Valley National Bancorp(VLY) - 2025 Q3 - Quarterly Results

Executive Summary & CEO Commentary Valley National Bancorp achieved significant Q3 2025 net income and EPS growth, reflecting improved profitability and strategic balance sheet strengthening, as highlighted by CEO Ira Robbins Q3 2025 Financial Performance Overview Valley National Bancorp reported a significant increase in net income for Q3 2025, driven by improved profitability and balance sheet strengthening, with diluted EPS also seeing a notable rise compared to prior periods | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Income (GAAP) (Millions USD) | $163.4M | $133.2M | $97.9M | | Diluted EPS (GAAP) (USD) | $0.28 | $0.22 | $0.18 | | Adjusted Net Income (Non-GAAP) (Millions USD) | $164.1M | $134.4M | $96.8M | | Adjusted Diluted EPS (Non-GAAP) (USD) | $0.28 | $0.23 | $0.18 | CEO Commentary and Strategic Outlook CEO Ira Robbins highlighted Valley's strong momentum, with profitability catching up to balance sheet strengthening initiated in early 2024, and new leadership positively impacting business generation and strategic operating model - Profitability improvement is catching up to balance sheet strengthening since early 2024[2] - New leadership team additions are positively impacting business generation, talent base, and strategic operating model[2] - Valley remains a strong regional bank, combining robust financial products of a large bank with high-touch service and market knowledge of a community bank[2] Key Financial Highlights (Summary) Valley's Q3 2025 highlights include increased net interest income and margin, deposit growth, improved efficiency, and stronger profitability ratios, despite a slight loan portfolio decrease and mixed credit quality trends Net Interest Income and Margin Summary Net interest income and margin both increased in Q3 2025 compared to the prior quarter and year, primarily driven by higher yields on new loan originations, increased average loans and taxable investments, and an additional day in the quarter | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Interest Margin (tax equivalent) (Percent) | 3.05% | 3.01% | 2.86% | | Net Interest Income (tax equivalent) (Millions USD) | $447.5M | $433.7M | $411.8M | - Net interest margin increased by 4 basis points QoQ and 19 basis points YoY[3] - Increase in net interest income mainly due to higher yields on new loan originations, increases in average loans and taxable investments, and one additional day in Q3 2025[3] Deposits Summary Total deposit balances increased in Q3 2025, primarily due to inflows from commercial and government deposits, partially offset by a decline in indirect customer deposits, while non-interest bearing deposits remained stable | Metric | Sep 30, 2025 | Jun 30, 2025 | | :----------------------- | :----------- | :----------- | | Total Deposit Balances (Billions USD) | $51.2B | $50.7B | | Non-interest Bearing Deposits (Billions USD) | $11.7B | $11.7B | - Total deposit balances increased by $450.5 million QoQ[4] - Increase mainly from commercial customer and government deposits in savings, NOW, and money market categories, partially offset by a $629.9 million decline in indirect customer deposits[4] Loan Portfolio Summary Total loans decreased slightly in Q3 2025, primarily due to targeted runoff in commercial real estate (CRE) and commercial and industrial (C&I) loans, while residential mortgage and consumer loans increased | Metric | Sep 30, 2025 | Jun 30, 2025 | | :----------------------- | :----------- | :----------- | | Total Loans (Billions USD) | $49.3B | $49.4B | | CRE Loan Concentration Ratio (Percent) | 337% | 349% | - Total loans decreased by $118.6 million, or 1.0% annualized, QoQ[4] - Decreases in CRE ($142.5 million) and C&I ($112.2 million) loans were partially offset by increases in residential mortgage and total consumer loans[4] Allowance and Provision for Credit Losses Summary The allowance for credit losses for loans increased slightly, maintaining a stable percentage of total loans, while the provision for credit losses for loans significantly decreased compared to the prior quarter and year | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Provision for Credit Losses for Loans (Millions USD) | $19.2M | $37.8M | $75.0M | | Allowance for Credit Losses for Loans (Millions USD) | $598.6M | $594.0M | N/A | | Allowance as % of Total Loans (Percent) | 1.21% | 1.20% | N/A | - Provision for credit losses for loans decreased by $18.6 million QoQ and $55.8 million YoY[4] Credit Quality Summary Net loan charge-offs decreased significantly in Q3 2025, accruing past due loans also declined, but non-accrual loans increased, mainly due to three new non-performing CRE and construction loans | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Loan Charge-offs (Millions USD) | $14.6M | $37.8M | $42.9M | | Accruing Past Due Loans (Sep 30) (Millions USD) | $84.8M | $199.2M | N/A | | Non-Accrual Loans (Sep 30) (Millions USD) | $421.5M | $354.4M | N/A | - Net loan charge-offs decreased by $23.2 million QoQ and $28.3 million YoY[4] - Non-accrual loans increased by $67.1 million QoQ, primarily due to three new non-performing CRE and construction loans totaling $67.0 million[4] Non-Interest Income Summary Non-interest income increased in Q3 2025, driven by higher service charges on deposit accounts and wealth management and trust fees, partially offset by lower bank owned life insurance income and net gains on sales of loans | Metric | Q3 2025 | Q2 2025 | | :----------------------- | :------ | :------ | | Non-Interest Income (Millions USD) | $64.9M | $62.6M | - Non-interest income increased by $2.3 million QoQ[4] - Main drivers were increases in service charges on deposit accounts and wealth management and trust fees, partially offset by lower bank owned life insurance income and net gains on sales of loans[4] Non-Interest Expense Summary Non-interest expense decreased in Q3 2025, mainly due to a decline in FDIC insurance assessment expense and lower other non-interest expense, partially offset by increased professional and legal fees and restructuring-related severance charges | Metric | Q3 2025 | Q2 2025 | | :----------------------- | :------ | :------ | | Non-Interest Expense (Millions USD) | $282.0M | $284.1M | - Non-interest expense decreased by $2.1 million QoQ[4] - Key factors include a $3.8 million decrease in FDIC insurance assessment expense, partially offset by a $4.3 million increase in professional and legal fees and a $3.1 million increase in restructuring-related severance charges[4][5] Efficiency and Performance Ratios Summary Valley's efficiency ratio improved in Q3 2025, and profitability ratios, including ROA, ROE, and tangible ROE, continued to improve steadily, with adjusted annualized ROA reaching its highest level since Q4 2022 | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Efficiency Ratio (Percent) | 53.37% | 55.20% | 56.13% | | Annualized ROA (Percent) | 1.04% | 0.86% | 0.63% | | Annualized ROE (Percent) | 8.58% | 7.08% | 5.70% | | Annualized Tangible ROE (Percent) | 11.59% | 9.62% | 8.06% | - Adjusted annualized ROA for Q3 2025 recovered to the highest level since Q4 2022[8] Detailed Financial Analysis Detailed analysis reveals expanded net interest income and margin, targeted loan portfolio adjustments, deposit growth, mixed credit quality trends, and strengthened capital adequacy Net Interest Income and Margin Net interest income on a tax equivalent basis increased significantly QoQ and YoY, driven by higher interest income from new loan originations and increased average loans/investments, while net interest margin also expanded due to a higher yield on interest-earning assets | Metric | Q3 2025 | Q2 2025 | Q3 2024 | | :-------------------------------- | :------ | :------ | :------ | | Net Interest Income (tax equivalent) (Millions USD) | $447.5M | $433.7M | $411.8M | | Interest Income (tax equivalent) (Millions USD) | $828.2M | $806.3M | $861.9M | | Total Interest Expense (Millions USD) | $380.7M | $372.6M | $450.1M | | Net Interest Margin (tax equivalent) (Percent) | 3.05% | 3.01% | 2.86% | - Net interest income (tax equivalent) increased by $13.8 million QoQ and $35.7 million YoY[6] - Net interest margin (tax equivalent) increased by 4 basis points QoQ and 19 basis points YoY, primarily due to a 5 basis point increase in the yield on average interest-earning assets[7] Loans, Deposits and Other Borrowings Total loans decreased slightly, mainly due to targeted runoff in commercial real estate and industrial loans, while residential mortgages and consumer loans saw increases, deposits grew, and short-term borrowings decreased due to repayments Loans Total loans decreased by $118.6 million QoQ, primarily from reductions in CRE and C&I loans due to targeted runoff and repayment activity, while residential mortgage and consumer loans experienced growth | Loan Category | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :-------------------------- | :----------- | :----------- | :--------- | | Total Loans (Billions USD) | $49.3B | $49.4B | -$118.6M | | Total CRE Loans (Billions USD) | $28.7B | $28.8B | -$142.5M | | Construction Loans (Billions USD) | $2.5B | $2.9B | -$337.6M | | C&I Loans (Billions USD) | $10.8B | $10.9B | -$112.2M | | Residential Mortgage Loans (Billions USD) | $5.8B | $5.7B | +$85.4M | | Total Consumer Loans (Billions USD) | $4.0B | $4.0B | +$50.7M | - CRE loan concentration ratio declined to approximately 337% at September 30, 2025, from 349% at June 30, 2025[4] - Owner-occupied CRE loans increased by $307.9 million, or 21.3% annualized, due to migration from construction loans and new originations[10] Deposits Total deposits increased by $450.5 million, primarily driven by a $1.2 billion increase in savings, NOW, and money market deposits from commercial and government accounts, partially offset by a decrease in time deposits due to maturing indirect customer CDs | Deposit Category | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :----------------------------- | :----------- | :----------- | :--------- | | Total Deposits (Billions USD) | $51.2B | $50.7B | +$450.5M | | Savings, NOW & Money Market (Billions USD) | +$1.2B | N/A | +$1.2B | | Time Deposits (Millions USD) | N/A | N/A | -$616.8M | | Non-interest Bearing Deposits (Billions USD) | $11.7B | $11.7B | Stable | - Indirect customer deposits decreased from $6.5 billion to $5.8 billion QoQ[11] | Deposit Type | Sep 30, 2025 (% of total) | Jun 30, 2025 (% of total) | | :-------------------------- | :------------------------ | :------------------------ | | Non-interest bearing (Percent) | 23% | 23% | | Savings, NOW & Money Market (Percent) | 53% | 52% | | Time Deposits (Percent) | 24% | 25% | Other Borrowings Short-term borrowings decreased significantly due to the repayment of FHLB advances, while long-term borrowings remained relatively stable | Borrowing Type | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :--------------------- | :----------- | :----------- | :--------- | | Short-term Borrowings (Millions USD) | $51.1M | $162.3M | -$111.2M | | Long-term Borrowings (Billions USD) | $2.9B | $2.9B | Stable | - The decrease in short-term borrowings was largely due to the repayment of $100 million of maturing short-term FHLB advances[12] Credit Quality Credit quality showed mixed trends: total non-performing assets and non-accrual loans increased, primarily due to new non-performing CRE and construction loans, but accruing past due loans decreased significantly across all delinquency categories, and net loan charge-offs declined Non-Performing Assets (NPAs) Total non-performing assets increased by $66.6 million QoQ, driven by a $67.1 million increase in non-accrual loans, mainly due to a large construction loan migrating to non-accrual status and two smaller non-performing CRE loans | Metric | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :----------------------- | :----------- | :----------- | :--------- | | Total NPAs (Millions USD) | $427.3M | $360.7M | +$66.6M | | Non-Accrual Loans (Millions USD) | $421.5M | $354.4M | +$67.1M | | Non-Accrual Loans as % of Total Loans (Percent) | 0.86% | 0.72% | +0.14% | - The increase in non-accrual loans was mainly due to one $35.0 million construction loan migrating from past due to non-accrual and two smaller non-performing CRE loans[13] Accruing Past Due Loans Total accruing past due loans decreased significantly by $114.4 million QoQ, with reductions across all delinquency categories (30-59 days, 60-89 days, and 90+ days past due) | Delinquency Category | Sep 30, 2025 | Jun 30, 2025 | Change QoQ | | :--------------------------- | :----------- | :----------- | :--------- | | Total Accruing Past Due Loans (Millions USD) | $84.8M | $199.2M | -$114.4M | | 30 to 59 days past due (Millions USD) | $63.6M | $123.0M | -$59.4M | | 60 to 89 days past due (Millions USD) | $16.2M | $73.3M | -$57.2M | | 90 or more days past due (Millions USD) | $5.0M | $2.9M | +$2.1M | - The decrease in 30-59 days past due loans was largely due to a $39.2 million CRE loan being paid in full and a $35.0 million construction loan migrating to non-accrual[15] - The decrease in 60-89 days past due loans was mainly due to a $60.6 million CRE loan being modified and brought current[16] Allowance for Credit Losses for Loans and Unfunded Commitments The total allowance for credit losses for loans increased slightly QoQ, maintaining a stable percentage of total loans, while the provision for credit losses for loans decreased significantly, reflecting moderate increases in economic forecasts and qualitative reserves | Metric | Sep 30, 2025 | Jun 30, 2025 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | | Allowance for Credit Losses for Loans (Millions USD) | $598.6M | $594.0M | $564.7M | | Allowance as % of Total Loans (Percent) | 1.21% | 1.20% | 1.14% | | Provision for Credit Losses for Loans (Millions USD) | $19.2M | $37.8M | $75.0M | | Net Loan Charge-offs (Millions USD) | $14.6M | $37.8M | $42.9M | - The Q3 2025 provision reflects moderate increases in economic forecast and non-economic qualitative reserve components, and higher specific reserves for collateral-dependent loans, partially offset by a decline in quantitative reserves in C&I and construction loans[19] Capital Adequacy Valley's capital ratios, including total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital, all improved in Q3 2025, and the company repurchased 1.3 million shares of common stock during the quarter | Capital Ratio | Sep 30, 2025 | Jun 30, 2025 | | :-------------------------- | :----------- | :----------- | | Total Risk-Based Capital (Percent) | 13.83% | 13.67% | | Tier 1 Capital (Percent) | 11.72% | 11.57% | | Common Equity Tier 1 Capital (Percent) | 11.00% | 10.85% | | Tier 1 Leverage Capital (Percent) | 9.52% | 9.49% | - Repurchased 1.3 million shares of common stock at an average price of $9.38 during Q3 2025[20] - Repurchased a total of 1.8 million shares at an average price of $9.18 during the nine months ended September 30, 2025[20] Corporate Information This section provides investor call details, an overview of Valley National Bancorp, and important disclosures regarding forward-looking statements and key risk factors Investor Conference Call Valley's CEO, Ira Robbins, hosted a conference call on October 23, 2025, to discuss Q3 2025 earnings, with details for preregistration, webcast access, and investor presentation materials provided - Conference call hosted by CEO Ira Robbins on October 23, 2025, at 11:00 AM (ET) to discuss Q3 2025 earnings[21] - Webcast and archived materials available on Valley's website[21] About Valley National Bancorp Valley National Bank, the principal subsidiary of Valley National Bancorp, is a regional bank with approximately $63 billion in assets, operating across multiple states and focusing on community growth - Valley National Bank is a regional bank with approximately $63 billion in assets[22] - Operates branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois[22] - Committed to providing convenient service, latest innovations, and meeting customer needs, with a focus on corporate citizenship and community prosperity[22] Forward-Looking Statements and Risk Factors The report includes forward-looking statements subject to various risks and uncertainties, including market interest rates, macroeconomic conditions, financial sector instability, regulatory changes, and technology-related challenges - Statements are forward-looking and involve risks and uncertainties, with actual results potentially differing materially[23] - Key risks include impact of market interest rates and monetary policies, unfavorable macroeconomic conditions, instability within the U.S. financial sector, and negative public opinion[23][24] - Other significant risks involve changes in regulations, loss of lower-cost funding, litigation, prolonged economic downturns affecting commercial real estate, and technology-related challenges including cybersecurity threats[24][26] Consolidated Financial Highlights (Tables) This section provides comprehensive consolidated financial tables, including selected data, balance sheet, loan and capital breakdowns, asset quality, non-GAAP reconciliations, income statements, and detailed average balance analysis Selected Financial Data This section provides a summary of key financial data for the three and nine months ended September 30, 2025, including net interest income, non-interest income, total revenue, expenses, net income, EPS, and various financial ratios, both GAAP and non-GAAP adjusted | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net interest income - FTE (Thousands USD) | $447,473 | $433,675 | $411,812 | $1,302,525 | $1,209,643 | | Non-interest income (Thousands USD) | $64,887 | $62,604 | $60,671 | $185,785 | $173,299 | | Total revenue (Thousands USD) | $511,111 | $495,012 | $471,169 | $1,484,522 | $1,379,030 | | Net income (Thousands USD) | $163,355 | $133,167 | $97,856 | $402,580 | $264,560 | | Diluted earnings per common share (USD) | $0.28 | $0.22 | $0.18 | $0.68 | $0.49 | | Net interest margin - FTE (Percent) | 3.05% | 3.01% | 2.86% | 3.01% | 2.83% | | Annualized return on average assets (Percent) | 1.04% | 0.86% | 0.63% | 0.86% | 0.57% | | Efficiency ratio (Percent) | 53.37% | 55.20% | 56.13% | 54.79% | 58.26% | Balance Sheet Items This table presents key balance sheet figures at various quarter-ends, showing trends in total assets, loans, deposits, and shareholders' equity | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :----------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Assets (Thousands USD) | $63,018,614 | $62,705,358 | $61,865,655 | $62,491,691 | $62,092,332 | | Total loans (Thousands USD) | $49,272,823 | $49,391,420 | $48,657,128 | $48,799,711 | $49,355,319 | | Deposits (Thousands USD) | $51,175,758 | $50,725,284 | $49,965,844 | $50,075,857 | $50,395,966 | | Shareholders' equity (Thousands USD) | $7,695,374 | $7,575,421 | $7,499,897 | $7,435,127 | $6,972,380 | Loans Breakdown A detailed breakdown of the loan portfolio by category, illustrating changes in commercial and industrial, commercial real estate (non-owner occupied, multifamily, owner occupied, construction), residential mortgage, and consumer loans over several quarters | Loan Category | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Commercial and industrial (Thousands USD) | $10,757,857 | $10,870,036 | $10,150,205 | $9,931,400 | $9,799,287 | | Total commercial real estate (Thousands USD) | $28,683,374 | $28,825,920 | $29,114,556 | $29,644,958 | $30,402,196 | | Residential mortgage (Thousands USD) | $5,795,395 | $5,709,971 | $5,636,407 | $5,632,516 | $5,684,079 | | Total consumer loans (Thousands USD) | $4,036,197 | $3,985,493 | $3,755,960 | $3,590,837 | $3,469,757 | | Total loans (Thousands USD) | $49,272,823 | $49,391,420 | $48,657,128 | $48,799,711 | $49,355,319 | Capital Ratios This table provides a historical view of Valley's capital adequacy ratios, including book value, tangible book value, and various risk-based capital ratios, demonstrating consistent capital strength | Capital Ratio | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Book value per common share (USD) | $13.09 | $12.89 | $12.76 | $12.67 | $13.00 | | Tangible book value per common share (USD) | $9.57 | $9.35 | $9.21 | $9.10 | $9.06 | | Tangible common equity to tangible assets (Percent) | 8.79% | 8.63% | 8.61% | 8.40% | 7.68% | | Tier 1 leverage capital (Percent) | 9.52% | 9.49% | 9.41% | 9.16% | 8.40% | | Common equity tier 1 capital (Percent) | 11.00% | 10.85% | 10.80% | 10.82% | 9.57% | | Tier 1 risk-based capital (Percent) | 11.72% | 11.57% | 11.53% | 11.55% | 10.29% | | Total risk-based capital (Percent) | 13.83% | 13.67% | 13.91% | 13.87% | 12.56% | Allowance for Credit Losses Details This table details the movement in the allowance for credit losses, including beginning and ending balances, charge-offs, recoveries, and provision for credit losses, broken down by loan category for the three and nine months ended September 30, 2025 and 2024 | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Beginning balance - Allowance for credit losses for loans (Thousands USD) | $594,020 | $594,054 | $532,541 | $573,328 | $465,550 | | Total net charge-offs (Thousands USD) | $(14,587) | $(37,829) | $(42,908) | $(94,365) | $(103,302) | | Provision for credit losses for loans (Thousands USD) | $19,171 | $37,795 | $75,038 | $119,641 | $202,423 | | Ending balance (Thousands USD) | $598,604 | $594,020 | $564,671 | $598,604 | $564,671 | | Allowance for credit losses for loans as a % of total loans (Percent) | 1.21% | 1.20% | 1.14% | 1.21% | 1.14% | Asset Quality Details This table provides a detailed breakdown of accruing past due loans and non-accrual loans by category, as well as other non-performing assets, offering insights into the composition and trends of asset quality | Metric | Sep 30, 2025 | Jun 30, 2025 | Mar 31, 2025 | Dec 31, 2024 | Sep 30, 2024 | | :-------------------------------- | :----------- | :----------- | :----------- | :----------- | :----------- | | Total accruing past due loans (Thousands USD) | $84,760 | $199,202 | $51,697 | $99,194 | $174,696 | | Total non-accrual loans (Thousands USD) | $421,489 | $354,359 | $346,451 | $359,498 | $296,319 | | Total non-performing assets (Thousands USD) | $427,337 | $360,784 | $356,219 | $373,329 | $305,102 | | Total non-accrual loans as a % of loans (Percent) | 0.86% | 0.72% | 0.71% | 0.74% | 0.60% | | Allowance for losses on loans as a % of non-accrual loans (Percent) | 138.79% | 163.53% | 166.89% | 155.45% | 185.05% | Non-GAAP Reconciliations This section provides detailed reconciliations of non-GAAP financial measures, such as adjusted net income, adjusted EPS, adjusted return on average assets, and efficiency ratio, to their most directly comparable GAAP measures, explaining adjustments for non-core items | Metric | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Net income, as reported (GAAP) (Thousands USD) | $163,355 | $133,167 | $97,856 | $402,580 | $264,560 | | Net income, as adjusted (non-GAAP) (Thousands USD) | $164,088 | $134,415 | $96,754 | $404,569 | $267,845 | | Diluted earnings, as adjusted (non-GAAP) (USD) | $0.28 | $0.23 | $0.18 | $0.68 | $0.50 | | Annualized return on average assets, as adjusted (non-GAAP) (Percent) | 1.04% | 0.87% | 0.62% | 0.87% | 0.58% | | Efficiency ratio (non-GAAP) (Percent) | 53.37% | 55.20% | 56.13% | 54.79% | 58.26% | - Non-GAAP adjustments include loss on extinguishment of debt, FDIC special assessment, restructuring charges, net losses on sale of commercial real estate loans, litigation reserve, gains/losses on securities, and litigation settlements[38][39] - Management uses non-GAAP measures to understand underlying operational performance and business trends, believing they provide useful supplemental information to investors[41] Consolidated Statements of Financial Condition This statement provides a snapshot of Valley National Bancorp's assets, liabilities, and shareholders' equity as of September 30, 2025, and December 31, 2024, detailing the financial position | Item | Sep 30, 2025 | Dec 31, 2024 | | :-------------------------------- | :----------- | :----------- | | Total Assets (Thousands USD) | $63,018,614 | $62,491,691 | | Net Loans (Thousands USD) | $48,687,823 | $48,240,861 | | Total Deposits (Thousands USD) | $51,175,758 | $50,075,857 | | Total Liabilities (Thousands USD) | $55,323,240 | $55,056,564 | | Total Shareholders' Equity (Thousands USD) | $7,695,374 | $7,435,127 | - Non-interest bearing deposits increased from $11,428,674 thousand at Dec 31, 2024, to $11,659,725 thousand at Sep 30, 2025[44] - Available for sale debt securities increased from $3,369,724 thousand at Dec 31, 2024, to $4,117,121 thousand at Sep 30, 2025[44] Consolidated Statements of Income This statement presents Valley National Bancorp's revenues, expenses, and net income for the three and nine months ended September 30, 2025 and 2024, highlighting the components of profitability | Item | Q3 2025 | Q2 2025 | Q3 2024 | 9M 2025 | 9M 2024 | | :-------------------------------- | :------ | :------ | :------ | :------ | :------ | | Total interest income (Thousands USD) | $826,923 | $805,012 | $860,549 | $2,416,687 | $2,522,671 | | Total interest expense (Thousands USD) | $380,699 | $372,604 | $450,051 | $1,117,950 | $1,316,940 | | Net Interest Income (Thousands USD) | $446,224 | $432,408 | $410,498 | $1,298,737 | $1,205,731 | | Total non-interest income (Thousands USD) | $64,887 | $62,604 | $60,671 | $185,785 | $173,299 | | Total non-interest expense (Thousands USD) | $281,985 | $284,122 | $269,471 | $842,725 | $827,278 | | Net Income (Thousands USD) | $163,355 | $133,167 | $97,856 | $402,580 | $264,560 | | Net Income Available to Common Shareholders (Thousands USD) | $155,711 | $126,219 | $91,739 | $381,033 | $250,216 | - Interest and fees on loans decreased YoY for both the three-month and nine-month periods[45] - Provision for credit losses for loans decreased significantly from $75,038 thousand in Q3 2024 to $19,171 thousand in Q3 2025[45] Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and Net Interest Income on a Tax Equivalent Basis This detailed table provides an analysis of average balances, interest income/expense, and rates for interest-earning assets and interest-bearing liabilities, along with net interest income and margin on a tax-equivalent basis for the three months ended September 30, 2025, June 30, 2025, and September 30, 2024 | Item | Q3 2025 Avg Balance (Thousands USD) | Q3 2025 Interest (Thousands USD) | Q3 2025 Rate (Percent) | Q2 2025 Avg Balance (Thousands USD) | Q2 2025 Interest (Thousands USD) | Q2 2025 Rate (Percent) | Q3 2024 Avg Balance (Thousands USD) | Q3 2024 Interest (Thousands USD) | Q3 2024 Rate (Percent) | | :-------------------------------- | :------------------ | :--------------- | :----------- | :------------------ | :--------------- | :----------- | :------------------ | :--------------- | :----------- | | Loans | $49,270,853 | $733,214 | 5.95% | $49,032,637 | $720,305 | 5.88% | $50,126,963 | $786,704 | 6.28% | | Total interest earning assets | $58,623,153 | $828,172 | 5.65% | $57,553,624 | $806,279 | 5.60% | $57,651,650 | $861,863 | 5.98% | | Savings, NOW and money market deposits | $27,005,791 | $210,921 | 3.12% | $26,451,349 | $203,390 | 3.08% | $25,017,504 | $235,371 | 3.76% | | Total interest bearing liabilities | $42,677,630 | $380,699 | 3.57% | $41,913,735 | $372,604 | 3.56% | $42,656,956 | $450,051 | 4.22% | | Net interest income/interest rate spread | | $447,473 | 2.08% | | $433,675 | 2.04% | | $411,812 | 1.76% | | Net interest margin on a fully tax equivalent basis | | | 3.05% | | | 3.01% | | | 2.86% | - The average yield on loans increased by 7 basis points QoQ (5.88% to 5.95%)[46] - The average cost of savings, NOW, and money market deposits increased by 4 basis points QoQ (3.08% to 3.12%)[46] Shareholder Relations Contact information for shareholder relations inquiries, including name, title, address, phone, fax, and email, is provided for investors seeking reports or other information - Contact for shareholder relations: Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist[49] - Contact details include phone: (973) 305-3380 and email: tzarkadas@valley.com[49]