Financial Data and Key Metrics Changes - Valley National Bancorp reported record earnings in Q4 2025, with net income of approximately $195 million or $0.33 per diluted share, an increase from $0.28 in Q3 2025 [4] - Adjusted net income was $180 million or $0.31 per diluted share, up from $0.28 on both reported and adjusted basis in Q3 2025 [4] - The adjusted return on average assets reached 1.14%, the highest since Q4 2022 [4] - For the full year 2025, net income was $598 million, or $585 million on an adjusted basis, reflecting significant improvement from 2024 [4] Business Line Data and Key Metrics Changes - Core deposits grew by nearly $4 billion or 9% year-over-year, significantly contributing to profitability improvement [6] - Total loans increased by about $800 million or 7% on an annualized basis, driven by strong commercial real estate originations and continued C&I momentum [18] - The immediate and late-stage pipelines grew over $1 billion or nearly 70% from a year ago, indicating strong future loan growth potential [8] Market Data and Key Metrics Changes - Non-interest deposits grew over 15% on an annualized basis, although this growth may moderate in the upcoming quarters [18] - Total deposit costs decreased by 24 basis points sequentially, indicating improved funding conditions [18] - The net interest margin expanded to 3.17%, exceeding the target of above 3.1% for Q4 2025 [20] Company Strategy and Development Direction - The company aims to enhance its funding profile and profitability through strategic investments in talent, technology, and operational improvements [5][9] - Plans for 2026 include igniting small business sales efforts, improving branch productivity, and exploring new growth-oriented deposit niches [10] - The focus remains on geographic and business line diversification, with ongoing recruitment of experienced commercial bankers [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to enhance funding profiles and profitability, anticipating continued benefits from repricing opportunities [10][11] - The company expects mid-single-digit loan growth in 2026, supported by approximately 10% C&I growth and low single-digit CRE growth [13][14] - Management highlighted the importance of maintaining a balanced approach to capital deployment while supporting organic growth [17] Other Important Information - The company returned $109 million to shareholders through cash dividends and share repurchases in Q4 2025 [17] - The allowance coverage ratio remained stable, with expectations for further normalization of credit costs in 2026 [22] - Tangible book value increased by nearly 3% during the quarter due to retained earnings and favorable impacts from the available-for-sale portfolio [22] Q&A Session Summary Question: Can you discuss the drivers behind the expected net interest margin expansion? - Management indicated that benefits will be balanced between loan and deposit sides, with expectations of lower customer deposit rates and replacing higher-cost brokered deposits [25] Question: How should we think about the net interest margin as we progress through the year? - Management anticipates a slight decrease in margin in Q1, followed by growth back to mid-3.30s by Q4 [27] Question: Will adversely classified assets continue to fall in 2026? - Management expects the trend of declining classified loans to continue if the economy remains stable [32] Question: What is the outlook for loan growth and CRE concentration? - Management indicated a modest improvement in CRE concentration, with expectations of $1 billion in net CRE growth offset by runoff in transactional portfolios [34] Question: How aggressive will the company be in recruiting commercial bankers? - Management sees significant opportunities for growth and is focused on attracting talent while managing expenses effectively [90][92] Question: What is the company's strategy regarding potential M&A? - Management stated that while M&A is an interesting dynamic, the focus remains on organic growth unless a compelling opportunity arises [106][108]

Financial Data and Key Metrics Changes - Valley National Bancorp reported record earnings in Q4 2025, with net income of approximately $195 million or $0.33 per diluted share, an increase from $0.28 in Q3 2025 [4] - Adjusted net income was $180 million or $0.31 per diluted share, up from $0.28 on both reported and adjusted basis in Q3 2025 [4] - The adjusted return on average assets reached 1.14%, the highest since Q4 2022 [4] - For the full year 2025, net income was $598 million, or $585 million on an adjusted basis, reflecting significant improvement from 2024 [4] Business Line Data and Key Metrics Changes - Core deposits grew by nearly $4 billion or 9% year-over-year, significantly contributing to profitability improvement [6] - Total loans increased by about $800 million or 7% on an annualized basis, driven by strong commercial real estate originations and continued C&I momentum [18] - The immediate and late-stage pipelines grew over $1 billion or nearly 70% from a year ago, with notable increases in C&I and commercial real estate [8] Market Data and Key Metrics Changes - Non-interest deposits grew over 15% on an annualized basis, although this growth may moderate in the future [18] - Total deposit costs decreased by 24 basis points sequentially, indicating effective management of funding costs [18] - The net interest margin expanded to 3.17%, exceeding the target of above 3.1% for Q4 2025 [20] Company Strategy and Development Direction - The company aims to enhance its funding profile and profitability through strategic investments in talent, technology, and operational improvements [5][9] - Plans for 2026 include igniting small business sales efforts, improving branch productivity, and exploring new growth-oriented deposit niches [10] - The focus remains on geographic and business line diversification, with ongoing recruitment of experienced commercial bankers [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to enhance funding profiles and profitability, anticipating continued benefits from repricing opportunities [11] - The outlook for 2026 includes expectations for mid-single-digit loan growth and net interest income growth between 11%-13% [14] - Management noted that credit costs are expected to normalize further, with a loan loss provision anticipated around $100 million for 2026 [15] Other Important Information - The company returned $109 million to shareholders through cash dividends and share repurchases in Q4 2025 [17] - The tangible book value increased by nearly 3% during the quarter due to retained earnings and favorable OCI impacts [22] - Regulatory capital ratios remained stable, supporting loan growth while utilizing excess capital for stock repurchases [22] Q&A Session Summary Question: Can you discuss the drivers behind the expected net interest margin expansion? - Management indicated that benefits will be balanced between loan and deposit sides, with expectations of lower customer deposit rates and replacing higher-cost brokered deposits [25] Question: What is the outlook for classified assets and credit costs? - Management expects the trend of declining classified assets to continue into 2026, supported by payoffs and net upgrades [32][33] Question: How aggressive will the company be in recruiting commercial bankers? - Management sees significant opportunities in various geographies and is focused on attracting talent without excessively increasing the expense base [90][92] Question: What is the company's strategy regarding potential M&A? - Management stated that while M&A is an interesting dynamic, the focus remains on organic growth and shareholder value, with any M&A considered only if it aligns with strategic objectives [108][110]

Financial Data and Key Metrics Changes - Valley National Bancorp reported record earnings in Q4 2025, with net income of approximately $195 million or $0.33 per diluted share, an increase from $0.28 in Q3 2025 [3][4] - Adjusted net income was $180 million or $0.31 per diluted share, up from $0.28 on both reported and adjusted basis in the previous quarter [3] - The adjusted return on average assets reached 1.14%, the highest since Q4 2022 [3] - For the full year 2025, net income totaled $598 million, reflecting significant improvement compared to 2024 [3][4] Business Line Data and Key Metrics Changes - Core deposits grew by nearly $4 billion or 9% year-over-year, which was a significant achievement for the company [4] - Total loans increased by about $800 million or 7% on an annualized basis, driven by strong commercial real estate originations and continued momentum in commercial and industrial (C&I) loans [17][18] - The immediate and late-stage pipelines increased by over $1 billion or nearly 70% from the previous year, indicating strong loan growth potential [6] Market Data and Key Metrics Changes - The company anticipates mid-single-digit loan growth in 2026, supported by approximately 10% C&I growth and low single-digit commercial real estate growth [12] - Deposit growth is expected to outpace loan growth throughout the year, allowing for a reduction in the loan-to-deposit ratio [12] Company Strategy and Development Direction - The company is focused on enhancing its funding profile and profitability through strategic investments in talent, technology, and operational improvements [4][8] - There is an emphasis on geographic and business line diversification, with ongoing recruitment of experienced commercial bankers to drive loan and deposit opportunities [5][8] - The strategic priorities for 2026 include igniting small business sales efforts, improving branch productivity, and exploring new growth-oriented deposit niches [9] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the ability to enhance the funding profile over the next twelve months, despite acknowledging that future growth may not be linear [5] - The company expects continued benefits from repricing opportunities and anticipates an additional 15-20 basis points of margin expansion from Q4 2025 to Q4 2026 [10] - Management highlighted the strong momentum in customer growth, funding diversification, loan quality, and overall financial performance [10] Other Important Information - The company returned $109 million to shareholders in the form of cash dividends and share repurchases during the fourth quarter [16] - Core deposit growth was primarily concentrated in non-interest and transactional accounts, with non-interest deposits growing over 15% on an annualized basis [17] - The efficiency ratio is expected to continue declining towards 50% throughout the year, supported by ongoing investments and operational efficiencies [20] Q&A Session Summary Question: Can you discuss the drivers behind the expected net interest margin expansion? - Management indicated that benefits will be balanced between loan and deposit sides, with expectations of lower customer deposit rates and replacing higher-cost brokered deposits with lower-cost core deposits [25][26] Question: How should we think about the net interest margin as the year progresses? - Management anticipates a slight decrease in margin in Q1, followed by growth back to mid-3.30s by Q4, influenced by seasonal headwinds and late December spikes in non-interest bearing balances [27][28] Question: Will adversely classified assets continue to fall in 2026? - Management expects the trend of declining classified assets to continue if the economy remains stable, supported by payoffs and net upgrades [31][33] Question: What is the outlook for loan growth and concentration in commercial real estate? - Management anticipates a modest improvement in the CRE concentration ratio, with loan growth guidance indicating $1 billion from C&I, $1 billion from CRE, and $500 million from consumer and residential [34] Question: How aggressive will the company be in recruiting commercial bankers? - Management sees significant opportunity in recruiting and believes the unique value proposition of the company will attract talent, while also managing expenses carefully [92][94] Question: What is the company's stance on potential M&A activity? - Management indicated that while M&A is an interesting dynamic, the focus remains on organic growth, and any M&A would need to align with strategic objectives without diluting shareholder value [110][112]

4Q25 Earnings Presentation January 29, 2026 Valley 2 | | 4Q25 | 3025 | 4Q24 | 4Q25 | 3Q25 | 4Q24 | | --- | --- | --- | --- | --- | --- | --- | | Net Income ($mm) | $195.4 | $163.4 | $115.7 | $180.2 | $164.1 | $75.7 | | Return on Average Assets Annualized | 1.24% | 1.04% | 0.74% | 1.14% | 1.04% | 0.48% | | Annualized ROATCE 2 | 14.2% | 12.1% | 9.2% | 13.1% | 12.1% | 6.0% | | Efficiency Ratio (Non-GAAP) | -- | -- | -- | 53.5% | 53.4% | 57.2% | | Diluted Earnings Per Share | $0.33 | $0.28 | $0.20 | $0.31 | $0. ...

News Release FOR IMMEDIATE RELEASE Contact: Travis Lan Senior Executive Vice President and Chief Financial Officer 973-686-5007 VALLEY NATIONAL BANCORP REPORTS FOURTH QUARTER 2025 RESULTS New York, NY – January 29, 2026 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the fourth quarter 2025 of $195.4 million, or $0.33 per diluted common share, as compared to the third quarter 2025 net income of $163.4 million, or $0.28 per diluted common s ...

NEW YORK, Jan. 29, 2026 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the fourth quarter 2025 of $195.4 million, or $0.33 per diluted common share, as compared to the third quarter 2025 net income of $163.4 million, or $0.28 per diluted common share, and net income of $115.7 million, or $0.20 per diluted common share, for the fourth quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-G ...

Core Viewpoint - Valley National Bancorp is set to release its fourth quarter 2025 earnings on January 29, 2026, before market opening [1] Group 1: Earnings Release Information - The earnings release will occur before the market opens on January 29, 2026 [1] - CEO Ira Robbins will host a conference call on the same day at 8:30 AM (ET) to discuss the earnings [2] - Interested parties must pre-register to receive the dial-in number and personal PIN for the conference call [2] Group 2: Teleconference Details - The teleconference will be available via live webcast and archived on Valley's website until February 23, 2026 [3] - Investor presentation materials will be accessible prior to the conference call on Valley's website [3] Group 3: Company Overview - Valley National Bank, the principal subsidiary of Valley National Bancorp, has approximately $63 billion in assets [4] - The bank operates in multiple states including New Jersey, New York, Florida, Alabama, California, and Illinois [4] - Valley is focused on providing convenient services and innovative solutions to meet customer needs [4]

Core Insights - Artificial intelligence (AI) is identified as the greatest investment opportunity of the current era, with a strong emphasis on the urgency to invest now [1][13] - The energy demands of AI technologies are significant, with data centers consuming as much energy as small cities, leading to concerns about power grid capacity and rising electricity prices [2][3] Investment Opportunity - A specific company is highlighted as a critical player in the AI energy sector, owning essential energy infrastructure assets that are poised to benefit from the increasing energy demands of AI [3][7] - This company is not a chipmaker or cloud platform but is positioned as a "toll booth" operator in the AI energy boom, collecting fees from energy exports [5][6] Financial Position - The company is noted for being debt-free and holding a substantial cash reserve, which is nearly one-third of its market capitalization, providing a strong financial foundation [8] - It is trading at less than 7 times earnings, making it an attractive investment compared to other firms in the energy and utility sectors [10] Market Trends - The company is well-positioned to capitalize on the onshoring trend driven by tariffs, as well as the surge in U.S. LNG exports under the current administration's energy policies [14][5] - The influx of talent into the AI sector is expected to drive continuous innovation and advancements, further solidifying the importance of investing in AI-related infrastructure [12] Future Outlook - The company is involved in nuclear energy infrastructure, which is seen as a key component of America's future power strategy, particularly in the context of clean and reliable energy [7][14] - The overall sentiment is that investing in AI and its supporting energy infrastructure is not just about financial returns but also about participating in a transformative technological revolution [11][15]

Core Insights - The investment landscape has experienced significant volatility this year, starting with optimism due to the new administration but facing challenges from tariffs and market fluctuations [1][2] Market Overview - Tariffs have been implemented but are less severe than expected, leading to a market rebound driven by Federal Reserve interest rate cuts and AI trends [2] - Bank stocks have remained a focal point amid macroeconomic uncertainties and geopolitical risks [2] Bank Performance and Recommendations - The operating environment for banks is improving, with rising loan demand as interest rates decline [3] - Analysts recommend focusing on fundamentally strong banks such as East West Bancorp (EWBC), Valley National Bancorp (VLY), and F.N.B. Corporation (FNB) for potential investment opportunities [3][5] Analyst Insights - Analysts leverage deep sector insights to evaluate company fundamentals against economic conditions, making their recommendations valuable for identifying strong investment candidates [4] Selected Bank Stocks - East West Bancorp (EWBC) has a market cap of $15.6 billion, with earnings projected to grow 7.4% in 2026 and a year-to-date growth of 13.4% [9][11] - Valley National Bancorp (VLY) has a market cap of $6.6 billion, with earnings expected to increase 28.1% in 2026 and a year-to-date growth of 31.6% [17] - F.N.B. Corporation (FNB) has a market cap of $6.3 billion, with earnings projected to rise 14.2% in 2026 and a year-to-date growth of 18.6% [22] Growth Drivers - EWBC's growth is supported by solid liquidity, loan demand, and a strong capital distribution plan [10] - VLY's growth is driven by robust loan balances, strategic expansions, and margin improvements [16] - FNB's growth is bolstered by stabilizing deposit costs, loan demand, and planned branch expansions [21]

Core Viewpoint - Valley National (VLY) has been upgraded to a Zacks Rank 2 (Buy), indicating a positive trend in earnings estimates which is a significant factor influencing stock prices [1][3]. Earnings Estimates and Stock Price Movement - The Zacks rating system is based solely on changes in a company's earnings picture, with the Zacks Consensus Estimate reflecting EPS estimates from sell-side analysts [1][2]. - A strong correlation exists between changes in earnings estimates and near-term stock price movements, largely due to institutional investors using these estimates to determine fair value [4]. Implications of the Upgrade - The upgrade for Valley National suggests an improvement in the company's underlying business, which could lead to increased buying pressure and a rise in stock price [5][10]. - Analysts have raised their earnings estimates for Valley National, with a 3% increase in the Zacks Consensus Estimate over the past three months, projecting earnings of $0.96 per share for the fiscal year ending December 2025 [8]. Zacks Rank System - The Zacks Rank system classifies stocks into five groups based on earnings estimates, with a proven track record of Zacks Rank 1 stocks generating an average annual return of +25% since 1988 [7]. - Only the top 20% of Zacks-covered stocks receive a "Strong Buy" or "Buy" rating, indicating superior earnings estimate revisions and potential for market-beating returns [9][10].