Valley National Bancorp Announces First Quarter 2025 Results

Valley National Bank

NEW YORK, April 24, 2025 (GLOBE NEWSWIRE) -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the first quarter 2025 of $106.1 million, or $0.18 per diluted common share, as compared to the fourth quarter 2024 net income of $115.7 million, or $0.20 per diluted common share, and net income of $96.3 million, or $0.18 per diluted common share, for the first quarter 2024. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $106.1 million, or $0.18 per diluted common share, for the first quarter 2025, $75.7 million, or $0.13 per diluted common share, for the fourth quarter 2024, and $99.4 million, or $0.19 per diluted common share, for the first quarter 2024. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the "Consolidated Financial Highlights" tables.

Ira Robbins, CEO, commented, "The first quarter was highlighted by the continued improvement in our funding base. Core deposit growth has enabled us to further reduce our reliance on indirect deposits which benefited our revenue and net interest margin. We anticipate that additional core deposit growth will create a sustainable tailwind despite the volatility in the current operating environment.”

Mr. Robbins continued, “I am generally pleased with the quarter’s results from a credit perspective. The provision for loan losses for the first quarter was at the lowest point in the last four quarters, and we anticipate further improvement throughout the remainder of the year. Non-accrual loans and early stage delinquencies also improved sequentially, and we believe our allowance coverage to total loans is at a comfortable level as of March 31, 2025. We remain on track to achieve our profitability goals for the year as we continue to benefit from the net interest income and credit cost tailwinds that we have discussed previously.”

Key financial highlights for the first quarter 2025:

Net Interest Income and Margin: Our net interest margin on a tax equivalent basis increased by 4 basis points to 2.96 percent in the first quarter 2025 as compared to 2.92 percent for the fourth quarter 2024. Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. The moderate decrease in net interest income from the fourth quarter 2024 was due to the impact of two less days during the first quarter 2025. See additional details in the "Net Interest Income and Margin" section below. Loan Portfolio: Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024 mostly due to normal repayment activity and selective originations within the commercial real estate (CRE) portfolio. As a result, our CRE loan concentration ratio (defined as total commercial real estate loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) declined to approximately 353 percent at March 31, 2025 from 362 percent at December 31, 2024. Partially offsetting the lower CRE loan balances, commercial and industrial (C&I) and automobile loans grew by $218.8 million and $140.2 million, respectively, at March 31, 2025 from December 31, 2024. Auto loan originations resulting from high quality consumer demand remained strong during the first quarter 2025. See the "Loans" section below for more details. Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $594.1 million and $573.3 million at March 31, 2025 and December 31, 2024, respectively, representing 1.22 percent and 1.17 percent of total loans at each respective date. During the first quarter 2025, we recorded a provision for credit losses for loans of $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. See the "Credit Quality" section below for more details. Credit Quality: Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024. Non-accrual loans totaled $346.5 million, or 0.71 percent of total loans, at March 31, 2025 as compared to $359.5 million, or 0.74 percent of total loans, at December 31, 2024. Net loan charge-offs totaled $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and first quarter 2024, respectively. See the "Credit Quality" section below for more details. Deposits: Non-interest bearing deposits increased $199.9 million to $11.6 billion at March 31, 2025 from December 31, 2024 largely due to higher inflows of commercial customer deposits during the first quarter 2025. Savings, NOW, and money market deposits increased $108.6 million to $26.4 billion at March 31, 2025 from December 31, 2024 mostly due to new deposits from our online savings deposit product offerings. Total actual deposit balances decreased $110.0 million to $50.0 billion at March 31, 2025 as compared to $50.1 billion at December 31, 2024 as the increases in our direct customer deposits were offset by a $726.5 million decrease in indirect customer deposits (consisting largely of brokered CDs) during the first quarter 2025. See the "Deposits" section below for more details. Non-Interest Income: Non-interest income increased $7.1 million to $58.3 million for the first quarter 2025 as compared to the fourth quarter 2024. The increase reflected net gains on sales of loans of $2.2 million for the first quarter 2025 as compared to net losses of $4.7 million for the fourth quarter 2024, which included $7.9 million of losses related to the sale of performing CRE loans. Non-Interest Expense: Non-interest expense decreased $2.0 million to $276.6 million for the first quarter 2025 as compared to the fourth quarter 2024 largely due to decreases of $6.1 million in professional and legal expenses; and $5.6 million in technology, furniture and equipment expense, partially offset by higher amortization of tax credit investments and the normal seasonal increases in salary and employee benefits expense related to payroll taxes during the first quarter 2025. The decreases in professional and technology-related expenses were mostly due to elevated fourth quarter 2024 expenses resulting from transformation and enhancement efforts in our bank operations. Income Tax Expense: Income tax expense was $33.1 million for the first quarter 2025 as compared to an income tax benefit of $26.7 million for the fourth quarter 2024, which reflected a $46.4 million total reduction in uncertain tax liability positions and related accrued interest due to statute of limitation expirations. Our effective tax rate was 23.8 percent for the first quarter 2025 compared to a negative 29.9 percent for the fourth quarter 2024. Efficiency Ratio: Our efficiency ratio was 55.87 percent for the first quarter 2025 as compared to 57.21 percent and 59.10 percent for the fourth quarter 2024 and first quarter 2024, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures. Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible ROE were 0.69 percent, 5.69 percent and 7.76 percent for the first quarter 2025, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.

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Net Interest Income and Margin

Net interest income on a tax equivalent basis of $421.4 million for the first quarter 2025 decreased $2.9 million compared to the fourth quarter 2024 and increased $26.5 million as compared to the first quarter 2024. Interest income on a tax equivalent basis decreased $50.1 million to $786.0 million for the first quarter 2025 as compared to the fourth quarter 2024. The decrease was mostly driven by the impact of (i) two less days in the first quarter 2025, (ii) the bulk sale of certain performing CRE loans during the fourth quarter 2024, and (iii) downward repricing on adjustable rate loans. Total interest expense decreased $47.2 million to $364.6 million for the first quarter 2025 as compared to the fourth quarter 2024 mainly due to (i) the aforementioned reduction in day count, (ii) a $2.0 billion decrease in average time deposit balances (primarily related to the maturity and repayment of higher cost indirect customer CDs), and (iii) lower interest rates on many interest bearing deposit products in the first quarter 2025. See the "Deposits" and "Other Borrowings" sections below for more details.

Net interest margin on a tax equivalent basis of 2.96 percent for the first quarter 2025 increased by 4 basis points from 2.92 percent for the fourth quarter 2024 and increased 17 basis points from 2.79 percent for the first quarter 2024. The increase as compared to the fourth quarter 2024 was mostly due to the 29 basis point decline in our cost of total average deposits, largely offset by the lower yield on average interest earning assets. The yield on average interest earning assets decreased by 22 basis points to 5.53 percent on a linked quarter basis largely due to downward repricing of our adjustable rate loans and two less days in the first quarter 2025, partially offset by higher yielding investment purchases. The overall cost of average interest bearing liabilities decreased 31 basis points to 3.54 percent for the first quarter 2025 as compared to the fourth quarter 2024 largely due to a decrease in higher cost time deposits and lower interest rates on most deposit products. Our cost of total average deposits was 2.65 percent for the first quarter 2025 as compared to 2.94 percent and 3.16 percent for the fourth quarter 2024 and the first quarter 2024, respectively.

Loans, Deposits and Other Borrowings

Loans. Total loans decreased $142.6 million, or 1.2 percent on an annualized basis, to $48.7 billion at March 31, 2025 from December 31, 2024. Total CRE (including construction) loans decreased $530.4 million to $29.1 billion at March 31, 2025 from December 31, 2024. The decrease was largely driven by repayment activity and continued selective origination activity within the CRE portfolio. Additionally, construction loans decreased $87.8 million to $3.0 billion at March 31, 2025 from December 31, 2024 mainly due to the migration of completed projects to permanent financing within the multifamily loan category during the first quarter 2025 and a non-performing loan totaling $10.2 million, net of $638 thousand of charge-offs, transferred to loans held for sale at March 31, 2025, partially offset by new advances. As a result of the completed construction projects, multifamily loans increased $121.1 million to $8.4 billion at March 31, 2025 from December 31, 2024. C&I loans grew by $218.8 million, or 8.8 percent on an annualized basis, to $10.2 billion at March 31, 2025 from December 31, 2024 largely due to our continued strategic focus on growth within this category. Automobile loans increased by $140.2 million, or 29.5 percent on an annualized basis, to $2.0 billion at March 31, 2025 from December 31, 2024 mainly due to high quality consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio.

Deposits. Actual ending balances for deposits decreased $110.0 million to $50.0 billion at March 31, 2025 from December 31, 2024 mainly due to a $418.5 million decrease in time deposits, partially offset by increases of $199.9 million and $108.6 million in non-interest bearing deposits and savings, NOW and money market deposits, respectively. The decrease in time deposit balances was mainly driven by a decline of approximately $661 million in indirect (i.e., brokered) customer CDs, partially offset by deposit inflows from new retail CD offerings during the first quarter 2025. The increase in non-interest bearing was mostly due to higher commercial customer deposit inflows late in the first quarter 2025. Savings, NOW and money market deposit balances increased at March 31, 2025 from December 31, 2024 largely due to new deposits from our online savings deposit product offerings, partially offset by lower governmental deposits account balances. Total indirect customer deposits (including both brokered money market and time deposits) totaled $6.3 billion and $7.0 billion in March 31, 2025 and December 31, 2024, respectively. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 23 percent, 53 percent and 24 percent of total deposits as of March 31, 2025, respectively, as compared to 23 percent, 52 percent and 25 percent of total deposits as of December 31, 2024, respectively.

Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $13.7 million to $59.0 million at March 31, 2025 from December 31, 2024. Long-term borrowings totaled $2.9 billion at March 31, 2025 and decreased $269.6 million as compared to December 31, 2024 due to the maturity and repayment of certain FHLB advances.

Credit Quality

Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $17.1 million to $356.2 million at March 31, 2025 as compared to December 31, 2024. Non-accrual loans decreased $13.0 million to $346.5 million at March 31, 2025 as compared to $359.5 million at December 31, 2024 largely driven by partial charge-offs of two non-performing C&I loan relationships during the first quarter 2025, partially offset by a moderate increase in non-performing CRE loans at March 31, 2025. Non-accrual loans represented 0.71 percent of total loans at March 31, 2025 as compared to 0.74 percent of total loans at December 31, 2024. OREO decreased $4.4 million to $7.7 million at March 31, 2025 from December 31, 2024 mostly due to the sale of one CRE property, which resulted in a $2.9 million loss for the first quarter 2025.

Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) decreased $47.5 million to $51.7 million, or 0.11 percent of total loans, at March 31, 2025 as compared to $99.2 million, or 0.20 percent of total loans, at December 31, 2024.

Loans 30 to 59 days past due decreased $23.7 million to $33.4 million at March 31, 2025 as compared to December 31, 2024 largely due to a previously reported delinquent CRE loan totaling $15.4 million that was current to its contractual payments at March 31, 2025, as well as a general improvement in residential mortgage loan delinquencies in this category. Loans 60 to 89 days past due decreased $25.6 million to $10.5 million at March 31, 2025 as compared to December 31, 2024 mostly due to the renewal of an $18.6 million matured performing CRE loan reported in this delinquency category at December 31, 2024 and two CRE loans totaling $6.9 million that were reclassified to the non-accrual category during the first quarter 2025. Loans 90 days or more past due and still accruing interest increased $1.9 million to $7.8 million at March 31, 2025 as compared to December 31, 2024 mainly due to an increase in residential mortgage loans delinquencies. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at March 31, 2025, December 31, 2024 and March 31, 2024:

March 31, 2025  December 31, 2024  March 31, 2024 Allocation    Allocation    Allocation as a % of    as a % of    as a % of Allowance  Loan  Allowance  Loan  Allowance  Loan Allocation  Category  Allocation  Category  Allocation  Category ($ in thousands) Loan Category:  Commercial and industrial loans $ 184,700  1.82 %  $ 173,002  1.74 %  $ 138,593  1.52 % Commercial real estate loans:  Commercial real estate  266,938  1.02    251,351  0.95    209,355  0.74  Construction  54,724  1.81    52,797  1.70    56,492  1.59  Total commercial real estate loans  321,662  1.10    304,148  1.03    265,847  0.84  Residential mortgage loans  48,906  0.87    58,895  1.05    44,377  0.79  Consumer loans:  Home equity  3,401  0.56    3,379  0.56    2,809  0.50  Auto and other consumer  19,531  0.62    19,426  0.65    17,622  0.60  Total consumer loans  22,932  0.61    22,805  0.64    20,431  0.58  Allowance for loan losses  578,200  1.19    558,850  1.15    469,248  0.94  Allowance for unfunded credit commitments  15,854     14,478     18,021  Total allowance for credit losses for loans $ 594,054    $ 573,328    $ 487,269  Allowance for credit losses for loans as a % total of loans   1.22 %    1.17 %    0.98 %

Our loan portfolio, totaling $48.7 billion at March 31, 2025, had net loan charge-offs totaling $41.9 million for the first quarter 2025 as compared to $98.3 million and $23.6 million for the fourth quarter 2024 and the first quarter 2024, respectively. Gross loan charge-offs totaled $44.0 million for the first quarter 2025 and included $24.1 million of partial and full charge-offs related to two non-performing C&I loan relationships with combined specific reserves of $16.0 million at December 31, 2024.

The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.22 percent at March 31, 2025, 1.17 percent at December 31, 2024, and 0.98 percent at March 31, 2024. For the first quarter 2025, the provision for credit losses for loans totaled $62.7 million as compared to $107.0 million and $45.3 million for the fourth quarter 2024 and first quarter 2024, respectively. The first quarter 2025 provision reflects, among other factors, the impact of loan charge-offs, increased quantitative reserves and continued growth in the C&I loan portfolio, partially offset by a decrease in specific reserves associated with collateral dependent loans at March 31, 2025.

Capital Adequacy

Valley's total risk-based capital, Tier 1 capital, common equity Tier 1 capital, and Tier 1 leverage capital ratios were 13.91 percent, 11.53 percent, 10.80 percent and 9.41 percent, respectively, at March 31, 2025 as compared to 13.87 percent, 11.55 percent, 10.82 percent and 9.16 percent, respectively, at December 31, 2024.

Investor Conference Call

Valley’s CEO, Ira Robbins, will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss Valley's first quarter 2025 earnings. Interested parties should preregister using this link: https://register.vevent.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com and archived on Valley’s website through Monday, May 26, 2025. Investor presentation materials will be made available prior to the conference call at valley.com.

About Valley

As the principal subsidiary of Valley National Bancorp, Valley National Bank is a regional bank with approximately $62 billion in assets. Valley is committed to giving people and businesses the power to succeed. Valley operates many convenient branch locations and commercial banking offices across New Jersey, New York, Florida, Alabama, California, and Illinois, and is committed to providing the most convenient service, the latest innovations and an experienced and knowledgeable team dedicated to meeting customer needs. Helping communities grow and prosper is the heart of Valley’s corporate citizenship philosophy. To learn more about Valley, go to valley.com or call our Customer Care Center at 800-522-4100.

Forward-Looking Statements

The foregoing contains forward-looking statements within the meaning of the Private Securities Litigation Reform Act of 1995. Such statements are not historical facts and include expressions about management’s confidence and strategies and management’s expectations about our business, new and existing programs and products, acquisitions, relationships, opportunities, taxation, technology, market conditions and economic expectations. These statements may be identified by such forward-looking terminology as “intend,” “should,” “expect,” “believe,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated by such forward-looking statements include, but are not limited to:

the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers; the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs, any retaliatory actions, related market uncertainty, or other factors; debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as legislation and policy changes under the new U.S. presidential administration, geopolitical instabilities or events, natural and other disasters, including severe weather events, health emergencies, acts of terrorism, or other external events; the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of the actual or perceived soundness, or concerns about the creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including Federal Deposit Insurance Corporation insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital; the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues; changes in the statutes, regulations, policies, or enforcement priorities of the federal bank regulatory agencies; the loss of or decrease in lower-cost funding sources within our deposit base; damage verdicts or settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment related claims, and other matters; a prolonged downturn and contraction in the economy, as well as an unexpected decline in commercial real estate values collateralizing a significant portion of our loan portfolio; higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law; the inability to grow customer deposits to keep pace with the level of loan growth; a material change in our allowance for credit losses under CECL due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios; the need to supplement debt or equity capital to maintain or exceed internal capital thresholds; changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges; greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations; increased competitive challenges, including our ability to stay current with rapid technological changes in the financial services industry; cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks; results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau (CFPB) and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities; application of the OCC heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us; our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings; unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather, pandemics or other public health crises, acts of terrorism or other external events; our ability to successfully execute our business plan and strategic initiatives; 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 March 31,  December 31,  March 31, ($ in thousands, except for share data and stock price) 2025  2024  2024 FINANCIAL DATA:  Net interest income - FTE (1) $ 421,378   $ 424,277   $ 394,847  Net interest income $ 420,105   $ 422,977   $ 393,548  Non-interest income  58,294    51,202    61,415  Total revenue  478,399    474,179    454,963  Non-interest expense  276,618    278,582    280,310  Pre-provision net revenue  201,781    195,597    174,653  Provision for credit losses  62,661    106,536    45,200  Income tax expense (benefit)  33,062    (26,650 )   33,173  Net income  106,058    115,711    96,280  Dividends on preferred stock  6,955    7,025    4,119  Net income available to common shareholders $ 99,103   $ 108,686   $ 92,161  Weighted average number of common shares outstanding:  Basic  559,613,272    536,159,463    508,340,719  Diluted  563,305,525    540,087,600    510,633,945  Per common share data:  Basic earnings $ 0.18   $ 0.20   $ 0.18  Diluted earnings  0.18    0.20    0.18  Cash dividends declared  0.11    0.11    0.11  Closing stock price - high  10.42    10.78    10.80  Closing stock price - low  8.56    8.70    7.43  FINANCIAL RATIOS:  Net interest margin  2.95 %   2.91 %   2.78 % Net interest margin - FTE (1)  2.96    2.92    2.79  Annualized return on average assets  0.69    0.74    0.63  Annualized return on avg. shareholders' equity  5.69    6.38    5.73  NON-GAAP FINANCIAL DATA AND RATIOS: (2)  Basic earnings per share, as adjusted $ 0.18   $ 0.13   $ 0.19  Diluted earnings per share, as adjusted  0.18    0.13    0.19  Annualized return on average assets, as adjusted  0.69 %   0.48 %   0.65 % Annualized return on average shareholders' equity, as adjusted  5.69    4.17    5.91  Annualized return on avg. tangible shareholders' equity  7.76    8.81    8.19  Annualized return on average tangible shareholders' equity, as adjusted  7.76    5.76    8.46  Efficiency ratio  55.87    57.21    59.10   AVERAGE BALANCE SHEET ITEMS:  Assets $ 61,502,768   $ 62,865,338   $ 61,256,868  Interest earning assets  56,891,691    58,214,783    56,618,797  Loans  48,654,921    49,730,130    50,246,591  Interest bearing liabilities  41,230,709    42,765,949    41,556,588  Deposits  49,139,303    50,726,080    48,575,974  Shareholders' equity  7,458,177    7,255,159    6,725,695

As Of BALANCE SHEET ITEMS: March 31,  December 31,  September 30,  June 30,  March 31, (In thousands) 2025   2024   2024   2024   2024  Assets $ 61,865,655   $ 62,491,691   $ 62,092,332   $ 62,058,974   $ 61,000,188  Total loans  48,657,128    48,799,711    49,355,319    50,311,702    49,922,042  Deposits  49,965,844    50,075,857    50,395,966    50,112,177    49,077,946  Shareholders' equity  7,499,897    7,435,127    6,972,380    6,737,737    6,727,139   LOANS:  (In thousands)  Commercial and industrial $ 10,150,205   $ 9,931,400   $ 9,799,287   $ 9,479,147   $ 9,104,193  Commercial real estate:  Non-owner occupied  11,945,222    12,344,355    12,647,649    13,710,015    14,962,851  Multifamily  8,420,385    8,299,250    8,612,936    8,976,264    8,818,263  Owner occupied  5,722,014    5,886,620    5,654,147    5,536,844    4,367,839  Construction  3,026,935    3,114,733    3,487,464    3,545,723    3,556,511  Total commercial real estate  29,114,556    29,644,958    30,402,196    31,768,846    31,705,464  Residential mortgage  5,636,407    5,632,516    5,684,079    5,627,113    5,618,355  Consumer:  Home equity  602,161    604,433    581,181    566,467    564,083  Automobile  2,041,227    1,901,065    1,823,738    1,762,852    1,700,508  Other consumer  1,112,572    1,085,339    1,064,838    1,107,277    1,229,439  Total consumer loans  3,755,960    3,590,837    3,469,757    3,436,596    3,494,030  Total loans $ 48,657,128   $ 48,799,711   $ 49,355,319   $ 50,311,702   $ 49,922,042   CAPITAL RATIOS:  Book value per common share $ 12.76   $ 12.67   $ 13.00   $ 12.82   $ 12.81  Tangible book value per common share (2)  9.21    9.10    9.06    8.87    8.84  Tangible common equity to tangible assets (2)  8.61 %   8.40 %   7.68 %   7.52 %   7.62 % Tier 1 leverage capital  9.41    9.16    8.40    8.19    8.20  Common equity tier 1 capital  10.80    10.82    9.57    9.55    9.34  Tier 1 risk-based capital  11.53    11.55    10.29    9.98    9.78  Total risk-based capital  13.91    13.87    12.56    12.17    11.88

Three Months Ended ALLOWANCE FOR CREDIT LOSSES: March 31,  December 31,  March 31, ($ in thousands) 2025  2024  2024 Allowance for credit losses for loans  Beginning balance - Allowance for credit losses for loans $ 573,328   $ 564,671   $ 465,550  Loans charged-off:  Commercial and industrial  (28,456 )   (31,784 )   (14,293 ) Commercial real estate  (12,260 )   (69,218 )   (1,204 ) Construction  (1,163 )   —    (7,594 ) Residential mortgage  —    (29 )   —  Total consumer  (2,140 )   (2,621 )   (1,809 ) Total loans charged-off  (44,019 )   (103,652 )   (24,900 ) Charged-off loans recovered:  Commercial and industrial  810    1,452    682  Commercial real estate  249    3,138    241  Residential mortgage  168    81    25  Total consumer  843    673    397  Total loans recovered  2,070    5,344    1,345  Total net charge-offs  (41,949 )   (98,308 )   (23,555 ) Provision for credit losses for loans  62,675    106,965    45,274  Ending balance $ 594,054   $ 573,328   $ 487,269  Components of allowance for credit losses for loans:  Allowance for loan losses $ 578,200   $ 558,850   $ 469,248  Allowance for unfunded credit commitments  15,854    14,478    18,021  Allowance for credit losses for loans $ 594,054   $ 573,328   $ 487,269  Components of provision for credit losses for loans:  Provision for credit losses for loans $ 61,299   $ 108,831   $ 46,723  Provision (credit) for unfunded credit commitments  1,376    (1,866 )   (1,449 ) Total provision for credit losses for loans $ 62,675   $ 106,965   $ 45,274  Annualized ratio of total net charge-offs to total average loans  0.34 %   0.79 %   0.19 % Allowance for credit losses for loans as a % of total loans  1.22 %   1.17 %   0.98 %

As Of ASSET QUALITY: March 31,  December 31,  September 30,  June 30,  March 31, ($ in thousands) 2025   2024   2024   2024   2024  Accruing past due loans:  30 to 59 days past due:  Commercial and industrial $ 3,609   $ 2,389   $ 4,537   $ 5,086   $ 6,202  Commercial real estate  170    20,902    76,370    1,879    5,791  Residential mortgage  16,747    21,295    19,549    17,389    20,819  Total consumer  12,887    12,552    14,672    21,639    14,032  Total 30 to 59 days past due  33,413    57,138    115,128    45,993    46,844  60 to 89 days past due:  Commercial and industrial  420    1,007    1,238    1,621    2,665  Commercial real estate  —    24,903    43,926    —    3,720  Residential mortgage  7,700    5,773    6,892    6,632    5,970  Total consumer  2,408    4,484    2,732    3,671    1,834  Total 60 to 89 days past due  10,528    36,167    54,788    11,924    14,189  90 or more days past due:  Commercial and industrial  —    1,307    1,786    2,739    5,750  Commercial real estate  —    —    —    4,242    —  Construction  —    —    —    3,990    3,990  Residential mortgage  6,892    3,533    1,931    2,609    2,884  Total consumer  864    1,049    1,063    898    731  Total 90 or more days past due  7,756    5,889    4,780    14,478    13,355  Total accruing past due loans $ 51,697   $ 99,194   $ 174,696   $ 72,395   $ 74,388  Non-accrual loans:  Commercial and industrial $ 110,146   $ 136,675   $ 120,575   $ 102,942   $ 102,399  Commercial real estate  172,011    157,231    113,752    123,011    100,052  Construction  24,275    24,591    24,657    45,380    51,842  Residential mortgage  35,393    36,786    33,075    28,322    28,561  Total consumer  4,626    4,215    4,260    3,624    4,438  Total non-accrual loans  346,451    359,498    296,319    303,279    287,292  Other real estate owned (OREO)  7,714    12,150    7,172    8,059    88  Other repossessed assets  2,054    1,681    1,611    1,607    1,393  Total non-performing assets $ 356,219   $ 373,329   $ 305,102   $ 312,945   $ 288,773  Total non-accrual loans as a % of loans  0.71 %   0.74 %   0.60 %   0.60 %   0.58 % Total accruing past due and non-accrual loans as a % of loans  0.82    0.94 %   0.95 %   0.75 %   0.72 % Allowance for losses on loans as a % of non-accrual loans  166.89    155.45 %   185.05 %   171.23 %   163.33 %

NOTES TO SELECTED FINANCIAL DATA

(1)  Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules. (2)  Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies.

Non-GAAP Reconciliations to GAAP Financial Measures  Three Months Ended March 31,  December 31,  March 31, ($ in thousands, except for share data) 2025   2024   2024  Adjusted net income available to common shareholders (non-GAAP):  Net income, as reported (GAAP) $ 106,058   $ 115,711   $ 96,280  Add: FDIC special assessment (a)  —    —    7,394  Add: Losses on available for sale and held to maturity debt securities, net (b)  11    3    7  Add: Restructuring charge(c)  —    1,085    620  Add: Net losses on the sale of commercial real estate loans (d)  —    7,866    —  Less: Gain on sale of commercial premium finance lending division (e)  —    —    (3,629 ) Less: Income tax benefit (f)  —    (46,431 )   —  Total non-GAAP adjustments to net income  11    (37,477 )   4,392  Income tax adjustments related to non-GAAP adjustments (g)  (3 )   (2,520 )   (1,224 ) Net income, as adjusted (non-GAAP) $ 106,066   $ 75,714   $ 99,448  Dividends on preferred stock  6,955    7,025    4,119  Net income available to common shareholders, as adjusted (non-GAAP) $ 99,111   $ 68,689   $ 95,329   (a) Included in the FDIC insurance assessment. (b) Included in gains on securities transactions, net. (c) Represents severance expense related to workforce reductions within salary and employee benefits expense. (d) Represents actual and mark to market losses on commercial real estate loan sales included in gains (losses) on sales of loans, net. (e) Included in gains (losses) on sales of assets, net within non-interest income. (f)  Represents the income tax benefit from the reduction in uncertain tax liability positions and accrued interest due to statute of limitation expirations included in income tax expense (benefit). (g) Calculated using the appropriate blended statutory tax rate for the applicable period.  Adjusted per common share data (non-GAAP):  Net income available to common shareholders, as adjusted (non-GAAP) $ 99,111   $ 68,689   $ 95,329  Average number of shares outstanding  559,613,272    536,159,463    508,340,719  Basic earnings, as adjusted (non-GAAP) $ 0.18   $ 0.13   $ 0.19  Average number of diluted shares outstanding  563,305,525    540,087,600    510,633,945  Diluted earnings, as adjusted (non-GAAP) $ 0.18   $ 0.13   $ 0.19  Adjusted annualized return on average tangible shareholders' equity (non-GAAP):  Net income, as adjusted (non-GAAP) $ 106,066   $ 75,714   $ 99,448  Average shareholders' equity $ 7,458,177   $ 7,255,159   $ 6,725,695  Less: Average goodwill and other intangible assets  1,994,061    2,000,574    2,024,999  Average tangible shareholders' equity $ 5,464,116   $ 5,254,585   $ 4,700,696  Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP)  7.76 %   5.76 %   8.46 % Adjusted annualized return on average assets (non-GAAP):  Net income, as adjusted (non-GAAP) $ 106,066   $ 75,714   $ 99,448  Average assets $ 61,502,768   $ 62,865,338   $ 61,256,868  Annualized return on average assets, as adjusted (non-GAAP)  0.69 %   0.48 %   0.65 %

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)  Three Months Ended March 31,  December 31,  March 31, ($ in thousands, except for share data) 2025   2024   2024  Adjusted annualized return on average shareholders' equity (non-GAAP):  Net income, as adjusted (non-GAAP) $ 106,066   $ 75,714   $ 99,448  Average shareholders' equity $ 7,458,177   $ 7,255,159   $ 6,725,695  Annualized return on average shareholders' equity, as adjusted (non-GAAP)  5.69 %   4.17 %   5.91 % Annualized return on average tangible shareholders' equity (non-GAAP):  Net income, as reported (GAAP) $ 106,058   $ 115,711   $ 96,280  Average shareholders' equity $ 7,458,177   $ 7,255,159   $ 6,725,695  Less: Average goodwill and other intangible assets  1,994,061    2,000,574    2,024,999  Average tangible shareholders' equity $ 5,464,116   $ 5,254,585   $ 4,700,696  Annualized return on average tangible shareholders' equity (non-GAAP)  7.76 %   8.81 %   8.19 %  Efficiency ratio (non-GAAP):  Non-interest expense, as reported (GAAP) $ 276,618   $ 278,582   $ 280,310  Less: FDIC special assessment (pre-tax)  —    —    7,394  Less: Restructuring charge (pre-tax)  —    1,085    620  Less: Amortization of tax credit investments (pre-tax)  9,320    1,740    5,562  Non-interest expense, as adjusted (non-GAAP) $ 267,298   $ 275,757   $ 266,734  Net interest income, as reported (GAAP)  420,105    422,977    393,548  Non-interest income, as reported (GAAP)  58,294    51,202    61,415  Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)  11    3    7  Add: Net losses on the sale of commercial real estate loans (pre-tax)  —    7,866    —  Less: Gain on sale of premium finance division (pre-tax)  —    —    (3,629 ) Non-interest income, as adjusted (non-GAAP) $ 58,305   $ 59,071   $ 57,793  Gross operating income, as adjusted (non-GAAP) $ 478,410   $ 482,048   $ 451,341  Efficiency ratio (non-GAAP)  55.87 %   57.21 %   59.10 %

As of March 31,  December 31,  September 30,  June 30,  March 31, ($ in thousands, except for share data) 2025   2024   2024   2024   2024  Tangible book value per common share (non-GAAP):  Common shares outstanding  560,028,101    558,786,093    509,252,936    509,205,014    508,893,059  Shareholders' equity (GAAP) $ 7,499,897   $ 7,435,127   $ 6,972,380   $ 6,737,737   $ 6,727,139  Less: Preferred stock  354,345    354,345    354,345    209,691    209,691  Less: Goodwill and other intangible assets  1,990,276    1,997,597    2,004,414    2,012,580    2,020,405  Tangible common shareholders' equity (non-GAAP) $ 5,155,276   $ 5,083,185   $ 4,613,621   $ 4,515,466   $ 4,497,043  Tangible book value per common share (non-GAAP) $ 9.21   $ 9.10   $ 9.06   $ 8.87   $ 8.84  Tangible common equity to tangible assets (non-GAAP):  Tangible common shareholders' equity (non-GAAP) $ 5,155,276   $ 5,083,185   $ 4,613,621   $ 4,515,466   $ 4,497,043  Total assets (GAAP)  61,865,655    62,491,691    62,092,332    62,058,974    61,000,188  Less: Goodwill and other intangible assets  1,990,276    1,997,597    2,004,414    2,012,580    2,020,405  Tangible assets (non-GAAP) $ 59,875,379   $ 60,494,094   $ 60,087,918   $ 60,046,394   $ 58,979,783  Tangible common equity to tangible assets (non-GAAP)  8.61 %   8.40 %   7.68 %   7.52 %   7.62 %

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)

March 31,  December 31, 2025  2024 (Unaudited)  Assets  Cash and due from banks $ 508,887   $ 411,412  Interest bearing deposits with banks  714,810    1,478,713  Investment securities:  Equity securities  74,425    71,513  Available for sale debt securities  3,658,704    3,369,724  Held to maturity debt securities (net of allowance for credit losses of $633 at March 31, 2025 and $647 at December 31, 2024)  3,545,328    3,531,573  Total investment securities  7,278,457    6,972,810  Loans held for sale (includes fair value of $8,427 at March 31, 2025 and $16,931 at December 31, 2024 for loans originated for sale)  27,377    25,681  Loans  48,657,128    48,799,711  Less: Allowance for loan losses  (578,200 )   (558,850 ) Net loans  48,078,928    48,240,861  Premises and equipment, net  344,123    350,796  Lease right of use assets  334,013    328,475  Bank owned life insurance  733,135    731,574  Accrued interest receivable  238,326    239,941  Goodwill  1,868,936    1,868,936  Other intangible assets, net  121,340    128,661  Other assets  1,617,323    1,713,831  Total Assets $ 61,865,655   $ 62,491,691  Liabilities  Deposits:  Non-interest bearing $ 11,628,578   $ 11,428,674  Interest bearing:  Savings, NOW and money market  26,413,258    26,304,639  Time  11,924,008    12,342,544  Total deposits  49,965,844    50,075,857  Short-term borrowings  59,026    72,718  Long-term borrowings  2,904,567    3,174,155  Junior subordinated debentures issued to capital trusts  57,542    57,455  Lease liabilities  394,334    388,303  Accrued expenses and other liabilities  984,445    1,288,076  Total Liabilities  54,365,758    55,056,564  Shareholders’ Equity  Preferred stock, no par value; 50,000,000 authorized shares:  Series A (4,600,000 shares issued at March 31, 2025 and December 31, 2024)  111,590    111,590  Series B (4,000,000 shares issued at March 31, 2025 and December 31, 2024)  98,101    98,101  Series C (6,000,000 shares issued at March 31, 2025 and December 31, 2024)  144,654    144,654  Common stock (no par value, authorized 650,000,000 shares; issued 560,278,101 shares at March 31, 2025 and 558,786,093 shares at December 31, 2024)  196,520    195,998  Surplus  5,444,756    5,442,070  Retained earnings  1,634,690    1,598,048  Accumulated other comprehensive loss  (128,252 )   (155,334 ) Treasury stock, at cost (250,000 common shares at March 31, 2025)  (2,162 )   —  Total Shareholders’ Equity  7,499,897    7,435,127  Total Liabilities and Shareholders’ Equity $ 61,865,655   $ 62,491,691

VALLEY NATIONAL BANCORP
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)

Three Months Ended March 31,  December 31,  March 31, 2025  2024  2024 Interest Income  Interest and fees on loans $ 703,609   $ 750,667   $ 771,553  Interest and dividends on investment securities:  Taxable  63,898    55,983    35,797  Tax-exempt  4,702    4,803    4,796  Dividends  5,664    5,860    6,828  Interest on federal funds sold and other short-term investments  6,879    17,513    9,682  Total interest income  784,752    834,826    828,656  Interest Expense  Interest on deposits:  Savings, NOW and money market  200,221    214,489    232,506  Time  125,069    158,716    151,065  Interest on short-term borrowings  2,946    293    20,612  Interest on long-term borrowings and junior subordinated debentures  36,411    38,351    30,925  Total interest expense  364,647    411,849    435,108  Net Interest Income  420,105    422,977    393,548  (Credit) provision for credit losses for available for sale and held to maturity securities  (14 )   (429 )   (74 ) Provision for credit losses for loans  62,675    106,965    45,274  Net Interest Income After Provision for Credit Losses  357,444    316,441    348,348  Non-Interest Income  Wealth management and trust fees  15,031    16,425    17,930  Insurance commissions  3,402    3,705    2,251  Capital markets  6,940    7,425    5,670  Service charges on deposit accounts  12,726    12,989    11,249  Gains on securities transactions, net  46    1    49  Fees from loan servicing  3,215    3,071    3,188  Gains (losses) on sales of loans, net  2,197    (4,698 )   1,618  Gains (losses) on sales of assets, net  43    (20 )   3,694  Bank owned life insurance  4,777    3,775    3,235  Other  9,917    8,529    12,531  Total non-interest income  58,294    51,202    61,415  Non-Interest Expense  Salary and employee benefits expense  142,618    137,117    141,831  Net occupancy expense  25,888    26,576    24,323  Technology, furniture and equipment expense  29,896    35,482    35,462  FDIC insurance assessment  12,867    14,002    18,236  Amortization of other intangible assets  8,019    8,373    9,412  Professional and legal fees  15,670    21,794    16,465  Amortization of tax credit investments  9,320    1,740    5,562  Other  32,340    33,498    29,019  Total non-interest expense  276,618    278,582    280,310  Income Before Income Taxes  139,120    89,061    129,453  Income tax expense (benefit)  33,062    (26,650 )   33,173  Net Income  106,058    115,711    96,280  Dividends on preferred stock  6,955    7,025    4,119  Net Income Available to Common Shareholders $ 99,103   $ 108,686   $ 92,161

VALLEY NATIONAL BANCORP
Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and
Net Interest Income on a Tax Equivalent Basis

Three Months Ended March 31, 2025  December 31, 2024  March 31, 2024 Average    Avg.  Average    Avg.  Average    Avg. ($ in thousands) Balance  Interest  Rate  Balance  Interest  Rate  Balance  Interest  Rate Assets  Interest earning assets:  Loans (1)(2) $ 48,654,921  $ 703,632   5.78 %  $ 49,730,130  $ 750,690   6.04 %  $ 50,246,591  $ 771,577   6.14 % Taxable investments (3)  7,100,958   69,562   3.92    6,504,106   61,843   3.80    5,094,978   42,625   3.35  Tax-exempt investments (1)(3)  552,291   5,952   4.31    565,877   6,080   4.30    579,842   6,071   4.19  Interest bearing deposits with banks  583,521   6,879   4.72    1,414,670   17,513   4.95    697,386   9,682   5.55  Total interest earning assets  56,891,691   786,025   5.53    58,214,783   836,126   5.75    56,618,797   829,955   5.86  Other assets  4,611,077       4,650,555       4,638,071  Total assets $ 61,502,768      $ 62,865,338      $ 61,256,868  Liabilities and shareholders' equity  Interest bearing liabilities:  Savings, NOW and money market deposits $ 26,345,983  $ 200,221   3.04   $ 25,928,201  $ 214,489   3.31 %  $ 24,793,452  $ 232,506   3.75 % Time deposits  11,570,758   125,069   4.32    13,530,980   158,716   4.69    12,599,395   151,065   4.80  Short-term borrowings  307,637   2,946   3.83    72,504   293   1.62    1,537,879   20,612   5.36  Long-term borrowings (4)  3,006,331   36,411   4.84    3,234,264   38,351   4.74    2,625,862   30,925   4.71  Total interest bearing liabilities  41,230,709   364,647   3.54    42,765,949   411,849   3.85    41,556,588   435,108   4.19  Non-interest bearing deposits  11,222,562       11,266,899       11,183,127  Other liabilities  1,591,320       1,577,331       1,791,458  Shareholders' equity  7,458,177       7,255,159       6,725,695  Total liabilities and shareholders' equity $ 61,502,768      $ 62,865,338      $ 61,256,868   Net interest income/interest rate spread (5)   $ 421,378   1.99 %    $ 424,277   1.90 %    $ 394,847   1.67 % Tax equivalent adjustment    (1,273 )       (1,300 )       (1,299 )  Net interest income, as reported   $ 420,105       $ 422,977       $ 393,548  Net interest margin (6)     2.95       2.91       2.78  Tax equivalent effect     0.01       0.01       0.01  Net interest margin on a fully tax equivalent basis (6)     2.96 %      2.92 %      2.79 %

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(1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate. (2) Loans are stated net of unearned income and include non-accrual loans. (3) The yield for securities that are classified as available for sale is based on the average historical amortized cost. (4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition. (5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis. (6) Net interest income as a percentage of total average interest earning assets.

SHAREHOLDERS 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 [email protected].

Contact: Travis Lan Senior Executive Vice President and Chief Financial Officer 973-686-5007

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