interest income increased $7.8 million for the three months ended March 31, 2023 as compared to the same quarter in 2022 mostly due to incremental increases in several operating non-interest income categories caused by the acquisition of Bank Leumi USA and organic growth of our business operations over the last 12 months.

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Non-Interest Expense

Non-interest expense increased $74.8 million for the three months ended March 31, 2023 as compared to the same period in 2022. The following table presents the components of non-interest expense for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Salary and employee benefits expense	$	144,986	$	107,733
Net occupancy expense	23,256		21,991
Technology, furniture and equipment expense	36,508		26,015
FDIC insurance assessment	9,155		4,158
Amortization of other intangible assets	10,519		4,437
Professional and legal fees	16,814		14,749
Amortization of tax credit investments	4,253		2,896
Other	26,675		15,361
Total non-interest expense	$	272,166	$	197,340

Salary and employee benefits expense increased $37.3 million for the three months ended March 31, 2023 as compared to the same period of 2022. The increase was primarily due to increases in our headcount to support our expansion of operations resulting from the Bank Leumi USA acquisition, significant organic growth in our operations, as well as inflationary pressures in the labor market. Salary and employee benefits expense also included $4.1 million of merger related expenses primarily consisting of severance and retention compensation for the three months ended March 31, 2023.

Net occupancy expense increased $1.3 million for the three months ended March 31, 2023 as compared to the same period of 2022 mainly due to higher rent and depreciation expense, partially offset by lower repair and maintenance costs in the first quarter 2023.

Technology, furniture and equipment expense increased $10.5 million for the three months ended March 31, 2023 as compared to the same periods of 2022. The increase was largely driven by additional investments in technology and equipment and higher depreciation expense in the first quarter 2023.

FDIC insurance assessment expense increased $5.0 million for the three months ended March 31, 2023 as compared to the same period of 2022 mainly due to growth in our balance sheet, as well as a two basis point increase in the initial base rate effective for the first quarter 2023.

Amortization of other intangible assets increased $6.1 million for the three months ended March 31, 2023 as compared to the same period of 2022 mainly due to higher amortization expense of core deposits and other intangible assets resulting from Bank Leumi USA acquisition. See Note 9 to the consolidated financial statements for additional information.

Professional and legal fees increased $2.1 million for the three months ended March 31, 2023 as compared to the same period of 2022. The increase was primarily due to higher consulting expense mainly related to technology transformation and new product initiatives, partially offset by lower managed services expense in the first quarter 2023.

Other non-interest expense increased $11.3 million for the three months ended March 31, 2023 as compared to the same period of 2022 largely due to general increases related to the Bank Leumi acquisition, advertising and charges related to collateral liabilities in connection with derivative transactions.

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Income Taxes

Income tax expense totaled $57.2 million and $39.3 million for the three months ended March 31, 2023 and 2022, respectively. Our effective tax rate was 28.1 percent and 25.2 percent for the three months ended March 31, 2023 and 2022, respectively. The increase in the effective tax rate in the first quarter 2023 as compared to the same period of 2022 was mainly due to a smaller benefit in excess stock compensation and a newly established valuation allowance against a loss provision on available for sale debt securities.

U.S. GAAP requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the quarter in which it occurs, rather than being recognized as a change in effective tax rate for the current year. Our adherence to these tax guidelines may result in volatile effective income tax rates in future quarterly and annual periods. Factors that could impact management’s judgment include changes in income, tax laws and regulations and tax planning strategies.

Operating Segments

At March 31, 2023 and December 31, 2022, Valley managed its business operations under reportable segments consisting of Consumer Banking, Commercial Banking and Treasury and Corporate Other. Each operating 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). Valley regularly assesses its strategic plans, operations and reporting structures to identify its reportable segments and no changes to the reportable segments were determined necessary during the first quarter 2023.

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 balances presented for three months ended March 31, 2022 in the tables below reflect reclassifications to conform with the presentation of the current operating segment structure implemented in the second quarter 2022. These reclassifications did not impact Valley's consolidated results. See Valley's Form 10-K for the year ended December 31, 2022 for additional information.

The following tables present the financial data for Valley's operating segments for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	8,768,482		$	39,090,889		$	7,503,419		$	55,362,790
Income (loss) before income taxes	1,024			223,610			(20,918)			203,716
Annualized return on average interest earning assets (before tax)	0.05		%	2.29		%	(1.12)		%	1.47		%

 

	Three Months Ended March 31, 2022
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	40,283,048
Income (loss) before income taxes	22,981			136,831			(3,770)			156,042
Annualized return on average interest earning assets (before tax)	1.20		%	2.03		%	(0.27)		%	1.55		%

See Note 16 to the consolidated financial statements for additional details.

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Consumer Banking

Consumer Banking represented 18.2 percent of our loan portfolio at March 31, 2023, and was mainly comprised of residential mortgage loans and automobile loans, and to a lesser extent, home equity loans, secured personal lines of credit and other consumer loans (including credit card loans). The duration of the residential mortgage loan portfolio (which represented 11.3 percent of our loan portfolio at March 31, 2023) is subject to movements in the market level of interest rates and forecasted prepayment speeds. The weighted average life of the automobile loans (which represented 3.5 percent of total loans at March 31, 2023) 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. Consumer Banking also includes the Wealth Management and Insurance Services Division, comprised of trust, asset management, brokerage, insurance and tax credit advisory services.

Average interest earning assets within Consumer Banking increased $1.1 billion to $8.8 billion for the three months ended March 31, 2023 as compared to the same period of 2022. The increase was largely due to new residential mortgage loan volumes originated for investment rather than sale over the last 12-month period, and, to a lesser extent, growth in automobile, home equity and secured personal lines of credit.

Income before income taxes for Consumer Banking decreased $22.0 million to $1.0 million for the first quarter 2023 as compared to the first quarter 2022 mainly driven by lower net interest income, and, to a lesser extent, increases in the provision for loan losses and internal transfer expense. Net interest income decreased $13.9 million in the first quarter 2023 as compared to the same period of 2022 due to additional interest expense generated from higher average deposit and other borrowing balances, as well as an increase in interest rates. The provision for loan losses increased $4.6 million for the three months ended March 31, 2023 due to additional reserves related to residential loan growth, as well as deterioration in our economic forecast component within our CECL model as compared to one year ago. See further details in the “Allowance for Credit Losses” section of this MD&A. Internal transfer expense increased $2.2 million for the first quarter 2023 as compared to the first quarter 2022.

Net interest margin on the Consumer Banking portfolio decreased 101 basis points to 1.93 percent for the first quarter 2023 as compared to the first quarter 2022 mainly due to a 179 basis point increase in the costs associated with our funding sources, partially offset by a 78 basis point increase in the yield on average loans. The increase in our funding costs was mainly driven by higher interest rates on most of our interest bearing commercial and retail deposit products, increased utilization of fully FDIC-insured brokered deposits and higher cost of other borrowings held during the first quarter 2023. The 78 basis point increase in loan yield was largely due to higher yielding new loan volumes and adjustable rate loans in our portfolio. See the "Executive Summary" and the "Net Interest Income" sections above for more details on our net interest margin and funding sources.

The return on average interest earning assets before income taxes for the consumer banking segment was 0.05 percent for the first quarter 2023 compared to 1.20 percent for the first quarter 2022.

Commercial Banking

Commercial Banking is 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 Banking is Valley’s business segment that is most sensitive to movements in market interest rates. Commercial and industrial loans totaled approximately $9.0 billion and represented 18.6 percent of the total loan portfolio at March 31, 2023. Commercial real estate loans and construction loans totaled $30.8 billion and represented 63.2 percent of the total loan portfolio at March 31, 2023.

Average interest earning assets in Commercial Banking increased $12.1 billion to $39.1 billion for the three months ended March 31, 2023 as compared to the first quarter 2022. This increase was primarily due to strong organic loan growth concentrated in the commercial real estate loan portfolio as well as commercial loans acquired from Bank Leumi USA.

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Income before income taxes for Commercial Banking increased $86.8 million to $223.6 million for the three months ended March 31, 2023 as compared to the same period of 2022 mainly due to an increase in net interest income, partially offset by higher internal transfer expense and non-interest expense. Net interest income for this segment increased $131.6 million to $378.2 million for the first quarter 2023 as compared to the same period in 2022 primarily due to higher average commercial loan balances and higher interest rates on new and adjustable loans. Internal transfer expense increased $31.7 million to $131.6 million for the three months ended March 31, 2023 as compared to the first quarter 2022 largely due to general increases related to both organic and acquired growth in our business operations over the last 12-month period. Non-interest expense also increased $10.6 million to $35.7 million for the three months ended March 31, 2023 as compared to the first quarter 2022. The provision for credit losses increased $1.4 million to $3.0 million as compared to the same period in 2022 mainly due to a moderate increase in certain qualitative reserves. See details in the "Allowance for Credit Losses for Loans" section of this MD&A.

The net interest margin for this segment increased 22 basis points to 3.87 percent for the first quarter 2023 as compared to the first quarter 2022 due to a 201 basis point increase in the yield on average loans, partially offset by a 179 basis point increase in the cost of our funding sources.

The return on average interest earning assets before income taxes for the consumer banking segment was 2.29 percent for the three months ended March 31, 2023 compared to 2.03 percent to the same period in 2022.

Treasury and Corporate Other

Treasury and Corporate Other largely consists of the Treasury managed held to maturity and available for sale debt securities portfolios mainly utilized in the liquidity management needs of our lending segments and income and expense items resulting from support functions not directly attributable to a specific segment. Interest income is generated through investments in various types of securities (mainly comprised of fixed rate securities) and interest-bearing deposits with other banks (primarily the Federal Reserve Bank of New York). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from Treasury and Corporate Other to the Consumer Banking and Commercial Banking segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each business segment utilizing a transfer pricing methodology, which involves the allocation of operating and funding costs based on each segment's respective mix of average earning assets and/or liabilities outstanding for the period. Other items disclosed in this segment include net gains and losses on available for sale and held to maturity securities transactions, interest expense related to subordinated notes, amortization (and impairment) of tax credit investments, as well as other non-core items, including merger expenses.

Average interest earning assets within Treasury and Corporate Other increased $1.8 billion to $7.5 billion for the three months ended March 31, 2023 mainly due to investment securities acquired from Bank Leumi USA, as well as other select investment securities purchases largely classified as held to maturity over the last 12-month period. Average interest bearing deposits with banks increased $427.7 million as compared to the same period in 2022 due to additional cash held as a cautionary liquidity management measure in March 2023.

For the three months ended March 31, 2023, loss before income taxes in this segment totaled $20.9 million compared to $3.8 million for the same period in 2022. The $17.1 million increase in the pre-tax loss during the first quarter 2023 period was mainly due to higher non-interest expense, partially offset by increases in internal transfer income and non-interest income. Non-interest expense increased $62.5 million to $218.2 million during the three months ended March 31, 2023 as compared to the same period in 2022 largely due to expenses related to our expanded banking operations and organic business growth including higher salary and employee benefits expense, net occupancy, technology, furniture and equipment, professional and legal fees and other. See further details in the "Non-Interest Income" and "Non-Interest Expense" sections of this MD&A. The internal transfer income increased $33.9 million to $162.5 million for the three months ended March 31, 2023 as compared to the same period a year ago due to the higher allocation of non-interest expense over the same period. Non-interest income increased $15.7 million during the three months ended March 31, 2023 as compared to the same period in 2022 mostly due to incremental increases in several operating non-interest income categories caused by the acquisition of Bank Leumi

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USA and organic growth of our business operations over the last 12-month period. Provision for credit losses increased $4.9 million mainly due to a corporate bond issued by Signature Bank within our AFS debt securities portfolio that was fully charged-off during the first quarter 2023.

The net interest margin for this segment increased 5 basis points to 1.51 percent for the first quarter 2023 as compared to the first quarter 2022 due to a 184 basis point increase in the yield on average investments, partially offset by a 179 basis point increase in cost of our funding sources. The increase in the yield on average investments as compared to the same period a year ago was largely driven by new higher yielding investments and a reduction in premium amortization expense mostly caused by slower principal repayments in the rising interest rate environment.

ASSET/LIABILITY MANAGEMENT

Interest Rate Risk

Our success is largely dependent upon our ability to manage interest rate risk. Interest rate risk can be defined as the exposure of our interest rate sensitive assets and liabilities to the movement in interest rates. Our Asset/Liability Management Committee is responsible for managing such risks and establishing policies that monitor and coordinate our sources and uses of funds. Asset/Liability management is a continuous process due to the constant change in interest rate risk factors. In assessing the appropriate interest rate risk levels for us, management weighs the potential benefit of each risk management activity within the desired parameters of liquidity, capital levels and management’s tolerance for exposure to income fluctuations. Many of the actions undertaken by management utilize fair value analysis and attempt to achieve consistent accounting and economic benefits for financial assets and their related funding sources. We have predominantly focused on managing our interest rate risk by attempting to match the inherent risk and cash flows of financial assets and liabilities. Specifically, management employs multiple risk management activities such as optimizing the level of new residential mortgage originations retained in our mortgage portfolio through increasing or decreasing loan sales in the secondary market, product pricing levels, the desired maturity levels for new originations, the composition levels of both our interest earning assets and interest bearing liabilities, as well as several other risk management activities.

We use a simulation model to analyze net interest income sensitivity to movements in interest rates. The simulation model projects net interest income based on various interest rate scenarios over a 12-month and 24-month period. The model is based on the actual maturity and re-pricing characteristics of rate sensitive assets and liabilities. The model incorporates certain assumptions which management believes to be reasonable regarding the impact of changing interest rates and the prepayment assumptions of certain assets and liabilities as of March 31, 2023. The model assumes immediate changes in interest rates without any proactive change in the composition or size of the balance sheet, or other future actions that management might undertake to mitigate this risk. In the model, the forecasted shape of the yield curve remains static as of March 31, 2023. The impact of interest rate derivatives, such as interest rate swaps, is also included in the model.

Our simulation model is based on market interest rates and prepayment speeds prevalent in the market as of March 31, 2023. Although the size of Valley’s balance sheet is forecasted to remain static as of March 31, 2023 in our model, the composition is adjusted to reflect new interest earning assets and funding originations coupled with rate spreads utilizing our actual originations during the first quarter 2023. The model also utilizes an immediate parallel shift in market interest rates at March 31, 2023.

The assumptions used in the net interest income simulation are inherently uncertain. Actual results may differ significantly from those presented in the table below due to the frequency and timing of changes in interest rates and changes in spreads between maturity and re-pricing categories. Overall, our net interest income is affected by changes in interest rates and cash flows from our loan and investment portfolios. We actively manage these cash flows in conjunction with our liability mix, duration and interest rates to optimize the net interest income, while structuring the balance sheet in response to actual or potential changes in interest rates. Additionally, our net interest income is impacted by the level of competition within our marketplace. Competition can negatively impact the level of interest rates attainable on loans and increase the cost of deposits, which may result in downward pressure on our

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net interest margin in future periods. Other factors, including, but not limited to, the slope of the yield curve and projected cash flows will impact our net interest income results and may increase or decrease the level of asset sensitivity of our balance sheet.

Convexity is a measure of how the duration of a financial instrument changes as market interest rates change. Potential movements in the convexity of bonds held in our investment portfolio, as well as the duration of the loan portfolio may have a positive or negative impact on our net interest income in varying interest rate environments. As a result, the increase or decrease in forecasted net interest income may not have a linear relationship to the results reflected in the table below. Management cannot provide any assurance about the actual effect of changes in interest rates on our net interest income.

The following table reflects management’s expectations of the change in our net interest income over the next 12- month period considering the aforementioned assumptions. While an instantaneous and severe shift in interest rates was used in this simulation model, we believe that any actual shift in interest rates would likely be more gradual and would therefore have a more modest impact than shown in the table below.

	Estimated Change in Future Net Interest Income
Changes in Interest Rates	Dollar Change		Percentage Change
(in basis points)	($ in thousands)
+300	$	148,153	8.19	%
+200	98,911		5.47
+100	49,316		2.73
–100	(33,830)		(1.87)
–200	(75,645)		(4.18)
–300	(131,350)		(7.26)

As noted in the table above, a 100 basis point immediate increase in interest rates combined with a static balance sheet where the size, mix, and proportions of assets and liabilities remain unchanged is projected to increase net interest income over the next 12-month period by 2.73 percent. Management believes the interest rate sensitivity of our balance sheet remains within an acceptable tolerance range at March 31, 2023. However, the level of net interest income sensitivity may increase or decrease in the future as a result of several factors, including potential changes in our balance sheet strategies, the slope of the yield curve and projected cash flows.

Liquidity and Cash Requirements

Bank Liquidity

Liquidity measures the ability to satisfy current and future cash flow needs as they become due. A bank’s liquidity reflects its ability to meet loan demand, to accommodate possible outflows in deposits and to take advantage of interest rate opportunities in the marketplace. Liquidity management is carefully performed and routinely reported by our Treasury Department to two board committees. Among other actions, Treasury reviews historical funding requirements, our current liquidity position, sources and stability of funding, marketability of assets, options for attracting additional funds, and anticipated future funding needs, including the level of unfunded commitments. Our goal is to maintain sufficient liquidity to cover current and potential funding requirements.

The Bank adheres to certain internal liquidity guidelines including ratios of loans to deposits below 110 percent and wholesale funding to total funding below 25 percent. Management maintains flexibility to temporarily exceed these limits in certain operating environments. Our loan to deposits and wholesale funding to total funding ratios were approximately 102.2 percent and 26.9 percent at March 31, 2023, respectively. The level of wholesale funding and resulting excess cash on our balance sheet at March 31, 2023 was mostly due to the cautionary liquidity actions taken in March 2023.

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Valley's short and long-term cash requirements include contractual obligations under borrowings, deposits, payment related to leases, capital expenditures and other purchase commitments. In the ordinary course of operations, the Bank also enters into various financial obligations, including contractual obligations that may require future cash payments. Management believes the Bank has the ability to generate and obtain adequate amounts of cash to meet its short-term and long-term obligations as they come due by utilizing various cash resources described below.

On the asset side of the balance sheet, the Bank has numerous sources of liquid funds in the form of cash and due from banks, interest bearing deposits with banks (including the Federal Reserve Bank of New York), investment securities held to maturity that are maturing within 90 days or would otherwise qualify as maturities if sold (i.e., 85 percent of original cost basis has been repaid), investment securities classified as trading and available for sale, loans held for sale, and from time to time, federal funds sold and receivables related to unsettled securities transactions. Total liquid assets were approximately $7.2 billion, representing 12.1 percent of earning assets at March 31, 2023 and $2.4 billion, representing 4.6 percent of earning assets at December 31, 2022. Of the $7.2 billion of liquid assets at March 31, 2023, approximately $870 million of various investment securities were pledged to counterparties to support our earning asset funding strategies. We anticipate the receipt of approximately $521.1 million in principal payments from securities in the total investment portfolio at March 31, 2023 over the next 12-month period due to normally scheduled principal repayments and expected prepayments of certain securities, primarily residential mortgage-backed securities.

Additional liquidity is derived from scheduled loan payments of principal and interest, as well as prepayments received. Loan principal payments from total loans and loans held for sale at March 31, 2023 are projected to be approximately $16.8 billion over the next 12-month period. As a contingency plan for any liquidity constraints, liquidity could also be derived from the sale of conforming residential mortgages from our loan portfolio or alleviated from the temporary curtailment of lending activities.

On the liability side of the balance sheet, we utilize multiple sources of funds to meet liquidity needs, including retail and commercial deposits, fully FDIC-insured brokered and municipal deposits, and short-term and long-term borrowings. Our core deposit base, which generally excludes all fully insured brokered deposits, as well as retail certificates of deposit over $250 thousand, represents the largest of these sources. Average core deposits totaled approximately $44.9 billion and $38.1 billion for the three months ended March 31, 2023 and for the year ended December 31, 2022, respectively, representing 81.2 percent and 79.2 percent of average earning assets for the respective periods. The level of interest bearing deposits is affected by interest rates offered, which is often influenced by our need for funds and the need to match the maturities of assets and liabilities.

In addition to direct customer deposits, the Bank has ample access to readily available, diverse funding sources to fulfill its current and projected capital needs. The Bank is a member of the Federal Home Loan Bank of New York (FHLB) and has the ability to borrow from them in the form of FHLB advances 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. At March 31, 2023, available borrowing potential, above and beyond amounts already utilized, at these institutions totaled $11.8 billion, including borrowing capacity under the Federal Reserve Bank's discount window totaling $4.3 billion. Additional funding may be provided through deposit gathering networks and in the form of federal funds purchased through our well-established relationships with numerous banks. The Bank has access to approximately $1.5 billion of uncommitted lines for the purchase of federal funds from these banks on a collective basis. Additionally, Valley's collateral pledged to the FHLB may be used to obtain municipal letters of credit (MULOC) to collateralize certain municipal deposits held by Valley. At March 31, 2023, Valley had $1.0 billion of MULOCs outstanding for this purpose.

We also have access to other short-term and long-term borrowing sources to support our asset base, such as repos (i.e., securities sold under agreements to repurchase). Short-term borrowings increased $6.3 billion to $6.4 billion at March 31, 2023 as compared to December 31, 2022. In March 2023, we increased our short-term borrowings out of an abundance of caution to prudently bolster our liquidity position in the wake of the two recent bank failures. Since March 31, 2023, short-term FHLB advances have been allowed to mature resulting in a more normal liquidity

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position. We continue to closely monitor changes in the current banking environment and have substantial access to additional liquidity as highlighted above.

Additionally, the Federal Reserve established the Bank Term Funding Program on March 12, 2023 as funding source for eligible depository institutions. The Program can provide short-term liquidity (up to one year) against the par value of certain high-quality collateral, such as U.S. Treasury securities, and eliminate the potential need for an institution to sell those securities in times of stress. Advances under the Program can be requested until March 11, 2024. As of March 31, 2023, Valley did not participate in this Program, but currently has this option as an available short-term liquidity source.

Corporation Liquidity

Valley’s recurring cash requirements primarily consist of dividends to preferred and common shareholders and interest expense on subordinated notes and junior subordinated debentures issued to capital trusts. As part of our ongoing asset/liability management strategies, Valley could also use cash to repurchase shares of its outstanding common stock under its share repurchase program or redeem its callable junior subordinated debentures and subordinated notes. Valley's cash needs are routinely satisfied by dividends collected from the Bank. Projected cash flows from the Bank are expected to be adequate to pay preferred and common dividends, if declared, and interest expense payable to subordinated note holders and capital trusts, given the current capital levels and current profitable operations of the Bank. In addition to dividends received from the Bank, Valley can satisfy its cash requirements by utilizing its own cash and potential new funds borrowed from outside sources or capital issuances. Valley also has the right to defer interest payments on the junior subordinated debentures, and therefore distributions on its trust preferred securities for consecutive quarterly periods of up to five years, but not beyond the stated maturity dates, and subject to other conditions.

Investment Securities Portfolio

As of March 31, 2023, we had $50.2 million, $1.3 billion, and $3.8 billion in equity, available for sale debt securities and held to maturity debt securities, respectively. The available for sale and held to maturity debt securities portfolios, which comprise the majority of the securities we own, include: U.S. Treasury securities, U.S. government agency securities, tax-exempt and taxable issuances of states and political subdivisions, residential mortgage-backed securities, single-issuer trust preferred securities principally issued by bank holding companies and high quality corporate bonds. Among other securities, our available for sale debt securities include securities such as bank issued and other corporate bonds, as well as municipal special revenue bonds, which may pose a higher risk of future impairment charges to us as a result of the uncertain economic environment and its potential negative effect on the future performance of the security issuers. The equity securities consisted of two publicly traded mutual funds, CRA investments and several other equity investments we have made in companies that develop new financial technologies and in partnerships that invest in such companies. Our CRA and other equity investments are a mix of both publicly traded entities and privately held entities. We also had $6.9 million of trading debt securities at March 31, 2023 consisting of investment grade municipal bonds and U.S. Treasury securities.

We continually evaluate our investment securities portfolio in response to established asset/liability management objectives, changing market conditions that could affect profitability, and the level of interest rate risk to which we are exposed to. These evaluations may cause us to change the level of funds we deploy into investment securities, change the composition of our investment securities portfolio, and change the proportion of investments primarily made into the available for sale and held to maturity debt securities portfolios.

Allowance for Credit Losses and Impairment Analysis

Available for sale debt securities. Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. In assessing whether a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a

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credit loss exists and an allowance for credit losses is recorded, limited to the amount that the fair value is less than the amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive loss, net of applicable taxes.

We have evaluated all available for sale debt securities that are in an unrealized loss position as of March 31, 2023 and December 31, 2022 and determined that the declines in fair value were mainly attributable to changes in market volatility, due to factors such as interest rates and spread factors, but not attributable to credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, Valley recognized a credit related impairment of one corporate bond issued by Signature Bank resulting in both a provision for credit losses and full charge-off of the security totaling $5.0 million during the three months ended March 31, 2023. There was no other impairment recognized within the available for sale debt securities portfolio during the three months ended March 31, 2023.

Valley does not intend to sell any of its available for sale debt securities in an unrealized loss position prior to

recovery of our amortized cost basis, and it is more likely than not that Valley will not be required to sell any of its securities prior to recovery of our amortized cost basis. None of the available for sale debt securities were past due as of March 31, 2023 and there was no allowance for credit losses for available for sale debt securities at March 31, 2023 and December 31, 2022.

Held to maturity debt securities. Valley estimates the expected credit losses on held to maturity debt securities that have loss expectations using a discounted cash flow model developed by a third party. Valley has a zero-loss expectation for certain securities within the held to maturity portfolio, including U.S. Treasury securities, U.S. agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds. To measure the expected credit losses on held to maturity debt securities that have loss expectations, Valley estimates the expected credit losses using a discounted cash flow model developed by a third party. Assumptions used in the model for pools of securities with common risk characteristics include the historical lifetime probability of default and severity of loss in the event of default, with the model incorporating several economic cycles of loss history data to calculate expected credit losses given default at the individual security level. Held to maturity debt securities were carried net of an allowance for credit losses totaling approximately $1.6 million at both March 31, 2023 and December 31, 2022.

Investment grades. The investment grades in the table below reflect the most current independent analysis performed by third parties of each security as of the date presented and not necessarily the investment grades at the date of our purchase of the securities. For many securities, the rating agencies may not have performed an independent analysis of the tranches owned by us, but rather an analysis of the entire investment pool. For this and other reasons, we believe the assigned investment grades may not accurately reflect the actual credit quality of each security and should not be viewed in isolation as a measure of the quality of our investment portfolio.

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The following table presents the available for sale and held to maturity debt investment securities portfolios by investment grades at March 31, 2023:

	March 31, 2023
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Available for sale investment grades: *
AAA Rated	$	1,072,166	$	106	$	(109,683)	$	962,589
AA Rated	150,571		—		(24,559)		126,012
A Rated	10,111		—		(1,196)		8,915
BBB Rated	69,826		—		(6,072)		63,754
Not rated	104,333		—		(10,765)		93,568
Total	$	1,412,007	$	106	$	(152,877)	$	1,259,236
Held to maturity investment grades: *
AAA Rated	$	3,406,081	$	2,844	$	(422,459)	$	2,986,466
AA Rated	249,672		384		(12,288)		237,768
A Rated	6,593		2		(134)		6,461
BBB Rated	6,000		—		(647)		5,353
Non-investment grade	5,437		—		(833)		4,604
Not rated	173,429		1		(13,598)		159,832
Total	$	3,847,212	$	3,231	$	(449,959)	$	3,400,484
Allowance for credit losses	1,633		—		—		1,633
Total, net of allowance for credit losses	$	3,845,579	$	3,231	$	(449,959)	$	3,398,851

* Rated using external rating agencies. Ratings categories include the entire range. For example, “A rated” includes A+, A, and A-. Split rated securities with two ratings are categorized at the higher of the rating levels.

The unrealized losses in the AAA and AA rated categories of both the available for sale and held to maturity debt securities portfolios (in the above table) were largely related to residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac and continued to be driven by the rising interest rate environment during the last 12 months. The investment securities available for sale and held to maturity portfolio included $104.3 million and $173.4 million, respectively, of investments not rated by the rating agencies with aggregate unrealized losses of $10.8 million and $13.6 million, respectively, at March 31, 2023. The unrealized losses within non-rated available for sale debt securities was mostly related to several large corporate bonds negatively impacted by rising interest rates, and not changes in underlying credit. The unrealized losses within non-rated held to maturity debt securities mostly related to four single-issuer bank trust preferred issuances with a combined amortized cost of $36.0 million and several corporate and other debt securities.

See Note 7 to the consolidated financial statements for additional information regarding our investment securities portfolio.

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Loan Portfolio

The following table reflects the composition of the loan portfolio as of the dates presented:

	March 31, 2023			December 31, 2022
	($ in thousands)
Loans
Commercial and industrial	$	9,043,946		$	8,804,830
Commercial real estate:
Commercial real estate	27,051,111			25,732,033
Construction	3,725,967			3,700,835
Total commercial real estate	30,777,078			29,432,868
Residential mortgage	5,486,280			5,364,550
Consumer:
Home equity	516,592			503,884
Automobile	1,717,141			1,746,225
Other consumer	1,118,929			1,064,843
Total consumer loans	3,352,662			3,314,952
Total loans*	$	48,659,966		$	46,917,200
As a percent of total loans:
Commercial and industrial	18.6		%	18.8		%
Commercial real estate	63.2			62.7
Residential mortgage	11.3			11.4
Consumer loans	6.9			7.1
Total	100.0		%	100.0		%

*     Includes net unearned discount and deferred loan fees of $125.4 million and $120.5 million at March 31, 2023 and December 31, 2022, respectively.

Total loans increased $1.7 billion, or 14.9 percent on an annualized basis to $48.7 billion at March 31, 2023 from December 31, 2022 mainly due to continued strong organic loan growth in commercial loan categories and a slower loan prepayment activity within the loan portfolio during the first quarter 2023. Total commercial real estate (including construction) and commercial and industrial loans increased 18.3 percent and 10.9 percent, respectively, on an annualized basis during the first quarter 2023. Residential mortgage loans held for sale at fair value totaled $17.2 million and $18.1 million at March 31, 2023 and December 31, 2022, respectively.

Commercial and industrial loans increased $239.1 million to $9.0 billion at March 31, 2023 as compared to December 31, 2022. The organic growth was mainly a result of the solid new loan volumes from our pre-existing long-term customer base across most of our geographic footprints, as well as the continued efforts of our commercial banking relationship teams.

Commercial real estate loans (excluding construction loans) increased $1.3 billion to $27.1 billion at March 31, 2023 from December 31, 2022 reflecting solid organic growth mainly due to demand for non-owner occupied loans across our geographic footprint. Our organic approach of loan production is primarily the expansion of lending with our existing clients while also establishing new relationships in our primary and new market areas. We continue to grow our commercial lending activities from out of market expansion efforts in states such as Pennsylvania, Georgia and Tennessee, as well as our relatively new markets in California and Illinois. In addition, our commercial real estate production remained strong in loans secured by multi-family dwellings, warehouses and healthcare facilities. At March 31, 2023, commercial real estate loans collateralized by office buildings were approximately $3.1 billion of the $27.1 billion portfolio. These loans are geographically disbursed largely across Florida, Alabama, New Jersey, New York, and Manhattan with a combined weighted average loan to value ratio of 54 percent and debt service coverage ratio of 1.90.

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Construction loans increased only $25.1 million to $3.7 billion at March 31, 2023 from December 31, 2022 mainly driven by advances on pre-exiting construction loan projects in New Jersey, New York and Florida. The growth in new construction loans was partially offset by the run-off of completed existing projects, and, to a lesser extent, migration of such completed projects to permanent financing.

Residential mortgage loans increased $121.7 million, or 9.1 percent on an annualized basis, during the first quarter 2023 as we largely originated new loans for the held for investment portfolio rather than for sale. New and refinanced residential mortgage loan originations totaled $194.4 million for the first quarter 2023 as compared to $309.1 million and $552.6 million for the fourth quarter 2022 and first quarter 2022, respectively. Florida originations totaled $53.6 million and represented 27.6 percent of total residential mortgage loan originations in the quarter. During the first quarter 2023, we retained approximately 86.3 percent of the total residential mortgage originations in our held for investment loan portfolio. Of the total originations in the first quarter 2023, only $26.6 million of residential mortgage loans were originated for sale rather than held for investment as compared to $144.5 million during the first quarter 2022. We may continue to retain a higher percentage of new loan volumes during the second quarter 2023 mainly due to our management of the interest rate risk and the mix of the interest earning assets on our balance sheet. Additionally, the volume of both new and refinanced loan applications has remained relatively low in the early stages of the second quarter 2023 due to the high level of mortgage interest rates and tight housing inventories and may challenge our ability to grow this loan category.

Home equity loans increased by $12.7 million to $516.6 million at March 31, 2023 compared to December 31, 2022 as a result of modest growth in new originations that continues to be challenged by the unfavorable high interest rate environment.

Automobile loans decreased by $29.1 million, or 6.7 percent on an annualized basis, to $1.7 billion at March 31, 2023 as compared to December 31, 2022 largely due to lower consumer demand for new and used vehicle financing because of the higher interest rate environment. During the first quarter 2023, the interest rates on new car loans reached the highest level since 2008. We originated $31.5 million in auto loans through our dealership network during the first quarter 2023 as compared to $73.1 million in the fourth quarter 2022. Of the total originations, our Florida dealership network represented approximately 18 percent of new loans, during the first quarter 2023. Despite increased new automobile inventories available to consumers, we anticipate that the impact of inflation on average new vehicle prices coupled with rising interest rates could continue to have a negative impact on our ability to grow this loan category during the second quarter 2023.

Other consumer loans increased $54.1 million to $1.1 billion at March 31, 2023 as compared to December 31, 2022 mainly due to moderate growth in our collateralized personal lines of credit portfolio.

A significant part of our lending is in northern and central New Jersey, New York City, Long Island and Florida. To mitigate our geographic risks, we make efforts to maintain a diversified portfolio as to type of borrower and loan to guard against a potential downward turn in any one economic sector.

While confident in our commercial loan pipelines and diverse residential and consumer loan offerings, there can be no assurance that the growth trends experienced in most loan categories during the first quarter 2023 will continue, or loan balances will not decline from March 31, 2023. We expect a more challenging overall loan origination environment moving forward, especially in the residential mortgage and consumer loan portfolios, due to the impact of higher market interest rates on customer demand and selective tightening of certain underwriting standards by Valley.

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Non-performing Assets

Non-performing assets (NPA) include non-accrual loans, other real estate owned (OREO), and other repossessed assets (which primarily consist of automobiles and taxi medallions) at March 31, 2023. Loans are generally placed on non-accrual status when they become past due in excess of 90 days as to payment of principal or interest. Exceptions to the non-accrual policy may be permitted if the loan is sufficiently collateralized and in the process of collection. OREO is acquired through foreclosure on loans secured by land or real estate. OREO and other repossessed assets are reported at lower of cost or fair value, less estimated cost to sell.

Our NPAs decreased $27.0 million to $244.9 million at March 31, 2023 as compared to December 31, 2022 mainly due to two large charge-offs within non-accrual commercial and industrial and construction loans during the first quarter 2023. NPAs as a percentage of total loans and NPAs totaled 0.50 percent and 0.58 percent at March 31, 2023 and December 31, 2022, respectively (as shown in the table below). Our total NPAs has remained relatively low as a percentage of the total loan portfolio and the level of NPAs, which is reflective of our consistent approach to the loan underwriting criteria for both Valley originated loans and loans purchased from third parties. For additional details, see the "Credit quality indicators" section in Note 8 to the consolidated financial statements.

Our lending strategy is based on underwriting standards designed to maintain high credit quality and we remain optimistic regarding the overall future performance of our loan portfolio. During the three months ended March 31, 2023, our overall credit trends have remained stable, and our business and borrowers continued to demonstrate resilience and growth despite the unexpected challenges across the banking system, slower economic growth, persistently elevated inflation and the overall uncertain economy. However, management cannot provide assurance that the non-performing assets will not materially increase from the levels reported at March 31, 2023 due to the aforementioned or other factors potentially impacting our lending customers.

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The following table sets forth by loan category accruing past due and non-performing assets at the dates indicated in conjunction with our asset quality ratios: 

	March 31, 2023			December 31, 2022
	($ in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	20,716		$	11,664
Commercial real estate	13,580			6,638
Residential mortgage	12,599			16,146
Total consumer	7,845			9,087
Total 30 to 59 days past due	54,740			43,535
60 to 89 days past due:
Commercial and industrial	24,118			12,705
Commercial real estate	—			3,167
Residential mortgage	2,133			3,315
Total consumer	1,519			1,579
Total 60 to 89 days past due	27,770			20,766
90 or more days past due:
Commercial and industrial	8,927			18,392
Commercial real estate	—			2,292
Construction	6,450			3,990
Residential mortgage	1,668			1,866
Total consumer	747			47
Total 90 or more days past due	17,792			26,587
Total accruing past due loans	$	100,302		$	90,888
Non-accrual loans:
Commercial and industrial	$	78,606		$	98,881
Commercial real estate	67,938			68,316
Construction	68,649			74,230
Residential mortgage	23,483			25,160
Total consumer	3,318			3,174
Total non-accrual loans	241,994			269,761
Other real estate owned (OREO)	1,189			286
Other repossessed assets	1,752			1,937
Total non-performing assets (NPAs)	$	244,935		$	271,984
Total non-accrual loans as a % of loans	0.50		%	0.57		%
Total NPAs as a % of loans and NPAs	0.50			0.58
Total accruing past due and non-accrual loans as a % of loans	0.70			0.77
Allowance for loan losses as a % of non-accrual loans	180.54			170.02

Loans past due 30 to 59 days increased $11.2 million to $54.7 million at March 31, 2023 as compared to December 31, 2022 mostly due to several large commercial and industrial loans and one matured commercial real estate loan in the process of renewal included in this delinquency category at March 31, 2023. These increases were partially offset by improved performance within the residential mortgage and consumer loan categories.

Loans past due 60 to 89 days increased $7.0 million to $27.8 million at March 31, 2023 as compared to December 31, 2022 primarily due to higher commercial and industrial loans largely driven by a few large loans included in this delinquency category at March 31, 2023.

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Loans 90 days or more past due and still accruing interest decreased $8.8 million to $17.8 million at March 31, 2023 as compared to December 31, 2022 mainly due to the renewals in the normal course of two matured loans during the first quarter 2023 that were previously included in this delinquency category at December 31, 2022. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

Non-accrual loans decreased $27.8 million to $242.0 million at March 31, 2023 as compared to $269.8 million at December 31, 2022 mainly driven by decreases in commercial and industrial loans and construction loans. Non-accrual commercial and industrial loans decreased $20.3 million primarily due to the charge-off of one loan participation that was fully reserved for in our allowance for loan losses at December 31, 2022. The decrease of $5.6 million in construction loans is mostly related to the partial charge-off of one loan relationship during the first quarter 2023 that had related allowance reserves totaling $4.3 million at December 31, 2022.

Although the timing of collection is uncertain, management believes that the majority of the non-accrual loans at March 31, 2023, are well secured and largely collectible based in part, on our quarterly review of collateral dependent loans and the valuation of the underlying collateral, if applicable. Any estimated shortfall in each collateral valuation results in an allocation of specific reserves within our allowance for credit losses for loans.

Non-performing taxi medallion loans totaled $66.0 million of the $78.6 million non-accrual commercial and industrial loans at March 31, 2023. At March 31, 2023, all taxi medallion loans in the loan portfolio were on non-accrual status and had related reserves of $41.9 million, or 64.0 percent of such loans, within the allowance for loan losses. Potential further declines in the market valuation of taxi medallions and the current operating environment mainly within New York City may negatively impact the performance of this portfolio.

OREO properties totaled $1.2 million at March 31, 2023 and increased $903 thousand as compared to December 31, 2022. There were no sales of OREO properties in the first quarter 2023 and net gains on sales of OREO in the first quarter 2022 were not material. The residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1.5 million and $2.6 million at March 31, 2023 and December 31, 2022, respectively.

Allowance for Credit Losses for Loans

The allowance for credit losses (ACL) for loans includes the allowance for loan losses and the reserve for unfunded credit commitments. Under CECL, our methodology to establish the allowance for loan losses has two basic components: (i) a collective reserve component for estimated expected credit losses for pools of loans that share common risk characteristics and (ii) an individual reserve component for loans that do not share risk characteristics, consisting of collateral dependent loans. Valley also maintains a separate allowance for unfunded credit commitments mainly consisting of undisbursed non-cancellable lines of credit, new loan commitments and commercial standby letters of credit.

Valley estimated the collective ACL using a current expected credit losses methodology which is based on relevant information about historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the loan balances. In estimating the component of the allowance on a collective basis, we use a transition matrix model which calculates an expected life of loan loss percentage for each loan pool by generating probability of default and loss given default metrics. The metrics are based on the migration of loans within the commercial and industrial loan categories from performing to loss by credit quality rating or delinquency categories using historical life-of-loan analysis periods for each loan portfolio pool and the severity of loss based on the aggregate net lifetime losses. The model's expected losses based on loss history are adjusted for qualitative factors. Among other things, these adjustments include and account for differences in: (i) the impact of the reasonable and supportable economic forecast, relative probability weightings and reversion period, (ii) other asset specific risks to the extent that they do not exist in the historical loss information, and (iii) net expected recoveries of charged-off loan balances. These adjustments are based on qualitative factors not reflected in the quantitative model but are likely to impact the measurement of estimated credit losses. The expected lifetime loss rate is the life of loan loss percentage from the transition matrix model plus the impact of the adjustments for qualitative factors. The expected

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credit losses are the product of multiplying the model’s expected lifetime loss rate by the exposure at default at period end on an undiscounted basis.

Valley utilizes 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 on a straight-line basis. The forecasts consist of a multi-scenario economic forecast model to estimate future credit losses and is governed by a cross-functional committee. The committee meets each quarter to determine which economic scenarios developed by Moody's will be incorporated into the model, as well as the relative probability weightings of the selected scenarios, based upon all readily available information. The model projects economic variables under each scenario based on detailed statistical analyses. We have identified and selected key variables that most closely correlated to our historical credit performance, which include: GDP, unemployment and the Case-Shiller Home Price Index.

At March 31, 2023, the probability weightings used in our economic forecast, inclusive of the Moody's Baseline, S-3 downside and S-4 adverse scenarios, remained unchanged from December 31, 2022. The standalone Moody's Baseline scenario reflects a slightly more optimistic outlook as compared to December 31, 2022 in terms of GDP growth and unemployment levels, but the overall outlook remained relatively weak. The updated Moody's forecasts were not materially impacted by the recent bank failures, as they noted the failures did not appear to be symptomatic of serious broad-based issues in the financial system.

At March 31, 2023, the Moody's Baseline forecast included the following specific assumptions:

•GDP expansion approximately 1 percent in the second quarter 2023;

•Unemployment of 3.5 percent in the second quarter 2023 and 3.7 to 4.0 percent over the remainder of the forecast period ending in the first quarter 2025;

•Continued concerns about increased federal debt burden pushed by rising interest rates, high inflation, elevated house prices and lower consumer spending;

•The Federal Reserve continues its tightening monetary policy, including an increase of 25 basis points at its May 2023 meeting but intends to keep rates steady through 2023 with no reductions until 2024; and

•Inflation remains elevated but continues to trend downward, while reporting at approximately 5 percent in March 2023.

See more details regarding our allowance for credit losses for loans in Note 8 to the consolidated financial statements.

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The table below summarizes the relationship among loans, loans charged-off, loan recoveries, the provision for credit losses and the allowance for credit losses for loans for the periods indicated:

	Three Months Ended
	March 31, 2023			December 31, 2022			March 31, 2022
	($ in thousands)
Allowance for credit losses for loans
Beginning balance	$	483,255		$	498,408		$	375,702
Impact of the adoption of ASU No. 2022-02 (1)	(1,368)			—			—
Beginning balance, adjusted	481,887			498,408			375,702
Loans charged-off:
Commercial and industrial	(26,047)			(22,106)			(1,571)
Commercial real estate	—			(388)			(173)
Construction	(5,698)			—			—
Residential mortgage	—			(1)			(26)
Total consumer	(828)			(1,544)			(825)
Total charge-offs	(32,573)			(24,039)			(2,595)
Charged-off loans recovered:
Commercial and industrial	1,399			1,069			824
Commercial real estate	24			13			107
Residential mortgage	21			17			457
Total consumer	761			498			1,257
Total recoveries	2,205			1,597			2,645
Total net loan (charge-offs) recoveries	(30,368)			(22,442)			50
Provision charged for credit losses	9,450			7,289			3,500
Ending balance	$	460,969		$	483,255		$	379,252
Components of allowance for credit losses for loans:
Allowance for loan losses	$	436,898		$	458,655		$	362,510
Allowance for unfunded credit commitments	24,071			24,600			16,742
Allowance for credit losses for loans	$	460,969		$	483,255		$	379,252
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	9,979		$	5,353		$	3,258
Provision for unfunded credit commitments	(529)			1,936			242
Total provision for credit losses for loans	$	9,450		$	7,289		$	3,500
Allowance for credit losses for loans as a % of total loans	0.95		%	1.03		%	1.07		%

(1) Represents the opening adjustment for the adoption of ASU No. 2022-02 effective January 1, 2023.

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The following table presents the relationship among net loans charged-off and recoveries, and average loan balances outstanding for the periods indicated:

	Three Months Ended
	March 31, 2023		December 31, 2022		March 31, 2022
	($ in thousands)
Net loan (charge-offs) recoveries
Commercial and industrial	$	(24,648)	$	(21,037)	$	(747)
Commercial real estate	24		(375)		(66)
Construction	(5,698)		—		—
Residential mortgage	21		16		431
Total consumer	(67)		(1,046)		432
Total	$	(30,368)	$	(22,442)	$	50
Average loans outstanding
Commercial and industrial	$	8,754,853	$	8,688,005	$	5,727,350
Commercial real estate	26,555,421		25,233,650		19,342,697
Construction	3,780,615		3,753,155		1,914,413
Residential mortgage	5,363,421		5,158,615		4,681,417
Total consumer	3,405,061		3,252,938		2,957,525
Total	$	47,859,371	$	46,086,363	$	34,623,402
Annualized net loan charge-offs (recoveries) to average loans outstanding
Commercial and industrial	1.13%		0.97%		0.05%
Commercial real estate	0.00		0.01		0.00
Construction	0.60		0.00		0.00
Residential mortgage	0.00		0.00		(0.04)
Total consumer	0.01		0.13		(0.06)
Total loans	0.25		0.19		0.00

Net loan charge-offs totaled $30.4 million for the first quarter 2023 as compared to $22.4 million for the fourth quarter 2022 and net recoveries of loan charge-offs $50 thousand for the first quarter 2022. The first quarter 2023 net loan charge-offs largely related to one commercial and industrial loan participation charged-off. This loan was fully reserved for in our allowance for loan losses as of December 31, 2022 and its remaining balance, net of charge-offs, was immaterial at March 31, 2023. The amount of net loan charge-offs (as presented in the above table) and the low level of individual loan charge-offs for the first quarter 2023 continued to trend within management's expectations for the credit quality of the loan portfolio at March 31, 2023.

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The following table summarizes the allocation of the allowance for credit losses for loans to loan portfolio categories and the allocations as a percentage of each loan category:

	March 31, 2023				December 31, 2022				March 31, 2022
	Allowance Allocation		Allocation as a % of Loan Category		Allowance Allocation		Allocation as a % of Loan Category		Allowance Allocation		Allocation as a % of Loan Category
	($ in thousands)
Loan Category:
Commercial and industrial loans	$	127,992	1.42	%	$	140,008	1.59	%	$	101,203	1.75	%
Commercial real estate loans:
Commercial real estate	190,420		0.70		200,248		0.78		189,927		0.96
Construction	52,912		1.42		58,987		1.59		30,022		1.38
Total commercial real estate loans	243,332		0.79		259,235		0.88		219,949		1.00
Residential mortgage loans	41,708		0.76		39,020		0.73		28,189		0.60
Consumer loans:
Home equity	4,417		0.86		4,332		0.86		3,656		0.93
Auto and other consumer	19,449		0.69		16,060		0.57		9,513		0.37
Total consumer loans	23,866		0.71		20,392		0.62		13,169		0.45
Allowance for loan losses	436,898		0.90		458,655		0.98		362,510		1.03
Allowance for unfunded credit commitments	24,071				24,600				16,742
Total allowance for credit losses for loans	$	460,969			$	483,255			$	379,252
Allowance for credit losses for loans as a % total loans			0.95	%			1.03	%			1.07	%

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 0.95 percent at March 31, 2023 as compared to 1.03 percent and 1.07 percent at December 31, 2022 and March 31, 2022, respectively. During the first quarter 2023, the provision for credit losses for loans totaled $9.5 million as compared to $7.3 million and $3.5 million for the fourth quarter 2022 and first quarter 2022, respectively. At March 31, 2023, our allowance for credit losses for loans as a percentage of total loans decreased as compared to December 31, 2022 largely due to the impact of the first quarter 2023 loan charge-offs with prior allocated reserves. The reduction in allocated reserves for specific loans was partially offset by a moderate uptick in non-economic qualitative reserves for commercial and industrial loans within our CECL model at March 31, 2023. The economic component of our current CECL model was relatively stable as compared to December 31, 2022.

Capital Adequacy

A significant measure of the strength of a financial institution is its shareholders’ equity. At March 31, 2023 and December 31, 2022, shareholders’ equity totaled approximately $6.5 billion and $6.4 billion, which represented 10.1 percent and 11.1 percent of total assets, respectively.

During the three months ended March 31, 2023, total shareholders’ equity increased by approximately $110.8 million primarily due to:

•net income of $146.6 million,

•other comprehensive income of $20.4 million,

•additional capital issued totaling $3.8 million,

•a $990 thousand net cumulative effect adjustment to retained earnings for the adoption of ASU 2022-02, partially offset by

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•cash dividends declared on common and preferred stock totaling a combined $60.4 million and

•a $505 thousand decrease attributable to the effect of our stock incentive plan.

Valley and Valley National Bank are subject to the regulatory capital requirements administered by the Federal Reserve Bank and the OCC. 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.

We are required to maintain common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, Tier 1 capital to risk-weighted assets ratio of 6.0 percent, ratio of total capital to risk-weighted assets of 8.0 percent, and a minimum leverage ratio of 4.0 percent, plus a 2.5 percent capital conservation buffer added to the minimum requirements for capital adequacy purposes. As of March 31, 2023 and December 31, 2022, Valley and Valley National Bank exceeded all capital adequacy requirements (see table below).

For regulatory capital purposes, in accordance with the Federal Reserve Board’s final interim rule as of April 3, 2020, we deferred 100 percent of the CECL Day 1 impact to shareholders' equity plus 25 percent of the reserve build (i.e., provision for credit losses less net charge-offs) for a two-year period ending January 1, 2022. On January 1, 2022, the deferral amount totaling $47.3 million after-tax started to be phased-in by 25 percent and will increase 25 percent per year until fully phased-in on January 1, 2025. As of March 31, 2023, approximately $23.6 million of the $47.3 million deferral amount was recognized as a reduction to regulatory capital and, as a result, decreased our risk-based capital ratios by approximately 6 basis points.

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The following table presents Valley’s and Valley National Bank’s actual capital positions and ratios under Basel III risk-based capital guidelines at March 31, 2023 and December 31, 2022:

	Actual				Minimum Capital Requirements				To Be Well Capitalized Under Prompt Corrective Action Provision
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	($ in thousands)
As of March 31, 2023
Total Risk-based Capital
Valley	$	5,656,193	11.58	%	$	5,126,496	10.50	%	N/A		N/A
Valley National Bank	5,736,909		11.75		5,125,168		10.50		$	4,881,112	10.00	%
Common Equity Tier 1 Capital
Valley	4,402,540		9.02		3,417,664		7.00		N/A		N/A
Valley National Bank	5,362,097		10.99		3,416,778		7.00		3,172,723		6.50
Tier 1 Risk-based Capital
Valley	4,617,381		9.46		4,150,021		8.50		N/A		N/A
Valley National Bank	5,362,097		10.99		4,148,945		8.50		3,904,890		8.00
Tier 1 Leverage Capital
Valley	4,617,381		7.96		2,319,296		4.00		N/A		N/A
Valley National Bank	5,362,097		9.25		2,319,185		4.00		2,898,982		5.00
As of December 31, 2022
Total Risk-based Capital
Valley	$	5,569,639	11.63	%	$	5,026,621	10.50	%	N/A		N/A
Valley National Bank	5,659,511		11.84		5,018,129		10.50		$	4,779,170	10.00	%
Common Equity Tier 1 Capital
Valley	4,315,659		9.01		3,351,080		7.00		N/A		N/A
Valley National Bank	5,284,372		11.06		3,345,419		7.00		3,106,461		6.50
Tier 1 Risk-based Capital
Valley	4,530,500		9.46		4,069,169		8.50		N/A		N/A
Valley National Bank	5,284,372		11.06		4,062,295		8.50		3,823,336		8.00
Tier 1 Leverage Capital
Valley	4,530,500		8.23		2,200,822		4.00		N/A		N/A
Valley National Bank	5,284,372		9.60		2,200,891		4.00		2,751,114		5.00

Typically, our primary source of capital growth is through retention of earnings. Our rate of earnings retention is derived by dividing undistributed earnings per common share by earnings (or net income available to common shareholders) per common share. Our retention ratio was approximately 60.7 percent for the three months ended March 31, 2023 as compared to 61.4 percent for the year ended December 31, 2022.

Cash dividends declared amounted to $0.11 per common share for each of the three months ended March 31, 2023 and 2022. The Board is committed to examining and weighing relevant facts and considerations, including its commitment to shareholder value, each time it makes a cash dividend decision.

Off-Balance Sheet Arrangements, Contractual Obligations and Other Matters

For a discussion of Valley’s off-balance sheet arrangements and contractual obligations see information included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022 in the MD&A section - “Liquidity and Cash Requirements” and Notes 13 and 14 to the consolidated financial statements included in this report.

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Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk refers to potential losses arising from changes in interest rates, foreign exchange rates, equity prices, and commodity prices. Valley’s market risk is composed primarily of interest rate risk. See page 65 for a discussion of interest rate risk.

Item 4. Controls and Procedures

(a) Disclosure controls and procedures. Valley maintains disclosure controls and procedures which, consistent with Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act), are defined to mean controls and other procedures that are designed to ensure that information required to be disclosed in the reports that Valley files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to ensure that such information is accumulated and communicated to Valley’s management, including Valley’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow timely decisions regarding required disclosure.

Valley’s CEO and CFO, with the assistance of other members of Valley’s management, have evaluated the effectiveness of Valley’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, Valley’s CEO and CFO have concluded that Valley’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) Changes in internal controls over financial reporting. Valley’s CEO and CFO have also concluded that there have not been any changes in Valley’s internal control over financial reporting in the quarter ended March 31, 2023 that have materially affected, or are reasonably likely to materially affect, Valley’s internal control over financial reporting.

Valley’s management, including the CEO and CFO, does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all errors and all fraud. A system of internal control, no matter how well conceived and operated, provides reasonable, not absolute, assurance that the objectives of the system of internal control are met. The design of a system of internal control reflects resource constraints and the benefits of controls must be considered relative to their costs. Because there are inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Valley have been or will be detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns occur because of a simple error or mistake. Controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of internal control is based in part upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all future conditions; over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with the policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

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PART II - OTHER INFORMATION 

Item 1. Legal Proceedings

In the normal course of business, we are a party to various outstanding legal proceedings and claims. There have been no material changes in the legal proceedings, if any, previously disclosed under Part I, Item 3 of Valley’s Annual Report on Form 10-K for the year ended December 31, 2022.

Item 1A. Risk Factors

There have been no material changes in the risk factors previously disclosed in the section titled "Risk Factors" in Part I, Item 1A of Valley’s Annual Report on Form 10-K for the year ended December 31, 2022, except as described below:

Our financial results and condition may be adversely impacted by recent events in the banking industry or any future similar events.

Recent events impacting the banking industry, including the bank failures in March and April 2023, have resulted in significant disruption and volatility in the capital markets, reduced current valuations of bank securities, and decreased confidence in banks among depositors and other counterparties as well as investors. These events occurred in the context of rapidly rising interest rates which, among other things, have resulted in unrealized losses in longer duration debt securities and loans held by banks, increased competition for deposits and potentially increased the risk of recession. These events have had, and may continue to have, an adverse impact on the market price of our common stock.

While the Department of the Treasury, the Federal Reserve, and the FDIC took steps to ensure that depositors of recently failed banks would have access to their insured and uninsured deposits, and to facilitate sales of certain failed banks, there is no assurance that these or similar actions will restore customer confidence in the banking system, and we may be further impacted by concerns regarding the soundness of other financial institutions, or other future bank failures or disruptions. Any loss of client deposits or changes in our credit ratings could increase the cost of funding, limit access to capital markets or negatively impact our overall liquidity or capitalization. The cost of resolving the recent bank failures may also prompt the FDIC to increase its premiums above current levels or to issue additional special assessments.

These recent events and any future similar events may also result in changes to laws or regulations governing bank holding companies and banks, including higher capital requirements, or the imposition of restrictions through supervisory or enforcement activities, which could materially impact our business.

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Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter, we did not sell any equity securities not registered under the Securities Act of 1933, as amended. Purchases of equity securities by the issuer and affiliated purchasers during the three months ended March 31, 2023 were as follows:

ISSUER PURCHASES OF EQUITY SECURITIES 

Period	Total  Number of Shares  Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans	Maximum Number of Shares that May Yet Be Purchased Under the Plans (2)
January 1, 2023 to January 31, 2023	4,739	$	11.32	—	25,000,000
February 1, 2023 to February 28, 2023	711,344	11.91		—	25,000,000
March 1, 2023 to March 31, 2023	6,362	11.55		—	25,000,000
Total	722,445	$	11.90	—

(1)Includes repurchases made in connection with the vesting of employee restricted stock awards.

(2)On April 26, 2022, Valley publicly announced a stock repurchase program for up to 25 million shares of Valley common stock. The authorization to repurchase will expire on April 25, 2024.

Item 5. Other Items

None.

Item 6. Exhibits

(3)	Articles of Incorporation and By-laws:
	(3.1)	Restated Certificate of Incorporation of the Registrant, incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 10-Q Quarterly Report filed on August 7, 2020.
	(3.2)	By-laws of the Registrant, as amended and restated, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Form 8-K Current Report filed on October 24, 2018.
(31.1)	Certification of Ira Robbins, Chairman of the Board and Chief Executive Officer of the Company, pursuant to Securities Exchange Rule 13a-14(a).*
(31.2)	Certification of Michael D. Hagedorn, Senior Executive Vice President and Chief Financial Officer of the Company, pursuant to Securities Exchange Rule 13a-14(a).*
(32)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Ira Robbins, Chairman of the Board and Chief Executive Officer of the Company, and Michael D. Hagedorn, Senior Executive Vice President and Chief Financial Officer of the Company.**
(101)	Interactive Data File (XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) **
(104)	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*	Filed herewith.
**	Furnished herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VALLEY NATIONAL BANCORP
	(Registrant)
Date:	/s/ Ira Robbins
May 5, 2023	Ira Robbins
	Chairman of the Board and
	Chief Executive Officer
	(Principal Executive Officer)
Date:	/s/ Michael D. Hagedorn
May 5, 2023	Michael D. Hagedorn
	Senior Executive Vice President and
	Chief Financial Officer
	(Principal Financial Officer)

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EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Ira Robbins, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Valley National Bancorp;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2023

/s/ Ira Robbins

Ira Robbins

Chairman of the Board and
Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Michael D. Hagedorn, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Valley National Bancorp;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 5, 2023

/s/ Michael D. Hagedorn

Michael D. Hagedorn

Senior Executive Vice President and
Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION OF CEO AND CFO PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Valley National Bancorp (the “Company”) for the period ended March 31, 2023 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ira Robbins, as Chief Executive Officer of the Company, and Michael D. Hagedorn, as Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. (section) 1350, as adopted pursuant to (section) 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Ira Robbins

Ira Robbins

Chairman of the Board and
Chief Executive Officer

May 5, 2023

/s/ Michael D. Hagedorn

Michael D. Hagedorn

Senior Executive Vice President and
Chief Financial Officer

May 5, 2023

XML

Cover - shares	3 Months Ended
	Mar. 31, 2023	May 03, 2023
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2023
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 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 Common Stock, Shares Outstanding		507,875,088
Amendment Flag	false
Document Fiscal Year Focus	2023
Document Period Period Focus	Q1
Entity Central Index Key	0000714310
Current Fiscal Year End Date	--12-31
Common Stock
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

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Cash and due from banks	$ 444,690	$ 444,325
Interest bearing deposits with banks	5,260,998	503,622
Investment securities:
Equity securities	50,152	48,731
Trading debt securities	6,855	13,438
Available for sale debt securities	1,259,236	1,261,397
Held to maturity debt securities (net of allowance for credit losses of $1,633 at March 31, 2023 and $1,646 at December 31, 2022)	3,845,579	3,827,338
Total investment securities	5,161,822	5,150,904
Loans held for sale, at fair value	17,218	18,118
Loans	48,659,966	46,917,200
Less: Allowance for loan losses	(436,898)	(458,655)
Net loans	48,223,068	46,458,545
Premises and equipment, net	365,313	358,556
Lease right of use assets	302,740	306,352
Bank owned life insurance	717,339	717,177
Accrued interest receivable	223,608	196,606
Goodwill	1,868,936	1,868,936
Other intangible assets, net	187,171	197,456
Other assets	1,536,670	1,242,152
Total Assets	64,309,573	57,462,749
Deposits:
Non-interest bearing	13,576,116	14,463,645
Interest bearing:
Savings, NOW and money market	22,903,424	23,616,812
Time	11,111,376	9,556,457
Total deposits	47,590,916	47,636,914
Total short-term borrowings	6,413,056	138,729
Long-term borrowings	2,197,656	1,543,058
Junior subordinated debentures issued to capital trusts	56,847	56,760
Lease liabilities	355,020	358,884
Accrued expenses and other liabilities	1,184,497	1,327,602
Total Liabilities	57,797,992	51,061,947
Shareholders’ Equity
Common stock (no par value, authorized 650,000,000 shares; issued 507,896,910 shares at March 31, 2023 and December 31, 2022)	178,186	178,185
Surplus	4,967,662	4,980,231
Retained earnings	1,300,980	1,218,445
Accumulated other comprehensive loss	(143,647)	(164,002)
Treasury stock, at cost (134,552 common shares at March 31, 2023 and 1,522,432 common shares at December 31, 2022)	(1,291)	(21,748)
Total Shareholders’ Equity	6,511,581	6,400,802
Total Liabilities and Shareholders’ Equity	64,309,573	57,462,749
Series A
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:	111,590	111,590
Series B
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:	$ 98,101	$ 98,101

XML

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Allowance for Credit Losses	$ 1,633	$ 1,646
Preferred stock, par value (usd per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	650,000,000	650,000,000
Common stock, shares issued (in shares)	507,896,910	507,896,910
Treasury stock, shares (in shares)	134,552	1,522,432
Series A
Preferred stock, shares issued (in shares)	4,600,000	4,600,000
Series B
Preferred stock, shares issued (in shares)	4,000,000	4,000,000

XML

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Interest Income
Interest and fees on loans	$ 655,226	$ 317,365
Interest and dividends on investment securities:
Taxable	32,289	18,439
Tax-exempt	5,325	2,517
Dividends	5,185	1,676
Interest on federal funds sold and other short-term investments	22,205	461
Total interest income	720,230	340,458
Interest on deposits:
Savings, NOW and money market	150,766	9,627
Time	80,298	2,831
Interest on short-term borrowings	33,948	806
Interest on long-term borrowings and junior subordinated debentures	19,198	9,525
Total interest expense	284,210	22,789
Net Interest Income	436,020	317,669
Provision for credit losses for available for sale and held to maturity securities	4,987	57
Provision for credit losses for loans	9,450	3,500
Net Interest Income After Provision for Credit Losses	421,583	314,112
Non-Interest Income
Insurance commissions	2,420	1,859
Capital markets	10,892	14,360
Gains (losses) on securities transactions, net	378	(1,072)
Fees from loan servicing	2,671	2,781
Gains on sales of loans, net	489	986
Bank owned life insurance	2,584	2,046
Other	14,802	6,967
Total non-interest income	54,299	39,270
Non-Interest Expense
Salary and employee benefits expense	144,986	107,733
Net occupancy expense	23,256	21,991
Technology, furniture and equipment expense	36,508	26,015
FDIC insurance assessment	9,155	4,158
Amortization of other intangible assets	10,519	4,437
Professional and legal fees	16,814	14,749
Amortization of tax credit investments	4,253	2,896
Other	26,675	15,361
Total non-interest expense	272,166	197,340
Income Before Income Taxes	203,716	156,042
Income tax expense	57,165	39,314
Net Income	146,551	116,728
Dividends on preferred stock	3,874	3,172
Net Income Available to Common Shareholders	$ 142,677	$ 113,556
Earnings Per Common Share:
Basic (usd per share)	$ 0.28	$ 0.27
Diluted (usd per share)	$ 0.28	$ 0.27
Wealth management and trust fees
Non-Interest Income
Revenue from contracts with customer	$ 9,587	$ 5,131
Service charges on deposit accounts
Non-Interest Income
Revenue from contracts with customer	$ 10,476	$ 6,212

XML

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Statement of Comprehensive Income [Abstract]
Net income	$ 146,551	$ 116,728
Unrealized gains and losses on available for sale securities
Net gains (losses) arising during the period	17,170	(38,892)
Less reclassification adjustment for net gains included in net income	0	(10)
Total	17,170	(38,902)
Unrealized gains and losses on derivatives (cash flow hedges)
Net gains on derivatives arising during the period	2,798	218
Less reclassification adjustment for net losses included in net income	379	386
Total	3,177	604
Defined benefit pension and postretirement benefit plans
Amortization of actuarial net loss	8	132
Other comprehensive income, net	20,355	(38,166)
Total comprehensive income	$ 166,906	$ 78,562

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Cumulative Effect, Period of Adoption, Adjustment	Cumulative Effect, Period of Adoption, Adjusted Balance	Preferred Series A	Preferred Series B	Common Stock	Preferred Stock	Preferred Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Common Stock	Common Stock Cumulative Effect, Period of Adoption, Adjusted Balance	Surplus	Surplus Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings	Retained Earnings Cumulative Effect, Period of Adoption, Adjustment	Retained Earnings Cumulative Effect, Period of Adoption, Adjusted Balance	Retained Earnings Preferred Series A	Retained Earnings Preferred Series B	Retained Earnings Common Stock	Accumulated Other Comprehensive Loss	Accumulated Other Comprehensive Loss Cumulative Effect, Period of Adoption, Adjusted Balance	Treasury Stock	Treasury Stock Cumulative Effect, Period of Adoption, Adjusted Balance
Beginning balance at Dec. 31, 2021	$ 5,084,066						$ 209,691		$ 148,482		$ 3,883,035		$ 883,645						$ (17,932)		$ (22,855)
Beginning balance (in shares) at Dec. 31, 2021									421,437
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	116,728												116,728
Other comprehensive income (loss), net of tax	(38,166)																		(38,166)
Cash dividends declared:
Cash dividends declared on preferred stock				$ (1,797)	$ (1,375)											$ (1,797)	$ (1,375)
Cash dividends declared on common stock						$ (46,803)												$ (46,803)
Effect of stock incentive plan, net (in shares)									972
Effect of stock incentive plan, net	(2,752)										(10,799)		(5,173)								13,220
Purchase of treasury stock (in shares)									(1,015)
Purchase of treasury stock	(13,517)																				(13,517)
Ending balance at Mar. 31, 2022	5,096,384						209,691		$ 148,482		3,872,236		945,225						(56,098)		(23,152)
Ending balance (in shares) at Mar. 31, 2022									421,394
Beginning balance at Dec. 31, 2022	6,400,802	$ 990	$ 6,401,792				209,691	$ 209,691	$ 178,185	$ 178,185	4,980,231	$ 4,980,231	1,218,445	$ 990	$ 1,219,435				(164,002)	$ (164,002)	(21,748)	$ (21,748)
Beginning balance (in shares) at Dec. 31, 2022									506,374	506,374
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	146,551												146,551
Other comprehensive income (loss), net of tax	20,355																		20,355
Cash dividends declared:
Cash dividends declared on preferred stock				$ (1,797)	$ (2,077)											$ (1,797)	$ (2,077)
Cash dividends declared on common stock						$ (56,488)												$ (56,488)
Effect of stock incentive plan, net (in shares)									1,061
Effect of stock incentive plan, net	(505)								$ 1		(12,569)		(3,994)								16,057
Common stock issued (in shares)									327
Common stock issued	3,750												(650)								4,400
Ending balance at Mar. 31, 2023	$ 6,511,581						$ 209,691		$ 178,186		$ 4,967,662		$ 1,300,980						$ (143,647)		$ (1,291)
Ending balance (in shares) at Mar. 31, 2023									507,762
Cash dividends declared:
Accounting Standards Update [Extensible Enumeration]	Accounting Standards Update 2022-02 [Member]

XML

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Preferred Series A
Preferred stock, cash dividends declared (usd per share)	$ 0.39	$ 0.39
Preferred Series B
Preferred stock, cash dividends declared (usd per share)	0.52	0.34
Common Stock
Common stock, cash dividends declared (usd per share)	$ 0.11	$ 0.11

XML

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Cash flows from operating activities:
Net income	$ 146,551	$ 116,728
Adjustments to reconcile net income to net cash (used in) provided by operating activities:
Depreciation and amortization	11,515	7,486
Stock-based compensation	8,093	7,263
Provision for credit losses	14,437	3,557
Net amortization of premiums and accretion of discounts on securities and borrowings	(397)	7,487
Amortization of other intangible assets	10,519	4,437
Losses on available for sale and held to maturity debt securities, net	24	9
Proceeds from sales of loans held for sale	27,743	204,628
Gains on sales of loans, net	(489)	(986)
Originations of loans held for sale	(26,588)	(144,485)
(Gains) losses on sales of assets, net	(125)	64
Net change in:
Fair value of borrowings hedged by derivative transactions	4,219	(14,696)
Trading debt securities	6,583	26,391
Lease right of use assets	3,600	766
Cash surrender value of bank owned life insurance	(2,584)	(2,046)
Accrued interest receivable	(27,002)	(5,785)
Other assets	(298,076)	20,156
Accrued expenses and other liabilities	(147,705)	265,029
Net cash (used in) provided by operating activities	(269,682)	496,003
Cash flows from investing activities:
Net loan originations and purchases	(1,774,024)	(1,210,754)
Equity securities:
Purchases	(1,594)	(662)
Sales	409	848
Held to maturity debt securities:
Purchases	(79,961)	(545,462)
Maturities, calls and principal repayments	61,213	136,024
Available for sale debt securities:
Purchases	0	(15,000)
Maturities, calls and principal repayments	22,264	73,008
Death benefit proceeds from bank owned life insurance	2,773	2,369
Proceeds from sales of real estate property and equipment	125	5,692
Purchases of real estate property and equipment	(18,263)	(22,749)
Cash distribution from tax credit investments	2,500	0
Cash and cash equivalent acquired in acquisitions, net	0	(8,607)
Net cash used in investing activities	(1,784,558)	(1,585,293)
Cash flows from financing activities:
Net change in deposits	(45,998)	14,924
Net change in short-term borrowings	6,274,327	(171,545)
Proceeds from issuance of long-term borrowings, net	1,000,000	0
Repayments of long-term borrowings	(350,000)	0
Cash dividends paid to preferred shareholders	(3,874)	(3,172)
Cash dividends paid to common shareholders	(57,612)	(46,205)
Purchase of common shares to treasury	(8,599)	(23,627)
Common stock issued, net	3,750	95
Other, net	(13)	(180)
Net cash provided by (used in) financing activities	6,811,981	(229,710)
Net change in cash and cash equivalents	4,757,741	(1,319,000)
Cash and cash equivalents at beginning of year	947,947	2,049,920
Cash and cash equivalents at end of period	5,705,688	730,920
Supplemental disclosures of cash flow information:
Interest on deposits and borrowings	244,246	19,682
Federal and state income taxes	8,782	6,842
Supplemental schedule of non-cash investing activities:
Transfer of loans to other real estate owned	903	0
Lease right of use assets obtained in exchange for operating lease liabilities	7,461	6,836
Non-cash net assets acquired	$ 0	$ 8,607

XML

Basis of Presentation

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey Corporation (Valley) include the accounts of Valley National Bank (the Bank) and all other entities in which Valley has a controlling financial interest. 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. Certain prior period amounts have been reclassified to conform to the current presentation.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at March 31, 2023 and for all periods presented have been made. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022.

Significant Estimates. In preparing the unaudited 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 require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, 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. Actual results may differ from those estimates. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date

XML

Business Combinations

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Business Combinations

Acquisitions

Bank Leumi Le-Israel Corporation. On April 1, 2022, Valley completed its acquisition of Bank Leumi Le-Israel Corporation, the U.S. subsidiary of Bank Leumi Le-Israel B.M., and parent company of Bank Leumi USA, collectively referred to as "Bank Leumi USA". Bank Leumi USA maintained its headquarters in New York City with commercial banking offices in Chicago, Los Angeles, Palo Alto, and Aventura, Florida. The common shareholders of Bank Leumi USA received 3.8025 shares of Valley common stock and $5.08 in cash for each Bank Leumi USA common share that they owned. As a result, Valley issued approximately 85 million shares of common stock and paid $113.4 million in cash in the transaction. Based on Valley’s closing stock price on March 31, 2022, the transaction was valued at $1.2 billion, inclusive of the value of options. As a result of the acquisition, Bank Leumi Le-Israel B.M. owned approximately 14 percent of Valley's common stock as of April 1, 2022.

Merger expenses, primarily consisting of salary and employee benefit expense, totaled $4.1 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively.

The following table sets forth assets acquired and liabilities assumed in the Bank Leumi USA acquisition, at their estimated fair values as of the closing date of the transaction:

	April 1, 2022
	(in thousands)
Assets acquired:
Cash and cash equivalents	$	443,588
Equity securities	6,239
Available for sale debt securities	505,928
Held to maturity debt securities	806,627
Loans	5,914,389
Allowance for loan losses	(70,319)
Loans, net	5,844,070
Premises and equipment	38,827
Lease right of use assets	49,273
Bank owned life insurance	126,861
Accrued interest receivable	25,717
Goodwill	400,582
Other intangible assets	153,380
Other assets	160,921
Total assets acquired	$	8,562,013
Liabilities assumed:
Deposits:
Non-interest bearing	$	4,511,537
Interest bearing:
Savings, NOW and money market	2,224,834
Time	293,626
Total deposits	7,029,997
Short-term borrowings	103,794
Lease liabilities	79,683
Accrued expense and other liabilities	117,269
Total liabilities assumed	$	7,330,743
Common stock issued in acquisition	1,117,829
Cash paid in acquisition	113,441

There were no changes to the fair value estimates during the three months ended March 31, 2023.

Dudley Ventures. On October 8, 2021, Valley acquired certain subsidiaries of Dudley Ventures, an advisory firm specializing in the investment and management of tax credits. The transaction price included $11.3 million of cash at the closing date and fixed future stock consideration totaling $3.75 million, which resulted in the issuance of 327,083 shares of Valley common stock to the former principals of Dudley Ventures in February 2023.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
	(in thousands, except for share and per share data)
Net income available to common shareholders	$	142,677	$	113,556
Basic weighted average number of common shares outstanding	507,111,295		421,573,843
Plus: Common stock equivalents	2,545,135		1,932,707
Diluted weighted average number of common shares outstanding	509,656,430		423,506,550
Earnings per common share:
Basic	$	0.28	$	0.27
Diluted	0.28		0.27

Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of restricted stock units and common stock options to purchase Valley’s common shares. Common stock options with exercise prices that exceed the average market price per share of Valley’s common stock during the periods presented may have an anti-dilutive effect on the diluted earnings per common share calculation and therefore are excluded from the diluted earnings per share calculation along with restricted stock units. Potential anti-dilutive weighted common shares totaled approximately 1.6 million and 113 thousand for the three months ended March 31, 2023 and 2022, respectively.

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Accumulated Other Comprehensive Loss

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 three months ended March 31, 2023:

	Components of Accumulated Other Comprehensive Loss						Total Accumulated Other Comprehensive Loss
	Unrealized Gains and Losses on Available for Sale (AFS) Securities		Unrealized Gains and Losses on Derivatives		Defined Benefit Pension and Postretirement Benefit Plans
	(in thousands)
Balance at December 31, 2022	$	(127,818)	$	2,233	$	(38,417)	$	(164,002)
Other comprehensive gain before reclassification	17,170		2,798		—		19,968
Amounts reclassified from other comprehensive income	—		379		8		387
Other comprehensive income, net	17,170		3,177		8		20,355
Balance at March 31, 2023	$	(110,648)	$	5,410	$	(38,409)	$	(143,647)

The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2023 and 2022:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended March 31,
Components of Accumulated Other Comprehensive Loss	2023		2022		Income Statement Line Item
	(in thousands)
Unrealized gains on AFS securities before tax	$	—	$	14	Gains (losses) on securities transactions, net
Tax effect	—		(4)
Total net of tax	—		10
Unrealized losses on derivatives (cash flow hedges) before tax	(531)		(542)		Interest expense
Tax effect	152		156
Total net of tax	(379)		(386)
Defined benefit pension and postretirement benefit plans:
Amortization of actuarial net loss	(11)		(183)		*
Tax effect	3		51
Total net of tax	(8)		(132)
Total reclassifications, net of tax	$	(387)	$	(508)

* Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.

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New Authoritative Accounting Guidance

3 Months Ended

Mar. 31, 2023

Accounting Changes and Error Corrections [Abstract]

New Authoritative Accounting Guidance

New Authoritative Accounting Guidance

New Accounting Guidance Adopted in 2023

Accounting Standards Update (ASU) No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging –Portfolio Layer Method” expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges. This method allows entities to designate multiple hedging relationships with a single closed portfolio, and therefore a larger portion of the interest rate risk associated with such a portfolio is eligible to be hedged. ASU No. 2022-01 also clarifies that no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge. Valley adopted ASU No. 2022-01 on January 1, 2023 and the guidance did not have a significant impact on Valley's consolidated financial statements.

ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the troubled debt restructuring (TDR) accounting model for creditors, such as Valley, that have adopted Topic 326, “Financial Instruments – Credit Losses.” ASU No. 2022-02 requires all loan modifications to be accounted for under the general loan modification guidance in Subtopic 310-20. On a prospective basis, entities are subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements are also required to prospectively disclose current-period gross write-off information by vintage. Entities can elect to adopt the guidance on TDRs using either a prospective or modified retrospective transition method. Valley adopted ASU No. 2022-02 on January 1, 2023 and elected to apply the modified retrospective transition method. The adoption of ASU No. 2022-02 resulted in a $1.4 million decrease in the allowance for loan losses, and a $990 thousand increase to retained earnings, net of taxes. See Note 8 for required disclosures.

New Accounting Guidance Issued in 2023

ASU No. 2023-02, Investments –“Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,” is intended to improve the accounting and

disclosures for investments in certain tax credit structures. ASU No. 2023-02 allows the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met. ASU No. 2023-02 will be effective on January 1, 2024 and it can be early adopted in any interim period. The new guidance can also be applied either on a modified retrospective or a retrospective basis, with any adjustments resulting from adoption recognized in earnings on the date of adoption. Valley is currently evaluating the impact of ASU No. 2023-02, but it is not expected to have a significant impact on Valley's consolidated financial statements.

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Fair Value Measurement of Assets and Liabilities

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

Fair Value Measurement of Assets and Liabilities

ASC Topic 820, “Fair Value Measurements” 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 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 March 31, 2023 and December 31, 2022. The assets presented under “non-recurring fair value measurements” in the tables 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). 

	March 31, 2023		Fair Value Measurements at Reporting Date Using:
			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	$	23,635	$	23,635	$	—	$	—
Equity securities at net asset value (NAV)	10,175		—		—		—
Trading debt securities	6,855		3,477		3,378		—
Available for sale debt securities:
U.S. Treasury securities	286,745		286,745		—		—
U.S. government agency securities	26,352		—		26,352		—
Obligations of states and political subdivisions	152,775		—		152,775		—
Residential mortgage-backed securities	619,776		—		619,776		—
Corporate and other debt securities	173,588		—		173,588		—
Total available for sale debt securities	1,259,236		286,745		972,491		—
Loans held for sale (1)	17,218		—		17,218		—
Other assets (2)	446,749		—		446,749		—
Total assets	$	1,763,868	$	313,857	$	1,439,836	$	—
Liabilities
Other liabilities (2)	$	494,552	$	—	$	494,552	$	—
Total liabilities	$	494,552	$	—	$	494,552	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	81,267	$	—	$	—	$	81,267
Foreclosed assets	1,752		—		—		1,752
Total	$	83,019	$	—	$	—	$	83,019

			Fair Value Measurements at Reporting Date Using:
	December 31, 2022		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	$	23,494	$	23,494	$	—	$	—
Equity securities at net asset value (NAV)	10,099		—		—		—
Trading debt securities	13,438		3,282		10,156		—
Available for sale debt securities:
U.S. Treasury securities	279,498		279,498		—		—
U.S. government agency securities	26,964		—		26,964		—
Obligations of states and political subdivisions	146,811		—		146,811		—
Residential mortgage-backed securities	629,818		—		629,818		—
Corporate and other debt securities	178,306		—		178,306		—
Total available for sale debt securities	1,261,397		279,498		981,899		—
Loans held for sale (1)	18,118		—		18,118		—
Other assets (2)	467,127		—		467,127		—
Total assets	$	1,793,673	$	306,274	$	1,477,300	$	—
Liabilities
Other liabilities (2)	$	607,237	$	—	$	607,237	$	—
Total liabilities	$	607,237	$	—	$	607,237	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	92,923	$	—	$	—	$	92,923
Foreclosed assets	1,937		—		—		1,937
Total	$	94,860	$	—	$	—	$	94,860

(1)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $17.1 million and $17.9 million at March 31, 2023 and December 31, 2022, respectively.

(2)Derivative financial instruments are included in this category.

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 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. The fair value of equity securities consists of a publicly traded mutual fund, a Community Reinvestment Act (CRA) investment fund and an investment related to the development of new financial technologies that are carried at quoted prices in active markets.

Equity securities at NAV. Valley also has privately held CRA funds at fair value measured at NAV using the most recently available financial information from the investee. Investments measured at NAV (or its equivalent) as a practical expedient are excluded from fair value hierarchy levels in the tables above.

Trading debt securities. The fair value of trading debt securities, consisting of U.S. Treasury securities and municipal bonds are reported at fair value utilizing Level 1 and Level 2 inputs, respectively. The prices for municipal bonds investments are derived from market quotations and matrix pricing obtained through an independent pricing service. 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.

Available for sale debt securities. U.S. Treasury 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 debt securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume.

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 March 31, 2023 and December 31, 2022 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 values of Valley’s derivatives are determined using third-party prices that are based on discounted cash flow analysis using observed market inputs, such as the LIBOR, Overnight Index Swap and Secured Overnight Financing Rate (SOFR) curves for all cleared derivatives. 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 March 31, 2023 and December 31, 2022), 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 March 31, 2023 and December 31, 2022.

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 collateral dependent loans reported at the fair value of the underlying collateral and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below.

Collateral dependent loans. Collateral dependent loans are loans when foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and substantially all of the repayment is expected from the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral. Collateral values are estimated using Level 3 inputs, consisting of individual third-party appraisals that may be adjusted based on certain discounting criteria. Certain real estate appraisals may be discounted based on specific market data by location and property type. At March 31, 2023, collateral dependent loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses based on the fair value of the underlying

collateral. At March 31, 2023, collateral dependent loans with a total amortized cost of $140.1 million, including our taxi medallion loan portfolio, were reduced by specific allowance for loan losses allocations totaling $58.8 million to a reported total net carrying amount of $81.3 million.

Foreclosed assets. Certain foreclosed assets (consisting of other real estate owned and other repossessed assets included in other assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value using Level 3 inputs, consisting of a third-party appraisal less estimated cost to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, an asset is re-measured and reported at fair value through a write-down recorded in non-interest expense. There were no adjustments to the appraisals of foreclosed assets at March 31, 2023 and December 31, 2022.

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 operations, 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 March 31, 2023 and December 31, 2022 were as follows: 

	Fair Value Hierarchy	March 31, 2023				December 31, 2022
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	444,690	$	444,690	$	444,325	$	444,325
Interest bearing deposits with banks	Level 1	5,260,998		5,260,998		503,622		503,622
Equity securities (1)	Level 3	16,342		16,342		15,138		15,138
Held to maturity debt securities:
U.S. Treasury securities	Level 1	66,747		66,182		66,911		65,889
U.S. government agency securities	Level 2	300,614		255,640		260,392		212,712
Obligations of states and political subdivisions	Level 2	473,597		452,919		480,298		453,195
Residential mortgage-backed securities	Level 2	2,893,505		2,525,568		2,909,106		2,495,797
Trust preferred securities	Level 2	37,048		29,992		37,043		31,106
Corporate and other debt securities	Level 2	75,701		70,183		75,234		70,771
Total held to maturity debt securities (2)		3,847,212		3,400,484		3,828,984		3,329,470
Net loans	Level 3	48,223,068		47,389,743		46,458,545		44,910,049
Accrued interest receivable	Level 1	223,608		223,608		196,606		196,606
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	547,686		547,686		238,056		238,056
Financial liabilities
Deposits without stated maturities	Level 1	36,479,540		36,479,540		38,080,457		38,080,457
Deposits with stated maturities	Level 2	11,111,376		11,040,582		9,556,457		9,443,253
Short-term borrowings	Level 1	6,413,056		6,392,459		138,729		138,729
Long-term borrowings	Level 2	2,197,656		2,110,305		1,543,058		1,395,991
Junior subordinated debentures issued to capital trusts	Level 2	56,847		55,042		56,760		50,923
Accrued interest payable (4)	Level 1	85,581		85,581		45,617		45,617

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.

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Investment Securities

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Equity Securities

Equity securities totaled $50.2 million and $48.7 million at March 31, 2023 and December 31, 2022, respectively. See Note 6 for further details on equity securities.

Trading Debt Securities

The fair value of trading debt securities totaled $6.9 million and $13.4 million at March 31, 2023 and December 31, 2022, respectively. Net trading gains and losses were included in net gains and losses on securities transactions within non-interest income. We recorded net trading gains of $402 thousand and net trading losses of $1.1 million for the three months ended March 31, 2023 and 2022, respectively.

Available for Sale Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2023 and December 31, 2022 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	309,524	$	—	$	(22,779)	$	286,745
U.S. government agency securities	28,394		46		(2,088)		26,352
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,649		—		(652)		9,997
Municipal bonds	171,219		—		(28,441)		142,778
Total obligations of states and political subdivisions	181,868		—		(29,093)		152,775
Residential mortgage-backed securities	699,214		60		(79,498)		619,776
Corporate and other debt securities	193,007		—		(19,419)		173,588
Total	$	1,412,007	$	106	$	(152,877)	$	1,259,236
December 31, 2022
U.S. Treasury securities	$	308,137	$	—	$	(28,639)	$	279,498
U.S. government agency securities	29,494		47		(2,577)		26,964
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,899		—		(493)		10,406
Municipal bonds	171,586		—		(35,181)		136,405
Total obligations of states and political subdivisions	182,485		—		(35,674)		146,811
Residential mortgage-backed securities	719,868		64		(90,114)		629,818
Corporate and other debt securities	197,927		—		(19,621)		178,306
Total	$	1,437,911	$	111	$	(176,625)	$	1,261,397

The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2023 and December 31, 2022 were as follows: 

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	286,745	$	(22,779)	$	—	$	—	$	286,745	$	(22,779)
U.S. government agency securities	12,003		(1,238)		11,371		(850)		23,374		(2,088)
Obligations of states and political subdivisions:
Obligations of states and state agencies	2,231		(17)		7,766		(635)		9,997		(652)
Municipal bonds	114,299		(20,463)		28,229		(7,978)		142,528		(28,441)
Total obligations of states and political subdivisions	116,530		(20,480)		35,995		(8,613)		152,525		(29,093)
Residential mortgage-backed securities	34,170		(1,506)		582,739		(77,992)		616,909		(79,498)
Corporate and other debt securities	108,625		(9,446)		64,964		(9,973)		173,589		(19,419)
Total	$	558,073	$	(55,449)	$	695,069	$	(97,428)	$	1,253,142	$	(152,877)
December 31, 2022
U.S. Treasury securities	$	279,498	$	(28,639)	$	—	$	—	$	279,498	$	(28,639)
U.S. government agency securities	22,831		(2,538)		1,116		(39)		23,947		(2,577)
Obligations of states and political subdivisions:
Obligations of states and state agencies	2,943		(54)		7,462		(439)		10,405		(493)
Municipal bonds	112,029		(26,044)		24,127		(9,137)		136,156		(35,181)
Total obligations of states and political subdivisions	114,972		(26,098)		31,589		(9,576)		146,561		(35,674)
Residential mortgage-backed securities	311,836		(27,152)		314,834		(62,962)		626,670		(90,114)
Corporate and other debt securities	144,924		(12,581)		33,382		(7,040)		178,306		(19,621)
Total	$	874,061	$	(97,008)	$	380,921	$	(79,617)	$	1,254,982	$	(176,625)

Within the available for sale debt securities portfolio, the total number of security positions in an unrealized loss position was 715 and 730 at March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023, the fair value of available for sale debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law was $870.4 million.

The contractual maturities of available for sale debt securities at March 31, 2023 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.

	March 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	3,852	$	3,834
Due after one year through five years	282,224		270,503
Due after five years through ten years	173,459		154,742
Due after ten years	253,258		210,381
Residential mortgage-backed securities	699,214		619,776
Total	$	1,412,007	$	1,259,236

Actual maturities of available for sale 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 8.91 years at March 31, 2023.

Impairment Analysis of Available For Sale Debt Securities

Valley's available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges by Valley as a result of the changes in market interest rates, unpredictable nature of the U.S. economy and their potential negative effect on the future performance of the security issuers.

Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Based on a comparison of the present value of expected cash flows to the amortized cost, Valley recognized a credit related impairment of one corporate bond issued by Signature Bank resulting in a provision for credit losses and full charge-off of the bond totaling $5.0 million during the three months ended March 31, 2023. Valley also evaluated available for sale debt securities that are in an unrealized loss position as of March 31, 2023 included in the table above and has determined that the declines in fair value are mainly attributable to interest rates, credit spreads, market volatility and liquidity conditions, not credit quality or other factors. There was no impairment recognized during the three months ended March 31, 2022.

Accrued interest on investments, which is excluded from the amortized cost of available for sale debt securities, totaled $5.1 million and $5.6 million at March 31, 2023 and December 31, 2022, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

The following table details the activity in the allowance for credit losses for the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
	(in thousands)
Beginning balance	$	—
Provision for credit losses	5,000
Charge-offs	(5,000)
Ending balance	$	—

Valley does not intend to sell any of its available for sale debt securities in an unrealized loss position prior to recovery of their amortized cost basis, and it is more likely than not that Valley will not be required to sell any of its securities prior to recovery of their amortized cost basis. None of the available for sale debt securities were past due

as of March 31, 2023 and there was no allowance for credit losses for available for sale debt securities at March 31, 2023, December 31, 2022 and March 31, 2022.

Held to Maturity Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2023 and December 31, 2022 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Value
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,747	$	—	$	(565)	$	66,182	$	—	$	66,747
U.S. government agency securities	300,614		25		(44,999)		255,640		—		300,614
Obligations of states and political subdivisions:
Obligations of states and state agencies	96,693		341		(4,149)		92,885		257		96,436
Municipal bonds	376,904		112		(16,982)		360,034		86		376,818
Total obligations of states and political subdivisions	473,597		453		(21,131)		452,919		343		473,254
Residential mortgage-backed securities	2,893,505		2,752		(370,689)		2,525,568		—		2,893,505
Trust preferred securities	37,048		1		(7,057)		29,992		775		36,273
Corporate and other debt securities	75,701		—		(5,518)		70,183		515		75,186
Total	$	3,847,212	$	3,231	$	(449,959)	$	3,400,484	$	1,633	$	3,845,579
December 31, 2022
U.S. Treasury securities	$	66,911	$	—	$	(1,022)	$	65,889	$	—	$	66,911
U.S. government agency securities	260,392		—		(47,680)		212,712		—		260,392
Obligations of states and political subdivisions:
Obligations of states and state agencies	99,238		305		(3,869)		95,674		252		98,986
Municipal bonds	381,060		76		(23,615)		357,521		41		381,019
Total obligations of states and political subdivisions	480,298		381		(27,484)		453,195		293		480,005
Residential mortgage-backed securities	2,909,106		1,723		(415,032)		2,495,797		—		2,909,106
Trust preferred securities	37,043		1		(5,938)		31,106		888		36,155
Corporate and other debt securities	75,234		—		(4,463)		70,771		465		74,769
Total	$	3,828,984	$	2,105	$	(501,619)	$	3,329,470	$	1,646	$	3,827,338

The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2023 and December 31, 2022 were as follows: 

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,182	$	(565)	$	—	$	—	$	66,182	$	(565)
U.S. government agency securities	211,526		(44,773)		2,925		(226)		214,451		(44,999)
Obligations of states and political subdivisions:
Obligations of states and state agencies	20,457		(789)		39,627		(3,360)		60,084		(4,149)
Municipal bonds	226,278		(13,671)		26,411		(3,311)		252,689		(16,982)
Total obligations of states and political subdivisions	246,735		(14,460)		66,038		(6,671)		312,773		(21,131)
Residential mortgage-backed securities	381,802		(33,941)		1,944,360		(336,748)		2,326,162		(370,689)
Trust preferred securities	—		—		28,990		(7,057)		28,990		(7,057)
Corporate and other debt securities	37,579		(2,122)		24,604		(3,396)		62,183		(5,518)
Total	$	943,824	$	(95,861)	$	2,066,917	$	(354,098)	$	3,010,741	$	(449,959)
December 31, 2022
U.S. Treasury securities	$	65,889	$	(1,022)	$	—	$	—	$	65,889	$	(1,022)
U.S. government agency securities	209,863		(47,508)		1,673		(172)		211,536		(47,680)
Obligations of states and political subdivisions:
Obligations of states and state agencies	62,443		(2,020)		18,231		(1,849)		80,674		(3,869)
Municipal bonds	251,970		(20,457)		15,534		(3,158)		267,504		(23,615)
Total obligations of states and political subdivisions	314,413		(22,477)		33,765		(5,007)		348,178		(27,484)
Residential mortgage-backed securities	962,690		(109,532)		1,413,590		(305,500)		2,376,280		(415,032)
Trust preferred securities	—		—		30,105		(5,938)		30,105		(5,938)
Corporate and other debt securities	57,245		(2,989)		13,525		(1,474)		70,770		(4,463)
Total	$	1,610,100	$	(183,528)	$	1,492,658	$	(318,091)	$	3,102,758	$	(501,619)

Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 766 and 802 at March 31, 2023 and December 31, 2022, respectively.

As of March 31, 2023, 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 $2.5 billion.

The contractual maturities of investments in debt securities held to maturity at March 31, 2023 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.

	March 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	63,872	$	63,355
Due after one year through five years	169,205		165,906
Due after five years through ten years	96,385		92,034
Due after ten years	624,245		553,621
Residential mortgage-backed securities	2,893,505		2,525,568
Total	$	3,847,212	$	3,400,484

Actual maturities of held to maturity 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 11.67 years at March 31, 2023.

Credit Quality Indicators

Valley monitors the credit quality of the held to maturity debt securities through the use of the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2023 and December 31, 2022.

	AAA/AA/A Rated		BBB rated		Non-investment grade rated		Non-rated		Total
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,747	$	—	$	—	$	—	$	66,747
U.S. government agency securities	300,614		—		—		—		300,614
Obligations of states and political subdivisions:
Obligations of states and state agencies	73,278		—		5,437		17,978		96,693
Municipal bonds	328,202		—		—		48,702		376,904
Total obligations of states and political subdivisions	401,480		—		5,437		66,680		473,597
Residential mortgage-backed securities	2,893,505		—		—		—		2,893,505
Trust preferred securities	—		—		—		37,048		37,048
Corporate and other debt securities	—		6,000		—		69,701		75,701
Total	$	3,662,346	$	6,000	$	5,437	$	173,429	$	3,847,212
December 31, 2022
U.S. Treasury securities	$	66,911	$	—	$	—	$	—	$	66,911
U.S. government agency securities	260,392		—		—		—		260,392
Obligations of states and political subdivisions:
Obligations of states and state agencies	74,943		—		5,497		18,798		99,238
Municipal bonds	333,488		—		—		47,572		381,060
Total obligations of states and political subdivisions	408,431		—		5,497		66,370		480,298
Residential mortgage-backed securities	2,909,106		—		—		—		2,909,106
Trust preferred securities	—		—		—		37,043		37,043
Corporate and other debt securities	2,000		6,000		—		67,234		75,234
Total	$	3,646,840	$	6,000	$	5,497	$	170,647	$	3,828,984

Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At March 31, 2023, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the "non-rated" category included tax exempt mortgage securities (TEMS) secured by Ginnie Mae securities. Trust preferred securities consist of non-rated single-issuer securities, issued by bank holding companies. Corporate and other debt securities in the non-rated category mostly consist of high quality foreign issued bonds.

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero-loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and TEMS collateralized municipal bonds.

Accrued interest on investments, which is excluded from the amortized cost of held to maturity debt securities, totaled $12.7 million and $13.5 million at March 31, 2023 and December 31, 2022, respectively, and is presented

within total accrued interest receivable on the consolidated statements of financial condition. Held to maturity debt securities are carried net of an allowance for credit losses.

The following table details the activity in the allowance for credit losses for the three months ended March 31, 2023 and 2022: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Beginning balance	$	1,646	$	1,165
(Credit) provision for credit losses	(13)		57
Ending balance	$	1,633	$	1,222

There were no sales of available for sale and held to maturity debt securities debt securities during the three months ended March 31, 2023 and 2022, respectively.

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Loans and Allowance for Credit Losses for Loans

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Loans and Allowance for Credit Losses for Loans

Loans and Allowance for Credit Losses for Loans

The detail of the loan portfolio as of March 31, 2023 and December 31, 2022 was as follows: 

	March 31, 2023		December 31, 2022
	(in thousands)
Loans:
Commercial and industrial	$	9,043,946	$	8,804,830
Commercial real estate:
Commercial real estate	27,051,111		25,732,033
Construction	3,725,967		3,700,835
Total commercial real estate loans	30,777,078		29,432,868
Residential mortgage	5,486,280		5,364,550
Consumer:
Home equity	516,592		503,884
Automobile	1,717,141		1,746,225
Other consumer	1,118,929		1,064,843
Total consumer loans	3,352,662		3,314,952
Total loans	$	48,659,966	$	46,917,200

Total loans include net unearned discounts and deferred loan fees of $125.4 million and $120.5 million at March 31, 2023 and December 31, 2022, respectively.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $192.6 million and $175.9 million at March 31, 2023 and December 31, 2022, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

There were no sales of loans from the held for investment portfolio during the three months ended March 31, 2023 and 2022.

Credit Risk Management

For all of its loan types, 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. Additionally, Valley does not accept crypto assets as loan collateral for any of its loan portfolio classes. See Valley’s Annual Report on Form 10-K for the year ended December 31, 2022 for further details.

Credit Quality

The following table presents past due, current and non-accrual loans without an allowance for loan losses by loan portfolio class at March 31, 2023 and December 31, 2022:

	Past Due and Non-Accrual Loans
	30-59  Days  Past Due Loans		60-89  Days  Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
March 31, 2023
Commercial and industrial	$	20,716	$	24,118	$	8,927	$	78,606	$	132,367	$	8,911,579	$	9,043,946	$	6,675
Commercial real estate:
Commercial real estate	13,580		—		—		67,938		81,518		26,969,593		27,051,111		66,587
Construction	—		—		6,450		68,649		75,099		3,650,868		3,725,967		15,791
Total commercial real estate loans	13,580		—		6,450		136,587		156,617		30,620,461		30,777,078		82,378
Residential mortgage	12,599		2,133		1,668		23,483		39,883		5,446,397		5,486,280		18,694
Consumer loans:
Home equity	412		287		48		2,965		3,712		512,880		516,592		—
Automobile	4,598		502		282		262		5,644		1,711,497		1,717,141		—
Other consumer	2,835		730		417		91		4,073		1,114,856		1,118,929		—
Total consumer loans	7,845		1,519		747		3,318		13,429		3,339,233		3,352,662		—
Total	$	54,740	$	27,770	$	17,792	$	241,994	$	342,296	$	48,317,670	$	48,659,966	$	107,747

	Past Due and Non-Accrual Loans
	30-59 Days Past Due Loans		60-89  Days Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
December 31, 2022
Commercial and industrial	$	11,664	$	12,705	$	18,392	$	98,881	$	141,642	$	8,663,188	$	8,804,830	$	5,659
Commercial real estate:
Commercial real estate	6,638		3,167		2,292		68,316		80,413		25,651,620		25,732,033		66,066
Construction	—		—		3,990		74,230		78,220		3,622,615		3,700,835		16,120
Total commercial real estate loans	6,638		3,167		6,282		142,546		158,633		29,274,235		29,432,868		82,186
Residential mortgage	16,146		3,315		1,866		25,160		46,487		5,318,063		5,364,550		14,224
Consumer loans:
Home equity	955		254		—		2,810		4,019		499,865		503,884		117
Automobile	5,974		630		1		271		6,876		1,739,349		1,746,225		—
Other consumer	2,158		695		46		93		2,992		1,061,851		1,064,843		—
Total consumer loans	9,087		1,579		47		3,174		13,887		3,301,065		3,314,952		117
Total	$	43,535	$	20,766	$	26,587	$	269,761	$	360,649	$	46,556,551	$	46,917,200	$	102,186

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. Pass rated loans 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 internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at March 31, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2023:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	435,733	$	1,418,804	$	1,021,874	$	549,408	$	304,137	$	628,117	$	4,450,850	$	130	$	8,809,053
Special Mention	1,573		27,386		2,591		19,260		3,658		7,443		61,455		7		123,373
Substandard	10		517		2,832		2,617		1,203		6,904		25,847		—		39,930
Doubtful	—		777		1,552		—		2,683		63,707		2,871		—		71,590
Total commercial and industrial	$	437,316	$	1,447,484	$	1,028,849	$	571,285	$	311,681	$	706,171	$	4,541,023	$	137	$	9,043,946
Commercial real estate
Risk Rating:
Pass	$	1,607,961	$	6,740,087	$	5,201,027	$	3,287,689	$	2,520,271	$	6,316,475	$	490,136	$	3,407	$	26,167,053
Special Mention	26,512		55,889		46,317		63,647		71,474		251,353		6,720		—		521,912
Substandard	—		33,613		35,924		30,090		34,765		219,838		7,916		—		362,146
Total commercial real estate	$	1,634,473	$	6,829,589	$	5,283,268	$	3,381,426	$	2,626,510	$	6,787,666	$	504,772	$	3,407	$	27,051,111
Construction
Risk Rating:
Pass	$	120,282	$	928,489	$	415,212	$	70,371	$	15,502	$	36,863	$	2,079,911	$	—	$	3,666,630
Substandard	—		13		12,290		—		964		17,600		7,351		—		38,218
Doubtful	447		8,341		670		11,661		—		—		—		—		21,119
Total construction	$	120,729	$	936,843	$	428,172	$	82,032	$	16,466	$	54,463	$	2,087,262	$	—	$	3,725,967
Gross loan charge-offs	$	—	$	6,035	$	20,286	$	123	$	72	$	1,636	$	3,593	$	—	$	31,745

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	1,600,747	$	1,089,386	$	590,406	$	322,564	$	250,031	$	386,085	$	4,307,163	$	144	$	8,546,526
Special Mention	31,557		3,367		19,492		4,732		4,369		3,558		51,021		7		118,103
Substandard	288		1,734		4,121		1,412		4,256		4,879		31,698		—		48,388
Doubtful	886		20,844		—		2,692		—		64,158		3,233		—		91,813
Total commercial and industrial	$	1,633,478	$	1,115,331	$	614,019	$	331,400	$	258,656	$	458,680	$	4,393,115	$	151	$	8,804,830
Commercial real estate
Risk Rating:
Pass	$	6,815,115	$	5,168,127	$	3,246,885	$	2,672,223	$	1,536,327	$	5,027,128	$	452,461	$	3,504	$	24,921,770
Special Mention	93,286		48,007		60,169		45,447		62,111		125,414		8,188		—		442,622
Substandard	15,088		34,475		32,630		34,622		59,337		183,341		7,986		—		367,479
Doubtful	—		—		—		—		—		162		—		—		162
Total commercial real estate	$	6,923,489	$	5,250,609	$	3,339,684	$	2,752,292	$	1,657,775	$	5,336,045	$	468,635	$	3,504	$	25,732,033
Construction
Risk Rating:
Pass	$	942,380	$	512,046	$	61,131	$	22,845	$	8,676	$	20,599	$	2,040,866	$	—	$	3,608,543
Special Mention	—		—		—		—		—		—		14,268		—		14,268
Substandard	12,969		12,601		—		974		—		17,599		20,138		—		64,281
Doubtful	—		—		—		—		—		13,743		—		—		13,743
Total construction	$	955,349	$	524,647	$	61,131	$	23,819	$	8,676	$	51,941	$	2,075,272	$	—	$	3,700,835

For residential mortgages, automobile, home equity and other consumer loan portfolio classes, Valley also evaluates credit quality based on the aging status of the loan and by payment activity. The following table presents the amortized cost in those loan classes based on payment activity, by origination year as of March 31, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2023:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	222,494	$	1,317,372	$	1,521,543	$	572,064	$	478,014	$	1,300,107	$	66,947	$	—	$	5,478,541
90 days or more past due	—		1,473		1,754		—		499		4,013		—		—		7,739
Total residential mortgage	$	222,494	$	1,318,845	$	1,523,297	$	572,064	$	478,513	$	1,304,120	$	66,947	$	—	$	5,486,280
Consumer loans
Home equity
Performing	$	7,251	$	46,566	$	12,085	$	4,448	$	4,891	$	18,499	$	383,948	$	37,984	$	515,672
90 days or more past due	—		—		—		—		—		—		285		635		920
Total home equity	7,251		46,566		12,085		4,448		4,891		18,499		384,233		38,619		516,592
Automobile
Performing	141,743		687,328		480,634		181,994		144,130		80,995		—		—		1,716,824
90 days or more past due	—		1		51		19		105		141		—		—		317
Total automobile	141,743		687,329		480,685		182,013		144,235		81,136		—		—		1,717,141
Other consumer
Performing	4,898		23,313		9,056		8,020		7,374		2,615		1,063,356		—		1,118,632
90 days or more past due	—		28		—		2		—		38		229		—		297
Total other consumer	4,898		23,341		9,056		8,022		7,374		2,653		1,063,585		—		1,118,929
Total consumer	$	153,892	$	757,236	$	501,826	$	194,483	$	156,500	$	102,288	$	1,447,818	$	38,619	$	3,352,662
Gross loan charge-offs	$	—	$	146	$	109	$	4	$	170	$	388	$	11	$	—	$	828

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	1,302,279	$	1,502,622	$	571,390	$	500,197	$	338,062	$	1,073,995	$	66,706	$	—	$	5,355,251
90 days or more past due	—		197		217		1,835		2,876		4,174		—		—		9,299
Total residential mortgage	$	1,302,279	$	1,502,819	$	571,607	$	502,032	$	340,938	$	1,078,169	$	66,706	$	—	$	5,364,550
Consumer loans
Home equity
Performing	$	47,084	$	12,432	$	4,592	$	5,024	$	5,581	$	13,007	$	376,608	$	38,570	$	502,898
90 days or more past due	—		—		—		—		—		—		276		710		986
Total home equity	47,084		12,432		4,592		5,024		5,581		13,007		376,884		39,280		503,884
Automobile
Performing	724,557		525,017		204,578		166,103		80,012		45,415		—		—		1,745,682
90 days or more past due	38		116		36		180		101		72		—		—		543
Total automobile	724,595		525,133		204,614		166,283		80,113		45,487		—		—		1,746,225
Other consumer
Performing	24,140		10,144		8,206		7,435		7,406		15,736		991,737		—		1,064,804
90 days or more past due	—		—		—		—		—		38		1		—		39
Total other consumer	24,140		10,144		8,206		7,435		7,406		15,774		991,738		—		1,064,843
Total consumer	$	795,819	$	547,709	$	217,412	$	178,742	$	93,100	$	74,268	$	1,368,622	$	39,280	$	3,314,952

Loan modifications to borrowers experiencing financial difficulty. 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. Prior to 2023, a loan was classified as a troubled debt restructuring (TDR) if the borrower was experiencing financial difficulties and a concession has been made at the time of such modification.

Effective January 1, 2023, Valley adopted ASU No. 2022-02 which eliminated the accounting guidance for TDR loans while enhancing disclosure requirements for certain loan modifications by creditors when a borrower is experiencing financial difficulty. Valley adopted ASU No. 2022-02 using the modified retrospective transition method. At the date of adoption, Valley was no longer required to utilize a loan-level discounted cash flow approach for determining the allowance for certain modified loans previously classified as TDR loans. As a result, Valley elected to utilize its collective reserve methodology for pools of loans that share common risk characteristic for determining the reserves for the modified loans formerly classified as TDR loans. This change resulted in the recognition of a cumulative-effect adjustment which decreased the allowance for loan losses with an offsetting entry to retained earnings, net of deferred taxes, at January 1, 2023.

The following table shows the amortized cost basis of loans to borrowers experiencing financial difficulty at March 31, 2023 that were modified during the three months ended March 31, 2023, disaggregated by class of financing receivable and type of modification. Each of the types of modifications was less than one percent of their respective loan categories.

	Three Months Ended March 31,
	Term extension		Term extension and interest rate reduction		Total
	($ in thousands)
Commercial and industrial	$	1,281	$	523	$	1,804
Commercial real estate	46,328		—		46,328
Residential mortgage	213		—		213
Consumer	60		—		60
Total	$	47,882	$	523	$	48,405

The following table describes the types of modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023:

	Types of Modifications
Commercial and industrial	12 month term extensions; and 12 month term extensions combined with interest rate reductions from 2.11 percent to 1 percent
Commercial real estate	6 - 36 month term extensions
Residential mortgage	12 month term extensions
Consumer	60 month term extensions

Valley closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of modification efforts. All loans to borrowers experiencing financial difficulty that have been modified during the three months ended March 31, 2023 were current to their contractual payments as of March 31, 2023.

Valley did not extend any commitments to lend additional funds to borrowers experiencing financial difficulty whose loans had been modified during the three months ended March 31, 2023.

Troubled debt restructured loans. The following tables present the pre- and post-modification amortized cost of TDR loans by loan class during the three months ended March 31, 2022. Post-modification amounts are presented as of March 31, 2022 using the allowance methodology for TDRs prior to the adoption of ASU 2022-02.

	Three Months Ended March 31, 2022
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	11	$	9,684	$	9,662
Commercial real estate	2	5,260		5,251
Residential mortgage	1	121		117
Total	14	$	15,065	$	15,030

The total TDRs presented in the above tables had allocated allowance for loan losses of $7.8 million at March 31, 2022. There were no charge-offs related to TDRs for the three months ended March 31, 2022. Valley did not extend any commitments to lend additional funds to borrowers whose loans have been modified as TDRs during the three months ended March 31, 2022.

Performing TDRs (not reported as non-accrual loans) and non-performing TDRs totaled $56.5 million and $104.7 million as of March 31, 2022.

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 three months ended March 31, 2022 were as follows:

	Three Months Ended March 31, 2022
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	2	$	1,850
Construction	2	17,599
Total	4	$	19,449

Loans in process of foreclosure. Other real estate owned (OREO) totaled $1.2 million and $286 thousand at March 31, 2023 and December 31, 2022, respectively. There were no foreclosed residential real estate properties included in OREO at March 31, 2023 and December 31, 2022. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $1.5 million and $2.6 million at March 31, 2023 and December 31, 2022, respectively.

Collateral dependent loans. Loans are collateral-dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When Valley determines that foreclosure is probable, the collateral dependent loan balances are written down to the estimated current fair value (less estimated selling costs) 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.

The following table presents collateral dependent loans by class as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	74,481	$	94,433
Commercial real estate	144,892		130,199
Residential mortgage	18,694		33,865
Home equity	—		195
Total	$	238,067	$	258,692

* Commercial and industrial loans presented in the table above are primarily collateralized by taxi medallions.

Allowance for Credit Losses for Loans

The allowance for credit losses (ACL) for loans consists of the allowance for loan losses and the allowance for unfunded credit commitments. The ACL for loans decreased $22.3 million at March 31, 2023 as compared to December 31, 2022.

The following table summarizes the ACL for loans at March 31, 2023 and December 31, 2022: 

	March 31, 2023		December 31, 2022
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	436,898	$	458,655
Allowance for unfunded credit commitments	24,071		24,600
Total allowance for credit losses for loans	$	460,969	$	483,255

The following table summarizes the provision for credit losses for loans for the periods indicated:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	9,979	$	3,258
(Credit) provision for unfunded credit commitments	(529)		242
Total provision for credit losses for loans	$	9,450	$	3,500

The following table details the activity in the allowance for loan losses by loan portfolio segment for the three months ended March 31, 2023 and 2022: 

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended March 31, 2023
Allowance for loan losses:
Beginning balance	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Impact of the adoption of ASU No. 2022-02 *	(739)		(589)		(12)		(28)		(1,368)
Beginning balance, adjusted	$	139,202	$	258,819	$	39,008	$	20,258	$	457,287
Loans charged-off	(26,047)		(5,698)		—		(828)		(32,573)
Charged-off loans recovered	1,399		24		21		761		2,205
Net (charge-offs) recoveries	(24,648)		(5,674)		21		(67)		(30,368)
Provision (credit) for loan losses	13,438		(9,813)		2,679		3,675		9,979
Ending balance	$	127,992	$	243,332	$	41,708	$	23,866	$	436,898
Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans charged-off	(1,571)		(173)		(26)		(825)		(2,595)
Charged-off loans recovered	824		107		457		1,257		2,645
Net (charge-offs) recoveries	(747)		(66)		431		432		50
(Credit) provision for loan losses	(1,140)		2,525		2,638		(765)		3,258
Ending balance	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510

The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the allowance measurement methodology at March 31, 2023 and December 31, 2022.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
March 31, 2023
Allowance for loan losses:
Individually evaluated for credit losses	$	46,151	$	13,445	$	34	$	—	$	59,630
Collectively evaluated for credit losses	81,841		229,887		41,674		23,866		377,268
Total	$	127,992	$	243,332	$	41,708	$	23,866	$	436,898
Loans:
Individually evaluated for credit losses	$	74,625	$	144,892	$	12,028	$	6,929	$	238,474
Collectively evaluated for credit losses	8,969,321		30,632,186		5,474,252		3,345,733		48,421,492
Total	$	9,043,946	$	30,777,078	$	5,486,280	$	3,352,662	$	48,659,966
December 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	68,745	$	13,174	$	337	$	4,338	$	86,594
Collectively evaluated for credit losses	71,196		246,234		38,683		15,948		372,061
Total	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Loans:
Individually evaluated for credit losses	$	117,644	$	213,522	$	28,869	$	14,058	$	374,093
Collectively evaluated for credit losses	8,687,186		29,219,346		5,335,681		3,300,894		46,543,107
Total	$	8,804,830	$	29,432,868	$	5,364,550	$	3,314,952	$	46,917,200

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The carrying amounts of goodwill allocated to Valley's business segments, or reporting units thereof, for goodwill impairment analysis at both March 31, 2023 and December 31, 2022 were as follows:

Business Segment / Reporting Unit *
Wealth Management		Consumer Banking		Commercial Banking		Total
(in thousands)
$	49,767	$	284,873	$	1,534,296	$	1,868,936

*    Valley’s Wealth Management and Insurance Division is comprised of trust, asset management, brokerage, insurance and tax credit advisory services. This reporting unit is included in the Consumer Banking segment for financial reporting purposes.

During the three months ended March 31, 2023, there were no triggering events that would more likely than not

reduce the fair value of any reporting unit below its carrying amount. There was no impairment of goodwill recognized during the three months ended March 31, 2023 and 2022.

The following table summarizes other intangible assets as of March 31, 2023 and December 31, 2022: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2023
Loan servicing rights	$	120,177	$	(97,332)	$	22,845
Core deposits	215,620		(92,048)		123,572
Other	50,393		(9,639)		40,754
Total other intangible assets	$	386,190	$	(199,019)	$	187,171
December 31, 2022
Loan servicing rights	$	119,943	$	(96,136)	$	23,807
Core deposits	223,670		(92,486)		131,184
Other	51,299		(8,834)		42,465
Total other intangible assets	$	394,912	$	(197,456)	$	197,456

Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from 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. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value. There was no net impairment recognized during the three months ended March 31, 2023 and 2022.

Core deposits are amortized using an accelerated method over a period of 10.0 years. The line item labeled “Other” included in the table above primarily consists of customer lists, certain financial asset servicing contracts and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 13.4 years.

Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three months ended March 31, 2023 and 2022.

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2023 through 2027: 

Year	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2023	$	2,365	$	21,135	$	4,810
2024	2,813		24,897		5,951
2025	2,461		21,048		5,380
2026	2,143		17,223		4,805
2027	1,861		13,544		4,205

Valley recognized amortization expense on other intangible assets totaling approximately $10.5 million and $4.4 million for the three months ended March 31, 2023 and 2022, respectively

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Deposits

3 Months Ended

Mar. 31, 2023

Financial Services, Banking and Thrift [Abstract]

Deposits

Deposits

Included in time deposits are certificates of deposit over $250 thousand totaling $1.7 billion and $1.8 billion at March 31, 2023 and December 31, 2022, respectively. Interest expense on time deposits of $250 thousand or more totaled $2.8 million and $107 thousand for the three months ended March 31, 2023 and 2022, respectively.

The scheduled maturities of time deposits as of March 31, 2023 were as follows: 

Year	Amount
	(in thousands)
2023	6,859,391
2024	2,578,459
2025	61,015
2026	120,032
2027	45,077
Thereafter	1,447,402
Total time deposits	$	11,111,376

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Borrowed Funds

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed Funds

Short-Term Borrowings

Short-term borrowings at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
FHLB advances	$	6,300,000	$	24,035
Securities sold under agreements to repurchase	113,056		114,694
Total short-term borrowings	$	6,413,056	$	138,729

The weighted average interest rate for short-term FHLB advances was 5.18 percent and 1.6 percent at March 31, 2023 and December 31, 2022, respectively.

Long-Term Borrowings

Long-term borrowings at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
FHLB advances, net (1)	$	1,438,361	$	788,419
Subordinated debt, net (2)	759,295		754,639
Total long-term borrowings	$	2,197,656	$	1,543,058

(1)	FHLB advances are presented net of unamortized premiums totaling $361 thousand and $419 thousand at March 31, 2023 and December 31, 2022, respectively.
(2)	Subordinated debt is presented net of unamortized debt issuance costs totaling $6.5 million and $6.9 million at March 31, 2023 and December 31, 2022, respectively.

FHLB Advances. Long-term FHLB advances had a weighted average interest rate of 3.66 percent and 1.88 percent at March 31, 2023 and December 31, 2022, respectively. 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.

The long-term FHLB advances at March 31, 2023 are scheduled for contractual balance repayments as follows:

Year	Amount
	(in thousands)
2024	$	165,000
2025	273,000
2026	350,000
2027	425,000
Thereafter	225,000
Total long-term FHLB advances	$	1,438,000

There are no FHLB advances reported in the table above, which are callable for early redemption by the FHLB during the next 12 months.

Subordinated debt. There were no new issuances of the subordinated debt during the three months ended March 31, 2023. See Note 10 in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022 for details on the outstanding subordinated debt.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2023

Share-Based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock–Based Compensation

On April 25, 2023, Valley's shareholders approved the Valley National Bancorp 2023 Incentive Compensation Plan (the 2023 Plan). The purpose of the 2023 Plan is to provide additional long-term incentives to employees, directors and officers whose contributions are essential to the continued growth and success of Valley. Upon shareholder approval of the 2023 Plan, Valley ceased granting awards under the Valley National Bancorp 2021 Incentive Compensation Plan (the 2021 Plan).

Under the 2023 Plan, Valley may issue awards to its officers, employees and non-employee directors in amounts up to 14.5 million shares of common stock, less one share for every share granted after December 31, 2022 under the 2021 Plan. These awards may be in the form of stock appreciation rights, incentive and non-qualified stock options, restricted stock, and restricted stock units (RSUs). If after December 31, 2022, share awards granted under the 2021 Plan are forfeited, expire, settled for cash, withheld for tax obligations, or otherwise not issued, the shares will be added to the 2023 Plan's share reserve. 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. Performance-based awards may also be based on 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 granted 1.5 million and 1.2 million time-based RSUs during the three months ended March 31, 2023 and 2022, respectively. Generally, time-based RSUs vest ratably over a three-year period. The average grant date fair value of the RSUs granted during the three months ended March 31, 2023 and 2022 was $11.91 per share and $14.05 per share, respectively.

Valley granted 723 thousand and 567 thousand performance-based RSUs to certain officers for the three months ended March 31, 2023 and 2022, respectively. The performance-based RSU awards include RSUs with vesting conditions based upon certain levels of growth in Valley's tangible book value per share, plus dividends; and RSUs, with vesting conditions based upon Valley's total shareholder return as compared to its peer group. The RSUs “cliff” vest after three years based on the cumulative performance of Valley during that time period. The RSUs earn

dividend equivalents (equal to cash dividends paid on Valley's common stock) over the applicable performance period. Dividend equivalents accumulate and are paid to the grantee at the vesting date, or forfeited if the performance conditions are not met. The grant date fair value of the performance-based RSUs granted during the three months ended March 31, 2023 and 2022 was $12.80 per share and $14.82 per share, respectively.Valley recorded total stock-based compensation expense of $8.1 million and $7.3 million for the three months ended March 31, 2023 and 2022, respectively. Stock award fair values are expensed over the shorter of the vesting or required service period. As of March 31, 2023, the unrecognized amortization expense for all stock-based employee compensation totaled approximately $56.6 million. This expense will be recognized over an average remaining vesting period of approximately 2.2 years.

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

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 and currency rates.

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 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, respectively.

At March 31, 2023, Valley had six interest rate swaps with a total notional amount of $600 million, to hedge the changes in cash flows associated with certain variable rate loans. Valley is required to pay variable rate amounts based on one-month CME Term SOFR and receives fixed rate payments based on the tenor of each swap. Expiration dates for the swaps range from November 2024 to November 2026.

Fair Value Hedges of Fixed Rate Assets and Liabilities. Valley is exposed to changes in the fair value of fixed-rate subordinated debt due to changes in interest rates. Valley uses interest rate swaps to manage its exposure to changes in fair value on fixed rate debt instruments attributable to changes in the designated benchmark interest rate. 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.

Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide a 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. 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 these interest rate swaps 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 March 31, 2023, Valley had 33 credit swaps with an aggregate notional amount of $409.2 million related to risk participation agreements. 

At March 31, 2023, Valley had two “steepener” swaps, each with a current notional amount of $10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and 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 the 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 rate on Valley's commitments to fund the loans as well as on its portfolio of mortgage loans held for sale.

Valley enters into foreign currency forward and option contracts, primarily to accommodate our customers, that are not designated as hedging instruments. Upon the origination of a certain foreign currency denominated transactions (including foreign currency holdings and non-U.S. dollar denominated loans) with a client, we enter into a respective hedging contract with a third party financial institution to mitigate the economic impact of foreign currency exchange rate fluctuation.

Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: 

	March 31, 2023						December 31, 2022
	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	$	7,866	$	—	$	600,000	$	3,971	$	4	$	600,000
Fair value hedge interest rate swaps	—		27,858		300,000		—		29,794		300,000
Total derivatives designated as hedging instruments	$	7,866	$	27,858	$	900,000	$	3,971	$	29,798	$	900,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*	$	429,195	$	457,508	$	15,298,441	$	449,280	$	564,678	$	14,753,330
Foreign currency derivatives	9,540		8,944		1,848,883		13,709		12,604		1,273,735
Mortgage banking derivatives	148		242		51,106		167		157		31,299
Total derivatives not designated as hedging instruments	$	438,883	$	466,694	$	17,198,430	$	463,156	$	577,439	$	16,058,364

* Other derivative contracts include risk participation agreements.

The Chicago Mercantile Exchange and London Clearing House variation margins are classified as a single-unit of account as settlements of the cash flow hedges and other non-designated derivative instruments. As a result, the fair value of the applicable derivative assets and liabilities are reported net of variation margin at March 31, 2023 and December 31, 2022 in the table above.

Gains (losses) included in the consolidated statements of income and other comprehensive loss, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(531)	$	(542)
Amount of gain recognized in other comprehensive loss	3,898		320

The accumulated after-tax gains related to effective cash flow hedges included in accumulated other comprehensive loss were $5.4 million and $2.2 million at March 31, 2023 and December 31, 2022, 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 $2.1 million before tax will be reclassified as an increase to interest expense over the next 12 months.

Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Derivative - interest rate swap:
Interest expense	$	4,692	$	530
Hedged item - subordinated debt
Interest expense	$	(4,772)	$	(530)

The changes in the fair value of the hedged item designated as a qualifying hedge are captured as an adjustment to the carrying amount of the hedged item (basis adjustment). The following table presents the hedged item 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 item at March 31, 2023 and December 31, 2022, respectively.

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)
March 31, 2023
Long-term borrowings	$	272,051	$	(25,360)
December 31, 2022
Long-term borrowings	$	267,076	$	(30,132)

*    Net carrying amount includes unamortized debt issuance costs of $2.6 million and $2.8 million at March 31, 2023 and December 31, 2022, respectively.

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

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$	208	$	(2,797)

Capital markets income reported in non-interest income included fee income related to non-designated hedge derivative interest rate swaps (not designated as hedging instruments) executed with commercial loan customers and foreign exchange fees with a combined total of $9.9 million and $14.4 million for the three months ended March 31, 2023 and 2022, respectively.

Collateral Requirements and Credit Risk Related Contingent 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 counterparties could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of March 31, 2023, Valley was in compliance with all of the provisions of its derivative counterparty agreements. The aggregate fair value of all derivative financial instruments with credit risk-related contingent features in a net liability position at March 31, 2023 was not material. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties.

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Balance Sheet Offsetting

3 Months Ended

Mar. 31, 2023

Offsetting [Abstract]

Balance Sheet Offsetting

Balance Sheet Offsetting

Certain financial instruments, including certain over-the-counter (OTC) derivatives (mostly interest rate swaps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated statements of financial condition and/or subject to master netting arrangements or similar agreements. OTC derivatives include interest rate swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house (presented in the table below). The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting 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 swap or repurchase agreement should Valley be in default. The total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty.

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2023 and December 31, 2022.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2023
Assets
Interest rate swaps	$	437,061	$	—	$	437,061	$	30,473	$	(301,740)	$	165,794
Liabilities
Interest rate swaps	$	485,366	$	—	$	485,366	$	(30,473)	$	(681)	$	454,212
December 31, 2022
Assets
Interest rate swaps	$	453,251	$	—	$	453,251	$	12,766	$	(342,480)	$	123,537
Liabilities
Interest rate swaps	$	594,476	$	—	$	594,476	$	(12,766)	$	(432)	$	581,278

*    Cash collateral received from or pledged to our counterparties in relation to market value exposures of OTC derivative contacts in an asset/liability position.

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Tax Credit Investments

3 Months Ended

Mar. 31, 2023

Income Tax Disclosure [Abstract]

Tax Credit Investments

Tax Credit Investments

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 in 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 impairments, if applicable.

The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	22,813	$	24,198
Other tax credit investments, net	53,812		56,551
Total tax credit investments, net	$	76,625	$	80,749
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,338	$	1,338
Total unfunded tax credit commitments	$	1,338	$	1,338

The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three months ended March 31, 2023 and 2022: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	1,459	$	744
Other tax credit investment credits and tax benefits	3,221		2,551
Total reduction in income tax expense	$	4,680	$	3,295
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	937	$	415
Affordable housing tax credit investment impairment losses	448		262
Other tax credit investment losses	6		309
Other tax credit investment impairment losses	2,862		1,910
Total amortization of tax credit investments recorded in non-interest expense	$	4,253	$	2,896

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Operating Segments

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Operating Segments

Operating Segments

At March 31, 2023 and December 31, 2022, Valley managed its business operations under reportable segments consisting of Consumer Banking, Commercial Banking and Treasury and Corporate Other. Each operating 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). Valley regularly assesses its strategic plans, operations and reporting structures to identify its reportable segments and no changes to the reportable segments were determined necessary during the first quarter 2023.

Consumer Banking 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. Consumer Banking also includes the Wealth Management and Insurance Services Division, comprised of trust, asset management, brokerage, insurance and tax credit advisory services.

Commercial Banking is 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 Banking is Valley’s operating segment that is most sensitive to movements in market interest rates.

Treasury and Corporate Other largely consists of the Treasury managed held to maturity debt securities and available for sale debt securities portfolios mainly utilized in the liquidity management needs of our lending segments and income and expense items resulting from support functions not directly attributable to a specific segment. Interest income is generated through investments in various types of securities (mainly comprised of fixed rate securities) and interest-bearing deposits with other banks (primarily the Federal Reserve Bank of New York). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from Treasury and Corporate Other to the Consumer and Commercial Banking segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each operating segment utilizing a transfer pricing methodology, which involves the allocation of operating and funding costs based on each segment's respective mix of average earning assets and or liabilities outstanding for the period.

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. 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. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. The balances presented for the three months ended March 31, 2022 in the tables below reflect reclassifications to conform with the presentation of the current operating segment structure, which was implemented in the second quarter 2022. These reclassifications did not impact Valley's consolidated results. See Valley's Form 10-K for the year ended December 31, 2022 for additional information.

The following tables represent the financial data for Valley’s operating segments for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	8,768,482		$	39,090,889		$	7,503,419		$	55,362,790
Interest income	$	85,316		$	569,910		$	65,004		$	720,230
Interest expense	43,006			191,723			49,481			284,210
Net interest income	42,310			378,187			15,523			436,020
Provision for credit losses	6,444			3,006			4,987			14,437
Net interest income after provision for credit losses	35,866			375,181			10,536			421,583
Non-interest income	14,290			15,747			24,262			54,299
Non-interest expense	18,249			35,723			218,194			272,166
Internal transfer expense (income)	30,883			131,595			(162,478)			—
Income (loss) before income taxes	$	1,024		$	223,610		$	(20,918)		$	203,716
Return on average interest earning assets (pre-tax)	0.05		%	2.29		%	(1.12)		%	1.47		%

	Three Months Ended March 31, 2022
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	40,283,048
Interest income	$	59,459		$	257,906		$	23,093		$	340,458
Interest expense	3,207			11,327			8,255			22,789
Net interest income	56,252			246,579			14,838			317,669
Provision for credit losses	1,873			1,627			57			3,557
Net interest income after provision for credit losses	54,379			244,952			14,781			314,112
Non-interest income	13,817			16,880			8,573			39,270
Non-interest expense	16,568			25,085			155,687			197,340
Internal transfer expense (income)	28,647			99,916			(128,563)			—
Income (loss) before income taxes	$	22,981		$	136,831		$	(3,770)		$	156,042
Return on average interest earning assets (pre-tax)	1.20		%	2.03		%	(0.27)		%	1.55		%

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2023

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey Corporation (Valley) include the accounts of Valley National Bank (the Bank) and all other entities in which Valley has a controlling financial interest. 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. Certain prior period amounts have been reclassified to conform to the current presentation.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at March 31, 2023 and for all periods presented have been made. The results of operations for the three months ended March 31, 2023 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022.

Significant Estimates

Significant Estimates. In preparing the unaudited 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 require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, 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. Actual results may differ from those estimates. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date

New Accounting Guidance Adopted and Not Accounting Guidance Issued

New Accounting Guidance Adopted in 2023

Accounting Standards Update (ASU) No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging –Portfolio Layer Method” expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges. This method allows entities to designate multiple hedging relationships with a single closed portfolio, and therefore a larger portion of the interest rate risk associated with such a portfolio is eligible to be hedged. ASU No. 2022-01 also clarifies that no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge. Valley adopted ASU No. 2022-01 on January 1, 2023 and the guidance did not have a significant impact on Valley's consolidated financial statements.

ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the troubled debt restructuring (TDR) accounting model for creditors, such as Valley, that have adopted Topic 326, “Financial Instruments – Credit Losses.” ASU No. 2022-02 requires all loan modifications to be accounted for under the general loan modification guidance in Subtopic 310-20. On a prospective basis, entities are subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements are also required to prospectively disclose current-period gross write-off information by vintage. Entities can elect to adopt the guidance on TDRs using either a prospective or modified retrospective transition method. Valley adopted ASU No. 2022-02 on January 1, 2023 and elected to apply the modified retrospective transition method. The adoption of ASU No. 2022-02 resulted in a $1.4 million decrease in the allowance for loan losses, and a $990 thousand increase to retained earnings, net of taxes. See Note 8 for required disclosures.

New Accounting Guidance Issued in 2023

ASU No. 2023-02, Investments –“Equity Method and Joint Ventures (Topic 323): Accounting for Investments in Tax Credit Structures Using the Proportional Amortization Method,” is intended to improve the accounting and

disclosures for investments in certain tax credit structures. ASU No. 2023-02 allows the option to apply the proportional amortization method to account for investments made primarily for the purpose of receiving income tax credits and other income tax benefits when certain requirements are met. ASU No. 2023-02 will be effective on January 1, 2024 and it can be early adopted in any interim period. The new guidance can also be applied either on a modified retrospective or a retrospective basis, with any adjustments resulting from adoption recognized in earnings on the date of adoption. Valley is currently evaluating the impact of ASU No. 2023-02, but it is not expected to have a significant impact on Valley's consolidated financial statements.

Allowance for Credit Losses for Held to Maturity Debt Securities

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero-loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and TEMS collateralized municipal bonds.

Accrued interest on investments, which is excluded from the amortized cost of held to maturity debt securities, totaled $12.7 million and $13.5 million at March 31, 2023 and December 31, 2022, respectively, and is presented

within total accrued interest receivable on the consolidated statements of financial condition.

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Business Combinations (Tables)

3 Months Ended

Mar. 31, 2023

Business Combination and Asset Acquisition [Abstract]

Assets Acquired and Liabilities Assumed in Acquisition

The following table sets forth assets acquired and liabilities assumed in the Bank Leumi USA acquisition, at their estimated fair values as of the closing date of the transaction:

	April 1, 2022
	(in thousands)
Assets acquired:
Cash and cash equivalents	$	443,588
Equity securities	6,239
Available for sale debt securities	505,928
Held to maturity debt securities	806,627
Loans	5,914,389
Allowance for loan losses	(70,319)
Loans, net	5,844,070
Premises and equipment	38,827
Lease right of use assets	49,273
Bank owned life insurance	126,861
Accrued interest receivable	25,717
Goodwill	400,582
Other intangible assets	153,380
Other assets	160,921
Total assets acquired	$	8,562,013
Liabilities assumed:
Deposits:
Non-interest bearing	$	4,511,537
Interest bearing:
Savings, NOW and money market	2,224,834
Time	293,626
Total deposits	7,029,997
Short-term borrowings	103,794
Lease liabilities	79,683
Accrued expense and other liabilities	117,269
Total liabilities assumed	$	7,330,743
Common stock issued in acquisition	1,117,829
Cash paid in acquisition	113,441

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2023

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31,
	2023		2022
	(in thousands, except for share and per share data)
Net income available to common shareholders	$	142,677	$	113,556
Basic weighted average number of common shares outstanding	507,111,295		421,573,843
Plus: Common stock equivalents	2,545,135		1,932,707
Diluted weighted average number of common shares outstanding	509,656,430		423,506,550
Earnings per common share:
Basic	$	0.28	$	0.27
Diluted	0.28		0.27

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2023

Equity [Abstract]

Components 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 three months ended March 31, 2023:

	Components of Accumulated Other Comprehensive Loss						Total Accumulated Other Comprehensive Loss
	Unrealized Gains and Losses on Available for Sale (AFS) Securities		Unrealized Gains and Losses on Derivatives		Defined Benefit Pension and Postretirement Benefit Plans
	(in thousands)
Balance at December 31, 2022	$	(127,818)	$	2,233	$	(38,417)	$	(164,002)
Other comprehensive gain before reclassification	17,170		2,798		—		19,968
Amounts reclassified from other comprehensive income	—		379		8		387
Other comprehensive income, net	17,170		3,177		8		20,355
Balance at March 31, 2023	$	(110,648)	$	5,410	$	(38,409)	$	(143,647)

Reclassification from Each Component of Accumulated Other Comprehensive Loss

The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2023 and 2022:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended March 31,
Components of Accumulated Other Comprehensive Loss	2023		2022		Income Statement Line Item
	(in thousands)
Unrealized gains on AFS securities before tax	$	—	$	14	Gains (losses) on securities transactions, net
Tax effect	—		(4)
Total net of tax	—		10
Unrealized losses on derivatives (cash flow hedges) before tax	(531)		(542)		Interest expense
Tax effect	152		156
Total net of tax	(379)		(386)
Defined benefit pension and postretirement benefit plans:
Amortization of actuarial net loss	(11)		(183)		*
Tax effect	3		51
Total net of tax	(8)		(132)
Total reclassifications, net of tax	$	(387)	$	(508)

* Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.

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Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2023

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a 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 March 31, 2023 and December 31, 2022. The assets presented under “non-recurring fair value measurements” in the tables 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). 

	March 31, 2023		Fair Value Measurements at Reporting Date Using:
			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	$	23,635	$	23,635	$	—	$	—
Equity securities at net asset value (NAV)	10,175		—		—		—
Trading debt securities	6,855		3,477		3,378		—
Available for sale debt securities:
U.S. Treasury securities	286,745		286,745		—		—
U.S. government agency securities	26,352		—		26,352		—
Obligations of states and political subdivisions	152,775		—		152,775		—
Residential mortgage-backed securities	619,776		—		619,776		—
Corporate and other debt securities	173,588		—		173,588		—
Total available for sale debt securities	1,259,236		286,745		972,491		—
Loans held for sale (1)	17,218		—		17,218		—
Other assets (2)	446,749		—		446,749		—
Total assets	$	1,763,868	$	313,857	$	1,439,836	$	—
Liabilities
Other liabilities (2)	$	494,552	$	—	$	494,552	$	—
Total liabilities	$	494,552	$	—	$	494,552	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	81,267	$	—	$	—	$	81,267
Foreclosed assets	1,752		—		—		1,752
Total	$	83,019	$	—	$	—	$	83,019

			Fair Value Measurements at Reporting Date Using:
	December 31, 2022		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	$	23,494	$	23,494	$	—	$	—
Equity securities at net asset value (NAV)	10,099		—		—		—
Trading debt securities	13,438		3,282		10,156		—
Available for sale debt securities:
U.S. Treasury securities	279,498		279,498		—		—
U.S. government agency securities	26,964		—		26,964		—
Obligations of states and political subdivisions	146,811		—		146,811		—
Residential mortgage-backed securities	629,818		—		629,818		—
Corporate and other debt securities	178,306		—		178,306		—
Total available for sale debt securities	1,261,397		279,498		981,899		—
Loans held for sale (1)	18,118		—		18,118		—
Other assets (2)	467,127		—		467,127		—
Total assets	$	1,793,673	$	306,274	$	1,477,300	$	—
Liabilities
Other liabilities (2)	$	607,237	$	—	$	607,237	$	—
Total liabilities	$	607,237	$	—	$	607,237	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	92,923	$	—	$	—	$	92,923
Foreclosed assets	1,937		—		—		1,937
Total	$	94,860	$	—	$	—	$	94,860

(1)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $17.1 million and $17.9 million at March 31, 2023 and December 31, 2022, respectively.

(2)Derivative financial instruments are included in this category.

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 March 31, 2023 and December 31, 2022 were as follows: 

	Fair Value Hierarchy	March 31, 2023				December 31, 2022
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	444,690	$	444,690	$	444,325	$	444,325
Interest bearing deposits with banks	Level 1	5,260,998		5,260,998		503,622		503,622
Equity securities (1)	Level 3	16,342		16,342		15,138		15,138
Held to maturity debt securities:
U.S. Treasury securities	Level 1	66,747		66,182		66,911		65,889
U.S. government agency securities	Level 2	300,614		255,640		260,392		212,712
Obligations of states and political subdivisions	Level 2	473,597		452,919		480,298		453,195
Residential mortgage-backed securities	Level 2	2,893,505		2,525,568		2,909,106		2,495,797
Trust preferred securities	Level 2	37,048		29,992		37,043		31,106
Corporate and other debt securities	Level 2	75,701		70,183		75,234		70,771
Total held to maturity debt securities (2)		3,847,212		3,400,484		3,828,984		3,329,470
Net loans	Level 3	48,223,068		47,389,743		46,458,545		44,910,049
Accrued interest receivable	Level 1	223,608		223,608		196,606		196,606
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	547,686		547,686		238,056		238,056
Financial liabilities
Deposits without stated maturities	Level 1	36,479,540		36,479,540		38,080,457		38,080,457
Deposits with stated maturities	Level 2	11,111,376		11,040,582		9,556,457		9,443,253
Short-term borrowings	Level 1	6,413,056		6,392,459		138,729		138,729
Long-term borrowings	Level 2	2,197,656		2,110,305		1,543,058		1,395,991
Junior subordinated debentures issued to capital trusts	Level 2	56,847		55,042		56,760		50,923
Accrued interest payable (4)	Level 1	85,581		85,581		45,617		45,617

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2023

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Available for Sale

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2023 and December 31, 2022 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	309,524	$	—	$	(22,779)	$	286,745
U.S. government agency securities	28,394		46		(2,088)		26,352
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,649		—		(652)		9,997
Municipal bonds	171,219		—		(28,441)		142,778
Total obligations of states and political subdivisions	181,868		—		(29,093)		152,775
Residential mortgage-backed securities	699,214		60		(79,498)		619,776
Corporate and other debt securities	193,007		—		(19,419)		173,588
Total	$	1,412,007	$	106	$	(152,877)	$	1,259,236
December 31, 2022
U.S. Treasury securities	$	308,137	$	—	$	(28,639)	$	279,498
U.S. government agency securities	29,494		47		(2,577)		26,964
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,899		—		(493)		10,406
Municipal bonds	171,586		—		(35,181)		136,405
Total obligations of states and political subdivisions	182,485		—		(35,674)		146,811
Residential mortgage-backed securities	719,868		64		(90,114)		629,818
Corporate and other debt securities	197,927		—		(19,621)		178,306
Total	$	1,437,911	$	111	$	(176,625)	$	1,261,397

Age of Unrealized Losses and Fair Value of Related Available for Sale Debt Securities

The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2023 and December 31, 2022 were as follows: 

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	286,745	$	(22,779)	$	—	$	—	$	286,745	$	(22,779)
U.S. government agency securities	12,003		(1,238)		11,371		(850)		23,374		(2,088)
Obligations of states and political subdivisions:
Obligations of states and state agencies	2,231		(17)		7,766		(635)		9,997		(652)
Municipal bonds	114,299		(20,463)		28,229		(7,978)		142,528		(28,441)
Total obligations of states and political subdivisions	116,530		(20,480)		35,995		(8,613)		152,525		(29,093)
Residential mortgage-backed securities	34,170		(1,506)		582,739		(77,992)		616,909		(79,498)
Corporate and other debt securities	108,625		(9,446)		64,964		(9,973)		173,589		(19,419)
Total	$	558,073	$	(55,449)	$	695,069	$	(97,428)	$	1,253,142	$	(152,877)
December 31, 2022
U.S. Treasury securities	$	279,498	$	(28,639)	$	—	$	—	$	279,498	$	(28,639)
U.S. government agency securities	22,831		(2,538)		1,116		(39)		23,947		(2,577)
Obligations of states and political subdivisions:
Obligations of states and state agencies	2,943		(54)		7,462		(439)		10,405		(493)
Municipal bonds	112,029		(26,044)		24,127		(9,137)		136,156		(35,181)
Total obligations of states and political subdivisions	114,972		(26,098)		31,589		(9,576)		146,561		(35,674)
Residential mortgage-backed securities	311,836		(27,152)		314,834		(62,962)		626,670		(90,114)
Corporate and other debt securities	144,924		(12,581)		33,382		(7,040)		178,306		(19,621)
Total	$	874,061	$	(97,008)	$	380,921	$	(79,617)	$	1,254,982	$	(176,625)

Contractual Maturities of Debt Securities Available for Sale

The contractual maturities of available for sale debt securities at March 31, 2023 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.

	March 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	3,852	$	3,834
Due after one year through five years	282,224		270,503
Due after five years through ten years	173,459		154,742
Due after ten years	253,258		210,381
Residential mortgage-backed securities	699,214		619,776
Total	$	1,412,007	$	1,259,236

Debt Securities, Available-for-Sale, Allowance for Credit Loss

The following table details the activity in the allowance for credit losses for the three months ended March 31, 2023.

	Three Months Ended March 31, 2023
	(in thousands)
Beginning balance	$	—
Provision for credit losses	5,000
Charge-offs	(5,000)
Ending balance	$	—

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Held to Maturity

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2023 and December 31, 2022 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value		Allowance for Credit Losses		Net Carrying Value
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,747	$	—	$	(565)	$	66,182	$	—	$	66,747
U.S. government agency securities	300,614		25		(44,999)		255,640		—		300,614
Obligations of states and political subdivisions:
Obligations of states and state agencies	96,693		341		(4,149)		92,885		257		96,436
Municipal bonds	376,904		112		(16,982)		360,034		86		376,818
Total obligations of states and political subdivisions	473,597		453		(21,131)		452,919		343		473,254
Residential mortgage-backed securities	2,893,505		2,752		(370,689)		2,525,568		—		2,893,505
Trust preferred securities	37,048		1		(7,057)		29,992		775		36,273
Corporate and other debt securities	75,701		—		(5,518)		70,183		515		75,186
Total	$	3,847,212	$	3,231	$	(449,959)	$	3,400,484	$	1,633	$	3,845,579
December 31, 2022
U.S. Treasury securities	$	66,911	$	—	$	(1,022)	$	65,889	$	—	$	66,911
U.S. government agency securities	260,392		—		(47,680)		212,712		—		260,392
Obligations of states and political subdivisions:
Obligations of states and state agencies	99,238		305		(3,869)		95,674		252		98,986
Municipal bonds	381,060		76		(23,615)		357,521		41		381,019
Total obligations of states and political subdivisions	480,298		381		(27,484)		453,195		293		480,005
Residential mortgage-backed securities	2,909,106		1,723		(415,032)		2,495,797		—		2,909,106
Trust preferred securities	37,043		1		(5,938)		31,106		888		36,155
Corporate and other debt securities	75,234		—		(4,463)		70,771		465		74,769
Total	$	3,828,984	$	2,105	$	(501,619)	$	3,329,470	$	1,646	$	3,827,338

Age of Unrealized Losses and Fair Value of Related Debt Securities Held to Maturity

The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2023 and December 31, 2022 were as follows: 

	Less than 12 Months				More than 12 Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,182	$	(565)	$	—	$	—	$	66,182	$	(565)
U.S. government agency securities	211,526		(44,773)		2,925		(226)		214,451		(44,999)
Obligations of states and political subdivisions:
Obligations of states and state agencies	20,457		(789)		39,627		(3,360)		60,084		(4,149)
Municipal bonds	226,278		(13,671)		26,411		(3,311)		252,689		(16,982)
Total obligations of states and political subdivisions	246,735		(14,460)		66,038		(6,671)		312,773		(21,131)
Residential mortgage-backed securities	381,802		(33,941)		1,944,360		(336,748)		2,326,162		(370,689)
Trust preferred securities	—		—		28,990		(7,057)		28,990		(7,057)
Corporate and other debt securities	37,579		(2,122)		24,604		(3,396)		62,183		(5,518)
Total	$	943,824	$	(95,861)	$	2,066,917	$	(354,098)	$	3,010,741	$	(449,959)
December 31, 2022
U.S. Treasury securities	$	65,889	$	(1,022)	$	—	$	—	$	65,889	$	(1,022)
U.S. government agency securities	209,863		(47,508)		1,673		(172)		211,536		(47,680)
Obligations of states and political subdivisions:
Obligations of states and state agencies	62,443		(2,020)		18,231		(1,849)		80,674		(3,869)
Municipal bonds	251,970		(20,457)		15,534		(3,158)		267,504		(23,615)
Total obligations of states and political subdivisions	314,413		(22,477)		33,765		(5,007)		348,178		(27,484)
Residential mortgage-backed securities	962,690		(109,532)		1,413,590		(305,500)		2,376,280		(415,032)
Trust preferred securities	—		—		30,105		(5,938)		30,105		(5,938)
Corporate and other debt securities	57,245		(2,989)		13,525		(1,474)		70,770		(4,463)
Total	$	1,610,100	$	(183,528)	$	1,492,658	$	(318,091)	$	3,102,758	$	(501,619)

Contractual Maturities of Debt Securities Held to Maturity

The contractual maturities of investments in debt securities held to maturity at March 31, 2023 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.

	March 31, 2023
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	63,872	$	63,355
Due after one year through five years	169,205		165,906
Due after five years through ten years	96,385		92,034
Due after ten years	624,245		553,621
Residential mortgage-backed securities	2,893,505		2,525,568
Total	$	3,847,212	$	3,400,484

Amortized Cost of Debt Securities Held to Maturity by External Credit Rating

The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2023 and December 31, 2022.

	AAA/AA/A Rated		BBB rated		Non-investment grade rated		Non-rated		Total
	(in thousands)
March 31, 2023
U.S. Treasury securities	$	66,747	$	—	$	—	$	—	$	66,747
U.S. government agency securities	300,614		—		—		—		300,614
Obligations of states and political subdivisions:
Obligations of states and state agencies	73,278		—		5,437		17,978		96,693
Municipal bonds	328,202		—		—		48,702		376,904
Total obligations of states and political subdivisions	401,480		—		5,437		66,680		473,597
Residential mortgage-backed securities	2,893,505		—		—		—		2,893,505
Trust preferred securities	—		—		—		37,048		37,048
Corporate and other debt securities	—		6,000		—		69,701		75,701
Total	$	3,662,346	$	6,000	$	5,437	$	173,429	$	3,847,212
December 31, 2022
U.S. Treasury securities	$	66,911	$	—	$	—	$	—	$	66,911
U.S. government agency securities	260,392		—		—		—		260,392
Obligations of states and political subdivisions:
Obligations of states and state agencies	74,943		—		5,497		18,798		99,238
Municipal bonds	333,488		—		—		47,572		381,060
Total obligations of states and political subdivisions	408,431		—		5,497		66,370		480,298
Residential mortgage-backed securities	2,909,106		—		—		—		2,909,106
Trust preferred securities	—		—		—		37,043		37,043
Corporate and other debt securities	2,000		6,000		—		67,234		75,234
Total	$	3,646,840	$	6,000	$	5,497	$	170,647	$	3,828,984

Debt Securities, Held-to-Maturity, Allowance for Credit Loss

The following table details the activity in the allowance for credit losses for the three months ended March 31, 2023 and 2022: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Beginning balance	$	1,646	$	1,165
(Credit) provision for credit losses	(13)		57
Ending balance	$	1,633	$	1,222

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Loans and Allowance for Credit Losses for Loans (Tables)

3 Months Ended

Mar. 31, 2023

Receivables [Abstract]

Schedule of Loan Portfolio

The detail of the loan portfolio as of March 31, 2023 and December 31, 2022 was as follows: 

	March 31, 2023		December 31, 2022
	(in thousands)
Loans:
Commercial and industrial	$	9,043,946	$	8,804,830
Commercial real estate:
Commercial real estate	27,051,111		25,732,033
Construction	3,725,967		3,700,835
Total commercial real estate loans	30,777,078		29,432,868
Residential mortgage	5,486,280		5,364,550
Consumer:
Home equity	516,592		503,884
Automobile	1,717,141		1,746,225
Other consumer	1,118,929		1,064,843
Total consumer loans	3,352,662		3,314,952
Total loans	$	48,659,966	$	46,917,200

Past Due, Non-Accrual and Current Loans by Loan Portfolio Class

The following table presents past due, current and non-accrual loans without an allowance for loan losses by loan portfolio class at March 31, 2023 and December 31, 2022:

	Past Due and Non-Accrual Loans
	30-59  Days  Past Due Loans		60-89  Days  Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
March 31, 2023
Commercial and industrial	$	20,716	$	24,118	$	8,927	$	78,606	$	132,367	$	8,911,579	$	9,043,946	$	6,675
Commercial real estate:
Commercial real estate	13,580		—		—		67,938		81,518		26,969,593		27,051,111		66,587
Construction	—		—		6,450		68,649		75,099		3,650,868		3,725,967		15,791
Total commercial real estate loans	13,580		—		6,450		136,587		156,617		30,620,461		30,777,078		82,378
Residential mortgage	12,599		2,133		1,668		23,483		39,883		5,446,397		5,486,280		18,694
Consumer loans:
Home equity	412		287		48		2,965		3,712		512,880		516,592		—
Automobile	4,598		502		282		262		5,644		1,711,497		1,717,141		—
Other consumer	2,835		730		417		91		4,073		1,114,856		1,118,929		—
Total consumer loans	7,845		1,519		747		3,318		13,429		3,339,233		3,352,662		—
Total	$	54,740	$	27,770	$	17,792	$	241,994	$	342,296	$	48,317,670	$	48,659,966	$	107,747

	Past Due and Non-Accrual Loans
	30-59 Days Past Due Loans		60-89  Days Past Due Loans		90 Days or More Past Due Loans		Non-Accrual Loans		Total Past Due Loans		Current Loans		Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
	(in thousands)
December 31, 2022
Commercial and industrial	$	11,664	$	12,705	$	18,392	$	98,881	$	141,642	$	8,663,188	$	8,804,830	$	5,659
Commercial real estate:
Commercial real estate	6,638		3,167		2,292		68,316		80,413		25,651,620		25,732,033		66,066
Construction	—		—		3,990		74,230		78,220		3,622,615		3,700,835		16,120
Total commercial real estate loans	6,638		3,167		6,282		142,546		158,633		29,274,235		29,432,868		82,186
Residential mortgage	16,146		3,315		1,866		25,160		46,487		5,318,063		5,364,550		14,224
Consumer loans:
Home equity	955		254		—		2,810		4,019		499,865		503,884		117
Automobile	5,974		630		1		271		6,876		1,739,349		1,746,225		—
Other consumer	2,158		695		46		93		2,992		1,061,851		1,064,843		—
Total consumer loans	9,087		1,579		47		3,174		13,887		3,301,065		3,314,952		117
Total	$	43,535	$	20,766	$	26,587	$	269,761	$	360,649	$	46,556,551	$	46,917,200	$	102,186

Risk Category of Loans

The following table presents the internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at March 31, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2023:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	435,733	$	1,418,804	$	1,021,874	$	549,408	$	304,137	$	628,117	$	4,450,850	$	130	$	8,809,053
Special Mention	1,573		27,386		2,591		19,260		3,658		7,443		61,455		7		123,373
Substandard	10		517		2,832		2,617		1,203		6,904		25,847		—		39,930
Doubtful	—		777		1,552		—		2,683		63,707		2,871		—		71,590
Total commercial and industrial	$	437,316	$	1,447,484	$	1,028,849	$	571,285	$	311,681	$	706,171	$	4,541,023	$	137	$	9,043,946
Commercial real estate
Risk Rating:
Pass	$	1,607,961	$	6,740,087	$	5,201,027	$	3,287,689	$	2,520,271	$	6,316,475	$	490,136	$	3,407	$	26,167,053
Special Mention	26,512		55,889		46,317		63,647		71,474		251,353		6,720		—		521,912
Substandard	—		33,613		35,924		30,090		34,765		219,838		7,916		—		362,146
Total commercial real estate	$	1,634,473	$	6,829,589	$	5,283,268	$	3,381,426	$	2,626,510	$	6,787,666	$	504,772	$	3,407	$	27,051,111
Construction
Risk Rating:
Pass	$	120,282	$	928,489	$	415,212	$	70,371	$	15,502	$	36,863	$	2,079,911	$	—	$	3,666,630
Substandard	—		13		12,290		—		964		17,600		7,351		—		38,218
Doubtful	447		8,341		670		11,661		—		—		—		—		21,119
Total construction	$	120,729	$	936,843	$	428,172	$	82,032	$	16,466	$	54,463	$	2,087,262	$	—	$	3,725,967
Gross loan charge-offs	$	—	$	6,035	$	20,286	$	123	$	72	$	1,636	$	3,593	$	—	$	31,745

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	1,600,747	$	1,089,386	$	590,406	$	322,564	$	250,031	$	386,085	$	4,307,163	$	144	$	8,546,526
Special Mention	31,557		3,367		19,492		4,732		4,369		3,558		51,021		7		118,103
Substandard	288		1,734		4,121		1,412		4,256		4,879		31,698		—		48,388
Doubtful	886		20,844		—		2,692		—		64,158		3,233		—		91,813
Total commercial and industrial	$	1,633,478	$	1,115,331	$	614,019	$	331,400	$	258,656	$	458,680	$	4,393,115	$	151	$	8,804,830
Commercial real estate
Risk Rating:
Pass	$	6,815,115	$	5,168,127	$	3,246,885	$	2,672,223	$	1,536,327	$	5,027,128	$	452,461	$	3,504	$	24,921,770
Special Mention	93,286		48,007		60,169		45,447		62,111		125,414		8,188		—		442,622
Substandard	15,088		34,475		32,630		34,622		59,337		183,341		7,986		—		367,479
Doubtful	—		—		—		—		—		162		—		—		162
Total commercial real estate	$	6,923,489	$	5,250,609	$	3,339,684	$	2,752,292	$	1,657,775	$	5,336,045	$	468,635	$	3,504	$	25,732,033
Construction
Risk Rating:
Pass	$	942,380	$	512,046	$	61,131	$	22,845	$	8,676	$	20,599	$	2,040,866	$	—	$	3,608,543
Special Mention	—		—		—		—		—		—		14,268		—		14,268
Substandard	12,969		12,601		—		974		—		17,599		20,138		—		64,281
Doubtful	—		—		—		—		—		13,743		—		—		13,743
Total construction	$	955,349	$	524,647	$	61,131	$	23,819	$	8,676	$	51,941	$	2,075,272	$	—	$	3,700,835

The following table presents the amortized cost in those loan classes based on payment activity, by origination year as of March 31, 2023 and December 31, 2022, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2023:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2023	2023		2022		2021		2020		2019		Prior to 2019		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	222,494	$	1,317,372	$	1,521,543	$	572,064	$	478,014	$	1,300,107	$	66,947	$	—	$	5,478,541
90 days or more past due	—		1,473		1,754		—		499		4,013		—		—		7,739
Total residential mortgage	$	222,494	$	1,318,845	$	1,523,297	$	572,064	$	478,513	$	1,304,120	$	66,947	$	—	$	5,486,280
Consumer loans
Home equity
Performing	$	7,251	$	46,566	$	12,085	$	4,448	$	4,891	$	18,499	$	383,948	$	37,984	$	515,672
90 days or more past due	—		—		—		—		—		—		285		635		920
Total home equity	7,251		46,566		12,085		4,448		4,891		18,499		384,233		38,619		516,592
Automobile
Performing	141,743		687,328		480,634		181,994		144,130		80,995		—		—		1,716,824
90 days or more past due	—		1		51		19		105		141		—		—		317
Total automobile	141,743		687,329		480,685		182,013		144,235		81,136		—		—		1,717,141
Other consumer
Performing	4,898		23,313		9,056		8,020		7,374		2,615		1,063,356		—		1,118,632
90 days or more past due	—		28		—		2		—		38		229		—		297
Total other consumer	4,898		23,341		9,056		8,022		7,374		2,653		1,063,585		—		1,118,929
Total consumer	$	153,892	$	757,236	$	501,826	$	194,483	$	156,500	$	102,288	$	1,447,818	$	38,619	$	3,352,662
Gross loan charge-offs	$	—	$	146	$	109	$	4	$	170	$	388	$	11	$	—	$	828

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	1,302,279	$	1,502,622	$	571,390	$	500,197	$	338,062	$	1,073,995	$	66,706	$	—	$	5,355,251
90 days or more past due	—		197		217		1,835		2,876		4,174		—		—		9,299
Total residential mortgage	$	1,302,279	$	1,502,819	$	571,607	$	502,032	$	340,938	$	1,078,169	$	66,706	$	—	$	5,364,550
Consumer loans
Home equity
Performing	$	47,084	$	12,432	$	4,592	$	5,024	$	5,581	$	13,007	$	376,608	$	38,570	$	502,898
90 days or more past due	—		—		—		—		—		—		276		710		986
Total home equity	47,084		12,432		4,592		5,024		5,581		13,007		376,884		39,280		503,884
Automobile
Performing	724,557		525,017		204,578		166,103		80,012		45,415		—		—		1,745,682
90 days or more past due	38		116		36		180		101		72		—		—		543
Total automobile	724,595		525,133		204,614		166,283		80,113		45,487		—		—		1,746,225
Other consumer
Performing	24,140		10,144		8,206		7,435		7,406		15,736		991,737		—		1,064,804
90 days or more past due	—		—		—		—		—		38		1		—		39
Total other consumer	24,140		10,144		8,206		7,435		7,406		15,774		991,738		—		1,064,843
Total consumer	$	795,819	$	547,709	$	217,412	$	178,742	$	93,100	$	74,268	$	1,368,622	$	39,280	$	3,314,952

Financing Receivable, Troubled Debt Restructuring

The following table shows the amortized cost basis of loans to borrowers experiencing financial difficulty at March 31, 2023 that were modified during the three months ended March 31, 2023, disaggregated by class of financing receivable and type of modification. Each of the types of modifications was less than one percent of their respective loan categories.

	Three Months Ended March 31,
	Term extension		Term extension and interest rate reduction		Total
	($ in thousands)
Commercial and industrial	$	1,281	$	523	$	1,804
Commercial real estate	46,328		—		46,328
Residential mortgage	213		—		213
Consumer	60		—		60
Total	$	47,882	$	523	$	48,405

The following table describes the types of modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2023:

	Types of Modifications
Commercial and industrial	12 month term extensions; and 12 month term extensions combined with interest rate reductions from 2.11 percent to 1 percent
Commercial real estate	6 - 36 month term extensions
Residential mortgage	12 month term extensions
Consumer	60 month term extensions

The following tables present the pre- and post-modification amortized cost of TDR loans by loan class during the three months ended March 31, 2022. Post-modification amounts are presented as of March 31, 2022 using the allowance methodology for TDRs prior to the adoption of ASU 2022-02.

	Three Months Ended March 31, 2022
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	11	$	9,684	$	9,662
Commercial real estate	2	5,260		5,251
Residential mortgage	1	121		117
Total	14	$	15,065	$	15,030

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 three months ended March 31, 2022 were as follows:

	Three Months Ended March 31, 2022
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	2	$	1,850
Construction	2	17,599
Total	4	$	19,449

Summary of Collateral Dependent Loans

The following table presents collateral dependent loans by class as of March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	74,481	$	94,433
Commercial real estate	144,892		130,199
Residential mortgage	18,694		33,865
Home equity	—		195
Total	$	238,067	$	258,692

* Commercial and industrial loans presented in the table above are primarily collateralized by taxi medallions.

Summary of Allowance for Credit Losses

The following table summarizes the ACL for loans at March 31, 2023 and December 31, 2022: 

	March 31, 2023		December 31, 2022
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	436,898	$	458,655
Allowance for unfunded credit commitments	24,071		24,600
Total allowance for credit losses for loans	$	460,969	$	483,255

Summary of Provision for Credit Losses

The following table summarizes the provision for credit losses for loans for the periods indicated:

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	9,979	$	3,258
(Credit) provision for unfunded credit commitments	(529)		242
Total provision for credit losses for loans	$	9,450	$	3,500

Summary of Activity in Allowance for Loan Losses

The following table details the activity in the allowance for loan losses by loan portfolio segment for the three months ended March 31, 2023 and 2022: 

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended March 31, 2023
Allowance for loan losses:
Beginning balance	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Impact of the adoption of ASU No. 2022-02 *	(739)		(589)		(12)		(28)		(1,368)
Beginning balance, adjusted	$	139,202	$	258,819	$	39,008	$	20,258	$	457,287
Loans charged-off	(26,047)		(5,698)		—		(828)		(32,573)
Charged-off loans recovered	1,399		24		21		761		2,205
Net (charge-offs) recoveries	(24,648)		(5,674)		21		(67)		(30,368)
Provision (credit) for loan losses	13,438		(9,813)		2,679		3,675		9,979
Ending balance	$	127,992	$	243,332	$	41,708	$	23,866	$	436,898
Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans charged-off	(1,571)		(173)		(26)		(825)		(2,595)
Charged-off loans recovered	824		107		457		1,257		2,645
Net (charge-offs) recoveries	(747)		(66)		431		432		50
(Credit) provision for loan losses	(1,140)		2,525		2,638		(765)		3,258
Ending balance	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510

Allocation Of Allowance For Loan Losses 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 allowance measurement methodology at March 31, 2023 and December 31, 2022.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
March 31, 2023
Allowance for loan losses:
Individually evaluated for credit losses	$	46,151	$	13,445	$	34	$	—	$	59,630
Collectively evaluated for credit losses	81,841		229,887		41,674		23,866		377,268
Total	$	127,992	$	243,332	$	41,708	$	23,866	$	436,898
Loans:
Individually evaluated for credit losses	$	74,625	$	144,892	$	12,028	$	6,929	$	238,474
Collectively evaluated for credit losses	8,969,321		30,632,186		5,474,252		3,345,733		48,421,492
Total	$	9,043,946	$	30,777,078	$	5,486,280	$	3,352,662	$	48,659,966
December 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	68,745	$	13,174	$	337	$	4,338	$	86,594
Collectively evaluated for credit losses	71,196		246,234		38,683		15,948		372,061
Total	$	139,941	$	259,408	$	39,020	$	20,286	$	458,655
Loans:
Individually evaluated for credit losses	$	117,644	$	213,522	$	28,869	$	14,058	$	374,093
Collectively evaluated for credit losses	8,687,186		29,219,346		5,335,681		3,300,894		46,543,107
Total	$	8,804,830	$	29,432,868	$	5,364,550	$	3,314,952	$	46,917,200

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2023

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The carrying amounts of goodwill allocated to Valley's business segments, or reporting units thereof, for goodwill impairment analysis at both March 31, 2023 and December 31, 2022 were as follows:

Business Segment / Reporting Unit *
Wealth Management		Consumer Banking		Commercial Banking		Total
(in thousands)
$	49,767	$	284,873	$	1,534,296	$	1,868,936

*    Valley’s Wealth Management and Insurance Division is comprised of trust, asset management, brokerage, insurance and tax credit advisory services. This reporting unit is included in the Consumer Banking segment for financial reporting purposes.

Other Intangible Assets

The following table summarizes other intangible assets as of March 31, 2023 and December 31, 2022: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2023
Loan servicing rights	$	120,177	$	(97,332)	$	22,845
Core deposits	215,620		(92,048)		123,572
Other	50,393		(9,639)		40,754
Total other intangible assets	$	386,190	$	(199,019)	$	187,171
December 31, 2022
Loan servicing rights	$	119,943	$	(96,136)	$	23,807
Core deposits	223,670		(92,486)		131,184
Other	51,299		(8,834)		42,465
Total other intangible assets	$	394,912	$	(197,456)	$	197,456

Estimated Future Amortization Expense

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2023 through 2027: 

Year	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2023	$	2,365	$	21,135	$	4,810
2024	2,813		24,897		5,951
2025	2,461		21,048		5,380
2026	2,143		17,223		4,805
2027	1,861		13,544		4,205

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Deposits (Tables)

3 Months Ended

Mar. 31, 2023

Financial Services, Banking and Thrift [Abstract]

Scheduled Maturities of Time Deposits

The scheduled maturities of time deposits as of March 31, 2023 were as follows: 

Year	Amount
	(in thousands)
2023	6,859,391
2024	2,578,459
2025	61,015
2026	120,032
2027	45,077
Thereafter	1,447,402
Total time deposits	$	11,111,376

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Borrowed Funds (Tables)

3 Months Ended

Mar. 31, 2023

Debt Disclosure [Abstract]

Schedule of Short-Term Borrowings

Short-term borrowings at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
FHLB advances	$	6,300,000	$	24,035
Securities sold under agreements to repurchase	113,056		114,694
Total short-term borrowings	$	6,413,056	$	138,729

Schedule of Long-Term Borrowings

Long-term borrowings at March 31, 2023 and December 31, 2022 consisted of the following:

	March 31, 2023		December 31, 2022
	(in thousands)
FHLB advances, net (1)	$	1,438,361	$	788,419
Subordinated debt, net (2)	759,295		754,639
Total long-term borrowings	$	2,197,656	$	1,543,058

(1)	FHLB advances are presented net of unamortized premiums totaling $361 thousand and $419 thousand at March 31, 2023 and December 31, 2022, respectively.
(2)	Subordinated debt is presented net of unamortized debt issuance costs totaling $6.5 million and $6.9 million at March 31, 2023 and December 31, 2022, respectively.

Schedule of FHLB Repayment

The long-term FHLB advances at March 31, 2023 are scheduled for contractual balance repayments as follows:

Year	Amount
	(in thousands)
2024	$	165,000
2025	273,000
2026	350,000
2027	425,000
Thereafter	225,000
Total long-term FHLB advances	$	1,438,000

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2023

Derivative Instruments and Hedging Activities Disclosure [Abstract]

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: 

	March 31, 2023						December 31, 2022
	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	$	7,866	$	—	$	600,000	$	3,971	$	4	$	600,000
Fair value hedge interest rate swaps	—		27,858		300,000		—		29,794		300,000
Total derivatives designated as hedging instruments	$	7,866	$	27,858	$	900,000	$	3,971	$	29,798	$	900,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*	$	429,195	$	457,508	$	15,298,441	$	449,280	$	564,678	$	14,753,330
Foreign currency derivatives	9,540		8,944		1,848,883		13,709		12,604		1,273,735
Mortgage banking derivatives	148		242		51,106		167		157		31,299
Total derivatives not designated as hedging instruments	$	438,883	$	466,694	$	17,198,430	$	463,156	$	577,439	$	16,058,364

* Other derivative 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 other comprehensive loss, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(531)	$	(542)
Amount of gain recognized in other comprehensive loss	3,898		320

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: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Derivative - interest rate swap:
Interest expense	$	4,692	$	530
Hedged item - subordinated debt
Interest expense	$	(4,772)	$	(530)

Interest Rate Derivatives Designated as Hedges

The following table presents the hedged item 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 item at March 31, 2023 and December 31, 2022, respectively.

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)
March 31, 2023
Long-term borrowings	$	272,051	$	(25,360)
December 31, 2022
Long-term borrowings	$	267,076	$	(30,132)

*    Net carrying amount includes unamortized debt issuance costs of $2.6 million and $2.8 million at March 31, 2023 and December 31, 2022, respectively.

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

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

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$	208	$	(2,797)

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Balance Sheet Offsetting (Tables)

3 Months Ended

Mar. 31, 2023

Offsetting [Abstract]

Offsetting Assets

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2023 and December 31, 2022.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2023
Assets
Interest rate swaps	$	437,061	$	—	$	437,061	$	30,473	$	(301,740)	$	165,794
Liabilities
Interest rate swaps	$	485,366	$	—	$	485,366	$	(30,473)	$	(681)	$	454,212
December 31, 2022
Assets
Interest rate swaps	$	453,251	$	—	$	453,251	$	12,766	$	(342,480)	$	123,537
Liabilities
Interest rate swaps	$	594,476	$	—	$	594,476	$	(12,766)	$	(432)	$	581,278

*    Cash collateral received from or pledged to our counterparties in relation to market value exposures of OTC derivative contacts in an asset/liability position.

Offsetting Liabilities

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2023 and December 31, 2022.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2023
Assets
Interest rate swaps	$	437,061	$	—	$	437,061	$	30,473	$	(301,740)	$	165,794
Liabilities
Interest rate swaps	$	485,366	$	—	$	485,366	$	(30,473)	$	(681)	$	454,212
December 31, 2022
Assets
Interest rate swaps	$	453,251	$	—	$	453,251	$	12,766	$	(342,480)	$	123,537
Liabilities
Interest rate swaps	$	594,476	$	—	$	594,476	$	(12,766)	$	(432)	$	581,278

*    Cash collateral received from or pledged to our counterparties in relation to market value exposures of OTC derivative contacts in an asset/liability position.

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Tax Credit Investments (Tables)

3 Months Ended

Mar. 31, 2023

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 March 31, 2023 and December 31, 2022:

	March 31, 2023		December 31, 2022
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	22,813	$	24,198
Other tax credit investments, net	53,812		56,551
Total tax credit investments, net	$	76,625	$	80,749
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,338	$	1,338
Total unfunded tax credit commitments	$	1,338	$	1,338

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 months ended March 31, 2023 and 2022: 

	Three Months Ended March 31,
	2023		2022
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	1,459	$	744
Other tax credit investment credits and tax benefits	3,221		2,551
Total reduction in income tax expense	$	4,680	$	3,295
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	937	$	415
Affordable housing tax credit investment impairment losses	448		262
Other tax credit investment losses	6		309
Other tax credit investment impairment losses	2,862		1,910
Total amortization of tax credit investments recorded in non-interest expense	$	4,253	$	2,896

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Operating Segments (Tables)

3 Months Ended

Mar. 31, 2023

Segment Reporting [Abstract]

Schedule of Financial Data for Business Segments

The following tables represent the financial data for Valley’s operating segments for the three months ended March 31, 2023 and 2022:

	Three Months Ended March 31, 2023
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	8,768,482		$	39,090,889		$	7,503,419		$	55,362,790
Interest income	$	85,316		$	569,910		$	65,004		$	720,230
Interest expense	43,006			191,723			49,481			284,210
Net interest income	42,310			378,187			15,523			436,020
Provision for credit losses	6,444			3,006			4,987			14,437
Net interest income after provision for credit losses	35,866			375,181			10,536			421,583
Non-interest income	14,290			15,747			24,262			54,299
Non-interest expense	18,249			35,723			218,194			272,166
Internal transfer expense (income)	30,883			131,595			(162,478)			—
Income (loss) before income taxes	$	1,024		$	223,610		$	(20,918)		$	203,716
Return on average interest earning assets (pre-tax)	0.05		%	2.29		%	(1.12)		%	1.47		%

	Three Months Ended March 31, 2022
	Consumer Banking			Commercial Banking			Treasury and Corporate Other			Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	40,283,048
Interest income	$	59,459		$	257,906		$	23,093		$	340,458
Interest expense	3,207			11,327			8,255			22,789
Net interest income	56,252			246,579			14,838			317,669
Provision for credit losses	1,873			1,627			57			3,557
Net interest income after provision for credit losses	54,379			244,952			14,781			314,112
Non-interest income	13,817			16,880			8,573			39,270
Non-interest expense	16,568			25,085			155,687			197,340
Internal transfer expense (income)	28,647			99,916			(128,563)			—
Income (loss) before income taxes	$	22,981		$	136,831		$	(3,770)		$	156,042
Return on average interest earning assets (pre-tax)	1.20		%	2.03		%	(0.27)		%	1.55		%

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Business Combinations (Details) - USD ($) $ / shares in Units, $ in Thousands			1 Months Ended	3 Months Ended
	Apr. 01, 2022	Oct. 08, 2021	Feb. 28, 2023	Mar. 31, 2023	Mar. 31, 2022
Bank Leumi Le-Israel Corporation
Business Acquisition [Line Items]
Number of shares issued for every share owned (in shares)	3.8025
Cash paid for every share owned (in dollars per share)	$ 5.08
Shares issued in connection with acquisition (in shares)	85,000,000
Cash paid in acquisition	$ 113,400
Consideration transferred	$ 1,200,000
Percentage of common stock transferred	14.00%
Acquisition related costs				$ 4,100	$ 4,400
Dudley Ventures
Business Acquisition [Line Items]
Shares issued in connection with acquisition (in shares)			327,083
Cash paid in acquisition		$ 11,300
Common stock issued in acquisition		$ 3,750

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Business Combination - Assets Acquired and Liabilities Assumed in Acquisition (Details) - USD ($) $ in Thousands	Apr. 01, 2022	Mar. 31, 2023	Dec. 31, 2022
Assets acquired:
Goodwill		$ 1,868,936	$ 1,868,936
Bank Leumi USA
Assets acquired:
Cash and cash equivalents	$ 443,588
Equity securities	6,239
Available for sale debt securities	505,928
Held to maturity debt securities	806,627
Loans	5,914,389
Allowance for loan losses	(70,319)
Loans, net	5,844,070
Premises and equipment	38,827
Lease right of use assets	49,273
Bank owned life insurance	126,861
Accrued interest receivable	25,717
Goodwill	400,582
Other intangible assets	153,380
Other assets	160,921
Total assets acquired	8,562,013
Deposits:
Non-interest bearing	4,511,537
Interest Bearing [Abstract]
Savings, NOW and money market	2,224,834
Time	293,626
Total deposits	7,029,997
Short-term borrowings	103,794
Lease liabilities	79,683
Accrued expense and other liabilities	117,269
Total liabilities assumed	7,330,743
Common stock issued in acquisition	1,117,829
Cash paid in acquisition	$ 113,441

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Earnings Per Share Reconciliation
Net income available to common shareholders	$ 142,677	$ 113,556
Basic weighted average number of common shares outstanding (in shares)	507,111,295	421,573,843
Plus: Common stock equivalents (in shares)	2,545,135	1,932,707
Diluted weighted average number of common shares outstanding (in shares)	509,656,430	423,506,550
Earnings Per Common Share:
Basic (usd per share)	$ 0.28	$ 0.27
Diluted (usd per share)	$ 0.28	$ 0.27
Anti-dilutive common stock options and warrants (in shares)	1,600,000	113,000

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Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Accumulated Other Comprehensive Income (Loss)
Beginning balance	$ 6,400,802	$ 5,084,066
Other comprehensive gain before reclassification	19,968
Amounts reclassified from other comprehensive income	387
Other comprehensive income, net	20,355	(38,166)
Ending balance	6,511,581	5,096,384
Total Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(164,002)	(17,932)
Ending balance	(143,647)	$ (56,098)
Unrealized Gains and Losses on Available for Sale (AFS) Securities
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(127,818)
Other comprehensive gain before reclassification	17,170
Amounts reclassified from other comprehensive income	0
Other comprehensive income, net	17,170
Ending balance	(110,648)
Unrealized Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss)
Beginning balance	2,233
Other comprehensive gain before reclassification	2,798
Amounts reclassified from other comprehensive income	379
Other comprehensive income, net	3,177
Ending balance	5,410
Defined Benefit Pension and Postretirement Benefit Plans
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(38,417)
Other comprehensive gain before reclassification	0
Amounts reclassified from other comprehensive income	8
Other comprehensive income, net	8
Ending balance	$ (38,409)

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Accumulated Other Comprehensive Loss - Reclassification from Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Reclassification Out Of Accumulated Other Comprehensive Loss
Gains (losses) on securities transactions, net	$ 378	$ (1,072)
Tax effect	(57,165)	(39,314)
Interest expense	(284,210)	(22,789)
Net income	146,551	116,728
Amortization of actuarial net loss	26,675	15,361
Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Out Of Accumulated Other Comprehensive Loss
Interest expense	(531)	(542)
Net income	(387)	(508)
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized gains on AFS securities before tax
Reclassification Out Of Accumulated Other Comprehensive Loss
Gains (losses) on securities transactions, net	0	14
Tax effect	0	(4)
Net income	0	10
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized losses on derivatives (cash flow hedges) before tax
Reclassification Out Of Accumulated Other Comprehensive Loss
Tax effect	152	156
Interest expense	(531)	(542)
Net income	(379)	(386)
Amounts Reclassified from Accumulated Other Comprehensive Loss | Defined benefit pension plan
Reclassification Out Of Accumulated Other Comprehensive Loss
Tax effect	3	51
Net income	(8)	(132)
Amortization of actuarial net loss	$ (11)	$ (183)

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New Authoritative Accounting Guidance (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses decrease	$ 436,898	$ 458,655	$ 362,510	$ 359,202
Adjustment due to adoption of ASUs	6,511,581	6,400,802	5,096,384	5,084,066
Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adjustment due to adoption of ASUs	$ 1,300,980	1,218,445	$ 945,225	$ 883,645
Revision of Prior Period, Accounting Standards Update, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses decrease		(1,400)
Cumulative Effect, Period of Adoption, Adjustment
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Allowance for loan losses decrease		(1,368)
Adjustment due to adoption of ASUs		990
Cumulative Effect, Period of Adoption, Adjustment | Retained Earnings
New Accounting Pronouncements or Change in Accounting Principle [Line Items]
Adjustment due to adoption of ASUs		$ 990

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Fair Value Measurement of Assets and Liabilities - Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Investment securities:
Equity securities	$ 50,152	$ 48,731
Trading debt securities	6,855	13,438
Available for sale debt securities:
Available for sale debt securities	1,259,236	1,261,397
Non-recurring fair value measurements:
Unpaid principal balances of loans held for sale	17,100	17,900
U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities	286,745	279,498
U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	26,352	26,964
Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	152,775	146,811
Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	619,776	629,818
Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	173,588	178,306
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements
Investment securities:
Equity securities	23,635	23,494
Trading debt securities	3,477	3,282
Available for sale debt securities:
Available for sale debt securities	286,745	279,498
Loans held for sale	0	0
Other assets	0	0
Total assets	313,857	306,274
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
Available for sale debt securities:
Available for sale debt securities	286,745	279,498
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	0	0
Foreclosed assets	0	0
Total	0	0
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements
Investment securities:
Equity securities	0	0
Trading debt securities	3,378	10,156
Available for sale debt securities:
Available for sale debt securities	972,491	981,899
Loans held for sale	17,218	18,118
Other assets	446,749	467,127
Total assets	1,439,836	1,477,300
Liabilities
Other liabilities	494,552	607,237
Total liabilities	494,552	607,237
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	26,352	26,964
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	152,775	146,811
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	619,776	629,818
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	173,588	178,306
Significant Other Observable Inputs (Level 2) | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	0	0
Foreclosed assets	0	0
Total	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements
Investment securities:
Equity securities	0	0
Trading debt securities	0	0
Available for sale debt securities:
Available for sale debt securities	0	0
Loans held for sale	0	0
Other assets	0	0
Total assets	0	0
Liabilities
Other liabilities	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	81,267	92,923
Foreclosed assets	1,752	1,937
Total	83,019	94,860
Carrying Amount | Significant Unobservable Inputs (Level 3)
Investment securities:
Equity securities	16,342	15,138
Fair Value | Recurring fair value measurements
Investment securities:
Trading debt securities	6,855	13,438
Available for sale debt securities:
Available for sale debt securities	1,259,236	1,261,397
Loans held for sale	17,218	18,118
Other assets	446,749	467,127
Total assets	1,763,868	1,793,673
Liabilities
Other liabilities	494,552	607,237
Total liabilities	494,552	607,237
Fair Value | Recurring fair value measurements | U.S. Treasury securities
Available for sale debt securities:
Available for sale debt securities	286,745	279,498
Fair Value | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	26,352	26,964
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	152,775	146,811
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	619,776	629,818
Fair Value | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	173,588	178,306
Fair Value | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	81,267	92,923
Foreclosed assets	1,752	1,937
Total	83,019	94,860
Fair Value | Fair Value, Inputs, Level 1, Level 2, and Level 3 | Recurring fair value measurements
Investment securities:
Equity securities	23,635	23,494
Fair Value | Significant Unobservable Inputs (Level 3)
Investment securities:
Equity securities	16,342	15,138
Fair Value | NAV | Recurring fair value measurements
Investment securities:
Equity securities	$ 10,175	$ 10,099

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Fair Value Measurement of Assets and Liabilities - Additional Information (Details) - USD ($) $ in Millions	Mar. 31, 2023	Dec. 31, 2022
Fair Value | Non-recurring fair value measurements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Reported net carrying amount of collateral dependent loans	$ 81.3
Collateral dependent loans amortized cost	140.1
Specific valuation allowance allocations	$ 58.8
Discount adjustment of the appraisals of foreclosed assets	0.00%	0.00%

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Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Assets
Interest bearing deposits with banks	$ 5,260,998	$ 503,622
Equity securities	50,152	48,731
Total held to maturity debt securities	3,400,484	3,329,470
Accrued interest receivable	223,608	196,606
Liabilities
Deposits with stated maturities	11,111,376	9,556,457
U.S. Treasury securities
Assets
Total held to maturity debt securities	66,182	65,889
U.S. government agency securities
Assets
Total held to maturity debt securities	255,640	212,712
Obligations of states and political subdivisions
Assets
Total held to maturity debt securities	452,919	453,195
Residential mortgage-backed securities
Assets
Total held to maturity debt securities	2,525,568	2,495,797
Trust preferred securities
Assets
Total held to maturity debt securities	29,992	31,106
Corporate and other debt securities
Assets
Total held to maturity debt securities	70,183	70,771
Carrying Amount
Assets
Total held to maturity debt securities	3,847,212	3,828,984
Carrying Amount | Level 1
Assets
Cash and due from banks	444,690	444,325
Interest bearing deposits with banks	5,260,998	503,622
Accrued interest receivable	223,608	196,606
Liabilities
Deposits without stated maturities	36,479,540	38,080,457
Short-term borrowings	6,413,056	138,729
Accrued interest payable	85,581	45,617
Carrying Amount | Level 1 | U.S. Treasury securities
Assets
Total held to maturity debt securities	66,747	66,911
Carrying Amount | Level 2
Assets
Federal reserve bank and federal home loan bank stock	547,686	238,056
Liabilities
Deposits with stated maturities	11,111,376	9,556,457
Long-term borrowings	2,197,656	1,543,058
Junior subordinated debentures issued to capital trusts	56,847	56,760
Carrying Amount | Level 2 | U.S. government agency securities
Assets
Total held to maturity debt securities	300,614	260,392
Carrying Amount | Level 2 | Obligations of states and political subdivisions
Assets
Total held to maturity debt securities	473,597	480,298
Carrying Amount | Level 2 | Residential mortgage-backed securities
Assets
Total held to maturity debt securities	2,893,505	2,909,106
Carrying Amount | Level 2 | Trust preferred securities
Assets
Total held to maturity debt securities	37,048	37,043
Carrying Amount | Level 2 | Corporate and other debt securities
Assets
Total held to maturity debt securities	75,701	75,234
Carrying Amount | Level 3
Assets
Equity securities	16,342	15,138
Net loans	48,223,068	46,458,545
Fair Value
Assets
Total held to maturity debt securities	3,400,484	3,329,470
Fair Value | Level 1
Assets
Cash and due from banks	444,690	444,325
Interest bearing deposits with banks	5,260,998	503,622
Accrued interest receivable	223,608	196,606
Liabilities
Deposits without stated maturities	36,479,540	38,080,457
Short-term borrowings	6,392,459	138,729
Accrued interest payable	85,581	45,617
Fair Value | Level 1 | U.S. Treasury securities
Assets
Total held to maturity debt securities	66,182	65,889
Fair Value | Level 2
Assets
Federal reserve bank and federal home loan bank stock	547,686	238,056
Liabilities
Deposits with stated maturities	11,040,582	9,443,253
Long-term borrowings	2,110,305	1,395,991
Junior subordinated debentures issued to capital trusts	55,042	50,923
Fair Value | Level 2 | U.S. government agency securities
Assets
Total held to maturity debt securities	255,640	212,712
Fair Value | Level 2 | Obligations of states and political subdivisions
Assets
Total held to maturity debt securities	452,919	453,195
Fair Value | Level 2 | Residential mortgage-backed securities
Assets
Total held to maturity debt securities	2,525,568	2,495,797
Fair Value | Level 2 | Trust preferred securities
Assets
Total held to maturity debt securities	29,992	31,106
Fair Value | Level 2 | Corporate and other debt securities
Assets
Total held to maturity debt securities	70,183	70,771
Fair Value | Level 3
Assets
Equity securities	16,342	15,138
Net loans	$ 47,389,743	$ 44,910,049

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Investment Securities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2023 USD ($) position	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($) position	Dec. 31, 2021 USD ($)
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 50,152,000		$ 48,731,000
Trading debt securities	6,855,000		$ 13,438,000
Debt securities, trading, realized gain	$ 402,000
Debt securities, trading, realized loss		$ (1,100,000)
Number of security positions in the debt securities available for sale portfolio in an unrealized loss position | position	715		730
Fair value of debt securities available for sale pledged as collateral	$ 870,400,000
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years	8 years 10 months 28 days
Accrued interest on investments available for sale	$ 5,100,000		$ 5,600,000
Accrued interest on securities held to maturity	12,700,000		$ 13,500,000
Provision for credit losses	$ 5,000,000
Impairment loss		0
Number of security positions in the securities held to maturity portfolio in an unrealized loss position | position	766		802
Fair value of investments held to maturity pledged as collateral	$ 2,500,000,000
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years	11 years 8 months 1 day
Allowance for Credit Losses	$ 1,633,000	1,222,000	$ 1,646,000	$ 1,165,000
Provision for credit losses for available for sale and held to maturity securities	$ (13,000)	$ 57,000

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Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,412,007	$ 1,437,911
Gross Unrealized Gains	106	111
Gross Unrealized Losses	(152,877)	(176,625)
Fair Value	1,259,236	1,261,397
U.S. Treasury securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	309,524	308,137
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(22,779)	(28,639)
Fair Value	286,745	279,498
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	28,394	29,494
Gross Unrealized Gains	46	47
Gross Unrealized Losses	(2,088)	(2,577)
Fair Value	26,352	26,964
Obligations of states and state agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	10,649	10,899
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(652)	(493)
Fair Value	9,997	10,406
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	171,219	171,586
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(28,441)	(35,181)
Fair Value	142,778	136,405
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	181,868	182,485
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(29,093)	(35,674)
Fair Value	152,775	146,811
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	699,214	719,868
Gross Unrealized Gains	60	64
Gross Unrealized Losses	(79,498)	(90,114)
Fair Value	619,776	629,818
Corporate and other debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	193,007	197,927
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(19,419)	(19,621)
Fair Value	$ 173,588	$ 178,306

XML

Investment Securities - Age of Unrealized Losses and Fair Value of Related Available for Sale Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Less than 12 Months	$ 558,073	$ 874,061
More than 12 Months	695,069	380,921
Total	1,253,142	1,254,982
Unrealized Losses
Less than 12 Months	(55,449)	(97,008)
More than 12 Months	(97,428)	(79,617)
Total	(152,877)	(176,625)
U.S. Treasury securities
Fair Value
Less than 12 Months	286,745	279,498
More than 12 Months	0	0
Total	286,745	279,498
Unrealized Losses
Less than 12 Months	(22,779)	(28,639)
More than 12 Months	0	0
Total	(22,779)	(28,639)
U.S. government agency securities
Fair Value
Less than 12 Months	12,003	22,831
More than 12 Months	11,371	1,116
Total	23,374	23,947
Unrealized Losses
Less than 12 Months	(1,238)	(2,538)
More than 12 Months	(850)	(39)
Total	(2,088)	(2,577)
Obligations of states and state agencies
Fair Value
Less than 12 Months	2,231	2,943
More than 12 Months	7,766	7,462
Total	9,997	10,405
Unrealized Losses
Less than 12 Months	(17)	(54)
More than 12 Months	(635)	(439)
Total	(652)	(493)
Municipal bonds
Fair Value
Less than 12 Months	114,299	112,029
More than 12 Months	28,229	24,127
Total	142,528	136,156
Unrealized Losses
Less than 12 Months	(20,463)	(26,044)
More than 12 Months	(7,978)	(9,137)
Total	(28,441)	(35,181)
Obligations of states and political subdivisions
Fair Value
Less than 12 Months	116,530	114,972
More than 12 Months	35,995	31,589
Total	152,525	146,561
Unrealized Losses
Less than 12 Months	(20,480)	(26,098)
More than 12 Months	(8,613)	(9,576)
Total	(29,093)	(35,674)
Residential mortgage-backed securities
Fair Value
Less than 12 Months	34,170	311,836
More than 12 Months	582,739	314,834
Total	616,909	626,670
Unrealized Losses
Less than 12 Months	(1,506)	(27,152)
More than 12 Months	(77,992)	(62,962)
Total	(79,498)	(90,114)
Corporate and other debt securities
Fair Value
Less than 12 Months	108,625	144,924
More than 12 Months	64,964	33,382
Total	173,589	178,306
Unrealized Losses
Less than 12 Months	(9,446)	(12,581)
More than 12 Months	(9,973)	(7,040)
Total	$ (19,419)	$ (19,621)

XML

Investment Securities - Contractual Maturities of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year	$ 3,852
Due after one year through five years	282,224
Due after five years through ten years	173,459
Due after ten years	253,258
Residential mortgage-backed securities	699,214
Amortized Cost	1,412,007	$ 1,437,911
Fair Value
Due in one year	3,834
Due after one year through five years	270,503
Due after five years through ten years	154,742
Due after ten years	210,381
Residential mortgage-backed securities	619,776
Total	$ 1,259,236	$ 1,261,397

XML

Investment Securities -Debt Securities, Available-for-Sale, Allowance for Credit Losses (Details) $ in Millions	3 Months Ended
	Mar. 31, 2023 USD ($)
Debt Securities, Available-for-Sale, Excluding Accrued Interest, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 0.0
Provision for credit losses	5.0
Charge-offs	(5.0)
Ending balance	$ 0.0

XML

Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 3,847,212	$ 3,828,984
Gross Unrealized Gains	3,231	2,105
Gross Unrealized Losses	(449,959)	(501,619)
Fair Value	3,400,484	3,329,470
Allowance for Credit Losses	1,633	1,646	$ 1,222	$ 1,165
Net Carrying Value	3,845,579	3,827,338
U.S. Treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	66,747	66,911
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(565)	(1,022)
Fair Value	66,182	65,889
Allowance for Credit Losses	0	0
Net Carrying Value	66,747	66,911
U.S. government agency securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	300,614	260,392
Gross Unrealized Gains	25	0
Gross Unrealized Losses	(44,999)	(47,680)
Fair Value	255,640	212,712
Allowance for Credit Losses	0	0
Net Carrying Value	300,614	260,392
Obligations of states and state agencies
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	96,693	99,238
Gross Unrealized Gains	341	305
Gross Unrealized Losses	(4,149)	(3,869)
Fair Value	92,885	95,674
Allowance for Credit Losses	257	252
Net Carrying Value	96,436	98,986
Municipal bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	376,904	381,060
Gross Unrealized Gains	112	76
Gross Unrealized Losses	(16,982)	(23,615)
Fair Value	360,034	357,521
Allowance for Credit Losses	86	41
Net Carrying Value	376,818	381,019
Obligations of states and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	473,597	480,298
Gross Unrealized Gains	453	381
Gross Unrealized Losses	(21,131)	(27,484)
Fair Value	452,919	453,195
Allowance for Credit Losses	343	293
Net Carrying Value	473,254	480,005
Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,893,505	2,909,106
Gross Unrealized Gains	2,752	1,723
Gross Unrealized Losses	(370,689)	(415,032)
Fair Value	2,525,568	2,495,797
Allowance for Credit Losses	0	0
Net Carrying Value	2,893,505	2,909,106
Trust preferred securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	37,048	37,043
Gross Unrealized Gains	1	1
Gross Unrealized Losses	(7,057)	(5,938)
Fair Value	29,992	31,106
Allowance for Credit Losses	775	888
Net Carrying Value	36,273	36,155
Corporate and other debt securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	75,701	75,234
Gross Unrealized Gains	0	0
Gross Unrealized Losses	(5,518)	(4,463)
Fair Value	70,183	70,771
Allowance for Credit Losses	515	465
Net Carrying Value	$ 75,186	$ 74,769

XML

Investment Securities - Age of Unrealized Losses and Fair Value of Related Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Fair Value
Less than 12 Months	$ 943,824	$ 1,610,100
More than 12 Months	2,066,917	1,492,658
Total	3,010,741	3,102,758
Unrealized Losses
Less than 12 Months	(95,861)	(183,528)
More than 12 Months	(354,098)	(318,091)
Total	(449,959)	(501,619)
U.S. Treasury securities
Fair Value
Less than 12 Months	66,182	65,889
More than 12 Months	0	0
Total	66,182	65,889
Unrealized Losses
Less than 12 Months	(565)	(1,022)
More than 12 Months	0	0
Total	(565)	(1,022)
U.S. government agency securities
Fair Value
Less than 12 Months	211,526	209,863
More than 12 Months	2,925	1,673
Total	214,451	211,536
Unrealized Losses
Less than 12 Months	(44,773)	(47,508)
More than 12 Months	(226)	(172)
Total	(44,999)	(47,680)
Obligations of states and state agencies
Fair Value
Less than 12 Months	20,457	62,443
More than 12 Months	39,627	18,231
Total	60,084	80,674
Unrealized Losses
Less than 12 Months	(789)	(2,020)
More than 12 Months	(3,360)	(1,849)
Total	(4,149)	(3,869)
Municipal bonds
Fair Value
Less than 12 Months	226,278	251,970
More than 12 Months	26,411	15,534
Total	252,689	267,504
Unrealized Losses
Less than 12 Months	(13,671)	(20,457)
More than 12 Months	(3,311)	(3,158)
Total	(16,982)	(23,615)
Obligations of states and political subdivisions
Fair Value
Less than 12 Months	246,735	314,413
More than 12 Months	66,038	33,765
Total	312,773	348,178
Unrealized Losses
Less than 12 Months	(14,460)	(22,477)
More than 12 Months	(6,671)	(5,007)
Total	(21,131)	(27,484)
Residential mortgage-backed securities
Fair Value
Less than 12 Months	381,802	962,690
More than 12 Months	1,944,360	1,413,590
Total	2,326,162	2,376,280
Unrealized Losses
Less than 12 Months	(33,941)	(109,532)
More than 12 Months	(336,748)	(305,500)
Total	(370,689)	(415,032)
Trust preferred securities
Fair Value
Less than 12 Months	0	0
More than 12 Months	28,990	30,105
Total	28,990	30,105
Unrealized Losses
Less than 12 Months	0	0
More than 12 Months	(7,057)	(5,938)
Total	(7,057)	(5,938)
Corporate and other debt securities
Fair Value
Less than 12 Months	37,579	57,245
More than 12 Months	24,604	13,525
Total	62,183	70,770
Unrealized Losses
Less than 12 Months	(2,122)	(2,989)
More than 12 Months	(3,396)	(1,474)
Total	$ (5,518)	$ (4,463)

XML

Investment Securities - Contractual Maturities of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Amortized Cost
Due in one year	$ 63,872
Due after one year through five years	169,205
Due after five years through ten years	96,385
Due after ten years	624,245
Residential mortgage-backed securities	2,893,505
Amortized Cost	3,847,212	$ 3,828,984
Fair Value
Due in one year	63,355
Due after one year through five years	165,906
Due after five years through ten years	92,034
Due after ten years	553,621
Residential mortgage-backed securities	2,525,568
Total	$ 3,400,484	$ 3,329,470

XML

Investment Securities - Amortized Cost of Debt Securities Held to Maturity by External Credit Rating (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	$ 3,847,212	$ 3,828,984
U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	66,747	66,911
U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	300,614	260,392
Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	96,693	99,238
Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	376,904	381,060
Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	473,597	480,298
Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	2,893,505	2,909,106
Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	37,048	37,043
Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	75,701	75,234
AAA/AA/A Rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	3,662,346	3,646,840
AAA/AA/A Rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	66,747	66,911
AAA/AA/A Rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	300,614	260,392
AAA/AA/A Rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	73,278	74,943
AAA/AA/A Rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	328,202	333,488
AAA/AA/A Rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	401,480	408,431
AAA/AA/A Rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	2,893,505	2,909,106
AAA/AA/A Rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
AAA/AA/A Rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	2,000
BBB rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	6,000	6,000
BBB rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	6,000	6,000
Non-investment grade rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,437	5,497
Non-investment grade rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,437	5,497
Non-investment grade rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,437	5,497
Non-investment grade rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	173,429	170,647
Non-rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	17,978	18,798
Non-rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	48,702	47,572
Non-rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	66,680	66,370
Non-rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	37,048	37,043
Non-rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	$ 69,701	$ 67,234

XML

Investment Securities - Debt Securities, Held-to-Maturity, Allowance for Credit Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Debt Securities, Held-to-Maturity, Allowance for Credit Loss [Roll Forward]
Beginning balance	$ 1,646	$ 1,165
(Credit) provision for credit losses	(13)	57
Ending balance	$ 1,633	$ 1,222

XML

Loans and Allowance for Credit Losses for Loans - Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 48,659,966	$ 46,917,200
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	9,043,946	8,804,830
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	30,777,078	29,432,868
Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	27,051,111	25,732,033
Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,725,967	3,700,835
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,486,280	5,364,550
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,352,662	3,314,952
Consumer | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	516,592	503,884
Consumer | Automobile
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,717,141	1,746,225
Consumer | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 1,118,929	$ 1,064,843

XML

Loans and Allowance for Credit Losses for Loans - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non covered loans net of unearned discount and deferred loan fees	$ 125,400,000		$ 120,500,000
Accrued interest	192,600,000		175,900,000
Sales of loans	0	$ 0
TDRs not reported as non-accrual loans			56,500,000
Non-performing TDRs			104,700,000
Specific reserves for loan losses		$ 7,800,000
Other real estate owned	1,200,000		286,000
Allowance for purchase credit deteriorated (PCD) loans	(22,300,000)
Residential real estate properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned	0		0
In formal foreclosure proceedings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential mortgage and consumer loans secured by residential real estate properties	$ 1,500,000		$ 2,600,000

XML

Loans and Allowance for Credit Losses for Loans - Past Due, Non-Accrual and Current Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financing Receivable, Past Due [Line Items]
Loans	$ 48,659,966	$ 46,917,200
Non-Accrual Loans	241,994	269,761
Non-Accrual Loans Without Allowance for Loan Losses	107,747	102,186
Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	342,296	360,649
30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	54,740	43,535
60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	27,770	20,766
90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	17,792	26,587
Current Loans
Financing Receivable, Past Due [Line Items]
Loans	48,317,670	46,556,551
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans	9,043,946	8,804,830
Non-Accrual Loans	78,606	98,881
Non-Accrual Loans Without Allowance for Loan Losses	6,675	5,659
Commercial and industrial | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	132,367	141,642
Commercial and industrial | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	20,716	11,664
Commercial and industrial | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	24,118	12,705
Commercial and industrial | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	8,927	18,392
Commercial and industrial | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	8,911,579	8,663,188
Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans	30,777,078	29,432,868
Non-Accrual Loans	136,587	142,546
Non-Accrual Loans Without Allowance for Loan Losses	82,378	82,186
Commercial real estate | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	156,617	158,633
Commercial real estate | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	13,580	6,638
Commercial real estate | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	3,167
Commercial real estate | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	6,450	6,282
Commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	30,620,461	29,274,235
Commercial real estate | Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans	27,051,111	25,732,033
Non-Accrual Loans	67,938	68,316
Non-Accrual Loans Without Allowance for Loan Losses	66,587	66,066
Commercial real estate | Commercial real estate | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	81,518	80,413
Commercial real estate | Commercial real estate | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	13,580	6,638
Commercial real estate | Commercial real estate | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	3,167
Commercial real estate | Commercial real estate | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	2,292
Commercial real estate | Commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	26,969,593	25,651,620
Commercial real estate | Construction
Financing Receivable, Past Due [Line Items]
Loans	3,725,967	3,700,835
Non-Accrual Loans	68,649	74,230
Non-Accrual Loans Without Allowance for Loan Losses	15,791	16,120
Commercial real estate | Construction | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	75,099	78,220
Commercial real estate | Construction | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate | Construction | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate | Construction | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	6,450	3,990
Commercial real estate | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	3,650,868	3,622,615
Residential mortgage
Financing Receivable, Past Due [Line Items]
Loans	5,486,280	5,364,550
Non-Accrual Loans	23,483	25,160
Non-Accrual Loans Without Allowance for Loan Losses	18,694	14,224
Residential mortgage | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	39,883	46,487
Residential mortgage | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	12,599	16,146
Residential mortgage | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	2,133	3,315
Residential mortgage | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	1,668	1,866
Residential mortgage | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	5,446,397	5,318,063
Consumer
Financing Receivable, Past Due [Line Items]
Loans	3,352,662	3,314,952
Non-Accrual Loans	3,318	3,174
Non-Accrual Loans Without Allowance for Loan Losses	0	117
Consumer | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	13,429	13,887
Consumer | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	7,845	9,087
Consumer | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	1,519	1,579
Consumer | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	747	47
Consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	3,339,233	3,301,065
Consumer | Home equity
Financing Receivable, Past Due [Line Items]
Loans	516,592	503,884
Non-Accrual Loans	2,965	2,810
Non-Accrual Loans Without Allowance for Loan Losses	0	117
Consumer | Home equity | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,712	4,019
Consumer | Home equity | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	412	955
Consumer | Home equity | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	287	254
Consumer | Home equity | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	48	0
Consumer | Home equity | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	512,880	499,865
Consumer | Automobile
Financing Receivable, Past Due [Line Items]
Loans	1,717,141	1,746,225
Non-Accrual Loans	262	271
Non-Accrual Loans Without Allowance for Loan Losses	0	0
Consumer | Automobile | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	5,644	6,876
Consumer | Automobile | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	4,598	5,974
Consumer | Automobile | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	502	630
Consumer | Automobile | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	282	1
Consumer | Automobile | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	1,711,497	1,739,349
Consumer | Other consumer
Financing Receivable, Past Due [Line Items]
Loans	1,118,929	1,064,843
Non-Accrual Loans	91	93
Non-Accrual Loans Without Allowance for Loan Losses	0	0
Consumer | Other consumer | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	4,073	2,992
Consumer | Other consumer | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	2,835	2,158
Consumer | Other consumer | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	730	695
Consumer | Other consumer | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	417	46
Consumer | Other consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	$ 1,114,856	$ 1,061,851

XML

Loans and Allowance for Credit Losses for Loans - Internal Loan Classification Risk by Loan Portfolio Class by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 48,659,966		$ 46,917,200
Gross loan charge-offs
Total	32,573	$ 2,595
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	437,316		1,633,478
Year two, fiscal year before current fiscal year	1,447,484		1,115,331
Year three, two years before current fiscal year	1,028,849		614,019
Year four, three years before current fiscal year	571,285		331,400
Year five, four years before current fiscal year	311,681		258,656
More than five years before current fiscal year	706,171		458,680
Revolving Loans Amortized Cost Basis	4,541,023		4,393,115
Revolving Loans Converted to Term Loans	137		151
Total	9,043,946		8,804,830
Gross loan charge-offs
Total	26,047	1,571
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	435,733		1,600,747
Year two, fiscal year before current fiscal year	1,418,804		1,089,386
Year three, two years before current fiscal year	1,021,874		590,406
Year four, three years before current fiscal year	549,408		322,564
Year five, four years before current fiscal year	304,137		250,031
More than five years before current fiscal year	628,117		386,085
Revolving Loans Amortized Cost Basis	4,450,850		4,307,163
Revolving Loans Converted to Term Loans	130		144
Total	8,809,053		8,546,526
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	1,573		31,557
Year two, fiscal year before current fiscal year	27,386		3,367
Year three, two years before current fiscal year	2,591		19,492
Year four, three years before current fiscal year	19,260		4,732
Year five, four years before current fiscal year	3,658		4,369
More than five years before current fiscal year	7,443		3,558
Revolving Loans Amortized Cost Basis	61,455		51,021
Revolving Loans Converted to Term Loans	7		7
Total	123,373		118,103
Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	10		288
Year two, fiscal year before current fiscal year	517		1,734
Year three, two years before current fiscal year	2,832		4,121
Year four, three years before current fiscal year	2,617		1,412
Year five, four years before current fiscal year	1,203		4,256
More than five years before current fiscal year	6,904		4,879
Revolving Loans Amortized Cost Basis	25,847		31,698
Revolving Loans Converted to Term Loans	0		0
Total	39,930		48,388
Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		886
Year two, fiscal year before current fiscal year	777		20,844
Year three, two years before current fiscal year	1,552		0
Year four, three years before current fiscal year	0		2,692
Year five, four years before current fiscal year	2,683		0
More than five years before current fiscal year	63,707		64,158
Revolving Loans Amortized Cost Basis	2,871		3,233
Revolving Loans Converted to Term Loans	0		0
Total	71,590		91,813
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	30,777,078		29,432,868
Gross loan charge-offs
Total	5,698	$ 173
Commercial real estate | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	1,634,473		6,923,489
Year two, fiscal year before current fiscal year	6,829,589		5,250,609
Year three, two years before current fiscal year	5,283,268		3,339,684
Year four, three years before current fiscal year	3,381,426		2,752,292
Year five, four years before current fiscal year	2,626,510		1,657,775
More than five years before current fiscal year	6,787,666		5,336,045
Revolving Loans Amortized Cost Basis	504,772		468,635
Revolving Loans Converted to Term Loans	3,407		3,504
Total	27,051,111		25,732,033
Commercial real estate | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	1,607,961		6,815,115
Year two, fiscal year before current fiscal year	6,740,087		5,168,127
Year three, two years before current fiscal year	5,201,027		3,246,885
Year four, three years before current fiscal year	3,287,689		2,672,223
Year five, four years before current fiscal year	2,520,271		1,536,327
More than five years before current fiscal year	6,316,475		5,027,128
Revolving Loans Amortized Cost Basis	490,136		452,461
Revolving Loans Converted to Term Loans	3,407		3,504
Total	26,167,053		24,921,770
Commercial real estate | Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	26,512		93,286
Year two, fiscal year before current fiscal year	55,889		48,007
Year three, two years before current fiscal year	46,317		60,169
Year four, three years before current fiscal year	63,647		45,447
Year five, four years before current fiscal year	71,474		62,111
More than five years before current fiscal year	251,353		125,414
Revolving Loans Amortized Cost Basis	6,720		8,188
Revolving Loans Converted to Term Loans	0		0
Total	521,912		442,622
Commercial real estate | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		15,088
Year two, fiscal year before current fiscal year	33,613		34,475
Year three, two years before current fiscal year	35,924		32,630
Year four, three years before current fiscal year	30,090		34,622
Year five, four years before current fiscal year	34,765		59,337
More than five years before current fiscal year	219,838		183,341
Revolving Loans Amortized Cost Basis	7,916		7,986
Revolving Loans Converted to Term Loans	0		0
Total	362,146		367,479
Commercial real estate | Commercial real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year			0
Year two, fiscal year before current fiscal year			0
Year three, two years before current fiscal year			0
Year four, three years before current fiscal year			0
Year five, four years before current fiscal year			0
More than five years before current fiscal year			162
Revolving Loans Amortized Cost Basis			0
Revolving Loans Converted to Term Loans			0
Total			162
Commercial real estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	120,729		955,349
Year two, fiscal year before current fiscal year	936,843		524,647
Year three, two years before current fiscal year	428,172		61,131
Year four, three years before current fiscal year	82,032		23,819
Year five, four years before current fiscal year	16,466		8,676
More than five years before current fiscal year	54,463		51,941
Revolving Loans Amortized Cost Basis	2,087,262		2,075,272
Revolving Loans Converted to Term Loans	0		0
Total	3,725,967		3,700,835
Commercial real estate | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	120,282		942,380
Year two, fiscal year before current fiscal year	928,489		512,046
Year three, two years before current fiscal year	415,212		61,131
Year four, three years before current fiscal year	70,371		22,845
Year five, four years before current fiscal year	15,502		8,676
More than five years before current fiscal year	36,863		20,599
Revolving Loans Amortized Cost Basis	2,079,911		2,040,866
Revolving Loans Converted to Term Loans	0		0
Total	3,666,630		3,608,543
Commercial real estate | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year			0
Year two, fiscal year before current fiscal year			0
Year three, two years before current fiscal year			0
Year four, three years before current fiscal year			0
Year five, four years before current fiscal year			0
More than five years before current fiscal year			0
Revolving Loans Amortized Cost Basis			14,268
Revolving Loans Converted to Term Loans			0
Total			14,268
Commercial real estate | Construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		12,969
Year two, fiscal year before current fiscal year	13		12,601
Year three, two years before current fiscal year	12,290		0
Year four, three years before current fiscal year	0		974
Year five, four years before current fiscal year	964		0
More than five years before current fiscal year	17,600		17,599
Revolving Loans Amortized Cost Basis	7,351		20,138
Revolving Loans Converted to Term Loans	0		0
Total	38,218		64,281
Commercial real estate | Construction | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	447		0
Year two, fiscal year before current fiscal year	8,341		0
Year three, two years before current fiscal year	670		0
Year four, three years before current fiscal year	11,661		0
Year five, four years before current fiscal year	0		0
More than five years before current fiscal year	0		13,743
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term Loans	0		0
Total	21,119		$ 13,743
Commercial and Industrial and Commercial Real Estate
Gross loan charge-offs
2023	0
2022	6,035
2021	20,286
2020	123
2019	72
Prior to 2019	1,636
Revolving Loans Amortized Cost Basis	3,593
Revolving Loans Converted to Term Loans	0
Total	$ 31,745

XML

Loans and Allowance for Credit Losses for Loans - Amortized Cost In Those Loan Classes Based on Payment Activity by Origination Year (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 48,659,966		$ 46,917,200
Gross loan charge-offs
Total	32,573	$ 2,595
90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	17,792		26,587
Residential mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	222,494		1,302,279
Year two, fiscal year before current fiscal year	1,318,845		1,502,819
Year three, two years before current fiscal year	1,523,297		571,607
Year four, three years before current fiscal year	572,064		502,032
Year five, four years before current fiscal year	478,513		340,938
More than five years before current fiscal year	1,304,120		1,078,169
Revolving Loans Amortized Cost Basis	66,947		66,706
Revolving Loans Converted to Term Loans	0		0
Total	5,486,280		5,364,550
Gross loan charge-offs
Total	0	26
Residential mortgage | 90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,668		1,866
Residential mortgage | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	222,494		1,302,279
Year two, fiscal year before current fiscal year	1,317,372		1,502,622
Year three, two years before current fiscal year	1,521,543		571,390
Year four, three years before current fiscal year	572,064		500,197
Year five, four years before current fiscal year	478,014		338,062
More than five years before current fiscal year	1,300,107		1,073,995
Revolving Loans Amortized Cost Basis	66,947		66,706
Revolving Loans Converted to Term Loans	0		0
Total	5,478,541		5,355,251
Residential mortgage | Non-Performing Loans | 90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		0
Year two, fiscal year before current fiscal year	1,473		197
Year three, two years before current fiscal year	1,754		217
Year four, three years before current fiscal year	0		1,835
Year five, four years before current fiscal year	499		2,876
More than five years before current fiscal year	4,013		4,174
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term Loans	0		0
Total	7,739		9,299
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	153,892		795,819
Year two, fiscal year before current fiscal year	757,236		547,709
Year three, two years before current fiscal year	501,826		217,412
Year four, three years before current fiscal year	194,483		178,742
Year five, four years before current fiscal year	156,500		93,100
More than five years before current fiscal year	102,288		74,268
Revolving Loans Amortized Cost Basis	1,447,818		1,368,622
Revolving Loans Converted to Term Loans	38,619		39,280
Total	3,352,662		3,314,952
Gross loan charge-offs
Total	828	$ 825
Consumer | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	7,251		47,084
Year two, fiscal year before current fiscal year	46,566		12,432
Year three, two years before current fiscal year	12,085		4,592
Year four, three years before current fiscal year	4,448		5,024
Year five, four years before current fiscal year	4,891		5,581
More than five years before current fiscal year	18,499		13,007
Revolving Loans Amortized Cost Basis	384,233		376,884
Revolving Loans Converted to Term Loans	38,619		39,280
Total	516,592		503,884
Consumer | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	141,743		724,595
Year two, fiscal year before current fiscal year	687,329		525,133
Year three, two years before current fiscal year	480,685		204,614
Year four, three years before current fiscal year	182,013		166,283
Year five, four years before current fiscal year	144,235		80,113
More than five years before current fiscal year	81,136		45,487
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term Loans	0		0
Total	1,717,141		1,746,225
Consumer | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	4,898		24,140
Year two, fiscal year before current fiscal year	23,341		10,144
Year three, two years before current fiscal year	9,056		8,206
Year four, three years before current fiscal year	8,022		7,435
Year five, four years before current fiscal year	7,374		7,406
More than five years before current fiscal year	2,653		15,774
Revolving Loans Amortized Cost Basis	1,063,585		991,738
Revolving Loans Converted to Term Loans	0		0
Total	1,118,929		1,064,843
Consumer | 90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	747		47
Consumer | 90 Days or More Past Due Loans | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Total	48		0
Consumer | 90 Days or More Past Due Loans | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Total	282		1
Consumer | 90 Days or More Past Due Loans | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	417		46
Consumer | Performing | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	7,251		47,084
Year two, fiscal year before current fiscal year	46,566		12,432
Year three, two years before current fiscal year	12,085		4,592
Year four, three years before current fiscal year	4,448		5,024
Year five, four years before current fiscal year	4,891		5,581
More than five years before current fiscal year	18,499		13,007
Revolving Loans Amortized Cost Basis	383,948		376,608
Revolving Loans Converted to Term Loans	37,984		38,570
Total	515,672		502,898
Consumer | Performing | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	141,743		724,557
Year two, fiscal year before current fiscal year	687,328		525,017
Year three, two years before current fiscal year	480,634		204,578
Year four, three years before current fiscal year	181,994		166,103
Year five, four years before current fiscal year	144,130		80,012
More than five years before current fiscal year	80,995		45,415
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term Loans	0		0
Total	1,716,824		1,745,682
Consumer | Performing | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	4,898		24,140
Year two, fiscal year before current fiscal year	23,313		10,144
Year three, two years before current fiscal year	9,056		8,206
Year four, three years before current fiscal year	8,020		7,435
Year five, four years before current fiscal year	7,374		7,406
More than five years before current fiscal year	2,615		15,736
Revolving Loans Amortized Cost Basis	1,063,356		991,737
Revolving Loans Converted to Term Loans	0		0
Total	1,118,632		1,064,804
Consumer | Non-Performing Loans | 90 Days or More Past Due Loans | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		0
Year two, fiscal year before current fiscal year	0		0
Year three, two years before current fiscal year	0		0
Year four, three years before current fiscal year	0		0
Year five, four years before current fiscal year	0		0
More than five years before current fiscal year	0		0
Revolving Loans Amortized Cost Basis	285		276
Revolving Loans Converted to Term Loans	635		710
Total	920		986
Consumer | Non-Performing Loans | 90 Days or More Past Due Loans | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		38
Year two, fiscal year before current fiscal year	1		116
Year three, two years before current fiscal year	51		36
Year four, three years before current fiscal year	19		180
Year five, four years before current fiscal year	105		101
More than five years before current fiscal year	141		72
Revolving Loans Amortized Cost Basis	0		0
Revolving Loans Converted to Term Loans	0		0
Total	317		543
Consumer | Non-Performing Loans | 90 Days or More Past Due Loans | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0		0
Year two, fiscal year before current fiscal year	28		0
Year three, two years before current fiscal year	0		0
Year four, three years before current fiscal year	2		0
Year five, four years before current fiscal year	0		0
More than five years before current fiscal year	38		38
Revolving Loans Amortized Cost Basis	229		1
Revolving Loans Converted to Term Loans	0		0
Total	297		$ 39
Residential Mortgage and Consumer
Gross loan charge-offs
2023	0
2022	146
2021	109
2020	4
2019	170
Prior to 2019	388
Revolving Loans Amortized Cost Basis	11
Revolving Loans Converted to Term Loans	0
Total	$ 828

XML

Loans and Allowance for Credit Losses for Loans - Financing Receivable, Modified (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($)
Financing Receivable, Modified [Line Items]
Total	$ 48,405
Term extension
Financing Receivable, Modified [Line Items]
Total	47,882
Term extension and interest rate reduction
Financing Receivable, Modified [Line Items]
Total	523
Commercial and industrial
Financing Receivable, Modified [Line Items]
Total	1,804
Commercial and industrial | Term extension
Financing Receivable, Modified [Line Items]
Total	1,281
Commercial and industrial | Term extension and interest rate reduction
Financing Receivable, Modified [Line Items]
Total	523
Commercial Real Estate
Financing Receivable, Modified [Line Items]
Total	46,328
Commercial Real Estate | Term extension
Financing Receivable, Modified [Line Items]
Total	46,328
Commercial Real Estate | Term extension and interest rate reduction
Financing Receivable, Modified [Line Items]
Total	0
Residential mortgage
Financing Receivable, Modified [Line Items]
Total	213
Residential mortgage | Term extension
Financing Receivable, Modified [Line Items]
Total	213
Residential mortgage | Term extension and interest rate reduction
Financing Receivable, Modified [Line Items]
Total	0
Consumer
Financing Receivable, Modified [Line Items]
Total	60
Consumer | Term extension
Financing Receivable, Modified [Line Items]
Total	60
Consumer | Term extension and interest rate reduction
Financing Receivable, Modified [Line Items]
Total	$ 0

XML

Loans and Allowance for Credit Losses for Loans - Financing Effect of Loan Modification (Details)	3 Months Ended
	Mar. 31, 2023
Commercial and industrial | Term extension
Troubled Debt Restructurings
Weighted average term increase from modification	12 months
Commercial and industrial | Term extension and interest rate reduction
Troubled Debt Restructurings
Weighted average term increase from modification	12 months
Residential mortgage
Troubled Debt Restructurings
Weighted average term increase from modification	12 months
Consumer
Troubled Debt Restructurings
Weighted average term increase from modification	60 months
Maximum | Commercial and industrial
Troubled Debt Restructurings
Weighted average contractual interest rate	2.11%
Maximum | Commercial Real Estate
Troubled Debt Restructurings
Weighted average term increase from modification	36 months
Minimum | Commercial and industrial
Troubled Debt Restructurings
Weighted average contractual interest rate	1.00%
Minimum | Commercial Real Estate
Troubled Debt Restructurings
Weighted average term increase from modification	6 months

XML

Loans and Allowance for Credit Losses for Loans - Pre-Modification and Post-Modification (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) contract
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	14
Pre-Modification Outstanding Recorded Investment	$ 15,065
Post-Modification Outstanding Recorded Investment	$ 15,030
Days past due to place on non-accrual status	90 days
Number of Contracts | contract	4
Recorded Investment	$ 19,449
Commercial and industrial
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	11
Pre-Modification Outstanding Recorded Investment	$ 9,684
Post-Modification Outstanding Recorded Investment	$ 9,662
Number of Contracts | contract	2
Recorded Investment	$ 1,850
Commercial Real Estate | Commercial real estate
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	2
Pre-Modification Outstanding Recorded Investment	$ 5,260
Post-Modification Outstanding Recorded Investment	$ 5,251
Commercial Real Estate | Construction
Troubled Debt Restructurings
Number of Contracts | contract	2
Recorded Investment	$ 17,599
Residential mortgage
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	1
Pre-Modification Outstanding Recorded Investment	$ 121
Post-Modification Outstanding Recorded Investment	$ 117

XML

Loans and Allowance for Credit Losses for Loans - Summary of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 48,659,966	$ 46,917,200
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	9,043,946	8,804,830
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	30,777,078	29,432,868
Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	27,051,111	25,732,033
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,486,280	5,364,550
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	3,352,662	3,314,952
Consumer | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	516,592	503,884
Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	238,067	258,692
Collateral Pledged | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	74,481	94,433
Collateral Pledged | Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	144,892	130,199
Collateral Pledged | Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	18,694	33,865
Collateral Pledged | Consumer | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 0	$ 195

XML

Loans and Allowance for Credit Losses for Loans - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Receivables [Abstract]
Allowance for loan losses	$ 436,898	$ 458,655	$ 362,510	$ 359,202
Allowance for unfunded credit commitments	24,071	24,600
Total allowance for credit losses for loans	$ 460,969	$ 483,255

XML

Loans and Allowance for Credit Losses for Loans - Summary of Provision for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Receivables [Abstract]
Provision (credit) for loan losses	$ 9,979	$ 3,258
(Credit) provision for unfunded credit commitments	(529)	242
Total provision for credit losses for loans	$ 9,450	$ 3,500

XML

Loans and Allowance for Credit Losses for Loans - Summary of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Allowance for loan losses:
Beginning balance	$ 458,655	$ 359,202
Loans charged-off	(32,573)	(2,595)
Charged-off loans recovered	2,205	2,645
Net (charge-offs) recoveries	(30,368)	50
Provision (credit) for loan losses	9,979	3,258
Ending balance	436,898	362,510
Cumulative Effect, Period of Adoption, Adjustment
Allowance for loan losses:
Beginning balance	(1,368)
Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for loan losses:
Beginning balance	457,287
Commercial and industrial
Allowance for loan losses:
Beginning balance	139,941	103,090
Loans charged-off	(26,047)	(1,571)
Charged-off loans recovered	1,399	824
Net (charge-offs) recoveries	(24,648)	(747)
Provision (credit) for loan losses	13,438	(1,140)
Ending balance	127,992	101,203
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjustment
Allowance for loan losses:
Beginning balance	(739)
Commercial and industrial | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for loan losses:
Beginning balance	139,202
Commercial Real Estate
Allowance for loan losses:
Beginning balance	259,408	217,490
Loans charged-off	(5,698)	(173)
Charged-off loans recovered	24	107
Net (charge-offs) recoveries	(5,674)	(66)
Provision (credit) for loan losses	(9,813)	2,525
Ending balance	243,332	219,949
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjustment
Allowance for loan losses:
Beginning balance	(589)
Commercial Real Estate | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for loan losses:
Beginning balance	258,819
Residential Mortgage
Allowance for loan losses:
Beginning balance	39,020	25,120
Loans charged-off	0	(26)
Charged-off loans recovered	21	457
Net (charge-offs) recoveries	21	431
Provision (credit) for loan losses	2,679	2,638
Ending balance	41,708	28,189
Residential Mortgage | Cumulative Effect, Period of Adoption, Adjustment
Allowance for loan losses:
Beginning balance	(12)
Residential Mortgage | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for loan losses:
Beginning balance	39,008
Consumer
Allowance for loan losses:
Beginning balance	20,286	13,502
Loans charged-off	(828)	(825)
Charged-off loans recovered	761	1,257
Net (charge-offs) recoveries	(67)	432
Provision (credit) for loan losses	3,675	(765)
Ending balance	23,866	$ 13,169
Consumer | Cumulative Effect, Period of Adoption, Adjustment
Allowance for loan losses:
Beginning balance	(28)
Consumer | Cumulative Effect, Period of Adoption, Adjusted Balance
Allowance for loan losses:
Beginning balance	$ 20,258

XML

Loans and Allowance for Credit Losses for Loans - Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Allowance Measurement Methodology (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	$ 59,630	$ 86,594
Collectively evaluated for credit losses	377,268	372,061
Total	436,898	458,655	$ 362,510	$ 359,202
Individually evaluated for credit losses	238,474	374,093
Collectively evaluated for credit losses	48,421,492	46,543,107
Total	48,659,966	46,917,200
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	46,151	68,745
Collectively evaluated for credit losses	81,841	71,196
Total	127,992	139,941	101,203	103,090
Individually evaluated for credit losses	74,625	117,644
Collectively evaluated for credit losses	8,969,321	8,687,186
Total	9,043,946	8,804,830
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	13,445	13,174
Collectively evaluated for credit losses	229,887	246,234
Total	243,332	259,408	219,949	217,490
Individually evaluated for credit losses	144,892	213,522
Collectively evaluated for credit losses	30,632,186	29,219,346
Total	30,777,078	29,432,868
Residential Mortgage
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	34	337
Collectively evaluated for credit losses	41,674	38,683
Total	41,708	39,020	28,189	25,120
Individually evaluated for credit losses	12,028	28,869
Collectively evaluated for credit losses	5,474,252	5,335,681
Total	5,486,280	5,364,550
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	0	4,338
Collectively evaluated for credit losses	23,866	15,948
Total	23,866	20,286	$ 13,169	$ 13,502
Individually evaluated for credit losses	6,929	14,058
Collectively evaluated for credit losses	3,345,733	3,300,894
Total	$ 3,352,662	$ 3,314,952

XML

Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Goodwill [Line Items]
Goodwill	$ 1,868,936	$ 1,868,936
Consumer Banking
Goodwill [Line Items]
Goodwill	284,873	284,873
Commercial Banking
Goodwill [Line Items]
Goodwill	1,534,296	1,534,296
Wealth Management | Consumer Banking
Goodwill [Line Items]
Goodwill	$ 49,767	$ 49,767

XML

Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill impairment	$ 0	$ 0
Net impairment (net recovery)	0
Amortization of other intangible assets	10,519,000	4,437,000
Core Deposits and Other
Finite-Lived Intangible Assets [Line Items]
Impairment of core deposits and other intangibles	$ 0	$ 0
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period, years	10 years
Other
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period, years	13 years 4 months 24 days

XML

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 386,190	$ 394,912
Accumulated Amortization	(199,019)	(197,456)
Net Intangible Assets	187,171	197,456
Loan servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	120,177	119,943
Accumulated Amortization	(97,332)	(96,136)
Net Intangible Assets	22,845	23,807
Core deposits
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	215,620	223,670
Accumulated Amortization	(92,048)	(92,486)
Net Intangible Assets	123,572	131,184
Other
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	50,393	51,299
Accumulated Amortization	(9,639)	(8,834)
Net Intangible Assets	$ 40,754	$ 42,465

XML

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2023 USD ($)
Loan Servicing Rights
Finite-Lived Intangible Assets [Line Items]
2023	$ 2,365
2024	2,813
2025	2,461
2026	2,143
2027	1,861
Core Deposits
Finite-Lived Intangible Assets [Line Items]
2023	21,135
2024	24,897
2025	21,048
2026	17,223
2027	13,544
Other
Finite-Lived Intangible Assets [Line Items]
2023	4,810
2024	5,951
2025	5,380
2026	4,805
2027	$ 4,205

XML

Deposits - Additional Information (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
Time deposits, $250,000 or more	$ 1,700,000		$ 1,800,000
Interest expense on time deposits of $250 thousand or more	$ 2,800	$ 107

XML

Deposits - Scheduled Maturities of Time Deposits (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Financial Services, Banking and Thrift [Abstract]
2023	$ 6,859,391
2024	2,578,459
2025	61,015
2026	120,032
2027	45,077
Thereafter	1,447,402
Total time deposits	$ 11,111,376	$ 9,556,457

XML

Borrowed Funds - Short-Term Borrowings (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Short-Term Debt [Line Items]
Total short-term borrowings	$ 6,413,056	$ 138,729
Short-term borrowings
Short-Term Debt [Line Items]
FHLB advances	6,300,000	24,035
Securities sold under agreements to repurchase	113,056	114,694
Total short-term borrowings	$ 6,413,056	$ 138,729

XML

Borrowed Funds - Additional Information (Details) - USD ($)	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
Weighted average interest rate for short-term borrowings	5.18%	1.60%
FHLB advances, callable for early redemption		$ 0
Federal Home Loan Bank Advances
Debt Instrument [Line Items]
Weighted average interest rate for long-term borrowings	3.66%	1.88%

XML

Borrowed Funds - Schedule of Long-Term Borrowings (Details) - Long-term borrowings - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Debt Instrument [Line Items]
FHLB advances, net	$ 1,438,361	$ 788,419
Subordinated debt, net	759,295	754,639
Total long-term borrowings	2,197,656	1,543,058
Unamortized prepayment penalties and other purchase accounting adjustments	361	419
Deferred issuance costs	$ 6,500	$ 6,900

XML

Borrowed Funds - Schedule of FHLB Repayment (Details) - Long-term borrowings $ in Thousands	Mar. 31, 2023 USD ($)
Debt Instrument [Line Items]
2024	$ 165,000
2025	273,000
2026	350,000
2027	425,000
Thereafter	225,000
Total long-term FHLB advances	$ 1,438,000

XML

Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022	Apr. 25, 2023
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense	$ 8.1	$ 7.3
Stock-based compensation amortization expense unrecognized	$ 56.6
Average remaining vesting period (in years)	2 years 2 months 12 days
Subsequent Event
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares authorized (in shares)			14,500
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted during the period (in shares)	1,500	1,200
Award vesting period (in years)	3 years
Average grant date fair value (usd per share)	$ 11.91	$ 14.05
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Average grant date fair value (usd per share)	$ 12.80	$ 14.82
Performance-Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted during the period (in shares)	723	567

XML

Derivative Instruments and Hedging Activities - Additional Information (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2023 USD ($) swap	Mar. 31, 2022 USD ($)	Dec. 31, 2022 USD ($)
Derivatives not designated as hedging instruments:
Derivative [Line Items]
Notional amount	$ 17,198,430		$ 16,058,364
Interest rate swaps
Derivative [Line Items]
Number of instruments held | swap	6
Notional amount	$ 600,000
Accumulated net after-tax gains related to effective cash flow hedges	5,400		2,200
Reclassified to interest expense	2,100
Interest rate swaps | Fair value hedge interest rate swaps | Noninterest Income
Derivative [Line Items]
Fee income related to derivative interest rate swaps executed with commercial loan customers	$ 9,900	$ 14,400
Interest rate swaps | Derivatives not designated as hedging instruments:
Derivative [Line Items]
Number of instruments held | swap	33
Notional amount	$ 15,298,441		$ 14,753,330
Interest rate swaps | Derivatives not designated as hedging instruments: | Fair value hedge interest rate swaps
Derivative [Line Items]
Number of instruments held | swap	2
Notional amount	$ 10,400
Interest rate swaps | Derivatives not designated as hedging instruments: | Risk Participation Agreement
Derivative [Line Items]
Notional amount	$ 409,200

XML

Derivative Instruments and Hedging Activities - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Interest rate swaps
Derivative [Line Items]
Other Assets	$ 0	$ 0
Other Liabilities	485,366	594,476
Interest rate swaps
Derivative [Line Items]
Notional Amount	600,000
Derivatives designated as hedging instruments:
Derivative [Line Items]
Notional Amount	900,000	900,000
Derivatives designated as hedging instruments: | Other Assets
Derivative [Line Items]
Other Assets	7,866	3,971
Derivatives designated as hedging instruments: | Other Liabilities
Derivative [Line Items]
Other Liabilities	27,858	29,798
Derivatives designated as hedging instruments: | Cash flow hedge interest rate swaps | Interest rate swaps
Derivative [Line Items]
Notional Amount	600,000	600,000
Derivatives designated as hedging instruments: | Cash flow hedge interest rate swaps | Interest rate swaps | Other Assets
Derivative [Line Items]
Other Assets	7,866	3,971
Derivatives designated as hedging instruments: | Cash flow hedge interest rate swaps | Interest rate swaps | Other Liabilities
Derivative [Line Items]
Other Liabilities	0	4
Derivatives designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps
Derivative [Line Items]
Notional Amount	300,000	300,000
Derivatives designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps | Other Assets
Derivative [Line Items]
Other Assets	0	0
Derivatives designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps | Other Liabilities
Derivative [Line Items]
Other Liabilities	27,858	29,794
Derivatives not designated as hedging instruments:
Derivative [Line Items]
Notional Amount	17,198,430	16,058,364
Derivatives not designated as hedging instruments: | Other Assets
Derivative [Line Items]
Other Assets	438,883	463,156
Derivatives not designated as hedging instruments: | Other Liabilities
Derivative [Line Items]
Other Liabilities	466,694	577,439
Derivatives not designated as hedging instruments: | Interest rate swaps
Derivative [Line Items]
Notional Amount	15,298,441	14,753,330
Derivatives not designated as hedging instruments: | Interest rate swaps | Other Assets
Derivative [Line Items]
Other Assets	429,195	449,280
Derivatives not designated as hedging instruments: | Interest rate swaps | Other Liabilities
Derivative [Line Items]
Other Liabilities	457,508	564,678
Derivatives not designated as hedging instruments: | Foreign currency derivatives
Derivative [Line Items]
Notional Amount	1,848,883	1,273,735
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other Assets
Derivative [Line Items]
Other Assets	9,540	13,709
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other Liabilities
Derivative [Line Items]
Other Liabilities	8,944	12,604
Derivatives not designated as hedging instruments: | Mortgage banking derivatives
Derivative [Line Items]
Notional Amount	51,106	31,299
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | Other Assets
Derivative [Line Items]
Other Assets	148	167
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | Other Liabilities
Derivative [Line Items]
Other Liabilities	242	$ 157
Derivatives not designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 10,400

XML

Derivative Instruments and Hedging Activities - Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
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	$ (284,210)	$ (22,789)
Amount of gain recognized in other comprehensive loss	3,898	320
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	$ (531)	$ (542)

XML

Derivative Instruments and Hedging Activities - Gains (Losses) on Interest Rate Derivatives Designated as Fair Value Hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items]
Gain (loss) related to hedged loans	$ (4,219)	$ 14,696
Fair value hedge interest rate swaps | Interest expense | Derivative - interest rate swap:
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items]
Gain (loss) related to derivative interest rate swaps	4,692	530
Fair value hedge interest rate swaps | Interest expense | Hedged item - subordinated debt | Derivatives designated as hedging instruments
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items]
Gain (loss) related to hedged loans	$ (4,772)	$ (530)

XML

Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Hedges (Details) - Derivative - interest rate swap: - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Derivative [Line Items]
Deferred issuance costs	$ 2,600	$ 2,800
Fair value hedge interest rate swaps | Derivatives designated as hedging instruments:
Derivative [Line Items]
Net Carrying Amount of the Hedged Liability *	272,051	267,076
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability	$ (25,360)	$ (30,132)

XML

Derivative Instruments and Hedging Activities - Net (Gains) Losses Related to Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$ 208	$ (2,797)

XML

Balance Sheet Offsetting (Details) - Interest rate swaps - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Offsetting Assets
Gross Amounts Recognized	$ 437,061	$ 453,251
Gross Amounts Offset	0	0
Net Amounts Presented	437,061	453,251
Financial Instruments	30,473	12,766
Cash Collateral	(301,740)	(342,480)
Net Amount	165,794	123,537
Offsetting Liabilities
Gross Amounts Recognized	485,366	594,476
Gross Amounts Offset	0	0
Net Amounts Presented	485,366	594,476
Financial Instruments	(30,473)	(12,766)
Cash Collateral	(681)	(432)
Net Amount	$ 454,212	$ 581,278

XML

Tax Credit Investments - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2023	Dec. 31, 2022
Other Assets
Other Assets:
Affordable housing tax credit investments, net	$ 22,813	$ 24,198
Other tax credit investments, net	53,812	56,551
Total tax credit investments, net	76,625	80,749
Other Liabilities:
Other Liabilities:
Unfunded affordable housing tax credit commitments	1,338	1,338
Total unfunded tax credit commitments	$ 1,338	$ 1,338

XML

Tax Credit Investments - Income Statement Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$ 1,459	$ 744
Other tax credit investment credits and tax benefits	3,221	2,551
Total reduction in income tax expense	4,680	3,295
Non-Interest Expenses
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	937	415
Affordable housing tax credit investment impairment losses	448	262
Other tax credit investment losses	6	309
Other tax credit investment impairment losses	2,862	1,910
Total amortization of tax credit investments recorded in non-interest expense	$ 4,253	$ 2,896

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Operating Segments - Schedule of Financial Data for Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2023	Mar. 31, 2022
Segment Reporting Information [Line Items]
Average interest earning assets	$ 55,362,790	$ 40,283,048
Interest income	720,230	340,458
Interest expense	284,210	22,789
Net interest income	436,020	317,669
Provision for credit losses	14,437	3,557
Net Interest Income After Provision for Credit Losses	421,583	314,112
Non-interest income	54,299	39,270
Non-interest expense	272,166	197,340
Internal transfer expense (income)	0	0
Income Before Income Taxes	$ 203,716	$ 156,042
Return on average interest earning assets (pre-tax)	1.47%	1.55%
Consumer Banking | Operating Segments
Segment Reporting Information [Line Items]
Average interest earning assets	$ 8,768,482	$ 7,638,942
Interest income	85,316	59,459
Interest expense	43,006	3,207
Net interest income	42,310	56,252
Provision for credit losses	6,444	1,873
Net Interest Income After Provision for Credit Losses	35,866	54,379
Non-interest income	14,290	13,817
Non-interest expense	18,249	16,568
Internal transfer expense (income)	30,883	28,647
Income Before Income Taxes	$ 1,024	$ 22,981
Return on average interest earning assets (pre-tax)	0.05%	1.20%
Commercial Banking | Operating Segments
Segment Reporting Information [Line Items]
Average interest earning assets	$ 39,090,889	$ 26,984,460
Interest income	569,910	257,906
Interest expense	191,723	11,327
Net interest income	378,187	246,579
Provision for credit losses	3,006	1,627
Net Interest Income After Provision for Credit Losses	375,181	244,952
Non-interest income	15,747	16,880
Non-interest expense	35,723	25,085
Internal transfer expense (income)	131,595	99,916
Income Before Income Taxes	$ 223,610	$ 136,831
Return on average interest earning assets (pre-tax)	2.29%	2.03%
Treasury and Corporate Other | Treasury and Corporate Other
Segment Reporting Information [Line Items]
Average interest earning assets	$ 7,503,419	$ 5,659,646
Interest income	65,004	23,093
Interest expense	49,481	8,255
Net interest income	15,523	14,838
Provision for credit losses	4,987	57
Net Interest Income After Provision for Credit Losses	10,536	14,781
Non-interest income	24,262	8,573
Non-interest expense	218,194	155,687
Internal transfer expense (income)	(162,478)	(128,563)
Income Before Income Taxes	$ (20,918)	$ (3,770)
Return on average interest earning assets (pre-tax)	(1.12%)	(0.27%)