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% |

Financial Performance - Net income for Q2 2024 was $70.4 million, or $0.13 per diluted common share, a decrease of $68.6 million compared to Q2 2023[181]. - Adjusted net income for Q2 2024 was $71.6 million, down from $147.1 million in Q2 2023, with an adjusted return on average assets of 0.47%[200]. - The efficiency ratio, as adjusted, was reported at 59.62% for Q2 2024, compared to 55.59% in Q2 2023[198]. - Net interest income for Q2 2024 was $403.0 million, an increase of $8.1 million from Q1 2024 but a decrease of $18.3 million from Q2 2023[203]. - Non-interest income decreased by $8.9 million for the three months ended June 30, 2024, representing 5.8% of total income, down from 7.1% in the same period of 2023[219]. - Total non-interest expense decreased by $5.5 million for the three months ended June 30, 2024, totaling $277.5 million[225]. Asset and Loan Growth - As of June 30, 2024, the company reported total assets of approximately $62.1 billion, total net loans of $49.8 billion, and total deposits of $50.1 billion[178]. - Total loans increased by $389.7 million, or 3.1% on an annualized basis, to $50.3 billion at June 30, 2024, driven by new commercial and industrial loan production[181]. - The total loan portfolio increased by $389.7 million, or 3.1%, to $50.3 billion as of June 30, 2024, primarily due to a focus on new commercial and industrial loan production[288]. - Commercial and industrial loans increased by $375.0 million to $9.5 billion as of June 30, 2024, driven by new loan production and organic growth[289]. - Residential mortgage loans totaled $5.6 billion, with new and refinanced originations of $135.4 million in Q2 2024, compared to $115.0 million in Q1 2024[292]. Credit Quality and Losses - Non-performing assets (NPAs) as a percentage of total loans increased to 0.62% at June 30, 2024, compared to 0.58% at March 31, 2024[181]. - The provision for credit losses increased by $76.0 million, mainly due to higher reserves allocated to commercial real estate loans and industrial loan growth[182]. - The allowance for loan losses as a percentage of non-accrual loans was 171.23% as of June 30, 2024, indicating a strong reserve position[302]. - Net loan charge-offs totaled $36.8 million for the second quarter of 2024, compared to $23.6 million in the first quarter of 2024 and $8.6 million in the second quarter of 2023[317]. - The provision for credit losses for loans was $86.9 million for the quarter ended June 30, 2024, compared to $46.7 million for the previous quarter[316]. Deposits and Funding - Total deposits increased by $1.0 billion to $50.1 billion at June 30, 2024, mainly due to higher indirect customer CD balances[179]. - Actual ending balances for deposits rose by $1.0 billion to $50.1 billion as of June 30, 2024, primarily due to a $1.5 billion increase in time deposits[192]. - Average long-term borrowings increased by $693.3 million to $3.3 billion in Q2 2024, mainly due to new FHLB advances totaling $1.0 billion issued in early March 2024[195]. - Average interest-bearing liabilities increased by $650.6 million to $41.6 billion in Q2 2024 compared to Q2 2023, driven by a $3.5 billion increase in average interest-bearing deposits[206]. Economic Environment - The U.S. economy showed a real GDP increase of 2.8% in Q2 2024, driven by personal consumption and government spending, while inflation moderated to 3.0%[184]. - The Federal Reserve maintained the target range for the federal funds rate between 5.25% and 5.50% as of June 2024, with expectations for potential rate cuts due to a softer job report[185]. - The inflation rate was recorded at 3.3% in May 2024, primarily driven by increased shelter inflation[315]. Capital and Equity - Total shareholders' equity was approximately $6.7 billion, representing 10.9% of total assets as of June 30, 2024[323]. - Valley's total risk-based capital was $5,954,925, with a ratio of 12.17% as of June 30, 2024, exceeding the minimum requirement of 10.50%[329]. - The common equity Tier 1 capital ratio was 9.55% as of June 30, 2024, above the minimum requirement of 7.00%[329]. - Valley issued 6.0 million shares of Series C preferred stock, generating net proceeds of $144.7 million to enhance regulatory capital[330].

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 March 31, 2024 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 jurisdict ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2023 ☐ 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 jurisdiction of ...

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, 2023 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 ...

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 June 30, 2023 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 jurisdic ...

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 March 31, 2023 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 jurisdi ...

UNITED STATES SECURITIES AND EXCHANGE COMMISSION Washington, D.C. 20549 FORM 10-K (Mark One) ☑ ANNUAL REPORT PURSUANT TO SECTION 13 or 15(d) OF THE SECURITIES EXCHANGE ACT OF 1934 For the fiscal year ended December 31, 2022 ☐ 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 jurisdiction of ...