Valley National Bancorp · NASDAQ:VLY
Valley National Bancorp — Q2 2026 Earnings Presentation
37 slides from Valley National Bancorp's earnings presentation, Jul 23, 2026
Slide 1: 2Q26 Earnings Presentation
2Q26 Earnings Presentation July 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: 2Q 2026 Financial Highlights
2Q 2026 Financial Highlights GAAP Reported Non -GAAP Adjusted 1 2Q26 1Q26 2Q25 2Q26 1Q26 2Q25 Net Income ($mm) $170.9 $163.9 $133.2 $172.8 $168.9 $134.4 Return on Average Assets 1.04% 1.02% 0.86% 1.05% 1.05% 0.87% Annualized Annualized ROATCE 2 11.9% 11.6% 10.0% 12.1% 11.9% 10.1% Efficiency Ratio (N
Slide 4: Strong Balance Sheet Metrics
Strong Balance Sheet Metrics CRE / TRBC 1 ACL / Loans 474% 1.17% 1.19% 1.16% 362% 0.93% 333% 317% 12/31/23 12/31/24 12/31/25 6/30/26 12/31/23 12/31/24 12/31/25 6/30/26 Loans / Deposits CET 1 / RWA 102.0% 10.99% 10.82% 10.71% 97.5% 96.9% 96.1% 9.29% 12/31/23 12/31/24 12/31/25 6/30/26 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 3.20% 1.64% 3.05% 1.48% 2.96% 1.34% 2.85% 1.26% FY2023 FY 2024 FY 2025 2Q26 FY 2023 FY 2024 FY 2025 2Q26 Adj. Return on Avg. Assets (%) 2 Adj. Return on Avg. Tangible Common Equity (%) 2 1.05% 12.
Slide 6: Driving Long-Term Value
Driving Long -Term Value Shareholder Value Creation vs. Peers 1 Deposit Accounts (000s) Cumulative Dividends Post-2017 2 +121% +24% Reported TBV Growth Post-2017 127% 545 117% 440 143 48% 59% 65 69% 69% 12/31/17 6/30/26 12/31/17 6/30/26 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: Valley's AI Ecosystem
Valley’s AI Ecosystem Valley’s unique connectivity to the start -up technology & AI ecosystem enable our adoption of technologies which enhance efficiency and reduce customer friction. Valley Ventures Tech Banking Bank Leumi Israel • $200mm of committed capital; $80mm • ~2,000 Tech Banking clients •
Slide 10: Examples of Valley-Specific AI Use Cases
Examples of Valley -Specific AI Use Cases AI Knowledge Assistants Generative AI supporting Customer Care agents’ access to approved policies and procedures AML / Fraud Alert Actioning Machine -learning models segment risk, identify wire fraud, and reduce false positives to improve the speed and cons
Slide 11: AI Journey & Priority Focus Areas
AI Journey & Priority Focus Areas 2023 – 2025 2025 - 2027 2028 & Beyond Foundational Initiatives AI Portfolio Execution AI -Driven Banking Establishing a Strong Foundation Cross -Channel AI Experiences & Operating as an AI -Native & Driving Associate Productivity Re -Imagining End -to -End Organizat
Slide 12: 2026 Outlook Update
2026 Outlook Update Metric 2026 Expectation as of 12/31/25 6/30/26 Update Gross Loans 4% - 6% Growth At or Above High End of Range Total Deposits 5% - 7% Growth High End of Range CET1 / RWA 10.5% - 11.0% Middle of Range Net Interest Income 11%- 13% Growth High End of Range Non -Interest Income (Adj.
Slide 13: Increased Capital Returns to Shareholders
Increased Capital Returns to Shareholders Tangible Common Equity 1 ($mm's) 164 12 5,605 (61) ▪ CET1 / RWA at the midpoint of our (20) 5,510 10.5% - 11.0% target range. $81mm returned to shareholders during 2Q26 ▪ Improving profitability has resulted in regulatory capital growth sufficient to fund or
Slide 14: Continued Direct Deposit Growth
Continued Direct Deposit Growth Deposits by Product ($bn) Avg. Fed Funds vs. Deposit Costs (%) $52.9 $54.1 $50.7 4.50% 4.46% 25% 22% 11.4 24% 12.9 12.9 2.67% 2.69% 4.02% 3.75% 3.75% 12.3 12.5 23% 11.7 23% 23% 2.45% 2.27% 2.28% 52% 26.1 55% 29.2 53% 28.7 2Q25 3Q25 4Q25 1Q26 2Q26 6/30/2025 3/31/2026 6
Slide 15: Diversified Deposit Base
Diversified Deposit Base Total Deposit Breakdown ($bn) Specialized Deposits by Business Line ($bn) International Nat'l Deposits, Corporate Cannabis & $1.2 Online Specialized Deposits $4.2 Technology $13.1 Traditional $2.4 24% $13.1bn Deposits $54.1bn $35.8 66% Healthcare & Other $2.0 Private Banking
Slide 16: Core Deposit Growth & Diversification
Core Deposit Growth & Diversification Expectations for 2026 12/31/17 6/30/26 & Beyond • $18bn Total Deposits • $54bn Total Deposits • Leverage specialty deposit • 78% in Northeast Branches • 45% in Northeast Branches verticals and explore new • 101% Loans / Deposits • 97% Loans / Deposits capabiliti
Slide 17: Loan Portfolio Detail
Loan Portfolio Detail Gross Loans ($bn) 1 Avg. Fed Funds vs. Loan Yields (%) $0.1 5.88% 5.95% 5.84% 5.64% 5.67% $0.9 $0.5 $52.5 4.50% 4.46% $0.1 4.02% 3.75% 3.75% $50.8 3/31/26 Regulatory Owner-Occ C&I Resi & 6/30/26 2Q25 3Q25 4Q25 1Q26 2Q26 CRE & Other CRE Consumer Total Loan Yield Average Fed Fund
Slide 18: Diverse C&I Growth Capabilities
Diverse C&I Growth Capabilities C&I Loans ($bn) 6/30/26 C&I Industry Diversity Other Working Capital Real Estate Related 12.0 26% 13% 11.0 Wholesale Trade 7% ~19% C&I CAGR 9.9 Consumer Serv. since 2017 2% $12.0bn 9.2 Finance & Insurance Non -Profit & 8.8 20% Condos 6% Equipment Professional Services
Slide 19: Focused C&I Initiatives Supporting Growth
Focused C&I Initiatives Supporting Growth Expectations for 2026 12/31/17 6/30/26 & Beyond • $18bn Total Loans • $52bn Total Loans • $2.7bn C&I loans • $12.0bn C&I loans • Continue to recruit experienced and sophisticated commercial • 79% of Commercial Loans 1 in • 50% of Commercial Loans 1 in talent
Slide 20: Net Interest Income and Margin
Net Interest Income and Margin Net Interest Income ($mm) and Margin 1 Maturing Fixed Rate Loans 5.06% 5.21% 5.11% 4.90% 3.20% 4.39% 3.17% 3.17% $11.7 3.05% $488 3.01% $2.1 $2.2 $2.3 $473 $1.4 $466 2026 2027 2028 2029 Beyond Balance ($bn) Weighted Avg. Rate (%) $447 $434 Maturing CDs and FHLB Borrowi
Slide 21: Non-Interest Income
Non -Interest Income Non -Interest Income ($mm) 1 2Q26 Non -Interest Income ($mm) Deposit Service Charges BOLI $18.7 $5.9 25% 8% $0.5 $0.1 $0.5 Loan Servicing $2.6 $3.3 $2.6 Capital Markets 4% ($1.3) $73.7 $12.9 $73.7mm $68.8 18% All Other $11.4 16% 1Q26 Gain on Wealth, Capital Deposit BOLI All Othe
Slide 22: Drivers of Fee Income Momentum
Drivers of Fee Income Momentum Expectations for 2026 FY 2017 6/30/26 & Beyond • $103mm of Non -Interest • Annualized $285mm of Non - Income Interest Income (14% CAGR) • $21mm Gain on Traditional • Annualized $10mm Gain on • Continue to focus on Loan Sales Traditional Loan Sales sustainable fee incom
Slide 23: Non-Interest Expenses
Non -Interest Expenses Adjusted Non -Interest Expenses 1 ($mm) 1 Efficiency Ratio Trend Reported Adjusted $310 $311 $284 55.2% $287 $292 $273 53.1% 52.1% 2Q25 1Q26 2Q26 2Q25 1Q26 2Q26 Adj. Ann. Non -Interest Expenses 1 / Avg. Assets Continue to optimize resource and FTE allocation 2.19% 2.19% to mos
Slide 24: Asset Quality & Reserve Trends
Asset Quality & Reserve Trends Non -Accrual Loans / Total Loans Accruing Past Due Loans / Total Loans 30-59 PD 60-89 PD 90+ PD 0.40% 0.34% 1.03 0.86% 0.87% 0.85% 0.88% 0.28% 0.25% % 0.72% 0.17% 0.99 % 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 6/30/25 9/30/25 12/31/25 3/31/26 6/30/26 ACL / Total Loans
Slide 25: Criticized and Classified Loan Trend
Criticized and Classified Loan Trend Criticized & Classified Loans ($bn) 9.0% 8.8% Criticized and Classified loans declined nearly 8.0% 8.1% $300mm, or over 6%, during the quarter. $4.4 $4.3 7.3% $0.1 $0.1 $4.0 $4.1 $0.1 $0.1 $3.8 Criticized and Classified loans declined $0.7 $0.7 $0.1 $0.6 $0.7 rou
Slide 26: Equity & Capitalization
Equity & Capitalization Book Value and Tangible Book Value per Share 1 Equity Capitalization Level 1 $13.48 $13.67 $13.39 $12.89 $13.09 12.08% 12.21% 12.17% 12.14% 11.94% $10.13 8.79% 8.82% 8.82% $9.85 $9.94 8.63% 8.71% $9.57 $9.35 6/30/2025 9/30/2025 12/31/2025 3/31/2026 6/30/2026 6/30/2025 9/30/20
Slide 27: Appendix
APPENDIX
Slide 28: 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 29: CRE Detail as of 6/30/26
CRE Detail as of 6/30/26 Portfolio by Property Type Portfolio by Geography Mixed Use Retail Florida 6% 15% 28% Office 9% New York (ex. NYC) Healthcare 7% New Jersey Office Manhattan 19% 2% Apartment & $27.9bn (Other) $27.9bn Residential 4% 32% Industrial Manhattan 10% (Multifamily) 6% Healthcare Oth
Slide 30: Multifamily Portfolio Detail
1 Multifamily Portfolio Detail Multifamily Portfolio by Sub -Asset Class ($bn) Non Co -Op Multifamily by Geography ($bn) Florida & Alabama New Jersey 19% 19% Manhattan 9% Non Co -Op $7.1 $7.1bn Co -Op $9.0bn $1.8 New York Other (ex. 24% Manhattan) 29% New York City by % Rent Regulated Units Geograph
Slide 31: Granular & Diverse Office Portfolio
Granular & Diverse Office Portfolio Office Portfolio by Tenancy Office Portfolio by Geography ($bn) Multi Tenant w/ Multi Tenant Florida & Alabama Anchor $1.7 Manhattan $1.1 $0.1 55% $0.2 36% 4% 7% Healthcare Office $0.4 $3.0bn $3.0bn 12% New York (ex. Manhattan) $0.5 17% Single Tenant $0.9 New Jers
Slide 32: Commercial Real Estate by Contractual Maturity ($mm)
Commercial Real Estate by Contractual Maturity ($mm) Outcome for Maturing CRE 6,778 $mm Loans in 2Q26 Retained $1,082mm Paid Off & Left $341mm Modified & Other 1 $33mm Total $1,457mm 3,696 3,742 3,076 3,206 2,066 1,408 881 937 870 576 518 Wtd . Avg. 3Q26 3Q26 4Q26 4Q26 1Q27 1Q27 2Q27 2Q27 3Q27 3Q27
Slide 33: Securities Portfolio Detail ($mm)
Securities Portfolio Detail ($mm) HTM AFS Equity & Trading Yield Securities as % of Total Assets 4.17% 4.07% 4.09% 3.98% 4.02% 3.95% 3.84% 3.77% 3.55% $8,164 $ 7,736 $ 7,781 $ 7,861 $ 7,505 $115 $ 7,278 $78 $83 $84 $ 6,973 $77 $74 $ 6,253 $72 $ 5,936 $77 $73 $4,292 $4,117 $4,202 $4,157 $3,659 $3,896
Slide 34: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended June 30, March 31, June 30, December 31, December 31, December 31, ($ in thousands, except for share data) 2026 2026 2025 2025 2024 2023 Adjusted net income available to common shareholders (Non-GAAP): Net income, as
Slide 35: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended June 30, March 31, June 30, December 31, December 31, December 31, ($ in thousands) 2026 2026 2025 2025 2024 2023 Adjusted annualized return on average assets (Non-GAAP): Net income, as adjusted (Non-GAAP) $172,846 $
Slide 36: Non-GAAP Reconciliations to GAAP Financial Measures
Non -GAAP Reconciliations to GAAP Financial Measures Three Months Ended Years Ended June 30, March 31, June 30, December 31, December 31, December 31, ($ in thousands) 2026 2026 2025 2025 2024 2023 Annualized pre-provision net revenue / average assets, as adjusted Pre-provision net revenue (GAAP) $2
Slide 37: 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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