v3.26.1
Operating Segments
 6 Months Ended
Jun. 30, 2026
Segment Reporting [Abstract]  
Operating Segments Operating Segments
Valley manages its business operations under operating segments consisting of Consumer Banking and Commercial Banking. Activities not assigned to the operating segments are included in Treasury and Corporate Other.
The CEO of Valley is the Chief Operating Decision Maker who assesses performance of each operating segment to better understand their cost, opportunity value and impact to Valley's consolidated earnings. Each operating segment is reviewed routinely for its asset growth, contribution to our income before income taxes, return on average interest earning assets and impairment (if events or circumstances indicate a possible inability to realize the carrying amount). Valley regularly assesses its strategic plans, operations, and reporting structures to identify its reportable segments. No changes to the operating segments were determined necessary during the six months ended June 30, 2026.
The Consumer Banking segment is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, business purpose loans to wealth management clients, secured personal lines of credit, home equity loans and other consumer loans. The duration of the residential mortgage loan portfolio is subject to movements in the market level of interest rates and forecasted prepayment speeds. The weighted average life of the automobile loans within the portfolio 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. Consumer Banking also includes the Wealth Management and Insurance Services Division, comprised of asset management advisory, brokerage, trust, personal and title insurance, tax credit advisory services, and international and domestic private banking businesses.
The Commercial Banking segment is comprised of floating rate and adjustable rate commercial and industrial loans and construction loans, as well as adjustable and fixed rate owner occupied and commercial real estate loans. Due to the portfolio’s interest rate characteristics, Commercial Banking is Valley’s operating segment that is most sensitive to movements in market interest rates.
Treasury and Corporate Other largely consists of the Treasury managed HTM debt securities and AFS debt securities portfolios mainly utilized in the liquidity management needs of our lending segments and income and expense items resulting from support functions not directly attributable to a specific segment. Interest income is generated through investments in various types of securities (mainly comprised of fixed rate securities) and interest bearing deposits with other banks (primarily the Federal Reserve Bank of New York). Expenses related to the branch network, all other components of retail banking, along with the back office departments of the Bank are allocated from Treasury and Corporate Other to operating segments. Other non-interest income items and general expenses are allocated from Treasury and Corporate Other to each operating segment utilizing a methodology that involves an allocation of operating and funding costs based on each segment's respective mix of average interest earning assets outstanding for the period, number of deposits, or direct allocation to the segments based on the nature of income and expense. Unallocated items included in Treasury and Corporate Other consist of net gains and losses on AFS and HTM securities transactions, amortization of tax credit investments, as well as other non-core items, such as corporate restructuring charges and loss on extinguishment of debt.
The accounting for each operating segment and Treasury and Corporate Other 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 GAAP. 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. 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 operating segments and Treasury and Corporate Other for the three and six months ended June 30, 2026 and 2025:
Three Months Ended June 30, 2026
Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
($ in thousands)
Average interest earning assets
$11,449,774 $40,434,399 $9,173,189$61,057,362 
Interest income$138,739 $595,979 $94,657$829,375 
Interest expense64,199 226,717 51,435342,351 
Net interest income74,540 369,262 43,222487,024 
Provision (credit) for credit losses1,291 27,875 (2)29,164 
Net interest income after provision for credit losses73,249 341,387 43,224457,860 
Non-interest income34,409 33,572 5,73073,711 
Non-interest expense
Salary and employee benefits expense33,216 101,271 15,945150,432 
Net occupancy expense5,178 17,952 4,04927,179 
Technology, furniture and equipment expense6,884 22,055 4,30833,247 
FDIC insurance assessment2,581 9,110 —11,691 
Professional and legal fees5,791 19,616 4,12629,533 
Other segment items *22,274 14,993 21,77459,041
Total non-interest expense75,924 184,997 50,202 311,123 
Income (loss) before income taxes$31,734 $189,962 $(1,248)$220,448 
Return on average interest earning assets (pre-tax)
1.11 %1.88 %(0.05)%1.44 %
Net interest margin2.61 %3.66 %1.89 %3.19 %
Three Months Ended June 30, 2025
Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
($ in thousands)
Average interest earning assets
$10,428,625 $38,604,012 $8,520,987$57,553,624 
Interest income$130,616 $588,422 $85,974$805,012 
Interest expense68,915 248,524 55,165372,604 
Net interest income61,701 339,898 30,809432,408 
Provision for credit losses717 37,078 437,799 
Net interest income after provision for credit losses60,984 302,820 30,805394,609 
Non-interest income32,192 24,999 5,41362,604 
Non-interest expense
Salary and employee benefits expense32,294 99,173 13,955145,422 
Net occupancy expense4,772 16,960 3,75125,483 
Technology, furniture and equipment expense6,266 20,469 3,93230,667 
FDIC insurance assessment2,650 9,542 —12,192 
Professional and legal fees3,344 14,191 2,43519,970 
Loss on extinguishment of debt— — 922922 
Other segment items *12,021 17,337 20,10849,466 
Total non-interest expense61,347 177,672 45,103 284,122 
Income (loss) before income taxes$31,829 $150,147 $(8,885)$173,091 
Return on average interest earning assets (pre-tax)
1.22 %1.56 %(0.42)%1.20 %
Net interest margin2.37 %3.52 %1.45 %3.01 %
Six Months Ended June 30, 2026
Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
($ in thousands)
Average interest earning assets
$11,358,861 $39,720,389 $9,312,571$60,391,821 
Interest income$274,302 $1,167,802 $189,995$1,632,099 
Interest expense126,685 443,002 103,863673,550 
Net interest income147,617 724,800 86,132958,549 
Provision for credit losses2,497 47,913 1050,420 
Net interest income after provision for credit losses145,120 676,887 86,122908,129 
Non-interest income65,602 64,795 12,150142,547 
Non-interest expense
Salary and employee benefits expense65,925 204,100 36,122306,147 
Net occupancy expense10,371 35,660 8,33054,361 
Technology, furniture and equipment expense13,677 42,793 8,65565,125 
FDIC insurance assessment4,929 17,238 —22,167 
Professional and legal fees10,373 35,713 8,58954,675 
Other segment items *36,261 37,287 45,026118,574 
Total non-interest expense141,536 372,791 106,722 621,049 
Income (loss) before income taxes$69,186 $368,891 $(8,450)$429,627 
Return on average interest earning assets (pre-tax)
1.22 %1.86 %(0.18)%1.42 %
Net interest margin2.60 %3.65 %1.85 %3.17 %
Six Months Ended June 30, 2025
Consumer
Banking		Commercial
Banking		Treasury and Corporate OtherTotal
($ in thousands)
Average interest earning assets
$10,428,621 $38,416,202 $8,379,663$57,224,486 
Interest income$253,079 $1,168,318 $168,367$1,589,764 
Interest expense134,357 494,934 107,960737,251 
Net interest income118,722 673,384 60,407852,513 
(Credit) provision for credit losses(8,016)108,486 (10)100,460 
Net interest income after provision for credit losses126,738 564,898 60,417752,053 
Non-interest income66,546 44,001 10,351120,898 
Non-interest expense
Salary and employee benefits expense64,268 202,163 21,609288,040 
Net occupancy expense9,477 34,417 7,47751,371 
Technology, furniture and equipment expense12,503 40,322 7,73860,563 
FDIC insurance assessment5,350 19,709 —25,059 
Professional and legal fees6,243 25,134 4,26335,640 
Loss on extinguishment of debt— — 922922 
Other segment items *26,307 32,780 40,05899,145 
Total non-interest expense124,148 354,525 82,067 560,740 
Income (loss) before income taxes$69,136 $254,374 $(11,299)$312,211 
Return on average interest earning assets (pre-tax)
1.33 %1.32 %(0.27)%1.09 %
Net interest margin2.27 %3.50 %1.44 %2.98 %
*Other segment items include amortization of intangible assets, amortization of tax credit investments and other general operating expenses.