Valley National Bancorp Announces Second Quarter 2026 Results
Rhea-AI Summary
Valley National Bancorp (NASDAQ: VLY) reported second quarter 2026 net income of $170.9 million, or $0.29 per diluted share, up from $163.9 million ($0.28) in Q1 2026 and $133.2 million ($0.22) in Q2 2025. Adjusted non-GAAP net income was $172.8 million, or $0.30 per diluted share.
Net interest income on a tax-equivalent basis rose to $488.4 million, with net interest margin improving to 3.20%. Total loans increased $1.6 billion to $52.5 billion, while deposits grew $1.3 billion to $54.1 billion, led by time and non-interest-bearing deposits. The efficiency ratio improved to 52.11%, and annualized adjusted ROA and ROTCE were 1.05% and 12.05%, respectively.
Credit metrics were mixed: the allowance for credit losses for loans was $606.9 million (1.16% of loans), net charge-offs were $22.0 million, and non-accrual loans increased to $462.6 million. Valley issued $500 million of subordinated notes and redeemed $300 million of callable subordinated notes during the quarter.
Positive
- Net income $170.9M vs. $163.9M in Q1 2026 and $133.2M in Q2 2025
- Adjusted EPS $0.30 in Q2 2026 vs. $0.29 in Q1 2026 and $0.23 in Q2 2025
- Net interest income (tax-equivalent) $488.4M, +$15.6M QoQ and +$54.7M YoY
- Net interest margin 3.20%, up 3 bps QoQ and 19 bps YoY
- Loan growth $1.6B in Q2 2026 to $52.5B; C&I +$857.2M, CRE +$638.9M
- Deposit growth $1.3B in Q2 2026 to $54.1B; non-interest-bearing +$298.6M
- Efficiency ratio improved to 52.11% from 53.10% in Q1 2026 and 55.20% in Q2 2025
- Adjusted annualized ROA/ROTCE 1.05% and 12.05% for Q2 2026
Negative
- Provision for credit losses for loans $29.2M vs. $21.2M in Q1 2026
- Net loan charge-offs $22.0M vs. $17.5M in Q1 2026
- Non-accrual loans increased to $462.6M (0.88% of loans) from $432.6M (0.85%)
- Accruing past due loans rose to $180.2M (0.34% of loans) from $127.9M (0.25%)
- Total NPAs increased $28.2M to $467.8M in Q2 2026
- Total interest expense rose $11.2M QoQ to $342.4M, reflecting higher funding costs and excess subordinated debt
Key Figures
Previous Earnings Reports
| Date | Event | Sentiment | 24h Move | Catalyst |
|---|---|---|---|---|
| Apr 23 | First-quarter earnings | Positive | +3.9% | Net income, margin, loans and deposits increased while efficiency improved. |
| Jan 29 | Fourth-quarter earnings | Positive | +3.3% | Net income, margin, loans and deposits increased year over year. |
| Oct 23 | Third-quarter earnings | Positive | +4.2% | Net income and margin increased while deposits and efficiency improved. |
| Jul 24 | Second-quarter earnings | Positive | -1.8% | Net income, loans and deposits increased while credit quality remained stable. |
| Apr 24 | First-quarter earnings | Positive | +1.2% | Margin and efficiency improved while loans, deposits and non-performing assets declined. |
24h Move is the share-price change in the day after each event; other market factors may also have contributed.
Tag-specific earnings reactions were positive in four of five comparable events, with one negative reaction.
Key Terms
non-gaap measure financial
net interest margin financial
non-accrual loans financial
efficiency ratio financial
AI-generated analysis. How Rhea-AI works. Not financial advice.
NEW YORK, July 23, 2026 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ: VLY), the holding company for Valley National Bank, today reported net income for the second quarter 2026 of
Ira Robbins, CEO, commented, "This quarter's strong results reflect the continued execution of our strategic vision. Despite continued competition across our geographies and business lines, our relationship-led value proposition has resulted in strong non-interest bearing deposit and C&I loan growth."
Mr. Robbins continued, "At the same time, we remain focused on operational efficiency and the re-allocation of resources from manual processing to franchise-enhancing customer acquisition areas. We anticipate further financial improvement through the remainder of the year and we look forward to continuing to create long-term value for our shareholders."
Key financial highlights for the second quarter 2026:
- Net Interest Margin and Income: Our net interest margin on a tax equivalent basis of 3.20 percent for the second quarter 2026 increased 3 basis points and 19 basis points from the first quarter 2026 and second quarter 2025, respectively. Net interest income on a tax equivalent basis of
$488.4 million for the second quarter 2026 increased$15.6 million and$54.7 million compared to the first quarter 2026 and second quarter 2025, respectively. The increase in net interest income from the first quarter 2026 was mainly driven by an increase in average loans, higher yields on new loan originations and investment securities purchased, as well as one additional day during the second quarter 2026. These tailwinds were partially offset by the cost of carrying excess subordinated notes between the time of our successful issuance of$500 million of new notes in May 2026 and the redemption of$300 million of callable notes in June 2026. See additional details in the "Net Interest Income and Margin" and "Other Borrowings" sections below. - Deposits: Total deposit balances increased
$1.3 billion to$54.1 billion at June 30, 2026 as compared to$52.9 billion at March 31, 2026. Direct customer deposits increased$1.1 billion during the second quarter 2026 mainly due to inflows from retail CD offerings and growth in our commercial customer deposits. Non-interest bearing deposits increased$298.6 million reflecting continued expansion of relationships with commercial banking customers during the second quarter 2026. See the "Deposits" section below for more details. - Loan Portfolio: Total loans increased
$1.6 billion , or 12.9 percent on an annualized basis, to$52.5 billion at June 30, 2026 from March 31, 2026 mostly due to increases of$857.2 million and$638.9 million in commercial and industrial (C&I) loans and total commercial real estate (CRE) loans, respectively. Loan originations from a range of relationship-driven small to midsize clients continued to drive the growth in C&I loans during the second quarter 2026, while new owner occupied and select multifamily loan originations were the primary contributors to the growth in the CRE loan portfolio at June 30, 2026. Our CRE loan concentration ratio (defined as total CRE loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) continued to decline to approximately 317 percent at June 30, 2026 from 329 percent at March 31, 2026 largely due to organic capital accretion and a$200 million increase in (Tier 2) total risk-based capital during the quarter. See the "Loans" section below for more details. - Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled
$606.9 million and$599.8 million at June 30, 2026 and March 31, 2026, respectively, representing 1.16 percent and 1.18 percent of total loans at each respective date. During the second quarter 2026, we recorded a provision for credit losses for loans of$29.2 million as compared to$21.2 million and$37.8 million for the first quarter 2026 and second quarter 2025, respectively. See the "Credit Quality" section below for more details. - Credit Quality: Net loan charge-offs totaled
$22.0 million for the second quarter 2026 as compared to$17.5 million and$37.8 million for the first quarter 2026 and second quarter 2025, respectively. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased$52.3 million to$180.2 million , or 0.34 percent of total loans, at June 30, 2026 as compared to$127.9 million , or 0.25 percent of total loans, at March 31, 2026. The increase was mainly due to a few larger CRE loans within the 30 to 59 days past due delinquency category. Non-accrual loans totaled$462.6 million , or 0.88 percent of total loans, at June 30, 2026 as compared to$432.6 million , or 0.85 percent of total loans, at March 31, 2026. See the "Credit Quality" section below for more details. - Non-Interest Income: Non-interest income increased
$4.9 million to$73.7 million for the second quarter 2026 as compared to the first quarter 2026 mainly driven by$2.6 million and$1.6 million increases in capital markets, and wealth management and trust fees, respectively. The fee increases were largely due to increased transaction volumes within loan participations and syndications and tax credit advisory services during the second quarter 2026. - Non-Interest Expense: Non-interest expense increased
$1.2 million to$311.1 million for the second quarter 2026 as compared to the first quarter 2026. The increase was largely driven by a$4.4 million increase in professional and legal fees mostly due to higher third-party managed services and consulting fees related to our operational transformation efforts, as well as incremental increases in technology and FDIC assessment expenses. These items were partially offset by a$5.3 million decrease in salary and employee benefits expense during the second quarter 2026 largely resulting from our continued focus on resource optimization, as well as the normal seasonal decline in payroll taxes from the first quarter 2026. - Efficiency Ratio: Our efficiency ratio was 52.11 percent for the second quarter 2026 as compared to 53.10 percent and 55.20 percent for the first quarter 2026 and second quarter 2025, 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 common shareholders' equity (ROTCE) were 1.04 percent, 8.65 percent and 11.91 percent for the second quarter 2026, respectively. Annualized ROA, ROE, and ROTCE, adjusted for non-core income and charges, were 1.05 percent, 8.75 percent and 12.05 percent for the second quarter 2026, 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 3.20 percent for the second quarter 2026 increased 3 basis points from 3.17 percent for the first quarter 2026 and 19 basis points from 3.01 percent for the second quarter 2025. The yield on average interest earning assets increased by 5 basis points to 5.44 percent on a linked quarter basis largely due to higher yields on new loan originations and investment securities purchased during the second quarter 2026. The overall cost of average interest bearing liabilities increased by 4 basis points to 3.10 percent for the second quarter 2026 as compared to the first quarter 2026 largely due to the higher cost of non-maturity deposits and short-term borrowings, as well as the cost of carrying excess subordinated debt for a portion of the quarter. Our cost of total average deposits was 2.28 percent for the second quarter 2026 as compared to 2.27 percent and 2.67 percent for the first quarter 2026 and second quarter 2025, respectively.
Loans, Deposits and Other Borrowings
Loans. Total loans increased
Deposits. Actual ending balances for deposits increased
Other Borrowings. Short-term borrowings increased
Credit Quality
Non-Performing Assets (NPAs). 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, 2026, March 31, 2026, and June 30, 2025:
| June 30, 2026 | March 31, 2026 | June 30, 2025 | ||||||||||||||||
| 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 | $ | 198,910 | 1.66 | % | $ | 186,143 | 1.68 | % | $ | 173,415 | 1.60 | % | ||||||
| Commercial real estate loans: | ||||||||||||||||||
| Commercial real estate | 268,445 | 0.96 | 269,847 | 0.99 | 270,937 | 1.04 | ||||||||||||
| Construction | 50,623 | 2.05 | 54,946 | 2.21 | 64,042 | 2.24 | ||||||||||||
| Total commercial real estate loans | 319,068 | 1.05 | 324,793 | 1.09 | 334,979 | 1.16 | ||||||||||||
| Residential mortgage loans | 48,905 | 0.82 | 51,700 | 0.88 | 48,830 | 0.86 | ||||||||||||
| Consumer loans: | ||||||||||||||||||
| Home equity | 4,333 | 0.59 | 4,120 | 0.59 | 3,689 | 0.58 | ||||||||||||
| Auto and other consumer | 19,384 | 0.56 | 17,744 | 0.52 | 18,587 | 0.55 | ||||||||||||
| Total consumer loans | 23,717 | 0.57 | 21,864 | 0.53 | 22,276 | 0.56 | ||||||||||||
| Allowance for loan losses | 590,600 | 1.13 | 584,500 | 1.15 | 579,500 | 1.17 | ||||||||||||
| Allowance for unfunded credit commitments | 16,320 | 15,300 | 14,520 | |||||||||||||||
| Total allowance for credit losses for loans | $ | 606,920 | $ | 599,800 | $ | 594,020 | ||||||||||||
| Allowance for credit losses for loans as a % of total loans | 1.16 | % | 1.18 | % | 1.20 | % | ||||||||||||
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 1.16 percent at June 30, 2026, 1.18 percent at March 31, 2026, and 1.20 percent at June 30, 2025. For the second quarter 2026, 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 13.77 percent, 11.37 percent, 10.71 percent and 9.49 percent, respectively, at June 30, 2026 as compared to 13.66 percent, 11.60 percent, 10.91 percent and 9.56 percent, respectively, at March 31, 2026. During the second quarter 2026, we repurchased 1.5 million shares of our common stock at an average price of
Investor Conference Call
Valley’s CEO, Ira Robbins, will host a conference call on Thursday, July 23, 2026 at 8:30 AM (ET) to discuss Valley’s second quarter 2026 earnings and related matters. Interested parties should pre-register using this link: https://register-conf.media-server.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 24, 2026. 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 (NASDAQ: VLY), Valley National Bank is a regional financial institution with over
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 forward-looking terminology such as “intend,” “should,” “expect,” “believe,” “position,” “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 in these 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/import fees and other trade policies and practices, any retaliatory actions, changes in energy commodity prices, 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, any shutdown of the U.S federal government, geopolitical instabilities or events, including ongoing conflicts in the Middle East, natural and other disasters, including severe weather events and other climate-related risks, 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 any actual or perceived concerns regarding the soundness, or creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including FDIC 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, enforcement priorities, or composition of the federal bank regulatory agencies;
- the loss of or decrease in lower-cost funding sources within our deposit base;
- investigations, 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 any 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 and competitive pressure on pricing of our products and services;
- our ability to stay current with rapid technological changes and evolving legal and regulatory requirements in the financial services industry, including developments relating to the use of artificial intelligence, blockchain, and related regulatory developments, as well as our ability to effectively assess and monitor the effects of, and risks associated with, the implementation and use of such technology;
- cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our or our third-party service providers’ 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 and use of targeted tactics against the financial services industry;
- any disruption of our systems and network, or those of our third-party service providers, resulting from events that are wholly or partially beyond our control, including, for example, electrical, telecommunications, or other major service outages, or actions by employees, which may give rise to financial loss or liability;
- 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 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 and other climate-related risks, 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, 2025.
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) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| FINANCIAL DATA: | |||||||||||||||||||
| Net interest income - FTE(1) | $ | 488,388 | $ | 472,801 | $ | 433,675 | $ | 961,189 | $ | 855,052 | |||||||||
| Net interest income | 487,024 | 471,525 | 432,408 | 958,549 | 852,513 | ||||||||||||||
| Non-interest income | 73,711 | 68,836 | 62,604 | 142,547 | 120,898 | ||||||||||||||
| Total revenue | 560,735 | 540,361 | 495,012 | 1,101,096 | 973,411 | ||||||||||||||
| Non-interest expense | 311,123 | 309,926 | 284,122 | 621,049 | 560,740 | ||||||||||||||
| Pre-provision net revenue | 249,612 | 230,435 | 210,890 | 480,047 | 412,671 | ||||||||||||||
| Provision for credit losses | 29,164 | 21,256 | 37,799 | 50,420 | 100,460 | ||||||||||||||
| Income tax expense | 49,563 | 45,266 | 39,924 | 94,829 | 72,986 | ||||||||||||||
| Net income | 170,885 | 163,913 | 133,167 | 334,798 | 239,225 | ||||||||||||||
| Dividends on preferred stock | 7,316 | 7,217 | 6,948 | 14,533 | 13,903 | ||||||||||||||
| Net income available to common shareholders | $ | 163,569 | $ | 156,696 | $ | 126,219 | $ | 320,265 | $ | 225,322 | |||||||||
| Weighted average number of common shares outstanding: | |||||||||||||||||||
| Basic | 553,740,562 | 555,777,748 | 560,336,610 | 554,753,527 | 559,976,939 | ||||||||||||||
| Diluted | 556,958,049 | 559,254,972 | 562,312,330 | 557,968,183 | 563,431,390 | ||||||||||||||
| Per common share data: | |||||||||||||||||||
| Basic earnings | $ | 0.30 | $ | 0.28 | $ | 0.23 | $ | 0.58 | $ | 0.40 | |||||||||
| Diluted earnings | 0.29 | 0.28 | 0.22 | 0.57 | 0.40 | ||||||||||||||
| Cash dividends declared | 0.11 | 0.11 | 0.11 | 0.22 | 0.22 | ||||||||||||||
| Closing stock price - high | 14.78 | 13.71 | 9.20 | 14.78 | 10.42 | ||||||||||||||
| Closing stock price - low | 12.42 | 11.66 | 7.87 | 11.66 | 7.87 | ||||||||||||||
| FINANCIAL RATIOS: | |||||||||||||||||||
| Net interest margin | 3.19 | % | 3.16 | % | 3.01 | % | 3.17 | % | 2.98 | % | |||||||||
| Net interest margin - FTE(1) | 3.20 | 3.17 | 3.01 | 3.18 | 2.99 | ||||||||||||||
| Annualized return on average assets | 1.04 | 1.02 | 0.86 | 1.03 | 0.77 | ||||||||||||||
| Annualized return on average shareholders' equity | 8.65 | 8.35 | 7.08 | 8.50 | 6.39 | ||||||||||||||
| NON-GAAP FINANCIAL DATA AND RATIOS:(2) | |||||||||||||||||||
| Basic earnings per share, as adjusted | $ | 0.30 | $ | 0.29 | $ | 0.23 | $ | 0.59 | $ | 0.40 | |||||||||
| Diluted earnings per share, as adjusted | 0.30 | 0.29 | 0.23 | 0.59 | 0.40 | ||||||||||||||
| Annualized return on average assets, as adjusted | 1.05 | % | 1.05 | % | 0.87 | % | 1.05 | % | 0.78 | % | |||||||||
| Annualized return on average shareholders' equity, as adjusted | 8.75 | 8.60 | 7.15 | 8.67 | 6.42 | ||||||||||||||
| Annualized return on average tangible common shareholders' equity | 11.91 | 11.56 | 10.02 | 11.74 | 9.07 | ||||||||||||||
| Annualized return on average tangible common shareholders' equity, as adjusted | 12.05 | 11.92 | 10.12 | 11.98 | 9.12 | ||||||||||||||
| Efficiency ratio | 52.11 | 53.10 | 55.20 | 52.60 | 55.53 | ||||||||||||||
| AVERAGE BALANCE SHEET ITEMS: | |||||||||||||||||||
| Assets | $ | 65,584,823 | $ | 64,190,084 | $ | 62,106,945 | $ | 64,891,306 | $ | 61,806,614 | |||||||||
| Interest earning assets | 61,057,362 | 59,718,887 | 57,553,624 | 60,391,821 | 57,224,486 | ||||||||||||||
| Loans | 51,884,173 | 50,265,383 | 49,032,637 | 51,079,250 | 48,844,823 | ||||||||||||||
| Interest bearing liabilities | 44,160,202 | 43,352,140 | 41,913,735 | 43,758,403 | 41,574,732 | ||||||||||||||
| Deposits | 53,174,301 | 52,373,174 | 49,907,124 | 52,775,949 | 49,525,957 | ||||||||||||||
| Shareholders' equity | 7,901,688 | 7,855,550 | 7,524,231 | 7,878,746 | 7,491,395 | ||||||||||||||
| As of | |||||||||||||||||||
| BALANCE SHEET ITEMS: | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
| (In thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||
| Assets | $ | 66,318,308 | $ | 64,466,585 | $ | 64,132,725 | $ | 63,018,614 | $ | 62,705,358 | |||||||||
| Total loans | 52,467,251 | 50,828,820 | 50,136,728 | 49,272,823 | 49,391,420 | ||||||||||||||
| Deposits | 54,118,607 | 52,859,621 | 52,183,093 | 51,175,758 | 50,725,284 | ||||||||||||||
| Shareholders' equity | 7,917,144 | 7,828,443 | 7,807,698 | 7,695,374 | 7,575,421 | ||||||||||||||
| LOANS: | |||||||||||||||||||
| (In thousands) | |||||||||||||||||||
| Commercial and industrial | $ | 11,961,242 | $ | 11,104,079 | $ | 10,961,519 | $ | 10,757,857 | $ | 10,870,036 | |||||||||
| Commercial real estate: | |||||||||||||||||||
| Non-owner occupied | 11,146,663 | 11,503,874 | 11,571,127 | 11,674,103 | 11,747,491 | ||||||||||||||
| Multifamily | 9,034,186 | 8,588,462 | 8,571,713 | 8,394,694 | 8,434,173 | ||||||||||||||
| Owner occupied | 7,692,877 | 7,132,254 | 6,629,909 | 6,097,319 | 5,789,397 | ||||||||||||||
| Construction | 2,475,109 | 2,485,387 | 2,471,233 | 2,517,258 | 2,854,859 | ||||||||||||||
| Total commercial real estate | 30,348,835 | 29,709,977 | 29,243,982 | 28,683,374 | 28,825,920 | ||||||||||||||
| Residential mortgage | 5,982,941 | 5,869,070 | 5,826,192 | 5,795,395 | 5,709,971 | ||||||||||||||
| Consumer: | |||||||||||||||||||
| Home equity | 728,623 | 701,136 | 687,680 | 655,872 | 634,553 | ||||||||||||||
| Automobile | 2,150,089 | 2,198,102 | 2,184,600 | 2,191,976 | 2,178,841 | ||||||||||||||
| Other consumer | 1,295,521 | 1,246,456 | 1,232,755 | 1,188,349 | 1,172,099 | ||||||||||||||
| Total consumer loans | 4,174,233 | 4,145,694 | 4,105,035 | 4,036,197 | 3,985,493 | ||||||||||||||
| Total loans | $ | 52,467,251 | $ | 50,828,820 | $ | 50,136,728 | $ | 49,272,823 | $ | 49,391,420 | |||||||||
| CAPITAL RATIOS: | |||||||||||||||||||
| Book value per common share | $ | 13.67 | $ | 13.48 | $ | 13.39 | $ | 13.09 | $ | 12.89 | |||||||||
| Tangible book value per common share(2) | 10.13 | 9.94 | 9.85 | 9.57 | 9.35 | ||||||||||||||
| Tangible common equity to tangible assets(2) | 8.71 | % | 8.82 | % | 8.82 | % | 8.79 | % | 8.63 | % | |||||||||
| Tier 1 leverage capital | 9.49 | 9.56 | 9.63 | 9.52 | 9.49 | ||||||||||||||
| Common equity tier 1 capital | 10.71 | 10.91 | 10.99 | 11.00 | 10.85 | ||||||||||||||
| Tier 1 risk-based capital | 11.37 | 11.60 | 11.69 | 11.72 | 11.57 | ||||||||||||||
| Total risk-based capital | 13.77 | 13.66 | 13.77 | 13.83 | 13.67 | ||||||||||||||
| Three Months Ended | Six Months Ended | ||||||||||||||||||
| ALLOWANCE FOR CREDIT LOSSES: | June 30, | March 31, | June 30, | June 30, | |||||||||||||||
| ($ in thousands) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Allowance for credit losses for loans | |||||||||||||||||||
| Beginning balance - Allowance for credit losses for loans | $ | 599,800 | $ | 596,100 | $ | 594,054 | $ | 596,100 | $ | 573,328 | |||||||||
| Loans charged-off: | |||||||||||||||||||
| Commercial and industrial | (9,838 | ) | (2,782 | ) | (25,189 | ) | (12,620 | ) | (53,645 | ) | |||||||||
| Commercial real estate | (14,434 | ) | (13,756 | ) | (14,623 | ) | (28,190 | ) | (26,883 | ) | |||||||||
| Construction | — | — | — | — | (1,163 | ) | |||||||||||||
| Residential mortgage | — | — | (46 | ) | — | (46 | ) | ||||||||||||
| Total consumer | (3,354 | ) | (3,263 | ) | (2,213 | ) | (6,617 | ) | (4,353 | ) | |||||||||
| Total loans charged-off | (27,626 | ) | (19,801 | ) | (42,071 | ) | (47,427 | ) | (86,090 | ) | |||||||||
| Charged-off loans recovered: | |||||||||||||||||||
| Commercial and industrial | 1,669 | 1,398 | 2,789 | 3,067 | 3,599 | ||||||||||||||
| Commercial real estate | 2,790 | 347 | 188 | 3,137 | 437 | ||||||||||||||
| Construction | — | — | 455 | — | 455 | ||||||||||||||
| Residential mortgage | 41 | 83 | 37 | 124 | 205 | ||||||||||||||
| Total consumer | 1,080 | 429 | 773 | 1,509 | 1,616 | ||||||||||||||
| Total loans recovered | 5,580 | 2,257 | 4,242 | 7,837 | 6,312 | ||||||||||||||
| Total net charge-offs | (22,046 | ) | (17,544 | ) | (37,829 | ) | (39,590 | ) | (79,778 | ) | |||||||||
| Provision for credit losses for loans | 29,166 | 21,244 | 37,795 | 50,410 | 100,470 | ||||||||||||||
| Ending balance | $ | 606,920 | $ | 599,800 | $ | 594,020 | $ | 606,920 | $ | 594,020 | |||||||||
| Components of allowance for credit losses for loans: | |||||||||||||||||||
| Allowance for loan losses | $ | 590,600 | $ | 584,500 | $ | 579,500 | $ | 590,600 | $ | 579,500 | |||||||||
| Allowance for unfunded credit commitments | 16,320 | 15,300 | 14,520 | 16,320 | 14,520 | ||||||||||||||
| Allowance for credit losses for loans | $ | 606,920 | $ | 599,800 | $ | 594,020 | $ | 606,920 | $ | 594,020 | |||||||||
| Components of provision for credit losses for loans: | |||||||||||||||||||
| Provision for credit losses for loans | $ | 28,146 | $ | 18,644 | $ | 39,129 | $ | 46,790 | $ | 100,428 | |||||||||
| Provision (credit) for unfunded credit commitments | 1,020 | 2,600 | (1,334 | ) | 3,620 | 42 | |||||||||||||
| Total provision for credit losses for loans | $ | 29,166 | $ | 21,244 | $ | 37,795 | $ | 50,410 | $ | 100,470 | |||||||||
| Annualized ratio of total net charge-offs to total average loans | 0.17 | % | 0.14 | % | 0.31 | % | 0.16 | % | 0.33 | % | |||||||||
| Allowance for credit losses for loans as a % of total loans | 1.16 | % | 1.18 | % | 1.20 | % | 1.16 | % | 1.20 | % | |||||||||
| As of | |||||||||||||||||||
| ASSET QUALITY: | June 30, | March 31, | December 31, | September 30, | June 30, | ||||||||||||||
| ($ in thousands) | 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||
| Accruing past due loans: | |||||||||||||||||||
| 30 to 59 days past due: | |||||||||||||||||||
| Commercial and industrial | $ | 5,083 | $ | 5,285 | $ | 11,177 | $ | 912 | $ | 10,451 | |||||||||
| Commercial real estate | 106,034 | 69,494 | 72,810 | 26,371 | 42,884 | ||||||||||||||
| Construction | 1,752 | — | — | — | 35,000 | ||||||||||||||
| Residential mortgage | 22,154 | 20,534 | 21,615 | 23,556 | 21,744 | ||||||||||||||
| Total consumer | 15,974 | 13,112 | 14,420 | 12,728 | 12,878 | ||||||||||||||
| Total 30 to 59 days past due | 150,997 | 108,425 | 120,022 | 63,567 | 122,957 | ||||||||||||||
| 60 to 89 days past due: | |||||||||||||||||||
| Commercial and industrial | 2,748 | 1,015 | 1,274 | 1,061 | 1,095 | ||||||||||||||
| Commercial real estate | — | — | — | 6,033 | 60,601 | ||||||||||||||
| Residential mortgage | 6,495 | 4,285 | 10,181 | 5,040 | 7,627 | ||||||||||||||
| Total consumer | 3,904 | 3,506 | 5,269 | 4,023 | 4,001 | ||||||||||||||
| Total 60 to 89 days past due | 13,147 | 8,806 | 16,724 | 16,157 | 73,324 | ||||||||||||||
| 90 or more days past due: | |||||||||||||||||||
| Commercial and industrial | 3,527 | 3,499 | — | — | — | ||||||||||||||
| Commercial real estate | 5,454 | — | 212 | — | — | ||||||||||||||
| Residential mortgage | 5,223 | 5,894 | 3,300 | 3,911 | 2,062 | ||||||||||||||
| Total consumer | 1,862 | 1,309 | 1,070 | 1,125 | 859 | ||||||||||||||
| Total 90 or more days past due | 16,066 | 10,702 | 4,582 | 5,036 | 2,921 | ||||||||||||||
| Total accruing past due loans | $ | 180,210 | $ | 127,933 | $ | 141,328 | $ | 84,760 | $ | 199,202 | |||||||||
| Non-accrual loans: | |||||||||||||||||||
| Commercial and industrial | $ | 147,731 | $ | 145,804 | $ | 138,321 | $ | 92,214 | $ | 90,973 | |||||||||
| Commercial real estate | 256,081 | 225,417 | 236,221 | 235,754 | 193,604 | ||||||||||||||
| Construction | 9,139 | 9,148 | 9,140 | 48,248 | 24,068 | ||||||||||||||
| Residential mortgage | 42,992 | 45,988 | 44,424 | 38,949 | 41,099 | ||||||||||||||
| Total consumer | 6,686 | 6,289 | 5,832 | 6,324 | 4,615 | ||||||||||||||
| Total non-accrual loans | 462,629 | 432,646 | 433,938 | 421,489 | 354,359 | ||||||||||||||
| Other real estate owned (OREO) | 4,126 | 5,161 | 4,531 | 4,783 | 4,783 | ||||||||||||||
| Other repossessed assets | 1,020 | 1,758 | 1,286 | 1,065 | 1,642 | ||||||||||||||
| Total non-performing assets | $ | 467,775 | $ | 439,565 | $ | 439,755 | $ | 427,337 | $ | 360,784 | |||||||||
| Total non-accrual loans as a % of loans | 0.88 | % | 0.85 | % | 0.87 | % | 0.86 | % | 0.72 | % | |||||||||
| Total accruing past due and non-accrual loans as a % of loans | 1.23 | % | 1.10 | % | 1.15 | % | 1.03 | % | 1.12 | % | |||||||||
| Allowance for losses on loans as a % of non-accrual loans | 127.66 | % | 135.10 | % | 134.44 | % | 138.79 | % | 163.53 | % | |||||||||
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) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Adjusted net income available to common shareholders (non-GAAP): | |||||||||||||||||||
| Net income, as reported (GAAP) | $ | 170,885 | $ | 163,913 | $ | 133,167 | $ | 334,798 | $ | 239,225 | |||||||||
| Add: Restructuring charge(a) | 2,513 | 5,689 | 800 | 8,202 | 800 | ||||||||||||||
| Add: Litigation reserve(b) | 230 | 1,262 | — | 1,492 | — | ||||||||||||||
| Add: Losses on available for sale and held to maturity debt securities, net(c) | — | 10 | — | 10 | 11 | ||||||||||||||
| Add: Loss on extinguishment of debt | — | — | 922 | — | 922 | ||||||||||||||
| Total non-GAAP adjustments to net income | 2,743 | 6,961 | 1,722 | 9,704 | 1,733 | ||||||||||||||
| Income tax adjustments related to non-GAAP adjustments(d) | (782 | ) | (1,984 | ) | (474 | ) | (2,766 | ) | (477 | ) | |||||||||
| Net income, as adjusted (non-GAAP) | $ | 172,846 | $ | 168,890 | $ | 134,415 | $ | 341,736 | $ | 240,481 | |||||||||
| Dividends on preferred stock | 7,316 | 7,217 | 6,948 | 14,533 | 13,903 | ||||||||||||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $ | 165,530 | $ | 161,673 | $ | 127,467 | $ | 327,203 | $ | 226,578 | |||||||||
| __________ | |||||||||||||||||||
| (a) Represents severance expense related to workforce reductions within salary and employee benefits expense. | |||||||||||||||||||
| (b) Represents the change in legal reserves and settlement charges included in professional and legal fees. | |||||||||||||||||||
| (c) Included in gains (losses) on securities transactions, net. | |||||||||||||||||||
| (d) 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) | $ | 165,530 | $ | 161,673 | $ | 127,467 | $ | 327,203 | $ | 226,578 | |||||||||
| Weighted average number of shares outstanding | 553,740,562 | 555,777,748 | 560,336,610 | 554,753,527 | 559,976,939 | ||||||||||||||
| Basic earnings, as adjusted (non-GAAP) | $ | 0.30 | $ | 0.29 | $ | 0.23 | $ | 0.59 | $ | 0.40 | |||||||||
| Weighted average number of diluted shares outstanding | 556,958,049 | 559,254,972 | 562,312,330 | 557,968,183 | 563,431,390 | ||||||||||||||
| Diluted earnings, as adjusted (non-GAAP) | $ | 0.30 | $ | 0.29 | $ | 0.23 | $ | 0.59 | $ | 0.40 | |||||||||
| Adjusted annualized return on average tangible common shareholder's equity (non-GAAP): | |||||||||||||||||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $ | 165,530 | $ | 161,673 | $ | 127,467 | $ | 327,203 | $ | 226,578 | |||||||||
| Add: Amortization of other intangible assets (net of tax), other than loan servicing rights | 4,247 | 4,746 | 5,120 | 8,993 | 10,739 | ||||||||||||||
| Net income available to common shareholders excluding intangible amortization, as adjusted (non-GAAP) | 169,777 | 166,419 | 132,587 | 336,196 | 237,317 | ||||||||||||||
| Average shareholders' equity | 7,901,688 | 7,855,550 | 7,524,231 | 7,878,746 | 7,491,395 | ||||||||||||||
| Less: Average preferred shareholders equity | 354,345 | 354,345 | 354,345 | 354,345 | 354,345 | ||||||||||||||
| Less: Average goodwill (net of deferred tax liability) | 1,858,851 | 1,858,851 | 1,859,614 | 1,858,851 | 1,859,614 | ||||||||||||||
| Less: Average intangible assets (net of deferred tax liability), other than loan servicing rights | 51,387 | 57,080 | 69,367 | 54,218 | 72,748 | ||||||||||||||
| Average tangible common shareholders' equity | $ | 5,637,105 | $ | 5,585,274 | $ | 5,240,905 | $ | 5,611,332 | $ | 5,204,688 | |||||||||
| Annualized return on average tangible common shareholders' equity, as adjusted (non-GAAP) | 12.05 | % | 11.92 | % | 10.12 | % | 11.98 | % | 9.12 | % | |||||||||
| 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) | 2026 | 2026 | 2025 | 2026 | 2025 | ||||||||||||||
| Adjusted annualized return on average assets (non-GAAP): | |||||||||||||||||||
| Net income, as adjusted (non-GAAP) | $ | 172,846 | $ | 168,890 | $ | 134,415 | $ | 341,736 | $ | 240,481 | |||||||||
| Average assets | $ | 65,584,823 | $ | 64,190,084 | $ | 62,106,945 | $ | 64,891,306 | $ | 61,806,614 | |||||||||
| Annualized return on average assets, as adjusted (non-GAAP) | 1.05 | % | 1.05 | % | 0.87 | % | 1.05 | % | 0.78 | % | |||||||||
| Adjusted annualized return on average shareholders' equity (non-GAAP): | |||||||||||||||||||
| Net income, as adjusted (non-GAAP) | $ | 172,846 | $ | 168,890 | $ | 134,415 | $ | 341,736 | $ | 240,481 | |||||||||
| Average shareholders' equity | $ | 7,901,688 | $ | 7,855,550 | $ | 7,524,231 | $ | 7,878,746 | $ | 7,491,395 | |||||||||
| Annualized return on average shareholders' equity, as adjusted (non-GAAP) | 8.75 | % | 8.60 | % | 7.15 | % | 8.67 | % | 6.42 | % | |||||||||
| Annualized return on average tangible common shareholders' equity (non-GAAP): | |||||||||||||||||||
| Net income available to common shareholders | $ | 163,569 | $ | 156,696 | $ | 126,219 | $ | 320,265 | $ | 225,322 | |||||||||
| Add: Amortization of other intangible assets (net of tax), other than loan servicing rights | 4,247 | 4,746 | 5,120 | 8,993 | 10,739 | ||||||||||||||
| Net income available to common shareholders excluding intangible amortization (non-GAAP) | 167,816 | 161,442 | 131,339 | 329,258 | 236,061 | ||||||||||||||
| Average tangible common shareholders' equity (non-GAAP) | $ | 5,637,105 | $ | 5,585,274 | $ | 5,240,905 | $ | 5,611,332 | $ | 5,204,688 | |||||||||
| Annualized return on average tangible common shareholders' equity (non-GAAP) | 11.91 | % | 11.56 | % | 10.02 | % | 11.74 | % | 9.07 | % | |||||||||
| Efficiency ratio (non-GAAP): | |||||||||||||||||||
| Non-interest expense, as reported (GAAP) | $ | 311,123 | $ | 309,926 | $ | 284,122 | $ | 621,049 | $ | 560,740 | |||||||||
| Less: Restructuring charge (pre-tax) | 2,513 | 5,689 | 800 | 8,202 | 800 | ||||||||||||||
| Less: Amortization of tax credit investments (pre-tax) | 16,157 | 16,014 | 9,134 | 32,171 | 18,454 | ||||||||||||||
| Less: Litigation reserve (pre-tax) | 230 | 1,262 | — | 1,492 | — | ||||||||||||||
| Less: Loss on extinguishment of debt (pre-tax) | — | — | 922 | — | 922 | ||||||||||||||
| Non-interest expense, as adjusted (non-GAAP) | $ | 292,223 | $ | 286,961 | $ | 273,266 | $ | 579,184 | $ | 540,564 | |||||||||
| Net interest income, as reported (GAAP) | 487,024 | 471,525 | 432,408 | 958,549 | 852,513 | ||||||||||||||
| Non-interest income, as reported (GAAP) | 73,711 | 68,836 | 62,604 | 142,547 | 120,898 | ||||||||||||||
| Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) | — | 10 | — | 10 | 11 | ||||||||||||||
| Gross operating income, as adjusted (non-GAAP) | $ | 560,735 | $ | 540,371 | $ | 495,012 | $ | 1,101,106 | $ | 973,422 | |||||||||
| Efficiency ratio (non-GAAP) | 52.11 | % | 53.10 | % | 55.20 | % | 52.60 | % | 55.53 | % | |||||||||
| As of | |||||||||||||||||||
| June 30, | March 31, | December 31, | September 30, | June 30, | |||||||||||||||
| ($ in thousands, except for share data) | 2026 | 2026 | 2025 | 2025 | 2025 | ||||||||||||||
| Tangible book value per common share (non-GAAP): | |||||||||||||||||||
| Common shares outstanding | 553,069,100 | 554,316,876 | 556,618,021 | 560,784,352 | 560,281,821 | ||||||||||||||
| Shareholders' equity (GAAP) | $ | 7,917,144 | $ | 7,828,443 | $ | 7,807,698 | $ | 7,695,374 | $ | 7,575,421 | |||||||||
| Less: Preferred stock | 354,345 | 354,345 | 354,345 | 354,345 | 354,345 | ||||||||||||||
| Less: Goodwill and other intangible assets | 1,958,135 | 1,963,706 | 1,969,811 | 1,976,594 | 1,983,515 | ||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 5,604,664 | $ | 5,510,392 | $ | 5,483,542 | $ | 5,364,435 | $ | 5,237,561 | |||||||||
| Tangible book value per common share (non-GAAP) | $ | 10.13 | $ | 9.94 | $ | 9.85 | $ | 9.57 | $ | 9.35 | |||||||||
| Tangible common equity to tangible assets (non-GAAP): | |||||||||||||||||||
| Tangible common shareholders' equity (non-GAAP) | $ | 5,604,664 | $ | 5,510,392 | $ | 5,483,542 | $ | 5,364,435 | $ | 5,237,561 | |||||||||
| Total assets (GAAP) | 66,318,308 | 64,466,585 | 64,132,725 | 63,018,614 | 62,705,358 | ||||||||||||||
| Less: Goodwill and other intangible assets | 1,958,135 | 1,963,706 | 1,969,811 | 1,976,594 | 1,983,515 | ||||||||||||||
| Tangible assets (non-GAAP) | $ | 64,360,173 | $ | 62,502,879 | $ | 62,162,914 | $ | 61,042,020 | $ | 60,721,843 | |||||||||
| Tangible common equity to tangible assets (non-GAAP) | 8.71 | % | 8.82 | % | 8.82 | % | 8.79 | % | 8.63 | % | |||||||||
| VALLEY NATIONAL BANCORP CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION (in thousands, except for share data) | |||||||
| June 30, | December 31, | ||||||
| 2026 | 2025 | ||||||
| (Unaudited) | |||||||
| Assets | |||||||
| Cash and due from banks | $ | 388,741 | $ | 315,166 | |||
| Interest bearing deposits with banks | 578,148 | 1,268,399 | |||||
| Investment securities: | |||||||
| Equity securities | 88,541 | 82,774 | |||||
| Trading debt securities | 26,493 | — | |||||
| Available for sale debt securities | 4,292,148 | 4,202,218 | |||||
| Held to maturity debt securities (net of allowance for credit losses of | 3,757,200 | 3,495,837 | |||||
| Total investment securities | 8,164,382 | 7,780,829 | |||||
| Loans held for sale (includes fair value of | 13,690 | 26,236 | |||||
| Loans | 52,467,251 | 50,136,728 | |||||
| Less: Allowance for loan losses | (590,600 | ) | (583,400 | ) | |||
| Net loans | 51,876,651 | 49,553,328 | |||||
| Premises and equipment, net | 316,364 | 330,757 | |||||
| Lease right of use assets | 298,807 | 313,891 | |||||
| Bank owned life insurance | 742,230 | 738,090 | |||||
| Accrued interest receivable | 250,703 | 243,897 | |||||
| Goodwill | 1,868,936 | 1,868,936 | |||||
| Other intangible assets, net | 89,199 | 100,875 | |||||
| Other assets | 1,730,457 | 1,592,321 | |||||
| Total Assets | $ | 66,318,308 | $ | 64,132,725 | |||
| Liabilities | |||||||
| Deposits: | |||||||
| Non-interest bearing | $ | 12,549,527 | $ | 12,155,500 | |||
| Interest bearing: | |||||||
| Savings, NOW and money market | 28,666,443 | 28,603,470 | |||||
| Time | 12,902,637 | 11,424,123 | |||||
| Total deposits | 54,118,607 | 52,183,093 | |||||
| Short-term borrowings | 433,484 | 91,475 | |||||
| Long-term borrowings | 2,607,222 | 2,908,579 | |||||
| Junior subordinated debentures issued to capital trusts | 57,977 | 57,803 | |||||
| Lease liabilities | 355,482 | 372,448 | |||||
| Accrued expenses and other liabilities | 828,392 | 711,629 | |||||
| Total Liabilities | 58,401,164 | 56,325,027 | |||||
| Shareholders’ Equity | |||||||
| Preferred stock, no par value; 50,000,000 authorized shares: | |||||||
| Series A (4,600,000 shares issued at June 30, 2026 and December 31, 2025) | 111,590 | 111,590 | |||||
| Series B (4,000,000 shares issued at June 30, 2026 and December 31, 2025) | 98,101 | 98,101 | |||||
| Series C (6,000,000 shares issued at June 30, 2026 and December 31, 2025) | 144,654 | 144,654 | |||||
| Common stock (no par value, authorized 650,000,000 shares; issued 560,878,750 shares at June 30, 2026 and December 31, 2025) | 196,730 | 196,730 | |||||
| Surplus | 5,458,768 | 5,464,845 | |||||
| Retained earnings | 2,103,922 | 1,912,933 | |||||
| Accumulated other comprehensive loss | (99,617 | ) | (74,379 | ) | |||
| Treasury stock, at cost (7,809,650 common shares at June 30, 2026 and 4,260,729 common shares at December 31, 2025) | (97,004 | ) | (46,776 | ) | |||
| Total Shareholders’ Equity | 7,917,144 | 7,807,698 | |||||
| Total Liabilities and Shareholders’ Equity | $ | 66,318,308 | $ | 64,132,725 | |||
| 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, | ||||||||||||||
| 2026 | 2026 | 2025 | 2026 | 2025 | |||||||||||||
| Interest Income | |||||||||||||||||
| Interest and fees on loans | $ | 736,060 | $ | 708,640 | $ | 720,282 | $ | 1,444,700 | $ | 1,423,891 | |||||||
| Interest and dividends on investment securities: | |||||||||||||||||
| Taxable | 76,113 | 73,808 | 67,164 | 149,921 | 131,062 | ||||||||||||
| Tax-exempt | 5,048 | 4,718 | 4,681 | 9,766 | 9,383 | ||||||||||||
| Dividends | 5,771 | 4,800 | 5,528 | 10,571 | 11,192 | ||||||||||||
| Interest on federal funds sold and other short-term investments | 6,383 | 10,758 | 7,357 | 17,141 | 14,236 | ||||||||||||
| Total interest income | 829,375 | 802,724 | 805,012 | 1,632,099 | 1,589,764 | ||||||||||||
| Interest Expense | |||||||||||||||||
| Interest on deposits: | |||||||||||||||||
| Savings, NOW and money market | 190,973 | 190,785 | 203,390 | 381,758 | 403,611 | ||||||||||||
| Time | 112,693 | 106,678 | 129,324 | 219,371 | 254,393 | ||||||||||||
| Interest on short-term borrowings | 6,047 | 236 | 1,736 | 6,283 | 4,682 | ||||||||||||
| Interest on long-term borrowings and junior subordinated debentures | 32,638 | 33,500 | 38,154 | 66,138 | 74,565 | ||||||||||||
| Total interest expense | 342,351 | 331,199 | 372,604 | 673,550 | 737,251 | ||||||||||||
| Net Interest Income | 487,024 | 471,525 | 432,408 | 958,549 | 852,513 | ||||||||||||
| (Credit) provision for credit losses for available for sale and held to maturity securities | (2 | ) | 12 | 4 | 10 | (10 | ) | ||||||||||
| Provision for credit losses for loans | 29,166 | 21,244 | 37,795 | 50,410 | 100,470 | ||||||||||||
| Net Interest Income After Provision for Credit Losses | 457,860 | 450,269 | 394,609 | 908,129 | 752,053 | ||||||||||||
| Non-Interest Income | |||||||||||||||||
| Wealth management and trust fees | 17,655 | 16,006 | 14,056 | 33,661 | 29,087 | ||||||||||||
| Insurance commissions | 3,770 | 2,867 | 3,430 | 6,637 | 6,832 | ||||||||||||
| Capital markets | 12,933 | 10,381 | 9,767 | 23,314 | 16,707 | ||||||||||||
| Service charges on deposit accounts | 18,728 | 18,204 | 14,705 | 36,932 | 27,431 | ||||||||||||
| Gains (losses) on securities transactions, net | 50 | 21 | (1 | ) | 71 | 45 | |||||||||||
| Fees from loan servicing | 3,268 | 3,218 | 3,671 | 6,486 | 6,886 | ||||||||||||
| Gains on sales of loans, net | 1,742 | 3,090 | 2,025 | 4,832 | 4,222 | ||||||||||||
| Bank owned life insurance | 5,913 | 5,835 | 6,019 | 11,748 | 10,796 | ||||||||||||
| Other | 9,652 | 9,214 | 8,932 | 18,866 | 18,892 | ||||||||||||
| Total non-interest income | 73,711 | 68,836 | 62,604 | 142,547 | 120,898 | ||||||||||||
| Non-Interest Expense | |||||||||||||||||
| Salary and employee benefits expense | 150,432 | 155,715 | 145,422 | 306,147 | 288,040 | ||||||||||||
| Net occupancy expense | 27,179 | 27,182 | 25,483 | 54,361 | 51,371 | ||||||||||||
| Technology, furniture and equipment expense | 33,247 | 31,878 | 30,667 | 65,125 | 60,563 | ||||||||||||
| FDIC insurance assessment | 11,691 | 10,476 | 12,192 | 22,167 | 25,059 | ||||||||||||
| Amortization of other intangible assets | 6,268 | 6,919 | 7,427 | 13,187 | 15,446 | ||||||||||||
| Professional and legal fees | 29,533 | 25,142 | 19,970 | 54,675 | 35,640 | ||||||||||||
| Loss on extinguishment of debt | — | — | 922 | — | 922 | ||||||||||||
| Amortization of tax credit investments | 16,157 | 16,014 | 9,134 | 32,171 | 18,454 | ||||||||||||
| Other | 36,616 | 36,600 | 32,905 | 73,216 | 65,245 | ||||||||||||
| Total non-interest expense | 311,123 | 309,926 | 284,122 | 621,049 | 560,740 | ||||||||||||
| Income Before Income Taxes | 220,448 | 209,179 | 173,091 | 429,627 | 312,211 | ||||||||||||
| Income tax expense | 49,563 | 45,266 | 39,924 | 94,829 | 72,986 | ||||||||||||
| Net Income | 170,885 | 163,913 | 133,167 | 334,798 | 239,225 | ||||||||||||
| Dividends on preferred stock | 7,316 | 7,217 | 6,948 | 14,533 | 13,903 | ||||||||||||
| Net Income Available to Common Shareholders | $ | 163,569 | $ | 156,696 | $ | 126,219 | $ | 320,265 | $ | 225,322 | |||||||
| 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, 2026 | March 31, 2026 | June 30, 2025 | |||||||||||||||||||||||||||
| Average | Avg. | Average | Avg. | Average | Avg. | ||||||||||||||||||||||||
| ($ in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate | ||||||||||||||||||||
| Assets | |||||||||||||||||||||||||||||
| Interest earning assets: | |||||||||||||||||||||||||||||
| Loans(1)(2) | $ | 51,884,173 | $ | 736,082 | 5.67 | % | $ | 50,265,383 | $ | 708,662 | 5.64 | % | $ | 49,032,637 | $ | 720,305 | 5.88 | % | |||||||||||
| Taxable investments(3) | 7,928,555 | 81,884 | 4.13 | 7,732,330 | 78,608 | 4.07 | 7,350,792 | 72,692 | 3.96 | ||||||||||||||||||||
| Tax-exempt investments(1)(3) | 544,950 | 6,390 | 4.69 | 542,177 | 5,972 | 4.41 | 544,302 | 5,925 | 4.35 | ||||||||||||||||||||
| Interest bearing deposits with banks | 699,684 | 6,383 | 3.65 | 1,178,997 | 10,758 | 3.65 | 625,893 | 7,357 | 4.70 | ||||||||||||||||||||
| Total interest earning assets | 61,057,362 | 830,739 | 5.44 | 59,718,887 | 804,000 | 5.39 | 57,553,624 | 806,279 | 5.60 | ||||||||||||||||||||
| Other assets | 4,527,461 | 4,471,197 | 4,553,321 | ||||||||||||||||||||||||||
| Total assets | $ | 65,584,823 | $ | 64,190,084 | $ | 62,106,945 | |||||||||||||||||||||||
| Liabilities and shareholders' equity | |||||||||||||||||||||||||||||
| Interest bearing liabilities: | |||||||||||||||||||||||||||||
| Savings, NOW and money market deposits | $ | 28,920,057 | $ | 190,973 | 2.64 | % | $ | 29,203,978 | $ | 190,785 | 2.61 | % | $ | 26,451,349 | $ | 203,390 | 3.08 | % | |||||||||||
| Time deposits | 11,881,270 | 112,693 | 3.79 | 11,226,874 | 106,678 | 3.80 | 12,119,461 | 129,324 | 4.27 | ||||||||||||||||||||
| Short-term borrowings | 674,094 | 6,047 | 3.59 | 71,809 | 236 | 1.31 | 196,491 | 1,736 | 3.53 | ||||||||||||||||||||
| Long-term borrowings(4) | 2,684,781 | 32,638 | 4.86 | 2,849,479 | 33,500 | 4.70 | 3,146,434 | 38,154 | 4.85 | ||||||||||||||||||||
| Total interest bearing liabilities | 44,160,202 | 342,351 | 3.10 | 43,352,140 | 331,199 | 3.06 | 41,913,735 | 372,604 | 3.56 | ||||||||||||||||||||
| Non-interest bearing deposits | 12,372,974 | 11,942,322 | 11,336,314 | ||||||||||||||||||||||||||
| Other liabilities | 1,149,959 | 1,040,072 | 1,332,665 | ||||||||||||||||||||||||||
| Shareholders' equity | 7,901,688 | 7,855,550 | 7,524,231 | ||||||||||||||||||||||||||
| Total liabilities and shareholders' equity | $ | 65,584,823 | $ | 64,190,084 | $ | 62,106,945 | |||||||||||||||||||||||
| Net interest income/interest rate spread(5) | $ | 488,388 | 2.34 | % | $ | 472,801 | 2.33 | % | $ | 433,675 | 2.04 | % | |||||||||||||||||
| Tax equivalent adjustment | (1,364 | ) | (1,276 | ) | (1,267 | ) | |||||||||||||||||||||||
| Net interest income, as reported | $ | 487,024 | $ | 471,525 | $ | 432,408 | |||||||||||||||||||||||
| Net interest margin(6) | 3.19 | % | 3.16 | % | 3.01 | % | |||||||||||||||||||||||
| Tax equivalent effect | 0.01 | 0.01 | 0.00 | ||||||||||||||||||||||||||
| Net interest margin on a fully tax equivalent basis(6) | 3.20 | % | 3.17 | % | 3.01 | % | |||||||||||||||||||||||
_____________________
(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.
| INVESTOR RELATIONS Requests for copies of reports and/or other inquiries should be directed to Andrew Jianette, Investor Relations, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960 by e-mail at investorrelations@valley.com. |
| Contact: | Travis Lan | |
| Senior Executive Vice President and Chief Financial Officer | ||
| 973-686-5007 |
