Financial Performance - Net income available to common shareholders was $358.90 million in 2024, compared to $482.38 million in 2023, reflecting a decrease of approximately 25.7%[450]. - Net income for 2024 decreased to $380,271, down 23.7% from $498,511 in 2023[452]. - Total comprehensive income for 2024 was $371,393, a decline of 28.0% compared to $516,057 in 2023[452]. - Earnings per common share decreased to $0.70 in 2024 from $0.95 in 2023, a decline of approximately 26.3%[450]. - Basic earnings per common share for 2024 was $0.70, down from $0.95 in 2023 and $1.14 in 2022, reflecting a decline of 26.3% year-over-year[522]. - Diluted earnings per common share for 2024 was $0.69, unchanged from $0.95 in 2023 and $1.14 in 2022[522]. - Net interest income after provision for credit losses decreased to $1.32 billion in 2024, down from $1.62 billion in 2023, a decline of about 18.3%[450]. - Non-interest income totaled $224.50 million in 2024, slightly down from $225.73 million in 2023, a decrease of about 0.5%[450]. - The provision for credit losses for loans was $309.39 million in 2024, significantly higher than $45.63 million in 2023, indicating an increase of approximately 577.5%[450]. Assets and Liabilities - As of December 31, 2024, Valley National Bancorp had total assets of $62.5 billion, total net loans of $48.2 billion, total deposits of $50.1 billion, and total shareholders' equity of $7.4 billion[17]. - The company's total liabilities increased to $55.06 billion in 2024, compared to $54.23 billion in 2023, reflecting a growth of about 1.5%[448]. - Total deposits rose to $50.08 billion in 2024, an increase from $49.24 billion in 2023, marking a growth of about 1.7%[448]. - Cash and cash equivalents at the end of 2024 increased to $1,890,125,000 from $891,225,000 in 2023, marking a significant increase of 112%[457]. - The balance of total shareholders' equity increased to $7,435,127 by December 31, 2024, from $6,701,391 in 2023[453]. Loan Portfolio - The total loan portfolio was $48.8 billion, with commercial and industrial loans and owner-occupied commercial real estate loans being a focus for growth[41]. - Commercial and industrial loans totaled approximately $9.9 billion, representing 20.4% of the total loan portfolio[29]. - Commercial real estate and construction loans totaled $29.6 billion, accounting for 60.7% of the total loan portfolio[31]. - Residential mortgage loans totaled $5.6 billion, representing 11.5% of the total loan portfolio as of December 31, 2024[37]. - Other consumer loans amounted to $3.6 billion, accounting for 7.4% of the total loan portfolio as of December 31, 2024[37]. - Approximately 73% of Valley's gross loans, totaling $48.8 billion, consisted of commercial real estate, residential mortgage, and home equity loans as of December 31, 2024[41]. Credit Quality and Risk Management - The allowance for credit losses (ACL) consists of the allowance for loan losses and unfunded loan commitments, with estimates based on relevant information about past events, current conditions, and reasonable forecasts[60]. - The allowance for credit losses is estimated using a discounted cash flow model, reflecting the company's proactive approach to managing credit risk[471]. - Valley uses the CECL methodology to estimate an Allowance for Credit Losses (ACL) for loans, which is deducted from the amortized cost basis to present the net amount expected to be collected[478]. - The ACL for loans includes a collective reserve component for estimated lifetime expected credit losses and an individually evaluated reserve component for loans that do not share common risk characteristics[479]. - Specific reserves are measured for individual loans that do not share common risk characteristics, based on the fair value of collateral for collateral-dependent loans[485]. - Loans rated as "loss" are charged off when they are 90 to 120 days past due, with residential loans charged off at 120 days past due[488]. Regulatory Environment - Valley is subject to extensive regulation and supervision, with increased scrutiny expected due to recent bank failures and regulatory changes[81]. - The minimum capital ratios under Basel III require a Common Equity Tier 1 (CET1) ratio of at least 7.0%, Tier 1 capital ratio of at least 8.5%, and total capital ratio of at least 10.5%[89]. - As of December 31, 2024, the Bank's capital ratios were above the minimum levels required to be considered "well capitalized" under prompt corrective action regulations[96]. - Valley is required to maintain a capital conservation buffer of 2.5% on top of the minimum risk-weighted asset ratios[89]. - The Bank must submit resolution plans to the FDIC every three years due to its total consolidated assets exceeding $50 billion[97]. - Valley continues to conduct its own stress testing despite being exempt from the formal requirements under the EGRRCPA[101]. Employee and Corporate Culture - The voluntary turnover rate for Valley's employees was 13.5 percent in 2024, with an average tenure of 7.1 years[66]. - Valley's employee assistance program was enhanced to provide more mental health access to associates and their families at no cost, promoting overall well-being[69]. - The company maintains a competitive 401(k) plan with a company match, supporting financial wellness for employees[69]. - Valley's inclusive culture aims to leverage diverse perspectives, enhancing service quality to customers and communities[67]. - Valley's human capital management focuses on attracting, developing, and retaining key talent, crucial for long-term success[71]. Market Position and Strategy - Valley ranked 10th in competitive ranking and market share based on deposits reported by 150 FDIC-insured financial institutions in the New York, Northern New Jersey, and Long Island deposit markets as of June 30, 2024[23]. - Valley continues to enhance its online and mobile banking products to compete effectively in the Commercial and Consumer Banking segments[25]. - The company modestly expanded its indirect auto loan network into Georgia during 2024[37]. Changes in Financial Regulations - The Federal Reserve's proposed rule could lower the maximum interchange fee for large debit card issuers from 21 cents to 14.4 cents, impacting Valley's revenue[100]. - The Dodd-Frank Act's Durbin Amendment imposes a maximum permissible interchange fee for banks with over $10 billion in assets, which applies to Valley[99]. - The CFPB issued a final rule that amends Regulation Z, impacting overdraft credit extensions for financial institutions with more than $10 billion in assets, effective October 1, 2025[118]. - The Bank is subject to federal consumer protection statutes and regulations, including the Truth-In-Lending Act and Regulation Z[120].
Valley National Bancorp Series C Pfd(VLYPN) - 2024 Q4 - Annual Report