Commitments and Contingencies (Tables)

12 Months Ended

Dec. 31, 2023

Commitments and Contingencies Disclosure [Abstract]

Summary of Financial Instruments with Off-Balance Sheet Risk

The following table provides a summary of financial instruments with off-balance sheet risk at December 31, 2023 and 2022: 

	2023		2022
	(in thousands)
Commitments under commercial loans and lines of credit	$	10,727,162	$	10,262,414
Home equity and other revolving lines of credit	1,681,431		1,920,824
Standby letters of credit	478,954		509,804
Outstanding residential mortgage loan commitments	175,269		317,108
Commitments under unused lines of credit - credit card	138,564		116,208
Commitments to sell loans	24,418		22,008
Commercial letters of credit	28,817		5,863
Total	$	13,254,615	$	13,154,229

Amounts 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 at December 31, 2023 and 2022: 

	2023						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	$	—	$	—	$	—	$	3,971	$	4	$	600,000
Fair value hedge interest rate swaps	—		21,460		800,000		—		29,794		300,000
Total derivatives designated as hedging instruments	$	—	$	21,460	$	800,000	$	3,971	$	29,798	$	900,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts *	$	458,129	$	457,885	$	16,282,279	$	449,280	$	564,678	$	14,753,330
Foreign currency derivatives	8,024		8,286		1,557,167		13,709		12,604		1,273,735
Mortgage banking derivatives	74		472		38,797		167		157		31,299
Total derivatives not designated as hedging instruments	$	466,227	$	466,643	$	17,878,243	$	463,156	$	577,439	$	16,058,364

*    Other derivatives include risk participation agreements.

Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows

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

	2023		2022		2021
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(891)	$	(274)	$	(3,436)
Amount of (loss) gain recognized in other comprehensive income (loss)	(1,093)		4,683		138

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: 

	2023		2022		2021
	(in thousands)
Derivative—interest rate swaps:
Interest income	$	(3,877)	$	—	$	—
Interest expense	$	8,473	$	(466)	$	(3,335)
Hedged item—subordinated debt and loans:
Interest income	$	3,877	$	—	$	—
Interest expense	(8,687)		741		3,397

Interest Rate Derivatives Designated as Hedges

The following table presents the hedged items related to interest rate derivatives designated as fair value hedges and the cumulative basis fair value adjustment included in the net carrying amount of the hedged items at December 31, 2023 and 2022:

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Net Carrying Amount of the Hedged Asset/ Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/Liability
	(in thousands)
December 31, 2023
Loans	$	503,877	$	3,877
Long-term borrowings *	276,572		(21,445)
December 31, 2022
Long-term borrowings *	267,076		(30,132)

*    Net carrying amount includes unamortized debt issuance costs of $2.0 million and $2.8 million at December 31, 2023 and 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: 

	2023		2022		2021
	(in thousands)
Non-designated hedge interest rate and credit derivatives
Other non-interest expense	$	1,590	$	(1,392)	$	54