Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q1 2025 Earnings Presentation
26 slides from Valley National Bancorp's earnings presentation, Apr 24, 2025
Slide 1: 1Q25 Earnings Presentation
Exhibit 99.2 . 1Q25 Earnings Presentation April 24, 2025
Slide 2: Forward Looking Statements
Forward Looking Statements This presentation 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 abo
Slide 3: 1Q 2025 Financial Highlights
1Q 2025 Financial Highlights GAAP Reported Non-GAAP Adjusted ! Pies ges | igen ts | ugau | igs Net Income ($mm) $106.1 $1157 $963 $106.1 $757 $99.4 ASHTON WETS ASSES 0.69% 0.74% 0.63% 0.69% 0.48% 0.65% Annualized Efficiency Ratio (Non-GAAP) = = = 55.9% 57.2% 59.1% Diluted Earnings Per Share $0.18 $0
Slide 4: Maintaining Balance Sheet Strength
Maintaining Balance Sheet Strength CRE/TRBC! ACL / Loans 1.20% - 464% ces 1.22% 1.25% 0.98% “ ans 3/31/24 12/31/24 3/3/25 12/31/25 3/31/24 12/3/24 3/3/25 12/3725 est. est Loans / Deposits CET1/RWA 101.7% 10.82% 10.80% “ia 97.5% 97.4% <97% 9.34% 3/3/24 12/324 3/3725 12/31/25 3/3/24 12/31/24 3/3/25 12
Slide 5: Profitability Continues to Trend Positively
Profitability Continues to Trend Positively Net Interest Margin (FTE, %) Adj. PPNR / Avg. Assets (9%) ! >3.10% 22m «296% ing 0 tl L 1Q24 4Q24 1Q25 2025est. 4Q25 est. range Adj. Return on Avg. Assets (%) ! 00% >1.00% 0.65% 0.69% bees! ry 48% gee 1924 4Q24 1025 2025est. 4Q25 est, range >150% 1.21% 1Q2
Slide 6: 2025 Guidance Update
2025 Guidance Update | Metric Directional Update Gross Loan Growth 3% - 5% based on 12/31/24 of $48.8bn Low-End Net Interest Income 9% - 12% growth based on 2024 of $1,629mm Low-End Adj. Non-Interest Income 6% - 10% growth based on 2024 of $227mm! Midpoint 3% - 5% growth based on 2024 of $1,076mm! (
Slide 7: Driving Long-Term Value
Driving Long-Term Value Shareholder Value Creation vs. Peers! = Cumulative Dividends Post-2017 m Reported TBV Growth Post-2017 103% 88% 51% Peer Median VLY Commercial Loan Diversity by Geography Deposit Accounts (000s) mFL&Other @NYSNJ 48% 21% 12/3117 3/31/25 138 542 440 : | 12/317 3/31/25, 12/317 3
Slide 8: Lowering Deposit Costs
Lowering Deposit Costs Deposits by Product ($bn) $50.1 $50.0 25% 24% 23% 52% 53% 12/31/2024 3/31/2025 = Time mNon-Interest _m Savings, NOW and money market Deposits by Customer Type ($bn) Avg. Fed Funds vs. Deposit Costs (%) a 5.50% 5.50% 5.43% 4.82 3.16% 3.18% 3.25% 2.94% l| [J 1Q24 2Q24 3Q24 4Q24
Slide 9: Diversified Deposit Base
Diversified Deposit Base Total Deposit Breakdown ($bn) Specialized Deposits sus 24% $50.0bn Traditional att Deposits Fully FDIC-insured 8 Indirect Customer 64% $63 12% Traditional Branch Deposits 3 ($bn) New Jersey $72 New York 127 branches $48 $31.9bn 41 branches Other Florida $4 $8.5 20 branches S
Slide 10: Loan Portfolio Detail
Loan Portfolio Detail Gross Loans ($bn)! Avg. Fed Funds vs. Loan Yields (%) ($0.4) $0.2 (soz) | 02 12/324 Other CRE & Owner-Occ. C&l Resi& 3/31/25 Const. CRE Consumer 3/31/2025 Loan Composition ' 6.14% 6.17% 6.28% 6.04% 5.78% 5.50% 5.50% 5.43% = = | [| [] [| | i 1Q24 2Q24 3Q24 4Q24 1925 mmm Total Lo
Slide 11: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income ($mm) and Margin 9 Sone 2.96% + 2 84% 2.86% 2.79% ea ae $u12 $403 | iI 1Q24 2Q24 3Q24 4Q24 1925 Mam Net Interest Income ($mm) ==NIM Net Interest Income Commentary % Net interest income decreased approximately 1% sequentially primarily as a result of
Slide 12: Non-Interest Income
Non-Interest Income Non-Interest Income ($mm) ! 1Q25 Adjusted Non-Interest Income ($mm)! Ut Reported Bi Adjusted! i 10 (0.5) 3 3) (0.0) t cca 1512} 4Q24 BOLI Capital Wealth& Other 1925 Markets Trust Loan Servicing Other $3.2 $12.3 5% 21% BOLI $4.8 8% $58.3mm Deposit Service Wealth, Trust & Charges :
Slide 13: Non-Interest Expense
Non-Interest Expense Non-Interest Expenses ($mm) Efficiency Ratio Trend! 7} Reported m Adjusted | 59.1% 57.2% 266.7 267.3 55.9% 1Q24 4Q24 1Q25 1Q24 4Q26 1925 Adj. Ann. Non-Interest Expenses '/ Avg. Assets #2 Compensation costs remain well-controlled despite the seasonal uptick in payroll taxes 2.23%
Slide 14: Asset Quality & Reserve Trends
Asset Quality & Reserve Trends Non-Accrual Loans / Total Loans Accruing Past Due Loans / Total Loans ™30-59PD = 60-89PD m90+PD 0.74% ny 035% 0.58% 0.60% 0.60% ° 0.71% _ 0.14% 0.15% a prs — — 3/31/24 6/30/24 9/30/24 12/3/24 3/325 3/3/24 6/30/24 9/30/24 12/31/24 3/3/25 ACL / Total Loans Loan Loss Prov
Slide 15: Equity & Capitalization
Equity & Capitalization Book Value and Tangible Book Value per Share ! Equity Capitalization Level ' $12.81 $12.82 S130 a eS $12.76 11.90% 12.12% i 11.03% sae 86% 11.23% 9.21 $9.06 $9.10 8.40% —————jam 88 51% ; ; q [ : 5 5 5 | | 3/31/2024 6/30/2024 | 9/30/2024 12/31/2024 3/31/2025 3/31/2024 ” 9/30/2
Slide 16: APPENDIX
APPENDIX
Slide 17: Glossary of Defined Terms
Glossary of Defined Terms Term ACL Bank Leumi USA CéI CAGR CECL CETI CRE DSCR FIX FDIC FL FHLB FRB FRBNY FTE GAAP HFS. HHI HOA LIBOR LIV MSA NAICS Definition Allowance for credit losses Bank Leumi Le-Israel Corporation acquired by Valley on April 1, 2022 Commercial & industrial Compound annual growt
Slide 18: CRE Detail as of 3/31/25
CRE Detail as of 3/31/25 Portfolio by Property Type Rata Mixed Use 16% 10% Office 10% Healthcare —mmm Office Apartment & $26.1 bn 2 Residential 31% Industrial 10% Healthcare Specialty § Other 10% 11% Property Type Wtd. Avg. LTV! Wed. Avg. DSCR? Apartment & Resi $61 63% 138x Retail $43 61% 176x Indus
Slide 19: Multifamily Portfolio Detail
Multifamily Portfolio Detail Multifamily Portfolio by Sub-Asset Class ($bn) Co-Op $19 $8.0bn Geography Outstanding Avg. Size Wt. Avg. ($bn) ($mm) Liv! New York (ex. Manhattan) $6.2mm Other $9.4mm New Jersey $3.3mm Florida & Alabama $3.6mm Manhattan $7.1mm Total $5.1mm_ Wtd, Avg. DSCR? Non Co-Op Mult
Slide 20: Granular & Diverse Office Portfolio
Granular & Diverse Office Portfolio Office Portfolio by Tenancy Multi Tenant w/ Anchor Multi Tenant $0.2 $17 ™% 57% Healthcare Office $0.4 13% Single Tenant $0.7 23% ~23% of Office Portfolio is Owner-Occupied. Outstanding ($bn) Geography Office Portfolio by Geography ($bn) Florida & Alabama $i New J
Slide 21: Maturity schedule 2Q25 through 2031 and Beyond
2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 2027 2028 2029 2030 2031 and Beyond 21
Slide 22: Securities Portfolio Detail ($mm)
Securities Portfolio Detail ($mm) mm HTM AFS mmm Equity & Trading Yield (_) Securities as % of Total Assets 3.95% 3.84% 3.77% $7,278 $74 6,253 $5,936 * $72, 77 $5,162 $5,067 $5,051 $5,104 $5,231 $73 s $57 $64 $67 $68 $n sere $3,659 $2,212 $2,602 $1259 $1,237 $1187 $1,297 $1449 1923 2923 3Q23 4Q23 19
Slide 23: Non-GAAP Reconciliations to GAAP Financial Measures
Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended December 31, March 31, ($in thousands, except for share data) 2024 2024 Adjusted net income available to common fon. Net income, as reported (GAAP) $106,058 sus, $96,280 ‘Add: FDIC Special assessment (a) - - 7.394 ‘Add: Losses (g
Slide 24: Non-GAAP Reconciliations to GAAP Financial Measures
Non-GAAP Reconciliations to GAAP Financial Measures ‘Three Months Ended (arch 31, “December 37, March 3T, (S in thousands) 2025 2024 202% Adjusted annualized return on average GAAP): Net income, as adjusted (Non-GAAP) $106,066 s75na $99,448 Average assets $61,502,768 $62,865,338 $61,256,868 ‘Annuali
Slide 25: Non-GAAP Reconciliations to GAAP Financial Measures
Non-GAAP Reconciliations to GAAP Financial Measures {Gin thousands) Annualized pre-provision net revenue / average assets, as adjusted Pre-provision net revenue (GAAP) ‘Add: FDIC Special assessment (pre-tax) ‘Add: Restructuring charge (pre-tax) ‘Add: Amortization of tax credit investments (pre-tax)
Slide 26: © 2024 Valley Bank. All rights reserved. Please see www.valley.com for further details. ▪
© 2024 Valley Bank. All rights reserved. Please see www.valley.com for further details. ▪ ▪ ▪ ▪
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