Tax Credit Investments (Tables)

9 Months Ended

Sep. 30, 2021

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 September 30, 2021 and December 31, 2020:

	September 30, 2021		December 31, 2020
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	17,231	$	20,074
Other tax credit investments, net	46,880		47,301
Total tax credit investments, net	$	64,111	$	67,375
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,379	$	1,379
Total unfunded tax credit commitments	$	1,379	$	1,379

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 and nine months ended September 30, 2021 and 2020: 

	Three Months Ended September 30,				Nine Months Ended September 30,
	2021		2020		2021		2020
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	948	$	1,352	$	2,744	$	3,979
Other tax credit investment credits and tax benefits	2,702		1,727		8,130		5,567
Total reduction in income tax expense	$	3,650	$	3,079	$	10,874	$	9,546
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	681	$	642	$	1,684	$	1,733
Affordable housing tax credit investment impairment losses	387		585		1,159		1,668
Other tax credit investment losses	256		12		780		1,235
Other tax credit investment impairment losses	1,755		1,520		5,172		4,767
Total amortization of tax credit investments recorded in non-interest expense	$	3,079	$	2,759	$	8,795	$	9,403