Leases

12 Months Ended

Dec. 31, 2023

Leases [Abstract]

Leases

LEASES (Note 6)

The following table presents the components of the ROU assets and lease liabilities in the consolidated statements of financial condition by lease type at December 31, 2023 and 2022.

	December 31,
	2023		2022
	(in thousands)
ROU assets:
Operating leases	$	343,442	$	306,317
Finance leases	19		35
Total	$	343,461	$	306,352
Lease liabilities:
Operating leases	$	403,766	$	358,851
Finance leases	15		33
Total	$	403,781	$	358,884

During the second quarter 2023, Valley recognized an operating lease ROU asset and related lease liability totaling $58.3 million and $66.4 million, respectively, related to its new headquarters located in Morristown, New Jersey. The ROU asset was reduced by construction allowance incentives totaling $8.2 million, which are amortized over the lease term.

The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Finance lease cost:
Amortization of ROU assets	$	16	$	379	$	378
Interest on lease liabilities	—		30		91
Operating lease cost	48,241		42,268		34,842
Short-term lease cost	1,930		874		700
Variable lease cost	177		4,647		3,417
Sublease income	(3,303)		(2,982)		(3,044)
Total lease cost (primarily included in net occupancy expense)	$	47,061	$	45,216	$	36,384

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49,007	$	43,768	$	35,173
Operating cash flows from finance leases	—		30		91
Financing cash flows from finance leases	18		745		681

The following table presents supplemental information related to leases at December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term
Operating leases	12.5 years		10.8 years
Finance leases	2.6 years		2.3 years
Weighted-average discount rate
Operating leases	3.76	%	3.29	%
Finance leases	1.49	%	1.39	%

The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2023:

	Lessor		Lessee
	Direct Financing and Sales-Type Leases		Operating Leases		Finance Leases
	(in thousands)
2024	$	272,724	$	50,526	$	7
2025	225,289		48,409		6
2026	177,931		49,440		2
2027	113,326		44,327		1
2028	58,080		42,555		—
Thereafter	29,681		287,105		—
Total lease payments	877,032		522,362		16
Less: present value discount	(79,583)		(118,596)		(1)
Total	$	797,449	$	403,766	$	15

The total net investment in direct financing and sales-type leases was $797.4 million and $863.8 million at December 31, 2023 and 2022, respectively, comprised of $793.3 million and $859.3 million in lease receivables and $4.1 million and $4.5 million in non-guaranteed residuals, respectively. Total lease income was $40.1 million, $34.4 million and $28.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Leases

LEASES (Note 6)

The following table presents the components of the ROU assets and lease liabilities in the consolidated statements of financial condition by lease type at December 31, 2023 and 2022.

	December 31,
	2023		2022
	(in thousands)
ROU assets:
Operating leases	$	343,442	$	306,317
Finance leases	19		35
Total	$	343,461	$	306,352
Lease liabilities:
Operating leases	$	403,766	$	358,851
Finance leases	15		33
Total	$	403,781	$	358,884

During the second quarter 2023, Valley recognized an operating lease ROU asset and related lease liability totaling $58.3 million and $66.4 million, respectively, related to its new headquarters located in Morristown, New Jersey. The ROU asset was reduced by construction allowance incentives totaling $8.2 million, which are amortized over the lease term.

The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Finance lease cost:
Amortization of ROU assets	$	16	$	379	$	378
Interest on lease liabilities	—		30		91
Operating lease cost	48,241		42,268		34,842
Short-term lease cost	1,930		874		700
Variable lease cost	177		4,647		3,417
Sublease income	(3,303)		(2,982)		(3,044)
Total lease cost (primarily included in net occupancy expense)	$	47,061	$	45,216	$	36,384

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49,007	$	43,768	$	35,173
Operating cash flows from finance leases	—		30		91
Financing cash flows from finance leases	18		745		681

The following table presents supplemental information related to leases at December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term
Operating leases	12.5 years		10.8 years
Finance leases	2.6 years		2.3 years
Weighted-average discount rate
Operating leases	3.76	%	3.29	%
Finance leases	1.49	%	1.39	%

The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2023:

	Lessor		Lessee
	Direct Financing and Sales-Type Leases		Operating Leases		Finance Leases
	(in thousands)
2024	$	272,724	$	50,526	$	7
2025	225,289		48,409		6
2026	177,931		49,440		2
2027	113,326		44,327		1
2028	58,080		42,555		—
Thereafter	29,681		287,105		—
Total lease payments	877,032		522,362		16
Less: present value discount	(79,583)		(118,596)		(1)
Total	$	797,449	$	403,766	$	15

The total net investment in direct financing and sales-type leases was $797.4 million and $863.8 million at December 31, 2023 and 2022, respectively, comprised of $793.3 million and $859.3 million in lease receivables and $4.1 million and $4.5 million in non-guaranteed residuals, respectively. Total lease income was $40.1 million, $34.4 million and $28.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Leases

LEASES (Note 6)

The following table presents the components of the ROU assets and lease liabilities in the consolidated statements of financial condition by lease type at December 31, 2023 and 2022.

	December 31,
	2023		2022
	(in thousands)
ROU assets:
Operating leases	$	343,442	$	306,317
Finance leases	19		35
Total	$	343,461	$	306,352
Lease liabilities:
Operating leases	$	403,766	$	358,851
Finance leases	15		33
Total	$	403,781	$	358,884

During the second quarter 2023, Valley recognized an operating lease ROU asset and related lease liability totaling $58.3 million and $66.4 million, respectively, related to its new headquarters located in Morristown, New Jersey. The ROU asset was reduced by construction allowance incentives totaling $8.2 million, which are amortized over the lease term.

The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Finance lease cost:
Amortization of ROU assets	$	16	$	379	$	378
Interest on lease liabilities	—		30		91
Operating lease cost	48,241		42,268		34,842
Short-term lease cost	1,930		874		700
Variable lease cost	177		4,647		3,417
Sublease income	(3,303)		(2,982)		(3,044)
Total lease cost (primarily included in net occupancy expense)	$	47,061	$	45,216	$	36,384

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49,007	$	43,768	$	35,173
Operating cash flows from finance leases	—		30		91
Financing cash flows from finance leases	18		745		681

The following table presents supplemental information related to leases at December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term
Operating leases	12.5 years		10.8 years
Finance leases	2.6 years		2.3 years
Weighted-average discount rate
Operating leases	3.76	%	3.29	%
Finance leases	1.49	%	1.39	%

The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2023:

	Lessor		Lessee
	Direct Financing and Sales-Type Leases		Operating Leases		Finance Leases
	(in thousands)
2024	$	272,724	$	50,526	$	7
2025	225,289		48,409		6
2026	177,931		49,440		2
2027	113,326		44,327		1
2028	58,080		42,555		—
Thereafter	29,681		287,105		—
Total lease payments	877,032		522,362		16
Less: present value discount	(79,583)		(118,596)		(1)
Total	$	797,449	$	403,766	$	15

The total net investment in direct financing and sales-type leases was $797.4 million and $863.8 million at December 31, 2023 and 2022, respectively, comprised of $793.3 million and $859.3 million in lease receivables and $4.1 million and $4.5 million in non-guaranteed residuals, respectively. Total lease income was $40.1 million, $34.4 million and $28.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Leases

LEASES (Note 6)

The following table presents the components of the ROU assets and lease liabilities in the consolidated statements of financial condition by lease type at December 31, 2023 and 2022.

	December 31,
	2023		2022
	(in thousands)
ROU assets:
Operating leases	$	343,442	$	306,317
Finance leases	19		35
Total	$	343,461	$	306,352
Lease liabilities:
Operating leases	$	403,766	$	358,851
Finance leases	15		33
Total	$	403,781	$	358,884

During the second quarter 2023, Valley recognized an operating lease ROU asset and related lease liability totaling $58.3 million and $66.4 million, respectively, related to its new headquarters located in Morristown, New Jersey. The ROU asset was reduced by construction allowance incentives totaling $8.2 million, which are amortized over the lease term.

The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Finance lease cost:
Amortization of ROU assets	$	16	$	379	$	378
Interest on lease liabilities	—		30		91
Operating lease cost	48,241		42,268		34,842
Short-term lease cost	1,930		874		700
Variable lease cost	177		4,647		3,417
Sublease income	(3,303)		(2,982)		(3,044)
Total lease cost (primarily included in net occupancy expense)	$	47,061	$	45,216	$	36,384

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49,007	$	43,768	$	35,173
Operating cash flows from finance leases	—		30		91
Financing cash flows from finance leases	18		745		681

The following table presents supplemental information related to leases at December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term
Operating leases	12.5 years		10.8 years
Finance leases	2.6 years		2.3 years
Weighted-average discount rate
Operating leases	3.76	%	3.29	%
Finance leases	1.49	%	1.39	%

The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2023:

	Lessor		Lessee
	Direct Financing and Sales-Type Leases		Operating Leases		Finance Leases
	(in thousands)
2024	$	272,724	$	50,526	$	7
2025	225,289		48,409		6
2026	177,931		49,440		2
2027	113,326		44,327		1
2028	58,080		42,555		—
Thereafter	29,681		287,105		—
Total lease payments	877,032		522,362		16
Less: present value discount	(79,583)		(118,596)		(1)
Total	$	797,449	$	403,766	$	15

The total net investment in direct financing and sales-type leases was $797.4 million and $863.8 million at December 31, 2023 and 2022, respectively, comprised of $793.3 million and $859.3 million in lease receivables and $4.1 million and $4.5 million in non-guaranteed residuals, respectively. Total lease income was $40.1 million, $34.4 million and $28.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.

Leases

LEASES (Note 6)

The following table presents the components of the ROU assets and lease liabilities in the consolidated statements of financial condition by lease type at December 31, 2023 and 2022.

	December 31,
	2023		2022
	(in thousands)
ROU assets:
Operating leases	$	343,442	$	306,317
Finance leases	19		35
Total	$	343,461	$	306,352
Lease liabilities:
Operating leases	$	403,766	$	358,851
Finance leases	15		33
Total	$	403,781	$	358,884

During the second quarter 2023, Valley recognized an operating lease ROU asset and related lease liability totaling $58.3 million and $66.4 million, respectively, related to its new headquarters located in Morristown, New Jersey. The ROU asset was reduced by construction allowance incentives totaling $8.2 million, which are amortized over the lease term.

The following table presents the components by lease type, of total lease cost recognized in the consolidated statements of income for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Finance lease cost:
Amortization of ROU assets	$	16	$	379	$	378
Interest on lease liabilities	—		30		91
Operating lease cost	48,241		42,268		34,842
Short-term lease cost	1,930		874		700
Variable lease cost	177		4,647		3,417
Sublease income	(3,303)		(2,982)		(3,044)
Total lease cost (primarily included in net occupancy expense)	$	47,061	$	45,216	$	36,384

The following table presents supplemental cash flow information related to leases for the years ended December 31, 2023, 2022, and 2021:

	2023		2022		2021
	(in thousands)
Cash paid for amounts included in the measurement of lease liabilities:
Operating cash flows from operating leases	$	49,007	$	43,768	$	35,173
Operating cash flows from finance leases	—		30		91
Financing cash flows from finance leases	18		745		681

The following table presents supplemental information related to leases at December 31, 2023 and 2022:

	December 31,
	2023		2022
Weighted-average remaining lease term
Operating leases	12.5 years		10.8 years
Finance leases	2.6 years		2.3 years
Weighted-average discount rate
Operating leases	3.76	%	3.29	%
Finance leases	1.49	%	1.39	%

The following table presents a maturity analysis of lessor and lessee arrangements outstanding as of December 31, 2023:

	Lessor		Lessee
	Direct Financing and Sales-Type Leases		Operating Leases		Finance Leases
	(in thousands)
2024	$	272,724	$	50,526	$	7
2025	225,289		48,409		6
2026	177,931		49,440		2
2027	113,326		44,327		1
2028	58,080		42,555		—
Thereafter	29,681		287,105		—
Total lease payments	877,032		522,362		16
Less: present value discount	(79,583)		(118,596)		(1)
Total	$	797,449	$	403,766	$	15

The total net investment in direct financing and sales-type leases was $797.4 million and $863.8 million at December 31, 2023 and 2022, respectively, comprised of $793.3 million and $859.3 million in lease receivables and $4.1 million and $4.5 million in non-guaranteed residuals, respectively. Total lease income was $40.1 million, $34.4 million and $28.1 million for the years ended December 31, 2023, 2022, and 2021, respectively.