Valley National Bancorp Announces Second Quarter 2025 Results

Core Viewpoint Valley National Bancorp reported strong financial performance for the second quarter of 2025, with significant increases in net income, net interest income, and loan growth, while also demonstrating improved credit quality metrics. Financial Performance - Net income for Q2 2025 was $133.2 million, or $0.22 per diluted common share, up from $106.1 million in Q1 2025 and $70.4 million in Q2 2024 [1] - Adjusted net income for Q2 2025 was $134.4 million, or $0.23 per diluted common share, compared to $106.1 million in Q1 2025 and $71.6 million in Q2 2024 [1] - Total revenue for Q2 2025 was $495.0 million, an increase from $478.4 million in Q1 2025 and $452.9 million in Q2 2024 [24] Net Interest Income and Margin - Net interest income on a tax-equivalent basis was $433.7 million for Q2 2025, up $12.3 million from Q1 2025 and $30.7 million from Q2 2024 [3][4] - The net interest margin increased to 3.01% in Q2 2025, up from 2.96% in Q1 2025 and 2.84% in Q2 2024 [5] Loan Portfolio - Total loans increased by $734.3 million, or 6.0% annualized, to $49.4 billion at June 30, 2025, driven by growth in commercial and industrial loans [3][6] - Commercial and industrial loans grew by $719.8 million, or 28.4% annualized, to $10.9 billion [6] - Residential mortgage loans increased by $73.6 million to $5.7 billion [8] Credit Quality - The provision for credit losses for loans was $37.8 million in Q2 2025, down from $62.7 million in Q1 2025 and $82.1 million in Q2 2024 [15] - Non-accrual loans totaled $354.4 million, or 0.72% of total loans, at June 30, 2025, slightly up from 0.71% at March 31, 2025 [11] - Total accruing past due loans increased to $199.2 million, or 0.40% of total loans, from $51.7 million, or 0.11%, at March 31, 2025 [12] Deposits - Total deposits increased by $759.4 million to $50.7 billion at June 30, 2025, primarily due to increases in time deposits and non-interest bearing deposits [9] - Non-interest bearing deposits rose by $118.2 million to $11.7 billion [9] Capital Adequacy - Total risk-based capital ratio was 13.67% at June 30, 2025, down from 13.91% at March 31, 2025, due to the early redemption of subordinated notes [16]