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Operating Segments
 12 Months Ended
Dec. 31, 2024
Segment Reporting [Abstract]  
Operating Segments
OPERATING SEGMENTS (Note 21)
Valley manages its business operations under operating segments consisting of Consumer Banking and Commercial Banking. Activities not assigned to the operating segments are included in Treasury and Corporate Other.
The CEO of Valley is the CODM who assesses performance of each operating segment to better understand their cost, opportunity value and impact to Valley's consolidated earnings. Each operating segment is reviewed routinely for its asset growth, contribution to our income before income taxes, return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Valley regularly assesses its strategic plans, operations, and reporting structures to identify its reportable segments.
The Consumer Banking segment is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, secured personal lines of credit, home equity loans and other consumer loans. The duration of the residential mortgage loan portfolio is subject to movements in the market level of interest rates and forecasted prepayment speeds. The average weighted life of the automobile loans within the portfolio is relatively unaffected by movements in the market level of interest rates. However, the average life may be impacted by new loans as a result of the availability of credit within the automobile marketplace and consumer demand for purchasing new or used automobiles. Consumer Banking also includes the Wealth
Management and Insurance Services Division, comprised of asset management advisory, brokerage, trust, personal and title insurance, tax credit advisory services, and international and domestic private banking businesses.
The Commercial Banking segment is comprised of floating rate and adjustable rate commercial and industrial loans and construction loans, as well as adjustable and fixed rate owner occupied and commercial real estate loans. Due to the portfolio’s interest rate characteristics, Commercial Banking is Valley’s operating segment that is most sensitive to movements in market interest rates.
Treasury and Corporate Other largely consists of the Treasury managed HTM debt securities and AFS debt securities portfolios mainly utilized in the liquidity management needs of our lending segments and income and expense items resulting from support functions not directly attributable to a specific segment. Interest income is generated through investments in various types of securities (mainly comprised of fixed rate securities) and interest-bearing deposits with other banks (primarily the Federal Reserve Bank of New York). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from Treasury and Corporate Other to operating segments. Other non-interest income items and general expenses are allocated from Treasury and Corporate Other to each operating segment utilizing a methodology that involves an allocation of operating and funding costs based on each segment's respective mix of average interest earning assets outstanding for the period, number of deposits, or direct allocation to the segments based on the nature of income and expense. Unallocated items included in Treasury and Corporate Other consist of net gains and losses on AFS and HTM securities transactions, amortization of tax credit investments, as well as other non-core items, including merger, restructuring and FDIC special assessment charges and income from litigation settlements.
The accounting for each operating segment and Treasury and Corporate Other includes internal accounting policies designed to measure consistent and reasonable financial reporting and may result in income and expense measurements that differ from amounts under GAAP. The financial reporting for each segment contains allocations and reporting in line with Valley’s operations, which may not necessarily be comparable to any other financial institution. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data. Certain prior period amounts have been reclassified to conform to the current presentation for each operating segment and Treasury and Corporate Other.
The following tables represent the financial data for Valley’s operating segments, and Treasury and Corporate Other for the years ended December 31, 2024, 2023 and 2022:
 2024
 Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
 ($ in thousands)
Average interest earning assets (unaudited)$9,914,917 $40,115,669 $7,287,340$57,317,926 
Interest income$478,680 $2,596,066 $282,751$3,357,497 
Interest expense299,048 1,209,945 219,7961,728,789 
Net interest income179,632 1,386,121 62,9551,628,708 
Provision for credit losses24,561 284,827 (558)308,830 
Net interest income after provision for credit losses155,071 1,101,294 63,5131,319,878 
Non-interest income135,331 77,690 11,480224,501 
Non-interest expense
Salary and employee benefits expense118,953 389,622 50,020558,595 
Net occupancy expense18,003 71,360 12,761102,124 
Technology, furniture, and equipment expense25,681 93,811 15,617135,109 
FDIC insurance assessment10,448 42,271 8,75761,476 
Professional and legal fees11,254 52,666 6,39570,315 
Other segment items *58,282 54,007 65,952178,241 
Total non-interest expense$242,621 $703,737 $159,502$1,105,860 
Income (loss) before income taxes$47,781 $475,247 $(84,509)$438,519 
Return on average interest earning assets (pre-tax) (unaudited)0.48 %1.18 %(1.16)%0.77 %
Net interest margin1.81 %3.45 %0.86 %2.84 %
 
 2023
 Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
 ($ in thousands)
Average interest earning assets (unaudited)$9,620,508 $39,731,353 $7,148,667$56,500,528 
Interest income$415,585 $2,471,345 $251,961$3,138,891 
Interest expense250,882 1,036,109 186,4221,473,413 
Net interest income 164,703 1,435,236 65,5391,665,478 
Provision for credit losses6,162 39,463 4,55950,184 
Net interest income after provision for credit losses158,541 1,395,773 60,9801,615,294 
Non-interest income105,282 93,618 26,829225,729 
Non-interest expense
Salary and employee benefits expense111,748 389,666 62,177563,591 
Net occupancy expense19,313 69,780 12,377101,470 
Technology, furniture, and equipment expense25,661 98,716 26,331150,708 
FDIC insurance assessment7,380 30,477 50,29788,154 
Professional and legal fees13,016 56,755 10,79680,567 
Other segment items *48,650 56,188 73,363178,201 
Total non-interest expense$225,768 $701,582 $235,341$1,162,691 
Income (loss) before income taxes$38,055 $787,809 $(147,532)$678,332 
Return on average interest earning assets (pre-tax) (unaudited)0.40 %1.98 %(2.06)%1.20 %
Net interest margin1.71 %3.61 %0.91 %2.95 %
 2022
 Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
 ($ in thousands)
Average interest earning assets (unaudited)$8,615,542 $33,314,811 $6,137,028$48,067,381 
Interest income$290,289 $1,533,458 $152,936$1,976,683 
Interest expense57,543 222,511 40,989321,043 
Net interest income 232,746 1,310,947 111,9471,655,640 
 Provision for credit losses20,880 35,456 48156,817 
Net interest income after provision for credit losses211,866 1,275,491 111,4661,598,823 
Non-interest income98,678 102,530 5,585206,793 
Non-interest expense
Salary and employee benefits expense104,405 344,689 77,643526,737 
Net occupancy expense18,948 62,829 12,57594,352 
Technology, furniture, and equipment expense26,796 94,671 40,285161,752 
FDIC insurance assessment4,692 18,144 —22,836 
Professional and legal fees12,441 50,314 19,86382,618 
Other segment items *47,919 43,534 45,201136,654 
Total non-interest expense$215,201 $614,181 $195,567$1,024,949 
Income (loss) before income taxes$95,343 $763,840 $(78,516)$780,667 
Return on average interest earning assets (pre-tax) (unaudited)1.11 %2.29 %(1.28)%1.62 %
Net interest margin2.70 %3.93 %1.82 %3.44 %
*Other segment items include amortization of intangible assets, amortization of tax credit investments and other general operating expenses.