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Tax Credit Investments
 6 Months Ended
Jun. 30, 2026
Income Tax Disclosure [Abstract]  
Tax Credit Investments Tax Credit Investments
Valley’s tax credit investments are related to investments promoting qualified affordable housing projects and other investments related to community development, largely consisting of new market tax credit investments. 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. Certain liabilities 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 and other tax credit investments at June 30, 2026 and December 31, 2025:
June 30,
2026		December 31,
2025
(in thousands)
Other assets:
Affordable housing tax credit investments, net$26,812 $28,665 
Other tax credit investments, net515,528 471,961 
Total tax credit investments, net$542,340 $500,626 
The following table presents other information relating to Valley’s affordable housing tax credit investments and other tax credit investments for the three and six months ended June 30, 2026 and 2025: 
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(in thousands)
Components of income tax expense:
Affordable housing tax credits and other tax benefits$1,644 $2,151 $3,360 $3,376 
Other tax credit investment credits and tax benefits18,058 10,120 35,642 21,009 
Total reduction in income tax expense$19,702 $12,271 $39,002 $24,385 
Amortization of tax credit investments:
Affordable housing tax credit investment losses$996 $1,050 $2,255 $1,750 
Affordable housing tax credit investment impairment losses171 374 339 739 
Other tax credit investment losses4,333 3,622 6,547 4,394 
Other tax credit investment impairment losses10,657 4,088 23,030 11,571 
Total amortization of tax credit investments recorded in non-interest expense$16,157 $9,134 $32,171 $18,454