VALLEY NATIONAL(VLYPP) - 2025 Q1 - Quarterly Results

First Quarter 2025 Earnings Overview This section provides an executive summary of Valley National Bancorp's Q1 2025 financial performance, including key highlights and CEO commentary Executive Summary and CEO Commentary Valley National Bancorp reported Q1 2025 net income of $106.1 million, with CEO Ira Robbins highlighting improved funding, core deposit growth, and reduced loan loss provision | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (GAAP, $ millions) | $106.1 | $115.7 | $96.3 | | Diluted EPS (GAAP) | $0.18 | $0.20 | $0.18 | | Adjusted Net Income (Non-GAAP, $ millions) | $106.1 | $75.7 | $99.4 | | Adjusted Diluted EPS (Non-GAAP) | $0.18 | $0.13 | $0.19 | - CEO noted continued improvement in funding base, core deposit growth, and reduced reliance on indirect deposits, benefiting revenue and net interest margin[2] - Provision for loan losses for Q1 2025 was at its lowest point in the last four quarters, and non-accrual loans and early stage delinquencies improved sequentially[2] Key Financial Highlights This section provides a concise overview of key financial performance indicators for Q1 2025, including net interest income, loan portfolio, credit quality, deposits, and non-interest items - Net interest margin on a tax equivalent basis increased by 4 basis points to 2.96 percent in the first quarter 2025 as compared to 2.92 percent for the fourth quarter 2024[3] - Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025, mostly due to normal repayment activity and selective originations within the commercial real estate (CRE) portfolio[3][4] - Provision for credit losses for loans was $62.7 million for the first quarter 2025, compared to $107.0 million for the fourth quarter 2024[4] | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------------------- | :------ | :------ | :------ | | Efficiency Ratio | 55.87% | 57.21% | 59.10% | | Annualized Return on Average Assets (ROA) | 0.69% | 0.74% | 0.63% | | Annualized Return on Average Shareholders' Equity (ROE) | 5.69% | 6.38% | 5.73% | Net Interest Income and Margin Net interest income saw a moderate decrease quarter-over-quarter, while net interest margin improved due to lower funding costs | Metric | Q1 2025 | Q4 2024 | Q1 2024 | Change QoQ | Change YoY | | :-------------------------- | :------ | :------ | :------ | :--------- | :--------- | | Net Interest Income (FTE, $ millions) | $421.4 | $424.3 | $394.8 | -$2.9 | +$26.6 | | Net Interest Margin (FTE) | 2.96% | 2.92% | 2.79% | +4 bps | +17 bps | - The moderate decrease in net interest income from the fourth quarter 2024 was due to the impact of two less days during the first quarter 2025[3] Loan Portfolio Total loans decreased slightly, driven by CRE repayments, while C&I and automobile loans experienced growth | Loan Category | Change (QoQ, $ millions) | Annualized Change | | :-------------------------- | :----------------------- | :---------------- | | Total Loans | -$142.6 | -1.2% | | CRE Loans | -$530.4 | N/A | | C&I Loans | +$218.8 | +8.8% | | Automobile Loans | +$140.2 | +29.5% | - The CRE loan concentration ratio declined to approximately 353 percent at March 31, 2025, from 362 percent at December 31, 2024[4] Allowance and Provision for Credit Losses Allowance for credit losses increased, while the provision for credit losses significantly decreased quarter-over-quarter | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------------------- | :------ | :------ | :------ | | Allowance for Credit Losses for Loans ($ millions) | $594.1 | $573.3 | N/A | | Allowance as % of Total Loans | 1.22% | 1.17% | N/A | | Provision for Credit Losses for Loans ($ millions) | $62.7 | $107.0 | $45.3 | Credit Quality Accruing past due loans and non-accrual loans both improved sequentially, indicating better credit quality | Metric | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :------------------ | | Accruing Past Due Loans ($ millions) | $51.7 | $99.2 | | Accruing Past Due Loans (% of total loans) | 0.11% | 0.20% | | Non-Accrual Loans ($ millions) | $346.5 | $359.5 | | Non-Accrual Loans (% of total loans) | 0.71% | 0.74% | | Net Loan Charge-offs ($ millions) | $41.9 | $98.3 | Deposits Total deposits slightly decreased, with growth in non-interest bearing and savings deposits offset by a decline in indirect customer deposits | Deposit Category | Change (QoQ, $ millions) | | :-------------------------- | :----------------------- | | Total Deposits | -$110.0 | | Non-Interest Bearing Deposits | +$199.9 | | Savings, NOW, Money Market Deposits | +$108.6 | | Indirect Customer Deposits | -$726.5 | - The increases in direct customer deposits were offset by a $726.5 million decrease in indirect customer deposits (consisting largely of brokered CDs) during the first quarter 2025[4] Non-Interest Income Non-interest income increased quarter-over-quarter, primarily driven by net gains on sales of loans | Metric | Q1 2025 ($ millions) | Q4 2024 ($ millions) | | :-------------------------- | :------------------- | :------------------- | | Total Non-Interest Income | $58.3 | $51.2 | | Net Gains on Sales of Loans | $2.2 | -$4.7 | - The increase in non-interest income reflected net gains on sales of loans of $2.2 million for the first quarter 2025 as compared to net losses of $4.7 million for the fourth quarter 2024, which included $7.9 million of losses related to the sale of performing CRE loans[4] Non-Interest Expense Total non-interest expense decreased due to lower professional, legal, and technology-related costs | Metric | Q1 2025 ($ millions) | Q4 2024 ($ millions) | | :-------------------------- | :------------------- | :------------------- | | Total Non-Interest Expense | $276.6 | $278.6 | | Professional and Legal Expenses (decrease) | -$6.1 | N/A | | Technology, Furniture and Equipment Expense (decrease) | -$5.6 | N/A | - The decreases in professional and technology-related expenses were mostly due to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in bank operations[5] Income Tax Expense Income tax expense shifted from a benefit in Q4 2024 to an expense in Q1 2025, with a corresponding change in effective tax rate | Metric | Q1 2025 ($ millions) | Q4 2024 ($ millions) | | :-------------------------- | :------------------- | :------------------- | | Income Tax Expense (Benefit) | $33.1 | -$26.7 | | Effective Tax Rate | 23.8% | -29.9% | - The fourth quarter 2024 income tax benefit reflected a $46.4 million total reduction in uncertain tax liability positions and related accrued interest due to statute of limitation expirations[8] Efficiency Ratio The efficiency ratio improved sequentially and year-over-year, reflecting better operational cost management | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------------- | :------ | :------ | :------ | | Efficiency Ratio | 55.87% | 57.21% | 59.10% | Performance Ratios Annualized return on average assets and equity saw slight quarter-over-quarter decreases but remained stable year-over-year | Metric | Q1 2025 | Q4 2024 | Q1 2024 | | :-------------------------------- | :------ | :------ | :------ | | Annualized Return on Average Assets (ROA) | 0.69% | 0.74% | 0.63% | | Annualized Return on Average Shareholders' Equity (ROE) | 5.69% | 6.38% | 5.73% | | Annualized Return on Average Tangible ROE | 7.76% | 8.81% | 8.19% | Detailed Financial Analysis This section provides an in-depth analysis of Valley National Bancorp's financial performance, covering net interest income, loan and deposit trends, and credit quality metrics Net Interest Income and Margin Net interest income on a tax equivalent basis decreased slightly quarter-over-quarter but increased year-over-year. The net interest margin improved due to a significant decline in the cost of total average deposits, despite a lower yield on average interest-earning assets | Metric | Q1 2025 ($ millions) | Q4 2024 ($ millions) | Q1 2024 ($ millions) | | :-------------------------------- | :------------------- | :------------------- | :------------------- | | Net Interest Income (FTE) | $421.4 | $424.3 | $394.8 | | Interest Income (FTE) | $786.0 | $836.1 | $829.9 | | Interest Expense | $364.6 | $411.8 | $435.1 | | Net Interest Margin (FTE) | 2.96% | 2.92% | 2.79% | | Yield on Average Interest Earning Assets | 5.53% | 5.75% | 5.86% | | Cost of Average Interest Bearing Liabilities | 3.54% | 3.85% | 4.19% | | Cost of Total Average Deposits | 2.65% | 2.94% | 3.16% | - The decrease in interest income was mostly driven by two less days in Q1 2025, the bulk sale of certain performing CRE loans during Q4 2024, and downward repricing on adjustable rate loans[6] - The decrease in interest expense was mainly due to the reduction in day count, a $2.0 billion decrease in average time deposit balances (primarily related to the maturity and repayment of higher cost indirect customer CDs), and lower interest rates on many interest bearing deposit products[6] Loans, Deposits and Other Borrowings This section details the composition and changes in the bank's loan portfolio, deposit base, and other borrowings, highlighting shifts in loan categories and funding sources, with a strategic focus on C&I and auto loan growth while managing CRE exposure Loans Total loans decreased due to CRE repayments, while C&I and automobile loans showed significant annualized growth | Loan Category | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | Annualized Change | | :-------------------------- | :-------------------------- | :--------------------------- | :------------------ | :---------------- | | Total Loans | $48,657.1 | $48,799.7 | -$142.6 | -1.2% | | Total CRE Loans | $29,114.6 | $29,645.0 | -$530.4 | N/A | | Construction Loans | $3,026.9 | $3,114.7 | -$87.8 | N/A | | Multifamily Loans | $8,420.4 | $8,299.3 | +$121.1 | N/A | | C&I Loans | $10,150.2 | $9,931.4 | +$218.8 | +8.8% | | Automobile Loans | $2,041.2 | $1,901.1 | +$140.2 | +29.5% | - The decrease in total CRE loans was largely driven by repayment activity and continued selective origination activity within the CRE portfolio[9] - C&I loans grew by $218.8 million, or 8.8 percent on an annualized basis, largely due to a continued strategic focus on growth within this category[9] Deposits Total deposits slightly decreased, with indirect customer CDs declining while non-interest bearing and savings deposits increased | Deposit Category | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | % of Total Deposits (Mar 31, 2025) | % of Total Deposits (Dec 31, 2024) | | :-------------------------- | :-------------------------- | :--------------------------- | :------------------ | :--------------------------------- | :--------------------------------- | | Total Deposits | $49,965.8 | $50,075.9 | -$110.0 | N/A | N/A | | Non-Interest Bearing | $11,628.6 | $11,428.7 | +$199.9 | 23% | 23% | | Savings, NOW, Money Market | $26,413.3 | $26,304.6 | +$108.6 | 53% | 52% | | Time Deposits | $11,924.0 | $12,342.5 | -$418.5 | 24% | 25% | | Total Indirect Customer Deposits | $6,300.0 | $7,000.0 | -$700.0 | N/A | N/A | - The decrease in time deposit balances was mainly driven by a decline of approximately $661 million in indirect (i.e., brokered) customer CDs, partially offset by deposit inflows from new retail CD offerings[10] - Non-interest bearing deposits increased mostly due to higher commercial customer deposit inflows late in the first quarter 2025[10] Other Borrowings Long-term borrowings decreased due to the maturity and repayment of certain FHLB advances | Borrowing Type | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | | :-------------------------- | :-------------------------- | :--------------------------- | :------------------ | | Short-term borrowings | $59.0 | $72.7 | -$13.7 | | Long-term borrowings | $2,904.6 | $3,174.2 | -$269.6 | - Long-term borrowings decreased $269.6 million as compared to December 31, 2024, due to the maturity and repayment of certain FHLB advances[11] Credit Quality This section provides a detailed breakdown of the bank's credit quality, including trends in non-performing assets, various categories of past due loans, and the allowance for credit losses, highlighting improvements in overall asset quality and coverage Non-Performing Assets (NPAs) Total non-performing assets and non-accrual loans decreased, reflecting improved asset quality, despite a slight increase in non-performing CRE loans | Metric | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :------------------ | | Total NPAs | $356.2 | $373.3 | -$17.1 | | Non-Accrual Loans | $346.5 | $359.5 | -$13.0 | | Non-Accrual Loans (% of total loans) | 0.71% | 0.74% | -0.03% | | OREO | $7.7 | $12.2 | -$4.4 | - Non-accrual loans decreased largely driven by partial charge-offs of two non-performing C&I loan relationships during the first quarter 2025, partially offset by a moderate increase in non-performing CRE loans[12][13] - OREO decreased due to the sale of one CRE property, which resulted in a $2.9 million loss for the first quarter 2025[13] Accruing Past Due Loans Total accruing past due loans significantly decreased, driven by improvements in 30-59 and 60-89 day delinquencies | Category | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | Change ($ millions) | | :-------------------------- | :-------------------------- | :--------------------------- | :------------------ | | Total Accruing Past Due Loans | $51.7 | $99.2 | -$47.5 | | 30 to 59 days past due | $33.4 | $57.1 | -$23.7 | | 60 to 89 days past due | $10.5 | $36.2 | -$25.6 | | 90 or more days past due | $7.8 | $5.9 | +$1.9 | - Loans 30 to 59 days past due decreased largely due to a previously reported delinquent CRE loan becoming current and a general improvement in residential mortgage loan delinquencies[15] - Loans 90 days or more past due and still accruing interest increased, mainly due to an increase in residential mortgage loan delinquencies, though all such loans are well-secured and in the process of collection[15] Allowance for Credit Losses for Loans and Unfunded Commitments The allowance for credit losses for loans increased, while the provision for credit losses decreased, reflecting a balance of charge-offs and reserve adjustments | Metric | March 31, 2025 ($ millions) | December 31, 2024 ($ millions) | March 31, 2024 ($ millions) | | :-------------------------------- | :-------------------------- | :--------------------------- | :-------------------------- | | Total Allowance for Credit Losses for Loans | $594.1 | $573.3 | $487.3 | | Allowance for Loan Losses | $578.2 | $558.9 | $469.2 | | Allowance for Unfunded Credit Commitments | $15.9 | $14.5 | $18.0 | | Allowance for Credit Losses for Loans as % of Total Loans | 1.22% | 1.17% | 0.98% | | Provision for Credit Losses for Loans | $62.7 | $107.0 | $45.3 | | Net Loan Charge-offs | $41.9 | $98.3 | $23.6 | - The first quarter 2025 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves and continued growth in the C&I loan portfolio, partially offset by a decrease in specific reserves associated with collateral dependent loans[18] - Gross loan charge-offs totaled $44.0 million for the first quarter 2025 and included $24.1 million of partial and full charge-offs related to two non-performing C&I loan relationships[17] Capital Adequacy This section reviews Valley National Bancorp's capital position, including key regulatory capital ratios, demonstrating continued financial strength and stability Capital Ratios Valley National Bancorp maintained strong capital ratios in Q1 2025, with slight changes across its total risk-based, Tier 1, common equity Tier 1, and Tier 1 leverage capital ratios compared to the previous quarter, indicating continued financial stability | Capital Ratio | March 31, 2025 | December 31, 2024 | | :-------------------------- | :------------- | :------------------ | | Total Risk-Based Capital | 13.91% | 13.87% | | Tier 1 Capital | 11.53% | 11.55% | | Common Equity Tier 1 Capital | 10.80% | 10.82% | | Tier 1 Leverage Capital | 9.41% | 9.16% | Corporate Information and Outlook This section provides details on the investor conference call, an overview of Valley National Bancorp, and important forward-looking statements and risk factors Investor Conference Call Valley National Bancorp announced details for its Q1 2025 earnings conference call, hosted by CEO Ira Robbins, providing instructions for investor participation and access to webcast and presentation materials - Valley's CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) on April 24, 2025, to discuss Valley's first quarter 2025 earnings[20] - Interested parties should preregister to receive the dial-in number and a personal PIN, and the teleconference will also be webcast live and archived on Valley's website[20] About Valley National Bancorp Valley National Bancorp is a regional bank with approximately $62 billion in assets, committed to empowering people and businesses across multiple states with convenient service, innovation, and a knowledgeable team - Valley National Bank is a regional bank with approximately $62 billion in assets, operating many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois[21] - Valley is committed to giving people and businesses the power to succeed by providing the most convenient service, the latest innovations, and an experienced and knowledgeable team dedicated to meeting customer needs[21] Forward-Looking Statements and Risk Factors This section outlines the forward-looking nature of certain statements in the release and details various factors that could cause actual results to differ materially from expectations, encompassing market, economic, regulatory, operational, and competitive risks - The release contains forward-looking statements about management's confidence, strategies, and expectations, identifiable by terms such as 'intend,' 'should,' 'expect,' 'believe,' and 'anticipate.'[22] - Actual results may differ materially due to factors including market interest rates, macroeconomic conditions, instability in the U.S. financial sector, negative public opinion, changes in regulations, loss of lower-cost funding, litigation, and a prolonged downturn in the economy affecting commercial real estate values[22][23] - Additional risks include higher or lower income tax expense, inability to grow customer deposits, material changes in allowance for credit losses, need to supplement capital, goodwill impairment, technology-related costs, increased competitive challenges, cybersecurity incidents, regulatory examinations, and unexpected significant declines in the loan portfolio[23][25] Consolidated Financial Statements and Supplemental Data This section provides comprehensive financial tables, including selected financial data, balance sheet, loan portfolio details, capital ratios, allowance for credit losses, asset quality, and non-GAAP reconciliations Selected Financial Data This table provides a snapshot of key financial performance metrics for Valley National Bancorp over the past three quarters, including net interest income, total revenue, net income, EPS, and core financial ratios | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Net interest income - FTE | $421,378 | $424,277 | $394,847 | | Non-interest income | $58,294 | $51,202 | $61,415 | | Total revenue | $478,399 | $474,179 | $454,963 | | Non-interest expense | $276,618 | $278,582 | $280,310 | | Net income | $106,058 | $115,711 | $96,280 | | Diluted earnings per share | $0.18 | $0.20 | $0.18 | | Net interest margin - FTE | 2.96% | 2.92% | 2.79% | | Annualized return on average assets | 0.69% | 0.74% | 0.63% | | Annualized return on avg. shareholders' equity | 5.69% | 6.38% | 5.73% | | Efficiency ratio | 55.87% | 57.21% | 59.10% | Balance Sheet and Loan Portfolio Details This section presents key balance sheet items and a detailed breakdown of the loan portfolio by category, showing trends over the past five quarters | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | June 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------ | :------------- | | Assets | $61,865,655 | $62,491,691 | $62,092,332 | $62,058,974 | $61,000,188 | | Total loans | $48,657,128 | $48,799,711 | $49,355,319 | $50,311,702 | $49,922,042 | | Deposits | $49,965,844 | $50,075,857 | $50,395,966 | $50,112,177 | $49,077,946 | | Shareholders' equity | $7,499,897 | $7,435,127 | $6,972,380 | $6,737,737 | $6,727,139 | | Loan Category ($ in thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------- | | Commercial and industrial | $10,150,205 | $9,931,400 | $9,799,287 | $9,104,193 | | Total commercial real estate | $29,114,556 | $29,644,958 | $30,402,196 | $31,705,464 | | Residential mortgage | $5,636,407 | $5,632,516 | $5,684,079 | $5,618,355 | | Total consumer loans | $3,755,960 | $3,590,837 | $3,469,757 | $3,494,030 | Capital Ratios This table provides a comprehensive overview of Valley National Bancorp's capital adequacy ratios, including book value, tangible book value, and various regulatory capital ratios, across multiple quarters | Capital Ratio | March 31, 2025 | December 31, 2024 | September 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------- | | Book value per common share | $12.76 | $12.67 | $13.00 | $12.81 | | Tangible book value per common share | $9.21 | $9.10 | $9.06 | $8.84 | | Tangible common equity to tangible assets | 8.61% | 8.40% | 7.68% | 7.62% | | Tier 1 leverage capital | 9.41% | 9.16% | 8.40% | 8.20% | | Common equity tier 1 capital | 10.80% | 10.82% | 9.57% | 9.34% | | Tier 1 risk-based capital | 11.53% | 11.55% | 10.29% | 9.78% | | Total risk-based capital | 13.91% | 13.87% | 12.56% | 11.88% | Allowance for Credit Losses This table details the allowance for credit losses for loans, including beginning and ending balances, total net charge-offs, and the provision for credit losses, providing a comprehensive view of credit loss trends | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Beginning balance - Allowance for credit losses for loans | $573,328 | $564,671 | $465,550 | | Total net charge-offs | $(41,949) | $(98,308) | $(23,555) | | Provision for credit losses for loans | $62,675 | $106,965 | $45,274 | | Ending balance - Allowance for credit losses for loans | $594,054 | $573,328 | $487,269 | | Allowance for credit losses for loans as a % of total loans | 1.22% | 1.17% | 0.98% | | Loan Category ($ in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Commercial and industrial | $(28,456) | $(31,784) | $(14,293) | | Commercial real estate | $(12,260) | $(69,218) | $(1,204) | | Construction | $(1,163) | $0 | $(7,594) | | Total loans charged-off | $(44,019) | $(103,652) | $(24,900) | Asset Quality This section provides detailed tables on asset quality, including accruing past due loans by delinquency stage and non-accrual loans by category, offering insights into the bank's loan performance and risk profile | Category ($ in thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------- | | Total 30 to 59 days past due | $33,413 | $57,138 | $115,128 | $46,844 | | Total 60 to 89 days past due | $10,528 | $36,167 | $54,788 | $14,189 | | Total 90 or more days past due | $7,756 | $5,889 | $4,780 | $13,355 | | Total accruing past due loans | $51,697 | $99,194 | $174,696 | $74,388 | | Category ($ in thousands) | March 31, 2025 | December 31, 2024 | September 30, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :----------------- | :------------- | | Commercial and industrial | $110,146 | $136,675 | $120,575 | $102,399 | | Commercial real estate | $172,011 | $157,231 | $113,752 | $100,052 | | Construction | $24,275 | $24,591 | $24,657 | $51,842 | | Total non-accrual loans | $346,451 | $359,498 | $296,319 | $287,292 | | Total non-performing assets | $356,219 | $373,329 | $305,102 | $288,773 | | Total non-accrual loans as a % of loans | 0.71% | 0.74% | 0.60% | 0.58% | Non-GAAP Reconciliations to GAAP Financial Measures This section provides detailed reconciliations of various non-GAAP financial measures, such as adjusted net income, EPS, and efficiency ratio, to their most directly comparable GAAP counterparts, along with explanations for the adjustments | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Net income, as reported (GAAP) | $106,058 | $115,711 | $96,280 | | Total non-GAAP adjustments to net income | $11 | $(37,477) | $4,392 | | Income tax adjustments related to non-GAAP adjustments | $(3) | $(2,520) | $(1,224) | | Net income, as adjusted (non-GAAP) | $106,066 | $75,714 | $99,448 | | Net income available to common shareholders, as adjusted (non-GAAP) | $99,111 | $68,689 | $95,329 | | Metric | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Basic earnings, as adjusted (non-GAAP) | $0.18 | $0.13 | $0.19 | | Diluted earnings, as adjusted (non-GAAP) | $0.18 | $0.13 | $0.19 | | Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP) | 7.76% | 5.76% | 8.46% | - Non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley's underlying operational performance, business and performance trends, and may facilitate comparisons with others in the financial services industry[42] Consolidated Statements of Financial Condition (Balance Sheet) This table presents the consolidated balance sheet of Valley National Bancorp, detailing assets, liabilities, and shareholders' equity as of March 31, 2025, and December 31, 2024 | Asset ($ in thousands) | March 31, 2025 | December 31, 2024 | | :-------------------------------- | :------------- | :---------------- | | Total Assets | $61,865,655 | $62,491,691 | | Net Loans | $48,078,928 | $48,240,861 | | Total Investment Securities | $7,278,457 | $6,972,810 | | Goodwill | $1,868,936 | $1,868,936 | | Total Liabilities | $54,365,758 | $55,056,564 | | Total Deposits | $49,965,844 | $50,075,857 | | Total Shareholders' Equity | $7,499,897 | $7,435,127 | Consolidated Statements of Income This table provides the consolidated statements of income for Valley National Bancorp for the three months ended March 31, 2025, December 31, 2024, and March 31, 2024, detailing interest income and expense, net interest income, non-interest income and expense, and net income | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Total Interest Income | $784,752 | $834,826 | $828,656 | | Total Interest Expense | $364,647 | $411,849 | $435,108 | | Net Interest Income | $420,105 | $422,977 | $393,548 | | Provision for credit losses for loans | $62,675 | $106,965 | $45,274 | | Total Non-Interest Income | $58,294 | $51,202 | $61,415 | | Total Non-Interest Expense | $276,618 | $278,582 | $280,310 | | Income Before Income Taxes | $139,120 | $89,061 | $129,453 | | Income Tax Expense (Benefit) | $33,062 | $(26,650) | $33,173 | | Net Income | $106,058 | $115,711 | $96,280 | | Net Income Available to Common Shareholders | $99,103 | $108,686 | $92,161 | Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and Net Interest Income This table provides a detailed quarterly analysis of average balances for assets, liabilities, and shareholders' equity, along with corresponding interest income, expense, and rates, presented on a tax-equivalent basis | Metric ($ in thousands) | March 31, 2025 | December 31, 2024 | March 31, 2024 | | :-------------------------------- | :------------- | :---------------- | :------------- | | Average Interest Earning Assets | $56,891,691 | $58,214,783 | $56,618,797 | | Average Loans | $48,654,921 | $49,730,130 | $50,246,591 | | Average Interest Bearing Liabilities | $41,230,709 | $42,765,949 | $41,556,588 | | Average Deposits | $49,139,303 | $50,726,080 | $48,575,974 | | Average Shareholders' Equity | $7,458,177 | $7,255,159 | $6,725,695 | | Net Interest Income (FTE) | $421,378 | $424,277 | $394,847 | | Net Interest Margin (FTE) | 2.96% | 2.92% | 2.79% | | Yield on Average Interest Earning Assets | 5.53% | 5.75% | 5.86% | | Cost of Average Interest Bearing Liabilities | 3.54% | 3.85% | 4.19% | Shareholders Relations This section provides contact information for shareholders seeking reports or other inquiries, directing them to the Shareholder Relations Specialist Shareholders Contact Information This section provides contact details for shareholders seeking reports or other inquiries, directing them to the Shareholder Relations Specialist - Requests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, at Valley National Bancorp[51] - Contact information includes telephone at (973) 305-3380, fax at (973) 305-1364, or e-mail at tzarkadas@valley.com[51]