VALLEY NATIONAL(VLYPP) - 2024 Q1 - Quarterly Report

FORM 10-Q Information Registrant Information Details Valley National Bancorp's Form 10-Q identification, registered securities, and SEC compliance for Q1 2024 - Registrant: Valley National Bancorp, incorporated in New Jersey, with principal executive office in New York, NY[2] Title of each class | Title of each class | | :--- | | Common Stock, no par value | | Non-Cumulative Perpetual Preferred Stock, Series A, no par value | | Non-Cumulative Perpetual Preferred Stock, Series B, no par value | - The registrant is a large accelerated filer and has filed all required reports and interactive data files during the preceding 12 months[4] - As of May 7, 2024, 509,182,782 shares of Common Stock (no par value) were outstanding[4] TABLE OF CONTENTS Glossary of Defined Terms Key Terms and Definitions Defines key terms and abbreviations for accounting standards, regulatory bodies, and financial instruments used in the report - The glossary defines terms such as ACL (Allowance for credit losses), AFS (Available for sale), CECL (Current expected credit loss model), GAAP (U.S. Generally Accepted Accounting Principles), and Valley (referring to Valley National Bancorp and its subsidiaries)[7][8] PART I - FINANCIAL INFORMATION Item 1. Financial Statements Presents Valley National Bancorp's unaudited consolidated financial statements for Q1 2024, including financial condition, income, comprehensive income, equity, and cash flows, with detailed notes Consolidated Statements of Financial Condition Valley National Bancorp's financial condition shows slight asset growth, stable liabilities, and modest equity rise, with decreased net loans and deposits, and increased long-term borrowings Consolidated Statements of Financial Condition (March 31, 2024 vs. December 31, 2023) | Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------ | :-------------------- | | Total Assets | $61,000,188 | $60,934,974 | $65,214 | | Net Loans | $49,452,794 | $49,764,215 | $(311,421) | | Total Deposits | $49,077,946 | $49,242,829 | $(164,883) | | Short-term borrowings | $75,224 | $917,834 | $(842,610) | | Long-term borrowings | $3,262,341 | $2,328,375 | $933,966 | | Total Liabilities | $54,273,049 | $54,233,583 | $39,466 | | Total Shareholders' Equity | $6,727,139 | $6,701,391 | $25,748 | Consolidated Statements of Income Valley National Bancorp reported a decrease in net income for Q1 2024 compared to Q1 2023, primarily driven by lower net interest income and a significant increase in the provision for credit losses, despite growth in non-interest income Consolidated Statements of Income (Three Months Ended March 31, 2024 vs. 2023) | Item | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | Change (in thousands) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | | Total interest income | $828,656 | $720,230 | $108,426 | | Total interest expense | $435,108 | $284,210 | $150,898 | | Net Interest Income | $393,548 | $436,020 | $(42,472) | | Provision for credit losses for loans | $45,274 | $9,450 | $35,824 | | Total non-interest income | $61,415 | $54,299 | $7,116 | | Total non-interest expense | $280,310 | $272,166 | $8,144 | | Net Income | $96,280 | $146,551 | $(50,271) | | Earnings Per Common Share: Diluted | $0.18 | $0.28 | $(0.10) | Consolidated Statements of Comprehensive Income Valley National Bancorp's total comprehensive income significantly decreased in Q1 2024 compared to Q1 2023, primarily due to unrealized losses on available-for-sale securities during the period, contrasting with unrealized gains in the prior year Consolidated Statements of Comprehensive Income (Three Months Ended March 31, 2024 vs. 2023) | Item | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | Change (in thousands) | | :------------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | | Net income | $96,280 | $146,551 | $(50,271) | | Unrealized losses and gains on available for sale securities (Net losses/gains arising during the period) | $(10,205) | $17,170 | $(27,375) | | Total other comprehensive (loss) income | $(10,392) | $20,355 | $(30,747) | | Total comprehensive income | $85,888 | $166,906 | $(81,018) | Consolidated Statements of Changes in Shareholders' Equity Shareholders' equity for Valley National Bancorp increased slightly from December 31, 2023, to March 31, 2024, driven by net income and stock incentive plan effects, partially offset by cash dividends and other comprehensive loss Consolidated Statements of Changes in Shareholders' Equity (Three Months Ended March 31, 2024 vs. 2023) | Item | March 31, 2024 (in thousands) | December 31, 2023 (in thousands) | Change (in thousands) | | :----------------------------------- | :----------------------------- | :------------------------------ | :-------------------- | | Balance - December 31, 2023 / January 1, 2023 | $6,701,391 | $6,401,792 | $299,599 | | Net income | $96,280 | $146,551 | $(50,271) | | Other comprehensive (loss) income, net of tax | $(10,392) | $20,355 | $(30,747) | | Cash dividends declared (Preferred & Common) | $(60,913) | $(60,362) | $(551) | | Effect of stock incentive plan, net | $773 | $(505) | $1,278 | | Balance - March 31, 2024 / March 31, 2023 | $6,727,139 | $6,511,581 | $215,558 | Consolidated Statements of Cash Flows Valley National Bancorp experienced a significant shift in cash flows, with operating activities providing net cash in Q1 2024 compared to using cash in Q1 2023, while investing activities also provided net cash, a reversal from the prior year's outflow, and financing activities used cash Consolidated Statements of Cash Flows (Three Months Ended March 31, 2024 vs. 2023) | Item | March 31, 2024 (in thousands) | March 31, 2023 (in thousands) | Change (in thousands) | | :------------------------------------------ | :----------------------------- | :----------------------------- | :-------------------- | | Net cash provided by (used in) operating activities | $99,511 | $(269,682) | $369,193 | | Net cash provided by (used in) investing activities | $91,985 | $(1,784,558) | $1,876,543 | | Net cash (used in) provided by financing activities | $(141,888) | $6,811,981 | $(6,953,869) | | Net change in cash and cash equivalents | $49,608 | $4,757,741 | $(4,708,133) | | Cash and cash equivalents at end of period | $940,833 | $5,705,688 | $(4,764,855) | Notes to Consolidated Financial Statements The Notes to Consolidated Financial Statements provide detailed explanations of Valley National Bancorp's accounting policies, significant estimates, and specific financial statement line items Note 1. Basis of Presentation This note outlines