Valley National Bancorp Announces Second Quarter 2025 Results
Valley National Bancorp (NASDAQ:VLY) reported strong Q2 2025 results with net income of $133.2 million ($0.22 per diluted share), up from $106.1 million in Q1 2025 and $70.4 million in Q2 2024. The bank demonstrated solid performance with a tax-equivalent net interest margin of 3.01%, increasing 5 basis points from Q1.
Key highlights include: Total loans increased $734.3 million to $49.4 billion, deposits grew by $759.4 million to $50.7 billion, and credit quality remained stable with non-accrual loans at 0.72% of total loans. The efficiency ratio improved to 55.20%, and ROA and ROE reached 0.86% and 7.08% respectively.
The bank successfully redeemed $215 million in subordinated notes and maintained strong balance sheet metrics, with continued focus on growing low-cost deposits and commercial loan expansion.
Valley National Bancorp (NASDAQ:VLY) ha riportato solidi risultati nel secondo trimestre 2025 con un utile netto di 133,2 milioni di dollari (0,22 dollari per azione diluita), in aumento rispetto ai 106,1 milioni del primo trimestre 2025 e ai 70,4 milioni del secondo trimestre 2024. La banca ha mostrato una buona performance con un margine di interesse netto al netto delle imposte del 3,01%, in crescita di 5 punti base rispetto al primo trimestre.
I punti salienti includono: un incremento totale dei prestiti di 734,3 milioni di dollari che ha portato il totale a 49,4 miliardi, i depositi sono aumentati di 759,4 milioni di dollari raggiungendo i 50,7 miliardi, e la qualità del credito è rimasta stabile con prestiti non redditizi al 0,72% del totale prestiti. Il rapporto di efficienza è migliorato al 55,20%, mentre ROA e ROE hanno raggiunto rispettivamente lo 0,86% e il 7,08%.
La banca ha rimborsato con successo 215 milioni di dollari in obbligazioni subordinate e ha mantenuto solidi parametri patrimoniali, continuando a concentrarsi sulla crescita dei depositi a basso costo e sull'espansione dei prestiti commerciali.
Valley National Bancorp (NASDAQ:VLY) reportó sólidos resultados en el segundo trimestre de 2025 con un ingreso neto de 133,2 millones de dólares (0,22 dólares por acción diluida), aumentando desde 106,1 millones en el primer trimestre de 2025 y 70,4 millones en el segundo trimestre de 2024. El banco mostró un desempeño sólido con un margen neto de interés equivalente a impuestos del 3,01%, incrementándose 5 puntos básicos desde el primer trimestre.
Los aspectos clave incluyen: un aumento total de préstamos de 734,3 millones de dólares hasta 49,4 mil millones, los depósitos crecieron en 759,4 millones de dólares hasta 50,7 mil millones, y la calidad crediticia se mantuvo estable con préstamos no devengados en 0,72% del total de préstamos. La ratio de eficiencia mejoró a 55,20%, y el ROA y ROE alcanzaron 0,86% y 7,08% respectivamente.
El banco redimió con éxito 215 millones de dólares en notas subordinadas y mantuvo métricas sólidas en el balance, con un enfoque continuo en el crecimiento de depósitos de bajo costo y la expansión de préstamos comerciales.
Valley National Bancorp (NASDAQ:VLY)는 2025년 2분기에 순이익 1억 3,320만 달러(희석 주당 0.22달러)를 기록하며 강력한 실적을 보고했습니다. 이는 2025년 1분기의 1억 610만 달러와 2024년 2분기의 7,040만 달러에서 증가한 수치입니다. 은행은 세금 환산 순이자마진 3.01%을 기록하며 1분기 대비 5베이시스포인트 상승한 견조한 성과를 보였습니다.
주요 내용으로는: 총 대출금이 7억 3,430만 달러 증가하여 494억 달러, 예금은 7억 5,940만 달러 증가하여 507억 달러에 달했으며, 신용 품질은 총 대출의 0.72%인 부실 대출 비율로 안정적이었습니다. 효율성 비율은 55.20%로 개선되었고, 총자산이익률(ROA)과 자기자본이익률(ROE)은 각각 0.86%와 7.08%에 도달했습니다.
은행은 2억 1,500만 달러의 후순위 채권을 성공적으로 상환했으며, 저비용 예금 증가와 상업 대출 확대에 계속 집중하면서 견고한 재무 지표를 유지했습니다.
Valley National Bancorp (NASDAQ:VLY) a publié de solides résultats pour le deuxième trimestre 2025 avec un bénéfice net de 133,2 millions de dollars (0,22 dollar par action diluée), en hausse par rapport à 106,1 millions au premier trimestre 2025 et 70,4 millions au deuxième trimestre 2024. La banque a affiché une performance solide avec une marge nette d'intérêt équivalente fiscale de 3,01%, en hausse de 5 points de base par rapport au premier trimestre.
Les points clés incluent : une augmentation totale des prêts de 734,3 millions de dollars pour atteindre 49,4 milliards, les dépôts ont augmenté de 759,4 millions de dollars pour atteindre 50,7 milliards, et la qualité du crédit est restée stable avec des prêts non productifs représentant 0,72% du total des prêts. Le ratio d'efficacité s'est amélioré à 55,20%, et le ROA et le ROE ont atteint respectivement 0,86% et 7,08%.
La banque a remboursé avec succès 215 millions de dollars en obligations subordonnées et a maintenu de solides indicateurs bilanciels, en continuant de se concentrer sur la croissance des dépôts à faible coût et l'expansion des prêts commerciaux.
Valley National Bancorp (NASDAQ:VLY) meldete starke Ergebnisse für das zweite Quartal 2025 mit einem Nettogewinn von 133,2 Millionen US-Dollar (0,22 US-Dollar je verwässerter Aktie), gegenüber 106,1 Millionen im ersten Quartal 2025 und 70,4 Millionen im zweiten Quartal 2024. Die Bank zeigte eine solide Leistung mit einer steueräquivalenten Nettozinsmarge von 3,01%, was einem Anstieg um 5 Basispunkte gegenüber dem ersten Quartal entspricht.
Wichtige Highlights sind: Gesamtkredite stiegen um 734,3 Millionen US-Dollar auf 49,4 Milliarden, die Einlagen wuchsen um 759,4 Millionen US-Dollar auf 50,7 Milliarden, und die Kreditqualität blieb stabil mit notleidenden Krediten bei 0,72% der Gesamtkredite. Die Effizienzquote verbesserte sich auf 55,20%, und die Gesamtkapitalrendite (ROA) sowie die Eigenkapitalrendite (ROE) erreichten 0,86% bzw. 7,08%.
Die Bank löste erfolgreich 215 Millionen US-Dollar an nachrangigen Schuldverschreibungen ein und hielt starke Bilanzkennzahlen aufrecht, wobei der Fokus weiterhin auf dem Wachstum von kostengünstigen Einlagen und der Expansion von Unternehmenskrediten lag.
- Net income increased 25.5% quarter-over-quarter to $133.2 million
- Net interest margin improved by 5 basis points to 3.01%
- Total loans grew $734.3 million (6.0% annualized)
- Deposits increased $759.4 billion with non-interest bearing deposits up $118.2 million
- Efficiency ratio improved to 55.20% from 55.87% in Q1 2025
- Provision for credit losses decreased to $37.8 million from $62.7 million in Q1
- Non-accrual loans increased to $354.4 million from $346.5 million in Q1
- Accruing past due loans significantly increased to $199.2 million from $51.7 million
- Non-interest expense increased $7.5 million to $284.1 million
- Professional and legal fees increased $4.3 million due to higher consulting and legal expenses
Insights
Valley National shows strong improvement with 89% YoY earnings growth and solid balance sheet metrics despite lingering credit challenges.
Valley National Bancorp delivered significant earnings growth in Q2 2025, with net income reaching
The bank's net interest margin improved by 5 basis points sequentially to
Valley's loan portfolio grew by
The credit quality picture shows mixed signals. While the provision for credit losses decreased substantially to
On the funding side, deposits increased by
Valley's efficiency ratio improved to
These results demonstrate Valley's successful execution of its strategic priorities: growing C&I loans, reducing CRE concentration, stabilizing funding costs, and improving overall profitability. However, the uptick in problem loans bears watching, even as management expresses confidence in their credit position.
NEW YORK, July 24, 2025 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the second quarter 2025 of
Ira Robbins, CEO, commented, "I am pleased by the continued balance sheet strength and commercial loan growth exhibited during the second quarter. Our profitability metrics are trending positively, consistent with our expectations for improvement throughout the year. We remain focused on growing low-cost deposits, which we expect will support our aspirations in 2025 and beyond.”
Mr. Robbins continued, “Our quarterly credit results continued to improve as illustrated by the significant reduction in our provision for loan losses on both a quarter-over-quarter and year-over-year basis. Our allowance coverage ratio remains at a comfortable level, and we expect general stability going forward.”
Key financial highlights for the second quarter 2025:
- Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 5 basis points to 3.01 percent in the second quarter 2025 as compared to 2.96 percent for the first quarter 2025. Net interest income on a tax equivalent basis of
$433.7 million for the second quarter 2025 increased$12.3 million compared to the first quarter 2025 and increased$30.7 million as compared to the second quarter 2024. The increase in net interest income from the first quarter 2025 was mainly driven by higher yields on new loan originations, increases in average loans and taxable investments and one additional day during the second quarter 2025. See additional details in the "Net Interest Income and Margin" section below. - Loan Portfolio: Total loans increased
$734.3 million , or 6.0 percent on an annualized basis, to$49.4 billion at June 30, 2025 from March 31, 2025 mostly due to increases of$719.8 million and$137.6 million in commercial and industrial (C&I) and automobile loans, respectively. Total commercial real estate (CRE) loans (including construction loans) decreased$288.6 million from March 31, 2025 largely due to normal repayments and continued selective origination activity. 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 349 percent at June 30, 2025 from 353 percent at March 31, 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
$594.0 million and$594.1 million at June 30, 2025 and March 31, 2025, respectively, representing 1.20 percent and 1.22 percent of total loans at each respective date. During the second quarter 2025, we recorded a provision for credit losses for loans of$37.8 million as compared to$62.7 million and$82.1 million for the first quarter 2025 and second quarter 2024, respectively. See the "Credit Quality" section below for more details. - Credit Quality: Net loan charge-offs totaled
$37.8 million for the second quarter 2025 as compared to$41.9 million and$36.8 million for the first quarter 2025 and second quarter 2024, respectively. Non-accrual loans totaled$354.4 million , or 0.72 percent of total loans, at June 30, 2025 as compared to$346.5 million , or 0.71 percent of total loans, at March 31, 2025. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased$147.5 million to$199.2 million , or 0.40 percent of total loans, at June 30, 2025 as compared to$51.7 million , or 0.11 percent of total loans, at March 31, 2025. The majority of this increase related to three CRE loans, of which two were no longer past due in July 2025. See the "Credit Quality" section below for more details. - Deposits: Total deposit balances increased
$759.4 million to$50.7 billion at June 30, 2025 as compared to$50.0 billion at March 31, 2025 mainly due to increases in both direct and indirect (brokered) customer time deposits during the second quarter 2025, partially offset by the outflows of certain indirect customer deposits in the savings, NOW and money market deposit category. Non-interest bearing deposits increased$118.2 million to$11.7 billion at June 30, 2025 from March 31, 2025. See the "Deposits" section below for more details. - Subordinated Debt Redemptions: On June 15, 2025, we redeemed in full
$115 million of 5.25 percent fixed-to-floating rate subordinated notes issued in June 2020 and due in June 2030. The transaction was accounted for as an early debt extinguishment and resulted in a$922 thousand pre-tax loss reported within non-interest expense for the second quarter 2025. In addition, we repaid$100 million of 4.55 percent fixed rate subordinated notes that matured on June 30, 2025. - Non-Interest Income: Non-interest income increased
$4.3 million to$62.6 million for the second quarter 2025 as compared to the first quarter 2025 mainly due to increases of$2.8 million and$2.0 million in capital markets income and service charges on deposit accounts, respectively. The increase in capital markets income was largely driven by a higher volume of interest rate swap transactions executed for commercial loan customers during the second quarter 2025. - Non-Interest Expense: Non-interest expense increased
$7.5 million to$284.1 million for the second quarter 2025 as compared to the first quarter 2025 largely due to an increase of$4.3 million in professional and legal fees driven by higher consulting and legal expenses. Salary and employee benefits expense also increased$2.8 million from the first quarter 2025 mainly due to annual salary merit increases late in the first quarter 2025 and higher cash incentive compensation and severance related expenses. These items were partially offset by lower payroll taxes. - Efficiency Ratio: Our efficiency ratio was 55.20 percent for the second quarter 2025 as compared to 55.87 percent and 59.62 percent for the first quarter 2025 and second 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 0.86 percent, 7.08 percent and 9.62 percent for the second quarter 2025, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.87 percent, 7.15 percent and 9.71 percent for the second 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
Net interest margin on a tax equivalent basis of 3.01 percent for the second quarter 2025 increased by 5 basis points from 2.96 percent for the first quarter 2025 and increased 17 basis points from 2.84 percent for the second quarter 2024. The increase as compared to the first quarter 2025 was mostly due to the 7 basis point increase in the yield on average interest earning assets largely caused by higher interest rates on new loan originations in the second quarter 2025 and higher yielding investment purchases. The overall cost of average interest bearing liabilities increased 2 basis points to 3.56 percent for the second quarter 2025 as compared to the first quarter 2025 mostly due to higher interest rates on certain non-maturity deposit products, partially offset by a lower overall cost of time deposits driven by both new volumes and maturities. Our cost of total average deposits was 2.67 percent for the second quarter 2025 as compared to 2.65 percent and 3.18 percent for the first quarter 2025 and the second quarter 2024, respectively.
Loans, Deposits and Other Borrowings
Loans. Total loans increased
Deposits. Actual ending balances for deposits increased
Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase and FHLB advances, increased
Credit Quality
Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, increased
Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased
Loans 30 to 59 days past due increased
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 June 30, 2025, March 31, 2025 and June 30, 2024:
| June 30, 2025 | March 31, 2025 | June 30, 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 | $ | 173,415 | 1.60 | % | $ | 184,700 | 1.82 | % | $ | 149,243 | 1.57 | % | ||||||
| Commercial real estate loans: | ||||||||||||||||||
| Commercial real estate | 270,937 | 1.04 | 266,938 | 1.02 | 246,316 | 0.87 | ||||||||||||
| Construction | 64,042 | 2.24 | 54,724 | 1.81 | 54,777 | 1.54 | ||||||||||||
| Total commercial real estate loans | 334,979 | 1.16 | 321,662 | 1.10 | 301,093 | 0.95 | ||||||||||||
| Residential mortgage loans | 48,830 | 0.86 | 48,906 | 0.87 | 47,697 | 0.85 | ||||||||||||
| Consumer loans: | ||||||||||||||||||
| Home equity | 3,689 | 0.58 | 3,401 | 0.56 | 3,077 | 0.54 | ||||||||||||
| Auto and other consumer | 18,587 | 0.55 | 19,531 | 0.62 | 18,200 | 0.63 | ||||||||||||
| Total consumer loans | 22,276 | 0.56 | 22,932 | 0.61 | 21,277 | 0.62 | ||||||||||||
| Allowance for loan losses | 579,500 | 1.17 | 578,200 | 1.19 | 519,310 | 1.03 | ||||||||||||
| Allowance for unfunded credit commitments | 14,520 | 15,854 | 13,231 | |||||||||||||||
| Total allowance for credit losses for loans | $ | 594,020 | $ | 594,054 | $ | 532,541 | ||||||||||||
| Allowance for credit losses for loans as a % of total loans | 1.20 | % | 1.22 | % | 1.06 | % | ||||||||||||
Our loan portfolio, totaling
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 1.20 percent at June 30, 2025, 1.22 percent at March 31, 2025, and 1.06 percent at June 30, 2024. For the second quarter 2025, the provision for credit losses for loans totaled
Capital Adequacy
Valley's total risk-based capital, Tier 1 capital, common equity tier 1 capital, and Tier 1 leverage capital ratios were 13.67 percent, 11.57 percent, 10.85 percent and 9.49 percent, respectively, at June 30, 2025 as compared to 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025. The reduction in our total risk-based capital ratio reflects the early redemption of our
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 second 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, August 25, 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
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; U.S. government 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 new legislation and policy changes under the current 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 concerns regarding the soundness, or 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, 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 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 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; and
- unexpected 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 BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| SELECTED FINANCIAL DATA | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
| ($ in thousands, except for share data and stock price) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| FINANCIAL DATA: | |||||||||||||||||||
| Net interest income - FTE (1) | $ | 433,675 | $ | 421,378 | $ | 402,984 | $ | 855,052 | $ | 797,831 | |||||||||
| Net interest income | $ | 432,408 | $ | 420,105 | $ | 401,685 | $ | 852,513 | $ | 795,233 | |||||||||
| Non-interest income | 62,604 | 58,294 | 51,213 | 120,898 | 112,628 | ||||||||||||||
| Total revenue | 495,012 | 478,399 | 452,898 | 973,411 | 907,861 | ||||||||||||||
| Non-interest expense | 284,122 | 276,618 | 277,497 | 560,740 | 557,807 | ||||||||||||||
| Pre-provision net revenue | 210,890 | 201,781 | 175,401 | 412,671 | 350,054 | ||||||||||||||
| Provision for credit losses | 37,799 | 62,661 | 82,070 | 100,460 | 127,270 | ||||||||||||||
| Income tax expense | 39,924 | 33,062 | 22,907 | 72,986 | 56,080 | ||||||||||||||
| Net income | 133,167 | 106,058 | 70,424 | 239,225 | 166,704 | ||||||||||||||
| Dividends on preferred stock | 6,948 | 6,955 | 4,108 | 13,903 | 8,227 | ||||||||||||||
| Net income available to common shareholders | $ | 126,219 | $ | 99,103 | $ | 66,316 | $ | 225,322 | $ | 158,477 | |||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||
| Basic | 560,336,610 | 559,613,272 | 509,141,252 | 559,976,939 | 508,740,986 | ||||||||||||||
| Diluted | 562,312,330 | 563,305,525 | 510,338,502 | 563,431,390 | 510,437,959 | ||||||||||||||
| Per common share data: | |||||||||||||||||||
| Basic earnings | $ | 0.23 | $ | 0.18 | $ | 0.13 | $ | 0.40 | $ | 0.31 | |||||||||
| Diluted earnings | 0.22 | 0.18 | 0.13 | 0.40 | 0.31 | ||||||||||||||
| Cash dividends declared | 0.11 | 0.11 | 0.11 | 0.22 | 0.22 | ||||||||||||||
| Closing stock price - high | 9.20 | 10.42 | 8.02 | 10.42 | 10.80 | ||||||||||||||
| Closing stock price - low | 7.87 | 8.56 | 6.52 | 7.87 | 6.52 | ||||||||||||||
| FINANCIAL RATIOS: | |||||||||||||||||||
| Net interest margin | 3.01 | % | 2.95 | % | 2.83 | % | 2.98 | % | 2.81 | % | |||||||||
| Net interest margin - FTE (1) | 3.01 | 2.96 | 2.84 | 2.99 | 2.81 | ||||||||||||||
| Annualized return on average assets | 0.86 | 0.69 | 0.46 | 0.77 | 0.54 | ||||||||||||||
| Annualized return on avg. shareholders' equity | 7.08 | 5.69 | 4.17 | 6.39 | 4.95 | ||||||||||||||
| NON-GAAP FINANCIAL DATA AND RATIOS: (2) | |||||||||||||||||||
| Basic earnings per share, as adjusted | $ | 0.23 | $ | 0.18 | $ | 0.13 | $ | 0.40 | $ | 0.32 | |||||||||
| Diluted earnings per share, as adjusted | 0.23 | 0.18 | 0.13 | 0.40 | 0.32 | ||||||||||||||
| Annualized return on average assets, as adjusted | 0.87 | % | 0.69 | % | 0.47 | % | 0.78 | % | 0.56 | % | |||||||||
| Annualized return on average shareholders' equity, as adjusted | 7.15 | 5.69 | 4.24 | 6.42 | 5.08 | ||||||||||||||
| Annualized return on average tangible shareholders' equity | 9.62 | 7.76 | 5.95 | 8.70 | 7.07 | ||||||||||||||
| Annualized return on average tangible shareholders' equity, as adjusted | 9.71 | 7.76 | 6.05 | 8.74 | 7.25 | ||||||||||||||
| Efficiency ratio | 55.20 | 55.87 | 59.62 | 55.53 | 59.36 | ||||||||||||||
| AVERAGE BALANCE SHEET ITEMS: | |||||||||||||||||||
| Assets | $ | 62,106,945 | $ | 61,502,768 | $ | 61,518,639 | $ | 61,806,614 | $ | 61,387,754 | |||||||||
| Interest earning assets | 57,553,624 | 56,891,691 | 56,772,950 | 57,224,486 | 56,695,874 | ||||||||||||||
| Loans | 49,032,637 | 48,654,921 | 50,020,901 | 48,844,823 | 50,133,746 | ||||||||||||||
| Interest bearing liabilities | 41,913,735 | 41,230,709 | 41,576,344 | 41,574,732 | 41,566,466 | ||||||||||||||
| Deposits | 49,907,124 | 49,139,303 | 49,383,209 | 49,525,957 | 48,979,591 | ||||||||||||||
| Shareholders' equity | 7,524,231 | 7,458,177 | 6,753,981 | 7,491,395 | 6,739,838 | ||||||||||||||
| VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| As Of | |||||||||||||||||||
| BALANCE SHEET ITEMS: | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
| (In thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||
| Assets | $ | 62,705,358 | $ | 61,865,655 | $ | 62,491,691 | $ | 62,092,332 | $ | 62,058,974 | |||||||||
| Total loans | 49,391,420 | 48,657,128 | 48,799,711 | 49,355,319 | 50,311,702 | ||||||||||||||
| Deposits | 50,725,284 | 49,965,844 | 50,075,857 | 50,395,966 | 50,112,177 | ||||||||||||||
| Shareholders' equity | 7,575,421 | 7,499,897 | 7,435,127 | 6,972,380 | 6,737,737 | ||||||||||||||
| LOANS: | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Commercial and industrial | $ | 10,870,036 | $ | 10,150,205 | $ | 9,931,400 | $ | 9,799,287 | $ | 9,479,147 | |||||||||
| Commercial real estate: | |||||||||||||||||||
| Non-owner occupied | 11,747,491 | 11,945,222 | 12,344,355 | 12,647,649 | 13,710,015 | ||||||||||||||
| Multifamily | 8,434,173 | 8,420,385 | 8,299,250 | 8,612,936 | 8,976,264 | ||||||||||||||
| Owner occupied | 5,789,397 | 5,722,014 | 5,886,620 | 5,654,147 | 5,536,844 | ||||||||||||||
| Construction | 2,854,859 | 3,026,935 | 3,114,733 | 3,487,464 | 3,545,723 | ||||||||||||||
| Total commercial real estate | 28,825,920 | 29,114,556 | 29,644,958 | 30,402,196 | 31,768,846 | ||||||||||||||
| Residential mortgage | 5,709,971 | 5,636,407 | 5,632,516 | 5,684,079 | 5,627,113 | ||||||||||||||
| Consumer: | |||||||||||||||||||
| Home equity | 634,553 | 602,161 | 604,433 | 581,181 | 566,467 | ||||||||||||||
| Automobile | 2,178,841 | 2,041,227 | 1,901,065 | 1,823,738 | 1,762,852 | ||||||||||||||
| Other consumer | 1,172,099 | 1,112,572 | 1,085,339 | 1,064,838 | 1,107,277 | ||||||||||||||
| Total consumer loans | 3,985,493 | 3,755,960 | 3,590,837 | 3,469,757 | 3,436,596 | ||||||||||||||
| Total loans | $ | 49,391,420 | $ | 48,657,128 | $ | 48,799,711 | $ | 49,355,319 | $ | 50,311,702 | |||||||||
| CAPITAL RATIOS: | |||||||||||||||||||
| Book value per common share | $ | 12.89 | $ | 12.76 | $ | 12.67 | $ | 13.00 | $ | 12.82 | |||||||||
| Tangible book value per common share (2) | 9.35 | 9.21 | 9.10 | 9.06 | 8.87 | ||||||||||||||
| Tangible common equity to tangible assets (2) | 8.63 | % | 8.61 | % | 8.40 | % | 7.68 | % | 7.52 | % | |||||||||
| Tier 1 leverage capital | 9.49 | 9.41 | 9.16 | 8.40 | 8.19 | ||||||||||||||
| Common equity tier 1 capital | 10.85 | 10.80 | 10.82 | 9.57 | 9.55 | ||||||||||||||
| Tier 1 risk-based capital | 11.57 | 11.53 | 11.55 | 10.29 | 9.98 | ||||||||||||||
| Total risk-based capital | 13.67 | 13.91 | 13.87 | 12.56 | 12.17 | ||||||||||||||
| VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | June 30, | March 31, | June 30, | June 30, | |||||||||||||||
| ($ in thousands) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Allowance for credit losses for loans | |||||||||||||||||||
| Beginning balance - Allowance for credit losses for loans | $ | 594,054 | $ | 573,328 | $ | 487,269 | $ | 573,328 | $ | 465,550 | |||||||||
| Loans charged-off: | |||||||||||||||||||
| Commercial and industrial | (25,189 | ) | (28,456 | ) | (14,721 | ) | (53,645 | ) | (29,014 | ) | |||||||||
| Commercial real estate | (14,623 | ) | (12,260 | ) | (22,144 | ) | (26,883 | ) | (23,348 | ) | |||||||||
| Construction | — | (1,163 | ) | (212 | ) | (1,163 | ) | (7,806 | ) | ||||||||||
| Total consumer | (2,259 | ) | (2,140 | ) | (1,262 | ) | (4,399 | ) | (3,071 | ) | |||||||||
| Total loans charged-off | (42,071 | ) | (44,019 | ) | (38,339 | ) | (86,090 | ) | (63,239 | ) | |||||||||
| Charged-off loans recovered: | |||||||||||||||||||
| Commercial and industrial | 2,789 | 810 | 742 | 3,599 | 1,424 | ||||||||||||||
| Commercial real estate | 188 | 249 | 150 | 437 | 391 | ||||||||||||||
| Construction | 455 | — | — | 455 | — | ||||||||||||||
| Residential mortgage | 37 | 168 | 5 | 205 | 30 | ||||||||||||||
| Total consumer | 773 | 843 | 603 | 1,616 | 1,000 | ||||||||||||||
| Total loans recovered | 4,242 | 2,070 | 1,500 | 6,312 | 2,845 | ||||||||||||||
| Total net charge-offs | (37,829 | ) | (41,949 | ) | (36,839 | ) | (79,778 | ) | (60,394 | ) | |||||||||
| Provision for credit losses for loans | 37,795 | 62,675 | 82,111 | 100,470 | 127,385 | ||||||||||||||
| Ending balance | $ | 594,020 | $ | 594,054 | $ | 532,541 | $ | 594,020 | $ | 532,541 | |||||||||
| Components of allowance for credit losses for loans: | |||||||||||||||||||
| Allowance for loan losses | $ | 579,500 | $ | 578,200 | $ | 519,310 | $ | 579,500 | $ | 519,310 | |||||||||
| Allowance for unfunded credit commitments | 14,520 | 15,854 | 13,231 | 14,520 | 13,231 | ||||||||||||||
| Allowance for credit losses for loans | $ | 594,020 | $ | 594,054 | $ | 532,541 | $ | 594,020 | $ | 532,541 | |||||||||
| Components of provision for credit losses for loans: | |||||||||||||||||||
| Provision for credit losses for loans | $ | 39,129 | $ | 61,299 | $ | 86,901 | $ | 100,428 | $ | 133,624 | |||||||||
| (Credit) provision for unfunded credit commitments | (1,334 | ) | 1,376 | (4,790 | ) | 42 | (6,239 | ) | |||||||||||
| Total provision for credit losses for loans | $ | 37,795 | $ | 62,675 | $ | 82,111 | $ | 100,470 | $ | 127,385 | |||||||||
| Annualized ratio of total net charge-offs to total average loans | 0.31 | % | 0.34 | % | 0.29 | % | 0.33 | % | 0.24 | % | |||||||||
| Allowance for credit losses for loans as a % of total loans | 1.20 | % | 1.22 | % | 1.06 | % | 1.20 | % | 1.06 | % | |||||||||
| VALLEY NATIONAL BANCORP CONSOLIDATED FINANCIAL HIGHLIGHTS | |||||||||||||||||||
| As Of | |||||||||||||||||||
| ASSET QUALITY: | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
| ($ in thousands) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||
| Accruing past due loans: | |||||||||||||||||||
| 30 to 59 days past due: | |||||||||||||||||||
| Commercial and industrial | $ | 10,451 | $ | 3,609 | $ | 2,389 | $ | 4,537 | $ | 5,086 | |||||||||
| Commercial real estate | 42,884 | 170 | 20,902 | 76,370 | 1,879 | ||||||||||||||
| Construction | 35,000 | — | — | — | — | ||||||||||||||
| Residential mortgage | 21,744 | 16,747 | 21,295 | 19,549 | 17,389 | ||||||||||||||
| Total consumer | 12,878 | 12,887 | 12,552 | 14,672 | 21,639 | ||||||||||||||
| Total 30 to 59 days past due | 122,957 | 33,413 | 57,138 | 115,128 | 45,993 | ||||||||||||||
| 60 to 89 days past due: | |||||||||||||||||||
| Commercial and industrial | 1,095 | 420 | 1,007 | 1,238 | 1,621 | ||||||||||||||
| Commercial real estate | 60,601 | — | 24,903 | 43,926 | — | ||||||||||||||
| Residential mortgage | 7,627 | 7,700 | 5,773 | 6,892 | 6,632 | ||||||||||||||
| Total consumer | 4,001 | 2,408 | 4,484 | 2,732 | 3,671 | ||||||||||||||
| Total 60 to 89 days past due | 73,324 | 10,528 | 36,167 | 54,788 | 11,924 | ||||||||||||||
| 90 or more days past due: | |||||||||||||||||||
| Commercial and industrial | — | — | 1,307 | 1,786 | 2,739 | ||||||||||||||
| Commercial real estate | — | — | — | — | 4,242 | ||||||||||||||
| Construction | — | — | — | — | 3,990 | ||||||||||||||
| Residential mortgage | 2,062 | 6,892 | 3,533 | 1,931 | 2,609 | ||||||||||||||
| Total consumer | 859 | 864 | 1,049 | 1,063 | 898 | ||||||||||||||
| Total 90 or more days past due | 2,921 | 7,756 | 5,889 | 4,780 | 14,478 | ||||||||||||||
| Total accruing past due loans | $ | 199,202 | $ | 51,697 | $ | 99,194 | $ | 174,696 | $ | 72,395 | |||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial and industrial | $ | 90,973 | $ | 110,146 | $ | 136,675 | $ | 120,575 | $ | 102,942 | |||||||||
| Commercial real estate | 193,604 | 172,011 | 157,231 | 113,752 | 123,011 | ||||||||||||||
| Construction | 24,068 | 24,275 | 24,591 | 24,657 | 45,380 | ||||||||||||||
| Residential mortgage | 41,099 | 35,393 | 36,786 | 33,075 | 28,322 | ||||||||||||||
| Total consumer | 4,615 | 4,626 | 4,215 | 4,260 | 3,624 | ||||||||||||||
| Total non-accrual loans | 354,359 | 346,451 | 359,498 | 296,319 | 303,279 | ||||||||||||||
| Other real estate owned (OREO) | 4,783 | 7,714 | 12,150 | 7,172 | 8,059 | ||||||||||||||
| Other repossessed assets | 1,642 | 2,054 | 1,681 | 1,611 | 1,607 | ||||||||||||||
| Total non-performing assets | $ | 360,784 | $ | 356,219 | $ | 373,329 | $ | 305,102 | $ | 312,945 | |||||||||
| Total non-accrual loans as a % of loans | 0.72 | % | 0.71 | % | 0.74 | % | 0.60 | % | 0.60 | % | |||||||||
| Total accruing past due and non-accrual loans as a % of loans | 1.12 | % | 0.82 | % | 0.94 | % | 0.95 | % | 0.75 | % | |||||||||
| Allowance for losses on loans as a % of non-accrual loans | 163.53 | % | 166.89 | % | 155.45 | % | 185.05 | % | 171.23 | % | |||||||||
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 | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
| ($ in thousands, except for share data) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Adjusted net income available to common shareholders (non-GAAP): | |||||||||||||||||||
| Net income, as reported (GAAP) | $ | 133,167 | $ | 106,058 | $ | 70,424 | $ | 239,225 | $ | 166,704 | |||||||||
| Add: Loss on extinguishment of debt | 922 | — | — | 922 | — | ||||||||||||||
| Add: FDIC special assessment (a) | — | — | 1,363 | — | 8,757 | ||||||||||||||
| Add: Losses on available for sale and held to maturity debt securities, net (b) | — | 11 | 4 | 11 | 11 | ||||||||||||||
| Add: Restructuring charge (c) | 800 | — | 334 | 800 | 954 | ||||||||||||||
| Less: Gain on sale of commercial premium finance lending division (d) | — | — | — | — | (3,629 | ) | |||||||||||||
| Total non-GAAP adjustments to net income | 1,722 | 11 | 1,701 | 1,733 | 6,093 | ||||||||||||||
| Income tax adjustments related to non-GAAP adjustments (e) | (474 | ) | (3 | ) | (482 | ) | (477 | ) | (1,706 | ) | |||||||||
| Net income, as adjusted (non-GAAP) | $ | 134,415 | $ | 106,066 | $ | 71,643 | $ | 240,481 | $ | 171,091 | |||||||||
| Dividends on preferred stock | 6,948 | 6,955 | 4,108 | 13,903 | 8,227 | ||||||||||||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $ | 127,467 | $ | 99,111 | $ | 67,535 | $ | 226,578 | $ | 162,864 | |||||||||
| __________ | |||||||||||||||||||
| (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) Included in other income within non-interest income. | |||||||||||||||||||
| (e) 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) | $ | 127,467 | $ | 99,111 | $ | 67,535 | $ | 226,578 | $ | 162,864 | |||||||||
| Average number of shares outstanding | 560,336,610 | 559,613,272 | 509,141,252 | 559,976,939 | 508,740,986 | ||||||||||||||
| Basic earnings, as adjusted (non-GAAP) | $ | 0.23 | $ | 0.18 | $ | 0.13 | $ | 0.40 | $ | 0.32 | |||||||||
| Average number of diluted shares outstanding | 562,312,330 | 563,305,525 | 510,338,502 | 563,431,390 | 510,437,959 | ||||||||||||||
| Diluted earnings, as adjusted (non-GAAP) | $ | 0.23 | $ | 0.18 | $ | 0.13 | $ | 0.40 | $ | 0.32 | |||||||||
| Adjusted annualized return on average tangible shareholders' equity (non-GAAP): | |||||||||||||||||||
| Net income, as adjusted (non-GAAP) | $ | 134,415 | $ | 106,066 | $ | 71,643 | $ | 240,481 | $ | 171,091 | |||||||||
| Average shareholders' equity | $ | 7,524,231 | $ | 7,458,177 | $ | 6,753,981 | $ | 7,491,395 | $ | 6,739,838 | |||||||||
| Less: Average goodwill and other intangible assets | 1,987,381 | 1,994,061 | 2,016,766 | 1,990,702 | 2,020,883 | ||||||||||||||
| Average tangible shareholders' equity | $ | 5,536,850 | $ | 5,464,116 | $ | 4,737,215 | $ | 5,500,693 | $ | 4,718,955 | |||||||||
| Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP) | 9.71 | % | 7.76 | % | 6.05 | % | 8.74 | % | 7.25 | % | |||||||||
| Adjusted annualized return on average assets (non-GAAP): | |||||||||||||||||||
| Net income, as adjusted (non-GAAP) | $ | 134,415 | $ | 106,066 | $ | 71,643 | $ | 240,481 | $ | 171,091 | |||||||||
| Average assets | $ | 62,106,945 | $ | 61,502,768 | $ | 61,518,639 | $ | 61,806,614 | $ | 61,387,754 | |||||||||
| Annualized return on average assets, as adjusted (non-GAAP) | 0.87 | % | 0.69 | % | 0.47 | % | 0.78 | % | 0.56 | % | |||||||||
| Non-GAAP Reconciliations to GAAP Financial Measures (Continued) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
| ($ in thousands, except for share data) | 2025 | 2025 | 2024 | 2025 | 2024 | ||||||||||||||
| Adjusted annualized return on average shareholders' equity (non-GAAP): | |||||||||||||||||||
| Net income, as adjusted (non-GAAP) | $ | 134,415 | $ | 106,066 | $ | 71,643 | $ | 240,481 | $ | 171,091 | |||||||||
| Average shareholders' equity | $ | 7,524,231 | $ | 7,458,177 | $ | 6,753,981 | $ | 7,491,395 | $ | 6,739,838 | |||||||||
| Annualized return on average shareholders' equity, as adjusted (non-GAAP) | 7.15 | % | 5.69 | % | 4.24 | % | 6.42 | % | 5.08 | % | |||||||||
| Annualized return on average tangible shareholders' equity (non-GAAP): | |||||||||||||||||||
| Net income, as reported (GAAP) | $ | 133,167 | $ | 106,058 | $ | 70,424 | $ | 239,225 | $ | 166,704 | |||||||||
| Average shareholders' equity | $ | 7,524,231 | $ | 7,458,177 | $ | 6,753,981 | $ | 7,491,395 | $ | 6,739,838 | |||||||||
| Less: Average goodwill and other intangible assets | 1,987,381 | 1,994,061 | 2,016,766 | 1,990,702 | 2,020,883 | ||||||||||||||
| Average tangible shareholders' equity | $ | 5,536,850 | $ | 5,464,116 | $ | 4,737,215 | $ | 5,500,693 | $ | 4,718,955 | |||||||||
| Annualized return on average tangible shareholders' equity (non-GAAP) | 9.62 | % | 7.76 | % | 5.95 | % | 8.70 | % | 7.07 | % | |||||||||
| Efficiency ratio (non-GAAP): | |||||||||||||||||||
| Non-interest expense, as reported (GAAP) | $ | 284,122 | $ | 276,618 | $ | 277,497 | $ | 560,740 | $ | 557,807 | |||||||||
| Less: Loss on extinguishment of debt (pre-tax) | 922 | — | — | 922 | — | ||||||||||||||
| Less: FDIC special assessment (pre-tax) | — | — | 1,363 | — | 8,757 | ||||||||||||||
| Less: Restructuring charge (pre-tax) | 800 | — | 334 | 800 | 954 | ||||||||||||||
| Less: Amortization of tax credit investments (pre-tax) | 9,134 | 9,320 | 5,791 | 18,454 | 11,353 | ||||||||||||||
| Non-interest expense, as adjusted (non-GAAP) | $ | 273,266 | $ | 267,298 | $ | 270,009 | $ | 540,564 | $ | 536,743 | |||||||||
| Net interest income, as reported (GAAP) | 432,408 | 420,105 | 401,685 | 852,513 | 795,233 | ||||||||||||||
| Non-interest income, as reported (GAAP) | 62,604 | 58,294 | 51,213 | 120,898 | 112,628 | ||||||||||||||
| Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) | — | 11 | 4 | 11 | 11 | ||||||||||||||
| Less: Gain on sale of premium finance division (pre-tax) | — | — | — | — | (3,629 | ) | |||||||||||||
| Non-interest income, as adjusted (non-GAAP) | $ | 62,604 | $ | 58,305 | $ | 51,217 | $ | 120,909 | $ | 109,010 | |||||||||
| Gross operating income, as adjusted (non-GAAP) | $ | 495,012 | $ | 478,410 | $ | 452,902 | $ | 973,422 | $ | 904,243 | |||||||||
| Efficiency ratio (non-GAAP) | 55.20 | % | 55.87 | % | 59.62 | % | 55.53 | % | 59.36 | % | |||||||||
| As of | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| ($ in thousands, except for share data) | 2025 | 2025 | 2024 | 2024 | 2024 | ||||||||||||||
| Tangible book value per common share (non-GAAP): | |||||||||||||||||||
| Common shares outstanding | 560,281,821 | 560,028,101 | 558,786,093 | 509,252,936 | 509,205,014 | ||||||||||||||
| Shareholders' equity (GAAP) | $ | 7,575,421 | $ | 7,499,897 | $ | 7,435,127 | $ | 6,972,380 | $ | 6,737,737 | |||||||||
| Less: Preferred stock | 354,345 | 354,345 | 354,345 | 354,345 | 209,691 | ||||||||||||||
| Less: Goodwill and other intangible assets | 1,983,515 | 1,990,276 | 1,997,597 | 2,004,414 | 2,012,580 | ||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 5,237,561 | $ | 5,155,276 | $ | 5,083,185 | $ | 4,613,621 | $ | 4,515,466 | |||||||||
| Tangible book value per common share (non-GAAP) | $ | 9.35 | $ | 9.21 | $ | 9.10 | $ | 9.06 | $ | 8.87 | |||||||||
| Tangible common equity to tangible assets (non-GAAP): | |||||||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 5,237,561 | $ | 5,155,276 | $ | 5,083,185 | $ | 4,613,621 | $ | 4,515,466 | |||||||||
| Total assets (GAAP) | $ | 62,705,358 | $ | 61,865,655 | $ | 62,491,691 | $ | 62,092,332 | $ | 62,058,974 | |||||||||
| Less: Goodwill and other intangible assets | 1,983,515 | 1,990,276 | 1,997,597 | 2,004,414 | 2,012,580 | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 60,721,843 | $ | 59,875,379 | $ | 60,494,094 | $ | 60,087,918 | $ | 60,046,394 | |||||||||
| Tangible common equity to tangible assets (non-GAAP) | 8.63 | % | 8.61 | % | 8.40 | % | 7.68 | % | 7.52 | % | |||||||||
| VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data) | |||||||
| June 30, | December 31, | ||||||
| 2025 | 2024 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Cash and due from banks | $ | 440,870 | $ | 411,412 | |||
| Interest bearing deposits with banks | 745,547 | 1,478,713 | |||||
| Investment securities: | |||||||
| Equity securities | 77,408 | 71,513 | |||||
| Available for sale debt securities | 3,896,205 | 3,369,724 | |||||
| Held to maturity debt securities (net of allowance for credit losses of | 3,530,924 | 3,531,573 | |||||
| Total investment securities | 7,504,537 | 6,972,810 | |||||
| Loans held for sale (includes fair value of | 28,096 | 25,681 | |||||
| Loans | 49,391,420 | 48,799,711 | |||||
| Less: Allowance for loan losses | (579,500 | ) | (558,850 | ) | |||
| Net loans | 48,811,920 | 48,240,861 | |||||
| Premises and equipment, net | 337,371 | 350,796 | |||||
| Lease right of use assets | 332,324 | 328,475 | |||||
| Bank owned life insurance | 735,026 | 731,574 | |||||
| Accrued interest receivable | 238,278 | 239,941 | |||||
| Goodwill | 1,868,936 | 1,868,936 | |||||
| Other intangible assets, net | 114,579 | 128,661 | |||||
| Other assets | 1,547,874 | 1,713,831 | |||||
| Total Assets | $ | 62,705,358 | $ | 62,491,691 | |||
| Liabilities | |||||||
| Deposits: | |||||||
| Non-interest bearing | $ | 11,746,770 | $ | 11,428,674 | |||
| Interest bearing: | |||||||
| Savings, NOW and money market | 26,091,633 | 26,304,639 | |||||
| Time | 12,886,881 | 12,342,544 | |||||
| Total deposits | 50,725,284 | 50,075,857 | |||||
| Short-term borrowings | 162,244 | 72,718 | |||||
| Long-term borrowings | 2,903,091 | 3,174,155 | |||||
| Junior subordinated debentures issued to capital trusts | 57,629 | 57,455 | |||||
| Lease liabilities | 392,633 | 388,303 | |||||
| Accrued expenses and other liabilities | 889,056 | 1,288,076 | |||||
| Total Liabilities | 55,129,937 | 55,056,564 | |||||
| Shareholders’ Equity | |||||||
| Preferred stock, no par value; 50,000,000 authorized shares: | |||||||
| Series A (4,600,000 shares issued at June 30, 2025 and December 31, 2024) | 111,590 | 111,590 | |||||
| Series B (4,000,000 shares issued at June 30, 2025 and December 31, 2024) | 98,101 | 98,101 | |||||
| Series C (6,000,000 shares issued at June 30, 2025 and December 31, 2024) | 144,654 | 144,654 | |||||
| Common stock (no par value, authorized 650,000,000 shares; issued 560,522,946 shares at June 30, 2025 and 558,786,093 shares at December 31, 2024) | 196,606 | 195,998 | |||||
| Surplus | 5,451,543 | 5,442,070 | |||||
| Retained earnings | 1,694,903 | 1,598,048 | |||||
| Accumulated other comprehensive loss | (119,889 | ) | (155,334 | ) | |||
| Treasury stock, at cost (241,125 common shares at June 30, 2025) | (2,087 | ) | — | ||||
| Total Shareholders’ Equity | 7,575,421 | 7,435,127 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 62,705,358 | $ | 62,491,691 | |||
| VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF INCOME (Unaudited) (in thousands, except for share data) | |||||||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| June 30, | March 31, | June 30, | June 30, | ||||||||||||||||
| 2025 | 2025 | 2024 | 2025 | 2024 | |||||||||||||||
| Interest Income | |||||||||||||||||||
| Interest and fees on loans | $ | 720,282 | $ | 703,609 | $ | 770,964 | $ | 1,423,891 | $ | 1,542,517 | |||||||||
| Interest and dividends on investment securities: | |||||||||||||||||||
| Taxable | 67,164 | 63,898 | 40,460 | 131,062 | 76,257 | ||||||||||||||
| Tax-exempt | 4,681 | 4,702 | 4,799 | 9,383 | 9,595 | ||||||||||||||
| Dividends | 5,528 | 5,664 | 6,341 | 11,192 | 13,169 | ||||||||||||||
| Interest on federal funds sold and other short-term investments | 7,357 | 6,879 | 10,902 | 14,236 | 20,584 | ||||||||||||||
| Total interest income | 805,012 | 784,752 | 833,466 | 1,589,764 | 1,662,122 | ||||||||||||||
| Interest Expense | |||||||||||||||||||
| Interest on deposits: | |||||||||||||||||||
| Savings, NOW and money market | 203,390 | 200,221 | 231,597 | 403,611 | 464,103 | ||||||||||||||
| Time | 129,324 | 125,069 | 160,442 | 254,393 | 311,507 | ||||||||||||||
| Interest on short-term borrowings | 1,736 | 2,946 | 691 | 4,682 | 21,303 | ||||||||||||||
| Interest on long-term borrowings and junior subordinated debentures | 38,154 | 36,411 | 39,051 | 74,565 | 69,976 | ||||||||||||||
| Total interest expense | 372,604 | 364,647 | 431,781 | 737,251 | 866,889 | ||||||||||||||
| Net Interest Income | 432,408 | 420,105 | 401,685 | 852,513 | 795,233 | ||||||||||||||
| Provision (credit) for credit losses for available for sale and held to maturity securities | 4 | (14 | ) | (41 | ) | (10 | ) | (115 | ) | ||||||||||
| Provision for credit losses for loans | 37,795 | 62,675 | 82,111 | 100,470 | 127,385 | ||||||||||||||
| Net Interest Income After Provision for Credit Losses | 394,609 | 357,444 | 319,615 | 752,053 | 667,963 | ||||||||||||||
| Non-Interest Income | |||||||||||||||||||
| Wealth management and trust fees | 14,056 | 15,031 | 13,136 | 29,087 | 31,066 | ||||||||||||||
| Insurance commissions | 3,430 | 3,402 | 3,958 | 6,832 | 6,209 | ||||||||||||||
| Capital markets | 9,767 | 6,940 | 7,779 | 16,707 | 13,449 | ||||||||||||||
| Service charges on deposit accounts | 14,705 | 12,726 | 11,212 | 27,431 | 22,461 | ||||||||||||||
| (Losses) gains on securities transactions, net | (1 | ) | 46 | 3 | 45 | 52 | |||||||||||||
| Fees from loan servicing | 3,671 | 3,215 | 2,691 | 6,886 | 5,879 | ||||||||||||||
| Gains on sales of loans, net | 2,025 | 2,197 | 884 | 4,222 | 2,502 | ||||||||||||||
| Bank owned life insurance | 6,019 | 4,777 | 4,545 | 10,796 | 7,780 | ||||||||||||||
| Other | 8,932 | 9,960 | 7,005 | 18,892 | 23,230 | ||||||||||||||
| Total non-interest income | 62,604 | 58,294 | 51,213 | 120,898 | 112,628 | ||||||||||||||
| Non-Interest Expense | |||||||||||||||||||
| Salary and employee benefits expense | 145,422 | 142,618 | 140,815 | 288,040 | 282,646 | ||||||||||||||
| Net occupancy expense | 25,483 | 25,888 | 24,252 | 51,371 | 48,575 | ||||||||||||||
| Technology, furniture and equipment expense | 30,667 | 29,896 | 35,203 | 60,563 | 70,665 | ||||||||||||||
| FDIC insurance assessment | 12,192 | 12,867 | 14,446 | 25,059 | 32,682 | ||||||||||||||
| Amortization of other intangible assets | 7,427 | 8,019 | 8,568 | 15,446 | 17,980 | ||||||||||||||
| Professional and legal fees | 19,970 | 15,670 | 17,938 | 35,640 | 34,403 | ||||||||||||||
| Loss on extinguishment of debt | 922 | — | — | 922 | — | ||||||||||||||
| Amortization of tax credit investments | 9,134 | 9,320 | 5,791 | 18,454 | 11,353 | ||||||||||||||
| Other | 32,905 | 32,340 | 30,484 | 65,245 | 59,503 | ||||||||||||||
| Total non-interest expense | 284,122 | 276,618 | 277,497 | 560,740 | 557,807 | ||||||||||||||
| Income Before Income Taxes | 173,091 | 139,120 | 93,331 | 312,211 | 222,784 | ||||||||||||||
| Income tax expense | 39,924 | 33,062 | 22,907 | 72,986 | 56,080 | ||||||||||||||
| Net Income | 133,167 | 106,058 | 70,424 | 239,225 | 166,704 | ||||||||||||||
| Dividends on preferred stock | 6,948 | 6,955 | 4,108 | 13,903 | 8,227 | ||||||||||||||
| Net Income Available to Common Shareholders | $ | 126,219 | $ | 99,103 | $ | 66,316 | $ | 225,322 | $ | 158,477 | |||||||||
| VALLEY NATIONAL BANCORP Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and Net Interest Income on a Tax Equivalent Basis | |||||||||||||||||||||||||||||
| Three Months Ended | |||||||||||||||||||||||||||||
| June 30, 2025 | March 31, 2025 | June 30, 2024 | |||||||||||||||||||||||||||
| Average | Avg. | Average | Avg. | Average | Avg. | ||||||||||||||||||||||||
| ($ in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||||
| Loans (1)(2) | $ | 49,032,637 | $ | 720,305 | 5.88 | % | $ | 48,654,921 | $ | 703,632 | 5.78 | % | $ | 50,020,901 | $ | 770,987 | 6.17 | % | |||||||||||
| Taxable investments (3) | 7,350,792 | 72,692 | 3.96 | 7,100,958 | 69,562 | 3.92 | 5,379,101 | 46,801 | 3.48 | ||||||||||||||||||||
| Tax-exempt investments (1)(3) | 544,302 | 5,925 | 4.35 | 552,291 | 5,952 | 4.31 | 575,272 | 6,075 | 4.22 | ||||||||||||||||||||
| Interest bearing deposits with banks | 625,893 | 7,357 | 4.70 | 583,521 | 6,879 | 4.72 | 797,676 | 10,902 | 5.47 | ||||||||||||||||||||
| Total interest earning assets | 57,553,624 | 806,279 | 5.60 | 56,891,691 | 786,025 | 5.53 | 56,772,950 | 834,765 | 5.88 | ||||||||||||||||||||
| Other assets | 4,553,321 | 4,611,077 | 4,745,689 | ||||||||||||||||||||||||||
| Total assets | $ | 62,106,945 | $ | 61,502,768 | $ | 61,518,639 | |||||||||||||||||||||||
| Liabilities and shareholders' equity | |||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||
| Savings, NOW and money market deposits | $ | 26,451,349 | $ | 203,390 | 3.08 | % | $ | 26,345,983 | $ | 200,221 | 3.04 | % | $ | 24,848,266 | $ | 231,597 | 3.73 | % | |||||||||||
| Time deposits | 12,119,461 | 129,324 | 4.27 | 11,570,758 | 125,069 | 4.32 | 13,311,381 | 160,442 | 4.82 | ||||||||||||||||||||
| Short-term borrowings | 196,491 | 1,736 | 3.53 | 307,637 | 2,946 | 3.83 | 97,502 | 691 | 2.83 | ||||||||||||||||||||
| Long-term borrowings (4) | 3,146,434 | 38,154 | 4.85 | 3,006,331 | 36,411 | 4.84 | 3,319,195 | 39,051 | 4.71 | ||||||||||||||||||||
| Total interest bearing liabilities | 41,913,735 | 372,604 | 3.56 | 41,230,709 | 364,647 | 3.54 | 41,576,344 | 431,781 | 4.15 | ||||||||||||||||||||
| Non-interest bearing deposits | 11,336,314 | 11,222,562 | 11,223,562 | ||||||||||||||||||||||||||
| Other liabilities | 1,332,665 | 1,591,320 | 1,964,752 | ||||||||||||||||||||||||||
| Shareholders' equity | 7,524,231 | 7,458,177 | 6,753,981 | ||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 62,106,945 | $ | 61,502,768 | $ | 61,518,639 | |||||||||||||||||||||||
| Net interest income/interest rate spread (5) | $ | 433,675 | 2.04 | % | $ | 421,378 | 1.99 | % | $ | 402,984 | 1.73 | % | |||||||||||||||||
| Tax equivalent adjustment | (1,267 | ) | (1,273 | ) | (1,299 | ) | |||||||||||||||||||||||
| Net interest income, as reported | $ | 432,408 | $ | 420,105 | $ | 401,685 | |||||||||||||||||||||||
| Net interest margin (6) | 3.01 | % | 2.95 | % | 2.83 | % | |||||||||||||||||||||||
| Tax equivalent effect | 0.00 | 0.01 | 0.01 | ||||||||||||||||||||||||||
| Net interest margin on a fully tax equivalent basis (6) | 3.01 | % | 2.96 | % | 2.84 | % | |||||||||||||||||||||||
____________
(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.
SHAREHOLDER RELATIONS
Requests 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 |
FAQ
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