Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q1 2026 Earnings Presentation
36 slides from Valley National Bancorp's earnings presentation, Apr 23, 2026
Slide 1: 1Q26 Earnings Presentation
1Q26 Earnings Presentation April 23, 2026
Slide 2: Forward Looking Statements
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
Slide 3: 1Q 2026 Financial Highlights
1Q 2026 Financial Highlights GAAP Reported Non -GAAP Adjusted 1 1Q26 4Q25 1Q25 1Q26 4Q25 1Q25 Net Income ($mm) $163.9 $195.4 $106.1 $168.9 $180.2 $106.1 Return on Average Assets 1.02% 1.24% 0.69% 1.05% 1.14% 0.69% Annualized Annualized ROATCE 2 11.6% 14.2% 8.1% 11.9% 13.1% 8.1% Efficiency Ratio (Non
Slide 4: Strong Balance Sheet Metrics
Strong Balance Sheet Metrics CRE / TRBC 1 ACL / Loans 474% 1.17% 1.19% 1.18% 362% 0.93% 333% 329% 12/31/23 12/31/24 12/31/25 3/31/26 12/31/23 12/31/24 12/31/25 3/31/26 Loans / Deposits CET 1 / RWA 102.0% 10.99% 10.91% 10.82% 97.5% 96.1% 96.2% 9.29% 12/31/23 12/31/24 12/31/25 3/31/26 12/31/23 12/31/2
Slide 5: Profitability Metrics Continued to Improve
Profitability Metrics Continued to Improve Net Interest Margin (FTE, %) 1 Adj. PPNR / Avg. Assets (%) 2 3.17% 1.58% 3.05% 1.48% 2.96% 1.34% 2.85% 1.26% FY2023 FY 2024 FY 2025 1Q26 FY 2023 FY 2024 FY 2025 1Q26 Adj. Return on Avg. Assets (%) 2 Adj. Return on Avg. Tangible Common Equity (%) 2 12.9% 1.0
Slide 6: Driving Long-Term Value
Driving Long -Term Value Shareholder Value Creation vs. Peers 1 Deposit Accounts (000s) Cumulative Dividends Post-2017 2 +119% +23% Reported TBV Growth Post-2017 123% 142 541 115% 440 52% 59% 65 64% 64% 12/31/17 3/31/26 12/31/17 3/31/26 Peer Median VLY Commercial Consumer Commercial Loan Diversity b
Slide 7: Strategic Growth Imperatives for 2026
Strategic Growth Imperatives for 2026 Our Strategic Focus Remains Consistent, Supported by Evolving Initiatives ▪ Grow Core Deposits ▪ Accelerate consumer, small business, and business banking sales efforts to create a high -quality funding engine. ▪ Continue to utilize treasury management capabilit
Slide 8: Valley's AI Strategy
Valley’s AI Strategy Focused Deployment Supported by Expected Economic Return and Appropriate Governance Structure GUIDING PRINCIPLES APPROACH Focus on Measurable Value Technology Enablement ▪ Targeting associate productivity, risk mitigation, and ▪ Our AI adoption leverages prior investments in cor
Slide 9: AI Journey & Priority Focus Areas
AI Journey & Priority Focus Areas 2023 – 2025 2025 - 2027 2028 & Beyond Foundational Initiatives AI Portfolio Execution AI -Driven Banking Establishing a Strong Foundation Cross -Channel AI Experiences & Operating as an AI -Native & Driving Associate Productivity Re -Imagining End -to -End Organizat
Slide 10: Examples of Valley-Specific AI Use Cases
Examples of Valley -Specific AI Use Cases AI Knowledge Assistants Generative AI supporting Customer Care agents’ access to approved policies and procedures AML / Fraud Alert Actioning Machine -learning models segment risk and reduce false positives to improve the speed and consistency of AML alert r
Slide 11: 2026 Outlook Update
2026 Outlook Update Metric 2026 Expectation as of 12/31/25 3/31/26 Update Gross Loans 4% - 6% Growth Mid to High End of Range Total Deposits 5% - 7% Growth High End of Range CET1 / RWA 10.5% - 11.0% Mid to High End of Range Net Interest Income 11%- 13% Growth High End of Range Non -Interest Income (
Slide 12: Increased Capital Returns to Shareholders
Increased Capital Returns to Shareholders Tangible Common Equity 1 ($mm’s) 157 ▪ CET1 / RWA remained at the high end (62) 5,510 5,484 (52) (16) of our 10.5% - 11.0% target range. $114mm returned to shareholders during 1Q26 ▪ Improving profitability has resulted in regulatory capital growth beyond wh
Slide 13: Continued Direct Deposit Growth
Continued Direct Deposit Growth Deposits by Product ($bn) Avg. Fed Funds vs. Deposit Costs (%) $52.2 $52.9 $50.0 4.50% 4.50% 4.46% 24% 22% 11.4 11.4 11.9 22% 2.67% 2.69% 4.02% 2.65% 3.75% 12.2 12.3 23% 11.6 23% 2.45% 23% 2.27% 53% 26.4 55% 28.6 29.2 55% 1Q25 2Q25 3Q25 4Q25 1Q26 3/31/2025 12/31/2025
Slide 14: Diversified Deposit Base
Diversified Deposit Base Total Deposit Breakdown ($bn) Specialized Deposits by Business Line ($bn) International Nat'l Deposits, Corporate Cannabis & $1.3 Online Specialized Deposits $4.1 $12.7 Technology Traditional 24% $12.7bn $2.4 Deposits $52.9bn $35.1 66% Healthcare & Other $1.8 Fully FDIC -Ins
Slide 15: Core Deposit Growth & Diversification
Core Deposit Growth & Diversification Expectations for 2026 12/31/17 3/31/26 & Beyond • $18bn Total Deposits • $53bn Total Deposits • Leverage specialty deposit • 78% in Northeast Branches • 45% in Northeast Branches verticals and explore new • 101% Loans / Deposits • 96% Loans / Deposits capabiliti
Slide 16: Loan Portfolio Detail
Loan Portfolio Detail Gross Loans ($bn) 1 Avg. Fed Funds vs. Loan Yields (%) $0.1 $0.1 5.78% 5.88% 5.95% 5.84% 5.64% $0.7 ( $0.3 ) $50.8 4.50% 4.50% 4.46% 4.02% 3.75% $50.1 12/31/25 Transactional Other CRE C&I Resi & 3/31/26 1Q25 2Q25 3Q25 4Q25 1Q26 CRE Consumer Total Loan Yield Average Fed Funds (U
Slide 17: Diverse C&I Growth Capabilities
Diverse C&I Growth Capabilities C&I Loans ($bn) 3/31/26 C&I Industry Diversity Real Estate Related Other Working Capital 13% 20% Wholesale Trade 11.1 9% 11.0 Consumer Serv. ~19% C&I CAGR 9.9 8% since 2017 $11.1bn Non -Profit & 9.2 Condos Finance & Insurance $8.8 19% 7% Equipment Professional Service
Slide 18: Focused C&I Initiatives Supporting Growth
Focused C&I Initiatives Supporting Growth Expectations for 2026 12/31/17 3/31/26 & Beyond • $18bn Total Loans • $51bn Total Loans • $2.7bn C&I loans • $11.1bn C&I loans • Continue to recruit experienced and sophisticated commercial • 79% of Commercial Loans 1 in • 50% of Commercial Loans 1 in talent
Slide 19: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income ($mm) and Margin 1 Maturing Fixed Rate Loans 5.07% 5.04% 5.05% 4.79% 4.54% 3.17% 3.17% $11.0 3.05% $473 3.01% $466 $3.2 2.96% $1.7 $1.7 $2.1 $447 2026 2027 2028 2029 Beyond Balance ($bn) Rate (%) $434 Maturing CDs and FHLB Borrowings $421 3.86% 3.97
Slide 20: Non-Interest Income
Non -Interest Income Non -Interest Income ($mm) 1 1Q26 Non -Interest Income ($mm) Deposit Service Charges BOLI $18.2 $5.8 26% 9% ($5.1) Loan Servicing 1.1 ($3.0 ) $(3.0 ) $1.2 $3.2 $1.2 5% $76.3 Capital Markets $68.8 mm $10.4 $68.8 15% All Other $12.3 18% 4Q25 Capital Wealth, Deposit BOLI Gain on Al
Slide 21: Drivers of Fee Income Momentum
Drivers of Fee Income Momentum Expectations for 2026 FY 2017 3/31/26 & Beyond • $103mm of Non -Interest • Annualized $275mm of Non - Income Interest Income (13% CAGR) • $21mm Gain on Traditional • Annualized $12mm Gain on • Continue to focus on Loan Sales Traditional Loan Sales sustainable fee incom
Slide 22: Non-Interest Expenses
Non -Interest Expenses Non -Interest Expenses ($mm) Efficiency Ratio Trend 1 Reported Adjusted 1 $310 $299 $277 $289 $287 55.9% $267 53.5% 53.1% 1Q25 4Q25 1Q26 1Q25 4Q25 1Q26 Adj. Ann. Non -Interest Expenses 1 / Avg. Assets Adjusted non -interest expense was generally 2.19% 2.22% stable despite seas
Slide 23: Asset Quality & Reserve Trends
Asset Quality & Reserve Trends Non -Accrual Loans / Total Loans Accruing Past Due Loans / Total Loans 30-59 PD 60-89 PD 90+ PD 0.40% 1.03 0.86% 0.87% 0.85% 0.28% % 0.71% 0.72% 0.26% 0.17% 0.20% 0.99 % 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 3/31/25 6/30/25 9/30/25 12/31/25 3/31/26 ACL / Total Loans
Slide 24: Equity & Capitalization
Equity & Capitalization Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 $13.39 $13.48 $12.89 $13.09 $12.76 12.12% 12.21% 12.17% 12.14% 12.08% $9.85 $9.94 8.61% 8.63% 8.79% 8.82% 8.82% $9.57 $9.35 $9.21 3/31/2025 6/30/2025 9/30/2025 12/31/2025 3/31/2026 3/31/2025 6/30/202
Slide 25: APPENDIX
APPENDIX
Slide 26: Glossary of Defined Terms
Glossary of Defined Terms Term Definition Term Definition ACL Allowance for credit losses NCOs Net charge -offs AFS Available for sale NDF Non -deliverable forward Bank Leumi Le -Israel Corporation acquired by Valley on NIM Net Interest Margin BLUSA April 1, 2022 NJ New Jersey BOLI Bank owned life i
Slide 27: CRE Detail as of 3/31/26
CRE Detail as of 3/31/26 Portfolio by Property Type Portfolio by Geography Mixed Use Retail Florida 9% 15% 29% Office 9% New York (ex. NYC) Healthcare 7% New Jersey Office Manhattan 19% 2% Apartment & $27.0bn (Other) $27.0bn 3% Residential Manhattan 30% Industrial (Multifamily) 11% 6% Healthcare Oth
Slide 28: Multifamily Portfolio Detail
1 Multifamily Portfolio Detail Multifamily Portfolio by Sub -Asset Class ($bn) Non Co -Op Multifamily by Geography ($bn) Florida & Alabama New Jersey 19% 19% Manhattan 9% Non Co -Op $6.2bn Co -Op $1.8 $8.1bn $6.2 New York Other (ex. 24% Manhattan) 29% New York City by % Rent Regulated Units Geograph
Slide 29: Granular & Diverse Office Portfolio
Granular & Diverse Office Portfolio Office Portfolio by Tenancy Office Portfolio by Geography ($bn) Multi Tenant w/ Multi Tenant Florida & Alabama Anchor $1.7 Manhattan $1.1 $0.1 57% $0.2 36% 3% 7% Healthcare Office $3.0bn $3.0bn $0.4 13% New York (ex. Manhattan) $0.5 17% Single Tenant $0.8 New Jers
Slide 30: Commercial Real Estate by Contractual Maturity
Commercial Real Estate by Contractual Maturity ($mm) 6,573 Outcome for Maturing CRE $mm Loans in 1Q26 Retained $1,218mm Paid Off & Left $313mm Modified & Other 1 $16mm Total $1,547mm 3,318 3,354 3,122 2,447 2,101 1,457 961 879 747 824 572 535 2Q26 3Q26 4Q26 1Q27 2Q27 3Q27 4Q27 2028 2029 2030 2031 20
Slide 31: Criticized and Classified Loan Trend
Criticized and Classified Loan Trend Criticized & Classified Loans ($bn) 9.0% 8.8% Continued 1Q26 decline in substandard loans 8.0% 8.1% was offset by modest increase in special $4.4 mention loans. $4.3 $0.1 $0.1 $4.1 $4.0 $0.1 $0.1 $0.7 $0.7 $0.6 $0.7 As a percentage of total loans, criticized & cl
Slide 32: Securities Portfolio Detail
Securities Portfolio Detail ($mm) HTM AFS Equity & Trading Yield Securities as % of Total Assets 4.07% 4.09% 3.98% 4.02% 3.95% 3.84% 3.77% 3.55% 3.43% $7,781 $7,861 $7,505 $7,736 $7,278 $78 $83 $84 $6,973 $77 $74 $6,253 $72 $5,936 $77 $5,231 $73 $71 $4,117 $4,202 $4,157 $3,659 $3,896 $3,370 $2,212 $
Slide 33: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended March 31, December 31, March 31, December 31, December 31, December 31, ($ in thousands, except for share data) 2026 2025 2025 2025 2024 2023 Adjusted net income available to common shareholders (Non-GAAP): Net incom
Slide 34: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended March 31, December 31, March 31, December 31, December 31, December 31, ($ in thousands) 2026 2025 2025 2025 2024 2023 Adjusted annualized return on average assets (Non-GAAP): Net income, as adjusted (Non-GAAP) $168,
Slide 35: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended March 31, December 31, March 31, December 31, December 31, December 31, ($ in thousands) 2026 2025 2025 2025 2024 2023 Annualized pre-provision net revenue / average assets, as adjusted Pre-provision net revenue (GAA
Slide 36: For More Information
For More Information ▪ Go to our website: www.valley.com ▪ Email requests to: ajianette@valley.com ▪ Call Andrew Jianette in Investor Relations at: (551) 288 -3182 ▪ Go to our website above or www.sec.gov to obtain free copies of documents filed by Valley with the SEC © 2025 Valley Bank. All rights
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