v3.26.1
Derivative Instruments and Hedging Activities (Tables)
 6 Months Ended
Jun. 30, 2026
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: 
June 30, 2026December 31, 2025
Fair ValueFair Value
Other AssetsOther LiabilitiesNotional AmountOther AssetsOther LiabilitiesNotional Amount
(in thousands)
Derivatives designated as hedging instruments:
Fair value hedge interest rate swaps $932 $263 $415,088 $1,319 $4,088 $780,322 
Derivatives not designated as hedging instruments:
Interest rate swaps and other contracts*
$238,836 $238,692 $19,540,317 $162,191 $161,911 $18,685,777 
Foreign currency derivatives25,575 25,082 3,133,435 19,140 18,031 2,343,733 
Mortgage banking derivatives27 125 28,350 23 78 25,718 
Credit default swap— 52 471,914 — 54 653,459 
Total derivatives not designated as hedging instruments$264,438 $263,951 $23,174,016 $181,354 $180,074 $21,708,687 
Total derivative financial instruments$265,370 $264,214 $23,589,104 $182,673 $184,162 $22,489,009 
* Other derivative contracts include risk participation agreements.
Gains (Losses) Related to Interest Rate Derivatives Designated as Hedges of Cash Flows
Gains included in the consolidated statements of income and other comprehensive loss, on a pre-tax basis, related to previously terminated interest rate derivatives designated as hedges of cash flows were as follows: 
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(in thousands)
Amount of gain reclassified from accumulated other comprehensive loss to interest income$173 $304 $344 $605 
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
June 30,		Six Months Ended
June 30,
2026202520262025
(in thousands)
Derivative - interest rate swaps:
Interest expense$541 $2,155 764 6,724 
Hedged items - loans, time deposits and subordinated debt:
Interest income$— $(161)$— $(322)
Interest expense(731)(2,194)(919)(6,726)
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 June 30, 2026 and December 31, 2025.
Line Item in the Statement of Financial Condition in Which the Hedged Item is IncludedNet Carrying Amount of the Hedged Asset/ LiabilityCumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Asset/Liability
(in thousands)
June 30, 2026
Time deposits$415,244 $173 
December 31, 2025
Time deposits$483,348 $3,044 
Long-term borrowings *295,842 (3,790)
*    Net carrying amount includes unamortized debt issuance costs of $368 thousand at December 31, 2025.
Net (Gains) Losses Related to Derivative Instruments Not Designated as Hedging Instruments
The net (losses) gains included in the consolidated statements of income related to derivative instruments not designated as hedging instruments were as follows: 
Three Months Ended
June 30,		Six Months Ended
June 30,
2026202520262025
(in thousands)
Non-designated hedge interest rate swaps and credit derivatives
Other non-interest expense$(102)$(1,930)$795 $(4,989)