Valley National Bancorp(VLY)2025-01-23 14:01Net Income and Profitability - Net income for Q4 2024 was $115.7 million, or $0.20 per diluted share, compared to $97.9 million in Q3 2024 and $71.6 million in Q4 2023[2] - Net income available to common stockholders for Q4 2024 was $108.7 million, up 18.5% from $91.7 million in Q3 2024[31] - Net income (GAAP) for Q4 2024 was $115.71 million, a 61.7% increase from $71.55 million in Q4 2023[40] - Adjusted net income available to common shareholders (non-GAAP) for Q4 2024 was $68.69 million, compared to $112.19 million in Q4 2023[40] - Net income available to common shareholders (non-GAAP) for full year 2024 was $322.19 million, a 40.1% decrease from $538.14 million in 2023[40] - Net income available to common shareholders was $358.90 million in 2024, down from $482.38 million in 2023[51] Net Interest Income and Margin - Net interest income increased to $424.3 million in Q4 2024, up $12.5 million from Q3 2024 and $25.7 million from Q4 2023[4] - Net interest margin rose to 2.92% in Q4 2024, up 6 basis points from Q3 2024 and 10 basis points from Q4 2023[10] - Net interest income for Q4 2024 increased to $424.3 million, up 3.0% from $411.8 million in Q3 2024[31] - Net interest margin for Q4 2024 improved to 2.91%, up from 2.85% in Q3 2024[31] - Net interest income rose to $422.98 million in Q4 2024, compared to $410.50 million in Q3 2024 and $397.28 million in Q4 2023[52] - Net interest margin improved to 2.92% in Q4 2024 on a fully tax equivalent basis, up from 2.86% in Q3 2024 and 2.82% in Q4 2023[52] Loans and Credit Quality - Total loans decreased by $555.6 million (4.5% annualized) to $48.8 billion in Q4 2024, primarily due to repayments in CRE and multifamily loans[11] - CRE loan concentration ratio declined to 362% at December 31, 2024 from 421% at September 30, 2024[6] - Total Non-Performing Assets (NPAs) increased by $68.2 million to $373.3 million at December 31, 2024, compared to $305.1 million at September 30, 2024[15] - Non-accrual loans increased by $63.2 million to $359.5 million at December 31, 2024, representing 0.74% of total loans, up from 0.60% at September 30, 2024[15] - Total accruing past due loans decreased by $75.5 million to $99.2 million, or 0.20% of total loans, at December 31, 2024, compared to $174.7 million, or 0.35% of total loans, at September 30, 2024[16] - Loans 30 to 59 days past due decreased by $58.0 million to $57.1 million at December 31, 2024, mainly due to a $55.5 million decrease in CRE loans[16] - Loans 90 days or more past due increased by $1.1 million to $5.9 million at December 31, 2024, compared to $4.8 million at September 30, 2024[17] - The allowance for credit losses for loans as a percentage of total loans was 1.17% at December 31, 2024, up from 1.14% at September 30, 2024 and 0.93% at December 31, 2023[18] - Net loan charge-offs totaled $98.3 million for the fourth quarter 2024, compared to $42.9 million and $17.5 million for the third quarter 2024 and the fourth quarter 2023, respectively[18] - Valley's loan portfolio totaled $48.8 billion at December 31, 2024, with gross loan charge-offs of $103.7 million for the fourth quarter 2024[18] - Total loans as of December 31, 2024, decreased to $48.8 billion from $49.4 billion in September 2024[33] - Allowance for credit losses for loans increased to $573,328 thousand as of December 31, 2024, up from $465,550 thousand in December 2023[35] - Total net charge-offs for loans in 2024 were $201,610 thousand, compared to $61,962 thousand in 2023[35] - Provision for credit losses for loans in 2024 was $309,388 thousand, significantly higher than $45,625 thousand in 2023[35] - Annualized ratio of total net charge-offs to average loans increased to 0.40% in 2024 from 0.13% in 2023[35] - Allowance for credit losses as a percentage of total loans rose to 1.17% in 2024 from 0.93% in 2023[35] - Total non-accrual loans as a percentage of loans increased to 0.74% in December 2024 from 0.58% in December 2023[38] - Total accruing past due and non-accrual loans as a percentage of loans rose to 0.94% in December 2024 from 0.76% in December 2023[38] - Allowance for losses on loans as a percentage of non-accrual loans decreased to 155.45% in December 2024 from 152.83% in December 2023[38] - Net losses on commercial real estate loan sales in Q4 2024 were $7.87 million, up from $5.79 million in Q3 2024[40] - Net loans decreased to $48.24 billion in 2024 from $49.76 billion in 2023, with a corresponding increase in the allowance for loan losses to $558.85 million[50] - Loans averaged $49,730.13 million in Q4 2024, slightly down from $50,126.96 million in Q3 2024 but up from $50,039.43 million in Q4 2023[52] Deposits and Funding - Non-interest bearing deposits increased by $274.9 million to $11.4 billion at December 31, 2024[6] - Total deposits decreased by $320.1 million to $50.1 billion at December 31, 2024, with a $1.8 billion decline in time deposits partially offset by increases in other deposit categories[13] - Deposits as of December 31, 2024, stood at $50.1 billion, slightly down from $50.4 billion in September 2024[33] - Total deposits grew to $50.08 billion in 2024 from $49.24 billion in 2023, driven by an increase in interest-bearing deposits[50] - Interest bearing deposits with banks increased to $1,414.67 million in Q4 2024, compared to $974.42 million in Q3 2024 and $885.69 million in Q4 2023[52] Capital and Liquidity - Valley's total risk-based capital ratio increased to 13.87% at December 31, 2024, compared to 12.56% at September 30, 2024, largely due to the issuance of 49.2 million shares of common stock[21] - Shareholders' equity increased to $7.4 billion as of December 31, 2024, from $7.0 billion in September 2024[33] - Tier 1 leverage capital ratio as of December 31, 2024, increased to 9.16% from 8.40% in September 2024[33] - Tangible book value per common share as of December 31, 2024 was $9.10, up from $8.79 in December 2023[49] - Tangible common equity to tangible assets ratio was 8.40% as of December 31, 2024, compared to 7.58% in December 2023[49] - Shareholders' equity increased to $7,255.16 million in Q4 2024, up from $6,862.56 million in Q3 2024 and $6,639.91 million in Q4 2023[52] Efficiency and Expense Management - Efficiency ratio improved to 57.21% in Q4 2024, compared to 56.13% in Q3 2024 and 60.70% in Q4 2023[8] - Efficiency ratio for Q4 2024 was 57.21%, slightly higher than 56.13% in Q3 2024[31] - Efficiency ratio for Q4 2024 was 57.21%, compared to 60.70% in Q4 2023[47] - Non-interest expense for Q4 2024 was $275.76 million, compared to $272.58 million in Q4 2023[47] - Total non-interest expense decreased to $1.11 billion in 2024 from $1.16 billion in 2023, primarily due to reductions in FDIC insurance assessments and professional fees[51] Revenue and Interest Income - Total revenue for Q4 2024 reached $474.2 million, a slight increase from $471.2 million in Q3 2024[31] - Gross operating income for Q4 2024 was $482.05 million, up from $449.09 million in Q4 2023[47] - Net interest income for the year ended December 31, 2024, was $1.63 billion, compared to $1.67 billion in 2023[51] - Non-interest income for 2024 was $224.50 million, slightly lower than $225.73 million in 2023[51] - Interest income from loans and fees was $3.08 billion in 2024, up from $2.89 billion in 2023[51] - Total interest expense rose to $1.73 billion in 2024 from $1.47 billion in 2023, driven by higher interest on deposits and borrowings[51] - Total interest earning assets increased to $58,214.78 million in Q4 2024, up from $57,651.65 million in Q3 2024 and $56,469.47 million in Q4 2023[52] - Taxable investments grew to $6,504.11 million in Q4 2024, up from $5,977.21 million in Q3 2024 and $4,950.77 million in Q4 2023[52] - Total interest bearing liabilities stood at $42,765.95 million in Q4 2024, slightly up from $42,656.96 million in Q3 2024 and $40,753.31 million in Q4 2023[52] Asset and Liability Management - Total assets increased to $62.49 billion in 2024 from $60.93 billion in 2023, reflecting growth in cash, interest-bearing deposits, and investment securities[50] Provision for Credit Losses - Provision for credit losses increased to $107.0 million in Q4 2024, compared to $75.0 million in Q3 2024 and $20.7 million in Q4 2023[6] - The provision for credit losses for loans totaled $107.0 million for the fourth quarter 2024, compared to $75.0 million for the third quarter 2024 and $20.7 million for the fourth quarter 2023[19] - Provision for credit losses for loans in 2024 was $309,388 thousand, significantly higher than $45,625 thousand in 2023[35] Other Financial Metrics - Annualized return on average assets (ROA) was 0.74% for Q4 2024, with adjusted ROA at 0.48%[8] - Annualized return on average assets for Q4 2024 was 0.74%, compared to 0.63% in Q3 2024[31] - Annualized return on average tangible shareholders' equity for Q4 2024 was 5.76%, compared to 10.10% in Q4 2023[47] - Annualized return on average assets for Q4 2024 was 0.48%, down from 0.76% in Q4 2023[47] - Basic earnings per share (EPS) for Q4 2024 were $0.13, down from $0.22 in Q4 2023[47] - Dividends on preferred stock for full year 2024 were $21.37 million, a 32.4% increase from $16.14 million in 2023[40] - Total non-GAAP adjustments to net income for Q4 2024 were $(37.48) million, primarily due to a $(46.43) million income tax benefit[40] - FDIC special assessment in Q4 2023 was $50.30 million, significantly higher than the $8.76 million for the full year 2024[40] - Restructuring charges in Q4 2024 were $1.09 million, compared to $(538) thousand in Q4 2023[40] - Merger-related expenses in Q4 2023 were $10.00 million, with no such expenses in 2024[40] - Litigation reserve in Q4 2023 was $3.54 million, with no similar reserve in 2024[40] - Average number of shares outstanding for Q4 2024 was 536.16 million, up from 507.68 million in Q4 2023[47]