10-Q

UNITED STATES

SECURITIES AND EXCHANGE COMMISSION

Washington, DC 20549

FORM 10-Q

(Mark One)

☒ Quarterly Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the Quarterly Period Ended March 31, 2022

OR

☐ Transition Report Pursuant to Section 13 or 15 (d) of the Securities Exchange Act of 1934

For the transition period from                      to                     

Commission File Number 1-11277 

 Valley National Bancorp

(Exact name of registrant as specified in its charter)

New Jersey		22-2477875
(State or other jurisdiction of Incorporation or Organization)		(I.R.S. Employer Identification Number)
One Penn Plaza
New York,	NY	10119
(Address of principal executive office)		(Zip code)

973-305-8800

(Registrant’s telephone number, including area code) 

Securities registered pursuant to Section 12(b) of the Act:

Title of each class	Trading Symbols	Name of exchange on which registered
Common Stock, no par value	VLY	The Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series A, no par value	VLYPP	The Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series B, no par value	VLYPO	The Nasdaq Stock Market LLC

Indicate by check mark whether the registrant (1) has filed all reports required to be filed by Section 13 or 15(d) of the Securities Exchange Act of 1934 during the preceding 12 months (or such shorter period that the registrant was required to file such reports), and (2) has been subject to such filing requirements for the past 90 days.    Yes  ☒    No ☐

Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted pursuant to Rule 405 of Regulation S-T (§232.405 of this chapter) during the preceding 12 months (or for such shorter period that the registrant was required to submit such files.)    Yes  ☒    No  ☐

Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller reporting company or an emerging growth company. See the definitions of "large accelerated filer," "accelerated filer," "smaller reporting company" and "emerging growth company" in Rule 12b-2 of the Exchange Act (check one):

Large accelerated filer	☒	Accelerated filer	☐	Smaller reporting company	☐
Non-accelerated filer	☐			Emerging growth company	☐

If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐

Indicate by check mark whether the registrant is a shell company (as defined in Rule 12b-2 of the Exchange Act).    Yes  ☐    No  ☒

Indicate the number of shares outstanding of each of the issuer’s classes of common stock, as of the latest practicable date. Common Stock (no par value), of which 506,305,454 shares were outstanding as of May 6, 2022.

TABLE OF CONTENTS

		Page Number
PART I	FINANCIAL INFORMATION
Item 1.	Financial Statements (Unaudited)
	Consolidated Statements of Financial Condition as of March 31, 2022 and December 31, 2021	2
	Consolidated Statements of Income for the Three Months Ended March 31, 2022 and 2021	3
	Consolidated Statements of Comprehensive Income for the Three Months Ended March 31, 2022 and 2021	5
	Consolidated Statements of Changes in Shareholders' Equity for the Three Months Ended March 31, 2022 and 2021	6
	Consolidated Statements of Cash Flows for the Three Months Ended March 31, 2022 and 2021	7
	Notes to Consolidated Financial Statements	9
Item 2.	Management’s Discussion and Analysis of Financial Condition and Results of Operations	41
Item 3.	Quantitative and Qualitative Disclosures About Market Risk	72
Item 4.	Controls and Procedures	72
PART II	OTHER INFORMATION
Item 1.	Legal Proceedings	73
Item 1A.	Risk Factors	73
Item 2.	Unregistered Sales of Equity Securities and Use of Proceeds	73
Item 6.	Exhibits	74
SIGNATURES		75

1

PART I - FINANCIAL INFORMATION

Item 1. Financial Statements

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION

(in thousands, except for share data)

	March 31, 2022		December 31, 2021
Assets	(Unaudited)
Cash and due from banks	$	424,035	$	205,156
Interest bearing deposits with banks	306,885		1,844,764
Investment securities:
Equity securities	35,992		36,473
Trading debt securities	11,739		38,130
Available for sale debt securities	1,015,034		1,128,809
Held to maturity debt securities (net of allowance for credit losses of $1,222 at March 31, 2022 and $1,165 at December 31, 2021)	3,071,983		2,667,532
Total investment securities	4,134,748		3,870,944
Loans held for sale, at fair value	77,632		139,516
Loans	35,364,405		34,153,657
Less: Allowance for loan losses	(362,510)		(359,202)
Net loans	35,001,895		33,794,455
Premises and equipment, net	337,479		326,306
Lease right of use assets	258,512		259,117
Bank owned life insurance	566,440		566,770
Accrued interest receivable	102,667		96,882
Goodwill	1,468,354		1,459,008
Other intangible assets, net	74,884		70,386
Other assets	797,926		813,139
Total Assets	$	43,551,457	$	43,446,443
Liabilities
Deposits:
Non-interest bearing	$	11,947,001	$	11,675,748
Interest bearing:
Savings, NOW and money market	20,285,967		20,269,620
Time	3,414,368		3,687,044
Total deposits	35,647,336		35,632,412
Short-term borrowings	484,181		655,726
Long-term borrowings	1,409,142		1,423,676
Junior subordinated debentures issued to capital trusts	56,500		56,413
Lease liabilities	282,437		283,106
Accrued expenses and other liabilities	575,477		311,044
Total Liabilities	38,455,073		38,362,377
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at March 31, 2022 and December 31, 2021)	111,590		111,590
Series B (4,000,000 shares issued at March 31, 2022 and December 31, 2021)	98,101		98,101
Common stock (no par value, authorized 650,000,000 shares; issued 423,034,027 shares at March 31, 2022 and December 31, 2021)	148,482		148,482
Surplus	3,872,236		3,883,035
Retained earnings	945,225		883,645
Accumulated other comprehensive loss	(56,098)		(17,932)
Treasury stock, at cost (1,639,750 common shares at March 31, 2022 and 1,596,959 common shares at December 31, 2021)	(23,152)		(22,855)
Total Shareholders’ Equity	5,096,384		5,084,066
Total Liabilities and Shareholders’ Equity	$	43,551,457	$	43,446,443

See accompanying notes to consolidated financial statements.

2

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited)

(in thousands, except for share data)

	Three Months Ended March 31,
	2022		2021
Interest Income
Interest and fees on loans	$	317,365	$	313,181
Interest and dividends on investment securities:
Taxable	18,439		13,166
Tax-exempt	2,517		3,356
Dividends	1,676		1,871
Interest on federal funds sold and other short-term investments	461		224
Total interest income	340,458		331,798
Interest Expense
Interest on deposits:
Savings, NOW and money market	9,627		11,125
Time	2,831		11,093
Interest on short-term borrowings	806		1,758
Interest on long-term borrowings and junior subordinated debentures	9,525		15,155
Total interest expense	22,789		39,131
Net Interest Income	317,669		292,667
Provision (credit) for credit losses for held to maturity securities	57		(358)
Provision for credit losses for loans	3,500		9,014
Net Interest Income After Provision for Credit Losses	314,112		284,011
Non-Interest Income
Trust and investment services	5,131		3,329
Insurance commissions	1,859		1,558
Service charges on deposit accounts	6,212		5,103
(Losses) gains on securities transactions, net	(1,072)		101
Fees from loan servicing	2,781		2,899
Gains on sales of loans, net	986		3,513
Bank owned life insurance	2,046		2,331
Other	21,327		12,399
Total non-interest income	39,270		31,233
Non-Interest Expense
Salary and employee benefits expense	107,733		88,103
Net occupancy and equipment expense	36,806		32,259
FDIC insurance assessment	4,158		3,276
Amortization of other intangible assets	4,437		6,006
Professional and legal fees	14,749		6,272
Amortization of tax credit investments	2,896		2,744
Telecommunication expense	3,271		3,160
Other	23,290		18,393
Total non-interest expense	197,340		160,213
Income Before Income Taxes	156,042		155,031
Income tax expense	39,314		39,321
Net Income	116,728		115,710
Dividends on preferred stock	3,172		3,172
Net Income Available to Common Shareholders	$	113,556	$	112,538

3

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (continued)

(in thousands, except for share data)

	Three Months Ended March 31,
	2022		2021
Earnings Per Common Share:
Basic	$	0.27	$	0.28
Diluted	0.27		0.28
Cash Dividends Declared per Common Share	0.11		0.11
Weighted Average Number of Common Shares Outstanding:
Basic	421,573,843		405,152,605
Diluted	423,506,550		407,636,765

See accompanying notes to consolidated financial statements.

4

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited)

(in thousands)

	Three Months Ended March 31,
	2022		2021
Net income	$	116,728	$	115,710
Other comprehensive loss, net of tax:
Unrealized gains and losses on available for sale securities
Net losses arising during the period	(38,892)		(10,436)
Less reclassification adjustment for net (gains) losses included in net income	(10)		44
Total	(38,902)		(10,392)
Unrealized gains and losses on derivatives (cash flow hedges)
Net gains on derivatives arising during the period	218		174
Less reclassification adjustment for net losses included in net income	386		651
Total	604		825
Defined benefit pension plan
Amortization of actuarial net loss	132		280
Total other comprehensive loss	(38,166)		(9,287)
Total comprehensive income	$	78,562	$	106,423

See accompanying notes to consolidated financial statements.

5

CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited)

For the Three Months Ended March 31, 2022

			Common Stock							Accumulated
	Preferred Stock		Shares	Amount		Surplus		Retained Earnings		Other Comprehensive Loss		Treasury Stock		Total Shareholders’ Equity
	(in thousands)
Balance - December 31, 2021	$	209,691	421,437	$	148,482	$	3,883,035	$	883,645	$	(17,932)	$	(22,855)	$	5,084,066
Net income	—		—	—		—		116,728		—		—		116,728
Other comprehensive loss, net of tax	—		—	—		—		—		(38,166)		—		(38,166)
Cash dividends declared:
Preferred stock, Series A, $0.39 per share	—		—	—		—		(1,797)		—		—		(1,797)
Preferred stock, Series B, $0.34 per share	—		—	—		—		(1,375)		—		—		(1,375)
Common stock, $0.11 per share	—		—	—		—		(46,803)		—		—		(46,803)
Effect of stock incentive plan, net	—		972	—		(10,799)		(5,173)		—		13,220		(2,752)
Purchase of treasury stock	—		(1,015)	—		—		—		—		(13,517)		(13,517)
Balance - March 31, 2022	$	209,691	421,394	$	148,482	$	3,872,236	$	945,225	$	(56,098)	$	(23,152)	$	5,096,384

For the Three Months Ended March 31, 2021

			Common Stock							Accumulated
	Preferred Stock		Shares	Amount		Surplus		Retained Earnings		Other Comprehensive Loss		Treasury Stock		Total Shareholders’ Equity
	(in thousands)
Balance - December 31, 2020	$	209,691	403,859	$	141,746	$	3,637,468	$	611,158	$	(7,718)	$	(225)	$	4,592,120
Net income	—		—	—		—		115,710		—		—		115,710
Other comprehensive loss, net of tax	—		—	—		—		—		(9,287)		—		(9,287)
Cash dividends declared:
Preferred stock, Series A, $0.39 per share	—		—	—		—		(1,797)		—		—		(1,797)
Preferred stock, Series B, $0.34 per share	—		—	—		—		(1,375)		—		—		(1,375)
Common stock, $0.11 per share	—		—	—		—		(45,281)		—		—		(45,281)
Effect of stock incentive plan, net	—		1,939	689		14,480		(5,764)		—		175		9,580
Balance - March 31, 2021	$	209,691	405,798	$	142,435	$	3,651,948	$	672,651	$	(17,005)	$	(50)	$	4,659,670

See accompanying notes to consolidated financial statements.

6

VALLEY NATIONAL BANCORP

CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited)

(in thousands)

	Three Months Ended March 31,
	2022		2021
Cash flows from operating activities:
Net income	$	116,728	$	115,710
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	14,346		13,848
Stock-based compensation	7,263		5,465
Provision for credit losses	3,557		8,656
Net amortization of premiums and accretion of discounts on securities and borrowings	7,487		8,293
Amortization of other intangible assets	4,437		6,006
Losses (gains) on securities transactions, net	1,072		(101)
Proceeds from sales of loans held for sale	204,628		357,108
Gains on sales of loans, net	(986)		(3,513)
Originations of loans held for sale	(144,485)		(287,765)
Gains on sales of assets, net	64		196
Net change in:
Fair value of borrowings hedged by derivative transactions	(14,696)		—
Trading debt securities	26,391		—
Cash surrender value of bank owned life insurance	(2,046)		(2,331)
Accrued interest receivable	(5,785)		(1,560)
Other assets	12,999		204,948
Accrued expenses and other liabilities	265,029		(111,562)
Net cash provided by operating activities	496,003		313,398
Cash flows from investing activities:
Net loan originations and purchases	(1,210,754)		(475,142)
Equity securities:
Purchases	(662)		(1,878)
Sales	848		319
Held to maturity debt securities:
Purchases	(545,462)		(407,793)
Maturities, calls and principal repayments	136,024		184,163
Available for sale debt securities:
Purchases	(15,000)		—
Sales	—		41,134
Maturities, calls and principal repayments	73,008		164,235
Death benefit proceeds from bank owned life insurance	2,369		1,628
Proceeds from sales of real estate property and equipment	5,692		1,742
Purchases of real estate property and equipment	(22,749)		(8,042)
Cash paid in acquisition	(8,607)		—
Net cash used in investing activities	(1,585,293)		(499,634)

7

VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) (continued) (in thousands)
	Three Months Ended March 31,
	2022		2021
Cash flows from financing activities:
Net change in deposits	$	14,924	$	649,607
Net change in short-term borrowings	(171,545)		(63,292)
Repayments of long-term borrowings	—		(51,769)
Cash dividends paid to preferred shareholders	(3,172)		(3,172)
Cash dividends paid to common shareholders	(46,205)		(45,526)
Purchase of common shares to treasury	(23,627)		(542)
Common stock issued, net	95		5,723
Other, net	(180)		(165)
Net cash (used in) provided by financing activities	(229,710)		490,864
Net change in cash and cash equivalents	(1,319,000)		304,628
Cash and cash equivalents at beginning of year	2,049,920		1,329,205
Cash and cash equivalents at end of period	$	730,920	$	1,633,833
Supplemental disclosures of cash flow information:
Cash payments for:
Interest on deposits and borrowings	$	19,682	$	37,997
Federal and state income taxes	6,842		5,855
Supplemental schedule of non-cash investing activities:
Transfer of loans to other real estate owned	$	—	$	141
Lease right of use assets obtained in exchange for operating lease liabilities	6,836		21
Non-cash net assets acquired	8,607		—

See accompanying notes to consolidated financial statements.

8

VALLEY NATIONAL BANCORP

NOTES TO CONSOLIDATED FINANCIAL STATEMENTS

(Unaudited)

Note 1. Basis of Presentation

The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey corporation (Valley), include the accounts of its commercial bank subsidiary, Valley National Bank (the Bank), and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. Certain prior period amounts have been reclassified to conform to the current presentation.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at March 31, 2022 and for all periods presented have been made. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2021.

Significant Estimates. In preparing the unaudited consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, the evaluation of goodwill and other intangible assets for impairment, and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Actual results may differ from those estimates. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date.

Note 2. Business Combinations

Acquisitions

Landmark Insurance of the Palm Beaches. On February 1, 2022, the Bank's insurance agency subsidiary, Valley Insurance Services, acquired Landmark Insurance of the Palm Beaches Inc. (Landmark) agency. The purchase price included $8.6 million in cash and $1.0 million in contingent consideration. Goodwill and other intangible assets totaled $4.4 million and $6.2 million, respectively. The transaction was accounted for under the acquisition method of accounting and accordingly the results of Landmark's operations have been included in Valley's consolidated financial statements for the three months ended March 31, 2022 from the date of acquisition.

The Westchester Bank Holding Corporation. On December 1, 2021, Valley completed its acquisition of The Westchester Bank Holding Corporation (Westchester) and its principal subsidiary, The Westchester Bank which was headquartered in White Plains, New York. As of December 1, 2021, Westchester had approximately $1.4 billion in assets, $915.0 million in loans, and $1.2 billion in deposits, after purchase accounting adjustments, and a branch network of seven locations in Westchester County, New York. The common shareholders of Westchester

9

received 229.645 shares of Valley common stock for each Westchester share they owned prior to the merger. The total consideration for the merger was $211.1 million, consisting of approximately 15.7 million shares of Valley common stock.

During the first quarter 2022, Valley revised the estimated fair values of the acquired assets as of the acquisition date of Westchester based upon additional information obtained that existed as of December 1, 2021. The adjustments related to the fair value of deferred tax assets and resulted in a $5.0 million increase in goodwill (see Note 9 for more information). If additional information (that existed as of the acquisition date) becomes available, the fair value estimates for acquired assets and assumed liabilities are subject to change for up to one year after the acquisition date.

Recent Acquisition

Bank Leumi Le-Israel Corporation. On April 1, 2022, Valley completed its acquisition of Bank Leumi Le-Israel Corporation, the U.S. subsidiary of Bank Leumi Le-Israel B.M., and parent company of Bank Leumi USA, and collectively referred to as "Bank Leumi USA". Bank Leumi USA maintained its headquarters in New York City with commercial banking offices in Chicago, Los Angeles, Palo Alto, and Aventura, Florida. Valley issued approximately 85 million shares of common stock and paid $113.4 million in cash in the transaction. The common shareholders of Bank Leumi USA received 3.8025 shares of Valley common stock and $5.08 in cash for each Bank Leumi USA common share that they owned. Based on Valley’s closing stock price on March 31, 2022, the transaction was valued at an estimated $1.2 billion, inclusive of the value of options. As a result of the acquisition, Bank Leumi Le-Israel B.M. owned approximately 14 percent of Valley's common stock as of April 1, 2022. As of March 31, 2022, Bank Leumi had approximately $8.3 billion in assets, $6.1 billion of loans and $7.1 billion of deposits. The acquisition supplements Valley’s commercial banking expertise and provides new business capabilities in the technology banking and private banking areas. In addition, the acquisition further diversifies our loan portfolio from a geographic perspective by allowing Valley to enter new markets.

Merger expenses related to the completed and subsequent acquisition activity above totaled $4.4 million for the three months ended March 31, 2022. The merger expenses mainly consisted of salaries and benefits expense, professional and legal fees, and other expense within non-interest expense on the consolidated statements of income. Valley incurred no merger related expenses during the three months ended March 31, 2021.

Note 3. Earnings Per Common Share

The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
	(in thousands, except for share data)
Net income available to common shareholders	$	113,556	$	112,538
Basic weighted average number of common shares outstanding	421,573,843		405,152,605
Plus: Common stock equivalents	1,932,707		2,484,160
Diluted weighted average number of common shares outstanding	423,506,550		407,636,765
Earnings per common share:
Basic	$	0.27	$	0.28
Diluted	0.27		0.28

Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of restricted stock units and common stock options to purchase Valley’s common shares. Common stock options with exercise prices that exceed the average market price per share of Valley’s common stock during the periods presented may have an anti-dilutive effect on the diluted earnings per common

10

share calculation and therefore are excluded from the diluted earnings per share calculation along with restricted stock units. Potential anti-dilutive weighted common shares were immaterial for the three months ended March 31, 2022 and 2021.

Note 4. Accumulated Other Comprehensive Loss

The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three months ended March 31, 2022: 

	Components of Accumulated Other Comprehensive Loss						Total Accumulated Other Comprehensive Loss
	Unrealized Gains and Losses on Available for Sale (AFS) Securities		Unrealized Gains and Losses on Derivatives		Defined Benefit Pension Plan
	(in thousands)
Balance at December 31, 2021	$	9,186	$	(1,332)	$	(25,786)	$	(17,932)
Other comprehensive (loss) gain before reclassification	(38,892)		218		—		(38,674)
Amounts reclassified from other comprehensive (loss) income	(10)		386		132		508
Other comprehensive (loss) income, net	(38,902)		604		132		(38,166)
Balance at March 31, 2022	$	(29,716)	$	(728)	$	(25,654)	$	(56,098)

The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2022 and 2021:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended March 31,
Components of Accumulated Other Comprehensive Loss	2022		2021		Income Statement Line Item
	(in thousands)
Unrealized gains (losses) on AFS securities before tax	$	14	$	(59)	(Losses) gains on securities transactions, net
Tax effect	(4)		15
Total net of tax	10		(44)
Unrealized losses on derivatives (cash flow hedges) before tax	(542)		(915)		Interest expense
Tax effect	156		264
Total net of tax	(386)		(651)
Defined benefit pension plan:
Amortization of actuarial net loss	(183)		(388)		*
Tax effect	51		108
Total net of tax	(132)		(280)
Total reclassifications, net of tax	$	(508)	$	(975)

* Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.

Note 5. New Authoritative Accounting Guidance

New Accounting Guidance Adopted in 2022

Accounting Standards Update (ASU) No. 2021-01 "Reference Rate Reform (Topic 848)" extends some of Accounting Standards Codification Topic 848’s optional expedients to derivative contracts impacted by the discounting transition, including for derivatives that do not reference LIBOR or other reference rates that are expected to be discontinued. ASU No. 2021-01 is effective for all entities immediately upon issuance and may be

11

elected retrospectively to eligible modifications as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications made on or after any date within the interim period including January 7, 2021 and it can be applied through December 31, 2022, similar to the other reference rate reform relief provided under Topic 848. ASU No. 2021-01 is not expected to have a significant impact on Valley’s consolidated financial statements.

ASU No. 2021-05 "Lessors – Certain Leases with Variable Lease Payments" updates guidance in ASC 842, Leases and requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if: (i) the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria; and (ii) the lessor would have recognized a selling loss at lease commencement. Valley adopted ASU No. 2021-05 on January 1, 2022, and the new guidance did not have a significant impact on Valley’s consolidated financial statements.

New Accounting Guidance Issued in 2022

ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging –Portfolio Layer Method” expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges. This method allows entities to designate multiple hedging relationships with a single closed portfolio, and therefore a larger portion of the interest rate risk associated with such a portfolio is eligible to be hedged. ASU No. 2022-01 also clarifies that no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge. ASU No. 2022-01 will be effective for Valley on January 1, 2023, and it is not expected to have a significant impact on Valley's consolidated financial statements.

ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the troubled debt restructuring (TDR) accounting model for creditors, such as Valley, that have adopted Topic 326, “Financial Instruments – Credit Losses.” ASU No. 2022-02 will require all loan modifications to be accounted for under the general loan modification guidance in Subtopic 310-20. On a prospective basis, entities will also be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage. However, gross recoveries will not be required. ASU No. 2022-02 will be effective for Valley on January 1, 2023, with early adoption permitted. Valley is currently evaluating the impact of ASU No. 2022-02 on its consolidated financial statements.

Note 6. Fair Value Measurement of Assets and Liabilities

ASC Topic 820, “Fair Value Measurements” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

•Level 1    - Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date.

•Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets) for substantially the full term of the asset or liability.

•Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

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Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021. The assets presented under “non-recurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). 

	March 31, 2022		Fair Value Measurements at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	30,528	$	19,009	$	—	$	—
Trading debt securities	11,739		—		11,739		—
Available for sale debt securities:
U.S. government agency securities	18,332		—		18,332		—
Obligations of states and political subdivisions	67,951		—		67,951		—
Residential mortgage-backed securities	795,554		—		795,554		—
Corporate and other debt securities	133,197		—		133,197		—
Total available for sale debt securities	1,015,034		—		1,015,034		—
Loans held for sale (2)	77,632		—		77,632		—
Other assets (3)	176,270		—		176,270		—
Total assets	$	1,311,203	$	19,009	$	1,280,675	$	—
Liabilities
Other liabilities (3)	$	189,682	$	—	$	189,682	$	—
Total liabilities	$	189,682	$	—	$	189,682	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,603	$	—	$	—	$	47,603
Foreclosed assets	1,176		—		—		1,176
Total	$	48,779	$	—	$	—	$	48,779

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			Fair Value Measurements at Reporting Date Using:
	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	32,844	$	21,284	$	—	$	—
Trading debt securities	38,130		—		38,130		—
Available for sale debt securities:
U.S. government agency securities	20,925		—		20,925		—
Obligations of states and political subdivisions	79,890		—		79,890		—
Residential mortgage-backed securities	904,502		—		904,502		—
Corporate and other debt securities	123,492		—		123,492		—
Total available for sale debt securities	1,128,809		—		1,128,809		—
Loans held for sale (2)	139,516		—		139,516		—
Other assets (3)	181,500		—		181,500		—
Total assets	$	1,520,799	$	21,284	$	1,487,955	$	—
Liabilities
Other liabilities (3)	$	52,376	$	—	$	52,376	$	—
Total liabilities	$	52,376	$	—	$	52,376	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,871	$	—	$	—	$	47,871
Foreclosed assets	2,931		—		—		2,931
Total	$	50,802	$	—	$	—	$	50,802

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $11.5 million and $11.6 million at March 31, 2022 and December 31, 2021, respectively. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $79.1 million and $136.3 million at March 31, 2022 and December 31, 2021, respectively.

(3)Derivative financial instruments are included in this category.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following valuation techniques were used for financial instruments measured at fair value on a recurring basis. All the valuation techniques described below apply to the unpaid principal balance, excluding any accrued interest or dividends at the measurement date. Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium.

Equity securities. The fair value of equity securities consists of a publicly traded mutual fund, Community Reinvestment Act (CRA) investment fund and an investment related to the development of new financial technologies that are carried at quoted prices in active markets. Valley also has privately held CRA funds measured at NAV, which are excluded from fair value hierarchy levels in the tables above.

Trading debt securities. The fair value of trading debt securities, consisting of municipal bonds, is reported at fair value utilizing Level 2 inputs. The prices for these investments are derived from market quotations and matrix pricing obtained through an independent pricing service. Management reviews the data and assumptions used in

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pricing the securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data.

Available for sale debt securities. U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. The majority of other investment securities are reported at fair value utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the data and assumptions used in pricing the securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data. In addition, Valley reviews the volume and level of activity for all available for sale debt securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume.

Loans held for sale. Residential mortgage loans originated for sale are reported at fair value using Level 2 inputs. The fair values were calculated utilizing quoted prices for similar assets in active markets. The market prices represent a delivery price, which reflects the underlying price each institution would pay Valley for an immediate sale of an aggregate pool of mortgages. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at March 31, 2022 and December 31, 2021 based on the short duration these assets were held, and the credit quality of these loans.

Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The fair values of Valley’s derivatives are determined using third-party prices that are based on discounted cash flow analysis using observed market inputs, such as the LIBOR, Overnight Index Swap and Secured Overnight Financing Rate (SOFR) curves for all cleared derivatives. The fair value of mortgage banking derivatives, consisting of interest rate lock commitments to fund residential mortgage loans and forward commitments for the future delivery of such loans (including certain loans held for sale at March 31, 2022 and December 31, 2021), is determined based on the current market prices for similar instruments. The fair values of most of the derivatives incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to account for potential nonperformance risk of Valley and its counterparties. The credit valuation adjustments were not significant to the overall valuation of Valley’s derivatives at March 31, 2022 and December 31, 2021.

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

The following valuation techniques were used for certain non-financial assets measured at fair value on a non-recurring basis, including collateral dependent loans reported at the fair value of the underlying collateral and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below.

Collateral Dependent Loans. Collateral dependent loans are loans when foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and substantially all of the repayment is expected from the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral. Collateral values are estimated using Level 3 inputs, consisting of individual third-party appraisals that may be adjusted based on certain discounting criteria. Certain real estate appraisals may be discounted based on specific market data by location and property type. At March 31, 2022, collateral dependent loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses based on the fair value of the underlying collateral. At March 31, 2022, collateral dependent loans with a total amortized cost of $114.4 million, including our taxi medallion loan portfolio, were reduced by specific allowance for loan losses allocations totaling $66.8 million to a reported total net carrying amount of $47.6 million.

Foreclosed assets. Certain foreclosed assets (consisting of other real estate owned and other repossessed assets included in other assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value

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using Level 3 inputs, consisting of a third-party appraisal less estimated cost to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, an asset is re-measured and reported at fair value through a write-down recorded in non-interest expense. There were no adjustments to the appraisals of foreclosed assets at March 31, 2022.

Other Fair Value Disclosures

ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented in the following table were based on pertinent market data and relevant information on the financial instruments available as of the valuation date. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire portfolio of financial instruments. Because no market exists for a portion of the financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For instance, Valley has certain fee-generating business lines (e.g., its mortgage servicing operation, trust and investment management departments) that were not considered in these estimates since these activities are not financial instruments. In addition, the tax implications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

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The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021 were as follows: 

	Fair Value Hierarchy	March 31, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	424,035	$	424,035	$	205,156	$	205,156
Interest bearing deposits with banks	Level 1	306,885		306,885		1,844,764		1,844,764
Equity securities (1)	Level 3	5,464		5,464		3,629		3,629
Held to maturity debt securities:
U.S. Treasury securities	Level 1	67,401		68,932		67,558		71,661
U.S. government agency securities	Level 2	5,572		5,453		6,265		6,378
Obligations of states and political subdivisions	Level 2	319,160		318,021		337,962		344,164
Residential mortgage-backed securities	Level 2	2,594,295		2,440,498		2,166,142		2,152,301
Trust preferred securities	Level 2	37,027		31,733		37,020		31,916
Corporate and other debt securities	Level 2	49,750		49,214		53,750		54,185
Total held to maturity debt securities (2)		3,073,205		2,913,851		2,668,697		2,660,605
Net loans	Level 3	35,001,895		33,815,930		33,794,455		33,283,251
Accrued interest receivable	Level 1	102,667		102,667		96,882		96,882
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	195,536		195,536		206,450		206,450
Financial liabilities
Deposits without stated maturities	Level 1	32,232,968		32,232,968		31,945,368		31,945,368
Deposits with stated maturities	Level 2	3,414,368		3,365,608		3,687,044		3,670,113
Short-term borrowings	Level 1	484,181		478,300		655,726		637,490
Long-term borrowings	Level 2	1,409,142		1,336,303		1,423,676		1,404,184
Junior subordinated debentures issued to capital trusts	Level 2	56,500		39,578		56,413		46,306
Accrued interest payable (4)	Level 1	8,016		8,016		4,909		4,909

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.

Note 7. Investment Securities

Equity Securities

Equity securities carried at fair value totaled $36.0 million and $36.5 million at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, Valley's equity securities consisted of one publicly traded mutual fund, CRA investments and to a lesser extent, equity investments related to the development of new financial technologies. Our CRA and other equity investments are a mixture of both publicly traded entities and privately held entities without readily determinable fair market values.

Trading Debt Securities

The fair value of trading debt securities, wholly consisting of municipal bonds, totaled $11.7 million and $38.1 million at March 31, 2022 and December 31, 2021, respectively. Net trading gains and losses were included in net

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gains and losses on securities transactions within non-interest income. We recorded net trading losses of $1.1 million and net trading gains of $219 thousand for three months ended March 31, 2022 and 2021, respectively.

Available for Sale Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2022 and December 31, 2021 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2022
U.S. government agency securities	$	18,448	$	32	$	(148)	$	18,332
Obligations of states and political subdivisions:
Obligations of states and state agencies	25,274		22		(310)		24,986
Municipal bonds	47,270		66		(4,371)		42,965
Total obligations of states and political subdivisions	72,544		88		(4,681)		67,951
Residential mortgage-backed securities	829,222		971		(34,639)		795,554
Corporate and other debt securities	135,550		1,033		(3,386)		133,197
Total	$	1,055,764	$	2,124	$	(42,854)	$	1,015,034
December 31, 2021
U.S. government agency securities	$	20,323	$	608	$	(6)	$	20,925
Obligations of states and political subdivisions:
Obligations of states and state agencies	26,088		132		(93)		26,127
Municipal bonds	53,530		349		(116)		53,763
Total obligations of states and political subdivisions	79,618		481		(209)		79,890
Residential mortgage-backed securities	895,279		14,986		(5,763)		904,502
Corporate and other debt securities	120,871		3,177		(556)		123,492
Total	$	1,116,091	$	19,252	$	(6,534)	$	1,128,809

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The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2022 and December 31, 2021 were as follows: 

	Less than Twelve Months				More than Twelve Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2022
U.S. government agency securities	$	13,880	$	(140)	$	1,292	$	(8)	$	15,172	$	(148)
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,153		(310)		—		—		10,153		(310)
Municipal bonds	31,523		(4,371)		—		—		31,523		(4,371)
Total obligations of states and political subdivisions	41,676		(4,681)		—		—		41,676		(4,681)
Residential mortgage-backed securities	688,282		(31,427)		39,143		(3,212)		727,425		(34,639)
Corporate and other debt securities	74,665		(3,386)		—		—		74,665		(3,386)
Total	$	818,503	$	(39,634)	$	40,435	$	(3,220)	$	858,938	$	(42,854)
December 31, 2021
U.S. government agency securities	$	—	$	—	$	1,326	$	(6)	$	1,326	$	(6)
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,549		(93)		—		—		10,549		(93)
Municipal bonds	19,100		(116)		—		—		19,100		(116)
Total obligations of states and political subdivisions	29,649		(209)		—		—		29,649		(209)
Residential mortgage-backed securities	371,256		(4,770)		25,960		(993)		397,216		(5,763)
Corporate and other debt securities	59,039		(556)		—		—		59,039		(556)
Total	$	459,944	$	(5,535)	$	27,286	$	(999)	$	487,230	$	(6,534)

Within the available for sale debt securities portfolio, the total number of security positions in an unrealized loss position was 404 and 139 at March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, the fair value of available for sale debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $488.5 million.

The contractual maturities of available for sale debt securities at March 31, 2022 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.

	March 31, 2022
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	11,305	$	11,303
Due after one year through five years	23,241		23,375
Due after five years through ten years	103,691		102,991
Due after ten years	88,305		81,811
Residential mortgage-backed securities	829,222		795,554
Total	$	1,055,764	$	1,015,034

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Actual maturities of available for sale debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.

The weighted average remaining expected life for residential mortgage-backed securities available for sale was 5.0 years at March 31, 2022.

Impairment Analysis of Available For Sale Debt Securities

Valley's available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges by Valley as a result of the unpredictable nature of the U.S. economy and its potential negative effect on the future performance of the security issuers, including due to the economic effects of the COVID-19 pandemic.

Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Valley has evaluated available for sale debt securities that are in an unrealized loss position as of March 31, 2022 included in the table above and has determined that the declines in fair value are mainly attributable to market volatility, not credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, management recognized no impairment during the three months ended March 31, 2022 and 2021. There was no allowance for credit losses for available for sale debt securities at March 31, 2022 and December 31, 2021.

Held to Maturity Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2022 and December 31, 2021 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2022
U.S. Treasury securities	$	67,401	$	1,531	$	—	$	68,932
U.S. government agency securities	5,572		—		(119)		5,453
Obligations of states and political subdivisions:
Obligations of states and state agencies	132,017		648		(1,054)		131,611
Municipal bonds	187,143		871		(1,604)		186,410
Total obligations of states and political subdivisions	319,160		1,519		(2,658)		318,021
Residential mortgage-backed securities	2,594,295		1,993		(155,790)		2,440,498
Trust preferred securities	37,027		4		(5,298)		31,733
Corporate and other debt securities	49,750		181		(717)		49,214
Total	$	3,073,205	$	5,228	$	(164,582)	$	2,913,851
December 31, 2021
U.S. Treasury securities	$	67,558	$	4,103	$	—	$	71,661
U.S. government agency securities	6,265		113		—		6,378
Obligations of states and political subdivisions:
Obligations of states and state agencies	141,015		3,065		(312)		143,768
Municipal bonds	196,947		3,536		(87)		200,396
Total obligations of states and political subdivisions	337,962		6,601		(399)		344,164
Residential mortgage-backed securities	2,166,142		14,599		(28,440)		2,152,301
Trust preferred securities	37,020		5		(5,109)		31,916
Corporate and other debt securities	53,750		559		(124)		54,185
Total	$	2,668,697	$	25,980	$	(34,072)	$	2,660,605

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The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2022 and December 31, 2021 were as follows: 

	Less than Twelve Months				More than Twelve Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2022
U.S. government agency securities	$	4,092	$	(119)	$	—	$	—	$	4,092	$	(119)
Obligations of states and political subdivisions:
Obligations of states and state agencies	38,979		(815)		5,317		(239)		44,296		(1,054)
Municipal bonds	25,255		(1,514)		1,305		(90)		26,560		(1,604)
Total obligations of states and political subdivisions	64,234		(2,329)		6,622		(329)		70,856		(2,658)
Residential mortgage-backed securities	1,786,943		(105,507)		533,425		(50,283)		2,320,368		(155,790)
Trust preferred securities	—		—		30,729		(5,298)		30,729		(5,298)
Corporate and other debt securities	37,783		(717)		—		—		37,783		(717)
Total	$	1,893,052	$	(108,672)	$	570,776	$	(55,910)	$	2,463,828	$	(164,582)
December 31, 2021
Obligations of states and political subdivisions:
Obligations of states and state agencies	$	17,000	$	(254)	$	5,517	$	(58)	$	22,517	$	(312)
Municipal bonds	9,403		(87)		—		—		9,403		(87)
Total obligations of states and political subdivisions	26,403		(341)		5,517		(58)		31,920		(399)
Residential mortgage-backed securities	1,381,405		(22,365)		206,520		(6,075)		1,587,925		(28,440)
Trust preferred securities	—		—		30,912		(5,109)		30,912		(5,109)
Corporate and other debt securities	32,627		(124)		—		—		32,627		(124)
Total	$	1,440,435	$	(22,830)	$	242,949	$	(11,242)	$	1,683,384	$	(34,072)

Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 303 and 108 at March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, the fair value of debt securities held to maturity that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $909.7 million.

The contractual maturities of investments in debt securities held to maturity at March 31, 2022 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.  

	March 31, 2022
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	39,603	$	39,663
Due after one year through five years	215,490		217,668
Due after five years through ten years	46,097		45,919
Due after ten years	177,720		170,103
Residential mortgage-backed securities	2,594,295		2,440,498
Total	$	3,073,205	$	2,913,851

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Actual maturities of held to maturity debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.

The weighted-average remaining expected life for residential mortgage-backed securities held to maturity was 7.9 years at March 31, 2022.

Credit Quality Indicators

Valley monitors the credit quality of the held to maturity debt securities through the use of the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2022 and December 31, 2021.

	AAA/AA/A Rated		BBB rated		Non-investment grade rated		Non-rated		Total
	(in thousands)
March 31, 2022
U.S. Treasury securities	$	67,401	$	—	$	—	$	—	$	67,401
U.S. government agency securities	5,572		—		—		—		5,572
Obligations of states and political subdivisions:
Obligations of states and state agencies	110,710		—		5,556		15,751		132,017
Municipal bonds	135,463		—		—		51,680		187,143
Total obligations of states and political subdivisions	246,173		—		5,556		67,431		319,160
Residential mortgage-backed securities	2,594,295		—		—		—		2,594,295
Trust preferred securities	—		—		—		37,027		37,027
Corporate and other debt securities	2,000		6,000		—		41,750		49,750
Total	$	2,915,441	$	6,000	$	5,556	$	146,208	$	3,073,205
December 31, 2021
U.S. Treasury securities	$	67,558	$	—	$	—	$	—	$	67,558
U.S. government agency securities	6,265		—		—		—		6,265
Obligations of states and political subdivisions:
Obligations of states and state agencies	118,368		—		5,576		17,071		141,015
Municipal bonds	148,854		—		—		48,093		196,947
Total obligations of states and political subdivisions	267,222		—		5,576		65,164		337,962
Residential mortgage-backed securities	2,166,142		—		—		—		2,166,142
Trust preferred securities	—		—		—		37,020		37,020
Corporate and other debt securities	2,000		6,000		—		45,750		53,750
Total	$	2,509,187	$	6,000	$	5,576	$	147,934	$	2,668,697

Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At March 31, 2022, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the "non-rated" category included TEMS securities secured by Ginnie Mae securities. Trust preferred securities consist of non-rated single-issuer securities, issued by bank holding companies. Corporate bonds consist of debt primarily issued by banks.

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this

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exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds called TEMS.

At March 31, 2022, held to maturity debt securities were carried net of allowance for credit losses totaling $1.2 million and $1.2 million at March 31, 2022 and December 31, 2021, respectively. Valley recorded provision for credit losses of $57 thousand for the three months ended March 31, 2022 and a credit (negative) provision for credit losses of $358 thousand for the three months ended March 31, 2021.

Note 8. Loans and Allowance for Credit Losses for Loans

The detail of the loan portfolio as of March 31, 2022 and December 31, 2021 was as follows: 

	March 31, 2022		December 31, 2021
	(in thousands)
Loans:
Commercial and industrial:
Commercial and industrial	$	5,587,781	$	5,411,601
Commercial and industrial PPP loans *	203,609		435,950
Total commercial and industrial loans	5,791,390		5,847,551
Commercial real estate:
Commercial real estate	19,763,202		18,935,486
Construction	2,174,542		1,854,580
Total commercial real estate loans	21,937,744		20,790,066
Residential mortgage	4,691,935		4,545,064
Consumer:
Home equity	393,538		400,779
Automobile	1,552,928		1,570,036
Other consumer	996,870		1,000,161
Total consumer loans	2,943,336		2,970,976
Total loans	$	35,364,405	$	34,153,657

*Represents SBA Paycheck Protection Program (PPP) loans, net of unearned fees totaling $5.9 million and $12.1 million at March 31, 2022 and December 31, 2021, respectively.

Total loans includes net unearned discounts and deferred loan fees of $62.0 million and $78.5 million at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $87.6 million and $83.7 million at March 31, 2022 and December 31, 2021, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

There were no sales of loans from the held for investment portfolio during the three months ended March 31, 2022 and 2021.

Credit Risk Management

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

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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, 2021 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, 2022 and December 31, 2021:

	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, 2022
Commercial and industrial	$	6,723	$	14,461	$	9,261	$	96,631	$	127,076	$	5,664,314	$	5,791,390	$	8,341
Commercial real estate:
Commercial real estate	30,807		6,314		—		79,180		116,301		19,646,901		19,763,202		66,191
Construction	1,708		3,125		—		17,618		22,451		2,152,091		2,174,542		—
Total commercial real estate loans	32,515		9,439		—		96,798		138,752		21,798,992		21,937,744		66,191
Residential mortgage	9,266		2,560		1,746		33,275		46,847		4,645,088		4,691,935		19,227
Consumer loans:
Home equity	38		42		—		3,382		3,462		390,076		393,538		3
Automobile	4,687		458		4		273		5,422		1,547,506		1,552,928		—
Other consumer	1,137		54		396		99		1,686		995,184		996,870		—
Total consumer loans	5,862		554		400		3,754		10,570		2,932,766		2,943,336		3
Total	$	54,366	$	27,014	$	11,407	$	230,458	$	323,245	$	35,041,160	$	35,364,405	$	93,762

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	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)
December 31, 2021
Commercial and industrial	$	6,717	$	7,870	$	1,273	$	99,918	$	115,778	$	5,731,773	$	5,847,551	$	9,066
Commercial real estate:
Commercial real estate	14,421		—		32		83,592		98,045		18,837,441		18,935,486		70,719
Construction	1,941		—		—		17,641		19,582		1,834,998		1,854,580		—
Total commercial real estate loans	16,362		—		32		101,233		117,627		20,672,439		20,790,066		70,719
Residential mortgage	10,999		3,314		677		35,207		50,197		4,494,867		4,545,064		20,401
Consumer loans:
Home equity	242		98		—		3,517		3,857		396,922		400,779		4
Automobile	6,391		656		271		240		7,558		1,562,478		1,570,036		—
Other consumer	178		266		518		101		1,063		999,098		1,000,161		—
Total consumer loans	6,811		1,020		789		3,858		12,478		2,958,498		2,970,976		4
Total	$	40,889	$	12,204	$	2,771	$	240,216	$	296,080	$	33,857,577	$	34,153,657	$	100,190

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.

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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, 2022 and December 31, 2021:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	337,060	$	1,224,531	$	705,495	$	414,559	$	327,590	$	443,359	$	2,094,405	$	208	$	5,547,207
Special Mention	197		4,469		716		3,087		13,566		9,848		97,834		11		129,728
Substandard	28		2,144		5,728		3,387		570		6,286		10,497		110		28,750
Doubtful	—		—		—		2,717		—		82,988		—		—		85,705
Total commercial and industrial	$	337,285	$	1,231,144	$	711,939	$	423,750	$	341,726	$	542,481	$	2,202,736	$	329	$	5,791,390
Commercial real estate
Risk Rating:
Pass	$	1,301,030	$	4,505,671	$	3,074,999	$	2,564,818	$	1,654,197	$	5,685,062	$	203,527	$	13,286	$	19,002,590
Special Mention	3,890		22,188		69,992		32,837		84,259		176,080		9,684		—		398,930
Substandard	—		10,193		39,207		36,344		42,625		224,972		8,160		—		361,501
Doubtful	—		—		—		—		—		181		—		—		181
Total commercial real estate	$	1,304,920	$	4,538,052	$	3,184,198	$	2,633,999	$	1,781,081	$	6,086,295	$	221,371	$	13,286	$	19,763,202
Construction
Risk Rating:
Pass	$	31,645	$	313,251	$	88,262	$	44,544	$	13,381	$	17,718	$	1,623,723	$	—	$	2,132,524
Special Mention	—		—		—		1,001		—		—		21,467		—		22,468
Substandard	—		—		—		1		—		17,841		1,708		—		19,550
Total construction	$	31,645	$	313,251	$	88,262	$	45,546	$	13,381	$	35,559	$	1,646,898	$	—	$	2,174,542

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	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 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	$	1,563,050	$	743,165	$	461,022	$	362,748	$	143,753	$	337,713	$	1,968,513	$	247	$	5,580,211
Special Mention	4,182		1,195		3,217		14,143		1,726		9,869		102,145		40		136,517
Substandard	8,248		4,823		3,139		7,077		910		408		19,642		109		44,356
Doubtful	—		—		2,733		—		16,355		67,379		—		—		86,467
Total commercial and industrial	$	1,575,480	$	749,183	$	470,111	$	383,968	$	162,744	$	415,369	$	2,090,300	$	396	$	5,847,551
Commercial real estate
Risk Rating:
Pass	$	4,517,917	$	2,983,140	$	2,702,580	$	1,734,922	$	1,474,770	$	4,557,011	$	195,851	$	13,380	$	18,179,571
Special Mention	7,700		50,019		46,911		44,187		65,623		143,540		50,168		—		408,148
Substandard	735		34,655		29,029		41,231		70,941		169,041		1,949		—		347,581
Doubtful	—		—		—		—		—		186		—		—		186
Total commercial real estate	$	4,526,352	$	3,067,814	$	2,778,520	$	1,820,340	$	1,611,334	$	4,869,778	$	247,968	$	13,380	$	18,935,486
Construction
Risk Rating:
Pass	$	274,097	$	98,609	$	48,555	$	32,781	$	6,061	$	28,419	$	1,313,555	$	—	$	1,802,077
Special Mention	4,131		—		1,009		—		—		—		18,449		—		23,589
Substandard	199		19		6		246		—		17,842		10,602		—		28,914
Total construction	$	278,427	$	98,628	$	49,570	$	33,027	$	6,061	$	46,261	$	1,342,606	$	—	$	1,854,580

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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 March 31, 2022 and December 31, 2021.

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	394,913	$	1,487,234	$	603,092	$	563,634	$	345,807	$	1,220,733	$	69,458	$	—	$	4,684,871
90 days or more past due	—		—		542		1,663		4,094		765		—		—		7,064
Total residential mortgage	$	394,913	$	1,487,234	$	603,634	$	565,297	$	349,901	$	1,221,498	$	69,458	$	—	$	4,691,935
Consumer loans
Home equity
Performing	$	5,735	$	13,431	$	5,258	$	6,173	$	6,486	$	16,775	$	298,122	$	40,566	$	392,546
90 days or more past due	—		—		—		—		—		2		400		590		992
Total home equity	5,735		13,431		5,258		6,173		6,486		16,777		298,522		41,156		393,538
Automobile
Performing	142,530		678,425		279,849		245,235		134,274		71,935		—		—		1,552,248
90 days or more past due	—		134		103		154		159		130		—		—		680
Total automobile	142,530		678,559		279,952		245,389		134,433		72,065		—		—		1,552,928
Other consumer
Performing	7,033		4,215		6,368		6,419		6,836		9,527		956,468		—		996,866
90 days or more past due	—		—		—		—		—		—		4		—		4
Total other consumer	7,033		4,215		6,368		6,419		6,836		9,527		956,472		—		996,870
Total consumer	$	155,298	$	696,205	$	291,578	$	257,981	$	147,755	$	98,369	$	1,254,994	$	41,156	$	2,943,336

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	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 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	$	1,448,602	$	635,531	$	572,911	$	425,152	$	368,164	$	1,014,190	$	70,342	$	—	$	4,534,892
90 days or more past due	—		357		2,627		2,056		2,794		2,338		—		—		10,172
Total residential mortgage	$	1,448,602	$	635,888	$	575,538	$	427,208	$	370,958	$	1,016,528	$	70,342	$	—	$	4,545,064
Consumer loans
Home equity
Performing	$	13,847	$	5,723	$	6,994	$	7,384	$	5,359	$	13,597	$	303,888	$	42,822	$	399,614
90 days or more past due	—		—		—		—		—		35		536		594		1,165
Total home equity	13,847		5,723		6,994		7,384		5,359		13,632		304,424		43,416		400,779
Automobile
Performing	735,446		309,856		278,828		157,450		72,753		15,171		—		—		1,569,504
90 days or more past due	129		—		78		163		81		81		—		—		532
Total automobile	735,575		309,856		278,906		157,613		72,834		15,252		—		—		1,570,036
Other consumer
Performing	2,949		6,717		6,468		7,017		1,009		14,483		961,027		—		999,670
90 days or more past due	—		—		—		—		—		—		491		—		491
Total other consumer	2,949		6,717		6,468		7,017		1,009		14,483		961,518		—		1,000,161
Total consumer	$	752,371	$	322,296	$	292,368	$	172,014	$	79,202	$	43,367	$	1,265,942	$	43,416	$	2,970,976

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.

Performing TDRs (not reported as non-accrual loans) totaled $56.5 million and $71.3 million as of March 31, 2022 and December 31, 2021, respectively. Non-performing TDRs totaled $104.7 million and $117.2 million as of March 31, 2022 and December 31, 2021, respectively.

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The following table presents the pre- and post-modification amortized cost of loans by loan class modified as TDRs during the three months ended March 31, 2022 and 2021. Post-modification amounts are presented as of March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022					2021
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	11	$	9,684	$	9,662	5	$	13,744	$	13,307
Commercial real estate	2	5,260		5,251		2	4,197		4,185
Residential mortgage	1	121		117		6	1,528		1,518
Consumer	—	—		—		1	170		168
Total	14	$	15,065	$	15,030	14	$	19,639	$	19,178

The total TDRs presented in the above table had allocated allowance for loan losses of $7.8 million and $3.4 million at March 31, 2022 and 2021, respectively. There were no charge-offs related to TDRs for the three months ended March 31, 2022. There were charge-offs of $5.1 million related to TDRs for the three months ended March 31, 2021. Valley did not extend any commitments to lend additional funds to borrowers whose loans have been modified as TDRs during the three months ended March 31, 2022 and 2021.

Loans modified as TDRs within the previous 12 months and for which there was a payment default (90 or more days past due) for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
	2022			2021
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	2	$	1,850	16	$	12,384
Construction	2	17,599		—	—
Residential mortgage	—	—		3	655
Total	4	$	19,449	19	$	13,039

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. As of March 31, 2022, Valley had $23.0 million of outstanding loans remaining in their payment deferral period under short-term modifications as compared to $27.9 million of loans in deferral at December 31, 2021. Under the applicable accounting and regulatory guidance, none of these loans were classified as TDRs at March 31, 2022 and December 31, 2021.

Loans in Process of Foreclosure. Other real estate owned (OREO) totaled $1.0 million and $2.3 million at March 31, 2022 and December 31, 2021, respectively. There were no foreclosed residential real estate properties included in OREO at March 31, 2022 and at December 31, 2021. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.8 million and $2.5 million at March 31, 2022 and December 31, 2021, 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

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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, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	93,389	$	95,335
Commercial real estate:
Commercial real estate	92,402		110,174
Construction	19,307		—
Total commercial real estate loans	111,709		110,174
Residential mortgage	25,704		35,745
Home equity	3		4
Total	$	230,805	$	241,258

*    Commercial and industrial loans are primarily collateralized by taxi medallions.

Allowance for Credit Losses for Loans

The following table summarizes the allowance for credit losses for loans at March 31, 2022 and December 31, 2021: 

	March 31, 2022		December 31, 2021
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	362,510	$	359,202
Allowance for unfunded credit commitments	16,742		16,500
Total allowance for credit losses for loans	$	379,252	$	375,702

The following table summarizes the provision for credit losses for loans for the periods indicated:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	3,258	$	8,692
Provision for unfunded credit commitments	242		322
Total provision for credit losses for loans	$	3,500	$	9,014

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The following table details the activity in the allowance for loan losses by loan portfolio segment for the three months ended March 31, 2022 and 2021: 

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans charged-off	(1,571)		(173)		(26)		(825)		(2,595)
Charged-off loans recovered	824		107		457		1,257		2,645
Net (charge-offs) recoveries	(747)		(66)		431		432		50
(Credit) provision for loan losses	(1,140)		2,525		2,638		(765)		3,258
Ending balance	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510
Three Months Ended March 31, 2021
Allowance for losses:
Beginning balance	$	131,070	$	164,113	$	28,873	$	16,187	$	340,243
Loans charged-off	(7,142)		(382)		(138)		(1,138)		(8,800)
Charged-off loans recovered	1,589		69		157		930		2,745
Net (charge-offs) recoveries	(5,553)		(313)		19		(208)		(6,055)
Provision (credit) for loan losses	891		10,436		(1,720)		(915)		8,692
Ending balance	$	126,408	$	174,236	$	27,172	$	15,064	$	342,880

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, 2022 and December 31, 2021.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
March 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	62,500	$	6,303	$	641	$	179	$	69,623
Collectively evaluated for credit losses	38,703		213,646		27,548		12,990		292,887
Total	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510
Loans:
Individually evaluated for credit losses	$	103,534	$	128,583	$	34,696	$	1,553	$	268,366
Collectively evaluated for credit losses	5,687,856		21,809,161		4,657,239		2,941,783		35,096,039
Total	$	5,791,390	$	21,937,744	$	4,691,935	$	2,943,336	$	35,364,405
December 31, 2021
Allowance for loan losses:
Individually evaluated for credit losses	$	64,359	$	6,277	$	470	$	390	$	71,496
Collectively evaluated for credit losses	38,731		211,213		24,650		13,112		287,706
Total	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans:
Individually evaluated for credit losses	$	119,760	$	134,135	$	42,469	$	2,431	$	298,795
Collectively evaluated for credit losses	5,727,791		20,655,931		4,502,595		2,968,545		33,854,862
Total	$	5,847,551	$	20,790,066	$	4,545,064	$	2,970,976	$	34,153,657

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Note 9. Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were:

	Business Segment / Reporting Unit *
	Wealth Management		Consumer Lending		Commercial Lending		Investment Management		Total
	(in thousands)
Balance at December 31, 2021	$	34,315	$	308,248	$	896,015	$	220,430	$	1,459,008
Goodwill from business combinations	4,370		85		4,866		25		9,346
Balance at March 31, 2022	$	38,685	$	308,333	$	900,881	$	220,455	$	1,468,354

*    Valley’s Wealth Management Division is comprised of trust, asset management, insurance and tax credit advisory services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.

The goodwill from business combinations set forth in the above table during the three months ended March 31, 2022, related to the acquisition of Landmark by our insurance agency subsidiary and an adjustment to goodwill from the Westchester acquisition. The Landmark transaction resulted in $4.4 million of goodwill which was allocated entirely to the Wealth Management reporting unit. During the three months ended March 31, 2022, Valley recorded $5.0 million of additional goodwill reflecting an adjustment to the deferred tax assets acquired from Westchester as of the acquisition date. See Note 2 for details related to these acquisitions.

There was no impairment of goodwill recognized during the three months ended March 31, 2022 and 2021.

The following table summarizes other intangible assets as of March 31, 2022 and December 31, 2021: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2022
Loan servicing rights	$	117,363	$	(92,133)	$	25,230
Core deposits	109,290		(68,373)		40,917
Other	12,299		(3,562)		8,737
Total other intangible assets	$	238,952	$	(164,068)	$	74,884
December 31, 2021
Loan servicing rights	$	114,636	$	(90,951)	$	23,685
Core deposits	109,290		(65,488)		43,802
Other	6,092		(3,193)		2,899
Total other intangible assets	$	230,018	$	(159,632)	$	70,386

Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value.

There was no net impairment recognized during the three months ended March 31, 2022. Valley recorded net recoveries of impairment charges on its loan servicing rights totaling $791 thousand for the three months ended March 31, 2021.

Core deposits are amortized using an accelerated method and have a weighted average amortization period of 9.2 years. The line item labeled “Other” included in the table above primarily consists of certain financial asset

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servicing contracts, customer lists and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 4.8 years.

Valley recorded $6.2 million of other intangible assets during the three months ended March 31, 2022 resulting from the Landmark acquisition. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three months ended March 31, 2022 and 2021.

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2022 through 2026: 

	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2022	$	2,660	$	8,516	$	1,372
2023	3,146		9,510		1,600
2024	2,733		7,740		1,401
2025	2,368		5,970		1,202
2026	2,039		4,225		998

Valley recognized amortization expense on other intangible assets totaling approximately $4.4 million and $6.0 million (including net recoveries of impairment charges on loan servicing rights) for the three months ended March 31, 2022 and 2021, respectively.

Note 10. Stock–Based Compensation

On April 19, 2021, Valley's shareholders approved the Valley National Bancorp 2021 Incentive Compensation Plan (the 2021 Plan) administered by the Compensation and Human Capital Management Committee (the Committee) as appointed by Valley's Board of Directors. The purposes of the 2021 Plan are to provide additional incentives to officers and key employees of Valley and its subsidiaries, whose substantial contributions are essential to the continued growth and success of Valley, and to attract and retain officers, other employees and non-employee directors whose efforts will result in the continued and long-term growth of Valley's business.

As of March 31, 2022, 6.1 million shares of common stock were available for issuance under the 2021 Plan. The essential features of each award are described in the award agreement relating to that award. The grant, exercise, vesting, settlement or payment of an award may be based upon the fair value of Valley's common stock on the last sale price reported for Valley's common stock on such date or the last sale price reported preceding such date, except for performance-based awards with a market condition. The grant date fair values of performance-based awards that vest based on a market condition are determined by a third-party specialist using a Monte Carlo valuation model.

Valley granted 1.2 million and 1.1 million of time-based restricted stock units (RSUs) during the three months ended March 31, 2022 and 2021, respectively. Generally, time-based RSUs vest ratably over a three-year period. The average grant date fair value of the RSUs granted during the three months ended March 31, 2022 and 2021 was $14.05 per share and $11.75 per share, respectively.

Valley granted 567 thousand and 604 thousand of performance-based RSUs to certain officers for the three months ended March 31, 2022 and 2021, respectively. The performance-based RSU awards include RSUs with vesting conditions based upon certain levels of growth in Valley's tangible book value per share plus dividends and RSUs with vesting conditions based upon Valley's total shareholder return as compared to its peer group. The RSUs “cliff” vest after three years based on the cumulative performance of Valley during that time period. The RSUs earn dividend equivalents (equal to cash dividends paid on Valley's common stock) over the applicable performance period. Dividend equivalents are accumulated and paid to the grantee at the vesting date or forfeited if the performance conditions are not met. The grant date fair value of the performance-based RSUs granted during the three months ended March 31, 2022 and 2021 was $14.82 per share and $12.36 per share, respectively.

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Valley recorded total stock-based compensation expense of $7.3 million and $5.5 million for the three months ended March 31, 2022 and 2021, respectively. The fair values of stock awards are expensed over the shorter of the vesting or required service period. As of March 31, 2022, the unrecognized amortization expense for all stock-based employee compensation totaled approximately $38.4 million and will be recognized over an average remaining vesting period of approximately 2.21 years.

Note 11. Derivative Instruments and Hedging Activities

Valley enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

Fair Value Hedges of Fixed Rate Assets and Liabilities. Valley is exposed to changes in the fair value of fixed-rate subordinated debt due to changes in interest rates. From time to time, Valley uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of variable rate payments from a counterparty in exchange for Valley making fixed rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in earnings.

Cash Flow Hedges of Interest Rate Risk. Valley’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, Valley uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively.

Valley had five interest rate swaps with a total notional amount of $500 million mature during the three months ended March 31, 2022. These swaps were used to hedge the changes in cash flows associated with certain short-term Federal Home Loan Bank of New York (FHLB) advances.

Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. Derivatives not designated as hedges are not entered into for speculative purposes.

Valley executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Valley executes with a third party, such that Valley minimizes its net risk exposure resulting from such transactions. As these interest rate swaps do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.

Valley sometimes enters into risk participation agreements with external lenders where the banks are sharing their risk of default on the interest rate swaps on participated loans. Valley either pays or receives a fee depending on the participation type. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value in credit derivatives are recognized directly in earnings. At March 31, 2022, Valley had 25 credit swaps with an aggregate notional amount of $245.6 million related to risk participation agreements. 

At March 31, 2022, Valley had two “steepener” swaps, each with a current notional amount of $10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and the rates paid on these types of hybrid instruments are based on a formula derived from the spread between the long and short ends of the constant maturity swap (CMS) rate curve. Although these types of instruments do not meet the hedge accounting requirements, the change in fair value of both the bifurcated derivative and the stand alone swap tend to move in opposite directions with changes in the three-month LIBOR rate and therefore provide an effective economic hedge.

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Valley regularly enters into mortgage banking derivatives which are non-designated hedges. These derivatives include interest rate lock commitments provided to customers to fund certain residential mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. Valley enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rate on Valley's commitments to fund the loans as well as on its portfolio of mortgage loans held for sale.

Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: 

	March 31, 2022						December 31, 2021
	Fair Value						Fair Value
	Other Assets		Other Liabilities		Notional Amount		Other Assets		Other Liabilities		Notional Amount
	(in thousands)
Derivatives designated as hedging instruments:
Cash flow hedge interest rate swaps	$	590	$	—	$	200,000	$	—	$	310	$	700,000
Fair value hedge interest rate swaps	—		16,634		300,000		—		3,335		300,000
Total derivatives designated as hedging instruments	$	590	$	16,634	$	500,000	$	—	$	3,645	$	1,000,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*	$	172,393	$	171,610	$	11,264,601	$	181,012	$	47,277	$	10,301,460
Mortgage banking derivatives	3,287		1,438		181,017		488		1,454		312,428
Total derivatives not designated as hedging instruments	$	175,680	$	173,048	$	11,445,618	$	181,500	$	48,731	$	10,613,888

*    Other derivatives include risk participation agreements.

The Chicago Mercantile Exchange and London Clearing House variation margins are classified as a single-unit of account as settlements of the cash flow hedges and other non-designated derivative instruments. As a result, the fair value of the applicable derivative assets and liabilities are reported net of variation margin at March 31, 2022 and December 31, 2021 in the table above.

Gains (losses) included in the consolidated statements of income and other comprehensive income (loss), on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(542)	$	(915)
Amount of gain recognized in other comprehensive income (loss)	320		177

The accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $728 thousand and $1.3 million at March 31, 2022 and December 31, 2021, respectively.

Amounts reported in accumulated other comprehensive loss related to cash flow interest rate derivatives are reclassified to interest expense as interest payments are made on the hedged variable interest rate liabilities. Valley estimates that $485 thousand will be reclassified as an increase to interest expense over the next 12 months.

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Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 

	Three Months Ended March 31,
	2022	2021
	(in thousands)
Derivative - interest rate swap:
Interest expense	530	—
Hedged item - subordinated debt
Interest expense	(530)	—

The changes in the fair value of the hedged item designated as a qualifying hedge are captured as an

adjustment to the carrying amount of the hedged item (basis adjustment). The following table presents the hedged item related to interest rate derivatives designated as fair value hedges and the cumulative basis fair value adjustment included in the net carrying amount of the hedged item at March 31, 2022.

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
	(in thousands)
Long-term borrowings	$	282,443	$	(17,557)

The net gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$	(2,797)	$	(1,785)

Other non-interest income included fee income related to non-designated hedge derivative interest rate swaps (not designated as hedging instruments) executed with commercial loan customers totaling $14.0 million and $6.2 million for the three months ended March 31, 2022 and 2021, respectively.

Credit Risk Related Contingent Features. By using derivatives, Valley is exposed to credit risk if counterparties to the derivative contracts do not perform as expected. Management attempts to minimize counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral where appropriate. Credit risk exposure associated with derivative contracts is managed at Valley in conjunction with Valley’s consolidated counterparty risk management process. Valley’s counterparties and the risk limits monitored by management are periodically reviewed and approved by the Board of Directors.

Valley has agreements with its derivative counterparties providing that if Valley defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Valley could also be declared in default on its derivative counterparty agreements. Additionally, Valley has an agreement with several of its derivative counterparties that contains provisions that require Valley’s debt to maintain an investment grade credit rating from each of the major credit rating agencies from which it receives a credit rating. If Valley’s credit rating is reduced below investment grade, or such rating is withdrawn or suspended, then the counterparty could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of March 31, 2022, Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of March 31, 2022, there were no derivatives in an aggregate net liability position. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties.

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Note 12. Balance Sheet Offsetting

Certain financial instruments, including certain over-the-counter (OTC) derivatives (mostly interest rate swaps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated statements of financial condition and/or subject to master netting arrangements or similar agreements. OTC derivatives include interest rate swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house (presented in the table below). The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements.

Valley is party to master netting arrangements with its financial institution counterparties; however, Valley does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the swap or repurchase agreement should Valley be in default. The total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty.

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2022 and December 31, 2021.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2022
Assets
Interest rate swaps	$	172,983	$	—	$	172,983	$	12,555	$	117,289	$	43,139
Liabilities
Interest rate swaps	$	188,244	$	—	$	188,244	$	(12,555)	$	(2,323)	$	173,366
December 31, 2021
Assets
Interest rate swaps	$	181,012	$	—	$	181,012	$	—	$	—	$	181,012
Liabilities
Interest rate swaps	$	50,922	$	—	$	50,922	$	—	$	(44,231)	$	6,691

*    Cash collateral received (pledged) to our counterparties in relation to market value exposures of OTC derivative contacts in a liability position.

Note 13. Tax Credit Investments

Valley’s tax credit investments are primarily related to investments promoting qualified affordable housing projects, and other investments related to community development and renewable energy sources. Some of these tax-advantaged investments support Valley’s regulatory compliance with the CRA. Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense.

Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Valley’s unfunded capital and other commitments related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization

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of tax credit investments, including impairment losses, within non-interest expense in the consolidated statements of income using the equity method of accounting. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and impairments, if applicable.

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, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	14,666	$	15,343
Other tax credit investments, net	54,687		57,006
Total tax credit investments, net	$	69,353	$	72,349
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,360	$	1,360
Total unfunded tax credit commitments	$	1,360	$	1,360

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, 2022 and 2021: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	744	$	897
Other tax credit investment credits and tax benefits	2,551		2,685
Total reduction in income tax expense	$	3,295	$	3,582
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	415	$	543
Affordable housing tax credit investment impairment losses	262		341
Other tax credit investment losses	309		173
Other tax credit investment impairment losses	1,910		1,687
Total amortization of tax credit investments recorded in non-interest expense	$	2,896	$	2,744

Note 14. Business Segments

Valley has four business segments that it monitors and reports on to manage Valley’s business operations. These

segments are consumer lending, commercial lending, investment management, and corporate and other adjustments. Valley’s reportable segments have been determined based upon its internal structure of operations and lines of business. Each business segment is reviewed routinely for its asset growth, contribution to income before income taxes and return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from the corporate and other adjustments segment to each of the other three business segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each business segment utilizing a transfer pricing methodology, which involves the allocation of operating and funding costs based on each segment's respective mix of average earning assets and/

39

or liabilities outstanding for the period. The financial reporting for each segment contains allocations and reporting in line with Valley’s operations, which may not necessarily be comparable to any other financial institution. The

accounting for each segment includes internal accounting policies designed to measure consistent and reasonable financial reporting and may result in income and expense measurements that differ from amounts under U.S. GAAP. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

The following tables represent the financial data for Valley’s four business segments for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	—	$	40,283,048
Interest income	$	59,459		$	257,906		$	23,787		$	(694)	$	340,458
Interest expense	3,207			11,327			2,376			5,879		22,789
Net interest income (loss)	56,252			246,579			21,411			(6,573)		317,669
Provision for credit losses	1,873			1,627			57			—		3,557
Net interest income (loss) after provision for credit losses	54,379			244,952			21,354			(6,573)		314,112
Non-interest income	13,817			16,880			2,073			6,500		39,270
Non-interest expense	16,568			25,085			836			154,851		197,340
Internal transfer expense (income)	28,647			99,916			17,061			(145,624)		—
Income (loss) before income taxes	$	22,981		$	136,831		$	5,530		$	(9,300)	$	156,042
Return on average interest earning assets (pre-tax)	1.20		%	2.03		%	0.39		%	N/A		1.55		%

	Three Months Ended March 31, 2021
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,049,252		$	25,533,227		$	4,803,740		$	—	$	37,386,219
Interest income	$	60,845		$	252,336		$	19,509		$	(892)	$	331,798
Interest expense	6,415			23,235			4,371			5,110		39,131
Net interest income (loss)	54,430			229,101			15,138			(6,002)		292,667
(Credit) provision for credit losses	(2,635)			11,676			(385)			—		8,656
Net interest income (loss) after provision for credit losses	57,065			217,425			15,523			(6,002)		284,011
Non-interest income	13,685			7,713			2,331			7,504		31,233
Non-interest expense	19,849			25,531			1,777			113,056		160,213
Internal transfer expense (income)	19,502			70,555			13,277			(103,334)		—
Income (loss) before income taxes	$	31,399		$	129,052		$	2,800		$	(8,220)	$	155,031
Return on average interest earning assets (pre-tax)	1.78		%	2.02		%	0.23		%	N/A		1.66		%

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Item 2. Management’s Discussion and Analysis (MD&A) of Financial Condition and Results of Operations

The following MD&A should be read in conjunction with the consolidated financial statements and notes thereto appearing in Part I, Item 1 of this report. The words "Valley," the "Company," "we," "our" and "us" refer to Valley National Bancorp and its wholly owned subsidiaries, unless we indicate otherwise. Additionally, Valley’s principal subsidiary, Valley National Bank, is commonly referred to as the “Bank” in this MD&A.

The MD&A contains supplemental financial information, described in the sections that follow, which has been determined by methods other than U.S. generally accepted accounting principles (U.S. GAAP) that management uses in its analysis of our performance. Management believes these non-GAAP financial measures provide information useful to investors in understanding our underlying operational performance, our business and performance trends and facilitate comparisons with the performance of others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Cautionary Statement Concerning Forward-Looking Statements

This Quarterly Report on Form 10-Q, both in the MD&A and elsewhere, contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project,” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties and our actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements, include, but are not limited to:

•the inability to realize expected cost savings and synergies from the Bank Leumi USA acquisition in amounts or in the timeframe anticipated;

•greater than expected costs or difficulties relating to Bank Leumi USA integration matters;

•the inability to retain customers and qualified employees of Bank Leumi USA;

•greater than expected non-recurring charges related to the Bank Leumi USA acquisition;

•the continued impact of COVID-19 on the U.S. and global economies, including business disruptions, reductions in employment and an increase in business failures, specifically among our clients;

•the continued impact of COVID-19 on our employees and our ability to provide services to our customers and respond to their needs as more cases of COVID-19 may arise in our primary markets;

•the impact of forbearances or deferrals we are required or agree to as a result of customer requests and/or government actions, including, but not limited to our potential inability to recover fully deferred payments from the borrower or the collateral;

•the risks related to the discontinuation of the London Interbank Offered Rate and other reference rates, including increased expenses and litigation and the effectiveness of hedging strategies;

•damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent or trademark infringement, employment related claims, and other matters;

•a prolonged downturn in the economy, mainly in New Jersey, New York, Florida, Alabama, California and Illinois, as well as an unexpected decline in commercial real estate values within our market areas;

•higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations and case law;

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•the inability to grow customer deposits to keep pace with loan growth;

•a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;

•the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;

•greater than expected technology related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;

•the loss of or decrease in lower-cost funding sources within our deposit base, including our inability to achieve deposit retention targets under Valley's branch transformation strategy;

•cyber-attacks, ransomware attacks, computer viruses or other malware that may breach the security of our websites or other systems to obtain unauthorized access to confidential information, destroy data, disable or degrade service, or sabotage our systems;

•results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;

•our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements or a decision to increase capital by retaining more earnings;

•unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, the COVID-19 pandemic or other external events; and

•unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, changes in regulatory lending guidance or other factors.

A detailed discussion of factors that could affect our results is included in our SEC filings, including the “Risk Factors” section in Part I, Item 1A of our Annual Report on Form 10-K for the year ended December 31, 2021.

Critical Accounting Policies and Estimates

Valley’s accounting policies are fundamental to understanding management’s discussion and analysis of its financial condition and results of operations. At March 31, 2022, we identified our policies on the allowance for credit losses, goodwill and other intangible assets, and income taxes to be critical accounting policies because management has to make subjective and/or complex judgments about matters that are inherently uncertain and because it is likely that materially different amounts would be reported under different conditions or using different assumptions. Management has reviewed the application of these policies and estimates with the Audit Committee of Valley’s Board of Directors. Our critical accounting policies are described in detail in Part II, Item 7 in Valley’s Annual Report on Form 10-K for the year ended December 31, 2021, and there have been no material changes in such policies and estimates since the date of such report.

New Authoritative Accounting Guidance

See Note 5 to the consolidated financial statements for a description of new authoritative accounting guidance, including the respective dates of adoption and effects on results of operations and financial condition.

Executive Summary

Company Overview. At March 31, 2022, Valley had consolidated total assets of approximately $43.6 billion, total net loans of $35.0 billion, total deposits of $35.6 billion and total shareholders’ equity of $5.1 billion. Our commercial bank operations include branch office locations in northern and central New Jersey, the New York City Boroughs of Manhattan, Brooklyn, Queens, Long Island, Westchester County, New York, Florida and Alabama. Of our current 232 branch network, 56 percent, 19 percent, 18 percent and 7 percent of the branches are in New Jersey,

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New York, Florida and Alabama, respectively. Despite targeted branch consolidation activity, we have significantly grown both in asset size and locations over the past several years primarily both through organic efforts and bank acquisitions as discussed below.

Landmark Insurance of the Palm Beaches. On February 1, 2022, the Bank's insurance agency subsidiary, Valley Insurance Services, acquired Landmark Insurance of the Palm Beaches, Inc. for $8.6 million in cash and $1.0 million in contingent consideration. This acquisition expanded Valley's presence in Florida and is expected to provide additional cross-selling opportunities across the Bank's service and product offerings.

Bank Leumi Le-Israel Corporation. On April 1, 2022, Valley completed its acquisition of Bank Leumi Le-Israel Corporation, the U.S. subsidiary of Bank Leumi Le-Israel B.M. and parent company of Bank Leumi USA, and collectively referred to as "Bank Leumi USA". Bank Leumi USA was headquartered in New York City with commercial banking offices in Chicago, Los Angeles, Palo Alto, and Aventura, Florida. As of the acquisition date, Bank Leumi USA had total assets of $8.3 billion, total deposits of $7.1 billion and gross loans of $6.1 billion, unadjusted for purchase accounting. The common shareholders of Bank Leumi USA received 3.8025 shares of Valley common stock and 5.08 in cash for each Bank Leumi USA common share that they owned. As a result, Valley issued approximately 85 million shares of common stock and paid $113.4 million in cash in the transaction.

See Note 2 to the consolidated financial statements for additional details regarding our acquisition activities.

Impact of COVID-19. COVID-19 infection rates declined during the first quarter 2022 and consumer and business activities remained robust. These factors combined with global supply chain disruptions, labor shortages and other factors contributed to higher inflation in the U.S. We continue to monitor the impact of COVID-19 including the emergence of any new variants closely, including its impact on our employees, customers, communities and results of operations and other government or Federal Reserve actions. See the "Operating Environment" section of MD&A for more details.

The Coronavirus Aid, Relief, and Economic Security (CARES) Act and additional legislation that followed including the Consolidated Appropriations Act and the American Rescue Plan Act of 2021 provided funding for the SBA's Paycheck Protection Program (PPP) and established rules for qualifying borrowers to receive loan forgiveness by the SBA under this program. Valley extended a total of $3.2 billion PPP loans under the program, of which $3.0 billion of these loans have received forgiveness from the SBA. As of March 31, 2022, we had $203.6 million of PPP loans still outstanding.

In response to the COVID-19 pandemic and its economic impact on certain customers and in accordance with provisions set forth by the CARES Act, Valley implemented short-term loan modifications, such as payment deferrals, fee waivers, extensions of repayment terms, or delays in payment that are insignificant, when requested by customers. Valley had $23.0 million of outstanding loans remaining in their payment deferral period under short-term modifications at March 31, 2022 as compared to $27.9 million at December 31, 2021.

Quarterly Results. Net income for the first quarter 2022 was $116.7 million, or $0.27 per diluted common share as compared to $115.7 million, or $0.28 per diluted common share, for the first quarter 2021. The $1.0 million increase in quarterly net income as compared to the same quarter one year ago was largely due to following changes:

•a $25.0 million increase in net interest income mainly due to (i) higher average loan balances driven by strong organic growth and loans acquired from The Westchester Bank Holding Corporation (Westchester) on December 1, 2021, (ii) higher average investment securities, (iii) a continued customer shift to deposits without stated maturities and the run-off of higher cost time deposits, (iv) lower average other borrowings driven by repayment of maturing FHLB advances, partially offset by (v) an $18.9 million decrease in PPP loan related interest and fees;

•an $8.0 million increase in non-interest income mainly due to a $7.8 million increase in fee income related to derivative interest rate swaps executed with commercial lending customers, fees generated by Dudley Ventures, our tax credit advisory subsidiary acquired in the fourth quarter 2021, partially offset by a decrease in net gains on sales of residential mortgage loans; and

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•a $5.1 million decrease in our provision for credit losses mostly due to lower expected loss rates for the commercial real estate portfolio; partially offset by:

•a $37.1 million increase in non-interest expense mainly due to increases in salary and employee benefits, net occupancy and equipment, and professional and legal fees expense categories driven, in part, by our expansion of business operations due to acquisitions and targeted growth in our lending and technology teams, as well as merger related expenses totaling $4.6 million for the first quarter 2022.

See the “Net Interest Income”, “Non-Interest Income”, “Non-Interest Expense”, and “Income Taxes” sections below for more details on the items above impacting our first quarter 2022 results.

Operating Environment. During the first quarter 2022, real gross domestic product at an annual rate decreased 1.4 percent compared to a 6.9 percent increase in the fourth quarter 2021 largely as a result of a slowdown in inventory restocking and trade. Household demand and fixed investment from businesses and households improved modestly despite an acceleration in overall prices.

In March, the Federal Reserve raised the federal funds rate 0.25 percent to a target range of 0.25 percent to 0.50 percent. Following its meeting in May, the Federal Reserve raised the federal fund rate by another 0.50 percent to a target range of 0.75 percent to 1.00 percent to tame building inflationary pressures. Further interest rate hikes are expected during the remainder of 2022 largely due to the Federal Reserve's efforts to curtail the current high level of inflation, which has reached a 40-year high. In addition, the Federal Reserve slowed its purchase of Treasury securities and agency residential and commercial mortgage-backed securities and the Federal Reserve indicated at its recent meeting that it expects to reduce its securities holdings starting in June as securities reach their maturities.

The 10-year U.S. Treasury note yield ended the first quarter 2022 at 2.32 percent, 80 basis points higher compared with December 31, 2021. The spread between the 2- and 10-year U.S. Treasury note yields ended the first quarter 2022 at 0.04 percent, which is 75 basis points lower as compared to December 31, 2021.

The industry reported that demand for most commercial loan products continued to increase during the first quarter 2022. The increase was broad-based across commercial real estate lending and loans to middle market firms. Our loan originations increased sharply across most products in the first quarter 2022 primarily driven by increases in commercial real estate loans. However, anticipated higher market interest rates, persistent inflation, the lingering impact of the pandemic on supply chains and business opportunities, labor market conditions, and fallout from the Russia-Ukraine war, among other factors, add a high level of uncertainty to the future path of the U.S. economy. Should economic conditions deteriorate causing business activity, spending and investment to slow, it would adversely impact the Bank’s financial results, as highlighted below in this MD&A.

Loans. Total loans increased $1.2 billion to $35.4 billion at March 31, 2022 from December 31, 2021 despite a $232.3 million decrease in commercial and industrial PPP loans. Our non-PPP loan portfolio increased $1.4 billion, or 17.1 percent on an annualized basis, largely due to well-balanced commercial loan production across our primary markets and an uptick in new residential mortgage loans originated for investment rather than sale. See further details on our loan activities under the “Loan Portfolio” section below.

Asset Quality. Total non-performing assets (NPAs), consisting of non-accrual loans, other real estate owned (OREO), and other repossessed assets decreased $12.7 million to $232.7 million at March 31, 2022 as compared to December 31, 2021. Non-accrual loans decreased $9.8 million to $230.5 million at March 31, 2022 as compared to December 31, 2021 partly due to lower commercial real estate non-accruals reflecting one loan payoff partly offset by two loans which were moved to non-accrual status. In addition, commercial and industrial along with residential mortgage non-accrual loans decreased partly due to loan payoffs during the first quarter 2022. Non-accrual loans represented 0.65 percent of total loans at March 31, 2022 compared to 0.70 percent at December 31, 2021.

Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $36.9 million to $92.8 million, or 0.26 percent of total loans, at March 31, 2022 as compared to $55.9 million, or 0.16 percent of total loans at December 31, 2021. Commercial real estate loans past due 30 to 59 days and 60 to 89 days increased $16.4 million and $6.3 million, respectively, to $30.8 million and $6.3 million, respectively at March 31,

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2022 as compared to December 31, 2021 mainly due to two loans totaling $13.2 million and $6.0 million included in these respective delinquency categories at March 31, 2022. Commercial and industrial loans past due 60 to 89 days and 90 days or more increased $6.6 million and $8.0 million, respectively, as compared to December 31, 2021 mainly due to a few additional loans that are considered well-secured and in the process of collection. See further details in the "Non-performing Assets" section below.

Deposits and Other Borrowings. Overall, average deposits increased by $1.0 billion to $35.8 billion for the first quarter 2022 as compared to the fourth quarter 2021 mostly due to increased quarterly average balances related to deposits assumed from Westchester on December 1, 2021. Average non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 33 percent, 57 percent and 10 percent of total deposits as of March 31, 2022, respectively. Our mix of average deposits for the first quarter 2022 continued to shift away from higher cost time deposits to the non-maturity deposit categories as compared to the fourth quarter 2021. The shift has been aided by normal CD maturities and our ability to increase commercial and retail non-maturity deposits.

Actual ending balances for deposits increased $14.9 million to approximately $35.6 billion at March 31, 2022 from December 31, 2021 largely due to increases of $271.3 million and $16.3 million in the non-maturity non-interest bearing deposit and interest bearing deposit categories, respectively, mostly offset by a $272.7 million decrease in time deposits. The decrease in time deposits was driven by run-off of maturing retail CDs with some continued migration to the more liquid deposit product categories. Total brokered deposits (consisting of money market deposit accounts) decreased approximately $203 million to $1.2 billion at March 31, 2022 as compared to $1.4 billion at December 31, 2021 as our funding mix continued to shift to commercial and retail deposit customers. While we believe the current operating environment will likely continue to be favorable for Valley’s deposit gathering initiatives, we cannot guarantee that we will be able to maintain deposit levels at or near those reported at March 31, 2022.

The following table presents average short-term and long-term borrowings for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021:

	Three Months Ended
	March 31, 2022		December 31, 2021		March 31, 2021
	(in thousands)
Average short-term borrowings:
FHLB advances	$	434,444	$	500,000	$	996,667
Securities sold under repurchase agreements	148,575		170,433		145,728
Federal funds purchased	11,278		—		26,222
Total	$	594,297	$	670,433	$	1,168,617
Average long-term borrowings:
FHLB advances	$	788,956	$	789,108	$	1,563,987
Subordinated debt	631,056		636,514		403,181
Securities sold under repurchase agreements	—		—		300,000
Junior subordinated debentures issued to capital trusts	56,457		56,379		56,111
Total	$	1,476,469	$	1,482,001	$	2,323,279

Average short-term borrowings decreased $574.3 million during the first quarter 2022 as compared to the first quarter 2021 mostly due to our repayment of maturing FHLB advances funded with excess cash liquidity. Average long-term borrowings (including junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition) decreased $846.8 million from the first quarter 2021 largely due to the combination of prepayments of FHLB advances during the second quarter 2021, repayments at maturity of several FHLB advances and $300 million of long-term repurchase agreements which matured during

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the third quarter 2021, partially offset by our issuance of $300 million subordinated notes in the second quarter 2021.

Actual ending balances for short-term borrowings decreased by $171.5 million to $484.2 million at March 31, 2022 as compared to December 31, 2021 largely due to normal repayments of maturing FHLB advances, partially offset by $125 million of federal funds purchased at March 31, 2022. Long-term borrowings of $1.4 billion at March 31, 2022 remained relatively unchanged as compared to December 31, 2021.

Selected Performance Indicators. The following table presents our annualized performance ratios for the periods indicated:

	Three Months Ended March 31,
	2022		2021
Return on average assets	1.07	%	1.14	%
Return on average assets, as adjusted	1.10		1.14
Return on average shareholders’ equity	9.15		9.96
Return on average shareholders’ equity, as adjusted	9.43		9.97
Return on average tangible shareholders’ equity (ROATE)	13.09		14.49
ROATE, as adjusted	13.49		14.50

Adjusted return on average assets, adjusted return on average shareholders' equity, ROATE and adjusted ROATE included in the table above are non-GAAP measures. Management believes these measures provide information useful to management and investors in understanding our underlying operational performance, business and performance trends, and the measures facilitate comparisons of our prior performance with the performance of others in the financial services industry. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies. The non-GAAP measure reconciliations are presented below.

Adjusted net income is computed as follows:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Net income, as reported	$	116,728	$	115,710
Add: Losses on available for sale and held to maturity securities transactions (net of tax) (a)	6		85
Add: Merger related expenses (net of tax) (b)	3,579		—
Net income, as adjusted	$	120,313	$	115,795

(a)    Included in (losses) gains on securities transactions, net.

(c)    Merger related expenses are primarily within salary and employee benefits expense, and professional and legal fees.

In addition to the items used to calculate net income, as adjusted, in the table above, our net income is, from time to time, impacted by fluctuations in the level of net gains on sales of loans and swap fees recognized from commercial loan customer transactions. These amounts can vary widely from period to period due to, among other factors, the amount of residential mortgage loans originated for sale, loan portfolio sales and commercial loan customer demand for certain products. See the “Non-Interest Income” section below for more details.

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Adjusted annualized return on average assets is computed by dividing adjusted net income by average assets, as follows:

	Three Months Ended March 31,
	2022			2021
	($ in thousands)
Net income, as adjusted	$	120,313		$	115,795
Average assets	$	43,570,251		$	40,770,731
Annualized return on average assets, as adjusted	1.10		%	1.14		%

Adjusted annualized return on average shareholders' equity is computed by dividing adjusted net income by average shareholders' equity, as follows:

	Three Months Ended March 31,
	2022			2021
	($ in thousands)
Net income, as adjusted	$	120,313		$	115,795
Average shareholders' equity	$	5,104,709		$	4,645,400
Annualized return on average shareholders' equity, as adjusted	9.43		%	9.97		%

ROATE and adjusted ROATE are computed by dividing net income and adjusted net income, respectively, by average shareholders’ equity less average goodwill and average other intangible assets, as follows:

	Three Months Ended March 31,
	2022			2021
	($ in thousands)
Net income	$	116,728		$	115,710
Net income, as adjusted	120,313			115,795
Average shareholders’ equity	$	5,104,709		$	4,645,400
Less: Average goodwill and other intangible assets	1,538,356			1,451,750
Average tangible shareholders’ equity	$	3,566,353		$	3,193,650
Annualized ROATE	13.09		%	14.49		%
Annualized ROATE, as adjusted	13.49		%	14.50		%

Net Interest Income

Net interest income consists of interest income and dividends earned on interest earning assets, less interest expense on interest bearing liabilities, and represents the main source of income for Valley.

Net interest income on a tax equivalent basis totaling $318.4 million for the first quarter 2022 increased $2.4 million as compared to the fourth quarter 2021 and increased $24.8 million from the first quarter 2021. Interest income on a tax equivalent basis in the first quarter 2022 increased $475 thousand to $341.2 million as compared to the fourth quarter 2021. The increase was mainly due to increases in average loans and taxable investments totaling $1.3 billion and $275.1 million, respectively, largely offset by a $10.1 million decrease in PPP loan related interest and fees during the first quarter 2022 caused by the significant wind-down of our remaining PPP loan portfolio over the last several quarters. Interest expense of $22.8 million for the first quarter 2022 decreased $1.9 million as compared to the fourth quarter 2021 as we reduced our cost of funding from deposits and borrowings.

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Average interest earning assets increased $2.9 billion to $40.3 billion for the first quarter 2022 as compared to the first quarter 2021 primarily due to strong organic loan growth over the 12-month period ended March 31, 2022, loans acquired from Westchester on December 1, 2021, purchases of taxable investment securities and higher interest bearing overnight funds due to fluctuations in the timing of loan and investment activity, as well as deposit growth. Compared to the fourth quarter 2021, average interest earning assets increased by $1.1 billion during the first quarter 2022. The increase was primarily driven by a $1.3 billion increase in average loan balances due to continued organic loan growth mainly in the commercial and residential mortgage loan categories and loans acquired from Westchester.

Average interest bearing liabilities increased $193.7 million to $26.1 billion for the first quarter 2022 as compared to the first quarter 2021 mainly due to the general solid growth in commercial and retail customer deposits without stated maturities and $727 million of interest bearing deposits assumed from Westchester, partially offset by repayments of other borrowings during the last 12-month period. As compared to the fourth quarter 2021, average interest bearing liabilities increased by $565.0 million in the first quarter 2022 mainly due to continued growth in average non-maturity deposits balances, including supplemental growth from relatively new niche product efforts targeting cannabis companies and professional service firms, partially offset by continued run-off of higher cost time deposits and lower utilization of short-term FHLB advances as a funding source. Total average deposits, including non-interest bearing deposits, increased $1.0 billion to $35.8 billion for the first quarter 2022 as compared to the fourth quarter 2021. See additional information under "Deposits and Other Borrowings" in the Executive Summary section above.

Our net interest margin on a tax equivalent basis of 3.16 percent for the first quarter 2022 decreased by 7 basis points and increased by 2 basis points from 3.23 percent and 3.14 percent for the fourth quarter 2021 and first quarter 2021, respectively. The yield on average interest earning assets decreased by 9 basis points on a linked quarter basis mostly due to the lower yield on loans and two less days in the first quarter 2022 as compared to the fourth quarter 2021. The yield on average loans decreased by 16 basis points to 3.67 percent for the first quarter 2022 as compared to the fourth quarter 2021 largely due to the decrease in PPP loan related interest and fees. The overall cost of average interest bearing liabilities decreased 4 basis points to 0.35 percent for the first quarter 2022 as compared to the fourth quarter 2021. The decrease was mainly due to a 22 basis point decrease in the cost of average long-term borrowings, the continued runoff of maturing higher cost time deposits, and the moderately lower cost of our average non-maturity interest bearing deposits. Our cost of total average deposits was 0.14 percent for the first quarter 2022 as compared to 0.15 percent for the fourth quarter 2021.

In March 2022, the Federal Reserve increased the federal funds target rate by 0.25 percent to 0.50 percent and projected as many as six more similar interest rate hikes during the remainder of 2022. Higher levels of market interest rates would benefit certain interest earning assets on our balance sheet and likely provide us the opportunity to reinvest any excess cash, including normal repayments of loans and investments, at higher rates. Under this scenario, we continue to anticipate a certain lag in higher funding costs given the current liquidity present in the U.S. banking system. Based upon our estimates at March 31, 2022, we anticipate net interest income for the full 12 months of 2022 to be approximately 8 to 12 percent higher than reported net interest income in 2021, excluding the impact of our recent acquisition of Bank Leumi USA on April 1, 2022.

On May 4, 2022, the Federal Reserve increased the federal funds target rate by 0.50 percent to a range of 0.75 percent to 1.00 percent. This increase was generally anticipated in the interest rate backdrop used to forecast our net interest income as of March 31, 2022 and as such, our projected net interest income range given above for 2022 is unchanged.

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The following table reflects the components of net interest income for the three months ended March 31, 2022, December 31, 2021 and March 31, 2021:

Quarterly Analysis of Average Assets, Liabilities and Shareholders’ Equity and

Net Interest Income on a Tax Equivalent Basis

	Three Months Ended
	March 31, 2022						December 31, 2021						March 31, 2021
	Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate		Average Balance		Interest		Average Rate
	($ in thousands)
Assets
Interest earning assets:
Loans (1)(2)	$	34,623,402	$	317,390	3.67	%	$	33,338,128	$	319,165	3.83	%	$	32,582,479	$	313,206	3.85	%
Taxable investments (3)	3,838,468		20,115		2.10		3,563,329		17,667		1.98		3,111,116		15,037		1.93
Tax-exempt investments (1)(3)	401,742		3,186		3.17		418,049		3,209		3.07		513,809		4,248		3.31
Interest bearing deposits with banks	1,419,436		461		0.13		1,873,508		636		0.14		1,178,815		224		0.08
Total interest earning assets	40,283,048		341,152		3.39		39,193,014		340,677		3.48		37,386,219		332,715		3.56
Allowance for credit losses	(367,989)						(355,415)						(347,262)
Cash and due from banks	281,883						326,074						312,882
Other assets	3,361,185						3,286,785						3,373,506
Unrealized gains on securities available for sale, net	12,124						23,370						45,386
Total assets	$	43,570,251					$	42,473,828					$	40,770,731
Liabilities and shareholders’ equity
Interest bearing liabilities:
Savings, NOW and money market deposits	$	20,522,629	$	9,627	0.19	%	$	19,685,730	$	9,983	0.20	%	$	16,617,762	$	11,125	0.27	%
Time deposits	3,554,520		2,831		0.32		3,744,792		3,328		0.36		5,844,524		11,093		0.76
Total interest bearing deposits	24,077,149		12,458		0.21		23,430,522		13,311		0.23		22,462,286		22,218		0.40
Short-term borrowings	594,297		806		0.54		670,433		983		0.59		1,168,617		1,758		0.60
Long-term borrowings (4)	1,476,469		9,525		2.58		1,482,001		10,383		2.80		2,323,279		15,155		2.61
Total interest bearing liabilities	26,147,915		22,789		0.35		25,582,956		24,677		0.39		25,954,182		39,131		0.60
Non-interest bearing deposits	11,686,534						11,316,264						9,373,000
Other liabilities	631,093						669,265						798,149
Shareholders’ equity	5,104,709						4,905,343						4,645,400
Total liabilities and shareholders’ equity	$	43,570,251					$	42,473,828					$	40,770,731
Net interest income/interest rate spread (5)			$	318,363	3.04	%			$	316,000	3.09	%			$	293,584	2.96	%
Tax equivalent adjustment			(694)						(699)						(917)
Net interest income, as reported			$	317,669					$	315,301					$	292,667
Net interest margin (6)					3.15	%					3.22	%					3.13	%
Tax equivalent effect					0.01						0.01						0.01
Net interest margin on a fully tax equivalent basis (6)					3.16	%					3.23	%					3.14	%

_____________

(1)Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.

(2)Loans are stated net of unearned income and include non-accrual loans.

(3)The yield for securities that are classified as available for sale is based on the average historical amortized cost.

(4)Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated

statements of financial condition.

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(5)Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.

(6)Net interest income as a percentage of total average interest earning assets.

The following table demonstrates the relative impact on net interest income of changes in the volume of interest earning assets and interest bearing liabilities and changes in rates earned and paid by us on such assets and liabilities. Variances resulting from a combination of changes in volume and rates are allocated to the categories in proportion to the absolute dollar amounts of the change in each category.

Change in Net Interest Income on a Tax Equivalent Basis

	Three Months Ended March 31, 2022 Compared to March 31, 2021
	Change Due to Volume		Change Due to Rate		Total Change
	(in thousands)
Interest Income:
Loans*	$	19,096	$	(14,912)	$	4,184
Taxable investments	3,733		1,345		5,078
Tax-exempt investments*	(895)		(167)		(1,062)
Interest bearing deposits with banks	53		184		237
Total increase (decrease) in interest income	21,987		(13,550)		8,437
Interest Expense:
Savings, NOW and money market deposits	2,270		(3,768)		(1,498)
Time deposits	(3,330)		(4,932)		(8,262)
Short-term borrowings	(793)		(159)		(952)
Long-term borrowings and junior subordinated debentures	(5,465)		(165)		(5,630)
Total decrease in interest expense	(7,318)		(9,024)		(16,342)
Total increase (decrease) in net interest income	$	29,305	$	(4,526)	$	24,779

*Interest income is presented on a tax equivalent basis using 21 percent as the federal tax rate.

Non-Interest Income

Non-interest income increased $8.0 million for the three months ended March 31, 2022 as compared to the same period of 2021. The following table presents the components of non-interest income for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Trust and investment services	$	5,131	$	3,329
Insurance commissions	1,859		1,558
Service charges on deposit accounts	6,212		5,103
(Losses) gains on securities transactions, net	(1,072)		101
Fees from loan servicing	2,781		2,899
Gains on sales of loans, net	986		3,513
Bank owned life insurance	2,046		2,331
Other	21,327		12,399
Total non-interest income	$	39,270	$	31,233

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Trust and investment services income increased by $1.8 million for the three months ended March 31, 2022 as compared to the same period in 2021 mostly due to additional revenues generated by our new advisory firm, Dudley Ventures, LLC, specializing in the investment and management of tax credit investments, which we acquired in October 2021.

Net losses on securities transactions of $1.1 million for the three months ended March 31, 2022 were mostly due to net trading losses (including the fair value mark at March 31, 2022) related to our trading municipal bond portfolio.

Net gains on sales of loans for each period are comprised of both gains on sales of residential mortgages and the net change in the mark to market gains and losses on our loans originated for sale and carried at fair value at each period end. Net gains on sales of loans decreased $2.5 million for the three months ended March 31, 2022 as compared to the same period of 2021 mostly due to lower loan sales volume and spreads (i.e., margin on individual loan sales). During the first quarter 2022, we sold approximately $201 million of residential mortgage loans as compared to $348 million during the first quarter 2021. In addition, the mark to market loss on loans held for sale carried at fair value resulted in net losses totaling $4.8 million and $9.5 million for the three months ended March 31, 2022 and 2021, respectively. Our ability to generate net gains on sales of loans could continue to be challenged by a number of factors, including increases in market interest rates, lower customer demand and our potential decision to change the mix of loans originated for investment in our loan portfolio rather than sale. See further discussion of our residential mortgage loan origination activity under the “Loan Portfolio” section of this MD&A below.

Other non-interest income increased $8.9 million for the three months ended March 31, 2022 as compared to the same period in 2021 primarily due to higher fee income from derivative interest rate swaps executed with commercial lending customers caused by a greater volume of transactions. Swap fee income totaled $14.0 million and $6.2 million for the three months ended March 31, 2022 and 2021, respectively. While we believe our commercial loan swap based product will remain attractive to borrowers in the current interest rate environment, we can provide no assurance that our swap fees will remain at the level reported for the first quarter 2022.

Non-Interest Expense

Non-interest expense increased $37.1 million to $197.3 million for the three months ended March 31, 2022 as compared to the same period in 2021. The following table presents the components of non-interest expense for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Salary and employee benefits expense	$	107,733	$	88,103
Net occupancy and equipment expense	36,806		32,259
FDIC insurance assessment	4,158		3,276
Amortization of other intangible assets	4,437		6,006
Professional and legal fees	14,749		6,272
Amortization of tax credit investments	2,896		2,744
Telecommunications expense	3,271		3,160
Other	23,290		18,393
Total non-interest expense	$	197,340	$	160,213

Salary and employee benefits expense increased $19.6 million for the three months ended March 31, 2022 as compared to the same period of 2021 primarily due to strategic increases in our headcount to enhance lending and operations (including additions to staff due to the Westchester acquisition), increases in our branch compensation to preserve staffing and service levels, and to keep pace with the increases in wage demand across the industry. In addition, salary and employee benefits expense included approximately $2.8 million in merger expense, primarily consisting of severance, during the first quarter 2022.

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Net occupancy and equipment expense increased $4.5 million for the three months ended March 31, 2022 as compared to the same period of 2021 mainly due to higher technology related expense and repair and maintenance costs.

Amortization of other intangible assets decreased $1.6 million for the three months ended March 31, 2022 as compared to the same period of 2021 mostly due to lower amortization expense on mortgage servicing rights. During the first quarter 2021, the higher level of amortization expense was partly caused by the acceleration of loan prepayments from customer refinance activity, partially offset by $791 thousand of net recoveries of impairment charges on certain loan servicing rights. See Note 9 to the consolidated financial statements for additional information.

Professional and legal fees increased $8.5 million for the three months ended March 31, 2022 as compared to the same period of 2021. The increase was largely attributable to higher third party managed services expense, increased consulting expense mainly related to technology transformation and new product initiatives, and, to a lesser extent, merger related expenses of $770 thousand during the three months ended March 31, 2022.

Other non-interest expense increased $4.9 million for the three months ended March 31, 2022 as compared to the same period of 2021. The increase was largely due to higher data processing costs, OREO expense, meals and entertainment, advertising and other incrementally higher operating expenses due to the expansion of our operations, including the acquisition of Westchester on December 1, 2021. The first quarter 2022 also included $1.1 million of merger related expenses.

Efficiency Ratio

The efficiency ratio measures total non-interest expense as a percentage of net interest income plus total non-interest income. We believe this non-GAAP measure provides a meaningful comparison of our operational performance and facilitates investors’ assessments of business performance and trends in comparison to our peers in the banking industry. Our overall efficiency ratio, and its comparability to some of our peers, is negatively impacted primarily by the amortization of tax credit investments, as well as infrequent charges within non-interest income and expense, including merger related expenses.

The following table presents our efficiency ratio and a reconciliation of the efficiency ratio adjusted for certain items during the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022			2021
	($ in thousands)
Total non-interest expense	$	197,340		$	160,213
Less: Amortization of tax credit investments (pre-tax)	2,896			2,744
Less: Merger related expenses (pre-tax) (a)	4,628			—
Total non-interest expense, adjusted	$	189,816		$	157,469
Net interest income	$	317,669		$	292,667
Total non-interest income	39,270			31,233
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) (b)	9			118
Total net interest income and non-interest income	$	356,948		$	324,018
Efficiency ratio	55.29		%	49.46		%
Efficiency ratio, adjusted	53.18		%	48.60		%

(a)    Included primarily within salary and employee benefits expense, professional and legal fees and other expense.

(b)    Included in gains on securities transactions, net.

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Income Taxes

Income tax expense totaled $39.3 million for the first quarter 2022 as compared to $42.3 million and $39.3 million for the fourth quarter 2021 and first quarter 2021, respectively. Our effective tax rate was 25.2 percent, 26.9 percent and 25.4 percent for the first quarter 2022, fourth quarter 2021 and first quarter 2021, respectively. The decrease in the effective tax rate in the first quarter 2022 as compared to the fourth quarter 2021 was mainly due to an increase in excess stock compensation benefit recognized within income tax expense for the 2022 period.

U.S. GAAP requires that any change in judgment or change in measurement of a tax position taken in a prior annual period be recognized as a discrete event in the quarter in which it occurs, rather than being recognized as a change in effective tax rate for the current year. Our adherence to these tax guidelines may result in volatile effective income tax rates in future quarterly and annual periods. Factors that could impact management’s judgment include changes in income, tax laws and regulations, and tax planning strategies. Based on the current information available, we anticipate that our effective tax rate will range from 26 percent to 28 percent for 2022.

Business Segments

We have four business segments that we monitor and report on to manage our business operations. These segments are consumer lending, commercial lending, investment management, and corporate and other adjustments. Our reportable segments have been determined based upon Valley’s internal structure of operations and lines of business. Each business segment is reviewed routinely for its asset growth, contribution to income before income taxes and return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from the corporate and other adjustments segment to each of the other three business segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each business segment utilizing a transfer pricing methodology, which involves the allocation of operating and funding costs based on each segment's respective mix of average earning assets and/or liabilities outstanding for the period. The financial reporting for each segment contains allocations and reporting in line with our operations, which may not necessarily be comparable to any other financial institution. The accounting for each segment includes internal accounting policies designed to measure consistent and reasonable financial reporting and may result in income and expense measurements that differ from amounts under U.S. GAAP. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

The following tables present the financial data for each business segment for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	—	$	40,283,048
Income (loss) before income taxes	22,981			136,831			5,530			(9,300)		156,042
Annualized return on average interest earning assets (before tax)	1.20		%	2.03		%	0.39		%	N/A		1.55		%

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	Three Months Ended March 31, 2021
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,049,252		$	25,533,227		$	4,803,740		$	—	$	37,386,219
Income (loss) before income taxes	31,399			129,052			2,800			(8,220)		155,031
Annualized return on average interest earning assets (before tax)	1.78		%	2.02		%	0.23		%	N/A		1.66		%

See Note 14 to the consolidated financial statements for additional details.

Consumer Lending

This consumer lending segment represented 21.6 percent of our loan portfolio at March 31, 2022, and was mainly comprised of residential mortgage loans and automobile loans, and to a lesser extent, home equity loans, secured personal lines of credit and other consumer loans (including credit card loans). The duration of the residential mortgage loan portfolio (which represented 13.3 percent of our loan portfolio at March 31, 2022) is subject to movements in the market level of interest rates and forecasted prepayment speeds. The weighted average life of the automobile loans (representing 4.4 percent of total loans at March 31, 2022) is relatively unaffected by movements in the market level of interest rates. However, the average life may be impacted by new loans as a result of the availability of credit within the automobile marketplace and consumer demand for purchasing new or used automobiles. The consumer lending segment also includes the Wealth Management and Insurance Services Division, comprised of trust, asset management, insurance and tax credit advisory services.

Average interest earning assets in this segment increased $589.7 million to $7.6 billion for the three months ended March 31, 2022 as compared to the first quarter 2021. The increase was largely due to solid new and refinanced residential mortgage loan volumes over the last 12-month period, as well as growth in automobile loans and secured personal lines of credit. Loans acquired from Westchester on December 1, 2021 did not materially impact this business segment.

Income before income taxes generated by the consumer lending segment decreased $8.4 million to $23.0 million for the first quarter 2022 as compared to the first quarter 2021 largely due to a $4.5 million increase in the provision for loan losses and a $9.1 million increase in the internal transfer expense. The negative impact of these items was partially offset by a $3.3 million decrease in non-interest expense. The increase in the provision for loan losses was mainly due to reserves related to residential loan growth and deterioration in our economic forecast in the first quarter 2022 from December 31, 2021, and a negative (credit) provision in the first quarter 2021 caused by improvement in the economic forecast component of the reserves at March 31, 2021. The higher internal transfer expense was mostly driven by general increases related to organic growth in our business. Non-interest expense was higher in the 2021 period partly due to the mark to market impact of mortgage banking derivatives. See Note 11 to the consolidated financial statements for additional information on our mortgage bank derivative activities.

The net interest margin on the consumer lending portfolio decreased 15 basis points to 2.94 percent for the first quarter 2022 as compared to the first quarter 2021 mainly due to a 34 basis point decrease in the yield on average loans, partially offset by a 19 basis point decrease in the costs associated with our funding sources. The 34 basis point decrease in loan yield was largely due to lower yielding new loan volumes and normal loan repayments over the last 12-month period. The decrease in our funding costs was mainly due to continued runoff of higher cost time deposits, greater mix of non-interest bearing deposits and our ability to reprice most deposit products at lower interest rates. See the "Executive Summary" and the "Net Interest Income" sections above for more details on our net interest margin and funding sources.

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Commercial Lending

The commercial lending segment is comprised of floating rate and adjustable rate commercial and industrial loans and construction loans, as well as fixed rate owner occupied and commercial real estate loans. Due to the portfolio’s interest rate characteristics, commercial lending is Valley’s business segment that is most sensitive to movements in market interest rates. Commercial and industrial loans totaled approximately $5.8 billion and represented 16.4 percent of the total loan portfolio at March 31, 2022. Commercial real estate loans and construction loans totaled $21.9 billion and represented 62.0 percent of the total loan portfolio at March 31, 2022.

Average interest earning assets in this segment increased approximately $1.5 billion to $27.0 billion for the three months ended March 31, 2022 as compared to the first quarter 2021 mostly due to strong new organic loan originations primarily concentrated in the commercial real estate loan portfolio and acquired loans from Westchester, partially offset by run-off of commercial and industrial PPP loans due to SBA loan forgiveness.

For the three months ended March 31, 2022, income before income taxes for the commercial lending segment increased $7.8 million to $136.8 million as compared to the first quarter 2021 mainly driven by increases in both net interest income and non-interest income, as well as a lower provision for loan losses, partially offset by higher internal transfer expense. Net interest income for this segment increased $17.5 million to $246.6 million for the first quarter 2022 as compared to the same period in 2021 primarily due to additional income generated on higher average loans and lower funding costs. Non-interest income increased $9.2 million to $16.9 million for the three months ended March 31, 2022 as compared to the first quarter 2021 mainly due to a $7.8 million increase in swap fee income from derivative interest rate swaps executed with commercial loan customers. The provision for loan losses decreased by $10.0 million mainly due to lower reserves in the commercial real estate loan category attributed primarily to lower loss rates as compared to March 31, 2021. Internal transfer expense increased $29.4 million for the first quarter 2022 as compared to the first quarter 2021 due to general increases related to both organic and acquired growth in our business.

The net interest margin for this segment increased 4 basis points to 3.65 percent for the first quarter 2022 as compared to the first quarter 2021 due to a 17 basis point decrease in the cost of our funding sources, which was largely offset by a 13 basis point decrease in the yield on average loans.

Investment Management

The investment management segment generates a large portion of our income through investments in various types of securities and interest-bearing deposits with other banks. These investments are mainly comprised of fixed rate securities and, depending on our liquid cash position, federal funds sold and interest-bearing deposits with banks (primarily the Federal Reserve Bank of New York) as part of our asset/liability management strategies. The fixed rate investments are one of Valley’s least sensitive assets to changes in market interest rates. However, a portion of the investment portfolio is invested in shorter-duration securities to maintain the overall asset sensitivity of our balance sheet. See the “Asset/Liability Management” section below for further analysis.

Average interest earning assets in this segment increased $855.9 million during the first quarter 2022 as compared to the first quarter 2021 mainly due to increases in average investment securities and interest bearing deposits with banks totaling $615.3 million and $240.6 million, respectively. The higher average investment securities balance was mainly driven by purchases of residential mortgage backed securities classified as held to maturity funded largely funded by deposit growth over the last 12-month period. The increase in overnight investments and deposits with other banks was mostly due to fluctuations in the timing of loan and investment activity and excess cash liquidity resulting from the solid growth in commercial and retail customer deposits.

During the first quarter 2022, income before income taxes for the investment management segment increased $2.7 million to $5.5 million as compared to $2.8 million for the first quarter 2021. The increase was mainly due to higher net interest income, largely offset by an increase in internal transfer expense. The increase in net interest income totaled $6.3 million and was mostly driven by higher yields and average investment balances, as well as lower cost of funding. Internal transfer expense increased $3.8 million for the first quarter 2022 as compared to the first quarter 2021.

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The net interest margin for this segment increased 25 basis points to 1.51 percent for the first quarter 2022 as compared to the same quarter in 2021 largely due to a 19 basis point decrease in our cost of funding coupled with a 6 basis point increase in the yield on average investments. The increase in the yield on average investments as compared to the first quarter 2021 was largely driven by the higher amortization expense in the prior year caused, in part, by acceleration of principal repayments in the low interest rate environment.

Corporate and other adjustments

The amounts disclosed as “corporate and other adjustments” represent income and expense items not directly attributable to a specific segment, including net gains and losses on available for sale and held to maturity securities transactions, not reported in the investment management segment above, interest expense related to subordinated notes, amortization and impairment of tax credit investments, as well as non-core items, including merger expenses.

The corporate and other adjustments segment recognized pre-tax losses of $9.3 million and $8.2 million for the three months ended March 31, 2022 and 2021, respectively. The $1.1 million increase in the pre-tax loss during the 2022 period was mainly driven by an increase in non-interest expense and, to a much lesser extent, lower non-interest income, mostly offset by an increase in internal transfer income. Non-interest expense increased $41.8 million to $154.9 million during the three months ended March 31, 2022 as compared to the same period a year ago largely due to increases in salaries and employee benefits expense and professional and legal fees for the three months ended March 31, 2022. See further details in the "Non-Interest Income" and "Non-Interest Expense" sections of this MD&A. The internal transfer income increased by $42.3 million to $145.6 million for the three months ended March 31, 2022 as compared to the same period year ago mostly due to general increases related to our growth.

ASSET/LIABILITY MANAGEMENT

Interest Rate Sensitivity

Our success is largely dependent upon our ability to manage interest rate risk. Interest rate risk can be defined as the exposure of our interest rate sensitive assets and liabilities to the movement in interest rates. Our Asset/Liability Management Committee is responsible for managing such risks and establishing policies that monitor and coordinate our sources and uses of funds. Asset/Liability management is a continuous process due to the constant change in interest rate risk factors. In assessing the appropriate interest rate risk levels for us, management weighs the potential benefit of each risk management activity within the desired parameters of liquidity, capital levels and management’s tolerance for exposure to income fluctuations. Many of the actions undertaken by management utilize fair value analysis and attempt to achieve consistent accounting and economic benefits for financial assets and their related funding sources. We have predominantly focused on managing our interest rate risk by attempting to match the inherent risk and cash flows of financial assets and liabilities. Specifically, management employs multiple risk management activities such as optimizing the level of new residential mortgage originations retained in our mortgage portfolio through increasing or decreasing loan sales in the secondary market, product pricing levels, the desired maturity levels for new originations, the composition levels of both our interest earning assets and interest bearing liabilities, as well as several other risk management activities.

We use a simulation model to analyze net interest income sensitivity to movements in interest rates. The simulation model projects net interest income based on various interest rate scenarios over a 12-month and 24-month period. The model is based on the actual maturity and re-pricing characteristics of rate sensitive assets and liabilities. The model incorporates certain assumptions which management believes to be reasonable regarding the impact of changing interest rates and the prepayment assumptions of certain assets and liabilities as of March 31, 2022. The model assumes immediate changes in interest rates without any proactive change in the composition or size of the balance sheet, or other future actions that management might undertake to mitigate this risk. In the model, the forecasted shape of the yield curve remains static as of March 31, 2022. The impact of interest rate derivatives, such as interest rate swaps, is also included in the model.

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Our simulation model is based on market interest rates and prepayment speeds prevalent in the market as of March 31, 2022. Although the size of Valley’s balance sheet is forecasted to remain static as of March 31, 2022 in our model, the composition is adjusted to reflect new interest earning assets and funding originations coupled with rate spreads utilizing our actual originations during the first quarter 2022. The model also utilizes an immediate parallel shift in market interest rates at March 31, 2022.

The assumptions used in the net interest income simulation are inherently uncertain. Actual results may differ significantly from those presented in the table below due to the frequency and timing of changes in interest rates and changes in spreads between maturity and re-pricing categories. Overall, our net interest income is affected by changes in interest rates and cash flows from our loan and investment portfolios. We actively manage these cash flows in conjunction with our liability mix, duration and interest rates to optimize the net interest income, while structuring the balance sheet in response to actual or potential changes in interest rates. Additionally, our net interest income is impacted by the level of competition within our marketplace. Competition can negatively impact the level of interest rates attainable on loans and increase the cost of deposits, which may result in downward pressure on our net interest margin in future periods. Other factors, including, but not limited to, the slope of the yield curve and projected cash flows will impact our net interest income results and may increase or decrease the level of asset sensitivity of our balance sheet.

Convexity is a measure of how the duration of a financial instrument changes as market interest rates change. Potential movements in the convexity of bonds held in our investment portfolio, as well as the duration of the loan portfolio may have a positive or negative impact on our net interest income in varying interest rate environments. As a result, the increase or decrease in forecasted net interest income may not have a linear relationship to the results reflected in the table below. Management cannot provide any assurance about the actual effect of changes in interest rates on our net interest income.

The following table reflects management’s expectations of the change in our net interest income over the next 12- month period considering the aforementioned assumptions. While an instantaneous and severe shift in interest rates was used in this simulation model, we believe that any actual shift in interest rates would likely be more gradual and would therefore have a more modest impact than shown in the table below.

	Estimated Change in Future Net Interest Income
Changes in Interest Rates	Dollar Change		Percentage Change
(in basis points)	($ in thousands)
+200	$	117,882	8.76	%
+100	58,392		4.34
–100	(67,571)		(5.02)
–200	(136,954)		(10.18)

As noted in the table above, a 100 basis point immediate increase in interest rates combined with a static balance sheet where the size, mix, and proportions of assets and liabilities remain unchanged is projected to increase net interest income over the next 12 month period by 4.34 percent. Management believes the interest rate sensitivity remains within an acceptable tolerance range at March 31, 2022. However, the level of net interest income sensitivity may increase or decrease in the future as a result of several factors, including potential changes in our balance sheet strategies, the slope of the yield curve and projected cash flows.

Liquidity and Cash Requirements

Bank Liquidity

Liquidity measures the ability to satisfy current and future cash flow needs as they become due. A bank’s liquidity reflects its ability to meet loan demand, to accommodate possible outflows in deposits and to take advantage of interest rate opportunities in the marketplace. Liquidity management is carefully performed and routinely reported by our Treasury Department to two board committees. Among other actions, Treasury reviews historical funding

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requirements, our current liquidity position, sources and stability of funding, marketability of assets, options for attracting additional funds, and anticipated future funding needs, including the level of unfunded commitments. Our goal is to maintain sufficient liquidity to cover current and potential funding requirements.

The Bank has no required regulatory liquidity ratios to maintain; however, it adheres to an internal liquidity policy. The current policy maintains that we may not have a ratio of loans to deposits in excess of 110 percent or reliance on wholesale funding greater than 25 percent of total funding. The Bank was in compliance with the foregoing policies at March 31, 2022.

Valley's short and long-term cash requirements include contractual obligations under borrowings, deposits, payment related to leases, capital expenditures and other purchase commitments. In the ordinary course of operations, the Bank also enters into various financial obligations, including contractual obligations that may require future cash payments. Management believes the Bank has the ability to generate and obtain adequate amounts of cash to meet its short-term and long-term obligations as they come due by utilizing various cash resources described below.

On the asset side of the balance sheet, the Bank has numerous sources of liquid funds in the form of cash and due from banks, interest bearing deposits with banks (including the Federal Reserve Bank of New York), investment securities held to maturity that are maturing within 90 days or would otherwise qualify as maturities if sold (i.e., 85 percent of original cost basis has been repaid), investment securities classified as trading and available for sale, loans held for sale, and from time to time, federal funds sold and receivables related to unsettled securities transactions. Total liquid assets were approximately $2.0 billion, representing 5.0 percent of earning assets at March 31, 2022 and $3.5 billion, representing 8.7 percent of earning assets at December 31, 2021. Of the $2.0 billion of liquid assets at March 31, 2022, approximately $488.5 million of various investment securities were pledged to counterparties to support our earning asset funding strategies. We anticipate the receipt of approximately $644.5 million in principal payments from securities in the total investment portfolio at March 31, 2022 over the next 12 month period due to normally scheduled principal repayments and expected prepayments of certain securities, primarily residential mortgage-backed securities.

Additional liquidity is derived from scheduled loan payments of principal and interest, as well as prepayments received. Loan principal payments from total loans and loans held for sale at March 31, 2022 are projected in accordance with their scheduled contractual terms to be approximately $10.1 billion over the next 12 month period. As a contingency plan for any liquidity constraints, liquidity could also be derived from the sale of conforming residential mortgages from our loan portfolio or alleviated from the temporary curtailment of lending activities.

On the liability side of the balance sheet, we utilize multiple sources of funds to meet liquidity needs, including retail and commercial deposits, brokered and municipal deposits, and short-term and long-term borrowings. Our core deposit base, which generally excludes fully insured brokered deposits and both retail and brokered certificates of deposit over $250 thousand, represents the largest of these sources. Average core deposits totaled approximately $33.8 billion and $29.4 billion for the three months ended March 31, 2022 and for the year ended December 31, 2021, respectively, representing 84.1 percent and 78.3 percent of average earning assets for the respective periods. The level of interest bearing deposits is affected by interest rates offered, which is often influenced by our need for funds and the need to match the maturities of assets and liabilities.

Additional funding may be provided through deposit gathering networks and in the form of federal funds purchased through our well established relationships with numerous banks. While these lending lines are uncommitted, management believes that the Bank could borrow approximately $1.7 billion from these banks on a collective basis. The Bank is also a member of the Federal Home Loan Bank of New York (FHLB) and has the ability to borrow from them in the form of FHLB advances secured by pledges of certain eligible collateral, including but not limited to U.S. government and agency mortgage-backed securities and a blanket assignment of qualifying first lien mortgage loans, consisting of both residential mortgage and commercial real estate loans. Additionally, Valley's collateral pledged to the FHLB may be used to obtain Municipal Letters of Credit (MULOC) to collateralize certain municipal deposits held by Valley. At March 31, 2022, Valley had $1.5 billion of MULOCs outstanding for this purpose. Furthermore, we can obtain overnight borrowings from the Federal Reserve Bank of New York via the

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discount window as a contingency for additional liquidity. At March 31, 2022, our borrowing capacity under the Federal Reserve Bank's discount window was $2.0 billion.

We also have access to other short-term and long-term borrowing sources to support our asset base, such as repos (i.e., securities sold under agreements to repurchase). Short-term borrowings (consisting of FHLB advances, repos, and from time to time, federal funds purchased) decreased approximately $171.5 million to $484.2 million at March 31, 2022 as compared to December 31, 2021 largely due to normal repayments of FHLB advances, partially offset by $125 million of federal funds purchased at March 31, 2022.

Corporation Liquidity

Valley’s recurring cash requirements primarily consist of dividends to preferred and common shareholders and interest expense on subordinated notes and junior subordinated debentures issued to capital trusts. As part of our on-going asset/liability management strategies, Valley could also use cash to repurchase shares of its outstanding common stock under its share repurchase program or redeem its callable junior subordinated debentures and subordinated notes. Valley's cash needs are routinely satisfied by dividends collected from the Bank. Projected cash flows from the Bank are expected to be adequate to pay preferred and common dividends, if declared, and interest expense payable to subordinated note holders and capital trusts, given the current capital levels and current profitable operations of the Bank. In addition to dividends received from the Bank, Valley can satisfy its cash requirements by utilizing its own cash and potential new funds borrowed from outside sources or capital issuances. Valley also has the right to defer interest payments on the junior subordinated debentures, and therefore distributions on its trust preferred securities for consecutive quarterly periods up to five years, but not beyond the stated maturity dates, and subject to other conditions.

Investment Securities Portfolio

As of March 31, 2022, we had $36.0 million, $11.7 million, $1.0 billion and $3.1 billion in equity, trading debt, available for sale and held to maturity debt securities, respectively. The equity securities consisted of one publicly traded mutual fund, CRA investments and several other equity investments we have made in companies that develop new financial technologies and in a partnership that invests in such companies. Our CRA and other equity investments are a mix of both publicly traded entities and privately held entities. Our trading debt securities portfolio wholly consists of investment grade municipal bonds. The available for sale and held to maturity debt securities portfolios, which comprise the majority of the securities we own, include U.S. Treasury securities, U.S. government agency securities, tax-exempt and taxable issuances of states and political subdivisions, residential mortgage-backed securities, single-issuer trust preferred securities principally issued by bank holding companies, and high quality corporate bonds. Among other securities, our available for sale debt securities include securities such as bank issued and other corporate bonds, as well as municipal special revenue bonds, that may pose a higher risk of future impairment charges to us as a result of the uncertain economic environment and its potential negative effect on the future performance of the security issuers.

Allowance for Credit Losses and Impairment Analysis

Available for sale debt securities. Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses at least quarterly. In assessing whether a credit loss exists, we compare the present value of cash flows expected to be collected from the security with the amortized cost basis of the security. If the present value of cash flows expected to be collected is less than the amortized cost basis for the security, a credit loss exists and an allowance for credit losses is recorded, limited to the amount the fair value is less than amortized cost basis. Declines in fair value that have not been recorded through an allowance for credit losses, such as declines due to changes in market interest rates, are recorded through other comprehensive income, net of applicable taxes.

We have evaluated all available for sale debt securities that are in an unrealized loss position as of March 31, 2022 and December 31, 2021 and determined that the declines in fair value were mainly attributable to changes in market volatility, due to factors such as interest rates and spread factors, but not attributable to credit quality or other

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factors. Based on a comparison of the present value of expected cash flows to the amortized cost, management recognized no impairment charges during the three months ended March 31, 2022 and the year ended December 31, 2021, as a result, there was no allowance for credit losses for available for sale debt securities at March 31, 2022 and December 31, 2021.

Held to maturity debt securities. Valley estimates the expected credit losses on held to maturity debt securities that have loss expectations using a discounted cash flow model developed by a third party. Valley has a zero loss expectation for certain securities within the held to maturity portfolio, including U.S. Treasury securities, U.S. agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds. To measure the expected credit losses on held to maturity debt securities that have loss expectations, Valley estimates the expected credit losses using a discounted cash flow model developed by a third party. Assumptions used in the model for pools of securities with common risk characteristics include the historical lifetime probability of default and severity of loss in the event of default, with the model incorporating several economic cycles of loss history data to calculate expected credit losses given default at the individual security level. Held to maturity debt securities were carried net of an allowance for credit losses totaling approximately $1.2 million at both March 31, 2022 and December 31, 2021. There were no net charge-offs of held to maturity debt securities for the three months ended March 31, 2022 and 2021.

Investment grades. The investment grades in the table below reflect the most current independent analysis performed by third parties of each security as of the date presented and not necessarily the investment grades at the date of our purchase of the securities. For many securities, the rating agencies may not have performed an independent analysis of the tranches owned by us, but rather an analysis of the entire investment pool. For this and other reasons, we believe the assigned investment grades may not accurately reflect the actual credit quality of each security and should not be viewed in isolation as a measure of the quality of our investment portfolio.

The following table presents the held to maturity and available for sale debt securities portfolios by investment grades at March 31, 2022:

	March 31, 2022
	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
Available for sale investment grades: *
AAA Rated	$	872,466	$	1,049	$	(35,760)	$	837,755
AA Rated	55,058		40		(5,192)		49,906
A Rated	4,992		15		—		5,007
BBB Rated	19,000		105		(262)		18,843
Non-investment grade	4,997		—		(17)		4,980
Not rated	99,251		915		(1,623)		98,543
Total	$	1,055,764	$	2,124	$	(42,854)	$	1,015,034
Held to maturity investment grades: *
AAA Rated	$	2,770,369	$	4,154	$	(156,629)	$	2,617,894
AA Rated	134,261		808		(1,133)		133,936
A Rated	10,811		100		—		10,911
BBB Rated	6,000		135		(88)		6,047
Non-investment grade	5,556		—		(240)		5,316
Not rated	146,208		31		(6,492)		139,747
Total	$	3,073,205	$	5,228	$	(164,582)	$	2,913,851
Allowance for credit losses	1,222		—		—		—
Total, net of allowance for credit losses	$	3,071,983	$	5,228	$	(164,582)	$	2,913,851

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* Rated using external rating agencies. Ratings categories include the entire range. For example, “A rated” includes A+, A, and A-. Split rated securities with two ratings are categorized at the higher of the rating levels.

The unrealized losses in the AAA rated category of the held to maturity debt securities (in the above table) are mainly related to residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac. The investment securities held to maturity portfolio included $146.2 million of investments not rated by the rating agencies with aggregate unrealized losses of $6.5 million at March 31, 2022 mostly related to four single-issuer bank trust preferred issuances with a combined amortized cost of $36.0 million.

See Note 7 to the consolidated financial statements for additional information regarding our investment securities portfolio.

Loan Portfolio

The following table reflects the composition of the loan portfolio as of the dates presented:

	March 31, 2022			December 31, 2021
	($ in thousands)
Loans
Commercial and industrial:
Commercial and industrial	$	5,587,781		$	5,411,601
Commercial and industrial PPP loans	203,609			435,950
Total commercial and industrial *	5,791,390			5,847,551
Commercial real estate:
Commercial real estate	19,763,202			18,935,486
Construction	2,174,542			1,854,580
Total commercial real estate	21,937,744			20,790,066
Residential mortgage	4,691,935			4,545,064
Consumer:
Home equity	393,538			400,779
Automobile	1,552,928			1,570,036
Other consumer	996,870			1,000,161
Total consumer loans	2,943,336			2,970,976
Total loans*	$	35,364,405		$	34,153,657
As a percent of total loans:
Commercial and industrial	16.4		%	17.1		%
Commercial real estate	62.0			60.9
Residential mortgage	13.3			13.3
Consumer loans	8.3			8.7
Total	100.0		%	100.0		%

*     Includes net unearned discount and deferred loan fees of $62.0 million and $78.5 million at March 31, 2022 and December 31, 2021, respectively. Net unearned discounts and deferred loan fees included include the non-credit discount on purchased credit deteriorated (PCD) loans, and $5.9 million and $12.1 million of net unearned fees related to PPP loans at March 31, 2022 and December 31, 2021, respectively.

Commercial and industrial loans decreased $56.2 million, or 3.8 percent on an annualized basis, to $5.8 billion at March 31, 2022 as compared to December 31, 2021 mostly due to $232.3 million of PPP loans that were forgiven (i.e., repaid) during the first quarter 2022. PPP loan forgiveness will likely continue to negatively impact our ability to grow total commercial and industrial loans during the second quarter 2022. Non-PPP commercial and industrial loans increased by $176.2 million at March 31, 2022, or 13.0 percent on an annualized basis, as compared to December 31, 2021 mainly resulting from the solid new loan pipeline in most of our markets driven by several factors, including direct calling efforts of our growing commercial lending team.

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Commercial real estate loans (excluding construction loans) increased $827.7 million, or 17.5 percent on an annualized basis, to $19.8 billion at March 31, 2022 from December 31, 2021 reflecting solid organic growth across most of our geographic footprints. Construction loans increased $320.0 million, or 69.0 percent on an annualized basis, to $2.2 billion at March 31, 2022 from December 31, 2021 largely due to a higher volume of advances on pre-existing loan projects during the first quarter 2022.

Residential mortgage loans increased $146.9 million, or 12.9 percent on an annualized basis, during the first quarter 2022 mainly due to new loan activity in the purchased home market, and, to a lesser extent, refinance loan volumes. New and refinanced residential mortgage loans totaled $552.6 million for the first quarter 2022 as compared to $632.8 million and $550.6 million for the fourth quarter 2021 and first quarter 2021, respectively. Florida originations totaled approximately $183.1 million and represented 33 percent of total originations. Of the total originations in the first quarter 2022, $144.5 million of residential mortgage loans were originated for sale rather than held for investment as compared to $287.8 million during the first quarter 2021. During the first quarter 2022, we retained over 74 percent of the total residential mortgages originations in our held for investment loan portfolio. We sold approximately $201.2 million of residential mortgage loans held for sale during the first quarter 2022. While we retained a higher percentage of new loan volumes during the first quarter 2022, we may continue to sell a large portion of our loan originations during the second quarter 2022 based upon normal management of the interest rate risk and mix of the interest earning assets on our balance sheet. Additionally, refinanced loan applications have decreased significantly in the early stages of the second quarter 2022 due to the recent increase in mortgage interest rates and may challenge our ability to grow this loan category.

Home equity loans decreased by $7.2 million to $393.5 million at March 31, 2022 compared to December 31, 2021. New home equity loan volumes and customer usage of existing home equity lines of credit continue to be modest, and may be further challenged by a less favorable rising interest rate environment.

Automobile loans decreased by $17.1 million, or 4.4 percent on an annualized basis, to $1.6 billion at March 31, 2022 as compared to December 31, 2021 as loan repayments outpaced origination volumes in the first quarter 2022. Car manufacturers have continued to struggle with low inventories of new vehicles caused by supply chain disruptions which have slowed auto production. We originated $148.1 million in auto loans through our dealership network during the first quarter 2022 as compared to $177.1 million in the fourth quarter 2021. Of the total originations, our Florida dealership network contributed $24.5 million in auto loan originations, representing approximately 17 percent of new loans, during the first quarter 2022. The current low levels of new and used automobile inventories may continue to negatively impact our auto loan growth during the second quarter 2022.

Other consumer loans decreased $3.3 million to $996.9 million at March 31, 2022 as compared to $1.0 billion at December 31, 2021.

Most of our lending is in northern and central New Jersey, New York City, Long Island, Florida and Alabama, except for smaller auto and residential mortgage loan portfolios derived from other neighboring states of New Jersey. To mitigate our geographic risks, we make efforts to maintain a diversified portfolio as to type of borrower and loan to guard against a potential downward turn in any one economic sector.

For the remainder of 2022, we anticipate strong organic commercial and industrial non-PPP and commercial real estate loan growth. In the early stages of the second quarter 2022, we are encouraged that our commercial loan origination pipelines remain robust and overall loan growth should remain well-diversified across our markets in our commercial loan categories. Due to the exceptional growth generated in the first quarter, and an improved outlook for the rest of the year, we currently project that our organic loan growth will range from 10 to 12 percent for the full year of 2022, excluding the impact of our recent acquisition of Bank Leumi USA on April 1, 2022. However, there can be no assurance that those positive trends will continue, or balances will not decline from March 31, 2022 given the uncertainty in the U.S. economy due to several factors, including the Russia-Ukraine war, persistently high inflation, and the impact of the Federal Reserve's monetary policy actions.

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Non-performing Assets

Non-performing assets (NPA) include non-accrual loans, other real estate owned (OREO), and other repossessed assets (which primarily consists of automobiles and taxi medallions) at March 31, 2022. Loans are generally placed on non-accrual status when they become past due in excess of 90 days as to payment of principal or interest. Exceptions to the non-accrual policy may be permitted if the loan is sufficiently collateralized and in the process of collection. OREO is acquired through foreclosure on loans secured by land or real estate. OREO and other repossessed assets are reported at the lower of cost or fair value, less estimated cost to sell.

Our NPAs decreased $12.7 million to $232.7 million at March 31, 2022 as compared to December 31, 2021 largely due to loan payoffs net of new non-accrual loans in several categories during the first quarter. NPAs as a percentage of total loans and NPAs totaled 0.65 percent and 0.71 percent at March 31, 2022 and December 31, 2021, respectively (as shown in the table below). We believe our total NPAs has remained relatively low as a percentage of the total loan portfolio and the level of NPAs is reflective of our consistent approach to the loan underwriting criteria for both Valley originated loans and loans purchased from third parties. For additional details, see the "Credit quality indicators" section in Note 8 to the consolidated financial statements.

Our lending strategy is based on underwriting standards designed to maintain high credit quality and we remain

optimistic regarding the overall future performance of our loan portfolio. During 2021 and the first quarter 2022, our overall credit trends remained stable, and our business and borrowers continued to demonstrate resilience and growth despite the continuing challenges of the COVID-19 pandemic. However, management cannot provide assurance that the non-performing assets will not increase substantially from the levels reported at March 31, 2022 due to the continuing economic uncertainty and potential for credit deterioration. In addition, a few borrowers are still performing under forbearance agreements at March 31, 2022 as discussed under the "Loan Forbearance" section below.

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The following table sets forth by loan category accruing past due and non-performing assets at the dates indicated in conjunction with our asset quality ratios: 

	March 31, 2022			December 31, 2021
	($ in thousands)
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial	$	6,723		$	6,717
Commercial real estate	30,807			14,421
Construction	1,708			1,941
Residential mortgage	9,266			10,999
Total consumer	5,862			6,811
Total 30 to 59 days past due	54,366			40,889
60 to 89 days past due:
Commercial and industrial	14,461			7,870
Commercial real estate	6,314			—
Construction	3,125			—
Residential mortgage	2,560			3,314
Total consumer	554			1,020
Total 60 to 89 days past due	27,014			12,204
90 or more days past due:
Commercial and industrial	9,261			1,273
Commercial real estate	—			32
Residential mortgage	1,746			677
Total consumer	400			789
Total 90 or more days past due	11,407			2,771
Total accruing past due loans	$	92,787		$	55,864
Non-accrual loans:
Commercial and industrial	$	96,631		$	99,918
Commercial real estate	79,180			83,592
Construction	17,618			17,641
Residential mortgage	33,275			35,207
Total consumer	3,754			3,858
Total non-accrual loans	230,458			240,216
Other real estate owned (OREO)	1,024			2,259
Other repossessed assets	1,176			2,931
Total non-performing assets (NPAs)	$	232,658		$	245,406
Performing troubled debt restructured loans	$	56,538		$	71,330
Total non-accrual loans as a % of loans	0.65		%	0.70		%
Total NPAs as a % of loans and NPAs	0.65			0.71
Total accruing past due and non-accrual loans as a % of loans	0.91			0.87
Allowance for loan losses as a % of non-accrual loans	157.30			149.53

Loans past due 30 to 59 days increased $13.5 million to $54.4 million at March 31, 2022 as compared to December 31, 2021. Commercial real estate loans past due 30 to 59 days increased $16.4 million to $30.8 million at March 31, 2022 as compared to December 31, 2021 mainly due to a $13.2 million loan included in this delinquency category at March 31, 2022.

Loans past due 60 to 89 days increased $14.8 million to $27.0 million at March 31, 2022 as compared to December 31, 2021. Commercial and industrial and commercial real estate loans within this delinquency category

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increased $6.6 million and $6.3 million, respectively, at March 31, 2022 mainly due to a few additional loans that are considered well-secured and in the process of collection reported at March 31, 2022.

Loans past due 90 days or more and still accruing interest increased $8.6 million to $11.4 million at March 31, 2022 as compared to December 31, 2021. The increase was mainly driven by a $8.0 million increase in commercial and industrial loans category, as well as a moderate increase in residential mortgage delinquencies. All of the loans past due 90 days or more and still accruing interest reported at March 31, 2022 are considered to be well-secured and in the process of collection.

Non-accrual loans decreased $9.8 million to $230.5 million at March 31, 2022 as compared to $240.2 million at December 31, 2021 mostly due to decreases of $4.4 million and $3.3 million in commercial real estate and commercial and industrial loans, respectively. The decrease in commercial real estate loans delinquencies was due, in part, to the full repayment of a $12.0 million loan during the first quarter 2022, partly offset by two new non-accrual loans at March 31, 2022. The decrease in non-accrual commercial and industrial loans was also partly due to loan payoffs during the first quarter 2022.

Non-accrual commercial and industrial loans totaled $96.6 million at March 31, 2022 and largely consist of non-performing New York City and Chicago taxi medallion loans totaling $84.7 million and $574 thousand, respectively. At March 31, 2022, the taxi medallion loans had related reserves of $58.2 million, or 68.2 percent of such loans. The tax medallion loans and related reserves remained relatively unchanged from December 31, 2021. Potential declines in the market valuation of taxi medallions and the stressed operating environment mainly within New York City due to the COVID-19 pandemic could negatively impact the future performance of this portfolio. For example, a 25 percent decline in our current estimated market value of the taxi medallions would require additional allocated reserves of $5.6 million within the allowance for loan losses based upon the taxi medallion loan balances at March 31, 2022. See the "Allowance for Credit Losses" section below for further details on our reserves.

OREO properties totaled $1.0 million at March 31, 2022 and declined $1.2 million as compared to December 31, 2021. Net gains and losses from sales of OREO were immaterial for the three months ended March 31, 2022 and 2021. The residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.8 million and $2.5 million at March 31, 2022 and December 31, 2021, respectively.

TDRs represent loan modifications for customers experiencing financial difficulties where a concession has been granted. Performing TDRs (i.e., TDRs not reported as loans 90 days or more past due and still accruing interest or as non-accrual loans) totaled $56.5 million at March 31, 2022 as compared to $71.3 million at December 31, 2021. Performing TDRs consisted of 89 loans at March 31, 2022. On an aggregate basis, the $56.5 million in performing TDRs at March 31, 2022 had a modified weighted average interest rate of approximately 4.12 percent as compared to a pre-modification weighted average interest rate of 4.27 percent.

Loan Forbearance. In response to the COVID-19 pandemic and its economic impact on 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. Generally, the modification terms allow for a deferral of payments for up to 90 days, which Valley could extend for an additional 90 days. Any extensions beyond this period were provided in accordance with applicable regulatory guidance. Under the applicable accounting and regulatory guidance, none of these loans were classified as TDRs at March 31, 2022 and December 31, 2021. Valley had $23.0 million of outstanding loans remaining in their payment deferral periods under short-term modifications at March 31, 2022 as compared to $27.9 million at December 31, 2021.

Allowance for Credit Losses for Loans

The allowance for credit losses (ACL) for loans includes the allowance for loan losses and the reserve for unfunded credit commitments. Under CECL, our methodology to establish the allowance for loan losses has two basic components: (1) a collective reserve component for estimated expected credit losses for pools of loans that share common risk characteristics and (2) an individual reserve component for loans that do not share risk characteristics,

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consisting of collateral dependent, TDR, and expected TDR loans. Valley also maintains a separate allowance for unfunded credit commitments mainly consisting of undisbursed non-cancellable lines of credit, new loan commitments and commercial standby letters of credit.

Valley estimated the collective ACL using a current expected credit losses methodology which is based on relevant information about historical experience, current conditions, and reasonable and supportable forecasts that affect the collectability of the loan balances. In estimating the component of the allowance on a collective basis we use a transition matrix model which calculates an expected life of loan loss percentage for each loan pool by generating probability of default and loss given default metrics. The metrics are based on the migration of loans from performing to loss by credit quality rating or delinquency categories using historical life-of-loan analysis periods for each loan portfolio pool and the severity of loss based on the aggregate net lifetime losses. The model's expected losses based on loss history are adjusted for qualitative factors. Among other things, these adjustments include and account for differences in: (i) the impact of the reasonable and supportable economic forecast, relative probability weightings and reversion period, (ii) other asset specific risks to the extent they do not exist in the historical loss information, and (iii) net expected recoveries of charged off loan balances. These adjustments are based on qualitative factors not reflected in the quantitative model but are likely to impact the measurement of estimated credit losses. The expected lifetime loss rate is the life of loan loss percentage from the transition matrix model plus the impact of the adjustments for qualitative factors. The expected credit losses are the product of multiplying the model’s expected lifetime loss rate by the exposure at default at period end on an undiscounted basis.

Valley utilizes a two-year reasonable and supportable forecast period followed by a one-year period over which estimated losses revert to historical loss experience for the remaining life of the loan on a straight-line basis. The forecasts consist of a multi-scenario economic forecast model to estimate future credit losses and is governed by a cross-functional committee. The committee meets each quarter to determine which economic scenarios developed by Moody's will be incorporated into the model, as well as the relative probability weightings of the selected scenarios, based upon all readily available information. The model projects economic variables under each scenario based on detailed statistical analyses. We have identified and selected key variables that most closely correlated to our historical credit performance, which include: GDP, unemployment and the Case-Shiller Home Price Index.

For the first quarter 2022, we incorporated a probability weighted three-scenario economic forecast, including Moody's Baseline, S-3 and S-4 scenarios. At March 31, 2022, Valley maintained the majority of its probability weighting to the Moody’s Baseline scenario with less emphasis on the S-3 downside and S-4 (most adverse) scenarios. The Baseline weighting reflects a positive economic outlook including higher GDP growth and lower unemployment levels that are expected to improve labor market conditions and promote stronger economic growth during 2022. During the first quarter 2022, we removed our modest weighting to the Moody's S-1 upside scenario used at December 31, 2021 and added weighting to the S-4 adverse scenario due to the greater uncertainty caused by recent developments, including, but not limited to persistently high inflation, the Federal Reserve's monetary policy actions, the Russia-Ukraine war and the unknown impact of economic sanctions on Russia that may further negatively impact the supply chain in the US and abroad.

At March 31, 2022, the Moody's Baseline forecast included the following specific assumptions:

•GDP expansion by over 4.8 percent in the second quarter 2022;

•Unemployment of 3.7 percent in the second quarter 2022 and improving to 3.4 percent over the remainder of the forecast period ending in the first quarter 2024; and

•Strong U.S. economic growth driven by continued consumer spending.

See more details regarding our allowance for credit losses for loans in Note 8 to the consolidated financial statements.

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The table below summarizes the relationship among loans, loans charged-off, loan recoveries, the provision for credit losses and the allowance for credit losses for loans for the periods indicated.

	Three Months Ended
	March 31, 2022			December 31, 2021			March 31, 2021
	($ in thousands)
Average loans outstanding	$	34,623,402		$	33,338,128		$	32,582,479
Allowance for credit losses for loans
Beginning balance	375,702			356,927			351,354
Allowance for purchased credit deteriorated (PCD) loans	—			6,542			—
Loans charged-off:
Commercial and industrial	(1,571)			(2,224)			(7,142)
Commercial real estate	(173)			—			(382)
Residential mortgage	(26)			(1)			(138)
Total consumer	(825)			(914)			(1,138)
Total charge-offs	(2,595)			(3,139)			(8,800)
Charged-off loans recovered:
Commercial and industrial	824			1,153			1,589
Commercial real estate	107			1,794			65
Construction	—			—			4
Residential mortgage	457			100			157
Total consumer	1,257			716			930
Total recoveries	2,645			3,763			2,745
Net loan recoveries (charge-offs)	50			624			(6,055)
Provision charged for credit losses	3,500			11,609			9,014
Ending balance	$	379,252		$	375,702		$	354,313
Components of allowance for credit losses for loans:
Allowance for loan losses	$	362,510		$	359,202		$	342,880
Allowance for unfunded credit commitments	16,742			16,500			11,433
Allowance for credit losses for loans	$	379,252		$	375,702		$	354,313
Components of provision for credit losses for loans:
Provision for credit losses for loans	$	3,258		$	9,509		$	8,692
Provision for unfunded credit commitments	242			2,100			322
Total provision for credit losses for loans	$	3,500		$	11,609		$	9,014
Annualized ratio of net (recoveries) charge-offs to average loans outstanding	0.00		%	(0.01)		%	0.07		%

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The following table presents the relationship among net loans charged-off and recoveries, and average loan balances outstanding for the indicated:

	Three Months Ended
	March 31, 2022		December 31, 2021		March 31, 2021
	($ in thousands)
Net loan recoveries (charge-offs)
Commercial and industrial	$	(747)	$	(1,071)	$	(5,553)
Commercial real estate	(66)		1,794		(317)
Construction	—		—		4
Residential mortgage	431		99		19
Total consumer	432		(198)		(208)
Total	$	50	$	624	$	(6,055)
Average loans outstanding
Commercial and industrial	$	5,727,350	$	5,659,831	$	6,891,366
Commercial real estate	19,342,697		18,353,345		16,913,773
Construction	1,914,413		1,857,590		1,728,088
Residential mortgage	4,681,417		4,516,379		4,435,252
Total consumer	2,957,525		2,950,983		2,614,000
Total	$	34,623,402	$	33,338,128	$	32,582,479
Net loan charge-offs (recoveries) to average loans outstanding
Commercial and industrial	0.01%		0.02%		0.08%
Commercial real estate	0.00		(0.01)		0.00
Construction	0.00		0.00		0.00
Residential mortgage	(0.01)		0.00		0.00
Total consumer	(0.01)		0.01		0.01

Net loan loss recoveries totaled $50 thousand and $624 thousand for the first quarter 2022 and fourth quarter 2021, respectively, as compared to $6.1 million in net loan charge-offs for the first quarter 2021. There were partial charge-offs of taxi medallion loans of $206 thousand within the commercial and industrial loan category during the first quarter 2022 as compared to $3.3 million for the first quarter 2021. There were no charge-offs of taxi medallion loans in the fourth quarter 2021. The overall level of loan charge-offs (as presented in the above table) continued to remain very low and trend well within management's expectations for the credit quality of the loan portfolio for the first quarter 2022.

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The following table summarizes the allocation of the allowance for credit losses for loans to loan portfolio categories and the allocations as a percentage of each loan category:

	March 31, 2022				December 31, 2021				March 31, 2021
	Allowance Allocation		Allocation as a % of Loan Category		Allowance Allocation		Allocation as a % of Loan Category		Allowance Allocation		Allocation as a % of Loan Category
	($ in thousands)
Loan Category:
Commercial and industrial loans	$	101,203	1.75	%	$	103,090	1.76	%	$	126,408	1.77	%
Commercial real estate loans:
Commercial real estate	189,927		0.96		193,258		1.02		153,680		0.91
Construction	30,022		1.38		24,232		1.31		20,556		1.15
Total commercial real estate loans	219,949		1.00		217,490		1.05		174,236		0.93
Residential mortgage loans	28,189		0.60		25,120		0.55		27,172		0.67
Consumer loans:
Home equity	3,656		0.93		3,889		0.97		4,199		1.03
Auto and other consumer	9,513		0.37		9,613		0.37		10,865		0.46
Total consumer loans	13,169		0.45		13,502		0.45		15,064		0.54
Allowance for loan losses	362,510		1.03		359,202		1.05		342,880		1.05
Allowance for unfunded credit commitments	16,742				16,500				11,433
Total allowance for credit losses for loans	$	379,252			$	375,702			$	354,313
Allowance for credit losses for loans as a % total loans			1.07	%			1.10	%			1.08	%

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments (including letters of credit), as a percentage of total loans was 1.07 percent, 1.10 percent and 1.08 percent at March 31, 2022, December 31, 2021 and March 31, 2021, respectively. During the first quarter 2022, we recorded a $3.5 million provision for credit losses as compared to $11.6 million and $9.0 million for the fourth quarter 2021 and the first quarter 2021, respectively. The first quarter 2022 provision and increase in our allowance at March 31, 2022 largely reflects additional reserves required due to loan growth during the first quarter 2022.

The allocated reserves as a percentage of commercial real estate loans decreased 6 basis points to 0.96 percent at March 31, 2022 from December 31, 2021 mainly due to lower quantitative reserves for non-owner occupied loans caused by the improvement in the expected loss rates at March 31, 2022. The allowance for credit losses as a percentage of total non-PPP loans was 1.08 percent, 1.11 percent and 1.17 percent for the first quarter 2022, fourth quarter 2021 and first quarter 2021, respectively.

Capital Adequacy

A significant measure of the strength of a financial institution is its shareholders’ equity. At March 31, 2022 and December 31, 2021, shareholders’ equity totaled approximately $5.1 billion, which represented 11.7 percent of total assets. During the three months ended March 31, 2022, total shareholders’ equity increased by $12.3 million primarily due to net income of $116.7 million, partially offset by cash dividends declared on common and preferred stock totaling a combined $50.0 million, an increase in other comprehensive loss of $38.2 million, repurchases of $13.5 million of our common stock with these shares held as treasury stock and a $2.7 million decrease attributable to the effect of our stock incentive plan.

Valley and Valley National Bank are subject to the regulatory capital requirements administered by the Federal Reserve Bank and the OCC. Quantitative measures established by regulation to ensure capital adequacy require

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Valley and Valley National Bank to maintain minimum amounts and ratios of common equity Tier 1 capital, total and Tier 1 capital to risk-weighted assets, and Tier 1 capital to average assets, as defined in the regulations.

We are required to maintain common equity Tier 1 capital to risk-weighted assets ratio of 4.5 percent, Tier 1 capital to risk-weighted assets ratio of 6.0 percent, ratio of total capital to risk-weighted assets of 8.0 percent, and minimum leverage ratio of 4.0 percent, plus a 2.5 percent capital conservation buffer added to the minimum requirements for capital adequacy purposes. As of March 31, 2022 and December 31, 2021, Valley and Valley National Bank exceeded all capital adequacy requirements (see table below).

For regulatory capital purposes, in accordance with the Federal Reserve Board’s final interim rule as of April 3, 2020, we deferred 100 percent of the CECL Day 1 impact to shareholders' equity plus 25 percent of the reserve build (i.e. provision for credit losses less net charge-offs) for a two-year period ending January 1, 2022. Starting January 1, 2022, the deferral amount totaling $47.3 million after-tax will be phased-in 25 percent per year until fully phased-in on January 1, 2025. As of March 31, 2022, approximately $11.8 million of the $47.3 million deferral amount was recognized as a reduction to regulatory capital and, as a result, decreased our risk based capital ratios by approximately 4 basis points.

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The following table presents Valley’s and Valley National Bank’s actual capital positions and ratios under Basel III risk-based capital guidelines at March 31, 2022 and December 31, 2021:

	Actual				Minimum Capital Requirements				To Be Well Capitalized Under Prompt Corrective Action Provision
	Amount		Ratio		Amount		Ratio		Amount		Ratio
	($ in thousands)
As of March 31, 2022
Total Risk-based Capital
Valley	$	4,499,638	12.65	%	$	3,735,425	10.50	%	N/A		N/A
Valley National Bank	4,576,857		12.88		3,730,491		10.50		$	3,552,849	10.00	%
Common Equity Tier 1 Capital
Valley	3,439,249		9.67		2,490,283		7.00		N/A		N/A
Valley National Bank	4,290,309		12.08		2,486,994		7.00		2,309,352		6.50
Tier 1 Risk-based Capital
Valley	3,654,090		10.27		3,023,915		8.50		N/A		N/A
Valley National Bank	4,290,309		12.08		3,019,922		8.50		2,842,279		8.00
Tier 1 Leverage Capital
Valley	3,654,090		8.70		1,679,775		4.00		N/A		N/A
Valley National Bank	4,290,309		10.22		1,679,314		4.00		2,099,143		5.00
As of December 31, 2021
Total Risk-based Capital
Valley	$	4,454,485	13.10	%	$	3,569,144	10.50	%	N/A		N/A
Valley National Bank	4,571,448		13.45		3,567,618		10.50		$	3,397,732	10.00	%
Common Equity Tier 1 Capital
Valley	3,417,930		10.06		2,379,429		7.00		N/A		N/A
Valley National Bank	4,308,734		12.68		2,378,412		7.00		2,208,526		6.50
Tier 1 Risk-based Capital
Valley	3,632,771		10.69		2,889,307		8.50		N/A		N/A
Valley National Bank	4,308,734		12.68		2,888,072		8.50		2,718,185		8.00
Tier 1 Leverage Capital
Valley	3,632,771		8.88		1,635,508		4.00		N/A		N/A
Valley National Bank	4,307,734		10.53		1,636,097		4.00		2,045,121		5.00

Tangible book value per common share is computed by dividing shareholders’ equity less preferred stock, goodwill and other intangible assets by common shares outstanding as follows: 

	March 31, 2022		December 31, 2021
	($ in thousands, except for share data)
Common shares outstanding	421,394,277		421,437,068
Shareholders’ equity	$	5,096,384	$	5,084,066
Less: Preferred stock	209,691		209,691
Less: Goodwill and other intangible assets	1,543,238		1,529,394
Tangible common shareholders’ equity	$	3,343,455	$	3,344,981
Tangible book value per common share	$	7.93	$	7.94
Book value per common share	$	11.60	$	11.57

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Management believes the tangible book value per common share ratio, a non-GAAP financial measure, provides information useful to management and investors in understanding our underlying operational performance, our business and performance trends and facilitates comparisons with the performance of others in the financial services industry. This non-GAAP financial measure should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. This non-GAAP financial measure may also be calculated differently from similar measures disclosed by other companies.

Typically, our primary source of capital growth is through retention of earnings. Our rate of earnings retention is derived by dividing undistributed earnings per common share by earnings (or net income available to common shareholders) per common share. Our retention ratio was approximately 59.3 percent for the three months ended March 31, 2022 as compared to 60.7 percent for the year ended December 31, 2021.

Cash dividends declared amounted to $0.11 per common share for each of the three months ended March 31, 2022 and 2021. The Board is committed to examining and weighing relevant facts and considerations, including its commitment to shareholder value, each time it makes a cash dividend decision.

Off-Balance Sheet Arrangements, Contractual Obligations and Other Matters

For a discussion of Valley’s off-balance sheet arrangements and contractual obligations see information included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2021 in the MD&A section - “Liquidity and Cash Requirements” and Notes 11 and 12 to the consolidated financial statements included in this report.

Item 3. Quantitative and Qualitative Disclosures About Market Risk

Market risk refers to potential losses arising from changes in interest rates, foreign exchange rates, equity prices, and commodity prices. Valley’s market risk is composed primarily of interest rate risk. See page 56 for a discussion of interest rate sensitivity.

Item 4. Controls and Procedures

(a) Disclosure controls and procedures. Valley maintains disclosure controls and procedures which, consistent with Rule 13a-15(e) under the Securities Exchange Act of 1934, as amended (Exchange Act), are defined to mean controls and other procedures that are designed to ensure that information required to be disclosed in the reports that Valley files or submits under the Exchange Act is recorded, processed, summarized and reported within the time periods specified in the Securities and Exchange Commission’s rules and forms, and to ensure that such information is accumulated and communicated to Valley’s management, including Valley’s Chief Executive Officer (CEO) and Chief Financial Officer (CFO), as appropriate, to allow timely decisions regarding required disclosure.

Valley’s CEO and CFO, with the assistance of other members of Valley’s management, have evaluated the effectiveness of Valley’s disclosure controls and procedures (as defined in Rule 13a-15(e) or Rule 15d-15(e) under the Exchange Act) as of the end of the period covered by this Quarterly Report on Form 10-Q. Based on such evaluation, Valley’s CEO and CFO have concluded that Valley’s disclosure controls and procedures were effective as of the end of the period covered by this report.

(b) Changes in internal controls over financial reporting. Valley’s CEO and CFO have also concluded that there have not been any changes in Valley’s internal control over financial reporting in the quarter ended March 31, 2022 that have materially affected, or are reasonably likely to materially affect, Valley’s internal control over financial reporting.

Valley’s management, including the CEO and CFO, does not expect that our disclosure controls and procedures or our internal controls over financial reporting will prevent all errors and all fraud. A system of internal control, no matter how well conceived and operated, provides reasonable, not absolute, assurance that the objectives of the system of internal control are met. The design of a system of internal control reflects resource constraints and the

72

benefits of controls must be considered relative to their costs. Because there are inherent limitations in all control systems, no evaluation of controls can provide absolute assurance that all control issues and instances of fraud, if any, within Valley have been or will be detected. These inherent limitations include the realities that judgments in decision-making can be faulty and that breakdowns occur because of a simple error or mistake. Controls can be circumvented by the individual acts of some persons, by collusion of two or more people, or by management override of the control. The design of any system of internal control is based in part upon certain assumptions about the likelihood of future events. There can be no assurance that any design will succeed in achieving its stated goals under all future conditions; over time, controls may become inadequate because of changes in conditions or deterioration in the degree of compliance with the policies or procedures. Because of the inherent limitations in a cost-effective control system, misstatements due to error or fraud may occur and not be detected.

PART II - OTHER INFORMATION 

Item 1. Legal Proceedings

In the normal course of business, we are a party to various outstanding legal proceedings and claims. There have been no material changes in the legal proceedings, if any, previously disclosed under Part I, Item 3 of Valley’s Annual Report on Form 10-K for the year ended December 31, 2021.

Item 1A. Risk Factors

There have been no material changes in the risk factors previously disclosed in the section titled "Risk Factors" in Part I, Item 1A of Valley’s Annual Report on Form 10-K for the year ended December 31, 2021.

Item 2. Unregistered Sales of Equity Securities and Use of Proceeds

During the quarter, we did not sell any equity securities not registered under the Securities Act of 1933, as amended. Purchases of equity securities by the issuer and affiliated purchasers during the three months ended March 31, 2022 were as follows:

ISSUER PURCHASES OF EQUITY SECURITIES 

Period	Total  Number of Shares  Purchased (1)	Average Price Paid Per Share		Total Number of Shares Purchased as Part of Publicly Announced Plans (2) (3)	Maximum Number of Shares that May Yet Be Purchased Under the Plans (2)
January 1, 2022 to January 31, 2022	869,041	$	13.77	451,000	2,046,473
February 1, 2022 to February 28, 2022	860,112	13.47		563,503	1,482,970
March 1, 2022 to March 31, 2022	5,287	14.43		—	1,482,970
Total	1,734,440	$	13.62	1,014,503

(1)Includes repurchases made in connection with the vesting of employee restricted stock awards.

(2)On January 17, 2007, Valley publicly announced its intention to repurchase up to 4.7 million outstanding common shares in the open market or in privately negotiated transactions. The repurchase plan has no stated expiration date. No repurchase plans or programs expired or terminated during the three months ended March 31, 2022. On April 26, 2022, Valley terminated its 2007 stock repurchase plan (and the remaining shares available for repurchase under this plan in the table above).

(3)On April 26, 2022, Valley publicly announced a stock repurchase program for up to 25 million shares of Valley common stock. The authorization to repurchase will expire on April 25, 2024.

.

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Item 6. Exhibits

(3)	Articles of Incorporation and By-laws:
	(3.1)	Restated Certificate of Incorporation of the Registrant, incorporated herein by reference to Exhibit 3.1 to the Registrant's Form 10-Q Quarterly Report filed on August 7, 2020.
	(3.2)	By-laws of the Registrant, as amended and restated, incorporated herein by reference to Exhibit 3.1 to the Registrant’s Form 8-K Current Report filed on October 24, 2018.
(10)	Material Contracts:
	(10.1)	Investor Rights Agreement, dated as of April 1, 2022, by and between Valley National Bancorp and Bank Leumi Le-Israel B.M., incorporated herein by reference to Exhibit 10.1 to the Registrant's Form 8-K Current Report filed on April 1, 2022.
	(10.2)	Separation Agreement and General Release between Valley National Bank and Robert Bardusch dated as of February 16, 2022.*
(31.1)	Certification of Ira Robbins, Chairman of the Board and Chief Executive Officer of the Company, pursuant to Securities Exchange Rule 13a-14(a).*
(31.2)	Certification of Michael D. Hagedorn, Senior Executive Vice President and Chief Financial Officer of the Company, pursuant to Securities Exchange Rule 13a-14(a).*
(32)	Certification pursuant to 18 U.S.C. Section 1350, as adopted pursuant to Section 906 of the Sarbanes-Oxley Act of 2002, signed by Ira Robbins, Chairman of the Board and Chief Executive Officer of the Company, and Michael D. Hagedorn, Senior Executive Vice President and Chief Financial Officer of the Company.**
(101)	Interactive Data File (XBRL Instance Document does not appear in the Interactive Data File because its XBRL tags are embedded within the Inline XBRL document) **
(104)	Cover Page Interactive Data File (formatted as Inline XBRL and contained in Exhibit 101)

*	Filed herewith.
**	Furnished herewith

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SIGNATURES

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned thereunto duly authorized.

	VALLEY NATIONAL BANCORP
	(Registrant)
Date:	/s/ Ira Robbins
May 9, 2022	Ira Robbins
	Chairman of the Board and
	Chief Executive Officer
	(Principal Executive Officer)
Date:	/s/ Michael D. Hagedorn
May 9, 2022	Michael D. Hagedorn
	Senior Executive Vice President and
	Chief Financial Officer
	(Principal Financial Officer)

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EX-10.2

EXHIBIT 10.2

SEPARATION AGREEMENT AND GENERAL RELEASE

This Separation Agreement and General Release (this “Agreement”) is made as of 16 February 2022 (the “Agreement Date”) between Valley National Bank (“Employer”) and Robert Bardusch (“Employee”).

WHEREAS, Employee is employed by Employer as an employee at-will; and

WHEREAS, Employer desires to provide Employee with certain payments to assist with the transition from Employee’s employment with Employer in exchange for Employee’s agreement to enter into this Agreement, which contains a waiver of rights and a general release of all claims; and

WHEREAS, as a condition precedent to receiving the benefits described herein, Employee agrees to execute and fully comply with the terms of this Agreement; and

WHEREAS, Employee and Employer agree that the terms set forth in this Agreement constitute adequate consideration for entry into this Agreement, the receipt and sufficiency of which are hereby acknowledged.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, Employer and Employee, intending to be legally bound hereby, agree as follows:

PART I – SEPARATION DATE AND PAYMENTS AND BENEFITS

1.Employee acknowledges receiving this Agreement on the Agreement Date as notice from Employer that (a) Employee’s service as an officer or director of Employer and all of its affiliates shall terminate effective as of the Agreement Date and (b) Employee’s employment with Employer shall terminate effective as of 1 April 2022 (the “Separation Date”). Effective as of the Agreement Date, Employee hereby resigns from all officer and director positions that Employee holds with Employer and its affiliates, and while such resignations are intended to be self-effectuating, Employee shall execute any and all documentation necessary to implement such resignations.

2.From the Agreement Date until the Separation Date, Employee shall serve as a non-executive employee of Employer providing transition services (the “Transition Period”). In consideration for Employee’s services during the Transition Period, until the Separation Date, Employee shall continue to receive Employee’s base salary at the rate in effect on the Agreement Date and remain eligible to vest in the equity awards Employee holds as of the Agreement Date; provided, however, from and following the Agreement Date, Employee shall not be granted any additional equity awards and, except as expressly provided in Part I Section 3, Employee shall not be entitled to any additional non-equity incentive payments. In addition, Employer shall continue Employee’s health and dental benefits until the last day of the month of the Separation Date, with cost sharing on the same basis as other employees of Employer. Thereafter, Employee may continue health and dental benefits at Employee’s own expense in accordance with the provisions of the Consolidated Omnibus Budget Reconciliation Act of 1985 (“COBRA”). A letter will be sent by the COBRA Administrator to Employee explaining the terms and options for continuation of health insurance coverage once termination of coverage occurs.

3.The total gross sum of $261,250 in respect of, and in full satisfaction of, Employee’s 2021 annual cash bonus calculated at one hundred percent (100%) of target shall be paid in a lump sum at the time that annual cash bonuses are paid to active employees of Employer in the first fiscal quarter of 2022 (but in any case, no later than 15 March 2022). All applicable

1

EXHIBIT 10.2

withholding, authorized deductions and other taxes and legal requirements shall be deducted at the time of such payment.

4.Employee’s accrued but unused vacation time as of the Separation Date shall be paid to Employee in a lump sum (less applicable withholding and other taxes) on the next payroll scheduled after the Separation Date. All applicable withholding, authorized deductions and other taxes and legal requirements shall be deducted at the time of such payment.

5.Employee’s participation in Employer’s Deferred Compensation Plan shall cease as of the Separation Date and Employee’s vested and accrued benefits thereunder shall be paid accordance with the terms of such plan.

6.Employee’s participation in Employer’s 401(k) Plan shall cease as of the Separation Date and Employee’s vested and accrued benefits thereunder shall be paid accordance with the terms of such plan.

7.Employee’s life, short-term and long-term disability insurances shall cease as of the Separation Date.

8.Any compensation or benefits provided to Employee during employment that are not specifically provided for in this Agreement shall terminate effective as of the Separation Date, and Employee shall not be entitled to any compensation or benefits not expressly set forth herein.

9.Provided that Employee remains continuously and satisfactorily employed (including providing transitional assistance to Employer) through the Transition Period and Employee agrees to and accepts the terms of and executes this Agreement and does not timely revoke such acceptance, and subject to Employee’s execution and non-revocation of the additional release of claims substantially in the form attached hereto as Exhibit A (the “Additional Release”) on or within the period following the Separation Date specified in the Additional Release (the “Conditions”), then, in consideration of and subject to the terms of this Agreement and in full satisfaction of all final payments due to Employee, Employer agrees to pay or provide to Employee the discretionary separation pay and benefits set forth in this Part I, Section 9 (the “Severance Benefits”). Employee acknowledges and agrees that the Severance Benefits exceed any sums or benefits to which Employee would otherwise be entitled under any applicable policy, plan and/or procedure of Employer or any previous agreement or understanding between Employee and Employer. The Severance Benefits shall be in full satisfaction of the obligations of Employer and its affiliates to Employee under this Agreement and/or any other plan, agreement, policy or arrangement of Employer and its affiliates upon Employee’s termination of employment, and in no event shall Employee be entitled to severance pay or benefits beyond the Severance Benefits.

(a)Severance. The total gross sum of $950,000, representing one hundred and four (104) weeks of Employee’s base salary as severance granted not pursuant to a severance plan but at the discretion of Employer solely subject to the Conditions. Such payment shall be made in bi-weekly installments during the two years following the Separation Date, subject to Employee’s continued compliance with the covenants set forth in Part II of this Agreement; provided, however, that any installments that otherwise would be payable prior to the date that the Additional Release becomes effective and irrevocable shall be accrued and paid on the first payroll date after which the Additional Release becomes effective and irrevocable. All applicable withholding, authorized deductions and other taxes and legal requirements shall continue to be deducted at the time of each installment.

2

EXHIBIT 10.2

(b)Outstanding Equity Awards. Employee agrees that Exhibit Bhereto contains a complete and accurate record of all of Employee’s eligible and outstanding equity and equity-based awards, and that Employee is not eligible to receive any additional equity grants from Employer or Valley National Bancorp. Notwithstanding each applicable award agreement, the parties agree that the vesting of eligible and outstanding equity and equity-based awards shall be as indicated on Exhibit B. For purposes of clarity, in accordance with the applicable award agreement, the 16,636 target shares granted under the 2020 award VLY16PSUM2 with a grant date of 11 February 2020 are forfeited as of the Separation Date, and Employee is not eligible for any special performance payout thereunder. All applicable withholding, authorized deductions and other taxes and legal requirements shall be withheld at the time of each vesting.

(c)Insurance Premiums Supplement. A supplemental payment equivalent to twenty-four (24) months of Employer’s contribution towards health and dental insurance premiums for Employee’s coverage in place as of the Agreement Date, to be paid in a lump sum (less applicable withholding and other taxes) with the next payroll scheduled no less than eight (8) days after Employee meets the Conditions.

(d)Special Discretionary Payment. A supplemental payment of thirty-seven thousand dollars ($37,000), to be paid in a lump sum (less applicable withholding and other taxes) with the next payroll scheduled no less than eight (8) days after Employee meets the Conditions.

10.If Employee chooses not to sign this Agreement or the Additional Release, or if Employee timely revokes a valid execution of this Agreement or the Additional Release, then Employee shall not be entitled to the Severance Benefits.

PART II – COVENANTS

1.Employee agrees that all customers and accounts of Employer and its affiliates, including those originated or covered by Employee during Employee’s employment, are Employer’s customers. As such, all Confidential Information (as defined below) relating to such customers and/or accounts is proprietary business information belonging to Employer and its affiliates. Through the Separation Date and for the two (2)-year period thereafter (the “Restriction Period”), Employee agrees that Employee will not directly or indirectly solicit, divert, take away interfere with or otherwise deal in any way with customers, personnel, distributors or agents of Employer or its affiliates who are known to Employee as of the Agreement Date, including customers or accounts originated or covered by Employee during Employee’s employment. Employee represents that Employee does not have in Employee’s possession or control any Confidential Information or any materials, books, files, reports, records, correspondence, other documents or intangible property (or copies thereof in any form or medium) used or prepared by, or provided or made available to, Employee during the course of Employee’s employment by Employer. In the event that Employee has not returned any of the foregoing to Employer as of the Separation Date, Employee shall do so no later than three (3) business days after the Separation Date, or earlier as requested by Employer.

2.Employee acknowledges that during the course of Employees employment with Employer, Employee had access to certain confidential and proprietary information, including but not limited to customer and employee lists, marketing plans, financial information, personnel information such as birth dates, social security numbers, bank account information, health information, and dependent information, policies and procedures, applications, applicant lists, tax data, and information concerning law suits or potential law suits (collectively,

3

EXHIBIT 10.2

“Confidential Information”). Employee agrees to keep confidential and not to divulge any such Confidential Information to any other employee of Employer or its affiliates or to anyone outside of Employer, without the written consent of the Chief Executive Officer of Employer. Nothing in this Part II, Section 2 shall prohibit Employee from responding truthfully to a court or administrative agency order or as may be required in response to a governmental agency investigation. In the event that Employee receives legal process seeking disclosure of Confidential Information, Employee agrees to notify Employer of any such proceedings within five (5) business days of being noticed of such proceeding and refrain from disclosing any information in response to such process (if lawful to do so) until Employer has had an opportunity to contest such process or notifies Employee that it will not contest such process. Notice by Employee shall be given to Employer’s General Counsel, 1455 Valley Road, Wayne, New Jersey 07470 by either hand delivery or overnight delivery.

3.Employee understands that it shall not be a violation of this Agreement for Employee to make a disclosure of trade secrets in the following cases:

(a)where disclosure is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney solely for the purpose of reporting or investigating a suspected violation of law;

(b)where disclosure is made in a complaint or other document filed in a lawsuit or other proceeding, if such filing is made under seal; or

(c)where disclosure is made to Employee’s attorney who is representing Employee in a claim that Employer retaliated against Employee for reporting a suspected violation of law. Employee or Employee’s attorney may use the trade secret information in the court proceeding without violating this Agreement, only if any document containing the trade secret is filed under seal and Employee or Employee’s attorney does not disclose the trade secret, except pursuant to court order.

Notwithstanding any provisions of this Agreement (or any other agreement with or policy of Employer), nothing in this Agreement (or any other agreement with or policy of Employer) is intended to or shall prohibit Employee from initiating a claim or engaging in communications with, responding to any inquiry from, or otherwise providing information or documents to any federal or state regulatory or enforcement agency or authority regarding possible violations of federal or state laws or regulations, and in particular shall not prohibit claims or activities referenced under the whistleblower provisions of federal or state laws or regulations.

In addition, Employer hereby informs Employee that, notwithstanding any provision of this Agreement to the contrary, an individual may not be held criminally or civilly liable under any federal or state trade secret law for the disclosure of a trade secret that (x) is made in confidence to a federal, state, or local government official, either directly or indirectly, or to an attorney, and solely for the purpose of reporting or investigating a suspected violation of law, or (y) is made in a complaint or other document that is filed under seal in a lawsuit or other proceeding. Further, an individual who files a lawsuit for retaliation by an employer for reporting a suspected violation of law may disclose the employer’s trade secrets to the attorney and use the trade secret information in the court proceeding if the individual files any document containing the trade secret under seal and does not disclose the trade secret, except pursuant to court order.

4.As a continuing condition of receiving the payments and benefits described above, and for other good and valuable consideration, the receipt and sufficiency of which Employee hereby

4

EXHIBIT 10.2

acknowledges, after the Separation Date, Employee shall remain available to and shall cooperate with Employer with respect to any aspect of litigation, arbitration, investigation, audit, governmental proceedings or any other proceedings involving Employer in respect of periods during which Employee was employed by Employer or concerning matters in which Employee was involved, or of which Employee had knowledge, during such periods. Employee agrees to promptly inform Employer if Employee becomes aware of any lawsuits, arbitrations, administrative actions, claims or investigations involving such matters that may be filed against the Releasees (as defined below), or any of them. Employer agrees to reimburse Employee for reasonable out-of-pocket expenses associated with such cooperation, including travel expenses. If Employer requests Employee’s cooperation for more than five (5) hours in a calendar week, then Employer will compensate Employee for the excess time requested at the rate of $230 per hour (not including travel time). For purposes of clarity, such cooperation and notice obligations of Employee include but are not limited to any and all proceedings in the matter entitled AvalonBay Communities, Inc. v. Valley National Bank in the United States District Court for the District of New Jersey, and any successor or additional action related to the underlying assets and/or transactions.

5.Employee acknowledges that a violation by Employee of any of the covenants contained in this Part II would cause irreparable damage to Employer and its affiliates in an amount that would be material but not readily ascertainable, and that any remedy at law (including the payment of damages) would be inadequate. Accordingly, Employee agrees that, notwithstanding any provision of this Agreement to the contrary, in addition to any other damages Employer is able to show, in the event of any violation by Employee of any of the covenants contained in this Part II, Employer and its affiliates shall be entitled (without the necessity of showing economic loss or other actual damage), in addition to any other legal or equitable remedies it may have, to (a) cease payment of the Severance Benefits to the extent not previously paid or provided, (b) the prompt return by Employee of any portion of the Severance Benefits previously paid or provided and (c) injunctive relief (including temporary restraining orders, preliminary injunctions and permanent injunctions), without posting a bond, in any court of competent jurisdiction. The preceding sentence shall not be construed as a waiver of the rights that Employer and its affiliates may have for damages under this Agreement or otherwise, and all such rights shall be unrestricted. The Restriction Period shall be tolled during (and shall be deemed automatically extended by) any period during which Employee is in violation of the provisions of Part II, Section 1. In the event that a court of competent jurisdiction determines that any provision of this Part II is invalid or more restrictive than permitted under the governing law of such jurisdiction, then, only as to enforcement of this Part II within the jurisdiction of such court, such provision shall be interpreted and enforced as if it provided for the maximum restriction permitted under such governing law.

6.Employee acknowledges that Employer and its affiliates have expended and will continue to expend substantial amounts of time, money and effort to develop business strategies, employee, customer and other relationships and goodwill to build an effective organization. Employee acknowledges that Employer and its affiliates have a legitimate business interest in and right to protect its Confidential Information, goodwill and employee, customer and other relationships, and that Employer and its affiliates would be seriously damaged by the disclosure of Confidential Information and the loss or deterioration of its employee, customer and other relationships. Employee further acknowledges that Employer and its affiliates are entitled to protect and preserve the going concern value of Employer and its affiliates to the extent permitted by law. In light of the foregoing acknowledgments, Employee agrees that the covenants contained in this Agreement are reasonable and properly required for the adequate protection of the businesses and goodwill of Employer and its affiliates. Employee further acknowledges that, although Employee’s compliance with the covenants contained in this Agreement may prevent Employee from earning a livelihood in a business similar to the business of Employer and its affiliates, Employee’s experience and capabilities are such that

5

EXHIBIT 10.2

Employee has other opportunities to earn a livelihood and adequate means of support for Employee and Employee’s dependents. Accordingly, Employee agrees not to challenge or contest the reasonableness, validity or enforceability of any limitations on and obligations of Employee contained in this Agreement.

PART III – GENERAL RELEASE

1.As a condition of Employer’s willingness to enter into this Agreement and in consideration of the payments and benefits described above, and for other good and valuable consideration, the receipt and sufficiency of which Employee hereby acknowledges, Employee acknowledges full and complete satisfaction and irrevocably and unconditionally releases, remits, acquits and discharges Employer, its past and present parents, subsidiaries, affiliates, divisions, and their past and present agents, officers, directors, employees, attorneys, fiduciaries, shareholders, partners and each of its or their successors and assigns as well as any and all employee benefit plans maintained by them and the benefit plan administrators, committees, trustees and fiduciaries thereof (hereinafter referred to as “Releasees”) jointly, individually, and in their representative capacities from any and all claims, known or unknown, civil or criminal, vested or contingent, that Employee and Employee’s heirs, administrators, representatives, executors, successors or assigns have or may claim to have against Releasees through the date on which Employee signs this Agreement, and from any and all liability that Releasees have or may have to them, whether denominated claims, demands, causes of action, obligations, damages or liabilities arising from any and all bases, however denominated, to the date of this Agreement, including but not limited to any claims under any severance plans maintained by Employer, any claims of harassment (other than sexual harassment) or discrimination (for example, on the basis of age, sex, race, handicap, disability, or national origin) under any federal, state or local law, rule or regulation, including but not limited to: the Americans with Disabilities Act, as amended; COBRA; the Employee Retirement Income Security Act of 1974, as amended; the Age Discrimination in Employment Act, as amended; the Older Workers Benefit Protection Act; the Reconstruction Era Civil Rights Act, as amended; the Civil Rights Act of 1991; the Family and Medical Leave Act; the Equal Pay Act; the Fair Labor Standards Act; Title VII of the Civil Rights Act of 1964; the Sarbanes-Oxley Act of 2002; the Workers’ Adjustment and Retraining Notification Act; the Occupational Safety and Health Act; the Dodd-Frank Wall Street Reform and Consumer Protection Act; Whistleblower Protection Statutes, 10 U.S.C. §2409, 12 U.S.C. §1831j, 31 U.S.C. §5328, 41 U.S.C. §265; the Uniformed Services Employment and Reemployment Rights Act; the New Jersey Conscientious Employee Protection Act, NJ Stat Rev 34:19-1, et seq.; the New Jersey Workers Compensation Act, NJ Stat Rev 34:15-1, et seq.; the New Jersey Law Against Discrimination; the New Jersey Security and Financial Empowerment Act; the New Jersey Equal Pay Act; the New Jersey Wage and Hour Acts; the New Jersey Family Leave Act; New Jersey Sick Leave Act; the New Jersey Workers’ Compensation Act; the New Jersey Millville Dallas Airmotive Plant Loss Notification Act; any municipal sick leave laws; and waivable rights under the New Jersey Constitution, and/or any other federal, state or local statutes, laws, rules and regulations pertaining to employment, as well as any and all claims under state or federal contract or tort law including but not limited to breach of contract, breach of a covenant of good faith and fair dealing or for any benefit. Employee certifies that, as of the date Employee signs this Agreement, Employee has reported all accidents, injuries or illnesses relating to or arising from Employee’s employment with Employer, and that all wages due and owing have been paid.

Employee acknowledges that Employer’s obligations under this Agreement, including but not limited to the Severance Benefits are contingent upon Employee timely executing, delivering, and not revoking this Agreement and the Additional Release.

6

EXHIBIT 10.2

2.Employee further agrees that Employee has not initiated and will not initiate any complaint, lawsuit or charge against Releasees seeking or accepting any personal recovery, compensation or personal relief with respect to any matter arising out of Employee’s employment with or termination from Employer. Employee further agrees that Employee will not voluntarily participate in any action, charge, claim or complaint initiated or pursued by any individual, partnership, corporation or any other entity against Releasees, except as required by court order, subpoena, or other judicial or administrative process, and will not seek or accept any personal recovery, compensation or personal relief for participation in or cooperation with any party investigating or adverse to Valley in any such matter. Employee specifically waives the right to become, and promises not to become, a member of any class in any case in which any claim is asserted against Releasees involving any event that occurred prior to Employee’s Separation Date.

Notwithstanding the above, nothing in this Agreement (i) limits or is intended to limit any claims that may not lawfully be released, waived or discharged by Employee, including any claims that could be brought on Employee’s behalf by any federal or state regulatory or enforcement agency or authority or Employee’s rights to vested benefits under any Employer- sponsored benefit plan, or (ii) shall prohibit claims or activities referenced under the whistleblower provisions of federal or state laws or regulations.

PART IV – MISCELLANEOUS

1.Employee shall make no negative statements to vendors, customers, or potential customers or do anything that derogates or disparages Employer, its services, reputation, officers, directors, employees, financial status, operations, or that damages Employer in any business relationship with vendors, customers, or potential customers. Additionally, Employee will not publicly name or describe Employer in any written medium for the purpose of pecuniary gain, except in applications to prospective employers. These are material provisions of this Agreement.

2.Employee agrees not to divulge the terms of this Agreement to anyone except Employee’s attorney, accountant, financial advisor or spouse, except as required by law. To the extent that Employee does divulge the terms of this Agreement to their spouse, accountant, financial advisor or attorney, Employee will advise them that they must not divulge the terms of this Agreement.

3.The parties agree that this Agreement constitutes the entire understanding of the parties regarding the subject matter hereof, supersedes all prior oral and written agreements with respect thereto and cannot be modified except by a writing signed by both parties; provided, however, that any restrictive covenants set forth in this Agreement (including those concerning noncompetition, nonsolicitation and nondisclosure of confidential information) shall be in addition to those otherwise applicable to Employee. Employee further acknowledges that the only consideration for signing this Agreement is as set forth in this Agreement; that the consideration received for executing this Agreement is greater than that to which Employee is otherwise entitled; that no other promise or agreements of any kind have been made to Employee by any person or entity whatsoever to cause them to sign this Agreement; and that except as specifically set forth herein, Employee is not entitled to additional payments under any Employer agreement (including Employee’s Change in Control Agreement dated as of March 23, 2015 or Revised Change in Control Agreement to be effective January 1, 2023, of which each is of no further force and effect), policy or plan (except benefits vested as of the Separation Date). For purposes of this Agreement, the term “affiliate” means an entity controlled by, controlling or under common control with Employer and the term “including” shall mean “including, without limitation.”

7

EXHIBIT 10.2

4.It is the intent of the parties that (a) the Separation Date also shall be the date of Employee’s “separation from service” (within the meaning given to such term under Treasury Regulation Section 1.409A-1(h), or in subsequent IRS guidance under Section 409A of the Internal Revenue Code of 1986, and its implementing regulations, all as amended (“Section 409A”)); (b) this Agreement and all payments and benefits payable hereunder either shall be exempt from, or made in full compliance with, Section 409A; and (c) this Agreement shall be interpreted in accordance therewith, and modified accordingly if necessary. For purposes of the limitations on nonqualified deferred compensation under Section 409A, each installment or payment under this Agreement shall be treated as a separate payment of compensation. In each case where this Agreement provides for the payment of an amount that constitutes nonqualified deferred compensation under Section 409A to be made to Employee within a designated period (e.g., within thirty (30) days after the date of termination) and such period begins and ends in different calendar years, the payment of an amount shall not begin until the beginning of the second calendar year after the Separation Date. Notwithstanding anything else herein to the contrary, if any payment or benefit required hereunder cannot be provided or made at the time specified herein or pursuant to any specific terms provided herein, without incurring excise taxes or penalties under Section 409A, then such benefit or payment shall be provided at the earliest time thereafter when such excise taxes or penalties will not be imposed, or any such terms will be modified so that penalties will not be imposed.

Notwithstanding anything to the contrary in this Agreement, all reimbursements and in-kind benefits provided under this Agreement that are subject to Section 409A shall be made in accordance with the requirements of Section 409A, including, where applicable, the requirement that (w) any reimbursement is for expenses incurred during Employee’s lifetime (or during a shorter period of time specified in this Agreement); (x) the amount of expenses eligible for reimbursement, or in-kind benefits provided, during a calendar year may not affect the expenses eligible for reimbursement, or in-kind benefits to be provided, in any other calendar year; (y) the reimbursement of an eligible expense will be made no later than the last day of the calendar year following the year in which the expense is incurred; and (z) the right to reimbursement or in-kind benefits is not subject to liquidation or exchange for another benefit. Notwithstanding any other provision of this Agreement to the contrary, if Employee is considered a “specified employee” for purposes of Section 409A (as determined in accordance with the methodology established by Employer and its affiliates as in effect on the Separation Date), any payment that constitutes nonqualified deferred compensation within the meaning of Section 409A that is otherwise due to Employee under this Agreement during the six (6) month period immediately following Employee’s separation from service (as determined in accordance with Section 409A) on account of Employee’s separation from service shall be accumulated and paid to Employee on the first business day of the seventh month following Employee’s separation from service (the “Delayed Payment Date”), to the extent necessary to prevent the imposition of tax penalties on Employee under Section 409A of the Code. If Employee dies during the postponement period, the amounts and entitlements delayed on account of Section 409A shall be paid to the personal representative of Employee’s estate on the first to occur of the Delayed Payment Date or thirty (30) calendar days after the date of Employee’s death.

5.Employee acknowledges that Employee understands and is competent to execute this Agreement, which includes a general release of Employee’s important rights and known and unknown claims; that before signing this Agreement, Employee was given reasonable and ample time of twenty-one (21) days after the Agreement Date in which to review and consider it (the “Review Period”); and Employee was encouraged by Employer to consult with Employee’s advisors, including an attorney and a tax accountant of Employee’s own choosing prior to signing this Agreement, and in fact Employee did so; and, that Employee is entering into this Agreement voluntarily and of Employee’s own free will. If Employee chooses to voluntarily execute this Agreement prior to the expiration of the

8

EXHIBIT 10.2

Review Period, then Employee acknowledges that Employee waives any claim based upon not waiting the full Review Period. Employee further understands and acknowledges that for a period of seven (7) days following the signing of this Agreement by Employee, Employee may revoke this Agreement. To be valid, any such revocation must be in writing, signed by Employee and delivered to Employer’s Chief People Officer at 1455 Valley Road, Wayne, NJ 07470 by 5:00 p.m. on or before the seventh (7th) day after Employee signs this Agreement. Otherwise, this Agreement when fully executed becomes effective following the expiration of the revocation period without Employee’s delivery of a valid revocation.

6.Employee acknowledges that Employee fully understands the meaning and intent of this Agreement, negotiated its terms and enters into it freely, voluntarily and without duress or coercion.

7.By this Agreement, the parties do not admit misconduct or violation of any federal or state law or regulation or any Employer policy or procedure. Rather, they seek to amicably resolve their separation. Accordingly, this Agreement shall not be admissible in any proceeding as evidence of any admission by Employee or Employer, except that the Agreement may be introduced in any proceeding to enforce the Agreement.

8.Whenever possible, each provision of this Agreement shall be interpreted in such a manner as to be effective and valid under applicable law, but if any provision of this Agreement or the application thereof is prohibited or held invalid, such provision shall be ineffective only to the extent of such prohibition or invalidity, and the prohibition or invalidity shall not affect other provisions or applications and to this end the provisions of this Agreement are declared to be severable. However, if any portion of Part III is held to be illegal or unenforceable, Employee agrees to promptly execute a valid release in favor of Releasees.

9.This Agreement shall be construed under the applicable laws of the State of New Jersey, without regard to its conflict of laws principles, and shall not be interpreted strictly for or against any party. The parties hereby agree to submit to personal jurisdiction in New Jersey, and any dispute arising out of this Agreement shall be brought exclusively in either New Jersey State Court or the Federal District Court for the District of New Jersey.

(remainder of page intentionally left blank; signature page follows)

9

EXHIBIT 10.2

It is understood and agreed that this Agreement shall not be effective or enforceable against either party until the day after a period of seven (7) days following execution by Employee, and Employee may revoke this Agreement for any reason during this seven (7)- day period. It is further understood and agreed that no payments will be made to Employee hereunder if Employee revokes the Agreement during such revocation period.

VALLEY NATIONAL BANK

By:    _______________________________    Date:    ___________________

Yvonne Surowiec

Sr. EVP & Chief People Officer

By signing below, I acknowledge that I have carefully read this Agreement and understand and agree to all of its terms, including the waivers of rights and the full and final release of claims set forth above. I further acknowledge that I have voluntarily entered into this Agreement and agree to the separation of my employment effective on the Separation Date, that I have not relied upon any representation or statement, written or oral, other than those set forth in this Agreement, and that I have been advised that I can have this Agreement reviewed by my attorney. I acknowledge that I have been provided with twenty-one (21) days to consider this Agreement and seven (7) days to revoke my execution of this Agreement.

Agreed and accepted:

By:    _______________________________    Date:    ___________________

    Robert Bardusch

THIS IS A LEGAL AGREEMENT, RELEASE OF RIGHTS AND RELEASE OFKNOWN AND UNKNOWN CLAIMS AND COVENANT NOT TO SUE; READCAREFULLY BEFORE SIGNING.

[Signature Page to Separation Agreement and General Release]

10

EXHIBIT 10.2

Exhibit A

(Form of)

ADDITIONAL RELEASE OF CLAIMS

This Additional Release of Claims (this “Release”) is made as of 1 April 2022 (the “Release Agreement Date”) between Valley National Bank (“Employer”) and Robert Bardusch (“Employee”).

WHEREAS, Employer and Employee have entered into Separation Agreement and General Release (the “Agreement”), dated as of 16 February 2022, pursuant to which Employee is entitled to receive certain additional compensation upon and following the Separation Date (capitalized terms used but not defined in this Release have the meanings ascribed to them in the Agreement);

WHEREAS, Employee’s receipt of the additional compensation under the Agreement is conditioned upon Employee signing and not revoking this Release, which the parties acknowledge is mutually agreeable; and

WHEREAS, Employee’s employment with and services to Employer have been terminated as of the Separation Date.

NOW, THEREFORE, in consideration of the mutual promises and covenants contained herein, Employer and Employee, intending to be legally bound hereby, agree as follows:

1.Employee acknowledges full and complete satisfaction and irrevocably and unconditionally releases, remits, acquits and discharges Employer, its past and present parents, subsidiaries, affiliates, divisions, and their past and present agents, officers, directors, employees, attorneys, fiduciaries, shareholders, partners and each of its or their successors and assigns as well as any and all employee benefit plans maintained by them and the benefit plan administrators, committees, trustees and fiduciaries thereof (hereinafter referred to as “Releasees”) jointly, individually, and in their representative capacities from any and all claims, known or unknown, civil or criminal, vested or contingent, that Employee and Employee’s heirs, administrators, representatives, executors, successors or assigns have or may claim to have against Releasees through the date on which Employee signs this Release, and from any and all liability that Releasees have or may have to them, whether denominated claims, demands, causes of action, obligations, damages or liabilities arising from any and all bases, however denominated, to the date of this Release, including but not limited to any claims under any severance plans maintained by Employer, any claims of harassment (other than sexual harassment) or discrimination (for example, on the basis of age, sex, race, handicap, disability, or national origin) under any federal, state or local law, rule or regulation, including but not limited to: the Americans with Disabilities Act, as amended; COBRA; the Employee Retirement Income Security Act of 1974, as amended; the Age Discrimination in Employment Act, as amended; the Older Workers Benefit Protection Act; the Reconstruction Era Civil Rights Act, as amended; the Civil Rights Act of 1991; the Family and Medical Leave Act; the Equal Pay Act; the Fair Labor Standards Act; Title VII of the Civil Rights Act of 1964; the Sarbanes-Oxley Act of 2002; the Workers’ Adjustment and Retraining Notification Act; the Occupational Safety and Health Act; the Dodd-Frank Wall Street Reform and Consumer Protection Act; Whistleblower Protection Statutes, 10 U.S.C. §2409, 12 U.S.C. §1831j, 31 U.S.C. §5328, 41 U.S.C. §265; the Uniformed Services Employment and Reemployment Rights Act; the New

EXHIBIT 10.2

Jersey Conscientious Employee Protection Act, NJ Stat Rev 34:19-1, et seq.; the New Jersey Workers Compensation Act, NJ Stat Rev 34:15-1, et seq.; the New Jersey Law Against Discrimination; the New Jersey Security and Financial Empowerment Act; the New Jersey Equal Pay Act; the New Jersey Wage and Hour Acts; the New Jersey Family Leave Act; New Jersey Sick Leave Act; the New Jersey Workers’ Compensation Act; the New Jersey Millville Dallas Airmotive Plant Loss Notification Act; any municipal sick leave laws; and waivable rights under the New Jersey Constitution, and/or any other federal, state or local statutes, laws, rules and regulations pertaining to employment, as well as any and all claims under state or federal contract or tort law including but not limited to breach of contract, breach of a covenant of good faith and fair dealing or for any benefit. Employee certifies that, as of the date Employee signs this Release, Employee has reported all accidents, injuries or illnesses relating to or arising from Employee’s employment with Employer, and that all wages due and owing have been paid.

Employee acknowledges that Employer’s obligations under the Agreement, including but not limited to the Severance Benefits, are contingent upon Employee timely executing, delivering, and not revoking this Release.

2.Employee further agrees that Employee has not initiated and will not initiate any complaint, lawsuit or charge against Releasees seeking or accepting any personal recovery, compensation or personal relief with respect to any matter arising out of Employee’s employment with or termination from Employer. Employee further agrees that Employee will not voluntarily cooperate with or participate in any action, charge, claim or complaint initiated or pursued by any individual, partnership, corporation or any other entity against Releasees, except as required by court order, subpoena, or other judicial or administrative process, and will not seek or accept any personal recovery, compensation or personal relief for participation in or cooperation with any party investigating or adverse to Valley in any such matter. Employee specifically waives the right to become, and promises not to become, a member of any class in any case in which any claim is asserted against Releasees involving any event that occurred prior to Employee’s Separation Date.

3.Notwithstanding the above, nothing in this Release (a) limits or is intended to limit any claims which may not lawfully be released, waived or discharged by Employee, including any claims that could be brought on Employee’s behalf by any federal or state regulatory or enforcement agency or authority or Employee’s rights to vested benefits under any Employer-sponsored benefit plan, or (b) shall prohibit claims or activities referenced under the whistleblower provisions of federal or state laws or regulations.

4.Notwithstanding any provisions of this Release (or any other agreement with or policy of Employer), nothing in this Release (or any other agreement with or policy of Employer) is intended to or shall prohibit Employee from initiating a claim or engaging in communications with, responding to any inquiry from, or otherwise providing information or documents to any federal or state regulatory or enforcement agency or authority regarding possible violations of federal or state laws or regulations, and in particular shall not prohibit claims or activities referenced under the whistleblower provisions of federal or state laws or regulations.

5.Employee acknowledges that Employee understands and is competent to execute this Release, which includes a general release of Employee’s important rights and known and unknown claims; that before signing this Release, Employee was given reasonable and ample time of twenty-one (21) days in which to review and consider it (the “Release Review Period”); and Employee was encouraged by Employer to consult with Employee’s advisors, including an attorney of Employee’s own choosing prior to signing this Release. If Employee chooses to voluntarily execute this Release prior to the expiration of the Release Review Period, then Employee acknowledges that Employee waives any claim

EXHIBIT 10.2

based upon not waiting the full Release Review Period. Employee further understands and acknowledges that for a period of seven (7) days following the signing of this Agreement by Employee, Employee may revoke this Release. To be valid, any such revocation must be in writing, signed by Employee and delivered to Employer’s Chief People Officer at 1455 Valley Road, Wayne, NJ 07470 by 5:00 p.m. on or before the seventh (7th) day after Employee signs this Release. Otherwise, this Release when fully executed becomes effective following the expiration of the revocation period without Employee’s delivery of a valid revocation.

6.Employee acknowledges that Employee fully understands the meaning and intent of this Release and enters into it freely, voluntarily and without duress or coercion.

7.To the extent not preempted by Federal law, this Release shall be governed by and construed in accordance with the governing law set forth in the Agreement, without giving effect to conflicts of laws.

(remainder of page intentionally left blank; signature page follows)

EXHIBIT 10.2

It is understood and agreed that this Release shall not be effective or enforceable against either party until the day after a period of seven (7) days following execution by Employee, and Employee may revoke this Release for any reason during this seven (7)-day period. It is further understood and agreed that no payments will be made to Employee under the Release if Employee revokes the Release during such revocation period.

VALLEY NATIONAL BANK

By:    _______________________________    Date:    ___________________

Yvonne Surowiec

Sr. EVP & Chief People Officer

By signing below, I acknowledge that I have carefully read this Release and understand and agree to all of its terms, including the waivers of rights and the full and final release of claims set forth above. I further acknowledge that I have voluntarily entered into this Release and agree to the separation of my employment effective on the Separation Date, that I have not relied upon any representation or statement, written or oral, other than those set forth in this Release, and that I have been advised that I can have this Release reviewed by my attorney. I acknowledge that I have been provided with twenty-one (21) days to consider this Release and seven (7) days to revoke my execution of this Release.

Agreed and accepted:

By:    _______________________________    Date:    ___________________

    Robert Bardusch

THIS IS A LEGAL AGREEMENT, RELEASE OF RIGHTS AND RELEASE OFKNOWN AND UNKNOWN CLAIMS AND COVENANT NOT TO SUE; READCAREFULLY BEFORE SIGNING.

[Signature Page to Release]

EXHIBIT 10.2

Exhibit B

Eligible and Outstanding Equity Awards

Grant Date	Product ID	Award Type	Vesting Date	Shares Remaining to Vest (as of Separation Date)
2/11/2020	VLY16PSUP2	PSU	2/1/2023	24,954 *
2/11/2020	VLY16PSUP2	PSU	2/1/2023	18,484 *
2/11/2020	VLY16RSU1	RSU	2/1/2023	4,621
2/16/2021	VLY16PSUP2	PSU	2/1/2024	25,277 *
2/16/2021	VLY16PSUM2	PSU	2/1/2024	16,851 *
2/16/2021	VLY16RSU1	RSU	2/1/2023	4,681
2/16/2021	VLY16RSU1	RSU	2/1/2024	4,681

*    With respect to PSUs, share amounts are based on the target level of performance. Actual number of shares delivered will be calculated based on actual performance of the company against pre-established goals.

EX-31.1

EXHIBIT 31.1

CERTIFICATION

I, Ira Robbins, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Valley National Bancorp;

2.    Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2022

/s/ Ira Robbins

Ira Robbins

Chairman of the Board and
Chief Executive Officer

EX-31.2

EXHIBIT 31.2

I, Michael D. Hagedorn, certify that:

1.    I have reviewed this Quarterly Report on Form 10-Q of Valley National Bancorp;

2.     Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to state a material fact necessary to make the statements made, in light of the circumstances under which such statements were made, not misleading with respect to the period covered by this report;

3.    Based on my knowledge, the financial statements, and other financial information included in this report, fairly present in all material respects the financial condition, results of operations and cash flows of the registrant as of, and for, the periods presented in this report;

4.    The registrant’s other certifying officer(s) and I are responsible for establishing and maintaining disclosure controls and procedures (as defined in Exchange Act Rules 13a-15(e) and 15d-15(e)) and internal control over financial reporting (as defined in Exchange Act Rules 13a-15(f) and 15d-15(f)) for the registrant and have:

a)    Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to be designed under our supervision to ensure that material information relating to the registrant, including its consolidated subsidiaries, is made known to us by others within those entities, particularly during the period in which this report is being prepared;

b)    Designed such internal control over financial reporting or caused such internal control over financial reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability of financial reporting and the preparation of financial statements for external purposes in accordance with generally accepted accounting principles;

c)    Evaluated the effectiveness of the registrant’s disclosure controls and procedures and presented in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of the end of the period covered by this report based on such evaluation; and

d)    Disclosed in this report any change in the registrant’s internal control over financial reporting that occurred during the registrant’s most recent fiscal quarter (the registrant’s fourth fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to materially affect, the registrant’s internal control over financial reporting; and

5.    The registrant’s other certifying officer(s) and I have disclosed, based on our most recent evaluation of internal control over financial reporting, to the registrant’s auditors and the audit committee of the registrant’s board of directors (or persons performing the equivalent functions):

a)    All significant deficiencies and material weaknesses in the design or operation of internal control over financial reporting which are reasonably likely to adversely affect the registrant’s ability to record, process, summarize and report financial information; and

b)    Any fraud, whether or not material, that involves management or other employees who have a significant role in the registrant’s internal control over financial reporting.

Date: May 9, 2022

/s/ Michael D. Hagedorn

Michael D. Hagedorn

Senior Executive Vice President and
Chief Financial Officer

EX-32

EXHIBIT 32

CERTIFICATION OF CEO AND CFO PURSUANT TO

18 U.S.C. SECTION 1350,

AS ADOPTED PURSUANT TO

SECTION 906 OF THE SARBANES-OXLEY ACT OF 2002

In connection with the Quarterly Report on Form 10-Q of Valley National Bancorp (the “Company”) for the period ended March 31, 2022 as filed with the Securities and Exchange Commission on the date hereof (the “Report”), Ira Robbins, as Chief Executive Officer of the Company, and Michael D. Hagedorn, as Chief Financial Officer of the Company, each hereby certify, pursuant to 18 U.S.C. (section) 1350, as adopted pursuant to (section) 906 of the Sarbanes-Oxley Act of 2002, that, to the best of his knowledge:

(1) The Report fully complies with the requirements of section 13(a) or 15(d) of the Securities Exchange Act of 1934; and

(2) The information contained in the Report fairly presents, in all material respects, the financial condition and results of operations of the Company.

/s/ Ira Robbins

Ira Robbins

Chairman of the Board and
Chief Executive Officer

May 9, 2022

/s/ Michael D. Hagedorn

Michael D. Hagedorn

Senior Executive Vice President and
Chief Financial Officer

May 9, 2022

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Cover - shares	3 Months Ended
	Mar. 31, 2022	May 06, 2022
Entity Information [Line Items]
Document Type	10-Q
Document Quarterly Report	true
Document Period End Date	Mar. 31, 2022
Document Transition Report	false
Entity File Number	1-11277
Entity Registrant Name	Valley National Bancorp
Entity Incorporation, State or Country Code	NJ
Entity Tax Identification Number	22-2477875
Entity Address, Address Line One	One Penn Plaza
Entity Address, City or Town	New York,
Entity Address, State or Province	NY
Entity Address, Postal Zip Code	10119
City Area Code	973
Local Phone Number	305-8800
Entity Current Reporting Status	Yes
Entity Interactive Data Current	Yes
Entity Filer Category	Large Accelerated Filer
Entity Small Business	false
Entity Emerging Growth Company	false
Entity Shell Company	false
Entity Common Stock, Shares Outstanding		506,305,454
Amendment Flag	false
Document Fiscal Year Focus	2022
Document Period Period Focus	Q1
Entity Central Index Key	0000714310
Current Fiscal Year End Date	--12-31
Common Stock
Entity Information [Line Items]
Title of 12(b) Security	Common Stock, no par value
Trading Symbol	VLY
Security Exchange Name	NASDAQ
Non-Cumulative Perpetual Preferred Stock, Series A
Entity Information [Line Items]
Title of 12(b) Security	Non-Cumulative Perpetual Preferred Stock, Series A, no par value
Trading Symbol	VLYPP
Security Exchange Name	NASDAQ
Non-Cumulative Perpetual Preferred Stock, Series B
Entity Information [Line Items]
Title of 12(b) Security	Non-Cumulative Perpetual Preferred Stock, Series B, no par value
Trading Symbol	VLYPO
Security Exchange Name	NASDAQ

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Assets
Cash and due from banks	$ 424,035	$ 205,156
Interest bearing deposits with banks	306,885	1,844,764
Investment securities:
Equity securities	35,992	36,473
Trading debt securities	11,739	38,130
Available for sale debt securities	1,015,034	1,128,809
Held to maturity debt securities (net of allowance for credit losses of $1,222 at March 31, 2022 and $1,165 at December 31, 2021)	3,071,983	2,667,532
Total investment securities	4,134,748	3,870,944
Loans held for sale, at fair value	77,632	139,516
Loans	35,364,405	34,153,657
Less: Allowance for loan losses	(362,510)	(359,202)
Net loans	35,001,895	33,794,455
Premises and equipment, net	337,479	326,306
Lease right of use assets	258,512	259,117
Bank owned life insurance	566,440	566,770
Accrued interest receivable	102,667	96,882
Goodwill	1,468,354	1,459,008
Other intangible assets, net	74,884	70,386
Other assets	797,926	813,139
Total Assets	43,551,457	43,446,443
Deposits:
Non-interest bearing	11,947,001	11,675,748
Interest bearing:
Savings, NOW and money market	20,285,967	20,269,620
Time	3,414,368	3,687,044
Total deposits	35,647,336	35,632,412
Short-term borrowings	484,181	655,726
Long-term borrowings	1,409,142	1,423,676
Junior subordinated debentures issued to capital trusts	56,500	56,413
Lease liabilities	282,437	283,106
Accrued expenses and other liabilities	575,477	311,044
Total Liabilities	38,455,073	38,362,377
Shareholders’ Equity
Common stock (no par value, authorized 650,000,000 shares; issued 423,034,027 shares at March 31, 2022 and December 31, 2021)	148,482	148,482
Surplus	3,872,236	3,883,035
Retained earnings	945,225	883,645
Accumulated other comprehensive loss	(56,098)	(17,932)
Treasury stock, at cost (1,639,750 common shares at March 31, 2022 and 1,596,959 common shares at December 31, 2021)	(23,152)	(22,855)
Total Shareholders’ Equity	5,096,384	5,084,066
Total Liabilities and Shareholders’ Equity	43,551,457	43,446,443
Series A
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:	111,590	111,590
Series B
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:	$ 98,101	$ 98,101

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CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Allowance for credit losses, excluding accrued interest	$ 1,222	$ 1,165
Preferred stock, par value (usd per share)	$ 0	$ 0
Preferred stock, shares authorized (in shares)	50,000,000	50,000,000
Common stock, par value (usd per share)	$ 0	$ 0
Common stock, shares authorized (in shares)	650,000,000	650,000,000
Common stock, shares issued (in shares)	423,034,027	423,034,027
Treasury stock, shares (in shares)	1,639,750	1,596,959
Series A
Preferred stock, shares issued (in shares)	4,600,000	4,600,000
Series B
Preferred stock, shares issued (in shares)	4,000,000	4,000,000

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CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Interest Income
Interest and fees on loans	$ 317,365	$ 313,181
Interest and dividends on investment securities:
Taxable	18,439	13,166
Tax-exempt	2,517	3,356
Dividends	1,676	1,871
Interest on federal funds sold and other short-term investments	461	224
Total interest income	340,458	331,798
Interest on deposits:
Savings, NOW and money market	9,627	11,125
Time	2,831	11,093
Interest on short-term borrowings	806	1,758
Interest on long-term borrowings and junior subordinated debentures	9,525	15,155
Total interest expense	22,789	39,131
Net Interest Income	317,669	292,667
Provision (credit) for credit losses for held to maturity securities	57	(358)
Provision for credit losses for loans	3,500	9,014
Net Interest Income After Provision for Credit Losses	314,112	284,011
Non-Interest Income
Insurance commissions	1,859	1,558
(Losses) gains on securities transactions, net	(1,072)	101
Fees from loan servicing	2,781	2,899
Gains on sales of loans, net	986	3,513
Bank owned life insurance	2,046	2,331
Other	21,327	12,399
Total non-interest income	39,270	31,233
Non-Interest Expense
Salary and employee benefits expense	107,733	88,103
Net occupancy and equipment expense	36,806	32,259
FDIC insurance assessment	4,158	3,276
Amortization of other intangible assets	4,437	6,006
Professional and legal fees	14,749	6,272
Amortization of tax credit investments	2,896	2,744
Telecommunication expense	3,271	3,160
Other	23,290	18,393
Total non-interest expense	197,340	160,213
Income Before Income Taxes	156,042	155,031
Income tax expense	39,314	39,321
Net Income	116,728	115,710
Dividends on preferred stock	3,172	3,172
Net Income Available to Common Shareholders	$ 113,556	$ 112,538
Earnings Per Common Share:
Basic (usd per share)	$ 0.27	$ 0.28
Diluted (usd per share)	0.27	0.28
Cash Dividends Declared per Common Share (usd per share)	$ 0.11	$ 0.11
Weighted Average Number of Common Shares Outstanding:
Basic (in shares)	421,573,843	405,152,605
Diluted (in shares)	423,506,550	407,636,765
Trust and investment services
Non-Interest Income
Revenue from contracts with customer	$ 5,131	$ 3,329
Service charges on deposit accounts
Non-Interest Income
Revenue from contracts with customer	$ 6,212	$ 5,103

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CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Statement of Comprehensive Income [Abstract]
Net income	$ 116,728	$ 115,710
Unrealized gains and losses on available for sale securities
Net losses arising during the period	(38,892)	(10,436)
Less reclassification adjustment for net (gains) losses included in net income	(10)	44
Total	(38,902)	(10,392)
Unrealized gains and losses on derivatives (cash flow hedges)
Net gains on derivatives arising during the period	218	174
Less reclassification adjustment for net losses included in net income	386	651
Total	604	825
Defined benefit pension plan
Amortization of actuarial net loss	132	280
Other comprehensive (loss) income, net	(38,166)	(9,287)
Total comprehensive income	$ 78,562	$ 106,423

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) - USD ($) shares in Thousands, $ in Thousands	Total	Preferred Series A	Preferred Series B	Common Stock	Preferred Stock	Common Stock	Surplus	Retained Earnings	Retained Earnings Preferred Series A	Retained Earnings Preferred Series B	Retained Earnings Common Stock	Accumulated Other Comprehensive Loss	Treasury Stock
Beginning balance at Dec. 31, 2020	$ 4,592,120				$ 209,691	$ 141,746	$ 3,637,468	$ 611,158				$ (7,718)	$ (225)
Beginning balance (in shares) at Dec. 31, 2020						403,859
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	115,710							115,710
Other comprehensive income (loss), net of tax	(9,287)											(9,287)
Cash dividends declared:
Cash dividends declared on preferred stock		$ (1,797)	$ (1,375)						$ (1,797)	$ (1,375)
Cash dividends declared on common stock				$ (45,281)							$ (45,281)
Effect of stock incentive plan, net (in shares)						1,939
Effect of stock incentive plan, net	9,580					$ 689	14,480	(5,764)					175
Ending balance at Mar. 31, 2021	4,659,670				209,691	$ 142,435	3,651,948	672,651				(17,005)	(50)
Ending balance (in shares) at Mar. 31, 2021						405,798
Beginning balance at Dec. 31, 2021	5,084,066				209,691	$ 148,482	3,883,035	883,645				(17,932)	(22,855)
Beginning balance (in shares) at Dec. 31, 2021						421,437
Increase (Decrease) in Stockholders' Equity [Roll Forward]
Net income	116,728							116,728
Other comprehensive income (loss), net of tax	(38,166)											(38,166)
Cash dividends declared:
Cash dividends declared on preferred stock		$ (1,797)	$ (1,375)						$ (1,797)	$ (1,375)
Cash dividends declared on common stock				$ (46,803)							$ (46,803)
Effect of stock incentive plan, net (in shares)						972
Effect of stock incentive plan, net	(2,752)						(10,799)	(5,173)					13,220
Purchase of treasury stock (in shares)						(1,015)
Purchase of treasury stock	(13,517)												(13,517)
Ending balance at Mar. 31, 2022	$ 5,096,384				$ 209,691	$ 148,482	$ 3,872,236	$ 945,225				$ (56,098)	$ (23,152)
Ending balance (in shares) at Mar. 31, 2022						421,394

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CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Common stock, cash dividends declared (usd per share)	$ 0.11	$ 0.11
Preferred Series A
Preferred stock, cash dividends declared (usd per share)	0.39	0.39
Preferred Series B
Preferred stock, cash dividends declared (usd per share)	0.34	0.34
Common Stock
Common stock, cash dividends declared (usd per share)	$ 0.11	$ 0.11

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CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Cash flows from operating activities:
Net income	$ 116,728	$ 115,710
Adjustments to reconcile net income to net cash provided by (used in) operating activities:
Depreciation and amortization	14,346	13,848
Stock-based compensation	7,263	5,465
Provision for credit losses	3,557	8,656
Net amortization of premiums and accretion of discounts on securities and borrowings	7,487	8,293
Amortization of other intangible assets	4,437	6,006
Losses (gains) on securities transactions, net	1,072	(101)
Proceeds from sales of loans held for sale	204,628	357,108
Gains on sales of loans, net	(986)	(3,513)
Originations of loans held for sale	(144,485)	(287,765)
Gains on sales of assets, net	64	196
Net change in:
Fair value of borrowings hedged by derivative transactions	(14,696)	0
Trading debt securities	26,391	0
Cash surrender value of bank owned life insurance	(2,046)	(2,331)
Accrued interest receivable	(5,785)	(1,560)
Other assets	12,999	204,948
Accrued expenses and other liabilities	265,029	(111,562)
Net cash provided by operating activities	496,003	313,398
Cash flows from investing activities:
Net loan originations and purchases	(1,210,754)	(475,142)
Equity securities:
Purchases	(662)	(1,878)
Sales	848	319
Held to maturity debt securities:
Purchases	(545,462)	(407,793)
Maturities, calls and principal repayments	136,024	184,163
Available for sale debt securities:
Purchases	(15,000)	0
Sales	0	41,134
Maturities, calls and principal repayments	73,008	164,235
Death benefit proceeds from bank owned life insurance	2,369	1,628
Proceeds from sales of real estate property and equipment	5,692	1,742
Purchases of real estate property and equipment	(22,749)	(8,042)
Cash paid in acquisition	(8,607)	0
Net cash used in investing activities	(1,585,293)	(499,634)
Cash flows from financing activities:
Net change in deposits	14,924	649,607
Net change in short-term borrowings	(171,545)	(63,292)
Repayments of long-term borrowings	0	(51,769)
Cash dividends paid to preferred shareholders	(3,172)	(3,172)
Cash dividends paid to common shareholders	(46,205)	(45,526)
Purchase of common shares to treasury	(23,627)	(542)
Common stock issued, net	95	5,723
Other, net	(180)	(165)
Net cash (used in) provided by financing activities	(229,710)	490,864
Net change in cash and cash equivalents	(1,319,000)	304,628
Cash and cash equivalents at beginning of year	2,049,920	1,329,205
Cash and cash equivalents at end of period	730,920	1,633,833
Supplemental disclosures of cash flow information:
Interest on deposits and borrowings	19,682	37,997
Federal and state income taxes	6,842	5,855
Supplemental schedule of non-cash investing activities:
Transfer of loans to other real estate owned	0	141
Lease right of use assets obtained in exchange for operating lease liabilities	6,836	21
Non-cash net assets acquired	$ 8,607	$ 0

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Basis of Presentation

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey corporation (Valley), include the accounts of its commercial bank subsidiary, Valley National Bank (the Bank), and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. Certain prior period amounts have been reclassified to conform to the current presentation.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at March 31, 2022 and for all periods presented have been made. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2021.

Significant Estimates. In preparing the unaudited consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, the evaluation of goodwill and other intangible assets for impairment, and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Actual results may differ from those estimates. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date.

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Business Combinations

3 Months Ended

Mar. 31, 2022

Business Combination and Asset Acquisition [Abstract]

Business Combinations

Business Combinations

Acquisitions

Landmark Insurance of the Palm Beaches. On February 1, 2022, the Bank's insurance agency subsidiary, Valley Insurance Services, acquired Landmark Insurance of the Palm Beaches Inc. (Landmark) agency. The purchase price included $8.6 million in cash and $1.0 million in contingent consideration. Goodwill and other intangible assets totaled $4.4 million and $6.2 million, respectively. The transaction was accounted for under the acquisition method of accounting and accordingly the results of Landmark's operations have been included in Valley's consolidated financial statements for the three months ended March 31, 2022 from the date of acquisition.

The Westchester Bank Holding Corporation. On December 1, 2021, Valley completed its acquisition of The Westchester Bank Holding Corporation (Westchester) and its principal subsidiary, The Westchester Bank which was headquartered in White Plains, New York. As of December 1, 2021, Westchester had approximately $1.4 billion in assets, $915.0 million in loans, and $1.2 billion in deposits, after purchase accounting adjustments, and a branch network of seven locations in Westchester County, New York. The common shareholders of Westchester

received 229.645 shares of Valley common stock for each Westchester share they owned prior to the merger. The total consideration for the merger was $211.1 million, consisting of approximately 15.7 million shares of Valley common stock.

During the first quarter 2022, Valley revised the estimated fair values of the acquired assets as of the acquisition date of Westchester based upon additional information obtained that existed as of December 1, 2021. The adjustments related to the fair value of deferred tax assets and resulted in a $5.0 million increase in goodwill (see Note 9 for more information). If additional information (that existed as of the acquisition date) becomes available, the fair value estimates for acquired assets and assumed liabilities are subject to change for up to one year after the acquisition date.

Recent Acquisition

Bank Leumi Le-Israel Corporation. On April 1, 2022, Valley completed its acquisition of Bank Leumi Le-Israel Corporation, the U.S. subsidiary of Bank Leumi Le-Israel B.M., and parent company of Bank Leumi USA, and collectively referred to as "Bank Leumi USA". Bank Leumi USA maintained its headquarters in New York City with commercial banking offices in Chicago, Los Angeles, Palo Alto, and Aventura, Florida. Valley issued approximately 85 million shares of common stock and paid $113.4 million in cash in the transaction. The common shareholders of Bank Leumi USA received 3.8025 shares of Valley common stock and $5.08 in cash for each Bank Leumi USA common share that they owned. Based on Valley’s closing stock price on March 31, 2022, the transaction was valued at an estimated $1.2 billion, inclusive of the value of options. As a result of the acquisition, Bank Leumi Le-Israel B.M. owned approximately 14 percent of Valley's common stock as of April 1, 2022. As of March 31, 2022, Bank Leumi had approximately $8.3 billion in assets, $6.1 billion of loans and $7.1 billion of deposits. The acquisition supplements Valley’s commercial banking expertise and provides new business capabilities in the technology banking and private banking areas. In addition, the acquisition further diversifies our loan portfolio from a geographic perspective by allowing Valley to enter new markets.

Merger expenses related to the completed and subsequent acquisition activity above totaled $4.4 million for the three months ended March 31, 2022. The merger expenses mainly consisted of salaries and benefits expense, professional and legal fees, and other expense within non-interest expense on the consolidated statements of income. Valley incurred no merger related expenses during the three months ended March 31, 2021.

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Earnings Per Common Share

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Earnings Per Common Share

Earnings Per Common Share

The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
	(in thousands, except for share data)
Net income available to common shareholders	$	113,556	$	112,538
Basic weighted average number of common shares outstanding	421,573,843		405,152,605
Plus: Common stock equivalents	1,932,707		2,484,160
Diluted weighted average number of common shares outstanding	423,506,550		407,636,765
Earnings per common share:
Basic	$	0.27	$	0.28
Diluted	0.27		0.28

Common stock equivalents represent the dilutive effect of additional common shares issuable upon the assumed vesting or exercise, if applicable, of restricted stock units and common stock options to purchase Valley’s common shares. Common stock options with exercise prices that exceed the average market price per share of Valley’s common stock during the periods presented may have an anti-dilutive effect on the diluted earnings per common

share calculation and therefore are excluded from the diluted earnings per share calculation along with restricted stock units. Potential anti-dilutive weighted common shares were immaterial for the three months ended March 31, 2022 and 2021.

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Accumulated Other Comprehensive Loss

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Accumulated Other Comprehensive Loss

Accumulated Other Comprehensive Loss

The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three months ended March 31, 2022: 

	Components of Accumulated Other Comprehensive Loss						Total Accumulated Other Comprehensive Loss
	Unrealized Gains and Losses on Available for Sale (AFS) Securities		Unrealized Gains and Losses on Derivatives		Defined Benefit Pension Plan
	(in thousands)
Balance at December 31, 2021	$	9,186	$	(1,332)	$	(25,786)	$	(17,932)
Other comprehensive (loss) gain before reclassification	(38,892)		218		—		(38,674)
Amounts reclassified from other comprehensive (loss) income	(10)		386		132		508
Other comprehensive (loss) income, net	(38,902)		604		132		(38,166)
Balance at March 31, 2022	$	(29,716)	$	(728)	$	(25,654)	$	(56,098)

The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2022 and 2021:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended March 31,
Components of Accumulated Other Comprehensive Loss	2022		2021		Income Statement Line Item
	(in thousands)
Unrealized gains (losses) on AFS securities before tax	$	14	$	(59)	(Losses) gains on securities transactions, net
Tax effect	(4)		15
Total net of tax	10		(44)
Unrealized losses on derivatives (cash flow hedges) before tax	(542)		(915)		Interest expense
Tax effect	156		264
Total net of tax	(386)		(651)
Defined benefit pension plan:
Amortization of actuarial net loss	(183)		(388)		*
Tax effect	51		108
Total net of tax	(132)		(280)
Total reclassifications, net of tax	$	(508)	$	(975)

* Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.

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New Authoritative Accounting Guidance

3 Months Ended

Mar. 31, 2022

Accounting Changes and Error Corrections [Abstract]

New Authoritative Accounting Guidance

New Authoritative Accounting Guidance

New Accounting Guidance Adopted in 2022

Accounting Standards Update (ASU) No. 2021-01 "Reference Rate Reform (Topic 848)" extends some of Accounting Standards Codification Topic 848’s optional expedients to derivative contracts impacted by the discounting transition, including for derivatives that do not reference LIBOR or other reference rates that are expected to be discontinued. ASU No. 2021-01 is effective for all entities immediately upon issuance and may be

elected retrospectively to eligible modifications as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications made on or after any date within the interim period including January 7, 2021 and it can be applied through December 31, 2022, similar to the other reference rate reform relief provided under Topic 848. ASU No. 2021-01 is not expected to have a significant impact on Valley’s consolidated financial statements.

ASU No. 2021-05 "Lessors – Certain Leases with Variable Lease Payments" updates guidance in ASC 842, Leases and requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if: (i) the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria; and (ii) the lessor would have recognized a selling loss at lease commencement. Valley adopted ASU No. 2021-05 on January 1, 2022, and the new guidance did not have a significant impact on Valley’s consolidated financial statements.

New Accounting Guidance Issued in 2022

ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging –Portfolio Layer Method” expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges. This method allows entities to designate multiple hedging relationships with a single closed portfolio, and therefore a larger portion of the interest rate risk associated with such a portfolio is eligible to be hedged. ASU No. 2022-01 also clarifies that no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge. ASU No. 2022-01 will be effective for Valley on January 1, 2023, and it is not expected to have a significant impact on Valley's consolidated financial statements.

ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the troubled debt restructuring (TDR) accounting model for creditors, such as Valley, that have adopted Topic 326, “Financial Instruments – Credit Losses.” ASU No. 2022-02 will require all loan modifications to be accounted for under the general loan modification guidance in Subtopic 310-20. On a prospective basis, entities will also be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage. However, gross recoveries will not be required. ASU No. 2022-02 will be effective for Valley on January 1, 2023, with early adoption permitted. Valley is currently evaluating the impact of ASU No. 2022-02 on its consolidated financial statements.

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Fair Value Measurement of Assets and Liabilities

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Fair Value Measurement of Assets and Liabilities

Fair Value Measurement of Assets and Liabilities

ASC Topic 820, “Fair Value Measurements” establishes a fair value hierarchy that prioritizes the inputs to valuation techniques used to measure fair value. The hierarchy gives the highest priority to unadjusted quoted prices in active markets for identical assets or liabilities (Level 1 measurements) and the lowest priority to unobservable inputs (Level 3 measurements). The three levels of the fair value hierarchy are described below:

•Level 1    - Unadjusted exchange quoted prices in active markets for identical assets or liabilities, or identical liabilities traded as assets that the reporting entity has the ability to access at the measurement date.

•Level 2 - Quoted prices in markets that are not active, or inputs that are observable either directly or indirectly (i.e., quoted prices on similar assets) for substantially the full term of the asset or liability.

•Level 3 - Prices or valuation techniques that require inputs that are both significant to the fair value measurement and unobservable (i.e., supported by little or no market activity).

Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021. The assets presented under “non-recurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). 

	March 31, 2022		Fair Value Measurements at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	30,528	$	19,009	$	—	$	—
Trading debt securities	11,739		—		11,739		—
Available for sale debt securities:
U.S. government agency securities	18,332		—		18,332		—
Obligations of states and political subdivisions	67,951		—		67,951		—
Residential mortgage-backed securities	795,554		—		795,554		—
Corporate and other debt securities	133,197		—		133,197		—
Total available for sale debt securities	1,015,034		—		1,015,034		—
Loans held for sale (2)	77,632		—		77,632		—
Other assets (3)	176,270		—		176,270		—
Total assets	$	1,311,203	$	19,009	$	1,280,675	$	—
Liabilities
Other liabilities (3)	$	189,682	$	—	$	189,682	$	—
Total liabilities	$	189,682	$	—	$	189,682	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,603	$	—	$	—	$	47,603
Foreclosed assets	1,176		—		—		1,176
Total	$	48,779	$	—	$	—	$	48,779

			Fair Value Measurements at Reporting Date Using:
	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	32,844	$	21,284	$	—	$	—
Trading debt securities	38,130		—		38,130		—
Available for sale debt securities:
U.S. government agency securities	20,925		—		20,925		—
Obligations of states and political subdivisions	79,890		—		79,890		—
Residential mortgage-backed securities	904,502		—		904,502		—
Corporate and other debt securities	123,492		—		123,492		—
Total available for sale debt securities	1,128,809		—		1,128,809		—
Loans held for sale (2)	139,516		—		139,516		—
Other assets (3)	181,500		—		181,500		—
Total assets	$	1,520,799	$	21,284	$	1,487,955	$	—
Liabilities
Other liabilities (3)	$	52,376	$	—	$	52,376	$	—
Total liabilities	$	52,376	$	—	$	52,376	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,871	$	—	$	—	$	47,871
Foreclosed assets	2,931		—		—		2,931
Total	$	50,802	$	—	$	—	$	50,802

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $11.5 million and $11.6 million at March 31, 2022 and December 31, 2021, respectively. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $79.1 million and $136.3 million at March 31, 2022 and December 31, 2021, respectively.

(3)Derivative financial instruments are included in this category.

Assets and Liabilities Measured at Fair Value on a Recurring Basis

The following valuation techniques were used for financial instruments measured at fair value on a recurring basis. All the valuation techniques described below apply to the unpaid principal balance, excluding any accrued interest or dividends at the measurement date. Interest income and expense are recorded within the consolidated statements of income depending on the nature of the instrument using the effective interest method based on acquired discount or premium.

Equity securities. The fair value of equity securities consists of a publicly traded mutual fund, Community Reinvestment Act (CRA) investment fund and an investment related to the development of new financial technologies that are carried at quoted prices in active markets. Valley also has privately held CRA funds measured at NAV, which are excluded from fair value hierarchy levels in the tables above.

Trading debt securities. The fair value of trading debt securities, consisting of municipal bonds, is reported at fair value utilizing Level 2 inputs. The prices for these investments are derived from market quotations and matrix pricing obtained through an independent pricing service. Management reviews the data and assumptions used in

pricing the securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data.

Available for sale debt securities. U.S. Treasury securities are reported at fair value utilizing Level 1 inputs. The majority of other investment securities are reported at fair value utilizing Level 2 inputs. The prices for these instruments are obtained through an independent pricing service or dealer market participants with whom Valley has historically transacted both purchases and sales of investment securities. Prices obtained from these sources include prices derived from market quotations and matrix pricing. The fair value measurements consider observable data that may include dealer quotes, market spreads, cash flows, the U.S. Treasury yield curve, live trading levels, trade execution data, market consensus prepayment speeds, credit information and the bond’s terms and conditions, among other things. Management reviews the data and assumptions used in pricing the securities by its third-party provider to ensure the highest level of significant inputs are derived from market observable data. In addition, Valley reviews the volume and level of activity for all available for sale debt securities and attempts to identify transactions which may not be orderly or reflective of a significant level of activity and volume.

Loans held for sale. Residential mortgage loans originated for sale are reported at fair value using Level 2 inputs. The fair values were calculated utilizing quoted prices for similar assets in active markets. The market prices represent a delivery price, which reflects the underlying price each institution would pay Valley for an immediate sale of an aggregate pool of mortgages. Non-performance risk did not materially impact the fair value of mortgage loans held for sale at March 31, 2022 and December 31, 2021 based on the short duration these assets were held, and the credit quality of these loans.

Derivatives. Derivatives are reported at fair value utilizing Level 2 inputs. The fair values of Valley’s derivatives are determined using third-party prices that are based on discounted cash flow analysis using observed market inputs, such as the LIBOR, Overnight Index Swap and Secured Overnight Financing Rate (SOFR) curves for all cleared derivatives. The fair value of mortgage banking derivatives, consisting of interest rate lock commitments to fund residential mortgage loans and forward commitments for the future delivery of such loans (including certain loans held for sale at March 31, 2022 and December 31, 2021), is determined based on the current market prices for similar instruments. The fair values of most of the derivatives incorporate credit valuation adjustments, which consider the impact of any credit enhancements to the contracts, to account for potential nonperformance risk of Valley and its counterparties. The credit valuation adjustments were not significant to the overall valuation of Valley’s derivatives at March 31, 2022 and December 31, 2021.

Assets and Liabilities Measured at Fair Value on a Non-recurring Basis

The following valuation techniques were used for certain non-financial assets measured at fair value on a non-recurring basis, including collateral dependent loans reported at the fair value of the underlying collateral and foreclosed assets, which are reported at fair value upon initial recognition or subsequent impairment as described below.

Collateral Dependent Loans. Collateral dependent loans are loans when foreclosure of the collateral is probable, or where the borrower is experiencing financial difficulty and substantially all of the repayment is expected from the collateral. Collateral dependent loans are reported at the fair value of the underlying collateral. Collateral values are estimated using Level 3 inputs, consisting of individual third-party appraisals that may be adjusted based on certain discounting criteria. Certain real estate appraisals may be discounted based on specific market data by location and property type. At March 31, 2022, collateral dependent loans were individually re-measured and reported at fair value through direct loan charge-offs to the allowance for loan losses based on the fair value of the underlying collateral. At March 31, 2022, collateral dependent loans with a total amortized cost of $114.4 million, including our taxi medallion loan portfolio, were reduced by specific allowance for loan losses allocations totaling $66.8 million to a reported total net carrying amount of $47.6 million.

Foreclosed assets. Certain foreclosed assets (consisting of other real estate owned and other repossessed assets included in other assets), upon initial recognition and transfer from loans, are re-measured and reported at fair value

using Level 3 inputs, consisting of a third-party appraisal less estimated cost to sell. When an asset is acquired, the excess of the loan balance over fair value, less estimated selling costs, is charged to the allowance for loan losses. If further declines in the estimated fair value of the asset occur, an asset is re-measured and reported at fair value through a write-down recorded in non-interest expense. There were no adjustments to the appraisals of foreclosed assets at March 31, 2022.

Other Fair Value Disclosures

ASC Topic 825, “Financial Instruments,” requires disclosure of the fair value of financial assets and financial liabilities, including those financial assets and financial liabilities that are not measured and reported at fair value on a recurring basis or non-recurring basis.

The fair value estimates presented in the following table were based on pertinent market data and relevant information on the financial instruments available as of the valuation date. These estimates do not reflect any premium or discount that could result from offering for sale at one time the entire portfolio of financial instruments. Because no market exists for a portion of the financial instruments, fair value estimates may be based on judgments regarding future expected loss experience, current economic conditions, risk characteristics of various financial instruments and other factors. These estimates are subjective in nature and involve uncertainties and matters of significant judgment and therefore cannot be determined with precision. Changes in assumptions could significantly affect the estimates.

Fair value estimates are based on existing balance sheet financial instruments without attempting to estimate the value of anticipated future business and the value of assets and liabilities that are not considered financial instruments. For instance, Valley has certain fee-generating business lines (e.g., its mortgage servicing operation, trust and investment management departments) that were not considered in these estimates since these activities are not financial instruments. In addition, the tax implications related to the realization of the unrealized gains and losses can have a significant effect on fair value estimates and have not been considered in any of the estimates.

The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021 were as follows: 

	Fair Value Hierarchy	March 31, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	424,035	$	424,035	$	205,156	$	205,156
Interest bearing deposits with banks	Level 1	306,885		306,885		1,844,764		1,844,764
Equity securities (1)	Level 3	5,464		5,464		3,629		3,629
Held to maturity debt securities:
U.S. Treasury securities	Level 1	67,401		68,932		67,558		71,661
U.S. government agency securities	Level 2	5,572		5,453		6,265		6,378
Obligations of states and political subdivisions	Level 2	319,160		318,021		337,962		344,164
Residential mortgage-backed securities	Level 2	2,594,295		2,440,498		2,166,142		2,152,301
Trust preferred securities	Level 2	37,027		31,733		37,020		31,916
Corporate and other debt securities	Level 2	49,750		49,214		53,750		54,185
Total held to maturity debt securities (2)		3,073,205		2,913,851		2,668,697		2,660,605
Net loans	Level 3	35,001,895		33,815,930		33,794,455		33,283,251
Accrued interest receivable	Level 1	102,667		102,667		96,882		96,882
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	195,536		195,536		206,450		206,450
Financial liabilities
Deposits without stated maturities	Level 1	32,232,968		32,232,968		31,945,368		31,945,368
Deposits with stated maturities	Level 2	3,414,368		3,365,608		3,687,044		3,670,113
Short-term borrowings	Level 1	484,181		478,300		655,726		637,490
Long-term borrowings	Level 2	1,409,142		1,336,303		1,423,676		1,404,184
Junior subordinated debentures issued to capital trusts	Level 2	56,500		39,578		56,413		46,306
Accrued interest payable (4)	Level 1	8,016		8,016		4,909		4,909

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.

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Investment Securities

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Investment Securities

Investment Securities

Equity Securities

Equity securities carried at fair value totaled $36.0 million and $36.5 million at March 31, 2022 and December 31, 2021, respectively. At March 31, 2022, Valley's equity securities consisted of one publicly traded mutual fund, CRA investments and to a lesser extent, equity investments related to the development of new financial technologies. Our CRA and other equity investments are a mixture of both publicly traded entities and privately held entities without readily determinable fair market values.

Trading Debt Securities

The fair value of trading debt securities, wholly consisting of municipal bonds, totaled $11.7 million and $38.1 million at March 31, 2022 and December 31, 2021, respectively. Net trading gains and losses were included in net

gains and losses on securities transactions within non-interest income. We recorded net trading losses of $1.1 million and net trading gains of $219 thousand for three months ended March 31, 2022 and 2021, respectively.

Available for Sale Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2022 and December 31, 2021 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2022
U.S. government agency securities	$	18,448	$	32	$	(148)	$	18,332
Obligations of states and political subdivisions:
Obligations of states and state agencies	25,274		22		(310)		24,986
Municipal bonds	47,270		66		(4,371)		42,965
Total obligations of states and political subdivisions	72,544		88		(4,681)		67,951
Residential mortgage-backed securities	829,222		971		(34,639)		795,554
Corporate and other debt securities	135,550		1,033		(3,386)		133,197
Total	$	1,055,764	$	2,124	$	(42,854)	$	1,015,034
December 31, 2021
U.S. government agency securities	$	20,323	$	608	$	(6)	$	20,925
Obligations of states and political subdivisions:
Obligations of states and state agencies	26,088		132		(93)		26,127
Municipal bonds	53,530		349		(116)		53,763
Total obligations of states and political subdivisions	79,618		481		(209)		79,890
Residential mortgage-backed securities	895,279		14,986		(5,763)		904,502
Corporate and other debt securities	120,871		3,177		(556)		123,492
Total	$	1,116,091	$	19,252	$	(6,534)	$	1,128,809

The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2022 and December 31, 2021 were as follows: 

	Less than Twelve Months				More than Twelve Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2022
U.S. government agency securities	$	13,880	$	(140)	$	1,292	$	(8)	$	15,172	$	(148)
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,153		(310)		—		—		10,153		(310)
Municipal bonds	31,523		(4,371)		—		—		31,523		(4,371)
Total obligations of states and political subdivisions	41,676		(4,681)		—		—		41,676		(4,681)
Residential mortgage-backed securities	688,282		(31,427)		39,143		(3,212)		727,425		(34,639)
Corporate and other debt securities	74,665		(3,386)		—		—		74,665		(3,386)
Total	$	818,503	$	(39,634)	$	40,435	$	(3,220)	$	858,938	$	(42,854)
December 31, 2021
U.S. government agency securities	$	—	$	—	$	1,326	$	(6)	$	1,326	$	(6)
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,549		(93)		—		—		10,549		(93)
Municipal bonds	19,100		(116)		—		—		19,100		(116)
Total obligations of states and political subdivisions	29,649		(209)		—		—		29,649		(209)
Residential mortgage-backed securities	371,256		(4,770)		25,960		(993)		397,216		(5,763)
Corporate and other debt securities	59,039		(556)		—		—		59,039		(556)
Total	$	459,944	$	(5,535)	$	27,286	$	(999)	$	487,230	$	(6,534)

Within the available for sale debt securities portfolio, the total number of security positions in an unrealized loss position was 404 and 139 at March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, the fair value of available for sale debt securities that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $488.5 million.

The contractual maturities of available for sale debt securities at March 31, 2022 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.

	March 31, 2022
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	11,305	$	11,303
Due after one year through five years	23,241		23,375
Due after five years through ten years	103,691		102,991
Due after ten years	88,305		81,811
Residential mortgage-backed securities	829,222		795,554
Total	$	1,055,764	$	1,015,034

Actual maturities of available for sale debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.

The weighted average remaining expected life for residential mortgage-backed securities available for sale was 5.0 years at March 31, 2022.

Impairment Analysis of Available For Sale Debt Securities

Valley's available for sale debt securities portfolio includes corporate bonds and revenue bonds, among other securities. These types of securities may pose a higher risk of future impairment charges by Valley as a result of the unpredictable nature of the U.S. economy and its potential negative effect on the future performance of the security issuers, including due to the economic effects of the COVID-19 pandemic.

Available for sale debt securities in unrealized loss positions are evaluated for impairment related to credit losses on a quarterly basis. Valley has evaluated available for sale debt securities that are in an unrealized loss position as of March 31, 2022 included in the table above and has determined that the declines in fair value are mainly attributable to market volatility, not credit quality or other factors. Based on a comparison of the present value of expected cash flows to the amortized cost, management recognized no impairment during the three months ended March 31, 2022 and 2021. There was no allowance for credit losses for available for sale debt securities at March 31, 2022 and December 31, 2021.

Held to Maturity Debt Securities

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2022 and December 31, 2021 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2022
U.S. Treasury securities	$	67,401	$	1,531	$	—	$	68,932
U.S. government agency securities	5,572		—		(119)		5,453
Obligations of states and political subdivisions:
Obligations of states and state agencies	132,017		648		(1,054)		131,611
Municipal bonds	187,143		871		(1,604)		186,410
Total obligations of states and political subdivisions	319,160		1,519		(2,658)		318,021
Residential mortgage-backed securities	2,594,295		1,993		(155,790)		2,440,498
Trust preferred securities	37,027		4		(5,298)		31,733
Corporate and other debt securities	49,750		181		(717)		49,214
Total	$	3,073,205	$	5,228	$	(164,582)	$	2,913,851
December 31, 2021
U.S. Treasury securities	$	67,558	$	4,103	$	—	$	71,661
U.S. government agency securities	6,265		113		—		6,378
Obligations of states and political subdivisions:
Obligations of states and state agencies	141,015		3,065		(312)		143,768
Municipal bonds	196,947		3,536		(87)		200,396
Total obligations of states and political subdivisions	337,962		6,601		(399)		344,164
Residential mortgage-backed securities	2,166,142		14,599		(28,440)		2,152,301
Trust preferred securities	37,020		5		(5,109)		31,916
Corporate and other debt securities	53,750		559		(124)		54,185
Total	$	2,668,697	$	25,980	$	(34,072)	$	2,660,605

The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2022 and December 31, 2021 were as follows: 

	Less than Twelve Months				More than Twelve Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2022
U.S. government agency securities	$	4,092	$	(119)	$	—	$	—	$	4,092	$	(119)
Obligations of states and political subdivisions:
Obligations of states and state agencies	38,979		(815)		5,317		(239)		44,296		(1,054)
Municipal bonds	25,255		(1,514)		1,305		(90)		26,560		(1,604)
Total obligations of states and political subdivisions	64,234		(2,329)		6,622		(329)		70,856		(2,658)
Residential mortgage-backed securities	1,786,943		(105,507)		533,425		(50,283)		2,320,368		(155,790)
Trust preferred securities	—		—		30,729		(5,298)		30,729		(5,298)
Corporate and other debt securities	37,783		(717)		—		—		37,783		(717)
Total	$	1,893,052	$	(108,672)	$	570,776	$	(55,910)	$	2,463,828	$	(164,582)
December 31, 2021
Obligations of states and political subdivisions:
Obligations of states and state agencies	$	17,000	$	(254)	$	5,517	$	(58)	$	22,517	$	(312)
Municipal bonds	9,403		(87)		—		—		9,403		(87)
Total obligations of states and political subdivisions	26,403		(341)		5,517		(58)		31,920		(399)
Residential mortgage-backed securities	1,381,405		(22,365)		206,520		(6,075)		1,587,925		(28,440)
Trust preferred securities	—		—		30,912		(5,109)		30,912		(5,109)
Corporate and other debt securities	32,627		(124)		—		—		32,627		(124)
Total	$	1,440,435	$	(22,830)	$	242,949	$	(11,242)	$	1,683,384	$	(34,072)

Within the held to maturity portfolio, the total number of security positions in an unrealized loss position was 303 and 108 at March 31, 2022 and December 31, 2021, respectively.

As of March 31, 2022, the fair value of debt securities held to maturity that were pledged to secure public deposits, repurchase agreements, lines of credit, and for other purposes required by law, was $909.7 million.

The contractual maturities of investments in debt securities held to maturity at March 31, 2022 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.  

	March 31, 2022
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	39,603	$	39,663
Due after one year through five years	215,490		217,668
Due after five years through ten years	46,097		45,919
Due after ten years	177,720		170,103
Residential mortgage-backed securities	2,594,295		2,440,498
Total	$	3,073,205	$	2,913,851

Actual maturities of held to maturity debt securities may differ from those presented above since certain obligations provide the issuer the right to call or prepay the obligation prior to scheduled maturity without penalty.

The weighted-average remaining expected life for residential mortgage-backed securities held to maturity was 7.9 years at March 31, 2022.

Credit Quality Indicators

Valley monitors the credit quality of the held to maturity debt securities through the use of the most current credit ratings from external rating agencies. The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2022 and December 31, 2021.

	AAA/AA/A Rated		BBB rated		Non-investment grade rated		Non-rated		Total
	(in thousands)
March 31, 2022
U.S. Treasury securities	$	67,401	$	—	$	—	$	—	$	67,401
U.S. government agency securities	5,572		—		—		—		5,572
Obligations of states and political subdivisions:
Obligations of states and state agencies	110,710		—		5,556		15,751		132,017
Municipal bonds	135,463		—		—		51,680		187,143
Total obligations of states and political subdivisions	246,173		—		5,556		67,431		319,160
Residential mortgage-backed securities	2,594,295		—		—		—		2,594,295
Trust preferred securities	—		—		—		37,027		37,027
Corporate and other debt securities	2,000		6,000		—		41,750		49,750
Total	$	2,915,441	$	6,000	$	5,556	$	146,208	$	3,073,205
December 31, 2021
U.S. Treasury securities	$	67,558	$	—	$	—	$	—	$	67,558
U.S. government agency securities	6,265		—		—		—		6,265
Obligations of states and political subdivisions:
Obligations of states and state agencies	118,368		—		5,576		17,071		141,015
Municipal bonds	148,854		—		—		48,093		196,947
Total obligations of states and political subdivisions	267,222		—		5,576		65,164		337,962
Residential mortgage-backed securities	2,166,142		—		—		—		2,166,142
Trust preferred securities	—		—		—		37,020		37,020
Corporate and other debt securities	2,000		6,000		—		45,750		53,750
Total	$	2,509,187	$	6,000	$	5,576	$	147,934	$	2,668,697

Obligations of states and political subdivisions include municipal bonds and revenue bonds issued by various municipal corporations. At March 31, 2022, most of the obligations of states and political subdivisions were rated investment grade and a large portion of the "non-rated" category included TEMS securities secured by Ginnie Mae securities. Trust preferred securities consist of non-rated single-issuer securities, issued by bank holding companies. Corporate bonds consist of debt primarily issued by banks.

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this

exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds called TEMS. At March 31, 2022, held to maturity debt securities were carried net of allowance for credit losses totaling $1.2 million and $1.2 million at March 31, 2022 and December 31, 2021, respectively. Valley recorded provision for credit losses of $57 thousand for the three months ended March 31, 2022 and a credit (negative) provision for credit losses of $358 thousand for the three months ended March 31, 2021.

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Loans and Allowance for Credit Losses for Loans

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Loans and Allowance for Credit Losses for Loans

Loans and Allowance for Credit Losses for Loans

The detail of the loan portfolio as of March 31, 2022 and December 31, 2021 was as follows: 

	March 31, 2022		December 31, 2021
	(in thousands)
Loans:
Commercial and industrial:
Commercial and industrial	$	5,587,781	$	5,411,601
Commercial and industrial PPP loans *	203,609		435,950
Total commercial and industrial loans	5,791,390		5,847,551
Commercial real estate:
Commercial real estate	19,763,202		18,935,486
Construction	2,174,542		1,854,580
Total commercial real estate loans	21,937,744		20,790,066
Residential mortgage	4,691,935		4,545,064
Consumer:
Home equity	393,538		400,779
Automobile	1,552,928		1,570,036
Other consumer	996,870		1,000,161
Total consumer loans	2,943,336		2,970,976
Total loans	$	35,364,405	$	34,153,657

*Represents SBA Paycheck Protection Program (PPP) loans, net of unearned fees totaling $5.9 million and $12.1 million at March 31, 2022 and December 31, 2021, respectively.

Total loans includes net unearned discounts and deferred loan fees of $62.0 million and $78.5 million at March 31, 2022 and December 31, 2021, 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 March 31, 2022 and December 31, 2021.

Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $87.6 million and $83.7 million at March 31, 2022 and December 31, 2021, respectively, and is presented within total accrued interest receivable on the consolidated statements of financial condition.

There were no sales of loans from the held for investment portfolio during the three months ended March 31, 2022 and 2021.

Credit Risk Management

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, 2021 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, 2022 and December 31, 2021:

	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, 2022
Commercial and industrial	$	6,723	$	14,461	$	9,261	$	96,631	$	127,076	$	5,664,314	$	5,791,390	$	8,341
Commercial real estate:
Commercial real estate	30,807		6,314		—		79,180		116,301		19,646,901		19,763,202		66,191
Construction	1,708		3,125		—		17,618		22,451		2,152,091		2,174,542		—
Total commercial real estate loans	32,515		9,439		—		96,798		138,752		21,798,992		21,937,744		66,191
Residential mortgage	9,266		2,560		1,746		33,275		46,847		4,645,088		4,691,935		19,227
Consumer loans:
Home equity	38		42		—		3,382		3,462		390,076		393,538		3
Automobile	4,687		458		4		273		5,422		1,547,506		1,552,928		—
Other consumer	1,137		54		396		99		1,686		995,184		996,870		—
Total consumer loans	5,862		554		400		3,754		10,570		2,932,766		2,943,336		3
Total	$	54,366	$	27,014	$	11,407	$	230,458	$	323,245	$	35,041,160	$	35,364,405	$	93,762

	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)
December 31, 2021
Commercial and industrial	$	6,717	$	7,870	$	1,273	$	99,918	$	115,778	$	5,731,773	$	5,847,551	$	9,066
Commercial real estate:
Commercial real estate	14,421		—		32		83,592		98,045		18,837,441		18,935,486		70,719
Construction	1,941		—		—		17,641		19,582		1,834,998		1,854,580		—
Total commercial real estate loans	16,362		—		32		101,233		117,627		20,672,439		20,790,066		70,719
Residential mortgage	10,999		3,314		677		35,207		50,197		4,494,867		4,545,064		20,401
Consumer loans:
Home equity	242		98		—		3,517		3,857		396,922		400,779		4
Automobile	6,391		656		271		240		7,558		1,562,478		1,570,036		—
Other consumer	178		266		518		101		1,063		999,098		1,000,161		—
Total consumer loans	6,811		1,020		789		3,858		12,478		2,958,498		2,970,976		4
Total	$	40,889	$	12,204	$	2,771	$	240,216	$	296,080	$	33,857,577	$	34,153,657	$	100,190

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, 2022 and December 31, 2021:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	337,060	$	1,224,531	$	705,495	$	414,559	$	327,590	$	443,359	$	2,094,405	$	208	$	5,547,207
Special Mention	197		4,469		716		3,087		13,566		9,848		97,834		11		129,728
Substandard	28		2,144		5,728		3,387		570		6,286		10,497		110		28,750
Doubtful	—		—		—		2,717		—		82,988		—		—		85,705
Total commercial and industrial	$	337,285	$	1,231,144	$	711,939	$	423,750	$	341,726	$	542,481	$	2,202,736	$	329	$	5,791,390
Commercial real estate
Risk Rating:
Pass	$	1,301,030	$	4,505,671	$	3,074,999	$	2,564,818	$	1,654,197	$	5,685,062	$	203,527	$	13,286	$	19,002,590
Special Mention	3,890		22,188		69,992		32,837		84,259		176,080		9,684		—		398,930
Substandard	—		10,193		39,207		36,344		42,625		224,972		8,160		—		361,501
Doubtful	—		—		—		—		—		181		—		—		181
Total commercial real estate	$	1,304,920	$	4,538,052	$	3,184,198	$	2,633,999	$	1,781,081	$	6,086,295	$	221,371	$	13,286	$	19,763,202
Construction
Risk Rating:
Pass	$	31,645	$	313,251	$	88,262	$	44,544	$	13,381	$	17,718	$	1,623,723	$	—	$	2,132,524
Special Mention	—		—		—		1,001		—		—		21,467		—		22,468
Substandard	—		—		—		1		—		17,841		1,708		—		19,550
Total construction	$	31,645	$	313,251	$	88,262	$	45,546	$	13,381	$	35,559	$	1,646,898	$	—	$	2,174,542

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 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	$	1,563,050	$	743,165	$	461,022	$	362,748	$	143,753	$	337,713	$	1,968,513	$	247	$	5,580,211
Special Mention	4,182		1,195		3,217		14,143		1,726		9,869		102,145		40		136,517
Substandard	8,248		4,823		3,139		7,077		910		408		19,642		109		44,356
Doubtful	—		—		2,733		—		16,355		67,379		—		—		86,467
Total commercial and industrial	$	1,575,480	$	749,183	$	470,111	$	383,968	$	162,744	$	415,369	$	2,090,300	$	396	$	5,847,551
Commercial real estate
Risk Rating:
Pass	$	4,517,917	$	2,983,140	$	2,702,580	$	1,734,922	$	1,474,770	$	4,557,011	$	195,851	$	13,380	$	18,179,571
Special Mention	7,700		50,019		46,911		44,187		65,623		143,540		50,168		—		408,148
Substandard	735		34,655		29,029		41,231		70,941		169,041		1,949		—		347,581
Doubtful	—		—		—		—		—		186		—		—		186
Total commercial real estate	$	4,526,352	$	3,067,814	$	2,778,520	$	1,820,340	$	1,611,334	$	4,869,778	$	247,968	$	13,380	$	18,935,486
Construction
Risk Rating:
Pass	$	274,097	$	98,609	$	48,555	$	32,781	$	6,061	$	28,419	$	1,313,555	$	—	$	1,802,077
Special Mention	4,131		—		1,009		—		—		—		18,449		—		23,589
Substandard	199		19		6		246		—		17,842		10,602		—		28,914
Total construction	$	278,427	$	98,628	$	49,570	$	33,027	$	6,061	$	46,261	$	1,342,606	$	—	$	1,854,580

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 March 31, 2022 and December 31, 2021.

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	394,913	$	1,487,234	$	603,092	$	563,634	$	345,807	$	1,220,733	$	69,458	$	—	$	4,684,871
90 days or more past due	—		—		542		1,663		4,094		765		—		—		7,064
Total residential mortgage	$	394,913	$	1,487,234	$	603,634	$	565,297	$	349,901	$	1,221,498	$	69,458	$	—	$	4,691,935
Consumer loans
Home equity
Performing	$	5,735	$	13,431	$	5,258	$	6,173	$	6,486	$	16,775	$	298,122	$	40,566	$	392,546
90 days or more past due	—		—		—		—		—		2		400		590		992
Total home equity	5,735		13,431		5,258		6,173		6,486		16,777		298,522		41,156		393,538
Automobile
Performing	142,530		678,425		279,849		245,235		134,274		71,935		—		—		1,552,248
90 days or more past due	—		134		103		154		159		130		—		—		680
Total automobile	142,530		678,559		279,952		245,389		134,433		72,065		—		—		1,552,928
Other consumer
Performing	7,033		4,215		6,368		6,419		6,836		9,527		956,468		—		996,866
90 days or more past due	—		—		—		—		—		—		4		—		4
Total other consumer	7,033		4,215		6,368		6,419		6,836		9,527		956,472		—		996,870
Total consumer	$	155,298	$	696,205	$	291,578	$	257,981	$	147,755	$	98,369	$	1,254,994	$	41,156	$	2,943,336

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 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	$	1,448,602	$	635,531	$	572,911	$	425,152	$	368,164	$	1,014,190	$	70,342	$	—	$	4,534,892
90 days or more past due	—		357		2,627		2,056		2,794		2,338		—		—		10,172
Total residential mortgage	$	1,448,602	$	635,888	$	575,538	$	427,208	$	370,958	$	1,016,528	$	70,342	$	—	$	4,545,064
Consumer loans
Home equity
Performing	$	13,847	$	5,723	$	6,994	$	7,384	$	5,359	$	13,597	$	303,888	$	42,822	$	399,614
90 days or more past due	—		—		—		—		—		35		536		594		1,165
Total home equity	13,847		5,723		6,994		7,384		5,359		13,632		304,424		43,416		400,779
Automobile
Performing	735,446		309,856		278,828		157,450		72,753		15,171		—		—		1,569,504
90 days or more past due	129		—		78		163		81		81		—		—		532
Total automobile	735,575		309,856		278,906		157,613		72,834		15,252		—		—		1,570,036
Other consumer
Performing	2,949		6,717		6,468		7,017		1,009		14,483		961,027		—		999,670
90 days or more past due	—		—		—		—		—		—		491		—		491
Total other consumer	2,949		6,717		6,468		7,017		1,009		14,483		961,518		—		1,000,161
Total consumer	$	752,371	$	322,296	$	292,368	$	172,014	$	79,202	$	43,367	$	1,265,942	$	43,416	$	2,970,976

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.

Performing TDRs (not reported as non-accrual loans) totaled $56.5 million and $71.3 million as of March 31, 2022 and December 31, 2021, respectively. Non-performing TDRs totaled $104.7 million and $117.2 million as of March 31, 2022 and December 31, 2021, respectively.

The following table presents the pre- and post-modification amortized cost of loans by loan class modified as TDRs during the three months ended March 31, 2022 and 2021. Post-modification amounts are presented as of March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022					2021
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	11	$	9,684	$	9,662	5	$	13,744	$	13,307
Commercial real estate	2	5,260		5,251		2	4,197		4,185
Residential mortgage	1	121		117		6	1,528		1,518
Consumer	—	—		—		1	170		168
Total	14	$	15,065	$	15,030	14	$	19,639	$	19,178

The total TDRs presented in the above table had allocated allowance for loan losses of $7.8 million and $3.4 million at March 31, 2022 and 2021, respectively. There were no charge-offs related to TDRs for the three months ended March 31, 2022. There were charge-offs of $5.1 million related to TDRs for the three months ended March 31, 2021. Valley did not extend any commitments to lend additional funds to borrowers whose loans have been modified as TDRs during the three months ended March 31, 2022 and 2021.

Loans modified as TDRs within the previous 12 months and for which there was a payment default (90 or more days past due) for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
	2022			2021
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	2	$	1,850	16	$	12,384
Construction	2	17,599		—	—
Residential mortgage	—	—		3	655
Total	4	$	19,449	19	$	13,039

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. As of March 31, 2022, Valley had $23.0 million of outstanding loans remaining in their payment deferral period under short-term modifications as compared to $27.9 million of loans in deferral at December 31, 2021. Under the applicable accounting and regulatory guidance, none of these loans were classified as TDRs at March 31, 2022 and December 31, 2021.

Loans in Process of Foreclosure. Other real estate owned (OREO) totaled $1.0 million and $2.3 million at March 31, 2022 and December 31, 2021, respectively. There were no foreclosed residential real estate properties included in OREO at March 31, 2022 and at December 31, 2021. Residential mortgage and consumer loans secured by residential real estate properties for which formal foreclosure proceedings are in process totaled $2.8 million and $2.5 million at March 31, 2022 and December 31, 2021, 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.

The following table presents collateral dependent loans by class as of March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	93,389	$	95,335
Commercial real estate:
Commercial real estate	92,402		110,174
Construction	19,307		—
Total commercial real estate loans	111,709		110,174
Residential mortgage	25,704		35,745
Home equity	3		4
Total	$	230,805	$	241,258

*    Commercial and industrial loans are primarily collateralized by taxi medallions.

Allowance for Credit Losses for Loans

The following table summarizes the allowance for credit losses for loans at March 31, 2022 and December 31, 2021: 

	March 31, 2022		December 31, 2021
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	362,510	$	359,202
Allowance for unfunded credit commitments	16,742		16,500
Total allowance for credit losses for loans	$	379,252	$	375,702

The following table summarizes the provision for credit losses for loans for the periods indicated:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	3,258	$	8,692
Provision for unfunded credit commitments	242		322
Total provision for credit losses for loans	$	3,500	$	9,014

The following table details the activity in the allowance for loan losses by loan portfolio segment for the three months ended March 31, 2022 and 2021: 

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans charged-off	(1,571)		(173)		(26)		(825)		(2,595)
Charged-off loans recovered	824		107		457		1,257		2,645
Net (charge-offs) recoveries	(747)		(66)		431		432		50
(Credit) provision for loan losses	(1,140)		2,525		2,638		(765)		3,258
Ending balance	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510
Three Months Ended March 31, 2021
Allowance for losses:
Beginning balance	$	131,070	$	164,113	$	28,873	$	16,187	$	340,243
Loans charged-off	(7,142)		(382)		(138)		(1,138)		(8,800)
Charged-off loans recovered	1,589		69		157		930		2,745
Net (charge-offs) recoveries	(5,553)		(313)		19		(208)		(6,055)
Provision (credit) for loan losses	891		10,436		(1,720)		(915)		8,692
Ending balance	$	126,408	$	174,236	$	27,172	$	15,064	$	342,880

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, 2022 and December 31, 2021.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
March 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	62,500	$	6,303	$	641	$	179	$	69,623
Collectively evaluated for credit losses	38,703		213,646		27,548		12,990		292,887
Total	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510
Loans:
Individually evaluated for credit losses	$	103,534	$	128,583	$	34,696	$	1,553	$	268,366
Collectively evaluated for credit losses	5,687,856		21,809,161		4,657,239		2,941,783		35,096,039
Total	$	5,791,390	$	21,937,744	$	4,691,935	$	2,943,336	$	35,364,405
December 31, 2021
Allowance for loan losses:
Individually evaluated for credit losses	$	64,359	$	6,277	$	470	$	390	$	71,496
Collectively evaluated for credit losses	38,731		211,213		24,650		13,112		287,706
Total	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans:
Individually evaluated for credit losses	$	119,760	$	134,135	$	42,469	$	2,431	$	298,795
Collectively evaluated for credit losses	5,727,791		20,655,931		4,502,595		2,968,545		33,854,862
Total	$	5,847,551	$	20,790,066	$	4,545,064	$	2,970,976	$	34,153,657

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Goodwill and Other Intangible Assets

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Goodwill and Other Intangible Assets

Goodwill and Other Intangible Assets

The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were:

	Business Segment / Reporting Unit *
	Wealth Management		Consumer Lending		Commercial Lending		Investment Management		Total
	(in thousands)
Balance at December 31, 2021	$	34,315	$	308,248	$	896,015	$	220,430	$	1,459,008
Goodwill from business combinations	4,370		85		4,866		25		9,346
Balance at March 31, 2022	$	38,685	$	308,333	$	900,881	$	220,455	$	1,468,354

*    Valley’s Wealth Management Division is comprised of trust, asset management, insurance and tax credit advisory services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.

The goodwill from business combinations set forth in the above table during the three months ended March 31, 2022, related to the acquisition of Landmark by our insurance agency subsidiary and an adjustment to goodwill from the Westchester acquisition. The Landmark transaction resulted in $4.4 million of goodwill which was allocated entirely to the Wealth Management reporting unit. During the three months ended March 31, 2022, Valley recorded $5.0 million of additional goodwill reflecting an adjustment to the deferred tax assets acquired from Westchester as of the acquisition date. See Note 2 for details related to these acquisitions.

There was no impairment of goodwill recognized during the three months ended March 31, 2022 and 2021.

The following table summarizes other intangible assets as of March 31, 2022 and December 31, 2021: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2022
Loan servicing rights	$	117,363	$	(92,133)	$	25,230
Core deposits	109,290		(68,373)		40,917
Other	12,299		(3,562)		8,737
Total other intangible assets	$	238,952	$	(164,068)	$	74,884
December 31, 2021
Loan servicing rights	$	114,636	$	(90,951)	$	23,685
Core deposits	109,290		(65,488)		43,802
Other	6,092		(3,193)		2,899
Total other intangible assets	$	230,018	$	(159,632)	$	70,386

Loan servicing rights are accounted for using the amortization method. Under this method, Valley amortizes the loan servicing assets over the period of the economic life of the assets arising from estimated net servicing revenues. On a quarterly basis, Valley stratifies its loan servicing assets into groupings based on risk characteristics and assesses each group for impairment based on fair value. Impairment charges on loan servicing rights are recognized in earnings when the book value of a stratified group of loan servicing rights exceeds its estimated fair value.

There was no net impairment recognized during the three months ended March 31, 2022. Valley recorded net recoveries of impairment charges on its loan servicing rights totaling $791 thousand for the three months ended March 31, 2021.

Core deposits are amortized using an accelerated method and have a weighted average amortization period of 9.2 years. The line item labeled “Other” included in the table above primarily consists of certain financial asset

servicing contracts, customer lists and covenants not to compete, which are amortized over their expected lives generally using a straight-line method and have a weighted average amortization period of approximately 4.8 years.

Valley recorded $6.2 million of other intangible assets during the three months ended March 31, 2022 resulting from the Landmark acquisition. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three months ended March 31, 2022 and 2021.

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2022 through 2026: 

	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2022	$	2,660	$	8,516	$	1,372
2023	3,146		9,510		1,600
2024	2,733		7,740		1,401
2025	2,368		5,970		1,202
2026	2,039		4,225		998

Valley recognized amortization expense on other intangible assets totaling approximately $4.4 million and $6.0 million (including net recoveries of impairment charges on loan servicing rights) for the three months ended March 31, 2022 and 2021, respectively.

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Stock-Based Compensation

3 Months Ended

Mar. 31, 2022

Share-based Payment Arrangement [Abstract]

Stock-Based Compensation

Stock–Based Compensation

On April 19, 2021, Valley's shareholders approved the Valley National Bancorp 2021 Incentive Compensation Plan (the 2021 Plan) administered by the Compensation and Human Capital Management Committee (the Committee) as appointed by Valley's Board of Directors. The purposes of the 2021 Plan are to provide additional incentives to officers and key employees of Valley and its subsidiaries, whose substantial contributions are essential to the continued growth and success of Valley, and to attract and retain officers, other employees and non-employee directors whose efforts will result in the continued and long-term growth of Valley's business.

As of March 31, 2022, 6.1 million shares of common stock were available for issuance under the 2021 Plan. The essential features of each award are described in the award agreement relating to that award. The grant, exercise, vesting, settlement or payment of an award may be based upon the fair value of Valley's common stock on the last sale price reported for Valley's common stock on such date or the last sale price reported preceding such date, except for performance-based awards with a market condition. The grant date fair values of performance-based awards that vest based on a market condition are determined by a third-party specialist using a Monte Carlo valuation model.

Valley granted 1.2 million and 1.1 million of time-based restricted stock units (RSUs) during the three months ended March 31, 2022 and 2021, respectively. Generally, time-based RSUs vest ratably over a three-year period. The average grant date fair value of the RSUs granted during the three months ended March 31, 2022 and 2021 was $14.05 per share and $11.75 per share, respectively.

Valley granted 567 thousand and 604 thousand of performance-based RSUs to certain officers for the three months ended March 31, 2022 and 2021, respectively. The performance-based RSU awards include RSUs with vesting conditions based upon certain levels of growth in Valley's tangible book value per share plus dividends and RSUs with vesting conditions based upon Valley's total shareholder return as compared to its peer group. The RSUs “cliff” vest after three years based on the cumulative performance of Valley during that time period. The RSUs earn dividend equivalents (equal to cash dividends paid on Valley's common stock) over the applicable performance period. Dividend equivalents are accumulated and paid to the grantee at the vesting date or forfeited if the performance conditions are not met. The grant date fair value of the performance-based RSUs granted during the three months ended March 31, 2022 and 2021 was $14.82 per share and $12.36 per share, respectively.

Valley recorded total stock-based compensation expense of $7.3 million and $5.5 million for the three months ended March 31, 2022 and 2021, respectively. The fair values of stock awards are expensed over the shorter of the vesting or required service period. As of March 31, 2022, the unrecognized amortization expense for all stock-based employee compensation totaled approximately $38.4 million and will be recognized over an average remaining vesting period of approximately 2.21 years.

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Derivative Instruments and Hedging Activities

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Derivative Instruments and Hedging Activities

Derivative Instruments and Hedging Activities

Valley enters into derivative financial instruments to manage exposures that arise from business activities that result in the payment of future known and uncertain cash amounts, the value of which are determined by interest rates.

Fair Value Hedges of Fixed Rate Assets and Liabilities. Valley is exposed to changes in the fair value of fixed-rate subordinated debt due to changes in interest rates. From time to time, Valley uses interest rate swaps to manage its exposure to changes in fair value on these instruments attributable to changes in the designated benchmark interest rate. Interest rate swaps designated as fair value hedges involve the receipt of variable rate payments from a counterparty in exchange for Valley making fixed rate payments over the life of the agreements without the exchange of the underlying notional amount. For derivatives that are designated and qualify as fair value hedges, the gain or loss on the derivative as well as the loss or gain on the hedged item attributable to the hedged risk are recognized in earnings.

Cash Flow Hedges of Interest Rate Risk. Valley’s objectives in using interest rate derivatives are to add stability to interest expense and to manage its exposure to interest rate movements. To accomplish this objective, Valley uses interest rate swaps as part of its interest rate risk management strategy. Interest rate swaps designated as cash flow hedges involve the payment of either fixed or variable-rate amounts in exchange for the receipt of variable or fixed-rate amounts from a counterparty, respectively.

Valley had five interest rate swaps with a total notional amount of $500 million mature during the three months ended March 31, 2022. These swaps were used to hedge the changes in cash flows associated with certain short-term Federal Home Loan Bank of New York (FHLB) advances.

Non-designated Hedges. Derivatives not designated as hedges may be used to manage Valley’s exposure to interest rate movements or to provide service to customers but do not meet the requirements for hedge accounting under U.S. GAAP. Derivatives not designated as hedges are not entered into for speculative purposes.

Valley executes interest rate swaps with commercial lending customers to facilitate their respective risk management strategies. These interest rate swaps with customers are simultaneously offset by interest rate swaps that Valley executes with a third party, such that Valley minimizes its net risk exposure resulting from such transactions. As these interest rate swaps do not meet the strict hedge accounting requirements, changes in the fair value of both the customer swaps and the offsetting swaps are recognized directly in earnings.

Valley sometimes enters into risk participation agreements with external lenders where the banks are sharing their risk of default on the interest rate swaps on participated loans. Valley either pays or receives a fee depending on the participation type. Risk participation agreements are credit derivatives not designated as hedges. Credit derivatives are not speculative and are not used to manage interest rate risk in assets or liabilities. Changes in the fair value in credit derivatives are recognized directly in earnings. At March 31, 2022, Valley had 25 credit swaps with an aggregate notional amount of $245.6 million related to risk participation agreements. 

At March 31, 2022, Valley had two “steepener” swaps, each with a current notional amount of $10.4 million where the receive rate on the swap mirrors the pay rate on the brokered deposits and the rates paid on these types of hybrid instruments are based on a formula derived from the spread between the long and short ends of the constant maturity swap (CMS) rate curve. Although these types of instruments do not meet the hedge accounting requirements, the change in fair value of both the bifurcated derivative and the stand alone swap tend to move in opposite directions with changes in the three-month LIBOR rate and therefore provide an effective economic hedge.

Valley regularly enters into mortgage banking derivatives which are non-designated hedges. These derivatives include interest rate lock commitments provided to customers to fund certain residential mortgage loans to be sold into the secondary market and forward commitments for the future delivery of such loans. Valley enters into forward commitments for the future delivery of residential mortgage loans when interest rate lock commitments are entered into in order to economically hedge the effect of future changes in interest rate on Valley's commitments to fund the loans as well as on its portfolio of mortgage loans held for sale.

Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: 

	March 31, 2022						December 31, 2021
	Fair Value						Fair Value
	Other Assets		Other Liabilities		Notional Amount		Other Assets		Other Liabilities		Notional Amount
	(in thousands)
Derivatives designated as hedging instruments:
Cash flow hedge interest rate swaps	$	590	$	—	$	200,000	$	—	$	310	$	700,000
Fair value hedge interest rate swaps	—		16,634		300,000		—		3,335		300,000
Total derivatives designated as hedging instruments	$	590	$	16,634	$	500,000	$	—	$	3,645	$	1,000,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*	$	172,393	$	171,610	$	11,264,601	$	181,012	$	47,277	$	10,301,460
Mortgage banking derivatives	3,287		1,438		181,017		488		1,454		312,428
Total derivatives not designated as hedging instruments	$	175,680	$	173,048	$	11,445,618	$	181,500	$	48,731	$	10,613,888

*    Other derivatives include risk participation agreements.

The Chicago Mercantile Exchange and London Clearing House variation margins are classified as a single-unit of account as settlements of the cash flow hedges and other non-designated derivative instruments. As a result, the fair value of the applicable derivative assets and liabilities are reported net of variation margin at March 31, 2022 and December 31, 2021 in the table above.

Gains (losses) included in the consolidated statements of income and other comprehensive income (loss), on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(542)	$	(915)
Amount of gain recognized in other comprehensive income (loss)	320		177

The accumulated net after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $728 thousand and $1.3 million at March 31, 2022 and December 31, 2021, respectively.

Amounts reported in accumulated other comprehensive loss related to cash flow interest rate derivatives are reclassified to interest expense as interest payments are made on the hedged variable interest rate liabilities. Valley estimates that $485 thousand will be reclassified as an increase to interest expense over the next 12 months.

Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 

	Three Months Ended March 31,
	2022	2021
	(in thousands)
Derivative - interest rate swap:
Interest expense	530	—
Hedged item - subordinated debt
Interest expense	(530)	—

The changes in the fair value of the hedged item designated as a qualifying hedge are captured as an

adjustment to the carrying amount of the hedged item (basis adjustment). The following table presents the hedged item related to interest rate derivatives designated as fair value hedges and the cumulative basis fair value adjustment included in the net carrying amount of the hedged item at March 31, 2022.

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
	(in thousands)
Long-term borrowings	$	282,443	$	(17,557)

The net gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$	(2,797)	$	(1,785)

Other non-interest income included fee income related to non-designated hedge derivative interest rate swaps (not designated as hedging instruments) executed with commercial loan customers totaling $14.0 million and $6.2 million for the three months ended March 31, 2022 and 2021, respectively.

Credit Risk Related Contingent Features. By using derivatives, Valley is exposed to credit risk if counterparties to the derivative contracts do not perform as expected. Management attempts to minimize counterparty credit risk through credit approvals, limits, monitoring procedures and obtaining collateral where appropriate. Credit risk exposure associated with derivative contracts is managed at Valley in conjunction with Valley’s consolidated counterparty risk management process. Valley’s counterparties and the risk limits monitored by management are periodically reviewed and approved by the Board of Directors.

Valley has agreements with its derivative counterparties providing that if Valley defaults on any of its indebtedness, including default where repayment of the indebtedness has not been accelerated by the lender, then Valley could also be declared in default on its derivative counterparty agreements. Additionally, Valley has an agreement with several of its derivative counterparties that contains provisions that require Valley’s debt to maintain an investment grade credit rating from each of the major credit rating agencies from which it receives a credit rating. If Valley’s credit rating is reduced below investment grade, or such rating is withdrawn or suspended, then the counterparty could terminate the derivative positions and Valley would be required to settle its obligations under the agreements. As of March 31, 2022, Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of March 31, 2022, there were no derivatives in an aggregate net liability position. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for certain counterparties.

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Balance Sheet Offsetting

3 Months Ended

Mar. 31, 2022

Offsetting [Abstract]

Balance Sheet Offsetting

Balance Sheet Offsetting

Certain financial instruments, including certain over-the-counter (OTC) derivatives (mostly interest rate swaps) and repurchase agreements (accounted for as secured long-term borrowings), may be eligible for offset in the consolidated statements of financial condition and/or subject to master netting arrangements or similar agreements. OTC derivatives include interest rate swaps executed and settled bilaterally with counterparties without the use of an organized exchange or central clearing house (presented in the table below). The credit risk associated with bilateral OTC derivatives is managed through obtaining collateral and enforceable master netting agreements.

Valley is party to master netting arrangements with its financial institution counterparties; however, Valley does not offset assets and liabilities under these arrangements for financial statement presentation purposes. The master netting arrangements provide for a single net settlement of all swap agreements, as well as collateral, in the event of default on, or termination of, any one contract. Collateral, usually in the form of cash or marketable investment securities, is posted by the counterparty with net liability positions in accordance with contract thresholds. Master repurchase agreements which include “right of set-off” provisions generally have a legally enforceable right to offset recognized amounts. In such cases, the collateral would be used to settle the fair value of the swap or repurchase agreement should Valley be in default. The total amount of collateral held or pledged cannot exceed the net derivative fair values with the counterparty.

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2022 and December 31, 2021.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2022
Assets
Interest rate swaps	$	172,983	$	—	$	172,983	$	12,555	$	117,289	$	43,139
Liabilities
Interest rate swaps	$	188,244	$	—	$	188,244	$	(12,555)	$	(2,323)	$	173,366
December 31, 2021
Assets
Interest rate swaps	$	181,012	$	—	$	181,012	$	—	$	—	$	181,012
Liabilities
Interest rate swaps	$	50,922	$	—	$	50,922	$	—	$	(44,231)	$	6,691

*    Cash collateral received (pledged) to our counterparties in relation to market value exposures of OTC derivative contacts in a liability position.

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Tax Credit Investments

3 Months Ended

Mar. 31, 2022

Income Tax Disclosure [Abstract]

Tax Credit Investments

Tax Credit Investments

Valley’s tax credit investments are primarily related to investments promoting qualified affordable housing projects, and other investments related to community development and renewable energy sources. Some of these tax-advantaged investments support Valley’s regulatory compliance with the CRA. Valley’s investments in these entities generate a return primarily through the realization of federal income tax credits, and other tax benefits, such as tax deductions from operating losses of the investments, over specified time periods. These tax credits and deductions are recognized as a reduction of income tax expense.

Valley’s tax credit investments are carried in other assets on the consolidated statements of financial condition. Valley’s unfunded capital and other commitments related to the tax credit investments are carried in accrued expenses and other liabilities on the consolidated statements of financial condition. Valley recognizes amortization

of tax credit investments, including impairment losses, within non-interest expense in the consolidated statements of income using the equity method of accounting. After initial measurement, the carrying amounts of tax credit investments with non-readily determinable fair values are increased to reflect Valley's share of income of the investee and are reduced to reflect its share of losses of the investee, dividends received and impairments, if applicable.

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, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	14,666	$	15,343
Other tax credit investments, net	54,687		57,006
Total tax credit investments, net	$	69,353	$	72,349
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,360	$	1,360
Total unfunded tax credit commitments	$	1,360	$	1,360

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, 2022 and 2021: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	744	$	897
Other tax credit investment credits and tax benefits	2,551		2,685
Total reduction in income tax expense	$	3,295	$	3,582
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	415	$	543
Affordable housing tax credit investment impairment losses	262		341
Other tax credit investment losses	309		173
Other tax credit investment impairment losses	1,910		1,687
Total amortization of tax credit investments recorded in non-interest expense	$	2,896	$	2,744

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Business Segments

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Business Segments

Business Segments

Valley has four business segments that it monitors and reports on to manage Valley’s business operations. These

segments are consumer lending, commercial lending, investment management, and corporate and other adjustments. Valley’s reportable segments have been determined based upon its internal structure of operations and lines of business. Each business segment is reviewed routinely for its asset growth, contribution to income before income taxes and return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from the corporate and other adjustments segment to each of the other three business segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each business segment utilizing a transfer pricing methodology, which involves the allocation of operating and funding costs based on each segment's respective mix of average earning assets and/

or liabilities outstanding for the period. The financial reporting for each segment contains allocations and reporting in line with Valley’s operations, which may not necessarily be comparable to any other financial institution. The

accounting for each segment includes internal accounting policies designed to measure consistent and reasonable financial reporting and may result in income and expense measurements that differ from amounts under U.S. GAAP. Furthermore, changes in management structure or allocation methodologies and procedures may result in changes in reported segment financial data.

The following tables represent the financial data for Valley’s four business segments for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	—	$	40,283,048
Interest income	$	59,459		$	257,906		$	23,787		$	(694)	$	340,458
Interest expense	3,207			11,327			2,376			5,879		22,789
Net interest income (loss)	56,252			246,579			21,411			(6,573)		317,669
Provision for credit losses	1,873			1,627			57			—		3,557
Net interest income (loss) after provision for credit losses	54,379			244,952			21,354			(6,573)		314,112
Non-interest income	13,817			16,880			2,073			6,500		39,270
Non-interest expense	16,568			25,085			836			154,851		197,340
Internal transfer expense (income)	28,647			99,916			17,061			(145,624)		—
Income (loss) before income taxes	$	22,981		$	136,831		$	5,530		$	(9,300)	$	156,042
Return on average interest earning assets (pre-tax)	1.20		%	2.03		%	0.39		%	N/A		1.55		%

	Three Months Ended March 31, 2021
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,049,252		$	25,533,227		$	4,803,740		$	—	$	37,386,219
Interest income	$	60,845		$	252,336		$	19,509		$	(892)	$	331,798
Interest expense	6,415			23,235			4,371			5,110		39,131
Net interest income (loss)	54,430			229,101			15,138			(6,002)		292,667
(Credit) provision for credit losses	(2,635)			11,676			(385)			—		8,656
Net interest income (loss) after provision for credit losses	57,065			217,425			15,523			(6,002)		284,011
Non-interest income	13,685			7,713			2,331			7,504		31,233
Non-interest expense	19,849			25,531			1,777			113,056		160,213
Internal transfer expense (income)	19,502			70,555			13,277			(103,334)		—
Income (loss) before income taxes	$	31,399		$	129,052		$	2,800		$	(8,220)	$	155,031
Return on average interest earning assets (pre-tax)	1.78		%	2.02		%	0.23		%	N/A		1.66		%

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Basis of Presentation (Policies)

3 Months Ended

Mar. 31, 2022

Organization, Consolidation and Presentation of Financial Statements [Abstract]

Basis of Presentation

Basis of Presentation

The unaudited consolidated financial statements of Valley National Bancorp, a New Jersey corporation (Valley), include the accounts of its commercial bank subsidiary, Valley National Bank (the Bank), and all of Valley’s direct or indirect wholly-owned subsidiaries. All inter-company transactions and balances have been eliminated. The accounting and reporting policies of Valley conform to U.S. generally accepted accounting principles (U.S. GAAP) and general practices within the financial services industry. In accordance with applicable accounting standards, Valley does not consolidate statutory trusts established for the sole purpose of issuing trust preferred securities and related trust common securities. Certain prior period amounts have been reclassified to conform to the current presentation.

In the opinion of management, all adjustments (which include only normal recurring adjustments) necessary to present fairly Valley’s financial position, results of operations, changes in shareholders' equity and cash flows at March 31, 2022 and for all periods presented have been made. The results of operations for the three months ended March 31, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period.

Certain information and footnote disclosures normally included in financial statements prepared in accordance with U.S. GAAP and industry practice have been condensed or omitted pursuant to rules and regulations of the SEC. These financial statements should be read in conjunction with the consolidated financial statements and notes thereto included in Valley’s Annual Report on Form 10-K for the year ended December 31, 2021.

Significant Estimates

Significant Estimates. In preparing the unaudited consolidated financial statements in conformity with U.S. GAAP, management has made estimates and assumptions that affect the reported amounts of assets and liabilities as of the date of the consolidated statements of financial condition and results of operations for the periods indicated. Material estimates that require application of management’s most difficult, subjective or complex judgment and are particularly susceptible to change include: the allowance for credit losses, the evaluation of goodwill and other intangible assets for impairment, and income taxes. Estimates and assumptions are reviewed periodically, and the effects of revisions are reflected in the consolidated financial statements in the period they are deemed necessary. While management uses its best judgment, actual amounts or results could differ significantly from those estimates. The current economic environment has increased the degree of uncertainty inherent in these material estimates. Actual results may differ from those estimates. Also, future amounts and values could differ materially from those estimates due to changes in values and circumstances after the balance sheet date.

New Accounting Guidance Adopted and Not Accounting Guidance Issued

New Accounting Guidance Adopted in 2022

Accounting Standards Update (ASU) No. 2021-01 "Reference Rate Reform (Topic 848)" extends some of Accounting Standards Codification Topic 848’s optional expedients to derivative contracts impacted by the discounting transition, including for derivatives that do not reference LIBOR or other reference rates that are expected to be discontinued. ASU No. 2021-01 is effective for all entities immediately upon issuance and may be

elected retrospectively to eligible modifications as of any date from the beginning of the interim period that includes March 12, 2020, or prospectively to new modifications made on or after any date within the interim period including January 7, 2021 and it can be applied through December 31, 2022, similar to the other reference rate reform relief provided under Topic 848. ASU No. 2021-01 is not expected to have a significant impact on Valley’s consolidated financial statements.

ASU No. 2021-05 "Lessors – Certain Leases with Variable Lease Payments" updates guidance in ASC 842, Leases and requires a lessor to classify a lease with variable lease payments that do not depend on an index or rate as an operating lease at lease commencement if: (i) the lease would have been classified as a sales-type lease or direct financing lease under ASC 842 classification criteria; and (ii) the lessor would have recognized a selling loss at lease commencement. Valley adopted ASU No. 2021-05 on January 1, 2022, and the new guidance did not have a significant impact on Valley’s consolidated financial statements.

New Accounting Guidance Issued in 2022

ASU No. 2022-01, “Derivatives and Hedging (Topic 815): Fair Value Hedging –Portfolio Layer Method” expands and clarifies the current guidance on accounting for fair value hedge basis adjustments under the portfolio layer method for both single-layer and multiple-layer hedges. This method allows entities to designate multiple hedging relationships with a single closed portfolio, and therefore a larger portion of the interest rate risk associated with such a portfolio is eligible to be hedged. ASU No. 2022-01 also clarifies that no assets may be added to a closed portfolio once it is designated in a portfolio layer method hedge. ASU No. 2022-01 will be effective for Valley on January 1, 2023, and it is not expected to have a significant impact on Valley's consolidated financial statements.

ASU No. 2022-02, “Financial Instruments – Credit Losses (Topic 326): Troubled Debt Restructurings and Vintage Disclosures” eliminates the troubled debt restructuring (TDR) accounting model for creditors, such as Valley, that have adopted Topic 326, “Financial Instruments – Credit Losses.” ASU No. 2022-02 will require all loan modifications to be accounted for under the general loan modification guidance in Subtopic 310-20. On a prospective basis, entities will also be subject to new disclosure requirements covering modifications of receivables to borrowers experiencing financial difficulty. Public business entities within the scope of the Topic 326 vintage disclosure requirements also will be required to prospectively disclose current-period gross write-off information by vintage. However, gross recoveries will not be required. ASU No. 2022-02 will be effective for Valley on January 1, 2023, with early adoption permitted. Valley is currently evaluating the impact of ASU No. 2022-02 on its consolidated financial statements.

Allowance for Credit Losses for Held to Maturity Debt Securities

Allowance for Credit Losses for Held to Maturity Debt Securities

Valley has a zero loss expectation for certain securities within the held to maturity portfolio, and therefore it is not required to estimate an allowance for credit losses related to these securities under the CECL standard. After an evaluation of qualitative factors, Valley identified the following securities types which it believes qualify for this

exclusion: U.S. Treasury securities, U.S. government agency securities, residential mortgage-backed securities issued by Ginnie Mae, Fannie Mae and Freddie Mac, and collateralized municipal bonds called TEMS.

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Earnings Per Common Share (Tables)

3 Months Ended

Mar. 31, 2022

Earnings Per Share [Abstract]

Schedule of Earnings Per Share, Basic and Diluted

The following table shows the calculation of both basic and diluted earnings per common share for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31,
	2022		2021
	(in thousands, except for share data)
Net income available to common shareholders	$	113,556	$	112,538
Basic weighted average number of common shares outstanding	421,573,843		405,152,605
Plus: Common stock equivalents	1,932,707		2,484,160
Diluted weighted average number of common shares outstanding	423,506,550		407,636,765
Earnings per common share:
Basic	$	0.27	$	0.28
Diluted	0.27		0.28

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Accumulated Other Comprehensive Loss (Tables)

3 Months Ended

Mar. 31, 2022

Equity [Abstract]

Components of Accumulated Other Comprehensive Loss

The following table presents the after-tax changes in the balances of each component of accumulated other comprehensive loss for the three months ended March 31, 2022: 

	Components of Accumulated Other Comprehensive Loss						Total Accumulated Other Comprehensive Loss
	Unrealized Gains and Losses on Available for Sale (AFS) Securities		Unrealized Gains and Losses on Derivatives		Defined Benefit Pension Plan
	(in thousands)
Balance at December 31, 2021	$	9,186	$	(1,332)	$	(25,786)	$	(17,932)
Other comprehensive (loss) gain before reclassification	(38,892)		218		—		(38,674)
Amounts reclassified from other comprehensive (loss) income	(10)		386		132		508
Other comprehensive (loss) income, net	(38,902)		604		132		(38,166)
Balance at March 31, 2022	$	(29,716)	$	(728)	$	(25,654)	$	(56,098)

Reclassification from Each Component of Accumulated Other Comprehensive Loss

The following table presents amounts reclassified from each component of accumulated other comprehensive loss on a gross and net of tax basis for the three months ended March 31, 2022 and 2021:

	Amounts Reclassified from Accumulated Other Comprehensive Loss
	Three Months Ended March 31,
Components of Accumulated Other Comprehensive Loss	2022		2021		Income Statement Line Item
	(in thousands)
Unrealized gains (losses) on AFS securities before tax	$	14	$	(59)	(Losses) gains on securities transactions, net
Tax effect	(4)		15
Total net of tax	10		(44)
Unrealized losses on derivatives (cash flow hedges) before tax	(542)		(915)		Interest expense
Tax effect	156		264
Total net of tax	(386)		(651)
Defined benefit pension plan:
Amortization of actuarial net loss	(183)		(388)		*
Tax effect	51		108
Total net of tax	(132)		(280)
Total reclassifications, net of tax	$	(508)	$	(975)

* Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense.

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Fair Value Measurement of Assets and Liabilities (Tables)

3 Months Ended

Mar. 31, 2022

Fair Value Disclosures [Abstract]

Assets and Liabilities Measured at Fair Value on a Recurring and Non-Recurring Basis

The following tables present the assets and liabilities that are measured at fair value on a recurring and non-recurring basis by level within the fair value hierarchy as reported on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021. The assets presented under “non-recurring fair value measurements” in the tables below are not measured at fair value on an ongoing basis but are subject to fair value adjustments under certain circumstances (e.g., when an impairment loss is recognized). 

	March 31, 2022		Fair Value Measurements at Reporting Date Using:
			Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	30,528	$	19,009	$	—	$	—
Trading debt securities	11,739		—		11,739		—
Available for sale debt securities:
U.S. government agency securities	18,332		—		18,332		—
Obligations of states and political subdivisions	67,951		—		67,951		—
Residential mortgage-backed securities	795,554		—		795,554		—
Corporate and other debt securities	133,197		—		133,197		—
Total available for sale debt securities	1,015,034		—		1,015,034		—
Loans held for sale (2)	77,632		—		77,632		—
Other assets (3)	176,270		—		176,270		—
Total assets	$	1,311,203	$	19,009	$	1,280,675	$	—
Liabilities
Other liabilities (3)	$	189,682	$	—	$	189,682	$	—
Total liabilities	$	189,682	$	—	$	189,682	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,603	$	—	$	—	$	47,603
Foreclosed assets	1,176		—		—		1,176
Total	$	48,779	$	—	$	—	$	48,779

			Fair Value Measurements at Reporting Date Using:
	December 31, 2021		Quoted Prices in Active Markets for Identical Assets (Level 1)		Significant Other Observable Inputs (Level 2)		Significant Unobservable Inputs (Level 3)
	(in thousands)
Recurring fair value measurements:
Assets
Investment securities:
Equity securities (1)	$	32,844	$	21,284	$	—	$	—
Trading debt securities	38,130		—		38,130		—
Available for sale debt securities:
U.S. government agency securities	20,925		—		20,925		—
Obligations of states and political subdivisions	79,890		—		79,890		—
Residential mortgage-backed securities	904,502		—		904,502		—
Corporate and other debt securities	123,492		—		123,492		—
Total available for sale debt securities	1,128,809		—		1,128,809		—
Loans held for sale (2)	139,516		—		139,516		—
Other assets (3)	181,500		—		181,500		—
Total assets	$	1,520,799	$	21,284	$	1,487,955	$	—
Liabilities
Other liabilities (3)	$	52,376	$	—	$	52,376	$	—
Total liabilities	$	52,376	$	—	$	52,376	$	—
Non-recurring fair value measurements:
Collateral dependent loans	$	47,871	$	—	$	—	$	47,871
Foreclosed assets	2,931		—		—		2,931
Total	$	50,802	$	—	$	—	$	50,802

(1)Includes equity securities measured at net asset value (NAV) per share (or its equivalent) as a practical expedient totaling $11.5 million and $11.6 million at March 31, 2022 and December 31, 2021, respectively. These securities have not been classified in the fair value hierarchy.

(2)Represents residential mortgage loans held for sale that are carried at fair value and had contractual unpaid principal balances totaling approximately $79.1 million and $136.3 million at March 31, 2022 and December 31, 2021, respectively.

(3)Derivative financial instruments are included in this category.

Carrying Amounts and Estimated Fair Values of Financial Instruments

The carrying amounts and estimated fair values of financial instruments not measured and not reported at fair value on the consolidated statements of financial condition at March 31, 2022 and December 31, 2021 were as follows: 

	Fair Value Hierarchy	March 31, 2022				December 31, 2021
		Carrying Amount		Fair Value		Carrying Amount		Fair Value
		(in thousands)
Financial assets
Cash and due from banks	Level 1	$	424,035	$	424,035	$	205,156	$	205,156
Interest bearing deposits with banks	Level 1	306,885		306,885		1,844,764		1,844,764
Equity securities (1)	Level 3	5,464		5,464		3,629		3,629
Held to maturity debt securities:
U.S. Treasury securities	Level 1	67,401		68,932		67,558		71,661
U.S. government agency securities	Level 2	5,572		5,453		6,265		6,378
Obligations of states and political subdivisions	Level 2	319,160		318,021		337,962		344,164
Residential mortgage-backed securities	Level 2	2,594,295		2,440,498		2,166,142		2,152,301
Trust preferred securities	Level 2	37,027		31,733		37,020		31,916
Corporate and other debt securities	Level 2	49,750		49,214		53,750		54,185
Total held to maturity debt securities (2)		3,073,205		2,913,851		2,668,697		2,660,605
Net loans	Level 3	35,001,895		33,815,930		33,794,455		33,283,251
Accrued interest receivable	Level 1	102,667		102,667		96,882		96,882
Federal Reserve Bank and Federal Home Loan Bank stock (3)	Level 2	195,536		195,536		206,450		206,450
Financial liabilities
Deposits without stated maturities	Level 1	32,232,968		32,232,968		31,945,368		31,945,368
Deposits with stated maturities	Level 2	3,414,368		3,365,608		3,687,044		3,670,113
Short-term borrowings	Level 1	484,181		478,300		655,726		637,490
Long-term borrowings	Level 2	1,409,142		1,336,303		1,423,676		1,404,184
Junior subordinated debentures issued to capital trusts	Level 2	56,500		39,578		56,413		46,306
Accrued interest payable (4)	Level 1	8,016		8,016		4,909		4,909

(1)Represents equity securities without a readily determinable fair value measured at cost less impairment, if any.

(2)The carrying amount is presented gross without the allowance for credit losses.

(3)Included in other assets.

(4)Included in accrued expenses and other liabilities.

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Investment Securities (Tables)

3 Months Ended

Mar. 31, 2022

Investments, Debt and Equity Securities [Abstract]

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Available for Sale

The amortized cost, gross unrealized gains and losses and fair value of available for sale debt securities at March 31, 2022 and December 31, 2021 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2022
U.S. government agency securities	$	18,448	$	32	$	(148)	$	18,332
Obligations of states and political subdivisions:
Obligations of states and state agencies	25,274		22		(310)		24,986
Municipal bonds	47,270		66		(4,371)		42,965
Total obligations of states and political subdivisions	72,544		88		(4,681)		67,951
Residential mortgage-backed securities	829,222		971		(34,639)		795,554
Corporate and other debt securities	135,550		1,033		(3,386)		133,197
Total	$	1,055,764	$	2,124	$	(42,854)	$	1,015,034
December 31, 2021
U.S. government agency securities	$	20,323	$	608	$	(6)	$	20,925
Obligations of states and political subdivisions:
Obligations of states and state agencies	26,088		132		(93)		26,127
Municipal bonds	53,530		349		(116)		53,763
Total obligations of states and political subdivisions	79,618		481		(209)		79,890
Residential mortgage-backed securities	895,279		14,986		(5,763)		904,502
Corporate and other debt securities	120,871		3,177		(556)		123,492
Total	$	1,116,091	$	19,252	$	(6,534)	$	1,128,809

Age of Unrealized Losses and Fair Value of Related Available for Sale Debt Securities

The age of unrealized losses and fair value of the related available for sale debt securities at March 31, 2022 and December 31, 2021 were as follows: 

	Less than Twelve Months				More than Twelve Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2022
U.S. government agency securities	$	13,880	$	(140)	$	1,292	$	(8)	$	15,172	$	(148)
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,153		(310)		—		—		10,153		(310)
Municipal bonds	31,523		(4,371)		—		—		31,523		(4,371)
Total obligations of states and political subdivisions	41,676		(4,681)		—		—		41,676		(4,681)
Residential mortgage-backed securities	688,282		(31,427)		39,143		(3,212)		727,425		(34,639)
Corporate and other debt securities	74,665		(3,386)		—		—		74,665		(3,386)
Total	$	818,503	$	(39,634)	$	40,435	$	(3,220)	$	858,938	$	(42,854)
December 31, 2021
U.S. government agency securities	$	—	$	—	$	1,326	$	(6)	$	1,326	$	(6)
Obligations of states and political subdivisions:
Obligations of states and state agencies	10,549		(93)		—		—		10,549		(93)
Municipal bonds	19,100		(116)		—		—		19,100		(116)
Total obligations of states and political subdivisions	29,649		(209)		—		—		29,649		(209)
Residential mortgage-backed securities	371,256		(4,770)		25,960		(993)		397,216		(5,763)
Corporate and other debt securities	59,039		(556)		—		—		59,039		(556)
Total	$	459,944	$	(5,535)	$	27,286	$	(999)	$	487,230	$	(6,534)

Contractual Maturities of Debt Securities Available for Sale

The contractual maturities of available for sale debt securities at March 31, 2022 are set forth in the following table. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.

	March 31, 2022
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	11,305	$	11,303
Due after one year through five years	23,241		23,375
Due after five years through ten years	103,691		102,991
Due after ten years	88,305		81,811
Residential mortgage-backed securities	829,222		795,554
Total	$	1,055,764	$	1,015,034

Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Held to Maturity

The amortized cost, gross unrealized gains and losses and fair value of debt securities held to maturity at March 31, 2022 and December 31, 2021 were as follows: 

	Amortized Cost		Gross Unrealized Gains		Gross Unrealized Losses		Fair Value
	(in thousands)
March 31, 2022
U.S. Treasury securities	$	67,401	$	1,531	$	—	$	68,932
U.S. government agency securities	5,572		—		(119)		5,453
Obligations of states and political subdivisions:
Obligations of states and state agencies	132,017		648		(1,054)		131,611
Municipal bonds	187,143		871		(1,604)		186,410
Total obligations of states and political subdivisions	319,160		1,519		(2,658)		318,021
Residential mortgage-backed securities	2,594,295		1,993		(155,790)		2,440,498
Trust preferred securities	37,027		4		(5,298)		31,733
Corporate and other debt securities	49,750		181		(717)		49,214
Total	$	3,073,205	$	5,228	$	(164,582)	$	2,913,851
December 31, 2021
U.S. Treasury securities	$	67,558	$	4,103	$	—	$	71,661
U.S. government agency securities	6,265		113		—		6,378
Obligations of states and political subdivisions:
Obligations of states and state agencies	141,015		3,065		(312)		143,768
Municipal bonds	196,947		3,536		(87)		200,396
Total obligations of states and political subdivisions	337,962		6,601		(399)		344,164
Residential mortgage-backed securities	2,166,142		14,599		(28,440)		2,152,301
Trust preferred securities	37,020		5		(5,109)		31,916
Corporate and other debt securities	53,750		559		(124)		54,185
Total	$	2,668,697	$	25,980	$	(34,072)	$	2,660,605

Age of Unrealized Losses and Fair Value of Related Debt Securities Held to Maturity

The age of unrealized losses and fair value of related debt securities held to maturity at March 31, 2022 and December 31, 2021 were as follows: 

	Less than Twelve Months				More than Twelve Months				Total
	Fair Value		Unrealized Losses		Fair Value		Unrealized Losses		Fair Value		Unrealized Losses
	(in thousands)
March 31, 2022
U.S. government agency securities	$	4,092	$	(119)	$	—	$	—	$	4,092	$	(119)
Obligations of states and political subdivisions:
Obligations of states and state agencies	38,979		(815)		5,317		(239)		44,296		(1,054)
Municipal bonds	25,255		(1,514)		1,305		(90)		26,560		(1,604)
Total obligations of states and political subdivisions	64,234		(2,329)		6,622		(329)		70,856		(2,658)
Residential mortgage-backed securities	1,786,943		(105,507)		533,425		(50,283)		2,320,368		(155,790)
Trust preferred securities	—		—		30,729		(5,298)		30,729		(5,298)
Corporate and other debt securities	37,783		(717)		—		—		37,783		(717)
Total	$	1,893,052	$	(108,672)	$	570,776	$	(55,910)	$	2,463,828	$	(164,582)
December 31, 2021
Obligations of states and political subdivisions:
Obligations of states and state agencies	$	17,000	$	(254)	$	5,517	$	(58)	$	22,517	$	(312)
Municipal bonds	9,403		(87)		—		—		9,403		(87)
Total obligations of states and political subdivisions	26,403		(341)		5,517		(58)		31,920		(399)
Residential mortgage-backed securities	1,381,405		(22,365)		206,520		(6,075)		1,587,925		(28,440)
Trust preferred securities	—		—		30,912		(5,109)		30,912		(5,109)
Corporate and other debt securities	32,627		(124)		—		—		32,627		(124)
Total	$	1,440,435	$	(22,830)	$	242,949	$	(11,242)	$	1,683,384	$	(34,072)

Contractual Maturities of Debt Securities Held to Maturity

The contractual maturities of investments in debt securities held to maturity at March 31, 2022 are set forth in the table below. Maturities may differ from contractual maturities in residential mortgage-backed securities because the mortgages underlying the securities may be prepaid without any penalties. Therefore, residential mortgage-backed securities are not included in the maturity categories in the following summary.  

	March 31, 2022
	Amortized Cost		Fair Value
	(in thousands)
Due in one year	$	39,603	$	39,663
Due after one year through five years	215,490		217,668
Due after five years through ten years	46,097		45,919
Due after ten years	177,720		170,103
Residential mortgage-backed securities	2,594,295		2,440,498
Total	$	3,073,205	$	2,913,851

Amortized Cost of Debt Securities Held to Maturity by External Credit Rating

The following table summarizes the amortized cost of held to maturity debt securities by external credit rating at March 31, 2022 and December 31, 2021.

	AAA/AA/A Rated		BBB rated		Non-investment grade rated		Non-rated		Total
	(in thousands)
March 31, 2022
U.S. Treasury securities	$	67,401	$	—	$	—	$	—	$	67,401
U.S. government agency securities	5,572		—		—		—		5,572
Obligations of states and political subdivisions:
Obligations of states and state agencies	110,710		—		5,556		15,751		132,017
Municipal bonds	135,463		—		—		51,680		187,143
Total obligations of states and political subdivisions	246,173		—		5,556		67,431		319,160
Residential mortgage-backed securities	2,594,295		—		—		—		2,594,295
Trust preferred securities	—		—		—		37,027		37,027
Corporate and other debt securities	2,000		6,000		—		41,750		49,750
Total	$	2,915,441	$	6,000	$	5,556	$	146,208	$	3,073,205
December 31, 2021
U.S. Treasury securities	$	67,558	$	—	$	—	$	—	$	67,558
U.S. government agency securities	6,265		—		—		—		6,265
Obligations of states and political subdivisions:
Obligations of states and state agencies	118,368		—		5,576		17,071		141,015
Municipal bonds	148,854		—		—		48,093		196,947
Total obligations of states and political subdivisions	267,222		—		5,576		65,164		337,962
Residential mortgage-backed securities	2,166,142		—		—		—		2,166,142
Trust preferred securities	—		—		—		37,020		37,020
Corporate and other debt securities	2,000		6,000		—		45,750		53,750
Total	$	2,509,187	$	6,000	$	5,576	$	147,934	$	2,668,697

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Loans and Allowance for Credit Losses for Loans (Tables)

3 Months Ended

Mar. 31, 2022

Receivables [Abstract]

Schedule of Loan Portfolio

The detail of the loan portfolio as of March 31, 2022 and December 31, 2021 was as follows: 

	March 31, 2022		December 31, 2021
	(in thousands)
Loans:
Commercial and industrial:
Commercial and industrial	$	5,587,781	$	5,411,601
Commercial and industrial PPP loans *	203,609		435,950
Total commercial and industrial loans	5,791,390		5,847,551
Commercial real estate:
Commercial real estate	19,763,202		18,935,486
Construction	2,174,542		1,854,580
Total commercial real estate loans	21,937,744		20,790,066
Residential mortgage	4,691,935		4,545,064
Consumer:
Home equity	393,538		400,779
Automobile	1,552,928		1,570,036
Other consumer	996,870		1,000,161
Total consumer loans	2,943,336		2,970,976
Total loans	$	35,364,405	$	34,153,657

*Represents SBA Paycheck Protection Program (PPP) loans, net of unearned fees totaling $5.9 million and $12.1 million at March 31, 2022 and December 31, 2021, respectively.

Past Due, Non-Accrual and Current Loans by Loan Portfolio Class

The following table presents past due, current and non-accrual loans without an allowance for loan losses by loan portfolio class at March 31, 2022 and December 31, 2021:

	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, 2022
Commercial and industrial	$	6,723	$	14,461	$	9,261	$	96,631	$	127,076	$	5,664,314	$	5,791,390	$	8,341
Commercial real estate:
Commercial real estate	30,807		6,314		—		79,180		116,301		19,646,901		19,763,202		66,191
Construction	1,708		3,125		—		17,618		22,451		2,152,091		2,174,542		—
Total commercial real estate loans	32,515		9,439		—		96,798		138,752		21,798,992		21,937,744		66,191
Residential mortgage	9,266		2,560		1,746		33,275		46,847		4,645,088		4,691,935		19,227
Consumer loans:
Home equity	38		42		—		3,382		3,462		390,076		393,538		3
Automobile	4,687		458		4		273		5,422		1,547,506		1,552,928		—
Other consumer	1,137		54		396		99		1,686		995,184		996,870		—
Total consumer loans	5,862		554		400		3,754		10,570		2,932,766		2,943,336		3
Total	$	54,366	$	27,014	$	11,407	$	230,458	$	323,245	$	35,041,160	$	35,364,405	$	93,762

	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)
December 31, 2021
Commercial and industrial	$	6,717	$	7,870	$	1,273	$	99,918	$	115,778	$	5,731,773	$	5,847,551	$	9,066
Commercial real estate:
Commercial real estate	14,421		—		32		83,592		98,045		18,837,441		18,935,486		70,719
Construction	1,941		—		—		17,641		19,582		1,834,998		1,854,580		—
Total commercial real estate loans	16,362		—		32		101,233		117,627		20,672,439		20,790,066		70,719
Residential mortgage	10,999		3,314		677		35,207		50,197		4,494,867		4,545,064		20,401
Consumer loans:
Home equity	242		98		—		3,517		3,857		396,922		400,779		4
Automobile	6,391		656		271		240		7,558		1,562,478		1,570,036		—
Other consumer	178		266		518		101		1,063		999,098		1,000,161		—
Total consumer loans	6,811		1,020		789		3,858		12,478		2,958,498		2,970,976		4
Total	$	40,889	$	12,204	$	2,771	$	240,216	$	296,080	$	33,857,577	$	34,153,657	$	100,190

Risk Category of Loans

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, 2022 and December 31, 2021:

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Commercial and industrial
Risk Rating:
Pass	$	337,060	$	1,224,531	$	705,495	$	414,559	$	327,590	$	443,359	$	2,094,405	$	208	$	5,547,207
Special Mention	197		4,469		716		3,087		13,566		9,848		97,834		11		129,728
Substandard	28		2,144		5,728		3,387		570		6,286		10,497		110		28,750
Doubtful	—		—		—		2,717		—		82,988		—		—		85,705
Total commercial and industrial	$	337,285	$	1,231,144	$	711,939	$	423,750	$	341,726	$	542,481	$	2,202,736	$	329	$	5,791,390
Commercial real estate
Risk Rating:
Pass	$	1,301,030	$	4,505,671	$	3,074,999	$	2,564,818	$	1,654,197	$	5,685,062	$	203,527	$	13,286	$	19,002,590
Special Mention	3,890		22,188		69,992		32,837		84,259		176,080		9,684		—		398,930
Substandard	—		10,193		39,207		36,344		42,625		224,972		8,160		—		361,501
Doubtful	—		—		—		—		—		181		—		—		181
Total commercial real estate	$	1,304,920	$	4,538,052	$	3,184,198	$	2,633,999	$	1,781,081	$	6,086,295	$	221,371	$	13,286	$	19,763,202
Construction
Risk Rating:
Pass	$	31,645	$	313,251	$	88,262	$	44,544	$	13,381	$	17,718	$	1,623,723	$	—	$	2,132,524
Special Mention	—		—		—		1,001		—		—		21,467		—		22,468
Substandard	—		—		—		1		—		17,841		1,708		—		19,550
Total construction	$	31,645	$	313,251	$	88,262	$	45,546	$	13,381	$	35,559	$	1,646,898	$	—	$	2,174,542

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 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	$	1,563,050	$	743,165	$	461,022	$	362,748	$	143,753	$	337,713	$	1,968,513	$	247	$	5,580,211
Special Mention	4,182		1,195		3,217		14,143		1,726		9,869		102,145		40		136,517
Substandard	8,248		4,823		3,139		7,077		910		408		19,642		109		44,356
Doubtful	—		—		2,733		—		16,355		67,379		—		—		86,467
Total commercial and industrial	$	1,575,480	$	749,183	$	470,111	$	383,968	$	162,744	$	415,369	$	2,090,300	$	396	$	5,847,551
Commercial real estate
Risk Rating:
Pass	$	4,517,917	$	2,983,140	$	2,702,580	$	1,734,922	$	1,474,770	$	4,557,011	$	195,851	$	13,380	$	18,179,571
Special Mention	7,700		50,019		46,911		44,187		65,623		143,540		50,168		—		408,148
Substandard	735		34,655		29,029		41,231		70,941		169,041		1,949		—		347,581
Doubtful	—		—		—		—		—		186		—		—		186
Total commercial real estate	$	4,526,352	$	3,067,814	$	2,778,520	$	1,820,340	$	1,611,334	$	4,869,778	$	247,968	$	13,380	$	18,935,486
Construction
Risk Rating:
Pass	$	274,097	$	98,609	$	48,555	$	32,781	$	6,061	$	28,419	$	1,313,555	$	—	$	1,802,077
Special Mention	4,131		—		1,009		—		—		—		18,449		—		23,589
Substandard	199		19		6		246		—		17,842		10,602		—		28,914
Total construction	$	278,427	$	98,628	$	49,570	$	33,027	$	6,061	$	46,261	$	1,342,606	$	—	$	1,854,580

The following table presents the amortized cost in those loan classes based on payment activity by origination year as of March 31, 2022 and December 31, 2021.

	Term Loans
	Amortized Cost Basis by Origination Year
March 31, 2022	2022		2021		2020		2019		2018		Prior to 2018		Revolving Loans Amortized Cost Basis		Revolving Loans Converted to Term Loans		Total
	(in thousands)
Residential mortgage
Performing	$	394,913	$	1,487,234	$	603,092	$	563,634	$	345,807	$	1,220,733	$	69,458	$	—	$	4,684,871
90 days or more past due	—		—		542		1,663		4,094		765		—		—		7,064
Total residential mortgage	$	394,913	$	1,487,234	$	603,634	$	565,297	$	349,901	$	1,221,498	$	69,458	$	—	$	4,691,935
Consumer loans
Home equity
Performing	$	5,735	$	13,431	$	5,258	$	6,173	$	6,486	$	16,775	$	298,122	$	40,566	$	392,546
90 days or more past due	—		—		—		—		—		2		400		590		992
Total home equity	5,735		13,431		5,258		6,173		6,486		16,777		298,522		41,156		393,538
Automobile
Performing	142,530		678,425		279,849		245,235		134,274		71,935		—		—		1,552,248
90 days or more past due	—		134		103		154		159		130		—		—		680
Total automobile	142,530		678,559		279,952		245,389		134,433		72,065		—		—		1,552,928
Other consumer
Performing	7,033		4,215		6,368		6,419		6,836		9,527		956,468		—		996,866
90 days or more past due	—		—		—		—		—		—		4		—		4
Total other consumer	7,033		4,215		6,368		6,419		6,836		9,527		956,472		—		996,870
Total consumer	$	155,298	$	696,205	$	291,578	$	257,981	$	147,755	$	98,369	$	1,254,994	$	41,156	$	2,943,336

	Term Loans
	Amortized Cost Basis by Origination Year
December 31, 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	$	1,448,602	$	635,531	$	572,911	$	425,152	$	368,164	$	1,014,190	$	70,342	$	—	$	4,534,892
90 days or more past due	—		357		2,627		2,056		2,794		2,338		—		—		10,172
Total residential mortgage	$	1,448,602	$	635,888	$	575,538	$	427,208	$	370,958	$	1,016,528	$	70,342	$	—	$	4,545,064
Consumer loans
Home equity
Performing	$	13,847	$	5,723	$	6,994	$	7,384	$	5,359	$	13,597	$	303,888	$	42,822	$	399,614
90 days or more past due	—		—		—		—		—		35		536		594		1,165
Total home equity	13,847		5,723		6,994		7,384		5,359		13,632		304,424		43,416		400,779
Automobile
Performing	735,446		309,856		278,828		157,450		72,753		15,171		—		—		1,569,504
90 days or more past due	129		—		78		163		81		81		—		—		532
Total automobile	735,575		309,856		278,906		157,613		72,834		15,252		—		—		1,570,036
Other consumer
Performing	2,949		6,717		6,468		7,017		1,009		14,483		961,027		—		999,670
90 days or more past due	—		—		—		—		—		—		491		—		491
Total other consumer	2,949		6,717		6,468		7,017		1,009		14,483		961,518		—		1,000,161
Total consumer	$	752,371	$	322,296	$	292,368	$	172,014	$	79,202	$	43,367	$	1,265,942	$	43,416	$	2,970,976

Pre-Modification and Post-Modification Outstanding Recorded Investments and Non-PCI Loans that Subsequently Defaulted

The following table presents the pre- and post-modification amortized cost of loans by loan class modified as TDRs during the three months ended March 31, 2022 and 2021. Post-modification amounts are presented as of March 31, 2022 and 2021.

	Three Months Ended March 31,
	2022					2021
Troubled Debt Restructurings	Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment		Number of Contracts	Pre-Modification Outstanding Recorded Investment		Post-Modification Outstanding Recorded Investment
	($ in thousands)
Commercial and industrial	11	$	9,684	$	9,662	5	$	13,744	$	13,307
Commercial real estate	2	5,260		5,251		2	4,197		4,185
Residential mortgage	1	121		117		6	1,528		1,518
Consumer	—	—		—		1	170		168
Total	14	$	15,065	$	15,030	14	$	19,639	$	19,178

Loans modified as TDRs within the previous 12 months and for which there was a payment default (90 or more days past due) for the three months ended March 31, 2022 and 2021 were as follows:

	Three Months Ended March 31,
	2022			2021
Troubled Debt Restructurings Subsequently Defaulted	Number of Contracts	Recorded Investment		Number of Contracts	Recorded Investment
	($ in thousands)
Commercial and industrial	2	$	1,850	16	$	12,384
Construction	2	17,599		—	—
Residential mortgage	—	—		3	655
Total	4	$	19,449	19	$	13,039

Summary of Collateral Dependent Loans

The following table presents collateral dependent loans by class as of March 31, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(in thousands)
Collateral dependent loans:
Commercial and industrial *	$	93,389	$	95,335
Commercial real estate:
Commercial real estate	92,402		110,174
Construction	19,307		—
Total commercial real estate loans	111,709		110,174
Residential mortgage	25,704		35,745
Home equity	3		4
Total	$	230,805	$	241,258

*    Commercial and industrial loans are primarily collateralized by taxi medallions.

Summary of Allowance for Credit Losses

The following table summarizes the allowance for credit losses for loans at March 31, 2022 and December 31, 2021: 

	March 31, 2022		December 31, 2021
	(in thousands)
Components of allowance for credit losses for loans:
Allowance for loan losses	$	362,510	$	359,202
Allowance for unfunded credit commitments	16,742		16,500
Total allowance for credit losses for loans	$	379,252	$	375,702

Summary of Provision for Credit Losses

The following table summarizes the provision for credit losses for loans for the periods indicated:

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Components of provision for credit losses for loans:
Provision for loan losses	$	3,258	$	8,692
Provision for unfunded credit commitments	242		322
Total provision for credit losses for loans	$	3,500	$	9,014

Summary of Activity in Allowance for Loan Losses

The following table details the activity in the allowance for loan losses by loan portfolio segment for the three months ended March 31, 2022 and 2021: 

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
Three Months Ended March 31, 2022
Allowance for loan losses:
Beginning balance	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans charged-off	(1,571)		(173)		(26)		(825)		(2,595)
Charged-off loans recovered	824		107		457		1,257		2,645
Net (charge-offs) recoveries	(747)		(66)		431		432		50
(Credit) provision for loan losses	(1,140)		2,525		2,638		(765)		3,258
Ending balance	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510
Three Months Ended March 31, 2021
Allowance for losses:
Beginning balance	$	131,070	$	164,113	$	28,873	$	16,187	$	340,243
Loans charged-off	(7,142)		(382)		(138)		(1,138)		(8,800)
Charged-off loans recovered	1,589		69		157		930		2,745
Net (charge-offs) recoveries	(5,553)		(313)		19		(208)		(6,055)
Provision (credit) for loan losses	891		10,436		(1,720)		(915)		8,692
Ending balance	$	126,408	$	174,236	$	27,172	$	15,064	$	342,880

Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Allowance Measurement Methodology

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, 2022 and December 31, 2021.

	Commercial and Industrial		Commercial Real Estate		Residential Mortgage		Consumer		Total
	(in thousands)
March 31, 2022
Allowance for loan losses:
Individually evaluated for credit losses	$	62,500	$	6,303	$	641	$	179	$	69,623
Collectively evaluated for credit losses	38,703		213,646		27,548		12,990		292,887
Total	$	101,203	$	219,949	$	28,189	$	13,169	$	362,510
Loans:
Individually evaluated for credit losses	$	103,534	$	128,583	$	34,696	$	1,553	$	268,366
Collectively evaluated for credit losses	5,687,856		21,809,161		4,657,239		2,941,783		35,096,039
Total	$	5,791,390	$	21,937,744	$	4,691,935	$	2,943,336	$	35,364,405
December 31, 2021
Allowance for loan losses:
Individually evaluated for credit losses	$	64,359	$	6,277	$	470	$	390	$	71,496
Collectively evaluated for credit losses	38,731		211,213		24,650		13,112		287,706
Total	$	103,090	$	217,490	$	25,120	$	13,502	$	359,202
Loans:
Individually evaluated for credit losses	$	119,760	$	134,135	$	42,469	$	2,431	$	298,795
Collectively evaluated for credit losses	5,727,791		20,655,931		4,502,595		2,968,545		33,854,862
Total	$	5,847,551	$	20,790,066	$	4,545,064	$	2,970,976	$	34,153,657

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Goodwill and Other Intangible Assets (Tables)

3 Months Ended

Mar. 31, 2022

Goodwill and Intangible Assets Disclosure [Abstract]

Schedule of Goodwill

The changes in the carrying amount of goodwill as allocated to our business segments, or reporting units thereof, for goodwill impairment analysis were:

	Business Segment / Reporting Unit *
	Wealth Management		Consumer Lending		Commercial Lending		Investment Management		Total
	(in thousands)
Balance at December 31, 2021	$	34,315	$	308,248	$	896,015	$	220,430	$	1,459,008
Goodwill from business combinations	4,370		85		4,866		25		9,346
Balance at March 31, 2022	$	38,685	$	308,333	$	900,881	$	220,455	$	1,468,354

*    Valley’s Wealth Management Division is comprised of trust, asset management, insurance and tax credit advisory services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes.

Other Intangible Assets

The following table summarizes other intangible assets as of March 31, 2022 and December 31, 2021: 

	Gross Intangible Assets		Accumulated Amortization		Net Intangible Assets
	(in thousands)
March 31, 2022
Loan servicing rights	$	117,363	$	(92,133)	$	25,230
Core deposits	109,290		(68,373)		40,917
Other	12,299		(3,562)		8,737
Total other intangible assets	$	238,952	$	(164,068)	$	74,884
December 31, 2021
Loan servicing rights	$	114,636	$	(90,951)	$	23,685
Core deposits	109,290		(65,488)		43,802
Other	6,092		(3,193)		2,899
Total other intangible assets	$	230,018	$	(159,632)	$	70,386

Estimated Future Amortization Expense

The following table presents the estimated future amortization expense of other intangible assets for the remainder of 2022 through 2026: 

	Loan Servicing Rights		Core Deposits		Other
	(in thousands)
2022	$	2,660	$	8,516	$	1,372
2023	3,146		9,510		1,600
2024	2,733		7,740		1,401
2025	2,368		5,970		1,202
2026	2,039		4,225		998

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Derivative Instruments and Hedging Activities (Tables)

3 Months Ended

Mar. 31, 2022

Derivative Instruments and Hedging Activities Disclosure [Abstract]

Consolidated Statements of Financial Condition Related to Fair Value of Derivative Financial Instruments

Amounts included in the consolidated statements of financial condition related to the fair value of Valley’s derivative financial instruments were as follows: 

	March 31, 2022						December 31, 2021
	Fair Value						Fair Value
	Other Assets		Other Liabilities		Notional Amount		Other Assets		Other Liabilities		Notional Amount
	(in thousands)
Derivatives designated as hedging instruments:
Cash flow hedge interest rate swaps	$	590	$	—	$	200,000	$	—	$	310	$	700,000
Fair value hedge interest rate swaps	—		16,634		300,000		—		3,335		300,000
Total derivatives designated as hedging instruments	$	590	$	16,634	$	500,000	$	—	$	3,645	$	1,000,000
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*	$	172,393	$	171,610	$	11,264,601	$	181,012	$	47,277	$	10,301,460
Mortgage banking derivatives	3,287		1,438		181,017		488		1,454		312,428
Total derivatives not designated as hedging instruments	$	175,680	$	173,048	$	11,445,618	$	181,500	$	48,731	$	10,613,888

*    Other derivatives include risk participation agreements.

Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows

Gains (losses) included in the consolidated statements of income and other comprehensive income (loss), on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$	(542)	$	(915)
Amount of gain recognized in other comprehensive income (loss)	320		177

Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Fair Value

Gains (losses) included in the consolidated statements of income related to interest rate derivatives designated as hedges of fair value were as follows: 

	Three Months Ended March 31,
	2022	2021
	(in thousands)
Derivative - interest rate swap:
Interest expense	530	—
Hedged item - subordinated debt
Interest expense	(530)	—

Interest Rate Derivatives Designated as Hedges

The following table presents the hedged item related to interest rate derivatives designated as fair value hedges and the cumulative basis fair value adjustment included in the net carrying amount of the hedged item at March 31, 2022.

Line Item in the Statement of Financial Position in Which the Hedged Item is Included	Carrying Amount of the Hedged Liability		Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability
	(in thousands)
Long-term borrowings	$	282,443	$	(17,557)

Net (Gains) Losses Related to Derivative Instruments Not Designated as Hedging Instruments

The net gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$	(2,797)	$	(1,785)

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Balance Sheet Offsetting (Tables)

3 Months Ended

Mar. 31, 2022

Offsetting [Abstract]

Offsetting Assets

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2022 and December 31, 2021.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2022
Assets
Interest rate swaps	$	172,983	$	—	$	172,983	$	12,555	$	117,289	$	43,139
Liabilities
Interest rate swaps	$	188,244	$	—	$	188,244	$	(12,555)	$	(2,323)	$	173,366
December 31, 2021
Assets
Interest rate swaps	$	181,012	$	—	$	181,012	$	—	$	—	$	181,012
Liabilities
Interest rate swaps	$	50,922	$	—	$	50,922	$	—	$	(44,231)	$	6,691

*    Cash collateral received (pledged) to our counterparties in relation to market value exposures of OTC derivative contacts in a liability position.

Offsetting Liabilities

The table below presents information about Valley’s financial instruments eligible for offset in the consolidated statements of financial condition as of March 31, 2022 and December 31, 2021.

							Gross Amounts Not Offset
	Gross Amounts Recognized		Gross Amounts Offset		Net Amounts Presented		Financial Instruments		Cash Collateral *		Net Amount
	(in thousands)
March 31, 2022
Assets
Interest rate swaps	$	172,983	$	—	$	172,983	$	12,555	$	117,289	$	43,139
Liabilities
Interest rate swaps	$	188,244	$	—	$	188,244	$	(12,555)	$	(2,323)	$	173,366
December 31, 2021
Assets
Interest rate swaps	$	181,012	$	—	$	181,012	$	—	$	—	$	181,012
Liabilities
Interest rate swaps	$	50,922	$	—	$	50,922	$	—	$	(44,231)	$	6,691

*    Cash collateral received (pledged) to our counterparties in relation to market value exposures of OTC derivative contacts in a liability position.

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Tax Credit Investments (Tables)

3 Months Ended

Mar. 31, 2022

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, 2022 and December 31, 2021:

	March 31, 2022		December 31, 2021
	(in thousands)
Other Assets:
Affordable housing tax credit investments, net	$	14,666	$	15,343
Other tax credit investments, net	54,687		57,006
Total tax credit investments, net	$	69,353	$	72,349
Other Liabilities:
Unfunded affordable housing tax credit commitments	$	1,360	$	1,360
Total unfunded tax credit commitments	$	1,360	$	1,360

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, 2022 and 2021: 

	Three Months Ended March 31,
	2022		2021
	(in thousands)
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$	744	$	897
Other tax credit investment credits and tax benefits	2,551		2,685
Total reduction in income tax expense	$	3,295	$	3,582
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	$	415	$	543
Affordable housing tax credit investment impairment losses	262		341
Other tax credit investment losses	309		173
Other tax credit investment impairment losses	1,910		1,687
Total amortization of tax credit investments recorded in non-interest expense	$	2,896	$	2,744

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Business Segments (Tables)

3 Months Ended

Mar. 31, 2022

Segment Reporting [Abstract]

Schedule of Financial Data for Business Segments

The following tables represent the financial data for Valley’s four business segments for the three months ended March 31, 2022 and 2021:

	Three Months Ended March 31, 2022
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,638,942		$	26,984,460		$	5,659,646		$	—	$	40,283,048
Interest income	$	59,459		$	257,906		$	23,787		$	(694)	$	340,458
Interest expense	3,207			11,327			2,376			5,879		22,789
Net interest income (loss)	56,252			246,579			21,411			(6,573)		317,669
Provision for credit losses	1,873			1,627			57			—		3,557
Net interest income (loss) after provision for credit losses	54,379			244,952			21,354			(6,573)		314,112
Non-interest income	13,817			16,880			2,073			6,500		39,270
Non-interest expense	16,568			25,085			836			154,851		197,340
Internal transfer expense (income)	28,647			99,916			17,061			(145,624)		—
Income (loss) before income taxes	$	22,981		$	136,831		$	5,530		$	(9,300)	$	156,042
Return on average interest earning assets (pre-tax)	1.20		%	2.03		%	0.39		%	N/A		1.55		%

	Three Months Ended March 31, 2021
	Consumer Lending			Commercial Lending			Investment Management			Corporate and Other Adjustments		Total
	($ in thousands)
Average interest earning assets	$	7,049,252		$	25,533,227		$	4,803,740		$	—	$	37,386,219
Interest income	$	60,845		$	252,336		$	19,509		$	(892)	$	331,798
Interest expense	6,415			23,235			4,371			5,110		39,131
Net interest income (loss)	54,430			229,101			15,138			(6,002)		292,667
(Credit) provision for credit losses	(2,635)			11,676			(385)			—		8,656
Net interest income (loss) after provision for credit losses	57,065			217,425			15,523			(6,002)		284,011
Non-interest income	13,685			7,713			2,331			7,504		31,233
Non-interest expense	19,849			25,531			1,777			113,056		160,213
Internal transfer expense (income)	19,502			70,555			13,277			(103,334)		—
Income (loss) before income taxes	$	31,399		$	129,052		$	2,800		$	(8,220)	$	155,031
Return on average interest earning assets (pre-tax)	1.78		%	2.02		%	0.23		%	N/A		1.66		%

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Business Combinations (Details)				3 Months Ended
	Apr. 01, 2022 USD ($) $ / shares shares	Feb. 01, 2022 USD ($)	Dec. 01, 2021 USD ($) office shares	Mar. 31, 2022 USD ($)	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Business Acquisition [Line Items]
Goodwill				$ 1,468,354,000		$ 1,459,008,000
Assets				43,551,457,000		43,446,443,000
Loans				35,001,895,000		33,794,455,000
Deposits				35,647,336,000		$ 35,632,412,000
Goodwill increase				5,000,000
Merger expenses				4,400,000	$ 0
Westchester Bank Holding Corporation
Business Acquisition [Line Items]
Assets			$ 1,400,000,000
Loans			915,000,000
Deposits			$ 1,200,000,000
Bank Leumi Le-Israel Corporation
Business Acquisition [Line Items]
Assets				8,300,000,000
Loans				6,100,000,000
Deposits				$ 7,100,000,000
Landmark Insurance of the Palm Beaches
Business Acquisition [Line Items]
Payments to acquire business		$ 8,600,000
Contingent consideration		1,000,000
Goodwill		4,400,000
Other intangible assets		$ 6,200,000
Westchester Bank Holding Corporation
Business Acquisition [Line Items]
Number of branches | office			7
Number of shares issued for every share owned (in shares) | shares			229.645
Consideration transferred			$ 211,100,000
Shares issued in connection with acquisition (in shares) | shares			15,700,000
Bank Leumi Le-Israel Corporation | Subsequent Event
Business Acquisition [Line Items]
Payments to acquire business	$ 113,400,000
Number of shares issued for every share owned (in shares) | shares	3.8025
Consideration transferred	$ 1,200,000,000
Shares issued in connection with acquisition (in shares) | shares	85,000,000
Cash paid for every share owned (in dollars per share) | $ / shares	$ 5.08
Percentage of common stock transferred	14.00%

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Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Earnings Per Share Reconciliation
Net income available to common shareholders	$ 113,556	$ 112,538
Basic weighted average number of common shares outstanding (in shares)	421,573,843	405,152,605
Plus: Common stock equivalents (in shares)	1,932,707	2,484,160
Diluted weighted average number of common shares outstanding (in shares)	423,506,550	407,636,765
Earnings per common share:
Basic (usd per share)	$ 0.27	$ 0.28
Diluted (usd per share)	$ 0.27	$ 0.28

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Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Accumulated Other Comprehensive Income (Loss)
Beginning balance	$ 5,084,066	$ 4,592,120
Other comprehensive (loss) gain before reclassification	(38,674)
Amounts reclassified from other comprehensive (loss) income	508
Other comprehensive (loss) income, net	(38,166)	(9,287)
Ending balance	5,096,384	4,659,670
Total Accumulated Other Comprehensive Loss
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(17,932)	(7,718)
Ending balance	(56,098)	$ (17,005)
Unrealized Gains and Losses on Available for Sale (AFS) Securities
Accumulated Other Comprehensive Income (Loss)
Beginning balance	9,186
Other comprehensive (loss) gain before reclassification	(38,892)
Amounts reclassified from other comprehensive (loss) income	(10)
Other comprehensive (loss) income, net	(38,902)
Ending balance	(29,716)
Unrealized Gains and Losses on Derivatives
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(1,332)
Other comprehensive (loss) gain before reclassification	218
Amounts reclassified from other comprehensive (loss) income	386
Other comprehensive (loss) income, net	604
Ending balance	(728)
Defined Benefit Pension Plan
Accumulated Other Comprehensive Income (Loss)
Beginning balance	(25,786)
Other comprehensive (loss) gain before reclassification	0
Amounts reclassified from other comprehensive (loss) income	132
Other comprehensive (loss) income, net	132
Ending balance	$ (25,654)

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Accumulated Other Comprehensive Loss - Reclassification from Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Reclassification Out Of Accumulated Other Comprehensive Loss
(Losses) gains on securities transactions, net	$ (1,072)	$ 101
Tax effect	(39,314)	(39,321)
Net income	116,728	115,710
Interest expense	(22,789)	(39,131)
Amortization of actuarial net loss	23,290	18,393
Amounts Reclassified from Accumulated Other Comprehensive Loss
Reclassification Out Of Accumulated Other Comprehensive Loss
Net income	(508)	(975)
Interest expense	(542)	(915)
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized gains (losses) on AFS securities before tax
Reclassification Out Of Accumulated Other Comprehensive Loss
(Losses) gains on securities transactions, net	14	(59)
Tax effect	(4)	15
Net income	10	(44)
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized losses on derivatives (cash flow hedges) before tax
Reclassification Out Of Accumulated Other Comprehensive Loss
Tax effect	156	264
Net income	(386)	(651)
Interest expense	(542)	(915)
Amounts Reclassified from Accumulated Other Comprehensive Loss | Defined benefit pension plan
Reclassification Out Of Accumulated Other Comprehensive Loss
Tax effect	51	108
Net income	(132)	(280)
Amortization of actuarial net loss	$ (183)	$ (388)

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Fair Value Measurement of Assets and Liabilities - Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Investment securities:
Equity securities	$ 35,992	$ 36,473
Trading debt securities	11,739	38,130
Available for sale debt securities:
Available for sale debt securities	1,015,034	1,128,809
Non-recurring fair value measurements:
Unpaid principal balances of loans held for sale	79,100	136,300
U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	18,332	20,925
Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	67,951	79,890
Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	795,554	904,502
Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	133,197	123,492
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements
Investment securities:
Equity securities	19,009	21,284
Trading debt securities	0	0
Available for sale debt securities:
Available for sale debt securities	0	0
Loans held for sale	0	0
Other assets	0	0
Total assets	19,009	21,284
Liabilities
Other liabilities	0	0
Total liabilities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	0	0
Quoted Prices in Active Markets for Identical Assets (Level 1) | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	0	0
Foreclosed assets	0	0
Total	0	0
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements
Investment securities:
Equity securities	0	0
Trading debt securities	11,739	38,130
Available for sale debt securities:
Available for sale debt securities	1,015,034	1,128,809
Loans held for sale	77,632	139,516
Other assets	176,270	181,500
Total assets	1,280,675	1,487,955
Liabilities
Other liabilities	189,682	52,376
Total liabilities	189,682	52,376
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	18,332	20,925
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	67,951	79,890
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	795,554	904,502
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	133,197	123,492
Significant Other Observable Inputs (Level 2) | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	0	0
Foreclosed assets	0	0
Total	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements
Investment securities:
Equity securities	0	0
Trading debt securities	0	0
Available for sale debt securities:
Available for sale debt securities	0	0
Loans held for sale	0	0
Other assets	0	0
Total assets	0	0
Liabilities
Other liabilities	0	0
Total liabilities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	0	0
Significant Unobservable Inputs (Level 3) | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	47,603	47,871
Foreclosed assets	1,176	2,931
Total	48,779	50,802
NAV
Investment securities:
Equity securities	11,500	11,600
Fair Value | Recurring fair value measurements
Investment securities:
Equity securities	30,528	32,844
Trading debt securities	11,739	38,130
Available for sale debt securities:
Available for sale debt securities	1,015,034	1,128,809
Loans held for sale	77,632	139,516
Other assets	176,270	181,500
Total assets	1,311,203	1,520,799
Liabilities
Other liabilities	189,682	52,376
Total liabilities	189,682	52,376
Fair Value | Recurring fair value measurements | U.S. government agency securities
Available for sale debt securities:
Available for sale debt securities	18,332	20,925
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions
Available for sale debt securities:
Available for sale debt securities	67,951	79,890
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities
Available for sale debt securities:
Available for sale debt securities	795,554	904,502
Fair Value | Recurring fair value measurements | Corporate and other debt securities
Available for sale debt securities:
Available for sale debt securities	133,197	123,492
Fair Value | Non-recurring fair value measurements
Non-recurring fair value measurements:
Collateral dependent loans	47,603	47,871
Foreclosed assets	1,176	2,931
Total	48,779	50,802
Fair Value | Significant Unobservable Inputs (Level 3)
Investment securities:
Equity securities	$ 5,464	$ 3,629

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Fair Value Measurement of Assets and Liabilities - Additional Information (Details) $ in Millions	Mar. 31, 2022 USD ($)
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Collateral dependent loans amortized cost	$ 114.4
Specific valuation allowance allocations	$ 66.8
Discount adjustment of the appraisals of foreclosed assets	0.00%
Fair Value | Non-recurring fair value measurements
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items]
Reported net carrying amount of collateral dependent loans	$ 47.6

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Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Interest bearing deposits with banks	$ 306,885	$ 1,844,764
Equity securities	35,992	36,473
Total held to maturity debt securities	2,913,851	2,660,605
Accrued interest receivable	102,667	96,882
Deposits with stated maturities	3,414,368	3,687,044
U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	68,932	71,661
U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	5,453	6,378
Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	318,021	344,164
Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	2,440,498	2,152,301
Trust preferred securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	31,733	31,916
Corporate and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	49,214	54,185
Carrying Amount
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	3,073,205	2,668,697
Carrying Amount | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	424,035	205,156
Interest bearing deposits with banks	306,885	1,844,764
Accrued interest receivable	102,667	96,882
Deposits without stated maturities	32,232,968	31,945,368
Short-term borrowings	484,181	655,726
Accrued interest payable	8,016	4,909
Carrying Amount | Level 1 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	67,401	67,558
Carrying Amount | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Federal Reserve Bank and Federal Home Loan Bank stock	195,536	206,450
Deposits with stated maturities	3,414,368	3,687,044
Long-term borrowings	1,409,142	1,423,676
Junior subordinated debentures issued to capital trusts	56,500	56,413
Carrying Amount | Level 2 | U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	5,572	6,265
Carrying Amount | Level 2 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	319,160	337,962
Carrying Amount | Level 2 | Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	2,594,295	2,166,142
Carrying Amount | Level 2 | Trust preferred securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	37,027	37,020
Carrying Amount | Level 2 | Corporate and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	49,750	53,750
Carrying Amount | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	5,464	3,629
Net loans	35,001,895	33,794,455
Fair Value
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	2,913,851	2,660,605
Fair Value | Level 1
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Cash and due from banks	424,035	205,156
Interest bearing deposits with banks	306,885	1,844,764
Accrued interest receivable	102,667	96,882
Deposits without stated maturities	32,232,968	31,945,368
Short-term borrowings	478,300	637,490
Accrued interest payable	8,016	4,909
Fair Value | Level 1 | U.S. Treasury securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	68,932	71,661
Fair Value | Level 2
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Federal Reserve Bank and Federal Home Loan Bank stock	195,536	206,450
Deposits with stated maturities	3,365,608	3,670,113
Long-term borrowings	1,336,303	1,404,184
Junior subordinated debentures issued to capital trusts	39,578	46,306
Fair Value | Level 2 | U.S. government agency securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	5,453	6,378
Fair Value | Level 2 | Obligations of states and political subdivisions
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	318,021	344,164
Fair Value | Level 2 | Residential mortgage-backed securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	2,440,498	2,152,301
Fair Value | Level 2 | Trust preferred securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	31,733	31,916
Fair Value | Level 2 | Corporate and other debt securities
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Total held to maturity debt securities	49,214	54,185
Fair Value | Level 3
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items]
Equity securities	5,464	3,629
Net loans	$ 33,815,930	$ 33,283,251

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Investment Securities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) position	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($) position
Investments, Debt and Equity Securities [Abstract]
Equity securities	$ 35,992,000		$ 36,473,000
Trading debt securities	11,739,000		$ 38,130,000
Net trading gains (losses) on trading securities	$ (1,100,000)	$ 219,000
Number of security positions in the debt securities available for sale portfolio in an unrealized loss position | position	404		139
Fair value of debt securities available for sale pledged as collateral	$ 488,500,000
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years	5 years
Impairment loss	$ 0	0
Available for sale debt securities, allowance for credit losses	$ 0		$ 0
Number of security positions in the securities held to maturity portfolio in an unrealized loss position | position	303		108
Fair value of investments held to maturity pledged as collateral	$ 909,700,000
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years	7 years 10 months 24 days
Held to maturity debt securities, allowance for credit losses	$ 1,200,000		$ 1,200,000
Held to maturity debt securities, (credit) provision for credit losses	$ 57,000	$ (358,000)

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Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	$ 1,055,764	$ 1,116,091
Gross Unrealized Gains	2,124	19,252
Gross Unrealized Losses	(42,854)	(6,534)
Fair Value	1,015,034	1,128,809
U.S. government agency securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	18,448	20,323
Gross Unrealized Gains	32	608
Gross Unrealized Losses	(148)	(6)
Fair Value	18,332	20,925
Obligations of states and state agencies
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	25,274	26,088
Gross Unrealized Gains	22	132
Gross Unrealized Losses	(310)	(93)
Fair Value	24,986	26,127
Municipal bonds
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	47,270	53,530
Gross Unrealized Gains	66	349
Gross Unrealized Losses	(4,371)	(116)
Fair Value	42,965	53,763
Obligations of states and political subdivisions
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	72,544	79,618
Gross Unrealized Gains	88	481
Gross Unrealized Losses	(4,681)	(209)
Fair Value	67,951	79,890
Residential mortgage-backed securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	829,222	895,279
Gross Unrealized Gains	971	14,986
Gross Unrealized Losses	(34,639)	(5,763)
Fair Value	795,554	904,502
Corporate and other debt securities
Debt Securities, Available-for-sale [Line Items]
Amortized Cost	135,550	120,871
Gross Unrealized Gains	1,033	3,177
Gross Unrealized Losses	(3,386)	(556)
Fair Value	$ 133,197	$ 123,492

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Investment Securities - Age of Unrealized Losses and Fair Value of Related Available for Sale Debt Securities (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value
Less than Twelve Months	$ 818,503	$ 459,944
More than Twelve Months	40,435	27,286
Total	858,938	487,230
Unrealized Losses
Less than Twelve Months	(39,634)	(5,535)
More than Twelve Months	(3,220)	(999)
Total	(42,854)	(6,534)
U.S. government agency securities
Fair Value
Less than Twelve Months	13,880	0
More than Twelve Months	1,292	1,326
Total	15,172	1,326
Unrealized Losses
Less than Twelve Months	(140)	0
More than Twelve Months	(8)	(6)
Total	(148)	(6)
Obligations of states and state agencies
Fair Value
Less than Twelve Months	10,153	10,549
More than Twelve Months	0	0
Total	10,153	10,549
Unrealized Losses
Less than Twelve Months	(310)	(93)
More than Twelve Months	0	0
Total	(310)	(93)
Municipal bonds
Fair Value
Less than Twelve Months	31,523	19,100
More than Twelve Months	0	0
Total	31,523	19,100
Unrealized Losses
Less than Twelve Months	(4,371)	(116)
More than Twelve Months	0	0
Total	(4,371)	(116)
Obligations of states and political subdivisions
Fair Value
Less than Twelve Months	41,676	29,649
More than Twelve Months	0	0
Total	41,676	29,649
Unrealized Losses
Less than Twelve Months	(4,681)	(209)
More than Twelve Months	0	0
Total	(4,681)	(209)
Residential mortgage-backed securities
Fair Value
Less than Twelve Months	688,282	371,256
More than Twelve Months	39,143	25,960
Total	727,425	397,216
Unrealized Losses
Less than Twelve Months	(31,427)	(4,770)
More than Twelve Months	(3,212)	(993)
Total	(34,639)	(5,763)
Corporate and other debt securities
Fair Value
Less than Twelve Months	74,665	59,039
More than Twelve Months	0	0
Total	74,665	59,039
Unrealized Losses
Less than Twelve Months	(3,386)	(556)
More than Twelve Months	0	0
Total	$ (3,386)	$ (556)

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Investment Securities - Contractual Maturities of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized Cost
Due in one year	$ 11,305
Due after one year through five years	23,241
Due after five years through ten years	103,691
Due after ten years	88,305
Residential mortgage-backed securities	829,222
Amortized Cost	1,055,764	$ 1,116,091
Fair Value
Due in one year	11,303
Due after one year through five years	23,375
Due after five years through ten years	102,991
Due after ten years	81,811
Residential mortgage-backed securities	795,554
Total	$ 1,015,034	$ 1,128,809

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Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	$ 3,073,205	$ 2,668,697
Gross Unrealized Gains	5,228	25,980
Gross Unrealized Losses	(164,582)	(34,072)
Fair Value	2,913,851	2,660,605
U.S. Treasury securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	67,401	67,558
Gross Unrealized Gains	1,531	4,103
Gross Unrealized Losses	0	0
Fair Value	68,932	71,661
U.S. government agency securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	5,572	6,265
Gross Unrealized Gains	0	113
Gross Unrealized Losses	(119)	0
Fair Value	5,453	6,378
Obligations of states and state agencies
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	132,017	141,015
Gross Unrealized Gains	648	3,065
Gross Unrealized Losses	(1,054)	(312)
Fair Value	131,611	143,768
Municipal bonds
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	187,143	196,947
Gross Unrealized Gains	871	3,536
Gross Unrealized Losses	(1,604)	(87)
Fair Value	186,410	200,396
Obligations of states and political subdivisions
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	319,160	337,962
Gross Unrealized Gains	1,519	6,601
Gross Unrealized Losses	(2,658)	(399)
Fair Value	318,021	344,164
Residential mortgage-backed securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	2,594,295	2,166,142
Gross Unrealized Gains	1,993	14,599
Gross Unrealized Losses	(155,790)	(28,440)
Fair Value	2,440,498	2,152,301
Trust preferred securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	37,027	37,020
Gross Unrealized Gains	4	5
Gross Unrealized Losses	(5,298)	(5,109)
Fair Value	31,733	31,916
Corporate and other debt securities
Schedule of Held-to-maturity Securities [Line Items]
Amortized Cost	49,750	53,750
Gross Unrealized Gains	181	559
Gross Unrealized Losses	(717)	(124)
Fair Value	$ 49,214	$ 54,185

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Investment Securities - Age of Unrealized Losses and Fair Value of Related Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Fair Value
Less than Twelve Months	$ 1,893,052	$ 1,440,435
More than Twelve Months	570,776	242,949
Total	2,463,828	1,683,384
Unrealized Losses
Less than Twelve Months	(108,672)	(22,830)
More than Twelve Months	(55,910)	(11,242)
Total	(164,582)	(34,072)
U.S. government agency securities
Fair Value
Less than Twelve Months	4,092
More than Twelve Months	0
Total	4,092
Unrealized Losses
Less than Twelve Months	(119)
More than Twelve Months	0
Total	(119)	0
Obligations of states and state agencies
Fair Value
Less than Twelve Months	38,979	17,000
More than Twelve Months	5,317	5,517
Total	44,296	22,517
Unrealized Losses
Less than Twelve Months	(815)	(254)
More than Twelve Months	(239)	(58)
Total	(1,054)	(312)
Municipal bonds
Fair Value
Less than Twelve Months	25,255	9,403
More than Twelve Months	1,305	0
Total	26,560	9,403
Unrealized Losses
Less than Twelve Months	(1,514)	(87)
More than Twelve Months	(90)	0
Total	(1,604)	(87)
Obligations of states and political subdivisions
Fair Value
Less than Twelve Months	64,234	26,403
More than Twelve Months	6,622	5,517
Total	70,856	31,920
Unrealized Losses
Less than Twelve Months	(2,329)	(341)
More than Twelve Months	(329)	(58)
Total	(2,658)	(399)
Residential mortgage-backed securities
Fair Value
Less than Twelve Months	1,786,943	1,381,405
More than Twelve Months	533,425	206,520
Total	2,320,368	1,587,925
Unrealized Losses
Less than Twelve Months	(105,507)	(22,365)
More than Twelve Months	(50,283)	(6,075)
Total	(155,790)	(28,440)
Trust preferred securities
Fair Value
Less than Twelve Months	0	0
More than Twelve Months	30,729	30,912
Total	30,729	30,912
Unrealized Losses
Less than Twelve Months	0	0
More than Twelve Months	(5,298)	(5,109)
Total	(5,298)	(5,109)
Corporate and other debt securities
Fair Value
Less than Twelve Months	37,783	32,627
More than Twelve Months	0	0
Total	37,783	32,627
Unrealized Losses
Less than Twelve Months	(717)	(124)
More than Twelve Months	0	0
Total	$ (717)	$ (124)

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Investment Securities - Contractual Maturities of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Amortized Cost
Due in one year	$ 39,603
Due after one year through five years	215,490
Due after five years through ten years	46,097
Due after ten years	177,720
Residential mortgage-backed securities	2,594,295
Amortized Cost	3,073,205	$ 2,668,697
Fair Value
Due in one year	39,663
Due after one year through five years	217,668
Due after five years through ten years	45,919
Due after ten years	170,103
Residential mortgage-backed securities	2,440,498
Total	$ 2,913,851	$ 2,660,605

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Investment Securities - Amortized Cost of Debt Securities Held to Maturity by External Credit Rating (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	$ 3,073,205	$ 2,668,697
U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	67,401	67,558
U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,572	6,265
Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	132,017	141,015
Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	187,143	196,947
Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	319,160	337,962
Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	2,594,295	2,166,142
Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	37,027	37,020
Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	49,750	53,750
AAA/AA/A Rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	2,915,441	2,509,187
AAA/AA/A Rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	67,401	67,558
AAA/AA/A Rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,572	6,265
AAA/AA/A Rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	110,710	118,368
AAA/AA/A Rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	135,463	148,854
AAA/AA/A Rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	246,173	267,222
AAA/AA/A Rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	2,594,295	2,166,142
AAA/AA/A Rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
AAA/AA/A Rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	2,000	2,000
BBB rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	6,000	6,000
BBB rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
BBB rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	6,000	6,000
Non-investment grade rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,556	5,576
Non-investment grade rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,556	5,576
Non-investment grade rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	5,556	5,576
Non-investment grade rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-investment grade rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	146,208	147,934
Non-rated | U.S. Treasury securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated | U.S. government agency securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated | Obligations of states and state agencies
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	15,751	17,071
Non-rated | Municipal bonds
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	51,680	48,093
Non-rated | Obligations of states and political subdivisions
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	67,431	65,164
Non-rated | Residential mortgage-backed securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	0	0
Non-rated | Trust preferred securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	37,027	37,020
Non-rated | Corporate and other debt securities
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items]
Amortized cost of held to maturity debt securities	$ 41,750	$ 45,750

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Loans and Allowance for Credit Losses for Loans - Loan Portfolio (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 35,364,405	$ 34,153,657
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,791,390	5,847,551
Loans, deferred income, PPP	5,900	12,100
Commercial and industrial | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,587,781	5,411,601
Commercial and industrial | Commercial and industrial PPP loans
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	203,609	435,950
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	21,937,744	20,790,066
Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	19,763,202	18,935,486
Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,174,542	1,854,580
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,691,935	4,545,064
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,943,336	2,970,976
Consumer | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	393,538	400,779
Consumer | Automobile
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	1,552,928	1,570,036
Consumer | Other consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 996,870	$ 1,000,161

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Loans and Allowance for Credit Losses for Loans - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Non covered loans net of unearned discount and deferred loan fees	$ 62,000,000		$ 78,500,000
Accrued interest	87,600,000		83,700,000
Sales of loans	$ 0	$ 0
Number of consecutive months for performing restructured loans to be put on accrual status	6 months
TDRs not reported as non-accrual loans	$ 56,500,000		71,300,000
Non-performing TDRs	104,700,000		117,200,000
Specific reserves for loan losses	7,800,000	3,400,000
Loan charge-offs related to loans modified as TDRs	0	$ 5,100,000
Amount from modified loans	23,000,000		27,900,000
Other real estate owned	1,000,000		2,300,000
Residential real estate properties
Accounts, Notes, Loans and Financing Receivable [Line Items]
Other real estate owned	0		0
In formal foreclosure proceedings
Accounts, Notes, Loans and Financing Receivable [Line Items]
Residential mortgage and consumer loans secured by residential real estate properties	$ 2,800,000		$ 2,500,000

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Loans and Allowance for Credit Losses for Loans - Past Due, Non-Accrual and Current Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Past Due [Line Items]
Loans	$ 35,364,405	$ 34,153,657
Non-Accrual Loans	230,458	240,216
Non-Accrual Loans Without Allowance for Loan Losses	93,762	100,190
Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	323,245	296,080
30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	54,366	40,889
60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	27,014	12,204
90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	11,407	2,771
Current Loans
Financing Receivable, Past Due [Line Items]
Loans	35,041,160	33,857,577
Commercial and industrial
Financing Receivable, Past Due [Line Items]
Loans	5,791,390	5,847,551
Non-Accrual Loans	96,631	99,918
Non-Accrual Loans Without Allowance for Loan Losses	8,341	9,066
Commercial and industrial | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	127,076	115,778
Commercial and industrial | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	6,723	6,717
Commercial and industrial | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	14,461	7,870
Commercial and industrial | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	9,261	1,273
Commercial and industrial | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	5,664,314	5,731,773
Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans	21,937,744	20,790,066
Non-Accrual Loans	96,798	101,233
Non-Accrual Loans Without Allowance for Loan Losses	66,191	70,719
Commercial real estate | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	138,752	117,627
Commercial real estate | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	32,515	16,362
Commercial real estate | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	9,439	0
Commercial real estate | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	32
Commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	21,798,992	20,672,439
Commercial real estate | Commercial real estate
Financing Receivable, Past Due [Line Items]
Loans	19,763,202	18,935,486
Non-Accrual Loans	79,180	83,592
Non-Accrual Loans Without Allowance for Loan Losses	66,191	70,719
Commercial real estate | Commercial real estate | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	116,301	98,045
Commercial real estate | Commercial real estate | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	30,807	14,421
Commercial real estate | Commercial real estate | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	6,314	0
Commercial real estate | Commercial real estate | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	32
Commercial real estate | Commercial real estate | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	19,646,901	18,837,441
Commercial real estate | Construction
Financing Receivable, Past Due [Line Items]
Loans	2,174,542	1,854,580
Non-Accrual Loans	17,618	17,641
Non-Accrual Loans Without Allowance for Loan Losses	0	0
Commercial real estate | Construction | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	22,451	19,582
Commercial real estate | Construction | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	1,708	1,941
Commercial real estate | Construction | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	3,125	0
Commercial real estate | Construction | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	0
Commercial real estate | Construction | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	2,152,091	1,834,998
Residential mortgage
Financing Receivable, Past Due [Line Items]
Loans	4,691,935	4,545,064
Non-Accrual Loans	33,275	35,207
Non-Accrual Loans Without Allowance for Loan Losses	19,227	20,401
Residential mortgage | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	46,847	50,197
Residential mortgage | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	9,266	10,999
Residential mortgage | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	2,560	3,314
Residential mortgage | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	1,746	677
Residential mortgage | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	4,645,088	4,494,867
Consumer
Financing Receivable, Past Due [Line Items]
Loans	2,943,336	2,970,976
Non-Accrual Loans	3,754	3,858
Non-Accrual Loans Without Allowance for Loan Losses	3	4
Consumer | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	10,570	12,478
Consumer | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	5,862	6,811
Consumer | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	554	1,020
Consumer | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	400	789
Consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	2,932,766	2,958,498
Consumer | Home equity
Financing Receivable, Past Due [Line Items]
Loans	393,538	400,779
Non-Accrual Loans	3,382	3,517
Non-Accrual Loans Without Allowance for Loan Losses	3	4
Consumer | Home equity | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	3,462	3,857
Consumer | Home equity | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	38	242
Consumer | Home equity | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	42	98
Consumer | Home equity | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	0	0
Consumer | Home equity | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	390,076	396,922
Consumer | Automobile
Financing Receivable, Past Due [Line Items]
Loans	1,552,928	1,570,036
Non-Accrual Loans	273	240
Non-Accrual Loans Without Allowance for Loan Losses	0	0
Consumer | Automobile | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	5,422	7,558
Consumer | Automobile | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	4,687	6,391
Consumer | Automobile | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	458	656
Consumer | Automobile | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	4	271
Consumer | Automobile | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	1,547,506	1,562,478
Consumer | Other consumer
Financing Receivable, Past Due [Line Items]
Loans	996,870	1,000,161
Non-Accrual Loans	99	101
Non-Accrual Loans Without Allowance for Loan Losses	0	0
Consumer | Other consumer | Financial Asset, Past Due
Financing Receivable, Past Due [Line Items]
Loans	1,686	1,063
Consumer | Other consumer | 30-59  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	1,137	178
Consumer | Other consumer | 60-89  Days  Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	54	266
Consumer | Other consumer | 90 Days or More Past Due Loans
Financing Receivable, Past Due [Line Items]
Loans	396	518
Consumer | Other consumer | Current Loans
Financing Receivable, Past Due [Line Items]
Loans	$ 995,184	$ 999,098

XML

Loans and Allowance for Credit Losses for Loans - Internal Loan Classification Risk by Loan Portfolio Class by Origination Year (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 35,364,405	$ 34,153,657
Commercial and industrial
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	337,285	1,575,480
Year two, fiscal year before current fiscal year	1,231,144	749,183
Year three, two years before current fiscal year	711,939	470,111
Year four, three years before current fiscal year	423,750	383,968
Year five, four years before current fiscal year	341,726	162,744
More than five years before current fiscal year	542,481	415,369
Revolving Loans Amortized Cost Basis	2,202,736	2,090,300
Revolving Loans Converted to Term Loans	329	396
Total	5,791,390	5,847,551
Commercial and industrial | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	337,060	1,563,050
Year two, fiscal year before current fiscal year	1,224,531	743,165
Year three, two years before current fiscal year	705,495	461,022
Year four, three years before current fiscal year	414,559	362,748
Year five, four years before current fiscal year	327,590	143,753
More than five years before current fiscal year	443,359	337,713
Revolving Loans Amortized Cost Basis	2,094,405	1,968,513
Revolving Loans Converted to Term Loans	208	247
Total	5,547,207	5,580,211
Commercial and industrial | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	197	4,182
Year two, fiscal year before current fiscal year	4,469	1,195
Year three, two years before current fiscal year	716	3,217
Year four, three years before current fiscal year	3,087	14,143
Year five, four years before current fiscal year	13,566	1,726
More than five years before current fiscal year	9,848	9,869
Revolving Loans Amortized Cost Basis	97,834	102,145
Revolving Loans Converted to Term Loans	11	40
Total	129,728	136,517
Commercial and industrial | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	28	8,248
Year two, fiscal year before current fiscal year	2,144	4,823
Year three, two years before current fiscal year	5,728	3,139
Year four, three years before current fiscal year	3,387	7,077
Year five, four years before current fiscal year	570	910
More than five years before current fiscal year	6,286	408
Revolving Loans Amortized Cost Basis	10,497	19,642
Revolving Loans Converted to Term Loans	110	109
Total	28,750	44,356
Commercial and industrial | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	0
Year two, fiscal year before current fiscal year	0	0
Year three, two years before current fiscal year	0	2,733
Year four, three years before current fiscal year	2,717	0
Year five, four years before current fiscal year	0	16,355
More than five years before current fiscal year	82,988	67,379
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans	0	0
Total	85,705	86,467
Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Total	21,937,744	20,790,066
Commercial real estate | Commercial real estate
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	1,304,920	4,526,352
Year two, fiscal year before current fiscal year	4,538,052	3,067,814
Year three, two years before current fiscal year	3,184,198	2,778,520
Year four, three years before current fiscal year	2,633,999	1,820,340
Year five, four years before current fiscal year	1,781,081	1,611,334
More than five years before current fiscal year	6,086,295	4,869,778
Revolving Loans Amortized Cost Basis	221,371	247,968
Revolving Loans Converted to Term Loans	13,286	13,380
Total	19,763,202	18,935,486
Commercial real estate | Commercial real estate | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	1,301,030	4,517,917
Year two, fiscal year before current fiscal year	4,505,671	2,983,140
Year three, two years before current fiscal year	3,074,999	2,702,580
Year four, three years before current fiscal year	2,564,818	1,734,922
Year five, four years before current fiscal year	1,654,197	1,474,770
More than five years before current fiscal year	5,685,062	4,557,011
Revolving Loans Amortized Cost Basis	203,527	195,851
Revolving Loans Converted to Term Loans	13,286	13,380
Total	19,002,590	18,179,571
Commercial real estate | Commercial real estate | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	3,890	7,700
Year two, fiscal year before current fiscal year	22,188	50,019
Year three, two years before current fiscal year	69,992	46,911
Year four, three years before current fiscal year	32,837	44,187
Year five, four years before current fiscal year	84,259	65,623
More than five years before current fiscal year	176,080	143,540
Revolving Loans Amortized Cost Basis	9,684	50,168
Revolving Loans Converted to Term Loans	0	0
Total	398,930	408,148
Commercial real estate | Commercial real estate | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	735
Year two, fiscal year before current fiscal year	10,193	34,655
Year three, two years before current fiscal year	39,207	29,029
Year four, three years before current fiscal year	36,344	41,231
Year five, four years before current fiscal year	42,625	70,941
More than five years before current fiscal year	224,972	169,041
Revolving Loans Amortized Cost Basis	8,160	1,949
Revolving Loans Converted to Term Loans	0	0
Total	361,501	347,581
Commercial real estate | Commercial real estate | Doubtful
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	0
Year two, fiscal year before current fiscal year	0	0
Year three, two years before current fiscal year	0	0
Year four, three years before current fiscal year	0	0
Year five, four years before current fiscal year	0	0
More than five years before current fiscal year	181	186
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans	0	0
Total	181	186
Commercial real estate | Construction
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	31,645	278,427
Year two, fiscal year before current fiscal year	313,251	98,628
Year three, two years before current fiscal year	88,262	49,570
Year four, three years before current fiscal year	45,546	33,027
Year five, four years before current fiscal year	13,381	6,061
More than five years before current fiscal year	35,559	46,261
Revolving Loans Amortized Cost Basis	1,646,898	1,342,606
Revolving Loans Converted to Term Loans	0	0
Total	2,174,542	1,854,580
Commercial real estate | Construction | Pass
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	31,645	274,097
Year two, fiscal year before current fiscal year	313,251	98,609
Year three, two years before current fiscal year	88,262	48,555
Year four, three years before current fiscal year	44,544	32,781
Year five, four years before current fiscal year	13,381	6,061
More than five years before current fiscal year	17,718	28,419
Revolving Loans Amortized Cost Basis	1,623,723	1,313,555
Revolving Loans Converted to Term Loans	0	0
Total	2,132,524	1,802,077
Commercial real estate | Construction | Special Mention
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	4,131
Year two, fiscal year before current fiscal year	0	0
Year three, two years before current fiscal year	0	1,009
Year four, three years before current fiscal year	1,001	0
Year five, four years before current fiscal year	0	0
More than five years before current fiscal year	0	0
Revolving Loans Amortized Cost Basis	21,467	18,449
Revolving Loans Converted to Term Loans	0	0
Total	22,468	23,589
Commercial real estate | Construction | Substandard
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	199
Year two, fiscal year before current fiscal year	0	19
Year three, two years before current fiscal year	0	6
Year four, three years before current fiscal year	1	246
Year five, four years before current fiscal year	0	0
More than five years before current fiscal year	17,841	17,842
Revolving Loans Amortized Cost Basis	1,708	10,602
Revolving Loans Converted to Term Loans	0	0
Total	$ 19,550	$ 28,914

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Loans and Allowance for Credit Losses for Loans - Amortized Cost In Those Loan Classes Based on Payment Activity by Origination Year (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Financing Receivable, Credit Quality Indicator [Line Items]
Total	$ 35,364,405	$ 34,153,657
90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	11,407	2,771
Residential mortgage
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	394,913	1,448,602
Year two, fiscal year before current fiscal year	1,487,234	635,888
Year three, two years before current fiscal year	603,634	575,538
Year four, three years before current fiscal year	565,297	427,208
Year five, four years before current fiscal year	349,901	370,958
More than five years before current fiscal year	1,221,498	1,016,528
Revolving Loans Amortized Cost Basis	69,458	70,342
Revolving Loans Converted to Term Loans	0	0
Total	4,691,935	4,545,064
Residential mortgage | 90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	1,746	677
Residential mortgage | Performing
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	394,913	1,448,602
Year two, fiscal year before current fiscal year	1,487,234	635,531
Year three, two years before current fiscal year	603,092	572,911
Year four, three years before current fiscal year	563,634	425,152
Year five, four years before current fiscal year	345,807	368,164
More than five years before current fiscal year	1,220,733	1,014,190
Revolving Loans Amortized Cost Basis	69,458	70,342
Revolving Loans Converted to Term Loans	0	0
Total	4,684,871	4,534,892
Residential mortgage | Non-Performing Loans | 90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	0
Year two, fiscal year before current fiscal year	0	357
Year three, two years before current fiscal year	542	2,627
Year four, three years before current fiscal year	1,663	2,056
Year five, four years before current fiscal year	4,094	2,794
More than five years before current fiscal year	765	2,338
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans	0	0
Total	7,064	10,172
Consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	155,298	752,371
Year two, fiscal year before current fiscal year	696,205	322,296
Year three, two years before current fiscal year	291,578	292,368
Year four, three years before current fiscal year	257,981	172,014
Year five, four years before current fiscal year	147,755	79,202
More than five years before current fiscal year	98,369	43,367
Revolving Loans Amortized Cost Basis	1,254,994	1,265,942
Revolving Loans Converted to Term Loans	41,156	43,416
Total	2,943,336	2,970,976
Consumer | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	5,735	13,847
Year two, fiscal year before current fiscal year	13,431	5,723
Year three, two years before current fiscal year	5,258	6,994
Year four, three years before current fiscal year	6,173	7,384
Year five, four years before current fiscal year	6,486	5,359
More than five years before current fiscal year	16,777	13,632
Revolving Loans Amortized Cost Basis	298,522	304,424
Revolving Loans Converted to Term Loans	41,156	43,416
Total	393,538	400,779
Consumer | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	142,530	735,575
Year two, fiscal year before current fiscal year	678,559	309,856
Year three, two years before current fiscal year	279,952	278,906
Year four, three years before current fiscal year	245,389	157,613
Year five, four years before current fiscal year	134,433	72,834
More than five years before current fiscal year	72,065	15,252
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans	0	0
Total	1,552,928	1,570,036
Consumer | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	7,033	2,949
Year two, fiscal year before current fiscal year	4,215	6,717
Year three, two years before current fiscal year	6,368	6,468
Year four, three years before current fiscal year	6,419	7,017
Year five, four years before current fiscal year	6,836	1,009
More than five years before current fiscal year	9,527	14,483
Revolving Loans Amortized Cost Basis	956,472	961,518
Revolving Loans Converted to Term Loans	0	0
Total	996,870	1,000,161
Consumer | 90 Days or More Past Due Loans
Financing Receivable, Credit Quality Indicator [Line Items]
Total	400	789
Consumer | 90 Days or More Past Due Loans | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Total	0	0
Consumer | 90 Days or More Past Due Loans | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Total	4	271
Consumer | 90 Days or More Past Due Loans | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Total	396	518
Consumer | Performing | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	5,735	13,847
Year two, fiscal year before current fiscal year	13,431	5,723
Year three, two years before current fiscal year	5,258	6,994
Year four, three years before current fiscal year	6,173	7,384
Year five, four years before current fiscal year	6,486	5,359
More than five years before current fiscal year	16,775	13,597
Revolving Loans Amortized Cost Basis	298,122	303,888
Revolving Loans Converted to Term Loans	40,566	42,822
Total	392,546	399,614
Consumer | Performing | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	142,530	735,446
Year two, fiscal year before current fiscal year	678,425	309,856
Year three, two years before current fiscal year	279,849	278,828
Year four, three years before current fiscal year	245,235	157,450
Year five, four years before current fiscal year	134,274	72,753
More than five years before current fiscal year	71,935	15,171
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans	0	0
Total	1,552,248	1,569,504
Consumer | Performing | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	7,033	2,949
Year two, fiscal year before current fiscal year	4,215	6,717
Year three, two years before current fiscal year	6,368	6,468
Year four, three years before current fiscal year	6,419	7,017
Year five, four years before current fiscal year	6,836	1,009
More than five years before current fiscal year	9,527	14,483
Revolving Loans Amortized Cost Basis	956,468	961,027
Revolving Loans Converted to Term Loans	0	0
Total	996,866	999,670
Consumer | Non-Performing Loans | 90 Days or More Past Due Loans | Home equity
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	0
Year two, fiscal year before current fiscal year	0	0
Year three, two years before current fiscal year	0	0
Year four, three years before current fiscal year	0	0
Year five, four years before current fiscal year	0	0
More than five years before current fiscal year	2	35
Revolving Loans Amortized Cost Basis	400	536
Revolving Loans Converted to Term Loans	590	594
Total	992	1,165
Consumer | Non-Performing Loans | 90 Days or More Past Due Loans | Automobile
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	129
Year two, fiscal year before current fiscal year	134	0
Year three, two years before current fiscal year	103	78
Year four, three years before current fiscal year	154	163
Year five, four years before current fiscal year	159	81
More than five years before current fiscal year	130	81
Revolving Loans Amortized Cost Basis	0	0
Revolving Loans Converted to Term Loans	0	0
Total	680	532
Consumer | Non-Performing Loans | 90 Days or More Past Due Loans | Other consumer
Financing Receivable, Credit Quality Indicator [Line Items]
Year one, current fiscal year	0	0
Year two, fiscal year before current fiscal year	0	0
Year three, two years before current fiscal year	0	0
Year four, three years before current fiscal year	0	0
Year five, four years before current fiscal year	0	0
More than five years before current fiscal year	0	0
Revolving Loans Amortized Cost Basis	4	491
Revolving Loans Converted to Term Loans	0	0
Total	$ 4	$ 491

XML

Loans and Allowance for Credit Losses for Loans - Pre-Modification and Post-Modification (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($) contract	Mar. 31, 2021 USD ($) contract
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	14	14
Pre-Modification Outstanding Recorded Investment	$ 15,065	$ 19,639
Post-Modification Outstanding Recorded Investment	$ 15,030	$ 19,178
Days past due to place on non-accrual status	90 days	90 days
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract	4	19
Recorded Investment	$ 19,449	$ 13,039
Commercial and industrial
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	11	5
Pre-Modification Outstanding Recorded Investment	$ 9,684	$ 13,744
Post-Modification Outstanding Recorded Investment	$ 9,662	$ 13,307
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract	2	16
Recorded Investment	$ 1,850	$ 12,384
Commercial Real Estate | Commercial real estate
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	2	2
Pre-Modification Outstanding Recorded Investment	$ 5,260	$ 4,197
Post-Modification Outstanding Recorded Investment	$ 5,251	$ 4,185
Commercial Real Estate | Construction
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract	2	0
Recorded Investment	$ 17,599	$ 0
Residential mortgage
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	1	6
Pre-Modification Outstanding Recorded Investment	$ 121	$ 1,528
Post-Modification Outstanding Recorded Investment	$ 117	$ 1,518
Number of contracts, troubled debt restructurings subsequently defaulted (in contract) | contract	0	3
Recorded Investment	$ 0	$ 655
Consumer
Troubled Debt Restructurings
Number of contracts, troubled debt restructurings (in contract) | contract	0	1
Pre-Modification Outstanding Recorded Investment	$ 0	$ 170
Post-Modification Outstanding Recorded Investment	$ 0	$ 168

XML

Loans and Allowance for Credit Losses for Loans - Summary of Collateral Dependent Loans (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 35,364,405	$ 34,153,657
Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	5,791,390	5,847,551
Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	21,937,744	20,790,066
Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	19,763,202	18,935,486
Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,174,542	1,854,580
Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	4,691,935	4,545,064
Consumer
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	2,943,336	2,970,976
Consumer | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	393,538	400,779
Collateral Pledged
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	230,805	241,258
Collateral Pledged | Commercial and industrial
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	93,389	95,335
Collateral Pledged | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	111,709	110,174
Collateral Pledged | Commercial real estate | Commercial real estate
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	92,402	110,174
Collateral Pledged | Commercial real estate | Construction
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	19,307	0
Collateral Pledged | Residential mortgage
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	25,704	35,745
Collateral Pledged | Consumer | Home equity
Accounts, Notes, Loans and Financing Receivable [Line Items]
Loans	$ 3	$ 4

XML

Loans and Allowance for Credit Losses for Loans - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Receivables [Abstract]
Allowance for loan losses	$ 362,510	$ 359,202	$ 342,880	$ 340,243
Allowance for unfunded credit commitments	16,742	16,500
Total allowance for credit losses for loans	$ 379,252	$ 375,702

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Loans and Allowance for Credit Losses for Loans - Summary of Provision for Credit Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Receivables [Abstract]
Provision (credit) for loan losses	$ 3,258	$ 8,692
Provision for unfunded credit commitments	242	322
Total provision for credit losses for loans	$ 3,500	$ 9,014

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Loans and Allowance for Credit Losses for Loans - Summary of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Allowance for loan losses:
Beginning balance	$ 359,202	$ 340,243
Loans charged-off	(2,595)	(8,800)
Charged-off loans recovered	2,645	2,745
Net (charge-offs) recoveries	50	(6,055)
Provision (credit) for loan losses	3,258	8,692
Ending balance	362,510	342,880
Commercial and industrial
Allowance for loan losses:
Beginning balance	103,090	131,070
Loans charged-off	(1,571)	(7,142)
Charged-off loans recovered	824	1,589
Net (charge-offs) recoveries	(747)	(5,553)
Provision (credit) for loan losses	(1,140)	891
Ending balance	101,203	126,408
Commercial Real Estate
Allowance for loan losses:
Beginning balance	217,490	164,113
Loans charged-off	(173)	(382)
Charged-off loans recovered	107	69
Net (charge-offs) recoveries	(66)	(313)
Provision (credit) for loan losses	2,525	10,436
Ending balance	219,949	174,236
Residential Mortgage
Allowance for loan losses:
Beginning balance	25,120	28,873
Loans charged-off	(26)	(138)
Charged-off loans recovered	457	157
Net (charge-offs) recoveries	431	19
Provision (credit) for loan losses	2,638	(1,720)
Ending balance	28,189	27,172
Consumer
Allowance for loan losses:
Beginning balance	13,502	16,187
Loans charged-off	(825)	(1,138)
Charged-off loans recovered	1,257	930
Net (charge-offs) recoveries	432	(208)
Provision (credit) for loan losses	(765)	(915)
Ending balance	$ 13,169	$ 15,064

XML

Loans and Allowance for Credit Losses for Loans - Summary of Allocation of Allowance for Loan Losses and Related Loans by Loan Portfolio Segment Disaggregated Based on Allowance Measurement Methodology (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021	Mar. 31, 2021	Dec. 31, 2020
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	$ 69,623	$ 71,496
Collectively evaluated for credit losses	292,887	287,706
Total	362,510	359,202	$ 342,880	$ 340,243
Individually evaluated for credit losses	268,366	298,795
Collectively evaluated for credit losses	35,096,039	33,854,862
Total	35,364,405	34,153,657
Commercial and industrial
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	62,500	64,359
Collectively evaluated for credit losses	38,703	38,731
Total	101,203	103,090	126,408	131,070
Individually evaluated for credit losses	103,534	119,760
Collectively evaluated for credit losses	5,687,856	5,727,791
Total	5,791,390	5,847,551
Commercial Real Estate
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	6,303	6,277
Collectively evaluated for credit losses	213,646	211,213
Total	219,949	217,490	174,236	164,113
Individually evaluated for credit losses	128,583	134,135
Collectively evaluated for credit losses	21,809,161	20,655,931
Total	21,937,744	20,790,066
Residential Mortgage
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	641	470
Collectively evaluated for credit losses	27,548	24,650
Total	28,189	25,120	27,172	28,873
Individually evaluated for credit losses	34,696	42,469
Collectively evaluated for credit losses	4,657,239	4,502,595
Total	4,691,935	4,545,064
Consumer
Financing Receivable, Allowance for Credit Loss [Line Items]
Individually evaluated for credit losses	179	390
Collectively evaluated for credit losses	12,990	13,112
Total	13,169	13,502	$ 15,064	$ 16,187
Individually evaluated for credit losses	1,553	2,431
Collectively evaluated for credit losses	2,941,783	2,968,545
Total	$ 2,943,336	$ 2,970,976

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Goodwill and Other Intangible Assets - Carrying Amount of Goodwill (Details) $ in Thousands	3 Months Ended
	Mar. 31, 2022 USD ($)
Goodwill [Roll Forward]
Goodwill, beginning balance	$ 1,459,008
Goodwill from business combinations	9,346
Goodwill, ending balance	1,468,354
Consumer Lending
Goodwill [Roll Forward]
Goodwill, beginning balance	308,248
Goodwill from business combinations	85
Goodwill, ending balance	308,333
Commercial Lending
Goodwill [Roll Forward]
Goodwill, beginning balance	896,015
Goodwill from business combinations	4,866
Goodwill, ending balance	900,881
Investment Management
Goodwill [Roll Forward]
Goodwill, beginning balance	220,430
Goodwill from business combinations	25
Goodwill, ending balance	220,455
Wealth Management | Consumer Lending
Goodwill [Roll Forward]
Goodwill, beginning balance	34,315
Goodwill from business combinations	4,370
Goodwill, ending balance	$ 38,685

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Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($)	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021	Feb. 01, 2022
Finite-Lived Intangible Assets [Line Items]
Goodwill from business combinations	$ 9,346,000
Goodwill impairment	0	$ 0
Net impairment (net recovery)	0	(791,000)
Amortization of other intangible assets	4,437,000	6,006,000
Core Deposits and Other
Finite-Lived Intangible Assets [Line Items]
Impairment of core deposits and other intangibles	$ 0	$ 0
Core Deposits
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period, years	9 years 2 months 12 days
Other
Finite-Lived Intangible Assets [Line Items]
Weighted average amortization period, years	4 years 9 months 18 days
Westchester Bank Holding Corporation
Finite-Lived Intangible Assets [Line Items]
Goodwill from business combinations	$ 5,000,000
Landmark Insurance of the Palm Beaches
Finite-Lived Intangible Assets [Line Items]
Other intangible assets			$ 6,200,000
Consumer Lending
Finite-Lived Intangible Assets [Line Items]
Goodwill from business combinations	85,000
Wealth Management | Consumer Lending
Finite-Lived Intangible Assets [Line Items]
Goodwill from business combinations	$ 4,370,000

XML

Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	$ 238,952	$ 230,018
Accumulated Amortization	(164,068)	(159,632)
Net Intangible Assets	74,884	70,386
Loan servicing rights
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	117,363	114,636
Accumulated Amortization	(92,133)	(90,951)
Net Intangible Assets	25,230	23,685
Core deposits
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	109,290	109,290
Accumulated Amortization	(68,373)	(65,488)
Net Intangible Assets	40,917	43,802
Other
Finite-Lived Intangible Assets [Line Items]
Gross Intangible Assets	12,299	6,092
Accumulated Amortization	(3,562)	(3,193)
Net Intangible Assets	$ 8,737	$ 2,899

XML

Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands	Mar. 31, 2022 USD ($)
Loan Servicing Rights
Finite-Lived Intangible Assets [Line Items]
2022	$ 2,660
2023	3,146
2024	2,733
2025	2,368
2026	2,039
Core Deposits
Finite-Lived Intangible Assets [Line Items]
2022	8,516
2023	9,510
2024	7,740
2025	5,970
2026	4,225
Other
Finite-Lived Intangible Assets [Line Items]
2022	1,372
2023	1,600
2024	1,401
2025	1,202
2026	$ 998

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Stock-Based Compensation (Details) - USD ($) $ / shares in Units, shares in Thousands, $ in Millions	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Stock-based compensation expense (in USD)	$ 7.3	$ 5.5
Stock-based compensation amortization expense unrecognized (in USD)	$ 38.4
Average remaining vesting period (in years)	2 years 2 months 15 days
Time-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted during the period (in shares)	1,200	1,100
Award vesting period (in years)	3 years
Average grant date fair value (usd per share)	$ 14.05	$ 11.75
Performance-Based Restricted Stock Units
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Award vesting period (in years)	3 years
Average grant date fair value (usd per share)	$ 14.82	$ 12.36
Performance-Based Restricted Stock Units | Executive Officer
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares granted during the period (in shares)	567	604
2021 Plan | Common Stock
Share-based Compensation Arrangement by Share-based Payment Award [Line Items]
Number of shares available for grant (in shares)	6,100

XML

Derivative Instruments and Hedging Activities - Additional Information (Details)	3 Months Ended
	Mar. 31, 2022 USD ($) swap	Mar. 31, 2021 USD ($)	Dec. 31, 2021 USD ($)
Derivative [Line Items]
Aggregate fair value of net liability position	$ 0
Derivatives not designated as hedging instruments:
Derivative [Line Items]
Notional amount	$ 11,445,618,000		$ 10,613,888,000
Interest rate swaps
Derivative [Line Items]
Number of instruments held | swap	5
Notional amount	$ 500,000,000
Accumulated net after-tax losses related to effective cash flow hedges	728,000		1,300,000
Reclassified to interest expense	485,000
Interest rate swaps | Fair value hedge | Noninterest Income
Derivative [Line Items]
Fee income related to derivative interest rate swaps executed with commercial loan customers	$ 14,000,000	$ 6,200,000
Interest rate swaps | Derivatives not designated as hedging instruments:
Derivative [Line Items]
Number of instruments held | swap	25
Notional amount	$ 11,264,601,000		$ 10,301,460,000
Interest rate swaps | Derivatives not designated as hedging instruments: | Fair value hedge
Derivative [Line Items]
Number of instruments held | swap	2
Notional amount	$ 10,400,000
Interest rate swaps | Derivatives not designated as hedging instruments: | Risk Participation Agreement
Derivative [Line Items]
Notional amount	$ 245,600,000

XML

Derivative Instruments and Hedging Activities - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Interest rate swaps
Derivative [Line Items]
Other Assets	$ 0	$ 0
Other Liabilities	188,244	50,922
Interest rate swaps
Derivative [Line Items]
Notional Amount	500,000
Derivatives designated as hedging instruments:
Derivative [Line Items]
Notional Amount	500,000	1,000,000
Derivatives designated as hedging instruments: | Other Assets
Derivative [Line Items]
Other Assets	590	0
Derivatives designated as hedging instruments: | Other Liabilities
Derivative [Line Items]
Other Liabilities	16,634	3,645
Derivatives designated as hedging instruments: | Cash flow hedge interest rate swaps | Interest rate swaps
Derivative [Line Items]
Notional Amount	200,000	700,000
Derivatives designated as hedging instruments: | Cash flow hedge interest rate swaps | Interest rate swaps | Other Assets
Derivative [Line Items]
Other Assets	590	0
Derivatives designated as hedging instruments: | Cash flow hedge interest rate swaps | Interest rate swaps | Other Liabilities
Derivative [Line Items]
Other Liabilities	0	310
Derivatives designated as hedging instruments: | Fair value hedge | Interest rate swaps
Derivative [Line Items]
Notional Amount	300,000	300,000
Derivatives designated as hedging instruments: | Fair value hedge | Interest rate swaps | Other Assets
Derivative [Line Items]
Other Assets	0	0
Derivatives designated as hedging instruments: | Fair value hedge | Interest rate swaps | Other Liabilities
Derivative [Line Items]
Other Liabilities	16,634	3,335
Derivatives not designated as hedging instruments:
Derivative [Line Items]
Notional Amount	11,445,618	10,613,888
Derivatives not designated as hedging instruments: | Other Assets
Derivative [Line Items]
Other Assets	175,680	181,500
Derivatives not designated as hedging instruments: | Other Liabilities
Derivative [Line Items]
Other Liabilities	173,048	48,731
Derivatives not designated as hedging instruments: | Interest rate swaps
Derivative [Line Items]
Notional Amount	11,264,601	10,301,460
Derivatives not designated as hedging instruments: | Interest rate swaps | Other Assets
Derivative [Line Items]
Other Assets	172,393	181,012
Derivatives not designated as hedging instruments: | Interest rate swaps | Other Liabilities
Derivative [Line Items]
Other Liabilities	171,610	47,277
Derivatives not designated as hedging instruments: | Mortgage banking derivatives
Derivative [Line Items]
Notional Amount	181,017	312,428
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | Other Assets
Derivative [Line Items]
Other Assets	3,287	488
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | Other Liabilities
Derivative [Line Items]
Other Liabilities	1,438	$ 1,454
Derivatives not designated as hedging instruments: | Fair value hedge | Interest rate swaps
Derivative [Line Items]
Notional Amount	$ 10,400

XML

Derivative Instruments and Hedging Activities - Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items]
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$ (22,789)	$ (39,131)
Amount of gain recognized in other comprehensive income (loss)	320	177
Amounts Reclassified from Accumulated Other Comprehensive Loss
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items]
Amount of loss reclassified from accumulated other comprehensive loss to interest expense	$ (542)	$ (915)

XML

Derivative Instruments and Hedging Activities - Gains (Losses) on Interest Rate Derivatives Designated as Fair Value Hedges (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items]
Gain (loss) related to hedged loans	$ 14,696	$ 0
Fair value hedge | Interest expense | Derivative - interest rate swap:
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items]
Gain (loss) related to derivative interest rate swaps	530	0
Fair value hedge | Interest expense | Hedged item - subordinated debt | Derivatives designated as hedging instruments
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items]
Gain (loss) related to hedged loans	$ (530)	$ 0

XML

Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Hedges (Details) - Fair value hedge - Derivatives designated as hedging instruments: - Derivative - interest rate swap: $ in Thousands	Mar. 31, 2022 USD ($)
Derivative [Line Items]
Carrying Amount of the Hedged Liability	$ 282,443
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability	$ (17,557)

XML

Derivative Instruments and Hedging Activities - Net (Gains) Losses Related to Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense	$ (2,797)	$ (1,785)

XML

Balance Sheet Offsetting (Details) - Interest rate swaps - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Offsetting Assets
Gross Amounts Recognized	$ 172,983	$ 181,012
Gross Amounts Offset	0	0
Net Amounts Presented	172,983	181,012
Gross Amounts Not Offset, Financial Instruments	12,555	0
Gross Amounts Not Offset, Cash Collateral	117,289	0
Net Amount	43,139	181,012
Offsetting Liabilities
Gross Amounts Recognized	188,244	50,922
Gross Amounts Offset	0	0
Net Amounts Presented	188,244	50,922
Gross Amounts Not Offset, Financial Instruments	(12,555)	0
Gross Amounts Not Offset, Cash Collateral	(2,323)	(44,231)
Net Amount	$ 173,366	$ 6,691

XML

Tax Credit Investments - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands	Mar. 31, 2022	Dec. 31, 2021
Other Assets
Other Assets:
Affordable housing tax credit investments, net	$ 14,666	$ 15,343
Other tax credit investments, net	54,687	57,006
Total tax credit investments, net	69,353	72,349
Other Liabilities:
Other Liabilities:
Unfunded affordable housing tax credit commitments	1,360	1,360
Total unfunded tax credit commitments	$ 1,360	$ 1,360

XML

Tax Credit Investments - Income Statement Disclosures (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Components of Income Tax Expense:
Affordable housing tax credits and other tax benefits	$ 744	$ 897
Other tax credit investment credits and tax benefits	2,551	2,685
Total reduction in income tax expense	3,295	3,582
Non-Interest Expenses
Amortization of Tax Credit Investments:
Affordable housing tax credit investment losses	415	543
Affordable housing tax credit investment impairment losses	262	341
Other tax credit investment losses	309	173
Other tax credit investment impairment losses	1,910	1,687
Total amortization of tax credit investments recorded in non-interest expense	$ 2,896	$ 2,744

XML

Business Segments - Additional Information (Details) - segment	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting [Abstract]
Number of business segments	4	4

XML

Business Segments - Schedule of Financial Data for Business Segments (Details) - USD ($) $ in Thousands	3 Months Ended
	Mar. 31, 2022	Mar. 31, 2021
Segment Reporting Information [Line Items]
Average interest earning assets	$ 40,283,048	$ 37,386,219
Interest income	340,458	331,798
Interest expense	22,789	39,131
Net Interest Income	317,669	292,667
Provision for credit losses	3,557	8,656
Net Interest Income After Provision for Credit Losses	314,112	284,011
Non-interest income	39,270	31,233
Non-interest expense	197,340	160,213
Internal transfer expense (income)	0	0
Income Before Income Taxes	$ 156,042	$ 155,031
Return on average interest earning assets (pre-tax)	1.55%	1.66%
Consumer Lending | Operating Segments
Segment Reporting Information [Line Items]
Average interest earning assets	$ 7,638,942	$ 7,049,252
Interest income	59,459	60,845
Interest expense	3,207	6,415
Net Interest Income	56,252	54,430
Provision for credit losses	1,873	(2,635)
Net Interest Income After Provision for Credit Losses	54,379	57,065
Non-interest income	13,817	13,685
Non-interest expense	16,568	19,849
Internal transfer expense (income)	28,647	19,502
Income Before Income Taxes	$ 22,981	$ 31,399
Return on average interest earning assets (pre-tax)	1.20%	1.78%
Commercial Lending | Operating Segments
Segment Reporting Information [Line Items]
Average interest earning assets	$ 26,984,460	$ 25,533,227
Interest income	257,906	252,336
Interest expense	11,327	23,235
Net Interest Income	246,579	229,101
Provision for credit losses	1,627	11,676
Net Interest Income After Provision for Credit Losses	244,952	217,425
Non-interest income	16,880	7,713
Non-interest expense	25,085	25,531
Internal transfer expense (income)	99,916	70,555
Income Before Income Taxes	$ 136,831	$ 129,052
Return on average interest earning assets (pre-tax)	2.03%	2.02%
Investment Management | Operating Segments
Segment Reporting Information [Line Items]
Average interest earning assets	$ 5,659,646	$ 4,803,740
Interest income	23,787	19,509
Interest expense	2,376	4,371
Net Interest Income	21,411	15,138
Provision for credit losses	57	(385)
Net Interest Income After Provision for Credit Losses	21,354	15,523
Non-interest income	2,073	2,331
Non-interest expense	836	1,777
Internal transfer expense (income)	17,061	13,277
Income Before Income Taxes	$ 5,530	$ 2,800
Return on average interest earning assets (pre-tax)	0.39%	0.23%
Corporate and Other Adjustments | Corporate and Other Adjustments
Segment Reporting Information [Line Items]
Average interest earning assets	$ 0	$ 0
Interest income	(694)	(892)
Interest expense	5,879	5,110
Net Interest Income	(6,573)	(6,002)
Provision for credit losses	0	0
Net Interest Income After Provision for Credit Losses	(6,573)	(6,002)
Non-interest income	6,500	7,504
Non-interest expense	154,851	113,056
Internal transfer expense (income)	(145,624)	(103,334)
Income Before Income Taxes	$ (9,300)	$ (8,220)