Valley National Bancorp

Latest Results (20.11.2025):

Valley National Bancorp reported results for the fourth quarter of 2024: net income of $115.7 million ($0.20 per diluted common share) and adjusted (non‑GAAP) net income of $75.7 million ($0.13 per diluted common share). The quarter showed higher net interest income and a modestly expanded tax‑equivalent net interest margin, offset by elevated credit provisions, higher loan charge‑offs, and increased operating expenses; management expects margin improvement and profit momentum in 2025.

Overall results

Net income for Q4 2024 was $115.7 million ($0.20/diluted share) versus $97.9 million ($0.18) in Q3 2024 and $71.6 million ($0.13) in Q4 2023. Adjusted net income (non‑GAAP) was $75.7 million ($0.13) in Q4 2024 versus $96.8 million ($0.18) in Q3 2024 and $116.3 million ($0.22) in Q4 2023.

Net interest income & margin

Tax‑equivalent net interest income was $424.3 million in Q4 2024, up $12.5 million from Q3 2024 and $25.7 million year‑over‑year. TE net interest margin rose 6 bps to 2.92%, driven by a 31 bp decline in cost of total average deposits and higher yields from available‑for‑sale securities, partially offset by lower adjustable loan yields and loan sales.

Loan portfolio & CRE concentration

Total loans fell $555.6 million (annualized 4.5%) to $48.8 billion at Dec. 31, 2024, driven by CRE repayments and sales; the bank sold about $151 million of CRE loans and $76 million of residential mortgages. Loans held for sale dropped $817.5 million to $25.7 million. CRE concentration (CRE loans / risk‑based capital) fell to ~362% from 421% at Sept. 30, 2024.

Allowance, provisions & credit quality

Allowance for credit losses on loans was $573.3 million (1.17% of loans) at Dec. 31, 2024, up from $564.7 million (1.14%). Q4 provision for loan losses was $107.0 million (vs. $75.0M in Q3 2024 and $20.7M in Q4 2023). Accruing past due loans fell to $99.2 million (0.20% of loans); non‑accrual loans rose to $359.5 million (0.74%). Net loan charge‑offs were $98.3 million in Q4 2024, including $83.2 million related to four non‑performing commercial relationships.

Deposits

Non‑interest bearing deposits increased $274.9 million to $11.4 billion. Ending total deposits declined $320.1 million to $50.1 billion as a $1.7 billion increase in direct customer deposits was offset by a $2.0 billion reduction in indirect deposits (largely brokered CDs).

Non‑interest income & expense

Non‑interest income decreased $9.5 million to $51.2 million (Q4 vs Q3), affected by prior‑quarter litigation settlement income and Q4 net losses on loan sales of $4.7 million (including $7.9 million transaction costs). Non‑interest expense rose $9.1 million to $278.6 million, primarily from higher professional/legal and technology transformation costs.

Taxes, efficiency & performance ratios

Q4 2024 recorded an income tax benefit of $26.7 million (effective tax rate −29.9%) driven by reductions in uncertain tax positions. Efficiency ratio was 57.21% (vs. 56.13% in Q3 2024). Annualized ROA was 0.74%, ROE 6.38%, and tangible ROE 8.81%; adjusted (non‑core items) ROA 0.48%, ROE 4.17%, tangible ROE 5.76%.

Management outlook

CEO Ira Robbins highlighted balance sheet initiatives completed in 2024—incremental capital, improved funding mix, higher loan reserves, and greater loan diversity—and expects lower‑cost core deposit growth and yield curve normalization to support NIM expansion and profitability improvement in 2025, with continued focus on expense management and core commercial growth.