Financial Data and Key Metrics Changes - The company reported net income of $133 million or $0.22 per diluted share, compared to $106 million and $0.18 in the previous quarter, reflecting solid momentum in net interest income and non-interest income [4] - Adjusted net income was $134 million or $0.23 per share, up from $106 million on both reported and adjusted basis a quarter ago [4] - Profitability ratios, including return on average assets and return on tangible shareholders' equity, continue to trend higher and are on track to meet full year guidance [5] Business Line Data and Key Metrics Changes - Core deposit growth was $600 million, driven by growth in commercial non-interest bearing deposits and promotional CD offerings [14] - Non-interest income has grown at a 12% annual rate since 2017, more than double the pace of peers, with a significant improvement in the composition of that income [9][20] - C&I loan growth was particularly strong, with over $700 million growth, primarily from fund finance and healthcare verticals [50] Market Data and Key Metrics Changes - The company has added over 105,000 new deposit accounts, contributing to approximately 8% core deposit growth [6] - The geographic footprint combined with specialty verticals like healthcare and fund finance has provided flexibility and scale [8] - The CRE concentration ratio has declined to 349% from 474% at the end of 2023, surpassing year-end targets ahead of schedule [17] Company Strategy and Development Direction - The company is focused on deposit growth and funding transformation, with a deliberate investment in talent, technology, and targeted market penetration [6][10] - The strategic imperatives aim to transform Valley into a more diversified, efficient, and valuable institution, with a focus on capital markets, treasury management, and tax credit advisory offerings [10] - The company recognizes a disconnect between the quality of its franchise and the valuation of its shares, believing that continued execution of its strategy will close that gap over time [11] Management's Comments on Operating Environment and Future Outlook - Management anticipates continued net interest margin expansion driven by asset repricing and stable deposit pricing [27][28] - The outlook for loan growth is approximately 3% for the year, with net interest income growth estimates refined to a range of 8% to 10% [13] - Management expressed confidence in the credit outlook, expecting further normalization and a decline in provision and charge-offs throughout the year [22] Other Important Information - The company has grown cumulative tangible book value with dividends over 105% during the CEO's tenure, approximately 15% greater than the peer median [11] - The company remains extremely well capitalized relative to its risk profile, with ample flexibility to support strategic objectives [23] Q&A Session Summary Question: Can you speak to the ability to maintain deposit pricing given competitive nature and growth outlook? - Management anticipates margin will increase as the year progresses, driven by asset repricing and stability on the deposit side [27][28] Question: Can you provide comments about new non-accrual formation in the quarter? - The increase in delinquencies was driven by three credits, with two already cleared and the remaining expected to be resolved soon [51][52] Question: How is the competitive landscape in the technology and software sector affecting the company? - The company has built infrastructure to leverage its position in the technology sector, particularly through the acquisition of a team with strong market connections [39][40] Question: What are the expectations for loan growth in 2026? - While specific guidance for 2026 has not been provided, management anticipates low single-digit growth in CRE and overall loan growth could be closer to 5% [77]