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UNITED STATES
SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549

FORM 8-K

CURRENT REPORT

PURSUANT TO SECTION 13 OR 15(d) OF THE
SECURITIES EXCHANGE ACT OF 1934
Date of report (Date of earliest event reported): October 24, 2024
Valley National Bancorp

(Exact Name of Registrant as Specified in Charter)

New Jersey1-1127722-2477875
(State or Other Jurisdiction
of Incorporation)
(Commission File Number)
(I.R.S. Employer
Identification Number)
One Penn Plaza,New York,New York10119
(Address of Principal Executive Offices)
(Zip Code)
Registrant’s telephone number, including area code (973) 305-8800

Check the appropriate box below if the Form 8-K filing is intended to simultaneously satisfy the filing obligation of the registrant under any of the following provisions (see General Instruction A.2. below):
☐
Written communications pursuant to Rule 425 under the Securities Act (17 CFR 230.425)
☐
Soliciting material pursuant to Rule 14a-12 under the Exchange Act (17 CFR 240.14a-12)
☐
Pre-commencement communications pursuant to Rule 14d-2(b) under the Exchange Act (17 CFR 240.14d-2(b))
☐
Pre-commencement communications pursuant to Rule 13e-4(c) under the Exchange Act (17 CFR 240.13e-4(c))
Securities registered pursuant to Section 12(b) of the Act:
Title of each classTrading SymbolsName of exchange on which registered
Common Stock, no par valueVLYThe Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series A, no par valueVLYPPThe Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series B, no par valueVLYPOThe Nasdaq Stock Market LLC
Non-Cumulative Perpetual Preferred Stock, Series C, no par valueVLYPNThe Nasdaq Stock Market LLC

Indicate by check mark whether the registrant is an emerging growth company as defined in Rule 405 of the Securities Act of 1933(§230.405 of this chapter) or Rule 12b-2 of the Securities Exchange Act of 1934 (§240.12b-2 of this chapter).
Emerging growth company ☐
If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. ☐



Item 2.02Results of Operations and Financial Condition.

On October 24, 2024, Valley National Bancorp (“Valley”) issued a press release announcing Valley’s financial results for the third quarter 2024. A copy of the press release is furnished herewith as Exhibit 99.1.

The information in this Item 2.02, including Exhibit 99.1 attached hereto, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Securities Exchange Act of 1934, as amended (the “Exchange Act”), or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act of 1933, as amended (the "Securities Act"), except as shall be expressly set forth by specific reference in such a filing.
Item 7.01
Regulation FD Disclosure.

Valley is furnishing presentation materials attached hereto as Exhibit 99.2 pursuant to Item 7.01 of Form 8-K. Valley is not undertaking to update these presentation materials. The information in this Item 7.01, including Exhibit 99.2, is being furnished and shall not be deemed “filed” for purposes of Section 18 of the Exchange Act, or otherwise subject to the liabilities of that section, nor shall it be incorporated by reference into a filing under the Securities Act, except as shall be expressly set forth by specific reference in such a filing. This report will not be deemed an admission as to the materiality of any information herein (including Exhibit 99.2).

Item 9.01Financial Statements and Exhibits.
(d)Exhibits.
Exhibit No.Description
99.1
99.2
104Cover Page Interactive Data File (embedded within the Inline XBRL document).



SIGNATURE

Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this report to be signed on its behalf by the undersigned hereunto duly authorized.

Dated: October 24, 2024
VALLEY NATIONAL BANCORP
By:
/s/ Michael D. Hagedorn
Michael D. Hagedorn
Senior Executive Vice President and
Chief Financial Officer
(Principal Financial Officer)



Exhibit 99.1
image.jpg
News Release


FOR IMMEDIATE RELEASEContact:Michael D. Hagedorn
Senior Executive Vice President and
Chief Financial Officer
973-872-4885

VALLEY NATIONAL BANCORP ANNOUNCES THIRD QUARTER 2024 RESULTS

NEW YORK, NY – October 24, 2024 -- Valley National Bancorp (NASDAQ:VLY), the holding company for Valley National Bank, today reported net income for the third quarter 2024 of $97.9 million, or $0.18 per diluted common share, as compared to the second quarter 2024 net income of $70.4 million, or $0.13 per diluted common share, and net income of $141.3 million, or $0.27 per diluted common share, for the third quarter 2023. Excluding all non-core income and charges, our adjusted net income (a non-GAAP measure) was $96.8 million, or $0.18 per diluted common share, for the third quarter 2024, $71.6 million, or $0.13 per diluted common share, for the second quarter 2024, and $136.4 million, or $0.26 per diluted common share, for the third quarter 2023. 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 third quarter’s financial results highlight the significant progress that we continue to make towards achieving our strategic balance sheet goals. On October 23, 2024, we entered into an agreement to sell performing commercial real estate loans expected to total over $800 million at a very modest discount of approximately 1 percent to a single investor. This economically compelling transaction is expected to close in the fourth quarter 2024 and reflects the strength and desirability of our commercial real estate portfolio. We have executed on a variety of strategic transactions this year that have notably strengthened our balance sheet and enhanced our financial flexibility.”
Mr. Robbins continued, "This quarter’s results also indicated the early stages of normalized profitability which we expect will accelerate as we enter 2025. Net interest income and non-interest income both improved meaningfully from the second quarter 2024, and our operating expenses were well-controlled and effectively unchanged on a year-over-year basis. While recent weather events weighed on the sequential provision improvement that we anticipated, our pre-provision earnings continued to improve during the third quarter and could set the stage for more stable results in the near future. And most importantly, our thoughts are with those affected by the recent hurricanes in our Florida markets and the other areas in the southeast. We are strongly committed to supporting our associates, clients and communities throughout the rebuilding and recovery process.”
Key financial highlights for the third quarter 2024:

•Net Interest Income and Margin: Net interest income on a tax equivalent basis of $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Our net interest margin on a tax equivalent basis also increased by 2 basis points to 2.86 percent in the third quarter 2024




Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


as compared to 2.84 percent for the second quarter 2024. The increases from the second quarter 2024 were mostly due to continued yield expansion on average loans and additional interest income and higher yields from targeted growth within our available for sale securities portfolio. See the "Net Interest Income and Margin" section below for more details.
•Loan Portfolio: Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024 mostly due to the transfer of performing commercial real estate loans totaling $823.1 million, net of unearned fees, to loans held for sale at September 30, 2024 and normal repayment activity mainly within the commercial real estate non-owner occupied and multi-family loans, as we continue to actively reduce these loan categories. Our commercial and industrial loans grew $320.1 million, or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 due to solid organic growth during the third quarter 2024. Residential mortgage and total consumer loans also increased modestly during the third quarter 2024. See the "Loans" section below for more details.
•Deposits: Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 as compared to $50.1 billion at June 30, 2024 mainly due to higher period-end direct commercial customer money market and non-interest bearing deposits, partially offset by a decline in time deposits. See the "Deposits" section below for more details.
•Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $564.7 million and $532.5 million at September 30, 2024 and June 30, 2024, respectively, representing 1.14 percent and 1.06 percent of total loans at each respective date. During the third quarter 2024, we recorded a provision for credit losses for loans of $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The third quarter 2024 provision reflects, among other factors, increased quantitative reserves allocated to commercial real estate loans, significant commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene, which hit Florida in late September 2024.
•Credit Quality: Non-accrual loans totaled $296.3 million, or 0.60 percent of total loans at September 30, 2024 as compared to $303.3 million, or 0.60 percent of total loans at June 30, 2024. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased to 0.35 percent of total loans at September 30, 2024 as compared to 0.14 percent at June 30, 2024 largely due to two well-secured commercial real estate loans at various stages of expected collection within the early stage delinquency categories. Net loan charge-offs totaled $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and third quarter 2023, respectively. The loan charge-offs in the third quarter 2024 included partial charge-offs totaling a combined $30.1 million related to two commercial real estate loan relationships. See the "Credit Quality" section below for more details.
•Non-Interest Income: Non-interest income increased $9.5 million to $60.7 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to increases in other income; wealth management and trust fees; and service charges on deposits totaling $11.2 million, $2.0 million, and $1.6 million, respectively. The increases in the aforementioned
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Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


categories were partially offset by a $5.8 million mark to market loss (recorded within net losses on sales of loans) associated with the performing commercial real estate loans transferred to loans held for sale at September 30, 2024, as well as lower swap fees related to commercial loan transactions (within capital market fees) and insurance commissions. The increase in other income was mostly the result of income from litigation settlements totaling $7.3 million for the third quarter 2024.
•Non-Interest Expense: Non-interest expense decreased $8.0 million to $269.5 million for the third quarter 2024 as compared to the second quarter 2024 largely due to a $6.2 million decrease in technology, furniture and equipment expense and a $3.8 million decrease in professional and legal expenses, partially offset by higher net occupancy expense during the third quarter 2024.
•Efficiency Ratio: Our efficiency ratio was 56.13 percent for the third quarter 2024 as compared to 59.62 percent and 56.72 percent for the second quarter 2024 and third quarter 2023, 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 0.63 percent, 5.70 percent and 8.06 percent for the third quarter 2024, respectively. Annualized ROA, ROE, and tangible ROE, adjusted for non-core income and charges, were 0.62 percent, 5.64 percent and 7.97 percent for the third quarter 2024, 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 $411.8 million for the third quarter 2024 increased $8.8 million compared to the second quarter 2024 and decreased $1.8 million as compared to the third quarter 2023. Interest income on a tax equivalent basis increased $27.1 million to $861.9 million for the third quarter 2024 as compared to the second quarter 2024. The increase was mostly due to higher yields on both new loan originations and adjustable rate loans, as well as higher yields and additional interest income from targeted purchases of taxable investments within the available for sale securities portfolio during the second and third quarter 2024. Total interest expense increased $18.3 million to $450.1 million for the third quarter 2024 as compared to the second quarter 2024 mainly due to an increase in average time deposit balances coupled with higher costs on most interest bearing deposit products. See the "Deposits" and "Other Borrowings" sections below for more details.
Net interest margin on a tax equivalent basis of 2.86 percent for the third quarter 2024 increased by 2 basis points from 2.84 percent for the second quarter 2024 and decreased 5 basis points from 2.91 percent for the third quarter 2023. The increase as compared to the second quarter 2024 was largely driven by the higher yield on average interest earning assets largely offset by an increase in the cost of average interest bearing liabilities. The yield on average interest earning assets increased by 10 basis points to 5.98 percent on a linked quarter basis largely due to higher yielding investment purchases and new loan originations during the second and third quarter 2024. The overall cost of average interest bearing liabilities increased 7 basis points to 4.22 percent for the third quarter 2024 as compared to the second quarter 2024 largely due to higher interest rates on deposits. Our cost of total
3




Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


average deposits was 3.25 percent for the third quarter 2024 as compared to 3.18 percent and 2.94 percent for the second quarter 2024 and the third quarter 2023, respectively.
Loans, Deposits and Other Borrowings
Loans. Total loans decreased $956.4 million, or 7.6 percent on an annualized basis, to $49.4 billion at September 30, 2024 from June 30, 2024. Commercial and industrial loans grew by $320.1 million , or 13.5 percent on an annualized basis, to $9.8 billion at September 30, 2024 from June 30, 2024 largely due to our continued strategic focus on the expansion of new loan production within this category. Total commercial real estate (including construction) loans decreased $1.4 billion to $30.4 billion at September 30, 2024 from June 30, 2024. This decline was primarily driven by the transfer of $823.1 million of commercial real estate loans, net of unearned loan fees, from the loans held for investment portfolio to loans held for sale as of September 30, 2024. In addition, we remained highly selective on new originations and projects in an effort to reduce commercial real estate loan concentrations, mainly within the non-owner occupied and multifamily loan categories. Automobile loan balances increased by $60.9 million, or 13.8 percent on an annualized basis, to $1.8 billion at September 30, 2024 from June 30, 2024 mainly due to continued consumer demand generated by our indirect auto dealer network and low prepayment activity within the portfolio. Other consumer loans decreased $42.4 million, or 15.3 percent on an annualized basis, to $1.1 billion at September 30, 2024 from June 30, 2024 primarily due to the negative impact of the high level of market interest rates on the demand and usage of collateralized personal lines of credit.
Deposits. Actual ending balances for deposits increased $283.8 million to $50.4 billion at September 30, 2024 from June 30, 2024 mainly due to an increase of $358.3 million in savings, NOW and money market deposits and an increase of $36.0 million in non-interest bearing deposits, partially offset by a decrease of $110.5 million in time deposits. Non-interest bearing deposit and savings, NOW and money market deposit balances increased at September 30, 2024 from June 30, 2024 mostly due to increases in national specialized deposits and higher direct commercial customer deposit accounts. Total indirect customer deposits (including both brokered money market and time deposits) totaled $9.1 billion in both September 30, 2024 and June 30, 2024. Non-interest bearing deposits; savings, NOW and money market deposits; and time deposits represented approximately 22 percent, 50 percent and 28 percent of total deposits as of September 30, 2024, respectively, as compared to 22 percent, 49 percent and 29 percent of total deposits as of June 30, 2024, respectively.
Other Borrowings. Short-term borrowings, consisting of securities sold under agreements to repurchase, decreased $5.5 million to $58.3 million at September 30, 2024 from June 30, 2024. Long-term borrowings totaled $3.3 billion at September 30, 2024 and also remained relatively unchanged as compared to June 30, 2024.
Credit Quality
Hurricanes Helene and Milton. In the early stages of the fourth quarter 2024, the credit quality of our Florida loan portfolio has remained resilient in the aftermath of Hurricane Helene, which hit Florida in late September 2024, and Hurricane Milton, which made landfall on October 9, 2024. At this time, there have been relatively few loan concessions (mostly in the form of loan payment deferrals up to 90 days) for distressed borrowers impacted by the hurricanes. However, we continue
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Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


to assess the impact of the hurricanes on our Florida client base and, where appropriate, we will work constructively with individual borrowers.
Non-Performing Assets (NPAs). Total NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, decreased $7.8 million to $305.1 million at September 30, 2024 as compared to June 30, 2024. Non-accrual loans decreased $7.0 million to $296.3 million at September 30, 2024 as compared to $303.3 million at June 30, 2024. Non-accrual construction and commercial real estate loans decreased $20.7 million and $9.3 million to $24.7 million and $113.8 million, respectively, at September 30, 2024 as compared to June 30, 2024 mainly due to loan payoffs during the third quarter 2024. The decreases in these loan categories were partially offset by two new non-accrual commercial and industrial loans totaling $19.0 million, as well as moderate increases in non-accrual residential mortgage and consumer loans at September 30, 2024. OREO decreased $887 thousand at September 30, 2024 from June 30, 2024 mostly due to the sale of one commercial property, which resulted in the recognition of an immaterial loss for the third quarter 2024.
Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $102.3 million to $174.7 million, or 0.35 percent of total loans, at September 30, 2024 as compared to $72.4 million, or 0.14 percent of total loans at June 30, 2024. Loans 30 to 59 days past due increased $69.1 million to $115.1 million at September 30, 2024 as compared to June 30, 2024 mainly due to a $74.5 million increase in commercial real estate loans, partially offset by a $7.0 million decline in consumer loan delinquencies. The increase in commercial real estate loans 30 to 59 days past due was mostly due to one new delinquent loan totaling $40.9 million, which is expected to be fully repaid, subject to the borrower's pending sale of certain collateral, as well as a few other new loan delinquencies. Loans 60 to 89 days past due increased $42.9 million to $54.8 million at September 30, 2024 as compared to June 30, 2024 mostly due to one well-secured commercial real estate loan totaling $43.9 million currently in the process of loan modification. Loans 90 days or more past due and still accruing interest decreased $9.7 million to $4.8 million at September 30, 2024 as compared to June 30, 2024 largely due to one $4.0 million construction loan that was fully repaid and one $4.2 million commercial real estate loan that migrated from this past due category to non-accrual loans during the third quarter 2024. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.

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Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


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 September 30, 2024, June 30, 2024 and September 30, 2023:

September 30, 2024June 30, 2024September 30, 2023
AllocationAllocationAllocation
as a % ofas a % ofas a % of
AllowanceLoanAllowanceLoanAllowanceLoan
AllocationCategoryAllocationCategoryAllocationCategory
($ in thousands)
Loan Category:
Commercial and industrial loans$166,365 1.70 %$149,243 1.57 %$133,988 1.44 %
Commercial real estate loans:
Commercial real estate249,608 0.93 246,316 0.87 191,562 0.68 
Construction59,420 1.70 54,777 1.54 53,485 1.40 
Total commercial real estate loans309,028 1.02 301,093 0.95 245,047 0.77 
Residential mortgage loans51,545 0.91 47,697 0.85 44,621 0.80 
Consumer loans:
Home equity3,303 0.57 3,077 0.54 3,689 0.67 
Auto and other consumer18,086 0.63 18,200 0.63 14,830 0.52 
Total consumer loans21,389 0.62 21,277 0.62 18,519 0.55 
Allowance for loan losses548,327 1.11 519,310 1.03 442,175 0.88 
Allowance for unfunded credit commitments16,344 13,231 20,170 
Total allowance for credit losses for loans$564,671 $532,541 $462,345 
Allowance for credit losses for loans as a % total loans1.14 %1.06 %0.92 %

Our loan portfolio, totaling $49.4 billion at September 30, 2024, had net loan charge-offs totaling $42.9 million for the third quarter 2024 as compared to $36.8 million and $5.5 million for the second quarter 2024 and the third quarter 2023, respectively. Total gross loan charge-offs in the third quarter 2024 included partial charge-offs totaling $30.1 million related to two non-performing commercial real estate loan relationships that had combined specific reserves of $25.9 million within the allowance for loan losses at June 30, 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 1.14 percent at September 30, 2024, 1.06 percent at June 30, 2024, and 0.92 percent at September 30, 2023. For the third quarter 2024, the provision for credit losses for loans totaled $75.0 million as compared to $82.1 million and $9.1 million for the second quarter 2024 and third quarter 2023, respectively. The provision for credit losses remained somewhat elevated for the third quarter 2024 largely due to higher quantitative reserves allocated to commercial real estate loans, commercial and industrial loan growth and $8.0 million of qualitative reserves related to the estimated impact of Hurricane Helene.
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Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


The allowance for unfunded credit commitments increased to $16.3 million at September 30, 2024 from $13.2 million at June 30, 2024 mainly due to increases in both non-cancellable construction commitments and commercial and industrial standby letters of credit.
As previously noted, we are currently evaluating the impact of Hurricane Milton, and we also continue to evaluate any further impact of Hurricane Helene, on our loan portfolio. While not anticipated based on information currently available, Hurricane Milton and unexpected losses from Hurricane Helene could result in a significant increase to the current hurricane related reserves within the allowance, loan charge-offs and our provision for the fourth quarter 2024.
Capital Adequacy
Valley's total risk-based capital, common equity Tier 1 capital, Tier 1 capital and Tier 1 leverage capital ratios were 12.56 percent, 9.57 percent, 10.29 percent and 8.40 percent, respectively, at September 30, 2024 as compared to 12.18 percent, 9.55 percent, 9.99 percent and 8.19 percent, respectively, at June 30, 2024. The increases in the total risk-based capital, Tier 1 capital and Tier 1 leverage ratios as compared to June 30, 2024 were largely due to Valley's issuance of 6.0 million shares of its 8.250 percent Fixed-Rate Reset Non-Cumulative Perpetual Preferred Stock, Series C on August 5, 2024. Net proceeds to Valley after deducting underwriting discounts, commissions and offering expenses were approximately $144.7 million.
Investor Conference Call
Valley will host a conference call with investors and the financial community at 11:00 AM (ET) today to discuss the third quarter 2024 earnings and related matters. 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, December 2, 2024. 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, Valley National Bank is a regional bank with over $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 www.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
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Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


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 the 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 an actual or threatened U.S. government shutdown, debt default or rating downgrade, instability or volatility in financial markets, 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 the outcome of the 2024 U.S. presidential election, geopolitical instabilities or events (including the Israel-Hamas war and the escalation and regional expansion thereof); natural and other disasters (including severe weather events, such as Hurricanes Helene and Milton); health emergencies; acts of terrorism; or other external events;
•the impact of potential instability within the U.S. financial sector in the aftermath of the banking failures in 2023 and continued volatility thereafter, 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, policy, 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;
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Valley National Bancorp (NASDAQ: VLY)
Third Quarter 2024 Earnings
October 24, 2024


•the inability to grow customer deposits to keep pace with 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;
•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;
•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, 2023.
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-
9


VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

SELECTED FINANCIAL DATA
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
($ in thousands, except for share data and stock price)20242024202320242023
FINANCIAL DATA:
Net interest income - FTE (1)
$411,812 $402,984 $413,657 $1,209,643 $1,272,390 
Net interest income$410,498 $401,685 $412,418 $1,205,731 $1,268,203 
Non-interest income60,671 51,213 58,664 173,299 173,038 
Total revenue471,169 452,898 471,082 1,379,030 1,441,241 
Non-interest expense269,471 277,497 267,133 827,278 822,270 
Pre-provision net revenue201,698 175,401 203,949 551,752 618,971 
Provision for credit losses75,024 82,070 9,117 202,294 29,604 
Income tax expense28,818 22,907 53,486 84,898 162,410 
Net income97,856 70,424 141,346 264,560 426,957 
Dividends on preferred stock6,117 4,108 4,127 14,344 12,031 
Net income available to common shareholders$91,739 $66,316 $137,219 $250,216 $414,926 
Weighted average number of common shares outstanding:
Basic509,227,538 509,141,252 507,650,668 508,904,353 507,580,197 
Diluted511,342,932 510,338,502 509,256,599 510,713,205 509,204,051 
Per common share data:
Basic earnings$0.18 $0.13 $0.27 $0.49 $0.82 
Diluted earnings0.18 0.13 0.27 0.49 0.81 
Cash dividends declared0.11 0.11 0.11 0.33 0.33 
Closing stock price - high9.34 8.02 10.30 10.80 12.59 
Closing stock price - low6.58 6.52 7.63 6.52 6.59 
FINANCIAL RATIOS:
Net interest margin2.85 %2.83 %2.90 %2.82 %2.99 %
Net interest margin - FTE (1)
2.86 2.84 2.91 2.83 3.00 
Annualized return on average assets0.63 0.46 0.92 0.57 0.93 
Annualized return on avg. shareholders' equity5.70 4.17 8.56 5.20 8.72 
NON-GAAP FINANCIAL DATA AND RATIOS: (2)
Basic earnings per share, as adjusted$0.18 $0.13 $0.26 $0.50 $0.84 
Diluted earnings per share, as adjusted0.18 0.13 0.26 0.50 0.84 
Annualized return on average assets, as adjusted0.62 %0.47 %0.89 %0.58 %0.96 %
Annualized return on average shareholders' equity, as adjusted5.64 4.24 8.26 5.27 8.94 
Annualized return on avg. tangible shareholders' equity8.06 5.95 12.39 7.40 12.71 
Annualized return on average tangible shareholders' equity, as adjusted7.97 6.05 11.95 7.50 13.04 
Efficiency ratio56.13 59.62 56.72 58.26 55.34 
AVERAGE BALANCE SHEET ITEMS:
Assets$62,242,022$61,518,639$61,391,688$61,674,588$61,050,973
Interest earning assets57,651,65056,772,95056,802,56557,016,79056,510,997
Loans50,126,96350,020,90150,019,41450,131,46849,120,153
Interest bearing liabilities42,656,95641,576,34440,829,07841,932,61639,802,966
Deposits50,409,23449,383,20949,848,44649,459,61748,165,152
Shareholders' equity6,862,5556,753,9816,605,7866,781,0226,531,424

10


VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

As Of
BALANCE SHEET ITEMS:September 30,June 30,March 31,December 31,September 30,
(In thousands)20242024202420232023
Assets$62,092,332$62,058,974$61,000,188$60,934,974$61,183,352
Total loans49,355,31950,311,70249,922,04250,210,29550,097,519
Deposits50,395,96650,112,17749,077,94649,242,82949,885,314
Shareholders' equity6,972,3806,737,7376,727,1396,701,3916,627,299
LOANS:
(In thousands)
Commercial and industrial$9,799,287$9,479,147$9,104,193$9,230,543$9,274,630
Commercial real estate:
Non-owner occupied12,647,64913,710,01514,962,85115,078,46414,741,668
Multifamily8,612,9368,976,2648,818,2638,860,2198,863,529
Owner occupied5,654,1475,536,8444,367,8394,304,5564,435,853
Construction3,487,4643,545,7233,556,5113,726,8083,833,269
Total commercial real estate30,402,19631,768,84631,705,46431,970,04731,874,319
Residential mortgage5,684,0795,627,1135,618,3555,569,0105,562,665
Consumer:
Home equity581,181566,467564,083559,152548,918
Automobile1,823,7381,762,8521,700,5081,620,3891,585,987
Other consumer1,064,8381,107,2771,229,4391,261,1541,251,000
Total consumer loans3,469,7573,436,5963,494,0303,440,6953,385,905
Total loans$49,355,319$50,311,702$49,922,042$50,210,295$50,097,519
CAPITAL RATIOS:
Book value per common share$13.00 $12.82 $12.81 $12.79 $12.64 
Tangible book value per common share (2)
9.06 8.87 8.84 8.79 8.63 
Tangible common equity to tangible assets (2)
7.68 %7.52 %7.62 %7.58 %7.40 %
Tier 1 leverage capital8.40 8.19 8.20 8.16 8.08 
Common equity tier 1 capital9.57 9.55 9.34 9.29 9.21 
Tier 1 risk-based capital10.29 9.99 9.78 9.72 9.64 
Total risk-based capital12.56 12.18 11.88 11.76 11.68 
11


VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

Three Months EndedNine Months Ended
ALLOWANCE FOR CREDIT LOSSES:
September 30,June 30,September 30,September 30,
($ in thousands)20242024202320242023
Allowance for credit losses for loans
Beginning balance $532,541$487,269$458,676$465,550$483,255
Impact of the adoption of ASU No. 2022-02————(1,368)
Beginning balance, adjusted532,541487,269458,676465,550481,887
Loans charged-off:
Commercial and industrial(7,501)(14,721)(7,487)(36,515)(37,399)
Commercial real estate(33,292)(22,144)(255)(56,640)(2,320)
Construction(4,831)(212)—(12,637)(9,906)
Residential mortgage——(20)—(169)
Total consumer(2,597)(1,262)(1,156)(5,668)(3,024)
Total loans charged-off(48,221)(38,339)(8,918)(111,460)(52,818)
Charged-off loans recovered:
Commercial and industrial3,1627423,0434,5866,615
Commercial real estate66150545733
Construction1,535——1,535—
Residential mortgage2953059186
Total consumer5216033621,5211,513
Total loans recovered5,3131,5003,4408,1588,347
Total net charge-offs(42,908)(36,839)(5,478)(103,302)(44,471)
Provision for credit losses for loans75,03882,1119,147202,42324,929
Ending balance$564,671$532,541$462,345$564,671$462,345
Components of allowance for credit losses for loans:
Allowance for loan losses$548,327$519,310$442,175$548,327$442,175
Allowance for unfunded credit commitments16,34413,23120,17016,34420,170
Allowance for credit losses for loans$564,671$532,541$462,345$564,671$462,345
Components of provision for credit losses for loans:
Provision for credit losses for loans$71,925$86,901$11,221$205,549$29,359
Provision (credit) for unfunded credit commitments3,113(4,790)(2,074)(3,126)(4,430)
Total provision for credit losses for loans$75,038$82,111$9,147$202,423$24,929
Annualized ratio of total net charge-offs to total average loans0.34 %0.29 %0.04 %0.27 %0.12 %
Allowance for credit losses for loans as a % of total loans
1.14 %1.06 %0.92 %1.14 %0.92 %

12


VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

As Of
ASSET QUALITY:September 30,June 30,March 31,December 31,September 30,
($ in thousands)20242024202420232023
Accruing past due loans:
30 to 59 days past due:
Commercial and industrial$4,537 $5,086 $6,202 $9,307 $10,687 
Commercial real estate76,370 1,879 5,791 3,008 8,053 
Residential mortgage19,549 17,389 20,819 26,345 13,159 
Total consumer14,672 21,639 14,032 20,554 15,509 
Total 30 to 59 days past due115,128 45,993 46,844 59,214 47,408 
60 to 89 days past due:
Commercial and industrial1,238 1,621 2,665 5,095 5,720 
Commercial real estate43,926 — 3,720 1,257 2,620 
Residential mortgage6,892 6,632 5,970 8,200 9,710 
Total consumer2,732 3,671 1,834 4,715 1,720 
Total 60 to 89 days past due54,788 11,924 14,189 19,267 19,770 
90 or more days past due:
Commercial and industrial1,786 2,739 5,750 5,579 6,629 
Commercial real estate— 4,242 — — — 
Construction— 3,990 3,990 3,990 3,990 
Residential mortgage1,931 2,609 2,884 2,488 1,348 
Total consumer1,063 898 731 1,088 391 
Total 90 or more days past due4,780 14,478 13,355 13,145 12,358 
Total accruing past due loans$174,696 $72,395 $74,388 $91,626 $79,536 
Non-accrual loans:
Commercial and industrial$120,575 $102,942 $102,399 $99,912 $87,655 
Commercial real estate113,752 123,011 100,052 99,739 83,338 
Construction24,657 45,380 51,842 60,851 62,788 
Residential mortgage33,075 28,322 28,561 26,986 21,614 
Total consumer4,260 3,624 4,438 4,383 3,545 
Total non-accrual loans296,319 303,279 287,292 291,871 258,940 
Other real estate owned (OREO) 7,172 8,059 88 71 71 
Other repossessed assets1,611 1,607 1,393 1,444 1,314 
Total non-performing assets$305,102 $312,945 $288,773 $293,386 $260,325 
Total non-accrual loans as a % of loans0.60 %0.60 %0.58 %0.58 %0.52 %
Total accruing past due and non-accrual loans as a % of loans
0.95 0.75 0.72 0.76 0.68 
Allowance for losses on loans as a % of non-accrual loans
185.05 171.23 163.33 152.83 170.76 

13


VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS
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 EndedNine Months Ended
September 30,June 30,September 30,September 30,
($ in thousands, except for share data)20242024202320242023
Adjusted net income available to common shareholders (non-GAAP):
Net income, as reported (GAAP)$97,856 $70,424 $141,346 $264,560 $426,957 
Add: FDIC Special assessment (a)
— 1,363 — 8,757 — 
Add: Losses on available for sale and held to maturity debt securities, net (b)
1 4 443 12 476 
Add: Restructuring charge (c)
— 334 (675)954 10,507 
Add: Mark to market loss on commercial real estate loans transferred to loans held for sale (d)
5,794 — — 5,794 — 
Add: Provision for credit losses for available for sale securities (e)
— — — — 5,000 
Add: Merger related expenses (f)
— — — — 4,133 
Less: Litigation settlements (g)
(7,334)— — (7,334)— 
Less: Gain on sale of commercial premium finance lending division (h)
— — — (3,629)— 
Less: Net gains on sales of office buildings (h)
— — (6,721)— (6,721)
Total non-GAAP adjustments to net income(1,539)1,701 (6,953)4,554 13,395 
Income tax adjustments related to non-GAAP adjustments (i)
437 (482)1,970 (1,269)(2,378)
Net income, as adjusted (non-GAAP)$96,754 $71,643 $136,363 $267,845 $437,974 
Dividends on preferred stock6,117 4,108 4,127 14,344 12,031 
Net income available to common shareholders, as adjusted (non-GAAP)$90,637 $67,535 $132,236 $253,501 $425,943 
__________
(a) Included in the FDIC insurance expense.
(b) Included in gains (losses) on securities transactions, net.
(c) Represents severance expense related to workforce reductions within salary and employee benefits expense.
(d) Included in (losses) gains on sales of loans, net.
(e) Included in provision for credit losses for available for sale and held to maturity securities (tax disallowed).
(f) Included in salary and employee benefits expense during the first quarter 2023.
(g) Represents recoveries from legal settlements included in other income.
(h) Included in gains (losses) on sales of assets, net within non-interest income.
(i) 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)$90,637 $67,535 $132,236 $253,501 $425,943 
Average number of shares outstanding509,227,538 509,141,252 507,650,668 508,904,353 507,580,197 
Basic earnings, as adjusted (non-GAAP)$0.18 $0.13 $0.26 $0.50 $0.84 
Average number of diluted shares outstanding511,342,932 510,338,502 509,256,599 510,713,205 509,204,051 
Diluted earnings, as adjusted (non-GAAP)$0.18 $0.13 $0.26 $0.50 $0.84 
Adjusted annualized return on average tangible shareholders' equity (non-GAAP):
Net income, as adjusted (non-GAAP)$96,754 $71,643 $136,363 $267,845 $437,974 
Average shareholders' equity$6,862,555 $6,753,981 $6,605,786 $6,781,022 $6,531,424 
Less: Average goodwill and other intangible assets2,008,692 2,016,766 2,042,486 2,016,790 2,051,727 
Average tangible shareholders' equity$4,853,863 $4,737,215 $4,563,300 $4,764,232 $4,479,697 
Annualized return on average tangible shareholders' equity, as adjusted (non-GAAP)7.97 %6.05 %11.95 %7.50 %13.04 %
14


VALLEY NATIONAL BANCORP
CONSOLIDATED FINANCIAL HIGHLIGHTS

Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
($ in thousands, except for share data)20242024202320242023
Adjusted annualized return on average assets (non-GAAP):
Net income, as adjusted (non-GAAP)$96,754 $71,643 $136,363 $267,845 $437,974 
Average assets$62,242,022 $61,518,639 $61,391,688 $61,674,588 $61,050,973 
Annualized return on average assets, as adjusted (non-GAAP)0.62 %0.47 %0.89 %0.58 %0.96 %
Adjusted annualized return on average shareholders' equity (non-GAAP):
Net income, as adjusted (non-GAAP)$96,754 $71,643 $136,363 $267,845 $437,974 
Average shareholders' equity$6,862,555 $6,753,981 $6,605,786 $6,781,022 $6,531,424 
Annualized return on average shareholders' equity, as adjusted (non-GAAP)5.64 %4.24 %8.26 %5.27 %8.94 %
Annualized return on average tangible shareholders' equity (non-GAAP):
Net income, as reported (GAAP)$97,856 $70,424 $141,346 $264,560 $426,957 
Average shareholders' equity$6,862,555 $6,753,981 $6,605,786 $6,781,022 $6,531,424 
Less: Average goodwill and other intangible assets2,008,692 2,016,766 2,042,486 2,016,790 2,051,727 
Average tangible shareholders' equity$4,853,863 $4,737,215 $4,563,300 $4,764,232 $4,479,697 
Annualized return on average tangible shareholders' equity (non-GAAP)8.06 %5.95 %12.39 %7.40 %12.71 %
Efficiency ratio (non-GAAP):
Non-interest expense, as reported (GAAP)$269,471 $277,497 $267,133 $827,278 $822,270 
Less: FDIC Special assessment (pre-tax)— 1,363 — 8,757 — 
Less: Restructuring charge (pre-tax)— 334 (675)954 10,507 
Less: Merger-related expenses (pre-tax)— — — — 4,133 
Less: Amortization of tax credit investments (pre-tax)5,853 5,791 4,191 17,206 13,462 
Non-interest expense, as adjusted (non-GAAP)$263,618 $270,009 $263,617 $800,361 $794,168 
Net interest income, as reported (GAAP)410,498 401,685 412,418 1,205,731 1,268,203 
Non-interest income, as reported (GAAP)60,671 51,213 58,664 173,299 173,038 
Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax)1 4 443 12 476 
Add: Mark to market loss on commercial real estate loans transferred to loans held for sale (pre-tax)5,794 — — 5,794 — 
Less: Litigation settlements (pre-tax)(7,334)— — (7,334)— 
Less: Gain on sale of premium finance division (pre-tax)— — — (3,629)— 
Less: Net gains on sales of office buildings (pre-tax) — — (6,721)— (6,721)
Non-interest income, as adjusted (non-GAAP)$59,132 $51,217 $52,386 $168,142 $166,793 
Gross operating income, as adjusted (non-GAAP)$469,630 $452,902 $464,804 $1,373,873 $1,434,996 
Efficiency ratio (non-GAAP)56.13 %59.62 %56.72 %58.26 %55.34 %
As of
September 30,June 30,March 31,December 31,September 30,
($ in thousands, except for share data)20242024202420232023
Tangible book value per common share (non-GAAP):
Common shares outstanding509,252,936 509,205,014 508,893,059 507,709,927 507,660,742 
Shareholders' equity (GAAP)$6,972,380 $6,737,737 $6,727,139 $6,701,391 $6,627,299 
Less: Preferred stock354,345 209,691 209,691 209,691 209,691 
Less: Goodwill and other intangible assets2,004,414 2,012,580 2,020,405 2,029,267 2,038,202 
Tangible common shareholders' equity (non-GAAP)$4,613,621 $4,515,466 $4,497,043 $4,462,433 $4,379,406 
Tangible book value per common share (non-GAAP)$9.06 $8.87 $8.84 $8.79 $8.63 
Tangible common equity to tangible assets (non-GAAP):
Tangible common shareholders' equity (non-GAAP)$4,613,621 $4,515,466 $4,497,043 $4,462,433 $4,379,406 
Total assets (GAAP)62,092,332 62,058,974 61,000,188 60,934,974 61,183,352 
Less: Goodwill and other intangible assets2,004,414 2,012,580 2,020,405 2,029,267 2,038,202 
Tangible assets (non-GAAP)$60,087,918 $60,046,394 $58,979,783 $58,905,707 $59,145,150 
Tangible common equity to tangible assets (non-GAAP)7.68 %7.52 %7.62 %7.58 %7.40 %
15



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


September 30,December 31,
20242023
 (Unaudited)
Assets
Cash and due from banks$511,945 $284,090 
Interest bearing deposits with banks527,960 607,135 
Investment securities:
Equity securities73,071 64,464 
Trading debt securities3,996 3,973 
Available for sale debt securities2,602,260 1,296,576 
Held to maturity debt securities (net of allowance for credit losses of $1,076 at September 30, 2024 and $1,205 at December 31, 2023)
3,573,960 3,739,208 
Total investment securities6,253,287 5,104,221 
Loans held for sale (includes fair value of $17,153 at September 30, 2024 and $20,640 at December 31, 2023 for loans originated for sale)
843,201 30,640 
Loans49,355,319 50,210,295 
Less: Allowance for loan losses(548,327)(446,080)
Net loans48,806,992 49,764,215 
Premises and equipment, net356,649 381,081 
Lease right of use assets335,032 343,461 
Bank owned life insurance730,081 723,799 
Accrued interest receivable250,131 245,498 
Goodwill1,868,936 1,868,936 
Other intangible assets, net135,478 160,331 
Other assets1,472,640 1,421,567 
Total Assets$62,092,332 $60,934,974 
Liabilities
Deposits:
Non-interest bearing$11,153,754 $11,539,483 
Interest bearing:
Savings, NOW and money market25,069,405 24,526,622 
Time14,172,807 13,176,724 
Total deposits50,395,966 49,242,829 
Short-term borrowings58,268 917,834 
Long-term borrowings3,274,340 2,328,375 
Junior subordinated debentures issued to capital trusts57,368 57,108 
Lease liabilities394,971 403,781 
Accrued expenses and other liabilities939,039 1,283,656 
Total Liabilities55,119,952 54,233,583 
Shareholders’ Equity
Preferred stock, no par value; 50,000,000 authorized shares:
Series A (4,600,000 shares issued at September 30, 2024 and December 31, 2023)111,590 111,590 
Series B (4,000,000 shares issued at September 30, 2024 and December 31, 2023)98,101 98,101 
Series C (6,000,000 shares issued at September 30, 2024)
144,654 — 
Common stock (no par value, authorized 650,000,000 shares; issued 509,252,936 shares at September 30, 2024 and 507,896,910 shares at December 31, 2023)178,661 178,187 
Surplus5,002,718 4,989,989 
Retained earnings1,551,428 1,471,371 
Accumulated other comprehensive loss(114,772)(146,456)
Treasury stock, at cost (186,983 common shares at December 31, 2023)— (1,391)
Total Shareholders’ Equity6,972,380 6,701,391 
Total Liabilities and Shareholders’ Equity$62,092,332 $60,934,974 
16



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





Three Months EndedNine Months Ended
September 30,June 30,September 30,September 30,
20242024202320242023
Interest Income
Interest and fees on loans$786,680 $770,964 $753,638 $2,329,197 $2,124,036 
Interest and dividends on investment securities:
Taxable49,700 40,460 32,383 125,957 96,591 
Tax-exempt4,855 4,799 4,585 14,450 15,485 
Dividends5,929 6,341 5,299 19,098 18,001 
Interest on federal funds sold and other short-term investments13,385 10,902 17,113 33,969 66,594 
Total interest income860,549 833,466 813,018 2,522,671 2,320,707 
Interest Expense
Interest on deposits:
Savings, NOW and money market235,371 231,597 201,916 699,474 517,524 
Time174,741 160,442 164,336 486,248 370,398 
Interest on short-term borrowings451 691 5,189 21,754 89,345 
Interest on long-term borrowings and junior subordinated debentures39,488 39,051 29,159 109,464 75,237 
Total interest expense450,051 431,781 400,600 1,316,940 1,052,504 
Net Interest Income410,498 401,685 412,418 1,205,731 1,268,203 
(Credit) provision for credit losses for available for sale and held to maturity securities(14)(41)(30)(129)4,675 
Provision for credit losses for loans75,038 82,111 9,147 202,423 24,929 
Net Interest Income After Provision for Credit Losses335,474 319,615 403,301 1,003,437 1,238,599 
Non-Interest Income
Wealth management and trust fees15,125 13,136 11,417 46,191 32,180 
Insurance commissions2,880 3,958 2,336 9,089 7,895 
Capital markets6,347 7,779 7,141 19,796 35,000 
Service charges on deposit accounts12,826 11,212 10,952 35,287 31,970 
Gains (losses) on securities transactions, net47 3 (398)99 197 
Fees from loan servicing3,443 2,691 2,681 9,322 8,054 
(Losses) gains on sales of loans, net(3,644)884 2,023 (1,142)3,752 
Gains (losses) on sales of assets, net55 (2)6,653 3,747 6,938 
Bank owned life insurance5,387 4,545 2,709 13,167 7,736 
Other18,205 7,007 13,150 37,743 39,316 
Total non-interest income60,671 51,213 58,664 173,299 173,038 
Non-Interest Expense
Salary and employee benefits expense138,832 140,815 137,292 421,478 431,872 
Net occupancy expense26,973 24,252 24,675 75,548 73,880 
Technology, furniture and equipment expense28,962 35,203 37,320 99,627 106,304 
FDIC insurance assessment14,792 14,446 7,946 47,474 27,527 
Amortization of other intangible assets8,692 8,568 9,741 26,672 30,072 
Professional and legal fees14,118 17,938 17,109 48,521 55,329 
Amortization of tax credit investments5,853 5,791 4,191 17,206 13,462 
Other31,249 30,484 28,859 90,752 83,824 
Total non-interest expense269,471 277,497 267,133 827,278 822,270 
Income Before Income Taxes126,674 93,331 194,832 349,458 589,367 
Income tax expense28,818 22,907 53,486 84,898 162,410 
Net Income97,856 70,424 141,346 264,560 426,957 
Dividends on preferred stock6,117 4,108 4,127 14,344 12,031 
Net Income Available to Common Shareholders$91,739 $66,316 $137,219 $250,216 $414,926 

17



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

Three Months Ended
September 30, 2024June 30, 2024September 30, 2023
 AverageAvg. AverageAvg. AverageAvg.
($ in thousands) BalanceInterestRate BalanceInterestRate BalanceInterestRate
Assets
Interest earning assets:
Loans (1)(2)
$50,126,963 $786,704 6.28 %$50,020,901 $770,987 6.17 %$50,019,414 $753,662 6.03 %
Taxable investments (3)
5,977,211 55,629 3.72 5,379,101 46,801 3.48 4,915,778 37,682 3.07 
Tax-exempt investments (1)(3)
573,059 6,145 4.29 575,272 6,075 4.22 620,439 5,800 3.74 
Interest bearing deposits with banks974,417 13,385 5.49 797,676 10,902 5.47 1,246,934 17,113 5.49 
Total interest earning assets57,651,650 861,863 5.98 56,772,950 834,765 5.88 56,802,565 814,257 5.73 
Other assets4,590,372 4,745,689 4,589,123 
Total assets$62,242,022 $61,518,639 $61,391,688 
Liabilities and shareholders' equity
Interest bearing liabilities:
Savings, NOW and money market deposits
$25,017,504 $235,371 3.76 %$24,848,266 $231,597 3.73 %$23,016,737 $201,916 3.51 %
Time deposits14,233,209 174,741 4.91 13,311,381 160,442 4.82 14,880,311 164,336 4.42 
Short-term borrowings81,251 451 2.22 97,502 691 2.83 436,518 5,189 4.75 
Long-term borrowings (4)
3,324,992 39,488 4.75 3,319,195 39,051 4.71 2,495,512 29,159 4.67 
Total interest bearing liabilities42,656,956 450,051 4.22 41,576,344 431,781 4.15 40,829,078 400,600 3.92 
Non-interest bearing deposits11,158,521 11,223,562 11,951,398 
Other liabilities1,563,990 1,964,752 2,005,426 
Shareholders' equity6,862,555 6,753,981 6,605,786 
Total liabilities and shareholders' equity$62,242,022 $61,518,639 $61,391,688 
Net interest income/interest rate spread (5)
$411,812 1.76 %$402,984 1.73 %$413,657 1.81 %
Tax equivalent adjustment(1,314)(1,299)(1,239)
Net interest income, as reported$410,498 $401,685 $412,418 
Net interest margin (6)
2.85 2.83 2.90 
Tax equivalent effect0.01 0.01 0.01 
Net interest margin on a fully tax equivalent basis (6)
2.86 %2.84 %2.91 %
(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 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 tzarkadas@valley.com.
18

Exhibit 99.2

 
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4Q24 1Q25 2Q25 3Q25 4Q25 2026 2027 2028 2029 2030 2031 and Beyond 15

 
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0.99 % 1.03 % 19

 
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© 2024 Valley Bank. All rights reserved. Please see www.valley.com for further details. ▪ ▪ ▪ ▪

 
v3.24.3
Cover
Oct. 24, 2024
Document Information [Line Items]  
Document Type 8-K
Document Period End Date Oct. 24, 2024
Entity Registrant Name Valley National Bancorp
Entity Incorporation, State or Country Code NJ
Entity File Number 1-11277
Entity Tax Identification Number 22-2477875
Entity Address, Address Line One One Penn Plaza,
Entity Address, City or Town New York,
Entity Address, State or Province NY
Entity Address, Postal Zip Code 10119
City Area Code 973
Local Phone Number 305-8800
Written Communications false
Soliciting Material false
Pre-commencement Tender Offer false
Pre-commencement Issuer Tender Offer false
Entity Emerging Growth Company false
Entity Central Index Key 0000714310
Amendment Flag false
NASDAQ - ALL MARKETS [Member] | Common Stock, No Par Value [Member]  
Document Information [Line Items]  
Title of 12(b) Security Common Stock, no par value
Trading Symbol VLY
Security Exchange Name NASDAQ
NASDAQ - ALL MARKETS [Member] | Non-Cumulative Perpetual Preferred Stock, Series A, No Par Value [Member]  
Document Information [Line Items]  
Title of 12(b) Security Non-Cumulative Perpetual Preferred Stock, Series A, no par value
Trading Symbol VLYPP
Security Exchange Name NASDAQ
NASDAQ - ALL MARKETS [Member] | Non-Cumulative Perpetual Preferred Stock, Series B, No Par Value [Member]  
Document Information [Line Items]  
Title of 12(b) Security Non-Cumulative Perpetual Preferred Stock, Series B, no par value
Trading Symbol VLYPO
Security Exchange Name NASDAQ
NASDAQ - ALL MARKETS [Member] | Non-Cumulative Perpetual Preferred Stock, Series C, No Par Value  
Document Information [Line Items]  
Title of 12(b) Security Non-Cumulative Perpetual Preferred Stock, Series C, no par value
Trading Symbol VLYPN
Security Exchange Name NASDAQ
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