Valley National Bancorp · NASDAQ:VLY

Valley National Bancorp — Q4 2024 Earnings Presentation

30 slides from Valley National Bancorp's earnings presentation, Jan 23, 2025

  1. Slide 1: 4Q24 Earnings Presentation

    Exhibit 99.2 4Q24 Earnings Presentation January 23, 2025

  2. 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

  3. Slide 3: 4Q 2024 Financial Highlights

    AQ 2024 Financial Highlights GAAP Reported Non-GAAP Adjusted ! Pages | 3Q24 | 23 4q24 | 3Q24 | 4923 Net Income ($mm) $15.7 $979 $71.6 $75.7 $96.8 $116.3 ASHTON WETS ASSES 0.74% 0.63% 0.47% 0.48% 0.62% 0.76% Annualized Efficiency Ratio (Non-GAAP) = = = 57.2% 56.1% 60.7% Diluted Earnings Per Share $0.

  4. Slide 4: Outperformance of Key Balance Sheet Targets

    —_ a as of 1 Outperformance of Key Balance Sheet Targets CRE/TRBC! ACL / Loans 4TH% 442% ‘ 421% 1.14% , 1.06% 362% <350% 0.93% 12/3/23 6/30/24 9/30/24 12/3/24 12/3/25 est. 12/31/23 6/30/24 9/30/24 12/31/24 12/3/25 est. Loans / Deposits CET1/RWA 102.0% ~11% 100.4% 10.82% 97.9% 97.5% Lor 9.29% 9.55% 9

  5. Slide 5: Strategic Imperatives for 2025

    Strategic Imperatives for 2025 Our Strategic Focus Remains Consistent, Supported by Evolving Initiatives = Grow Core Deposits = Utilize enhanced treasury management capabilities to further penetrate commercial customers. = Continue to energize the branch footprint and motivate targeted new customer

  6. Slide 6: 2025 Guidance

    2025 Guidance po Metric 3% - 5% based on 12/31/24 of $48.8bn (includes $0.4bn - $0.6bn reduction in regulatory CRE) Gross Loan Growth Net Interest Income 9% - 12% growth based on 2024 of $1,629mm 3% - 5% growth based on 2024 of $1,076mm! (excludes tax credit amortization and other non-operating expe

  7. Slide 7: Net Interest Income Commentary

    Net Interest Income Commentary =» Management Assumptions The upper end of our net interest income guidance range assumes the implied forward curve as of 12/31/24 The remainder of the range reflects a variety of lower interest rate scenarios ~60% downside beta on interest-bearing non-maturity deposit

  8. Slide 8: Outlook & Expectations

    Outlook & Expectations Net Interest Margin (FTE, %) Adj. PPNR / Avg. Assets (%) >3.10% 31.50% 2.85% 1.26% 2024 2025 est. range 4Q25 est. 2024 2025 est. range 4Q25 est. Adj. Return on Avg. Assets (%) Adj. Return on Average Tangible Equity 11.0% 9 1.00% >1.00% sat 7 >11.0% eenenee ' 7.0% on 0.55% 0.80

  9. Slide 9: Driving Long-Term Value

    Driving Long-Term Value Shareholder Value Creation vs. Peers = Cumulative Dividends Post-2017 m Reported TBV Growth Post-2017 ' 100% 87% Peer Median VLY Commercial Loan Diversity by Geography Deposit Accounts (000s) mFL&Other @NYSNJ 48% 12/3117 12/31/24 136 540 440 65 12/317 12/3/24 12/317 12/3/24 =

  10. Slide 10: Lowering Deposit Costs

    Lowering Deposit Costs Deposits by Product ($bn) $50.4 $50.1 22% 50% 9/30/2024 12/31/2024 = Time mNon-interest _m Savings, NOW and money market Deposits by Customer Type ($bn) $50.4 $50.1 18% 14% 82% Al 43.0 86% 9/30/2024 12/31/2024 Direct @ Indirect Avg. Fed Funds vs. Deposit Costs (%) 5.50% 5.50%

  11. Slide 11: Diversified Deposit Base

    Diversified Deposit Base Total Deposit Breakdown ($bn) Specialized Deposits $n3 23% $50.1bn Traditional Branch Deposits Fully FDIC-Insured $317 Indirect Customer 63% $71 14% Traditional Branch Deposits 3 ($bn) New Jersey $171 New York 127 branches $4.9 $31.7bn 41 branches Other Florida $14 $83 20 br

  12. Slide 12: Continued Emphasis on C&I and Owner-Occ. CRE

    Continued Emphasis on C&I and Owner-Occ. CRE Gross Loans ($bn)! 12/31/2024 Loan Composition! ($1.0) 04 $0.1 $0.1 $0.2 $48.8 9/30/24 Other CRE& Owner-Occ. CEI Resi& 12/31/24 Const. CRE Consumer New Loan Originations ($bn) 7.83% 7.10% 7.62% 7.56% 4Q23 1924 2Q24 3Q24 4Q24 gm Origination Volume (Gross)

  13. Slide 13: CRE Detail as of 12/31/24

    CRE Detail as of 12/31/24 Portfolio by Property Type Retail Mixed Use 17% 10% Office 10% Healthcare $26.5bn ——ael Apartment & Residential 30% Industrial 11% Healthcare Specialty § Other 9% 11% Property Type Wed. Avg. LTV! Wed. Avg. DSCR? Apartment & Resi $60 63% 140x Retail $44 62% 16x Industrial $2

  14. Slide 14: Multifamily Portfolio Detail

    Multifamily Portfolio Detail Multifamily Portfolio by Sub-Asset Class ($bn) Co-Op $19 $7.9bn Geography Outstanding Avg. Size Wt. Avg. ($bn) ($mm) Liv! New York (ex. Manhattan) $5.9mm Other $9.3mm New Jersey $3.2mm Florida & Alabama $3.6mm Manhattan $6.9mm Total $5.0mm Wtd, Avg. DSCR? Non Co-Op Multi

  15. Slide 15: Granular & Diverse Office Portfolio

    Granular & Diverse Office Portfolio Office Portfolio by Tenancy Multi Tenant w/ Anchor Office Portfolio by Geography ($bn) $0.3 Multi Tenant Manhattan su 10% $17 $02 36% 55% 6% Healthcare Office $0.4 New York 13% (ex. Manhattan) $0.4 13% Single Tenant $07 be Other New Jersey $0.4 $1.0 13% 32% ~20% o

  16. Slide 16: Maturity schedule 1Q25 through 2031 and Beyond

    1Q25 2Q25 3Q25 4Q25 1Q26 2Q26 3Q26 4Q26 2027 2028 2029 2030 2031 and Beyond 16

  17. Slide 17: Net Interest Income and Margin

    Net Interest Income and Margin Net Interest Income ($mm) and Margin Net Interest Income Commentary 4Q23 1Q24 2Q24 3Q24 4Q24 Mam Net Interest Income ($mm) ==NIM % Net interest income increased 3% sequentially as a result of strong customer deposit growth, lower deposit costs, and continued upwards re

  18. Slide 18: Non-Interest Income

    Non-Interest Income Reported Non-Interest Income ($mm) ! 4Q24 Adjusted Non-Interest Income ($mm) ! ® Reported. Loan Servicing Other i Adjusted $31 $7 rose OE) 5% 20% aa (2.6) BOLI 59.1 $3.8 6% 59:1 $59.1mm f 4 Deposit Service fle) Charges Wealth, Trust & q q $13.0 Insurance 22% $20.1 3Q24 Capital We

  19. Slide 19: Non-Interest Expense

    Non-Interest Expense Non-Interest Expenses ($mm) Efficiency Ratio Trend! 7} Reported Adjusted! 278.6 coe 56.1% 57.2% 4Q24 4Q23 3Q24 4Q24 Adj. Ann. Non-Interest Expenses '/ Avg. Assets #2 Compensation costs remain well-controlled 2.29% 2.25% 9 Majority of increase in technology & equipment expense wa

  20. Slide 20: 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% 0.35% 0.58% 0.58% 0.60% 0.60% 0.18% 0.15% 0.14% 0.20% 12/3/23 3/30/24 6/30/24 9/30/24 12/3/24 12/31/23 3/30/23 6/30/24 9/30/24 12/3724 ACL / Total Loans Loan Loss Prov

  21. Slide 21: Equity & Capitalization

    Equity & Capitalization Book Value and Tangible Book Value per Share ! $12.79 $12.81 $12.82 saicenia $12.67 Sa ee een $9.06 $9.10 ; ; ; I i 12/31/2023 3/31/2024 6/30/2024 9/30/2024 12/31/2024 Mmmm TBV pershare — Book Value per share Holding Company Equity Capitalization Level ! 9/30/24 11.90% 11.00%

  22. Slide 22: Appendix

    APPENDIX

  23. Slide 23: 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

  24. Slide 24: Consistent Relationship-Focus Supports Credit Strength

    Consistent Relationship-Focus Supports Credit Strength Firm Type: Investor Profile: Source of Equity Capital: Ownership Structure: Timeframe and Size: Performance Longevity: Liquidity: Cash Stability: Underwriting: Enhancements: 9 Valley Local / regional sponsors and developers; often owner- operato

  25. Slide 25: Key Pillars of Valley's Credit Risk Management

    Key Pillars of Valley's Credit Risk Management Disciplined Approach to Customer Acquisition Strategic and Balanced Methodology v Deep institutional knowledge of real estate markets guides v Various Risk Acceptance Criteria approved by credit oversight target customers and Board Risk Committee v Risk

  26. Slide 26: Minimal Exposure to Larger Office Properties

    Minimal Exposure to Larger Office Properties Probability of Default Applied to Office Exposure by Building 50% mmm Valley Office Exposure by Building Size (LHS) Probability of Default (RHS) } 45% 22.0% 40% a2 17.0% 16.0% 30% 14.0% 1% 25% 12.0% 20% 10.0% 10.0% % of Valley Office Portfolio 15% 6.0% 10

  27. Slide 27: Non-GAAP Reconciliations to GAAP Financial Measures

    Non-GAAP Reconciliations to GAAP Financial Measures (Sin thousands, except for share data) Adjusted net income available to common shareholders (Non-GAAI Net income, as reported (GAAP) ‘Add: FDIC Special assessment (a) |Add: Losses (gains) on availabe for sale and held to maturity securities transac

  28. Slide 28: Non-GAAP Reconciliations to GAAP Financial Measures

    Non-GAAP Reconciliations to GAAP Financial Measures ($inthousands) Net income, as adjusted (Non-GAAP) Average assets Annualized return on average assets, 3s adjusted (Non-GAAP) Netineome, as adjusted (Non-GAAP) Average shareholders" equity Annualized return on average shareholders’ equity as adjuste

  29. Slide 29: Non-GAAP Reconciliations to GAAP Financial Measures

    Non-GAAP Reconciliations to GAAP Financial Measures (Sinthow nds) Annualized pre-provision net revenue / average assets, as adjusted net revenue (GAAP) peclal assessment [pretax) Add: Restructuring charge (pre-tax) Add: Merger-elated expenses (pre-tax) Add: Amortization of tax credit investments (pr

  30. Slide 30: © 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. ▪ ▪ ▪ ▪

Valley National Bancorp — Q4 2024 Earnings Presentation on 6ix