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Valley National Bancorp Reports Fourth Quarter 2024 Results

1. Fourth quarter net income was $115.7 million, improving from Q3. 2. Total loans decreased by 4.50%, primarily in CRE categories. 3. Loan charge-offs rose significantly, totaling $98.3 million in Q4. 4. Non-interest income fell $9.5 million, impacted by CRE loan sales. 5. Capital ratios improved significantly following a stock issuance.

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Strong net income growth despite loan charge-offs can attract investor confidence.

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Significant financial developments and performance improvements directly inform VLY's market positioning.

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Sustained profitability improvement strategies will boost long-term shareholder value.

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NEW YORK, Jan. 23, 2025 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the fourth quarter 2024 of $115.7 million, or $0.20 per diluted common share, as compared to the third quarter 2024 net income of $97.9 million, or $0.18 per diluted common share, and net income of $71.6 million, or $0.13 per diluted common share, for the fourth quarter 2023. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $75.7 million, or $0.13 per diluted common share, for the fourth quarter 2024, $96.8 million, or $0.18 per diluted common share, for the third quarter 2024, and $116.3 million, or $0.22 per diluted common share, for the fourth quarter 2023. See further details below, including a reconciliation of our adjusted net income in the "Consolidated Financial Highlights" tables. Ira Robbins, CEO, commented, "I am pleased with the successful execution of our balance sheet initiatives during 2024. We have substantially strengthened our financial position with incremental capital, an improved funding base, higher loan reserve coverage, and enhanced loan diversity. We believe these efforts will provide momentum for profitability improvement in 2025.” Mr. Robbins continued, “The combination of lower-cost core deposit growth and yield curve dis-inversion should continue to support net interest margin expansion throughout 2025. Ongoing focus on expense management will help to ensure that anticipated revenue gains are additive to earnings. We remain focused on driving longer-term shareholder value through improved profitability and growth in our core commercial banking relationships.” Key financial highlights for the fourth quarter 2024: Net Interest Income and Margin: Net interest income on a tax equivalent basis of $424.3 million for the fourth quarter 2024 increased $12.5 million and $25.7 million as compared to the third quarter 2024 and fourth quarter 2023, respectively. Our net interest margin on a tax equivalent basis increased by 6 basis points to 2.92 percent in the fourth quarter 2024 as compared to 2.86 percent for the third quarter 2024. The increases from the third quarter 2024 were mostly due to a 31 basis point decline in our cost of total average deposits and additional interest income and higher yields from growth in our available for sale securities portfolio. This was partially offset by downward repricing on adjustable rate loans and lost interest income and loan yield related to loan sales in the fourth quarter 2024, primarily consisting of commercial real estate (CRE) loans that were previously held for sale.Loan Portfolio: Total loans decreased $555.6 million, or 4.50 percent on an annualized basis, to $48.8 billion at December 31, 2024 from September 30, 2024 mostly due to normal repayment activity mainly within the CRE non-owner occupied and multifamily loan categories during the fourth quarter 2024. We also sold approximately $151 million and $76 million of CRE loans and residential mortgage loans (which the majority were sold at or above par value), respectively, that were not previously identified as loans held for sale at September 30, 2024. Our commercial and industrial (C&I) and total consumer loans grew by $132.1 million and $121.1 million, respectively, at December 31, 2024 from September 30, 2024. See the "Loans" section below for more details.Loans Held for Sale: Loans held for sale decreased $817.5 million to $25.7 million at December 31, 2024 from September 30, 2024 mainly due to the fourth quarter sale of performing CRE loans that were previously transferred to loans held for sale at September 30, 2024.CRE Loan Concentration: As a result of the CRE loan sales and repayment activity combined with our common stock issuance during the fourth quarter 2024, 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 362 percent at December 31, 2024 from 421 percent at September 30, 2024.Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $573.3 million and $564.7 million at December 31, 2024 and September 30, 2024, respectively, representing 1.17 percent and 1.14 percent of total loans at each respective date. During the fourth quarter 2024, the provision for credit losses for loans was $107.0 million as compared to $75.0 million and $20.7 million for the third quarter 2024 and fourth quarter 2023, respectively. The fourth quarter 2024 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves allocated to CRE loans, higher specific reserves associated with collateral dependent loans, and continued growth in the C&I loan category. 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 $75.5 million to $99.2 million, or 0.20 percent of total loans, at December 31, 2024 as compared to $174.7 million, or 0.35 percent of total loans, at September 30, 2024 largely due to two well-secured CRE loans totaling $40.9 million and $43.9 million which were previously reported within the early stage delinquency categories and subsequently repaid and current to modified terms, respectively, at December 31, 2024. Non-accrual loans totaled $359.5 million, or 0.74 percent of total loans, at December 31, 2024 as compared to $296.3 million, or 0.60 percent of total loans, at September 30, 2024. Net loan charge-offs totaled $98.3 million for the fourth quarter 2024 as compared to $42.9 million and $17.5 million for the third quarter 2024 and fourth quarter 2023, respectively. The loan charge-offs in the fourth quarter 2024 included full and partial charge-offs totaling $83.2 million related to four non-performing commercial loan relationships. See the "Credit Quality" section below for more details.Deposits: Non-interest bearing deposits increased $274.9 million to $11.4 billion at December 31, 2024 from September 30, 2024 due to higher inflows of both consumer and commercial customer deposits during the fourth quarter 2024. Actual ending balances for deposits decreased $320.1 million to $50.1 billion at December 31, 2024 from September 30, 2024 as a $1.7 billion increase in direct customer deposits was offset by a $2.0 billion reduction in indirect customer deposits (consisting largely of brokered CDs) during the fourth quarter 2024. See the "Deposits" section below for more details.Non-Interest Income: Non-interest income decreased $9.5 million to $51.2 million for the fourth quarter 2024 as compared to the third quarter 2024 mainly due to income from litigation settlements totaling $7.3 million reported in other income during the third quarter 2024. Net losses on sales of loans totaled $4.7 million for the fourth quarter 2024 as compared to $3.6 million for the third quarter 2024. The fourth quarter net losses included $7.9 million of losses largely resulting from transaction costs related to the sale of performing CRE loans, and the third quarter net losses included a $5.8 million mark to market loss associated with the CRE loans transferred to loans held for sale at September 30, 2024. The negative impact of aforementioned items to total non-interest income was partially offset by increases in capital market fees and trust and investment services fees during the fourth quarter 2024.Non-Interest Expense: Non-interest expense increased $9.1 million to $278.6 million for the fourth quarter 2024 as compared to the third quarter 2024 largely due to increases of $7.7 million, $6.5 million, and $2.4 million in professional and legal fees; technology, furniture and equipment expense; and advertising (reported within other) expense, respectively, partially offset by declines in amortization of tax credit investments and salary and employee benefits expense during the fourth quarter 2024. The increases in professional and technology related expenses were mostly due to transformation and enhancement efforts in our bank operations.Income Tax Expense: We recognized an income tax benefit of $26.7 million for the fourth quarter 2024 as compared to income tax expense of $28.8 million for third quarter 2024. The fourth quarter tax benefit resulted mostly from a $46.4 million total reduction in uncertain tax liability positions and related accrued interest and penalties due to statute of limitation expirations. As a result, our effective tax rate was a negative 29.9 percent for the fourth quarter 2024 as compared to 22.7 percent for the third quarter 2024.Efficiency Ratio: Our efficiency ratio was 57.21 percent for the fourth quarter 2024 as compared to 56.13 percent and 60.70 percent for the third quarter 2024 and fourth quarter 2023, 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 0.74 percent, 6.38 percent, and 8.81 percent for the fourth quarter 2024, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core items, were 0.48 percent, 4.17 percent, and 5.76 percent for the fourth quarter 2024, 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 $424.3 million for the fourth quarter 2024 increased $12.5 million and $25.7 million as compared to the third quarter 2024 and fourth quarter 2023, respectively. Interest income on a tax equivalent basis decreased $25.7 million to $836.1 million for the fourth quarter 2024 as compared to the third quarter 2024. The decrease was mostly driven by lost interest income related to the CRE loan sales during the fourth quarter 2024, partially offset by higher interest income from targeted purchases of taxable investments within the available for sale securities portfolio and higher yields on new and renewed loan originations. Total interest expense decreased $38.2 million to $411.8 million for the fourth quarter 2024 as compared to the third quarter 2024 mainly due to lower costs on most interest bearing deposit products and a $702.2 million decrease in average time deposit balances primarily related to the repayment of indirect customer CDs throughout the fourth quarter. See the "Deposits" and "Other Borrowings" sections below for more details. Net interest margin on a tax equivalent basis of 2.92 percent for the fourth quarter 2024 increased 6 basis points and 10 basis points from 2.86 percent and 2.82 percent, respectively, for the third quarter 2024 and fourth quarter 2023. The increase as compared to the third quarter 2024 was mostly due to the 31 basis point decline in our cost of total average deposit, partially offset by the lower yield on average interest earning assets. The yield on average interest earning assets decreased by 23 basis points to 5.75 on a linked quarter basis largely due to downward repricing of our adjustable rate loans and a higher amount of our average earning assets held in relatively lower-yielding cash and investment securities, partially offset by higher yielding investment purchases. The overall cost of average interest bearing liabilities decreased by 37 basis points to 3.85 percent for the fourth quarter 2024 as compared to the linked third quarter 2024 largely due to lower interest rates on deposits. Our cost of total average deposits was 2.94 percent for the fourth quarter 2024 as compared to 3.25 percent and 3.13 percent for the third quarter 2024 and fourth quarter 2023, respectively. Loans, Deposits and Other Borrowings Loans. Total loans decreased $555.6 million, or 4.5 percent on an annualized basis, to $48.8 billion at December 31, 2024 from September 30, 2024. C&I loans grew by $132.1 million, or 5.4 percent on an annualized basis, to $9.9 billion at December 31, 2024 from September 30, 2024 largely due to our continued strategic focus on the expansion of new loan production within this category. Total CRE (including construction) loans decreased $757.2 million to $29.6 billion at December 31, 2024 from September 30, 2024 primarily due to repayments of non-owner occupied and multifamily loans and the sale of $151 million of loans from these categories not previously identified as loans held for sale. Construction loans decreased $372.7 million from September 30, 2024 largely due to the completion of existing projects that moved to permanent financing or repaid. These decreases were partially offset by $232.5 million increase in owner occupied loans, some of which represents the permanent financing of the completed construction projects. We continue to be highly selective on new CRE loan originations in an effort to reduce loan concentrations within the non-owner occupied and multifamily loan categories. At December 31, 2024, the residential mortgage loan portfolio decreased $51.6 million to $5.6 billion from September 30, 2024 mainly due to the sale of approximately $76 million of loans from portfolio during the fourth quarter 2024 and the continued negative impact of the high mortgage interest rates on the volume of loan originations. Automobile loan balances increased by $77.3 million, or 17.0 percent on an annualized basis, to $1.9 billion at December 31, 2024 from September 30, 2024 mainly due to continued consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Other consumer loans increased $20.5 million, or 7.7 percent on an annualized basis, to $1.1 billion at December 31, 2024 from September 30, 2024 primarily due to slightly higher usage of collateralized personal lines of credit. Deposits. Actual ending balances for deposits decreased $320.1 million to $50.1 billion at December 31, 2024 from September 30, 2024 mainly due to a decrease of $1.8 billion in time deposits, partially offset by an increase of $1.2 billion in savings, NOW and money market deposits and an increase of $274.9 million in non-interest bearing deposits. Savings, NOW and money market deposit balances increased at December 31, 2024 from September 30, 2024 partially due to normal seasonal increases in governmental deposits account balances and other growth within our branch network, while we experienced mostly broad-based increases in both consumer and commercial non-interest bearing deposit balances at December 31, 2024. The decrease in time deposit balances was mainly driven by decline in indirect customer CDs, partially offset by higher direct retail customer CDs. Total indirect customer deposits (including both brokered money market and time deposits) totaled $7.1 billion and $9.1 billion in December 31, 2024 and September 30, 2024, respectively. Non-interest bearing deposits; savings, NOW, and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 25 percent of total deposits as of December 31, 2024, respectively, as compared to 22 percent, 50 percent and 28 percent of total deposits as of September 30, 2024, respectively. Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, increased $14.5 million to $72.7 million at December 31, 2024 from September 30, 2024. Long-term borrowings totaled $3.2 billion at December 31, 2024 and decreased $100.2 million as compared to September 30, 2024 mainly due to maturity and repayment of FHLB advances. Credit Quality Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets increased $68.2 million to $373.3 million at December 31, 2024 compared to $305.1 million at September 30, 2024. Non-accrual loans increased $63.2 million to $359.5 million at December 31, 2024 as compared to September 30, 2024 largely driven by higher non-accrual commercial loan balances and, to a lesser extent, increased residential loan balances. Non-accrual CRE and C&I loans increased $43.5 million and $16.1 million, respectively, as compared to September 30, 2024. These increases were mainly driven by a few large loan relationships, partially offset by a $16.2 million partial charge-off related to a non-accrual C&I loan totaling $20.5 million at September 30, 2024. Non-accrual loans represented 0.74 percent of total loans at December 31, 2024 as compared to 0.60 percent of total loans at September 30, 2024. OREO increased $5.0 million at December 31, 2024 from September 30, 2024 mostly due to one CRE property transferred during the fourth quarter 2024. Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $75.5 million to $99.2 million, or 0.20 percent of total loans, at December 31, 2024 as compared to $174.7 million, or 0.35 percent of total loans, at September 30, 2024. Loans 30 to 59 days past due decreased $58.0 million to $57.1 million at December 31, 2024 as compared to September 30, 2024 mainly due to a $55.5 million decrease in CRE loans and moderate declines in both C&I and consumer loan delinquencies, partially offset by higher residential mortgage loans delinquencies. The decrease in CRE loans 30 to 59 days past due was largely due to one previously reported delinquent loan totaling $40.9 million, which was fully repaid during the fourth quarter 2024, as well as other CRE loan delinquencies that migrated to non-accrual category at December 31, 2024. Loans 60 to 89 days past due decreased $18.6 million to $36.2 million at December 31, 2024 as compared to September 30, 2024 largely due to a modified and current $43.9 million well-secured CRE loan which was included in this delinquency category at September 30, 2024, partially offset by a few new CRE delinquencies within this category at December 31, 2024. Loans 90 days or more past due increased $1.1 million to $5.9 million at December 31, 2024 as compared to $4.8 million at September 30, 2024 mainly due to higher residential mortgage loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection. Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at December 31, 2024, September 30, 2024, and December 31, 2023:   December 31, 2024 September 30, 2024 December 31, 2023    Allocation   Allocation   Allocation    as a % of   as a % of   as a % of  Allowance Loan Allowance Loan Allowance Loan  Allocation Category Allocation Category Allocation Category  ($ in thousands)Loan Category:           Commercial and industrial loans$173,002 1.74% $166,365 1.70% $133,359 1.44%Commercial real estate loans:            Commercial real estate 251,351 0.95   249,608 0.93   194,820 0.69  Construction 52,797 1.70   59,420 1.70   54,778 1.47 Total commercial real estate loans 304,148 1.03   309,028 1.02   249,598 0.78 Residential mortgage loans 58,895 1.05   51,545 0.91   42,957 0.77 Consumer loans:            Home equity 3,379 0.56   3,303 0.57   3,429 0.61  Auto and other consumer 19,426 0.65   18,086 0.63   16,737 0.58 Total consumer loans 22,805 0.64   21,389 0.62   20,166 0.59 Allowance for loan losses 558,850 1.15   548,327 1.11   446,080 0.89 Allowance for unfunded credit commitments 14,478    16,344    19,470  Total allowance for credit losses for loans$573,328   $564,671   $465,550  Allowance for credit losses for           loans as a % of loans  1.17%   1.14%   0.93%                Our loan portfolio, totaling $48.8 billion at December 31, 2024, had net loan charge-offs totaling $98.3 million for the fourth quarter 2024 as compared to $42.9 million and $17.5 million for the third quarter 2024 and the fourth quarter 2023, respectively. Total gross loan charge-offs were $103.7 million for the fourth quarter 2024 and included full and partial charge-offs totaling $54.1 million and $29.1 million related to two non-performing CRE loan relationships and two C&I loan relationships, respectively. 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 1.17 percent at December 31, 2024, 1.14 percent at September 30, 2024 and 0.93 percent at December 31, 2023. During the fourth quarter 2024, the provision for credit losses for loans totaled $107.0 million as compared to $75.0 million for the third quarter 2024 and $20.7 million for the fourth quarter 2023. The increase in the provision for credit losses was mainly driven by the impact of loan charge-offs, increased quantitative reserves allocated to CRE loans, higher specific reserves associated with collateral dependent loans, and continued growth in the C&I loan category, partially offset by a decline in qualitative and economic forecast reserves at December 31, 2024. Capital Adequacy Valley's total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital ratios were 13.87 percent, 11.55 percent, 10.82 percent, and 9.16 percent, respectively, at December 31, 2024 as compared to 12.56 percent, 10.29 percent, 9.57 percent and 8.40 percent, respectively, at September 30, 2024. The increases in the capital ratios as compared to September 30, 2024 were largely due to Valley's issuance of approximately 49.2 million shares of its common stock in a registered public offering during November 2024. The net proceeds of the offering, after deducting underwriting discounts and commissions and offering expenses payable by Valley, were $448.9 million.    Investor Conference Call Valley will host a conference call with investors and the financial community at 11:00 A.M. Eastern Standard Time, today to discuss the fourth quarter 2024 earnings and related matters. Interested parties should pre-register 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 February 24, 2025. Investor presentation materials will be made available prior to the conference call at www.valley.com.  About Valley As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with over $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 www.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 an actual or threatened U.S. government shutdown, debt default or rating downgrade, instability or volatility in financial markets, 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 future 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 potential instability within the U.S. financial sector in the aftermath of the banking failures in 2023 and continued volatility thereafter, 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, policy, 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 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 the “Risk Factors” section of our Annual Report on Form 10-K for the year ended December 31, 2023. The financial results and disclosures reported in this release are preliminary. Final 2024 financial results and other disclosures will be reported in our Annual Report on Form 10-K for the year ended December 31, 2024, and may differ materially from the results and disclosures in this document due to, among other things, the completion of final review procedures, the occurrence of subsequent events, or the discovery of additional information. 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. Contact: Travis Lan  Executive Vice President and  Interim Chief Financial Officer  973-686-5007 -Tables to Follow- VALLEY NATIONAL BANCORPCONSOLIDATED FINANCIAL HIGHLIGHTS SELECTED FINANCIAL DATA            Three Months Ended Years Ended December 31, September 30, December 31, December 31,($ in thousands, except for share data) 2024   2024   2023   2024   2023 FINANCIAL DATA:         Net interest income - FTE(1)$424,277  $411,812  $398,581  $1,633,920  $1,670,972 Net interest income 422,977   410,498   397,275   1,628,708   1,665,478 Non-interest income 51,202   60,671   52,691   224,501   225,729 Total revenue 474,179   471,169   449,966   1,853,209   1,891,207 Non-interest expense 278,582   269,471   340,421   1,105,860   1,162,691 Pre-provision net revenue 195,597   201,698   109,545   747,349   728,516 Provision for credit losses 106,536   75,024   20,580   308,830   50,184 Income tax (benefit) expense (26,650)  28,818   17,411   58,248   179,821 Net income 115,711   97,856   71,554   380,271   498,511 Dividends on preferred stock 7,025   6,117   4,104   21,369   16,135 Net income available to common stockholders$108,686  $91,739  $67,450  $358,902  $482,376 Weighted average number of common shares outstanding:Basic 536,159,463   509,227,538   507,683,229   515,755,365   507,532,365 Diluted 540,087,600   511,342,932   509,714,526   517,991,801   509,245,768 Per common share data:         Basic earnings$0.20  $0.18  $0.13  $0.70  $0.95 Diluted earnings 0.20   0.18   0.13   0.69   0.95 Cash dividends declared 0.11   0.11   0.11   0.44   0.44 Closing stock price - high 10.78   9.34   11.10   10.80   12.59 Closing stock price - low 8.70   6.58   7.71   6.52   6.59 FINANCIAL RATIOS:         Net interest margin 2.91%  2.85%  2.81%  2.84%  2.95%Net interest margin - FTE(1) 2.92   2.86   2.82   2.85   2.96 Annualized return on average assets 0.74   0.63   0.47   0.61   0.82 Annualized return on avg. shareholders' equity 6.38   5.70   4.31   5.51   7.60 NON-GAAP FINANCIAL DATA AND RATIOS:(2)Basic earnings per share, as adjusted$0.13  $0.18  $0.22  $0.62  $1.06 Diluted earnings per share, as adjusted 0.13   0.18   0.22   0.62   1.06 Annualized return on average assets, as adjusted 0.48%  0.62%  0.76%  0.55%  0.91%Annualized return on average shareholders' equity, as adjusted 4.17   5.64   7.01   4.98   8.45 Annualized return on avg. tangible shareholders' equity 8.81%  8.06%  6.21%  7.78%  11.05%Annualized return on average tangible shareholders' equity, as adjusted 5.76   7.97   10.10   7.03   12.29 Efficiency ratio 57.21   56.13   60.70   57.98   56.62           AVERAGE BALANCE SHEET ITEMS:         Assets$62,865,338  $62,242,022  $61,113,553  $61,973,902  $61,065,897 Interest earning assets 58,214,783   57,651,650   56,469,468   57,317,926   56,500,528 Loans 49,730,130   50,126,963   50,039,429   50,030,586   49,351,861 Interest bearing liabilities 42,765,949   42,656,956   40,753,313   42,142,087   40,042,506 Deposits 50,726,080   50,409,234   49,460,571   49,777,963   48,491,669 Shareholders' equity 7,255,159   6,862,555   6,639,906   6,900,204   6,558,768                                 As ofBALANCE SHEET ITEMS:December 31, September 30, June 30, March 31, December 31,(In thousands) 2024   2024   2024   2024   2023 Assets$62,491,691  $62,092,332  $62,058,974  $61,000,188  $60,934,974 Total loans 48,799,711   49,355,319   50,311,702   49,922,042   50,210,295 Deposits 50,075,857   50,395,966   50,112,177   49,077,946   49,242,829 Shareholders' equity 7,435,127   6,972,380   6,737,737   6,727,139   6,701,391           LOANS:         (In thousands)         Commercial and industrial$9,931,400  $9,799,287  $9,479,147  $9,104,193  $9,230,543 Commercial real estate:         Non-owner occupied 12,344,355   12,647,649   13,710,015   14,962,851   15,078,464 Multifamily 8,299,250   8,612,936   8,976,264   8,818,263   8,860,219 Owner occupied 5,886,620   5,654,147   5,536,844   4,367,839   4,304,556 Construction 3,114,733   3,487,464   3,545,723   3,556,511   3,726,808 Total commercial real estate 29,644,958   30,402,196   31,768,846   31,705,464   31,970,047 Residential mortgage 5,632,516   5,684,079   5,627,113   5,618,355   5,569,010 Consumer:         Home equity 604,433   581,181   566,467   564,083   559,152 Automobile 1,901,065   1,823,738   1,762,852   1,700,508   1,620,389 Other consumer 1,085,339   1,064,838   1,107,277   1,229,439   1,261,154 Total consumer loans 3,590,837   3,469,757   3,436,596   3,494,030   3,440,695 Total loans$48,799,711  $49,355,319  $50,311,702  $49,922,042  $50,210,295           CAPITAL RATIOS:         Book value per common share$12.67  $13.00  $12.82  $12.81  $12.79 Tangible book value per common share(2) 9.10   9.06   8.87   8.84   8.79 Tangible common equity to tangible assets(2) 8.40%  7.68%  7.52%  7.62%  7.58%Tier 1 leverage capital 9.16   8.40   8.19   8.20   8.16 Common equity tier 1 capital 10.82   9.57   9.55   9.34   9.29 Tier 1 risk-based capital 11.55   10.29   9.98   9.78   9.72 Total risk-based capital 13.87   12.56   12.17   11.88   11.76                                 Three Months Ended Years EndedALLOWANCE FOR CREDIT LOSSES:December 31, September 30, December 31, December 31,($ in thousands) 2024   2024   2023   2024   2023 Allowance for credit losses for loans         Beginning balance$564,671  $532,541  $462,345  $465,550  $483,255 Impact of the adoption of ASU No. 2022-02 —   —   —   —   (1,368)Beginning balance, adjusted 564,671   532,541   462,345   465,550   481,887 Loans charged-off:         Commercial and industrial (31,784)  (7,501)  (10,616)  (68,299)  (48,015)Commercial real estate (69,218)  (33,292)  (8,814)  (125,858)  (11,134)Construction —   (4,831)  (1,906)  (12,637)  (11,812)Residential mortgage (29)  —   (25)  (29)  (194)Total consumer (2,621)  (2,597)  (1,274)  (8,289)  (4,298)Total loans charged-off (103,652)  (48,221)  (22,635)  (215,112)  (75,453)Charged-off loans recovered:         Commercial and industrial 1,452   3,162   4,655   6,038   11,270 Commercial real estate 3,138   66   1   3,595   34 Construction —   1,535   —   1,535   — Residential mortgage 81   29   15   140   201 Total consumer 673   521   473   2,194   1,986 Total loans recovered 5,344   5,313   5,144   13,502   13,491 Total net charge-offs (98,308)  (42,908)  (17,491)  (201,610)  (61,962)Provision for credit losses for loans 106,965   75,038   20,696   309,388   45,625 Ending balance$573,328  $564,671  $465,550  $573,328  $465,550 Components of allowance for credit losses for loans:         Allowance for loan losses$558,850  $548,327  $446,080  $558,850  $446,080 Allowance for unfunded credit commitments 14,478   16,344   19,470   14,478   19,470 Allowance for credit losses for loans$573,328  $564,671  $465,550  $573,328  $465,550 Components of provision for credit losses for loans:         Provision for credit losses for loans$108,831  $71,925  $21,396  $314,380  $50,755 (Credit) provision for unfunded credit commitments (1,866)  3,113   (700)  (4,992)  (5,130)Total provision for credit losses for loans$106,965  $75,038  $20,696  $309,388  $45,625           Annualized ratio of total net charge-offs to average loans 0.79%  0.34%  0.14%  0.40%  0.13%Allowance for credit losses as a % of total loans 1.17%  1.14%  0.93%  1.17%  0.93%                      As ofASSET QUALITY:December 31, September 30, June 30, March 31, December 31,($ in thousands) 2024   2024   2024   2024   2023 Accruing past due loans:         30 to 59 days past due:         Commercial and industrial$2,389  $4,537  $5,086  $6,202  $9,307 Commercial real estate 20,902   76,370   1,879   5,791   3,008 Residential mortgage 21,295   19,549   17,389   20,819   26,345 Total consumer 12,552   14,672   21,639   14,032   20,554 Total 30 to 59 days past due 57,138   115,128   45,993   46,844   59,214 60 to 89 days past due:         Commercial and industrial 1,007   1,238   1,621   2,665   5,095 Commercial real estate 24,903   43,926   —   3,720   1,257 Residential mortgage 5,773   6,892   6,632   5,970   8,200 Total consumer 4,484   2,732   3,671   1,834   4,715 Total 60 to 89 days past due 36,167   54,788   11,924   14,189   19,267 90 or more days past due:         Commercial and industrial 1,307   1,786   2,739   5,750   5,579 Commercial real estate —   —   4,242   —   — Construction —   —   3,990   3,990   3,990 Residential mortgage 3,533   1,931   2,609   2,884   2,488 Total consumer 1,049   1,063   898   731   1,088 Total 90 or more days past due 5,889   4,780   14,478   13,355   13,145 Total accruing past due loans$99,194  $174,696  $72,395  $74,388  $91,626 Non-accrual loans:         Commercial and industrial$136,675  $120,575  $102,942  $102,399  $99,912 Commercial real estate 157,231   113,752   123,011   100,052   99,740 Construction 24,591   24,657   45,380   51,842   60,850 Residential mortgage 36,786   33,075   28,322   28,561   26,986 Total consumer 4,215   4,260   3,624   4,438   4,383 Total non-accrual loans 359,498   296,319   303,279   287,292   291,871 Other real estate owned (OREO) 12,150   7,172   8,059   88   71 Other repossessed assets 1,681   1,611   1,607   1,393   1,444 Total non-performing assets$373,329  $305,102  $312,945  $288,773  $293,386 Total non-accrual loans as a % of loans 0.74%  0.60%  0.60%  0.58%  0.58%Total accruing past due and non-accrual loans as a % of loans 0.94%  0.95%  0.75%  0.72%  0.76%Allowance for losses on loans as a % of non-accrual loans 155.45%  185.05%  171.23%  163.33%  152.83%                     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 Years Ended December 31, September 30, December 31, December 31,($ in thousands, except for share data) 2024   2024   2023   2024   2023 Adjusted net income available to common shareholders (non-GAAP):         Net income, as reported (GAAP)$115,711  $97,856  $71,554  $380,271  $498,511 Add: FDIC Special assessment (a) —   —   50,297   8,757   50,297 Add: Losses (gains) on available for sale and held to maturity debt securities, net (b) 3   1   (877)  15   (401)Add: Restructuring charge (c)  1,085   —   (538)  2,039   9,969 Add: Net losses on the sale of commercial real estate loans (d) 7,866   5,794   —   13,660   — Add: Provision for credit losses for available for sale securities (e)  —   —   —   —   5,000 Add: Merger related expenses (f)  —   —   10,000   —   14,133 Add: Litigation reserve (g) —   —   3,540   —   3,540 Less: Litigation settlements (h) —   (7,334)  —   (7,334)  — Less: Net gains on sales of office buildings (i) —   —   —   —   (6,721)Less: Gain on sale of commercial premium finance lending division (i) —   —   —   (3,629)  — Less: Income tax benefit (j) (46,431)  —   —   (46,431)  — Total non-GAAP adjustments to net income$(37,477) $(1,539) $62,422  $(32,923) $75,817 Income tax adjustments related to non-GAAP adjustments (k) (2,520)  437   (17,679)  (3,789)  (20,057)Net income, as adjusted (non-GAAP) 75,714   96,754   116,297   343,559   554,271 Dividends on preferred stock 7,025   6,117   4,104   21,369   16,135 Net income available to common shareholders, as adjusted (non-GAAP)$68,689  $90,637  $112,193  $322,190  $538,136 _____________         (a) Included in FDIC insurance assessment.(b) Included in gains on securities transactions, net.(c) Represents severance (credit adjustments) expense related to workforce reductions within salary and employee benefits expense.(d) Represents actual and mark to market losses on commercial real estate loan sales included in (losses) gains on sales of loans, net.(e) Included in (credit) provision for credit losses for available for sale and held to maturity securities (tax disallowed).(f) Represents data processing termination costs within technology, furniture and equipment expense and severance within salary and employee benefits expense for the 2023 periods.(g) Represents legal reserves and settlement charges included in professional and legal fees.(h) Represents recoveries from legal settlements included in other income.(i) Included in (losses) gains on sales of assets, net within non-interest income.(j) Represents the income tax benefit from the reduction in uncertain tax liability positions and accrued interest and penalties due to statute of limitation expirations included in income tax (benefit) expense.(k) Calculated using the appropriate blended statutory tax rate for the applicable period.           Non-GAAP Reconciliations to GAAP Financial Measures (Continued)  Three Months Ended Years Ended December 31, September 30, December 31, December 31,($ in thousands) 2024   2024   2023   2024   2023 Adjusted per common share data (non-GAAP):         Net income available to common shareholders, as adjusted (non-GAAP)$68,689  $90,637  $112,193  $322,190  $538,136 Average number of shares outstanding 536,159,463   509,227,538   507,683,229   515,755,365   507,532,365 Basic earnings, as adjusted (non-GAAP)$0.13  $0.18  $0.22  $0.62  $1.06 Average number of diluted shares outstanding 540,087,600   511,342,932   509,714,526   517,991,801   509,245,768 Diluted earnings, as adjusted (non-GAAP)$0.13  $0.18  $0.22  $0.62  $1.06 Adjusted annualized return on average tangible shareholders' equity (non-GAAP):         Net income, as adjusted (non-GAAP)$75,714  $96,754  $116,297  $343,559  $554,271 Average shareholders' equity 7,255,159   6,862,555   6,639,906   6,900,204   6,558,768 Less: Average goodwill and other intangible assets 2,000,574   2,008,692   2,033,656   2,012,713   2,047,172 Average tangible shareholders' equity$5,254,585  $4,853,863  $4,606,250  $4,887,491  $4,511,596 Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP) 5.76%  7.97%  10.10%  7.03%  12.29%Adjusted annualized return on average assets (non-GAAP):         Net income, as adjusted (non-GAAP)$75,714  $96,754  $116,297  $343,559  $554,271 Average assets 62,865,338   62,242,022   61,113,553   61,973,902   61,065,897 Annualized return on average assets, as adjusted (non-GAAP) 0.48%  0.62%  0.76%  0.55%  0.91%Adjusted annualized return on average shareholders' equity (non-GAAP):         Net income, as adjusted (non-GAAP)$75,714  $96,754  $116,297  $343,559  $554,271 Average shareholders' equity 7,255,159   6,862,555   6,639,906   6,900,204   6,558,768 Annualized return on average shareholders' equity, as adjusted (non-GAAP) 4.17%  5.64%  7.01%  4.98%  8.45%Annualized return on average tangible shareholders' equity (non-GAAP):         Net income, as reported (GAAP)$115,711  $97,856  $71,554  $380,271  $498,511 Average shareholders' equity 7,255,159   6,862,555   6,639,906   6,900,204   6,558,768 Less: Average goodwill and other intangible assets 2,000,574   2,008,692   2,033,656   2,012,713   2,047,172 Average tangible shareholders' equity$5,254,585  $4,853,863  $4,606,250  $4,887,491  $4,511,596 Annualized return on average tangible shareholders' equity (non-GAAP) 8.81%  8.06%  6.21%  7.78%  11.05%Efficiency ratio (non-GAAP):         Non-interest expense, as reported (GAAP)$278,582  $269,471  $340,421  $1,105,860  $1,162,691 Less: FDIC Special assessment (pre-tax) —   —   50,297   8,757   50,297 Less: Restructuring charge (pre-tax) 1,085   —   (538)  2,039   9,969 Less: Merger-related expenses (pre-tax) —   —   10,000   —   14,133 Less: Amortization of tax credit investments (pre-tax) 1,740   5,853   4,547   18,946   18,009 Less: Litigation reserve (pre-tax) —   —   3,540   —   3,540 Non-interest expense, as adjusted (non-GAAP) 275,757   263,618   272,575   1,076,118   1,066,743 Net interest income, as reported (GAAP)$422,977  $410,498  $397,275  $1,628,708  $1,665,478 Non-interest income, as reported (GAAP) 51,202   60,671   52,691   224,501   225,729 Add: Losses (gains) on available for sale and held to maturity securities transactions, net (pre-tax) 3   1   (877)  15   (401)Add: Net losses on the sale of commercial real estate loans (pre-tax) 7,866   5,794   —   13,660   — Less: Litigation settlements (pre-tax) —   (7,334)  —   (7,334)  — Less: Net gains on sales of office buildings (pre-tax) —   —   —   —   (6,721)Less: Gain on sale of premium finance division (pre-tax) —   —   —   (3,629)  — Non-interest income, as adjusted (non-GAAP)$59,071  $59,132  $51,814  $227,213  $218,607 Gross operating income, as adjusted (non-GAAP)$482,048  $469,630  $449,089  $1,855,921  $1,884,085 Efficiency ratio (non-GAAP) 57.21%  56.13%  60.70%  57.98%  56.62%                     Non-GAAP Reconciliations to GAAP Financial Measures (Continued)  As of December 31, September 30, June 30, March 31, December 31,($ in thousands, except for share data) 2024   2024   2024   2024   2023 Tangible book value per common share (non-GAAP):         Common shares outstanding 558,786,093   509,252,936   509,205,014   508,893,059   507,709,927 Shareholders' equity (GAAP)$7,435,127  $6,972,380  $6,737,737  $6,727,139  $6,701,391 Less: Preferred stock 354,345   354,345   209,691   209,691   209,691 Less: Goodwill and other intangible assets 1,997,597   2,004,414   2,012,580   2,020,405   2,029,267 Tangible common shareholders' equity (non-GAAP)$5,083,185  $4,613,621  $4,515,466  $4,497,043  $4,462,433 Tangible book value per common share (non-GAAP)$9.10  $9.06  $8.87  $8.84  $8.79 Tangible common equity to tangible assets (non-GAAP):         Tangible common shareholders' equity (non-GAAP)$5,083,185  $4,613,621  $4,515,466  $4,497,043  $4,462,433 Total assets (GAAP)$62,491,691  $62,092,332  $62,058,974  $61,000,188  $60,934,974 Less: Goodwill and other intangible assets 1,997,597   2,004,414   2,012,580   2,020,405   2,029,267 Tangible assets (non-GAAP)$60,494,094  $60,087,918  $60,046,394  $58,979,783  $58,905,707 Tangible common equity to tangible assets (non-GAAP) 8.40%  7.68%  7.52%  7.62%  7.58%                     VALLEY NATIONAL BANCORPCONSOLIDATED STATEMENTS OF FINANCIAL CONDITION(in thousands, except for share data)  December 31,  2024   2023  (Unaudited)  Assets   Cash and due from banks$411,412  $284,090 Interest bearing deposits with banks 1,478,713   607,135 Investment securities:   Equity securities 71,513   64,464 Trading debt securities —   3,973 Available for sale debt securities 3,369,724   1,296,576 Held to maturity debt securities (net of allowance for credit losses of $647 at December 31, 2024 and $1,205 at December 31, 2023) 3,531,573   3,739,208 Total investment securities 6,972,810   5,104,221 Loans held for sale (includes fair value of $16,931 at December 31, 2024 and $20,640 at December 31, 2023 for loans originated for sale) 25,681   30,640 Loans 48,799,711   50,210,295 Less: Allowance for loan losses (558,850)  (446,080)Net loans 48,240,861   49,764,215 Premises and equipment, net 350,796   381,081 Lease right of use assets 328,475   343,461 Bank owned life insurance 731,574   723,799 Accrued interest receivable 239,941   245,498 Goodwill 1,868,936   1,868,936 Other intangible assets, net 128,661   160,331 Other assets 1,713,831   1,421,567 Total Assets$62,491,691  $60,934,974 Liabilities   Deposits:   Non-interest bearing$11,428,674  $11,539,483 Interest bearing:   Savings, NOW and money market 26,304,639   24,526,622 Time 12,342,544   13,176,724 Total deposits 50,075,857   49,242,829 Short-term borrowings 72,718   917,834 Long-term borrowings 3,174,155   2,328,375 Junior subordinated debentures issued to capital trusts 57,455   57,108 Lease liabilities 388,303   403,781 Accrued expenses and other liabilities 1,288,076   1,283,656 Total Liabilities 55,056,564   54,233,583 Shareholders’ Equity   Preferred stock, no par value; authorized 50,000,000 shares authorized:   Series A (4,600,000 shares issued at December 31, 2024 and December 31, 2023) 111,590   111,590 Series B (4,000,000 shares issued at December 31, 2024 and December 31, 2023) 98,101   98,101 Series C (6,000,000 shares issued at December 31, 2024) 144,654   — Common stock (no par value, authorized 650,000,000 shares; issued 558,786,093 shares at December 31, 2024 and 507,896,910 shares at December 31, 2023) 195,998   178,187 Surplus 5,442,070   4,989,989 Retained earnings 1,598,048   1,471,371 Accumulated other comprehensive loss (155,334)  (146,456)Treasury stock, at cost (186,983 common shares at December 31, 2023) —   (1,391)Total Shareholders’ Equity 7,435,127   6,701,391 Total Liabilities and Shareholders’ Equity$62,491,691  $60,934,974          VALLEY NATIONAL BANCORPCONSOLIDATED STATEMENTS OF INCOME (Unaudited)(in thousands, except for share data)            Three Months Ended Years Ended December 31, September 30, December 31, December 31,  2024   2024   2023   2024   2023Interest Income         Interest and fees on loans$750,667  $786,680  $762,894  $3,079,864  $2,886,930Interest and dividends on investment securities:         Taxable 55,983   49,700   34,117   181,940   130,708Tax-exempt 4,803   4,855   4,820   19,253   20,305Dividends 5,860   5,929   6,138   24,958   24,139Interest on federal funds sold and other short-term investments 17,513   13,385   10,215   51,482   76,809Total interest income 834,826   860,549   818,184   3,357,497   3,138,891Interest Expense         Interest on deposits:         Savings, NOW and money market 214,489   235,371   221,501   913,963   739,025Time 158,716   174,741   165,351   644,964   535,749Interest on short-term borrowings 293   451   5,524   22,047   94,869Interest on long-term borrowings and junior subordinated debentures 38,351   39,488   28,533   147,815   103,770Total interest expense 411,849   450,051   420,909   1,728,789   1,473,413Net Interest Income 422,977   410,498   397,275   1,628,708   1,665,478(Credit) provision for credit losses for available for sale and held to maturity securities (429)  (14)  (116)  (558)  4,559Provision for credit losses for loans 106,965   75,038   20,696   309,388   45,625Net Interest Income After Provision for Credit Losses 316,441   335,474   376,695   1,319,878   1,615,294Non-Interest Income         Wealth management and trust fees 16,425   15,125   11,978   62,616   44,158Insurance commissions 3,705   2,880   3,221   12,794   11,116Capital Markets 7,425   6,347   6,489   27,221   41,489Service charges on deposit accounts 12,989   12,826   9,336   48,276   41,306Gains on securities transactions, net 1   47   907   100   1,104Fees from loan servicing 3,071   3,443   2,616   12,393   10,670(Losses) gains on sales of loans, net (4,698)  (3,644)  2,302   (5,840)  6,054(Losses) gains on sales of assets, net (20)  55   (129)  3,727   6,809Bank owned life insurance 3,775   5,387   4,107   16,942   11,843Other 8,529   18,205   11,864   46,272   51,180Total non-interest income 51,202   60,671   52,691   224,501   225,729Non-Interest Expense         Salary and employee benefits expense 137,117   138,832   131,719   558,595   563,591Net occupancy expense 26,576   26,973   27,590   102,124   101,470Technology, furniture and equipment expense 35,482   28,962   44,404   135,109   150,708FDIC insurance assessment 14,002   14,792   60,627   61,476   88,154Amortization of other intangible assets 8,373   8,692   9,696   35,045   39,768Professional and legal fees 21,794   14,118   25,238   70,315   80,567Amortization of tax credit investments 1,740   5,853   4,547   18,946   18,009Other 33,498   31,249   36,600   124,250   120,424Total non-interest expense 278,582   269,471   340,421   1,105,860   1,162,691Income Before Income Taxes 89,061   126,674   88,965   438,519   678,332Income tax (benefit) expense (26,650)  28,818   17,411   58,248   179,821Net Income 115,711   97,856   71,554   380,271   498,511Dividends on preferred stock 7,025   6,117   4,104   21,369   16,135Net Income Available to Common Shareholders$108,686  $91,739  $67,450  $358,902  $482,376  VALLEY NATIONAL BANCORPQuarterly Analysis of Average Assets, Liabilities and Shareholders' Equity andNet Interest Income on a Tax Equivalent Basis                    Three Months Ended December 31, 2024 September 30, 2024 December 31, 2023  Average   Avg.  Average   Avg.  Average   Avg.($ in thousands) Balance  Interest Rate  Balance  Interest Rate  Balance  Interest RateAssets                 Interest earning assets:                 Loans (1)(2)$49,730,130 $750,690  6.04% $50,126,963 $786,704  6.28% $50,039,429 $762,918  6.10%Taxable investments (3) 6,504,106  61,843  3.80   5,977,211  55,629  3.72   4,950,773  40,255  3.25 Tax-exempt investments (1)(3) 565,877  6,080  4.30   573,059  6,145  4.29   593,577  6,101  4.11 Interest bearing deposits with banks 1,414,670  17,513  4.95   974,417  13,385  5.49   885,689  10,215  4.61 Total interest earning assets 58,214,783  836,126  5.75   57,651,650  861,863  5.98   56,469,468  819,489  5.80 Other assets 4,650,555      4,590,372      4,644,085    Total assets$62,865,338     $62,242,022     $61,113,553    Liabilities and shareholders' equity                 Interest bearing liabilities:                 Savings, NOW and money market deposits$25,928,201 $214,489  3.31% $25,017,504 $235,371  3.76% $23,991,093 $221,500  3.69%Time deposits 13,530,980  158,716  4.69   14,233,209  174,741  4.91   13,934,683  165,351  4.75 Short-term borrowings 72,504  293  1.62   81,251  451  2.22   449,831  5,524  4.91 Long-term borrowings (4) 3,234,264  38,351  4.74   3,324,992  39,488  4.75   2,377,706  28,533  4.80 Total interest bearing liabilities 42,765,949  411,849  3.85   42,656,956  450,051  4.22   40,753,313  420,908  4.13 Non-interest bearing deposits 11,266,899      11,158,521      11,534,795    Other liabilities 1,577,331      1,563,990      2,185,539    Shareholders' equity 7,255,159      6,862,555      6,639,906    Total liabilities and shareholders' equity$62,865,338     $62,242,022     $61,113,553    Net interest income/interest rate spread (5)  $424,277  1.90%   $411,812  1.76%   $398,581  1.67%Tax equivalent adjustment   (1,300)      (1,314)      (1,305)  Net interest income, as reported  $422,977      $410,498      $397,276   Net interest margin (6)    2.91%     2.85%     2.81%Tax equivalent effect    0.01      0.01      0.01 Net interest margin on a fully tax equivalent basis (6)    2.92%     2.86%     2.82% (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. 

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