Cover
Cover - shares | 6 Months Ended | |
Jun. 30, 2022 | Aug. 08, 2022 | |
Entity Information [Line Items] | ||
Document Type | 10-Q | |
Document Quarterly Report | true | |
Document Period End Date | Jun. 30, 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 | 506,340,635 | |
Amendment Flag | false | |
Document Fiscal Year Focus | 2022 | |
Document Period Period Focus | Q2 | |
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 |
CONSOLIDATED STATEMENTS OF FINA
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Assets | ||
Cash and due from banks | $ 481,414 | $ 205,156 |
Interest bearing deposits with banks | 906,898 | 1,844,764 |
Investment securities: | ||
Equity securities | 41,716 | 36,473 |
Trading debt securities | 0 | 38,130 |
Available for sale debt securities | 1,382,551 | 1,128,809 |
Held to maturity debt securities (net of allowance for credit losses of $1,508 at June 30, 2022 and $1,165 at December 31, 2021) | 3,718,469 | 2,667,532 |
Total investment securities | 5,142,736 | 3,870,944 |
Loans held for sale, at fair value | 18,348 | 139,516 |
Loans | 43,560,777 | 34,153,657 |
Less: Allowance for loan losses | (468,819) | (359,202) |
Net loans | 43,091,958 | 33,794,455 |
Premises and equipment, net | 360,819 | 326,306 |
Lease right of use assets | 315,820 | 259,117 |
Bank owned life insurance | 714,762 | 566,770 |
Accrued interest receivable | 134,682 | 96,882 |
Goodwill | 1,871,505 | 1,459,008 |
Other intangible assets, net | 218,642 | 70,386 |
Other assets | 1,181,223 | 813,139 |
Total Assets | 54,438,807 | 43,446,443 |
Deposits: | ||
Non-interest bearing | 16,139,559 | 11,675,748 |
Interest bearing: | ||
Savings, NOW and money market | 23,547,951 | 20,269,620 |
Time | 4,193,541 | 3,687,044 |
Total deposits | 43,881,051 | 35,632,412 |
Short-term borrowings | 1,522,804 | 655,726 |
Long-term borrowings | 1,403,805 | 1,423,676 |
Junior subordinated debentures issued to capital trusts | 56,587 | 56,413 |
Lease liabilities | 368,920 | 283,106 |
Accrued expenses and other liabilities | 1,000,727 | 311,044 |
Total Liabilities | 48,233,894 | 38,362,377 |
Shareholders’ Equity | ||
Common stock (no par value, authorized 650,000,000 shares; issued 507,896,910 and 423,034,027 shares at June 30, 2022 and December 31, 2021) | 178,185 | 148,482 |
Surplus | 4,965,488 | 3,883,035 |
Retained earnings | 982,146 | 883,645 |
Accumulated other comprehensive loss | (108,337) | (17,932) |
Treasury stock, at cost (1,568,384 common shares at June 30, 2022 and 1,596,959 common shares at December 31, 2021) | (22,260) | (22,855) |
Total Shareholders’ Equity | 6,204,913 | 5,084,066 |
Total Liabilities and Shareholders’ Equity | 54,438,807 | 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 |
CONSOLIDATED STATEMENTS OF FI_2
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (Parenthetical) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Allowance for credit losses, excluding accrued interest | $ 1,508 | $ 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) | 507,896,910 | 423,034,027 |
Treasury stock, shares (in shares) | 1,568,384 | 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 |
CONSOLIDATED STATEMENTS OF INCO
CONSOLIDATED STATEMENTS OF INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Interest Income | ||||
Interest and fees on loans | $ 415,577 | $ 315,314 | $ 732,942 | $ 628,495 |
Interest and dividends on investment securities: | ||||
Taxable | 27,534 | 12,716 | 45,973 | 25,882 |
Tax-exempt | 5,191 | 3,216 | 7,708 | 6,572 |
Dividends | 3,076 | 2,167 | 4,752 | 4,038 |
Interest on federal funds sold and other short-term investments | 1,569 | 235 | 2,030 | 459 |
Total interest income | 452,947 | 333,648 | 793,405 | 665,446 |
Interest on deposits: | ||||
Savings, NOW and money market | 17,122 | 11,166 | 26,749 | 22,291 |
Time | 3,269 | 6,279 | 6,100 | 17,372 |
Interest on short-term borrowings | 4,083 | 1,168 | 4,889 | 2,926 |
Interest on long-term borrowings and junior subordinated debentures | 10,313 | 14,128 | 19,838 | 29,283 |
Total interest expense | 34,787 | 32,741 | 57,576 | 71,872 |
Net Interest Income | 418,160 | 300,907 | 735,829 | 593,574 |
Provision (credit) for credit losses for held to maturity securities | 286 | (30) | 343 | (388) |
Provision for credit losses for loans | 43,712 | 8,777 | 47,212 | 17,791 |
Net Interest Income After Provision for Credit Losses | 374,162 | 292,160 | 688,274 | 576,171 |
Non-Interest Income | ||||
Insurance commissions | 3,463 | 2,637 | 5,322 | 4,195 |
(Losses) gains on securities transactions, net | (309) | 375 | (1,381) | 476 |
Fees from loan servicing | 2,717 | 3,187 | 5,498 | 6,086 |
Gains on sales of loans, net | 3,602 | 10,061 | 4,588 | 13,574 |
Bank owned life insurance | 2,113 | 2,475 | 4,159 | 4,806 |
Other | 27,303 | 15,776 | 48,630 | 28,175 |
Total non-interest income | 58,533 | 43,126 | 97,803 | 74,359 |
Non-Interest Expense | ||||
Salary and employee benefits expense | 154,798 | 91,095 | 262,531 | 179,198 |
Net occupancy expense | 22,429 | 18,550 | 44,420 | 39,230 |
Technology, furniture and equipment expense | 49,866 | 23,220 | 75,880 | 43,950 |
FDIC insurance assessment | 5,351 | 3,374 | 9,509 | 6,650 |
Amortization of other intangible assets | 11,400 | 5,449 | 15,837 | 11,455 |
Professional and legal fees | 30,409 | 7,486 | 45,158 | 13,758 |
Loss on extinguishment of debt | 0 | 8,406 | 0 | 8,406 |
Amortization of tax credit investments | 3,193 | 2,972 | 6,089 | 5,716 |
Other | 22,284 | 11,341 | 37,646 | 23,743 |
Total non-interest expense | 299,730 | 171,893 | 497,070 | 332,106 |
Income Before Income Taxes | 132,965 | 163,393 | 289,007 | 318,424 |
Income tax expense | 36,552 | 42,881 | 75,866 | 82,202 |
Net Income | 96,413 | 120,512 | 213,141 | 236,222 |
Dividends on preferred stock | 3,172 | 3,172 | 6,344 | 6,344 |
Net Income Available to Common Shareholders | $ 93,241 | $ 117,340 | $ 206,797 | $ 229,878 |
Earnings Per Common Share: | ||||
Basic (usd per share) | $ 0.18 | $ 0.29 | $ 0.45 | $ 0.57 |
Diluted (usd per share) | 0.18 | 0.29 | 0.44 | 0.56 |
Cash Dividends Declared per Common Share (usd per share) | $ 0.11 | $ 0.11 | $ 0.22 | $ 0.22 |
Weighted Average Number of Common Shares Outstanding: | ||||
Basic (in shares) | 506,302,464 | 405,963,209 | 464,172,210 | 405,560,146 |
Diluted (in shares) | 508,479,206 | 408,660,778 | 466,320,683 | 408,152,458 |
Wealth management and trust fees | ||||
Non-Interest Income | ||||
Revenue from contracts with customer | $ 9,577 | $ 3,532 | $ 14,708 | $ 6,861 |
Service charges on deposit accounts | ||||
Non-Interest Income | ||||
Revenue from contracts with customer | $ 10,067 | $ 5,083 | $ 16,279 | $ 10,186 |
CONSOLIDATED STATEMENTS OF COMP
CONSOLIDATED STATEMENTS OF COMPREHENSIVE INCOME (Unaudited) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Statement of Comprehensive Income [Abstract] | ||||
Net income | $ 96,413 | $ 120,512 | $ 213,141 | $ 236,222 |
Unrealized gains and losses on available for sale securities | ||||
Net losses arising during the period | (52,269) | (1,471) | (91,161) | (11,907) |
Less reclassification adjustment for net (gains) losses included in net income | 0 | 76 | (10) | 120 |
Total | (52,269) | (1,395) | (91,171) | (11,787) |
Unrealized gains and losses on derivatives (cash flow hedges) | ||||
Net (losses) gains on derivatives arising during the period | (23) | (147) | 195 | 27 |
Less reclassification adjustment for net (gains) losses included in net income | (80) | 534 | 306 | 1,185 |
Total | (103) | 387 | 501 | 1,212 |
Defined benefit pension plan | ||||
Amortization of actuarial net loss | 133 | 278 | 265 | 558 |
Other comprehensive (loss) income, net | (52,239) | (730) | (90,405) | (10,017) |
Total comprehensive income | $ 44,174 | $ 119,782 | $ 122,736 | $ 226,205 |
CONSOLIDATED STATEMENTS OF CHAN
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, 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 | 236,222 | ||||||||||||
Ending balance at Jun. 30, 2021 | 4,737,807 | 209,691 | $ 142,550 | 3,658,636 | 744,768 | (17,735) | (103) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 406,084 | ||||||||||||
Beginning balance at Mar. 31, 2021 | 4,659,670 | 209,691 | $ 142,435 | 3,651,948 | 672,651 | (17,005) | (50) | ||||||
Beginning balance (in shares) at Mar. 31, 2021 | 405,798 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 120,512 | 120,512 | |||||||||||
Other comprehensive income (loss), net of tax | (730) | (730) | |||||||||||
Cash dividends declared: | |||||||||||||
Cash dividends declared on preferred stock | (1,797) | (1,375) | (1,797) | (1,375) | |||||||||
Cash dividends declared on common stock | (45,093) | (45,093) | |||||||||||
Effect of stock incentive plan, net (in shares) | 286 | ||||||||||||
Effect of stock incentive plan, net | 6,620 | $ 115 | 6,688 | (130) | (53) | ||||||||
Ending balance at Jun. 30, 2021 | 4,737,807 | 209,691 | $ 142,550 | 3,658,636 | 744,768 | (17,735) | (103) | ||||||
Ending balance (in shares) at Jun. 30, 2021 | 406,084 | ||||||||||||
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 | ||||||||||||
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 | 213,141 | ||||||||||||
Ending balance at Jun. 30, 2022 | 6,204,913 | 209,691 | $ 178,185 | 4,965,488 | 982,146 | (108,337) | (22,260) | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 506,329 | ||||||||||||
Beginning balance at Mar. 31, 2022 | 5,096,384 | 209,691 | $ 148,482 | 3,872,236 | 945,225 | (56,098) | (23,152) | ||||||
Beginning balance (in shares) at Mar. 31, 2022 | 421,394 | ||||||||||||
Increase (Decrease) in Stockholders' Equity [Roll Forward] | |||||||||||||
Net income | 96,413 | 96,413 | |||||||||||
Other comprehensive income (loss), net of tax | (52,239) | (52,239) | |||||||||||
Cash dividends declared: | |||||||||||||
Cash dividends declared on preferred stock | $ (1,797) | $ (1,375) | $ (1,797) | $ (1,375) | |||||||||
Cash dividends declared on common stock | $ (56,211) | $ (56,211) | |||||||||||
Effect of stock incentive plan, net (in shares) | 72 | ||||||||||||
Effect of stock incentive plan, net | 5,909 | $ 1 | 5,125 | (109) | 892 | ||||||||
Stock issued during period, shares, acquisitions (in shares) | 84,863 | ||||||||||||
Stock issued during period, value, acquisitions | 1,117,829 | $ 29,702 | 1,088,127 | ||||||||||
Ending balance at Jun. 30, 2022 | $ 6,204,913 | $ 209,691 | $ 178,185 | $ 4,965,488 | $ 982,146 | $ (108,337) | $ (22,260) | ||||||
Ending balance (in shares) at Jun. 30, 2022 | 506,329 |
CONSOLIDATED STATEMENTS OF CH_2
CONSOLIDATED STATEMENTS OF CHANGES IN SHAREHOLDERS’ EQUITY (Unaudited) (Parenthetical) - $ / shares | 3 Months Ended | |||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | 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 | 0.39 | $ 0.39 |
Preferred Series B | ||||
Preferred stock, cash dividends declared (usd per share) | 0.34 | 0.34 | 0.34 | 0.34 |
Common Stock | ||||
Common stock, cash dividends declared (usd per share) | $ 0.11 | $ 0.11 | $ 0.11 | $ 0.11 |
CONSOLIDATED STATEMENTS OF CASH
CONSOLIDATED STATEMENTS OF CASH FLOWS (Unaudited) - USD ($) $ in Thousands | 6 Months Ended | |
Jun. 30, 2022 | Jun. 30, 2021 | |
Cash flows from operating activities: | ||
Net income | $ 213,141 | $ 236,222 |
Adjustments to reconcile net income to net cash provided by operating activities: | ||
Depreciation and amortization | 33,185 | 27,681 |
Stock-based compensation | 13,420 | 10,690 |
Provision for credit losses | 47,555 | 17,403 |
Net amortization of premiums and accretion of discounts on securities and borrowings | 9,680 | 14,112 |
Amortization of other intangible assets | 15,837 | 11,455 |
Losses (gains) on securities transactions, net | 1,381 | (476) |
Proceeds from sales of loans held for sale | 331,298 | 690,844 |
Gains on sales of loans, net | (4,588) | (13,574) |
Originations of loans held for sale | (210,048) | (541,627) |
Losses (gains) on sales of assets, net | 265 | (36) |
Loss on extinguishment of debt | 0 | 8,406 |
Net change in: | ||
Fair value of borrowings hedged by derivative transactions | (20,194) | 0 |
Trading debt securities | 38,130 | (21,216) |
Cash surrender value of bank owned life insurance | (4,159) | (4,806) |
Accrued interest receivable | (12,083) | 7,162 |
Other assets | (205,964) | 131,345 |
Accrued expenses and other liabilities | 558,675 | (119,331) |
Net cash provided by operating activities | 805,531 | 454,254 |
Cash flows from investing activities: | ||
Net loan originations and purchases | (3,495,486) | (264,512) |
Equity securities: | ||
Purchases | (1,538) | (2,482) |
Sales | 1,110 | 649 |
Held to maturity debt securities: | ||
Purchases | (545,934) | (744,868) |
Maturities, calls and principal repayments | 294,052 | 372,397 |
Available for sale debt securities: | ||
Purchases | (38,000) | (87,366) |
Sales | 12,846 | 41,134 |
Maturities, calls and principal repayments | 150,262 | 287,901 |
Death benefit proceeds from bank owned life insurance | 3,089 | 3,850 |
Proceeds from sales of real estate property and equipment | 7,265 | 2,747 |
Proceeds from sales of loans held for investment | 0 | 4,498 |
Purchases of real estate property and equipment | (35,164) | (12,207) |
Cash and cash equivalent acquired in acquisitions, net | 321,540 | 0 |
Net cash used in investing activities | (3,325,958) | (398,259) |
Cash flows from financing activities: | ||
Net change in deposits | 1,218,642 | 1,259,172 |
Net change in short-term borrowings | 763,284 | (293,580) |
Proceeds from issuance of long-term borrowings, net | 0 | 295,934 |
Repayments of long-term borrowings | 0 | (710,595) |
Cash dividends paid to preferred shareholders | (6,344) | (6,344) |
Cash dividends paid to common shareholders | (92,618) | (90,201) |
Purchase of common shares to treasury | (23,886) | (684) |
Common stock issued, net | 106 | 6,194 |
Other, net | (365) | (333) |
Net cash provided by financing activities | 1,858,819 | 459,563 |
Net change in cash and cash equivalents | (661,608) | 515,558 |
Cash and cash equivalents at beginning of year | 2,049,920 | 1,329,205 |
Cash and cash equivalents at end of period | 1,388,312 | 1,844,763 |
Supplemental disclosures of cash flow information: | ||
Interest on deposits and borrowings | 57,151 | 82,596 |
Federal and state income taxes | 77,285 | 117,562 |
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 | 24,745 | 1,993 |
Non-cash assets acquired: | ||
Equity securities | 6,239 | 0 |
Investment securities available for sale | 505,928 | 0 |
Investment securities held to maturity | 806,627 | 0 |
Premises and equipment, net | 5,844,070 | 0 |
Premises and equipment, net | 38,827 | 0 |
Lease right of use assets | 49,434 | 0 |
Bank owned life insurance | 126,861 | 0 |
Accrued interest receivable | 25,717 | 0 |
Goodwill | 407,522 | 0 |
Other intangible assets, net | 159,587 | 0 |
Other assets | 158,352 | 0 |
Non-cash net assets acquired | 8,129,164 | 0 |
Liabilities assumed: | ||
Deposits | 7,029,997 | 0 |
Short-term borrowings | 103,794 | 0 |
Lease liabilities | 79,844 | 0 |
Accrued expenses and other liabilities | 119,240 | 0 |
Total liabilities assumed | 7,332,875 | 0 |
Non-cash net assets acquired | 796,289 | 0 |
Net cash and cash equivalents acquired in acquisition | 321,540 | 0 |
Common stock issued in acquisition | $ 1,117,829 | $ 0 |
Basis of Presentation
Basis of Presentation | 6 Months Ended |
Jun. 30, 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, including changes to our segment reporting structure, as further discussed in Note 9 and Note 14. 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 June 30, 2022 and for all periods presented have been made. The results of operations for the three and six months ended June 30, 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. |
Business Combinations
Business Combinations | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Business Combinations | Business Combinations 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. 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. Based on Valley’s closing stock price on March 31, 2022, the transaction was valued at $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. The transaction was accounted for under the acquisition method of accounting and accordingly the results of Bank Leumi USA's operations have been included in Valley's consolidated financial statements for the three and six months ended June 30, 2022 from the date of the acquisition . The following table sets forth assets acquired and liabilities assumed in the Bank Leumi USA acquisition, at their estimated fair values as of the closing date of the transaction: April 1, 2022 Assets acquired: Cash and cash equivalents $ 443,588 Equity securities 6,239 Available for sale debt securities 505,928 Held to maturity debt securities 806,627 Loans 5,914,389 Allowance for loan losses (70,319) Loans, net 5,844,070 Premises and equipment 38,827 Lease right of use assets 49,273 Bank owned life insurance 126,861 Accrued interest receivable 25,717 Goodwill 403,151 Other intangible assets 153,380 Other assets 158,352 Total assets acquired $ 8,562,013 Liabilities assumed: Deposits: Non-interest bearing $ 4,511,537 Interest bearing: Savings, NOW and money market 2,224,834 Time 293,626 Total deposits 7,029,997 Short-term borrowings 103,794 Lease liabilities 79,683 Accrued expense and other liabilities 117,269 Total liabilities assumed $ 7,330,743 Common stock issued in acquisition 1,117,829 Cash paid in acquisition 113,441 The determination of the fair value of the assets acquired and liabilities assumed required management to make estimates about discount rates, future expected cash flows, market conditions, and other future events that are highly subjective in nature and subject to change. The fair value estimates are subject to change for up to one year after the closing date of the transaction if additional information (existing at the date of closing) relative to closing date fair values becomes available . Fair Value Measurement of Assets Acquired and Liabilities Assumed Described below are the methods used to determine the fair values of the significant assets acquired and liabilities assumed in the Bank Leumi USA acquisition. Cash and cash equivalents. The estimated fair values of cash and cash equivalents approximate their stated face amounts, as these financial instruments are either due on demand or have short-term maturities. Investment securities . The estimated fair value of equity securities, which represents a privately held Community Reinvestment Act (CRA) fund, was measured at net asset value (NAV). Other investment securities acquired from Bank Leumi USA were classified as available for sale and held to maturity debt securities based on Valley's intent at the acquisition date. Their estimated fair values were calculated utilizing Level 2 inputs similar to the valuation techniques used for Valley's investment portfolios detailed in Note 3. Loans. The acquired loan portfolio was recorded at its estimated fair value based on a discounted cash flow methodology. The acquired loan portfolio was segregated into categories for valuation purposes primarily based on loan type and loan risk rating. The estimated fair value incorporates adjustments related to market loss assumptions and prevailing market interest rates for comparable assets and other market factors such as liquidity from a market participant perspective. Management estimated the cash flows expected to be collected at the acquisition date by using valuation models that incorporated loan contractual characteristics (such as payment type, amortization type, and term to maturity) as well as estimates of key valuation assumptions (such as prepayment speeds, default rates, and loss severity rates). The expected cash flows from the acquired loan portfolios were discounted to present value based on estimated market rates. The market rates were estimated using a buildup approach based on the following components: funding cost, servicing cost, and consideration of liquidity premium. In addition, coupon rates for recently originated loans and available market data regarding origination rates were also considered in the analysis. The methods used to estimate the Level 3 fair values of loans are sensitive to the assumptions and estimates used. While management attempted to use assumptions and estimates that best reflected the acquired loan portfolios and current market conditions, a greater degree of subjectivity is inherent in these values than in those determined in active markets. The acquired loans were also evaluated upon acquisition to determine whether they represented purchased credit-deteriorated (PCD) loans, defined as loans which have experienced a more-than-insignificant deterioration in credit quality since origination. Valley considered a variety of factors in assessing loans the PCD classification, including but not limited to risk grades, delinquency, non-performing status, current or previous troubled debt restructurings, watch list credits and other qualitative factors that indicated a deterioration in credit quality since origination. For PCD loans, an initial allowance was determined based on Valley’s CECL methodology and was added to the acquisition date fair value of each PCD loan to establish its initial amortized cost basis. The difference between the unpaid principal balance of loans and the calculated amortized cost basis resulted in a net non-credit discount totaling $18.8 million. This net discount will be accreted into interest income over the loan's remaining life using the effective interest method . The following table provides a reconciliation of the unpaid principal balance and fair value of loans identified as PCD acquired from Bank Leumi USA: April 1, 2022 ($ in thousands) Unpaid Principal Balance of PCD loans $ 1,922,272 Allowance for credit losses at acquisition * (70,319) Non-credit discount at acquisition (18,814) Fair value of acquired PCD loans $ 1,833,139 * Represents the initial reserve for PCD loans, reported net of an additional $62.4 million charge-offs recognized at the date of acquisition in accordance with Valley's charge-off policy. Other intangible assets. Other intangible assets recorded consist of core deposit intangibles (CDI) and other acquired client relationships. CDI assets are measures of the value of non-maturity checking, savings, NOW and money market customer deposits that are acquired in a business combination. The fair value for CDI was estimated based on a discounted cash flow methodology considering expected customer attrition rates, net maintenance cost of the deposit base, alternative costs of funds, and the interest costs associated with the customer deposits. The CDI is amortized using an accelerated amortization method over an estimated useful life of 10 years. For other acquired client relationships, fair value is measured using the multi-period excess earnings methodology under the income approach. This method measures the future economic income that can be attributed to the existing client relationships acquired, after considering revenue and expense assumptions, expected client attrition rates, and subtracting returns for other complementary assets that contribute to the income over their expected remaining useful lives. The resulting net cash flows are discounted to present value using an estimated intangible asset discount rate. The other acquired client relationships are amortized using an accelerated amortization method over an estimated remaining useful life of 14 years . Deposits. The fair values of deposit liabilities with no stated maturity (i.e., non-interest bearing accounts and savings, NOW and money market accounts) are equal to the carrying amounts payable on demand. The fair values of certificates of deposit represent contractual cash flows, discounted to present value using interest rates currently offered on deposits with similar characteristics and remaining maturities. Supplemental Pro Forma Financial Information (Unaudited). The following table summarizes supplemental pro forma financial information giving effect to the merger as if it had been completed on January 1, 2021: Three Months Ended Six Months Ended 2021 2022 2021 (in thousands) Net interest income $ 369,549 $ 865,766 $ 728,419 Non-interest income 58,069 134,483 105,527 Net income 104,639 358,427 211,823 The supplemental pro forma financial information does not necessarily reflect the results of operations that would have occurred had Valley merged with Bank Leumi USA on January 1, 2021. Costs savings and other business synergies related to the merger are not included in the supplemental pro forma financial information. Other Recent Acquisitions L andmark 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 and six months ended June 30, 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 six months ended June 30, 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 Merger expenses mainly related the Bank Leumi USA acquisition ab ove totaled $54.5 million and $58.9 million for the three and six months ended June 30, 2022, respectively. The merger expenses largely consisted of salaries and benefits expense, professional and legal fees, and other expense (largely consisting of technology related costs) within non-interest expense on the consolidated statements of income. Valley incurred no merger related expenses during the three and six months ended June 30, 2021. |
Earnings Per Common Share
Earnings Per Common Share | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands, except for share data) Net income available to common shareholders $ 93,241 $ 117,340 $ 206,797 $ 229,878 Basic weighted average number of common shares outstanding 506,302,464 405,963,209 464,172,210 405,560,146 Plus: Common stock equivalents 2,176,742 2,697,569 2,148,473 2,592,312 Diluted weighted average number of common shares outstanding 508,479,206 408,660,778 466,320,683 408,152,458 Earnings per common share: Basic $ 0.18 $ 0.29 $ 0.45 $ 0.57 Diluted 0.18 0.29 0.44 0.56 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 fo r the three and six months ended June 30, 2022 and 2021. |
Accumulated Other Comprehensive
Accumulated Other Comprehensive Loss | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2022: Components of Accumulated Other Comprehensive Loss Total Unrealized Gains Unrealized Gains Defined (in thousands) Balance at March 31, 2022 $ (29,716) $ (728) $ (25,654) $ (56,098) Other comprehensive loss before reclassification (52,269) (23) — (52,292) Amounts reclassified from other comprehensive (loss) income — (80) 133 53 Other comprehensive (loss) income, net (52,269) (103) 133 (52,239) Balance at June 30, 2022 $ (81,985) $ (831) $ (25,521) $ (108,337) Components of Accumulated Other Comprehensive Loss Total Unrealized Gains Unrealized Gains Defined (in thousands) Balance at December 31, 2021 $ 9,186 $ (1,332) $ (25,786) $ (17,932) Other comprehensive (loss) gain before reclassification (91,161) 195 — (90,966) Amounts reclassified from other comprehensive (loss) income (10) 306 265 561 Other comprehensive (loss) income, net (91,171) 501 265 (90,405) Balance at June 30, 2022 $ (81,985) $ (831) $ (25,521) $ (108,337) 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 and six months ended June 30, 2022 and 2021: Amounts Reclassified from Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2022 2021 2022 2021 Income Statement Line Item (in thousands) Unrealized (losses) gains on AFS securities before tax $ — $ (103) $ 14 $ (162) (Losses) gains on securities transactions, net Tax effect — 27 (4) 42 Total net of tax — (76) 10 (120) Unrealized gains (losses) on derivatives (cash flow hedges) before tax 116 (749) (426) (1,664) Interest expense Tax effect (36) 215 120 479 Total net of tax 80 (534) (306) (1,185) Defined benefit pension plan: Amortization of actuarial net loss (184) (387) (367) (775) * Tax effect 51 109 102 217 Total net of tax (133) (278) (265) (558) Total reclassifications, net of tax $ (53) $ (888) $ (561) $ (1,863) * Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense. |
New Authoritative Accounting Gu
New Authoritative Accounting Guidance | 6 Months Ended |
Jun. 30, 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 o f 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. ASU No. 2022-03, "Fair Value Measurement of Equity Securities subject to Contractual Sale Restrictions” updates guidance in ASC 820, Fair Value Measurement and clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities including (i) the nature and remaining duration of the restriction; (ii) the circumstances that could cause a lapse in restrictions; and (iii) the fair value of the securities with contractual sale restrictions. ASU No. 2022-03 will be effective for Valley on January 1, 2024, and it can be applied prospectively, with any adjustments resulting from |
Fair Value Measurement of Asset
Fair Value Measurement of Assets and Liabilities | 6 Months Ended |
Jun. 30, 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 June 30, 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). June 30, Fair Value Measurements at Reporting Date Using: Quoted Prices Significant Significant (in thousands) Recurring fair value measurements: Assets Investment securities: Equity securities (1) $ 35,931 $ 24,683 $ — $ — Available for sale debt securities: U.S. Treasury securities 292,398 292,398 — — U.S. government agency securities 30,533 — 30,533 — Obligations of states and political subdivisions 157,478 — 157,478 — Residential mortgage-backed securities 721,036 — 721,036 — Corporate and other debt securities 181,106 — 181,106 — Total available for sale debt securities 1,382,551 292,398 1,090,153 — Loans held for sale (2) 18,348 — 18,348 — Other assets (3) 344,189 — 344,189 — Total assets $ 1,781,019 $ 317,081 $ 1,452,690 $ — Liabilities Other liabilities (3) $ 364,266 $ — $ 364,266 $ — Total liabilities $ 364,266 $ — $ 364,266 $ — Non-recurring fair value measurements: Collateral dependent loans $ 66,144 $ — $ — $ 66,144 Foreclosed assets 1,200 — — 1,200 Total $ 67,344 $ — $ — $ 67,344 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices Significant Significant (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 $11.2 million and $11.6 million at June 30, 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 $18.3 million and $136.3 million at June 30, 2022 and December 31, 2021, respectively. (3) Derivative financial instruments are included in this categor y. 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, a 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. 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 June 30, 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 June 30, 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 June 30, 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 June 30, 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 June 30, 2022, collateral dependent loans with a total amortized cost of $144.6 million, including our taxi medallion loan portfolio, were reduced by specific allowance for loan losses allocations totaling $78.5 million to a reported total net carrying amount of $66.1 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 June 30, 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 June 30, 2022 and December 31, 2021 were as follows: Fair Value June 30, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 481,414 $ 481,414 $ 205,156 $ 205,156 Interest bearing deposits with banks Level 1 906,898 906,898 1,844,764 1,844,764 Equity securities (1) Level 3 5,785 5,785 3,629 3,629 Held to maturity debt securities: U.S. Treasury securities Level 1 67,238 67,782 67,558 71,661 U.S. government agency securities Level 2 259,711 243,354 6,265 6,378 Obligations of states and political subdivisions Level 2 504,767 486,334 337,962 344,164 Residential mortgage-backed securities Level 2 2,775,928 2,492,737 2,166,142 2,152,301 Trust preferred securities Level 2 37,033 31,453 37,020 31,916 Corporate and other debt securities Level 2 75,300 72,055 53,750 54,185 Total held to maturity debt securities (2) 3,719,977 3,393,715 2,668,697 2,660,605 Net loans Level 3 43,091,958 42,056,562 33,794,455 33,283,251 Accrued interest receivable Level 1 134,682 134,682 96,882 96,882 Federal Reserve Bank and Federal Home Loan Bank stock (3) Level 2 268,133 268,133 206,450 206,450 Financial liabilities Deposits without stated maturities Level 1 39,687,510 39,687,510 31,945,368 31,945,368 Deposits with stated maturities Level 2 4,193,541 4,181,719 3,687,044 3,670,113 Short-term borrowings Level 1 1,522,804 1,488,738 655,726 637,490 Long-term borrowings Level 2 1,403,805 1,329,047 1,423,676 1,404,184 Junior subordinated debentures issued to capital trusts Level 2 56,587 43,695 56,413 46,306 Accrued interest payable (4) Level 1 6,137 6,137 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. |
Investment Securities
Investment Securities | 6 Months Ended |
Jun. 30, 2022 | |
Investments, Debt and Equity Securities [Abstract] | |
Investment Securities | Investment Securities Equity Securities Equity securities totaled $41.7 million and $36.5 million at June 30, 2022 and December 31, 2021, respectively. See Note 6 for further details on equity securities. Trading Debt Securities The fair value of trading debt securities, wholly consisting of municipal bonds, totaled $38.1 million at December 31, 2021. There were no trading debt securities at June 30, 2022. 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 $387 thousand and $1.4 million for three and six months ended June 30, 2022, respectively. Net trading gains totaled $489 thousand and $707 thousand for the three and six months ended June 30, 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 June 30, 2022 and December 31, 2021 were as follows: Amortized Gross Gross Fair Value (in thousands) June 30, 2022 U.S. Treasury securities $ 305,371 $ — $ (12,973) $ 292,398 U.S. government agency securities 31,083 42 (592) 30,533 Obligations of states and political subdivisions: Obligations of states and state agencies 13,252 10 (331) 12,931 Municipal bonds 173,450 13 (28,916) 144,547 Total obligations of states and political subdivisions 186,702 23 (29,247) 157,478 Residential mortgage-backed securities 780,624 216 (59,804) 721,036 Corporate and other debt securities 191,155 288 (10,337) 181,106 Total $ 1,494,935 $ 569 $ (112,953) $ 1,382,551 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 June 30, 2022 and December 31, 2021 were as follows: Less than More than Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) June 30, 2022 U.S. Treasury securities $ 292,397 $ (12,973) $ — $ — $ 292,397 $ (12,973) U.S. government agency securities 26,224 (575) 1,202 (17) 27,426 (592) Obligations of states and political subdivisions: Obligations of states and state agencies 9,315 (331) — — 9,315 (331) Municipal bonds 141,951 (28,916) — — 141,951 (28,916) Total obligations of states and political subdivisions 151,266 (29,247) — — 151,266 (29,247) Residential mortgage-backed securities 660,060 (52,782) 51,630 (7,022) 711,690 (59,804) Corporate and other debt securities 148,818 (10,337) — — 148,818 (10,337) Total $ 1,278,765 $ (105,914) $ 52,832 $ (7,039) $ 1,331,597 $ (112,953) 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 655 and 139 at June 30, 2022 and December 31, 2021, respectively. As of June 30, 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 $446.4 million. The contractual maturities of available for sale debt securities at June 30, 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. June 30, 2022 Amortized Fair (in thousands) Due in one year $ 13,002 $ 12,941 Due after one year through five years 179,567 176,480 Due after five years through ten years 249,507 237,046 Due after ten years 272,235 235,048 Residential mortgage-backed securities 780,624 721,036 Total $ 1,494,935 $ 1,382,551 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 5.3 years at June 30, 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 current economic conditions and the 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. Val ley has evaluated available for sale debt securities that are in an unrealized loss position as of June 30, 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 and six months ended June 30, 2022 and 2021. There was no allowance for credit losses for available for sale debt securities at June 30, 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 June 30, 2022 and December 31, 2021 were as follows: Amortized Gross Gross Fair Value (in thousands) June 30, 2022 U.S. Treasury securities $ 67,238 $ 573 $ (29) $ 67,782 U.S. government agency securities 259,711 138 (16,495) 243,354 Obligations of states and political subdivisions: Obligations of states and state agencies 102,677 222 (2,468) 100,431 Municipal bonds 402,090 520 (16,707) 385,903 Total obligations of states and political subdivisions 504,767 742 (19,175) 486,334 Residential mortgage-backed securities 2,775,928 814 (284,005) 2,492,737 Trust preferred securities 37,033 3 (5,583) 31,453 Corporate and other debt securities 75,300 31 (3,276) 72,055 Total $ 3,719,977 $ 2,301 $ (328,563) $ 3,393,715 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 June 30, 2022 and December 31, 2021 were as follows: Less than More than Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (in thousands) June 30, 2022 U.S. Treasury securities $ 34,914 $ (29) $ — $ — $ 34,914 $ (29) U.S. government agency securities 220,737 (16,495) — — 220,737 (16,495) Obligations of states and political subdivisions: Obligations of states and state agencies 61,460 (1,466) 9,610 (1,002) 71,070 (2,468) Municipal bonds 251,294 (16,606) 1,311 (101) 252,605 (16,707) Total obligations of states and political subdivisions 312,754 (18,072) 10,921 (1,103) 323,675 (19,175) Residential mortgage-backed securities 1,931,648 (197,148) 524,191 (86,857) 2,455,839 (284,005) Trust preferred securities — — 30,450 (5,583) 30,450 (5,583) Corporate and other debt securities 67,524 (3,276) — — 67,524 (3,276) Total $ 2,567,577 $ (235,020) $ 565,562 $ (93,543) $ 3,133,139 $ (328,563) 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 717 and 108 at June 30, 2022 and December 31, 2021, respectively. As of June 30, 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 $892.6 million. The contractual maturities of investments in debt securities held to maturity at June 30, 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. June 30, 2022 Amortized Fair (in thousands) Due in one year $ 33,206 $ 33,186 Due after one year through five years 220,521 219,462 Due after five years through ten years 73,729 72,398 Due after ten years 616,593 575,932 Residential mortgage-backed securities 2,775,928 2,492,737 Total $ 3,719,977 $ 3,393,715 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 7.7 years at June 30, 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 June 30, 2022 and December 31, 2021. AAA/AA/A Rated BBB rated Non-investment grade rated Non-rated Total (in thousands) June 30, 2022 U.S. Treasury securities $ 67,238 $ — $ — $ — $ 67,238 U.S. government agency securities 259,711 — — — 259,711 Obligations of states and political subdivisions: Obligations of states and state agencies 76,322 — 5,537 20,818 102,677 Municipal bonds 346,261 — — 55,829 402,090 Total obligations of states and political subdivisions 422,583 — 5,537 76,647 504,767 Residential mortgage-backed securities 2,775,928 — — — 2,775,928 Trust preferred securities — — — 37,033 37,033 Corporate and other debt securities 2,000 6,000 — 67,300 75,300 Total $ 3,527,460 $ 6,000 $ 5,537 $ 180,980 $ 3,719,977 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 June 30, 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. Held to maturity debt securities were carried net of allowance for credit losses totaling $1.5 million at June 30, 2022 and $1.2 million at December 31, 2021. Valley recorded a provision for credit losses of $286 thousand and $343 |
Loans and Allowance for Credit
Loans and Allowance for Credit Losses for Loans | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021 was as follows: June 30, 2022 December 31, 2021 (in thousands) Loans: Commercial and industrial: Commercial and industrial $ 8,378,454 $ 5,411,601 Commercial and industrial PPP loans * 136,004 435,950 Total commercial and industrial loans 8,514,458 5,847,551 Commercial real estate: Commercial real estate 23,535,086 18,935,486 Construction 3,374,373 1,854,580 Total commercial real estate loans 26,909,459 20,790,066 Residential mortgage 5,005,069 4,545,064 Consumer: Home equity 431,455 400,779 Automobile 1,673,482 1,570,036 Other consumer 1,026,854 1,000,161 Total consumer loans 3,131,791 2,970,976 Total loans $ 43,560,777 $ 34,153,657 * Represents SBA Paycheck Protection Program (PPP) loans, net of unearned fees totaling $2.5 million and $12.1 million at June 30, 2022 and December 31, 2021, respectively. Total loans includes net unearned discounts and deferre d loan fees of $141.2 million an d $78.5 million at June 30, 2022 and December 31, 2021, respectively. The increase in total loans at June 30, 2022 is partially attributed to $5.9 billion of loans acquired in the Bank Leumi USA acquisition, which was inclusive of a $98.6 million net purchase discount at the acquisition date. Accrued interest on loans, which is excluded from the amortized cost of loans held for investment, totaled $115.7 million and $83.7 million at June 30, 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 and six months ended June 30, 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 June 30, 2022 and December 31, 2021: Past Due and Non-Accrual Loans 30-59 Days 60-89 Days 90 Days or More Non-Accrual Loans Total Past Due Loans Current Loans Total Loans Non-Accrual Loans Without Allowance for Loan Losses (in thousands) June 30, 2022 Commercial and industrial $ 7,143 $ 3,870 $ 15,470 $ 148,404 $ 174,887 $ 8,339,571 $ 8,514,458 $ 6,648 Commercial real estate: Commercial real estate 10,516 630 — 85,807 96,953 23,438,133 23,535,086 68,128 Construction 9,108 3,862 — 49,780 62,750 3,311,623 3,374,373 9,494 Total commercial real estate loans 19,624 4,492 — 135,587 159,703 26,749,756 26,909,459 77,622 Residential mortgage 12,326 2,410 1,188 25,847 41,771 4,963,298 5,005,069 14,889 Consumer loans: Home equity 377 2 — 2,920 3,299 428,156 431,455 126 Automobile 4,696 588 267 262 5,813 1,667,669 1,673,482 — Other consumer 936 112 — 97 1,145 1,025,709 1,026,854 — Total consumer loans 6,009 702 267 3,279 10,257 3,121,534 3,131,791 126 Total $ 45,102 $ 11,474 $ 16,925 $ 313,117 $ 386,618 $ 43,174,159 $ 43,560,777 $ 99,285 Past Due and Non-Accrual Loans 30-59 60-89 90 Days or More 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 June 30, 2022 and December 31, 2021: Term Loans Amortized Cost Basis by Origination Year June 30, 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 $ 1,087,572 $ 1,322,828 $ 740,213 $ 407,985 $ 306,393 $ 423,058 $ 3,964,927 $ 184 $ 8,253,160 Special Mention 2,654 7,639 670 2,827 4,987 5,708 57,210 10 81,705 Substandard — 2,049 5,704 3,727 4,722 4,790 70,131 66 91,189 Doubtful 1,102 141 — 2,712 — 78,067 6,382 — 88,404 Total commercial and industrial $ 1,091,328 $ 1,332,657 $ 746,587 $ 417,251 $ 316,102 $ 511,623 $ 4,098,650 $ 260 $ 8,514,458 Commercial real estate Risk Rating: Pass $ 3,704,273 $ 5,379,241 $ 3,371,598 $ 2,752,901 $ 1,659,319 $ 5,504,795 $ 288,599 $ 13,193 $ 22,673,919 Special Mention 73,171 40,956 82,875 34,661 64,861 129,785 15,052 — 441,361 Substandard — 43,945 39,372 39,803 58,886 229,266 8,358 — 419,630 Doubtful — — — — — 176 — — 176 Total commercial real estate $ 3,777,444 $ 5,464,142 $ 3,493,845 $ 2,827,365 $ 1,783,066 $ 5,864,022 $ 312,009 $ 13,193 $ 23,535,086 Construction Risk Rating: Pass $ 472,849 $ 631,399 $ 157,587 $ 59,657 $ 10,664 $ 25,089 $ 1,900,402 $ — $ 3,257,647 Special Mention 28,296 — — — — — 25,610 — 53,906 Substandard — 13,059 — — — 17,616 19,531 — 50,206 Doubtful 498 643 11,473 — — — — — 12,614 Total construction $ 501,643 $ 645,101 $ 169,060 $ 59,657 $ 10,664 $ 42,705 $ 1,945,543 $ — $ 3,374,373 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 and by payment activity. The following table presents the amortized cost in those loan classes based on payment activity by origination year as of June 30, 2022 and December 31, 2021. Term Loans Amortized Cost Basis by Origination Year June 30, 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 $ 768,137 $ 1,518,240 $ 593,271 $ 515,561 $ 363,811 $ 1,162,383 $ 75,509 $ — $ 4,996,912 90 days or more past due — — 1,370 1,511 2,044 3,232 — — 8,157 Total residential mortgage $ 768,137 $ 1,518,240 $ 594,641 $ 517,072 $ 365,855 $ 1,165,615 $ 75,509 $ — $ 5,005,069 Consumer loans Home equity Performing $ 21,198 $ 13,068 $ 4,946 $ 5,645 $ 6,212 $ 15,064 $ 324,606 $ 39,702 $ 430,441 90 days or more past due — — — — — 1 425 588 1,014 Total home equity 21,198 13,068 4,946 5,645 6,212 15,065 325,031 40,290 431,455 Automobile Performing 408,872 621,275 252,127 215,999 113,834 60,789 — — 1,672,896 90 days or more past due — 90 57 132 214 93 — — 586 Total automobile 408,872 621,365 252,184 216,131 114,048 60,882 — — 1,673,482 Other consumer Performing 14,481 3,094 7,339 7,610 7,156 4,821 982,353 — 1,026,854 Total other consumer 14,481 3,094 7,339 7,610 7,156 4,821 982,353 — 1,026,854 Total consumer $ 444,551 $ 637,527 $ 264,469 $ 229,386 $ 127,416 $ 80,768 $ 1,307,384 $ 40,290 $ 3,131,791 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 Performing TDRs (not reported as non-accrual loans) totaled $67.3 million and $71.3 million as of June 30, 2022 and December 31, 2021, respectively. Non-performing TDRs totaled $154.4 million and $117.2 million as of June 30, 2022 and December 31, 2021, respectively. The following table presents the pre- and post-modification amortized cost of loans by loan class modified as TDRs during the three and six months ended June 30, 2022 and 2021. Post-modification amounts are presented as of June 30, 2022 and 2021. Three Months Ended June 30, 2022 2021 Troubled Debt Restructurings Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification ($ in thousands) Commercial and industrial 49 $ 82,120 $ 78,051 9 $ 8,592 $ 8,529 Commercial real estate 1 8,811 8,735 6 12,237 12,223 Residential mortgage 7 4,970 4,969 2 1,089 1,079 Consumer 1 125 124 — — — Total 58 $ 96,026 $ 91,879 17 $ 21,918 $ 21,831 Six Months Ended June 30, 2022 2021 Troubled Debt Restructurings Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification ($ in thousands) Commercial and industrial 60 $ 91,804 $ 87,685 13 $ 20,855 $ 19,648 Commercial real estate 3 14,072 13,986 6 12,237 12,223 Residential mortgage 8 5,090 5,087 8 2,618 2,586 Consumer 1 125 124 1 169 166 Total 72 $ 111,091 $ 106,882 28 $ 35,879 $ 34,623 The total TDRs presented in the above table had allocated allowance for loan losses of $56.0 million and $4.5 million at June 30, 2022 and 2021, respectively. There were $1.5 million in charge-offs related to TDRs for the three and six months ended June 30, 2022. There were charge-offs of $697 thousand and $5.8 million related to TDRs for the three and six months ended June 30, 2021, respectively. Valley did not extend any commitments to lend additional funds to borrowers whose loans have been modified as TDRs during the three and six months ended June 30, 2022 and 2021. Loans modified as TDRs within the previous 12 months and for which there was a payment default (90 or more days past due) for the three and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended June 30, 2022 2021 Troubled Debt Restructurings Subsequently Defaulted Number of Recorded Investment Number of Recorded ($ in thousands) Construction 2 $ 17,599 — $ — Residential mortgage — — 1 445 Total 2 $ 17,599 1 $ 445 Six Months Ended June 30, 2022 2021 Troubled Debt Restructurings Subsequently Defaulted Number of Recorded Investment Number of Recorded ($ in thousands) Commercial and industrial — $ — 15 $ 12,384 Construction 2 17,599 — — Residential mortgage — — 2 692 Total 2 $ 17,599 17 $ 13,076 Loans in Process of Foreclosure. Other real estate owned (OREO) totaled $422 thousand and $2.3 million at June 30, 2022 and December 31, 2021, respectively. There were no forec losed residential real estate properties included in OREO at June 30, 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 $2.0 million and $2.5 million at June 30, 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 June 30, 2022 and December 31, 2021: June 30, December 31, (in thousands) Collateral dependent loans: Commercial and industrial * $ 100,783 $ 95,335 Commercial real estate: Commercial real estate 94,248 110,174 Construction 50,176 — Total commercial real estate loans 144,424 110,174 Residential mortgage 21,695 35,745 Home equity 2 4 Total $ 266,904 $ 241,258 * The majority of the loans are collateralized by taxi medallions for all periods. Allowance for Credit Losses for Loans The allowance for credit losses (ACL) for loans consists of the allowance for loan losses and the allowance for unfunded credit commitments. The ACL for loans increased $115.3 million from December 31, 2021 largely reflecting a net ACL of $70.3 million for PCD loans acquired from Bank Leumi USA that was recorded at April 1, 2022 and recognition of a $41.0 million provision related to non-PCD loans and unfunded credit commitments acquired from Bank Leumi USA during the three months ended June 30, 2022. Overall, an increased economic forecast reserve component of our CECL model caused by elevated uncertainty in economic conditions was largely offset by lower expected quantitative loss experience at June 30, 2022 as compared to December 31, 2021. The following table summarizes the ACL for loans at June 30, 2022 and December 31, 2021: June 30, December 31, (in thousands) Components of allowance for credit losses for loans: Allowance for loan losses $ 468,819 $ 359,202 Allowance for unfunded credit commitments 22,144 16,500 Total allowance for credit losses for loans $ 490,963 $ 375,702 The following table summarizes the provision for credit losses for loans for the periods indicated: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Components of provision for credit losses for loans: Provision for loan losses $ 38,310 $ 5,810 $ 41,568 $ 14,502 Provision for unfunded credit commitments 5,402 2,967 5,644 3,289 Total provision for credit losses for loans $ 43,712 $ 8,777 $ 47,212 $ 17,791 The following table details the activity in the allowance for loan losses by loan portfolio segment for the three and six months ended June 30, 2022 and 2021: Commercial Commercial Residential Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 101,203 $ 219,949 $ 28,189 $ 13,169 $ 362,510 Allowance for purchased credit deteriorated (PCD) loans * 33,452 36,618 206 43 70,319 Loans charged-off (4,540) — (1) (726) (5,267) Charged-off loans recovered 1,952 224 74 697 2,947 Net (charge-offs) recoveries (2,588) 224 73 (29) (2,320) Provision for loan losses 12,472 20,436 1,421 3,981 38,310 Ending balance $ 144,539 $ 277,227 $ 29,889 $ 17,164 $ 468,819 Three Months Ended Allowance for losses: Beginning balance $ 126,408 $ 174,236 $ 27,172 $ 15,064 $ 342,880 Loans charged-off (10,893) — (1) (1,480) (12,374) Charged-off loans recovered 678 665 191 1,474 3,008 Net (charge-offs) recoveries (10,215) 665 190 (6) (9,366) (Credit) provision for loan losses (6,504) 14,238 (2,059) 135 5,810 Ending balance $ 109,689 $ 189,139 $ 25,303 $ 15,193 $ 339,324 Commercial Commercial Residential Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 103,090 $ 217,490 $ 25,120 $ 13,502 $ 359,202 Allowance for PCD loans * 33,452 36,618 206 43 70,319 Loans charged-off (6,111) (173) (27) (1,551) (7,862) Charged-off loans recovered 2,776 331 531 1,954 5,592 Net (charge-offs) recoveries (3,335) 158 504 403 (2,270) Provision for loan losses 11,332 22,961 4,059 3,216 41,568 Ending balance $ 144,539 $ 277,227 $ 29,889 $ 17,164 $ 468,819 Six Months Ended Allowance for losses: Beginning balance $ 131,070 $ 164,113 $ 28,873 $ 16,187 $ 340,243 Loans charged-off (18,035) (382) (139) (2,618) (21,174) Charged-off loans recovered 2,267 734 348 2,404 5,753 Net (charge-offs) recoveries (15,768) 352 209 (214) (15,421) (Credit) provision for loan losses (5,613) 24,674 (3,779) (780) 14,502 Ending balance $ 109,689 $ 189,139 $ 25,303 $ 15,193 $ 339,324 * Represents the allowance for acquired PCD loans, net of PCD loan charge-offs totaling $62.4 million in the second quarter 2022. 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 June 30, 2022 and December 31, 2021. Commercial Commercial Residential Consumer Total (in thousands) June 30, 2022 Allowance for loan losses: Individually evaluated for credit losses $ 93,698 $ 10,757 $ 641 $ 100 $ 105,196 Collectively evaluated for credit losses 50,841 266,470 29,248 17,064 363,623 Total $ 144,539 $ 277,227 $ 29,889 $ 17,164 $ 468,819 Loans: Individually evaluated for credit losses $ 164,235 $ 169,737 $ 32,303 $ 1,531 $ 367,806 Collectively evaluated for credit losses 8,350,223 26,739,722 4,972,766 3,130,260 43,192,971 Total $ 8,514,458 $ 26,909,459 $ 5,005,069 $ 3,131,791 $ 43,560,777 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 |
Goodwill and Other Intangible A
Goodwill and Other Intangible Assets | 6 Months Ended |
Jun. 30, 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 Valley's business segments, or reporting units thereof, for goodwill impairment analysis were: Business Segment / Reporting Unit * Wealth Consumer Commercial Total (in thousands) Balance at December 31, 2021 $ 36,399 $ 284,366 $ 1,138,243 $ 1,459,008 Goodwill from business combinations 15,564 85 396,848 412,497 Balance at June 30, 2022 $ 51,963 $ 284,451 $ 1,535,091 $ 1,871,505 * Valley’s Wealth Management Division is comprised of trust, asset management, brokerage, insurance, and tax credit advisory services. This reporting unit is included in the Consumer Lending segment for financial reporting purposes. During the second quarter 2022, Valley performed the annual goodwill impairment test at its normal assessment date. The results of the 2022 annual impairment test resulted in no i mpairment. As discussed in Note 14, Valley made changes to its operating structure and strategy during the second quarter 2022 (and subsequent to the annual goodwill impairment test), which resulted in changes in its operating segments and reporting units to reflect how the CEO, who is the chief operating decision maker, intends to manage Valley, allocate resources and measure performance. Goodwill balances were reallocated across the new operating segments and reporting units (as reflected in the table above) based on their relative fair values using the valuation performed during the second quarter 2022. The goodwill from business combinations set forth in the above table during the six months ended June 30, 2022, related to the acquisitions of Bank Leumi USA and Landmark totaled $403.2 million and $4.4 million, respectively. The goodwill from Landmark transaction was allocated entirely to the Wealth Management reporting unit. During the six months ended June 30, 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. The following table summarizes other intangible assets as of June 30, 2022 and December 31, 2021: Gross Accumulated Net (in thousands) June 30, 2022 Loan servicing rights $ 119,142 $ (93,697) $ 25,445 Core deposits 223,670 (76,447) 147,223 Other 51,299 (5,325) 45,974 Total other intangible assets $ 394,111 $ (175,469) $ 218,642 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 and six months ended June 30, 2022. Valley recorded net recoveries of impairment charges on its loan servicing rights totaling $42 thousand and $833 thousand for the three and six months ended June 30, 2021. Core deposits are amortized using an accelerated method over a period of 10 years. Valley recorded $114.4 million of core deposit intangibles resulting from the Bank Leumi USA acquisition. The line item labeled “Other” included in the table above primarily consists of customer lists, certain financial asset servicing contracts 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 13.3 years. Valley recorded $39.0 million and $6.2 million of other intangible assets during the six months ended June 30, 2022 resulting from the Bank Leumi USA and Landmark acquisitions, respectively. Valley evaluates core deposits and other intangibles for impairment when an indication of impairment exists. No impairment was recognized during the three and six months ended June 30, 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 Core Other (in thousands) 2022 $ 1,792 $ 16,039 $ 3,509 2023 3,253 28,746 6,522 2024 2,849 24,897 5,951 2025 2,483 21,048 5,380 2026 2,153 17,223 4,805 Valley recognized amortization expense on other intangible assets totaling approximately $11.4 million and $5.4 million (including net recoveries of impairment charges on loan servicing rights) for the three months ended June 30, 2022 and 2021, respectively, and $15.8 million and $11.5 million for the six months ended June 30, 2022 and 2021, respectively. |
Stock-Based Compensation
Stock-Based Compensation | 6 Months Ended |
Jun. 30, 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 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 June 30, 2022 , 5.2 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. On April 1, 2022, Valley issued replacement options for the pre-existing and fully vested stock awards consisting of Bank Leumi USA options for 2.7 million shares of Valley common stock (which all remained outstanding at June 30, 2022) at a weighted average exercise price of $8.47. The stock plan under which the original Bank Leumi stock awards were issued is no longer active at the acquisition date. Valley granted 937 thousand and 109 thousand of time-based restricted stock units (RSUs) during the three months ended June 30, 2022 and 2021, respectively, and 2.1 million and 1.2 million for the six months ended June 30, 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 six months ended June 30, 2022 and 2021 was $13.51 per share and $11.63 per share, respectively. Valley granted 619 thousand and 604 thousand of performance-based RSUs to certain officers for the six months ended June 30, 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 six months ended June 30, 2022 and 2021 was $14.72 per share and $12.36 per share, respectively. Valley recorded total stock-based compensation expense of $6.2 million and $5.2 million for the three months ended June 30, 2022 and 2021, respectively, and $13.4 million and $10.7 million for the six months ended June 30, 2022 and 2021, respectively. The fair values of stock awards are expensed over the shorter of the vesting or required service period. As of June 30, 2022, the unrecognized amortization expense for all stock-based employee compensation totaled approximately $43.3 million and will be recognized over an average remaining vesting period of approximately 2.18 years |
Derivative Instruments and Hedg
Derivative Instruments and Hedging Activities | 6 Months Ended |
Jun. 30, 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 and currency 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. Valley uses interest rate swaps to manage its exposure to changes in fair value on fixed rate debt 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 that matured during the six months ended June 30, 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 are used to manage Valley’s exposure to interest rate movements, foreign currency risk, credit risk, and to provide services to customers or for other purposes. These derivatives 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 June 30, 2022, Valley had 26 credit swaps with an aggregate notional amount of $243.9 million related to risk participation agreements. At June 30, 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. Valley enters foreign currency forward and option contracts, primarily to accommodate our customers, that are not designated as hedging instruments. Upon the origination of a certain foreign currency denominated transactions (including foreign currency holdings and non-U.S. dollar denominated loans) with a client, we enter into a respective hedging contract with a third party financial institution to mitigate the economic impact of foreign currency exchange rate fluctuation. 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, 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 $ 490 $ — $ 200,000 $ — $ 310 $ 700,000 Fair value hedge interest rate swaps — 22,056 300,000 — 3,335 300,000 Total derivatives designated as hedging instruments $ 490 $ 22,056 $ 500,000 $ — $ 3,645 $ 1,000,000 Derivatives not designated as hedging instruments: Interest rate swaps and other contracts * $ 318,521 $ 318,277 $ 12,523,601 $ 180,701 $ 47,044 $ 10,179,294 Foreign currency derivatives 24,489 23,481 1,590,130 311 233 122,166 Mortgage banking derivatives 689 452 86,421 488 1,454 312,428 Total derivatives not designated as hedging instruments $ 343,699 $ 342,210 $ 14,200,152 $ 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 June 30, 2022 and December 31, 2021 in the table above . Gains (losses) included in the consolidated statements of income and other comprehensive loss, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Amount of gain (loss) reclassified from accumulated other comprehensive loss to interest expense $ 116 $ (749) $ (426) $ (1,664) Amount of gain (loss) recognized in other comprehensive loss 121 (158) 441 19 The accumulated after-tax losses related to effective cash flow hedges included in accumulated other comprehensive loss were $831 thousand and $1.3 million at June 30, 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 $730 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 Six Months Ended 2022 2021 2022 2021 (in thousands) Derivative - interest rate swap: Interest expense $ 76 $ 80 $ 606 $ 80 Hedged item - subordinated debt Interest expense $ (147) $ (83) $ (477) $ (83) 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 June 30, 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 $ 277,486 $ (22,514) 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 Six Months Ended 2022 2021 2022 2021 (in thousands) Non-designated hedge interest rate swaps and credit derivatives Other non-interest expense $ 1,143 $ (2,210) $ (1,654) $ (425) 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 $11.1 million and $7.6 million for the three months ended June 30, 2022 and 2021, respectively, and $25.1 million and $13.8 million for the six months ended June 30, 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 June 30, 2022, Valley was in compliance with all of the provisions of its derivative counterparty agreements. As of June 30, 2022, there were no derivatives in an aggregate net liability position. Valley has derivative counterparty agreements that require minimum collateral posting thresholds for |
Balance Sheet Offsetting
Balance Sheet Offsetting | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021. Gross Amounts Not Offset Gross Amounts Gross Amounts Net Amounts Financial Cash Net (in thousands) June 30, 2022 Assets Interest rate swaps $ 319,011 $ — $ 319,011 $ 11,492 $ 307,724 $ — Liabilities Interest rate swaps $ 340,333 $ — $ 340,333 $ (11,492) $ (1,142) $ 327,699 December 31, 2021 Assets Interest rate swaps $ 180,701 $ — $ 180,701 $ — $ — $ 180,701 Liabilities Interest rate swaps $ 50,689 $ — $ 50,689 $ — $ (44,231) $ 6,458 * Cash collateral received (pledged) to our counterparties in relation to market value exposures of OTC derivative contacts in a liability position. |
Tax Credit Investments
Tax Credit Investments | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021: June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 26,003 $ 15,343 Other tax credit investments, net 49,483 57,006 Total tax credit investments, net $ 75,486 $ 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 and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,614 $ 899 $ 2,358 $ 1,796 Other tax credit investment credits and tax benefits 2,539 2,743 5,090 5,428 Total reduction in income tax expense $ 4,153 $ 3,642 $ 7,448 $ 7,224 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 653 $ 460 $ 1,068 $ 1,003 Affordable housing tax credit investment impairment losses 363 431 625 772 Other tax credit investment losses 386 351 695 524 Other tax credit investment impairment losses 1,791 1,730 3,701 3,417 Total amortization of tax credit investments recorded in non-interest expense $ 3,193 $ 2,972 $ 6,089 $ 5,716 |
Operating Segments
Operating Segments | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Operating Segments | Operating SegmentsPrior to the second quarter 2022, Valley operated as four reportable segments: Consumer Lending, Commercial Lending, Investment Management, and Corporate and Other Adjustments. Valley re-evaluated its segment reporting during the second quarter 2022 to consider the Bank Leumi USA acquisition on April 1, 2022 along with other factors, including changes in the internal structure of operations, discrete financial information reviewed by key decision-makers, balance sheet management strategies and personnel. As a result, Valley determined it operated reportable segments consisting of Consumer Lending, Commercial Lending and Treasury and Corporate Other at June 30, 2022. Treasury and Corporate Other was reorganized to consolidate Treasury and other corporate-wide functions, including the Treasury managed investment securities portfolios and overnight interest earning cash balances formerly reported under Investment Management. The discrete financial information related to the activities previously reported in the Investment Management segment is no longer provided to Valley's CEO, who is the chief operating decision maker. Each operating 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). Valley regularly assesses its strategic plans, operations, and reporting structures to identify its reportable segments. Consumer Lending is mainly comprised of residential mortgages and automobile loans, and to a lesser extent, 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 average weighted 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 Lending also includes the Wealth Management and Insurance Services Division, comprised of trust, asset management, brokerage, insurance and tax credit advisory services. Commercial Lending 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 operating segment that is most sensitive to movements in market interest rates. Treasury and Corporate Other largely consists of the Treasury managed held to maturity debt securities and available for sale 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 the Consumer Lending and Commercial Lending segments. Interest expense and internal transfer expense (for general corporate expenses) are allocated to each operating 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 prior period balances presented in the tables below reflect reclassifications to conform the presentation in those periods to the current operating segment structure. Valley's consolidated results were not impacted by the changes discussed above and remain unchanged for all periods presented. The following tables represent the financial data for Valley’s operating segments for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,967,305 $ 34,549,982 $ 6,373,943 $ 48,891,230 Interest income $ 63,137 $ 352,440 $ 37,370 $ 452,947 Interest expense 4,723 19,735 10,329 34,787 Net interest income 58,414 332,705 27,041 418,160 Provision for credit losses 5,402 38,310 286 43,998 Net interest income after provision for credit losses 53,012 294,395 26,755 374,162 Non-interest income 17,086 14,425 27,022 58,533 Non-interest expense 18,791 24,448 256,491 299,730 Internal transfer expense (income) 37,629 157,365 (194,994) — Income (loss) before income taxes $ 13,678 $ 127,007 $ (7,720) $ 132,965 Return on average interest earning assets (pre-tax) 0.69 % 1.47 % (0.48) % 1.09 % Three Months Ended June 30, 2021 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,150,137 $ 25,485,161 $ 5,272,116 $ 37,907,414 Interest income $ 59,419 $ 255,895 $ 18,334 $ 333,648 Interest expense 5,192 18,467 9,082 32,741 Net interest income 54,227 237,428 9,252 300,907 Provision (credit) for credit losses 711 8,066 (30) 8,747 Net interest income after provision for credit losses 53,516 229,362 9,282 292,160 Non-interest income 21,915 9,819 11,392 43,126 Non-interest expense 19,792 27,241 124,860 171,893 Internal transfer expense (income) 19,862 71,207 (91,069) — Income (loss) before income taxes $ 35,777 $ 140,733 $ (13,117) $ 163,393 Return on average interest earning assets (pre-tax) 2.00 % 2.21 % (1.00) % 1.72 % Six Months Ended June 30, 2022 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,848,764 $ 30,743,387 $ 6,017,817 $ 44,609,968 Interest income $ 122,596 $ 610,346 $ 60,463 $ 793,405 Interest expense 7,930 31,062 18,584 57,576 Net interest income (loss) 114,666 579,284 41,879 735,829 Provision for credit losses 7,275 39,937 343 47,555 Net interest income (loss) after provision for credit losses 107,391 539,347 41,536 688,274 Non-interest income 30,903 31,305 35,595 97,803 Non-interest expense 35,359 49,533 412,178 497,070 Internal transfer expense (income) 66,276 257,281 (323,557) — Income (loss) before income taxes $ 36,659 $ 263,838 $ (11,490) $ 289,007 Return on average interest earning assets (pre-tax) 0.93 % 1.72 % (0.38) % 1.30 % Six Months Ended June 30, 2021 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,099,973 $ 25,509,061 $ 5,039,222 $ 37,648,256 Interest income $ 120,264 $ 508,231 $ 36,951 $ 665,446 Interest expense 11,607 41,702 18,563 71,872 Net interest income 108,657 466,529 18,388 593,574 (Credit) provision for credit losses (1,924) 19,715 (388) 17,403 Net interest income after provision for credit losses 110,581 446,814 18,776 576,171 Non-interest income 35,600 17,533 21,226 74,359 Non-interest expense 39,641 52,772 239,693 332,106 Internal transfer expense (income) 39,364 141,790 (181,154) — Income (loss) before income taxes $ 67,176 $ 269,785 $ (18,537) $ 318,424 Return on average interest earning assets (pre-tax) 1.89 % 2.12 % (0.74) % 1.69 % |
Basis of Presentation (Policies
Basis of Presentation (Policies) | 6 Months Ended |
Jun. 30, 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, including changes to our segment reporting structure, as further discussed in Note 9 and Note 14. 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 June 30, 2022 and for all periods presented have been made. The results of operations for the three and six months ended June 30, 2022 are not necessarily indicative of the results to be expected for the entire fiscal year or any subsequent interim period. |
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 o f 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. ASU No. 2022-03, "Fair Value Measurement of Equity Securities subject to Contractual Sale Restrictions” updates guidance in ASC 820, Fair Value Measurement and clarifies that a contractual sale restriction should not be considered in measuring fair value. It also requires entities with investments in equity securities subject to contractual sale restrictions to disclose certain qualitative and quantitative information about such securities including (i) the nature and remaining duration of the restriction; (ii) the circumstances that could cause a lapse in restrictions; and (iii) the fair value of the securities with contractual sale restrictions. ASU No. 2022-03 will be effective for Valley on January 1, 2024, and it can be applied prospectively, with any adjustments resulting from |
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. |
Business Combinations (Tables)
Business Combinations (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |
Assets Acquired and Liabilities Assumed in Acquisition | The following table sets forth assets acquired and liabilities assumed in the Bank Leumi USA acquisition, at their estimated fair values as of the closing date of the transaction: April 1, 2022 Assets acquired: Cash and cash equivalents $ 443,588 Equity securities 6,239 Available for sale debt securities 505,928 Held to maturity debt securities 806,627 Loans 5,914,389 Allowance for loan losses (70,319) Loans, net 5,844,070 Premises and equipment 38,827 Lease right of use assets 49,273 Bank owned life insurance 126,861 Accrued interest receivable 25,717 Goodwill 403,151 Other intangible assets 153,380 Other assets 158,352 Total assets acquired $ 8,562,013 Liabilities assumed: Deposits: Non-interest bearing $ 4,511,537 Interest bearing: Savings, NOW and money market 2,224,834 Time 293,626 Total deposits 7,029,997 Short-term borrowings 103,794 Lease liabilities 79,683 Accrued expense and other liabilities 117,269 Total liabilities assumed $ 7,330,743 Common stock issued in acquisition 1,117,829 Cash paid in acquisition 113,441 |
Reconciliation Purchase Price and Par Value of PCD | The following table provides a reconciliation of the unpaid principal balance and fair value of loans identified as PCD acquired from Bank Leumi USA: April 1, 2022 ($ in thousands) Unpaid Principal Balance of PCD loans $ 1,922,272 Allowance for credit losses at acquisition * (70,319) Non-credit discount at acquisition (18,814) Fair value of acquired PCD loans $ 1,833,139 |
Business Acquisition, Pro Forma Information | The following table summarizes supplemental pro forma financial information giving effect to the merger as if it had been completed on January 1, 2021: Three Months Ended Six Months Ended 2021 2022 2021 (in thousands) Net interest income $ 369,549 $ 865,766 $ 728,419 Non-interest income 58,069 134,483 105,527 Net income 104,639 358,427 211,823 |
Earnings Per Common Share (Tabl
Earnings Per Common Share (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands, except for share data) Net income available to common shareholders $ 93,241 $ 117,340 $ 206,797 $ 229,878 Basic weighted average number of common shares outstanding 506,302,464 405,963,209 464,172,210 405,560,146 Plus: Common stock equivalents 2,176,742 2,697,569 2,148,473 2,592,312 Diluted weighted average number of common shares outstanding 508,479,206 408,660,778 466,320,683 408,152,458 Earnings per common share: Basic $ 0.18 $ 0.29 $ 0.45 $ 0.57 Diluted 0.18 0.29 0.44 0.56 |
Accumulated Other Comprehensi_2
Accumulated Other Comprehensive Loss (Tables) | 6 Months Ended |
Jun. 30, 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 and six months ended June 30, 2022: Components of Accumulated Other Comprehensive Loss Total Unrealized Gains Unrealized Gains Defined (in thousands) Balance at March 31, 2022 $ (29,716) $ (728) $ (25,654) $ (56,098) Other comprehensive loss before reclassification (52,269) (23) — (52,292) Amounts reclassified from other comprehensive (loss) income — (80) 133 53 Other comprehensive (loss) income, net (52,269) (103) 133 (52,239) Balance at June 30, 2022 $ (81,985) $ (831) $ (25,521) $ (108,337) Components of Accumulated Other Comprehensive Loss Total Unrealized Gains Unrealized Gains Defined (in thousands) Balance at December 31, 2021 $ 9,186 $ (1,332) $ (25,786) $ (17,932) Other comprehensive (loss) gain before reclassification (91,161) 195 — (90,966) Amounts reclassified from other comprehensive (loss) income (10) 306 265 561 Other comprehensive (loss) income, net (91,171) 501 265 (90,405) Balance at June 30, 2022 $ (81,985) $ (831) $ (25,521) $ (108,337) |
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 and six months ended June 30, 2022 and 2021: Amounts Reclassified from Three Months Ended Six Months Ended Components of Accumulated Other Comprehensive Loss 2022 2021 2022 2021 Income Statement Line Item (in thousands) Unrealized (losses) gains on AFS securities before tax $ — $ (103) $ 14 $ (162) (Losses) gains on securities transactions, net Tax effect — 27 (4) 42 Total net of tax — (76) 10 (120) Unrealized gains (losses) on derivatives (cash flow hedges) before tax 116 (749) (426) (1,664) Interest expense Tax effect (36) 215 120 479 Total net of tax 80 (534) (306) (1,185) Defined benefit pension plan: Amortization of actuarial net loss (184) (387) (367) (775) * Tax effect 51 109 102 217 Total net of tax (133) (278) (265) (558) Total reclassifications, net of tax $ (53) $ (888) $ (561) $ (1,863) * Amortization of actuarial net loss is included in the computation of net periodic pension cost recognized within other non-interest expense. |
Fair Value Measurement of Ass_2
Fair Value Measurement of Assets and Liabilities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 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). June 30, Fair Value Measurements at Reporting Date Using: Quoted Prices Significant Significant (in thousands) Recurring fair value measurements: Assets Investment securities: Equity securities (1) $ 35,931 $ 24,683 $ — $ — Available for sale debt securities: U.S. Treasury securities 292,398 292,398 — — U.S. government agency securities 30,533 — 30,533 — Obligations of states and political subdivisions 157,478 — 157,478 — Residential mortgage-backed securities 721,036 — 721,036 — Corporate and other debt securities 181,106 — 181,106 — Total available for sale debt securities 1,382,551 292,398 1,090,153 — Loans held for sale (2) 18,348 — 18,348 — Other assets (3) 344,189 — 344,189 — Total assets $ 1,781,019 $ 317,081 $ 1,452,690 $ — Liabilities Other liabilities (3) $ 364,266 $ — $ 364,266 $ — Total liabilities $ 364,266 $ — $ 364,266 $ — Non-recurring fair value measurements: Collateral dependent loans $ 66,144 $ — $ — $ 66,144 Foreclosed assets 1,200 — — 1,200 Total $ 67,344 $ — $ — $ 67,344 Fair Value Measurements at Reporting Date Using: December 31, Quoted Prices Significant Significant (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 $11.2 million and $11.6 million at June 30, 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 $18.3 million and $136.3 million at June 30, 2022 and December 31, 2021, respectively. (3) Derivative financial instruments are included in this categor y. |
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 June 30, 2022 and December 31, 2021 were as follows: Fair Value June 30, 2022 December 31, 2021 Carrying Fair Value Carrying Fair Value (in thousands) Financial assets Cash and due from banks Level 1 $ 481,414 $ 481,414 $ 205,156 $ 205,156 Interest bearing deposits with banks Level 1 906,898 906,898 1,844,764 1,844,764 Equity securities (1) Level 3 5,785 5,785 3,629 3,629 Held to maturity debt securities: U.S. Treasury securities Level 1 67,238 67,782 67,558 71,661 U.S. government agency securities Level 2 259,711 243,354 6,265 6,378 Obligations of states and political subdivisions Level 2 504,767 486,334 337,962 344,164 Residential mortgage-backed securities Level 2 2,775,928 2,492,737 2,166,142 2,152,301 Trust preferred securities Level 2 37,033 31,453 37,020 31,916 Corporate and other debt securities Level 2 75,300 72,055 53,750 54,185 Total held to maturity debt securities (2) 3,719,977 3,393,715 2,668,697 2,660,605 Net loans Level 3 43,091,958 42,056,562 33,794,455 33,283,251 Accrued interest receivable Level 1 134,682 134,682 96,882 96,882 Federal Reserve Bank and Federal Home Loan Bank stock (3) Level 2 268,133 268,133 206,450 206,450 Financial liabilities Deposits without stated maturities Level 1 39,687,510 39,687,510 31,945,368 31,945,368 Deposits with stated maturities Level 2 4,193,541 4,181,719 3,687,044 3,670,113 Short-term borrowings Level 1 1,522,804 1,488,738 655,726 637,490 Long-term borrowings Level 2 1,403,805 1,329,047 1,423,676 1,404,184 Junior subordinated debentures issued to capital trusts Level 2 56,587 43,695 56,413 46,306 Accrued interest payable (4) Level 1 6,137 6,137 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. |
Investment Securities (Tables)
Investment Securities (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021 were as follows: Amortized Gross Gross Fair Value (in thousands) June 30, 2022 U.S. Treasury securities $ 305,371 $ — $ (12,973) $ 292,398 U.S. government agency securities 31,083 42 (592) 30,533 Obligations of states and political subdivisions: Obligations of states and state agencies 13,252 10 (331) 12,931 Municipal bonds 173,450 13 (28,916) 144,547 Total obligations of states and political subdivisions 186,702 23 (29,247) 157,478 Residential mortgage-backed securities 780,624 216 (59,804) 721,036 Corporate and other debt securities 191,155 288 (10,337) 181,106 Total $ 1,494,935 $ 569 $ (112,953) $ 1,382,551 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 June 30, 2022 and December 31, 2021 were as follows: Less than More than Total Fair Unrealized Fair Unrealized Fair Unrealized (in thousands) June 30, 2022 U.S. Treasury securities $ 292,397 $ (12,973) $ — $ — $ 292,397 $ (12,973) U.S. government agency securities 26,224 (575) 1,202 (17) 27,426 (592) Obligations of states and political subdivisions: Obligations of states and state agencies 9,315 (331) — — 9,315 (331) Municipal bonds 141,951 (28,916) — — 141,951 (28,916) Total obligations of states and political subdivisions 151,266 (29,247) — — 151,266 (29,247) Residential mortgage-backed securities 660,060 (52,782) 51,630 (7,022) 711,690 (59,804) Corporate and other debt securities 148,818 (10,337) — — 148,818 (10,337) Total $ 1,278,765 $ (105,914) $ 52,832 $ (7,039) $ 1,331,597 $ (112,953) 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 June 30, 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. June 30, 2022 Amortized Fair (in thousands) Due in one year $ 13,002 $ 12,941 Due after one year through five years 179,567 176,480 Due after five years through ten years 249,507 237,046 Due after ten years 272,235 235,048 Residential mortgage-backed securities 780,624 721,036 Total $ 1,494,935 $ 1,382,551 |
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 June 30, 2022 and December 31, 2021 were as follows: Amortized Gross Gross Fair Value (in thousands) June 30, 2022 U.S. Treasury securities $ 67,238 $ 573 $ (29) $ 67,782 U.S. government agency securities 259,711 138 (16,495) 243,354 Obligations of states and political subdivisions: Obligations of states and state agencies 102,677 222 (2,468) 100,431 Municipal bonds 402,090 520 (16,707) 385,903 Total obligations of states and political subdivisions 504,767 742 (19,175) 486,334 Residential mortgage-backed securities 2,775,928 814 (284,005) 2,492,737 Trust preferred securities 37,033 3 (5,583) 31,453 Corporate and other debt securities 75,300 31 (3,276) 72,055 Total $ 3,719,977 $ 2,301 $ (328,563) $ 3,393,715 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 June 30, 2022 and December 31, 2021 were as follows: Less than More than Total Fair Value Unrealized Fair Value Unrealized Fair Value Unrealized (in thousands) June 30, 2022 U.S. Treasury securities $ 34,914 $ (29) $ — $ — $ 34,914 $ (29) U.S. government agency securities 220,737 (16,495) — — 220,737 (16,495) Obligations of states and political subdivisions: Obligations of states and state agencies 61,460 (1,466) 9,610 (1,002) 71,070 (2,468) Municipal bonds 251,294 (16,606) 1,311 (101) 252,605 (16,707) Total obligations of states and political subdivisions 312,754 (18,072) 10,921 (1,103) 323,675 (19,175) Residential mortgage-backed securities 1,931,648 (197,148) 524,191 (86,857) 2,455,839 (284,005) Trust preferred securities — — 30,450 (5,583) 30,450 (5,583) Corporate and other debt securities 67,524 (3,276) — — 67,524 (3,276) Total $ 2,567,577 $ (235,020) $ 565,562 $ (93,543) $ 3,133,139 $ (328,563) 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 June 30, 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. June 30, 2022 Amortized Fair (in thousands) Due in one year $ 33,206 $ 33,186 Due after one year through five years 220,521 219,462 Due after five years through ten years 73,729 72,398 Due after ten years 616,593 575,932 Residential mortgage-backed securities 2,775,928 2,492,737 Total $ 3,719,977 $ 3,393,715 |
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 June 30, 2022 and December 31, 2021. AAA/AA/A Rated BBB rated Non-investment grade rated Non-rated Total (in thousands) June 30, 2022 U.S. Treasury securities $ 67,238 $ — $ — $ — $ 67,238 U.S. government agency securities 259,711 — — — 259,711 Obligations of states and political subdivisions: Obligations of states and state agencies 76,322 — 5,537 20,818 102,677 Municipal bonds 346,261 — — 55,829 402,090 Total obligations of states and political subdivisions 422,583 — 5,537 76,647 504,767 Residential mortgage-backed securities 2,775,928 — — — 2,775,928 Trust preferred securities — — — 37,033 37,033 Corporate and other debt securities 2,000 6,000 — 67,300 75,300 Total $ 3,527,460 $ 6,000 $ 5,537 $ 180,980 $ 3,719,977 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 |
Loans and Allowance for Credi_2
Loans and Allowance for Credit Losses for Loans (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Receivables [Abstract] | |
Schedule of Loan Portfolio | The detail of the loan portfolio as of June 30, 2022 and December 31, 2021 was as follows: June 30, 2022 December 31, 2021 (in thousands) Loans: Commercial and industrial: Commercial and industrial $ 8,378,454 $ 5,411,601 Commercial and industrial PPP loans * 136,004 435,950 Total commercial and industrial loans 8,514,458 5,847,551 Commercial real estate: Commercial real estate 23,535,086 18,935,486 Construction 3,374,373 1,854,580 Total commercial real estate loans 26,909,459 20,790,066 Residential mortgage 5,005,069 4,545,064 Consumer: Home equity 431,455 400,779 Automobile 1,673,482 1,570,036 Other consumer 1,026,854 1,000,161 Total consumer loans 3,131,791 2,970,976 Total loans $ 43,560,777 $ 34,153,657 * Represents SBA Paycheck Protection Program (PPP) loans, net of unearned fees totaling $2.5 million and $12.1 million at June 30, 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 June 30, 2022 and December 31, 2021: Past Due and Non-Accrual Loans 30-59 Days 60-89 Days 90 Days or More Non-Accrual Loans Total Past Due Loans Current Loans Total Loans Non-Accrual Loans Without Allowance for Loan Losses (in thousands) June 30, 2022 Commercial and industrial $ 7,143 $ 3,870 $ 15,470 $ 148,404 $ 174,887 $ 8,339,571 $ 8,514,458 $ 6,648 Commercial real estate: Commercial real estate 10,516 630 — 85,807 96,953 23,438,133 23,535,086 68,128 Construction 9,108 3,862 — 49,780 62,750 3,311,623 3,374,373 9,494 Total commercial real estate loans 19,624 4,492 — 135,587 159,703 26,749,756 26,909,459 77,622 Residential mortgage 12,326 2,410 1,188 25,847 41,771 4,963,298 5,005,069 14,889 Consumer loans: Home equity 377 2 — 2,920 3,299 428,156 431,455 126 Automobile 4,696 588 267 262 5,813 1,667,669 1,673,482 — Other consumer 936 112 — 97 1,145 1,025,709 1,026,854 — Total consumer loans 6,009 702 267 3,279 10,257 3,121,534 3,131,791 126 Total $ 45,102 $ 11,474 $ 16,925 $ 313,117 $ 386,618 $ 43,174,159 $ 43,560,777 $ 99,285 Past Due and Non-Accrual Loans 30-59 60-89 90 Days or More 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 June 30, 2022 and December 31, 2021: Term Loans Amortized Cost Basis by Origination Year June 30, 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 $ 1,087,572 $ 1,322,828 $ 740,213 $ 407,985 $ 306,393 $ 423,058 $ 3,964,927 $ 184 $ 8,253,160 Special Mention 2,654 7,639 670 2,827 4,987 5,708 57,210 10 81,705 Substandard — 2,049 5,704 3,727 4,722 4,790 70,131 66 91,189 Doubtful 1,102 141 — 2,712 — 78,067 6,382 — 88,404 Total commercial and industrial $ 1,091,328 $ 1,332,657 $ 746,587 $ 417,251 $ 316,102 $ 511,623 $ 4,098,650 $ 260 $ 8,514,458 Commercial real estate Risk Rating: Pass $ 3,704,273 $ 5,379,241 $ 3,371,598 $ 2,752,901 $ 1,659,319 $ 5,504,795 $ 288,599 $ 13,193 $ 22,673,919 Special Mention 73,171 40,956 82,875 34,661 64,861 129,785 15,052 — 441,361 Substandard — 43,945 39,372 39,803 58,886 229,266 8,358 — 419,630 Doubtful — — — — — 176 — — 176 Total commercial real estate $ 3,777,444 $ 5,464,142 $ 3,493,845 $ 2,827,365 $ 1,783,066 $ 5,864,022 $ 312,009 $ 13,193 $ 23,535,086 Construction Risk Rating: Pass $ 472,849 $ 631,399 $ 157,587 $ 59,657 $ 10,664 $ 25,089 $ 1,900,402 $ — $ 3,257,647 Special Mention 28,296 — — — — — 25,610 — 53,906 Substandard — 13,059 — — — 17,616 19,531 — 50,206 Doubtful 498 643 11,473 — — — — — 12,614 Total construction $ 501,643 $ 645,101 $ 169,060 $ 59,657 $ 10,664 $ 42,705 $ 1,945,543 $ — $ 3,374,373 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 Term Loans Amortized Cost Basis by Origination Year June 30, 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 $ 768,137 $ 1,518,240 $ 593,271 $ 515,561 $ 363,811 $ 1,162,383 $ 75,509 $ — $ 4,996,912 90 days or more past due — — 1,370 1,511 2,044 3,232 — — 8,157 Total residential mortgage $ 768,137 $ 1,518,240 $ 594,641 $ 517,072 $ 365,855 $ 1,165,615 $ 75,509 $ — $ 5,005,069 Consumer loans Home equity Performing $ 21,198 $ 13,068 $ 4,946 $ 5,645 $ 6,212 $ 15,064 $ 324,606 $ 39,702 $ 430,441 90 days or more past due — — — — — 1 425 588 1,014 Total home equity 21,198 13,068 4,946 5,645 6,212 15,065 325,031 40,290 431,455 Automobile Performing 408,872 621,275 252,127 215,999 113,834 60,789 — — 1,672,896 90 days or more past due — 90 57 132 214 93 — — 586 Total automobile 408,872 621,365 252,184 216,131 114,048 60,882 — — 1,673,482 Other consumer Performing 14,481 3,094 7,339 7,610 7,156 4,821 982,353 — 1,026,854 Total other consumer 14,481 3,094 7,339 7,610 7,156 4,821 982,353 — 1,026,854 Total consumer $ 444,551 $ 637,527 $ 264,469 $ 229,386 $ 127,416 $ 80,768 $ 1,307,384 $ 40,290 $ 3,131,791 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 and six months ended June 30, 2022 and 2021. Post-modification amounts are presented as of June 30, 2022 and 2021. Three Months Ended June 30, 2022 2021 Troubled Debt Restructurings Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification ($ in thousands) Commercial and industrial 49 $ 82,120 $ 78,051 9 $ 8,592 $ 8,529 Commercial real estate 1 8,811 8,735 6 12,237 12,223 Residential mortgage 7 4,970 4,969 2 1,089 1,079 Consumer 1 125 124 — — — Total 58 $ 96,026 $ 91,879 17 $ 21,918 $ 21,831 Six Months Ended June 30, 2022 2021 Troubled Debt Restructurings Number Pre-Modification Post-Modification Number Pre-Modification Post-Modification ($ in thousands) Commercial and industrial 60 $ 91,804 $ 87,685 13 $ 20,855 $ 19,648 Commercial real estate 3 14,072 13,986 6 12,237 12,223 Residential mortgage 8 5,090 5,087 8 2,618 2,586 Consumer 1 125 124 1 169 166 Total 72 $ 111,091 $ 106,882 28 $ 35,879 $ 34,623 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 and six months ended June 30, 2022 and 2021 were as follows: Three Months Ended June 30, 2022 2021 Troubled Debt Restructurings Subsequently Defaulted Number of Recorded Investment Number of Recorded ($ in thousands) Construction 2 $ 17,599 — $ — Residential mortgage — — 1 445 Total 2 $ 17,599 1 $ 445 Six Months Ended June 30, 2022 2021 Troubled Debt Restructurings Subsequently Defaulted Number of Recorded Investment Number of Recorded ($ in thousands) Commercial and industrial — $ — 15 $ 12,384 Construction 2 17,599 — — Residential mortgage — — 2 692 Total 2 $ 17,599 17 $ 13,076 |
Summary of Collateral Dependent Loans | The following table presents collateral dependent loans by class as of June 30, 2022 and December 31, 2021: June 30, December 31, (in thousands) Collateral dependent loans: Commercial and industrial * $ 100,783 $ 95,335 Commercial real estate: Commercial real estate 94,248 110,174 Construction 50,176 — Total commercial real estate loans 144,424 110,174 Residential mortgage 21,695 35,745 Home equity 2 4 Total $ 266,904 $ 241,258 |
Summary of Allowance for Credit Losses | The following table summarizes the ACL for loans at June 30, 2022 and December 31, 2021: June 30, December 31, (in thousands) Components of allowance for credit losses for loans: Allowance for loan losses $ 468,819 $ 359,202 Allowance for unfunded credit commitments 22,144 16,500 Total allowance for credit losses for loans $ 490,963 $ 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 Six Months Ended 2022 2021 2022 2021 (in thousands) Components of provision for credit losses for loans: Provision for loan losses $ 38,310 $ 5,810 $ 41,568 $ 14,502 Provision for unfunded credit commitments 5,402 2,967 5,644 3,289 Total provision for credit losses for loans $ 43,712 $ 8,777 $ 47,212 $ 17,791 |
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 and six months ended June 30, 2022 and 2021: Commercial Commercial Residential Consumer Total (in thousands) Three Months Ended Allowance for loan losses: Beginning balance $ 101,203 $ 219,949 $ 28,189 $ 13,169 $ 362,510 Allowance for purchased credit deteriorated (PCD) loans * 33,452 36,618 206 43 70,319 Loans charged-off (4,540) — (1) (726) (5,267) Charged-off loans recovered 1,952 224 74 697 2,947 Net (charge-offs) recoveries (2,588) 224 73 (29) (2,320) Provision for loan losses 12,472 20,436 1,421 3,981 38,310 Ending balance $ 144,539 $ 277,227 $ 29,889 $ 17,164 $ 468,819 Three Months Ended Allowance for losses: Beginning balance $ 126,408 $ 174,236 $ 27,172 $ 15,064 $ 342,880 Loans charged-off (10,893) — (1) (1,480) (12,374) Charged-off loans recovered 678 665 191 1,474 3,008 Net (charge-offs) recoveries (10,215) 665 190 (6) (9,366) (Credit) provision for loan losses (6,504) 14,238 (2,059) 135 5,810 Ending balance $ 109,689 $ 189,139 $ 25,303 $ 15,193 $ 339,324 Commercial Commercial Residential Consumer Total (in thousands) Six Months Ended Allowance for loan losses: Beginning balance $ 103,090 $ 217,490 $ 25,120 $ 13,502 $ 359,202 Allowance for PCD loans * 33,452 36,618 206 43 70,319 Loans charged-off (6,111) (173) (27) (1,551) (7,862) Charged-off loans recovered 2,776 331 531 1,954 5,592 Net (charge-offs) recoveries (3,335) 158 504 403 (2,270) Provision for loan losses 11,332 22,961 4,059 3,216 41,568 Ending balance $ 144,539 $ 277,227 $ 29,889 $ 17,164 $ 468,819 Six Months Ended Allowance for losses: Beginning balance $ 131,070 $ 164,113 $ 28,873 $ 16,187 $ 340,243 Loans charged-off (18,035) (382) (139) (2,618) (21,174) Charged-off loans recovered 2,267 734 348 2,404 5,753 Net (charge-offs) recoveries (15,768) 352 209 (214) (15,421) (Credit) provision for loan losses (5,613) 24,674 (3,779) (780) 14,502 Ending balance $ 109,689 $ 189,139 $ 25,303 $ 15,193 $ 339,324 * Represents the allowance for acquired PCD loans, net of PCD loan charge-offs totaling $62.4 million in the second quarter 2022. |
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 June 30, 2022 and December 31, 2021. Commercial Commercial Residential Consumer Total (in thousands) June 30, 2022 Allowance for loan losses: Individually evaluated for credit losses $ 93,698 $ 10,757 $ 641 $ 100 $ 105,196 Collectively evaluated for credit losses 50,841 266,470 29,248 17,064 363,623 Total $ 144,539 $ 277,227 $ 29,889 $ 17,164 $ 468,819 Loans: Individually evaluated for credit losses $ 164,235 $ 169,737 $ 32,303 $ 1,531 $ 367,806 Collectively evaluated for credit losses 8,350,223 26,739,722 4,972,766 3,130,260 43,192,971 Total $ 8,514,458 $ 26,909,459 $ 5,005,069 $ 3,131,791 $ 43,560,777 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 |
Goodwill and Other Intangible_2
Goodwill and Other Intangible Assets (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Goodwill and Intangible Assets Disclosure [Abstract] | |
Schedule of Goodwill | The changes in the carrying amount of goodwill as allocated to Valley's business segments, or reporting units thereof, for goodwill impairment analysis were: Business Segment / Reporting Unit * Wealth Consumer Commercial Total (in thousands) Balance at December 31, 2021 $ 36,399 $ 284,366 $ 1,138,243 $ 1,459,008 Goodwill from business combinations 15,564 85 396,848 412,497 Balance at June 30, 2022 $ 51,963 $ 284,451 $ 1,535,091 $ 1,871,505 * Valley’s Wealth Management Division is comprised of trust, asset management, brokerage, 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 June 30, 2022 and December 31, 2021: Gross Accumulated Net (in thousands) June 30, 2022 Loan servicing rights $ 119,142 $ (93,697) $ 25,445 Core deposits 223,670 (76,447) 147,223 Other 51,299 (5,325) 45,974 Total other intangible assets $ 394,111 $ (175,469) $ 218,642 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 Core Other (in thousands) 2022 $ 1,792 $ 16,039 $ 3,509 2023 3,253 28,746 6,522 2024 2,849 24,897 5,951 2025 2,483 21,048 5,380 2026 2,153 17,223 4,805 |
Derivative Instruments and He_2
Derivative Instruments and Hedging Activities (Tables) | 6 Months Ended |
Jun. 30, 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: June 30, 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 $ 490 $ — $ 200,000 $ — $ 310 $ 700,000 Fair value hedge interest rate swaps — 22,056 300,000 — 3,335 300,000 Total derivatives designated as hedging instruments $ 490 $ 22,056 $ 500,000 $ — $ 3,645 $ 1,000,000 Derivatives not designated as hedging instruments: Interest rate swaps and other contracts * $ 318,521 $ 318,277 $ 12,523,601 $ 180,701 $ 47,044 $ 10,179,294 Foreign currency derivatives 24,489 23,481 1,590,130 311 233 122,166 Mortgage banking derivatives 689 452 86,421 488 1,454 312,428 Total derivatives not designated as hedging instruments $ 343,699 $ 342,210 $ 14,200,152 $ 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 loss, on a pre-tax basis, related to interest rate derivatives designated as hedges of cash flows were as follows: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Amount of gain (loss) reclassified from accumulated other comprehensive loss to interest expense $ 116 $ (749) $ (426) $ (1,664) Amount of gain (loss) recognized in other comprehensive loss 121 (158) 441 19 |
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 Six Months Ended 2022 2021 2022 2021 (in thousands) Derivative - interest rate swap: Interest expense $ 76 $ 80 $ 606 $ 80 Hedged item - subordinated debt Interest expense $ (147) $ (83) $ (477) $ (83) |
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, 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 $ 277,486 $ (22,514) |
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 Six Months Ended 2022 2021 2022 2021 (in thousands) Non-designated hedge interest rate swaps and credit derivatives Other non-interest expense $ 1,143 $ (2,210) $ (1,654) $ (425) |
Balance Sheet Offsetting (Table
Balance Sheet Offsetting (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021. Gross Amounts Not Offset Gross Amounts Gross Amounts Net Amounts Financial Cash Net (in thousands) June 30, 2022 Assets Interest rate swaps $ 319,011 $ — $ 319,011 $ 11,492 $ 307,724 $ — Liabilities Interest rate swaps $ 340,333 $ — $ 340,333 $ (11,492) $ (1,142) $ 327,699 December 31, 2021 Assets Interest rate swaps $ 180,701 $ — $ 180,701 $ — $ — $ 180,701 Liabilities Interest rate swaps $ 50,689 $ — $ 50,689 $ — $ (44,231) $ 6,458 * 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 June 30, 2022 and December 31, 2021. Gross Amounts Not Offset Gross Amounts Gross Amounts Net Amounts Financial Cash Net (in thousands) June 30, 2022 Assets Interest rate swaps $ 319,011 $ — $ 319,011 $ 11,492 $ 307,724 $ — Liabilities Interest rate swaps $ 340,333 $ — $ 340,333 $ (11,492) $ (1,142) $ 327,699 December 31, 2021 Assets Interest rate swaps $ 180,701 $ — $ 180,701 $ — $ — $ 180,701 Liabilities Interest rate swaps $ 50,689 $ — $ 50,689 $ — $ (44,231) $ 6,458 * Cash collateral received (pledged) to our counterparties in relation to market value exposures of OTC derivative contacts in a liability position. |
Tax Credit Investments (Tables)
Tax Credit Investments (Tables) | 6 Months Ended |
Jun. 30, 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 June 30, 2022 and December 31, 2021: June 30, December 31, (in thousands) Other Assets: Affordable housing tax credit investments, net $ 26,003 $ 15,343 Other tax credit investments, net 49,483 57,006 Total tax credit investments, net $ 75,486 $ 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 and six months ended June 30, 2022 and 2021: Three Months Ended Six Months Ended 2022 2021 2022 2021 (in thousands) Components of Income Tax Expense: Affordable housing tax credits and other tax benefits $ 1,614 $ 899 $ 2,358 $ 1,796 Other tax credit investment credits and tax benefits 2,539 2,743 5,090 5,428 Total reduction in income tax expense $ 4,153 $ 3,642 $ 7,448 $ 7,224 Amortization of Tax Credit Investments: Affordable housing tax credit investment losses $ 653 $ 460 $ 1,068 $ 1,003 Affordable housing tax credit investment impairment losses 363 431 625 772 Other tax credit investment losses 386 351 695 524 Other tax credit investment impairment losses 1,791 1,730 3,701 3,417 Total amortization of tax credit investments recorded in non-interest expense $ 3,193 $ 2,972 $ 6,089 $ 5,716 |
Operating Segments (Tables)
Operating Segments (Tables) | 6 Months Ended |
Jun. 30, 2022 | |
Segment Reporting [Abstract] | |
Schedule of Financial Data for Business Segments | The following tables represent the financial data for Valley’s operating segments for the three and six months ended June 30, 2022 and 2021: Three Months Ended June 30, 2022 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,967,305 $ 34,549,982 $ 6,373,943 $ 48,891,230 Interest income $ 63,137 $ 352,440 $ 37,370 $ 452,947 Interest expense 4,723 19,735 10,329 34,787 Net interest income 58,414 332,705 27,041 418,160 Provision for credit losses 5,402 38,310 286 43,998 Net interest income after provision for credit losses 53,012 294,395 26,755 374,162 Non-interest income 17,086 14,425 27,022 58,533 Non-interest expense 18,791 24,448 256,491 299,730 Internal transfer expense (income) 37,629 157,365 (194,994) — Income (loss) before income taxes $ 13,678 $ 127,007 $ (7,720) $ 132,965 Return on average interest earning assets (pre-tax) 0.69 % 1.47 % (0.48) % 1.09 % Three Months Ended June 30, 2021 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,150,137 $ 25,485,161 $ 5,272,116 $ 37,907,414 Interest income $ 59,419 $ 255,895 $ 18,334 $ 333,648 Interest expense 5,192 18,467 9,082 32,741 Net interest income 54,227 237,428 9,252 300,907 Provision (credit) for credit losses 711 8,066 (30) 8,747 Net interest income after provision for credit losses 53,516 229,362 9,282 292,160 Non-interest income 21,915 9,819 11,392 43,126 Non-interest expense 19,792 27,241 124,860 171,893 Internal transfer expense (income) 19,862 71,207 (91,069) — Income (loss) before income taxes $ 35,777 $ 140,733 $ (13,117) $ 163,393 Return on average interest earning assets (pre-tax) 2.00 % 2.21 % (1.00) % 1.72 % Six Months Ended June 30, 2022 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,848,764 $ 30,743,387 $ 6,017,817 $ 44,609,968 Interest income $ 122,596 $ 610,346 $ 60,463 $ 793,405 Interest expense 7,930 31,062 18,584 57,576 Net interest income (loss) 114,666 579,284 41,879 735,829 Provision for credit losses 7,275 39,937 343 47,555 Net interest income (loss) after provision for credit losses 107,391 539,347 41,536 688,274 Non-interest income 30,903 31,305 35,595 97,803 Non-interest expense 35,359 49,533 412,178 497,070 Internal transfer expense (income) 66,276 257,281 (323,557) — Income (loss) before income taxes $ 36,659 $ 263,838 $ (11,490) $ 289,007 Return on average interest earning assets (pre-tax) 0.93 % 1.72 % (0.38) % 1.30 % Six Months Ended June 30, 2021 Consumer Commercial Treasury and Corporate Other Total ($ in thousands) Average interest earning assets $ 7,099,973 $ 25,509,061 $ 5,039,222 $ 37,648,256 Interest income $ 120,264 $ 508,231 $ 36,951 $ 665,446 Interest expense 11,607 41,702 18,563 71,872 Net interest income 108,657 466,529 18,388 593,574 (Credit) provision for credit losses (1,924) 19,715 (388) 17,403 Net interest income after provision for credit losses 110,581 446,814 18,776 576,171 Non-interest income 35,600 17,533 21,226 74,359 Non-interest expense 39,641 52,772 239,693 332,106 Internal transfer expense (income) 39,364 141,790 (181,154) — Income (loss) before income taxes $ 67,176 $ 269,785 $ (18,537) $ 318,424 Return on average interest earning assets (pre-tax) 1.89 % 2.12 % (0.74) % 1.69 % |
Business Combinations - Narrati
Business Combinations - Narrative (Details) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Apr. 01, 2022 USD ($) $ / shares shares | Feb. 01, 2022 USD ($) | Dec. 01, 2021 USD ($) Branch shares | Jun. 30, 2022 USD ($) | Jun. 30, 2022 USD ($) | Dec. 31, 2021 USD ($) | |
Business Acquisition [Line Items] | ||||||
Non-credit discount at acquisition | $ 18,814 | |||||
Goodwill | $ 1,871,505 | $ 1,871,505 | $ 1,459,008 | |||
Assets | 54,438,807 | 54,438,807 | 43,446,443 | |||
Loans | 43,091,958 | 43,091,958 | 33,794,455 | |||
Deposits | 43,881,051 | 43,881,051 | $ 35,632,412 | |||
Goodwill increase | 5,000 | |||||
Merger expenses | $ 54,500 | $ 58,900 | ||||
Other | ||||||
Business Acquisition [Line Items] | ||||||
Finite-lived intangible asset, useful life | 10 years | |||||
Finite-lived intangible assets, remaining amortization period | 14 years | |||||
Westchester Bank Holding Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Assets | $ 1,400,000 | |||||
Loans | 915,000 | |||||
Deposits | $ 1,200,000 | |||||
Number of branches | Branch | 7 | |||||
Landmark Insurance of the Palm Beaches | ||||||
Business Acquisition [Line Items] | ||||||
Cash paid in acquisition | $ 8,600 | |||||
Contingent consideration | 1,000 | |||||
Goodwill | 4,400 | |||||
Other intangible assets | $ 6,200 | |||||
Westchester Bank Holding Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued for every share owned (in shares) | shares | 229.645 | |||||
Shares issued in connection with acquisition (in shares) | shares | 15,700,000 | |||||
Consideration transferred | $ 211,100 | |||||
Bank Leumi Le-Israel Corporation | ||||||
Business Acquisition [Line Items] | ||||||
Number of shares issued for every share owned (in shares) | shares | 3.8025 | |||||
Cash paid for every share owned (in dollars per share) | $ / shares | $ 5.08 | |||||
Shares issued in connection with acquisition (in shares) | shares | 85,000,000 | |||||
Cash paid in acquisition | $ 113,400 | |||||
Consideration transferred | $ 1,200,000 | |||||
Percentage of common stock transferred | 14% |
Business Combination - Assets A
Business Combination - Assets Acquired and Liabilities Assumed in Acquisition (Details) - USD ($) $ in Thousands | Apr. 01, 2022 | Jun. 30, 2022 | Dec. 31, 2021 |
Assets acquired: | |||
Goodwill | $ 1,871,505 | $ 1,459,008 | |
Bank Leumi USA | |||
Assets acquired: | |||
Cash and cash equivalents | $ 443,588 | ||
Equity securities | 6,239 | ||
Available for sale debt securities | 505,928 | ||
Held to maturity debt securities | 806,627 | ||
Loans | 5,914,389 | ||
Allowance for loan losses | (70,319) | ||
Loans, net | 5,844,070 | ||
Premises and equipment | 38,827 | ||
Lease right of use assets | 49,273 | ||
Bank owned life insurance | 126,861 | ||
Accrued interest receivable | 25,717 | ||
Goodwill | 403,151 | ||
Other intangible assets | 153,380 | ||
Other assets | 158,352 | ||
Total assets acquired | 8,562,013 | ||
Liabilities assumed: | |||
Non-interest bearing | 4,511,537 | ||
Savings, NOW and money market | 2,224,834 | ||
Time | 293,626 | ||
Total deposits | 7,029,997 | ||
Short-term borrowings | 103,794 | ||
Lease liabilities | 79,683 | ||
Accrued expense and other liabilities | 117,269 | ||
Total liabilities assumed | 7,330,743 | ||
Common stock issued in acquisition | 1,117,829 | ||
Cash paid in acquisition | $ 113,441 |
Business Combinations - Reconci
Business Combinations - Reconciliation Purchase Price and Par Value of PCD (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Apr. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2022 | |
Business Combination and Asset Acquisition [Abstract] | |||
Unpaid Principal Balance of PCD loans | $ 1,922,272 | ||
Allowance for credit losses at acquisition | (70,319) | $ (70,319) | $ (70,319) |
Non-credit discount at acquisition | (18,814) | ||
Fair value of acquired PCD loans | 1,833,139 | ||
Charge-offs | $ 62,400 | $ 62,400 |
Business Combinations - Busines
Business Combinations - Business Acquisition, Pro Forma Information (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |
Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Business Combination and Asset Acquisition [Abstract] | |||
Net interest income | $ 369,549 | $ 865,766 | $ 728,419 |
Non-interest income | 58,069 | 134,483 | 105,527 |
Net income | $ 104,639 | $ 358,427 | $ 211,823 |
Earnings Per Common Share (Deta
Earnings Per Common Share (Details) - USD ($) $ / shares in Units, $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Earnings Per Share Reconciliation | ||||
Net income available to common shareholders | $ 93,241 | $ 117,340 | $ 206,797 | $ 229,878 |
Basic weighted average number of common shares outstanding (in shares) | 506,302,464 | 405,963,209 | 464,172,210 | 405,560,146 |
Plus: Common stock equivalents (in shares) | 2,176,742 | 2,697,569 | 2,148,473 | 2,592,312 |
Diluted weighted average number of common shares outstanding (in shares) | 508,479,206 | 408,660,778 | 466,320,683 | 408,152,458 |
Earnings Per Common Share: | ||||
Basic (usd per share) | $ 0.18 | $ 0.29 | $ 0.45 | $ 0.57 |
Diluted (usd per share) | $ 0.18 | $ 0.29 | $ 0.44 | $ 0.56 |
Accumulated Other Comprehensi_3
Accumulated Other Comprehensive Loss - Components of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | $ 5,096,384 | $ 4,659,670 | $ 5,084,066 | $ 4,592,120 |
Other comprehensive (loss) gain before reclassification | (52,292) | (90,966) | ||
Amounts reclassified from other comprehensive (loss) income | 53 | 561 | ||
Other comprehensive (loss) income, net | (52,239) | (730) | (90,405) | (10,017) |
Ending balance | 6,204,913 | 4,737,807 | 6,204,913 | 4,737,807 |
Total Accumulated Other Comprehensive Loss | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (56,098) | (17,005) | (17,932) | (7,718) |
Ending balance | (108,337) | $ (17,735) | (108,337) | $ (17,735) |
Unrealized Gains and Losses on Available for Sale (AFS) Securities | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (29,716) | 9,186 | ||
Other comprehensive (loss) gain before reclassification | (52,269) | (91,161) | ||
Amounts reclassified from other comprehensive (loss) income | 0 | (10) | ||
Other comprehensive (loss) income, net | (52,269) | (91,171) | ||
Ending balance | (81,985) | (81,985) | ||
Unrealized Gains and Losses on Derivatives | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (728) | (1,332) | ||
Other comprehensive (loss) gain before reclassification | (23) | 195 | ||
Amounts reclassified from other comprehensive (loss) income | (80) | 306 | ||
Other comprehensive (loss) income, net | (103) | 501 | ||
Ending balance | (831) | (831) | ||
Defined Benefit Pension Plan | ||||
Accumulated Other Comprehensive Income (Loss) | ||||
Beginning balance | (25,654) | (25,786) | ||
Other comprehensive (loss) gain before reclassification | 0 | 0 | ||
Amounts reclassified from other comprehensive (loss) income | 133 | 265 | ||
Other comprehensive (loss) income, net | 133 | 265 | ||
Ending balance | $ (25,521) | $ (25,521) |
Accumulated Other Comprehensi_4
Accumulated Other Comprehensive Loss - Reclassification from Each Component of Accumulated Other Comprehensive Loss (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||||
Jun. 30, 2022 | Mar. 31, 2022 | Jun. 30, 2021 | Mar. 31, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
(Losses) gains on securities transactions, net | $ (309) | $ 375 | $ (1,381) | $ 476 | ||
Tax effect | (36,552) | (42,881) | (75,866) | (82,202) | ||
Net income | 96,413 | $ 116,728 | 120,512 | $ 115,710 | 213,141 | 236,222 |
Interest expense | (34,787) | (32,741) | (57,576) | (71,872) | ||
Amortization of actuarial net loss | 22,284 | 11,341 | 37,646 | 23,743 | ||
Amounts Reclassified from Accumulated Other Comprehensive Loss | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Net income | (53) | (888) | (561) | (1,863) | ||
Interest expense | 116 | (749) | (426) | (1,664) | ||
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized (losses) gains on AFS securities before tax | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
(Losses) gains on securities transactions, net | 0 | (103) | 14 | (162) | ||
Tax effect | 0 | 27 | (4) | 42 | ||
Net income | 0 | (76) | 10 | (120) | ||
Amounts Reclassified from Accumulated Other Comprehensive Loss | Unrealized gains (losses) on derivatives (cash flow hedges) before tax | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Tax effect | (36) | 215 | 120 | 479 | ||
Net income | 80 | (534) | (306) | (1,185) | ||
Interest expense | 116 | (749) | (426) | (1,664) | ||
Amounts Reclassified from Accumulated Other Comprehensive Loss | Defined benefit pension plan | ||||||
Reclassification Out Of Accumulated Other Comprehensive Loss | ||||||
Tax effect | 51 | 109 | 102 | 217 | ||
Net income | (133) | (278) | (265) | (558) | ||
Amortization of actuarial net loss | $ (184) | $ (387) | $ (367) | $ (775) |
Fair Value Measurement of Ass_3
Fair Value Measurement of Assets and Liabilities - Recurring and Non-Recurring Basis (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | Recurring fair value measurements | ||
Investment securities: | ||
Equity securities | $ 35,931 | $ 32,844 |
Trading debt securities | 38,130 | |
Available for sale debt securities: | ||
Available for sale debt securities | 1,382,551 | 1,128,809 |
Loans held for sale | 18,348 | 139,516 |
Other assets | 344,189 | 181,500 |
Total assets | 1,781,019 | 1,520,799 |
Liabilities | ||
Other liabilities | 364,266 | 52,376 |
Total liabilities | 364,266 | 52,376 |
Fair Value | Recurring fair value measurements | U.S. government agency securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 30,533 | 20,925 |
Fair Value | Recurring fair value measurements | Obligations of states and political subdivisions | ||
Available for sale debt securities: | ||
Available for sale debt securities | 157,478 | 79,890 |
Fair Value | Recurring fair value measurements | Residential mortgage-backed securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 721,036 | 904,502 |
Fair Value | Recurring fair value measurements | Corporate and other debt securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 181,106 | 123,492 |
Fair Value | Recurring fair value measurements | U.S. Treasury securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 292,398 | |
Fair Value | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent loans | 66,144 | 47,871 |
Foreclosed assets | 1,200 | 2,931 |
Total | 67,344 | 50,802 |
Fair Value | Significant Unobservable Inputs (Level 3) | ||
Investment securities: | ||
Equity securities | 5,785 | 3,629 |
Equity securities | 41,716 | 36,473 |
Trading debt securities | 0 | 38,130 |
Available for sale debt securities: | ||
Available for sale debt securities | 1,382,551 | 1,128,809 |
Non-recurring fair value measurements: | ||
Unpaid principal balances of loans held for sale | 18,300 | 136,300 |
U.S. government agency securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 30,533 | 20,925 |
Obligations of states and political subdivisions | ||
Available for sale debt securities: | ||
Available for sale debt securities | 157,478 | 79,890 |
Residential mortgage-backed securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 721,036 | 904,502 |
Corporate and other debt securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 181,106 | 123,492 |
U.S. Treasury securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 292,398 | |
Quoted Prices in Active Markets for Identical Assets (Level 1) | Recurring fair value measurements | ||
Investment securities: | ||
Equity securities | 24,683 | 21,284 |
Trading debt securities | 0 | |
Available for sale debt securities: | ||
Available for sale debt securities | 292,398 | 0 |
Loans held for sale | 0 | 0 |
Other assets | 0 | 0 |
Total assets | 317,081 | 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) | Recurring fair value measurements | U.S. Treasury securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 292,398 | |
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 | 38,130 | |
Available for sale debt securities: | ||
Available for sale debt securities | 1,090,153 | 1,128,809 |
Loans held for sale | 18,348 | 139,516 |
Other assets | 344,189 | 181,500 |
Total assets | 1,452,690 | 1,487,955 |
Liabilities | ||
Other liabilities | 364,266 | 52,376 |
Total liabilities | 364,266 | 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 | 30,533 | 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 | 157,478 | 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 | 721,036 | 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 | 181,106 | 123,492 |
Significant Other Observable Inputs (Level 2) | Recurring fair value measurements | U.S. Treasury securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 0 | |
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 | |
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) | Recurring fair value measurements | U.S. Treasury securities | ||
Available for sale debt securities: | ||
Available for sale debt securities | 0 | |
Significant Unobservable Inputs (Level 3) | Non-recurring fair value measurements | ||
Non-recurring fair value measurements: | ||
Collateral dependent loans | 66,144 | 47,871 |
Foreclosed assets | 1,200 | 2,931 |
Total | 67,344 | 50,802 |
NAV | ||
Investment securities: | ||
Equity securities | $ 11,200 | $ 11,600 |
Fair Value Measurement of Ass_4
Fair Value Measurement of Assets and Liabilities - Additional Information (Details) $ in Millions | Jun. 30, 2022 USD ($) |
Fair Value, Balance Sheet Grouping, Financial Statement Captions [Line Items] | |
Collateral dependent loans amortized cost | $ 144.6 |
Specific valuation allowance allocations | $ 78.5 |
Discount adjustment of the appraisals of foreclosed assets | 0% |
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 | $ 66.1 |
Fair Value Measurement of Ass_5
Fair Value Measurement of Assets and Liabilities - Carrying Amounts and Estimated Fair Values (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Interest bearing deposits with banks | $ 906,898 | $ 1,844,764 |
Equity securities | 41,716 | 36,473 |
Total held to maturity debt securities | 3,393,715 | 2,660,605 |
Accrued interest receivable | 134,682 | 96,882 |
Deposits with stated maturities | 4,193,541 | 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 | 67,782 | 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 | 243,354 | 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 | 486,334 | 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 | 2,492,737 | 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 | 31,453 | 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 | 72,055 | 54,185 |
Carrying Amount | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total held to maturity debt securities | 3,719,977 | 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 | 481,414 | 205,156 |
Interest bearing deposits with banks | 906,898 | 1,844,764 |
Accrued interest receivable | 134,682 | 96,882 |
Deposits without stated maturities | 39,687,510 | 31,945,368 |
Short-term borrowings | 1,522,804 | 655,726 |
Accrued interest payable | 6,137 | 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 | 67,238 | 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 | 268,133 | 206,450 |
Deposits with stated maturities | 4,193,541 | 3,687,044 |
Long-term borrowings | 1,403,805 | 1,423,676 |
Junior subordinated debentures issued to capital trusts | 56,587 | 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 | 259,711 | 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 | 504,767 | 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 | 2,775,928 | 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 | 37,033 | 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 | 75,300 | 53,750 |
Carrying Amount | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 5,785 | 3,629 |
Net loans | 43,091,958 | 33,794,455 |
Fair Value | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Total held to maturity debt securities | 3,393,715 | 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 | 481,414 | 205,156 |
Interest bearing deposits with banks | 906,898 | 1,844,764 |
Accrued interest receivable | 134,682 | 96,882 |
Deposits without stated maturities | 39,687,510 | 31,945,368 |
Short-term borrowings | 1,488,738 | 637,490 |
Accrued interest payable | 6,137 | 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 | 67,782 | 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 | 268,133 | 206,450 |
Deposits with stated maturities | 4,181,719 | 3,670,113 |
Long-term borrowings | 1,329,047 | 1,404,184 |
Junior subordinated debentures issued to capital trusts | 43,695 | 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 | 243,354 | 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 | 486,334 | 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 | 2,492,737 | 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 | 31,453 | 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 | 72,055 | 54,185 |
Fair Value | Level 3 | ||
Fair Value, Assets and Liabilities Measured on Recurring and Nonrecurring Basis [Line Items] | ||
Equity securities | 5,785 | 3,629 |
Net loans | $ 42,056,562 | $ 33,283,251 |
Investment Securities - Additio
Investment Securities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) position | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) position | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) position | |
Investments, Debt and Equity Securities [Abstract] | |||||
Equity securities | $ 41,716,000 | $ 41,716,000 | $ 36,473,000 | ||
Trading debt securities | 0 | 0 | $ 38,130,000 | ||
Debt securities, trading, realized gain | $ 387,000 | $ 1,400,000 | |||
Debt securities, trading, realized loss | $ 489,000 | $ 707,000 | |||
Number of security positions in the debt securities available for sale portfolio in an unrealized loss position | position | 655 | 655 | 139 | ||
Fair value of debt securities available for sale pledged as collateral | $ 446,400,000 | $ 446,400,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities available for sale, years | 5 years 3 months 18 days | ||||
Impairment loss | 0 | 0 | |||
Available for sale debt securities, allowance for credit losses | $ 0 | $ 0 | $ 0 | ||
Number of security positions in the securities held to maturity portfolio in an unrealized loss position | position | 717 | 717 | 108 | ||
Fair value of investments held to maturity pledged as collateral | $ 892,600,000 | $ 892,600,000 | |||
Weighted-average remaining expected life of residential mortgage-backed securities held to maturity, years | 7 years 8 months 12 days | ||||
Allowance for credit losses, excluding accrued interest | 1,508,000 | $ 1,508,000 | $ 1,165,000 | ||
Provision (credit) for credit losses for held to maturity securities | $ 286,000 | $ (30,000) | $ 343,000 | $ (388,000) |
Investment Securities - Amortiz
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | $ 1,494,935 | $ 1,116,091 |
Gross Unrealized Gains | 569 | 19,252 |
Gross Unrealized Losses | (112,953) | (6,534) |
Fair Value | 1,382,551 | 1,128,809 |
U.S. Treasury securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 305,371 | |
Gross Unrealized Gains | 0 | |
Gross Unrealized Losses | (12,973) | |
Fair Value | 292,398 | |
U.S. government agency securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 31,083 | 20,323 |
Gross Unrealized Gains | 42 | 608 |
Gross Unrealized Losses | (592) | (6) |
Fair Value | 30,533 | 20,925 |
Obligations of states and state agencies | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 13,252 | 26,088 |
Gross Unrealized Gains | 10 | 132 |
Gross Unrealized Losses | (331) | (93) |
Fair Value | 12,931 | 26,127 |
Municipal bonds | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 173,450 | 53,530 |
Gross Unrealized Gains | 13 | 349 |
Gross Unrealized Losses | (28,916) | (116) |
Fair Value | 144,547 | 53,763 |
Obligations of states and political subdivisions | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 186,702 | 79,618 |
Gross Unrealized Gains | 23 | 481 |
Gross Unrealized Losses | (29,247) | (209) |
Fair Value | 157,478 | 79,890 |
Residential mortgage-backed securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 780,624 | 895,279 |
Gross Unrealized Gains | 216 | 14,986 |
Gross Unrealized Losses | (59,804) | (5,763) |
Fair Value | 721,036 | 904,502 |
Corporate and other debt securities | ||
Debt Securities, Available-for-sale [Line Items] | ||
Amortized Cost | 191,155 | 120,871 |
Gross Unrealized Gains | 288 | 3,177 |
Gross Unrealized Losses | (10,337) | (556) |
Fair Value | $ 181,106 | $ 123,492 |
Investment Securities - Age of
Investment Securities - Age of Unrealized Losses and Fair Value of Related Available for Sale Debt Securities (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than Twelve Months | $ 1,278,765 | $ 459,944 |
More than Twelve Months | 52,832 | 27,286 |
Total | 1,331,597 | 487,230 |
Unrealized Losses | ||
Less than Twelve Months | (105,914) | (5,535) |
More than Twelve Months | (7,039) | (999) |
Total | (112,953) | (6,534) |
U.S. Treasury securities | ||
Fair Value | ||
Less than Twelve Months | 292,397 | |
More than Twelve Months | 0 | |
Total | 292,397 | |
Unrealized Losses | ||
Less than Twelve Months | (12,973) | |
More than Twelve Months | 0 | |
Total | (12,973) | |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 26,224 | 0 |
More than Twelve Months | 1,202 | 1,326 |
Total | 27,426 | 1,326 |
Unrealized Losses | ||
Less than Twelve Months | (575) | 0 |
More than Twelve Months | (17) | (6) |
Total | (592) | (6) |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 9,315 | 10,549 |
More than Twelve Months | 0 | 0 |
Total | 9,315 | 10,549 |
Unrealized Losses | ||
Less than Twelve Months | (331) | (93) |
More than Twelve Months | 0 | 0 |
Total | (331) | (93) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 141,951 | 19,100 |
More than Twelve Months | 0 | 0 |
Total | 141,951 | 19,100 |
Unrealized Losses | ||
Less than Twelve Months | (28,916) | (116) |
More than Twelve Months | 0 | 0 |
Total | (28,916) | (116) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 151,266 | 29,649 |
More than Twelve Months | 0 | 0 |
Total | 151,266 | 29,649 |
Unrealized Losses | ||
Less than Twelve Months | (29,247) | (209) |
More than Twelve Months | 0 | 0 |
Total | (29,247) | (209) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 660,060 | 371,256 |
More than Twelve Months | 51,630 | 25,960 |
Total | 711,690 | 397,216 |
Unrealized Losses | ||
Less than Twelve Months | (52,782) | (4,770) |
More than Twelve Months | (7,022) | (993) |
Total | (59,804) | (5,763) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 148,818 | 59,039 |
More than Twelve Months | 0 | 0 |
Total | 148,818 | 59,039 |
Unrealized Losses | ||
Less than Twelve Months | (10,337) | (556) |
More than Twelve Months | 0 | 0 |
Total | $ (10,337) | $ (556) |
Investment Securities - Contrac
Investment Securities - Contractual Maturities of Debt Securities Available for Sale (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year | $ 13,002 | |
Due after one year through five years | 179,567 | |
Due after five years through ten years | 249,507 | |
Due after ten years | 272,235 | |
Residential mortgage-backed securities | 780,624 | |
Amortized Cost | 1,494,935 | $ 1,116,091 |
Fair Value | ||
Due in one year | 12,941 | |
Due after one year through five years | 176,480 | |
Due after five years through ten years | 237,046 | |
Due after ten years | 235,048 | |
Residential mortgage-backed securities | 721,036 | |
Total | $ 1,382,551 | $ 1,128,809 |
Investment Securities - Amort_2
Investment Securities - Amortized Cost, Gross Unrealized Gains and Losses and Fair Value of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | $ 3,719,977 | $ 2,668,697 |
Gross Unrealized Gains | 2,301 | 25,980 |
Gross Unrealized Losses | (328,563) | (34,072) |
Fair Value | 3,393,715 | 2,660,605 |
U.S. Treasury securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 67,238 | 67,558 |
Gross Unrealized Gains | 573 | 4,103 |
Gross Unrealized Losses | (29) | 0 |
Fair Value | 67,782 | 71,661 |
U.S. government agency securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 259,711 | 6,265 |
Gross Unrealized Gains | 138 | 113 |
Gross Unrealized Losses | (16,495) | 0 |
Fair Value | 243,354 | 6,378 |
Obligations of states and state agencies | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 102,677 | 141,015 |
Gross Unrealized Gains | 222 | 3,065 |
Gross Unrealized Losses | (2,468) | (312) |
Fair Value | 100,431 | 143,768 |
Municipal bonds | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 402,090 | 196,947 |
Gross Unrealized Gains | 520 | 3,536 |
Gross Unrealized Losses | (16,707) | (87) |
Fair Value | 385,903 | 200,396 |
Obligations of states and political subdivisions | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 504,767 | 337,962 |
Gross Unrealized Gains | 742 | 6,601 |
Gross Unrealized Losses | (19,175) | (399) |
Fair Value | 486,334 | 344,164 |
Residential mortgage-backed securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 2,775,928 | 2,166,142 |
Gross Unrealized Gains | 814 | 14,599 |
Gross Unrealized Losses | (284,005) | (28,440) |
Fair Value | 2,492,737 | 2,152,301 |
Trust preferred securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 37,033 | 37,020 |
Gross Unrealized Gains | 3 | 5 |
Gross Unrealized Losses | (5,583) | (5,109) |
Fair Value | 31,453 | 31,916 |
Corporate and other debt securities | ||
Schedule of Held-to-maturity Securities [Line Items] | ||
Amortized Cost | 75,300 | 53,750 |
Gross Unrealized Gains | 31 | 559 |
Gross Unrealized Losses | (3,276) | (124) |
Fair Value | $ 72,055 | $ 54,185 |
Investment Securities - Age o_2
Investment Securities - Age of Unrealized Losses and Fair Value of Related Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Fair Value | ||
Less than Twelve Months | $ 2,567,577 | $ 1,440,435 |
More than Twelve Months | 565,562 | 242,949 |
Total | 3,133,139 | 1,683,384 |
Unrealized Losses | ||
Less than Twelve Months | (235,020) | (22,830) |
More than Twelve Months | (93,543) | (11,242) |
Total | (328,563) | (34,072) |
U.S. Treasury securities | ||
Fair Value | ||
Less than Twelve Months | 34,914 | |
More than Twelve Months | 0 | |
Total | 34,914 | |
Unrealized Losses | ||
Less than Twelve Months | (29) | |
More than Twelve Months | 0 | |
Total | (29) | 0 |
U.S. government agency securities | ||
Fair Value | ||
Less than Twelve Months | 220,737 | |
More than Twelve Months | 0 | |
Total | 220,737 | |
Unrealized Losses | ||
Less than Twelve Months | (16,495) | |
More than Twelve Months | 0 | |
Total | (16,495) | 0 |
Obligations of states and state agencies | ||
Fair Value | ||
Less than Twelve Months | 61,460 | 17,000 |
More than Twelve Months | 9,610 | 5,517 |
Total | 71,070 | 22,517 |
Unrealized Losses | ||
Less than Twelve Months | (1,466) | (254) |
More than Twelve Months | (1,002) | (58) |
Total | (2,468) | (312) |
Municipal bonds | ||
Fair Value | ||
Less than Twelve Months | 251,294 | 9,403 |
More than Twelve Months | 1,311 | 0 |
Total | 252,605 | 9,403 |
Unrealized Losses | ||
Less than Twelve Months | (16,606) | (87) |
More than Twelve Months | (101) | 0 |
Total | (16,707) | (87) |
Obligations of states and political subdivisions | ||
Fair Value | ||
Less than Twelve Months | 312,754 | 26,403 |
More than Twelve Months | 10,921 | 5,517 |
Total | 323,675 | 31,920 |
Unrealized Losses | ||
Less than Twelve Months | (18,072) | (341) |
More than Twelve Months | (1,103) | (58) |
Total | (19,175) | (399) |
Residential mortgage-backed securities | ||
Fair Value | ||
Less than Twelve Months | 1,931,648 | 1,381,405 |
More than Twelve Months | 524,191 | 206,520 |
Total | 2,455,839 | 1,587,925 |
Unrealized Losses | ||
Less than Twelve Months | (197,148) | (22,365) |
More than Twelve Months | (86,857) | (6,075) |
Total | (284,005) | (28,440) |
Trust preferred securities | ||
Fair Value | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | 30,450 | 30,912 |
Total | 30,450 | 30,912 |
Unrealized Losses | ||
Less than Twelve Months | 0 | 0 |
More than Twelve Months | (5,583) | (5,109) |
Total | (5,583) | (5,109) |
Corporate and other debt securities | ||
Fair Value | ||
Less than Twelve Months | 67,524 | 32,627 |
More than Twelve Months | 0 | 0 |
Total | 67,524 | 32,627 |
Unrealized Losses | ||
Less than Twelve Months | (3,276) | (124) |
More than Twelve Months | 0 | 0 |
Total | $ (3,276) | $ (124) |
Investment Securities - Contr_2
Investment Securities - Contractual Maturities of Debt Securities Held to Maturity (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Amortized Cost | ||
Due in one year | $ 33,206 | |
Due after one year through five years | 220,521 | |
Due after five years through ten years | 73,729 | |
Due after ten years | 616,593 | |
Residential mortgage-backed securities | 2,775,928 | |
Amortized Cost | 3,719,977 | $ 2,668,697 |
Fair Value | ||
Due in one year | 33,186 | |
Due after one year through five years | 219,462 | |
Due after five years through ten years | 72,398 | |
Due after ten years | 575,932 | |
Residential mortgage-backed securities | 2,492,737 | |
Total | $ 3,393,715 | $ 2,660,605 |
Investment Securities - Amort_3
Investment Securities - Amortized Cost of Debt Securities Held to Maturity by External Credit Rating (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost of held to maturity debt securities | $ 3,719,977 | $ 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 | 67,238 | 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 | 259,711 | 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 | 102,677 | 141,015 |
Municipal bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost of held to maturity debt securities | 402,090 | 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 | 504,767 | 337,962 |
Residential mortgage-backed securities | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost of held to maturity debt securities | 2,775,928 | 2,166,142 |
Trust preferred securities | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost of held to maturity debt securities | 37,033 | 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 | 75,300 | 53,750 |
AAA/AA/A Rated | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost of held to maturity debt securities | 3,527,460 | 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 | 67,238 | 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 | 259,711 | 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 | 76,322 | 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 | 346,261 | 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 | 422,583 | 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 | 2,775,928 | 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 | 5,537 | 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 | 5,537 | 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 | 5,537 | 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 | 180,980 | 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 | 20,818 | 17,071 |
Non-rated | Municipal bonds | ||
Debt Securities, Held-to-maturity, Credit Quality Indicator [Line Items] | ||
Amortized cost of held to maturity debt securities | 55,829 | 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 | 76,647 | 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 | 37,033 | 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 | $ 67,300 | $ 45,750 |
Loans and Allowance for Credi_3
Loans and Allowance for Credit Losses for Loans - Loan Portfolio (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 43,560,777 | $ 34,153,657 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,514,458 | 5,847,551 |
Loans, deferred income, PPP | 2,500 | 12,100 |
Commercial and industrial | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,378,454 | 5,411,601 |
Commercial and industrial | Commercial and industrial PPP loans | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 136,004 | 435,950 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 26,909,459 | 20,790,066 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23,535,086 | 18,935,486 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,374,373 | 1,854,580 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,005,069 | 4,545,064 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,131,791 | 2,970,976 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 431,455 | 400,779 |
Consumer | Automobile | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 1,673,482 | 1,570,036 |
Consumer | Other consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 1,026,854 | $ 1,000,161 |
Loans and Allowance for Credi_4
Loans and Allowance for Credit Losses for Loans - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | 12 Months Ended | |||
Apr. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Dec. 31, 2021 | |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Non covered loans net of unearned discount and deferred loan fees | $ 141,200,000 | $ 141,200,000 | $ 78,500,000 | |||
Non covered loans net of earned discount and deferred loan fees | 98,600,000 | 98,600,000 | ||||
Payments to Acquire Loans Held-for-investment | 5,900,000,000 | |||||
Accrued interest | 115,700,000 | 115,700,000 | 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 | 67,300,000 | $ 67,300,000 | 71,300,000 | |||
Non-performing TDRs | 154,400,000 | 154,400,000 | 117,200,000 | |||
Specific reserves for loan losses | 56,000,000 | $ 4,500,000 | 56,000,000 | 4,500,000 | ||
Loan charge-offs related to loans modified as TDRs | 1,500,000 | $ 697,000 | 1,500,000 | $ 5,800,000 | ||
Other real estate owned | 422,000 | 422,000 | 2,300,000 | |||
Allowance for purchase credit deteriorated (PCD) loans | 115,300,000 | |||||
Allowance for purchase credit deteriorated (PCD) loans | $ 70,319,000 | 70,319,000 | 70,319,000 | |||
Financing receivable, excluding accrued interest, not purchased with credit deterioration, credit loss, expense (reversal) | 41,000,000 | |||||
Residential real estate properties | ||||||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||||||
Other real estate owned | 0 | 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 | $ 2,000,000 | $ 2,000,000 | $ 2,500,000 |
Loans and Allowance for Credi_5
Loans and Allowance for Credit Losses for Loans - Past Due, Non-Accrual and Current Loans by Loan Portfolio Class (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 43,560,777 | $ 34,153,657 |
Non-Accrual Loans | 313,117 | 240,216 |
Non-Accrual Loans Without Allowance for Loan Losses | 99,285 | 100,190 |
Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 386,618 | 296,080 |
30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 45,102 | 40,889 |
60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 11,474 | 12,204 |
90 Days or More Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 16,925 | 2,771 |
Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 43,174,159 | 33,857,577 |
Commercial and industrial | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 8,514,458 | 5,847,551 |
Non-Accrual Loans | 148,404 | 99,918 |
Non-Accrual Loans Without Allowance for Loan Losses | 6,648 | 9,066 |
Commercial and industrial | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 174,887 | 115,778 |
Commercial and industrial | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 7,143 | 6,717 |
Commercial and industrial | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,870 | 7,870 |
Commercial and industrial | 90 Days or More Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 15,470 | 1,273 |
Commercial and industrial | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 8,339,571 | 5,731,773 |
Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 26,909,459 | 20,790,066 |
Non-Accrual Loans | 135,587 | 101,233 |
Non-Accrual Loans Without Allowance for Loan Losses | 77,622 | 70,719 |
Commercial real estate | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 159,703 | 117,627 |
Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 19,624 | 16,362 |
Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,492 | 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 | 26,749,756 | 20,672,439 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 23,535,086 | 18,935,486 |
Non-Accrual Loans | 85,807 | 83,592 |
Non-Accrual Loans Without Allowance for Loan Losses | 68,128 | 70,719 |
Commercial real estate | Commercial real estate | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 96,953 | 98,045 |
Commercial real estate | Commercial real estate | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 10,516 | 14,421 |
Commercial real estate | Commercial real estate | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 630 | 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 | 23,438,133 | 18,837,441 |
Commercial real estate | Construction | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,374,373 | 1,854,580 |
Non-Accrual Loans | 49,780 | 17,641 |
Non-Accrual Loans Without Allowance for Loan Losses | 9,494 | 0 |
Commercial real estate | Construction | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 62,750 | 19,582 |
Commercial real estate | Construction | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 9,108 | 1,941 |
Commercial real estate | Construction | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,862 | 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 | 3,311,623 | 1,834,998 |
Residential mortgage | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,005,069 | 4,545,064 |
Non-Accrual Loans | 25,847 | 35,207 |
Non-Accrual Loans Without Allowance for Loan Losses | 14,889 | 20,401 |
Residential mortgage | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 41,771 | 50,197 |
Residential mortgage | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 12,326 | 10,999 |
Residential mortgage | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2,410 | 3,314 |
Residential mortgage | 90 Days or More Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,188 | 677 |
Residential mortgage | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,963,298 | 4,494,867 |
Consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,131,791 | 2,970,976 |
Non-Accrual Loans | 3,279 | 3,858 |
Non-Accrual Loans Without Allowance for Loan Losses | 126 | 4 |
Consumer | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 10,257 | 12,478 |
Consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 6,009 | 6,811 |
Consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 702 | 1,020 |
Consumer | 90 Days or More Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 267 | 789 |
Consumer | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,121,534 | 2,958,498 |
Consumer | Home equity | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 431,455 | 400,779 |
Non-Accrual Loans | 2,920 | 3,517 |
Non-Accrual Loans Without Allowance for Loan Losses | 126 | 4 |
Consumer | Home equity | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 3,299 | 3,857 |
Consumer | Home equity | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 377 | 242 |
Consumer | Home equity | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 2 | 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 | 428,156 | 396,922 |
Consumer | Automobile | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,673,482 | 1,570,036 |
Non-Accrual Loans | 262 | 240 |
Non-Accrual Loans Without Allowance for Loan Losses | 0 | 0 |
Consumer | Automobile | Financial Asset, Past Due | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 5,813 | 7,558 |
Consumer | Automobile | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 4,696 | 6,391 |
Consumer | Automobile | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 588 | 656 |
Consumer | Automobile | 90 Days or More Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 267 | 271 |
Consumer | Automobile | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,667,669 | 1,562,478 |
Consumer | Other consumer | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 1,026,854 | 1,000,161 |
Non-Accrual Loans | 97 | 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 | 1,145 | 1,063 |
Consumer | Other consumer | 30-59 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 936 | 178 |
Consumer | Other consumer | 60-89 Days Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 112 | 266 |
Consumer | Other consumer | 90 Days or More Past Due Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | 0 | 518 |
Consumer | Other consumer | Current Loans | ||
Financing Receivable, Past Due [Line Items] | ||
Loans | $ 1,025,709 | $ 999,098 |
Loans and Allowance for Credi_6
Loans and Allowance for Credit Losses for Loans - Internal Loan Classification Risk by Loan Portfolio Class by Origination Year (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 43,560,777 | $ 34,153,657 |
Commercial and industrial | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 1,091,328 | 1,575,480 |
Year two, fiscal year before current fiscal year | 1,332,657 | 749,183 |
Year three, two years before current fiscal year | 746,587 | 470,111 |
Year four, three years before current fiscal year | 417,251 | 383,968 |
Year five, four years before current fiscal year | 316,102 | 162,744 |
More than five years before current fiscal year | 511,623 | 415,369 |
Revolving Loans Amortized Cost Basis | 4,098,650 | 2,090,300 |
Revolving Loans Converted to Term Loans | 260 | 396 |
Total | 8,514,458 | 5,847,551 |
Commercial and industrial | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 1,087,572 | 1,563,050 |
Year two, fiscal year before current fiscal year | 1,322,828 | 743,165 |
Year three, two years before current fiscal year | 740,213 | 461,022 |
Year four, three years before current fiscal year | 407,985 | 362,748 |
Year five, four years before current fiscal year | 306,393 | 143,753 |
More than five years before current fiscal year | 423,058 | 337,713 |
Revolving Loans Amortized Cost Basis | 3,964,927 | 1,968,513 |
Revolving Loans Converted to Term Loans | 184 | 247 |
Total | 8,253,160 | 5,580,211 |
Commercial and industrial | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 2,654 | 4,182 |
Year two, fiscal year before current fiscal year | 7,639 | 1,195 |
Year three, two years before current fiscal year | 670 | 3,217 |
Year four, three years before current fiscal year | 2,827 | 14,143 |
Year five, four years before current fiscal year | 4,987 | 1,726 |
More than five years before current fiscal year | 5,708 | 9,869 |
Revolving Loans Amortized Cost Basis | 57,210 | 102,145 |
Revolving Loans Converted to Term Loans | 10 | 40 |
Total | 81,705 | 136,517 |
Commercial and industrial | Substandard | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 0 | 8,248 |
Year two, fiscal year before current fiscal year | 2,049 | 4,823 |
Year three, two years before current fiscal year | 5,704 | 3,139 |
Year four, three years before current fiscal year | 3,727 | 7,077 |
Year five, four years before current fiscal year | 4,722 | 910 |
More than five years before current fiscal year | 4,790 | 408 |
Revolving Loans Amortized Cost Basis | 70,131 | 19,642 |
Revolving Loans Converted to Term Loans | 66 | 109 |
Total | 91,189 | 44,356 |
Commercial and industrial | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 1,102 | 0 |
Year two, fiscal year before current fiscal year | 141 | 0 |
Year three, two years before current fiscal year | 0 | 2,733 |
Year four, three years before current fiscal year | 2,712 | 0 |
Year five, four years before current fiscal year | 0 | 16,355 |
More than five years before current fiscal year | 78,067 | 67,379 |
Revolving Loans Amortized Cost Basis | 6,382 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 88,404 | 86,467 |
Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 26,909,459 | 20,790,066 |
Commercial real estate | Commercial real estate | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 3,777,444 | 4,526,352 |
Year two, fiscal year before current fiscal year | 5,464,142 | 3,067,814 |
Year three, two years before current fiscal year | 3,493,845 | 2,778,520 |
Year four, three years before current fiscal year | 2,827,365 | 1,820,340 |
Year five, four years before current fiscal year | 1,783,066 | 1,611,334 |
More than five years before current fiscal year | 5,864,022 | 4,869,778 |
Revolving Loans Amortized Cost Basis | 312,009 | 247,968 |
Revolving Loans Converted to Term Loans | 13,193 | 13,380 |
Total | 23,535,086 | 18,935,486 |
Commercial real estate | Commercial real estate | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 3,704,273 | 4,517,917 |
Year two, fiscal year before current fiscal year | 5,379,241 | 2,983,140 |
Year three, two years before current fiscal year | 3,371,598 | 2,702,580 |
Year four, three years before current fiscal year | 2,752,901 | 1,734,922 |
Year five, four years before current fiscal year | 1,659,319 | 1,474,770 |
More than five years before current fiscal year | 5,504,795 | 4,557,011 |
Revolving Loans Amortized Cost Basis | 288,599 | 195,851 |
Revolving Loans Converted to Term Loans | 13,193 | 13,380 |
Total | 22,673,919 | 18,179,571 |
Commercial real estate | Commercial real estate | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 73,171 | 7,700 |
Year two, fiscal year before current fiscal year | 40,956 | 50,019 |
Year three, two years before current fiscal year | 82,875 | 46,911 |
Year four, three years before current fiscal year | 34,661 | 44,187 |
Year five, four years before current fiscal year | 64,861 | 65,623 |
More than five years before current fiscal year | 129,785 | 143,540 |
Revolving Loans Amortized Cost Basis | 15,052 | 50,168 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 441,361 | 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 | 43,945 | 34,655 |
Year three, two years before current fiscal year | 39,372 | 29,029 |
Year four, three years before current fiscal year | 39,803 | 41,231 |
Year five, four years before current fiscal year | 58,886 | 70,941 |
More than five years before current fiscal year | 229,266 | 169,041 |
Revolving Loans Amortized Cost Basis | 8,358 | 1,949 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 419,630 | 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 | 176 | 186 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 176 | 186 |
Commercial real estate | Construction | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 501,643 | 278,427 |
Year two, fiscal year before current fiscal year | 645,101 | 98,628 |
Year three, two years before current fiscal year | 169,060 | 49,570 |
Year four, three years before current fiscal year | 59,657 | 33,027 |
Year five, four years before current fiscal year | 10,664 | 6,061 |
More than five years before current fiscal year | 42,705 | 46,261 |
Revolving Loans Amortized Cost Basis | 1,945,543 | 1,342,606 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 3,374,373 | 1,854,580 |
Commercial real estate | Construction | Pass | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 472,849 | 274,097 |
Year two, fiscal year before current fiscal year | 631,399 | 98,609 |
Year three, two years before current fiscal year | 157,587 | 48,555 |
Year four, three years before current fiscal year | 59,657 | 32,781 |
Year five, four years before current fiscal year | 10,664 | 6,061 |
More than five years before current fiscal year | 25,089 | 28,419 |
Revolving Loans Amortized Cost Basis | 1,900,402 | 1,313,555 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 3,257,647 | 1,802,077 |
Commercial real estate | Construction | Special Mention | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 28,296 | 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 | 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 | 25,610 | 18,449 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 53,906 | 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 | 13,059 | 19 |
Year three, two years before current fiscal year | 0 | 6 |
Year four, three years before current fiscal year | 0 | 246 |
Year five, four years before current fiscal year | 0 | 0 |
More than five years before current fiscal year | 17,616 | 17,842 |
Revolving Loans Amortized Cost Basis | 19,531 | 10,602 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 50,206 | $ 28,914 |
Commercial real estate | Construction | Doubtful | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 498 | |
Year two, fiscal year before current fiscal year | 643 | |
Year three, two years before current fiscal year | 11,473 | |
Year four, three years before current fiscal year | 0 | |
Year five, four years before current fiscal year | 0 | |
More than five years before current fiscal year | 0 | |
Revolving Loans Amortized Cost Basis | 0 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | $ 12,614 |
Loans and Allowance for Credi_7
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 | Jun. 30, 2022 | Dec. 31, 2021 |
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | $ 43,560,777 | $ 34,153,657 |
90 Days or More Past Due Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 16,925 | 2,771 |
Residential mortgage | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 768,137 | 1,448,602 |
Year two, fiscal year before current fiscal year | 1,518,240 | 635,888 |
Year three, two years before current fiscal year | 594,641 | 575,538 |
Year four, three years before current fiscal year | 517,072 | 427,208 |
Year five, four years before current fiscal year | 365,855 | 370,958 |
More than five years before current fiscal year | 1,165,615 | 1,016,528 |
Revolving Loans Amortized Cost Basis | 75,509 | 70,342 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 5,005,069 | 4,545,064 |
Residential mortgage | 90 Days or More Past Due Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 1,188 | 677 |
Residential mortgage | Performing | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 768,137 | 1,448,602 |
Year two, fiscal year before current fiscal year | 1,518,240 | 635,531 |
Year three, two years before current fiscal year | 593,271 | 572,911 |
Year four, three years before current fiscal year | 515,561 | 425,152 |
Year five, four years before current fiscal year | 363,811 | 368,164 |
More than five years before current fiscal year | 1,162,383 | 1,014,190 |
Revolving Loans Amortized Cost Basis | 75,509 | 70,342 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 4,996,912 | 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 | 1,370 | 2,627 |
Year four, three years before current fiscal year | 1,511 | 2,056 |
Year five, four years before current fiscal year | 2,044 | 2,794 |
More than five years before current fiscal year | 3,232 | 2,338 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 8,157 | 10,172 |
Consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 444,551 | 752,371 |
Year two, fiscal year before current fiscal year | 637,527 | 322,296 |
Year three, two years before current fiscal year | 264,469 | 292,368 |
Year four, three years before current fiscal year | 229,386 | 172,014 |
Year five, four years before current fiscal year | 127,416 | 79,202 |
More than five years before current fiscal year | 80,768 | 43,367 |
Revolving Loans Amortized Cost Basis | 1,307,384 | 1,265,942 |
Revolving Loans Converted to Term Loans | 40,290 | 43,416 |
Total | 3,131,791 | 2,970,976 |
Consumer | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 21,198 | 13,847 |
Year two, fiscal year before current fiscal year | 13,068 | 5,723 |
Year three, two years before current fiscal year | 4,946 | 6,994 |
Year four, three years before current fiscal year | 5,645 | 7,384 |
Year five, four years before current fiscal year | 6,212 | 5,359 |
More than five years before current fiscal year | 15,065 | 13,632 |
Revolving Loans Amortized Cost Basis | 325,031 | 304,424 |
Revolving Loans Converted to Term Loans | 40,290 | 43,416 |
Total | 431,455 | 400,779 |
Consumer | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 408,872 | 735,575 |
Year two, fiscal year before current fiscal year | 621,365 | 309,856 |
Year three, two years before current fiscal year | 252,184 | 278,906 |
Year four, three years before current fiscal year | 216,131 | 157,613 |
Year five, four years before current fiscal year | 114,048 | 72,834 |
More than five years before current fiscal year | 60,882 | 15,252 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 1,673,482 | 1,570,036 |
Consumer | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 14,481 | 2,949 |
Year two, fiscal year before current fiscal year | 3,094 | 6,717 |
Year three, two years before current fiscal year | 7,339 | 6,468 |
Year four, three years before current fiscal year | 7,610 | 7,017 |
Year five, four years before current fiscal year | 7,156 | 1,009 |
More than five years before current fiscal year | 4,821 | 14,483 |
Revolving Loans Amortized Cost Basis | 982,353 | 961,518 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 1,026,854 | 1,000,161 |
Consumer | 90 Days or More Past Due Loans | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 267 | 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 | 267 | 271 |
Consumer | 90 Days or More Past Due Loans | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Total | 0 | 518 |
Consumer | Performing | Home equity | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 21,198 | 13,847 |
Year two, fiscal year before current fiscal year | 13,068 | 5,723 |
Year three, two years before current fiscal year | 4,946 | 6,994 |
Year four, three years before current fiscal year | 5,645 | 7,384 |
Year five, four years before current fiscal year | 6,212 | 5,359 |
More than five years before current fiscal year | 15,064 | 13,597 |
Revolving Loans Amortized Cost Basis | 324,606 | 303,888 |
Revolving Loans Converted to Term Loans | 39,702 | 42,822 |
Total | 430,441 | 399,614 |
Consumer | Performing | Automobile | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 408,872 | 735,446 |
Year two, fiscal year before current fiscal year | 621,275 | 309,856 |
Year three, two years before current fiscal year | 252,127 | 278,828 |
Year four, three years before current fiscal year | 215,999 | 157,450 |
Year five, four years before current fiscal year | 113,834 | 72,753 |
More than five years before current fiscal year | 60,789 | 15,171 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 1,672,896 | 1,569,504 |
Consumer | Performing | Other consumer | ||
Financing Receivable, Credit Quality Indicator [Line Items] | ||
Year one, current fiscal year | 14,481 | 2,949 |
Year two, fiscal year before current fiscal year | 3,094 | 6,717 |
Year three, two years before current fiscal year | 7,339 | 6,468 |
Year four, three years before current fiscal year | 7,610 | 7,017 |
Year five, four years before current fiscal year | 7,156 | 1,009 |
More than five years before current fiscal year | 4,821 | 14,483 |
Revolving Loans Amortized Cost Basis | 982,353 | 961,027 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | 1,026,854 | 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 | 1 | 35 |
Revolving Loans Amortized Cost Basis | 425 | 536 |
Revolving Loans Converted to Term Loans | 588 | 594 |
Total | 1,014 | 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 | 90 | 0 |
Year three, two years before current fiscal year | 57 | 78 |
Year four, three years before current fiscal year | 132 | 163 |
Year five, four years before current fiscal year | 214 | 81 |
More than five years before current fiscal year | 93 | 81 |
Revolving Loans Amortized Cost Basis | 0 | 0 |
Revolving Loans Converted to Term Loans | 0 | 0 |
Total | $ 586 | 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 | |
Year two, fiscal year before current fiscal year | 0 | |
Year three, two years before current fiscal year | 0 | |
Year four, three years before current fiscal year | 0 | |
Year five, four years before current fiscal year | 0 | |
More than five years before current fiscal year | 0 | |
Revolving Loans Amortized Cost Basis | 491 | |
Revolving Loans Converted to Term Loans | 0 | |
Total | $ 491 |
Loans and Allowance for Credi_8
Loans and Allowance for Credit Losses for Loans - Pre-Modification and Post-Modification (Details) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 USD ($) contract | Jun. 30, 2021 USD ($) contract | Jun. 30, 2022 USD ($) contract | Jun. 30, 2021 USD ($) contract | |
Troubled Debt Restructurings | ||||
Number of contracts, troubled debt restructurings (in contract) | contract | 58 | 17 | 72 | 28 |
Pre-Modification Outstanding Recorded Investment | $ 96,026 | $ 21,918 | $ 111,091 | $ 35,879 |
Post-Modification Outstanding Recorded Investment | $ 91,879 | $ 21,831 | $ 106,882 | $ 34,623 |
Days past due to place on non-accrual status | 90 days | 90 days | ||
Number of Contracts | contract | 2 | 1 | 2 | 17 |
Recorded Investment | $ 17,599 | $ 445 | $ 17,599 | $ 13,076 |
Commercial and industrial | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled debt restructurings (in contract) | contract | 49 | 9 | 60 | 13 |
Pre-Modification Outstanding Recorded Investment | $ 82,120 | $ 8,592 | $ 91,804 | $ 20,855 |
Post-Modification Outstanding Recorded Investment | $ 78,051 | $ 8,529 | $ 87,685 | $ 19,648 |
Number of Contracts | contract | 0 | 15 | ||
Recorded Investment | $ 0 | $ 12,384 | ||
Commercial Real Estate | Commercial real estate | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled debt restructurings (in contract) | contract | 1 | 6 | 3 | 6 |
Pre-Modification Outstanding Recorded Investment | $ 8,811 | $ 12,237 | $ 14,072 | $ 12,237 |
Post-Modification Outstanding Recorded Investment | $ 8,735 | $ 12,223 | $ 13,986 | $ 12,223 |
Commercial Real Estate | Construction | ||||
Troubled Debt Restructurings | ||||
Number of Contracts | contract | 2 | 0 | 2 | 0 |
Recorded Investment | $ 17,599 | $ 0 | $ 17,599 | $ 0 |
Residential mortgage | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled debt restructurings (in contract) | contract | 7 | 2 | 8 | 8 |
Pre-Modification Outstanding Recorded Investment | $ 4,970 | $ 1,089 | $ 5,090 | $ 2,618 |
Post-Modification Outstanding Recorded Investment | $ 4,969 | $ 1,079 | $ 5,087 | $ 2,586 |
Number of Contracts | contract | 0 | 1 | 0 | 2 |
Recorded Investment | $ 0 | $ 445 | $ 0 | $ 692 |
Consumer | ||||
Troubled Debt Restructurings | ||||
Number of contracts, troubled debt restructurings (in contract) | contract | 1 | 0 | 1 | 1 |
Pre-Modification Outstanding Recorded Investment | $ 125 | $ 0 | $ 125 | $ 169 |
Post-Modification Outstanding Recorded Investment | $ 124 | $ 0 | $ 124 | $ 166 |
Loans and Allowance for Credi_9
Loans and Allowance for Credit Losses for Loans - Summary of Collateral Dependent Loans (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 43,560,777 | $ 34,153,657 |
Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 8,514,458 | 5,847,551 |
Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 26,909,459 | 20,790,066 |
Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 23,535,086 | 18,935,486 |
Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,374,373 | 1,854,580 |
Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 5,005,069 | 4,545,064 |
Consumer | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 3,131,791 | 2,970,976 |
Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 431,455 | 400,779 |
Collateral Pledged | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 266,904 | 241,258 |
Collateral Pledged | Commercial and industrial | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 100,783 | 95,335 |
Collateral Pledged | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 144,424 | 110,174 |
Collateral Pledged | Commercial real estate | Commercial real estate | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 94,248 | 110,174 |
Collateral Pledged | Commercial real estate | Construction | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 50,176 | 0 |
Collateral Pledged | Residential mortgage | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | 21,695 | 35,745 |
Collateral Pledged | Consumer | Home equity | ||
Accounts, Notes, Loans and Financing Receivable [Line Items] | ||
Loans | $ 2 | $ 4 |
Loans and Allowance for Cred_10
Loans and Allowance for Credit Losses for Loans - Summary of Allowance for Credit Losses (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Receivables [Abstract] | ||||||
Allowance for loan losses | $ 468,819 | $ 362,510 | $ 359,202 | $ 339,324 | $ 342,880 | $ 340,243 |
Allowance for unfunded credit commitments | 22,144 | 16,500 | ||||
Total allowance for credit losses for loans | $ 490,963 | $ 375,702 |
Loans and Allowance for Cred_11
Loans and Allowance for Credit Losses for Loans - Summary of Provision for Credit Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Receivables [Abstract] | ||||
Provision for loan losses | $ 38,310 | $ 5,810 | $ 41,568 | $ 14,502 |
Provision for unfunded credit commitments | 5,402 | 2,967 | 5,644 | 3,289 |
Total provision for credit losses for loans | $ 43,712 | $ 8,777 | $ 47,212 | $ 17,791 |
Loans and Allowance for Cred_12
Loans and Allowance for Credit Losses for Loans - Summary of Activity in Allowance for Loan Losses (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Allowance for loan losses: | |||||
Beginning balance | $ 362,510 | $ 362,510 | $ 342,880 | $ 359,202 | $ 340,243 |
Allowance for purchase credit deteriorated (PCD) loans | 70,319 | 70,319 | 70,319 | ||
Loans charged-off | (5,267) | (12,374) | (7,862) | (21,174) | |
Charged-off loans recovered | 2,947 | 3,008 | 5,592 | 5,753 | |
Net (charge-offs) recoveries | (2,320) | (9,366) | (2,270) | (15,421) | |
Provision for loan losses | 38,310 | 5,810 | 41,568 | 14,502 | |
Ending balance | 468,819 | 339,324 | 468,819 | 339,324 | |
Charge-offs | 62,400 | 62,400 | |||
Commercial and industrial | |||||
Allowance for loan losses: | |||||
Beginning balance | 101,203 | 101,203 | 126,408 | 103,090 | 131,070 |
Allowance for purchase credit deteriorated (PCD) loans | 33,452 | 33,452 | |||
Loans charged-off | (4,540) | (10,893) | (6,111) | (18,035) | |
Charged-off loans recovered | 1,952 | 678 | 2,776 | 2,267 | |
Net (charge-offs) recoveries | (2,588) | (10,215) | (3,335) | (15,768) | |
Provision for loan losses | 12,472 | (6,504) | 11,332 | (5,613) | |
Ending balance | 144,539 | 109,689 | 144,539 | 109,689 | |
Commercial Real Estate | |||||
Allowance for loan losses: | |||||
Beginning balance | 219,949 | 219,949 | 174,236 | 217,490 | 164,113 |
Allowance for purchase credit deteriorated (PCD) loans | 36,618 | 36,618 | |||
Loans charged-off | 0 | 0 | (173) | (382) | |
Charged-off loans recovered | 224 | 665 | 331 | 734 | |
Net (charge-offs) recoveries | 224 | 665 | 158 | 352 | |
Provision for loan losses | 20,436 | 14,238 | 22,961 | 24,674 | |
Ending balance | 277,227 | 189,139 | 277,227 | 189,139 | |
Residential Mortgage | |||||
Allowance for loan losses: | |||||
Beginning balance | 28,189 | 28,189 | 27,172 | 25,120 | 28,873 |
Allowance for purchase credit deteriorated (PCD) loans | 206 | 206 | |||
Loans charged-off | (1) | (1) | (27) | (139) | |
Charged-off loans recovered | 74 | 191 | 531 | 348 | |
Net (charge-offs) recoveries | 73 | 190 | 504 | 209 | |
Provision for loan losses | 1,421 | (2,059) | 4,059 | (3,779) | |
Ending balance | 29,889 | 25,303 | 29,889 | 25,303 | |
Consumer | |||||
Allowance for loan losses: | |||||
Beginning balance | $ 13,169 | 13,169 | 15,064 | 13,502 | 16,187 |
Allowance for purchase credit deteriorated (PCD) loans | 43 | 43 | |||
Loans charged-off | (726) | (1,480) | (1,551) | (2,618) | |
Charged-off loans recovered | 697 | 1,474 | 1,954 | 2,404 | |
Net (charge-offs) recoveries | (29) | (6) | 403 | (214) | |
Provision for loan losses | 3,981 | 135 | 3,216 | (780) | |
Ending balance | $ 17,164 | $ 15,193 | $ 17,164 | $ 15,193 |
Loans and Allowance for Cred_13
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 | Jun. 30, 2022 | Mar. 31, 2022 | Dec. 31, 2021 | Jun. 30, 2021 | Mar. 31, 2021 | Dec. 31, 2020 |
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for credit losses | $ 105,196 | $ 71,496 | ||||
Collectively evaluated for credit losses | 363,623 | 287,706 | ||||
Total | 468,819 | $ 362,510 | 359,202 | $ 339,324 | $ 342,880 | $ 340,243 |
Individually evaluated for credit losses | 367,806 | 298,795 | ||||
Collectively evaluated for credit losses | 43,192,971 | 33,854,862 | ||||
Total | 43,560,777 | 34,153,657 | ||||
Commercial and industrial | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for credit losses | 93,698 | 64,359 | ||||
Collectively evaluated for credit losses | 50,841 | 38,731 | ||||
Total | 144,539 | 101,203 | 103,090 | 109,689 | 126,408 | 131,070 |
Individually evaluated for credit losses | 164,235 | 119,760 | ||||
Collectively evaluated for credit losses | 8,350,223 | 5,727,791 | ||||
Total | 8,514,458 | 5,847,551 | ||||
Commercial Real Estate | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for credit losses | 10,757 | 6,277 | ||||
Collectively evaluated for credit losses | 266,470 | 211,213 | ||||
Total | 277,227 | 219,949 | 217,490 | 189,139 | 174,236 | 164,113 |
Individually evaluated for credit losses | 169,737 | 134,135 | ||||
Collectively evaluated for credit losses | 26,739,722 | 20,655,931 | ||||
Total | 26,909,459 | 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 | 29,248 | 24,650 | ||||
Total | 29,889 | 28,189 | 25,120 | 25,303 | 27,172 | 28,873 |
Individually evaluated for credit losses | 32,303 | 42,469 | ||||
Collectively evaluated for credit losses | 4,972,766 | 4,502,595 | ||||
Total | 5,005,069 | 4,545,064 | ||||
Consumer | ||||||
Financing Receivable, Allowance for Credit Loss [Line Items] | ||||||
Individually evaluated for credit losses | 100 | 390 | ||||
Collectively evaluated for credit losses | 17,064 | 13,112 | ||||
Total | 17,164 | $ 13,169 | 13,502 | $ 15,193 | $ 15,064 | $ 16,187 |
Individually evaluated for credit losses | 1,531 | 2,431 | ||||
Collectively evaluated for credit losses | 3,130,260 | 2,968,545 | ||||
Total | $ 3,131,791 | $ 2,970,976 |
Goodwill and Other Intangible_3
Goodwill and Other Intangible Assets - Schedule of Goodwill (Details) $ in Thousands | 6 Months Ended |
Jun. 30, 2022 USD ($) | |
Goodwill [Roll Forward] | |
Beginning balance | $ 1,459,008 |
Goodwill from business combinations | 412,497 |
Ending balance | 1,871,505 |
Consumer Lending | |
Goodwill [Roll Forward] | |
Beginning balance | 284,366 |
Goodwill from business combinations | 85 |
Ending balance | 284,451 |
Commercial Lending | |
Goodwill [Roll Forward] | |
Beginning balance | 1,138,243 |
Goodwill from business combinations | 396,848 |
Ending balance | 1,535,091 |
Wealth Management | Consumer Lending | |
Goodwill [Roll Forward] | |
Beginning balance | 36,399 |
Goodwill from business combinations | 15,564 |
Ending balance | $ 51,963 |
Goodwill and Other Intangible_4
Goodwill and Other Intangible Assets - Additional Information (Details) - USD ($) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | Feb. 01, 2022 | |
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill from business combinations | $ 412,497,000 | ||||
Goodwill impairment | 0 | $ 0 | |||
Net impairment (net recovery) | $ 0 | $ (42,000) | (833,000) | ||
Amortization of other intangible assets | 11,400,000 | 5,449,000 | 15,837,000 | 11,455,000 | |
Core Deposits and Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Impairment of core deposits and other intangibles | $ 0 | $ 0 | $ 0 | $ 0 | |
Core Deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average amortization period, years | 10 years | ||||
Other | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Weighted average amortization period, years | 13 years 3 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 | ||||
Bank Leumi USA | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Other intangible assets | $ 39,000,000 | ||||
Bank Leumi USA | Core Deposits | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Finite-lived intangible assets | 114,400,000 | ||||
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 | 15,564,000 | ||||
Wealth Management | Consumer Lending | Landmark Insurance of the Palm Beaches | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill from business combinations | 4,400,000 | ||||
Wealth Management | Consumer Lending | Bank Leumi USA | |||||
Finite-Lived Intangible Assets [Line Items] | |||||
Goodwill from business combinations | $ 403,200,000 |
Goodwill and Other Intangible_5
Goodwill and Other Intangible Assets - Other Intangible Assets (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | $ 394,111 | $ 230,018 |
Accumulated Amortization | (175,469) | (159,632) |
Net Intangible Assets | 218,642 | 70,386 |
Loan servicing rights | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 119,142 | 114,636 |
Accumulated Amortization | (93,697) | (90,951) |
Net Intangible Assets | 25,445 | 23,685 |
Core deposits | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 223,670 | 109,290 |
Accumulated Amortization | (76,447) | (65,488) |
Net Intangible Assets | 147,223 | 43,802 |
Other | ||
Finite-Lived Intangible Assets [Line Items] | ||
Gross Intangible Assets | 51,299 | 6,092 |
Accumulated Amortization | (5,325) | (3,193) |
Net Intangible Assets | $ 45,974 | $ 2,899 |
Goodwill and Other Intangible_6
Goodwill and Other Intangible Assets - Estimated Future Amortization Expense (Details) $ in Thousands | Jun. 30, 2022 USD ($) |
Loan Servicing Rights | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | $ 1,792 |
2023 | 3,253 |
2024 | 2,849 |
2025 | 2,483 |
2026 | 2,153 |
Core Deposits | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 16,039 |
2023 | 28,746 |
2024 | 24,897 |
2025 | 21,048 |
2026 | 17,223 |
Other | |
Finite-Lived Intangible Assets [Line Items] | |
2022 | 3,509 |
2023 | 6,522 |
2024 | 5,951 |
2025 | 5,380 |
2026 | $ 4,805 |
Stock-Based Compensation (Detai
Stock-Based Compensation (Details) - USD ($) $ / shares in Units, $ in Millions | 3 Months Ended | 6 Months Ended | |||
Apr. 01, 2022 | Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Common stock available for future issuance (in shares) | 5,200,000 | 5,200,000 | |||
Stock-based compensation expense (in USD) | $ 6.2 | $ 5.2 | $ 13.4 | $ 10.7 | |
Stock-based compensation amortization expense unrecognized (in USD) | $ 43.3 | $ 43.3 | |||
Average remaining vesting period (in years) | 2 years 2 months 4 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) | 937,000 | 109,000 | 2,100,000 | 1,200,000 | |
Award vesting period (in years) | 3 years | ||||
Average grant date fair value (usd per share) | $ 13.51 | $ 11.63 | |||
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) | $ 14.72 | $ 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) | 619,000 | 604,000 | |||
Bank Leumi USA Options | |||||
Share-based Compensation Arrangement by Share-based Payment Award [Line Items] | |||||
Shares issued | 2,700,000 | ||||
Weighted average exercise price (in dollars per share) | $ 8.47 |
Derivative Instruments and He_3
Derivative Instruments and Hedging Activities - Additional Information (Details) | 3 Months Ended | 6 Months Ended | |||
Jun. 30, 2022 USD ($) swap | Jun. 30, 2021 USD ($) | Jun. 30, 2022 USD ($) swap | Jun. 30, 2021 USD ($) | Dec. 31, 2021 USD ($) | |
Derivative [Line Items] | |||||
Aggregate fair value of net liability position | $ 0 | $ 0 | |||
Derivatives not designated as hedging instruments: | |||||
Derivative [Line Items] | |||||
Notional amount | $ 14,200,152,000 | $ 14,200,152,000 | $ 10,613,888,000 | ||
Interest rate swaps | |||||
Derivative [Line Items] | |||||
Number of instruments held | swap | 5 | 5 | |||
Notional amount | $ 500,000,000 | $ 500,000,000 | |||
Accumulated net after-tax losses related to effective cash flow hedges | 831,000 | 831,000 | 1,300,000 | ||
Reclassified to interest expense | 730,000 | 730,000 | |||
Interest rate swaps | Fair value hedge interest rate swaps | Noninterest Income | |||||
Derivative [Line Items] | |||||
Fee income related to derivative interest rate swaps executed with commercial loan customers | $ 11,100,000 | $ 7,600,000 | $ 25,100,000 | $ 13,800,000 | |
Interest rate swaps | Derivatives not designated as hedging instruments: | |||||
Derivative [Line Items] | |||||
Number of instruments held | swap | 26 | 26 | |||
Notional amount | $ 12,523,601,000 | $ 12,523,601,000 | $ 10,179,294,000 | ||
Interest rate swaps | Derivatives not designated as hedging instruments: | Fair value hedge interest rate swaps | |||||
Derivative [Line Items] | |||||
Number of instruments held | swap | 2 | 2 | |||
Notional amount | $ 10,400,000 | $ 10,400,000 | |||
Interest rate swaps | Derivatives not designated as hedging instruments: | Risk Participation Agreement | |||||
Derivative [Line Items] | |||||
Notional amount | $ 243,900,000 | $ 243,900,000 |
Derivative Instruments and He_4
Derivative Instruments and Hedging Activities - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Interest rate swaps | ||
Derivative [Line Items] | ||
Other Assets | $ 0 | $ 0 |
Other Liabilities | 340,333 | 50,689 |
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 | 490 | 0 |
Derivatives designated as hedging instruments: | Other Liabilities | ||
Derivative [Line Items] | ||
Other Liabilities | 22,056 | 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 | 490 | 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 | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 300,000 | 300,000 |
Derivatives designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps | Other Assets | ||
Derivative [Line Items] | ||
Other Assets | 0 | 0 |
Derivatives designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps | Other Liabilities | ||
Derivative [Line Items] | ||
Other Liabilities | 22,056 | 3,335 |
Derivatives not designated as hedging instruments: | ||
Derivative [Line Items] | ||
Notional Amount | 14,200,152 | 10,613,888 |
Derivatives not designated as hedging instruments: | Other Assets | ||
Derivative [Line Items] | ||
Other Assets | 343,699 | 181,500 |
Derivatives not designated as hedging instruments: | Other Liabilities | ||
Derivative [Line Items] | ||
Other Liabilities | 342,210 | 48,731 |
Derivatives not designated as hedging instruments: | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | 12,523,601 | 10,179,294 |
Derivatives not designated as hedging instruments: | Interest rate swaps | Other Assets | ||
Derivative [Line Items] | ||
Other Assets | 318,521 | 180,701 |
Derivatives not designated as hedging instruments: | Interest rate swaps | Other Liabilities | ||
Derivative [Line Items] | ||
Other Liabilities | 318,277 | 47,044 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 1,590,130 | 122,166 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other Assets | ||
Derivative [Line Items] | ||
Other Assets | 24,489 | 311 |
Derivatives not designated as hedging instruments: | Foreign currency derivatives | Other Liabilities | ||
Derivative [Line Items] | ||
Other Liabilities | 23,481 | 233 |
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | ||
Derivative [Line Items] | ||
Notional Amount | 86,421 | 312,428 |
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | Other Assets | ||
Derivative [Line Items] | ||
Other Assets | 689 | 488 |
Derivatives not designated as hedging instruments: | Mortgage banking derivatives | Other Liabilities | ||
Derivative [Line Items] | ||
Other Liabilities | 452 | $ 1,454 |
Derivatives not designated as hedging instruments: | Fair value hedge interest rate swaps | Interest rate swaps | ||
Derivative [Line Items] | ||
Notional Amount | $ 10,400 |
Derivative Instruments and He_5
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 | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Amounts Related To Interest Rate Derivatives Included In Income Designated As Hedges Of Cash Flows [Line Items] | ||||
Amount of gain (loss) reclassified from accumulated other comprehensive loss to interest expense | $ (34,787) | $ (32,741) | $ (57,576) | $ (71,872) |
Amount of gain (loss) recognized in other comprehensive loss | 121 | (158) | 441 | 19 |
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 gain (loss) reclassified from accumulated other comprehensive loss to interest expense | $ 116 | $ (749) | $ (426) | $ (1,664) |
Derivative Instruments and He_6
Derivative Instruments and Hedging Activities - Gains (Losses) on Interest Rate Derivatives Designated as Fair Value Hedges (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Gain Loss On Fair Value Hedges Recognized In Earnings [Line Items] | ||||
Gain (loss) related to hedged loans | $ 20,194 | $ 0 | ||
Fair value hedge interest rate swaps | 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 | $ 76 | $ 80 | 606 | 80 |
Fair value hedge interest rate swaps | 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 | $ (147) | $ (83) | $ (477) | $ (83) |
Derivative Instruments and He_7
Derivative Instruments and Hedging Activities - Interest Rate Derivatives Designated as Hedges (Details) - Fair value hedge interest rate swaps - Derivatives designated as hedging instruments: - Derivative - interest rate swap: $ in Thousands | Jun. 30, 2022 USD ($) |
Derivative [Line Items] | |
Carrying Amount of the Hedged Liability | $ 277,486 |
Cumulative Amount of Fair Value Hedging Adjustment Included in the Carrying Amount of the Hedged Liability | $ (22,514) |
Derivative Instruments and He_8
Derivative Instruments and Hedging Activities - Net (Gains) Losses Related to Derivative Instruments Not Designated as Hedging Instruments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Non-designated hedge interest rate swaps and credit derivatives | ||||
Other non-interest expense | $ 1,143 | $ (2,210) | $ (1,654) | $ (425) |
Balance Sheet Offsetting (Detai
Balance Sheet Offsetting (Details) - Interest rate swaps - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Offsetting Assets | ||
Gross Amounts Recognized | $ 319,011 | $ 180,701 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 319,011 | 180,701 |
Gross Amounts Not Offset, Financial Instruments | 11,492 | 0 |
Gross Amounts Not Offset, Cash Collateral | 307,724 | 0 |
Net Amount | 0 | 180,701 |
Offsetting Liabilities | ||
Gross Amounts Recognized | 340,333 | 50,689 |
Gross Amounts Offset | 0 | 0 |
Net Amounts Presented | 340,333 | 50,689 |
Gross Amounts Not Offset, Financial Instruments | (11,492) | 0 |
Gross Amounts Not Offset, Cash Collateral | (1,142) | (44,231) |
Net Amount | $ 327,699 | $ 6,458 |
Tax Credit Investments - Balanc
Tax Credit Investments - Balance Sheet Disclosures (Details) - USD ($) $ in Thousands | Jun. 30, 2022 | Dec. 31, 2021 |
Other Assets | ||
Other Assets: | ||
Affordable housing tax credit investments, net | $ 26,003 | $ 15,343 |
Other tax credit investments, net | 49,483 | 57,006 |
Total tax credit investments, net | 75,486 | 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 |
Tax Credit Investments - Income
Tax Credit Investments - Income Statement Disclosures (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Components of Income Tax Expense: | ||||
Affordable housing tax credits and other tax benefits | $ 1,614 | $ 899 | $ 2,358 | $ 1,796 |
Other tax credit investment credits and tax benefits | 2,539 | 2,743 | 5,090 | 5,428 |
Total reduction in income tax expense | 4,153 | 3,642 | 7,448 | 7,224 |
Non-Interest Expenses | ||||
Amortization of Tax Credit Investments: | ||||
Affordable housing tax credit investment losses | 653 | 460 | 1,068 | 1,003 |
Affordable housing tax credit investment impairment losses | 363 | 431 | 625 | 772 |
Other tax credit investment losses | 386 | 351 | 695 | 524 |
Other tax credit investment impairment losses | 1,791 | 1,730 | 3,701 | 3,417 |
Total amortization of tax credit investments recorded in non-interest expense | $ 3,193 | $ 2,972 | $ 6,089 | $ 5,716 |
Operating Segments (Details)
Operating Segments (Details) | 6 Months Ended |
Jun. 30, 2022 Segment | |
Segment Reporting [Abstract] | |
Number of reportable segments | 4 |
Operating Segments - Schedule o
Operating Segments - Schedule of Financial Data for Business Segments (Details) - USD ($) $ in Thousands | 3 Months Ended | 6 Months Ended | ||
Jun. 30, 2022 | Jun. 30, 2021 | Jun. 30, 2022 | Jun. 30, 2021 | |
Segment Reporting Information [Line Items] | ||||
Average interest earning assets | $ 48,891,230 | $ 37,907,414 | $ 44,609,968 | $ 37,648,256 |
Interest income | 452,947 | 333,648 | 793,405 | 665,446 |
Interest expense | 34,787 | 32,741 | 57,576 | 71,872 |
Net interest income | 418,160 | 300,907 | 735,829 | 593,574 |
Provision for credit losses | 43,998 | 8,747 | 47,555 | 17,403 |
Net Interest Income After Provision for Credit Losses | 374,162 | 292,160 | 688,274 | 576,171 |
Non-interest income | 58,533 | 43,126 | 97,803 | 74,359 |
Non-interest expense | 299,730 | 171,893 | 497,070 | 332,106 |
Internal transfer expense (income) | 0 | 0 | 0 | 0 |
Income Before Income Taxes | $ 132,965 | $ 163,393 | $ 289,007 | $ 318,424 |
Return on average interest earning assets (pre-tax) | 1.09% | 1.72% | 1.30% | 1.69% |
Consumer Lending | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Average interest earning assets | $ 7,967,305 | $ 7,150,137 | $ 7,848,764 | $ 7,099,973 |
Interest income | 63,137 | 59,419 | 122,596 | 120,264 |
Interest expense | 4,723 | 5,192 | 7,930 | 11,607 |
Net interest income | 58,414 | 54,227 | 114,666 | 108,657 |
Provision for credit losses | 5,402 | 711 | 7,275 | (1,924) |
Net Interest Income After Provision for Credit Losses | 53,012 | 53,516 | 107,391 | 110,581 |
Non-interest income | 17,086 | 21,915 | 30,903 | 35,600 |
Non-interest expense | 18,791 | 19,792 | 35,359 | 39,641 |
Internal transfer expense (income) | 37,629 | 19,862 | 66,276 | 39,364 |
Income Before Income Taxes | $ 13,678 | $ 35,777 | $ 36,659 | $ 67,176 |
Return on average interest earning assets (pre-tax) | 0.69% | 2% | 0.93% | 1.89% |
Commercial Lending | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Average interest earning assets | $ 34,549,982 | $ 25,485,161 | $ 30,743,387 | $ 25,509,061 |
Interest income | 352,440 | 255,895 | 610,346 | 508,231 |
Interest expense | 19,735 | 18,467 | 31,062 | 41,702 |
Net interest income | 332,705 | 237,428 | 579,284 | 466,529 |
Provision for credit losses | 38,310 | 8,066 | 39,937 | 19,715 |
Net Interest Income After Provision for Credit Losses | 294,395 | 229,362 | 539,347 | 446,814 |
Non-interest income | 14,425 | 9,819 | 31,305 | 17,533 |
Non-interest expense | 24,448 | 27,241 | 49,533 | 52,772 |
Internal transfer expense (income) | 157,365 | 71,207 | 257,281 | 141,790 |
Income Before Income Taxes | $ 127,007 | $ 140,733 | $ 263,838 | $ 269,785 |
Return on average interest earning assets (pre-tax) | 1.47% | 2.21% | 1.72% | 2.12% |
Treasury and Corporate Other | Operating Segments | ||||
Segment Reporting Information [Line Items] | ||||
Return on average interest earning assets (pre-tax) | (1.00%) | |||
Treasury and Corporate Other | Treasury and Corporate Other | ||||
Segment Reporting Information [Line Items] | ||||
Average interest earning assets | $ 6,373,943 | $ 5,272,116 | $ 6,017,817 | $ 5,039,222 |
Interest income | 37,370 | 18,334 | 60,463 | 36,951 |
Interest expense | 10,329 | 9,082 | 18,584 | 18,563 |
Net interest income | 27,041 | 9,252 | 41,879 | 18,388 |
Provision for credit losses | 286 | (30) | 343 | (388) |
Net Interest Income After Provision for Credit Losses | 26,755 | 9,282 | 41,536 | 18,776 |
Non-interest income | 27,022 | 11,392 | 35,595 | 21,226 |
Non-interest expense | 256,491 | 124,860 | 412,178 | 239,693 |
Internal transfer expense (income) | (194,994) | (91,069) | (323,557) | (181,154) |
Income Before Income Taxes | $ (7,720) | $ (13,117) | $ (11,490) | $ (18,537) |
Return on average interest earning assets (pre-tax) | (0.48%) | (0.38%) | (0.74%) |