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Loans and Allowance for Credit Losses for Loans
 3 Months Ended
Mar. 31, 2025
Receivables [Abstract]  
Loans and Allowance for Credit Losses for Loans Loans and Allowance for Credit Losses for Loans
The details of the loan portfolio as of March 31, 2025 and December 31, 2024 were as follows: 
 March 31, 2025December 31, 2024
 (in thousands)
Loans:
Commercial and industrial$10,150,205 $9,931,400 
Commercial real estate:
Commercial real estate26,087,621 26,530,225 
Construction3,026,935 3,114,733 
Total commercial real estate loans29,114,556 29,644,958 
Residential mortgage5,636,407 5,632,516 
Consumer:
Home equity602,161 604,433 
Automobile2,041,227 1,901,065 
Other consumer1,112,572 1,085,339 
Total consumer loans3,755,960 3,590,837 
Total loans$48,657,128 $48,799,711 
Total loans include net unearned discounts and deferred loan fees of $30.1 million and $45.3 million at March 31, 2025 and December 31, 2024, respectively.
Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $205.3 million and $208.9 million at March 31, 2025 and December 31, 2024, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.
Loans Portfolio Sales and Transfers to Loans Held for Sale
Valley sells residential mortgage loans originated for sale (at fair value) primarily to Fannie Mae and Freddie Mac in the normal course of business. Under certain circumstances, Valley may decide to sell loans that were not originated with the intent to sell.
During the three months ended March 31, 2025, Valley transferred a non-performing construction loan totaling
$10.2 million, net of $638 thousand charge-offs, from the held for investment loan portfolio to loans held for sale. See Note 5 for further details.
During the three months ended March 31, 2024, Valley completed the sale of its commercial premium finance lending business for $96.8 million. This asset sale included $95.5 million of assets, mainly consisting of $93.6 million of loans, and $2.8 million of related liabilities. The transaction generated a $3.6 million net gain for the first quarter 2024.

There were no other transfers or sales of loans from the held for investment portfolio during the three months ended March 31, 2025 and 2024.

Credit Risk Management
Valley adheres to a credit policy designed to minimize credit risk while generating the maximum income given the level of risk appetite. Management reviews and approves these policies and procedures on a regular basis with subsequent approval by the Board annually. Credit authority relating to a significant dollar percentage of the overall portfolio is centralized and controlled by the Credit Risk Management Division and by the Credit Committee. Loan portfolio diversification is an important factor utilized by Valley to manage its risk across business sectors and through cyclical economic circumstances. Additionally, Valley does not accept crypto assets as loan collateral for any of its loan portfolio classes. See Valley’s Annual Report for further details.
Credit Quality
The following table presents past due, current, and non-accrual loans without an allowance for loan losses by loan portfolio class at March 31, 2025 and December 31, 2024:
Past Due and Non-Accrual Loans
 30-59  Days 
Past Due Loans		60-89  Days 
Past Due Loans		90 Days or More
Past Due Loans		Non-Accrual Loans
Total Past Due Loans
Current Loans
Total Loans		Non-Accrual Loans Without Allowance for Loan Losses
 (in thousands)
March 31, 2025
Commercial and industrial
$3,609 $420 $— $110,146 $114,175 $10,036,030 $10,150,205 $20,402 
Commercial real estate:
Commercial real estate
170 — — 172,011 172,181 25,915,440 26,087,621 128,229 
Construction— — — 24,275 24,275 3,002,660 3,026,935 4,477 
Total commercial real estate loans170 — — 196,286 196,456 28,918,100 29,114,556 132,706 
Residential mortgage16,747 7,700 6,892 35,393 66,732 5,569,675 5,636,407 24,643 
Consumer loans:
Home equity1,661 379 30 4,363 6,433 595,728 602,161 1,332 
Automobile8,508 1,454 448 242 10,652 2,030,575 2,041,227 — 
Other consumer2,718 575 386 21 3,700 1,108,872 1,112,572 — 
Total consumer loans12,887 2,408 864 4,626 20,785 3,735,175 3,755,960 1,332 
Total$33,413 $10,528 $7,756 $346,451 $398,148 $48,258,980 $48,657,128 $179,083 
 Past Due and Non-Accrual Loans  
 
30-59
Days
Past Due Loans		60-89 
Days
Past Due Loans		90 Days or More
Past Due Loans		Non-Accrual Loans
Total Past Due Loans
Current Loans		Total LoansNon-Accrual Loans Without Allowance for Loan Losses
(in thousands)
December 31, 2024
Commercial and industrial$2,389 $1,007 $1,307 $136,675 $141,378 $9,790,022 $9,931,400 $15,947 
Commercial real estate:
Commercial real estate20,902 24,903 — 157,231 203,036 26,327,189 26,530,225 91,095 
Construction— — — 24,591 24,591 3,090,142 3,114,733 5,002 
Total commercial real estate loans20,902 24,903 — 181,822 227,627 29,417,331 29,644,958 96,097 
Residential mortgage21,295 5,773 3,533 36,786 67,387 5,565,129 5,632,516 23,543 
Consumer loans:
Home equity1,651 181 — 3,961 5,793 598,640 604,433 1,341 
Automobile8,583 1,346 407 230 10,566 1,890,499 1,901,065 — 
Other consumer2,318 2,957 642 24 5,941 1,079,398 1,085,339 — 
Total consumer loans12,552 4,484 1,049 4,215 22,300 3,568,537 3,590,837 1,341 
Total$57,138 $36,167 $5,889 $359,498 $458,692 $48,341,019 $48,799,711 $136,928 
Credit quality indicators. Valley utilizes an internal loan classification system as a means of reporting problem loans within commercial and industrial, commercial real estate, and construction loan portfolio classes. Under Valley’s internal risk rating system, loan relationships could be classified as “Pass,” “Special Mention,” “Substandard,” “Doubtful,” and “Loss.” Substandard loans include loans that exhibit well-defined weakness and are characterized by the distinct possibility that Valley will sustain some loss if the deficiencies are not corrected. Loans classified as Doubtful have all the weaknesses inherent in those classified as Substandard with the added characteristic that the weaknesses present make collection or liquidation in full, based on currently existing facts, conditions and values, highly questionable and improbable. Loans classified as Loss are those considered uncollectible with insignificant value and are charged-off immediately to the allowance for loan losses and, therefore, not presented in the table below. Loans that do not currently pose a sufficient risk to warrant classification in one of the aforementioned categories but pose weaknesses that deserve management’s close attention are deemed Special Mention. Pass rated loans do not currently pose any identified risk and can range from the highest to average quality, depending on the degree of potential risk. Risk ratings are updated any time the situation warrants.
The following table presents the internal loan classification risk by loan portfolio class by origination year based on the most recent analysis performed at March 31, 2025 and December 31, 2024, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2025 and for the year ended December 31, 2024:
 Term Loans  
Amortized Cost Basis by Origination Year
March 31, 202520252024202320222021
Prior to 2021
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term LoansTotal
 (in thousands)
Commercial and industrial
Risk Rating:
Pass$402,895 $1,683,588 $775,801 $657,761 $405,335 $592,244 $4,880,356 $8,136 $9,406,116 
Special Mention13,814 1,186 5,973 3,413 11,255 14,628 210,855 3,766 264,890 
Substandard— 36,081 13,898 62,525 4,373 52,761 217,195 20,266 407,099 
Doubtful— — 7,120 2 321 51,744 12,913 — 72,100 
Total commercial and industrial$416,709 $1,720,855 $802,792 $723,701 $421,284 $711,377 $5,321,319 $32,168 $10,150,205 
Commercial real estate
Risk Rating:
Pass$600,990 $2,070,782 $2,622,556 $5,052,632 $3,667,440 $8,058,437 $514,996 $78,387 $22,666,220 
Special Mention— 127,965 308,325 293,431 218,617 359,533 165,641 — 1,473,512 
Substandard37,705 68,730 159,182 452,111 330,105 834,911 14,640 68 1,897,452 
Doubtful— — 3,060 — 34,525 12,852 — — 50,437 
Total commercial real estate$638,695 $2,267,477 $3,093,123 $5,798,174 $4,250,687 $9,265,733 $695,277 $78,455 $26,087,621 
Construction
Risk Rating:
Pass$153,394 $549,099 $614,599 $324,001 $69,166 $72,943 $1,062,079 $24,850 $2,870,131 
Special Mention— 13,263 4,527 646 9,447 — 29,494 — 57,377 
Substandard— 773 75 8,950 4,477 — 52,222 32,930 99,427 
Total construction$153,394 $563,135 $619,201 $333,597 $83,090 $72,943 $1,143,795 $57,780 $3,026,935 
Gross loan charge-offs $— $70 $842 $2,488 $7,308 $6,807 $9,776 $14,588 $41,879 
 Term Loans  
Amortized Cost Basis by Origination Year
December 31, 202420242023202220212020
Prior to 2020
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term LoansTotal
 (in thousands)
Commercial and industrial
Risk Rating:
Pass$1,769,585 $828,087 $703,962 $476,091 $246,992 $392,834 $4,804,095 $6,006 $9,227,652 
Special Mention30,755 3,553 59,434 11,646 270 72,514 147,254 10,762 336,188 
Substandard24,613 13,479 9,415 4,296 2,813 7,382 201,053 39,011 302,062 
Doubtful— 8,911 4 928 — 52,064 3,591 — 65,498 
Total commercial and industrial$1,824,953 $854,030 $772,815 $492,961 $250,075 $524,794 $5,155,993 $55,779 $9,931,400 
Commercial real estate
Risk Rating:
Pass$2,097,314 $2,941,270 $5,310,807 $3,883,333 $2,302,480 $6,086,608 $597,266 $78,621 $23,297,699 
Special Mention156,394 380,852 289,669 192,614 55,739 327,732 141,164 — 1,544,164 
Substandard84,410 107,944 387,638 288,906 236,927 520,858 11,167 — 1,637,850 
Doubtful— 3,060 — 35,756 9,813 1,883 — — 50,512 
Total commercial real estate$2,338,118 $3,433,126 $5,988,114 $4,400,609 $2,604,959 $6,937,081 $749,597 $78,621 $26,530,225 
Construction
Risk Rating:
Pass$545,597 $680,260 $334,899 $92,765 $17,955 $45,161 $1,224,698 $58,644 $2,999,979 
Special Mention13,278 — 664 5,069 — 2,504 16,691 — 38,206 
Substandard9,835 — 8,950 4,942 — — 43,474 — 67,201 
Doubtful— — 2,074 — 7,273 — — — 9,347 
Total construction$568,710 $680,260 $346,587 $102,776 $25,228 $47,665 $1,284,863 $58,644 $3,114,733 
Gross loan charge-offs$706 $31,809 $7,523 $44,610 $66,632 $49,436 $3,930 $2,148 $206,794 
For residential mortgages, home equity, automobile and other consumer loan portfolio classes, Valley evaluates credit quality based on the aging status of the loan and by payment activity. The following table presents the amortized cost in those loan classes based on payment activity by origination year as of March 31, 2025 and December 31, 2024, as well as the gross loan charge-offs by year of origination for the three months ended March 31, 2025 and for the year ended December 31, 2024:
 Term Loans  
Amortized Cost Basis by Origination Year
March 31, 202520252024202320222021
Prior to 2021
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term LoansTotal
 (in thousands)
Residential mortgage
Performing$85,961 $426,158 $408,214 $1,274,491 $1,402,246 $1,939,273 $77,898 $— $5,614,241 
90 days or more past due— 952 769 3,276 1,749 14,739 — 681 22,166 
Total residential mortgage $85,961 $427,110 $408,983 $1,277,767 $1,403,995 $1,954,012 $77,898 $681 $5,636,407 
Consumer loans
Home equity
Performing$7,472 $22,481 $27,294 $38,220 $9,828 $54,408 $431,436 $9,112 $600,251 
90 days or more past due— — 3 173 105 1,029 — 600 1,910 
Total home equity7,472 22,481 27,297 38,393 9,933 55,437 431,436 9,712 602,161 
Automobile
Performing$345,515 $787,382 $308,544 $321,091 $178,895 $99,088 $— $— $2,040,515 
90 days or more past due— 116 95 170 94 237 — — 712 
Total automobile345,515 787,498 308,639 321,261 178,989 99,325 — — 2,041,227 
Other consumer
Performing$5,866 $13,311 $30,004 $14,866 $1,700 $58,528 $976,315 $11,592 $1,112,182 
90 days or more past due— 30 — 61 — 38 — 261 390 
Total other consumer5,866 13,341 30,004 14,927 1,700 58,566 976,315 11,853 1,112,572 
Total consumer$358,853 $823,320 $365,940 $374,581 $190,622 $213,328 $1,407,751 $21,565 $3,755,960 
Gross loan charge-offs $— $522 $297 $348 $152 $762 $— $59 $2,140 
 Term Loans  
Amortized Cost Basis by Origination Year
December 31, 202420242023202220212020
Prior to 2020
Revolving Loans Amortized Cost BasisRevolving Loans Converted to Term LoansTotal
 (in thousands)
Residential mortgage
Performing$428,138 $413,528 $1,282,524 $1,420,835 $494,430 $1,490,512 $75,479 $954 $5,606,400 
90 days or more past due530 771 1,030 1,533 5,286 16,285 — 681 26,116 
Total residential mortgage $428,668 $414,299 $1,283,554 $1,422,368 $499,716 $1,506,797 $75,479 $1,635 $5,632,516 
Consumer loans
Home equity
Performing$22,947 $29,445 $38,774 $10,302 $3,340 $50,613 $438,817 $9,061 $603,299 
90 days or more past due— 48 51 1 — 855 — 179 1,134 
Total home equity22,947 29,493 38,825 10,303 3,340 51,468 438,817 9,240 604,433 
Automobile
Performing$863,281 $343,203 $363,901 $211,294 $59,288 $59,512 $— $— $1,900,479 
90 days or more past due71 122 140 70 2 181 — — 586 
Total automobile863,352 343,325 364,041 211,364 59,290 59,693 — — 1,901,065 
Other consumer
Performing$15,164 $25,884 $15,787 $1,588 $337 $53,917 $956,339 $15,917 $1,084,933 
90 days or more past due— 59 61 — — 38 — 248 406 
Total other consumer15,164 25,943 15,848 1,588 337 53,955 956,339 16,165 1,085,339 
Total consumer$901,463 $398,761 $418,714 $223,255 $62,967 $165,116 $1,395,156 $25,405 $3,590,837 
Gross loan charge-offs$1,014 $1,883 $1,511 $1,015 $519 $2,245 $— $131 $8,318 
Loan modifications to borrowers experiencing financial difficulty. From time to time, Valley may extend, restructure, or otherwise modify the terms of existing loans, on a case-by-case basis, to remain competitive and retain certain customers, as well as assist other customers who may be experiencing financial difficulties.
The following tables present the amortized cost basis of loans to borrowers experiencing financial difficulty at March 31, 2025 that were modified during the three months ended March 31, 2025 and 2024, disaggregated by class of financing receivable and type of modification.
Term extensionTerm extension and interest rate reductionTerm extension and principal forgivenessOther than Insignificant Payment DelayTotal% of Total Loan Class
 ($ in thousands)
Three Months Ended
March 31, 2025
Commercial and industrial$2,145 $— $— $5,660 $7,805 0.08 %
Commercial real estate7,398 — 20,823 396 28,617 0.11 
Total$9,543 $— $20,823 $6,056 $36,422 0.07 %
Three Months Ended
March 31, 2024
Commercial and industrial$34,271 $143 $— $— $34,414 0.38 %
Commercial real estate62 16,222 — — 16,284 0.06 
Home equity91 — — — 91 0.02 
Total$34,424 $16,365 $— $— $50,789 0.10 %
The following table describes the types of modifications made to borrowers experiencing financial difficulty during the three months ended March 31, 2025 and 2024:
Weighted Average Interest Rate Reduction Weighted Average Term Extension (in months)Principal Forgiveness (in thousands)Weighted Average Payment Deferral (in months)
Three Months Ended
March 31, 2025
Commercial and industrial— %11$— 6
Commercial real estate— 3117,500 *6
Three Months Ended
March 31, 2024
Commercial and industrial1.11 %3$— — 
Commercial real estate1.06 12— — 
Home equity— 120— — 
*    Relates to one loan that was partially charged off during the fourth quarter 2024 with the subsequent execution of the corresponding principal forgiveness completed in the first quarter 2025.
Valley closely monitors the performance of modified loans to borrowers experiencing financial difficulty to understand the effectiveness of its modification efforts. The following table presents the aging analysis of loans that have been modified within the previous 12 months at March 31, 2025 and 2024.
Current30-89 Days Past Due90 Days or More Past Due Total
March 31, 2025($ in thousands)
Commercial and industrial$113,632 *$— $— $113,632 
Commercial real estate243,689 — 46 243,735 
Residential mortgage2,051 — 95 2,146 
Home equity41 — — 41 
Total$359,413 $— $141 $359,554 
March 31, 2024
Commercial and industrial$73,859 *$5,916 *$4,943 *$84,718 
Commercial real estate96,217 — 2,153 98,370 
Residential mortgage— 360 — 360 
Home equity122 — — 122 
Total$170,198 $6,276 $7,096 $183,570 
*    Includes non-accrual loans.
The following table provides the amortized cost basis of financing receivables that had a payment default during the three months ended March 31, 2025 and 2024 and were modified in the 12 months before default to borrowers experiencing financial difficulty.
March 31, 2025Term extensionOther than Insignificant Payment Delay
 (in thousands)
Commercial real estate$46 $— 
Residential mortgage— 95 
Total$46 $95 
March 31, 2024
Commercial and industrial$7,096 $— 
Total$7,096 $— 
Loans in process of foreclosure. OREO balance totaled $7.7 million and $12.2 million at March 31, 2025 and December 31, 2024, respectively. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $4.3 million and $4.6 million at March 31, 2025 and December 31, 2024, respectively.
Collateral dependent loans. Loans are collateral dependent when the debtor is experiencing financial difficulty and repayment is expected to be provided substantially through the sale or operation of the collateral. When Valley determines that repayment or satisfaction of the loan depends on the sale of the collateral, the collateral dependent loan balances are written down to the estimated current fair value (less estimated selling costs) resulting in an immediate charge-off to the allowance, excluding any consideration for personal guarantees that may be pursued in the Bank’s collection process.
The following table presents collateral dependent loans by class as of March 31, 2025 and December 31, 2024:
 March 31,
2025		December 31,
2024
 (in thousands)
Collateral dependent loans:
Commercial and industrial *$102,046 $131,898 
Commercial real estate163,248 156,825 
Construction4,477 15,841 
Total commercial real estate loans167,725 172,666 
Residential mortgage24,897 23,797 
Home equity1,332 1,341 
Total $296,000 $329,702 
*    Include non-accrual loans collateralized by taxi medallions totaling $49.2 million and $49.5 million at March 31, 2025 and December 31, 2024, respectively.
Allowance for Credit Losses for Loans
The allowance for credit losses for loans consists of the allowance for loan losses and the allowance for unfunded credit commitments.
The following table summarizes the ACL for loans at March 31, 2025 and December 31, 2024: 
March 31,
2025		December 31,
2024
 (in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses$578,200 $558,850 
Allowance for unfunded credit commitments15,854 14,478 
Total allowance for credit losses for loans$594,054 $573,328 
The following table summarizes the provision for credit losses for loans for the periods indicated:
 Three Months Ended
March 31,
 20252024
 (in thousands)
Components of provision for credit losses for loans:
Provision for loan losses$61,299 $46,723 
Provision (credit) for unfunded credit commitments1,376 (1,449)
Total provision for credit losses for loans$62,675 $45,274 
The following table details the activity in the allowance for loan losses by portfolio segment for the three months ended March 31, 2025 and 2024: 
Commercial
and Industrial		Commercial
Real Estate		Residential
Mortgage		ConsumerTotal
 (in thousands)
Three Months Ended
March 31, 2025
Allowance for loan losses:
Beginning balance$173,002 $304,148 $58,895 $22,805 $558,850 
Loans charged-off(28,456)(13,423)— (2,140)(44,019)
Charged-off loans recovered 810 249 168 843 2,070 
Net (charge-offs) recoveries(27,646)(13,174)168 (1,297)(41,949)
Provision (credit) for loan losses39,344 30,688 (10,157)1,424 61,299 
Ending balance$184,700 $321,662 $48,906 $22,932 $578,200 
Three Months Ended
March 31, 2024
Allowance for loan losses:
Beginning balance$133,359 $249,598 $42,957 $20,166 $446,080 
Loans charged-off (14,293)(8,798)— (1,809)(24,900)
Charged-off loans recovered 682 241 25 397 1,345 
Net (charge-offs) recoveries(13,611)(8,557)25 (1,412)(23,555)
Provision for loan losses18,845 24,806 1,395 1,677 46,723 
Ending balance$138,593 $265,847 $44,377 $20,431 $469,248 
The following table represents the allocation of the allowance for loan losses and the related loans by loan portfolio segment disaggregated based on the allowance measurement methodology at March 31, 2025 and December 31, 2024.
Commercial and IndustrialCommercial
Real Estate		Residential
Mortgage		ConsumerTotal
 (in thousands)
March 31, 2025
Allowance for loan losses:
Individually evaluated for credit losses$52,745 $8,674 $26 $— $61,445 
Collectively evaluated for credit losses131,955 312,988 48,880 22,932 516,755 
Total$184,700 $321,662 $48,906 $22,932 $578,200 
Loans:
Individually evaluated for credit losses$102,046 $167,725 $24,897 $1,332 $296,000 
Collectively evaluated for credit losses10,048,159 28,946,831 5,611,510 3,754,628 48,361,128 
Total$10,150,205 $29,114,556 $5,636,407 $3,755,960 $48,657,128 
December 31, 2024
Allowance for loan losses:
Individually evaluated for credit losses$59,603 $16,225 $27 $— $75,855 
Collectively evaluated for credit losses113,399 287,923 58,868 22,805 482,995 
Total$173,002 $304,148 $58,895 $22,805 $558,850 
Loans:
Individually evaluated for credit losses$131,898 $172,666 $23,797 $1,341 $329,702 
Collectively evaluated for credit losses9,799,502 29,472,292 5,608,719 3,589,496 48,470,009 
Total$9,931,400 $29,644,958 $5,632,516 $3,590,837 $48,799,711