VALLEY NATIONAL(US:VLYPP)2025-01-23 14:01Financial Performance - Net income for Q4 2024 was $115.7 million, or $0.20 per diluted share, compared to $97.9 million, or $0.18 per diluted share in Q3 2024, and $71.6 million, or $0.13 per diluted share in Q4 2023[2] - Net interest income for Q4 2024 was $424,277,000, an increase of 3.5% from $411,812,000 in Q3 2024 and up 6.4% from $398,581,000 in Q4 2023[29] - Total revenue for Q4 2024 reached $474,179,000, slightly up from $471,169,000 in Q3 2024 and an increase of 5.3% compared to $449,966,000 in Q4 2023[29] - Reported net income for Q4 2024 was $115,711,000, an increase from $97,856,000 in Q3 2024 and $71,554,000 in Q4 2023[37] - Net income available to common shareholders increased to $358.90 million in 2024 from $482.38 million in 2023, a decline of 25.66%[48] Loan and Deposit Activity - Total loans decreased by $555.6 million, or 4.5% annualized, to $48.8 billion at December 31, 2024, primarily due to normal repayment activity in commercial real estate loans[10] - Total deposits decreased by $320.1 million to $50.1 billion at December 31, 2024, mainly due to a $1.8 billion decrease in time deposits[11] - Total loans decreased to $49,730,130,000 in Q4 2024 from $50,126,963,000 in Q3 2024, but increased from $50,039,429,000 in Q4 2023[29] - Deposits increased to $50,726,080,000 in Q4 2024 from $50,409,234,000 in Q3 2024 and $49,460,571,000 in Q4 2023[29] Credit Quality - The allowance for credit losses for loans totaled $573.3 million, representing 1.17% of total loans, with a provision for credit losses of $107.0 million in Q4 2024[5] - Total Non-Performing Assets (NPAs) increased by $68.2 million to $373.3 million at December 31, 2024, compared to $305.1 million at September 30, 2024[14] - Non-accrual loans rose by $63.2 million to $359.5 million at December 31, 2024, representing 0.74% of total loans, up from 0.60% at September 30, 2024[14] - The provision for credit losses for loans totaled $107.0 million in Q4 2024, compared to $75.0 million in Q3 2024 and $20.7 million in Q4 2023[18] - The total provision for credit losses for loans was $309,388 thousand for the year ended December 31, 2024, significantly higher than $45,625 thousand for the year ended December 31, 2023, indicating a substantial increase of 577.5%[33] Expenses and Efficiency - Non-interest income decreased by $9.5 million to $51.2 million in Q4 2024, primarily due to lower income from litigation settlements[7] - Non-interest expense increased by $9.1 million to $278.6 million in Q4 2024, driven by higher professional and technology-related expenses[7] - The efficiency ratio improved to 57.21% in Q4 2024, compared to 56.13% in Q3 2024 and 60.70% in Q4 2023[7] - Total non-interest expense for the year ended December 31, 2024, was $1.11 billion, down from $1.16 billion in 2023, a decrease of 4.91%[48] Capital and Shareholder Returns - Valley's total risk-based capital ratio increased to 13.87% at December 31, 2024, up from 12.56% at September 30, 2024, due to the issuance of approximately 49.2 million shares of common stock[20] - Basic earnings per share for Q4 2024 were $0.20, up from $0.18 in Q3 2024 and $0.13 in Q4 2023[29] - Dividends on preferred stock increased to $7,025,000 in Q4 2024 from $6,117,000 in Q3 2024 and $4,104,000 in Q4 2023[37] - The company maintained a strong capital position with total shareholders' equity increasing to $7.44 billion in 2024 from $6.70 billion in 2023, an increase of 11.06%[47] Market Position and Strategy - Valley National Bank operates with over $62 billion in assets and is committed to providing innovative services across multiple states[22] - The company continues to focus on expanding its market presence and enhancing its product offerings to drive future growth[49]