Goodwill and Other Intangible Assets

12 Months Ended

Dec. 31, 2024

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

GOODWILL AND OTHER INTANGIBLE ASSETS (Note 8)

The following table presents carrying amounts of goodwill allocated to Valley's reporting units at December 31, 2024 and 2023.

	Reporting Unit (*)
	Wealth Management		Consumer Banking		Commercial Banking		Total
	(in thousands)
Goodwill	$	78,142	$	349,646	$	1,441,148	$	1,868,936

*    The Wealth Management and Consumer Banking reporting units are both components of the overall Consumer Banking operating segment, which is further described in Note 21.

During the second quarter 2024, Valley performed the annual goodwill impairment test at its normal assessment date. During the year ended December 31, 2024, 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 years ended December 31, 2024, 2023 and 2022.

The following tables summarize other intangible assets at December 31, 2024 and 2023: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
December 31, 2024
Loan servicing rights	$	125,961	$	(104,833)	$	21,128
Core deposits	215,620		(138,080)		77,540
Other	50,393		(20,400)		29,993
Total other intangible assets	$	391,974	$	(263,313)	$	128,661
December 31, 2023
Loan servicing rights	$	122,586	$	(100,636)	$	21,950
Core deposits	215,620		(113,183)		102,437
Other	50,393		(14,449)		35,944
Total other intangible assets	$	388,599	$	(228,268)	$	160,331

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 13.5 years.

Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the years ended December 31, 2024, 2023 and 2022.

The following table summarizes the change in loan servicing rights during the years ended December 31, 2024, 2023 and 2022:

	2024		2023		2022
	(in thousands)
Beginning balance	$	21,950	$	23,807	$	23,685
Origination of loan servicing rights	3,375		2,643		5,307
Amortization expense	(4,197)		(4,500)		(5,185)
Ending balance	$	21,128	$	21,950	$	23,807

Loan servicing rights are accounted for using the amortization method. There was no valuation allowance at December 31, 2024, 2023 and 2022 and no net impairment recognized during the years ended December 31, 2024, 2023 and 2022.

The Bank services residential mortgage loan portfolios and it is compensated for loan administrative services performed for mortgage servicing rights of loans originated and sold by the Bank, and to a lesser extent, purchased mortgage servicing rights. The aggregate principal balances of residential mortgage loans serviced by the Bank for others approximated $3.3 billion at both December 31, 2024 and 2023 and $3.5 billion at December 31, 2022. The outstanding balance of loans serviced for others is not included in the consolidated statements of financial condition.

Valley recognized amortization expense on other intangible assets of $35.0 million, $39.8 million and $37.8 million for the years ended December 31, 2024, 2023 and 2022, respectively.

The following table presents the estimated amortization expense of other intangible assets over the next five-year period:

Year	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2025	$	2,584	$	21,048	$	5,380
2026	2,322		17,223		4,805
2027	2,051		13,544		4,205
2028	1,805		10,117		3,633
2029	1,596		7,500		3,081