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