Tax Credit Investments (Tables)

12 Months Ended

Dec. 31, 2024

Income Tax Disclosure [Abstract]

Affordable Housing Tax Credit Investments, Other Tax Credit Investments, and Related Unfunded Commitments

The following table presents the balances of Valley’s affordable housing tax credit investments, other tax credit investments, and related unfunded commitments at December 31, 2024 and 2023:

	2024		2023
	(in thousands)
Other assets:
Affordable housing tax credit investments, net	$	22,742	$	22,158
Other tax credit investments, net	278,468		117,659
Total tax credit investments, net	$	301,210	$	139,817
Other liabilities:
Unfunded affordable housing tax credit commitments	$	—	$	1,305
Total unfunded tax credit commitments	$	—	$	1,305

Affordable Housing Tax Credit Investments and Other Tax Credit Investments

The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the years ended December 31, 2024, 2023 and 2022:

	2024		2023		2022
	(in thousands)
Components of income tax expense:
Affordable housing tax credits and other tax benefits	$	5,319	$	5,872	$	4,748
Other tax credit investment credits and tax benefits	32,091		20,069		11,617
Total reduction in income tax expense	$	37,410	$	25,941	$	16,365
Amortization of tax credit investments:
Affordable housing tax credit investment losses	$	3,501	$	3,198	$	2,311
Affordable housing tax credit investment impairment losses	983		2,466		1,187
Other tax credit investment losses	5,143		1,266		1,254
Other tax credit investment impairment losses	9,319		11,079		7,655
Total amortization of tax credit investments recorded in non-interest expense	$	18,946	$	18,009	$	12,407