Key Takeaways Valley National's Q3 adjusted EPS of $0.28 beat estimates and rose 55.6% year over year.Higher net interest and non-interest income boosted results, offsetting increased expenses.Loans slipped slightly while deposits grew; capital ratios and profitability strengthened.Shares of Valley National Bancorp (VLY) rose 4.2% in yesterday’s trading session on better-than-expected quarterly results. Its third-quarter 2025 adjusted earnings per share of 28 cents surpassed the Zacks Consensus Estimate of ...

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In September, Pratchett Smith joined as president of the consumer bank, following leadership roles at Santander, Capital One, and other large financial institutions. Patrick will oversee retail, consumer, and small business sectors drawing on a notable record of growth and execution. Gino and Patrick are already making an incredible impact by enhancing our customer acquisition efforts, talent base, and strategic operating model. Their expertise helps position Valley to further leverage our strong foundation ...

Valley National Bancorp (NasdaqGS:VLY) Q3 2025 Earnings Call October 23, 2025 11:00 AM ET Company ParticipantsIra Robbins - CEOTravis Lan - CFOAndrew Jianette - Head of Investor RelationsGino Martocci - President of Commercial BankingMark Saeger - Chief Credit OfficerPatrick Smith - President of Consumer BankingConference Call ParticipantsMatthew Breese - AnalystJanet Lee - AnalystChris McGratty - AnalystDave Rochester - AnalystFeddie Strickland - AnalystManan Gosalia - AnalystJon Arfstrom - AnalystJon Rau ...

Financial Data and Key Metrics Changes - The company reported net income of approximately $163 million or $0.28 per diluted share, up from $133 million or $0.22 in the previous quarter, marking the highest quarterly profitability since the end of 2022 [4] - The annualized return on average assets is above 1%, achieving many profitability goals ahead of schedule [4][10] - Core customer deposits grew by about $1 billion during the quarter, contributing to a total of nearly 10% core deposit growth over the past year [11][7] Business Line Data and Key Metrics Changes - Gross loans decreased modestly due to targeted runoff in transactional C&I and the C&I commodity subsegment, with average loans increasing by 0.5% during the quarter [12][13] - Non-interest income has grown at an annual rate of 15% since 2017, significantly outpacing publicly traded peers [8] - The company experienced a second consecutive quarter of 3% net interest income growth, with net interest margin (NIM) improving for the sixth consecutive quarter [14] Market Data and Key Metrics Changes - The company has added nearly 110,000 new deposit accounts over the past 12 months, reflecting strong market demand [7] - Brokered deposits now comprise 11% of the total deposit base, the lowest level since Q3 2022 [11] - The pipeline for C&I and CRE loans stands at $3.3 billion, indicating strong market activity [59] Company Strategy and Development Direction - The company is focused on enhancing its commercial and consumer banking sectors, with new leadership in place to drive growth [5][6] - There is a strategic emphasis on expanding into the healthcare C&I and capital call areas, which are seen as having compelling risk-adjusted return profiles [9] - The company aims to grow its small business and retail banking segments, leveraging its existing branch network [46][48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, citing strong customer growth, talent acquisition, and profitability [10] - The competitive environment remains challenging, particularly in C&I and CRE, but the company is well-positioned to capitalize on opportunities [22] - Management anticipates continued stability in non-accrual loans and expects to maintain low credit costs moving forward [16][36] Other Important Information - The company repurchased approximately $12 million worth of shares during the quarter, reflecting confidence in its capital position [17] - Adjusted non-interest expenses declined modestly, driven by lower compensation and occupancy costs [15] - The efficiency ratio continues to improve, with expectations for further progress in the upcoming quarters [15] Q&A Session Summary Question: Could you speak to the competitive backdrop regarding the decline in C&I loans? - Management noted that while spot deposit costs have declined, the competitive environment for new deposit relationships remains strong, with opportunities for repricing existing deposits [20] Question: How are you thinking about the buyback opportunity against conserving capital for longer-term growth? - Management indicated a near-term CET1 target of around 11%, with buybacks being considered as a source of capital deployment going forward [24] Question: Do you expect to continue to have more business coming from outside the Northeast? - Management confirmed that originations are evenly split among the Southeast, Northeast, and specialty businesses, with strong contributions expected from Florida [27][30] Question: Can you provide more color on the increase in non-accrual loans? - Management clarified that the increase was primarily driven by a construction loan, with a significant portion of non-accrual loans being current on payments [34][36] Question: What areas are you most focused on for growth? - Management highlighted opportunities in the Florida franchise, upmarket C&I, and small business banking as key areas for growth [44][46] Question: How do you think about the impact of lower rates on loan growth? - Management indicated that while lower rates could accelerate payoffs, they believe their portfolio is somewhat insulated from this risk [57] Question: What is the outlook for NIM expansion? - Management expects NIM to normalize between 3.20% and 3.40%, with confidence in achieving above 3.1% in the fourth quarter [66] Question: How are you quantifying the potential boost in growth from new hires? - Management anticipates significant momentum in upmarket C&I and business banking growth as new hires are onboarded [68][70]

Financial Data and Key Metrics Changes - Valley National Bancorp reported net income of approximately $163 million or $0.28 per diluted share, up from $133 million or $0.22 in the previous quarter, marking the highest quarterly profitability since the end of 2022 [3] - The annualized return on average assets exceeded 1%, achieving many profitability goals ahead of schedule [3][4] - Non-interest income has grown at an annual rate of 15% since 2017, three times faster than publicly traded peers [6] Business Line Data and Key Metrics Changes - Core deposits increased by about $1 billion during the quarter, with nearly 110,000 new deposit accounts contributing to a nearly 10% growth in core deposits [5][10] - Gross loans decreased modestly due to targeted runoff in transactional C&I and commodity subsegments, with average loans increasing by 0.5% during the quarter [11] - Non-interest income continued strong momentum, with deposit service charges growing due to expanded treasury management capabilities [12][13] Market Data and Key Metrics Changes - Brokered deposits now comprise 11% of the total deposit base, the lowest level since Q3 2022 [10] - The pipeline for C&I and CRE loans is currently at $3.3 billion, indicating strong demand and activity in the market [52] Company Strategy and Development Direction - The company is focused on enhancing its commercial and consumer banking sectors, with new leadership in place to drive growth [4] - Valley aims to leverage its strong foundation to accelerate strategic initiatives, particularly in healthcare C&I and capital call lines [8][41] - The company is targeting low single-digit loan growth for 2026 and beyond, with a focus on diversifying its balance sheet [36][64] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, citing strong customer growth, talent acquisition, and profitability [9] - The company anticipates continued stability in credit performance and expects to sustain low charge-off levels [15][91] - Management is confident in achieving a 15% return on equity target by late 2027 or early 2028, driven by net income expansion and margin improvement [70] Other Important Information - The efficiency ratio continues to improve, with expectations for further progress as positive operating leverage is generated [14] - The company remains well-capitalized, with regulatory capital ratios increasing and plans for share repurchases [16] Q&A Session Summary Question: Competitive backdrop regarding C&I loans and deposit costs - Management noted a decline in spot deposit costs and emphasized the competitive environment for new deposit relationships, with a focus on repricing the backbook [18][19] Question: Capital allocation and buyback opportunities - Management indicated a near-term CET1 target of around 11% and expressed confidence in using buybacks as a capital deployment strategy [22][23] Question: Geographic distribution of C&I and CRE - The company reported a balanced distribution of originations across different geographies, with strong performance in Florida [26][27] Question: Fee income outlook for capital markets and insurance businesses - Management anticipates general stability in fee income for the fourth quarter, with positive momentum expected in capital markets [29] Question: Increase in non-accrual loans - Management clarified that the increase was primarily due to a construction loan migration, with no anticipated losses [32][33] Question: Timeline for non-accrual balances to decline - Management expressed optimism about the resolution of non-accruals, citing positive trends in the C&I market [87][88] Question: Profitability improvement outlook - Management reiterated confidence in achieving the 15% return on equity target, supported by net income expansion and controlled credit costs [70][91]

Valley National Bancorp (NasdaqGS:VLY) Q3 2025 Earnings Call October 23, 2025 11:00 AM ET Speaker0Hello, and thank you for standing by. Welcome to Valley National Bancorp Third Quarter twenty twenty five Earnings Conference Call. At this time, all participants are in a listen only mode. After the speakers' presentation, there will be a question and answer session. I would now like to turn the conference over to Andrew Giannetti.Please go ahead, sir.Speaker1Good morning, and welcome to Valley's third quarter ...

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3Q25 Earnings Presentation October 23, 2025 � Valley 2 3Q 2025 Financial Highlights | | | GAAP Reported | | | Non-GAAP Adjusted 1 | | | --- | --- | --- | --- | --- | --- | --- | | | 3Q25 | 2Q25 | 3Q24 | 3Q25 | 2Q25 | 3Q24 | | Net Income ($mm) | $163.4 | $133.2 | $97.9 | $164.1 | $134.4 | $96.8 | | Return on Average Assets Annualized | 1.04% | 0.86% | 0.63% | 1.04% | 0.87% | 0.62% | | Efficiency Ratio (Non-GAAP) | -- | -- | -- | 53.4% | 55.2% | 56.1% | | Diluted Earnings Per Share | $0.28 | $0.22 | $0.18 | $ ...

Core Viewpoint - Valley National (VLY) reported quarterly earnings of $0.28 per share, exceeding the Zacks Consensus Estimate of $0.26 per share, and showing an increase from $0.18 per share a year ago, indicating a positive earnings surprise of +7.69% [1] Financial Performance - The company posted revenues of $512.36 million for the quarter ended September 2025, which was a miss against the Zacks Consensus Estimate by 0.31%, but an increase from $472.48 million year-over-year [2] - Over the last four quarters, Valley National has surpassed consensus EPS estimates two times and topped consensus revenue estimates two times [2] Stock Performance and Outlook - Valley National shares have increased by approximately 11.8% since the beginning of the year, compared to the S&P 500's gain of 13.9% [3] - The company's earnings outlook is crucial for investors, as it includes current consensus earnings expectations for upcoming quarters and any recent changes to these expectations [4] Earnings Estimate Revisions - The trend for earnings estimate revisions for Valley National was favorable ahead of the earnings release, resulting in a Zacks Rank 2 (Buy) for the stock, indicating expected outperformance in the near future [6] - The current consensus EPS estimate for the upcoming quarter is $0.28 on revenues of $529.43 million, and for the current fiscal year, it is $0.94 on revenues of $2.02 billion [7] Industry Context - The Zacks Industry Rank for Banks - Northeast, to which Valley National belongs, is currently in the top 24% of over 250 Zacks industries, suggesting a favorable industry outlook [8]