Borrowed Funds

9 Months Ended

Sep. 30, 2023

Debt Disclosure [Abstract]

Borrowed Funds

Borrowed Funds

Short-Term Borrowings

Short-term borrowings at September 30, 2023 and December 31, 2022 consisted of the following:

	September 30, 2023		December 31, 2022
	(in thousands)
FHLB advances	$	—	$	24,035
Securities sold under agreements to repurchase	89,802		114,694
Total short-term borrowings	$	89,802	$	138,729

The weighted average interest rate for short-term FHLB advances was 1.60 percent at December 31, 2022.

Long-Term Borrowings

Long-term borrowings at September 30, 2023 and December 31, 2022 consisted of the following:

	September 30, 2023		December 31, 2022
	(in thousands)
FHLB advances, net (1)	$	1,688,260	$	788,419
Subordinated debt, net (2)	630,034		754,639
Total long-term borrowings	$	2,318,294	$	1,543,058

(1)	FHLB advances are presented net of unamortized premiums totaling $260 thousand and $419 thousand at September 30, 2023 and December 31, 2022, respectively.
(2)	Subordinated debt is presented net of unamortized debt issuance costs totaling $5.6 million and $6.9 million at September 30, 2023 and December 31, 2022, respectively.

FHLB Advances. Long-term FHLB advances had a weighted average interest rate of 3.75 percent and 1.88 percent at September 30, 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 September 30, 2023 are scheduled for contractual balance repayments as follows:

Year	Amount
	(in thousands)
2024	$	165,000
2025	273,000
2026	350,000
2027	675,000
Thereafter	225,000
Total long-term FHLB advances	$	1,688,000

None of the FHLB advances reported in the table above are callable for early redemption by the FHLB during the next 12 months.

Subordinated debt. On September 27, 2023, Valley repaid $125.0 million of 5.125 percent matured subordinated notes issued in September 2013. There were no new issuances of the subordinated debt during the nine months ended September 30, 2023. See Note 10 in Valley’s Annual Report on Form 10-K for the year ended December 31, 2022 for details on the remaining outstanding subordinated debt at September 30, 2023.