Tax Credit Investments (Tables)

3 Months Ended

Mar. 31, 2025

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 March 31, 2025 and December 31, 2024:

	March 31, 2025		December 31, 2024
	(in thousands)
Other assets:
Affordable housing tax credit investments, net	$	21,848	$	22,742
Other tax credit investments, net	329,829		278,468
Total tax credit investments, net	$	351,677	$	301,210

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 three months ended March 31, 2025 and 2024: 

	Three Months Ended March 31,
	2025		2024
	(in thousands)
Components of income tax expense:
Affordable housing tax credits and other tax benefits	$	1,225	$	1,396
Other tax credit investment credits and tax benefits	10,889		6,345
Total reduction in income tax expense	$	12,114	$	7,741
Amortization of tax credit investments:
Affordable housing tax credit investment losses	$	700	$	875
Affordable housing tax credit investment impairment losses	365		481
Other tax credit investment losses	772		600
Other tax credit investment impairment losses	7,483		3,606
Total amortization of tax credit investments recorded in non-interest expense	$	9,320	$	5,562