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Regulatory and Capital Requirements
12 Months Ended
Dec. 31, 2024
Financial Services, Banking and Thrift [Abstract]  
Regulatory and Capital Requirements
REGULATORY AND CAPITAL REQUIREMENTS (Note 17)
Valley’s primary source of cash is dividends from the Bank. Valley National Bank, a national banking association, is subject to certain restrictions on the amount of dividends that it may declare without prior regulatory approval. In addition, the dividends declared cannot be in excess of the amount which would cause the subsidiary bank to fall below the minimum required for capital adequacy purposes.
Valley and Valley National Bank are subject to the regulatory capital requirements administered by the Federal Reserve and the OCC. Failure to meet minimum capital requirements can initiate certain mandatory and possible additional discretionary actions by regulators that, if undertaken, could have a direct significant impact on Valley’s consolidated financial statements. Under capital adequacy guidelines Valley and Valley National Bank must meet specific capital guidelines that involve quantitative measures of Valley’s assets, liabilities and certain off-balance sheet items as calculated under regulatory accounting practices. Capital amounts and classification are also subject to qualitative judgments by the regulators about components, risk weightings and other factors.
Quantitative measures established by regulation to ensure capital adequacy require Valley and Valley National Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations.
Valley is required to maintain a common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, Tier 1 capital to risk-weighted assets of 6.0 percent, ratio of total capital to risk-weighted assets of 8.0 percent, and minimum leverage ratio of 4.0 percent, plus a 2.5 percent capital conservation buffer added to the minimum requirements for capital adequacy purposes. As of December 31, 2024 and 2023, Valley and Valley National Bank exceeded all capital adequacy requirements (see table below).
For regulatory capital purposes, in accordance with the Federal Reserve’s final rule issued August 26, 2020, we deferred 100 percent of the CECL Day 1 impact to shareholders' equity plus 25 percent of the reserve build (i.e., provision for credit losses less net charge-offs) for a two-year period ending January 1, 2022. On January 1, 2022, the deferral amount totaling $47.3 million after-tax started to be phased-in by 25 percent and will increase by 25 percent per year until fully phased-in on January 1, 2025. As of December 31, 2024, approximately $35.5 million of the $47.3 million deferral amount was recognized as a reduction to regulatory capital and, as a result, decreased our risk based capital ratios by approximately 9 basis points.
The following table presents Valley’s and Valley National Bank’s actual capital positions and ratios under the Basel III risk-based capital guidelines at December 31, 2024 and 2023:
 ActualMinimum Capital
Requirements
To Be Well
Capitalized Under
Prompt Corrective
Action Provision
 AmountRatioAmountRatioAmountRatio
 ($ in thousands)
As of December 31, 2024
Total Risk-based Capital
Valley$6,703,186 13.87 %$5,076,004 10.50 %N/AN/A
Valley National Bank6,535,892 13.53 5,071,696 10.50 $4,830,187 10.00 %
Common Equity Tier 1 Capital
Valley5,230,632 10.82 3,384,002 7.00 N/AN/A
Valley National Bank6,041,434 12.51 3,381,131 7.00 3,139,621 6.50 
Tier 1 Risk-based Capital
Valley5,584,699 11.55 4,109,146 8.50 N/AN/A
Valley National Bank6,041,434 12.51 4,105,659 8.50 3,864,149 8.00 
Tier 1 Leverage Capital
Valley5,584,699 9.16 2,438,649 4.00 N/AN/A
Valley National Bank6,041,434 9.91 2,438,511 4.00 3,048,139 5.00 
As of December 31, 2023
Total Risk-based Capital
Valley$5,855,633 11.76 %$5,228,447 10.50 %N/AN/A
Valley National Bank5,794,213 11.64 5,228,403 10.50 $4,979,431 10.00 %
Common Equity Tier 1 Capital
Valley4,623,473 9.29 3,485,631 7.00 N/AN/A
Valley National Bank5,420,894 10.89 3,485,602 7.00 3,236,630 6.50 
Tier 1 Risk-based Capital
Valley4,838,314 9.72 4,232,552 8.50 N/AN/A
Valley National Bank5,420,894 10.89 4,232,517 8.50 3,983,545 8.00 
Tier 1 Leverage Capital
Valley4,838,314 8.16 2,372,129 4.00 N/AN/A
Valley National Bank5,420,894 9.14 2,372,322 4.00 2,965,403 5.00