UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, DC 20549 FORM 10-Q (Mark One) ☒ Quarterly Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the Quarterly Period Ended September 30, 2025 OR ☐ Transition Report Pursuant to Section 13 or 15(d) of the Securities Exchange Act of 1934 For the transition period from to Commission File Number 1-11277 Valley National Bancorp (Exact name of registrant as specified in its charter) New Jersey 22-2477875 (State or other juris ...

[Executive Summary & CEO Commentary](index=1&type=section&id=Executive%20Summary%20%26%20CEO%20Commentary) Valley National Bancorp achieved significant Q3 2025 net income and EPS growth, reflecting improved profitability and strategic balance sheet strengthening, as highlighted by CEO Ira Robbins [Q3 2025 Financial Performance Overview](index=1&type=section&id=Q3%202025%20Financial%20Performance%20Overview) Valley National Bancorp reported a significant increase in net income for Q3 2025, driven by improved profitability and balance sheet strengthening, with diluted EPS also seeing a notable rise compared to prior periods | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (GAAP) (Millions USD) | $163.4M | $133.2M | $97.9M | | Diluted EPS (GAAP) (USD) | $0.28 | $0.22 | $0.18 | | Adjusted Net Income (Non-GAAP) (Millions USD) | $164.1M | $134.4M | $96.8M | | Adjusted Diluted EPS (Non-GAAP) (USD) | $0.28 | $0.23 | $0.18 | [CEO Commentary and Strategic Outlook](index=1&type=section&id=CEO%20Commentary%20and%20Strategic%20Outlook) CEO Ira Robbins highlighted Valley's strong momentum, with profitability catching up to balance sheet strengthening initiated in early 2024, and new leadership positively impacting business generation and strategic operating model - Profitability improvement is catching up to balance sheet strengthening since early 2024[2](index=2&type=chunk) - New leadership team additions are positively impacting business generation, talent base, and strategic operating model[2](index=2&type=chunk) - Valley remains a strong regional bank, combining robust financial products of a large bank with high-touch service and market knowledge of a community bank[2](index=2&type=chunk) [Key Financial Highlights (Summary)](index=1&type=section&id=Key%20Financial%20Highlights%20(Summary)) Valley's Q3 2025 highlights include increased net interest income and margin, deposit growth, improved efficiency, and stronger profitability ratios, despite a slight loan portfolio decrease and mixed credit quality trends [Net Interest Income and Margin Summary](index=1&type=section&id=Net%20Interest%20Income%20and%20Margin%20Summary) Net interest income and margin both increased in Q3 2025 compared to the prior quarter and year, primarily driven by higher yields on new loan originations, increased average loans and taxable investments, and an additional day in the quarter | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Interest Margin (tax equivalent) (Percent) | 3.05% | 3.01% | 2.86% | | Net Interest Income (tax equivalent) (Millions USD) | $447.5M | $433.7M | $411.8M | - Net interest margin increased by **4 basis points QoQ** and **19 basis points YoY**[3](index=3&type=chunk) - Increase in net interest income mainly due to higher yields on new loan originations, increases in average loans and taxable investments, and one additional day in Q3 2025[3](index=3&type=chunk) [Deposits Summary](index=2&type=section&id=Deposits%20Summary) Total deposit balances increased in Q3 2025, primarily due to inflows from commercial and government deposits, partially offset by a decline in indirect customer deposits, while non-interest bearing deposits remained stable | Metric | Sep 30, 2025 | Jun 30, 2025 | | :----------------------- | :----------- | :----------- | | Total Deposit Balances (Billions USD) | $51.2B | $50.7B | | Non-interest Bearing Deposits (Billions USD) | $11.7B | $11.7B | - Total deposit balances increased by **$450.5 million QoQ**[4](index=4&type=chunk) - Increase mainly from commercial customer and government deposits in savings, NOW, and money market categories, partially offset by a **$629.9 million decline** in indirect customer deposits[4](index=4&type=chunk) [Loan Portfolio Summary](index=2&type=section&id=Loan%20Portfolio%20Summary) Total loans decreased slightly in Q3 2025, primarily due to targeted runoff in commercial real estate (CRE) and commercial and industrial (C&I) loans, while residential mortgage and consumer loans increased | Metric | Sep 30, 2025 | Jun 30, 2025 | | :----------------------- | :----------- | :----------- | | Total Loans (Billions USD) | $49.3B | $49.4B | | CRE Loan Concentration Ratio (Percent) | 337% | 349% | - Total loans decreased by **$118.6 million**, or **1.0% annualized**, QoQ[4](index=4&type=chunk) - Decreases in CRE (**$142.5 million**) and C&I (**$112.2 million**) loans were partially offset by increases in residential mortgage and total consumer loans[4](index=4&type=chunk) [Allowance and Provision for Credit Losses Summary](index=2&type=section&id=Allowance%20and%20Provision%20for%20Credit%20Losses%20Summary) The allowance for credit losses for loans increased slightly, maintaining a stable percentage of total loans, while the provision for credit losses for loans significantly decreased compared to the prior quarter and year | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Provision for Credit Losses for Loans (Millions USD) | $19.2M | $37.8M | $75.0M | | Allowance for Credit Losses for Loans (Millions USD) | $598.6M | $594.0M | N/A | | Allowance as % of Total Loans (Percent) | 1.21% | 1.20% | N/A | - Provision for credit losses for loans decreased by **$18.6 million QoQ** and **$55.8 million YoY**[4](index=4&type=chunk) [Credit Quality Summary](index=2&type=section&id=Credit%20Quality%20Summary) Net loan charge-offs decreased significantly in Q3 2025, accruing past due loans also declined, but non-accrual loans increased, mainly due to three new non-performing CRE and construction loans | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Loan Charge-offs (Millions USD) | $14.6M | $37.8M | $42.9M | | Accruing Past Due Loans (Sep 30) (Millions USD) | $84.8M | $199.2M | N/A | | Non-Accrual Loans (Sep 30) (Millions USD) | $421.5M | $354.4M | N/A | - Net loan charge-offs decreased by **$23.2 million QoQ** and **$28.3 million YoY**[4](index=4&type=chunk) - Non-accrual loans increased by **$67.1 million QoQ**, primarily due to three new non-performing CRE and construction loans totaling **$67.0 million**[4](index=4&type=chunk) [Non-Interest Income Summary](index=2&type=section&id=Non-Interest%20Income%20Summary) Non-interest income increased in Q3 2025, driven by higher service charges on deposit accounts and wealth management and trust fees, partially offset by lower bank owned life insurance income and net gains on sales of loans | Metric | Q3 2025 | Q2 2025 | | :----------------------- | :------ | :------ | | Non-Interest Income (Millions USD) | $64.9M | $62.6M | - Non-interest income increased by **$2.3 million QoQ**[4](index=4&type=chunk) - Main drivers were increases in service charges on deposit accounts and wealth management and trust fees, partially offset by lower bank owned life insurance income and net gains on sales of loans[4](index=4&type=chunk) [Non-Interest Expense Summary](index=2&type=section&id=Non-Interest%20Expense%20Summary) Non-interest expense decreased in Q3 2025, mainly due to a decline in FDIC insurance assessment expense and lower other non-interest expense, partially offset by increased professional and legal fees and restructuring-related severance charges | Metric | Q3 2025 | Q2 2025 | | :----------------------- | :------ | :------ | | Non-Interest Expense (Millions USD) | $282.0M | $284.1M | - Non-interest expense decreased by **$2.1 million QoQ**[4](index=4&type=chunk) - Key factors include a **$3.8 million decrease** in FDIC insurance assessment expense, partially offset by a **$4.3 million increase** in professional and legal fees and a **$3.1 million increase** in restructuring-related severance charges[4](index=4&type=chunk)[5](index=5&type=chunk) [Efficiency and Performance Ratios Summary](index=3&type=section&id=Efficiency%20and%20Performance%20Ratios%20Summary) Valley's efficiency ratio improved in Q3 2025, and profitability ratios, including ROA, ROE, and tangible ROE, continued to improve steadily, with adjusted annualized ROA reaching its highest level since Q4 2022 | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Efficiency Ratio (Percent) | 53.37% | 55.20% | 56.13% | | Annualized ROA (Percent) | 1.04% | 0.86% | 0.63% | | Annualized ROE (Percent) | 8.58% | 7.08% | 5.70% | | Annualized Tangible ROE (Percent) | 11.59% | 9.62% | 8.06% | - Adjusted annualized ROA for Q3 2025 recovered to the **highest level since Q4 2022**[8](index=8&type=chunk) [Detailed Financial Analysis](index=3&type=section&id=Detailed%20Financial%20Analysis) Detailed analysis reveals expanded net interest income and margin, targeted loan portfolio adjustments, deposit growth, mixed credit quality trends, and strengthened capital adequacy [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income on a tax equivalent basis increased significantly QoQ and YoY, driven by higher interest income from new loan originations and increased average loans/investments, while net interest margin also expanded due to a higher yield on interest-earning assets | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Interest Income (tax equivalent) (Millions USD) | $447.5M | $433.7M | $411.8M | | Interest Income (tax equivalent) (Millions USD) | $828.2M | $806.3M | $861.9M | | Total Interest Expense (Millions USD) | $380.7M | $372.6M | $450.1M | | Net Interest Margin (tax equivalent) (Percent) | 3.05% | 3.01% | 2.86% | - Net interest income (tax equivalent) increased by **$13.8 million QoQ** and **$35.7 million YoY**[6](index=6&type=chunk) - Net interest margin (tax equivalent) increased by **4 basis points QoQ** and **19 basis points YoY**, primarily due to a **5 basis point increase** in the yield on average interest-earning assets[7](index=7&type=chunk) [Loans, Deposits and Other Borrowings](index=4&type=section&id=Loans,%20Deposits%20and%20Other%20Borrowings) Total loans decreased slightly, mainly due to targeted runoff in commercial real estate and industrial loans, while residential mortgages and consumer loans saw increases, deposits grew, and short-term borrowings decreased due to repayments [Loans](index=4&type=section&id=Loans) Total loans decreased by $118.6 million QoQ, primarily from reductions in CRE and C&I loans due to targeted runoff and repayment activity, while residential mortgage and consumer loans experienced growth | Loan Category | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :-------------------------- | :----------- | :----------- | :--------- | | Total Loans (Billions USD) | $49.3B | $49.4B | -$118.6M | | Total CRE Loans (Billions USD) | $28.7B | $28.8B | -$142.5M | | Construction Loans (Billions USD) | $2.5B | $2.9B | -$337.6M | | C&I Loans (Billions USD) | $10.8B | $10.9B | -$112.2M | | Residential Mortgage Loans (Billions USD) | $5.8B | $5.7B | +$85.4M | | Total Consumer Loans (Billions USD) | $4.0B | $4.0B | +$50.7M | - CRE loan concentration ratio declined to approximately **337%** at September 30, 2025, from **349%** at June 30, 2025[4](index=4&type=chunk) - Owner-occupied CRE loans increased by **$307.9 million**, or **21.3% annualized**, due to migration from construction loans and new originations[10](index=10&type=chunk) [Deposits](index=4&type=section&id=Deposits) Total deposits increased by $450.5 million, primarily driven by a $1.2 billion increase in savings, NOW, and money market deposits from commercial and government accounts, partially offset by a decrease in time deposits due to maturing indirect customer CDs | Deposit Category | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :----------------------------- | :----------- | :----------- | :--------- | | Total Deposits (Billions USD) | $51.2B | $50.7B | +$450.5M | | Savings, NOW & Money Market (Billions USD) | +$1.2B | N/A | +$1.2B | | Time Deposits (Millions USD) | N/A | N/A | -$616.8M | | Non-interest Bearing Deposits (Billions USD) | $11.7B | $11.7B | Stable | - Indirect customer deposits decreased from **$6.5 billion** to **$5.8 billion QoQ**[11](index=11&type=chunk) | Deposit Type | Sep 30, 2025 (% of total) | Jun 30, 2025 (% of total) | | :-------------------------- | :------------------------ | :------------------------ | | Non-interest bearing (Percent) | 23% | 23% | | Savings, NOW & Money Market (Percent) | 53% | 52% | | Time Deposits (Percent) | 24% | 25% | [Other Borrowings](index=5&type=section&id=Other%20Borrowings) Short-term borrowings decreased significantly due to the repayment of FHLB advances, while long-term borrowings remained relatively stable | Borrowing Type | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :--------------------- | :----------- | :----------- | :--------- | | Short-term Borrowings (Millions USD) | $51.1M | $162.3M | -$111.2M | | Long-term Borrowings (Billions USD) | $2.9B | $2.9B | Stable | - The decrease in short-term borrowings was largely due to the repayment of **$100 million** of maturing short-term FHLB advances[12](index=12&type=chunk) [Credit Quality](index=5&type=section&id=Credit%20Quality) Credit quality showed mixed trends: total non-performing assets and non-accrual loans increased, primarily due to new non-performing CRE and construction loans, but accruing past due loans decreased significantly across all delinquency categories, and net loan charge-offs declined [Non-Performing Assets (NPAs)](index=5&type=section&id=Non-Performing%20Assets%20(NPAs)) Total non-performing assets increased by $66.6 million QoQ, driven by a $67.1 million increase in non-accrual loans, mainly due to a large construction loan migrating to non-accrual status and two smaller non-performing CRE loans | Metric | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :----------------------- | :----------- | :----------- | :--------- | | Total NPAs (Millions USD) | $427.3M | $360.7M | +$66.6M | | Non-Accrual Loans (Millions USD) | $421.5M | $354.4M | +$67.1M | | Non-Accrual Loans as % of Total Loans (Percent) | 0.86% | 0.72% | +0.14% | - The increase in non-accrual loans was mainly due to one **$35.0 million construction loan** migrating from past due to non-accrual and two smaller non-performing CRE loans[13](index=13&type=chunk) [Accruing Past Due Loans](index=5&type=section&id=Accruing%20Past%20Due%20Loans) Total accruing past due loans decreased significantly by $114.4 million QoQ, with reductions across all delinquency categories (30-59 days, 60-89 days, and 90+ days past due) | Delinquency Category | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :--------------------------- | :----------- | :----------- | :--------- | | Total Accruing Past Due Loans (Millions USD) | $84.8M | $199.2M | -$114.4M | | 30 to 59 days past due (Millions USD) | $63.6M | $123.0M | -$59.4M | | 60 to 89 days past due (Millions USD) | $16.2M | $73.3M | -$57.2M | | 90 or more days past due (Millions USD) | $5.0M | $2.9M | +$2.1M | - The decrease in 30-59 days past due loans was largely due to a **$39.2 million CRE loan** being paid in full and a **$35.0 million construction loan** migrating to non-accrual[15](index=15&type=chunk) - The decrease in 60-89 days past due loans was mainly due to a **$60.6 million CRE loan** being modified and brought current[16](index=16&type=chunk) [Allowance for Credit Losses for Loans and Unfunded Commitments](index=6&type=section&id=Allowance%20for%20Credit%20Losses%20for%20Loans%20and%20Unfunded%20Commitments) The total allowance for credit losses for loans increased slightly QoQ, maintaining a stable percentage of total loans, while the provision for credit losses for loans decreased significantly, reflecting moderate increases in economic forecasts and qualitative reserves | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Allowance for Credit Losses for Loans (Millions USD) | $598.6M | $594.0M | $564.7M | | Allowance as % of Total Loans (Percent) | 1.21% | 1.20% | 1.14% | | Provision for Credit Losses for Loans (Millions USD) | $19.2M | $37.8M | $75.0M | | Net Loan Charge-offs (Millions USD) | $14.6M | $37.8M | $42.9M | - The Q3 2025 provision reflects moderate increases in economic forecast and non-economic qualitative reserve components, and higher specific reserves for collateral-dependent loans, partially offset by a decline in quantitative reserves in C&I and construction loans[19](index=19&type=chunk) [Capital Adequacy](index=7&type=section&id=Capital%20Adequacy) Valley's capital ratios, including total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital, all improved in Q3 2025, and the company repurchased 1.3 million shares of common stock during the quarter | Capital Ratio | Sep 30, 2025 | Jun 30, 2025 | | :-------------------------- | :----------- | :----------- | | Total Risk-Based Capital (Percent) | 13.83% | 13.67% | | Tier 1 Capital (Percent) | 11.72% | 11.57% | | Common Equity Tier 1 Capital (Percent) | 11.00% | 10.85% | | Tier 1 Leverage Capital (Percent) | 9.52% | 9.49% | - Repurchased **1.3 million shares** of common stock at an average price of **$9.38** during Q3 2025[20](index=20&type=chunk) - Repurchased a total of **1.8 million shares** at an average price of **$9.18** during the nine months ended September 30, 2025[20](index=20&type=chunk) [Corporate Information](index=7&type=section&id=Corporate%20Information) This section provides investor call details, an overview of Valley National Bancorp, and important disclosures regarding forward-looking statements and key risk factors [Investor Conference Call](index=7&type=section&id=Investor%20Conference%20Call) Valley's CEO, Ira Robbins, hosted a conference call on October 23, 2025, to discuss Q3 2025 earnings, with details for preregistration, webcast access, and investor presentation materials provided - Conference call hosted by CEO Ira Robbins on **October 23, 2025**, at **11:00 AM (ET)** to discuss Q3 2025 earnings[21](index=21&type=chunk) - Webcast and archived materials available on Valley's website[21](index=21&type=chunk) [About Valley National Bancorp](index=7&type=section&id=About%20Valley%20National%20Bancorp) Valley National Bank, the principal subsidiary of Valley National Bancorp, is a regional bank with approximately $63 billion in assets, operating across multiple states and focusing on community growth - Valley National Bank is a regional bank with approximately **$63 billion in assets**[22](index=22&type=chunk) - Operates branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois[22](index=22&type=chunk) - Committed to providing convenient service, latest innovations, and meeting customer needs, with a focus on corporate citizenship and community prosperity[22](index=22&type=chunk) [Forward-Looking Statements and Risk Factors](index=7&type=section&id=Forward-Looking%20Statements%20and%20Risk%20Factors) The report includes forward-looking statements subject to various risks and uncertainties, including market interest rates, macroeconomic conditions, financial sector instability, regulatory changes, and technology-related challenges - Statements are forward-looking and involve risks and uncertainties, with actual results potentially differing materially[23](index=23&type=chunk) - Key risks include impact of market interest rates and monetary policies, unfavorable macroeconomic conditions, instability within the U.S. financial sector, and negative public opinion[23](index=23&type=chunk)[24](index=24&type=chunk) - Other significant risks involve changes in regulations, loss of lower-cost funding, litigation, prolonged economic downturns affecting commercial real estate, and technology-related challenges including cybersecurity threats[24](index=24&type=chunk)[26](index=26&type=chunk) [Consolidated Financial Highlights (Tables)](index=10&type=section&id=Consolidated%20Financial%20Highlights%20(Tables)) This section provides comprehensive consolidated financial tables, including selected data, balance sheet, loan and capital breakdowns, asset quality, non-GAAP reconciliations, income statements, and detailed average balance analysis [Selected Financial Data](index=10&type=section&id=Selected%20Financial%20Data) This section provides a summary of key financial data for the three and nine months ended September 30, 2025, including net interest income, non-interest income, total revenue, expenses, net income, EPS, and various financial ratios, both GAAP and non-GAAP adjusted | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income - FTE (Thousands USD) | $447,473 | $433,675 | $411,812 | $1,302,525 | $1,209,643 | | Non-interest income (Thousands USD) | $64,887 | $62,604 | $60,671 | $185,785 | $173,299 | | Total revenue (Thousands USD) | $511,111 | $495,012 | $471,169 | $1,484,522 | $1,379,030 | | Net income (Thousands USD) | $163,355 | $133,167 | $97,856 | $402,580 | $264,560 | | Diluted earnings per common share (USD) | $0.28 | $0.22 | $0.18 | $0.68 | $0.49 | | Net interest margin - FTE (Percent) | 3.05% | 3.01% | 2.86% | 3.01% | 2.83% | | Annualized return on average assets (Percent) | 1.04% | 0.86% | 0.63% | 0.86% | 0.57% | | Efficiency ratio (Percent) | 53.37% | 55.20% | 56.13% | 54.79% | 58.26% | [Balance Sheet Items](index=12&type=section&id=Balance%20Sheet%20Items) This table presents key balance sheet figures at various quarter-ends, showing trends in total assets, loans, deposits, and shareholders' equity | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Assets (Thousands USD) | $63,018,614 | $62,705,358 | $61,865,655 | $62,491,691 | $62,092,332 | | Total loans (Thousands USD) | $49,272,823 | $49,391,420 | $48,657,128 | $48,799,711 | $49,355,319 | | Deposits (Thousands USD) | $51,175,758 | $50,725,284 | $49,965,844 | $50,075,857 | $50,395,966 | | Shareholders' equity (Thousands USD) | $7,695,374 | $7,575,421 | $7,499,897 | $7,435,127 | $6,972,380 | [Loans Breakdown](index=12&type=section&id=Loans%20Breakdown) A detailed breakdown of the loan portfolio by category, illustrating changes in commercial and industrial, commercial real estate (non-owner occupied, multifamily, owner occupied, construction), residential mortgage, and consumer loans over several quarters | Loan Category | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial (Thousands USD) | $10,757,857 | $10,870,036 | $10,150,205 | $9,931,400 | $9,799,287 | | Total commercial real estate (Thousands USD) | $28,683,374 | $28,825,920 | $29,114,556 | $29,644,958 | $30,402,196 | | Residential mortgage (Thousands USD) | $5,795,395 | $5,709,971 | $5,636,407 | $5,632,516 | $5,684,079 | | Total consumer loans (Thousands USD) | $4,036,197 | $3,985,493 | $3,755,960 | $3,590,837 | $3,469,757 | | Total loans (Thousands USD) | $49,272,823 | $49,391,420 | $48,657,128 | $48,799,711 | $49,355,319 | [Capital Ratios](index=12&type=section&id=Capital%20Ratios) This table provides a historical view of Valley's capital adequacy ratios, including book value, tangible book value, and various risk-based capital ratios, demonstrating consistent capital strength | Capital Ratio | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Book value per common share (USD) | $13.09 | $12.89 | $12.76 | $12.67 | $13.00 | | Tangible book value per common share (USD) | $9.57 | $9.35 | $9.21 | $9.10 | $9.06 | | Tangible common equity to tangible assets (Percent) | 8.79% | 8.63% | 8.61% | 8.40% | 7.68% | | Tier 1 leverage capital (Percent) | 9.52% | 9.49% | 9.41% | 9.16% | 8.40% | | Common equity tier 1 capital (Percent) | 11.00% | 10.85% | 10.80% | 10.82% | 9.57% | | Tier 1 risk-based capital (Percent) | 11.72% | 11.57% | 11.53% | 11.55% | 10.29% | | Total risk-based capital (Percent) | 13.83% | 13.67% | 13.91% | 13.87% | 12.56% | [Allowance for Credit Losses Details](index=13&type=section&id=Allowance%20for%20Credit%20Losses%20Details) This table details the movement in the allowance for credit losses, including beginning and ending balances, charge-offs, recoveries, and provision for credit losses, broken down by loan category for the three and nine months ended September 30, 2025 and 2024 | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Beginning balance - Allowance for credit losses for loans (Thousands USD) | $594,020 | $594,054 | $532,541 | $573,328 | $465,550 | | Total net charge-offs (Thousands USD) | $(14,587) | $(37,829) | $(42,908) | $(94,365) | $(103,302) | | Provision for credit losses for loans (Thousands USD) | $19,171 | $37,795 | $75,038 | $119,641 | $202,423 | | Ending balance (Thousands USD) | $598,604 | $594,020 | $564,671 | $598,604 | $564,671 | | Allowance for credit losses for loans as a % of total loans (Percent) | 1.21% | 1.20% | 1.14% | 1.21% | 1.14% | [Asset Quality Details](index=14&type=section&id=Asset%20Quality%20Details) This table provides a detailed breakdown of accruing past due loans and non-accrual loans by category, as well as other non-performing assets, offering insights into the composition and trends of asset quality | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total accruing past due loans (Thousands USD) | $84,760 | $199,202 | $51,697 | $99,194 | $174,696 | | Total non-accrual loans (Thousands USD) | $421,489 | $354,359 | $346,451 | $359,498 | $296,319 | | Total non-performing assets (Thousands USD) | $427,337 | $360,784 | $356,219 | $373,329 | $305,102 | | Total non-accrual loans as a % of loans (Percent) | 0.86% | 0.72% | 0.71% | 0.74% | 0.60% | | Allowance for losses on loans as a % of non-accrual loans (Percent) | 138.79% | 163.53% | 166.89% | 155.45% | 185.05% | [Non-GAAP Reconciliations](index=15&type=section&id=Non-GAAP%20Reconciliations) This section provides detailed reconciliations of non-GAAP financial measures, such as adjusted net income, adjusted EPS, adjusted return on average assets, and efficiency ratio, to their most directly comparable GAAP measures, explaining adjustments for non-core items | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net income, as reported (GAAP) (Thousands USD) | $163,355 | $133,167 | $97,856 | $402,580 | $264,560 | | Net income, as adjusted (non-GAAP) (Thousands USD) | $164,088 | $134,415 | $96,754 | $404,569 | $267,845 | | Diluted earnings, as adjusted (non-GAAP) (USD) | $0.28 | $0.23 | $0.18 | $0.68 | $0.50 | | Annualized return on average assets, as adjusted (non-GAAP) (Percent) | 1.04% | 0.87% | 0.62% | 0.87% | 0.58% | | Efficiency ratio (non-GAAP) (Percent) | 53.37% | 55.20% | 56.13% | 54.79% | 58.26% | - Non-GAAP adjustments include loss on extinguishment of debt, FDIC special assessment, restructuring charges, net losses on sale of commercial real estate loans, litigation reserve, gains/losses on securities, and litigation settlements[38](index=38&type=chunk)[39](index=39&type=chunk) - Management uses non-GAAP measures to understand underlying operational performance and business trends, believing they provide useful supplemental information to investors[41](index=41&type=chunk) [Consolidated Statements of Financial Condition](index=17&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) This statement provides a snapshot of Valley National Bancorp's assets, liabilities, and shareholders' equity as of September 30, 2025, and December 31, 2024, detailing the financial position | Item | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Total Assets (Thousands USD) | $63,018,614 | $62,491,691 | | Net Loans (Thousands USD) | $48,687,823 | $48,240,861 | | Total Deposits (Thousands USD) | $51,175,758 | $50,075,857 | | Total Liabilities (Thousands USD) | $55,323,240 | $55,056,564 | | Total Shareholders' Equity (Thousands USD) | $7,695,374 | $7,435,127 | - Non-interest bearing deposits increased from **$11,428,674 thousand** at Dec 31, 2024, to **$11,659,725 thousand** at Sep 30, 2025[44](index=44&type=chunk) - Available for sale debt securities increased from **$3,369,724 thousand** at Dec 31, 2024, to **$4,117,121 thousand** at Sep 30, 2025[44](index=44&type=chunk) [Consolidated Statements of Income](index=18&type=section&id=Consolidated%20Statements%20of%20Income) This statement presents Valley National Bancorp's revenues, expenses, and net income for the three and nine months ended September 30, 2025 and 2024, highlighting the components of profitability | Item | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total interest income (Thousands USD) | $826,923 | $805,012 | $860,549 | $2,416,687 | $2,522,671 | | Total interest expense (Thousands USD) | $380,699 | $372,604 | $450,051 | $1,117,950 | $1,316,940 | | Net Interest Income (Thousands USD) | $446,224 | $432,408 | $410,498 | $1,298,737 | $1,205,731 | | Total non-interest income (Thousands USD) | $64,887 | $62,604 | $60,671 | $185,785 | $173,299 | | Total non-interest expense (Thousands USD) | $281,985 | $284,122 | $269,471 | $842,725 | $827,278 | | Net Income (Thousands USD) | $163,355 | $133,167 | $97,856 | $402,580 | $264,560 | | Net Income Available to Common Shareholders (Thousands USD) | $155,711 | $126,219 | $91,739 | $381,033 | $250,216 | - Interest and fees on loans decreased YoY for both the three-month and nine-month periods[45](index=45&type=chunk) - Provision for credit losses for loans decreased significantly from **$75,038 thousand** in Q3 2024 to **$19,171 thousand** in Q3 2025[45](index=45&type=chunk) [Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and Net Interest Income on a Tax Equivalent Basis](index=20&type=section&id=Quarterly%20Analysis%20of%20Average%20Assets,%20Liabilities%20and%20Shareholders'%20Equity%20and%20Net%20Interest%20Income%20on%20a%20Tax%20Equivalent%20Basis) This detailed table provides an analysis of average balances, interest income/expense, and rates for interest-earning assets and interest-bearing liabilities, along with net interest income and margin on a tax-equivalent basis for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024 | Item | Q3 2025 Avg Balance (Thousands USD) | Q3 2025 Interest (Thousands USD) | Q3 2025 Rate (Percent) | Q2 2025 Avg Balance (Thousands USD) | Q2 2025 Interest (Thousands USD) | Q2 2025 Rate (Percent) | Q3 2024 Avg Balance (Thousands USD) | Q3 2024 Interest (Thousands USD) | Q3 2024 Rate (Percent) | | :-------------------------------- | :------------------ | :--------------- | :----------- | :------------------ | :--------------- | :----------- | :------------------ | :--------------- | :----------- | | Loans | $49,270,853 | $733,214 | 5.95% | $49,032,637 | $720,305 | 5.88% | $50,126,963 | $786,704 | 6.28% | | Total interest earning assets | $58,623,153 | $828,172 | 5.65% | $57,553,624 | $806,279 | 5.60% | $57,651,650 | $861,863 | 5.98% | | Savings, NOW and money market deposits | $27,005,791 | $210,921 | 3.12% | $26,451,349 | $203,390 | 3.08% | $25,017,504 | $235,371 | 3.76% | | Total interest bearing liabilities | $42,677,630 | $380,699 | 3.57% | $41,913,735 | $372,604 | 3.56% | $42,656,956 | $450,051 | 4.22% | | Net interest income/interest rate spread | | $447,473 | 2.08% | | $433,675 | 2.04% | | $411,812 | 1.76% | | Net interest margin on a fully tax equivalent basis | | | 3.05% | | | 3.01% | | | 2.86% | - The average yield on loans increased by **7 basis points QoQ** (**5.88%** to **5.95%**)[46](index=46&type=chunk) - The average cost of savings, NOW, and money market deposits increased by **4 basis points QoQ** (**3.08%** to **3.12%**)[46](index=46&type=chunk) [Shareholder Relations](index=20&type=section&id=Shareholder%20Relations) Contact information for shareholder relations inquiries, including name, title, address, phone, fax, and email, is provided for investors seeking reports or other information - Contact for shareholder relations: Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist[49](index=49&type=chunk) - Contact details include phone: **(973) 305-3380** and email: **tzarkadas@valley.com**[49](index=49&type=chunk)

Financial Performance - The company’s net income for the second quarter of 2025 was $133.2 million, or $0.22 per diluted common share, compared to $70.4 million, or $0.13 per diluted common share, for the same quarter in 2024, marking a $62.7 million increase[170]. - Net income for Q2 2025 was reported at $133.2 million, compared to $70.4 million in Q2 2024[186]. - Adjusted net income for Q2 2025 was $134.4 million, up from $71.6 million in Q2 2024, representing an increase of 87.7%[187]. - The company reported a net income of $239.2 million for the period[320]. Assets and Liabilities - As of June 30, 2025, the company reported total assets of approximately $62.7 billion, total net loans of $48.8 billion, total deposits of $50.7 billion, and total shareholders' equity of $7.6 billion[167]. - Total average deposits increased by $767.8 million to $49.9 billion in Q2 2025 compared to Q1 2025[178]. - Actual ending balances for deposits increased by $759.4 million to $50.7 billion at June 30, 2025[179]. - Total liquid assets amounted to $5,355,785 thousand as of June 30, 2025, compared to $5,505,586 thousand at December 31, 2024, representing a decrease in cash liquidity[269]. Loan Portfolio - Total loans charged-off amounted to $42.071 million for the second quarter of 2025, with commercial and industrial loans contributing $25.189 million and commercial real estate loans contributing $14.623 million[315]. - As of June 30, 2025, the total loan portfolio increased by $734.3 million, or 6.0%, to $49.4 billion from March 31, 2025, primarily due to organic growth in commercial and industrial loans[287]. - Commercial and industrial loans grew by $719.8 million, or 28.4% on an annualized basis, reaching $10.9 billion at June 30, 2025, driven by a strategic focus on organic growth[288]. - Residential mortgage loans increased by $73.6 million to $5.7 billion at June 30, 2025, with new loan originations totaling $204.1 million for the second quarter 2025[291]. Credit Quality - The allowance for credit losses for loans was $594.0 million, or 1.20% of total loans, with expectations to remain between 1.20% and 1.25% through December 31, 2025[169]. - Non-accrual loans totaled $354.4 million, or 0.72% of total loans, with total accruing past due loans increasing to $199.2 million, or 0.40% of total loans[169]. - Non-performing assets (NPAs) increased by $4.6 million to $360.8 million at June 30, 2025, with NPAs as a percentage of total loans remaining unchanged at 0.73%[296]. - The allowance for loan losses as a percentage of non-accrual loans was 163.53% at June 30, 2025[306]. Income and Expenses - Net interest income increased by $30.7 million, primarily due to lower interest rates on deposit products in Q2 2025[173]. - Non-interest income rose by $11.4 million, driven by higher service charges, capital markets income, and bank-owned life insurance income[173]. - Non-interest expense totaled $284.1 million for the three months ended June 30, 2025, an increase of $6.6 million from $277.5 million in the same period in 2024[214]. - Salary and employee benefits expense increased by $4.6 million for the three months ended June 30, 2025, compared to the same period in 2024, mainly due to annual salary merit increases[213]. Capital and Ratios - The total risk-based capital ratio was 13.67% at June 30, 2025, down from 13.91% at March 31, 2025, due to the early redemption of subordinated notes[170]. - The common equity Tier 1 capital to risk-weighted assets ratio was maintained above the required 4.5% as of June 30, 2025[322]. - Valley's total risk-based capital ratio decreased to 13.67% as of June 30, 2025, down from 13.87% at December 31, 2024, due to the early redemption of $115 million of subordinated notes[323]. - Valley's Tier 1 Risk-based Capital was $5,723,767, with a ratio of 11.57% as of June 30, 2025, compared to $5,584,699 and 11.55% at December 31, 2024[323]. Market Conditions - Real GDP increased at an estimated annual rate of 3.0% in the second quarter of 2025, with inflation rising to 2.7% compared to 2.4% in the first quarter[172]. - Moody's Baseline forecast at June 30, 2025 included a GDP expansion of 0.6 percent in Q3 2025 and an unemployment rate of 4.3 percent[313]. - The inflation rate is projected to grow from 2.7 percent in June 30, 2025, declining to near 2.0 percent in early 2027[313]. Strategic Focus - The company continues to diversify its loan portfolio by reducing new originations of certain types of commercial real estate lending[294]. - The company anticipates total loan growth for 2025 to be approximately 3%, reflecting competitive pressures and customer demand[294]. - The company anticipates net interest income growth of approximately 8% to 10% for the full year 2025, down from previous guidance of 9% to 12%[196].

Financial Performance - Net income for Q2 2025 was $133.2 million, or $0.22 per diluted share, up from $106.1 million in Q1 2025 and $70.4 million in Q2 2024[1]. - Net income available to common shareholders for Q2 2025 was $126.219 million, representing a 27.4% increase from $99.103 million in Q1 2025 and a 90.5% increase from $66.316 million in Q2 2024[25]. - Net income, as reported (GAAP), for Q2 2025 was $133,167,000, compared to $106,058,000 in Q1 2025, reflecting a 25.6% growth[36]. - Adjusted net income available to common shareholders for Q2 2025 was $127,467,000, up from $99,111,000 in Q1 2025, representing a 28.5% increase[36]. - Net income for the three months ended June 30, 2025, was $133,167 thousand, compared to $70,424 thousand for the same period in 2024, reflecting an increase of 89.2%[42]. Revenue and Income Sources - Net interest income on a tax equivalent basis rose to $433.7 million, an increase of $12.3 million from Q1 2025 and $30.7 million from Q2 2024[6]. - Non-interest income increased by $4.3 million to $62.6 million in Q2 2025, primarily due to higher capital markets income and service charges[4]. - Total revenue for the first half of 2025 was $973.411 million, an increase of 7.2% compared to $907.861 million in the same period of 2024[25]. - Non-interest income totaled $62,604 thousand for the three months ended June 30, 2025, compared to $51,213 thousand for the same period in 2024, a rise of 22.3%[42]. Loans and Credit Quality - Total loans increased by $734.3 million, or 6.0% annualized, to $49.4 billion at June 30, 2025, driven by a $719.8 million increase in commercial and industrial loans[3]. - The allowance for credit losses for loans was $594.0 million, representing 1.20% of total loans at June 30, 2025[4]. - Non-accrual loans totaled $354.4 million, or 0.72% of total loans, at June 30, 2025, showing a slight increase from the previous quarter[12]. - Total accruing past due loans increased to $199.2 million, or 0.40% of total loans, at June 30, 2025, up from $51.7 million in the prior quarter[13]. - Net loan charge-offs totaled $37.8 million for the second quarter of 2025, down from $41.9 million in the first quarter of 2025[15]. - The provision for credit losses for loans was $37.795 million for the three months ended June 30, 2025, down from $62,675 in the previous quarter[29]. Deposits and Assets - Total deposits increased by $759.4 million to $50.7 billion at June 30, 2025, with time deposits rising by $962.9 million[10]. - Deposits increased to $50.725 billion as of June 30, 2025, compared to $49.966 billion as of March 31, 2025[27]. - Total assets (GAAP) as of June 30, 2025, were $62,705,358,000, up from $61,865,655,000 as of March 31, 2025[40]. - Total assets increased to $62.11 billion as of June 30, 2025, compared to $61.50 billion on March 31, 2025, reflecting a growth of 1.0%[43]. Efficiency and Ratios - The efficiency ratio improved to 55.20% in Q2 2025, compared to 55.87% in Q1 2025 and 59.62% in Q2 2024[8]. - The annualized return on average assets (ROA) was 0.86% and return on equity (ROE) was 7.08% for Q2 2025[8]. - The net interest margin for Q2 2025 improved to 3.01%, compared to 2.95% in Q1 2025 and 2.83% in Q2 2024[25]. - The annualized ratio of total net charge-offs to total average loans for June 2025 is 0.31%, compared to 0.34% in March 2025[29]. Shareholder Equity - Shareholders' equity rose to $7.575 billion as of June 30, 2025, from $7.500 billion as of March 31, 2025[27]. - The company reported a total shareholders' equity of $7,575,421 thousand as of June 30, 2025, compared to $7,435,127 thousand at December 31, 2024, an increase of 1.89%[41]. - Tangible book value per common share (non-GAAP) increased to $9.35 in Q2 2025 from $9.21 in Q1 2025[40].

Financial Performance - The company's net income for Q1 2025 was $106.1 million, or $0.18 per diluted common share, compared to $96.3 million, or $0.18 per diluted common share, for Q1 2024, reflecting a $9.8 million increase[167]. - Net income for the first quarter of 2025 was reported at $106.1 million, an increase from $96.3 million in the same period of 2024[185]. - Adjusted net income for Q1 2025 was $106,066,000, an increase from $99,448,000 in Q1 2024, resulting in an annualized return on average shareholders' equity of 5.69% compared to 5.91% in the prior year[188]. - Income before income taxes for the Consumer Banking segment increased by $25.7 million to $37.3 million for Q1 2025, mainly due to higher net interest income and a lower provision for loan losses[225]. - Income before income taxes for Commercial Banking decreased by $45.1 million to $104.2 million for Q1 2025, attributed to lower net interest income and a higher provision for credit losses[230]. Asset and Loan Management - As of March 31, 2025, the company reported total assets of approximately $61.9 billion, total net loans of $48.1 billion, total deposits of $50.0 billion, and total shareholders' equity of $7.5 billion[164]. - Total accruing past due loans decreased to $51.7 million, or 0.11% of total loans, from $99.2 million, or 0.20% at the end of 2024, showing improved credit quality[166]. - Total loans decreased by $142.6 million, or 1.2%, to $48.7 billion at March 31, 2025, primarily due to normal repayment activity and selective originations in the commercial real estate loan portfolio[267]. - Commercial and industrial loans increased by $218.8 million, or 8.8% on an annualized basis, to $10.2 billion at March 31, 2025, reflecting a strategic focus on growth in this category[269]. - Residential mortgage loans totaled $5.6 billion at March 31, 2025, with new originations of $132.8 million for the first quarter 2025, down from $182.0 million in the fourth quarter 2024[272]. Credit Quality and Losses - The allowance for credit losses for loans increased to $594.1 million, or 1.22% of total loans, from $573.3 million, or 1.17% at the end of 2024, with expectations to reach approximately 1.25% by December 31, 2025[166]. - Provision for credit losses rose by $17.5 million, attributed to higher reserves for commercial real estate loans and significant growth in commercial and industrial loans[173]. - Total net loan charge-offs for Q1 2025 were $41.9 million, a decrease from $98.3 million in Q4 2024 and $23.6 million in Q1 2024[296]. - The provision for credit losses for loans was $62.7 million in Q1 2025, compared to $107.0 million in Q4 2024 and $45.3 million in Q1 2024[298]. - Non-performing assets (NPAs) decreased by $17.1 million to $356.2 million at March 31, 2025, compared to December 31, 2024, primarily due to lower non-accrual commercial and industrial loans and a decrease in OREO[278]. Capital and Liquidity - The company's total risk-based capital ratio was 13.91% as of March 31, 2025, compared to 13.87% at the end of 2024, indicating a stable capital position[166]. - Valley exceeded all capital adequacy requirements as of March 31, 2025, maintaining a common equity Tier 1 capital ratio above the required 4.5%[302]. - As of March 31, 2025, Valley's total risk-based capital was $6,775,675 thousand, representing a ratio of 13.91%, exceeding the minimum requirement of 10.50%[303]. - The bank's loans to deposits ratio was 97.4% as of March 31, 2025, compared to 97.5% at the end of 2024, indicating stable liquidity management[246]. - Total liquid assets amounted to $5.14 billion as of March 31, 2025, representing 9.1% of interest-earning assets, down from 9.6% as of December 31, 2024[247]. Interest Income and Expenses - Net interest income increased by $26.6 million, primarily due to lower interest rates on deposit products and additional income from investment securities[173]. - Net interest margin on a tax-equivalent basis for Q1 2025 was 2.96%, up 4 basis points from Q4 2024 and 17 basis points from Q1 2024[194]. - Average interest-earning assets increased by $272.9 million to $56.9 billion in Q1 2025 compared to Q1 2024, primarily due to a $2.0 billion increase in average taxable investments[192]. - Non-interest expense decreased by $3.7 million, mainly from reductions in technology and equipment expenses, offset by higher amortization of tax credit investments[173]. - The interest rate spread for the three months ended March 31, 2025, was 1.99%, an increase from 1.67% in the same period of 2024[207]. Economic Environment - The U.S. GDP contracted at an estimated annual rate of 0.3% in Q1 2025, down from a 2.5% increase in Q4 2024, influenced by increased imports and reduced government spending[169]. - The Federal Reserve lowered the target range for the federal funds rate to 4.25% - 4.50% and indicated potential rate cuts in 2025, reflecting ongoing economic uncertainty[170]. - The expected GDP expansion is projected at 1.7% in the second quarter of 2025, with unemployment expected to be around 4.0%[294]. - Inflation was recorded at 2.4% as of March 31, 2025, driven by elevated shelter inflation, and is expected to reach 2.7% by the end of 2025[294].

Financial Performance - Net income for Q1 2025 was $106.1 million, or $0.18 per diluted share, compared to $115.7 million, or $0.20 per diluted share in Q4 2024[1] - Total revenue for Q1 2025 reached $478,399,000, up 0.5% from $474,179,000 in Q4 2024, and up 5.2% from $454,963,000 in Q1 2024[27] - Net income available to common shareholders for Q1 2025 was $99,103,000, down 8.1% from $108,686,000 in Q4 2024, but up 7.5% from $92,161,000 in Q1 2024[27] - Adjusted net income for Q1 2025 was $106,066,000, up 40.0% from $75,714,000 in Q4 2024[44] - Basic earnings per share, as adjusted, rose to $0.18 for the three months ended March 31, 2025, compared to $0.13 in the previous quarter, an increase of 38.5%[41] Loan and Credit Quality - Total loans decreased by $142.6 million, or 1.2% annualized, to $48.7 billion as of March 31, 2025[9] - The allowance for credit losses for loans totaled $594.1 million, representing 1.22% of total loans as of March 31, 2025[4] - Non-accrual loans decreased to $346.5 million, or 0.71% of total loans, from $359.5 million, or 0.74% at the end of Q4 2024[12] - The provision for credit losses for loans was $62.7 million in Q1 2025, down from $107.0 million in Q4 2024[4] - Net loan charge-offs totaled $41.9 million for the first quarter of 2025, a decrease from $98.3 million in the fourth quarter of 2024[17] Deposits and Funding - Non-interest bearing deposits increased by $199.9 million to $11.6 billion, driven by higher inflows of commercial customer deposits[10] - Total actual deposit balances decreased by $110.0 million to $50.0 billion as of March 31, 2025, primarily due to a decrease in indirect customer deposits[10] - Deposits as of March 31, 2025, totaled $49,965,844,000, down from $50,075,857,000 in Q4 2024[29] Efficiency and Profitability - The efficiency ratio improved to 55.87% in Q1 2025, compared to 57.21% in Q4 2024[8] - The net interest margin for Q1 2025 was 2.95%, up from 2.91% in Q4 2024, reflecting improved interest income generation[27] - Total non-interest expense for Q1 2025 was $276,618,000, slightly down from $278,582,000 in Q4 2024[47] Asset Quality - Total non-performing assets decreased to $356,219 thousand as of March 31, 2025, down from $373,329 thousand on December 31, 2024, a reduction of 4.4%[33] - The allowance for losses on loans as a percentage of non-accrual loans was 166.89% as of March 31, 2025, indicating strong coverage for potential losses[33] - Total accruing past due loans decreased to $51,697 thousand as of March 31, 2025, from $99,194 thousand in December 31, 2024, representing a decline of 47.9%[33] Capital and Shareholder Equity - Valley National Bancorp's total risk-based capital ratio was 13.91% as of March 31, 2025, slightly up from 13.87% at December 31, 2024[19] - The book value per common share increased to $12.76 as of March 31, 2025, compared to $12.67 in Q4 2024, indicating a strengthening of shareholder equity[29] - Tangible book value per common share increased to $9.21 in Q1 2025 from $9.10 in Q4 2024[44] Shareholder Metrics - The annualized return on average assets for Q1 2025 was 0.69%, a decrease from 0.74% in Q4 2024, but an increase from 0.63% in Q1 2024[27] - Annualized return on average shareholders' equity increased to 5.69% in Q1 2025 from 4.17% in Q4 2024[44] - The average number of shares outstanding increased to 559,613,272 for the three months ended March 31, 2025, compared to 536,159,463 in the previous quarter, an increase of 4.4%[41]

Financial Performance - Net income available to common shareholders was $358.90 million in 2024, compared to $482.38 million in 2023, reflecting a decrease of approximately 25.7%[450]. - Net income for 2024 decreased to $380,271, down 23.7% from $498,511 in 2023[452]. - Total comprehensive income for 2024 was $371,393, a decline of 28.0% compared to $516,057 in 2023[452]. - Earnings per common share decreased to $0.70 in 2024 from $0.95 in 2023, a decline of approximately 26.3%[450]. - Basic earnings per common share for 2024 was $0.70, down from $0.95 in 2023 and $1.14 in 2022, reflecting a decline of 26.3% year-over-year[522]. - Diluted earnings per common share for 2024 was $0.69, unchanged from $0.95 in 2023 and $1.14 in 2022[522]. - Net interest income after provision for credit losses decreased to $1.32 billion in 2024, down from $1.62 billion in 2023, a decline of about 18.3%[450]. - Non-interest income totaled $224.50 million in 2024, slightly down from $225.73 million in 2023, a decrease of about 0.5%[450]. - The provision for credit losses for loans was $309.39 million in 2024, significantly higher than $45.63 million in 2023, indicating an increase of approximately 577.5%[450]. Assets and Liabilities - As of December 31, 2024, Valley National Bancorp had 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]. - The company's total liabilities increased to $55.06 billion in 2024, compared to $54.23 billion in 2023, reflecting a growth of about 1.5%[448]. - Total deposits rose to $50.08 billion in 2024, an increase from $49.24 billion in 2023, marking a growth of about 1.7%[448]. - Cash and cash equivalents at the end of 2024 increased to $1,890,125,000 from $891,225,000 in 2023, marking a significant increase of 112%[457]. - The balance of total shareholders' equity increased to $7,435,127 by December 31, 2024, from $6,701,391 in 2023[453]. Loan Portfolio - The total loan portfolio was $48.8 billion, with commercial and industrial loans and owner-occupied commercial real estate loans being a focus for growth[41]. - Commercial and industrial loans totaled approximately $9.9 billion, representing 20.4% of the total loan portfolio[29]. - Commercial real estate and construction loans totaled $29.6 billion, accounting for 60.7% of the total loan portfolio[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]. - Approximately 73% of Valley's gross loans, totaling $48.8 billion, consisted of commercial real estate, residential mortgage, and home equity loans as of December 31, 2024[41]. Credit Quality and Risk Management - The allowance for credit losses (ACL) consists of the allowance for loan losses and unfunded loan commitments, with estimates based on relevant information about past events, current conditions, and reasonable forecasts[60]. - The allowance for credit losses is estimated using a discounted cash flow model, reflecting the company's proactive approach to managing credit risk[471]. - Valley uses the CECL methodology to estimate an Allowance for Credit Losses (ACL) for loans, which is deducted from the amortized cost basis to present the net amount expected to be collected[478]. - The ACL for loans includes a collective reserve component for estimated lifetime expected credit losses and an individually evaluated reserve component for loans that do not share common risk characteristics[479]. - Specific reserves are measured for individual loans that do not share common risk characteristics, based on the fair value of collateral for collateral-dependent loans[485]. - Loans rated as "loss" are charged off when they are 90 to 120 days past due, with residential loans charged off at 120 days past due[488]. Regulatory Environment - Valley is subject to extensive regulation and supervision, with increased scrutiny expected due to recent bank failures and regulatory changes[81]. - The minimum capital ratios under Basel III require a Common Equity Tier 1 (CET1) ratio of at least 7.0%, Tier 1 capital ratio of at least 8.5%, and total capital ratio of at least 10.5%[89]. - As of December 31, 2024, the Bank's capital ratios were above the minimum levels required to be considered "well capitalized" under prompt corrective action regulations[96]. - Valley is required to maintain a capital conservation buffer of 2.5% on top of the minimum risk-weighted asset ratios[89]. - The Bank must submit resolution plans to the FDIC every three years due to its total consolidated assets exceeding $50 billion[97]. - Valley continues to conduct its own stress testing despite being exempt from the formal requirements under the EGRRCPA[101]. Employee and Corporate Culture - The voluntary turnover rate for Valley's employees was 13.5 percent in 2024, with an average tenure of 7.1 years[66]. - Valley's employee assistance program was enhanced to provide more mental health access to associates and their families at no cost, promoting overall well-being[69]. - The company maintains a competitive 401(k) plan with a company match, supporting financial wellness for employees[69]. - Valley's inclusive culture aims to leverage diverse perspectives, enhancing service quality to customers and communities[67]. - Valley's human capital management focuses on attracting, developing, and retaining key talent, crucial for long-term success[71]. Market Position and Strategy - 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]. - Valley continues to enhance its online and mobile banking products to compete effectively in the Commercial and Consumer Banking segments[25]. - The company modestly expanded its indirect auto loan network into Georgia during 2024[37]. Changes in Financial Regulations - The Federal Reserve's proposed rule could lower the maximum interchange fee for large debit card issuers from 21 cents to 14.4 cents, impacting Valley's revenue[100]. - The Dodd-Frank Act's Durbin Amendment imposes a maximum permissible interchange fee for banks with over $10 billion in assets, which applies to Valley[99]. - The CFPB issued a final rule that amends Regulation Z, impacting overdraft credit extensions for financial institutions with more than $10 billion in assets, effective October 1, 2025[118]. - The Bank is subject to federal consumer protection statutes and regulations, including the Truth-In-Lending Act and Regulation Z[120].

[Executive Summary & Q4 2024 Results Overview](index=1&type=section&id=1.0%20Executive%20Summary%20%26%20Q4%202024%20Results%20Overview) Valley National Bancorp reported increased net income in Q4 2024, alongside a decrease in adjusted net income, with the CEO highlighting strategic balance sheet improvements and anticipated 2025 profitability growth [Fourth Quarter 2024 Financial Performance](index=1&type=section&id=1.1%20Fourth%20Quarter%202024%20Financial%20Performance) Valley National Bancorp achieved net income growth in Q4 2024 compared to Q3 2024 and Q4 2023, though adjusted net income decreased year-over-year Net Income vs. Adjusted Net Income | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | Q4 2023 (in millions) | | :------------------- | :--------------- | :--------------- | :--------------- | | **Net Income** | $115.7 | $97.9 | $71.6 | | Diluted EPS | $0.20 | $0.18 | $0.13 | | **Adjusted Net Income** | $75.7 | $96.8 | $116.3 | | Adjusted Diluted EPS | $0.13 | $0.18 | $0.22 | [CEO Commentary and Strategic Outlook](index=1&type=section&id=1.2%20CEO%20Commentary%20and%20Strategic%20Outlook) CEO Ira Robbins expressed satisfaction with 2024 balance sheet initiatives, strengthening the company's financial position and anticipating improved 2025 profitability - The company significantly strengthened its financial position through incremental capital, an improved funding base, higher loan loss reserve coverage, and enhanced loan diversity[3](index=3&type=chunk) - These efforts are expected to drive improved profitability in 2025[3](index=3&type=chunk) - Low-cost core deposit growth and a flattening yield curve should continue to support net interest margin expansion throughout 2025[3](index=3&type=chunk) [Key Financial Highlights (Q4 2024)](index=1&type=section&id=2.0%20Key%20Financial%20Highlights%20(Q4%202024)) This section highlights Q4 2024 performance in net interest income, loan portfolio dynamics, credit quality, and deposit trends [Net Interest Income and Margin](index=1&type=section&id=2.1%20Net%20Interest%20Income%20and%20Margin) Tax-equivalent net interest income increased to $424.3 million in Q4 2024, with the tax-equivalent net interest margin rising to 2.92% due to lower deposit costs and higher securities yields Tax-Equivalent Net Interest Income and Margin | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | Q4 2023 (in millions) | | :------------------- | :--------------- | :--------------- | :--------------- | | Net Interest Income (FTE) | $424.3 | $411.8 | $398.6 | | Net Interest Margin (FTE) | 2.92% | 2.86% | 2.82% | - Total average deposit costs decreased by **31 basis points**[4](index=4&type=chunk) [Loan Portfolio](index=1&type=section&id=2.2%20Loan%20Portfolio) Total loans decreased to $48.8 billion as of December 31, 2024, primarily due to CRE loan repayments and sales, while C&I and consumer loans grew Loan Portfolio Changes | Metric | Dec 31, 2024 (in billions) | Sep 30, 2024 (in billions) | Change (Annualized) | | :------------------- | :--------------- | :--------------- | :--------------- | | Total Loans | $48.8 | $49.355 | -4.50% | | C&I Loan Growth (in millions) | $132.1 | - | - | | Consumer Loan Growth (in millions) | $121.1 | - | - | | CRE Loan Sales (in millions) | $151 | - | - | | Residential Mortgage Loan Sales (in millions) | $76 | - | - | [Loans Held for Sale](index=3&type=section&id=2.3%20Loans%20Held%20for%20Sale) Loans held for sale significantly decreased by $817.5 million to $25.7 million, driven by the sale of performing commercial real estate loans in Q4 Loans Held for Sale | Metric | Dec 31, 2024 (in millions) | Sep 30, 2024 (in millions) | | :------------------- | :--------------- | :--------------- | | Loans Held for Sale | $25.7 | $843.2 | | Change (in millions) | -$817.5 | - | [CRE Loan Concentration](index=3&type=section&id=2.4%20CRE%20Loan%20Concentration) CRE loan concentration decreased to approximately 362% of total risk-weighted capital as of December 31, 2024, reflecting loan sales, repayments, and a common stock offering CRE Loan Concentration | Metric | Dec 31, 2024 | Sep 30, 2024 | | :------------------- | :--------------- | :--------------- | | CRE Loan Concentration | 362% | 421% | | Change | -59 percentage points | - | [Allowance and Provision for Credit Losses for Loans](index=3&type=section&id=2.5%20Allowance%20and%20Provision%20for%20Credit%20Losses%20for%20Loans) The allowance for credit losses for loans increased to $573.3 million (1.17% of total loans) as of December 31, 2024, with a Q4 provision of $107.0 million reflecting charge-offs and increased reserves Allowance and Provision for Credit Losses for Loans | Metric | Dec 31, 2024 (in millions) | Sep 30, 2024 (in millions) | Q4 2024 (in millions) | Q3 2024 (in millions) | Q4 2023 (in millions) | | :------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Allowance for Credit Losses for Loans | $573.3 | $564.7 | - | - | - | | % of Total Loans | 1.17% | 1.14% | - | - | - | | Provision for Credit Losses for Loans | - | - | $107.0 | $75.0 | $20.7 | [Credit Quality](index=3&type=section&id=2.6%20Credit%20Quality) Accruing past due loans decreased to $99.2 million (0.20% of total loans), while non-accrual loans increased to $359.5 million (0.74% of total loans), with net loan charge-offs rising to $98.3 million in Q4 Credit Quality Metrics | Metric | Dec 31, 2024 (in millions) | Sep 30, 2024 (in millions) | Q4 2024 (in millions) | Q3 2024 (in millions) | Q4 2023 (in millions) | | :------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Accruing Past Due Loans | $99.2 | $174.7 | - | - | - | | % of Total Loans | 0.20% | 0.35% | - | - | - | | Non-Accrual Loans | $359.5 | $296.3 | - | - | - | | % of Total Loans | 0.74% | 0.60% | - | - | - | | Net Loan Charge-offs | - | - | $98.3 | $42.9 | $17.5 | [Deposits](index=3&type=section&id=2.7%20Deposits) Non-interest bearing deposits increased by $274.9 million to $11.4 billion, but total deposits decreased by $320.1 million to $50.1 billion due to a reduction in indirect customer deposits Deposit Changes | Metric | Dec 31, 2024 (in billions) | Sep 30, 2024 (in billions) | | :------------------- | :--------------- | :--------------- | | Non-Interest Bearing Deposits | $11.4 | $11.158 | | Total Deposits | $50.1 | $50.4 | | Direct Customer Deposits Increase (in billions) | $1.7 | - | | Indirect Customer Deposits Decrease (in billions) | $2.0 | - | [Detailed Financial Performance Analysis](index=4&type=section&id=3.0%20Detailed%20Financial%20Performance%20Analysis) This section provides an in-depth analysis of Q4 2024 financial performance, covering net interest income, non-interest income and expense, income tax, and key performance ratios [Net Interest Income and Margin Analysis](index=4&type=section&id=3.1%20Net%20Interest%20Income%20and%20Margin%20Analysis) Q4 2024 tax-equivalent net interest income grew to $424.3 million, with net interest margin expanding to 2.92%, primarily driven by a 31 basis point decrease in total average deposit costs Net Interest Income and Margin (FTE) | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | Q4 2023 (in millions) | | :------------------- | :--------------- | :--------------- | :--------------- | | Net Interest Income (FTE) | $424.3 | $411.8 | $398.6 | | Net Interest Margin (FTE) | 2.92% | 2.86% | 2.82% | | Total Average Deposit Costs | 2.94% | 3.25% | 3.13% | | Average Earning Asset Yield | 5.75% | 5.98% | 5.80% | [Non-Interest Income](index=4&type=section&id=3.2%20Non-Interest%20Income) Non-interest income decreased by $9.5 million quarter-over-quarter to $51.2 million in Q4 2024, mainly due to the absence of a prior litigation settlement and increased net losses on loan sales Non-Interest Income Changes | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | | :------------------- | :--------------- | :--------------- | | Non-Interest Income | $51.2 | $60.7 | | Litigation Settlement Income (Q3) | - | $7.3 | | Net Loss on Loan Sales | $4.7 | $3.6 | [Non-Interest Expense](index=4&type=section&id=3.3%20Non-Interest%20Expense) Non-interest expense increased by $9.1 million quarter-over-quarter to $278.6 million in Q4 2024, driven by higher professional, legal, technology, and advertising expenses reflecting operational enhancements Non-Interest Expense Changes | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | | :------------------- | :--------------- | :--------------- | | Non-Interest Expense | $278.6 | $269.5 | | Professional and Legal Fees Increase (in millions) | $7.7 | - | | Technology, Furniture, and Equipment Expenses Increase (in millions) | $6.5 | - | | Advertising Expenses Increase (in millions) | $2.4 | - | [Income Tax Expense](index=4&type=section&id=3.4%20Income%20Tax%20Expense) The company recognized an income tax benefit of $26.7 million in Q4 2024, resulting in a negative effective tax rate of 29.9%, primarily due to a $46.4 million reduction in uncertain tax positions Income Tax Expense and Effective Tax Rate | Metric | Q4 2024 (in millions) | Q3 2024 (in millions) | | :------------------- | :--------------- | :--------------- | | Income Tax (Benefit) Expense | $(26.7) | $28.8 | | Effective Tax Rate | -29.9% | 22.7% | | Uncertain Tax Position Reduction (in millions) | $46.4 | - | [Efficiency Ratio](index=4&type=section&id=3.5%20Efficiency%20Ratio) The efficiency ratio for Q4 2024 was 57.21%, an increase from Q3 2024 but an improvement compared to Q4 2023 Efficiency Ratio | Metric | Q4 2024 | Q3 2024 | Q4 2023 | | :------------------- | :--------------- | :--------------- | :--------------- | | Efficiency Ratio | 57.21% | 56.13% | 60.70% | [Performance Ratios](index=4&type=section&id=3.6%20Performance%20Ratios) Q4 2024 annualized ROA, ROE, and tangible common equity return were 0.74%, 6.38%, and 8.81% respectively, with adjusted figures at 0.48%, 4.17%, and 5.76% Performance Ratios | Metric | Q4 2024 | Q4 2024 (Adjusted) | | :------------------- | :--------------- | :--------------- | | Annualized Return on Average Assets (ROA) | 0.74% | 0.48% | | Annualized Return on Average Equity (ROE) | 6.38% | 4.17% | | Annualized Return on Average Tangible Common Equity | 8.81% | 5.76% | [Loans, Deposits, and Other Borrowings](index=5&type=section&id=4.0%20Loans%2C%20Deposits%2C%20and%20Other%20Borrowings) This section details the changes in the company's loan portfolio, deposit structure, and other borrowings during Q4 2024 [Loans](index=5&type=section&id=4.1%20Loans) Total loans decreased by $555.6 million (4.5% annualized) to $48.8 billion as of December 31, 2024, driven by reductions in CRE and residential mortgage loans, partially offset by C&I and consumer loan growth Loan Portfolio Changes (Q4 2024) | Loan Category | Balance as of Dec 31, 2024 (in billions) | Quarter-over-Quarter Change (in millions) | | :------------------- | :------------------- | :------------------- | | Total Loans | $48.8 | -$555.6 | | C&I Loans | $9.9 | +$132.1 | | Total Commercial Real Estate Loans | $29.6 | -$757.2 | | Residential Mortgage Loans | $5.6 | -$51.6 | | Auto Loans | $1.9 | +$77.3 | | Other Consumer Loans | $1.1 | +$20.5 | - The company continues to be highly selective in new commercial real estate loan originations to reduce concentration in non-owner occupied and multi-family loan categories[10](index=10&type=chunk) [Deposits](index=5&type=section&id=4.2%20Deposits) Total deposits decreased by $320.1 million to $50.1 billion as of December 31, 2024, primarily due to a reduction in time deposits from indirect customers, despite growth in non-interest bearing and other core deposits Deposit Structure Changes (Q4 2024) | Deposit Category | Balance as of Dec 31, 2024 (in billions) | Balance as of Sep 30, 2024 (in billions) | % of Total Deposits (Dec 31, 2024) | | :------------------- | :------------------- | :------------------- | :------------------- | | Total Deposits | $50.1 | $50.4 | - | | Non-Interest Bearing Deposits | $11.4 | $11.158 | 23% | | Savings, NOW, and Money Market Deposits | $26.3 | $25.017 | 53% | | Time Deposits | $12.3 | $14.233 | 25% | | Indirect Customer Deposits | $7.1 | $9.1 | - | [Other Borrowings](index=6&type=section&id=4.3%20Other%20Borrowings) Short-term borrowings slightly increased to $72.7 million, while long-term borrowings decreased by $100.2 million to $3.2 billion, mainly due to FHLB advance maturities and repayments Other Borrowings Changes (Q4 2024) | Borrowing Category | Balance as of Dec 31, 2024 (in millions) | Balance as of Sep 30, 2024 (in millions) | | :------------------- | :------------------- | :------------------- | | Short-Term Borrowings | $72.7 | $58.2 | | Long-Term Borrowings (in billions) | $3.2 | $3.3 | [Credit Quality](index=6&type=section&id=5.0%20Credit%20Quality) This section analyzes the company's credit quality, focusing on non-performing assets, accruing past due loans, and the allowance for credit losses [Non-Performing Assets (NPAs)](index=6&type=section&id=5.1%20Non-Performing%20Assets%20(NPAs)) Total non-performing assets increased by $68.2 million to $373.3 million as of December 31, 2024, primarily driven by a rise in non-accrual loans across commercial and residential categories Non-Performing Assets Changes (Q4 2024) | Metric | Dec 31, 2024 (in millions) | Sep 30, 2024 (in millions) | | :------------------- | :--------------- | :--------------- | | Total Non-Performing Assets | $373.3 | $305.1 | | Non-Accrual Loans | $359.5 | $296.3 | | % of Total Loans | 0.74% | 0.60% | | Non-Performing CRE Loans Increase (in millions) | $43.5 | - | | Non-Performing C&I Loans Increase (in millions) | $16.1 | - | | Other Real Estate Owned (OREO) (in millions) | $12.2 | $7.2 | [Accruing Past Due Loans](index=6&type=section&id=5.2%20Accruing%20Past%20Due%20Loans) Total accruing past due loans decreased by $75.5 million to $99.2 million (0.20% of total loans) as of December 31, 2024, mainly due to a reduction in 30-59 day past due commercial real estate loans Accruing Past Due Loans Changes (Q4 2024) | Days Past Due | Dec 31, 2024 (in millions) | Sep 30, 2024 (in millions) | | :------------------- | :--------------- | :--------------- | | Total Accruing Past Due Loans | $99.2 | $174.7 | | 30-59 Days Past Due | $57.1 | $115.1 | | 60-89 Days Past Due | $36.2 | $54.8 | | 90 Days or More Past Due | $5.9 | $4.8 | [Allowance for Credit Losses for Loans and Unfunded Commitments](index=7&type=section&id=5.3%20Allowance%20for%20Credit%20Losses%20for%20Loans%20and%20Unfunded%20Commitments) The allowance for credit losses for loans increased to $573.3 million (1.17% of total loans) as of December 31, 2024, with a Q4 provision of $107.0 million reflecting significant charge-offs and increased reserves Allowance for Credit Losses for Loans and Provision | Metric | Dec 31, 2024 (in millions) | Sep 30, 2024 (in millions) | Q4 2024 (in millions) | Q3 2024 (in millions) | Q4 2023 (in millions) | | :------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Allowance for Credit Losses for Loans, Beginning Balance | $573.3 | $564.7 | - | - | - | | Gross Loan Charge-offs | - | - | $103.7 | - | - | | Gross Loan Recoveries | - | - | $5.3 | - | - | | Net Charge-offs | - | - | $98.3 | $42.9 | $17.5 | | Provision for Credit Losses for Loans | - | - | $107.0 | $75.0 | $20.7 | | Allowance for Credit Losses for Loans, Ending Balance | $573.3 | $564.7 | - | - | - | | Allowance for Credit Losses for Loans as % of Total Loans | 1.17% | 1.14% | - | - | - | [Capital Adequacy](index=8&type=section&id=6.0%20Capital%20Adequacy) This section reviews the company's capital position, highlighting significant improvements in capital ratios due to a common stock offering [Capital Ratios](index=8&type=section&id=6.1%20Capital%20Ratios) Valley's capital ratios significantly improved as of December 31, 2024, with the total risk-based capital ratio reaching 13.87%, primarily driven by a $448.9 million common stock offering Capital Ratios Changes | Metric | Dec 31, 2024 | Sep 30, 2024 | | :------------------- | :--------------- | :--------------- | | Total Risk-Based Capital Ratio | 13.87% | 12.56% | | Tier 1 Capital Ratio | 11.55% | 10.29% | | Common Equity Tier 1 Capital Ratio | 10.82% | 9.57% | | Tier 1 Leverage Ratio | 9.16% | 8.40% | | Net Proceeds from Common Stock Offering (in millions) | $448.9 | - | [Corporate Information](index=8&type=section&id=7.0%20Corporate%20Information) This section provides details on investor relations, an overview of Valley National Bancorp, forward-looking statements, and shareholder contact information [Investor Relations](index=8&type=section&id=7.1%20Investor%20Relations) Valley will host an investor conference call on January 23, 2025, at 11:00 AM ET to discuss Q4 2024 earnings, with pre-registration and webcast options available - Investor conference call: **January 23, 2025, 11:00 AM (ET)**[21](index=21&type=chunk) - Webcast link: https://edge.media-server.com/[21](index=21&type=chunk) [About Valley National Bancorp](index=8&type=section&id=7.2%20About%20Valley%20National%20Bancorp) Valley National Bank, a subsidiary of Valley National Bancorp, is a regional bank with over $62 billion in assets, operating across multiple states to support individuals and businesses - Valley National Bank has **over $62 billion in assets**[22](index=22&type=chunk) - Operations span New Jersey, New York, Florida, Alabama, California, and Illinois[22](index=22&type=chunk) [Forward-Looking Statements and Risk Factors](index=8&type=section&id=7.3%20Forward-Looking%20Statements%20and%20Risk%20Factors) This report contains forward-looking statements subject to various risks and uncertainties, including market rates, macroeconomic conditions, regulatory changes, and credit quality, which may cause actual results to differ materially - Forward-looking statements involve risks and uncertainties, and actual results may differ materially from these statements[23](index=23&type=chunk) - Key risk factors include market interest rates, macroeconomic conditions, instability in the U.S. financial sector, negative public opinion, changes in regulatory policies, loss of low-cost funding sources, litigation, long-term decline in commercial real estate values, higher or lower than expected income tax expenses or rates, inability to grow customer deposits to match loan growth, significant changes in allowance for credit losses, need for supplemental debt or equity, technology-related costs, competitive challenges, cyberattacks, outcomes of regulatory examinations, and inability to pay dividends at current levels[24](index=24&type=chunk)[27](index=27&type=chunk) [Shareholder Relations Contact](index=20&type=section&id=7.4%20Shareholder%20Relations%20Contact) For report copies or inquiries, contact Tina Zarkadas, Assistant Vice President and Shareholder Relations Specialist, via phone or email - Contact: **Tina Zarkadas**, Assistant Vice President, Shareholder Relations Specialist[52](index=52&type=chunk) - Phone: **(973) 305-3380**; Email: **tzarkadas@valley.com**[52](index=52&type=chunk) [Consolidated Financial Highlights (Tables)](index=11&type=section&id=8.0%20Consolidated%20Financial%20Highlights%20(Tables)) This section presents comprehensive consolidated financial tables, including selected financial data, balance sheet items, loan categories, capital ratios, and credit loss allowances [Selected Financial Data](index=11&type=section&id=8.1%20Selected%20Financial%20Data) This table summarizes key financial data for Q4 2024, Q3 2024, Q4 2023, and full years 2024 and 2023, including net interest income, non-interest income, total revenue, net income, EPS, and various financial ratios Selected Financial Data | Metric | Three Months Ended Dec 31, 2024 (in thousands) | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Dec 31, 2023 (in thousands) | Year Ended Dec 31, 2024 (in thousands) | Year Ended Dec 31, 2023 (in thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | :--------------------- | | Net Interest Income - FTE | $424,277 | $411,812 | $398,581 | $1,633,920 | $1,670,972 | | Net Interest Income | $422,977 | $410,498 | $397,275 | $1,628,708 | $1,665,478 | | Non-Interest Income | $51,202 | $60,671 | $52,691 | $224,501 | $225,729 | | Total Revenue | $474,179 | $471,169 | $449,966 | $1,853,209 | $1,891,207 | | Non-Interest Expense | $278,582 | $269,471 | $340,421 | $1,105,860 | $1,162,691 | | Pre-Provision Net Revenue | $195,597 | $201,698 | $109,545 | $747,349 | $728,516 | | Provision for Credit Losses | $106,536 | $75,024 | $20,580 | $308,830 | $50,184 | | Income Tax (Benefit) Expense | $(26,650) | $28,818 | $17,411 | $58,248 | $179,821 | | Net Income | $115,711 | $97,856 | $71,554 | $380,271 | $498,511 | | Diluted EPS | $0.20 | $0.18 | $0.13 | $0.69 | $0.95 | | Net Interest Margin - FTE | 2.92% | 2.86% | 2.82% | 2.85% | 2.96% | | Annualized ROAA | 0.74% | 0.63% | 0.47% | 0.61% | 0.82% | | Efficiency Ratio | 57.21% | 56.13% | 60.70% | 57.98% | 56.62% | [Balance Sheet Items](index=12&type=section&id=8.2%20Balance%20Sheet%20Items) This table presents key balance sheet items as of Q4 2024, Q3 2024, Q2 2024, Q1 2024, and Q4 2023, including total assets, total loans, deposits, and shareholders' equity Balance Sheet Items | Metric | Dec 31, 2024 (in thousands) | Sep 30, 2024 (in thousands) | Jun 30, 2024 (in thousands) | Mar 31, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Assets | $62,491,691 | $62,092,332 | $62,058,974 | $61,000,188 | $60,934,974 | | Total Loans | $48,799,711 | $49,355,319 | $50,311,702 | $49,922,042 | $50,210,295 | | Deposits | $50,075,857 | $50,395,966 | $50,112,177 | $49,077,946 | $49,242,829 | | Shareholders' Equity | $7,435,127 | $6,972,380 | $6,737,737 | $6,727,139 | $6,701,391 | [Loans by Category](index=12&type=section&id=8.3%20Loans%20by%20Category) This table details the loan portfolio by category, including Commercial and Industrial, Commercial Real Estate, Residential Mortgage, and Consumer Loans, for Q4 2024, Q3 2024, Q2 2024, Q1 2024, and Q4 2023 Loans by Category | Loan Category | Dec 31, 2024 (in thousands) | Sep 30, 2024 (in thousands) | Jun 30, 2024 (in thousands) | Mar 31, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Commercial and Industrial | $9,931,400 | $9,799,287 | $9,479,147 | $9,104,193 | $9,230,543 | | Commercial Real Estate | $29,644,958 | $30,402,196 | $31,768,846 | $31,705,464 | $31,970,047 | | Residential Mortgage Loans | $5,632,516 | $5,684,079 | $5,627,113 | $5,618,355 | $5,569,010 | | Consumer Loans | $3,590,837 | $3,469,757 | $3,436,596 | $3,494,030 | $3,440,695 | | **Total Loans** | **$48,799,711** | **$49,355,319** | **$50,311,702** | **$49,922,042** | **$50,210,295** | [Capital Ratios](index=12&type=section&id=8.4%20Capital%20Ratios) This table provides various capital ratios as of Q4 2024, Q3 2024, Q2 2024, Q1 2024, and Q4 2023, including book value per share, tangible book value per share, and risk-weighted capital ratios Capital Ratios | Metric | Dec 31, 2024 | Sep 30, 2024 | Jun 30, 2024 | Mar 31, 2024 | Dec 31, 2023 | | :----------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Book Value Per Share | $12.67 | $13.00 | $12.82 | $12.81 | $12.79 | | Tangible Book Value Per Share | $9.10 | $9.06 | $8.87 | $8.84 | $8.79 | | Tangible Common Equity to Tangible Assets Ratio | 8.40% | 7.68% | 7.52% | 7.62% | 7.58% | | Tier 1 Leverage Capital | 9.16% | 8.40% | 8.19% | 8.20% | 8.16% | | Common Equity Tier 1 Capital | 10.82% | 9.57% | 9.55% | 9.34% | 9.29% | | Tier 1 Risk-Weighted Capital | 11.55% | 10.29% | 9.98% | 9.78% | 9.72% | | Total Risk-Weighted Capital | 13.87% | 12.56% | 12.17% | 11.88% | 11.76% | [Allowance for Credit Losses](index=13&type=section&id=8.5%20Allowance%20for%20Credit%20Losses) This table summarizes the allowance for credit losses for loans for Q4 2024, Q3 2024, Q4 2023, and full years 2024 and 2023, including beginning and ending balances, charge-offs, recoveries, net charge-offs, and provision for credit losses for loans Allowance for Credit Losses | Metric | Three Months Ended Dec 31, 2024 (in thousands) | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Dec 31, 2023 (in thousands) | Year Ended Dec 31, 2024 (in thousands) | Year Ended Dec 31, 2023 (in thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | :--------------------- | | Allowance for Credit Losses for Loans, Beginning Balance | $564,671 | $532,541 | $462,345 | $465,550 | $483,255 | | Gross Loan Charge-offs | $(103,652) | $(48,221) | $(22,635) | $(215,112) | $(75,453) | | Gross Loan Recoveries | $5,344 | $5,313 | $5,144 | $13,502 | $13,491 | | Net Charge-offs | $(98,308) | $(42,908) | $(17,491) | $(201,610) | $(61,962) | | Provision for Credit Losses for Loans | $106,965 | $75,038 | $20,696 | $309,388 | $45,625 | | Allowance for Credit Losses for Loans, Ending Balance | $573,328 | $564,671 | $465,550 | $573,328 | $465,550 | | Allowance for Credit Losses for Loans as % of Total Loans | 1.17% | 1.14% | 0.93% | 1.17% | 0.93% | [Asset Quality (Accruing Past Due & Non-Accrual Loans)](index=14&type=section&id=8.6%20Asset%20Quality%20(Accruing%20Past%20Due%20%26%20Non-Accrual%20Loans)) This table provides detailed asset quality metrics as of Q4 2024, Q3 2024, Q2 2024, Q1 2024, and Q4 2023, including accruing past due loans by delinquency stage and loan category, non-accrual loans by category, other real estate owned (OREO), and other repossessed assets Asset Quality | Metric | Dec 31, 2024 (in thousands) | Sep 30, 2024 (in thousands) | Jun 30, 2024 (in thousands) | Mar 31, 2024 (in thousands) | Dec 31, 2023 (in thousands) | | :----------------------------------- | :--------------- | :--------------- | :--------------- | :--------------- | :--------------- | | Total Accruing Past Due Loans | $99,194 | $174,696 | $72,395 | $74,388 | $91,626 | | Total Non-Accrual Loans | $359,498 | $296,319 | $303,279 | $287,292 | $291,871 | | Other Real Estate Owned (OREO) | $12,150 | $7,172 | $8,059 | $88 | $71 | | Other Repossessed Assets | $1,681 | $1,611 | $1,607 | $1,393 | $1,444 | | **Total Non-Performing Assets** | **$373,329** | **$305,102** | **$312,945** | **$288,773** | **$293,386** | | Non-Accrual Loans as % of Total Loans | 0.74% | 0.60% | 0.60% | 0.58% | 0.58% | [Non-GAAP Reconciliations to GAAP Financial Measures](index=15&type=section&id=8.7%20Non-GAAP%20Reconciliations%20to%20GAAP%20Financial%20Measures) This section provides reconciliation tables for various non-GAAP financial measures, such as adjusted net income and adjusted EPS, to the most directly comparable GAAP financial measures for quarterly and annual periods Adjusted Net Income Available to Common Shareholders (Non-GAAP) | Metric | Three Months Ended Dec 31, 2024 (in thousands) | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Dec 31, 2023 (in thousands) | Year Ended Dec 31, 2024 (in thousands) | Year Ended Dec 31, 2023 (in thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | :--------------------- | | Reported Net Income (GAAP) | $115,711 | $97,856 | $71,554 | $380,271 | $498,511 | | Total Non-GAAP Adjustments | $(37,477) | $(1,539) | $62,422 | $(32,923) | $75,817 | | Income Tax Adjustments | $(2,520) | $437 | $(17,679) | $(3,789) | $(20,057) | | Adjusted Net Income (Non-GAAP) | $75,714 | $96,754 | $116,297 | $343,559 | $554,271 | | Adjusted Net Income Available to Common Shareholders (Non-GAAP) | $68,689 | $90,637 | $112,193 | $322,190 | $538,136 | Adjusted Per Common Share Data (Non-GAAP) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended Sep 30, 2024 | Three Months Ended Dec 31, 2023 | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | :--------------------- | | Adjusted Basic EPS (Non-GAAP) | $0.13 | $0.18 | $0.22 | $0.62 | $1.06 | | Adjusted Diluted EPS (Non-GAAP) | $0.13 | $0.18 | $0.22 | $0.62 | $1.06 | Adjusted Annualized Return on Average Tangible Common Equity (Non-GAAP) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended Sep 30, 2024 | Three Months Ended Dec 31, 2023 | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | :--------------------- | | Adjusted Annualized Return on Average Tangible Common Equity (Non-GAAP) | 5.76% | 7.97% | 10.10% | 7.03% | 12.29% | Efficiency Ratio (Non-GAAP) | Metric | Three Months Ended Dec 31, 2024 | Three Months Ended Sep 30, 2024 | Three Months Ended Dec 31, 2023 | Year Ended Dec 31, 2024 | Year Ended Dec 31, 2023 | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | :--------------------- | :--------------------- | | Efficiency Ratio (Non-GAAP) | 57.21% | 56.13% | 60.70% | 57.98% | 56.62% | [Quarterly Analysis of Average Assets, Liabilities, Shareholders' Equity, and Net Interest Income on a Tax Equivalent Basis](index=20&type=section&id=8.8%20Quarterly%20Analysis%20of%20Average%20Assets%2C%20Liabilities%20and%20Shareholders%27%20Equity%20and%20Net%20Interest%20Income%20on%20a%20Tax%20Equivalent%20Basis) This table details the quarterly analysis of average balances, interest income/expense, and average rates for earning assets and interest-bearing liabilities, along with tax-equivalent net interest income and net interest margin, for Q4 2024, Q3 2024, and Q4 2023 Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and Net Interest Income on a Tax Equivalent Basis | Metric | Three Months Ended Dec 31, 2024 (in thousands) | Three Months Ended Sep 30, 2024 (in thousands) | Three Months Ended Dec 31, 2023 (in thousands) | | :----------------------------------- | :----------------------- | :----------------------- | :----------------------- | | Average Earning Assets | $58,214,783 | $57,651,650 | $56,469,468 | | Average Earning Asset Yield | 5.75% | 5.98% | 5.80% | | Average Interest-Bearing Liabilities | $42,765,949 | $42,656,956 | $40,753,313 | | Average Cost of Interest-Bearing Liabilities | 3.85% | 4.22% | 4.13% | | Net Interest Income/Margin (FTE) | $424,277 | $411,812 | $398,581 | | Net Interest Margin (FTE) | 2.92% | 2.86% | 2.82% |

Financial Performance - The company's net income for the third quarter 2024 was $97.9 million, or $0.18 per diluted common share, a decrease of $43.5 million compared to $141.3 million, or $0.27 per diluted common share, for the same quarter in 2023[183]. - Net income for Q3 2024 was reported at $97.856 million, a decrease of 30.7% compared to $141.346 million in Q3 2023[201]. - Adjusted net income for Q3 2024 was $96.754 million, down from $136.363 million in Q3 2023, reflecting a decline of 29%[202]. - Return on average assets for Q3 2024 was 0.63%, down from 0.92% in Q3 2023[201]. - Return on average shareholders' equity for Q3 2024 was 5.70%, compared to 8.56% in Q3 2023[201]. - Efficiency ratio for Q3 2024 was 56.13%, slightly improved from 56.72% in Q3 2023[205]. Asset and Loan Portfolio - As of September 30, 2024, the company reported total assets of approximately $62.1 billion, total net loans of $48.8 billion, total deposits of $50.4 billion, and total shareholders' equity of $7.0 billion[176]. - The total commercial real estate loans amounted to $30.4 billion, representing 61.6% of total loans, down from 63.2% at June 30, 2024, indicating a strategic reduction in commercial real estate loan concentration[181]. - The company aims to reduce its commercial real estate loan concentration ratio to approximately 400% and 375% by December 31, 2024, and 2025, respectively[181]. - Average loan balances increased by $106.1 million to $50.1 billion for Q3 2024, mainly due to organic loan growth[208]. - The total loan portfolio decreased by $956.4 million, or 7.6%, to $49.4 billion from June 30, 2024, primarily due to the transfer of $823.1 million of commercial real estate loans to loans held for sale[304]. Credit Quality and Allowance for Loan Losses - The company's allowance for loan losses included an $8.0 million qualitative reserve for estimated losses due to Hurricane Helene, with potential increases expected from Hurricane Milton[178]. - Allowance for Credit Losses (ACL) for loans increased to $564.7 million, representing 1.14% of total loans as of September 30, 2024, with projections to rise to approximately 1.20% and 1.25% by December 31, 2024, and 2025, respectively[184]. - The allowance for credit losses stood at $1.1 million, reflecting the company's proactive approach to managing credit risk[301]. - The total provision for credit losses remained elevated due to higher reserves allocated to commercial real estate loans and an $8.0 million qualitative reserve related to Hurricane Helene[336]. - The allowance for credit losses for loans as a percentage of total loans was 1.14% as of September 30, 2024, compared to 1.06% at June 30, 2024, and 0.92% at September 30, 2023[336]. Deposits and Funding - Total deposits increased by $283.8 million to $50.4 billion at September 30, 2024, driven by higher direct commercial customer deposits[194]. - Average deposits increased by $1.0 billion to $50.4 billion for the third quarter 2024 compared to the second quarter 2024[193]. - Cumulative deposit beta remained stable at 60% as of September 30, 2024, reflecting a modest increase in the cost of interest-bearing deposits[192]. - The loans to deposits ratio is 97.9%, down from 102.0% at December 31, 2023[281]. Interest Income and Expense - Net interest income for Q3 2024 was $411.8 million, an increase of $8.8 million from Q2 2024, but a decrease of $1.8 million from Q3 2023[206]. - Total interest expense for Q3 2024 increased to $450.1 million, up $18.3 million from Q2 2024, primarily due to higher average time deposit balances[207]. - The yield on average interest earning assets increased by 10 basis points to 5.98% for Q3 2024, attributed to higher yielding investment purchases and new loan originations[210]. - The overall cost of average interest bearing liabilities increased to 4.22% for Q3 2024, up 7 basis points from Q2 2024[210]. Capital and Shareholder Equity - Total shareholders' equity increased by $234.6 million to $7.0 billion at September 30, 2024, primarily due to net proceeds from the issuance of Series C preferred stock and net income for the third quarter[182]. - The common equity Tier 1 capital increased to $4,723.2 million (9.57%) as of September 30, 2024, from $4,623.5 million (9.29%) as of December 31, 2023[343]. - Valley is required to maintain a common equity Tier 1 capital to risk-weighted assets ratio of 4.5%, and as of September 30, 2024, it exceeded all capital adequacy requirements[340]. Economic Outlook - The company expects GDP to expand by approximately 2.0% in Q4 2024, with unemployment projected at 4.0 to 4.1% through Q3 2026[331]. - The Federal Reserve has lowered the federal funds rate to a range of 4.75 - 5.00%, with potential further cuts of 0.50% anticipated in Q4 2024[331].

Third Quarter 2024 Results Overview [Financial and Strategic Highlights](index=1&type=section&id=Financial%20and%20Strategic%20Highlights) Valley National Bancorp reported Q3 2024 net income of $97.9 million, marked by strategic CRE loan sales and sequential financial improvements Quarterly Earnings Summary | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Net Income** | $97.9 million | $70.4 million | $141.3 million | | **Diluted EPS** | $0.18 | $0.13 | $0.27 | | **Adjusted Net Income (Non-GAAP)** | $96.8 million | $71.6 million | $136.4 million | | **Adjusted Diluted EPS (Non-GAAP)** | $0.18 | $0.13 | $0.26 | - The company entered into an agreement to sell over **$800 million** of performing commercial real estate loans at a modest discount of approximately **1%**, expected to close in Q4 2024, strengthening the balance sheet and enhancing financial flexibility[3](index=3&type=chunk) - Quarterly results indicate early stages of normalized profitability, with both net interest income and non-interest income improving from Q2 2024, while operating expenses were effectively unchanged year-over-year[3](index=3&type=chunk) - The provision for credit losses was affected by recent weather events, specifically an **$8.0 million** qualitative reserve for the estimated impact of Hurricane Helene, as the company is committed to supporting affected communities[3](index=3&type=chunk)[5](index=5&type=chunk) Financial Performance Analysis [Net Interest Income and Margin](index=3&type=section&id=Net%20Interest%20Income%20and%20Margin) Net interest income increased to $411.8 million in Q3 2024, with net interest margin improving to 2.86% due to higher asset yields Net Interest Income and Margin Performance | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Net Interest Income (Tax Equivalent)** | $411.8 million | $403.0 million | $413.7 million | | **Net Interest Margin (Tax Equivalent)** | 2.86% | 2.84% | 2.91% | - The increase in NII from Q2 2024 was mainly due to higher yields on new and adjustable-rate loans, along with targeted purchases of higher-yielding taxable investment securities[7](index=7&type=chunk) - The cost of total average deposits increased to **3.25%** in Q3 2024, up from **3.18%** in Q2 2024 and **2.94%** in Q3 2023, reflecting the higher interest rate environment[10](index=10&type=chunk) [Loans, Deposits and Other Borrowings](index=4&type=section&id=Loans,%20Deposits%20and%20Other%20Borrowings) Total loans decreased to $49.4 billion due to CRE loan transfers, while deposits increased by $283.8 million to $50.4 billion - Total loans decreased by **7.6%** on an annualized basis, largely due to the transfer of **$823.1 million** of performing CRE loans to loans held for sale[5](index=5&type=chunk)[11](index=11&type=chunk) - Commercial and industrial loans grew by **$320.1 million** (**13.5%** annualized), reflecting a strategic focus on expanding this category[5](index=5&type=chunk)[11](index=11&type=chunk) - Total deposits increased by **$283.8 million**, with growth in savings, NOW, and money market accounts (**$358.3 million**) and non-interest bearing deposits (**$36.0 million**), partially offset by a decline in time deposits (**$110.5 million**)[12](index=12&type=chunk) - Short-term and long-term borrowings remained relatively unchanged compared to the previous quarter[13](index=13&type=chunk) [Credit Quality](index=4&type=section&id=Credit%20Quality) Credit quality showed mixed results with a $75.0 million provision for credit losses, a decrease in non-accrual loans, but a significant increase in accruing past due loans - The company is assessing the impact of Hurricanes Helene and Milton on its Florida loan portfolio, with an initial **$8.0 million** qualitative reserve recorded for Hurricane Helene[5](index=5&type=chunk)[14](index=14&type=chunk)[22](index=22&type=chunk) - Non-accrual loans decreased by **$7.0 million** to **$296.3 million** (**0.60%** of total loans) at September 30, 2024, compared to **$303.3 million** at June 30, 2024[5](index=5&type=chunk)[16](index=16&type=chunk) - Accruing past due loans increased by **$102.3 million** to **$174.7 million** (**0.35%** of total loans), mainly due to two large, well-secured commercial real estate loans in early-stage delinquency or modification processes[5](index=5&type=chunk)[17](index=17&type=chunk) Allowance for Credit Losses & Net Charge-Offs | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Provision for Credit Losses for Loans** | $75.0 million | $82.1 million | $9.1 million | | **Net Loan Charge-offs** | $42.9 million | $36.8 million | $5.5 million | | **Allowance for Credit Losses / Total Loans** | 1.14% | 1.06% | 0.92% | Capital Adequacy [Capital Ratios](index=7&type=section&id=Capital%20Ratios) Valley's capital ratios improved in Q3 2024, with the total risk-based capital ratio increasing to 12.56% due to preferred stock issuance Key Capital Ratios Comparison | Ratio | September 30, 2024 | June 30, 2024 | | :--- | :--- | :--- | | **Total Risk-Based Capital** | 12.56% | 12.18% | | **Common Equity Tier 1 (CET1) Capital** | 9.57% | 9.55% | | **Tier 1 Capital** | 10.29% | 9.99% | | **Tier 1 Leverage Capital** | 8.40% | 8.19% | - The improvement in capital ratios was largely due to the issuance of **6.0 million** shares of **8.250%** Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C, which generated net proceeds of approximately **$144.7 million**[23](index=23&type=chunk) Consolidated Financial Statements and Highlights [Consolidated Financial Highlights](index=10&type=section&id=Consolidated%20Financial%20Highlights) This section summarizes Valley's Q3 2024 financial data, including income statement, per-share, performance ratios, and balance sheet figures Selected Financial Data (Three Months Ended, $ in thousands, except per share data) | Metric | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Net interest income** | $410,498 | $401,685 | $412,418 | | **Provision for credit losses** | $75,024 | $82,070 | $9,117 | | **Net income** | $97,856 | $70,424 | $141,346 | | **Diluted earnings per share** | $0.18 | $0.13 | $0.27 | Selected Balance Sheet Data (As Of, $ in thousands) | Metric | Sep 30, 2024 | Jun 30, 2024 | Sep 30, 2023 | | :--- | :--- | :--- | :--- | | **Total Assets** | $62,092,332 | $62,058,974 | $61,183,352 | | **Total Loans** | $49,355,319 | $50,311,702 | $50,097,519 | | **Deposits** | $50,395,966 | $50,112,177 | $49,885,314 | | **Shareholders' Equity** | $6,972,380 | $6,737,737 | $6,627,299 | [Allowance for Credit Losses](index=12&type=section&id=Allowance%20for%20Credit%20Losses) The allowance for credit losses increased to $564.7 million in Q3 2024, driven by a $75.0 million provision, reaching 1.14% of total loans Allowance for Credit Losses Roll-Forward (Q3 2024, $ in thousands) | Metric | Amount | | :--- | :--- | | **Beginning Balance (Jun 30, 2024)** | $532,541 | | Total Loans Charged-off | ($48,221) | | Total Loans Recovered | $5,313 | | **Total Net Charge-offs** | **($42,908)** | | Provision for Credit Losses for Loans | $75,038 | | **Ending Balance (Sep 30, 2024)** | **$564,671** | [Asset Quality](index=13&type=section&id=Asset%20Quality) Asset quality showed a significant increase in accruing past due loans to $174.7 million, while non-accrual loans remained stable at $296.3 million Asset Quality Summary ($ in thousands) | Metric | Sep 30, 2024 | Jun 30, 2024 | | :--- | :--- | :--- | | **Total Accruing Past Due Loans** | $174,696 | $72,395 | | **Total Non-Accrual Loans** | $296,319 | $303,279 | | **Total Non-Performing Assets** | $305,102 | $312,945 | | **Non-Accrual Loans as a % of Loans** | 0.60% | 0.60% | [Non-GAAP Reconciliations](index=14&type=section&id=Non-GAAP%20Reconciliations) This section reconciles GAAP to non-GAAP measures, showing Q3 2024 adjusted net income of $96.8 million and an improved efficiency ratio of 56.13% Reconciliation of Net Income to Adjusted Net Income (Q3 2024, $ in thousands) | Metric | Amount | | :--- | :--- | | **Net Income, as reported (GAAP)** | **$97,856** | | Add: Mark to market loss on CRE loans | $5,794 | | Less: Litigation settlements | ($7,334) | | *Other minor adjustments* | *($1,976)* | | **Net Income, as adjusted (non-GAAP)** | **$96,754** | Key Non-GAAP Ratios (Q3 2024) | Ratio | Q3 2024 | Q2 2024 | Q3 2023 | | :--- | :--- | :--- | :--- | | **Diluted EPS, as adjusted** | $0.18 | $0.13 | $0.26 | | **Efficiency Ratio** | 56.13% | 59.62% | 56.72% | | **Tangible Book Value per Common Share** | $9.06 | $8.87 | $8.63 | [Consolidated Statements of Financial Condition](index=16&type=section&id=Consolidated%20Statements%20of%20Financial%20Condition) The balance sheet as of September 30, 2024, shows total assets of $62.1 billion, with total deposits at $50.4 billion and shareholders' equity at $7.0 billion Consolidated Balance Sheet Highlights (Unaudited, $ in thousands) | Metric | September 30, 2024 | December 31, 2023 | | :--- | :--- | :--- | | **Total Assets** | **$62,092,332** | **$60,934,974** | | Net Loans | $48,806,992 | $49,764,215 | | Total Investment Securities | $6,253,287 | $5,104,221 | | **Total Liabilities** | **$55,119,952** | **$54,233,583** | | Total Deposits | $50,395,966 | $49,242,829 | | **Total Shareholders' Equity** | **$6,972,380** | **$6,701,391** | [Consolidated Statements of Income](index=17&type=section&id=Consolidated%20Statements%20of%20Income) For Q3 2024, Valley reported net interest income of $410.5 million and a net income of $97.9 million, a significant increase from Q2 2024 Consolidated Income Statement (Unaudited, Q3 2024, $ in thousands) | Metric | Q3 2024 | | :--- | :--- | | **Net Interest Income** | **$410,498** | | Provision for credit losses for loans | $75,038 | | **Net Interest Income After Provision** | **$335,474** | | Total non-interest income | $60,671 | | Total non-interest expense | $269,471 | | **Income Before Income Taxes** | **$126,674** | | **Net Income** | **$97,856** | [Quarterly Analysis of Average Balances and Net Interest Income](index=19&type=section&id=Quarterly%20Analysis%20of%20Average%20Balances%20and%20Net%20Interest%20Income) This analysis details net interest margin components, showing Q3 2024 average yield on interest-earning assets at 5.98% and NIM at 2.86% Net Interest Margin Analysis (Q3 2024 vs Q2 2024) | Metric | Q3 2024 | Q2 2024 | | :--- | :--- | :--- | | **Avg. Yield on Interest Earning Assets** | 5.98% | 5.88% | | **Avg. Cost of Interest Bearing Liabilities** | 4.22% | 4.15% | | **Net Interest Spread (Tax Equivalent)** | 1.76% | 1.73% | | **Net Interest Margin (Tax Equivalent)** | 2.86% | 2.84% |