1 Q 2 2 E a r n i n g s P r e s e n t a t i o n > A p r i l 2 8 , 2 0 2 2 Forward Looking Statements The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management's confidence and strategies and management's expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions a ...

Valley National Bancorp (NASDAQ:VLY) Q1 2022 Earnings Conference Call April 28, 2022 11:00 AM ET Company Participants Travis Lan - Head of Investor Relations Ira Robbins - President and CEO Tom Iadanza - President Mike Hagedorn - Chief Financial Officer Conference Call Participants Frank Schiraldi - Piper Sandler Michael Perito - KBW Steven Alexopoulos - JPMorgan Matthew Breese - Stephens Dave Bishop - Hovde Group Operator Thank you for standing by, and welcome to the First Quarter 2022 Valley National Banc ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2021 ☐ TRANSITION REPORT PURSUANT TO SECTION 13 OR 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the transition period from to Commission File Number 1-11277 VALLEY NATIONAL BANCORP (Exact name of registrant as specified in its charter) New Jersey 22-2477875 (State or other jurisdiction of ...

Financial Performance - The company's diluted EPS has shown consistent growth from 2019 to 2021[4] - Return on Average Assets has increased from 0.93% in 2019 to 0.98% reported and 0.96% to 0.99% adjusted in 2020 and 2021 respectively[5] - Net Interest Income increased from $898 million in 2019 to $1,125 million in 2021 reported and $1,119 million to $1,210 million ex PPP[7] - The efficiency ratio improved from 56.8% reported and 53.8% adjusted in 2019 to 50.7% reported and 48.4% adjusted in 2021[10] - Total Risk-Based Capital Ratio increased from 11.72% in 2019 to 13.10% in 2021, and Tangible Book Value per Share grew from $6.73 in 2019 to $7.94 in 2021[12] Loan Growth - Total loans have increased by $16.9 billion since 2016, split approximately evenly between organic and acquired loans[17] - Total loans have increased at a CAGR of 14.7%, while organic loans (ex PPP) have increased at a CAGR of 8.2%[18] - In 4Q21, the company experienced annualized organic non-PPP loan growth of approximately 13% (excluding Westchester)[23] - Non-Owner Occupied CRE increased +14% / +$1.9 billion in 2021[41] 4Q 2021 Highlights - Net Income for 4Q21 was $115 million reported and $120.5 million adjusted[23] - Return on Average Assets for 4Q21 was 1.08% reported and 1.14% adjusted, or 0.98% reported and 1.03% adjusted excluding PPP[23] - Efficiency Ratio for 4Q21 was 52.2% reported and 49.4% adjusted[23] - Pre-Provision Net Revenue for 4Q21 was $169 million reported and $178.8 million adjusted[23] Deposits and Funding - As of 4Q21, PPP balances have declined to $436 million from a peak of $2.4 billion in 1Q21[26] - Cost of total deposits declined 3bp to 0.15% from 0.18% in 3Q21[38] 2022 Targets & Outlook (Excludes Leumi) - Organic, non-PPP loan growth between 7% - 9% (based on 2021 gross loans of $33.7 billion, ex-PPP)[67] - Net interest income growth between 5% - 7% (from full-year 2021 of $1,210 million, includes PPP income)[67] - Adjusted efficiency at or below 50%[67]

Valley National Bancorp (NASDAQ:VLY) Q4 2021 Results Conference Call January 27, 2022 11:00 AM ET Company Participants Travis Lan - Head of Investor Relations Ira Robbins - President and CEO Mike Hagedorn - Chief Financial Officer Tom Iadanza - Chief Banking Officer Conference Call Participants Michael Perito - KBW Steven Alexopoulos - JPMorgan Operator Good day, and thank you for standing by. Welcome to the Fourth Quarter 2021 Valley National Bancorp Earnings Conference Call. [Operator Instructions] I woul ...

Financial Performance - Net income for the third quarter 2021 was $122.6 million, or $0.29 per diluted common share, compared to $102.4 million, or $0.25 per diluted common share, for the same quarter in 2020, representing a 19.7% increase in net income [180]. - Adjusted net income for Q3 2021 was $124.7 million, compared to $104.2 million in Q3 2020 [195]. - Net interest income for the nine months ended September 30, 2021 was $894.6 million, compared to $830.984 million for the same period in 2020 [207]. - Net interest income increased by $17.6 million (approximately 15.5%) for the three months ended September 30, 2021, compared to the same period in 2020, and by $63.1 million (approximately 7.6%) for the nine months ended September 30, 2021 [211]. - Non-interest income decreased by $6.8 million (approximately 13.8%) for the three months ended September 30, 2021, and by $18.7 million (approximately 13.8%) for the nine months ended September 30, 2021, compared to the same periods in 2020 [214]. Asset and Loan Portfolio - As of September 30, 2021, Valley National Bancorp had total assets of approximately $41.3 billion, total net loans of $32.3 billion, total deposits of $33.6 billion, and total shareholders' equity of $4.8 billion [172]. - Total loans increased by $149.4 million to $32.6 billion as of September 30, 2021, despite a $476.7 million decrease in PPP loans [186]. - Non-PPP loan portfolio rose by $626.0 million, or 8.0% on an annualized basis, reaching $31.7 billion [186]. - Commercial real estate loans increased by $399.9 million, or 9.1% on an annualized basis, reaching $17.9 billion as of September 30, 2021, driven by strong demand for non-owner occupied loans [292]. - Residential mortgage loans rose by $105.4 million, or 10.0% on an annualized basis, with total origination of new and refinanced loans at $622.1 million for Q3 2021 [293]. Deposits and Funding - Average deposits grew by $876.6 million to $33.6 billion, with non-interest bearing deposits at approximately 32% of total deposits [190]. - Actual ending balances for deposits increased by $437.8 million to approximately $33.6 billion, driven by increases in non-maturity interest bearing and non-interest bearing deposits [191]. - Total brokered deposits decreased by approximately $315 million to $1.7 billion as of September 30, 2021 [191]. - Average core deposits totaled approximately $29.2 billion for the nine months ended September 30, 2021, representing 77.6% of average earning assets [274]. Credit Quality and Loan Losses - Non-accrual loans increased by $31.8 million to $251.8 million, representing 0.77% of total loans [188]. - The allowance for loan losses as a percentage of non-accrual loans was 136.01% at September 30, 2021 [315]. - The provision for loan losses for the consumer lending segment decreased by $21.8 million to a credit provision of $6.5 million for the nine months ended September 30, 2021 [251]. - Net loan charge-offs for Q3 2021 totaled $293 thousand, significantly down from $9.4 million in Q2 2021 and $15.4 million in Q3 2020 [324]. Acquisitions and Growth Strategy - Valley extended a total of $3.2 billion in Paycheck Protection Program (PPP) loans, with $2.3 billion of these loans receiving forgiveness from the SBA as of September 30, 2021 [178]. - The company announced the acquisition of The Westchester Bank Holding Corporation, with Westchester having total assets of $1.3 billion and expected to close on December 1, 2021 [173]. - Valley is set to acquire Bank Leumi Le-Israel Corporation, which has total assets of $8.4 billion, with the acquisition expected to close in the first half of 2022 [175]. - Valley acquired Dudley Ventures for $11.3 million in cash and $3.8 million in future stock consideration, aimed at enhancing non-interest income sources [176]. Interest Rates and Economic Environment - The Federal Reserve maintained the federal funds rate between 0.00% and 0.25% to support economic recovery, with indications of a potential moderation in asset purchases [183]. - The 10-year U.S. Treasury note yield ended the third quarter at 1.52%, reflecting a 7 basis points increase from June 30, 2021 [184]. - The company expects moderate ongoing interest rate pressures on net interest margin for Q4 2021 and beyond due to low market rates [202]. Operational Efficiency - The efficiency ratio for the three months ended September 30, 2021, was 50.93%, compared to 48.20% for the same period in 2020, indicating a decline in operational efficiency [227]. - Non-interest expense increased by $14.7 million (approximately 9.2%) for the three months ended September 30, 2021, and by $34.0 million (approximately 7.2%) for the nine months ended September 30, 2021, compared to the same periods in 2020 [219]. Shareholder Equity and Capital Ratios - Shareholders' equity increased to approximately $4.8 billion as of September 30, 2021, up from $4.6 billion at the end of 2020, representing 11.7% of total assets [328]. - The company exceeded all regulatory capital requirements, maintaining a common equity Tier 1 capital to risk-weighted assets ratio of 4.5% [330]. - Valley's total risk-based capital as of December 31, 2020, was $3,802,223, with a ratio of 12.64% [333].

Valley National Bancorp (NASDAQ:VLY) Q3 2021 Earnings Conference Call October 28, 2021 11:00 AM ET Company Participants Travis Lan - Head of Investor Relations Ira Robbins - President and CEO Mike Hagedorn - Chief Financial Officer Tom Iadanza - Chief Banking Officer Conference Call Participants Steven Alexopoulos - JP Morgan Michael Perito - KBW Steven Duong - RBC Capital Markets Ken Zerbe - Morgan Stanley Matthew Breese - Stephens, Inc. David Chiaverini - Wedbush Securities Operator Good day, and thank yo ...

Financial Performance - Net income for Q2 2021 was $120.5 million, or $0.29 per diluted common share, compared to $95.6 million, or $0.23 per diluted common share in Q2 2020, reflecting a $24.9 million increase[180]. - The increase in net income was primarily due to an $18.3 million rise in net interest income and a $32.4 million decrease in the provision for credit losses[180]. - Adjusted net income for Q2 2021 was $126.6 million, compared to $95.9 million for Q2 2020[196]. - Return on average assets was 1.17% for Q2 2021, up from 0.92% for Q2 2020[195]. - Non-interest income decreased by $1.7 million and $11.9 million for the three and six months ended June 30, 2021, respectively, compared to the same periods in 2020, totaling $43.126 million for the three months[217]. Loan Portfolio - Total loans decreased by $229 million to $32.5 billion at June 30, 2021, primarily due to a $1.0 billion decrease in PPP loans, while non-PPP loans increased by $785 million, or 10.4% on an annualized basis[187]. - Valley extended a total of $3.2 billion in PPP loans, with $1.8 billion forgiven by the SBA as of June 30, 2021, leaving approximately $1.4 billion outstanding[176]. - The total loan portfolio amounted to $32.46 billion as of June 30, 2021, with commercial and industrial loans making up 18.7% and commercial real estate loans comprising 59.4%[287]. - Commercial and industrial loans decreased by $1.1 billion, or 59.5%, to $6.1 billion as of June 30, 2021, primarily due to $1.0 billion of PPP loans being forgiven[288]. - Residential mortgage loans rose by $166.5 million, or 16.4%, during Q2 2021, with total originations reaching approximately $753.2 million[290]. Asset Quality - Total non-performing assets increased by $16.1 million to $226.6 million at June 30, 2021[188]. - Non-accrual loans increased by $16.0 million to $220.0 million, representing 0.68% of total loans as of June 30, 2021, compared to 0.62% at March 31, 2021[189]. - The allowance for credit losses for loans was $353.7 million as of June 30, 2021, representing 1.09% of total loans, compared to 1.08% in the first quarter of 2021 and 0.99% in the second quarter of 2020[321]. - The provision for credit losses was $8.8 million in the second quarter of 2021, down from $9.0 million in the first quarter of 2021 and significantly lower than $41.1 million in the second quarter of 2020[321]. - The company identified approximately $2.1 billion, or 6.8% of total loans, as higher risk credit exposures in industries affected by COVID-19[309]. Deposits and Funding - Average deposits increased by $887.9 million to $32.7 billion for Q2 2021 compared to Q1 2021, with non-interest bearing deposits, savings, NOW, and money market deposits representing approximately 32%, 54%, and 14% of total deposits, respectively[191]. - Actual ending balances for deposits increased by $609.6 million to approximately $33.2 billion at June 30, 2021, largely due to increases in non-maturity interest bearing and non-interest bearing deposits[192]. - Average core deposits totaled approximately $29.4 billion for the six months ended June 30, 2021, representing 77.7 percent of average earning assets[272]. - Short-term borrowings decreased by approximately $293.6 million to $854.4 million at June 30, 2021, compared to December 31, 2020, due to normal repayments[274]. - Valley redeemed $60 million of callable subordinated notes and issued $300 million of 3.00 percent subordinated notes during the second quarter of 2021[276]. Capital and Ratios - Shareholders' equity increased to approximately $4.7 billion as of June 30, 2021, representing 11.5% of total assets, up from 11.3% at the end of 2020[324]. - The company maintained a common equity Tier 1 capital ratio of 4.5% and exceeded all regulatory capital requirements as of June 30, 2021[326]. - Valley's total risk-based capital was $4,196,323, representing a ratio of 13.36%, exceeding the minimum requirement of 10.50%[329]. - The tangible book value per common share increased to $7.59 as of June 30, 2021, compared to $7.25 as of December 31, 2020[329]. - The annualized ratio of net charge-offs to average loans outstanding was 0.11% for the second quarter of 2021, compared to 0.07% in the first quarter of 2021[323]. Economic Environment - The economic environment showed a 6.5% growth in real GDP for Q2 2021, driven by personal consumption, although the pace of growth is expected to moderate[182]. - The Federal Reserve maintained the federal funds rate target range between 0% and 0.25% to support economic recovery[183]. - The company maintained a higher weighting on Moody's Baseline scenario, projecting GDP expansion of over 6.7% in Q3 2021 and unemployment improving to 3.5% by Q2 2023[316]. Strategic Initiatives - Valley announced the acquisition of The Westchester Bank Holding Corporation, which has approximately $1.3 billion in assets and is expected to close in Q4 2021[174]. - The company expects the majority of the remaining $1.4 billion of PPP loans to qualify for forgiveness, impacting future loan growth[288]. - The company remains cautiously optimistic about non-PPP loan growth as economic recovery continues, with robust loan origination pipelines[295].

Financial Data and Key Metrics Changes - The company reported a net income of $121 million and earnings per share of $0.29, marking the highest quarterly earnings in its history for the fourth consecutive quarter [8] - Return on average assets was 1.17%, with an adjusted return of 1.23% reflecting strong net interest margin performance and improved fee income [8] - Net interest margin increased to 3.18% from 3.14% in the previous quarter, with a core margin estimated at 3.07% excluding PPP loans [20][26] Business Line Data and Key Metrics Changes - The company originated a record $2.6 billion in new loans during the quarter, a $1 billion increase from the first quarter, resulting in a 10.4% annualized growth in non-PPP loans [13][29] - Non-interest income rose to $43 million, up nearly 38% sequentially, driven by increased residential mortgage gain-on-sale income and higher income from swaps and insurance commissions [32] - Adjusted expenses increased by approximately 2% to $160 million, primarily due to higher cash incentive compensation accruals [33] Market Data and Key Metrics Changes - The company experienced a 5% increase in non-interest-bearing deposits and a 7% increase in other transaction balances, contributing to a total deposit increase of 2% during the quarter [27] - The growth in deposits was partially attributed to unique funding niches, particularly in the cannabis banking sector, which accounted for about one-third of the new deposits [15][62] Company Strategy and Development Direction - The company announced the acquisition of The Westchester Bank, expecting 1% annual earnings accretion and no impact on pro forma tangible book value or capital ratios [9][10] - The company remains focused on organic growth initiatives while considering strategic M&A opportunities that align with its financial thresholds [11][12] - The company aims to enhance its core funding base and diversify revenue streams through targeted investments in talent and technology [17][34] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the company's ability to capitalize on growth opportunities despite potential increases in expenses due to investments [41] - The company anticipates continued strong financial performance driven by balance sheet growth and core margin stability [8][18] - Management highlighted the importance of maintaining a disciplined approach to M&A, focusing on opportunities that enhance revenue growth and efficiency [11][65] Other Important Information - The allowance for credit losses declined to 1.14% of non-PPP loans, reflecting significant loan growth and an improved economic outlook [35] - Tangible book value increased by 9% over the last 12 months, supported by strong earnings performance [38] Q&A Session Summary Question: Recent lending hires in Florida - The company added 14 new hires in Florida over the last six to nine months, with three onboarded in the second quarter, and is beginning to see benefits from these hires [47] Question: Efficiency ratio outlook - Management indicated that the efficiency ratio may tick up in the near term due to investments but expects revenue growth to follow [54] Question: Competitive landscape for loan originations - The company reported a strong commercial loan pipeline and noted that while the competitive environment is active, it is capturing its fair share of the market [60][61] Question: Update on cannabis banking deposits - Approximately one-third of the new deposits are from the cannabis sector, with a focus on large multi-state operators [62] Question: M&A strategy - Management is more focused on targets that could accelerate revenue growth rather than purely expense opportunities, indicating a cautious approach to larger deals [64][69] Question: Loan portfolio exposure to floating rates - About 60% of the loan book is addressable, with $12 billion tied to LIBOR or prime, allowing for potential repricing [109] Question: Valley Direct digital bank capabilities - Valley Direct aims to improve the online account opening process and enhance customer experience rather than solely focusing on deposit gathering [111][114]

Financial Highlights - Net income reached $120.5 million in 2Q21, compared to $95.6 million in 2Q20[6] - Adjusted net income was $126.6 million in 2Q21, up from $95.9 million in 2Q20[6] - The efficiency ratio was 50.0% in 2Q21, compared to 48.0% in 2Q20[6] - Pre-Provision Net Revenue (PPNR) was $172.1 million in 2Q21, slightly above $170.2 million in 2Q20[6] - Diluted earnings per share increased to $0.29 in 2Q21, compared to $0.23 in 2Q20[6] Westchester Bank Acquisition - The acquisition of The Westchester Bank Holding Corporation is expected to be approximately 1% EPS accretive[11] - Westchester Bank had total assets of $1.313 billion, gross loans of $910 million, and total deposits of $1.116 billion as of March 31, 2021[10] - Westchester Bank's net income was $16.1 million (annualized) for the most recent quarter ended March 31, 2021[10] Loans and Deposits - Total loans outstanding were $32.5 billion as of 2Q21[37] - Non-interest bearing deposits reached $10.5 billion in 2Q21[34] - Savings, NOW & MMA deposits totaled $18.4 billion in 2Q21[34] - Time deposits amounted to $4.3 billion in 2Q21[34]