View on SEC.gov| News Release |
| FOR IMMEDIATE RELEASE | Contact: | Travis Lan | |||||||||
| Senior Executive Vice President and | |||||||||||
| Chief Financial Officer | |||||||||||
| 973-686-5007 |
VALLEY NATIONAL BANCORP ANNOUNCES SECOND QUARTER 2026 RESULTS
NEW YORK, NY – July 23, 2026 -- Valley National Bancorp (NASDAQ: VLY), the holding company for Valley National Bank, today reported net income for the second quarter 2026 of $170.9 million, or $0.29 per diluted common share, as compared to the first quarter 2026 net income of $163.9 million, or $0.28 per diluted common share, and net income of $133.2 million, or $0.22 per diluted common share, for the second quarter 2025. Excluding all non-core charges, our adjusted net income (a non-GAAP measure) was $172.8 million, or $0.30 per diluted common share, for the second quarter 2026, $168.9 million, or $0.29 per diluted common share, for the first quarter 2026, and $134.4 million, or $0.23 per diluted common share, for the second quarter 2025. See further details below, including a reconciliation of our non-GAAP adjusted net income, in the "Consolidated Financial Highlights" tables.
Ira Robbins, CEO, commented, "This quarter's strong results reflect the continued execution of our strategic vision. Despite continued competition across our geographies and business lines, our relationship-led value proposition has resulted in strong non-interest bearing deposit and C&I loan growth."
Mr. Robbins continued, "At the same time, we remain focused on operational efficiency and the re-allocation of resources from manual processing to franchise-enhancing customer acquisition areas. We anticipate further financial improvement through the remainder of the year and we look forward to continuing to create long-term value for our shareholders."
Key financial highlights for the second quarter 2026:
- Net Interest Margin and Income: Our net interest margin on a tax equivalent basis of 3.20 percent for the second quarter 2026 increased 3 basis points and 19 basis points from the first quarter 2026 and second quarter 2025, respectively. Net interest income on a tax equivalent basis of $488.4 million for the second quarter 2026 increased $15.6 million and $54.7 million compared to the first quarter 2026 and second quarter 2025, respectively. The increase in net interest income from the first quarter 2026 was mainly driven by an increase in average loans, higher yields on new loan originations and investment securities purchased, as well as one additional day during the second quarter 2026. These tailwinds were partially offset by the cost of carrying excess subordinated notes between the time of our successful issuance of $500 million of new notes in May 2026 and the redemption of $300 million of callable notes in June 2026. See additional details in the "Net Interest Income and Margin" and "Other Borrowings" sections below.
Valley National Bancorp (NASDAQ: VLY)
Second Quarter 2026 Earnings
July 23, 2026
- Deposits: Total deposit balances increased $1.3 billion to $54.1 billion at June 30, 2026 as compared to $52.9 billion at March 31, 2026. Direct customer deposits increased $1.1 billion during the second quarter 2026 mainly due to inflows from retail CD offerings and growth in our commercial customer deposits. Non-interest bearing deposits increased $298.6 million reflecting continued expansion of relationships with commercial banking customers during the second quarter 2026. See the "Deposits" section below for more details.
- Loan Portfolio: Total loans increased $1.6 billion, or 12.9 percent on an annualized basis, to $52.5 billion at June 30, 2026 from March 31, 2026 mostly due to increases of $857.2 million and $638.9 million in commercial and industrial (C&I) loans and total commercial real estate (CRE) loans, respectively. Loan originations from a range of relationship-driven small to midsize clients continued to drive the growth in C&I loans during the second quarter 2026, while new owner occupied and select multifamily loan originations were the primary contributors to the growth in the CRE loan portfolio at June 30, 2026. Our CRE loan concentration ratio (defined as total CRE loans held for investment and held for sale, excluding owner occupied loans, as a percentage of total risk-based capital) continued to decline to approximately 317 percent at June 30, 2026 from 329 percent at March 31, 2026 largely due to organic capital accretion and a $200 million increase in (Tier 2) total risk-based capital during the quarter. See the "Loans" section below for more details.
- Allowance and Provision for Credit Losses for Loans: The allowance for credit losses for loans totaled $606.9 million and $599.8 million at June 30, 2026 and March 31, 2026, respectively, representing 1.16 percent and 1.18 percent of total loans at each respective date. During the second quarter 2026, we recorded a provision for credit losses for loans of $29.2 million as compared to $21.2 million and $37.8 million for the first quarter 2026 and second quarter 2025, respectively. See the "Credit Quality" section below for more details.
- Credit Quality: Net loan charge-offs totaled $22.0 million for the second quarter 2026 as compared to $17.5 million and $37.8 million for the first quarter 2026 and second quarter 2025, respectively. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $52.3 million to $180.2 million, or 0.34 percent of total loans, at June 30, 2026 as compared to $127.9 million, or 0.25 percent of total loans, at March 31, 2026. The increase was mainly due to a few larger CRE loans within the 30 to 59 days past due delinquency category. Non-accrual loans totaled $462.6 million, or 0.88 percent of total loans, at June 30, 2026 as compared to $432.6 million, or 0.85 percent of total loans, at March 31, 2026. See the "Credit Quality" section below for more details.
- Non-Interest Income: Non-interest income increased $4.9 million to $73.7 million for the second quarter 2026 as compared to the first quarter 2026 mainly driven by $2.6 million and $1.6 million increases in capital markets, and wealth management and trust fees, respectively. The fee increases were largely due to increased transaction volumes within loan participations and syndications and tax credit advisory services during the second quarter 2026.
- Non-Interest Expense: Non-interest expense increased $1.2 million to $311.1 million for the second quarter 2026 as compared to the first quarter 2026. The increase was largely driven by a $4.4 million increase in professional and legal fees mostly due to higher third-party managed services and consulting fees related to our operational transformation efforts, as well as incremental increases in technology and FDIC assessment expenses. These items were partially offset by a $5.3 million decrease in salary and employee benefits expense during the second quarter 2026 largely resulting from our continued focus on resource optimization, as well as the normal seasonal decline in payroll taxes from the first quarter 2026.
- Efficiency Ratio: Our efficiency ratio was 52.11 percent for the second quarter 2026 as compared to 53.10 percent and 55.20 percent for the first quarter 2026 and second quarter 2025, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.
- Performance Ratios: Annualized return on average assets (ROA), shareholders’ equity (ROE) and tangible common shareholders' equity (ROTCE) were 1.04 percent, 8.65 percent and 11.91 percent for the second quarter 2026, respectively. Annualized ROA, ROE, and ROTCE, adjusted for non-core income and charges, were 1.05 percent, 8.75 percent and 12.05 percent for the second quarter 2026, respectively. See the "Consolidated Financial Highlights" tables below for additional information regarding our non-GAAP measures.
Net Interest Income and Margin
Net interest income on a tax equivalent basis of $488.4 million for the second quarter 2026 increased $15.6 million and $54.7 million compared to the first quarter 2026 and the second quarter 2025, respectively. Interest income on a tax equivalent basis increased $26.7 million to $830.7 million for the second quarter 2026 as compared to the first quarter 2026. The increase was mostly due to (i) increased average loan balances largely driven by growth in C&I and owner occupied CRE loans during the first half of 2026, (ii) additional interest income from purchases of higher-yielding taxable investments and (iii) one additional day in the second quarter 2026. Total interest expense increased $11.2 million to $342.4 million for the second quarter 2026 as compared to the first quarter 2026. The increase was mainly the result of (i) higher average time deposits and short-term borrowings balances during the second quarter 2026, (ii) the higher cost of certain non-maturity deposit products and short-term borrowings, (iii) the cost of carrying excess subordinated debt for a portion of the quarter, as well as (iv) the aforementioned increase in day count as compared to the first quarter 2026. See the "Deposits" and "Other Borrowings" sections below for more details.
Net interest margin on a tax equivalent basis of 3.20 percent for the second quarter 2026 increased 3 basis points from 3.17 percent for the first quarter 2026 and 19 basis points from 3.01 percent for the second quarter 2025. The yield on average interest earning assets increased by 5 basis points to 5.44 percent on a linked quarter basis largely due to higher yields on new loan originations and investment securities purchased during the second quarter 2026. The overall cost of average interest bearing liabilities increased by 4 basis points to 3.10 percent for the second quarter 2026 as compared to the first quarter 2026 largely due to the higher cost of non-maturity deposits and short-term borrowings, as well as the cost of carrying excess subordinated debt for a portion of the quarter. Our cost of total average deposits was 2.28 percent for the second quarter 2026 as compared to 2.27 percent and 2.67 percent for the first quarter 2026 and second quarter 2025, respectively.
Loans, Deposits and Other Borrowings
Loans. Total loans increased $1.6 billion, or 12.9 percent on an annualized basis, to $52.5 billion at June 30, 2026 from March 31, 2026. C&I loans increased by $857.2 million, or 30.9 percent on an annualized basis, to $12.0 billion at June 30, 2026 from March 31, 2026 largely driven by new originations from a range of relationship-driven small to midsize clients as a result of our continued focus on expansion of new loan production within this category. Total CRE (including construction) loans increased $638.9 million to $30.3 billion at June 30, 2026 from March 31, 2026 mostly due to solid customer demand and loan originations largely within our healthcare vertical of the owner occupied loan category. Non-owner occupied loans decreased $357.2 million from March 31, 2026 mainly due to our continued targeted runoff of transactional/non-relationship loans, which outpaced limited new originations in this category during the second quarter 2026. Residential mortgage loans increased $113.9 million from March 31, 2026 mainly due to continued retention of most new loan origination activity and modest levels of prepayments. Total consumer loans increased $28.5 million from March 31, 2026 primarily due to the combined growth in home equity loans and other collateralized personal lines of credit, partially offset by a $48.0 million decrease in automobile loans as repayments outpaced consumer demand.
Deposits. Actual ending balances for deposits increased $1.3 billion to $54.1 billion at June 30, 2026 from March 31, 2026 mainly due to increases of $1.5 billion and $298.6 million in time and non-interest bearing deposits, respectively, partially offset by a $506.1 million decline in the savings, NOW and money market deposit category. The increase in time deposits was largely driven by our targeted retail CD offerings and higher indirect customer CD balances. The increase in non-interest bearing deposits was mainly due to continued deposit inflows from commercial banking customers during the second quarter 2026. The decrease in savings, NOW and money market deposits from March 31, 2026 was mainly driven by lower brokered and governmental account balances at June 30, 2026. Total indirect customer deposits (consisting of both brokered time and money market deposits) totaled $5.3 billion and $5.1 billion at June 30, 2026 and March 31, 2026, 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 at June 30, 2026 as compared to 23 percent, 55 percent and 22 percent at March 31, 2026.
Other Borrowings. Short-term borrowings increased $369.6 million to $433.5 million at June 30, 2026 from March 31, 2026 due to $375 million of short-term FHLB advances outstanding at June 30, 2026, partially offset by a modest decline in securities sold under repurchase agreements. Long-term borrowings totaled $2.6 billion at June 30, 2026 and increased $46.3 million as compared to March 31, 2026. The increase was mainly attributable to $500 million of 6.219 percent fixed-to-floating rate subordinated notes issued in May 2026 due June 1, 2036, partially offset by the full early redemption of our $300 million of 3.00 percent fixed-to-floating rate subordinated notes originally due June 15, 2031, as well as normal repayments of maturing FHLB advances. No gain or loss was recognized on the early redemption of the subordinated notes during the second quarter 2026.
Credit Quality
Non-Performing Assets (NPAs). NPAs, consisting of non-accrual loans, other real estate owned (OREO) and other repossessed assets, increased $28.2 million to $467.8 million at June 30, 2026 from March 31, 2026. Non-accrual loans increased $30.0 million to $462.6 million, or 0.88 percent of total loans, at June 30, 2026 as compared to $432.6 million, or 0.85 percent of total loans, at March 31, 2026. The increase was mainly attributable to three CRE loans that migrated from the 30 to 59 days past due delinquency category at March 31, 2026 to non-accrual loans during the second quarter of 2026. These three collateral dependent non-accrual CRE loans totaled $49.6 million, net of partial charge-offs of $1.3 million during the second quarter 2026, and had no related allocated reserves within our allowance for credit losses for loans at June 30, 2026.
Accruing Past Due Loans. Total accruing past due loans (i.e., loans past due 30 days or more and still accruing interest) increased $52.3 million to $180.2 million, or 0.34 percent of total loans, at June 30, 2026 as compared to $127.9 million, or 0.25 percent of total loans, at March 31, 2026.
Loans 30 to 59 days past due increased $42.6 million to $151.0 million at June 30, 2026 as compared to March 31, 2026 mainly due to a few larger CRE loans, partially offset by the migration of the aforementioned CRE loans to non-accrual loans during the second quarter 2026. Loans 60 to 89 days past due increased $4.3 million to $13.1 million at June 30, 2026 as compared to March 31, 2026 mainly due to moderate increases in the residential mortgage and C&I loan categories. Loans 90 days or more past due and still accruing interest increased $5.4 million to $16.1 million at June 30, 2026 as compared to March 31, 2026 primarily due to the second quarter 2026 migration of a $5.5 million CRE loan previously reported in the 30 to 59 days past due delinquency category at March 31, 2026. All loans 90 days or more past due and still accruing interest are well-secured and in the process of collection.
Allowance for Credit Losses for Loans and Unfunded Commitments. The following table summarizes the allocation of the allowance for credit losses to loan categories and the allocation as a percentage of each loan category at June 30, 2026, March 31, 2026, and June 30, 2025:
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||
|---|---|---|---|---|---|---|---|
| Allocation | Allocation | Allocation | |||||
| as a % of | as a % of | as a % of | |||||
| Allowance | Loan | Allowance | Loan | Allowance | Loan | ||
| Allocation | Category | Allocation | Category | Allocation | Category | ||
| ($ in thousands) | |||||||
| Loan Category: | |||||||
| Commercial and industrial loans | $198,910 | 1.66% | $186,143 | 1.68% | $173,415 | 1.60% | |
| Commercial real estate loans: | |||||||
| Commercial real estate | 268,445 | 0.96 | 269,847 | 0.99 | 270,937 | 1.04 | |
| Construction | 50,623 | 2.05 | 54,946 | 2.21 | 64,042 | 2.24 | |
| Total commercial real estate loans | 319,068 | 1.05 | 324,793 | 1.09 | 334,979 | 1.16 | |
| Residential mortgage loans | 48,905 | 0.82 | 51,700 | 0.88 | 48,830 | 0.86 | |
| Consumer loans: | |||||||
| Home equity | 4,333 | 0.59 | 4,120 | 0.59 | 3,689 | 0.58 | |
| Auto and other consumer | 19,384 | 0.56 | 17,744 | 0.52 | 18,587 | 0.55 | |
| Total consumer loans | 23,717 | 0.57 | 21,864 | 0.53 | 22,276 | 0.56 | |
| Allowance for loan losses | 590,600 | 1.13 | 584,500 | 1.15 | 579,500 | 1.17 | |
| Allowance for unfunded credit commitments | 16,320 | 15,300 | 14,520 | ||||
| Total allowance for credit losses for loans | $606,920 | $599,800 | $594,020 | ||||
| Allowance for credit losses for loans as a % of total loans | 1.16% | 1.18% | 1.20% |
Our loan portfolio, totaling $52.5 billion at June 30, 2026, had net loan charge-offs totaling $22.0 million for the second quarter 2026 as compared to $17.5 million and $37.8 million for the first quarter 2026 and the second quarter 2025, respectively. Gross loan charge-offs totaled $27.6 million for the second quarter 2026 and were largely due to partial charge-offs of non-performing CRE and C&I loans.
The allowance for credit losses for loans, comprised of our allowance for loan losses and unfunded credit commitments, as a percentage of total loans was 1.16 percent at June 30, 2026, 1.18 percent at March 31, 2026, and 1.20 percent at June 30, 2025. For the second quarter 2026, the provision for credit losses for loans totaled $29.2 million as compared to $21.2 million and $37.8 million for the first quarter 2026 and second quarter 2025, respectively. The second quarter 2026 provision was mainly impacted by (i) higher specific reserves associated with collateral dependent loans, (ii) an increase in the economic forecast component of our reserve and (iii) strong commercial loan growth, partially offset by a decline in quantitative reserves largely within certain CRE loan categories at June 30, 2026.
Capital Adequacy
Valley's total risk-based capital, Tier 1 capital, common equity tier 1 capital, and Tier 1 leverage capital ratios were 13.77 percent, 11.37 percent, 10.71 percent and 9.49 percent, respectively, at June 30, 2026 as compared to 13.66 percent, 11.60 percent, 10.91 percent and 9.56 percent, respectively, at March 31, 2026. During the second quarter 2026, we repurchased 1.5 million shares of our common stock at an average price of $13.40 under our current stock repurchase plan.
Investor Conference Call
Valley’s CEO, Ira Robbins, will host a conference call on Thursday, July 23, 2026 at 8:30 AM (ET) to discuss Valley’s second quarter 2026 earnings and related matters. Interested parties should pre-register using this link: https://register-conf.media-server.com/register to receive the dial-in number and a personal PIN, which are required to access the conference call. The teleconference will also be webcast live: https://edge.media-server.com/ and archived on Valley’s website through Monday, August 24, 2026. Investor presentation materials will be made available prior to the conference call at www.valley.com.
About Valley
As the principal subsidiary of Valley National Bancorp (NASDAQ: VLY), Valley National Bank is a regional financial institution with over $66 billion in assets. Founded in 1927, Valley has more than 220 branch locations and commercial offices nationwide and serves clients across New Jersey, New York, Florida, Alabama, California, Illinois, Pennsylvania and Arizona. Valley delivers a full range of consumer, commercial, and wealth management solutions designed to support everything from homeownership and business growth to long-term financial planning. Big enough to support complex financial needs and small enough to stay deeply connected, Valley is grounded in a relationship-led approach focused on understanding people first. That same relationship-led approach guides Valley’s commitment to community investment and responsible corporate citizenship. To learn more, visit www.valley.com or call the Valley 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 forward-looking terminology such as “intend,” “should,” “expect,” “believe,” “position,” “view,” “opportunity,” “allow,” “continues,” “reflects,” “would,” “could,” “typically,” “usually,” “anticipate,” “may,” “estimate,” “outlook,” “project” or similar statements or variations of such terms. Such forward-looking statements involve certain risks and uncertainties. Actual results may differ materially from such forward-looking statements. Factors that may cause actual results to differ materially from those contemplated in these forward-looking statements include, but are not limited to:
- the impact of market interest rates and monetary and fiscal policies of the U.S. federal government and its agencies in connection with prolonged inflationary pressures, which could have a material adverse effect on our clients, our business, our employees, and our ability to provide services to our customers;
- the impact of unfavorable macroeconomic conditions or downturns, including instability or volatility in financial markets resulting from the impact of tariffs/import fees and other trade policies and practices, any retaliatory actions, changes in energy commodity prices, related market uncertainty, or other factors; U.S. government debt default or rating downgrade; unanticipated loan delinquencies; loss of collateral; decreased service revenues; increased business disruptions or failures; reductions in employment; and other potential negative effects on our business, employees or clients caused by factors outside of our control, such as new legislation and policy changes under the current U.S. presidential administration, any shutdown of the U.S federal government, geopolitical instabilities or events, including ongoing conflicts in the Middle East, natural and other disasters, including severe weather events and other climate-related risks, health emergencies, acts of terrorism, or other external events;
- the impact of any potential instability within the U.S. financial sector or future bank failures, including the possibility of a run on deposits by a coordinated deposit base, and the impact of any actual or perceived concerns regarding the soundness, or creditworthiness, of other financial institutions, including any resulting disruption within the financial markets, increased expenses, including FDIC insurance assessments, or adverse impact on our stock price, deposits or our ability to borrow or raise capital;
- the impact of negative public opinion regarding Valley or banks in general that damages our reputation and adversely impacts business and revenues;
- changes in the statutes, regulations, policies, enforcement priorities, or composition of the federal bank regulatory agencies;
- the loss of or decrease in lower-cost funding sources within our deposit base;
- investigations, damage verdicts, settlements or restrictions related to existing or potential class action litigation or individual litigation arising from claims of violations of laws or regulations, contractual claims, breach of fiduciary responsibility, negligence, fraud, environmental laws, patent, trademark or other intellectual property infringement, misappropriation or other violation, employment-related claims, and other matters;
- a prolonged downturn and contraction in the economy, as well as any decline in commercial real estate values collateralizing a significant portion of our loan portfolio;
- higher or lower than expected income tax expense or tax rates, including increases or decreases resulting from changes in uncertain tax position liabilities, tax laws, regulations, and case law;
- the inability to grow customer deposits to keep pace with the level of loan growth;
- a material change in our allowance for credit losses due to forecasted economic conditions and/or unexpected credit deterioration in our loan and investment portfolios;
- the need to supplement debt or equity capital to maintain or exceed internal capital thresholds;
- changes in our business, strategy, market conditions or other factors that may negatively impact the estimated fair value of our goodwill and other intangible assets and result in future impairment charges;
- greater than expected technology-related costs due to, among other factors, prolonged or failed implementations, additional project staffing and obsolescence caused by continuous and rapid market innovations;
- increased competitive challenges and competitive pressure on pricing of our products and services;
- our ability to stay current with rapid technological changes and evolving legal and regulatory requirements in the financial services industry, including developments relating to the use of artificial intelligence, blockchain, and related regulatory developments, as well as our ability to effectively assess and monitor the effects of, and risks associated with, the implementation and use of such technology;
- cyberattacks, ransomware attacks, computer viruses, malware or other cybersecurity incidents that may breach the security of our or our third-party service providers’ websites or other systems or networks to obtain unauthorized access to personal, confidential, proprietary or sensitive information, destroy data, disable or degrade service, or sabotage our systems or networks, and the increasing sophistication of such attacks and use of targeted tactics against the financial services industry;
- any disruption of our systems and network, or those of our third-party service providers, resulting from events that are wholly or partially beyond our control, including, for example, electrical, telecommunications, or other major service outages, or actions by employees, which may give rise to financial loss or liability;
- results of examinations by the Office of the Comptroller of the Currency (OCC), the Federal Reserve Bank, the Consumer Financial Protection Bureau and other regulatory authorities, including the possibility that any such regulatory authority may, among other things, require us to increase our allowance for credit losses, write-down assets, reimburse customers, change the way we do business, or limit or eliminate certain other banking activities;
- application of heightened regulatory standards for certain large insured national banks, and the expenses we will incur to develop policies, programs, and systems that comply with the enhanced standards applicable to us;
- our inability or determination not to pay dividends at current levels, or at all, because of inadequate earnings, regulatory restrictions or limitations, changes in our capital requirements, or a decision to increase capital by retaining more earnings;
- unanticipated loan delinquencies, loss of collateral, decreased service revenues, and other potential negative effects on our business caused by severe weather and other climate-related risks, pandemics or other public health crises, acts of terrorism or other external events;
- our ability to successfully execute our business plan and strategic initiatives; and
- unexpected significant declines in the loan portfolio due to the lack of economic expansion, increased competition, large prepayments, risk mitigation strategies, changes in regulatory lending guidance or other factors.
A detailed discussion of factors that could affect our results is included in our SEC filings, including Item 1A. "Risk Factors" of our Annual Report on Form 10-K for the year ended December 31, 2025.
We undertake no duty to update any forward-looking statement to conform the statement to actual results or changes in our expectations, except as required by law. Although we believe that the expectations reflected in the forward-looking statements are reasonable, we cannot guarantee future results, levels of activity, performance or achievements.
-Tables to Follow-
VALLEY NATIONAL BANCORP
| Metric | Q1 '24 | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|---|---|
| Total Revenue | — | — | $471.17M | $474.18M | $478.4M | $495.01M | $511.11M | $541.25M | $540.36M | $560.74M |
| Provision for Credit Losses | -$1.45M | -$4.79M | $3.11M | — | $1.38M | -$1.33M | -$916K | — | $2.6M | $29.16M |
| Weighted Shares Basic | 508.3M | 509.1M | 509.2M | — | 559.6M | 560.3M | 560.5M | — | 555.8M | 553.7M |
| Weighted Shares Diluted | 510.6M | 510.3M | 511.3M | — | 563.3M | 562.3M | 563.6M | — | 559.3M | 557M |
| Eps Basic | — | — | $0.18 | $0.21 | $0.18 | $0.23 | $0.28 | $0.34 | $0.28 | $0.30 |
| Eps Diluted | — | — | $0.18 | $0.20 | $0.18 | $0.22 | $0.28 | $0.33 | $0.28 | $0.29 |
| BALANCE SHEET ITEMS: | June 30, | March 31, | December 31, | September 30, | June 30, |
|---|---|---|---|---|---|
| As of | |||||
| (In thousands) | 2026 | 2026 | 2025 | 2025 | 2025 |
| Assets | $66,318,308 | $64,466,585 | $64,132,725 | $63,018,614 | $62,705,358 |
| Total loans | 52,467,251 | 50,828,820 | 50,136,728 | 49,272,823 | 49,391,420 |
| Deposits | 54,118,607 | 52,859,621 | 52,183,093 | 51,175,758 | 50,725,284 |
| Shareholders' equity | 7,917,144 | 7,828,443 | 7,807,698 | 7,695,374 | 7,575,421 |
| LOANS: | |||||
| (In thousands) | |||||
| Commercial and industrial | $11,961,242 | $11,104,079 | $10,961,519 | $10,757,857 | $10,870,036 |
| Commercial real estate: | |||||
| Non-owner occupied | 11,146,663 | 11,503,874 | 11,571,127 | 11,674,103 | 11,747,491 |
| Multifamily | 9,034,186 | 8,588,462 | 8,571,713 | 8,394,694 | 8,434,173 |
| Owner occupied | 7,692,877 | 7,132,254 | 6,629,909 | 6,097,319 | 5,789,397 |
| Construction | 2,475,109 | 2,485,387 | 2,471,233 | 2,517,258 | 2,854,859 |
| Total commercial real estate | 30,348,835 | 29,709,977 | 29,243,982 | 28,683,374 | 28,825,920 |
| Residential mortgage | 5,982,941 | 5,869,070 | 5,826,192 | 5,795,395 | 5,709,971 |
| Consumer: | |||||
| Home equity | 728,623 | 701,136 | 687,680 | 655,872 | 634,553 |
| Automobile | 2,150,089 | 2,198,102 | 2,184,600 | 2,191,976 | 2,178,841 |
| Other consumer | 1,295,521 | 1,246,456 | 1,232,755 | 1,188,349 | 1,172,099 |
| Total consumer loans | 4,174,233 | 4,145,694 | 4,105,035 | 4,036,197 | 3,985,493 |
| Total loans | $52,467,251 | $50,828,820 | $50,136,728 | $49,272,823 | $49,391,420 |
| CAPITAL RATIOS: | |||||
| Book value per common share | $13.67 | $13.48 | $13.39 | $13.09 | $12.89 |
| Tangible book value per common share (2) | 10.13 | 9.94 | 9.85 | 9.57 | 9.35 |
| Tangible common equity to tangible assets (2) | 8.71% | 8.82% | 8.82% | 8.79% | 8.63% |
| Tier 1 leverage capital | 9.49 | 9.56 | 9.63 | 9.52 | 9.49 |
| Common equity tier 1 capital | 10.71 | 10.91 | 10.99 | 11.00 | 10.85 |
| Tier 1 risk-based capital | 11.37 | 11.60 | 11.69 | 11.72 | 11.57 |
| Total risk-based capital | 13.77 | 13.66 | 13.77 | 13.83 | 13.67 |
| Three Months Ended | Six Months Ended | ||||
|---|---|---|---|---|---|
| ALLOWANCE FOR CREDIT LOSSES: | June 30, | March 31, | June 30, | June 30, | |
| ($ in thousands) | 2026 | 2026 | 2025 | 2026 | 2025 |
| Allowance for credit losses for loans | |||||
| Beginning balance - Allowance for credit losses for loans | $599,800 | $596,100 | $594,054 | $596,100 | $573,328 |
| Loans charged-off: | |||||
| Commercial and industrial | (9,838) | (2,782) | (25,189) | (12,620) | (53,645) |
| Commercial real estate | (14,434) | (13,756) | (14,623) | (28,190) | (26,883) |
| Construction | — | — | — | — | (1,163) |
| Residential mortgage | — | — | (46) | — | (46) |
| Total consumer | (3,354) | (3,263) | (2,213) | (6,617) | (4,353) |
| Total loans charged-off | (27,626) | (19,801) | (42,071) | (47,427) | (86,090) |
| Charged-off loans recovered: | |||||
| Commercial and industrial | 1,669 | 1,398 | 2,789 | 3,067 | 3,599 |
| Commercial real estate | 2,790 | 347 | 188 | 3,137 | 437 |
| Construction | — | — | 455 | — | 455 |
| Residential mortgage | 41 | 83 | 37 | 124 | 205 |
| Total consumer | 1,080 | 429 | 773 | 1,509 | 1,616 |
| Total loans recovered | 5,580 | 2,257 | 4,242 | 7,837 | 6,312 |
| Total net charge-offs | (22,046) | (17,544) | (37,829) | (39,590) | (79,778) |
| Provision for credit losses for loans | 29,166 | 21,244 | 37,795 | 50,410 | 100,470 |
| Ending balance | $606,920 | $599,800 | $594,020 | $606,920 | $594,020 |
| Components of allowance for credit losses for loans: | |||||
| Allowance for loan losses | $590,600 | $584,500 | $579,500 | $590,600 | $579,500 |
| Allowance for unfunded credit commitments | 16,320 | 15,300 | 14,520 | 16,320 | 14,520 |
| Allowance for credit losses for loans | $606,920 | $599,800 | $594,020 | $606,920 | $594,020 |
| Components of provision for credit losses for loans: | |||||
| Provision for credit losses for loans | $28,146 | $18,644 | $39,129 | $46,790 | $100,428 |
| Provision (credit) for unfunded credit commitments | 1,020 | 2,600 | (1,334) | 3,620 | 42 |
| Total provision for credit losses for loans | $29,166 | $21,244 | $37,795 | $50,410 | $100,470 |
| Annualized ratio of total net charge-offs to total average loans | 0.17% | 0.14% | 0.31% | 0.16% | 0.33% |
| Allowance for credit losses for loans as a % of total loans | 1.16% | 1.18% | 1.20% | 1.16% | 1.20% |
| ASSET QUALITY: | June 30, | March 31, | December 31, | September 30, | June 30, |
|---|---|---|---|---|---|
| As of | |||||
| ($ in thousands) | 2026 | 2026 | 2025 | 2025 | 2025 |
| Accruing past due loans: | |||||
| 30 to 59 days past due: | |||||
| Commercial and industrial | $5,083 | $5,285 | $11,177 | $912 | $10,451 |
| Commercial real estate | 106,034 | 69,494 | 72,810 | 26,371 | 42,884 |
| Construction | 1,752 | — | — | — | 35,000 |
| Residential mortgage | 22,154 | 20,534 | 21,615 | 23,556 | 21,744 |
| Total consumer | 15,974 | 13,112 | 14,420 | 12,728 | 12,878 |
| Total 30 to 59 days past due | 150,997 | 108,425 | 120,022 | 63,567 | 122,957 |
| 60 to 89 days past due: | |||||
| Commercial and industrial | 2,748 | 1,015 | 1,274 | 1,061 | 1,095 |
| Commercial real estate | — | — | — | 6,033 | 60,601 |
| Residential mortgage | 6,495 | 4,285 | 10,181 | 5,040 | 7,627 |
| Total consumer | 3,904 | 3,506 | 5,269 | 4,023 | 4,001 |
| Total 60 to 89 days past due | 13,147 | 8,806 | 16,724 | 16,157 | 73,324 |
| 90 or more days past due: | |||||
| Commercial and industrial | 3,527 | 3,499 | — | — | — |
| Commercial real estate | 5,454 | — | 212 | — | — |
| Residential mortgage | 5,223 | 5,894 | 3,300 | 3,911 | 2,062 |
| Total consumer | 1,862 | 1,309 | 1,070 | 1,125 | 859 |
| Total 90 or more days past due | 16,066 | 10,702 | 4,582 | 5,036 | 2,921 |
| Total accruing past due loans | $180,210 | $127,933 | $141,328 | $84,760 | $199,202 |
| Non-accrual loans: | |||||
| Commercial and industrial | $147,731 | $145,804 | $138,321 | $92,214 | $90,973 |
| Commercial real estate | 256,081 | 225,417 | 236,221 | 235,754 | 193,604 |
| Construction | 9,139 | 9,148 | 9,140 | 48,248 | 24,068 |
| Residential mortgage | 42,992 | 45,988 | 44,424 | 38,949 | 41,099 |
| Total consumer | 6,686 | 6,289 | 5,832 | 6,324 | 4,615 |
| Total non-accrual loans | 462,629 | 432,646 | 433,938 | 421,489 | 354,359 |
| Other real estate owned (OREO) | 4,126 | 5,161 | 4,531 | 4,783 | 4,783 |
| Other repossessed assets | 1,020 | 1,758 | 1,286 | 1,065 | 1,642 |
| Total non-performing assets | $467,775 | $439,565 | $439,755 | $427,337 | $360,784 |
| Total non-accrual loans as a % of loans | 0.88% | 0.85% | 0.87% | 0.86% | 0.72% |
| Total accruing past due and non-accrual loans as a % of loans | 1.23% | 1.10% | 1.15% | 1.03% | 1.12% |
| Allowance for losses on loans as a % of non-accrual loans | 127.66% | 135.10% | 134.44% | 138.79% | 163.53% |
NOTES TO SELECTED FINANCIAL DATA
| (1) | Net interest income and net interest margin are presented on a tax equivalent basis using a 21 percent federal tax rate. Valley believes that this presentation provides comparability of net interest income and net interest margin arising from both taxable and tax-exempt sources and is consistent with industry practice and SEC rules. | ||||
| (2) | Non-GAAP Reconciliations. This press release contains certain supplemental financial information, described in the Notes below, which has been determined by methods other than U.S. Generally Accepted Accounting Principles ("GAAP") that management uses in its analysis of Valley's performance. The Company believes that the non-GAAP financial measures provide useful supplemental information to both management and investors in understanding Valley’s underlying operational performance, business and performance trends, and may facilitate comparisons of our current and prior performance with the performance of others in the financial services industry. Management utilizes these measures for internal planning, forecasting and analysis purposes. Management believes that Valley’s presentation and discussion of this supplemental information, together with the accompanying reconciliations to the GAAP financial measures, also allows investors to view performance in a manner similar to management. These non-GAAP financial measures should not be considered in isolation or as a substitute for or superior to financial measures calculated in accordance with U.S. GAAP. These non-GAAP financial measures may also be calculated differently from similar measures disclosed by other companies. |
Non-GAAP Reconciliations to GAAP Financial Measures
| Three Months Ended | Six Months Ended | ||||
|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | June 30, | ||
| ($ in thousands, except for share data) | 2026 | 2026 | 2025 | 2026 | 2025 |
| Adjusted net income available to common shareholders (non-GAAP): | |||||
| Net income, as reported (GAAP) | $170,885 | $163,913 | $133,167 | $334,798 | $239,225 |
| Add: Restructuring charge (a) | 2,513 | 5,689 | 800 | 8,202 | 800 |
| Add: Litigation reserve (b) | 230 | 1,262 | — | 1,492 | — |
| Add: Losses on available for sale and held to maturity debt securities, net (c) | — | 10 | — | 10 | 11 |
| Add: Loss on extinguishment of debt | — | — | 922 | — | 922 |
| Total non-GAAP adjustments to net income | 2,743 | 6,961 | 1,722 | 9,704 | 1,733 |
| Income tax adjustments related to non-GAAP adjustments (d) | (782) | (1,984) | (474) | (2,766) | (477) |
| Net income, as adjusted (non-GAAP) | $172,846 | $168,890 | $134,415 | $341,736 | $240,481 |
| Dividends on preferred stock | 7,316 | 7,217 | 6,948 | 14,533 | 13,903 |
| Net income available to common shareholders, as adjusted (non-GAAP) | $165,530 | $161,673 | $127,467 | $327,203 | $226,578 |
| __________ | |||||
| (a) Represents severance expense related to workforce reductions within salary and employee benefits expense. | |||||
| (b) Represents the change in legal reserves and settlement charges included in professional and legal fees. | |||||
| (c) Included in gains (losses) on securities transactions, net. | |||||
| (d) Calculated using the appropriate blended statutory tax rate for the applicable period. | |||||
| Adjusted per common share data (non-GAAP): | |||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $165,530 | $161,673 | $127,467 | $327,203 | $226,578 |
| Weighted average number of shares outstanding | 553,740,562 | 555,777,748 | 560,336,610 | 554,753,527 | 559,976,939 |
| Basic earnings, as adjusted (non-GAAP) | $0.30 | $0.29 | $0.23 | $0.59 | $0.40 |
| Weighted average number of diluted shares outstanding | 556,958,049 | 559,254,972 | 562,312,330 | 557,968,183 | 563,431,390 |
| Diluted earnings, as adjusted (non-GAAP) | $0.30 | $0.29 | $0.23 | $0.59 | $0.40 |
| Adjusted annualized return on average tangible common shareholder's equity (non-GAAP): | |||||
| Net income available to common shareholders, as adjusted (non-GAAP) | $165,530 | $161,673 | $127,467 | $327,203 | $226,578 |
| Add: Amortization of other intangible assets (net of tax), other than loan servicing rights | 4,247 | 4,746 | 5,120 | 8,993 | 10,739 |
| Net income available to common shareholders excluding intangible amortization, as adjusted (non-GAAP) | 169,777 | 166,419 | 132,587 | 336,196 | 237,317 |
| Average shareholders' equity | 7,901,688 | 7,855,550 | 7,524,231 | 7,878,746 | 7,491,395 |
| Less: Average preferred shareholders equity | 354,345 | 354,345 | 354,345 | 354,345 | 354,345 |
| Less: Average goodwill (net of deferred tax liability) | 1,858,851 | 1,858,851 | 1,859,614 | 1,858,851 | 1,859,614 |
| Less: Average intangible assets (net of deferred tax liability), other than loan servicing rights | 51,387 | 57,080 | 69,367 | 54,218 | 72,748 |
| Average tangible common shareholders' equity | $5,637,105 | $5,585,274 | $5,240,905 | $5,611,332 | $5,204,688 |
| Annualized return on average tangible common shareholders' equity, as adjusted (non-GAAP) | 12.05% | 11.92% | 10.12% | 11.98% | 9.12% |
Non-GAAP Reconciliations to GAAP Financial Measures (Continued)
| Three Months Ended | Six Months Ended | ||||
|---|---|---|---|---|---|
| June 30, | March 31, | June 30, | June 30, | ||
| ($ in thousands, except for share data) | 2026 | 2026 | 2025 | 2026 | 2025 |
| Adjusted annualized return on average assets (non-GAAP): | |||||
| Net income, as adjusted (non-GAAP) | $172,846 | $168,890 | $134,415 | $341,736 | $240,481 |
| Average assets | $65,584,823 | $64,190,084 | $62,106,945 | $64,891,306 | $61,806,614 |
| Annualized return on average assets, as adjusted (non-GAAP) | 1.05% | 1.05% | 0.87% | 1.05% | 0.78% |
| Adjusted annualized return on average shareholders' equity (non-GAAP): | |||||
| Net income, as adjusted (non-GAAP) | $172,846 | $168,890 | $134,415 | $341,736 | $240,481 |
| Average shareholders' equity | $7,901,688 | $7,855,550 | $7,524,231 | $7,878,746 | $7,491,395 |
| Annualized return on average shareholders' equity, as adjusted (non-GAAP) | 8.75% | 8.60% | 7.15% | 8.67% | 6.42% |
| Annualized return on average tangible common shareholders' equity (non-GAAP): | |||||
| Net income available to common shareholders | $163,569 | $156,696 | $126,219 | $320,265 | $225,322 |
| Add: Amortization of other intangible assets (net of tax), other than loan servicing rights | 4,247 | 4,746 | 5,120 | 8,993 | 10,739 |
| Net income available to common shareholders excluding intangible amortization (non-GAAP) | 167,816 | 161,442 | 131,339 | 329,258 | 236,061 |
| Average tangible common shareholders' equity (non-GAAP) | $5,637,105 | $5,585,274 | $5,240,905 | $5,611,332 | $5,204,688 |
| Annualized return on average tangible common shareholders' equity (non-GAAP) | 11.91% | 11.56% | 10.02% | 11.74% | 9.07% |
| Efficiency ratio (non-GAAP): | |||||
| Non-interest expense, as reported (GAAP) | $311,123 | $309,926 | $284,122 | $621,049 | $560,740 |
| Less: Restructuring charge (pre-tax) | 2,513 | 5,689 | 800 | 8,202 | 800 |
| Less: Amortization of tax credit investments (pre-tax) | 16,157 | 16,014 | 9,134 | 32,171 | 18,454 |
| Less: Litigation reserve (pre-tax) | 230 | 1,262 | — | 1,492 | — |
| Less: Loss on extinguishment of debt (pre-tax) | — | — | 922 | — | 922 |
| Non-interest expense, as adjusted (non-GAAP) | $292,223 | $286,961 | $273,266 | $579,184 | $540,564 |
| Net interest income, as reported (GAAP) | 487,024 | 471,525 | 432,408 | 958,549 | 852,513 |
| Non-interest income, as reported (GAAP) | 73,711 | 68,836 | 62,604 | 142,547 | 120,898 |
| Add: Losses on available for sale and held to maturity securities transactions, net (pre-tax) | — | 10 | — | 10 | 11 |
| Gross operating income, as adjusted (non-GAAP) | $560,735 | $540,371 | $495,012 | $1,101,106 | $973,422 |
| Efficiency ratio (non-GAAP) | 52.11% | 53.10% | 55.20% | 52.60% | 55.53% |
| As of | |||||
|---|---|---|---|---|---|
| June 30, | March 31, | December 31, | September 30, | June 30, | |
| ($ in thousands, except for share data) | 2026 | 2026 | 2025 | 2025 | 2025 |
| Tangible book value per common share (non-GAAP): | |||||
| Common shares outstanding | 553,069,100 | 554,316,876 | 556,618,021 | 560,784,352 | 560,281,821 |
| Shareholders' equity (GAAP) | $7,917,144 | $7,828,443 | $7,807,698 | $7,695,374 | $7,575,421 |
| Less: Preferred stock | 354,345 | 354,345 | 354,345 | 354,345 | 354,345 |
| Less: Goodwill and other intangible assets | 1,958,135 | 1,963,706 | 1,969,811 | 1,976,594 | 1,983,515 |
| Tangible common shareholders' equity (non-GAAP) | $5,604,664 | $5,510,392 | $5,483,542 | $5,364,435 | $5,237,561 |
| Tangible book value per common share (non-GAAP) | $10.13 | $9.94 | $9.85 | $9.57 | $9.35 |
| Tangible common equity to tangible assets (non-GAAP): | |||||
| Tangible common shareholders' equity (non-GAAP) | $5,604,664 | $5,510,392 | $5,483,542 | $5,364,435 | $5,237,561 |
| Total assets (GAAP) | 66,318,308 | 64,466,585 | 64,132,725 | 63,018,614 | 62,705,358 |
| Less: Goodwill and other intangible assets | 1,958,135 | 1,963,706 | 1,969,811 | 1,976,594 | 1,983,515 |
| Tangible assets (non-GAAP) | $64,360,173 | $62,502,879 | $62,162,914 | $61,042,020 | $60,721,843 |
| Tangible common equity to tangible assets (non-GAAP) | 8.71% | 8.82% | 8.82% | 8.79% | 8.63% |
CONSOLIDATED STATEMENTS OF FINANCIAL CONDITION
(in thousands, except for share data)
| Metric | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|
| Cash and Equivalents | $1.04B | $1.89B | $1.22B | $1.19B | $1.37B | $1.58B | $1.16B | $388.74M |
| Bank Gross Loans | $49.36B | $48.8B | $48.66B | $49.39B | $49.27B | $50.14B | $50.83B | $52.47B |
| Mortgage Loans Held for Sale | $843.2M | $25.68M | $27.38M | $28.1M | $18.09M | $26.24M | $11.23M | $13.69M |
| Bank Allowance for Credit Losses | $548.33M | $558.85M | $578.2M | $579.5M | $585M | $583.4M | $584.5M | $590.6M |
| Fin Deposits Noninterest Bearing | $11.15B | $11.43B | $11.63B | $11.75B | $11.66B | $12.16B | $12.25B | $12.55B |
| Other Savings Now and Money Market | $25.07B | $26.3B | $26.41B | $26.09B | $27.25B | $28.6B | $29.17B | $28.67B |
| Bank Time Deposits | $14.17B | $12.34B | $11.92B | $12.89B | $12.27B | $11.42B | $11.44B | $12.9B |
| Fin Deposits | $50.4B | $50.08B | $49.97B | $50.73B | $51.18B | $52.18B | $52.86B | $54.12B |
| Short Term Borrowings | $58.27M | $72.72M | $59.03M | $162.24M | $51.05M | $91.48M | $63.88M | $433.48M |
| Other Long Term Debt Excluding Junior Subordinated Deben 00d895 | $3.27B | $3.17B | $2.9B | $2.9B | $2.91B | $2.91B | $2.56B | $2.61B |
| Junior Subordinated Notes | $57.37M | $57.46M | $57.54M | $57.63M | $57.72M | $57.8M | $57.89M | $57.98M |
| Total Liabilities | $55.12B | $55.06B | $54.37B | $55.13B | $55.32B | $56.33B | $56.64B | $58.4B |
| Total Stockholders Equity | $6.97B | $7.44B | $7.5B | $7.58B | $7.7B | $7.81B | $7.83B | $7.92B |
| Total Liabilities and Equity | $62.09B | $62.49B | $61.87B | $62.71B | $63.02B | $64.13B | $64.47B | $66.32B |
| Equity Common Stock Value | $178.66M | $196M | $196.52M | $196.61M | $196.73M | $196.73M | $196.73M | $196.73M |
| Additional Paid In Capital | $5B | $5.44B | $5.44B | $5.45B | $5.46B | $5.46B | $5.45B | $5.46B |
| Retained Earnings | $1.55B | $1.6B | $1.63B | $1.69B | $1.79B | $1.91B | $2B | $2.1B |
| Aoci | -$114.77M | -$155.33M | -$128.25M | -$119.89M | -$98.8M | -$74.38M | -$97.6M | -$99.62M |
| Equity Treasury Stock Value | $0 | $0 | $2.16M | $2.09M | $985K | $46.78M | $79.81M | -$97M |
| Goodwill | $1.87B | $1.87B | $1.87B | $1.87B | $1.87B | $1.87B | $1.87B | $1.87B |
| Intangible Assets Net | $135.48M | $128.66M | $121.34M | $114.58M | $107.66M | $100.88M | $94.77M | $89.2M |
| Property Plant Equipment Net | $356.65M | $350.8M | $344.12M | $337.37M | $331.13M | $330.76M | $321.74M | $316.36M |
| Non Current Assets Bank Owned Life Insurance | $730.08M | $731.57M | $733.14M | $735.03M | $739.68M | $738.09M | $740.41M | $742.23M |
| Fin Accrued Investment Income | $250.13M | $239.94M | $238.33M | $238.28M | $242.86M | $243.9M | $244.28M | $250.7M |
| Non Current Assets Other Assets | $1.47B | $1.71B | $1.62B | $1.55B | $1.6B | $1.59B | $1.61B | $1.73B |
| Ins Equity Securities | $73.07M | $71.51M | $74.43M | $77.41M | $78.3M | $82.77M | $83.87M | $88.54M |
| Fin Trading Assets | $349K | $174.47M | $176.18M | $177.67M | $179.42M | $981K | $5.92M | $26.49M |
| Long Term Investments | $6.25B | $6.97B | $7.28B | $7.5B | $7.74B | $7.78B | $7.86B | $4.29B |
| Fin Htm Securities | $3.57B | $3.53B | $3.55B | $3.53B | $3.54B | $3.5B | $3.62B | $3.76B |
| Total Assets | $62.09B | $62.49B | $61.87B | $62.71B | $63.02B | $64.13B | $64.47B | $66.32B |
| Common Stock Shares Issued | 509.3M | 558.8M | 560.3M | 560.5M | 560.9M | 560.9M | 560.9M | 560.9M |
| Common Stock | 650M | 650M | 650M | 650M | 650M | 650M | 650M | 650M |
CONSOLIDATED STATEMENTS OF INCOME (Unaudited)
(in thousands, except for share data)
| Metric | Q2 '24 | Q3 '24 | Q4 '24 | Q1 '25 | Q2 '25 | Q3 '25 | Q4 '25 | Q1 '26 | Q2 '26 |
|---|---|---|---|---|---|---|---|---|---|
| Interest Income | — | $786.68M | $750.67M | $703.61M | $720.28M | $733.19M | $724.21M | $708.64M | $736.06M |
| Total Interest Income | — | $860.55M | $834.83M | $784.75M | $805.01M | $826.92M | $815.8M | $802.72M | $829.38M |
| Interest Expense | — | $450.05M | $411.85M | $364.65M | $372.6M | $380.7M | $350.89M | $331.2M | $342.35M |
| Other Interest Expense Short Term Borrowings | — | $451K | $293K | $2.95M | $1.74M | $555K | $502K | $236K | $6.05M |
| Other Interest Expense Long Term Debt | — | $39.49M | $38.35M | $36.41M | $38.15M | $36.12M | $35.84M | $33.5M | $32.64M |
| Other Interest Expense Time Deposits | — | $174.74M | $158.72M | $125.07M | $129.32M | $133.11M | $116.66M | $106.68M | $112.69M |
| Net Interest Income After Provision | — | $335.47M | $316.44M | $357.44M | $394.61M | $427.05M | $444.76M | $450.27M | $457.86M |
| Total Noninterest Income | — | $60.67M | $51.2M | $58.29M | $62.6M | $64.89M | $76.34M | $68.84M | $73.71M |
| Revenue Insurance Commissions and Fees | — | $2.88M | $3.71M | $3.4M | $3.43M | $2.91M | $3.63M | $2.87M | $3.77M |
| Investment Gains Losses | — | $47K | $1K | $46K | -$1K | $28K | $1K | $21K | $50K |
| Other Noninterest Income Other | — | $18.26M | $4.78M | $9.96M | $8.93M | $10.43M | $12.37M | $9.21M | $9.65M |
| Total Noninterest Expense | — | $269.47M | $278.58M | $276.62M | $284.12M | $281.99M | $299.4M | $309.93M | $311.12M |
| Compensation and Benefits | — | $138.83M | $137.12M | $142.62M | $145.42M | $146.82M | $144.66M | $155.72M | $150.43M |
| Occupancy and Equipment | — | $26.97M | $26.58M | $25.89M | $25.48M | $24.87M | $26.06M | $27.18M | $27.18M |
| Other Technology Furniture and Equipment Expense | — | $28.96M | $35.48M | $29.9M | $30.67M | $30.71M | $32.61M | $31.88M | $33.25M |
| Other Federal Deposit Insurance Corporation Premium Expense | — | $14.79M | $14M | $12.87M | $12.19M | $8.36M | $5.64M | $10.48M | $11.69M |
| Depreciation and Amortization | — | $8.69M | $8.37M | $8.02M | $7.43M | $7.54M | $7.44M | $6.92M | $6.27M |
| Professional Fees | — | $14.12M | $21.79M | $15.67M | $19.97M | $24.26M | $26.85M | $25.14M | $29.53M |
| Income Before Tax | — | $126.67M | $89.06M | $139.12M | $173.09M | $209.96M | $221.7M | $209.18M | $220.45M |
| Income Tax Expense | $22.91M | $28.82M | — | $33.06M | $39.92M | $46.6M | $26.3M | $45.27M | $49.56M |
| Net Income | — | $97.86M | $115.71M | $106.06M | $133.17M | $163.36M | $195.4M | $163.91M | $170.89M |
| Preferred Dividends | — | $6.12M | $7.03M | $6.96M | $6.95M | $7.64M | $7.43M | $7.22M | $7.32M |
| Operating Net Income Loss Available to Common Stockholde 551d72 | — | $91.74M | $108.69M | $99.1M | $126.22M | $155.71M | $187.97M | $156.7M | $163.57M |
Quarterly Analysis of Average Assets, Liabilities and Shareholders' Equity and
| ($ in thousands) | Balance | Interest | Rate | Balance | Interest | Rate | Balance | Interest | Rate |
|---|---|---|---|---|---|---|---|---|---|
| Three Months Ended | |||||||||
| June 30, 2026 | March 31, 2026 | June 30, 2025 | |||||||
| Average | Avg. | Average | Avg. | Average | Avg. | ||||
| Assets | |||||||||
| Interest earning assets: | |||||||||
| Loans (1)(2) | $51,884,173 | $736,082 | 5.67% | $50,265,383 | $708,662 | 5.64% | $49,032,637 | $720,305 | 5.88% |
| Taxable investments (3) | 7,928,555 | 81,884 | 4.13 | 7,732,330 | 78,608 | 4.07 | 7,350,792 | 72,692 | 3.96 |
| Tax-exempt investments (1)(3) | 544,950 | 6,390 | 4.69 | 542,177 | 5,972 | 4.41 | 544,302 | 5,925 | 4.35 |
| Interest bearing deposits with banks | 699,684 | 6,383 | 3.65 | 1,178,997 | 10,758 | 3.65 | 625,893 | 7,357 | 4.70 |
| Total interest earning assets | 61,057,362 | 830,739 | 5.44 | 59,718,887 | 804,000 | 5.39 | 57,553,624 | 806,279 | 5.60 |
| Other assets | 4,527,461 | 4,471,197 | 4,553,321 | ||||||
| Total assets | $65,584,823 | $64,190,084 | $62,106,945 | ||||||
| Liabilities and shareholders' equity | |||||||||
| Interest bearing liabilities: | |||||||||
| Savings, NOW and money market deposits | $28,920,057 | $190,973 | 2.64% | $29,203,978 | $190,785 | 2.61% | $26,451,349 | $203,390 | 3.08% |
| Time deposits | 11,881,270 | 112,693 | 3.79 | 11,226,874 | 106,678 | 3.80 | 12,119,461 | 129,324 | 4.27 |
| Short-term borrowings | 674,094 | 6,047 | 3.59 | 71,809 | 236 | 1.31 | 196,491 | 1,736 | 3.53 |
| Long-term borrowings (4) | 2,684,781 | 32,638 | 4.86 | 2,849,479 | 33,500 | 4.70 | 3,146,434 | 38,154 | 4.85 |
| Total interest bearing liabilities | 44,160,202 | 342,351 | 3.10 | 43,352,140 | 331,199 | 3.06 | 41,913,735 | 372,604 | 3.56 |
| Non-interest bearing deposits | 12,372,974 | 11,942,322 | 11,336,314 | ||||||
| Other liabilities | 1,149,959 | 1,040,072 | 1,332,665 | ||||||
| Shareholders' equity | 7,901,688 | 7,855,550 | 7,524,231 | ||||||
| Total liabilities and shareholders' equity | $65,584,823 | $64,190,084 | $62,106,945 | ||||||
| Net interest income/interest rate spread (5) | $488,388 | 2.34% | $472,801 | 2.33% | $433,675 | 2.04% | |||
| Tax equivalent adjustment | (1,364) | (1,276) | (1,267) | ||||||
| Net interest income, as reported | $487,024 | $471,525 | $432,408 | ||||||
| Net interest margin (6) | 3.19% | 3.16% | 3.01% | ||||||
| Tax equivalent effect | 0.01 | 0.01 | 0.00 | ||||||
| Net interest margin on a fully tax equivalent basis (6) | 3.20% | 3.17% | 3.01% |
(1) Interest income is presented on a tax equivalent basis using a 21 percent federal tax rate.
(2) Loans are stated net of unearned income and include non-accrual loans.
(3) The yield for securities that are classified as available for sale is based on the average historical amortized cost.
(4) Includes junior subordinated debentures issued to capital trusts which are presented separately on the consolidated statements of financial condition.
(5) Interest rate spread represents the difference between the average yield on interest earning assets and the average cost of interest bearing liabilities and is presented on a fully tax equivalent basis.
(6) Net interest income as a percentage of total average interest earning assets.
| INVESTOR RELATIONS Requests for copies of reports and/or other inquiries should be directed to Andrew Jianette, Investor Relations, Valley National Bancorp, 70 Speedwell Avenue, Morristown, New Jersey, 07960 by e-mail at investorrelations@valley.com. |
