VALLEY NATIONAL(US:VLYPP)2024-10-24 13:09Financial Performance - Net income for Q3 2024 was $97.9 million, or $0.18 per diluted share, compared to $70.4 million, or $0.13 per diluted share in Q2 2024, and $141.3 million, or $0.27 per diluted share in Q3 2023[2] - Adjusted net income for Q3 2024 was $96.8 million, or $0.18 per diluted share, compared to $71.6 million, or $0.13 per diluted share in Q2 2024, and $136.4 million, or $0.26 per diluted share in Q3 2023[2] - Total revenue for Q3 2024 was $471,169,000, compared to $452,898,000 in Q2 2024 and $471,082,000 in Q3 2023, indicating stable performance year-over-year[32] - Net income available to common shareholders for Q3 2024 was $91,739,000, up from $66,316,000 in Q2 2024, but down from $137,219,000 in Q3 2023[32] - Adjusted net income available to common shareholders (non-GAAP) for Q3 2024 was $90,637,000, compared to $67,535,000 in Q3 2023, representing a 34.1% increase[43] - Net income, as reported (GAAP) for the nine months ended September 30, 2024, was $264,560,000, down from $426,957,000 in the same period of 2023, a decrease of 38.0%[43] Loan and Credit Quality - Total loans decreased by $956.4 million, or 7.6% annualized, to $49.4 billion as of September 30, 2024, primarily due to the transfer of $823.1 million in commercial real estate loans to loans held for sale[5] - The allowance for credit losses for loans was $564.7 million, representing 1.14% of total loans as of September 30, 2024, with a provision for credit losses of $75.0 million recorded in Q3 2024[5] - Net loan charge-offs totaled $42.9 million for Q3 2024, compared to $36.8 million in Q2 2024 and $5.5 million in Q3 2023[19] - The provision for credit losses for loans was $75.0 million in Q3 2024, down from $82.1 million in Q2 2024 but significantly higher than $9.1 million in Q3 2023[20] - Total accruing past due loans increased by $102.3 million to $174.7 million, representing 0.35% of total loans as of September 30, 2024, compared to 0.14% at June 30, 2024[17] - Total non-performing assets decreased to $305.1 million as of September 30, 2024, down $7.8 million from June 30, 2024[16] Deposits and Funding - Deposits increased by $283.8 million to $50.4 billion as of September 30, 2024, driven by higher commercial customer money market and non-interest bearing deposits[12] - Total deposits rose to $50,395,966,000 in Q3 2024 from $49,242,829,000 in Q4 2023, indicating a growth of 2.34%[49] Efficiency and Ratios - The efficiency ratio improved to 56.13% in Q3 2024, compared to 59.62% in Q2 2024[9] - Annualized return on average assets (ROA) was 0.63%, and return on equity (ROE) was 5.70% for Q3 2024[9] - The net interest margin for Q3 2024 was 2.85%, slightly up from 2.83% in Q2 2024, but down from 2.90% in Q3 2023[32] - The allowance for credit losses for loans as a percentage of total loans was 1.14% at September 30, 2024, up from 1.06% at June 30, 2024, and 0.92% at September 30, 2023[20] Non-Interest Income and Expenses - Non-interest income rose to $60.7 million in Q3 2024, an increase of $9.5 million from Q2 2024, mainly due to higher wealth management fees and service charges[6] - Total non-interest expense for Q3 2024 was $269,471,000, a slight decrease from $267,133,000 in Q3 2023[50] Capital and Shareholder Value - Valley's total risk-based capital ratio increased to 12.56% at September 30, 2024, compared to 12.18% at June 30, 2024, primarily due to the issuance of 6.0 million shares of preferred stock[23] - Book value per common share increased to $13.00 as of September 30, 2024, from $12.82 in Q2 2024, reflecting growth in shareholders' equity[34] - Tangible common equity to tangible assets ratio was 7.68% as of September 30, 2024, up from 7.52% in Q2 2024, indicating improved capital strength[34]