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].
Valley National Bancorp Series C Pfd(VLYPN) - 2024 Q2 - Quarterly Report