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Valley National Bancorp(VLY) - 2024 Q4 - Annual Results
VLYValley National Bancorp(VLY)2025-01-23 14:01

Net Income and Profitability - Net income for Q4 2024 was 115.7million,or115.7 million, or 0.20 per diluted share, compared to 97.9millioninQ32024and97.9 million in Q3 2024 and 71.6 million in Q4 2023[2] - Net income available to common stockholders for Q4 2024 was 108.7million,up18.5108.7 million, up 18.5% from 91.7 million in Q3 2024[31] - Net income (GAAP) for Q4 2024 was 115.71million,a61.7115.71 million, a 61.7% increase from 71.55 million in Q4 2023[40] - Adjusted net income available to common shareholders (non-GAAP) for Q4 2024 was 68.69million,comparedto68.69 million, compared to 112.19 million in Q4 2023[40] - Net income available to common shareholders (non-GAAP) for full year 2024 was 322.19million,a40.1322.19 million, a 40.1% decrease from 538.14 million in 2023[40] - Net income available to common shareholders was 358.90millionin2024,downfrom358.90 million in 2024, down from 482.38 million in 2023[51] Net Interest Income and Margin - Net interest income increased to 424.3millioninQ42024,up424.3 million in Q4 2024, up 12.5 million from Q3 2024 and 25.7millionfromQ42023[4]−Netinterestmarginroseto2.9225.7 million from Q4 2023[4] - Net interest margin rose to 2.92% in Q4 2024, up 6 basis points from Q3 2024 and 10 basis points from Q4 2023[10] - Net interest income for Q4 2024 increased to 424.3 million, up 3.0% from 411.8millioninQ32024[31]−NetinterestmarginforQ42024improvedto2.91411.8 million in Q3 2024[31] - Net interest margin for Q4 2024 improved to 2.91%, up from 2.85% in Q3 2024[31] - Net interest income rose to 422.98 million in Q4 2024, compared to 410.50millioninQ32024and410.50 million in Q3 2024 and 397.28 million in Q4 2023[52] - Net interest margin improved to 2.92% in Q4 2024 on a fully tax equivalent basis, up from 2.86% in Q3 2024 and 2.82% in Q4 2023[52] Loans and Credit Quality - Total loans decreased by 555.6million(4.5555.6 million (4.5% annualized) to 48.8 billion in Q4 2024, primarily due to repayments in CRE and multifamily loans[11] - CRE loan concentration ratio declined to 362% at December 31, 2024 from 421% at September 30, 2024[6] - Total Non-Performing Assets (NPAs) increased by 68.2millionto68.2 million to 373.3 million at December 31, 2024, compared to 305.1millionatSeptember30,2024[15]−Non−accrualloansincreasedby305.1 million at September 30, 2024[15] - Non-accrual loans increased by 63.2 million to 359.5millionatDecember31,2024,representing0.74359.5 million at December 31, 2024, representing 0.74% of total loans, up from 0.60% at September 30, 2024[15] - Total accruing past due loans decreased by 75.5 million to 99.2million,or0.2099.2 million, or 0.20% of total loans, at December 31, 2024, compared to 174.7 million, or 0.35% of total loans, at September 30, 2024[16] - Loans 30 to 59 days past due decreased by 58.0millionto58.0 million to 57.1 million at December 31, 2024, mainly due to a 55.5milliondecreaseinCREloans[16]−Loans90daysormorepastdueincreasedby55.5 million decrease in CRE loans[16] - Loans 90 days or more past due increased by 1.1 million to 5.9millionatDecember31,2024,comparedto5.9 million at December 31, 2024, compared to 4.8 million at September 30, 2024[17] - The allowance for credit losses for loans as a percentage of total loans was 1.17% at December 31, 2024, up from 1.14% at September 30, 2024 and 0.93% at December 31, 2023[18] - Net loan charge-offs totaled 98.3millionforthefourthquarter2024,comparedto98.3 million for the fourth quarter 2024, compared to 42.9 million and 17.5millionforthethirdquarter2024andthefourthquarter2023,respectively[18]−Valley′sloanportfoliototaled17.5 million for the third quarter 2024 and the fourth quarter 2023, respectively[18] - Valley's loan portfolio totaled 48.8 billion at December 31, 2024, with gross loan charge-offs of 103.7millionforthefourthquarter2024[18]−TotalloansasofDecember31,2024,decreasedto103.7 million for the fourth quarter 2024[18] - Total loans as of December 31, 2024, decreased to 48.8 billion from 49.4billioninSeptember2024[33]−Allowanceforcreditlossesforloansincreasedto49.4 billion in September 2024[33] - Allowance for credit losses for loans increased to 573,328 thousand as of December 31, 2024, up from 465,550thousandinDecember2023[35]−Totalnetcharge−offsforloansin2024were465,550 thousand in December 2023[35] - Total net charge-offs for loans in 2024 were 201,610 thousand, compared to 61,962thousandin2023[35]−Provisionforcreditlossesforloansin2024was61,962 thousand in 2023[35] - Provision for credit losses for loans in 2024 was 309,388 thousand, significantly higher than 45,625thousandin2023[35]−Annualizedratiooftotalnetcharge−offstoaverageloansincreasedto0.4045,625 thousand in 2023[35] - Annualized ratio of total net charge-offs to average loans increased to 0.40% in 2024 from 0.13% in 2023[35] - Allowance for credit losses as a percentage of total loans rose to 1.17% in 2024 from 0.93% in 2023[35] - Total non-accrual loans as a percentage of loans increased to 0.74% in December 2024 from 0.58% in December 2023[38] - Total accruing past due and non-accrual loans as a percentage of loans rose to 0.94% in December 2024 from 0.76% in December 2023[38] - Allowance for losses on loans as a percentage of non-accrual loans decreased to 155.45% in December 2024 from 152.83% in December 2023[38] - Net losses on commercial real estate loan sales in Q4 2024 were 7.87 million, up from 5.79millioninQ32024[40]−Netloansdecreasedto5.79 million in Q3 2024[40] - Net loans decreased to 48.24 billion in 2024 from 49.76billionin2023,withacorrespondingincreaseintheallowanceforloanlossesto49.76 billion in 2023, with a corresponding increase in the allowance for loan losses to 558.85 million[50] - Loans averaged 49,730.13millioninQ42024,slightlydownfrom49,730.13 million in Q4 2024, slightly down from 50,126.96 million in Q3 2024 but up from 50,039.43millioninQ42023[52]DepositsandFunding−Non−interestbearingdepositsincreasedby50,039.43 million in Q4 2023[52] Deposits and Funding - Non-interest bearing deposits increased by 274.9 million to 11.4billionatDecember31,2024[6]−Totaldepositsdecreasedby11.4 billion at December 31, 2024[6] - Total deposits decreased by 320.1 million to 50.1billionatDecember31,2024,witha50.1 billion at December 31, 2024, with a 1.8 billion decline in time deposits partially offset by increases in other deposit categories[13] - Deposits as of December 31, 2024, stood at 50.1billion,slightlydownfrom50.1 billion, slightly down from 50.4 billion in September 2024[33] - Total deposits grew to 50.08billionin2024from50.08 billion in 2024 from 49.24 billion in 2023, driven by an increase in interest-bearing deposits[50] - Interest bearing deposits with banks increased to 1,414.67millioninQ42024,comparedto1,414.67 million in Q4 2024, compared to 974.42 million in Q3 2024 and 885.69millioninQ42023[52]CapitalandLiquidity−Valley′stotalrisk−basedcapitalratioincreasedto13.87885.69 million in Q4 2023[52] Capital and Liquidity - Valley's total risk-based capital ratio increased to 13.87% at December 31, 2024, compared to 12.56% at September 30, 2024, largely due to the issuance of 49.2 million shares of common stock[21] - Shareholders' equity increased to 7.4 billion as of December 31, 2024, from 7.0billioninSeptember2024[33]−Tier1leveragecapitalratioasofDecember31,2024,increasedto9.167.0 billion in September 2024[33] - Tier 1 leverage capital ratio as of December 31, 2024, increased to 9.16% from 8.40% in September 2024[33] - Tangible book value per common share as of December 31, 2024 was 9.10, up from 8.79inDecember2023[49]−Tangiblecommonequitytotangibleassetsratiowas8.408.79 in December 2023[49] - Tangible common equity to tangible assets ratio was 8.40% as of December 31, 2024, compared to 7.58% in December 2023[49] - Shareholders' equity increased to 7,255.16 million in Q4 2024, up from 6,862.56millioninQ32024and6,862.56 million in Q3 2024 and 6,639.91 million in Q4 2023[52] Efficiency and Expense Management - Efficiency ratio improved to 57.21% in Q4 2024, compared to 56.13% in Q3 2024 and 60.70% in Q4 2023[8] - Efficiency ratio for Q4 2024 was 57.21%, slightly higher than 56.13% in Q3 2024[31] - Efficiency ratio for Q4 2024 was 57.21%, compared to 60.70% in Q4 2023[47] - Non-interest expense for Q4 2024 was 275.76million,comparedto275.76 million, compared to 272.58 million in Q4 2023[47] - Total non-interest expense decreased to 1.11billionin2024from1.11 billion in 2024 from 1.16 billion in 2023, primarily due to reductions in FDIC insurance assessments and professional fees[51] Revenue and Interest Income - Total revenue for Q4 2024 reached 474.2million,aslightincreasefrom474.2 million, a slight increase from 471.2 million in Q3 2024[31] - Gross operating income for Q4 2024 was 482.05million,upfrom482.05 million, up from 449.09 million in Q4 2023[47] - Net interest income for the year ended December 31, 2024, was 1.63billion,comparedto1.63 billion, compared to 1.67 billion in 2023[51] - Non-interest income for 2024 was 224.50million,slightlylowerthan224.50 million, slightly lower than 225.73 million in 2023[51] - Interest income from loans and fees was 3.08billionin2024,upfrom3.08 billion in 2024, up from 2.89 billion in 2023[51] - Total interest expense rose to 1.73billionin2024from1.73 billion in 2024 from 1.47 billion in 2023, driven by higher interest on deposits and borrowings[51] - Total interest earning assets increased to 58,214.78millioninQ42024,upfrom58,214.78 million in Q4 2024, up from 57,651.65 million in Q3 2024 and 56,469.47millioninQ42023[52]−Taxableinvestmentsgrewto56,469.47 million in Q4 2023[52] - Taxable investments grew to 6,504.11 million in Q4 2024, up from 5,977.21millioninQ32024and5,977.21 million in Q3 2024 and 4,950.77 million in Q4 2023[52] - Total interest bearing liabilities stood at 42,765.95millioninQ42024,slightlyupfrom42,765.95 million in Q4 2024, slightly up from 42,656.96 million in Q3 2024 and 40,753.31millioninQ42023[52]AssetandLiabilityManagement−Totalassetsincreasedto40,753.31 million in Q4 2023[52] Asset and Liability Management - Total assets increased to 62.49 billion in 2024 from 60.93billionin2023,reflectinggrowthincash,interest−bearingdeposits,andinvestmentsecurities[50]ProvisionforCreditLosses−Provisionforcreditlossesincreasedto60.93 billion in 2023, reflecting growth in cash, interest-bearing deposits, and investment securities[50] Provision for Credit Losses - Provision for credit losses increased to 107.0 million in Q4 2024, compared to 75.0millioninQ32024and75.0 million in Q3 2024 and 20.7 million in Q4 2023[6] - The provision for credit losses for loans totaled 107.0millionforthefourthquarter2024,comparedto107.0 million for the fourth quarter 2024, compared to 75.0 million for the third quarter 2024 and 20.7millionforthefourthquarter2023[19]−Provisionforcreditlossesforloansin2024was20.7 million for the fourth quarter 2023[19] - Provision for credit losses for loans in 2024 was 309,388 thousand, significantly higher than 45,625thousandin2023[35]OtherFinancialMetrics−Annualizedreturnonaverageassets(ROA)was0.7445,625 thousand in 2023[35] Other Financial Metrics - Annualized return on average assets (ROA) was 0.74% for Q4 2024, with adjusted ROA at 0.48%[8] - Annualized return on average assets for Q4 2024 was 0.74%, compared to 0.63% in Q3 2024[31] - Annualized return on average tangible shareholders' equity for Q4 2024 was 5.76%, compared to 10.10% in Q4 2023[47] - Annualized return on average assets for Q4 2024 was 0.48%, down from 0.76% in Q4 2023[47] - Basic earnings per share (EPS) for Q4 2024 were 0.13, down from 0.22inQ42023[47]−Dividendsonpreferredstockforfullyear2024were0.22 in Q4 2023[47] - Dividends on preferred stock for full year 2024 were 21.37 million, a 32.4% increase from 16.14millionin2023[40]−Totalnon−GAAPadjustmentstonetincomeforQ42024were16.14 million in 2023[40] - Total non-GAAP adjustments to net income for Q4 2024 were (37.48) million, primarily due to a (46.43)millionincometaxbenefit[40]−FDICspecialassessmentinQ42023was(46.43) million income tax benefit[40] - FDIC special assessment in Q4 2023 was 50.30 million, significantly higher than the 8.76millionforthefullyear2024[40]−RestructuringchargesinQ42024were8.76 million for the full year 2024[40] - Restructuring charges in Q4 2024 were 1.09 million, compared to (538)thousandinQ42023[40]−Merger−relatedexpensesinQ42023were(538) thousand in Q4 2023[40] - Merger-related expenses in Q4 2023 were 10.00 million, with no such expenses in 2024[40] - Litigation reserve in Q4 2023 was $3.54 million, with no similar reserve in 2024[40] - Average number of shares outstanding for Q4 2024 was 536.16 million, up from 507.68 million in Q4 2023[47]