Valley National Bancorp Series C Pfd(VLYPN) - 2024 Q4 - Annual Results

Executive Summary & Q4 2024 Results Overview 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 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 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] - These efforts are expected to drive improved profitability in 2025[3] - Low-cost core deposit growth and a flattening yield curve should continue to support net interest margin expansion throughout 2025[3] Key Financial Highlights (Q4 2024) This section highlights Q4 2024 performance in net interest income, loan portfolio dynamics, credit quality, and deposit trends Net Interest Income and Margin 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] Loan Portfolio 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 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 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 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 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 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 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 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 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 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 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 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 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 This section details the changes in the company's loan portfolio, deposit structure, and other borrowings during Q4 2024 Loans 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] Deposits 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 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 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) 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 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 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 This section reviews the company's capital position, highlighting significant improvements in capital ratios due to a common stock offering Capital Ratios 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 This section provides details on investor relations, an overview of Valley National Bancorp, forward-looking statements, and shareholder contact information Investor Relations 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] - Webcast link: https://edge.media-server.com/[21](index=21&type=chunk) About Valley National Bancorp 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] - Operations span New Jersey, New York, Florida, Alabama, California, and Illinois[22] Forward-Looking Statements and Risk Factors 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] - 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][27] Shareholder Relations Contact 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] - Phone: (973) 305-3380; Email: tzarkadas@valley.com[52] Consolidated Financial Highlights (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 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 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 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 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 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) 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 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 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% |