Core Insights - Valley National Bancorp (VLY) reported better-than-expected quarterly results, with adjusted earnings per share of 28 cents, surpassing the Zacks Consensus Estimate of 26 cents, and a year-over-year increase of 55.6% [1][10] Financial Performance - The third-quarter 2025 net income reached $163.4 million, a 66.9% increase from the previous year, driven by higher net interest income (NII) and non-interest income, despite higher expenses and lower loan balances [2][10] - Total revenues on a fully-taxable-equivalent (FTE) basis were $512.4 million, an 8.4% year-over-year increase, although slightly below the Zacks Consensus Estimate of $513.9 million [3] - NII on an FTE basis was $447.5 million, up 8.7% year over year, with a net interest margin of 3.05%, expanding by 19 basis points [3] - Non-interest income rose 6.9% year over year to $64.9 million, primarily due to increases in various fee income components [4] Expense Management - Non-interest expenses totaled $282 million, a 4.6% increase year over year, while adjusted non-interest expenses rose 3.5% to $272.8 million [4] - The adjusted efficiency ratio improved to 53.37%, down from 56.13% in the prior-year quarter, indicating enhanced profitability [5] Loan and Deposit Trends - As of September 30, 2025, total loans were $49.3 billion, showing a slight decline, while total deposits increased to $51.2 billion, up approximately 1% from the previous quarter [6] Credit Quality - Total non-performing assets increased to $427.3 million, a 40.1% rise year over year, with the allowance for credit losses as a percentage of total loans at 1.21%, up 7 basis points [7] - Provision for credit losses was $19.2 million, down 74.4% year over year [7] Profitability and Capital Ratios - Adjusted annualized return on average assets improved to 1.04%, up from 0.62% in the previous year, while adjusted annualized return on average shareholders' equity rose to 8.62%, up from 5.64% [8] - The tangible common equity to tangible assets ratio was 8.79%, an increase from 7.68% in the corresponding period of 2024, and the Tier 1 risk-based capital ratio improved to 11.72% from 10.29% [9]

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Core Insights - Valley National Bancorp reported strong third-quarter results with net income of approximately $163 million, or $0.28 per diluted share, marking a significant increase from $133 million, or $0.22, in the previous quarter, representing the highest quarterly profitability since 2022 [3] - The company has seen robust core customer deposit growth, with nearly 110,000 new deposit accounts added over the past twelve months, contributing to a nearly 10% growth in core deposits [4] - Valley's balance sheet remains strong, with a disciplined approach to expense control and a meaningful reduction in credit costs, achieving many profitability goals ahead of schedule, including an annualized return on average assets above 1% [3][4] Leadership Changes - Pratchett Smith joined as president of the consumer bank, bringing experience from Santander and Capital One, and will oversee retail, consumer, and small business sectors [1] - Gina Martucci was appointed president of commercial banking, contributing extensive experience from M&T Bank to support the development of Valley's commercial franchise [2] Deposit Growth and Management - The company gathered about $1 billion in core deposits during the quarter, allowing for the payoff of approximately $700 million in maturing brokered deposits, reducing brokered deposits to 11% of the total deposit base, the lowest level since 2022 [10] - The average cost of deposits has decreased by 56 basis points since 2024, with expectations for continued benefits from lower deposit costs into 2026 [4][10] Noninterest Income and Fee Growth - Noninterest income has grown at an annual rate of 15% since 2017, significantly outpacing publicly traded peers, with treasury management and tax credit advisory initiatives contributing approximately $3 million in incremental revenue during the third quarter [5] - The treasury management platform has generated nearly $16 million in incremental deposit service charge revenue on an annualized basis since 2024 [5] Credit Performance - Valley experienced a significant reduction in net charge-offs and provisions during the third quarter, with expectations to sustain these levels into the fourth quarter [6] - Cumulative commercial real estate (CRE) charge-off rates have remained low, with aggregate losses limited to just 57 basis points of average CRE loans over the last seven quarters [6][15] Strategic Focus and Future Growth - The company is targeting growth in traditional small business and middle market opportunities, particularly in healthcare C&I and capital call lines, with no losses recorded on Valley-originated loans in these areas [7] - Valley aims to enhance its retail banking presence and has identified opportunities for organic growth in small business and retail deposits [38][39] Financial Outlook - Valley anticipates net interest income growth of another 3% sequentially in the fourth quarter, supported by fixed-rate asset repricing and a favorable interest rate backdrop [13] - The company is targeting a return on tangible common equity (ROTCE) of 15% by late 2027 or early 2028, with expectations for mid-single-digit loan growth and continued margin expansion [64]

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 deposit growth was approximately $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 3% net interest income growth for the second consecutive quarter, with net interest margin (NIM) improving for the sixth consecutive quarter [14] Market Data and Key Metrics Changes - The company has seen a significant reduction in net charge-offs and provisions during the third quarter, with expectations to sustain these levels in the fourth quarter [9][16] - The competitive environment for new deposit relationships remains strong, with the company originating $1.4 billion of new deposits at an average rate of 2.9% [20] 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 Florida market and targeting healthcare C&I and capital call lines for growth opportunities [10][29] - The company aims to achieve a low single-digit expense growth rate while investing in revenue-generating talent [50] 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 company anticipates continued NIM expansion and expects to achieve a normalized NIM of 3.20% to 3.40% in the future [64] - Management remains confident in achieving a 15% return on equity target by late 2027 or early 2028 [77] Other Important Information - The company repurchased approximately $12 million worth of common shares during the quarter [17] - Non-accrual loans increased primarily due to a construction loan migration, but management does not anticipate any losses from this [16][35] Q&A Session Summary Question: Could you speak to the competitive backdrop regarding the decline in C&I loans? - Management noted that while there was a decline in C&I loans, the competitive environment for new deposit relationships remains strong, with opportunities for repricing the backbook [20][22] Question: How are you thinking about the buyback opportunity against conserving capital for longer-term growth? - Management indicated a focus on maintaining a CET1 target of around 11% while considering buybacks as a source of capital deployment going forward [24] Question: What areas are you most focused on for growth? - Management highlighted the Florida franchise as a key area for growth, along with opportunities in upmarket C&I and small business banking [44][46] Question: Can you provide more color on the increase in non-accrual loans? - Management explained that the increase was primarily driven by a land loan, with 50% of non-accrual loans current on payment, indicating a positive outlook for resolution [35][36] Question: What is the outlook for NIM and loan growth? - Management expects NIM to normalize between 3.20% and 3.40%, with loan growth projected in the mid-single-digit range for 2026 [64][70]

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]

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 last quarter, marking the highest quarterly profitability since 2022 [4] - The annualized return on average assets is above 1%, achieving many profitability goals ahead of schedule [5] Business Line Data and Key Metrics Changes - Core deposits grew by nearly 10% over the past year, with approximately 110,000 new deposit accounts added [7] - Non-interest income has grown at an annual rate of 15% since 2017, three times faster than publicly traded peers [8] - Average loans increased by 0.5% during the quarter, with new origination yields stable at around 6.8% [15] Market Data and Key Metrics Changes - The company gathered about $1 billion of core deposits during the quarter, allowing for the payoff of approximately $700 million of maturing brokered deposits [13] - Brokered deposits now comprise 11% of the total deposit base, the lowest level since 2022 [13] Company Strategy and Development Direction - The company is focused on enhancing its commercial and consumer banking sectors, with new leaders introduced to accelerate growth [5][6] - There is a strategic emphasis on targeted investments in products, technology, and talent, particularly in commercial and specialty lines [7] - The company aims to diversify its balance sheet and reduce its commercial real estate concentration, targeting a ratio of 300% by 2026 [48] Management's Comments on Operating Environment and Future Outlook - Management expressed optimism about future prospects, citing strong customer growth, talent acquisition, and profitability [11] - The company anticipates continued stability in credit performance and expects to sustain low charge-off levels [19] - There is confidence in achieving a 15% return on tangible equity by late 2027 or early 2028, with a focus on net income expansion and margin improvement [99] Other Important Information - The company has repurchased $12 million of capital to buy back 1.3 million common shares during the quarter [20] - Non-accrual loans increased primarily due to a construction loan migration, but management does not anticipate any losses from this [44] Q&A Session Summary Question: Can you discuss the competitive backdrop regarding the decline in C&I loans? - Management noted that while there is a competitive environment for new deposit relationships, they have successfully managed deposit pricing and expect costs to decrease [24][26] Question: What are the growth expectations for CRE and C&I? - Management indicated a target of low single-digit growth for CRE and a strong pipeline for C&I, with a focus on traditional small business and middle market opportunities [48][90] Question: How do you view the potential for M&A? - The company remains focused on organic growth but is open to considering M&A if it aligns with shareholder interests [77][110] Question: What is the outlook for non-accrual loans? - Management expects stability in non-accrual loans, with positive trends in the real estate market supporting this outlook [125] Question: How do you plan to manage expenses going into 2026? - The company anticipates low single-digit expense growth while investing in revenue-generating talent [64][66]

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Financial Performance - GAAP净收入为1.634亿美元，去年同期为9790万美元[3] - Non-GAAP调整后净收入为1.641亿美元，去年同期为9680万美元[3] - 年化平均资产回报率（ROAA）为1.04%，去年同期为0.63%[3] - 非GAAP效率比为53.4%，去年同期为56.1%[3] - 稀释后每股收益为0.28美元，去年同期为0.18美元[3] - 税前拨备净收入（PPNR）为2.291亿美元，去年同期为2.017亿美元[3] - PPNR占平均资产的年化比例为1.45%，去年同期为1.30%[3] Balance Sheet and Credit Quality - 截至2025年9月30日，预计全年贷款总额增长约2%，第四季度预计增长约1%[17] - 预计全年净利息收入增长约8%，第四季度预计增长约3%[17] - 不良贷款净额（NCOs）预期收紧，全年预计为1.05亿至1.15亿美元，第四季度预计为1000万至2000万美元[17] - 贷款损失准备金全年预计为1.3亿至1.4亿美元，第四季度预计为1000万至2000万美元[17] Strategic Initiatives and Growth - 2017年以来，股息累计增长111%，有形账面价值（TBV）增长98%[20] - 存款账户数量显著增加，从2017年12月31日的14.1万个增加到2025年9月30日的44万个，增长了117%[22] - 商业贷款地域多元化，东北地区占比从2017年12月31日的50%增长到2025年9月30日的79%[21, 55] - 核心存款持续增长和多元化，总存款从180亿美元增长到510亿美元[41] - 商业贷款地域多元化，东北地区占比从2017年的50%增长到2025年9月30日的79%[55] Loan Portfolio - 截至2025年9月30日，贷款总额为494亿美元[43] - 商业地产（CRE）贷款占比较高，其中多户住宅CRE占比25%，非自用CRE占比24%，自用CRE占比12%[45] - 消费贷款占比8%[45]

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]