Valley National Bancorp(US:VLY) ZACKSยท2025-07-25 16:56Core Viewpoint - Valley National Bancorp reported strong second-quarter 2025 adjusted earnings per share of 23 cents, exceeding estimates and reflecting a significant year-over-year increase of 76.9% [1][9]. Financial Performance - The company's total revenues reached $496.3 million, marking a 9.3% increase year-over-year and surpassing the Zacks Consensus Estimate of $493.2 million [3][9]. - Net interest income (NII) was $433.7 million, up 7.6% year-over-year, with a net interest margin of 3.01%, expanding by 17 basis points [3]. - Non-interest income rose 22.2% year-over-year to $62.6 million, driven by increases in most fee income components [4]. - Non-interest expenses increased by 2.4% year-over-year to $284.1 million, with adjusted non-interest expenses rising 1.2% to $273.3 million [4]. Asset Quality and Credit Metrics - Total loans as of June 30, 2025, were $49.4 billion, up 1.5% sequentially, while total deposits increased to $50.7 billion, also up 1.5% [5]. - Total non-performing assets were $360.8 million, reflecting a 15.3% year-over-year increase, with the allowance for credit losses as a percentage of total loans at 1.20%, up 14 basis points [6]. Profitability and Capital Ratios - Adjusted annualized return on average assets improved to 0.87%, up from 0.47% in the prior year, while the return on average shareholders' equity rose to 7.15% from 4.24% [7]. - The tangible common equity to tangible assets ratio was 8.63%, an increase from 7.52% year-over-year, and the Tier 1 risk-based capital ratio improved to 11.57% from 9.98% [8].