Financial Performance - Net income for 2025 was $597.98 million, a 57.4% increase compared to $380.27 million in 2024[435]. - Total comprehensive income for 2025 was $678,938,000, compared to $371,393,000 in 2024, reflecting a significant growth[437]. - Earnings per common share increased to $1.02 in 2025, compared to $0.70 in 2024, representing a growth of 45.7%[435]. - Net income available to common shareholders for 2025 was $569,002,000, an increase from $358,902,000 in 2024 and $482,376,000 in 2023[509]. - Basic earnings per common share for 2025 was $1.02, compared to $0.70 in 2024 and $0.95 in 2023[509]. - Diluted earnings per common share for 2025 was $1.01, up from $0.69 in 2024 and $0.95 in 2023[509]. - Non-interest income reached $262.13 million in 2025, an increase of 16.8% from $224.50 million in 2024[435]. - The provision for credit losses for loans decreased to $139.69 million in 2025, down from $309.39 million in 2024, indicating improved credit quality[435]. Asset and Loan Portfolio - As of December 31, 2025, Valley National Bancorp had total assets of $64.1 billion, total net loans of $49.6 billion, total deposits of $52.2 billion, and total shareholders' equity of $7.8 billion[16]. - Commercial and industrial loans totaled approximately $11.0 billion, representing 21.9% of the total loan portfolio as of December 31, 2025[27]. - Commercial real estate and construction loans amounted to $29.2 billion, accounting for 58.3% of the total loan portfolio as of December 31, 2025[29]. - As of December 31, 2025, residential mortgage loans totaled $5.8 billion, representing 11.6% of the total loan portfolio[33]. - Other consumer loans amounted to $4.1 billion, accounting for 8.2% of the total loan portfolio as of December 31, 2025[33]. - Approximately 71% of Valley's gross loans, totaling $50.1 billion, consisted of commercial real estate, residential mortgage, and home equity loans as of December 31, 2025[37]. - The loan portfolio by state shows New York with $14.8 billion (30%), Florida with $13.6 billion (27%), and New Jersey with $11.2 billion (22%) of total loans[38]. Capital and Equity - Shareholders' equity rose to $7.81 billion in 2025, up from $7.44 billion in 2024, reflecting a growth of 4.8%[433]. - Valley's capital ratios were above the minimum levels required for it to be considered a "well capitalized" financial institution at December 31, 2025 and 2024[88]. - Under Basel III, Valley must maintain a CET1 capital ratio of 7.0% or greater, Tier 1 capital ratio of 8.5% or greater, and total capital ratio of 10.5% or greater[83]. Regulatory Compliance - Valley is subject to significant compliance costs due to extensive regulations, which may increase as new regulations are enacted[74]. - The Bank is subject to federal consumer protection statutes and regulations, including the Truth-In-Lending Act and the Equal Credit Opportunity Act, which govern various aspects of consumer lending[115]. - The Bank is required to establish and maintain a BSA/AML Program to ensure compliance with BSA regulatory requirements[103]. - The Bank's dividend payments are subject to regulatory limitations, including a prohibition on dividends if deemed unsafe by regulators[97]. Employee and Talent Management - Valley's average employee tenure was 7.9 years as of December 31, 2025, with a voluntary turnover rate of 15.1 percent[62]. - Valley employed 3,675 full and part-time employees across its multi-state footprint as of December 31, 2025[62]. - Valley's Talent Acquisition and Learning & Talent Development teams focus on the attraction, development, and retention of key talent, crucial for long-term success[67]. Risk Management and Credit Quality - The company adheres to a credit policy designed to minimize credit risk while maximizing income, with centralized credit authority for significant dollar percentages of the overall portfolio[44]. - The company performs internal stress tests of its capital position, which are subject to review by primary regulators[43]. - The allowance for credit losses for loans is estimated using the CECL methodology, which includes a collective reserve component for estimated lifetime expected credit losses[466]. - Valley's loan credit quality data is based on an internal credit risk rating system, with loans graded and classified based on the obligor's ability to repay and economic conditions[472]. Investment and Securities - Total investment securities and interest-bearing deposits with banks were $7.8 billion and $1.3 billion, respectively, as of December 31, 2025[36]. - Valley's bank owned life insurance is recorded at its cash surrender value and is primarily invested in U.S. Treasury securities and residential mortgage-backed securities[485]. Strategic Initiatives - Valley continues to explore acquisition prospects to maintain and enhance its competitive position in the financial services market[25]. - The company is focused on enhancing its balance sheet flexibility and driving sustainable fee revenue through optimized banking solutions[19]. - Valley's ESG Council was established in 2020 to address sustainability issues and guide the company in considering environmental, social, and governance impacts[68].
Valley National Bancorp Series C Pfd(VLYPN) - 2025 Q4 - Annual Report