Valley National Bancorp

Latest Results (30.09.2025):

Valley National Bancorp reported a net income of $97.9 million, or $0.18 per diluted common share, for the third quarter of 2024. This marks an increase from the second quarter of 2024 and reflects ongoing progress towards the company’s strategic balance sheet goals. The bank has engaged in significant transactions to strengthen its commercial real estate portfolio and enhance financial flexibility, setting the stage for improved profitability in 2025.

Net Interest Income and Margin

For Q3 2024, Valley National Bancorp's net interest income on a tax equivalent basis reached $411.8 million, up by $8.8 million from Q2 2024 but slightly down by $1.8 million compared to Q3 2023. The net interest margin improved by 2 basis points to 2.86%, driven by higher yields on loans and targeted investments within the available-for-sale securities portfolio.

Loan Portfolio

Total loans decreased by $956.4 million, or 7.6%, to $49.4 billion as of September 30, 2024, primarily due to the transfer of over $800 million in performing commercial real estate loans. Conversely, commercial and industrial loans saw robust growth, increasing by $320.1 million, or 13.5%, to $9.8 billion, supported by solid organic expansion.

Deposits

Ending deposit balances rose by $283.8 million to $50.4 billion at September 30, 2024, compared to $50.1 billion at the end of June 2024. This growth was mainly due to higher direct commercial customer money market and non-interest-bearing deposits, partially offset by a decrease in time deposits.

Allowance and Provision for Credit Losses

The allowance for credit losses increased to $564.7 million, equivalent to 1.14% of total loans, up from $532.5 million in June 2024. The provision for credit losses in Q3 2024 was $75.0 million, reflecting higher reserves for commercial real estate loans and the impact of Hurricane Helene.

Credit Quality

Non-accrual loans remained stable at 0.60% of total loans, totaling $296.3 million. However, total accruing past due loans increased to 0.35%, largely due to two commercial real estate loans in early delinquency stages. Net loan charge-offs for the quarter were $42.9 million, including significant partial charge-offs from commercial real estate loans.

Non-Interest Income

Non-interest income grew by $9.5 million to $60.7 million in Q3 2024, driven by increases in other income, wealth management and trust fees, and service charges on deposits. This growth was partially offset by a mark-to-market loss related to loan sales and lower fees from commercial loan transactions.

Non-Interest Expense

Non-interest expenses decreased by $8.0 million to $269.5 million compared to Q2 2024. Savings were achieved through reduced technology, furniture, and equipment expenses, as well as lower professional and legal costs, despite higher occupancy expenses.

Efficiency Ratio

The efficiency ratio improved to 56.13% in Q3 2024 from 59.62% in Q2 2024, indicating better management of operating expenses relative to income.

Performance Ratios

For Q3 2024, Valley National Bancorp achieved an annualized return on average assets (ROA) of 0.63%, return on equity (ROE) of 5.70%, and tangible ROE of 8.06%. Adjusted for non-core income and charges, these metrics were slightly lower but still reflect solid performance.