
	September 30, 2021		December 31, 2020
	(in thousands)
Loans:
Commercial and industrial:
Commercial and industrial	$	4,761,227	$	4,709,569
Commercial and industrial PPP loans *	874,033		2,152,139
Total commercial and industrial loans	5,635,260		6,861,708
Commercial real estate:
Commercial real estate	17,912,070		16,724,998
Construction	1,804,580		1,745,825
Total commercial real estate loans	19,716,650		18,470,823
Residential mortgage	4,332,422		4,183,743
Consumer:
Home equity	402,658		431,553
Automobile	1,563,698		1,355,955
Other consumer	956,126		913,330
Total consumer loans	2,922,482		2,700,838
Total loans	$	32,606,814	$	32,217,112

Total loans includes net unearned discounts and deferred loan fees of $73.0 million and $95.8 million at September 30, 2021 and December 31, 2020, respectively. Net unearned discounts and deferred loan fees include the non-credit discount on purchased credit deterioration (PCD) loans and net unearned fees related to PPP loans at September 30, 2021 and December 31, 2020.

Valley transferred and sold approximately $30.0 million of residential mortgage loans from the loan portfolio to loans held for sale during the nine months ended September 30, 2020. Excluding the loan transfers, there were no other material sales of loans from the held for investment portfolio during the three and nine months ended September 30, 2021 and 2020.

For all of its loan types, 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 of Directors 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. A reporting system supplements the management review process by providing management with frequent reports concerning loan production, loan quality, internal loan classification, concentrations of credit, loan delinquencies, non-performing, and potential problem loans. Loan portfolio diversification is an important factor utilized by Valley to manage its risk across business sectors and through cyclical economic circumstances. See Valley’s Annual Report on Form 10-K for the year ended December 31, 2020 for further details.


	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 Credit Losses
	(in thousands)
September 30, 2021
Commercial and industrial	$	2,677	$	985	$	2,083	$	100,614	$	106,359	$	5,528,901	$	5,635,260	$	10,407
Commercial real estate:
Commercial real estate	22,956		5,897		1,942		95,843		126,638		17,785,432		17,912,070		55,621
Construction	—		—		—		17,653		17,653		1,786,927		1,804,580		—
Total commercial real estate loans	22,956		5,897		1,942		113,496		144,291		19,572,359		19,716,650		55,621
Residential mortgage	9,293		974		1,002		33,648		44,917		4,287,505		4,332,422		21,032
Consumer loans:
Home equity	606		225		—		3,541		4,372		398,286		402,658		5
Automobile	4,218		555		233		420		5,426		1,558,272		1,563,698		—
Other consumer	639		837		92		112		1,680		954,446		956,126		—
Total consumer loans	5,463		1,617		325		4,073		11,478		2,911,004		2,922,482		5
Total	$	40,389	$	9,473	$	5,352	$	251,831	$	307,045	$	32,299,769	$	32,606,814	$	87,065


	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 Credit Losses
	(in thousands)
December 31, 2020
Commercial and industrial	$	6,393	$	2,252	$	9,107	$	106,693	$	124,445	$	6,737,263	$	6,861,708	$	4,075
Commercial real estate:
Commercial real estate	35,030		1,326		993		46,879		84,228		16,640,770		16,724,998		32,416
Construction	315		—		—		84		399		1,745,426		1,745,825		—
Total commercial real estate loans	35,345		1,326		993		46,963		84,627		18,386,196		18,470,823		32,416
Residential mortgage	17,717		10,351		3,170		25,817		57,055		4,126,688		4,183,743		11,610
Consumer loans:
Home equity	953		492		—		4,936		6,381		425,172		431,553		50
Automobile	8,056		1,107		245		338		9,746		1,346,209		1,355,955		—
Other consumer	1,248		224		26		535		2,033		911,297		913,330		—
Total consumer loans	10,257		1,823		271		5,809		18,160		2,682,678		2,700,838		50
Total	$	69,712	$	15,752	$	13,541	$	185,282	$	284,287	$	31,932,825	$	32,217,112	$	48,151

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. Loans rated as Pass 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.


	Term Loans
	Amortized Cost Basis by Origination Year
September 30, 2021	2021		2020		2019		2018		2017		Prior to 2017		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	1,526,393	$	840,868	$	462,843	$	388,482	$	149,991	$	328,289	$	1,716,736	$	269	$	5,413,871
Special Mention	1,809		1,558		1,342		10,770		1,930		14,950		59,905		53		92,317
Substandard	4,587		6,507		3,972		7,853		886		2,532		15,066		288		41,691
Doubtful	—		—		2,736		5		16,364		68,276		—		—		87,381

Total commercial and industrial	$	1,532,789	$	848,933	$	470,893	$	407,110	$	169,171	$	414,047	$	1,791,707	$	610	$	5,635,260
Commercial real estate
Risk Rating:
Pass	$	3,178,182	$	2,936,284	$	2,801,710	$	1,851,162	$	1,498,151	$	4,716,223	$	170,763	$	12,753	$	17,165,228
Special Mention	1,988		45,305		44,596		43,593		51,875		169,460		38,594		—		395,411
Substandard	743		33,817		39,817		40,568		68,190		165,574		2,531		—		351,240
Doubtful	—		—		—		—		—		191		—		—		191

Total commercial real estate	$	3,180,913	$	3,015,406	$	2,886,123	$	1,935,323	$	1,618,216	$	5,051,448	$	211,888	$	12,753	$	17,912,070
Construction
Risk Rating:
Pass	$	160,031	$	109,843	$	62,330	$	65,581	$	6,181	$	28,498	$	1,329,163	$	—	$	1,761,627
Special Mention	4,131		—		1,018		—		—		—		9,497		—		14,646
Substandard	—		23		13		646		—		17,842		9,783		—		28,307

Total construction	$	164,162	$	109,866	$	63,361	$	66,227	$	6,181	$	46,340	$	1,348,443	$	—	$	1,804,580

For residential mortgages, automobile, home equity and other consumer loan portfolio classes, Valley also evaluates credit quality based on the aging status of the loan, which was previously presented, and by payment activity. The following table presents the amortized cost in those loan classes based on payment activity by origination year as of September 30, 2021 and December 31, 2020.


	Term Loans
	Amortized Cost Basis by Origination Year
September 30, 2021	2021		2020		2019		2018		2017		Prior to 2017		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	1,084,533	$	661,418	$	619,942	$	467,876	$	405,847	$	1,019,676	$	60,510	$	—	$	4,319,802
90 days or more past due	—		234		2,093		4,072		3,150		3,071		—		—		12,620
Total residential mortgage	$	1,084,533	$	661,652	$	622,035	$	471,948	$	408,997	$	1,022,747	$	60,510	$	—	$	4,332,422
Consumer loans
Home equity
Performing	$	11,096	$	6,593	$	8,055	$	8,745	$	6,031	$	14,327	$	303,235	$	43,502	$	401,584
90 days or more past due	—		—		—		—		—		68		542		464		1,074
Total home equity	11,096		6,593		8,055		8,745		6,031		14,395		303,777		43,966		402,658
Automobile
Performing	611,329		342,584		315,330		182,973		89,463		21,302		—		—		1,562,981
90 days or more past due	73		52		130		162		179		121		—		—		717
Total automobile	611,402		342,636		315,460		183,135		89,642		21,423		—		—		1,563,698
Other Consumer
Performing	6,518		6,794		6,543		7,231		1,017		9,017		918,946		—		956,066
90 days or more past due	—		—		—		—		—		—		60		—		60
Total other consumer	6,518		6,794		6,543		7,231		1,017		9,017		919,006		—		956,126
Total consumer	$	629,016	$	356,023	$	330,058	$	199,111	$	96,690	$	44,835	$	1,222,783	$	43,966	$	2,922,482


	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 2020	2020		2019		2018		2017		2016		Prior to 2016		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	730,764	$	778,161	$	684,761	$	582,650	$	380,723	$	943,616	$	64,798	$	—	$	4,165,473
90 days or more past due	—		3,085		4,212		3,464		4,144		3,365		—		—		18,270
Total residential mortgage	$	730,764	$	781,246	$	688,973	$	586,114	$	384,867	$	946,981	$	64,798	$	—	$	4,183,743
Consumer loans
Home equity
Performing	$	8,580	$	10,634	$	11,756	$	8,886	$	5,340	$	15,393	$	318,869	$	50,879	$	430,337
90 days or more past due	—		—		—		—		25		83		378		730		1,216
Total home equity	8,580		10,634		11,756		8,886		5,365		15,476		319,247		51,609		431,553
Automobile
Performing	426,121		438,181		272,075		151,523		50,853		16,550		—		—		1,355,303
90 days or more past due	19		108		173		223		35		94		—		—		652
Total automobile	426,140		438,289		272,248		151,746		50,888		16,644		—		—		1,355,955
Other Consumer
Performing	12,271		5,558		6,815		1,112		1,077		5,314		880,748		—		912,895
90 days or more past due	—		—		—		—		—		22		5		408		435
Total other consumer	12,271		5,558		6,815		1,112		1,077		5,336		880,753		408		913,330
Total consumer	$	446,991	$	454,481	$	290,819	$	161,744	$	57,330	$	37,456	$	1,200,000	$	52,017	$	2,700,838

Troubled debt restructured loans. 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. If the borrower is experiencing financial difficulties and a concession has been made at the time of such modification, the loan is classified as a troubled debt restructured loan (TDR).

Generally the concessions made for TDRs involve lowering the monthly payments on loans through either a reduction in interest rate below a market rate, an extension of the term of the loan without a corresponding adjustment to the risk premium reflected in the interest rate, or a combination of these two methods. The concessions may also involve payment deferrals but rarely result in the forgiveness of principal or accrued interest. In addition, Valley frequently obtains additional collateral or guarantor support when modifying such loans. If the borrower has demonstrated performance under the previous terms of the loan and Valley’s underwriting process shows the borrower has the capacity to continue to perform under the restructured terms, the loan will continue to accrue interest. Non-accruing restructured loans may be returned to accrual status when there has been a sustained period of repayment performance (generally six consecutive months of payments) and both principal and interest are deemed collectible.


	Three Months Ended September 30,
	2021					2020
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Amortized Carrying Amount		Post-Modification Amortized Carrying Amount		Number of Contracts	Pre-Modification Amortized Carrying Amount		Post-Modification Amortized Carrying Amount
	($ in thousands)
Commercial and industrial	4	$	2,446	$	2,414	28	$	31,237	$	30,938
Commercial real estate:
Commercial real estate	5	14,473		14,539		2	4,249		4,240
Construction	2	17,599		17,599		—	—		—
Total commercial real estate	7	32,072		32,138		2	4,249		4,240
Residential mortgage	4	356		350		1	247		247
Consumer	—	—		—		1	72		72
Total	15	$	34,874	$	34,902	32	$	35,805	$	35,497


	Nine Months Ended September 30,
	2021					2020
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Amortized Carrying Amount		Post-Modification Amortized Carrying Amount		Number of Contracts	Pre-Modification Amortized Carrying Amount		Post-Modification Amortized Carrying Amount
	($ in thousands)
Commercial and industrial	16	$	21,822	$	19,060	33	$	40,537	$	38,204
Commercial real estate:
Commercial real estate	11	26,710		26,730		4	8,996		9,000
Construction	2	17,599		17,599		—	—		—
Total commercial real estate	13	44,309		44,329		4	8,996		9,000
Residential mortgage	12	2,974		2,909		1	247		247
Consumer	1	170		163		1	72		72
Total	42	$	69,275	$	66,461	39	$	49,852	$	47,523

The total TDRs presented in the above table had allocated allowance for loan losses of $8.2 million and $18.7 million at September 30, 2021 and 2020, respectively. There were $206 thousand and $6.0 million of charge-offs related to TDRs for the three and nine months ended September 30, 2021, respectively. There were $1.9 million and $5.6 million of charge-offs related to TDRs for the three and nine months ended September 30, 2020, respectively. Valley did not extend any commitments to lend additional funds to borrowers whose loans have been modified as TDRs during the three and nine months ended September 30, 2021 and 2020.


	Three Months Ended September 30,
	2021			2020
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	—	$	—	30	$	17,496
Commercial real estate	1	419		—	—
Residential mortgage	1	129		—	—

Total	2	$	548	30	$	17,496


	Nine Months Ended September 30,
	2021			2020
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	—	$	—	35	$	20,099
Commercial real estate	1	419		—	—
Residential mortgage	1	129		—	—
Consumer	—	—		1	18
Total	2	$	548	36	$	20,117

Forbearance. In response to the COVID-19 pandemic and its economic impact to certain customers, Valley implemented short-term loan modifications such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment, when requested by customers, all of which were insignificant. As of September 30, 2021, Valley had approximately $98.6 million of outstanding loans remaining in their payment deferral period under short-term modifications as compared to $361.0 million of loans in deferral at December 31, 2020. Under the applicable guidance, none of these loans were classified as TDRs at September 30, 2021 and December 31, 2020.

Loans in Process of Foreclosure. Other real estate owned (OREO) totaled $4.0 million and $5.1 million at September 30, 2021 and December 31, 2020, respectively. OREO included foreclosed residential real estate properties which were immaterial at September 30, 2021 and totaled $1.0 million at December 31, 2020. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $3.0 million and $1.9 million at September 30, 2021 and December 31, 2020, 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 foreclosure is probable, 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.


	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	3,496	$	30,833	$	17,998	$	105,709
Provision for unfunded credit commitments	—		187		3,289		350
Total provision for credit losses for loans	$	3,496	$	31,020	$	21,287	$	106,059


	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	109,689	$	189,139	$	25,303	$	15,193	$	339,324
Loans charged-off	(1,248)		—		—		(771)		(2,019)
Charged-off loans recovered	514		29		228		955		1,726
Net (charge-offs) recoveries	(734)		29		228		184		(293)
(Credit) provision for loan losses	(5,078)		10,553		(799)		(1,180)		3,496
Ending balance	$	103,877	$	199,721	$	24,732	$	14,197	$	342,527
Three Months Ended September 30, 2020
Allowance for losses:
Beginning balance	$	132,039	$	131,702	$	29,630	$	16,243	$	309,614


Loans charged-off	(13,965)		(695)		(7)		(2,458)		(17,125)
Charged-off loans recovered	428		100		31		1,151		1,710
Net (charge-offs) recoveries	(13,537)		(595)		24		(1,307)		(15,415)
Provision (credit) for loan losses	11,907		13,543		(1,040)		6,423		30,833
Ending balance	$	130,409	$	144,650	$	28,614	$	21,359	$	325,032


	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Nine Months Ended September 30, 2021
Allowance for loan losses:
Beginning balance	$	131,070	$	164,113	$	28,873	$	16,187	$	340,243
Loans charged-off	(19,283)		(382)		(139)		(3,389)		(23,193)
Charged-off loans recovered	2,781		763		576		3,359		7,479
Net (charge-offs) recoveries	(16,502)		381		437		(30)		(15,714)
(Credit) provision for loan losses	(10,691)		35,227		(4,578)		(1,960)		17,998
Ending balance	$	103,877	$	199,721	$	24,732	$	14,197	$	342,527
Nine Months Ended September 30, 2020
Allowance for losses:
Beginning balance	$	104,059	$	45,673	$	5,060	$	6,967	$	161,759
Impact of ASU 2016-13 adoption*	15,169		49,797		20,575		6,990		92,531
Beginning balance, adjusted	119,228		95,470		25,635		13,957		254,290
Loans charged-off	(31,349)		(766)		(348)		(7,624)		(40,087)
Charged-off loans recovered	1,796		244		626		2,454		5,120
Net (charge-offs) recoveries	(29,553)		(522)		278		(5,170)		(34,967)
Provision for loan losses	40,734		49,702		2,701		12,572		105,709
Ending balance	$	130,409	$	144,650	$	28,614	$	21,359	$	325,032


	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
September 30, 2021
Allowance for loan losses:
Individually evaluated for credit losses	$	62,661	$	8,093	$	489	$	574	$	71,817
Collectively evaluated for credit losses	41,216		191,628		24,243		13,623		270,710
Total	$	103,877	$	199,721	$	24,732	$	14,197	$	342,527
Loans:
Individually evaluated for credit losses	$	117,656	$	143,181	$	42,441	$	3,264	$	306,542
Collectively evaluated for credit losses	5,517,604		19,573,469		4,289,981		2,919,218		32,300,272
Total	$	5,635,260	$	19,716,650	$	4,332,422	$	2,922,482	$	32,606,814
December 31, 2020
Allowance for loan losses:
Individually evaluated for credit losses	$	73,063	$	1,338	$	1,206	$	264	$	75,871
Collectively evaluated for credit losses	58,007		162,775		27,667		15,923		264,372
Total	$	131,070	$	164,113	$	28,873	$	16,187	$	340,243
Loans:
Individually evaluated for credit losses	$	131,057	$	61,754	$	35,151	$	1,631	$	229,593
Collectively evaluated for credit losses	6,730,651		18,409,069		4,148,592		2,699,207		31,987,519
Total	$	6,861,708	$	18,470,823	$	4,183,743	$	2,700,838	$	32,217,112