Valley National Bancorp Announces First Quarter 2025 Results

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2025 of $106.1 million, or $0.18 per diluted common share, as compared to the fourth quarter 2024 net income of $115.7 million, or $0.20 per diluted common share, and net income of $96.3 million, or $0.18 per diluted common share, for the first quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $106.1 million, or $0.18 per diluted common share, for the first quarter 2025, $75.7 million, or $0.13 per diluted common share, for the fourth quarter 2024, and $99.4 million, or $0.19 per diluted common share, for the first quarter 2024. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the "Consolidated Financial Highlights" tables. Ira Robbins, CEO, commented, "The first quarter was highlighted by the continued improvement in our funding base. Core deposit growth has enabled us to further reduce our reliance on indirect deposits which benefited our revenue and net interest margin. We anticipate that additional core deposit growth will create a sustainable tailwind despite the volatility in the current operating environment.” Mr. Robbins continued, “I am generally pleased with the quarter’s results from a credit perspective. The provision for loan losses for the first quarter was at the lowest point in the last four quarters, and we anticipate further improvement throughout the remainder of the year. Non-accrual loans and early stage delinquencies also improved sequentially, and we believe our allowance coverage to total loans is at a comfortable level as of March 31, 2025. We remain on track to achieve our profitability goals for the year as we continue to benefit from the net interest income and credit cost tailwinds that we have discussed previously.” Key financial highlights for the first quarter 2025: Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 4 basis points to 2.96 percent in the first quarter 2025 as compared to 2.92 percent for the fourth quarter 2024. Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. The moderate decrease in net interest income from the fourth quarter 2024 was due to the impact of two less days during the first quarter 2025. See additional details in the "Net Interest Income and Margin" section below.Loan Portfolio: Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024 mostly due to normal repayment activity and selective originations within the commercial real estate (CRE) portfolio. As a result, our CRE loan concentration ratio (defined as total commercial real estate loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 353 percent at March 31, 2025 from 362 percent at December 31, 2024. Partially offsetting the lower CRE loan balances, commercial and industrial (C&I) and automobile loans grew by $218.8 million and $140.2 million, respectively, at March 31, 2025 from December 31, 2024. Auto loan originations resulting from high quality consumer demand remained strong during the first quarter 2025. See the "Loans" section below for more details.Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $594.1 million and $573.3 million at March 31, 2025 and December 31, 2024, respectively, representing 1.22 percent and 1.17 percent of total loans at each respective date. During the first quarter 2025, we recorded a provision for credit losses for loans of $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. See the "Credit Quality" section below for more details.Credit Quality: Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024. Non-accrual loans totaled $346.5 million, or 0.71 percent of total loans, at March 31, 2025 as compared to $359.5 million, or 0.74 percent of total loans, at December 31, 2024. Net loan charge-offs totaled $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and first quarter 2024, respectively. See the "Credit Quality" section below for more details.Deposits: Non-interest bearing deposits increased $199.9 million to $11.6 billion at March 31, 2025 from December 31, 2024 largely due to higher inflows of commercial customer deposits during the first quarter 2025. Savings, NOW, and money market deposits increased $108.6 million to $26.4 billion at March 31, 2025 from December 31, 2024 mostly due to new deposits from our online savings deposit product offerings. Total actual deposit balances decreased $110.0 million to $50.0 billion at March 31, 2025 as compared to $50.1 billion at December 31, 2024 as the increases in our direct customer deposits were offset by a $726.5 million decrease in indirect customer deposits (consisting largely of brokered CDs) during the first quarter 2025. See the "Deposits" section below for more details.Non-Interest Income: Non-interest income increased $7.1 million to $58.3 million for the first quarter 2025 as compared to the fourth quarter 2024. The increase reflected net gains on sales of loans of $2.2 million for the first quarter 2025 as compared to net losses of $4.7 million for the fourth quarter 2024, which included $7.9 million of losses related to the sale of performing CRE loans.Non-Interest Expense: Non-interest expense decreased $2.0 million to $276.6 million for the first quarter 2025 as compared to the fourth quarter 2024 largely due to decreases of $6.1 million in professional and legal expenses; and $5.6 million in technology, furniture and equipment expense, partially offset by higher amortization of tax credit investments and the normal seasonal increases in salary and employee benefits expense related to payroll taxes during the first quarter 2025. The decreases in professional and technology-related expenses were mostly due to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in our bank operations.Income Tax Expense: Income tax expense was $33.1 million for the first quarter 2025 as compared to an income tax benefit of $26.7 million for the fourth quarter 2024, which reflected a $46.4 million total reduction in uncertain tax liability positions and related accrued interest due to statute of limitation expirations. Our effective tax rate was 23.8 percent for the first quarter 2025 compared to a negative 29.9 percent for the fourth quarter 2024.Efficiency Ratio: Our efficiency ratio was 55.87 percent for the first quarter 2025 as compared to 57.21 percent and 59.10 percent for the fourth quarter 2024 and first quarter 2024, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.69 percent, 5.69 percent and 7.76 percent for the first quarter 2025, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures. Net Interest Income and Margin Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. Interest income on a tax equivalent basis decreased $50.1 million to $786.0 million for the first quarter 2025 as compared to the fourth quarter 2024. The decrease was mostly driven by the impact of (i) two less days in the first quarter 2025, (ii) the bulk sale of certain performing CRE loans during the fourth quarter 2024, and (iii) downward repricing on adjustable rate loans. Total interest expense decreased $47.2 million to $364.6 million for the first quarter 2025 as compared to the fourth quarter 2024 mainly due to (i) the aforementioned reduction in day count, (ii) a $2.0 billion decrease in average time deposit balances (primarily related to the maturity and repayment of higher cost indirect customer CDs), and (iii) lower interest rates on many interest bearing deposit products in the first quarter 2025. See the "Deposits" and "Other Borrowings" sections below for more details. Net interest margin on a tax equivalent basis of 2.96 percent for the first quarter 2025 increased by 4 basis points from 2.92 percent for the fourth quarter 2024 and increased 17 basis points from 2.79 percent for the first quarter 2024. The increase as compared to the fourth quarter 2024 was mostly due to the 29 basis point decline in our cost of total average deposits, largely offset by the lower yield on average interest earning assets. The yield on average interest earning assets decreased by 22 basis points to 5.53 percent on a linked quarter basis largely due to downward repricing of our adjustable rate loans and two less days in the first quarter 2025, partially offset by higher yielding investment purchases. The overall cost of average interest bearing liabilities decreased 31 basis points to 3.54 percent for the first quarter 2025 as compared to the fourth quarter 2024 largely due to a decrease in higher cost time deposits and lower interest rates on most deposit products. Our cost of total average deposits was 2.65 percent for the first quarter 2025 as compared to 2.94 percent and 3.16 percent for the fourth quarter 2024 and the first quarter 2024, respectively. Loans, Deposits and Other Borrowings Loans. Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024. Total CRE (including construction) loans decreased $530.4 million to $29.1 billion at March 31, 2025 from December 31, 2024. The decrease was largely driven by repayment activity and continued selective origination activity within the CRE portfolio. Additionally, construction loans decreased $87.8 million to $3.0 billion at March 31, 2025 from December 31, 2024 mainly due to the migration of completed projects to permanent financing within the multifamily loan category during the first quarter 2025 and a non-performing loan totaling $10.2 million, net of $638 thousand of charge-offs, transferred to loans held for sale at March 31, 2025, partially offset by new advances. As a result of the completed construction projects, multifamily loans increased $121.1 million to $8.4 billion at March 31, 2025 from December 31, 2024. C&I loans grew by $218.8 million, or 8.8 percent on an annualized basis, to $10.2 billion at March 31, 2025 from December 31, 2024 largely due to our continued strategic focus on growth within this category. Automobile loans increased by $140.2 million, or 29.5 percent on an annualized basis, to $2.0 billion at March 31, 2025 from December 31, 2024 mainly due to high quality consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Deposits. Actual ending balances for deposits decreased $110.0 million to $50.0 billion at March 31, 2025 from December 31, 2024 mainly due to a $418.5 million decrease in time deposits, partially offset by increases of $199.9 million and $108.6 million in non-interest bearing deposits and savings, NOW and money market deposits, respectively. The decrease in time deposit balances was mainly driven by a decline of approximately $661 million in indirect (i.e., brokered) customer CDs, partially offset by deposit inflows from new retail CD offerings during the first quarter 2025. The increase in non-interest bearing was mostly due to higher commercial customer deposit inflows late in the first quarter 2025. Savings, NOW and money market deposit balances increased at March 31, 2025 from December 31, 2024 largely due to new deposits from our online savings deposit product offerings, partially offset by lower governmental deposits account balances. Total indirect customer deposits (including both brokered money market and time deposits) totaled $6.3 billion and $7.0 billion in March 31, 2025 and December 31, 2024, respectively. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 24 percent of total deposits as of March 31, 2025, respectively, as compared to 23 percent, 52 percent and 25 percent of total deposits as of December 31, 2024, respectively. Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $13.7 million to $59.0 million at March 31, 2025 from December 31, 2024. Long-term borrowings totaled $2.9 billion at March 31, 2025 and decreased $269.6 million as compared to December 31, 2024 due to the maturity and repayment of certain FHLB advances. Credit Quality Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $17.1 million to $356.2 million at March 31, 2025 as compared to December 31, 2024. Non-accrual loans decreased $13.0 million to $346.5 million at March 31, 2025 as compared to $359.5 million at December 31, 2024 largely driven by partial charge-offs of two non-performing C&I loan relationships during the first quarter 2025, partially offset by a moderate increase in non-performing CRE loans at March 31, 2025. Non-accrual loans represented 0.71 percent of total loans at March 31, 2025 as compared to 0.74 percent of total loans at December 31, 2024. OREO decreased $4.4 million to $7.7 million at March 31, 2025 from December 31, 2024 mostly due to the sale of one CRE property, which resulted in a $2.9 million loss for the first quarter 2025. Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024. Loans 30 to 59 days past due decreased $23.7 million to $33.4 million at March 31, 2025 as compared to December 31, 2024 largely due to a previously reported delinquent CRE loan totaling $15.4 million that was current to its contractual payments at March 31, 2025, as well as a general improvement in residential mortgage loan delinquencies in this category. Loans 60 to 89 days past due decreased $25.6 million to $10.5 million at March 31, 2025 as compared to December 31, 2024 mostly due to the renewal of an $18.6 million matured performing CRE loan reported in this delinquency category at December 31, 2024 and two CRE loans totaling $6.9 million that were reclassified to the non-accrual category during the first quarter 2025. Loans 90 days or more past due and still accruing interest increased $1.9 million to $7.8 million at March 31, 2025 as compared to December 31, 2024 mainly due to an increase in residential mortgage loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection. Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at March 31, 2025, December 31, 2024 and March 31, 2024: March 31, 2025 December 31, 2024 March 31, 2024 Allocation Allocation Allocation as a % of as a % of as a % of Allowance Loan Allowance Loan Allowance Loan Allocation Category Allocation Category Allocation Category ($ in thousands)Loan Category: Commercial and industrial loans$184,700 1.82% $173,002 1.74% $138,593 1.52%Commercial real estate loans: Commercial real estate 266,938 1.02 251,351 0.95 209,355 0.74 Construction 54,724 1.81 52,797 1.70 56,492 1.59 Total commercial real estate loans 321,662 1.10 304,148 1.03 265,847 0.84 Residential mortgage loans 48,906 0.87 58,895 1.05 44,377 0.79 Consumer loans: Home equity 3,401 0.56 3,379 0.56 2,809 0.50 Auto and other consumer 19,531 0.62 19,426 0.65 17,622 0.60 Total consumer loans 22,932 0.61 22,805 0.64 20,431 0.58 Allowance for loan losses 578,200 1.19 558,850 1.15 469,248 0.94 Allowance for unfunded credit commitments 15,854 14,478 18,021 Total allowance for credit losses for loans$594,054 $573,328 $487,269 Allowance for credit losses for loans as a % total of loans 1.22% 1.17% 0.98% Our loan portfolio, totaling $48.7 billion at March 31, 2025, had net loan charge-offs totaling $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and the first quarter 2024, respectively. Gross loan charge-offs totaled $44.0 million for the first quarter 2025 and included $24.1 million of partial and full charge-offs related to two non-performing C&I loan relationships with combined specific reserves of $16.0 million at December 31, 2024. The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.22 percent at March 31, 2025, 1.17 percent at December 31, 2024, and 0.98 percent at March 31, 2024. For the first quarter 2025, the provision for credit losses for loans totaled $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. The first quarter 2025 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves and continued growth in the C&I loan portfolio, partially offset by a decrease in specific reserves associated with collateral dependent loans at March 31, 2025. Capital Adequacy Valley's total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital ratios were 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025 as compared to 13.87 percent, 11.55 percent, 10.82 percent and 9.16 percent, respectively, at December 31, 2024. Investor Conference Call Valley’s CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss Valley's first quarter 2025 earnings. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, May 26, 2025. Investor presentation materials will be made available prior to the conference call at valley.com. About Valley As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to valley.com or call our Customer Care Center at 800-522-4100. Forward-Looking Statements The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to: the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs, any retaliatory actions, related market uncertainty, or other factors; debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as legislation and policy changes under the new U.S. presidential administration, geopolitical instabilities or events, natural and other disasters, including severe weather events, health emergencies, acts of terrorism, or other external events;the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;changes in the statutes, regulations, policies, or enforcement priorities of the federal bank regulatory agencies;the loss of or decrease in lower-cost funding sources within our deposit base;damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters;a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio;higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;the inability to grow customer deposits to keep pace with the level of loan growth;a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;increased competitive challenges, including our ability to stay current with rapid technological changes in the financial services industry;cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks;results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events;our ability to successfully execute our business plan and strategic initiatives; andunexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors. A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2024. We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements. -Tables to Follow- VALLEY NATIONAL BANCORPCONSOLIDATED FINANCIAL HIGHLIGHTS SELECTED FINANCIAL DATA Three Months Ended March 31, December 31, March 31,($ in thousands, except for share data and stock price)2025 2024 2024FINANCIAL DATA: Net interest income - FTE (1)$421,378 $424,277 $394,847 Net interest income$420,105 $422,977 $393,548 Non-interest income 58,294 51,202 61,415 Total revenue 478,399 474,179 454,963 Non-interest expense 276,618 278,582 280,310 Pre-provision net revenue 201,781 195,597 174,653 Provision for credit losses 62,661 106,536 45,200 Income tax expense (benefit) 33,062 (26,650) 33,173 Net income 106,058 115,711 96,280 Dividends on preferred stock 6,955 7,025 4,119 Net income available to common shareholders$99,103 $108,686 $92,161 Weighted average number of common shares outstanding: Basic 559,613,272 536,159,463 508,340,719 Diluted 563,305,525 540,087,600 510,633,945 Per common share data: Basic earnings$0.18 $0.20 $0.18 Diluted earnings 0.18 0.20 0.18 Cash dividends declared 0.11 0.11 0.11 Closing stock price - high 10.42 10.78 10.80 Closing stock price - low 8.56 8.70 7.43 FINANCIAL RATIOS: Net interest margin 2.95% 2.91% 2.78%Net interest margin - FTE (1) 2.96 2.92 2.79 Annualized return on average assets 0.69 0.74 0.63 Annualized return on avg. shareholders' equity 5.69 6.38 5.73 NON-GAAP FINANCIAL DATA AND RATIOS: (2) Basic earnings per share, as adjusted$0.18 $0.13 $0.19 Diluted earnings per share, as adjusted 0.18 0.13 0.19 Annualized return on average assets, as adjusted 0.69% 0.48% 0.65%Annualized return on average shareholders' equity, as adjusted 5.69 4.17 5.91 Annualized return on avg. tangible shareholders' equity 7.76 8.81 8.19 Annualized return on average tangible shareholders' equity, as adjusted 7.76 5.76 8.46 Efficiency ratio 55.87 57.21 59.10 AVERAGE BALANCE SHEET ITEMS: Assets$61,502,768 $62,865,338 $61,256,868 Interest earning assets 56,891,691 58,214,783 56,618,797 Loans 48,654,921 49,730,130 50,246,591 Interest bearing liabilities 41,230,709 42,765,949 41,556,588 Deposits 49,139,303 50,726,080 48,575,974 Shareholders' equity 7,458,177 7,255,159 6,725,695 As OfBALANCE SHEET ITEMS:March 31, December 31, September 30, June 30, March 31,(In thousands)2025 2024 2024 2024 2024Assets$61,865,655 $62,491,691 $62,092,332 $62,058,974 $61,000,188 Total loans 48,657,128 48,799,711 49,355,319 50,311,702 49,922,042 Deposits 49,965,844 50,075,857 50,395,966 50,112,177 49,077,946 Shareholders' equity 7,499,897 7,435,127 6,972,380 6,737,737 6,727,139 LOANS: (In thousands) Commercial and industrial$10,150,205 $9,931,400 $9,799,287 $9,479,147 $9,104,193 Commercial real estate: Non-owner occupied 11,945,222 12,344,355 12,647,649 13,710,015 14,962,851 Multifamily 8,420,385 8,299,250 8,612,936 8,976,264 8,818,263 Owner occupied 5,722,014 5,886,620 5,654,147 5,536,844 4,367,839 Construction 3,026,935 3,114,733 3,487,464 3,545,723 3,556,511 Total commercial real estate 29,114,556 29,644,958 30,402,196 31,768,846 31,705,464 Residential mortgage 5,636,407 5,632,516 5,684,079 5,627,113 5,618,355 Consumer: Home equity 602,161 604,433 581,181 566,467 564,083 Automobile 2,041,227 1,901,065 1,823,738 1,762,852 1,700,508 Other consumer 1,112,572 1,085,339 1,064,838 1,107,277 1,229,439 Total consumer loans 3,755,960 3,590,837 3,469,757 3,436,596 3,494,030 Total loans$48,657,128 $48,799,711 $49,355,319 $50,311,702 $49,922,042 CAPITAL RATIOS: Book value per common share$12.76 $12.67 $13.00 $12.82 $12.81 Tangible book value per common share (2) 9.21 9.10 9.06 8.87 8.84 Tangible common equity to tangible assets (2) 8.61% 8.40% 7.68% 7.52% 7.62%Tier 1 leverage capital 9.41 9.16 8.40 8.19 8.20 Common equity tier 1 capital 10.80 10.82 9.57 9.55 9.34 Tier 1 risk-based capital 11.53 11.55 10.29 9.98 9.78 Total risk-based capital 13.91 13.87 12.56 12.17 11.88 Three Months EndedALLOWANCE FOR CREDIT LOSSES:March 31, December 31, March 31,($ in thousands)2025 2024 2024Allowance for credit losses for loans Beginning balance - Allowance for credit losses for loans$573,328 $564,671 $465,550 Loans charged-off: Commercial and industrial (28,456) (31,784) (14,293)Commercial real estate (12,260) (69,218) (1,204)Construction (1,163) — (7,594)Residential mortgage — (29) — Total consumer (2,140) (2,621) (1,809)Total loans charged-off (44,019) (103,652) (24,900)Charged-off loans recovered: Commercial and industrial 810 1,452 682 Commercial real estate 249 3,138 241 Residential mortgage 168 81 25 Total consumer 843 673 397 Total loans recovered 2,070 5,344 1,345 Total net charge-offs (41,949) (98,308) (23,555)Provision for credit losses for loans 62,675 106,965 45,274 Ending balance$594,054 $573,328 $487,269 Components of allowance for credit losses for loans: Allowance for loan losses$578,200 $558,850 $469,248 Allowance for unfunded credit commitments 15,854 14,478 18,021 Allowance for credit losses for loans$594,054 $573,328 $487,269 Components of provision for credit losses for loans: Provision for credit losses for loans$61,299 $108,831 $46,723 Provision (credit) for unfunded credit commitments 1,376 (1,866) (1,449)Total provision for credit losses for loans$62,675 $106,965 $45,274 Annualized ratio of total net charge-offs to total average loans 0.34% 0.79% 0.19%Allowance for credit losses for loans as a % of total loans 1.22% 1.17% 0.98% As OfASSET QUALITY:March 31, December 31, September 30, June 30, March 31,($ in thousands)2025 2024 2024 2024 2024Accruing past due loans: 30 to 59 days past due: Commercial and industrial$3,609 $2,389 $4,537 $5,086 $6,202 Commercial real estate 170 20,902 76,370 1,879 5,791 Residential mortgage 16,747 21,295 19,549 17,389 20,819 Total consumer 12,887 12,552 14,672 21,639 14,032 Total 30 to 59 days past due 33,413 57,138 115,128 45,993 46,844 60 to 89 days past due: Commercial and industrial 420 1,007 1,238 1,621 2,665 Commercial real estate — 24,903 43,926 — 3,720 Residential mortgage 7,700 5,773 6,892 6,632 5,970 Total consumer 2,408 4,484 2,732 3,671 1,834 Total 60 to 89 days past due 10,528 36,167 54,788 11,924 14,189 90 or more days past due: Commercial and industrial — 1,307 1,786 2,739 5,750 Commercial real estate — — — 4,242 — Construction — — — 3,990 3,990 Residential mortgage 6,892 3,533 1,931 2,609 2,884 Total consumer 864 1,049 1,063 898 731 Total 90 or more days past due 7,756 5,889 4,780 14,478 13,355 Total accruing past due loans$51,697 $99,194 $174,696 $72,395 $74,388 Non-accrual loans: Commercial and industrial$110,146 $136,675 $120,575 $102,942 $102,399 Commercial real estate 172,011 157,231 113,752 123,011 100,052 Construction 24,275 24,591 24,657 45,380 51,842 Residential mortgage 35,393 36,786 33,075 28,322 28,561 Total consumer 4,626 4,215 4,260 3,624 4,438 Total non-accrual loans 346,451 359,498 296,319 303,279 287,292 Other real estate owned (OREO) 7,714 12,150 7,172 8,059 88 Other repossessed assets 2,054 1,681 1,611 1,607 1,393 Total non-performing assets$356,219 $373,329 $305,102 $312,945 $288,773 Total non-accrual loans as a % of loans 0.71% 0.74% 0.60% 0.60% 0.58%Total accruing past due and non-accrual loans as a % of loans 0.82 0.94% 0.95% 0.75% 0.72%Allowance for losses on loans as a % of non-accrual loans 166.89 155.45% 185.05% 171.23% 163.33% NOTES TO SELECTED FINANCIAL DATA (1) Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules.(2) Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies. Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended March 31, December 31, March 31,($ in thousands, except for share data)2025 2024 2024Adjusted net income available to common shareholders (non-GAAP): Net income, as reported (GAAP)$106,058 $115,711 $96,280 Add: FDIC special assessment (a) — — 7,394 Add: Losses on available for sale and held to maturity debt securities, net (b) 11 3 7 Add: Restructuring charge(c) — 1,085 620 Add: Net losses on the sale of commercial real estate loans (d) — 7,866 — Less: Gain on sale of commercial premium finance lending division (e) — — (3,629)Less: Income tax benefit (f) — (46,431) — Total non-GAAP adjustments to net income 11 (37,477) 4,392 Income tax adjustments related to non-GAAP adjustments (g) (3) (2,520) (1,224)Net income, as adjusted (non-GAAP)$106,066 $75,714 $99,448 Dividends on preferred stock 6,955 7,025 4,119 Net income available to common shareholders, as adjusted (non-GAAP)$99,111 $68,689 $95,329 (a) Included in the FDIC insurance assessment.(b) Included in gains on securities transactions, net.(c) Represents severance expense related to workforce reductions within salary and employee benefits expense.(d) Represents actual and mark to market losses on commercial real estate loan sales included in gains (losses) on sales of loans, net.(e) Included in gains (losses) on sales of assets, net within non-interest income.(f) Represents the income tax benefit from the reduction in uncertain tax liability positions and accrued interest due to statute of limitation expirations included in income tax expense (benefit).(g) Calculated using the appropriate blended statutory tax rate for the applicable period. Adjusted per common share data (non-GAAP): Net income available to common shareholders, as adjusted (non-GAAP)$99,111 $68,689 $95,329 Average number of shares outstanding 559,613,272 536,159,463 508,340,719 Basic earnings, as adjusted (non-GAAP)$0.18 $0.13 $0.19 Average number of diluted shares outstanding 563,305,525 540,087,600 510,633,945 Diluted earnings, as adjusted (non-GAAP)$0.18 $0.13 $0.19 Adjusted annualized return on average tangible shareholders' equity (non-GAAP): Net income, as adjusted (non-GAAP)$106,066 $75,714 $99,448 Average shareholders' equity$7,458,177 $7,255,159 $6,725,695 Less: Average goodwill and other intangible assets 1,994,061 2,000,574 2,024,999 Average tangible shareholders' equity$5,464,116 $5,254,585 $4,700,696 Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP) 7.76% 5.76% 8.46%Adjusted annualized return on average assets (non-GAAP): Net income, as adjusted (non-GAAP)$106,066 $75,714 $99,448 Average assets$61,502,768 $62,865,338 $61,256,868 Annualized return on average assets, as adjusted (non-GAAP) 0.69% 0.48% 0.65% Non-GAAP Reconciliations to GAAP Financial Measures (Continued) Three Months Ended March 31, December 31, March 31,($ in thousands, except for share data)2025 2024 2024Adjusted annualized return on average shareholders' equity (non-GAAP): Net income, as adjusted (non-GAAP)$106,066 $75,714 $99,448 Average shareholders' equity$7,458,177 $7,255,159 $6,725,695 Annualized return on average shareholders' equity, as adjusted (non-GAAP) 5.69% 4.17% 5.91%Annualized return on average tangible shareholders' equity (non-GAAP): Net income, as reported (GAAP)$106,058 $115,711 $96,280 Average shareholders' equity$7,458,177 $7,255,159 $6,725,695 Less: Average goodwill and other intangible assets 1,994,061 2,000,574 2,024,999 Average tangible shareholders' equity$5,464,116 $5,254,585 $4,700,696 Annualized return on average tangible shareholders' equity (non-GAAP) 7.76% 8.81% 8.19% Efficiency ratio (non-GAAP): Non-interest expense, as reported (GAAP)$276,618 $278,582 $280,310 Less: FDIC special assessment (pre-tax) — — 7,394 Less: Restructuring charge (pre-tax) — 1,085 620 Less: Amortization of tax credit investments (pre-tax) 9,320 1,740 5,562 Non-interest expense, as adjusted (non-GAAP)$267,298 $275,757 $266,734 Net interest income, as reported (GAAP) 420,105 422,977 393,548 Non-interest income, as reported (GAAP) 58,294 51,202 61,415 Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) 11 3 7 Add: Net losses on the sale of commercial real estate loans (pre-tax) — 7,866 — Less: Gain on sale of premium finance division (pre-tax) — — (3,629)Non-interest income, as adjusted (non-GAAP)$58,305 $59,071 $57,793 Gross operating income, as adjusted (non-GAAP)$478,410 $482,048 $451,341 Efficiency ratio (non-GAAP) 55.87% 57.21% 59.10% As of March 31, December 31, September 30, June 30, March 31,($ in thousands, except for share data)2025 2024 2024 2024 2024Tangible book value per common share (non-GAAP): Common shares outstanding 560,028,101 558,786,093 509,252,936 509,205,014 508,893,059 Shareholders' equity (GAAP)$7,499,897 $7,435,127 $6,972,380 $6,737,737 $6,727,139 Less: Preferred stock 354,345 354,345 354,345 209,691 209,691 Less: Goodwill and other intangible assets 1,990,276 1,997,597 2,004,414 2,012,580 2,020,405 Tangible common shareholders' equity (non-GAAP)$5,155,276 $5,083,185 $4,613,621 $4,515,466 $4,497,043 Tangible book value per common share (non-GAAP)$9.21 $9.10 $9.06 $8.87 $8.84 Tangible common equity to tangible assets (non-GAAP): Tangible common shareholders' equity (non-GAAP)$5,155,276 $5,083,185 $4,613,621 $4,515,466 $4,497,043 Total assets (GAAP) 61,865,655 62,491,691 62,092,332 62,058,974 61,000,188 Less: Goodwill and other intangible assets 1,990,276 1,997,597 2,004,414 2,012,580 2,020,405 Tangible assets (non-GAAP)$59,875,379 $60,494,094 $60,087,918 $60,046,394 $58,979,783 Tangible common equity to tangible assets (non-GAAP) 8.61% 8.40% 7.68% 7.52% 7.62% VALLEY NATIONAL BANCORPCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(in thousands, except for share data) March 31, December 31, 2025 2024 (Unaudited) Assets Cash and due from banks$508,887 $411,412 Interest bearing deposits with banks 714,810 1,478,713 Investment securities: Equity securities 74,425 71,513 Available for sale debt securities 3,658,704 3,369,724 Held to maturity debt securities (net of allowance for credit losses of $633 at March 31, 2025 and $647 at December 31, 2024) 3,545,328 3,531,573 Total investment securities 7,278,457 6,972,810 Loans held for sale (includes fair value of $8,427 at March 31, 2025 and $16,931 at December 31, 2024 for loans originated for sale) 27,377 25,681 Loans 48,657,128 48,799,711 Less: Allowance for loan losses (578,200) (558,850)Net loans 48,078,928 48,240,861 Premises and equipment, net 344,123 350,796 Lease right of use assets 334,013 328,475 Bank owned life insurance 733,135 731,574 Accrued interest receivable 238,326 239,941 Goodwill 1,868,936 1,868,936 Other intangible assets, net 121,340 128,661 Other assets 1,617,323 1,713,831 Total Assets$61,865,655 $62,491,691 Liabilities Deposits: Non-interest bearing$11,628,578 $11,428,674 Interest bearing: Savings, NOW and money market 26,413,258 26,304,639 Time 11,924,008 12,342,544 Total deposits 49,965,844 50,075,857 Short-term borrowings 59,026 72,718 Long-term borrowings 2,904,567 3,174,155 Junior subordinated debentures issued to capital trusts 57,542 57,455 Lease liabilities 394,334 388,303 Accrued expenses and other liabilities 984,445 1,288,076 Total Liabilities 54,365,758 55,056,564 Shareholders’ Equity Preferred stock, no par value; 50,000,000 authorized shares: Series A (4,600,000 shares issued at March 31, 2025 and December 31, 2024) 111,590 111,590 Series B (4,000,000 shares issued at March 31, 2025 and December 31, 2024) 98,101 98,101 Series C (6,000,000 shares issued at March 31, 2025 and December 31, 2024) 144,654 144,654 Common stock (no par value, authorized 650,000,000 shares; issued 560,278,101 shares at March 31, 2025 and 558,786,093 shares at December 31, 2024) 196,520 195,998 Surplus 5,444,756 5,442,070 Retained earnings 1,634,690 1,598,048 Accumulated other comprehensive loss (128,252) (155,334)Treasury stock, at cost (250,000 common shares at March 31, 2025) (2,162) — Total Shareholders’ Equity 7,499,897 7,435,127 Total Liabilities and Shareholders’ Equity$61,865,655 $62,491,691 VALLEY NATIONAL BANCORPCONSOLIDATED STATEMENTS OF INCOME (Unaudited)(in thousands, except for share data) Three Months Ended March 31, December 31, March 31, 2025 2024 2024Interest Income Interest and fees on loans$703,609 $750,667 $771,553 Interest and dividends on investment securities: Taxable 63,898 55,983 35,797 Tax-exempt 4,702 4,803 4,796 Dividends 5,664 5,860 6,828 Interest on federal funds sold and other short-term investments 6,879 17,513 9,682 Total interest income 784,752 834,826 828,656 Interest Expense Interest on deposits: Savings, NOW and money market 200,221 214,489 232,506 Time 125,069 158,716 151,065 Interest on short-term borrowings 2,946 293 20,612 Interest on long-term borrowings and junior subordinated debentures 36,411 38,351 30,925 Total interest expense 364,647 411,849 435,108 Net Interest Income 420,105 422,977 393,548 (Credit) provision for credit losses for available for sale and held to maturity securities (14) (429) (74)Provision for credit losses for loans 62,675 106,965 45,274 Net Interest Income After Provision for Credit Losses 357,444 316,441 348,348 Non-Interest Income Wealth management and trust fees 15,031 16,425 17,930 Insurance commissions 3,402 3,705 2,251 Capital markets 6,940 7,425 5,670 Service charges on deposit accounts 12,726 12,989 11,249 Gains on securities transactions, net 46 1 49 Fees from loan servicing 3,215 3,071 3,188 Gains (losses) on sales of loans, net 2,197 (4,698) 1,618 Gains (losses) on sales of assets, net 43 (20) 3,694 Bank owned life insurance 4,777 3,775 3,235 Other 9,917 8,529 12,531 Total non-interest income 58,294 51,202 61,415 Non-Interest Expense Salary and employee benefits expense 142,618 137,117 141,831 Net occupancy expense 25,888 26,576 24,323 Technology, furniture and equipment expense 29,896 35,482 35,462 FDIC insurance assessment 12,867 14,002 18,236 Amortization of other intangible assets 8,019 8,373 9,412 Professional and legal fees 15,670 21,794 16,465 Amortization of tax credit investments 9,320 1,740 5,562 Other 32,340 33,498 29,019 Total non-interest expense 276,618 278,582 280,310 Income Before Income Taxes 139,120 89,061 129,453 Income tax expense (benefit) 33,062 (26,650) 33,173 Net Income 106,058 115,711 96,280 Dividends on preferred stock 6,955 7,025 4,119 Net Income Available to Common Shareholders$99,103 $108,686 $92,161 VALLEY NATIONAL BANCORPQuarterly Analysis of Average Assets, Liabilities and Shareholders' Equity andNet Interest Income on a Tax Equivalent Basis Three Months Ended March 31, 2025 December 31, 2024 March 31, 2024 Average Avg. Average Avg. Average Avg.($ in thousands)Balance Interest Rate Balance Interest Rate Balance Interest RateAssets Interest earning assets: Loans (1)(2)$48,654,921 $703,632 5.78% $49,730,130 $750,690 6.04% $50,246,591 $771,577 6.14%Taxable investments (3) 7,100,958 69,562 3.92 6,504,106 61,843 3.80 5,094,978 42,625 3.35 Tax-exempt investments (1)(3) 552,291 5,952 4.31 565,877 6,080 4.30 579,842 6,071 4.19 Interest bearing deposits with banks 583,521 6,879 4.72 1,414,670 17,513 4.95 697,386 9,682 5.55 Total interest earning assets 56,891,691 786,025 5.53 58,214,783 836,126 5.75 56,618,797 829,955 5.86 Other assets 4,611,077 4,650,555 4,638,071 Total assets$61,502,768 $62,865,338 $61,256,868 Liabilities and shareholders' equity Interest bearing liabilities: Savings, NOW and money market deposits$26,345,983 $200,221 3.04 $25,928,201 $214,489 3.31% $24,793,452 $232,506 3.75%Time deposits 11,570,758 125,069 4.32 13,530,980 158,716 4.69 12,599,395 151,065 4.80 Short-term borrowings 307,637 2,946 3.83 72,504 293 1.62 1,537,879 20,612 5.36 Long-term borrowings (4) 3,006,331 36,411 4.84 3,234,264 38,351 4.74 2,625,862 30,925 4.71 Total interest bearing liabilities 41,230,709 364,647 3.54 42,765,949 411,849 3.85 41,556,588 435,108 4.19 Non-interest bearing deposits 11,222,562 11,266,899 11,183,127 Other liabilities 1,591,320 1,577,331 1,791,458 Shareholders' equity 7,458,177 7,255,159 6,725,695 Total liabilities and shareholders' equity$61,502,768 $62,865,338 $61,256,868 Net interest income/interest rate spread (5) $421,378 1.99% $424,277 1.90% $394,847 1.67%Tax equivalent adjustment (1,273) (1,300) (1,299) Net interest income, as reported $420,105 $422,977 $393,548 Net interest margin (6) 2.95 2.91 2.78 Tax equivalent effect 0.01 0.01 0.01 Net interest margin on a fully tax equivalent basis (6) 2.96% 2.92% 2.79% _________ (1)Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.(2)Loans are stated net of unearned income and include non-accrual loans.(3)The yield for securities that are classified as available for sale is based on the average historical amortized cost.(4)Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition.(5)Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.(6)Net interest income as a percentage of total average interest earning assets. SHAREHOLDERS RELATIONSRequests for copies of reports and/or other inquiries should be directed to Tina Zarkadas, Assistant Vice President, Shareholder Relations Specialist, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960, by telephone at (973) 305-3380, by fax at (973) 305-1364 or by e-mail at tzarkadas@valley.com. Contact:Travis Lan Senior Executive Vice President and Chief Financial Officer 973-686-5007

Valley National Bancorp Announces First Quarter 2025 Results

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