VALLEY NATIONAL(VLYPP) - 2025 Q3 - Quarterly Results

Financial Performance - Net income for Q3 2025 was $163.4 million, or $0.28 per diluted share, up from $133.2 million, or $0.22 per diluted share in Q2 2025, and $97.9 million, or $0.18 per diluted share in Q3 2024[1]. - Net income available to common shareholders for Q3 2025 was $155.711 million, a 23.4% increase from $126.219 million in Q2 2025 and a 69.9% increase from $91.739 million in Q3 2024[28]. - Net income for the three months ended September 30, 2025, was $163,355 thousand, up from $133,167 thousand in the previous quarter, representing a growth of 22.63%[45]. - Adjusted net income available to common shareholders for the three months ended September 30, 2025, was $156,444,000, compared to $127,467,000 for the same period in 2024, representing a 22.5% increase[40]. Revenue and Income Sources - Net interest income increased to $447.5 million in Q3 2025, up $13.8 million from Q2 2025 and $35.7 million from Q3 2024, with a net interest margin of 3.05%, up 4 basis points from Q2 2025[3][6]. - Non-interest income increased to $64.9 million, up $2.3 million from Q2 2025, mainly due to higher service charges and wealth management fees[4]. - Non-interest income totaled $64,887 thousand for the three months ended September 30, 2025, compared to $62,604 thousand in the previous quarter, reflecting a 3.64% increase[45]. - Net interest income for the nine months ended September 30, 2025, was $1,298,737,000, up from $1,205,731,000 in the same period of 2024, representing a 7.7% increase[43]. Asset and Loan Management - Total loans decreased by $118.6 million, or 1.0% annualized, to $49.3 billion, driven by declines in commercial real estate and commercial and industrial loans[4][10]. - Total loans as of September 30, 2025, were $49.272823 billion, a slight decrease from $49.391420 billion in Q2 2025 but an increase from $48.657128 billion in Q3 2024[30]. - The total loan portfolio amounted to $49.3 billion as of September 30, 2025[18]. - Loans totaled $49.27 billion, with an average interest rate of 5.95%, an increase from 5.88% in the previous quarter[46]. Credit Quality and Losses - The allowance for credit losses for loans was $598.6 million, representing 1.21% of total loans, with a provision for credit losses of $19.2 million in Q3 2025[4]. - Non-accrual loans increased to $421.5 million, or 0.86% of total loans, primarily due to new non-performing loans in the commercial real estate sector[13]. - The provision for credit losses for loans was $19.171 thousand for the three months ended September 30, 2025, down from $37,795 thousand in the previous quarter, indicating a reduction of 49.3%[32]. - Total non-accrual loans increased to $421,489 thousand as of September 30, 2025, up from $354,359 thousand in the previous quarter, representing a rise of 18.9%[34]. Efficiency and Profitability Ratios - Efficiency ratio improved to 53.37% in Q3 2025, down from 55.20% in Q2 2025 and 56.13% in Q3 2024[8]. - Annualized return on average assets (ROA) was 1.04%, and return on equity (ROE) was 8.58% for Q3 2025, indicating steady improvement in profitability ratios[8]. - The annualized return on average tangible shareholders' equity, as adjusted, improved to 11.64% in Q3 2025 from 9.71% in Q3 2024[40]. - The annualized return on average assets, as adjusted, rose to 1.04% in Q3 2025 from 0.87% in Q2 2025, indicating improved asset utilization[43]. Shareholder Returns and Equity - The company repurchased 1.3 million shares of common stock at an average price of $9.38 during the third quarter 2025[20]. - Total shareholders' equity increased to $7,695,374 thousand as of September 30, 2025, from $7,435,127 thousand at December 31, 2024, reflecting a growth of 3.49%[44]. - Book value per common share increased to $13.09 as of September 30, 2025, compared to $12.89 in Q2 2025 and $12.76 in Q1 2025[30]. - Dividends on preferred stock increased to $7,644 thousand for the three months ended September 30, 2025, compared to $6,948 thousand in the previous quarter, marking an increase of 10.0%[38]. Capital and Asset Growth - Total risk-based capital ratio was 13.83% at September 30, 2025, compared to 13.67% at June 30, 2025[20]. - Total assets increased to $63,018,614 thousand as of September 30, 2025, compared to $62,491,691 thousand at December 31, 2024, reflecting a growth of 0.84%[44]. - Average assets for the three months ended September 30, 2025, were $63,046,215,000, up from $62,106,945,000 in Q2 2025, indicating a growth of 1.5%[43]. - Total deposits rose to $51,175,758 thousand, a 2.20% increase from $50,075,857 thousand[44].