v3.26.1
Borrowed Funds
 6 Months Ended
Jun. 30, 2026
Debt Disclosure [Abstract]  
Borrowed Funds Borrowed Funds
Short-Term Borrowings
Short-term borrowings at June 30, 2026 and December 31, 2025 consisted of the following:
June 30, 2026December 31, 2025
(in thousands)
FHLB advances$375,000 $— 
Securities sold under agreements to repurchase58,484 91,475 
Total short-term borrowings$433,484 $91,475 
The weighted average interest rate for short-term FHLB advances was 3.94 percent at June 30, 2026.
Long-Term Borrowings
Long-term borrowings at June 30, 2026 and December 31, 2025 consisted of the following:    
June 30, 2026December 31, 2025
(in thousands)
FHLB advances$1,963,604 $2,463,604 
Subordinated debt, net *
643,618 444,975 
Total long-term borrowings$2,607,222 $2,908,579 
*
Subordinated debt is reported net of debt issuance costs at both June 30, 2026 and December 31, 2025 and fair value hedging adjustment at December 31, 2025.
FHLB advances. Long-term FHLB advances had a weighted average interest rate of 4.31 percent and 4.42 percent at June 30, 2026 and December 31, 2025, respectively. FHLB advances are 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.
The long-term FHLB advances at June 30, 2026 are scheduled for contractual balance repayments as follows:
YearAmount
(in thousands)
2026$1,804 
20271,066,800 
2028645,000 
2029250,000 
Total long-term FHLB advances$1,963,604 
The FHLB advances reported in the table above are not callable for early redemption.
Subordinated debt. On May 14, 2026, Valley issued $500 million of 6.219 percent fixed-to-floating rate subordinated notes due June 1, 2036. Interest on the subordinated notes during the initial five-year term through June 1, 2031, is payable semi-annually in arrears on June 1 and December 1, commencing on June 1, 2026. Thereafter, interest will be set based on three-month term SOFR plus 243 basis points and paid quarterly through maturity of the notes. At June 30, 2026, the subordinated notes had a carrying value of $494.2 million, net of $5.8 million of unamortized debt issuance costs.
On June 15, 2026, Valley executed the full early redemption of its $300 million of 3.00 percent fixed-to-floating rate subordinated notes originally due June 15, 2031. The notes were redeemed at their par value with no gain or loss recognized on this transaction. Concurrently, an interest rate swap associated with the fixed interest rate period of the $300.0 million subordinated notes expired on the redemption date. See Note 12 for further details.
There were no other new issuances or maturities, calls or principal repayments of subordinated debt during the six months ended June 30, 2026.
See Note 9 in Valley’s Annual Report for additional information on Valley's $150 million of 6.25 percent fixed-to-floating rate subordinated notes issued on September 20, 2022 and due September 30, 2032 that also remained outstanding at June 30, 2026.