[PART I FINANCIAL INFORMATION](index=3&type=section&id=PART%20I%20FINANCIAL%20INFORMATION) This section covers the unaudited financial statements, management's discussion, market risk, and controls for Q1 2025 [Financial Statements (Unaudited)](index=3&type=section&id=Item%201.%20Financial%20Statements%20%28Unaudited%29) This section provides Valley National Bancorp's unaudited consolidated financial statements and notes for the first quarter of 2025 [Consolidated Statements of Financial Condition](index=3&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) Total assets for Valley National Bancorp were $61.9 billion as of March 31, 2025, a slight decrease from year-end 2024 Consolidated Balance Sheet Highlights (in thousands) | Account | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | **Total Assets** | **$61,865,655** | **$62,491,691** | | Net Loans | $48,078,928 | $48,240,861 | | Total Investment Securities | $7,278,457 | $6,972,810 | | Goodwill | $1,868,936 | $1,868,936 | | **Total Liabilities** | **$54,365,758** | **$55,056,564** | | Total Deposits | $49,965,844 | $50,075,857 | | Long-term borrowings | $2,904,567 | $3,174,155 | | **Total Shareholders' Equity** | **$7,499,897** | **$7,435,127** | [Consolidated Statements of Income](index=4&type=section&id=Consolidated%20Statements%20of%20Income) Net income for Q1 2025 increased to $106.1 million from $96.3 million year-over-year, driven by higher net interest income Quarterly Income Statement Highlights (in thousands, except per share data) | Metric | Q1 2025 | Q1 2024 | | :--- | :--- | :--- | | Net Interest Income | $420,105 | $393,548 | | Provision for credit losses for loans | $62,675 | $45,274 | | Total non-interest income | $58,294 | $61,415 | | Total non-interest expense | $276,618 | $280,310 | | **Net Income** | **$106,058** | **$96,280** | | Net Income Available to Common Shareholders | $99,103 | $92,161 | | **Diluted EPS** | **$0.18** | **$0.18** | [Consolidated Statements of Cash Flows](index=7&type=section&id=Consolidated%20Statements%20of%20Cash%20Flows) Net cash outflow for Q1 2025 was $666.4 million, a significant shift from a prior-year inflow, driven by financing activities Cash Flow Summary for the Three Months Ended March 31 (in thousands) | Activity | 2025 | 2024 | | :--- | :--- | :--- | | Net cash (used in) provided by operating activities | $(17,122) | $99,511 | | Net cash (used in) provided by investing activities | $(175,310) | $91,985 | | Net cash used in financing activities | $(473,996) | $(141,888) | | **Net change in cash and cash equivalents** | **$(666,428)** | **$49,608** | [Notes to Consolidated Financial Statements](index=9&type=section&id=Notes%20to%20Consolidated%20Financial%20Statements) The notes provide detailed explanations of accounting policies and financial data presented in the consolidated statements - The majority of assets and liabilities measured at fair value on a recurring basis, such as available-for-sale debt securities and derivatives, are valued using **Level 2 inputs** (observable but not quoted prices)[36](index=36&type=chunk)[37](index=37&type=chunk) - The loan portfolio is primarily composed of **Commercial Real Estate (59.8%)** and **Commercial & Industrial (20.9%)** loans as of March 31, 2025[77](index=77&type=chunk)[267](index=267&type=chunk) - The allowance for credit losses for loans increased to **$594.1 million (1.22% of total loans)** at March 31, 2025, from $573.3 million (1.17% of total loans) at year-end 2024[102](index=102&type=chunk)[298](index=298&type=chunk) - Goodwill remained unchanged at **$1.87 billion**, with the largest portion (**$1.44 billion**) allocated to the Commercial Banking reporting unit[107](index=107&type=chunk) [Management's Discussion and Analysis (MD&A)](index=46&type=section&id=Item%202.%20Management%27s%20Discussion%20and%20Analysis%20of%20Financial%20Condition%20and%20Results%20of%20Operations) Management discusses Q1 2025 financial condition and results, focusing on balance sheet strengthening, capital ratios, and credit quality [Executive Summary and Financial Condition](index=51&type=section&id=Executive%20Summary%20and%20Financial%20Condition) In Q1 2025, Valley strengthened its balance sheet by reducing CRE loan concentration and improving capital ratios - The company is proactively reducing its **CRE loan concentration**, which declined from **362% to 353%** of total risk-based capital during the quarter[166](index=166&type=chunk) - The allowance for credit losses (ACL) for loans is expected to migrate towards approximately **1.25% of total loans** by year-end 2025, up from 1.22% at quarter-end[166](index=166&type=chunk) - Accruing past due loans decreased significantly to **$51.7 million (0.11% of total loans)** from $99.2 million (0.20% of total loans) at the end of 2024[166](index=166&type=chunk) Q1 2025 vs Q1 2024 Performance Drivers | Driver | Impact on Net Income | Details | | :--- | :--- | :--- | | Net Interest Income | +$26.6M | Lower interest rates on deposits and income from security purchases | | Non-Interest Expense | +$3.7M | Decreases in tech and FDIC fees, offset by higher tax credit amortization | | Provision for Credit Losses | -$17.5M | Higher reserves for CRE and C&I loans | | Non-Interest Income | -$3.1M | Lower gains on asset sales and wealth management fees | [Net Interest Income and Margin](index=61&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased to $421.4 million for Q1 2025, with net interest margin expanding to 2.96%, driven by lower deposit costs Net Interest Margin (Tax Equivalent) | Period | Net Interest Margin | | :--- | :--- | | Q1 2025 | 2.96% | | Q4 2024 | 2.92% | | Q1 2024 | 2.79% | - The cost of total average deposits decreased to **2.65%** in Q1 2025, down from 2.94% in Q4 2024, which was a key driver of NIM expansion[195](index=195&type=chunk) - Full-year 2025 net interest income growth is now expected to be at the **low end of the 9% to 12% range**, revised due to lower anticipated loan growth and spread compression[196](index=196&type=chunk) [Loan Portfolio and Credit Quality](index=77&type=section&id=Loan%20Portfolio%20and%20Credit%20Quality) Total loans decreased slightly to $48.7 billion in Q1 2025, reflecting portfolio de-risking and improved credit quality, with NPAs decreasing Loan Portfolio Composition (in billions) | Loan Category | March 31, 2025 | December 31, 2024 | | :--- | :--- | :--- | | Commercial and industrial | $10.2 | $9.9 | | Commercial real estate | $29.1 | $29.6 | | Residential mortgage | $5.6 | $5.6 | | Consumer | $3.8 | $3.6 | | **Total Loans** | **$48.7** | **$48.8** | - Non-performing assets (NPAs) decreased to **$356.2 million (0.73% of assets)** from $373.3 million (0.76% of assets) at year-end 2024[278](index=278&type=chunk)[280](index=280&type=chunk) - Net loan charge-offs were **$41.9 million (0.34% of average loans, annualized)** in Q1 2025, down from $98.3 million in Q4 2024 but up from $23.6 million in Q1 2024[295](index=295&type=chunk)[296](index=296&type=chunk) - The allowance for credit losses for loans as a percentage of total loans increased to **1.22%** at March 31, 2025, from 1.17% at December 31, 2024[298](index=298&type=chunk) [Capital Adequacy](index=85&type=section&id=Capital%20Adequacy) Shareholders' equity increased by $64.8 million in Q1 2025 to $7.5 billion, driven by net income, maintaining strong regulatory capital ratios Regulatory Capital Ratios (Valley National Bancorp) | Ratio | March 31, 2025 | December 31, 2024 | Minimum Requirement* | | :--- | :--- | :--- | :--- | | Common Equity Tier 1 | 10.80% | 10.82% | 7.00% | | Tier 1 Risk-based Capital | 11.53% | 11.55% | 8.50% | | Total Risk-based Capital | 13.91% | 13.87% | 10.50% | | Tier 1 Leverage | 9.41% | 9.16% | 4.00% | - Shareholders' equity increased by **$64.8 million** in Q1 2025, primarily due to net income of **$106.1 million** and other comprehensive income of **$27.1 million**, offset by dividends and share repurchases[299](index=299&type=chunk)[300](index=300&type=chunk) - The company declared a cash dividend of **$0.11 per common share** for Q1 2025, consistent with the prior year's quarter[306](index=306&type=chunk) [Quantitative and Qualitative Disclosures About Market Risk](index=81&type=section&id=Item%203.%20Quantitative%20and%20Qualitative%20Disclosures%20About%20Market%20Risk) The company's primary market risk is interest rate risk, with simulations indicating net interest income sensitivity to rate changes Net Interest Income Sensitivity Analysis (as of March 31, 2025) | Change in Interest Rates (bps) | Estimated % Change in NII | | :--- | :--- | | +300 | 7.23% | | +200 | 4.90% | | +100 | 2.46% | | -100 | (2.54)% | | -200 | (5.21)% | | -300 | (7.60)% | [Controls and Procedures](index=81&type=section&id=Item%204.%20Controls%20and%20Procedures) Management concluded disclosure controls and procedures were effective as of March 31, 2025, with no material changes in internal control over financial reporting - The CEO and CFO concluded that the company's disclosure controls and procedures were **effective** as of the end of the reporting period[310](index=310&type=chunk) - No changes in internal control over financial reporting occurred in Q1 2025 that have materially affected, or are reasonably likely to materially affect, these controls[311](index=311&type=chunk) [PART II OTHER INFORMATION](index=82&type=section&id=PART%20II%20OTHER%20INFORMATION) This section includes information on legal proceedings, risk factors, and issuer purchases of equity securities [Legal Proceedings](index=82&type=section&id=Item%201.%20Legal%20Proceedings) The company is involved in various legal actions, which management believes will not materially adversely affect its financial condition or results - Management does not expect current legal proceedings to have a **material adverse effect** on the company's financial condition or results[314](index=314&type=chunk) [Risk Factors](index=82&type=section&id=Item%201A.%20Risk%20Factors) There have been no material changes to the risk factors previously disclosed in the company's Annual Report on Form 10-K - No material changes to risk factors were reported for the quarter[315](index=315&type=chunk) [Issuer Purchases of Equity Securities](index=82&type=section&id=Item%202.%20Unregistered%20Sales%20of%20Equity%20Securities%2C%20Use%20of%20Proceeds%20and%20Issuer%20Purchases%20of%20Equity%20Securities) During Q1 2025, Valley repurchased 939,266 shares at an average price of $9.79, with 24.75 million shares remaining under the repurchase program Q1 2025 Share Repurchases | Month | Total Shares Purchased | Average Price Paid | Shares Purchased Under Plan | | :--- | :--- | :--- | :--- | | January 2025 | 1,527 | $8.93 | — | | February 2025 | 686,318 | $10.21 | — | | March 2025 | 251,421 | $8.65 | 250,000 | | **Total** | **939,266** | **$9.79** | **250,000** | - As of March 31, 2025, **24.75 million shares** may yet be purchased under the current stock repurchase program, which was announced in February 2024 and is effective until April 2026[316](index=316&type=chunk)[318](index=318&type=chunk)

Core Viewpoint - Valley National Bancorp's shares have increased by 10% compared to a year ago, indicating recovery from previous concerns regarding the credit quality of commercial real estate in the New York area. However, the stock has declined by over 15% from its recent highs [1]. Group 1 - Valley National Bancorp's stock performance reflects a recovery trend after addressing credit quality fears in the commercial real estate sector [1]. - The stock's current valuation shows a significant drop of more than 15% from its peak, suggesting potential volatility in the market [1].

Valley National Bancorp’s (VLY) first-quarter 2025 adjusted earnings per share of 18 cents missed the Zacks Consensus Estimate by a penny. Also, the bottom line declined 5.3% on a year-over-year basis.A rise in provisions, lower non-interest income, higher adjusted expenses and a sequential decline in loans and deposit balances hurt the results. Nonetheless, the company’s efforts to bring down funding costs drove net interest income (NII), which acted as a tailwind. This seems to have cheered investors as s ...

Financial Data and Key Metrics Changes - In Q1 2025, net income was approximately $106 million or $0.18 per diluted share, down from $116 million and $0.20 per diluted share in the previous quarter [6] - Adjusted earnings showed sequential growth due to revenue stability, lower operating expenses, and a smaller loan loss provision [7] - The average cost of deposits declined by 29 basis points, contributing to net interest margin improvement [19][24] Business Line Data and Key Metrics Changes - Commercial and industrial (C&I) loans achieved a 9% annualized growth, while regulatory commercial real estate (CRE) loans declined by $350 million [21] - Adjusted non-interest expenses were $267 million, 3% lower than the previous quarter, driven by lower technology and consulting expenses [26] - Non-accrual loans decreased modestly, and the allowance coverage ratio increased to 1.22%, the highest level in five years [28][30] Market Data and Key Metrics Changes - Core customer deposits increased by $600 million, allowing for the repayment of $700 million in higher-cost brokered balances [17] - Non-interest deposit balances reached the highest level since September 2023, indicating strong deposit growth [18] - The company anticipates loan growth and net interest income to be at the lower end of the expected range for 2025 [12] Company Strategy and Development Direction - The company remains focused on organic customer acquisition in both commercial and consumer areas, aiming for long-term revenue opportunities [14] - The strategic evolution into new business lines and geographies is expected to create previously unavailable opportunities [15] - The company is optimistic about navigating economic uncertainties while executing strategic imperatives [15] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has lowered economic growth estimates, while inflation expectations are rising [7] - Despite increased competition leading to spread compression, the company believes there are sufficient opportunities to grow profitability [11] - Management expects a roughly 50% decline in charges and provisions compared to 2024, indicating confidence in credit quality [13] Other Important Information - The tangible book value has doubled over the last seven years, with growth outpacing peers [13] - The company is well-positioned from a capital perspective, with stable regulatory capital ratios [31] Q&A Session Summary Question: Update on commercial loan originations - New originations were slightly lower than the 7% level, averaging about 6.80% due to lower benchmark rates and spread compression [36] Question: Long-term target for CRE concentration - Management is comfortable with current CRE concentration levels and anticipates stabilization as originations pick up [40] Question: Updated expense guidance - The company has been conservative with expense guidance to allow flexibility for revenue-generating opportunities [45] Question: Deposit growth expectations - Strong core customer deposit growth is anticipated to continue, with a focus on paying off brokered deposits [49] Question: Insights on CRE portfolio insulation - The CRE portfolio is considered insulated from tariff disruptions, with commercial clients being more sensitive to interest rates [56] Question: Spread compression expectations - The guide expects some spread compression due to increased competition, particularly from banks [60] Question: Loan growth expectations for Q2 - The second quarter is expected to be a loan growth quarter, with an uptick in the pipeline for both CRE and C&I loans [70] Question: Update on criticized assets - There was a slight increase in criticized assets, but overall performance metrics remain strong [108] Question: Appetite for additional CRE loan sales - The company is comfortable with the current portfolio and does not anticipate additional loan sales at this time [98]

1Q25 Earnings Presentation 1 Please refer to the Non-GAAP Disclosure Reconciliation in Appendix. ² Pre-provision net revenue ("PPNR") equals net interest income plus total noome plus total noome les total non-interest expense. 3 2 1Q 2025 Financial Highlights | | | GAAP Reported | | | Non-GAAP Adjusted 1 | | | --- | --- | --- | --- | --- | --- | --- | | | 1Q25 | 4Q24 | 1Q24 | 1Q25 | 4Q24 | 1Q24 | | Net Income ($mm) | $106.1 | $115.7 | $96.3 | $106.1 | $75.7 | $99.4 | | Return on Average Assets Annualized | ...

Financial Data and Key Metrics Changes - For Q1 2025, net income was approximately $106 million or $0.18 per diluted share, down from $116 million and $0.20 per diluted share in the previous quarter [5] - Adjusted earnings showed sequential growth due to revenue stability, lower operating expenses, and a smaller loan loss provision [5][6] - The average cost of deposits declined by 29 basis points, contributing to net interest margin improvement [12][14] Business Line Data and Key Metrics Changes - Commercial and industrial (C and I) loan growth was 9% annualized, with expectations for continued growth in this area [13][14] - The commercial real estate (CRE) concentration ratio decreased to 353% from 362% in the previous quarter, with expectations for stabilization in the CRE portfolio [13][19] - Adjusted non-interest expenses were $267 million, 3% lower than the previous quarter, driven by lower technology and consulting expenses [17] Market Data and Key Metrics Changes - Core customer deposits increased by $600 million, allowing for the repayment of $700 million in higher-cost brokered balances [11] - Non-interest deposit balances reached their highest level since September 2023, indicating strong deposit growth [11] - The company anticipates loan growth and net interest income to be at the lower end of their expected range for 2025 [7][15] Company Strategy and Development Direction - The company remains focused on organic customer acquisition in both commercial and consumer areas, aiming for long-term revenue opportunities [9] - The strategic imperative includes optimizing operations and expanding into new business lines and geographies [9][10] - The company is well-positioned to navigate economic uncertainties and execute on its strategic goals [10] Management's Comments on Operating Environment and Future Outlook - Management noted that tariff uncertainty has lowered economic growth estimates, but the company feels well-positioned to improve results despite this backdrop [6] - There is optimism regarding continued C and I growth, with a strong foundation laid over the past few years [27] - The company expects net interest margin to increase throughout the year as funding costs decline [15][69] Other Important Information - The tangible book value has doubled over the last seven years, indicating strong long-term value creation for stakeholders [8] - The allowance coverage ratio increased to 1.22%, the highest level in the past five years, reflecting a stable credit environment [19][20] Q&A Session Summary Question: Update on commercial loan originations - New originations were slightly lower than the 7% level, averaging around 6.8% due to lower benchmark rates and spread compression [24] Question: Long-term target for CRE concentration levels - Management is comfortable with current levels and anticipates stabilization as CRE originations pick up [28] Question: Expense guidance and expectations - The company has been conservative with expense guidance to allow for flexibility in revenue-generating opportunities [31] Question: Deposit growth expectations - Strong core customer deposit growth is expected to continue, with a focus on paying off brokered deposits [35] Question: Impact of tariffs on CRE portfolio - The CRE portfolio is insulated from tariff disruptions, with interest rates and labor being the primary factors affecting development [40] Question: Spread compression and competition - Increased competition is noted, particularly from banks, leading to expectations of further spread compression [43][45] Question: Loan growth expectations for Q2 - The second quarter is expected to be a loan growth quarter, with a strong pipeline in both C and I and CRE [48][49] Question: Update on criticized assets - Criticized assets have seen repayments, and the overall portfolio performance remains strong despite some elevated levels [78][80]

Valley National shares have lost about 4.8% since the beginning of the year versus the S&P 500's decline of -8.6%. What's Next for Valley National? While Valley National has outperformed the market so far this year, the question that comes to investors' minds is: what's next for the stock? Valley National (VLY) came out with quarterly earnings of $0.18 per share, missing the Zacks Consensus Estimate of $0.19 per share. This compares to earnings of $0.19 per share a year ago. These figures are adjusted for n ...

Exhibit 99.1 News Release FOR IMMEDIATE RELEASE Contact: Travis Lan Mr. Robbins continued, "I am generally pleased with the quarter's results from a credit perspective. The provision for loan losses for the first quarter was at the lowest point in the last four quarters, and we anticipate further improvement throughout the remainder of the year. Non-accrual loans and early stage delinquencies also improved sequentially, and we believe our allowance coverage to total loans is at a comfortable level as of Mar ...

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2025 of $106.1 million, or $0.18 per diluted common share, as compared to the fourth quarter 2024 net income of $115.7 million, or $0.20 per diluted common share, and net income of $96.3 million, or $0.18 per diluted common share, for the first quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GA ...

Core Viewpoint - Valley National (VLY) is expected to report quarterly earnings of $0.19 per share, unchanged from the same period last year, with revenues projected at $485.92 million, reflecting a year-over-year increase of 6.8% [1] Earnings Estimates - The consensus EPS estimate for the quarter has been revised upward by 1.8% over the past 30 days, indicating a reassessment by analysts [2] - Revisions to earnings projections are crucial for predicting investor behavior and are linked to short-term stock price performance [3] Key Metrics Forecast - Analysts forecast an 'Efficiency Ratio' of 58.2%, down from 59.1% in the same quarter last year [5] - The estimate for 'Average Balance - Total interest earning assets' is $58.16 billion, compared to $56.62 billion a year ago [5] - 'Net interest income - FTE' is estimated at $425.54 million, up from $394.85 million in the previous year [5] Non-Interest Income Projections - 'Total non-interest Income' is expected to be $60.38 million, down from $61.42 million in the same quarter last year [6] - 'Bank owned life insurance' is projected at $3.55 million, compared to $3.24 million a year ago [6] Additional Revenue Streams - 'Wealth management and trust fees' are forecasted at $17.48 million, down from $17.93 million in the same quarter last year [7] - 'Service charges on deposit accounts' are expected to be $12.98 million, up from $11.25 million in the previous year [7] - 'Fees from loan servicing' are projected at $3.15 million, slightly down from $3.19 million a year ago [8] Stock Performance - Valley National shares have decreased by 11.1% over the past month, compared to an 8.9% decline in the Zacks S&P 500 composite [8]