Leadership Appointments - Valley National Bancorp has appointed Gino Martocci as Senior Executive Vice President and President of Commercial Banking, and Travis Lan as Senior Executive Vice President and Chief Financial Officer (CFO) [1][6] - These appointments are part of the bank's strategy to strengthen its leadership team and execute its strategic priorities [1] Gino Martocci's Background - Gino Martocci has over 30 years of experience in commercial banking and has a proven track record of driving profitable growth [2] - Prior to joining Valley, he served as Head of Commercial and Commercial Real Estate Banking for M&T Bank [2] - Martocci will oversee Valley's enterprise-wide commercial banking operations, focusing on client relationship management and strategic initiatives [3] Travis Lan's Background - Travis Lan has been promoted to CFO after joining Valley in 2020, where he contributed to strategic growth and balance sheet transformation [6] - He has experience in M&A, investor relations, capital raising, and has previously worked in investment banking and equity research [6][7] - As CFO, Lan will oversee financial reporting, accounting, taxation, and corporate treasury [7] Transition and Future Outlook - Joe Chillura, the current President of Commercial Banking, will depart the bank on June 30, 2025, and will assist in the transition to Martocci's leadership [4][5] - The CEO, Ira Robbins, expressed confidence in Martocci's ability to strengthen and grow the commercial banking business [4] - Lan expressed eagerness to work with the senior leadership team to achieve strategic initiatives and create value for stakeholders [9] Company Overview - Valley National Bank, a regional bank with over $62 billion in assets, operates across several states including New Jersey, New York, Florida, Alabama, California, and Illinois [9] - The bank is committed to providing convenient services and supporting community growth [9]

Core Insights - Valley National Bancorp has appointed Gino Martocci as Senior Executive Vice President and President of Commercial Banking, and Travis Lan as Senior Executive Vice President and Chief Financial Officer (CFO) to strengthen its leadership team and execute strategic priorities [1][4][6]. Group 1: Leadership Appointments - Gino Martocci brings over 30 years of commercial banking experience and a proven track record of driving profitable growth, previously serving as Head of Commercial and Commercial Real Estate Banking for M&T Bank [2][3]. - In his new role, Martocci will oversee enterprise-wide commercial banking operations, focusing on client relationship management and strategic initiatives to expand market presence [3][4]. - Travis Lan has been promoted to CFO after contributing to the bank's strategic growth and balance sheet transformation since joining in 2020, with responsibilities including M&A, investor relations, and financial reporting [6][7]. Group 2: Transition and Future Plans - Joe Chillura, the current President of Commercial Banking, will depart on June 30, 2025, but will support the transition to Martocci's leadership [4][5]. - Both Martocci and Lan expressed enthusiasm for their new roles, emphasizing the importance of teamwork and commitment to the bank's long-term vision [4][8][9]. Group 3: Company Overview - Valley National Bank, a regional bank with over $62 billion in assets, operates across multiple states including New Jersey, New York, Florida, Alabama, California, and Illinois, focusing on providing convenient services and supporting community growth [9].

Financial Overview - As of December 31, 2024, Valley National Bancorp had consolidated total assets of $62.5 billion, total net loans of $48.2 billion, total deposits of $50.1 billion, and total shareholders' equity of $7.4 billion[17]. - Valley ranked 10th in competitive ranking and market share based on deposits reported by 150 FDIC-insured financial institutions in the New York, Northern New Jersey, and Long Island deposit markets as of June 30, 2024[23]. - The total loan portfolio as of December 31, 2024, was $48.8 billion, with commercial and industrial loans making up a significant portion[43]. Loan Portfolio Composition - Commercial and industrial loans totaled approximately $9.9 billion, representing 20.4% of the total loan portfolio at December 31, 2024[29]. - Commercial real estate and construction loans totaled $29.6 billion, representing 60.7% of the total loan portfolio at December 31, 2024[31]. - Residential mortgage loans totaled $5.6 billion, representing 11.5% of the total loan portfolio as of December 31, 2024[37]. - Other consumer loans amounted to $3.6 billion, accounting for 7.4% of the total loan portfolio as of December 31, 2024[37]. - At December 31, 2024, approximately 73% of Valley's gross loans, totaling $48.8 billion, consisted of commercial real estate, residential mortgage, and home equity loans[41]. Credit Risk Management - The company adheres to a credit policy designed to minimize credit risk while maximizing income, with centralized credit authority for significant portfolio percentages[49]. - The allowance for credit losses (ACL) is based on expected credit losses under the CECL methodology, which includes a collective reserve for estimated lifetime expected credit losses and an individual reserve for collateral dependent loans[61]. - Less than 1.0% of commercial loans originated by third parties were past due 30 days or more, representing 1.1% of total commercial loan portfolio delinquencies[65]. - 3.4% of residential mortgage loans originated by third parties were past due 30 days or more, which represented 25.8% of total residential mortgage portfolio delinquencies[65]. Employee and Operational Insights - Valley employed 3,732 full and part-time employees as of December 31, 2024, with a voluntary turnover rate of 13.5%[66]. - In 2024, Valley hired 669 employees, and the average tenure of employees was 7.1 years[66]. - Valley operates 229 branch offices and has an extensive ATM network to provide convenient access to its services[26]. Regulatory Compliance and Challenges - Valley is required to maintain a Common Equity Tier 1 (CET1) capital ratio of at least 7.0%, Tier 1 capital ratio of at least 8.5%, and total capital ratio of at least 10.5% under Basel III regulations[89]. - Valley's capital ratios were impacted by a phased-in deferral amount of $47.3 million, which reduced risk-based capital ratios by approximately 9 basis points as of December 31, 2024[93]. - Valley is subject to extensive regulation and supervision, with potential changes in regulatory policies expected under the new U.S. presidential administration, which could materially affect its business[81]. - The Bank's dividend payments are subject to regulatory limitations, allowing dividends only up to the sum of net profits for the year and retained net profits from the previous two years[104]. Strategic Initiatives - The company aims to reduce its commercial real estate loan concentration ratio from 362% at December 31, 2024, to below 350% by December 31, 2025[33]. - The company executed a strategy to reduce investor commercial real estate and construction loans while focusing on commercial and industrial loan growth[41]. - The company continually reviews pricing, products, locations, and acquisition prospects to maintain and enhance its competitive position[27]. Impact of External Factors - The Federal Reserve proposed a reduction in the maximum permissible interchange fee for large debit card issuers, which could adversely impact Valley's revenue if adopted[99]. - Valley's compliance costs are significant and expected to increase due to new governmental regulations and heightened supervision, potentially placing it at a competitive disadvantage compared to less regulated competitors[80]. - The Dodd-Frank Act's Durbin Amendment imposes a maximum interchange fee of 21 cents plus 5 basis points for debit transactions, affecting Valley due to its asset size exceeding $10 billion[98]. Consumer Protection and Privacy Regulations - The final rule from the CFPB regarding overdraft credit requires compliance with consumer protections, effective October 1, 2025[117]. - The California Consumer Privacy Act (CCPA) grants California residents expanded privacy rights, including the right to access and delete personal information[131]. - Non-compliance with evolving data privacy and cybersecurity laws could lead to investigations and enforcement actions against the company[136].

Core Viewpoint - The article emphasizes the importance of contrarian investment strategies based on macroeconomic views and specific stock turnaround stories to achieve significant returns with a favorable risk/reward profile [1]. Group 1 - The author has over fifteen years of experience in making contrarian bets [1]. - The focus is on identifying potential investment opportunities through macro views and stock-specific analysis [1]. - The article invites readers to request coverage on specific stocks or ask questions related to investment [1]. Group 2 - There is a clear disclaimer regarding the lack of current stock positions or plans to initiate any positions within the next 72 hours [2]. - The article does not provide specific investment recommendations or advice tailored to individual investors [2]. - The views expressed may not represent the overall opinions of the platform, as the authors are independent and may not be licensed professionals [2].

Core Viewpoint - Valley National Bancorp's fourth-quarter 2024 adjusted earnings per share (EPS) of 13 cents missed the Zacks Consensus Estimate of 15 cents, reflecting a significant year-over-year decline of 40.9% [1] Financial Performance - The company's total revenues for the fourth quarter were $474.2 million, representing a year-over-year increase of 5.4% and exceeding the Zacks Consensus Estimate of $469.5 million [4] - For the full year 2024, total revenues decreased by 2% to $1.85 billion, but still met the consensus estimate [4] - Net interest income (NII) for the fourth quarter was $424.3 million, up 6.4%, with a net interest margin of 2.92%, an increase of 10 basis points [4] Income and Expenses - Non-interest income fell by 2.8% to $51.2 million due to lower net gains on securities transactions and net losses on sales of loans [5] - Non-interest expenses decreased by 18.2% to $278.6 million, while adjusted non-interest expenses rose by 1.2% to $275.8 million [5] - The adjusted efficiency ratio improved to 57.21%, down from 60.70% in the prior-year quarter, indicating enhanced profitability [5] Loans and Deposits - As of December 31, 2024, total loans were $48.8 billion, down 1.1% sequentially, primarily due to repayment activity in commercial real estate [6] - Total deposits amounted to $50.1 billion, showing a slight decline from the previous quarter [7] Credit Quality - Total non-performing assets increased by 27.2% year-over-year to $373.3 million, with provisions for credit losses rising significantly to $106.5 million from $20.6 million [8] - The allowance for credit losses as a percentage of total loans was 1.17%, up 24 basis points from the year-ago quarter [8] Profitability and Capital Ratios - Adjusted annualized return on average assets was 0.48%, down from 0.76% in the prior-year quarter, while adjusted annualized return on average shareholders' equity decreased to 4.17% from 7.01% [9] - The tangible common equity to tangible assets ratio improved to 8.40% from 7.58% year-over-year, and the Tier 1 risk-based capital ratio rose to 11.55% from 9.72% [10] Strategic Outlook - The company's organic growth trajectory, strategic acquisitions, and solid balance sheet are expected to support its financials, although rising costs and weakening asset quality pose significant concerns [11]

Financial Data and Key Metrics - The company refers to non-GAAP measures when discussing results, which exclude certain items from reported results [4] - The quarterly earnings release and supporting documents are available on the company's website at valley.com [4] Business Line Data and Key Metrics - No specific data or metrics related to individual business lines were provided in the content Market Data and Key Metrics - No specific data or metrics related to individual markets were provided in the content Company Strategy and Industry Competition - No specific information on company strategy, development direction, or industry competition was provided in the content Management Commentary on Operating Environment and Future Outlook - No specific commentary from management on the operating environment or future outlook was provided in the content Other Important Information - Comments made during the call may contain forward-looking statements relating to Valley National Bancorp and the banking industry [5] - Participants are encouraged to refer to the company's SEC filings, including Forms 8-K, 10-Q, and 10-K, for a complete discussion of forward-looking statements and factors that could cause actual results to differ [5] Q&A Session Summary - No Q&A session content was provided in the documents

Financial Performance - Valley National reported revenue of $475.48 million for the quarter ended December 2024, a year-over-year increase of 5.7% [1] - The EPS for the same period was $0.13, down from $0.22 a year ago, indicating a decline [1] - The reported revenue exceeded the Zacks Consensus Estimate of $469.49 million by 1.28%, while the EPS fell short of the consensus estimate of $0.15 by 13.33% [1] Key Metrics - Efficiency Ratio stood at 57.2%, matching the six-analyst average estimate [4] - Net Interest Margin was 2.9%, also in line with the six-analyst average estimate [4] - The annualized ratio of total net charge-offs to total average loans was 0.8%, higher than the 0.4% average estimate [4] - Average Balance of Total Interest Earning Assets was $58.21 billion, exceeding the five-analyst average estimate of $57.09 billion [4] - Total Non-Interest Income was $51.20 million, below the $58.06 million average estimate [4] - Net Interest Income (FTE) was $424.28 million, surpassing the $411.38 million average estimate [4] - Wealth Management and Trust Fees were $16.43 million, above the five-analyst average estimate of $15.25 million [4] - Insurance Commissions reached $3.71 million, exceeding the five-analyst average estimate of $3.24 million [4] - Service Charges on Deposit Accounts totaled $12.99 million, compared to the $12.21 million average estimate [4] - Bank Owned Life Insurance was $3.78 million, below the $4.52 million average estimate [4] - Fees from Loan Servicing amounted to $3.07 million, slightly below the $3.27 million average estimate [4] - Net Interest Income was reported at $422.98 million, higher than the $410.15 million average estimate [4] Stock Performance - Valley National's shares returned +6.2% over the past month, outperforming the Zacks S&P 500 composite's +2.7% change [3] - The stock currently holds a Zacks Rank 3 (Hold), suggesting it may perform in line with the broader market in the near term [3]

4Q24 Earnings Presentation ▪ Significant balance sheet strength reflecting lower-cost core deposit growth, incremental capital, and enhanced loan diversity. ▪ Adjusted pre-tax pre-provision net revenue ' increased 17% vs. a year aqo and adjusted PPNR / average assets ' is virtually flat vs 3Q24. ▪ Net interest income increased over 3%, expanding for the third consecutive quarter, primarily as a result of lower-cost core deposit growth and strong deposit beta performance. 4 Strategic Imperatives for 2025 Our ...

Valley National (VLY) came out with quarterly earnings of $0.13 per share, missing the Zacks Consensus Estimate of $0.15 per share. This compares to earnings of $0.22 per share a year ago. These figures are adjusted for non-recurring items.This quarterly report represents an earnings surprise of -13.33%. A quarter ago, it was expected that this holding company for Valley National Bank would post earnings of $0.18 per share when it actually produced earnings of $0.18, delivering no surprise.Over the last fou ...

Net Income and Profitability - Net income for Q4 2024 was $115.7 million, or $0.20 per diluted share, compared to $97.9 million in Q3 2024 and $71.6 million in Q4 2023[2] - Net income available to common stockholders for Q4 2024 was $108.7 million, up 18.5% from $91.7 million in Q3 2024[31] - Net income (GAAP) for Q4 2024 was $115.71 million, a 61.7% increase from $71.55 million in Q4 2023[40] - Adjusted net income available to common shareholders (non-GAAP) for Q4 2024 was $68.69 million, compared to $112.19 million in Q4 2023[40] - Net income available to common shareholders (non-GAAP) for full year 2024 was $322.19 million, a 40.1% decrease from $538.14 million in 2023[40] - Net income available to common shareholders was $358.90 million in 2024, down from $482.38 million in 2023[51] Net Interest Income and Margin - Net interest income increased to $424.3 million in Q4 2024, up $12.5 million from Q3 2024 and $25.7 million from Q4 2023[4] - Net interest margin rose to 2.92% in Q4 2024, up 6 basis points from Q3 2024 and 10 basis points from Q4 2023[10] - Net interest income for Q4 2024 increased to $424.3 million, up 3.0% from $411.8 million in Q3 2024[31] - Net interest margin for Q4 2024 improved to 2.91%, up from 2.85% in Q3 2024[31] - Net interest income rose to $422.98 million in Q4 2024, compared to $410.50 million in Q3 2024 and $397.28 million in Q4 2023[52] - Net interest margin improved to 2.92% in Q4 2024 on a fully tax equivalent basis, up from 2.86% in Q3 2024 and 2.82% in Q4 2023[52] Loans and Credit Quality - Total loans decreased by $555.6 million (4.5% annualized) to $48.8 billion in Q4 2024, primarily due to repayments in CRE and multifamily loans[11] - CRE loan concentration ratio declined to 362% at December 31, 2024 from 421% at September 30, 2024[6] - Total Non-Performing Assets (NPAs) increased by $68.2 million to $373.3 million at December 31, 2024, compared to $305.1 million at September 30, 2024[15] - Non-accrual loans increased by $63.2 million to $359.5 million at December 31, 2024, representing 0.74% of total loans, up from 0.60% at September 30, 2024[15] - Total accruing past due loans decreased by $75.5 million to $99.2 million, or 0.20% of total loans, at December 31, 2024, compared to $174.7 million, or 0.35% of total loans, at September 30, 2024[16] - Loans 30 to 59 days past due decreased by $58.0 million to $57.1 million at December 31, 2024, mainly due to a $55.5 million decrease in CRE loans[16] - Loans 90 days or more past due increased by $1.1 million to $5.9 million at December 31, 2024, compared to $4.8 million at September 30, 2024[17] - The allowance for credit losses for loans as a percentage of total loans was 1.17% at December 31, 2024, up from 1.14% at September 30, 2024 and 0.93% at December 31, 2023[18] - Net loan charge-offs totaled $98.3 million for the fourth quarter 2024, compared to $42.9 million and $17.5 million for the third quarter 2024 and the fourth quarter 2023, respectively[18] - Valley's loan portfolio totaled $48.8 billion at December 31, 2024, with gross loan charge-offs of $103.7 million for the fourth quarter 2024[18] - Total loans as of December 31, 2024, decreased to $48.8 billion from $49.4 billion in September 2024[33] - Allowance for credit losses for loans increased to $573,328 thousand as of December 31, 2024, up from $465,550 thousand in December 2023[35] - Total net charge-offs for loans in 2024 were $201,610 thousand, compared to $61,962 thousand in 2023[35] - Provision for credit losses for loans in 2024 was $309,388 thousand, significantly higher than $45,625 thousand in 2023[35] - Annualized ratio of total net charge-offs to average loans increased to 0.40% in 2024 from 0.13% in 2023[35] - Allowance for credit losses as a percentage of total loans rose to 1.17% in 2024 from 0.93% in 2023[35] - Total non-accrual loans as a percentage of loans increased to 0.74% in December 2024 from 0.58% in December 2023[38] - Total accruing past due and non-accrual loans as a percentage of loans rose to 0.94% in December 2024 from 0.76% in December 2023[38] - Allowance for losses on loans as a percentage of non-accrual loans decreased to 155.45% in December 2024 from 152.83% in December 2023[38] - Net losses on commercial real estate loan sales in Q4 2024 were $7.87 million, up from $5.79 million in Q3 2024[40] - Net loans decreased to $48.24 billion in 2024 from $49.76 billion in 2023, with a corresponding increase in the allowance for loan losses to $558.85 million[50] - Loans averaged $49,730.13 million in Q4 2024, slightly down from $50,126.96 million in Q3 2024 but up from $50,039.43 million in Q4 2023[52] Deposits and Funding - Non-interest bearing deposits increased by $274.9 million to $11.4 billion at December 31, 2024[6] - Total deposits decreased by $320.1 million to $50.1 billion at December 31, 2024, with a $1.8 billion decline in time deposits partially offset by increases in other deposit categories[13] - Deposits as of December 31, 2024, stood at $50.1 billion, slightly down from $50.4 billion in September 2024[33] - Total deposits grew to $50.08 billion in 2024 from $49.24 billion in 2023, driven by an increase in interest-bearing deposits[50] - Interest bearing deposits with banks increased to $1,414.67 million in Q4 2024, compared to $974.42 million in Q3 2024 and $885.69 million in Q4 2023[52] Capital and Liquidity - Valley's total risk-based capital ratio increased to 13.87% at December 31, 2024, compared to 12.56% at September 30, 2024, largely due to the issuance of 49.2 million shares of common stock[21] - Shareholders' equity increased to $7.4 billion as of December 31, 2024, from $7.0 billion in September 2024[33] - Tier 1 leverage capital ratio as of December 31, 2024, increased to 9.16% from 8.40% in September 2024[33] - Tangible book value per common share as of December 31, 2024 was $9.10, up from $8.79 in December 2023[49] - Tangible common equity to tangible assets ratio was 8.40% as of December 31, 2024, compared to 7.58% in December 2023[49] - Shareholders' equity increased to $7,255.16 million in Q4 2024, up from $6,862.56 million in Q3 2024 and $6,639.91 million in Q4 2023[52] Efficiency and Expense Management - Efficiency ratio improved to 57.21% in Q4 2024, compared to 56.13% in Q3 2024 and 60.70% in Q4 2023[8] - Efficiency ratio for Q4 2024 was 57.21%, slightly higher than 56.13% in Q3 2024[31] - Efficiency ratio for Q4 2024 was 57.21%, compared to 60.70% in Q4 2023[47] - Non-interest expense for Q4 2024 was $275.76 million, compared to $272.58 million in Q4 2023[47] - Total non-interest expense decreased to $1.11 billion in 2024 from $1.16 billion in 2023, primarily due to reductions in FDIC insurance assessments and professional fees[51] Revenue and Interest Income - Total revenue for Q4 2024 reached $474.2 million, a slight increase from $471.2 million in Q3 2024[31] - Gross operating income for Q4 2024 was $482.05 million, up from $449.09 million in Q4 2023[47] - Net interest income for the year ended December 31, 2024, was $1.63 billion, compared to $1.67 billion in 2023[51] - Non-interest income for 2024 was $224.50 million, slightly lower than $225.73 million in 2023[51] - Interest income from loans and fees was $3.08 billion in 2024, up from $2.89 billion in 2023[51] - Total interest expense rose to $1.73 billion in 2024 from $1.47 billion in 2023, driven by higher interest on deposits and borrowings[51] - Total interest earning assets increased to $58,214.78 million in Q4 2024, up from $57,651.65 million in Q3 2024 and $56,469.47 million in Q4 2023[52] - Taxable investments grew to $6,504.11 million in Q4 2024, up from $5,977.21 million in Q3 2024 and $4,950.77 million in Q4 2023[52] - Total interest bearing liabilities stood at $42,765.95 million in Q4 2024, slightly up from $42,656.96 million in Q3 2024 and $40,753.31 million in Q4 2023[52] Asset and Liability Management - Total assets increased to $62.49 billion in 2024 from $60.93 billion in 2023, reflecting growth in cash, interest-bearing deposits, and investment securities[50] Provision for Credit Losses - Provision for credit losses increased to $107.0 million in Q4 2024, compared to $75.0 million in Q3 2024 and $20.7 million in Q4 2023[6] - The provision for credit losses for loans totaled $107.0 million for the fourth quarter 2024, compared to $75.0 million for the third quarter 2024 and $20.7 million for the fourth quarter 2023[19] - Provision for credit losses for loans in 2024 was $309,388 thousand, significantly higher than $45,625 thousand in 2023[35] Other Financial Metrics - Annualized return on average assets (ROA) was 0.74% for Q4 2024, with adjusted ROA at 0.48%[8] - Annualized return on average assets for Q4 2024 was 0.74%, compared to 0.63% in Q3 2024[31] - Annualized return on average tangible shareholders' equity for Q4 2024 was 5.76%, compared to 10.10% in Q4 2023[47] - Annualized return on average assets for Q4 2024 was 0.48%, down from 0.76% in Q4 2023[47] - Basic earnings per share (EPS) for Q4 2024 were $0.13, down from $0.22 in Q4 2023[47] - Dividends on preferred stock for full year 2024 were $21.37 million, a 32.4% increase from $16.14 million in 2023[40] - Total non-GAAP adjustments to net income for Q4 2024 were $(37.48) million, primarily due to a $(46.43) million income tax benefit[40] - FDIC special assessment in Q4 2023 was $50.30 million, significantly higher than the $8.76 million for the full year 2024[40] - Restructuring charges in Q4 2024 were $1.09 million, compared to $(538) thousand in Q4 2023[40] - Merger-related expenses in Q4 2023 were $10.00 million, with no such expenses in 2024[40] - Litigation reserve in Q4 2023 was $3.54 million, with no similar reserve in 2024[40] - Average number of shares outstanding for Q4 2024 was 536.16 million, up from 507.68 million in Q4 2023[47]