Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q2 2025 Earnings Presentation
30 slides from Valley National Bancorp's earnings presentation, Jul 24, 2025
Slide 1: 2Q25 Earnings Presentation
2Q25 Earnings Presentation July 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: 2Q 2025 Financial Highlights
2Q 2025 Financial Highlights GAAP Reported Non-GAAP Adjusted 1 2Q25 1Q25 2Q24 2Q25 1Q25 2Q24 Net Income ($mm) $133.2 $106.1 $70.4 $134.4 $106.1 $71.6 Return on Average Assets 0.86% 0.69% 0.46% 0.87% 0.69% 0.47% Annualized Efficiency Ratio (Non-GAAP) -- -- -- 55.2% 55.9% 59.6% Diluted Earnings Per Sh
Slide 4: Maintaining Balance Sheet Strength
Maintaining Balance Sheet Strength CRE / TRBC 1 ACL / Loans 1.20% - 1.22% 1.20% 1.25% 442% ~1.17% 1.06% 362% 353% 349% <350% 6/30/24 12/31/24 3/31/25 6/30/25 12/31/25 6/30/24 12/31/24 3/31/25 6/30/25 12/31/25 est. est. Loans / Deposits CET 1 / RWA 100.4% 10.82% 10.80% 10.85% ~11% 97.5% 97.4% 97.4% <
Slide 5: Profitability Continues to Trend Positively
Profitability Continues to Trend Positively Net Interest Margin (FTE, %) Adj. PPNR / Avg. Assets (%) 1 3.10% >3.10% 1.50% >1.50% 3.01% 2.96% 1.43% 2.92% 1.37% 2.84% 3.00% 1.31% 1.19% 1.35% 2Q24 4Q24 1Q25 2Q25 2025 est. 4Q25 est. 2Q24 4Q24 1Q25 2Q25 2025 est. 4Q25 est. range range Adj. Return on Avg.
Slide 6: 2025 Guidance Update
2025 Guidance Update Metric 2025 Expectations as of 3/31/2025 Updated Guidance Range Low end of 3% - 5% range based on 12/31/24 of Gross Loan Growth ~3% growth $48.8bn Net Interest Income Low end of 9% - 12% growth range based on 2024 of 8% - 10% growth $1,629mm Adj. Non-Interest Income Midpoint of
Slide 7: Driving Long-Term Value
Driving Long-Term Value Shareholder Value Creation vs. Peers 1 Deposit Accounts (000s) Cumulative Dividends Post-2017 +116% +24% Reported TBV Growth Post-2017 106% 546 140 91% 440 55% 40% 65 51% 51% 12/31/17 6/30/25 12/31/17 6/30/25 Peer Median VLY Commercial Consumer Commercial Loan Diversity by Ge
Slide 8: Continued Direct Deposit Growth
Continued Direct Deposit Growth Deposits by Product ($bn) Avg. Fed Funds vs. Deposit Costs (%) $50.1 $50.0 $50.7 5.50% 5.43% 4.82% 29% 11.9 12.9 4.50% 4.50% 14.3 24% 25% 3.18% 3.25% 2.94% 23% 11.6 23% 11.7 22% 11.1 2.65% 2.67% 49% 53% 26.4 52% 26.1 24.7 2Q24 3Q24 4Q24 1Q25 2Q25 6/30/2024 3/31/2025 6
Slide 9: Diversified Deposit Base
Diversified Deposit Base Total Deposit Breakdown ($bn) Specialized Deposits by Business Line ($bn) International Nat'l Deposits, Corporate Specialized Deposits Cannabis & $1.1 $12.3 Online 24% $4.0 Technology $1.9 $50.7bn $12.3bn Traditional Branch Deposits Fully FDIC-Insured $32.0 Indirect Customer
Slide 10: Core Deposit Growth & Diversification
Core Deposit Growth & Diversification 2017 6/30/25 2025 & Beyond • Leveraging specialty • $18bn of Total Deposits • $51bn of Total Deposits deposit verticals • 78% in Northeast Branches • 44% in Northeast Branches • 101% Loans / Deposits • 97% Loans / Deposits • Penetrating commercial • $7bn Commerc
Slide 11: Loan Portfolio Detail
Loan Portfolio Detail Gross Loans ($bn) 1 Avg. Fed Funds vs. Loan Yields (%) $0.3 6.28% 6.17% 6.04% 5.88% 5.78% $0.7 5.50% 5.43% ( $0.4 ) $49.4 4.82% $0.1 4.50% 4.50% $48.7 2Q24 3Q24 4Q24 1Q25 2Q25 3/31/25 Other CRE & Owner-Occ. C&I Resi & 6/30/25 Const. CRE Consumer Total Loans Average Fed Funds (U
Slide 12: Proven C&I Growth Capabilities
Proven C&I Growth Capabilities C&I Loans ($bn) 12/31/17 C&I Geographic Diversity Other 10% California 2% 10.9 ~19% C&I CAGR Florida 9.9 since 2017 14% Southeast 9.2 & Other New Jersey 26% 8.8 40% Northeast 74% 6.9 New York 5.8 34% 2.2 0.4 4.8 6/30/25 C&I Geographic Diversity 4.3 Other New Jersey 23%
Slide 13: Focused C&I Initiatives Supporting Growth
Focused C&I Initiatives Supporting Growth 2017 6/30/25 2025 & Beyond • $18bn of Total Loans • $49bn of Total Loans • Leverage existing product • $2.7bn C&I loans • $10.9bn C&I loans and service offerings • 79% of Commercial Loans 1 in • 52% of Commercial Loans 1 in including: Treasury Northeast Nort
Slide 14: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income ($mm) and Margin Net Interest Income Commentary 3.01% Net interest income increased approximately 3% 2.96% 2.92% sequentially as a result of NIM expansion and $434 earning asset growth. 2.86% 2.84% NIM has expanded for the fifth consecutive quarter
Slide 15: Non-Interest Income
Non-Interest Income Non-Interest Income ($mm) 1 2Q25 Non-Interest Income ($mm) Deposit Service Charges BOLI 59.1 $6.0 $14.7 2.0 (1.0) 23% 10% 0.5 Loan Servicing 2.8 $3.7 6% Capital Markets 62.6 $62.6mm $9.8 Other 58.3 16% $11.0 17% 1Q25 Capital Loan Deposit Wealth & 2Q25 Wealth, Trust & Markets Serv
Slide 16: Drivers of Fee Income Momentum
Drivers of Fee Income Momentum 2017 2Q25 2025 & Beyond • $103mm of Non-Interest • $242mm of Annualized Non- Income Interest Income (12% CAGR) • $21mm Gain on Traditional • $8mm Annualized Gain on Loan Sales Traditional Loan Sales • Gain on Sale Comprises 20% • Gain on Sale Comprises 3% • Continue to
Slide 17: Non-Interest Expense
Non-Interest Expense Non-Interest Expenses ($mm) Efficiency Ratio Trend 1 Reported Adjusted 1 284.1 277.5 276.6 59.6% 270.0 267.3 273.3 55.9% 55.2% 2Q24 1Q25 2Q25 2Q24 1Q25 2Q25 Adj. Ann. Non-Interest Expenses 1 / Avg. Assets 2.27% 2.19% Higher compensation costs reflect merit salary increases from
Slide 18: 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 0.74% 0.71% 0.72% 0.35% 0.60% 0.60% % 0.20% 0.15% 0.11% 0.99 % 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 6/30/24 9/30/24 12/31/24 3/31/25 6/30/25 ACL / Total Loans
Slide 19: Equity & Capitalization
Equity & Capitalization Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 $12.82 $13.00 $12.76 $12.89 $12.67 12.12% 12.08% 11.90% 10.86% 11.23% $9.35 8.40% 8.61% 8.63% $9.21 $9.06 $9.10 7.52% 7.68% $8.87 6/30/2024 9/30/2024 12/31/2024 3/31/2025 6/30/2025 6/30/2024 9/30/202
Slide 20: Appendix
APPENDIX
Slide 21: Glossary of Defined Terms
Glossary of Defined Terms Term Definition Term Definition ACL Allowance for credit losses NCOs Net charge-offs Bank Leumi Le-Israel Corporation acquired by Valley on NDF Non-deliverable forward Bank Leumi USA April 1, 2022 NIM Net Interest Margin BOLI Bank owned life insurance NJ New Jersey C&I Comm
Slide 22: CRE Detail as of 6/30/25
CRE Detail as of 6/30/25 Portfolio by Property Type Portfolio by Geography Retail Mixed Use Florida 16% 10% 28% Office New York (ex. NYC) 10% 7% New Jersey Healthcare Manhattan 20% Apartment & $26.0bn Office 2% (Other) $26.0bn Residential 4% 31% Manhattan (Multifamily) Industrial 6% 11% Other NYC He
Slide 23: Multifamily Portfolio Detail
Multifamily Portfolio Detail Multifamily Portfolio by Sub-Asset Class ($bn) Non Co-Op Multifamily by Geography ($bn) Florida & Alabama New Jersey 18% 19% Manhattan Co-Op Non Co-Op 10% $6.2bn $1.9 $8.1bn $6.2 New York Other (ex. 26% Manhattan) 27% New York City by % Rent Regulated Units Geography Out
Slide 24: Granular & Diverse Office Portfolio
Granular & Diverse Office Portfolio Office Portfolio by Tenancy Office Portfolio by Geography ($bn) Multi Tenant w/ Anchor Florida & Alabama Multi Tenant $0.2 Manhattan $1.1 $1.7 7% $0.2 37% 57% 7% Healthcare Office $3.0bn $3.0bn $0.4 New York (ex. 13% Manhattan) $0.4 13% Single Tenant $0.7 Other Ne
Slide 25: Commercial Real Estate by Contractual Maturity
Commercial Real Estate by Contractual Maturity ($mm) Outcome for Maturing CRE 10,129 $mm Loans in 2Q25 Retained $1,250mm Paid Off & Left $431mm Modified & Other 1 $16mm Total $1,697mm 3,215 2,996 2,703 2,149 1,652 582 680 570 618 669 Wtd. Avg. 3Q25 3Q25 4Q25 4Q25 1Q26 1Q26 2Q26 2Q26 3Q26 3Q26 4Q26 4
Slide 26: Securities Portfolio Detail
Securities Portfolio Detail ($mm) HTM AFS Equity & Trading Yield Securities as % of Total Assets 3.95% 3.98% 3.84% 3.77% 3.55% 3.43% 3.34% 3.27% $7,505 3.14% $7,278 $6,973 $77 $74 $6,253 $72 $5,936 $77 $5,067 $5,231 $73 $5,051 $5,104 $64 $67 $68 $71 $3,896 $3,370 $3,659 $2,212 $2,602 $1,237 $1,187 $
Slide 27: Non-GAAP Reconciliations to GAAP Financial Measures
Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended June 30, March 31, December 31, June 30, ($ in thousands, except for share data) 2025 2025 2024 2024 Adjusted net income available to common shareholders (Non-GAAP): Net income, as reported (GAAP) $133,167 $106,058 $115,711 $70,4
Slide 28: Non-GAAP Reconciliations to GAAP Financial Measures
Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended June 30, March 31, December 31, June 30, ($ in thousands) 2025 2025 2024 2024 Adjusted annualized return on average assets (Non-GAAP): Net income, as adjusted (Non-GAAP) $134,415 $106,066 $75,714 $71,643 Average assets $62,106,94
Slide 29: Non-GAAP Reconciliations to GAAP Financial Measures
Non-GAAP Reconciliations to GAAP Financial Measures Three Months Ended June 30, March 31, December 31, June 30, ($ in thousands) 2025 2025 2024 2024 Annualized pre-provision net revenue / average assets, as adjusted Pre-provision net revenue (GAAP) $210,890 $201,781 $195,597 $175,401 Add: Loss on ex
Slide 30: 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 r
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